Daimler AG preliminary results for the second quarter 2020 above market expectations -positive Industrial Free Cash Flow

STUTTGART, Germany, July 16, 2020 /PRNewswire/ -- Following a better than expected market recovery and a strong June performance, Daimler Group adjusted EBIT, Mercedes-Benz Cars & Vans adjusted EBIT and Daimler's Industrial Free Cash Flow for the second quarter of 2020 are all above market expectations.

Daimler's deployment of extensive cash preservation measures plus the favorable demand-driven development of working capital combined to deliver positive Industrial Free Cash Flow in the second quarter.

"This has been a complex quarter. We took proactive decisions on costs and spending and focused intensely on working capital management. We were then able to seize opportunities allowed by the market recovery, thanks to our compelling product line-up. We also announced key strategic partnerships in electrification and vehicle software during the quarter that position us well for the future. But, there is still much to do. Our systematic efforts to lower the breakeven of the company by reducing costs and adjusting capacity will need to continue," said Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

The following stated figures for the second quarter 2020 are preliminary and unaudited:

- Industrial Free Cash Flow: €685 million MINUS 106 million)))

- Net Industrial Liquidity: €9.5 billion (Q1 2020: €9.3 billion)

- Daimler Group EBIT: minus €1,682 million MINUS 069 million)));

adjusted EBIT: minus €708 million MINUS 719 million)))

- Mercedes-Benz Cars & Vans EBIT: minus €1,125 million MINUS 400 million))); adjusted EBIT: minus €284 million MINUS 050 million)))

- Daimler Trucks & Buses EBIT: minus €756 million MINUS;

adjusted EBIT: minus €747 million MINUS

- Daimler Mobility EBIT: €205 million (consensus: €258 million);

adjusted EBIT: €313 million (consensus: €258 million)

The preliminary results include the following adjustments affecting EBIT:

Mercedes-Benz Cars & Vans:

- Expenses of €687 million for initiated streamlining of global production network and capacity adjustments connected to our operations in Hambach, Tuscaloosa and Aguascalientes.

- Expenses of €53 million for legal proceedings and related measures

Daimler Mobility:

- Expenses of €105 million for adjustment of YOUR NOW Holding

Mercedes-Benz Cars & Vans, Daimler Trucks & Buses, Daimler Mobility, Reconciliation:

- Expenses of €129 million in total for ongoing efficiency programs.

The full quarterly results will be published on July 23, 2020.

EBIT, adjusted EBIT and Industrial Free Cash Flow are defined on pp. 64 and 73 of the Daimler Annual Report 2019.

Further information on Daimler is available at:

www.media.daimler.com and www.daimler.com

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates and tariff regulations; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Daimler at a glance

Daimler AG is one of the world's most successful automotive companies. With its Mercedes-Benz Cars & Vans, Daimler Trucks & Buses and Daimler Mobility divisions, the Group is one of the leading global suppliers of premium cars and one of the world's largest manufacturer of commercial vehicles. Daimler Mobility offers financing, leasing, fleet management, investments, credit card and insurance brokerage as well as innovative mobility services. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Daimler sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Daimler continues to invest systematically in the development of efficient powertrains – from high-tech combustion engines and hybrid vehicles to all-electric powertrains with battery or fuel cell – with the goal of making locally emission-free driving possible in the long term. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts. Daimler regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Daimler sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and South America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable premium automotive brand (source: Interbrand study, 17 Oct. 2019), and Mercedes-AMG, Mercedes-Maybach and Mercedes me, its brand portfolio includes smart, EQ, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses as well as the brands of Daimler Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Daimler Truck Financial. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol DAI). In 2019, the Group had a workforce of around 298,700 and sold 3.3 million vehicles. Group revenues amounted to €172.7 billion and Group EBIT to €4.3 billion.

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SOURCE Daimler North America - Corporate Communications