Mercedes-Benz AG — Call Transcript 2007

Nov 16, 2007

Q3 2007 Results Conference Call October 25, 2007

Bodo Uebber

Member of the Board of Management Finance & Controlling and Daimler Financial Services

Impact of Chrysler transaction YTD 2007

Cash impact:

• Cash inflow of €25.6 billion from Cerberus, of which €24.7 billion are related to the transfer of inter-company loans
• Including restructuring expenses until closing, total cash impact from transaction is negative at €0.5 billion
• Cash outflow of €0.3 billion for transaction costs
• Cash outflow of €0.5 billion for early redemption of Chrysler debt
• Net profit impact from Chrysler ongoing operations/transaction of minus €3.1 billion:
• Loss from Chrysler's ongoing operations of €0.9 billion (after taxes) (adjusted for discontinued depreciation of €1.7 billion)
• Transaction impact of minus €2.2 billion (after taxes), reflecting:
  • Expenses for early redemption of Chrysler debt in the amount of (€0.5) billion
  • Transaction costs of (€0.3) billion
  • Loss from deconsolidation of (€0.8) billion
  • Discontinued depreciation of €1.7 billion
  • Valuation allowances on deferred tax assets in the amount of (€2.2) billion (booked in net profit from continuing operations)

Key financials

i b i l l i f € n o n s o – –	Q 3 2 0 0 6	Q 3 2 0 0 7
i ( i f i ) U l h d t t t n s a e s n o u s a n s o u n s	5 1 4	5 3 7
R e v e n u e s	2 4 2	2 5 7
E B I T	1. 8	1. 9
N f i ( l ) t t e p r o o s s	0 9	( ) 1. 5
f h i h l i l l d f d t t t o c a a o n a o a n c e s o n e e r r e a a s s e s w v u w x	–	( 2. 2 )
i i E h ( € ) a r n n g s p e r s a r e n	0 8 2	( ) 1. 4 7
f i i i S F h l d l b ( J ) t t. r e e c a s o w n u s r a u s n e s s a n e p –	0 0 3	5 7
N l i i d i i d i l b i ( 2 0 0 6 d ) t t t e q u y n u s r a u s n e s s : y e a r- e n	9 9	1 3 7
		3

Higher unit sales and revenues due to success of new products

Mercedes-Benz Cars

Mercedes-Benz Cars

Products

C-Class station wagon, C-Class sedan and smart fortwo

Lower unit sales and revenues due to the drop in demand in the NAFTA region and Japan

Daimler Trucks

• Higher volume in Europe and Latin America- Efficiency enhancements - Extended use of production equipment Lower sales in the NAFTA region and Japan EBIT impacted by weak truck demand in the NAFTA region and Japan in millions of € –EBITQ3 2006EBITQ3 2007565480 85

Daimler Trucks

ProductsBLUETEC – Actros, Axor and Atego

Lower EBIT reflects burdens from setting up a new organization in the NAFTA region

Further growth in Eastern Europe and Latin America

Q3 2006

• Higher sales and extended use of production equipment at Mercedes-Benz Vans - Higher unit sales by Daimler Buses, primarily in Latin America Lower contribution from EADS Special income in Q3 2006 from sale of real estateDecrease in EBIT as a result of lower contribution from EADS and the sale of real estate in the prior-year quarter in millions of € –EBITEBIT341 319 22

Q3 2007

Vans, Buses, Other

ProductsVan models Vito and Sprinter Bus models Citaro and Conecto

Net profit affected by valuation allowances on deferred tax assets after the Chrysler transaction

in millions of € –

Key balance-sheet and financial figures

i i l l i f € n m o n s o – –	D 3 1, 2 0 0 6 e c	S 3 0 2 0 0 7 t. e p ,
D i l G a m e r r o p u
1 ) E i i t t q u y r a o	1 6 % 5	2 7 5 %
G l i i d i t r o s s q u y	1 4 4 4 7 ,	2 3 5 1 6 ,
2 ) F h f l ( J S b ) t r e e c a s o w a n u a r y e p e m e r –	6 7	9 2 5 7 ,
I d i l B i t n s r a s n e s s u u
1 ) E i i t t q r a o u y	2 2 % 7	3 3 % 4
i i i N l d t t e q u y	9 8 6 1 ,	1 3 6 5 2 ,
F h f l ( J S b ) t r e e c a s o a n a r e p e m e r w u y –	2 8	6 5 7 5 ,

1) Excluding dividend payment

2) After net debt financing of Daimler Financial Services

Current status of the share buyback program

• 15.8 million shares had been bought back by September 30, equivalent to €1.05 billion
• 13.2 million shares were canceled effective at the end of September
• Shares bought back between the end of September and the end of December will be canceled by year-end 2007
• We are in line to buy back shares in the amount of €3.5 billion by the end of December 2007

Sales outlook 2007

• Mercedes-Benz Cars assumes unit sales in full-year 2007 to surpass the record level of the prior year.
• Daimler Trucks anticipates lower unit sales than in 2006, reflecting sharp decreases in the US, Canada and Japan, related to stricter emission regulations, offsetting positive developments in Europe and Latin America.
• Mercedes-Benz Vans expects an increase in unit sales due to strong demand for the new Sprinter and Vito/Viano.
• Daimler Buses anticipates unit sales to exceed the high level of the prior year.

Earnings outlook FY 2007

• Mercedes-Benz Cars expects to achieve significantly more than 8% ROS in 2007 and aims to increase its ROS to 10% by the year 2010.
• Daimler Trucks expects earnings in the magnitude of the prior year despite market decline in the United States and Japan.
• Daimler Financial Services incurs expenses due to the separation of its NAFTA business. However, it assumes it will achieve a return on equity of more than 14%.
• Group EBIT of at least €8.5 billion expected, including:
• a gain of €1.4 billion from the transfer of interest in EADS
• charges of €0.3 billion related to the new management model

Q3 2007 Results Conference Call October 25, 2007

Bodo Uebber

Member of the Board of Management Finance & Controlling and Daimler Financial Services

Special items affecting EBIT

i i l l i f € n m o n s o – –	3 d t r q a r e r u		J S b t a n a r e p e m e r u y –
	2 0 0 6	2 0 0 7	2 0 0 6	2 0 0 7
M d B C e r c e e s- e n a r s z
D i i i f f f t t t s c o n n u a o n o s m a r o r o u r	4 0	–	( ) 9 5 5	–
f C O H d d i i h R E t t t t t e a c o n r e c o n n e c o n e o u u x	( 4 7 )	–	( 2 7 0 )	–
F i i l f l i t e n a n c a s u p p o r o r s u p p r s	–	–	–	( 8 2 )
i D l T k a m e r r u c s
S l f l i J t t a e o r e a e s a e n a p a n	–	–	–	6 8
V B O h t a n s, u s e s, e r
f f S T i i E A D t t r a n s e r o n e r e s n	4	3 7	7 6 0	1, 5 6 1
R i E A D S t t t e s r u c u r n g p r o g r a m a	–	–	–	( ) 1 1 4
i f f f- i i D l h h b s p o s a o o g w a y u s n e s s	–	–	2 3 8	–
S l f l t t a e o r e a e s a e	8 6	–	8 6	–
R i l i i t e c o n c a o n
N d l t e m a n a g e m e n m o e w	( 4 7 )	( 6 7 )	( 1 8 4 )	( 1 6 0 )

S b 3 0 2 0 0 7 t e e e p m r ,
I B	F S
1 9 5 3 1 ,	6 7 3
3 0 3 3 ,	1 8 9
2 2 6 5 4 ,	9 2 5
( 1 0 1 9 1 ) ,	( 4 8 3 3 ) 7 ,
1, 2 9 7	–
3 6 2 1 5 ,	( 8 ) 4 7 7 1 ,

Funding status of pension and healthcare benefits (continuing operations)

i b i l l i f € n o n s o – –	D 3 1, 2 0 0 6 e c	S 3 0 2 0 0 7 t. e p ,
i f i P b t e n s o n e n e s
B f i b l i i t t e n e o g a o n s	( ) 1 7 1	( ) 1 7 4
P l t a n a s s e s	1 3 3	3 8 1
d d F t t n e s a s u u	( ) 3 8	( 3 ) 6
l h b f i H t t e c e e e s a a r n
f i i i B b l t t e n e o g a o n s	( 0 9 )	( ) 0 9
P l t a n a s s e s	-	–
R i b M d i A t t e m u r s e m e n e c a r e c	0 1	0 1
F d d t t n e s a s u u	( 0 8 )	( 0 8 )
		23

Cash-flow figures for the period of January through September 2007

in millions of € –

2) After net debt financing of Daimler Financial Services

Disclaimer

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an economic downturn or slow economic growth in important economic regions, especially in Europe or North America; changes in currency exchange rates and interest rates; the introduction of competing products and the possible lack of acceptance of our products or services which may limit our ability to raise prices; price increases in fuel, raw materials, and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a decline in resale prices of used vehicles; the business outlook for Daimler Trucks, which may be affected as a result of a longer than originally expected sustained weakness in demand of the US and Japanese commercial vehicle markets; the effective implementation of cost reduction and efficiency optimization programs; the business outlook of Chrysler, in which we hold an equity interest, including its ability to successfully implement its Recovery and Transformation Plan; the business outlook of EADS, in which we hold an equity interest, including the financial effects of delays in and potentially lower volumes of future aircraft deliveries; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety, the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk Report" in DaimlerChrysler's most recent Annual Report and under the headings "Risk Factors" and "Legal Proceedings" in DaimlerChrysler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our 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. Any forward-looking statement speaks only as of the date on which it is made.