Mercedes-Benz AG — Call Transcript 2007

Jul 25, 2007

DAIMLERCHRYSLER

PRELIMINARY Q2 2007 RESULTS CONFERENCE CALL

Dr. Dieter ZetscheChairman of the Board of Management / Head of Mercedes Car Group

Stuttgart July 25, 2007

LOWER UNIT SALES BUT HIGHER REVENUES DUE TO IMPROVED SALES STRUCTURE

IMPROVED EARNINGS REFLECT SUCCESS OF NEW PRODUCTS AND FURTHER EFFICIENCY ENHANCEMENTS

in millions of EUR –

Mercedes Car Group

Mercedes Car Group

VOLUME IN NAFTA AND JAPAN AFFECTED BY STRICTER EMISSION REGULATIONS

STRONG EARNINGS LEVEL REFLECTS SUCCESSFUL MANAGEMENT OF CYCLE

in millions of EUR –

Truck Group

SUCCESS OF NEW SPRINTER DRIVES GROWTH IN VOLUME

LOWER EARNINGS DUE TO HIGH SPECIAL GAIN (EADS) IN THE PRIOR-YEAR QUARTER

in millions of EUR –

Van, Bus, Other

SALES OUTLOOK 2007

Mercedes Car Group continues to assume unit sales in the full-year 2007 to at least equal the record level of the prior year.

The Truck Group expects significantly lower unit sales than in 2006, reflecting significant decreases in the US, Canada and Japan, all related to stricter emission regulations. A positive development is anticipated for Europe and Latin America.

Vans expect an increase in sales due to strong demand for the new Sprinter and Vito/Viano vans.

Buses anticipate unit sales at the high level of the prior year.

INCREASE OF MARGIN TARGET FOR MERCEDES CAR GROUP:

10% ROS TO BE ACHIEVED BY 2010 AT THE LATEST

• Ongoing efficiency gains due to measures resulting from the CORE program
• Benefits from modular strategy
• Top-line growth due to
  • Newly introduced products
  • Additional products, e.g. SUT
  • Market growth, particularly in Asia
  • New brand monitoring and sales system

DAIMLERCHRYSLER

PRELIMINARY Q2 2007 RESULTS CONFERENCE CALL

Q & A –

–

Stuttgart July 25, 2007

DISCLAIMER

This document contains forward-looking statements that reflect our current views about future events, including, among others, the pendency and consummation of the transaction with Cerberus Capital Management, L.P. regarding Chrysler Group. 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, especially in Europe or North America; changes in currency exchange rates and interest rates; introduction of competing products and possible lack of acceptance of our products or services; competitive pressures which may limit our ability to reduce sales incentives and raise prices; price increases in fuel, raw materials, and precious metals; disruption of production or delivery of new vehicles due to shortages of materials, labor strikes, or supplier insolvencies; a decline in resale prices of used vehicles; our ability to close the transaction with Cerberus Capital Management, L.P., regarding Chrysler Group; the ability of the Chrysler Group to implement successfully its Recovery and Transformation Plan; the business outlook for our Truck Group, which may experience a significant decline in demand as a result of accelerated purchases in 2006 made in advance of the effectiveness of new emission regulations; effective implementation of cost reduction and efficiency optimization programs, including our new management model; the business outlook of our equity investee EADS, including the financial effects of delays in and potentially lower volume 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. 15

SPECIAL ITEMS AFFECTING EBIT

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