Mercedes-Benz AG — Call Transcript 2007

May 15, 2007

DAIMLERCHRYSLERDAIMLERCHRYSLER

Q1 2007 RESULTS Q1 2007 RESULTS CONFERENCE CALL CONFERENCE CALL

Bodo Uebber Bodo Uebber Member of the Board of Management Member of the Board of Management Finance & Controlling / Financial Services Finance & Controlling / Financial Services

May 15, 2007 May 15, 2007

SUMMARY

Revenues decreased by 6% to EUR 35.4 billion; Adjusted for exchange-rate effects and changes in the consolidated Group at last year's level

EBIT of EUR 2.0 billion (+73%), including:

• EUR 914 million for Chrysler Group's Recovery and Transformation Plan
• EUR 54 million related to the new management model
• a gain of EUR 1,563 million from the transfer of interest in EADS

Net profit more than doubled to EUR 2.0 billion

KEY FINANCIAL FIGURES

in billions of EUR –

	Q 1 2 0 0 6	Q 1 2 0 0 7
S U i l t n a e s ( i h d f i ) t t n o u s a n s o u n s	1 1 5 3 ,	1 0 9 9 ,
R e e n e s v u	3 4 7	3 5 4
E B I T	1 2	2 0
N P f i t t e r o	0 8	2 0
S E i h a r n n g s p e r a r e ( i E U R ) n	0 7 7	1 8 9
C F h F l I d i l B i t r e e a s o n s r a s n e s s w u u	1 1	2 9
i i i i i N L d I d l B t t t e q n s r a s n e s s u y u u ( ) 2 0 0 6 d e a r e n : y	9 9	1 2 9

LOWER UNIT SALES REFLECT C-CLASS AND SMART MODEL CHANGEOVER

UNIT SALES AND REVENUES MAINLY IMPACTED BY FURTHER INVENTORY ADJUSTMENTS

EARNINGS REFLECT LOWER SHIPMENTS AND CHARGES FOR THE RECOVERY AND TRANSFORMATION PLAN

in millions of EUR –

STRONG DEMAND FOR BLUETEC TRUCKS IN EUROPE AND HIGH VOLUME IN NAFTA

HIGHER EARNINGS DUE TO HIGHER VOLUME IN EUROPE / LATIN AMERICA AND EFFICIENCY IMPROVEMENTS

in millions of EUR –

STABLE DEVELOPMENT AT FINANCIAL SERVICES, COMPARISON IMPACTED BY EXCHANGE RATE EFFECTS

EXCHANGE RATE EFFECTS AND HIGHER COST OF RISK LARGELY OFFSET BY GROWTH IN PORTFOLIO

in millions of EUR –

ONGOING GROWTH IN VOLUME FOR VANS AND BUSES

*) Includes EUR 0.4 billion related to off-highway business

– in millions of EUR –

NET PROFIT AND EARNINGS PER SHARE

KEY BALANCE SHEET AND FINANCIAL FIGURES

f i b i l l i E U R n o n s o - -	D 3 1 e c 2 0 0 6	M 3 1 a r. 2 0 0 7
C D i l h l G a m e r r y s e r r o u p
) 1 E i i t t q u y r a o ƒ	1 6 % 5	1 9 % 7
G l i i d i t r o s s q ƒ u y	1 4 4	1 5 5
I d i l B i t n u s r a u s n e s s
) 1 E i i t t q u y r a o ƒ	2 2 % 7	2 9 2 %
N l i i d i t t e q ƒ u y	9 9	1 2 9
S F d d t t u n e a u s
P i e n s o n s ƒ	( ) 2 3	( ) 2 0
H l h t e a c a r e ƒ	( ) 1 4 1	( ) 1 4 0
F h f l ( J M h ) r e e c a s o w a n u a r y a r c –
) 2 G r o u p ƒ	1 0	3 0
I d i l b i t n s r a s n e s s ƒ u u	1 1	2 9

1) Excluding dividend payment

2) After net debt financing Financial Services

EARNINGS OUTLOOK 2007

• Mercedes Car Group expects to achieve more than 7% ROS.
• EBIT at Chrysler Group is expected to be negative at EUR 1.6 billion, including charges of EUR 1.0 billion for the Recovery and Transformation Plan.
• The Truck Group earnings will be below 2006 level due to lower volume in major markets. However, it expects to be well above its costs of capital.
• Financial Services will continue to support Group sales and aims to achieve a return on equity of more than 14%.
• Group EBIT expected at EUR 7 billion, including
• A gain of EUR 1.6 billion from the transfer of interest in EADS
• Charges of EUR 1.0 billion for the Recovery and Transformation Plan
• Charges of EUR 0.6 billion related to the new management model
• The Group guidance is based on the current structure and does not yet include the future concept for the Chrysler Group and the realignment of DaimlerChrysler AG.

SUMMARY OF THE CHRYSLER GROUP TRANSACTION

• Cerberus affiliate will acquire 80.1% equity interest in Chrysler Group and Chrysler-related financial services business for EÚR 5.5 billion.
• EUR 4.5 billion of this will go into the new Chrysler Holding LLC; EUR 1.0 billion will go to DaimlerChrysler.
• Combined with a loan of EUR 0.3 billion and fixed compensation for Chrysler cash needs of EUR 1.2 billion until the closing, net cash outflow will total EUR 0.5 billion.
• Discharge of long-term liabilities of Chrysler Group will cause prepayment compensation of approx. EUR 650 million.
• Obligations for pensions and healthcare costs to be retained by Chrysler companies
• DaimlerChrysler's net profit according to IFRS in 2007 to be reduced in a range of EUR 3 to 4 billion

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.

SPECIAL ITEMS AFFECTING EBIT

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

STATUS OF PENSIONS AND POSTRETIREMENT HEALTH CARE BENEFITS

	P e n	i s o n s	H l h C t e a a r e
f i b i l l i E U R n o n s o - -	D 3 1 e c 2 0 0 6	M 3 1 a r. 2 0 0 7	D 3 1 e c 2 0 0 6	M 3 1 a r. 2 0 0 7
B f i b l i i t t e n e o g a o n s	( ) 3 7 5	( ) 3 4 7	( ) 1 3 7	( ) 1 2 7
P l t a n a s s e s	3 2 5	3 4 5	1. 9	1. 9
S b- l t t o a u	( 2. 3 )	( 2. 0 )	( 1 5. 4 )	( 1 5. 3 )
R i b M d i A t t e m u r s e m e n e c a r e c	-	-	1. 3	1. 3
F d d t t u n e s a u s	( ) 2. 3	( ) 2. 0	( ) 1 4. 1	( ) 1 4. 0

CASH FLOW FIGURES FOR THE PERIOD FROM JANUARY THROUGH MARCH

in millions of EUR –

*) After net debt financing Financial Services ²⁵