Agreement in Principle on Settlement of Litigation concerning Toll Collect - Possible Implications for Financial Indicators

Contact:
Hendrik Sackmann
Tel.: +49 (0)711 17 35014

May 16, 2018

Agreement in Principle on Settlement of Litigation concerning Toll Collect - Possible Implications for Financial Indicators
 

Stuttgart - Today, Daimler AG (through its subsidiary Daimler Financial Services AG) has reached a commercial agreement in principle with Deutsche Telekom AG and the German Federal Government concerning a comprehensive settlement of the litigation concerning Toll Collect that has been pending since 2004.
 

A final settlement agreement is to include a final resolution of all litigation proceedings concerning Toll Collect. The agreement shall cover all claims that were raised in this context. It is to be expected that Daimler Group will face payment obligations amounting to approximately EUR 0.6 billion in case of a settlement.
 

The final agreement on a settlement agreement and its precise content are subject to further negotiation between the parties. A binding settlement would require, besides agreement on a final settlement agreement, consent of the respective decision making bodies of the involved parties, in particular consent of the executive boards and the supervisory boards of Daimler AG and Daimler Financial Services AG. It is intended to also involve the arbitration tribunal in the conclusion of the settlement agreement. Daimler AG regards a swift settlement of the arbitration proceedings after a very long time to be reasonable for all involved parties and
co-operates constructively in order to implement the current commercial agreement in everybody's interest.
 

At the level of Daimler Group, a settlement could have a one-time negative EBIT effect in the magnitude of EUR0.6 billion that would impact the Daimler Group result in the current quarter and would be taken into consideration at Daimler Financial Services. Based on this negative one-time effect, Daimler now assumes that the result of Daimler Financial Services in 2018 will be in the magnitude of prior-year's level. The expectation for the Group EBIT remains unchanged slightly higher level than in the previous year.


Contact:
Jörg Howe, +49 711 17 41341, joerg.howe@daimler.com
Hendrik Sackmann, +49 711 17 35014, hendrik.sackmann@daimler.com
Silke Walters, +49 711 17 40624, silke.walters@daimler.com
 

Further information from Daimler is available at:
www.media.daimler.com and www.daimler.com

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