1st Quarter Results 2021.

The Group’s investments in property, plant and equipment in the first quarter totaled €1.2 billion (Q1 2020: €1.3 billion). Research and development expenditure amounted to €2.4 billion (Q1 2020: €2.4 billion). The free cash flow of the industrial business was an inflow of €1.8 billion (Q1 2020: outflow of €2.3 billion), including important upfront investments in future products. This turnaround was triggered by a strong operating performance, focused capital allocation as well as effective working-capital measures. The adjusted free cash flow of the industrial business rebounded to €2.8 billion (Q1 2020: outflow of €1.9 billion). The net liquidity of the industrial business increased to €20.1 billion at the end of the first quarter, compared to €17.9 billion at year-end 2020. This is mainly a result of the strong free cash flow from the industrial business.

Sales by the Mercedes-Benz Cars & Vans division increased by 15% to 627,300 vehicles in the first quarter (Q1 2020: 546,700). Revenue was €26.9 billion (Q1 2020: €23.2 billion). EBIT amounted to €4,078 million (Q1 2020: €510 million) and the return on sales was 15.2% (Q1 2020: 2.2%). Adjusted EBIT reached €3,841 million (Q1 2020: €603 million) with the adjusted return on sales at 14.3% (Q1 2020: 2.6%). Cash flow before interest and taxes (CFBIT) was an inflow of €1,968 million (Q1 2020: outflow of €1,729 million). Adjusted CFBIT amounted to an inflow of €3,129 million (Q1 2020: outflow of €1,281 million). The adjusted cash conversion rate (CCR) was plus 0.8 (Q1 2020: minus 2.1).

Sales by Mercedes-Benz Cars rose by 15% to 538,900 vehicles in the first quarter (Q1 2020: 470,600). Mercedes-Benz Vans’ sales were up 16% to 88,400 vehicles (Q1 2020: 76,200).

The Daimler Trucks & Buses division showed an increase in unit sales of 4% to 101,300 vehicles in the first quarter (Q1 2020: 97,600). Revenue was €8.7 billion (Q1 2020: €8.7 billion). EBIT amounted to €1,041 million (Q1 2020: €247 million) and the return on sales was 12.0% (Q1 2020: 2.8%). Adjusted EBIT was €518 million (Q1 2020: €247 million) and adjusted return on sales was 6.0% (Q1 2020: 2.8%). Cash flow before interest and taxes (CFBIT) soared to an inflow of €621 million (Q1 2020: outflow of €85 million). Adjusted CFBIT amounted to an inflow of €435 million (Q1 2020: outflow of €85 million). The adjusted cash conversion rate (CCR) was plus 0.8 (Q1 2020: minus 0.3).

Unit sales by Daimler Trucks increased by 6% to 97,600 vehicles in the first quarter (Q1 2020: 92,500). Daimler Buses sold 3,700 vehicles, a decrease of 27% (Q1 2020: 5,100).

At Daimler Mobility, new business increased by 4% to €16.8 billion in the first quarter (Q1 2020: €16.2 billion), driven by strong sales developments at the industrial business. Contract volume was €152.7 billion at the end of the quarter (end of 2020: €150.6 billion). Revenue was €7.0 billion (Q1 2020: €7.1 billion). The division’s EBIT amounted to €744 million (Q1 2020: €58 million). At 20.2%, return on equity was much higher than the 1.6% in the prior-year period. Adjusted EBIT was €691 million (Q1 2020: €58 million) and adjusted return on equity was 18.7% (Q1 2020: 1.6%).

Daimler intends to generate value for its shareholders and to raise its profitability by creating two pure-play companies, one focused on cars and vans with the other on trucks and buses. It is intended that a significant majority stake in Daimler Truck will be distributed to Daimler shareholders. The transaction and the listing of Daimler Truck on the Frankfurt Stock Exchange are well on track and expected to be completed before year-end 2021. The project is currently in the preparatory and auditing phase. At an extraordinary general meeting in autumn, Daimler shareholders will have to approve this historic strategic step.