Preliminary results for the third quarter 2020 above market expectations and positive impact for the remainder of the year 2020 expected

STUTTGART, Germany, Oct. 15, 2020 /PRNewswire/ -- Daimler has seen a faster than expected market recovery and a particularly strong September performance. This, combined with diligent cost discipline, extensive cash preservation measures and further efficiency enhancements, means that Industrial Free Cash Flow, Daimler Group EBIT adjusted, Mercedes-Benz Cars & Vans EBIT adjusted, Daimler Trucks & Buses EBIT adjusted and Daimler Mobility EBIT adjusted are all significantly above market expectations for the third quarter of 2020.

The unusually strong Industrial Free Cash Flow in the quarter reflects the extensive cost and cash preservation measures and strong operative performances across all divisions leading to favorable cash-conversion ratios. In addition, the quarter saw the expected receipt of a € 1.2 billion dividend from Daimler's Chinese joint venture BBAC and a positive contribution from working capital.

"The third quarter shows a very strong performance and provides further proof that we are on the right path to reducing the break-even of our company. At the same time, we continued to seize opportunities from improving markets with the great products of Mercedes-Benz Cars & Vans and Daimler Trucks & Buses. This gives us confidence to push ahead with our work both on the strategic and operational side of the business. We expect positive momentum to continue in the fourth quarter, however with the regular year-end seasonality," stated Harald Wilhelm, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Mobility.

The following stated figures for the third quarter 2020 are preliminary and unaudited:

• Industrial Free Cash Flow: € 5,139 million (consensus: € 2,973 million)
  Industrial Free Cash Flow adjusted € 5,345 million (consensus: n/a)
  
  
• Net Industrial Liquidity: € 13.1 billion (Q2-20: €9.5 billion)
  
  
• Daimler Group EBIT: € 3,071 million (consensus: € 1,950 million)
  EBIT adjusted: € 3,480 million (consensus: € 2,498 million)
  
  
• Mercedes-Benz Cars & Vans EBIT: € 2,118 million (consensus: € 1,320 million)
  EBIT adjusted: € 2,417 million (consensus: € 1,782 million)
  Return on Sales (RoS) adjusted: 9.4% (consensus: 6.5%)
  
  
• Daimler Trucks & Buses EBIT: € 541 million (consensus: € 350 million)
  EBIT adjusted: € 603 million (consensus: € 400 million)
  Return on Sales (RoS) adjusted: 6.5% (consensus: 4.3%)
  
  
• Daimler Mobility EBIT: € 590 million (consensus: € 381 million)
  EBIT adjusted: € 602 million (consensus: € 406 million)
  Return on Equity (RoE) adjusted: 16.5%

The preliminary results include the following adjustments affecting EBIT:

• Expenses of € 407 million mainly for ongoing efficiency programs and including € 68 million for adjustment and realignment of capacities within the global production network in connection with the intended sale of the car plant in Hambach.
• Total of legal proceedings and related measures for Daimler Group: € 2 million.

Given the development of the third quarter, Daimler also expects a positive impact for the remainder of the year, however with the fourth quarter 2020 to show the usual year-end seasonality pattern. Please note this statement is made under the assumption of no further COVID-19 lockdowns.

Accordingly, Daimler expects to publish an updated guidance for the financial year 2020 together with its quarter results on October 23, 2020.

EBIT, EBIT adjusted, RoS adjusted, RoE adjusted, Industrial Free Cash Flow and Industrial Free Cash Flow adjusted are defined on pp. 64 and 73 of the Daimler Annual Report 2019.

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

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates and tariff regulations; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report or the current Interim Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the 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 since they are based solely on the circumstances at the date of publication.

Daimler at a glance
Daimler AG is one of the world's most successful automotive companies. With its Mercedes-Benz Cars & Vans, Daimler Trucks & Buses and Daimler Mobility divisions, the Group is one of the leading global suppliers of premium cars and one of the world's largest manufacturer of commercial vehicles. Daimler Mobility offers financing, leasing, fleet management, investments, credit card and insurance brokerage as well as innovative mobility services. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Daimler sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company's focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Daimler continues to invest systematically in the development of efficient powertrains – from high-tech combustion engines and hybrid vehicles to all-electric powertrains with battery or fuel cell – with the goal of making locally emission-free driving possible in the long term. The company's efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts. Daimler regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Daimler sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and South America, Asia and Africa. In addition to Mercedes-Benz, the world's most valuable premium automotive brand (source: Interbrand study, 17 Oct. 2019), and Mercedes-AMG, Mercedes-Maybach and Mercedes me, its brand portfolio includes smart, EQ, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses as well as the brands of Daimler Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Daimler Truck Financial. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol DAI). In 2019, the Group had a workforce of around 298,700 and sold 3.3 million vehicles. Group revenues amounted to €172.7 billion and Group EBIT to €4.3 billion.

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SOURCE Daimler North America - Corporate Communications