Pioneers of Sustainable Mobility. Annual Report 2009. Key Figures Daimler Group 2009 20082007 09/08 Amounts in millions of € % change Revenue 78,924 98,469 101,569 -20 1 Western Europe 36,458 46,276 49,753 -21 thereof Germany 18,788 21,832 22,582 -14 NAFTA 19,380 23,243 25,136 -17 thereof United States 16,569 19,956 21,846 -17 Asia 12,435 13,840 11,918 -10 thereof China 4,349 3,226 1,951 +35 Other markets 10,651 15,110 14,762 -30 Employees (December 31) 256,407 273,216 272,382 -6 Investment in property, plant and equipment 2,423 3,559 2,927 -32 Research and development expenditure 4,181 4,442 4,148 -6 thereof capitalized 1,285 1,387 990 -7 Cash provided by (used for) operating activities (including discontinued operations) 10,961 (786) 7,146 . EBIT (1,513) 2,730 8,710 . Value added (including discontinued operations) (4,644) (1,147) 1,380 . Net profit (loss) (2,644) 1,414 3,985 . Net profit (loss) from continuing operations (2,644) 1,704 4,855 . Earnings (loss) per share (in €) (2.63) 1.41 3.83 . Earnings (loss) per share, continuing operations (in €) (2.63) 1.71 4.67 . Total dividend 0 556 1,928 . Dividend per share (in €) 0.00 0.60 2.00 . 1 Adjusted for the effects of currency translation and changes in the consolidated group, decrease in revenue of 21%. With the B-Class F-CELL, Mercedes-Benz is the world’s first manufacturer to put a fuel-cell car on the road that was produced under series conditions. The drive system of this environ- mentally friendly electric vehicle offers strong performance similar to a 2-liter gasoline engine combined with full everyday practicality. Thanks to its long range of 400 kilometers and short fill-up times of about three minutes, locally emission-free mobility is now a reality with the B-Class F-CELL also on longer journeys. Production of the B-Class F-CELL started with a small series at the end of 2009. The first of approximately 200 cars will be delivered to customers in Europe and the United States in the spring of 2010. Divisions 2009 2008 2007 09/08 Amounts in millions of € % change Mercedes-Benz Cars EBIT (500) 2,117 4,753 . Revenue 41,318 47,772 52,430 -14 Return on sales (1.2%) 4.4% 9.1% . Investment in property, plant and equipment 1,618 2,246 1,910 -28 Research and development expenditure 2,696 2,994 2,733 -10 thereof capitalized 913 1,060 705 -14 Unit sales 1,093,905 1,273,013 1,293,184 -14 Employees (Dec. 31) 93,572 97,303 97,526 -4 Daimler Trucks EBIT (1,001) 1,607 2,121 . Revenue 18,360 28,572 28,466 -36 Return on sales (5.5%) 5.6% 7.5% . Investment in property, plant and equipment 597 991 766 -40 Research and development expenditure 1,116 1,056 1,047 +6 thereof capitalized 368 326 283 +13 Unit sales 259,328 472,074 467,667 -45 Employees (Dec. 31) 70,699 79,415 80,067 -11 Mercedes-Benz Vans EBIT 26 818 571 -97 Revenue 6,215 9,479 9,341 -34 Return on sales 0.4% 8.6% 6.1% . Investment in property, plant and equipment 113 150 138 -25 Research and development expenditure 193 228 220 -15 thereof capitalized 0 0 0 . Unit sales 165,576 287,198 289,073 -42 Employees (Dec. 31) 15,226 16,775 17,524 -9 Daimler Buses EBIT 183 406 308 -55 Revenue 4,238 4,808 4,350 -12 Return on sales 4.3% 8.4% 7.1% . Investment in property, plant and equipment 78 117 92 -33 Research and development expenditure 212 178 143 +19 thereof capitalized 5 1 2 +400 Unit sales 32,482 40,591 39,049 -20 Employees (Dec. 31) 17,188 18,110 17,286 -5 Daimler Financial Services EBIT 9 677 630 -99 Revenue 11,996 11,964 10,967 +0 New business 25,066 29,514 27,611 -15 Contract volume 58,350 63,353 59,143 -8 Investment in property, plant and equipment 14 41 29 -66 Employees (Dec. 31) 6,800 7,116 6,743 -4 Daimler Brand Portfolio We invented the automobile – now we are passionately shaping its future. As a pioneer of automotive engineering, we feel inspired and obliged to continue this proud tradition with groundbreaking technologies and high-quality products. Our philosophy is clear: We give of our best for customers who expect the best – and we live a culture of excellence that is based on shared values. Our corporate history is full of innovations and pioneering achievements; they are the foundation and ongoing stimulus for our claim to leadership in the automotive industry. The principle of sustainable mobility underlies all of our thoughts and actions. Our goal is to successfully meet the demands of future mobility. And in doing so, we intend to create lasting value – for our shareholders, customers and workforce, and for society in general. Dieter Zetsche Wolfgang Bernhard Wilfried Porth Andreas Renschler Bodo Uebber Thomas Weber With this Annual Report 2009, we would like to give you an insight into our various activities as “Pioneers of Sustainable Mobility.” We have arranged the contents of the report in seven sections. The first section provides basic information and some examples from the Daimler world; the report’s title subject is attractively presented in a series of pictures on pages 10 to 49, where we describe our path to sustain- able and safe mobility. The Management Report describes and analyzes the Group’s business development, including its financial position, liquidity and capital resources, and prof- itability. Other sections provide information on our divisions, the issue of sustainability, corporate governance and the con- solidated financial statements. Contents 2 - 57 134 - 143 Overview of the Group Sustainability 4 Chairman’s Letter 136 Innovation, Safety and the Environment 8 The Board of Management 140 Human Resources 10 Pioneering Spirit and Innovative Strength 142 Social Responsibility 50 Important Events in 2009 54 Daimler Shares 144 - 169 Corporate Governance 58 - 117 Management Report 146 Report of the Supervisory Board 150 Members of the Supervisory Board 60 Business and General Conditions 154 Report of the Audit Committee 73 Profitability 156 Remuneration Report 88 Liquidity and Capital Resources 162 Compliance 95 Financial Position 164 Corporate Governance Report 97 Daimler AG (abridged version according to HGB) 168 Declaration of Compliance with the 100 Overall Assessment of the Economic Situation German Corporate Governance Code 101 Events after the End of the 2009 Financial Year 102 Risk Report 111 Outlook 170 - 251 Consolidated Financial Statements 118 - 133 172 Responsibility Statement Divisions 173 Independent Auditors’ Report 174 Consolidated Statement of Income (Loss) 120 Mercedes-Benz Cars 175 Consolidated Statement of Comprehensive Income (Loss) 124 Daimler Trucks 176 Consolidated Balance Sheet 128 Mercedes-Benz Vans 177 Consolidated Statement of Changes in Equity 130 Daimler Buses 178 Consolidated Statement of Cash Flows 132 Daimler Financial Services 179 Notes to the Consolidated Financial Statements 252 - 256 Additional Information 252 Ten Year Summary 254 Glossary 255 Index 256 International Representative Offices Internet | Information | Addresses Daimler Worldwide Financial Calendar 2010 Annual Report 2009 | Contents | 3 » The situation in 2009 was exceptional, but so was our determination. « 2009 will be fixed in our memories as the year of the global financial and economic crisis. World economic output fell for the first time since the Second World War. Many car markets temporarily contracted by 20 to 40 percent. The decline of commercial vehicle markets was even more dramatic. This market slump is also reflected in our results: EBIT amounted to minus 1.5 billion euros and the Group posted a net loss of 2.6 billion euros. That is unsatisfactory – yet the loss would have been even bigger if we had not taken enormous countermeasures. We systematically streamlined our business processes, increased efficiency, reduced costs, cancelled bonuses and otherwise left no stone unturned. Those who could bear more sacrifice were required to make one. No one enjoys strict savings, short-time work or waiving a portion of one’s income. But the exceptional nature of the market crisis left us with no alternative. And management, along with our represented employees, often worked together in coordinated actions. Due to the extreme conditions of crisis year 2009, the Board of Management and the Supervisory Board decided that - as an exception - no dividend should be paid out for the year 2009. We did not make this decision easily. But it reflects our earnings situation in 2009. For the year 2010, you can assume that Daimler will pay a dividend once again. Why do we have this expectation? In brief: the facts. Daimler did not limit itself to just “tightening its belt” during the crisis. At the same time, we created the right conditions for future success – in terms of our strategy, our technology, and also, of course, our products. For example, the E-Class series has been available in all four model versions since the beginning of 2010; this gives us a lead over the competition. We will follow that up as the year progresses – with the new CLS, among others. We will also launch the most fuel-efficient and environmentally compatible S-Class to date. Attractive new products will soon be launched by Trucks, Vans and Buses. And no company is ahead of us in the area of electric mobility. All of this shows that we are exiting the crisis with plenty of “torque” – and we are determined to increase our pace even further.