 Group EBIT of €2,104 million in the second quarter (Q2 2009:
minus €1,005 million)
 Net profit of €1,312 million (Q2 2009: net loss of €1,062 million)
 Revenue substantially above prior-year level at €25.1 billion
(Q2 2009: €19.6 billion)
 Substantial increase in free cash flow to €2.5 billion
 Mercedes-Benz Cars targets EBIT of €4 billion for 2010
 Daimler Trucks anticipates EBIT of around €1 billion for 2010
Stuttgart – Recovering automotive markets around the world, strong growth
in major car and commercial-vehicle markets, an attractive product portfolio
and the implementation of efficiency improvements had a very positive
effect on Daimler AG (stock-exchange symbol DAI) in the second quarter of
2010. As already announced on July 16, Group EBIT amounted to
€2,104 million (Q2 2009: minus €1,005 million).
“Our strategy is paying off: We have a very dynamic development of unit
sales and revenue in all divisions. After what was already a very good first
quarter, we achieved excellent results in the second quarter,” stated
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG
and Head of Mercedes-Benz Cars. Mercedes-Benz Cars and Daimler Trucks
in particular posted significant improvements in their operating profit.

Zetsche remains confident for the full year: “We anticipate significant
revenue growth in 2010 and we are targeting EBIT from the ongoing
business of €6 billion.”
The positive development of EBIT in the second quarter led to a significant
improvement in net profit to €1,312 million (Q2 2009: net loss of
€1,062 million). Earnings per share amounted to €1.18 (Q2 2009: loss per
share of €0.99).
Unit sales up by 27% in the second quarter
In the second quarter of 2010, Daimler sold 496,500 cars and commercial
vehicles worldwide, surpassing the prior-year volume by 27%.
The Daimler Group’s second-quarter revenue increased significantly from
€19.6 billion in 2009 to €25.1 billion this year (+28%); adjusted for
exchange-rate effects, revenue grew by 21%.
The free cash flow of the industrial business was positive and increased
substantially by €1.1 billion to €2.5 billion.
At the end of the second quarter of 2010, Daimler employed 257,658
people worldwide (June 30, 2009: 257,427). Of that total, 163,507 were
employed in Germany (June 30, 2009: 162,818). Due to the current order
situation and the revival of demand around the world, short-time work was
terminated as of June 30, 2010, with just a few small exceptions.
Details of the divisions in the second quarter
The Mercedes-Benz Cars division increased its unit sales by 19% to
342,500 vehicles. For the Mercedes-Benz brand, this was the strongest
second quarter ever; its unit sales rose by 24% to 314,400 vehicles. For
lifecycle reasons, sales of the smart fortwo decreased to 27,100 units
(Q2 2009: 33,500). Mercedes-Benz Cars’ revenue increased by 33% to
€14.0 billion. EBIT rose by €1.7 billion to €1,376 million. The division’s
return on sales was 9.8% (Q2 2009: minus 3.2%).
The very positive earnings trend was primarily the result of increased vehicle
shipments, especially in China, as well as an improved product mix. The
substantial improvement in profitability was also caused by better pricing,
efficiency enhancements and slightly positive exchange-rate effects.
Daimler Trucks increased its unit sales by 55% to 83,800 vehicles. All of
the division’s major markets contributed to this positive development, in
particular Indonesia (+130%), the United States (+44%), Brazil (+50%) and
Europe (+39%). Revenue of €5.9 billion was also well above the prior-year
level (Q2 2009: €4.2 billion). The division also achieved a significant
improvement in its operating performance, with EBIT of €300 million
(Q2 2009: minus €508 million) and a return on sales of 5.1% (Q2 2009:
minus 12.0%).
The key factor for the earnings trend was the good development of unit
sales. There were other positive effects from the measures taken to reduce
costs, in particular from the repositioning of the subsidiaries Daimler Trucks
North America and Mitsubishi Fuso Truck and Bus Corporation. The ongoing
implementation of those programs reduced second-quarter EBIT by
€14 million (Q2 2009: €217 million).
Unit sales by Mercedes-Benz Vans increased by 42% to 59,400 vehicles.
Second-quarter revenue of €2.0 billion was also well above last year’s level (Q2 2009: €1.5 billion). EBIT amounted to €127 million (Q2 2009: minus
€10 million) and the return on sales improved to 6.4% (Q2 2009: minus
0.7%). The division’s earnings improvement was primarily the result of a
strong increase in unit sales compared to the second quarter of last year.
Negative exchange-rate effects were more than offset by sustained
efficiency gains.
Daimler Buses sold a total of 10,800 buses and chassis worldwide
(Q2 2009: 8,300). Revenue of €1.2 billion was higher than in the prior-year
quarter (€1.1 billion). EBIT also increased, to €79 million compared to
€49 million in the second quarter of last year. The return on sales was 6.6%
(Q2 2009: 4.4%). The main factors behind this earnings development were
positive exchange-rate effects and higher revenue resulting from increased
chassis shipments in Latin America.
The contract volume of Daimler Financial Services increased to
€63.8 billion at the end of the second quarter, which is 9% higher than at the
end of 2009. Adjusted for exchange-rate effects, the division’s portfolio
remained stable. New business amounted to €7.9 billion (Q2 2009:
€6.5 billion). EBIT improved substantially to €171 million (Q2 2009:
€79 million).
The earnings increase was mainly caused by lower risk expenses and higher
interest margins. In addition, gains were realized in connection with the sale
of non-automotive assets (€26 million). Expenses of €78 million were
incurred for the repositioning of business activities in Germany.
The reconciliation of the divisions’ EBIT to Group EBIT reflects Daimler’s
proportionate share in the results of its equity-method investment in EADS,
other gains or losses at the corporate level, and the effects on earnings of
eliminating internal transactions between the divisions.
The special items that affected Daimler’s EBIT in the second quarter of 2010
are shown in the table on page 8.
Outlook
Based on the divisions’ estimations, Daimler expects total unit sales to
increase significantly in 2010 (2009: 1.6 million vehicles).
The Daimler Group assumes that it will achieve significant revenue growth
in 2010 (Q2 2009: €78.9 billion).
In view of the good business development in all divisions and supported by
the favorable development of important exchange rates, the Daimler Group
has once again increased its earnings forecast. For 2010, EBIT from the
ongoing business of €6 billion is targeted.
This expectation is based on the continuation of a stable economic
development and the ongoing market success of the Group’s products. The
biggest risks are seen to be in the high volatility of the financial markets, as
well as in a worsening of the macroeconomic environment.
The divisions’ new expectations for EBIT from the ongoing business in 2010
are as follows:
 Mercedes-Benz Cars targets EBIT of €4 billion.
 Daimler Trucks anticipates EBIT of around €1 billion.
 Mercedes-Benz Vans assumes it will achieve EBIT in the magnitude
of €350 million.
 Daimler Buses expects to post EBIT of €180 million.
 Daimler Financial Services anticipates EBIT of approximately
€800 million.

Mercedes-Benz Cars will profit this year from the full availability of the new
E-Class models. Unit sales will be additionally boosted by the new super
sports car Mercedes-Benz SLS AMG, and as of autumn 2010 by the new
generations of the R-Class and the CL-Class. Starting in the third quarter of
2010, cars will gradually be equipped with new and particularly efficient sixand
eight-cylinder gasoline engines.
For the smart brand, an increase in demand is anticipated as of the third
quarter of 2010 following the launch of the new generation of the smart
fortwo. On the basis of an attractive and competitive range of vehicles, the
division assumes that unit sales of the Mercedes-Benz brand will increase at
a double-digit rate in 2010.
For the second half of the year 2010, the Mercedes-Benz Cars division
expects the positive trend of the first two quarters to continue, but no longer
with the same dynamism. Although a continuation of stable global sales
markets and an improving economic environment is anticipated, there are
still risks of a growth slowdown in some regions. An additional factor is that
personnel expenses will increase in the second half of the year due to the
termination of reduced working hours as of May 31, and the exchange rates
of currencies important to Daimler are highly volatile. There will be opposing,
positive effects, however, from the consistent implementation of the
efficiency program and an optimized product range.
Daimler Trucks expects a significant recovery of unit sales in 2010 due to
the stabilizing market situation in many major markets and the availability of
new models. Indonesia, the United States, Brazil and Europe will probably
remain the main drivers. In addition, market recovery is also anticipated in
Japan and Turkey.

The division also expects sales impetus from the face-lifted Mercedes-Benz
trucks Atego and Axor, which can be ordered as of the IAA Commercial
Vehicles Show with deliveries starting towards the end of this year.
The Detroit Diesel engines supplied in the United States from the new
generation of heavy-duty engines with BLUETEC technology and complying
with EPA10 emission regulations will lead to increasing demand for
Freightliner trucks. Customer demand should also be stimulated by the new
Fuso heavy-duty truck with BLUETEC engines from the new Daimler Trucks
heavy-duty engine generation and by the new medium-duty Fuso Fighter.
Against the backdrop of rising demand and the market recovery in the vans
business, Mercedes-Benz Vans anticipates a significant increase in unit
sales compared to 2009.
Daimler Buses anticipates growth in unit sales for 2010, primarily due to
the development of chassis sales in Latin American markets. In Western
Europe, however, unit sales will remain below the prior-year level for market
reasons.
Daimler Financial Services anticipates a reduction in worldwide credit-risk
costs and further efficiency improvements in full-year 2010. Adjusted for
exchange-rate effects, contract volume is expected to develop along a stable
path in the second half of this year.
As a result of the upturn in demand, the Daimler Group expects the size of
its worldwide workforce to remain constant or to increase slightly
compared to the end of 2009.