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11. Structured FINANCE Funding strategies in emerging markets Ronny Flohr, November 2015

Contents

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DAIMLER GROUP KEY FINANCIAL FIGURES

DAIMLER MÉXICO – AN OVERVIEW

DAIMLER GROUP FUNDING PRINCIPLES

DAIMLER MÉXICO – LOCAL FUNDING

DAIMLER TREASURY ORGANIZATION

Highlights of Q3 2015

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+13%

+18%

+31%

720,000

508,400

€3.7bn

Group unit sales

Highest unit sales so far at Mercedes-Benz Cars

Increase in EBIT from ongoing business

World premiere of the new generation of the Euro VI engine OM 471 for

Mercedes-Benz heavy-duty trucks

Agreement on joint acquisition of HERE digital mapping business together

with Audi AG and BMW Group

Presentation of the new Mercedes-Benz Citaro NGT

World premieres at the IAA 2015 of S-Class Cabriolet, C-Class Coupé and smart cabrio

Daimler Group key financials

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– in billions of EUR –

Q3 2014 Q3 2015

Revenue 33.1 37.3

EBIT as reported 3.7 3.7

EBIT from ongoing business 2.8 3.7

Net profit 2.8 2.4

Earnings per share (in euros) 2.56 2.23

Free cash flow industrial business (January-September) 6.8 4.8

Dec 31, 2014 Sept 30, 2015

Equity ratio - Daimler Group 22.1% 24.1%

Gross liquidity - Daimler Group 16.3 18.4

Equity ratio - Industrial business 40.8% 44.3%

Net liquidity - Industrial business 17.0 19.5

Contents

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DAIMLER GROUP KEY FINANCIAL FIGURES

DAIMLER MÉXICO – AN OVERVIEW

DAIMLER GROUP FUNDING PRINCIPLES

DAIMLER MÉXICO – LOCAL FUNDING

DAIMLER TREASURY ORGANIZATION

Singapore

Melbourne

Pretoria

Tokyo

Sao Paulo

Montvale

Mexico City

Stuttgart Utrecht

AMERICAS in Montvale

Beijing

EMEA in Stuttgart APAC in Singapore

Regional Treasury Centers = Center of Compentence with several countries serviced

Regional Treasury Centers = Center of Compentence with one country serviced

Daimler International Finance

Chennai Bangkok

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Daimler Treasury – the global footprint 3 regional centers and 8 hubs in regulated financial markets with (production) exposure

Daimler Treasury – a process-driven organization

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Regions Europe, Americas, Asia Pacific

Financial Management of Group Companies/

Corporate Finance

Execution

of Strategies & Financial Transactions

Cash Positioning/ Management

Strategic Decision Execution & Decision

within strategic parameters

Central Location: HQ, Stuttgart

Decentral Location: Region

Local Export Credit

Corporate Finance & Asset Liability Management

Market Price Risk & Pension Management

(FX-, CO, Pension Management)

Export Credit & Trade Finance

Treasury Controlling Treasury Settlement

Contents

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DAIMLER GROUP KEY FINANCIAL FIGURES

DAIMLER MÉXICO – AN OVERVIEW

DAIMLER GROUP FUNDING PRINCIPLES

DAIMLER MÉXICO – LOCAL FUNDING

DAIMLER TREASURY ORGANIZATION

Our funding strategy is built on prudent principles

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Targeting

Financial

Independence

No dependence from single markets, instruments, banks or investors

Diversification of funding sources and instruments:

Bank Loans, Bonds, ABS, CP, Deposits

No covenants, no MAC, no asset pledges, no CSAs

Maximizing

Financial

Flexibility Early capital market funding to save credit capacity in growth regions

New markets funded via global and local banks first

Stringent Global

Funding Policy

Liquidity matched funding

Interest rate matched funding

Currency matched funding

Country matched funding

Keeping prudent amount of Cash and Committed Credit Facility

Financial flexibility is key liquidity management tool

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~ 100%

General approach:

Maturities of next 12 months

need to be covered by financial

flexibility*

* Financial flexibility

= Cash

+ Committed Credit Facilities

+ Receivables available for sale (RAFS)

The final size and structure of

the financial flexibility is decided

by ALCO and is the result of a

liquidity risk evaluation process

available

Liquidity

Maturity

Bonds

Acc. Dep.

Bank

Loans

ABS

CP Other

Liqui FS

Liqui IB

Credit

Facility

ABS

Potential

Ensures repayment of maturing debt in case of stress scenarios

Agencies see necessity to support growing FS business with sufficient liquidity

Continuity and reliability define Daimler’s bank relationships

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Deposits

Cash Management

Derivatives

Capital Market Mandates Balance Sheet Support (committed/drawn credit facilities)

Criteria for business allocation:

Execution Capabilities

Competitiveness

Service and Quality

Business allocation is tracked and reviewed on a regular basis

Contents

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DAIMLER GROUP KEY FINANCIAL FIGURES

DAIMLER MÉXICO – AN OVERVIEW

DAIMLER GROUP FUNDING PRINCIPLES

DAIMLER MÉXICO – LOCAL FUNDING

DAIMLER TREASURY ORGANIZATION

Three production facilities and a logistic center

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Saltillo Coahuila annual capacity 44,000 units

Monterrey N.L. annual capacity 9,490 units San Luis Potosí, parts distribution center

Santiago Tianguistenco, Edo de México, annual capacity 36,564 units

3. Daimler Vehículos

Comerciales México,

S. de R. L. de C.V.

7.Daimler Servicios

Corporativos,

S. de R.L. de C.V.

11. Daimler Financial

Services, S.A. de C.V.

S.O.F.O.M. E.N.R.

4. Mercedes-Benz

Mexico,

S. de R.L. de C.V.

99%

99%

99% 99% 99%

2. Mercedes-Benz

Desarrollo de Mercados,

S. de R.L. de C.V.

10. Polomex,

S.A. de C.V. 8. Daimler Manufactura,

S.A. de C.V.

26%

Debt issuer

6. DAIPRODCO

México

S. de RL de CV

99.%

1. Daimler México,

S.A. de CV

99%

99.9%

Daimler México Group – corporate structure

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5. Daimler Financial

Services México,

S. de R.L de C.V.

9. Detroit Diesel

Allison, S. de R. L.

de C.V

99%

1 Major shareholder for Daimler Group entities in Mexico.

2 Commercial Vehicles sales entity.

3 Commercial Vehicles manufacturer entity.

4 Mercedes-Benz cars sales entity.

5 Financial Services entity.

6 Dormant company.

7 Service Provider - holds the FS, MB and Daimler Mexico employees.

8 Service Provider holds the Commercial Vehicles employees.

9 Government sales and dealer’s support.

10 Joint venture with Marcopolo to assembly buses.

11 Financial Services entity (specialized in urban bus market).

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YTD Q3 2014 YTD Q3 2015

Revenue 16,390 20,235

EBIT 1,129 1,422

Net Profit 769 820

Daimler Group in Mexico Dec 31, 2014 Sept 31, 2015

Total Debt 24,295 24,594

Equity Ratio of Industrial business* 38.2% 37.9%

Gross Liquidity 2,941 2,656 *Total Assetsl/Equity (Industrial business)

Daimler México Group – key financials – in millions of MXN –

Contents

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DAIMLER GROUP KEY FINANCIAL FIGURES

DAIMLER MÉXICO – AN OVERVIEW

DAIMLER GROUP FUNDING PRINCIPLES

DAIMLER MÉXICO – LOCAL FUNDING

DAIMLER TREASURY ORGANIZATION

Daimler México – funding setup

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Targeting

Financial

Independence

Maximizing

Financial

Flexibility Early capital market funding

Global and local banks first

Stringent Global

Funding Policy

Liquidity matched funding

Interest rate matched funding

Currency matched funding

Country matched funding

Cash and Committed Credit Facility

No covenants, no MAC, no asset pledges, no CSAs

Diversification of funding sources and instruments

No dependence from single markets Loans, bonds, CP’s, IC-loans

8 core banks defined

(plus off-shore backups)

100% of core banks under

standard contract

Minimum cash targets applied

Credit facilities doubled

First frequent issuer MTN

program in sector

Closed ALM position in

each portfolio

On-shore MXN funding

Off-shore USD funding

No synthetics in own books

Funding optimization 2012 through 2015 (MXN+USD)

8,878 7,720

2,000

2017 2016

5,000

2018

2,162 6,750

2015

5,835

4,760

FY 2015

24,594

18,510

DMex Group Debt Mix

50%

26%

24%

48% 42%

10%

$14,304

DFSMex Debt Mix

40%

25%

35%

72%

7%

21%

DMex Group Maturity Profile

~45% $18,343

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MXN USD Capital Market IC (=USD) Banks

Dec 2

011

S

ep

2015

– in millions of MXN –

1,725

2012

17,888

12,941 1,823 9,166

FY 2015

14,001

2,064

2014 2013

2,050

2015

~78%

Five strategic adjustments between 2012 and 2015

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1. Alignment of maturity structure

2. Creation of sufficient credit line environment

Setup of contractual framework (8 banks @ 1 standard framework)

Unlocking of required capacities (MXN +9.0bn)

Ensuring utilization rates

3. Implementation of an effective capital market program

Increased flexibility (tripled in size, 18 instruments, three currencies, exchange control regime clause)

Early adopter of frequent issuer option (improved time-to-market)

Improved G&A procedures for legal, audit, regulation and rating

4. Optimization of funding mix

Increase utilization of bonds by MXN 3.0bn

Increase of CP‘s from MXN 1.0bn to MXN 3.0bn

5. Cash management improvements First in-house bank structure in Mexico outside the financial sector implemented

Payment automation projects initiated

Disclaimer

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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 worsening of the sovereign-debt crisis and increasing uncertainty in the euro zone;

an increase in political tension in Eastern Europe; a deterioration of our refinancing possibilities on the credit and financial markets; events of force

majeure including natural disasters, acts of terrorism, political unrest, industrial accidents and their effects on our sales, purchasing, production or

financial services activities; changes in currency exchange rates; 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 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. 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.