Daimler preliminary results for the financial year 2020 significantly above guidance and market expectations

STUTTGART, Germany, Jan. 28, 2021 /PRNewswire/ -- Daimler completed the financial year of 2020 in a challenging environment with a very strong fourth quarter, in particular with regard to Industrial Free Cash Flow. All divisions contributed to this success. Mercedes-Benz Cars and Vans exceeded key financial metrics of the financial year 2019.

Industrial Free Cash Flow, Daimler Group EBIT, Mercedes-Benz Cars & Vans Return on Sales adjusted and Daimler Mobility Return on Equity adjusted are all significantly above Daimler's guidance or significantly above market expectations for the financial year 2020.

The Industrial Free Cash Flow in the fourth quarter reflects the continued extensive cost and cash preservation measures and strong operative performances across all divisions leading to favorable cash-conversion ratios.

"Our strategic initiatives and our intense operational efforts are combining to deliver a significant improvement in financial performance across the company. We have continued to keep a tight grip on cost and cash while on the commercial side we have seen strong demand for our products across all major markets and divisions. At Mercedes-Benz Cars & Vans, we were able to combine a rapid acceleration in xEV sales with a strong financial result in Q4. At Daimler Trucks, the recovery of the US-market has accelerated and we are beginning to see a positive impact from new efficiency measures in our European operations. We intend to continue to make further progress on cost-efficiencies in 2021 and will accelerate the implementation of our strategic initiatives," stated Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

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

• Industrial Free Cash Flow: € 8,259 million (consensus: € 5,296 million);
  Industrial Free Cash Flow adjusted: € 9,155 million (consensus: n/a)
• Net Industrial Liquidity: € 17.9 billion (end of Q3 2020: € 13.1 billion)
• Daimler Group EBIT: € 6,603 million (consensus: € 5,245 million);
  EBIT adjusted: € 8,641 million (consensus: € 7,120 million)
• Mercedes-Benz Cars & Vans EBIT: € 5,172 million (consensus: € 3,850 million);
  EBIT adjusted: € 6,802 million (consensus: € 5,390 million);
  Return on Sales (RoS) adjusted: 6.9% (consensus: 5.5%)
• Daimler Trucks & Buses EBIT: € 525 million (consensus: € 556 million);
  adjusted EBIT: € 678 million (consensus: € 689 million);
  Return on Sales (RoS) adjusted: 2.0% (consensus: 2.0%)
• Daimler Mobility EBIT: € 1,436 million (consensus: € 1,318 million);
  adjusted EBIT: € 1,595 million (consensus: € 1,449 million);
  Return on Equity (RoE) adjusted: 10.9% (consensus: n/a)

The preliminary results include the following adjustments affecting Daimler Group EBIT and Industrial Free Cash Flow:

• Legal proceedings
  affecting EBIT: € 164 million
  affecting Industrial Free Cash Flow: € 595 million
• Restructuring
  affecting EBIT: € 1,874 million
  affecting Industrial Free Cash Flow: € 301 million

Given the development of successful cost discipline continued in the fourth quarter and expected good underlying demand, Daimler also anticipates a positive business development in 2021. The current semiconductor shortages and COVID-19 disruptions will probably impact the first quarter 2021. Please note these statements are made under the assumption of no further COVID-19 lockdowns.

Daimler AG will publish further key figures of the financial year 2020 and the fourth quarter 2020 on February 18, 2021. Daimler will provide guidance for the financial year 2021 together with the full year results.

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 luxury automotive brand (source: Interbrand study, 20 Oct. 2020), 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.

SOURCE Daimler North America - Corporate Communications

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