Slide 1: 2004 Results Annual Press Conference
DAIMLERCHRYSLER DAIMLERCHRYSLER 2004 RESULTS ANNUAL PRESS CONFERENCE Jurgen E. Schrempp Chairman of the Board of Management Stuttgart February 10, 2005
Slide 2: Significant Improvement in Operating Profit
DaimlerChrysler Group DAIMLERCHRYSLER SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT 2003 2004 Revenues € 136.4 bn || € 142.1 bn Operating Profit € 57bn |}€ 5.8bn Operating Profit adjusted” € 5.4bn Net income 0.4 bn Equity ratio industrial business 26.1% Net Liquidity industrial business 1.8 bn Dividen
Slide 3: Chrysler Group and CVD More Than Compensate Decline at Mercedes Car Group
DaimlerChrysler Group DAIMLERCHRYSLER CHRYSLER GROUP AND CVD MORE THAN COMPENSATE DECLINE AT MERCEDES CAR GROUP Operating Profit in billions of € ct Simact impactTo 2003 © 2004 2003 ©2004 2003-2004 | i 2004 “ES 2004 : 41) Ewoluding Chrysler Group restructuring costs and gain of sale MTU Aero Engines
Slide 4: Mercedes Car Group
| DAIMLERCHRYSLER S Mercedes-Benz No.1 luxury and premium cars worldwide MERCEDES CAR GROUP ah MAY B AGE No. 2 super luxury USA No. 4 micro cars WEU
Slide 5: Decrease in Operating Profit Primarily Due to Currency Effects and Quality Offensive
Mercedes Car Group DAIMLERCHRYSLER DECREASE IN OPERATING PROFIT PRIMARILY DUE TO CURRENCY EFFECTS AND QUALITY OFFENSIVE = Model changeover = Quality offensive 1,217 mmm 1227 51.4 mm 49.6 31 « Strong Euro = smart 2003 2004 2003 2004 2003 2004
Slide 6: Program for Strengthening of Profitability
Mercedes Car Group | DAIMLERCHRYSLER PROGRAM FOR STRENGTHENING OF PROFITABILITY = Implement = Comprehensive = Strengthen innovation comprehensive quality offensive leadership with S- transformation and Mercedes-Benz Class successor pamizauon Progtann = Launch of M-Class successor = Develop sustainab
Slide 7: Transformation and Optimization Program Across Entire Value Chain
Mercedes Car Group - Efficiency | DAIMLERCHRYSLER TRANSFORMATION AND OPTIMIZATION PROGRAM ACROSS ENTIRE VALUE CHAIN oe hae ji ine =A ketinal = a) ay Rel ireing J7Production” ae Funding Requirements Focus on: = Efficiency Complexity Manufacturing Cost / Labour Cost reduction Flexibility Profitability
Slide 8: Quality Offensive to Reach Best in Class Quality
Mercedes Car Group - Quality | DAIMLERCHRYSLER QUALITY OFFENSIVE TO REACH BEST IN CLASS QUALITY MID-TERM = Reduce complexity = Improve i ial quality = Conduct preventive = Increase maturity = Milestones achieved product measures m Increase use of a Failure rate reduction ™ Ensure top service digital
Slide 9: Develop Sustainable Business Model for smart
Mercedes Car Group - Efficiency DAIMLERCHRYSLER DEVELOP SUSTAINABLE BUSINESS MODEL FOR SMART © Sales performance © Improve sales performance (Network density, market (e.g. shop in shop, market entry USA under and sales initiative) evaluation) © Cost structure © Product and market strategy © Producti
Slide 10: New Products in 2004
Mercedes Car Group - Profitable Growth | DAIMLERCHRYSLER NEW PRODUCTS IN 2004 @c.is defining new segment of © SLK wins 32 out of 33 4-door coupe international awards © Overwhelming market e Undisputed market leader in acceptance its segment
Slide 11: New Products in 2004
Mercedes Car Group - Profitable Growth DAIMLERCHRYSLER NEW PRODUCTS IN 2004 © A-Class market introduction in © Over 50,000 units of new A-Class September 2004 great success delivered in 2004
Slide 12: New M-Class
Slide 13: New M- and R-Class: Major Steps in Volume Expansion
Mercedes Car Group - Profitable Growth DAIMLERCHRYSLER NEW M- AND R- CLASS: MAJOR STEPS IN VOLUME EXPANSION OF M-CLASS FAMILY Future M-Class New G-Class family New M-Class oes
Slide 14: Sports Tourer: Mercedes-Benz Again Defining New Segment
Mercedes Car Group - Profitable Growth | DAIMLERCHRYSLER SPORTS TOURER: MERCEDES-BENZ AGAIN DEFINING NEW SEGMENT IN PREMIUM MARKET New concept combining the best of three worlds Off road| On road Space: B-Class Market introduction 7
Slide 15: S-Class Again Defining the Standard
Mercedes Car Group - Profitable Growth | DAIMLERCHRYSLER S-CLASS AGAIN DEFINING THE STANDARD Passive oO \ Man Machine Safety \ . Interface Driving Dynamics 7) A 4 ‘ wee F 4s “
Slide 16: Product Offensive Mercedes Car Group
Mercedes Car Group - Profitable Growth DAIMLERCHRYSLER PRODUCT OFFENSIVE MERCEDES CAR GROUP 2007 = C-Class = smart fortwo
Slide 17: Chrysler Group
DAIMLERCHRYSLER CHRYSLER GROUP CHRYSLER DODGE Jeep en ee rene) No.1 luxury full size cars USA a
Slide 18: Turnaround Despite Difficult Market Conditions
Chrysler Group DAIMLERCHRYSLER TURNAROUND DESPITE DIFFICULT MARKET CONDITIONS = New products = Improved efficiency = Improved quality 2,780 2,638 493 == 49.5 2003 2004 2003 2004 2003 2004 4) Comesponds to Chiyeter shipments 2) Including restructuring charges of EUR 05 bn in 2008
Slide 19: Product Offensive 2004 Successfully Launched
Chrysler Group DAIMLERCHRYSLER PRODUCT OFFENSIVE 2004 SUCCESSFULLY LAUNCHED Dodge Ram SRT-10 Chrysler 300 Chrysler Crossfire Roadster PT Cruiser Convertible i i i 1 ae i 1 i i 1 1 i 1 i ' i I 1 i i Jeep Wrangler XL Jeep Grand Cherokee i 1 1 I 1 1 i i i
Slide 20: Positive Net Pricing and Increase in Market Share
Chrysler Group | DAIMLERCHRYSLER IN 2004, CHRYSLER ACHIEVED BOTH POSITIVE NET PRICING AND AN INCREASE IN MARKET SHARE ae =| em Retail Market Share
Slide 21: North American Car of the Year Awards
MLERCHRYSLER YSIE IRYSLE! North American “Car of the Year” Car of the Year # 1“ FOCUS Magazine “Car of the Year" Fr “Car of the Year” We 19 Best care” ' est Car “Car of the Year 2008 RowaTRaeL ca CAREDRDS Car oF he “40 Hippest “Most Significant "Car of the Year" @ vehicles for 2005" WF Vehicle of th
Slide 22: Other New Introductions Also Highly Awarded
Chrysler Group DAIMLERCHRYSLER OTHER NEW INTRODUCTIONS ALSO HIGHLY AWARDED Jeep Minivans Grand Cherokee _ with Stow‘N Go “Best of what's new” Seranes “Crossover/Wagon - most versatile” Rowwarevet ruck of the vei “Truck of the year” “<Sportiiiciccom “10 Best Cars” CAREDRINER Dodge Magnum Dodge Ram SR
Slide 23: Continued Efficiency and Quality Improvement for Further Growth
Chrysler Group | DAIMLERCHRYSLER CONTINUED EFFICIENCY AND QUALITY IMPROVEMENT FOR FURTHER GROWTH = Continued strive for = Target benchmark = Continued product cost benchmark quality offensive (Aen ) Poe auality = International oProductivity is Fs strategy, e.g. = co Initial quality = oMaterial cost
Slide 24: Efficiency Improvements Since 2000
Chrysler Group - Efficiency | DAIMLERCHRYSLER IMPROVEMENTS SINCE 2000 (2000 - 2004 fest) (2000 - 2004) Harbour Report: Best Net Savings: -20% Industry Improvement in Gross Savings: -26% 2002, 2003 (2000 - 2004) (2000 - 2004) 2000: 19.2 bn US$ Decrease by 13 bn US$ 2004: 11.1 bn US$
Slide 25: Quality: Improvements in Cost and Perception
Chrysler Group - Quality | DAIMLERCHRYSLER QUALITY: IMPROVEMENTS IN COST AND PERCEPTION (6 per unit sold) = JD Power IQS: 36% (1998-2004) A = JD Power APEAL: 2 Category Winners in 2004 JD Power CSI: = 36% of CG products on Consumer 2000 MY 2004 MY Reports “Recommended List” Warranty expense per unit
Slide 26: Improved Appearance at Point of Sale
Chrysler Group - Efficiency | DAIMLERCHRYSLER IMPROVED APPEARANCE AT POINT OF SALE Improve franchise attractiveness a Increase sales
Slide 27: "LX" Family Concept
Chrysler Group - Profitable Growth DAIMLERCHRYSLER “LX” FAMILY CONCEPT Charger " Dodge Derivatives CHRYSLER Chrysler 300 /“LX” Base Platform
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Slide 29: Chrysler Group with Youngest Portfolio
Chrysler Group - Profitable Growth | DAIMLERCHRYSLER CHRYSLER GROUP WITH YOUNGEST PORTFOLIO In years American Industry GuRsence HRYSLER Average Average Sales Weighted Showroom (contr croup Ertmabn)
Slide 30: Product Offensive Chrysler Group to Be Continued
Chrysler Group - Profitable Growth DAIMLERCHRYSLER PRODUCT OFFENSIVE CHRYSLER GROUP TO BE CONTINUED 2007 2006 = Chrysler models 2005 = Chrysler models u Jeep model = Jeep Commander m= Jeep models mcedgemedel = Dodge Charger = Dodge models m= Dodge Viper Coupe m= Dodge RAM Mega Cab = SRT8-models =
Slide 31: Commercial Vehicles Division
| DAIMLERCHRYSLER COMMERCIAL VEHICLES DIVISION FREIGHTLINER) @ error plese. we ® FUSO Mercedes-Benz Trucks MFTBC Europe, LA (FUSO) e ® Mercedes Benz ® Mercedes-Benz ono DC Buses MB Vans & Coaches ry
Slide 32: Continued Strong Increase in Operating Profit
Commercial Vehicles Division DAIMLERCHRYSLER CONTINUED STRONG INCREASE IN OPERATING PROFIT DESPITE DIFFICULT SITUATION AT MFTBC (FUSO) = Sales record = Efficiency 712 y 348 501 oo 268 : programs = New ; products = Economies of scale 2003 2004 2003 2004 2003 2004 *) Change of consolidation basis of M
Slide 33: Products Highly Awarded
Commercial Vehicles Division | DAIMLERCHRYSLER PRODUCTS HIGHLY AWARDED Van of the Year 2005. Der Actros. Der Vito.
Slide 34: New Products in 2004
Commercial Vehicles Division | DAIMLERCHRYSLER NEW PRODUCTS IN 2004 Atego new TBB School Canter TD bus C2 (NAFTA) Comfort Class
Slide 35: Measures to Secure Sustainable Profitability
Commercial Vehicles Division | DAIMLERCHRYSLER MEASURES TO SECURE SUSTAINABLE PROFITABILITY = Ongoing efficiency = Significant = Continued product programs in every improvements offensive Business Unit realized with new ois . Further strengthen = Scale effects P leading position in through new = Con
Slide 36: Turning Scale into Profit: Leverage European Product Concepts
Commercial Vehicles Division - Efficiency | DAIMLERCHRYSLER TURNING SCALE INTO PROFIT: LEVERAGE EUROPEAN PRODUCT CONCEPTS EUROPE LATIN AMERICA
Slide 37: Quality as Key Lever for Operational Excellence
Commercial Vehicles Division - Quality DAIMLERCHRYSLER QUALITY AS KEY LEVER FOR OPERATIONAL EXCELLENCE AND SUSTAINABLE PROFITABLE GROWTH “Actros! Actos Issues / 100 vehicles after 12 months of operating © Actros Il already with same quality as Actros | at the end of life cycle © Interdisciplinary qu
Slide 38: Commercial Vehicles
Commercial Vehicles DAIMLERCHRYSLER
Slide 39: Commercial Vehicles with Ongoing Product Offensive in Next Three Years
Commercial Vehicles Division - Profitable Growth DAIMLERCHRYSLER COMMERCIAL VEHICLES WITH ONGOING PRODUCT OFFENSIVE IN NEXT THREE YEARS 2006 2007 2005 = MB Sprinter successor ™ Freightliner = MB Atego (Turkey) = MB Vito/Viano (China) Century Class = MB Axor (Brazil/Turkey) = MB Interurban Bus SET =
Slide 40: DaimlerChrysler Services
DAIMLERCHRYSLER DAIMLERCHRYSLER SERVICES Market position No. 3in automotive captive finance worldwide Regional scope Operations in 39 countries DC-sales coverage Average — penetration rate: 35% aA
Slide 41: Operating Profit at Last Year's High Level Despite Toll Collect
DaimlerChrysler Services DAIMLERCHRYSLER DESPITE TOLL COLLECT OPERATING PROFIT AT LAST YEAR’S HIGH LEVEL igh margins = Improved cost position = Improved risk management 102.4 siugact Cy nd 140 mm 13.9 as Toll Collect 2003 2004 2003 2004 2003 2004
Slide 42: Customer Focus in Core Business as Basis for Profitable Growth
DaimlerChrysler Services | DAIMLERCHRYSLER CUSTOMER FOCUS IN CORE BUSINESS AS BASIS FOR PROFITABLE GROWTH = Further focus on = Closer cooperation «Increase core business with automotive automotive brand divisions support = lmprove cost PP’ position = Product = Ensure brand Innovations support in non
Slide 43: Business Development Tailored to Specific Market Situations
DaimlerChrysler Servi BUSINESS DEVELOPMENT TAILORED TO SPECIFIC MARKET SITUATIONS Approach ise scale effects Sustain
Slide 44: Other Activities
DAIMLERCHRYSLER OTHER ACTIVITIES ro G AIRBUS Beurocopter No.1 in commercial aircraft No. 1 in civilian helicopter (neo) No. 1 in marine propulsion systems
Slide 45: Airbus in 2004 Again Ahead of Boeing
Other activities DAIMLERCHRYSLER AIRBUS IN 2004 AGAIN AHEAD OF BOEING total aircraft 600 + deliveries 500 + 400 + 300 5 200 5 ] 100 T T T T T T T 1 \ ae 1997 1998 1999 2000 2001 2002 2003 2004
Slide 46: Significant Increase of Average Number of PV Derivatives per Architecture
DaimlerChrysler - Corporate Initiatives | DAIMLERCHRYSLER SIGNIFICANT INCREASE OF AVERAGE NUMBER OF PV DERIVATES PER ARCHITECTURE 2004 2014 2004 «2014 No. of PV architectures Gg Average no. of PV derivatives , per architecture
Slide 47: Activities in China Are Progressing
DaimlerChrysler - Corporate Initiatives DAIMLERCHRYSLER ACTIVITIES IN CHINA ARE PROGRESSING
Slide 48: Comprehensive Propulsion Strategy
DaimlerChrysler - Corporate Initiatives DAIMLERCHRYSLER COMPREHENSIVE PROPULSION STRATEGY Optimization of Hybrid Vehicles Fuel Cell Combustion Technology Engines
Slide 49: Priorities for the Coming Years
DaimlerChrysler - Corporate Initiatives DAIMLERCHRYSLER PRIORITIES FOR THE COMING YEARS Operational Profitable Excellence Growth
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Link to searchable text of slide shown above Searchable text section of graphics shown above [ GRA PHIC] DAIMLERCHRYSLER 2004 RESULTS ANNUAL PRESS CONFERENCE Jürgen E. Schrempp Chairman of the Board of Management Stuttgart February 10, 2005 Dai mlerChrysler Group [LOGO] SIGNIFICANT IMPROVEMENT IN OP
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Link to searchable text of slide shown above Searchable text section of graphics shown above [ LOG O] DAIMLERCHRYSLER 2004 RESULTS ANNUAL PRESS CONFERENCE Bodo Uebber Chief Financial Officer Stuttgart February 10, 2005 Dai mlerChrysler Group KEY FINANCIAL HIGHLIGHTS IN 2004 • Earning power strengthe