Strategy and targets of Mercedes-Benz Cars Sales and Marketing

Dr. Joachim Schmidt, September 29, 2010 UBS Paris Auto Show Investor Conference

1. Our current performance 2. Our targets 3. Strategy of MBC Sales and Marketing

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 2

Mercedes Benz Cars: Continued strong improvement of EBIT over the last quarters
EBIT in millions of , return on sales in %
9,8% 7,0% 5,3% 3,5% 608 355 -340 (3,2%) Q2 Q3 Q4 Q1 Q2 806 1.376

2009

2010

Strong increase driven by higher sales volume in all regions and especially in China More favorable product mix and better pricing Positive exchange rate development and efficiency enhancements
UBS Paris Auto Show Investor Conference September 29, 2010 Slide 3

Mercedes-Benz Passenger Cars with strong growth rates in retail sales in 2010
2009 2010
+24% +13% +12% +15% +18% +13% +17% +22% 632.700

+16%
735.400

109.900 98.500 72.100

113.300 97.700 83.500 81.000 66.200

101.400 100.100 93.100 86.300 80.700

67.00063.300 53.900

JAN

FEB

MAR

APR

MAY
September 29, 2010

JUN

JUL

AUG

JAN-AUG
Slide 4

UBS Paris Auto Show Investor Conference

Mercedes-Benz Passenger Cars with strong sales momentum in 2010 - Retail YTD August 2010 Canada +16% Russia +60% Western Europe +1%

Japan +12%

USA +18%

India +81% China +132%

Rep. Korea (South) +138%

Brasil +45% Rep. South Africa +16% Australia/Pacific +26%

Slide 5

UBS Paris Auto Show Investor Conference

September 29, 2010

Strong growth across modell ranges and excellent modell mix - Retail YTD August 2010 -

E-Klasse

E-Class sedan
136.000 (+52%)

E-Class Coupe
32.700 (+98%)

S-Class sedan
41.000 (+32%)

C-Class sedan
161.300 (+9%)
UBS Paris Auto Show Investor Conference

GLK
45.900 (+15%)
September 29, 2010

GL-Class
17.600 (+24%)
Slide 6

1. Our current performance 2. Our targets 3. Strategy of MBC Sales and Marketing

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 7

Our ambition at Mercedes-Benz Cars: The most successful car manufacturer in the premium and luxury segment
Mercedes-Benz Passenger Cars* vehicle sales [million units]
CAGR 6.9% 1.5

1.0

2009
* excludes smart
UBS Paris Auto Show Investor Conference

2015

September 29, 2010

Slide 8

1. Our performance 2. Our targets 3. Strategy of MBC Sales and Marketing

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 9

Mercedes-Benz Cars Strategy

The most successful car company in the premium and luxury market
Our strategic pillars Current topics

Superior Products & Customer Experience

Profitable Growth

Constantly leading & profitable large cars New attractive compact cars (MB/smart) Delightful customer care Brand positioning and claim Green technology leadership Global footprint Cooperations Powerful sales & service organization Excellence
Slide 10

Leading Brands Innovation & Technology Leadership Global Presence & Network Operational Excellence High Performing, Inspired People

10% RoS
constantly

UBS Paris Auto Show Investor Conference

September 29, 2010

Mercedes-Benz Cars Sales and Marketing Strategy

Vertrieb Sales and und Marketing Marketing MBC MBC Product Price Place Promotion People Processes 1 Authentische Perfectly positioned Marken brand and effective marketing X products 2 Fascinating Effektive Marktdurchdringung X Bedingungslose customer Kundenorientierung care X Delightful Retail network ready Retailnetz for the future X Zukunftsfhiges 6 Efficient, Effiziente, integrated integrierte processes Prozesse and systems X 7 Motivated, Motivierte, qualified qualifizierte Mitarbeiter X employees X Effective market penetration

Profitable growth
UBS Paris Auto Show Investor Conference

Inspired customers: CSI No. 1

September 29, 2010 Slide 11

1. Brand aspiration

The new brand aspiration of Mercedes-Benz: Our brand star

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 12

1. Brand aspiration

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 13

1. Brand aspiration

Cross Functional Brand Team: Responsible for the roll-out of the brand positioning across all functions
Cross Functional Brand Team
R&D Sales & Marketing WP9 WP8 WP1 WP2 Aftersales

Functional strategies have been developed per brand experience Operational targets & measures have been defined
Direct implications for products services etc. Image study controls efficiency of measures for respective targets (brand monitor, market research)

WP7

WP3

WP6 WP5 Production Controlling, IT, HR

WP4 Purchasing

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 14

1. Brand aspiration

International Brand Campaign: Print, TV, online and media communications

TVC Print Online PR

www.the-best-or-nothing.com

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 15

2. Effective Marketing

Comprehensive communication activities in 2010 support the three brand values

Perfection
Driver Assistance Systems Campaign

Fascination
CLS Campaign

Responsibility
BlueEFFICIENCY Campaign

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 16

2. Effective Marketing Customers can experience the fascination of the Mercedes-Benz brand on their iPad

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September 29, 2010

Slide 17

3. Product portfolio

Examples of fascinating new product highlights

CLS

Shooting Brake

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September 29, 2010

Slide 18

3. Product portfolio

Ambitious CO2 targets for Mercedes-Benz Cars

CO2 fleet average Mercedes-Benz Cars [in gramms/km]

183

178

173 160 <140 95g (4.0 l/ 100km)

2006

2007

2008

2009

MBC target 2012

EU target 2020

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 19

3. Product portfolio

Mercedes-Benz Cars aims at leading position with green technologies

Roadmap for sustainable mobility: Optimization of combustion engines
C 220 CDI

Further efficiency gains through hybridization

S 500 Plug-in Hybrid

Locally emission-free electric engines

smart electric drive, E-Cell, F-Cell

117 74
grams CO2/km
UBS Paris Auto Show Investor Conference September 29, 2010

grams CO2/km

grams CO2/km
Slide 20

3. Product portfolio

Highlights Paris Auto Show: New concepts for emission free urban mobility

SLS AMG E-CELL

A-Class E-CELL

smart escooter
UBS Paris Auto Show Investor Conference September 29, 2010

S250 CDI
Slide 21

4. Effective processes

New Sales Organization More Customer, less bureaucracy

More customer focused organization in Headquarters and MPC Stronger focus on integrated downstream products Increase Effectiveness Increase Efficiency

New Leadership Modell

UBS Paris Auto Show Investor Conference September 29, 2010 Slide 22

5. Successful dealer network

Mercedes-Benz The Best Premium Franchise

Attractive brand and products Gain and keep best automotive partners

Sales New

Sales Used

Service and Parts

Financial Services

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 23

6. Satisfied customers

Mercedes-Benz with strong improvements in customer satisfaction in most markets

Customer Satisfaction Ranks in the Premium Segment1
Sales 2005 2009 51 52 52 61 41 32 51 21 32
1)Source:

Further awards for customer satisfaction

J.D. Power 2010 Initial Quality Study J.D. Power VOSSSM Germany No.1 Premium Brand in Service Satisfaction J.D. Power CSI France No.1 Premium Brand Grand Prix des Marques Automobiles 2010 No.1 in Sales and After Sales Service ADAC and auto motor sport No. 1 in workshop tests with best reults overall in both tests

Service 2005 2009/10 Germany UK France Italy2) Spain2) Switzerland2) The Netherlands2) South Africa2) USA 3 1 6 3 3 1 4 3 2 3 4 3 3 3 4 2 7 6

NCBS, JDP SSI/CSI, CBS 2) Results 2006 2008

UBS Paris Auto Show Investor Conference September 29, 2010 Slide 24

Our ambition at Mercedes-Benz Cars: The most successful car manufacturer in the premium and luxury segment
Mercedes-Benz Passenger Cars* vehicle sales [million units]
CAGR 6.9% 1.5

1.0

2009
* excludes smart
UBS Paris Auto Show Investor Conference

2015

September 29, 2010

Slide 25

For the full year 2010 we expect Mercedes-Benz Cars EBIT of about 4 billion Euros
[EUR billion]
4

1.4

0.8

Q1

Q2

H2

FY 2010

UBS Paris Auto Show Investor Conference

September 29, 2010

Slide 26