Both companies are active in industries

Both companies are active in industries

Stuttgart – Daimler is planning a fundamental change in its corporate structure to realize the full potential of its businesses in the future, which will be software-driven and emission-free. The Supervisory Board and Board of Management of Daimler have decided today to create a spin-off of the Truck& bus business and to begin preparations for an independent listing of Daimler Truck on the stock exchange. It is intended that the majority share of Daimler Truck will be transferred to the current Daimler shareholders. Daimler Truck will gain full entrepreneurial freedom as a result, as well as having an independent corporate governance structure with an independent chairman of the supervisory board. In addition, the aim is that Daimler Truck will meet the criteria for inclusion in DAX. According to current plans, the transaction should be completed by the end of 2021, at which time Daimler Truck will be listed on the Frankfurt Stock Exchange for the first time. In addition, Daimler intends to rename itself Mercedes-Benz at a later date. "This is a historic moment for Daimler. The beginning for a profound transformation of the company. Mercedes-Benz Cars& Vans and Daimler Trucks& Buses operate in different industries with specific customer groups, technology paths and capital requirements. Mercedes-Benz is the most valuable luxury car brand, offering discerning customers the most desirable cars in the world. Daimler Truck provides customers with a variety of industry-leading transportation solutions and services. Both companies operate in industries that are undergoing extensive technological and structural change. They can manage this transformation much more effectively if they act as independent entities in the process – with strong net liquidity and without the constraints of a conglomerate structure," says Ola Källenius, chairman of the board of Daimler and Mercedes-Benz.

In the course of this restructuring, support from finance and mobility service companies is planned at both Mercedes-Benz and Daimler Truck. These will support sales with tailored financing, leasing, and mobility solutions, and strengthen customer satisfaction and loyalty. To achieve this, the company intends to allocate the capacities and teams of today's Daimler Mobility to both Mercedes-Benz and Daimler Truck. "We believe in financial. Operational strength of our two industrial divisions. And we are convinced that with an independent management and governance structure, both units will be able to act even faster in the future, invest more ambitiously, and drive growth and cooperations in a more targeted manner – all of which will make them significantly stronger and more competitive," Källenius adds.

Daimler Truck has its sights set on growth and new technologies

Daimler Truck intends to create value for its shareholders by implementing its strategic plans even faster, increasing its profitability, and further advancing the development of zero-emission drive technologies for trucks and buses.

"This is a landmark moment for Daimler Truck. With independence, we gain new opportunities, visibility and transparency. We will continue to grow and aim to remain a leader in alternative powertrains and automation. With our battery-electric and fuel cell-powered trucks, as well as our strong position in automated driving, we have already clearly defined what the future of our business will look like. With targeted partnerships, we will accelerate further technology development to quickly offer our customers best-in-class products," says Martin Daum, member of the Daimler Board of Management and Chairman of Daimler Truck.

"Daimler Truck is already on a solid financial footing today, our business model is robust. We will continue to work on our cash flow management and know how to deal with industry standard market cycles. We have proven this again during the strong global market downturn related to COVID-19. We have clear strategies to increase our financial performance and to implement our roadmap faster. We will leverage the clout of our strong and well-known global brands, as well as our economies of scale and technology expertise, to be the industry leader in return on investment in the future," Daum adds.

Daimler Truck is the world's largest manufacturer of trucks and buses with leading market positions in Europe, North America and Asia and has more than 35 main locations around the world. With more than 100.000 employees, Daimler Truck unites seven brands under one roof: BharatBenz, Freightliner, Fuso, Mercedes-Benz, Setra, Thomas Built Buses and Western Star. Daimler Truck delivered a total of approximately half a million trucks and buses to customers in 2019. Revenue in 2019 amounted to 40.2 billion. €4.7 billion at Daimler Trucks and. €283 million at Daimler Buses. EBIT amounted to. € at Daimler Trucks and €283 million at Daimler Buses. € at Daimler Buses.

Important step for customers, shareholders and employees

Manfred Bischoff, Chairman of the Supervisory Board of Daimler, sees the planned stock market listing as an important step in generating added value: "Mercedes-Benz and Daimler Truck are entering this transformation with enormous strength. We are convinced that they will be even stronger as independent companies and will be able to serve their respective customers even better. In view of the different return profiles and capital requirements, the advantages of a split into two independent units are obvious. We are sure that the capital markets will appreciate the opportunity to invest in more clearly focused 'pure play' companies. The final decision on a spin-off must be made at an extraordinary shareholders' meeting – to be held in the third quarter of 2021."

Michael Brecht, Chairman of Daimler's General Works Council, is also clearly in favor of the plans: "The transformation of our industry is progressing rapidly. In order for us to keep pace, we need to invest more courageously in innovations and make faster decisions. To this end, we will establish a further innovation fund with a volume of €1.5 billion for Daimler Truck in addition to the current financial planning. This will allow us to invest in new products and technologies, and we will actively contribute our ideas. This will bring additional perspectives for our locations and secure employment. In addition, company agreements such as our safeguarding of the future will continue to apply until the end of the decade. The planned independence will bring many advantages to Mercedes-Benz and Daimler Truck, and we will continue to do everything in our power to defend the interests of our colleagues. We have the unique opportunity to actively and sustainably shape the commercial vehicle locations – from production to the service business – in order to help write the next chapter of the Daimler Truck success story."

Presentation of details at extraordinary shareholders' meeting in 3. In the third quarter

It is intended that Daimler will transfer a majority stake in Daimler Truck to its shareholders as part of the planned transaction. The number of Daimler Truck shares that Daimler shareholders would then receive is based on the size of the previous shareholding. Daimler intends to maintain a minority stake in Daimler Truck. Accordingly, Daimler's representation on the Supervisory Board of Daimler Truck will also reflect the planned deconsolidation.

The decision now taken marks the beginning of a process to concretize the planned transaction. The full details of the financial. Technical implementation will therefore only be determined at a later date. This concerns, for example, the question of exactly how large a share of Daimler Truck will be traded on the stock exchange in the future, or the question of the ratio in which Daimler Truck shares should be allocated to Daimler shareholders.

All further details of the planned division of the business are to be presented to Daimler shareholders at an Extraordinary General Meeting in the third quarter of 2021. At this meeting, the obligatory approval of the shareholders for the planned project will also be obtained.

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