Digital Life -Digital Transformation of a traditional Manufacturer- Harald Rudolph Munich, February 07 th, 2017

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1 Digital Life -Digital Transformation of a traditional Manufacturer- Harald Rudolph Munich, February 07 th, 2017

2 2016: Another record year and back on #1 Record unit sales with around 3 million vehicles sold (+5%) Group revenue: up by 3% to billion (2015: billion) Group EBIT adjusted for special items increased to 14.2 billion (2015: 13.8 billion) Mercedes-Benz: #1 in the Premium Segment Net profit at highest level with 8.8 billion (2015: 8.7 billion) Page 2

3 Over130 years ago we fundamentally changed mobility

4 Now is the time to transform Mobility again Connected Autonomous Shared/Services Electrified

5 Regulation drives electrification Cost Advantage E350e PHEV vs. E350d* Example China Fleet consumption [l/100 km] Tax Advantage: 25,751 6,9 l (166g/km) Bonus: 5, conventional optimization till 2020 STAGE IV post 2020 STAGE V portfolio adjustments (amongst others: xev) 5, 3 years ownership)

6 Head to head race for autonomous driving Attractive products, innovation leader, efficiency & safety Attractive, innovative new business models Safety, information and attractive new business models Lack of drivers and profitability Foto: AP Page 6

7 Successful Eco Systems own the customer interface Quick Pay Payment based on a QR- Code without cash Transfer Money transfer to other users of a We-Chat- Wallet accounts. Quelle: Unternehmen, mm-recherche Order Taxi Ordering of a Didi Chuxing, (Tencent is share holder). Movie Tickets Buying of cinema tickets, but also of tickets for cultural and sports events Lucky money Monetary gifts, especially red envelopes for chinese new year Go dutch For example splitting of a restaurant bill with friends Air tickets Ordern von Flugtickets, aber auch von Fahrkarten für den öffentlichen Nah- und Fernverkehr. Mobile top up Adminisitration of your own mobile phone account, including re-charging of pre-paid cards Utilities Payment of utility bills (electricity, gas, water) as well as fines Specials Shopping of special offers by JD.com, an e- commerce company, in which Tencent holds shares Group buy Offers for group buys in restaurants, hotels or karaoke bars

8 Connected, Autonomous, Shared/Services & Electrified drives customer focused products and services Truck mit Highway Pilot Mercedes-Benz Uptime smart ready to drop F015 Future Bus mit City Pilot E-Klasse mit Intelligent Drive B250 e EVA2 croove Future Bus Urban etruck Seite 21

9 CASE means dealing with ambiguity Ready for the market 25% 50% NAFTA Greater China WEU 15% EV Share Mercedes-Benz Cars Sales % Highest Potential EV Share Mercedes-Benz Cars

10 Modular set up of next generation drive train technologies will allow a variety of derivatives Modular Battery Concept Modular edrive Concept Entry Mid High Front Axle Rear Axle small Large + small Large Large + Large 10

11 Flexible integration of e-mobility in global production network Existing architecture orientation Existing MBC production locations MHA MRA Integration across architectures MFA Integration across regions NAFTA Europe Asia Existing regional orientation 11

12 CASE means understanding heterogenous customer requirements 12

13 Direct and indirect impact on customer perception Big Data Requirements! Direct customer perception Development Procurement Production Sales After Sales Operate / Customer Interface Indirect customer perception Prerequisites! 13

14 Digitalized Eco System

15 Digitalization along the value chain mandatory to align customer expectation and our capabilities Information on product status Changes short term Individualization Quick updates R&D Procurement Prod./Supply Chain Sales Service New Business SMART Development (Smart Product) Smart Procurement Smart Operations Smart Sales Smart Service Smart Business Digital Development New Purchasing System 360 Connectivity Mercedes me Fleetboard Moovel Digital Prototype Digital Testing Platform ARENA2036 Transform Quality Mngmnt Data- and Process-Backbone MBC MP Reporting 360 Digital Process Chain Big Smart Factory Agile Production Systems Smart Supply Chain Mercedes Online Store Mercedes City Store Daimler Commerce Platform Detroit Virtual Technician Big GSP Flashen Over The Air Car2Go MyTaxi Mercedes-Benz Rent Cross-functional initiatives - Mercedes Benz Cars - Seite 15

16 Virtual product planning Early support of production planning without real parts & products Page 16

17 Digitalization changing our culture Hackathon Stuttgart Examples: DigitalLife Day Open Space Hackathon Peninsula Page 17

18 The Mobility of the Future is Connected. Autonomous. Shared. Electric. And driven by Daimler! Page 18

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