Daimler AG

2024 delivered strong cash + capital returns despite tougher market (esp. China) - Revenue/profitability pressured by macro challenges and China weakness (2H 2024), but Mercedes generated €9.2bn free cash flow (FCF). - Shareholder returns: ~€10bn via dividend + share buybacks; net industrial liquidity ~€35bn (balance sheet strength). - Group results: Group EBIT €13.6bn, net income €10.4bn, EPS ~€10 (supported by share buyback accretion).

Car business: EBIT/cash impacted by mix/volume + China-related support, but industrial performance improving - Cars EBIT €8.7bn; Q4 margin 8.1% (full-year ahead of prior guidance of 6–7%). - Key headwinds in the bridge: lower volume/mix, negative net pricing, life-cycle measures headwinds, lower used car contribution vs. 2023, plus residual value adjustments late in year. - Positives: underlying improvement from manufacturing, material cost efficiencies, raw material tailwinds; working capital managed well (inventory down helped cash). - Notable adjustments: ACC-related €350m adjustment and other valuation/impairment items; no repeat of prior-year positives.

Forecast for 2025 (Cars + Group): margins down but guidance remains disciplined - Cars: sales slightly below 2024 (China competitive environment remains tough; Europe stable; US demand solid but potentially slightly lower volume). - Return on sales adjusted guidance for Cars: 6%–8% (down from 8.1% in 2024), driven mainly by: - lower BBAC contribution expected, - FX headwinds to mitigate, - CO2 cost impact in Europe described as a major swing factor (“turns out to be a low three-digit number” for 2025). - Q1 2025: cars volume around Q1 2024 level, and margin within 6%–8% corridor. - Cash conversion: cars cash conversion guided ~0.9x to 1.2x.