Daimler AG - ADR - Unsponsored

2024 performance: strong cash generation despite tougher markets - CEO highlighted €9.2bn free cash flow in 2024 (solid even with macro pressure and China weakness in 2H 2024 affecting revenues/profitability). - Shareholder returns ~€10bn via dividend + share buybacks, while still maintaining strong net industrial liquidity ~€35bn. - Group profitability: Group EBIT €13.6bn; net income €10.4bn; EPS €10 (supported by share buyback accretion).

Profit bridge & operational levers: costs and industrial improvements offset volume/FX - CFO explained car EBIT of €8.7bn and how it was affected by: - Negative volume structure & net pricing, lower used-car business vs 2023, and residual value adjustments (tail end of adjustments). - FX headwind (notably Turkish lira). - Offsetting positives: ~€1bn improvement from industrial performance (manufacturing + material cost efficiencies + raw material tailwinds) and R&D/engineering efficiency. - Cash translation: inventory and working capital management helped; cash conversion supported by non-cash items and timing effects (CFO emphasized disciplined working capital management).

Divisional highlights (what’s working vs what’s changing) - Cars: Competitive pressure particularly from China; nevertheless ASP up ~40% vs 2019; workforce reduction ~11% (~15,000 people) since 2019; fixed cost down ~19% vs 2019 (net of inflation). - Vans: Another “banner year” with very strong EBIT and cash flow; return on sales 14.6%; pricing/mix discipline and portfolio strength (e.g., V-Class) offset volumes. - Mobility (financial services): New business margin “looking healthy,” but 2024 EBIT impacted by interest-rate effects, fleet resilience offsets, and cost of credit risk deterioration (esp. H1, US). Also noted investment into charging solutions (charging network becoming real).