Daimler Truck: Full Power to the Stock Exchange

With the official listing on the Frankfurt Stock Exchange, Daimler Truck sees the probably most important milestone in the company's history achieved. Henceforth, capital investors have the opportunity to directly invest in the stock of the commercial vehicle manufacturer. Daimler Truck considers itself well positioned for the new era of independence. In preparation for the stock exchange listing, the company has detailed its financial ambitions to increase performance and profitability of the segments, the company announced.

Daimler Truck consistently and continuously focuses on improving profitability to lead the industry towards CO2-neutral transport. Due to proven cash generation and a strong balance sheet, Daimler Truck has received solid investment grade credit ratings. Daimler Truck expects that its stock will be included in the expanded 40-member DAX stock index of the Frankfurt Stock Exchange's regulated market at the next possible date – likely in the first quarter of 2022.

“Today is a historic day for Daimler Truck: For 125 years, our truck and bus business was part of the Daimler Group – now we will be an independent, publicly listed company. Making this possible organizationally was a Herculean task," said Martin Daum, Chairman of the Board of Management of Daimler Truck Holding AG in the trading hall in Frankfurt.

In this respect, today is a finish line that we have worked intensely towards. However, December 10, 2021, is actually the opposite, a starting line, Daum continued. We are looking forward to utilizing the opportunities as an independent company with a global team and hope for even greater entrepreneurial success in the future. "Everyone should benefit from this – our workforce, our customers, and naturally, our shareholders," Daum added.

New era also for the former Daimler parent

Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, said: “With today's day, a new era begins for us. We are fully focused on building the most desirable cars in the world and taking the lead in electromobility and vehicle software. At the same time, with the listing of Daimler Truck, one success story becomes two. The historic realignment into two “pure-play” companies aims to unlock the full potential of both companies and create significant value for all parties involved. We wish Daimler Truck a successful future and look forward with confidence to the beginning of a new era."

Jochen Goetz, Chief Financial Officer of Daimler Truck Holding AG, said: "Daimler Truck is also in a very good starting position financially for our entrepreneurial independence. Our balance sheet is rock-solid, and we have already proven in the past how reliably we can generate an attractive cash flow. We are now going with full energy to fully exploit our earning potential and focusedly advance the transformation to emission-free transport. We particularly want to thereby sustainably create value for our investors."

For 125 years

The founders of Daimler Truck launched the modern transport industry with their trucks and buses over 125 years ago. Today, the company is one of the largest commercial vehicle manufacturers with global reach, with over 40 production sites worldwide and more than 100,000 employees. Daimler Truck combines seven brands under its umbrella:

• BharatBenz,
• Freightliner,
• FUSO,
• Mercedes-Benz,
• Setra,
• Thomas Built Buses and
• Western Star.

According to its own statements, Daimler Truck aims for a double-digit return on sales in the industrial business by 2025, assuming strong market conditions. The business activities of Daimler Truck are divided into five reporting segments, for which the company has formulated specific return targets under strong market conditions.

Thus, Daimler Truck aims for strong market conditions

• for the Trucks North America (TN) segment: 12%,
• for the Mercedes-Benz (MB) segment: 10%,
• for the Trucks Asia (TA) segment: 9% and
• for the Daimler Buses (DB) segment: 7.5% adjusted return on sales.

With Daimler Truck's new Financial Services business as the fifth segment, the company aims for an adjusted return on equity of 14%.