Transport is the backbone of our economy and society, with road transport being the primary choice for long-haul and last-mile distribution. It is a growing industry with significant entry barriers, in which Daimler Truck is a dominant player with a strong global presence. We work for all who keep the world moving, selling over half a million vehicles annually through our segments: Mercedes-Benz, Trucks North America, Trucks Asia and Daimler Buses. Our portfolio features the industry-leading brands Freightliner, Thomas Built Buses, Western Star, Mercedes-Benz, FUSO, BharatBenz, RIZON, and Setra. In addition, we offer tailored financial solutions for our customers through our Financial Services segment.

The transport sector is in the midst of a fundamental transformation as the world economy shifts away from fossil fuels. While the path to decarbonization requires a transition with diesel we are convinced of two things: First, all trucks and buses will be zero-emission vehicles in the long-term. Second, a combination of battery-electric and hydrogen-based drive technologies will be needed to ensure the future of transportation and provide optimal customer solutions. We therefore pursue a dual track strategy and we leverage our global scale and engage in strategic partnerships to optimize the required investments. This enables us to continuously adjust to different transformation speeds and scenarios.

Through 2025, we are enhancing resilience and establishing a solid financial foundation by implementing self-help measures. We are boosting recurring service revenues and maintaining a laser focus on reducing fixed costs. We are on course to achieve our 2025 ambition of an adjusted return on sales of the industrial business in excess of 10% in a favorable market environment.

With this robust foundation in place, the emphasis will shift towards capitalizing on new growth opportunities through 2030. This involves expanding into growing markets, leveraging our scale with global platforms for both ICE and ZEV, and the successful launch of our autonomous product. Daimler Truck aims for a substantial group revenue increase of 40-60% between 2025 and 2030 and an adjusted return on sales of the industrial business surpassing 12%. This journey is supported by our ESG framework, an active portfolio management directing our investment to the highest return on capital opportunities and an increased focus on the heavy-duty segment to boost profitability.

Our Capital Allocation Framework is designed to let Daimler Truck shareholders participate in the success and transformation of the business. We are a highly cash generative business and our target is to deliver a steady stream of income to our shareholders despite the cyclicality of our industry. Our dividend payout ratio of 40-60%, underlines that by supporting a strong dividend level even in tough market conditions. In addition, our first share buyback program with a volume of up to 2 billion € over a duration of up to 2 years is currently in progress.

In short, Daimler Truck is transforming for sustainable growth and tangible shareholder value.
For all who keep the world moving!

PS: Our Investor Relations team is happy to assist you if you need further information.