Risk and Opportunity Report.

The Daimler Group’s divisions are exposed to a large number of risks which are inextricably linked with our entrepreneurial activities. A risk is understood as the danger that events or actions by the Group or one of its divisions prevent the Group from achieving its targets. It is also important for the Daimler Group to identify possible opportunities so that they can be utilized in the context of entrepreneurial activity, thus securing and enhancing the Daimler Group’s competitiveness. An opportunity is understood as the possibility to meet or surpass the planned targets as a result of events, developments or actions.

The divisions have direct responsibility for recognizing and managing entrepreneurial risks and opportunities at an early stage. As part of the strategy process, risks related to the planned long-term development and opportunities for further profitable growth are identified and integrated into the decision process. In order to identify risks and opportunities at an early stage and to assess and deal with them consistently, effective management and control systems are applied, which are integrated into a risk management system and an opportunity management system. Opportunities and risks are not offset. The two systems are described below.