Record Earnings for the Fifth Consecutive Year at DaimlerChrysler Financial Services

The Financial Services division once again developed positively and further improved its market position in 2006. Financial Services significantly improved its operating profit from €1,468 million in 2005 to €1,714 million in 2006, thus achieving record earnings for the fifth consecutive year. The increase in operating profit was the result of higher new business and ongoing efficiency improvements. These factors more than offset higher expenses resulting from higher interest rates and increased cost of risk. In addition, the business development at Toll Collect also contributed to the positive earnings trend.

New business increased by 10% to €53.0 billion, while contract volume of €113.3 billion was 4% lower than in the prior year. Adjusted for exchange-rate effects, contract volume rose by 5%. At the end of 2006, Financial Services’ portfolio comprised 6.5 million leased and financed vehicles.

The Americas region (North and South America) managed a total contract volume of €80.4 billion at the end of 2006 (end of 2005: €85.9 billion). This was once again the highest volume recorded by any Financial Services region, accounting for 71% of the total portfolio. Adjusted for exchange-rate effects, the portfolio in the region expanded by 4%. The Europe, Africa & Asia/Pacific region also developed positively in 2006. Contract volume of €32.9 billion was 3% higher than the prior year’s level.

In Germany, DaimlerChrysler Bank further improved its market position: contract volume at the biggest European national company rose by 5% to €16.0 billion. DaimlerChrysler Bank welcomed its one-millionth customer in May 2006.

DaimlerChrysler Financial Services expanded its financing activities for commercial vehicles in Japan by establishing the new Fuso Financial business unit. Since September 2006, Fuso Financial is in charge of Mitsubishi Fuso’s entire dealer network in Japan.