Outlook

The statements made in the Outlook chapter are based on the operational planning of Daimler AG as approved by the Board of Management and the Supervisory Board in December 2018. That planning is based on the premises we set regarding the economic situation and the development of automotive markets. It involves assessments made by Daimler, which are based on analyses by various renowned economic research institutes, international organizations and industry associations, as well as on the internal market analyses of our sales companies. The prospects for our future business development as presented here reflect the targets of our divisions as well as the opportunities and risks presented by the anticipated market conditions and the competitive situation during the planning period. Against this backdrop, we adjust our expectations for business development to reflect updated forecasts for the development of the various automotive markets. The statements made below are based on the facts known to us at the beginning of 2019.

For forecasting the profitability of our divisions, as of Annual Report 2018, we have changed over to using return on sales instead of EBIT for the automotive divisions and return on equity for Daimler Financial Services. This creates a link between our expectations for the current financial year and our strategic targets. Divisional return on sales and return on equity will be forecast with the use of bandwidths. Furthermore, we have adjusted the sensitivities for forecasting the unit sales and revenue of the divisions and the Group, and for forecasting Group EBIT.

Our assessments for the year 2019 are based on the assumption of generally stable economic conditions and the expectation that the upward development of the global economy will continue. We also assume that worldwide demand for motor vehicles will be roughly of the magnitude of the previous year. The development we have outlined is subject to various opportunities and risks, which are explained in detail in the Risk and Opportunity Report.

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World economy
Overall assessment of risks and opportunities