The Daimler Supplier Cooperation Model

Powerful cooperation Only a network of strong partners is stable and able to carry its weight. This is why reliable and long-lasting teamwork with suppliers is a tradition at Daimler. On the following pages, many of the ideas originating from our earlier cooperation models “Tandem” and “Extended Enterprise” will seem familiar to you. But even forms of cooperation continue to evolve and require innovation and new impulses to ensure outstanding performance in all areas. We would like to walk this path with you in the Daimler Supplier Network.

Everything is nothing without performance. And yet performance isn’t everything. We are convinced that a successful partnership rests on trust and open communication and can also be judged on this basis. The Daimler Supplier Network has the goal to attend to and extend such long-term partnerships. We want to take responsibility for the future together. The purposeful, efficient collaboration between automobile manufacturers and suppliers is, in our eyes, the only right way to overcome challenges and produce top performance.

Partnership thrives on common ground — and on a common vision of the future.

Basic Ideas

The Daimler Supplier Network: Common basis for a common future The Daimler Supplier Network sets the framework for successful partnerships. It creates structures that guarantee long-term, durable and efficient cooperation. This foundation enables us constantly to improve global procurement and supplier activities together with you. Performance therefore stands in the center of our network.

Daimler is committed to the guiding idea “Commitment to Excellence”, meaning top performance. Accordingly, we expect outstanding teamwork from our partners on all levels. Only passion, respect, integrity and discipline create quality and thereby a win-win situation for all of us.

We are committed to top performance. Passion Respect Integrity Discipline

These four values form the core of the daily work at Daimler. Accordingly, they are also the basis of our successful, long-term working relationship with you.

Basic ideas

Performance as indicator In the Daimler Supplier Network we commit ourselvesto top performance. The External Balanced Scorecard (EBSC) serves as a indicator through which we record your performance. The EBSC is the foundation for the four drivers of value: quality, technology, cost and supply. But what does that mean for you as supplier?

Partnership as foundation Not only tangible factors such as cost and supply set the tone of our successful cooperation. A good partnership is also based on lived values which facilitate constructive dealings with each other. These include:

Quality: You meet the agreed, preset quality goals. Technology: You contribute with creativity and dedication to the top position of all of us when it comes to technology. Cost: You follow pricing that withstands a global standard of comparison. Supply: Products and services are supplied by you quickly, reliably and on time. Quality Fairness Technology Reliability Cost Trust Supply

Fairness: A good partnership consists of an objective and equal treatment of all participants. Reliability: All partners conscientiously and consistently abide by common goals and agreements. Trust: Credibility, openness and integrity in daily communication characterize our cooperation.

Trust and responsibility are the supporting pillars.

On both sides. They carry a partnership to success.

Two Partners, One Goal

Your promise We expect our suppliers to be active, competent businesspartners who intensively concern themselves with the standards of our Daimler Supplier Network and bring them to life in daily teamwork. The prerequisite for this is that you internalize our common goals. Thus, along with the four drivers of value, quality, technology, cost and supply, your personal dedication also plays a major role: – You organize costs so that they are transparent and verifiable – You comply with agreed goals during the development process – You generate ideas for continuous improvement This foundation guarantees a successful working relationship that is characterized by trust and reliability, from which we all profit.

What Daimler expects: You agree to follow the generally applicable code of conduct. You fulfill the goals of the EBSC. You present costs with transparency. You keep to agreed objectives. You develop ideas for continuous improvement.

Cooperation 13

What Daimler commits to: We agree to follow the generally applicable code of conduct. We organize efficient business processes. We place orders with transparency on the basis of the EBSC criteria. We keep you regularly informed. We take responsibility for our values: Discipline, Passion, Integrity and Respect.

Our promise As partners, we are aware of our responsibility and keep to our commitments. We offer you dependable business relations that are designed for the long term. We provide for efficient processes and clearly defined goals. We appreciate your performance, foster your potential and enable you to grow. We value dedication and constant improvement — thus we also place orders partly based on the extent to which you satisfy the goals in the EBSC. Furthermore, a successful working relationship requires transparency and communication.

We promise all suppliers regular information on current topics — for example through the Daimler Supplier Magazine, to which you can subscribe for free or through our Daimler Supplier Portal. Last but not least, we stand for our values: Integrity, Discipline, Passion and Respect. This applies to all representatives of our company — judge us by that!

Top performance arises through perfect teamwork. And the common will to succeed.

Perfect Teamwork

On a good team both partners profit, because perfect teamwork equally advances both and assures their top position. How intensively we cooperate and how you can become a key supplier or even a strategic partner depends on various aspects. Top performance We do not only encourage suppliers to always generate top performance anew in the joint activity, we also assess this performance with the help of the EBSC. Thus we guarantee that special dedication bears fruit for both sides over the long term and that it pays off for you.

Innovative ability We are specifically looking for particularly innovative partners, regardless whether it involves technological, economic or strategic pioneering. Innovative ability is an important component of the Daimler Supplier Network and becomes more important in contract awarding. Purchasing volume Next to innovative ability and performance, the extent of the working relationship with us plays a role, too. You qualify yourself as a Strategic Partner when you rank among those suppliers who generate the most sales with Daimler.

Top performance: The basis of intensive cooperation is the will to provide top performance

Pioneer spirit: Daimler prefers to work with innovative partners

Volume: With sales, economies of scale also grow

Intensification | Increasing expectations

Whoever achieves more may also expect more

In the new Daimler Supplier Network we classify our suppliers in various groups. However, the common values and duties equally apply to all. Accordingly, all suppliers have the same starting position and opportunities for advancement at their command. We review the assignment into your segment once a year on the basis of EBSC performance. Our purchasing volume is also part of the decision. Moreover, as an especially innovative company you have a possibility of being classified directly into the top segment.

The higher you rise in the pyramid of the Daimler Supplier Network, the greater our expectations of you are and the obligations to which you commit yourself. By the same token, we also enter into greater commitments to you: We offer you planning reliability, create new business possibilities and exchange experiences with you at the top management level.

Best-in-class performance: Strategic Partner

Long-term, global cooperation: Key Suppliers

Reliable working relationship: all suppliers

The performance pyramid: The more intensive the working relationship, the higher the expectations and the greater the obligations between the partners.

Together to Success

Those who are part of the Daimler Supplier Network face demanding challenges every day. These challenges are our drive, for only with excellent processes, innovations and products do we indicate the direction of the market. The quest for top performance also has the highest strategic importance for us. That’s why “Commitment to Excellence” is the guiding idea for the entire Daimler Supplier Network. Only together we can develop innovative, specially tailored customer solutions and open up the markets of tomorrow.

Get involved with the challenges and find an open, fair and reliable customer in Daimler who opens up new business possibilities for you. A lived partnership places our working relationship on a unique basis. “Commitment to Excellence” leads it single-mindedly in one direction — all the way to the top.

Performance is our base camp.

Top performance is our goal.

Daimler AG Corporate Procurement Services HPC T728, 73734 Esslingen, Germany http:/ /