Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Debt Investor Presentation (2024)
96 slides from Mercedes-benz's debt investor presentation, 2024
Slide 1: Fixed Income Presentation Q1 2024
Fixed Income Presentation Q1 2024 Mercedes-Benz Group AG
Slide 2: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 2
Slide 3: Mercedes-Benz Group: Key figures
Mercedes-Benz Group: Key figures Revenue EBIT Earnings per share Free Cash Flow (IB) Net Industrial Liquidity in billion euros in billion euros in euros in billion euros in billion euros +3% +6% -4% -30% -22% 37.5 5.5 3.7 2.2 33.6 35.9 2.2 31.7 2.9 3.9 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024
Slide 4: Mercedes-Benz Group: EBIT
Mercedes-Benz Group: EBIT In million euros 5,504 5,422 -82 81 265 3,863 145 3,598 -1,790 -260 t/o • Legal proceedings -82 • At-equity Daimler Truck +209 • Legal proceedings +265 EBIT EBIT EBIT Mercedes-Benz Mercedes-Benz Mercedes-Benz EBIT Adjustments adjusted Reconciliation adjusted Adjustments Q1
Slide 5: Reconciliation from CFBIT to Free Cash Flow
Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow In million euros 643 147 2,297 90 2,323 2,233 -665 -154 -35 • Legal proceedings +90 Free cash flow Other Free cash flow Mercedes-Benz Mercedes-Benz Income taxes Interest Effects from (industrial reconciling (industrial Adjustments Cars
Slide 6: Mercedes-Benz Group: Net Industrial Liquidity
Mercedes-Benz Group: Net Industrial Liquidity In billion euros 1.6 1.4 0.3 0.3 0.0 33.6 31.7 -1.4 -0.3 Free cash flow industrial business Q1 2024: € 2.2 billion Additions to Net Industrial Earnings and Depreciation and Investments in Net Industrial Working capital property, plant, Liquidity other ca
Slide 7: Mercedes-Benz Group: Gross Liquidity
Mercedes-Benz Group: Gross Liquidity inbillions in billionsof EURof EUR MBM Industrial Business 1.0 -2.5 2.2 5.5 0.0 24.6 -1.7 2.3 -4.7 22.8 0.0 -0.3 3.8 3.8 20.9 19.1 Liquidity Dividend Share IB MBM Other ABS New Bond New FX + Other Liquidity Dec 2023 Payment Buyback FCF FCF Debt Maturities ABS Mat
Slide 8: Financial flexibility over a 12-month period Q1 2024
Mercedes-Benz Group: Financial flexibility over a 12-month period Q1 2024 in billions of EUR 55.8 ABS potential Daimler Truck Net industrial liquidity increased to €33.6 billion stake Other incl. 32.0 Fin. Lease Credit facility Commercial Gross industrial liquidity at €20.9 billion paper Liquidity M
Slide 9: Capital Allocation
Capital Allocation Capital Allocation Framework Share Buyback Execution Update In May 2024, EUR 3.0 bn share buyback to start. Free Cash Flow IB From May 2024 onwards buybacks will be executed in parallel. Dividend of approx. 40% In Q1 2025, before AGM, buybacks expected to reach EUR 7.0 bn. New Sha
Slide 10: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 10
Slide 11: Mercedes-Benz Cars: Q1 Product Highlights
Mercedes-Benz Cars: Q1 Product Highlights Electric G-Class AMG GT EQS AMG E-Class Fixed Income Presentation Q1 2024 11
Slide 12: Mercedes-Benz Cars: Top-End and electric vehicle unit sales
Mercedes-Benz Cars: Top-End and electric vehicle unit sales In thousand units -8% 503 463 -27% -2% Top-End 92 67 92* 92 90 10 7 67* 9 G 52 48 BEV** Core 248 268 40 5 Maybach 29 AMG thereof S 48 40 43 PHEV Entry ** 163 EQS 129 35 GLS EQS SUV Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Total MB Ca
Slide 13: Mercedes-Benz Cars: Financials
Mercedes-Benz Cars: Financials Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in billion euros in billion euros -8% -8% -44% 503.5 27.8 4.1 463.0 25.7 -22% 3.0 2.3 2.3 76.0* -2% 74.6* Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 * ASP in thousand euros excl.
Slide 14: Mercedes-Benz Cars: EBIT & RoS
Mercedes-Benz Cars: EBIT & RoS In million euros Gross Profit -1,883 4,148 4,113 -35 237 133 2,456 34 21 2,323 344 -199 -1,990 -237 RoS: RoS: 14.9% 14.8% RoS: RoS: Lower raw material prices Lower R&D cost for existing vehicles and conventional drivetrains 9.0% 9.6% Lower unit sales Unfavorable produc
Slide 15: Mercedes-Benz Cars: EBIT to CFBIT
Mercedes-Benz Cars: EBIT to CFBIT In million euros 1,491 308 2,456 -25 2,297 44 2,341 -554 -1,379 CCR: CCR: 0.9 1.0 t/o t/o • Inventories -1,619 • Result at-Equity BBAC –340 • Legal proceedings +44 • Trade Payable/ Receivables +1,927 Net investments Depreciation and CFBIT EBIT Change in working Net
Slide 16: Mercedes-Benz Vans: Key messages
Mercedes-Benz Vans: Key messages Strong sales start into the year with growth driven by commercial vans. Especially strong performance in U.S. and China. Strengthening of product portfolio with launch of new eSprinter and midsize Vans. Continuously strong product substance, healthy mix, robust prici
Slide 17: Mercedes-Benz Vans: Electric vehicle unit sales
Mercedes-Benz Vans: Electric vehicle unit sales In thousand units +7% 105 -17% 99 3.6 3.0 thereof BEV thereof Q1 2023 Q1 2024 Q1 2023 Q1 2024 Total MB Vans Electric vehicles Share in % of volume 4% 3% Fixed Income Presentation Q1 2024 17
Slide 18: Mercedes-Benz Vans: Financials
Mercedes-Benz Vans: Financials Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in million euros in million euros +7% +6% +11% +53% 105.4 4.9 800 688 98.9 4.6 719 450 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Fixed Income Presentation Q1 2024 18
Slide 19: Mercedes-Benz Vans: EBIT & RoS
Mercedes-Benz Vans: EBIT & RoS In million euros Gross Profit +98 8 133 933 181 33 800 762 719 -91 -27 -10 -13 -43 RoS: RoS: RoS: 19.1% RoS: 16.3% 16.5% 15.6% Increased unit sales with positive structure Healthy net pricing supported by strong product substance • Legal proceedings -43 Higher inflatio
Slide 20: Mercedes-Benz Vans: EBIT to CFBIT
Mercedes-Benz Vans: EBIT to CFBIT In million euros 40 9 933 126 -176 45 688 643 -289 CCR: CCR: 0.7 0.9 t/o • New vehicle stock –211 • Legal proceedings +45 • Trade payable +220 Net investments Depreciation and CFBIT EBIT Change in working Net financial CFBIT in pp&e and amortization/ Other Adjustmen
Slide 21: Mercedes-Benz Mobility: Key messages
Mercedes-Benz Mobility: Key messages Stable new business development and continued support for xEV sales. Portfolio margin still under pressure. Profitability of new acquisitions continued to improve. Higher cost of credit risk mainly driven by U.S. Expanding worldwide charging solutions for our cus
Slide 22: Mercedes-Benz Mobility: Financials
Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in million euros 0% 0% 14.7 14.8 135.0 134.7 -48% 539 279 Q1 2023 Q1 2024 12/31/2023 03/31/2024 Q1 2023 Q1 2024 Fixed Income Presentation Q1 2024 22
Slide 23: Mercedes-Benz Mobility: EBIT & RoE
Mercedes-Benz Mobility: EBIT & RoE In million euros 539 0 539 -16 -95 30 279 0 279 RoE: RoE: 14 15.6% 15.6% -186 -7 Positive volume development RoE: RoE: Interest margin impacted by interest rate development in competitive environment 8.5% 8.5% Higher cost of credit risk driven by the U.S. Lower rem
Slide 24: Mercedes-Benz Mobility: Net credit losses
Mercedes-Benz Mobility: Net credit losses* 0.89% 0.83% 0.43% 0.34% 0.37% 0.33% 0.31% 0.31% 0.38% 0.24% 0.26% 0.26% 0.21% 0.21% 0.29% 0.20% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 * As percentage of portfolio, subject to credit risk. Fixed Income Presentati
Slide 25: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 25
Slide 26: Mercedes-Benz Divisional Guidance 2024
Mercedes-Benz Divisional Guidance 2024 ASSUMPTION The assumptions regarding the economic situation and the development of automotive markets continue to be characterized by a degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the bus
Slide 27: Mercedes-Benz Group Guidance 2024
Mercedes-Benz Group Guidance 2024 ASSUMPTION The assumptions regarding the economic situation and the development of automotive markets continue to be characterized by a degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business
Slide 28: Group/Divisional Guidance Ranges
Mercedes-Benz Group/Divisional Guidance Ranges* Specification/ Significantly Slightly below At prior-year Slightly above Significantly KPI below level above Revenue/ X < -7.5% -7.5% ≤ X < -2% -2% ≤ X ≤ +2% +2% < X ≤ +7.5% X > +7.5% Unit Sales EBIT (Group) X < -15% -15% ≤ X <-5% -5% ≤ X ≤ +5% +5% < X
Slide 29: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 29
Slide 30: Our funding strategy is built on strict principles
Our funding strategy is built on strict principles Targeting Financial Maximizing Financial Stringent Global Independence Flexibility Funding Policy No dependence from single Keeping prudent amount of Liquidity matched funding markets, instruments, banks or Cash and Committed Credit investors Facili
Slide 31: Portfolio at Mercedes-Benz Mobility remained stable compared to 2023
Portfolio at Mercedes-Benz Mobility remained stable compared to 2023 Wholesale 163 154 151 140 Loan 133 134 132 135 135 Lease 117 99 Portfolio (in bn €) 74 Others 71 72 68 62 64 62 58 58 Vans 48 Acquisitions (in bn €) 15 Cars 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Mar 2024 Fixed Incom
Slide 32: Mobility benefits from stringent credit management and solid refinancing
Mercedes-Benz Mobility business benefits from stringent credit management and solid refinancing Net credit losses as a percentage of portfolio. subject to credit risk Net credit losses increased mainly driven by the US market. Due to the still challenging situation in US. net credit losses are expec
Slide 33: Well balanced bond maturity profile
Well balanced bond maturity profile in billions of EUR as of 31 st March 2024 Issued in 2024 11.4 11.3 Maturities 1.3 7.5 6.3 1.8 10.0 4.6 4.0 0.1 3.4 3.1 0.8 4.6 1.7 4.0 1.3 1.2 2.6 0.9 0.7 0.9 0.5 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2037 Fixed Income Presentation Q1 2024 33
Slide 34: Financing liabilities show a diversified funding mix
Financing liabilities show a diversified funding mix in billions of EUR Lease Liabilities Acc. Deposits Other (ex Lease Liab.) Bank Loans Com. Paper Bonds ABS 145.8 3% 11% 1% 125.8 2% 0% 1% 10% 0% 111.8 2% 108.6 2% 108.0 2% 15% 1% 1% 1% 11% 15% 2% 3% 2% 22% 14% 15% 9% 5% 4% 19% 22% 23% 24% 53% 53% 4
Slide 35: Balanced mix of funding instruments
To ensure sustainable portfolio growth, we mitigate risk and volatility through a balanced mix of funding instruments Capital Markets Strengthen our global footprint and use market opportunities Deepen our excellent Bank Loans bank relationships Other Lease Liabilities 1% Globally expand our highly
Slide 36: Diversified global funding base matched with MBM requirements
Diversified global funding base: continuously matched with MBM requirements Canada EMTN Domestic Bonds CP Prog. Europe ABS EMTN Program Japan EUR CP Program Domestic CP Prog. USA Italy & Hungary: China EMTN 144a / RegS PP - Domestic Bonds Turkey ABS Domestic Bond Prog. EMTN ABS Domestic Bond Prog. A
Slide 37: Financial KPIs set to support a strong rating
Mercedes-Benz Group’s financial KPIs set to support a strong rating Agency Long-term Outlook Short-term Standard & Poor's: A stable A-1 Moody’s: A2 stable P-1 Current Ratings: Fitch: A stable F1+ DBRS: A stable R-1 (low) Scope: A+ stable S-1+ Fixed Income Presentation Q1 2024 37
Slide 38: Funded Ratio of pension obligations at approximately 105%
Funded Ratio of pension obligations at approximately 105% Daimler Group Mercedes-Benz Group (excl. Truck) 14 11.5 12 10 7.8 8.1 Solid capital 7.4 structure: on a net in EUR bn 8 5.9 6 4.5 4.3 4.3 4 3.1 1.9 2.4 3.7 basis, no more 1.5 2 0.5 0.5 0.6 0.5 0.1 0.0 pension provisions 0 -2 -0.1 -0.1 since 1
Slide 39: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 39
Slide 40: The pace of the transformation is set by customers and market conditions
The pace of the transformation is set by customers and market conditions We continue to scale our EV business We will be able to cater to different customer needs until well into the 2030s +73 % BEV sales at Mercedes-Benz brand in 2023 as high as 50 % expected xEV* share of in the fleet of new vehic
Slide 41: Moving forward with Ambition 2039 with flexibility
We are moving forward with our Ambition 2039 and have the flexibility to meet all of our customers' needs well into the 2030s BEV ICE STRATEGIC CONSISTENCY & TACTICAL FLEXIBILITY Investment share EVs FY 2023* Free cash flow since 2020 47 % € 36 BN -20 % Investments targeted vs. 2019 in 2nd half of d
Slide 42: Our sustainable business strategy Ambition 2039
Our sustainable business strategy “Ambition 2039” goes far beyond our products Production: aim to cut Sourcing: ~60% of critical Closing the loop: building Retail: aim for net-carbon CO2 emissions by 2030 raw material assessment battery recycling factory neutrality by 2030 across at own plants by 80
Slide 43: Ambition 2039 - Commitment to net carbon-neutrality
Ambition 2039 - Our commitment to net carbon-neutrality1 Supply chain Production & logistics Well-to-tank Tank-to-wheel End-of-life SBTi2 SBTi2 SBTi2 2020: 49.7 t CO2 emissions per vehicle, Mercedes-Benz Cars3 2023: 46.3 t CO2 emissions per vehicle, Mercedes-Benz Cars3 2030: Targeted reduction by up
Slide 44: Upcoming all-electric architectures
We are taking the necessary steps to go all-electric with our upcoming architectures MMA MB.EA AMG.EA VAN.EA Fixed Income Presentation Q1 2024 44
Slide 45: MMA family integrates technology from VISION EQXX
MMA FAMILY integrates technology from VISION EQXX — the most efficient Mercedes we have ever built Mercedes-Benz Electric Drive Unit (MB.EDU) with up to 93 % efficiency Consumption of ~12 kWh/100 km 15 min charging delivers Range of more than 800 V system enables up to 750 km* 300 kW up to 400 km ra
Slide 46: Fast, convenient, and reliable charging solutions
We want to ease the life of our customers with fast, convenient, and reliable charging solutions Global Joint Ventures MB branded HPC network Adding more options EU: >3,300 HPC plugs built >10,000* HPC plugs across Access to superchargers in North China: >7,000* HPC plugs by 2026 our key markets by
Slide 47: Mitigating transformation risks - optimising our footprint
Mitigating transformation risks - optimising our footprint CAPACITY TRANSFORMATION FLEXIBILITY Structural adjustment and realignment Rightsizing industrial footprint, e.g. Jawor: Maximum flexibility with xEVs* and combustion of production capacity and volume, transformation from powertrain into van
Slide 48: Mitigating transformation risks - optimising our cost base
Mitigating transformation risks - optimising our cost base SCALE BATTERIES PROCUREMENT Future all-electric architectures designed in > 30 % reduction in €/kWh battery cost Targeting the reduction of material a way to use common components and possible in the coming years, while improving costs in th
Slide 49: EU Taxonomy-aligned shares
EU Taxonomy-aligned shares1 - Taxonomy reporting demonstrates progress towards carbon neutrality REVENUES CAPITAL EXPENDITURES 2 OPERATING EXPENSES + 29% € 5.2BN + 40% € 4.0BN € 2.3BN € 2.3BN € 21BN € 15BN 35% 32% 14% 10% 24% 7% >40% capitalised R&D CapEx intang. Assets4 54% | € 1.9bn + 47% € 2.8bn
Slide 50: Expanding activities in battery cells and systems with partners
Together with our partners, we will expand our activities in battery cells and systems Local-for-local strategy with partners and new cell factories around the world Envision AESC CATL ACC Fixed Income Presentation Q1 2024 50
Slide 51: Addressing the battery cost challenge
We are addressing the battery cost challenge >30% possible €/kWh battery cost reduction in coming years – while improving efficiency & charging time ▸ Optimised cell and module design ▸ Improved vehicle integration ▸ Further development of NMC and next gen LFP ▸ Cell updates during lifecycle ▸ Conti
Slide 52: Carbon reduction & renewable energy expansion
Carbon reduction & renewable energy expansion at Mercedes-Benz Cars; net carbon-neutral production since 20221 CO2 emissions2 -7 2 % -80 % ZERO Renewable energy 47 % 70 % 100 % 2023 2030 2039 1 All production plants operated by the Mercedes-Benz Group have been net carbon-neutral in terms of Scope 1
Slide 53: Producing clean energy in production
Having achieved net carbon-neutral production in 2022, not only do we use clean energy in production, we also produce it It is our ambition to make all Mercedes- Benz factories renewable energy production sites Maximising our on-site photovoltaic systems worldwide by 2025 – adding up to 140 MWp new
Slide 54: Establishing a net carbon-neutral supply chain
We are establishing a net carbon-neutral supply chain Raw materials In the future, raw materials for battery Processed components only from IRMA-certified mines materials & components Cooperation with strategic partners, e. g. for lithium Recycling hydroxide with German-Canadian Rock Tech Lithium In
Slide 55: Battery recycling factory in Kuppenheim
Closing the loop with our net carbon-neutral battery recycling factory in Kuppenheim PHASE 1 | FRONT-END RAMP-UP >96% recovery rate Innovative mechanical- hydrometallurgical process Recycling of lithium-ion batteries Recycling of more than Recovered materials to produce more than 2,500 50,000 Fixed
Slide 56: Re-shape Re-skill Re-charge
Our people plan focuses on a just transition for our employees 3,000 Re-shape positions filled with Individual target plans for our entities, plants Realignment of our global production network towards electric vehicles and Streamlining our organisation software engineers and functions in a responsi
Slide 57: We finance our transformation in a sustainable manner
We finance our transformation in a sustainable manner G R E E N F I N A N C E F R A M E W O RK GREEN PANDA BOND In line with Ambition 2039 First automaker to issue a Green Panda Bond “DARK GREEN” by CICERO Green Finance regional footprint Green Mercedes-Benz Mobility assets expanded and Green ABS Ne
Slide 58: Mercedes-Benz Group ESG ratings performance
Mercedes-Benz Group ESG ratings performance 2019 2020 2021 2022 2023 Improvements at MSCI and Sustainalytics since 2019 MSCI BBB BBB A A A Upgrade at Sustainalytics to SUSTAINALYTICS medium risk low risk low risk in October 2023 27.1 25.6 22.1 20.9 19.6 ISS ESG C+ C+ C+ C+ C+ Maintained high level a
Slide 59: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 59
Slide 60: The original and most valuable luxury car brand
Mercedes-Benz – The original and most valuable luxury car brand Heritage: Formula 1: Mercedes-Benz is built on constant reinvention The power of F1 for our brand 1.5 bn 70.5 mn cumulative TV viewers 2 social media followers 2 $61 bn Mercedes-Benz brand value 2023 which equals +9% vs. prior year 1 1
Slide 61: Elevating our physical brand experience
We elevate our physical brand experience with unique “Mercedes moments” “The Mercedes-Benz Way” New retail brand concept Brand center network Training for sales and service Customers experience new look Global expansion to ensure highly partners is taking place in 33 and feel already visible in >30%
Slide 62: We put our customer at the center of our business
We put our customer at the center of our business Retail of the future eCommerce & digital customer experience Rollout of agency model in full swing. 11 markets live Option to buy MB offline and online in>40 markets today, covering >50% of sales volume in Europe worldwide. MB online store among Top
Slide 63: Significant progress with top-end vehicles
Significant progress with our top-end vehicles and increasingly electric with even more conquest potential +31% 250k to 328k ~60% Expected growth of top-end vehicle share Top-end vehicle unit sales 2023 vs. 2019 of total Mercedes-Benz sales 2019-2026 Fixed Income Presentation Q1 2024 63
Slide 64: New tailor-made products for China
We will introduce new tailor-made products to capture further growth potential in China 15 new models will be introduced to China in 2024 E-Class LWB fond developed in China for China Fixed Income Presentation Q1 2024 64
Slide 65: Our game plan: generate returns consistent with luxury status
Our game plan: generate returns consistent with our luxury status What we are going to do The financial Impact Focus on pricing power Drive ASP higher Optimise product portfolio Find a superior operating equilibrium Structurally higher profitability and Tap full potential of top-end segment improved
Slide 66: The power of pricing is part of our strategy
The power of pricing is part of our strategy Key Levers Superior brand drives pricing power Strong products enable ambitious initial price setting versus competition Sustainable price escalation Tight discounts: from sales push to lifecycle management Direct sales model allows grip on pricing Clear
Slide 67: Reshaped model portfolio will drive profitable sales growth
Reshaped model portfolio will drive profitable sales growth Change of Mercedes-Benz segment share in 2.3 m cars 2.0 m cars Car Sales 2026 vs. 2019 Around Top-End 328k units +60% Average ASP >100k € Core 0% Entry -25% 2019 2023 2026 Fixed Income Presentation Q1 2024 67
Slide 68: Entry Segment – Focus & Elevate
Entry Segment – Focus & Elevate Elevate to Entry Luxury Sales volume Product range refocused on fewer and more 680k 570k upscale portfolio positions: MMA platform with CLA, CLA Shooting Brake, GLA and GLB Change of segment share in 2026 vs. 2019 -25% The new entrance point of the portfolio is being
Slide 69: Core Segment – Grow & Refine
Core Segment – Grow & Refine Sales volume Core Luxury going electric on an accelerated 1.350k 1.030k timescale, leveraging EVA (EQE, EQE-SUV) and then MB.EA architectures Change of segment share in 2026 vs. 2019 flat Brand-new GLC Coupé, CLE Coupé and Change of ASP E-Class Saloon & Estate launched i
Slide 70: Top-End Segment – Expand & Enhance
Top-End Segment – Expand & Enhance Sales volume 328k top-end luxury units with ASP 250k 305k of > € 100k and top-end profitability in 2023 Change of segment share in 2026 vs. 2019 Sustainable segment growth in 2023 +60% Change of ASP Desirable products fueling growth: around +15% regular price adjus
Slide 71: New opportunities for profitable growth at the top-end
We are creating new opportunities for profitable growth at the top-end of our product and brand portfolio Mercedes-Maybach EQS 680 SUV (combined energy consumption: 24.1-22.0 kWh/100 km | CO2 emissions combined: 0 g/km | CO2 class: A) S-Class: strengthening G-Class: evolving the Maybach: redefining
Slide 72: More individualisation and exclusive editions
For our most demanding customers, we will offer even more individualisation and exclusive editions Extension of Exclusive limited Mythos: First Mythos car Collaborations to shape individualisation program: editions: Maybach by next year the brand: Moncler MANUFAKTUR Virgil Abloh Fixed Income Present
Slide 73: Changing our economic equation
Changing our economic equation Enhance ROIC: control the denominator while raising the numerator (operating and cash margins) Drive growth through high utilisation, ‚reverse auction‘ of available capacity to build the most profitable models 75% of capital allocation focused on top-end and core segme
Slide 74: Optimizing our footprint and cost base
We are continuously optimizing our footprint and our cost base Retail: evaluating potential sale Production: rightsizing industrial Procurement: target of own retail business footprint, e.g. Jawor: transformation to reduce material costs in Germany from powertrain into van site, in the next years be
Slide 75: Bottom line
Bottom line We cannot control macro- or world events. But we are redesigning & repositioning Mercedes-Benz to ensure a structurally more profitable company. Fixed Income Presentation Q1 2024 75
Slide 76: The essence of our brand and our way forward
The essence of our brand and our way forward ICONIC LEADING LUXURY TECHNOLOGY Fixed Income Presentation Q1 2024 76
Slide 77: Agenda
AGENDA I. Mercedes-Benz Group Review Q1 2024 II. Divisional Review Q1 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q1 2024 77
Slide 78: Pioneering advancements in automated driving
Mercedes-Benz continues to pioneer advancements in automated driving Launching Automatic Lane Change Advancing DRIVE PILOT (L3) Cooperating with NVIDIA Function introduced in U.S. and Aim to extend speed to ~90 km/h Joint development of future China, Europe to follow soon in Germany by end of 2024,
Slide 79: An exceptional digital experience
We are creating an exceptional digital experience Own operating system MB.OS Launch in 2025 with MMA CHECK Foto: Winter testing CLA Chip-to-cloud architecture High-end computers give full access to hard- & software Next level infotainment Human-like interaction with generative AI, expansion of digit
Slide 80: We are the architects
The fundamental building principles of our own operating system We are the architects SPECIFY DESIGN DEVELOP PROCURE/ PA R T N E R I N T E G R AT E U P G RA D E Fixed Income Presentation Q1 2024 80
Slide 81: The fundamental building principles
The fundamental building principles 1. Purpose-built and open to partners 2. Personalized services through one unique Mercedes Me ID 3. Privacy-by-design from th e very beginning 4. Full overt-the-air updatability and decoupled software and hardware releases Fixed Income Presentation Q1 2024 81
Slide 82: Mercedes-Benz Operating System MB.OS
All central to our own Mercedes-Benz Operating System MB.OS Proprietary operating system Four domains: Infotainment, Automated Driving, Body & Comfort, Driving & Charging Service-oriented chip-to-cloud architecture Fixed Income Presentation Q1 2024 82
Slide 83: Delighting customers with an extraordinary experience
Delighting our customers with an extraordinary experience The most desirable HARDWARE CANVAS … for the most desirable SOFTWARE CONTENT Fixed Income Presentation Q1 2024 83
Slide 84: The operating system of our entire business
It’s about the operating system of our entire business We’re connecting the elements to build an integrated network Fixed Income Presentation Q1 2024 84
Slide 85: Beneficial partnership with NVIDIA for MB.DRIVE
Beneficial partnership with NVIDIA for MB.DRIVE Shared Joint Effort Benefit NVIDIA: + Common use of data, AD base software IP rights Software updates and codes SoC integration Faster development times Mercedes-Benz: Vehicles integration Optimized product costs Application development Variable costs
Slide 86: Next-generation Level 2 automated driving
Advancing next-generation Level 2 automated driving Leveraging machine learning Best-in-class LiDAR Point-to-point assisted driving based on navigation New dimension of processing power Substantially increased availability and ODD AI-powered and data-driven Starting with MMA for entry segment System
Slide 87: Next-gen Level 3 automated driving
Accelerating next-gen Level 3 automated driving with 2x computing power Giving customers back even more time Up to 130 km/h in its final stage Automatic Lane Change (ALC) and highway-to-highway transfer Worldwide rollout to additional markets Fixed Income Presentation Q1 2024 87
Slide 88: MB.CONNECT package
We are bundling the best functionalities into one MB.CONNECT package The MB.CONNECT package will bundle a wide range of services into one High flexibility: Available for a fixed-term three-year contract with vehicle purchase or via subscription From 2025 onwards, 80% customer retention expected (for
Slide 89: A strong digital customer base
A strong digital customer base as a springboard for future growth TODAY Mercedes me is live in 50 markets > 10 million connected cars worldwide 2025 65 markets Mercedes me is planned to be live in … and targeting expansion to more than 16 million connected Fixed Income Presentation Q1 2024 89
Slide 90: MB.CHARGE fixed prices and priority access
MB.CHARGE – we offer fixed prices and priority access to our charging network Transparent, fixed-price charging rates Priority access for customers to the Mercedes-Benz HPC network > 80% customer retention expected from 2025 onwards (for vehicles in the one-to-six-year age) Fixed Income Presentation
Slide 91: MB.DRIVE expanded and new offerings
MB.DRIVE – our expanded and new offerings for assisted and automated driving Starting with MMA we aim to equip all new models with hardware for enhanced assisted driving Ability to upgrade to a higher degree of assistance foreseen across whole lifecycle Conditionally automated driving functionalitie
Slide 92: MB.DRIVE unlocks new revenue and EBIT pools
MB.DRIVE unlocks new revenue and EBIT pools Features available as factory and store sales Low single-digit Bn EUR revenue by mid of the decade Mid single-digit Bn EUR revenue by end of the decade Schematic graph Fixed Income Presentation Q1 2024 92
Slide 93: Total software-enabled revenue development
Total software-enabled revenue development + Low-to-mid single-digit Bn EUR revenue by mid of the decade High single-digit Bn EUR revenue by end of the decade 1 Bn EUR EBIT on track by mid of the decade All figures part of existing weather chart Schematic graph Fixed Income Presentation Q1 2024 93
Slide 94: MB.OS software and hardware investment
MB.OS software and corresponding hardware investment are part of existing financial target landscape Increased share of R&D invest in EV and MB.OS software & hardware Run-rate of 1-2 Bn EUR p.a. for MB.OS software & hardware 25% of R&D invest by mid of decade for MB.OS software and hardware Midterm
Slide 95: We are the architects
We are the architects Our promise: The world‘s most desirable cars Our opportunity: Outstanding products & improved enterprise productivity Our conviction: Software a core competence Our realism: Technology partnerships essential Our vision: Future proofing our valuable real estate Our focus: Delive
Slide 96: Disclaimer
Disclaimer This document contains forward-looking statements that reflect our current views about future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “can”, “could”, “plan”, “project”, “should” and similar expressions are used to identify forward-lookin
Mercedes-Benz Group — Debt Investor Presentation (2024) on 6ix