Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Debt Investor Presentation (2024)
99 slides from Mercedes-benz's debt investor presentation, 2024
Slide 1: Fixed Income Presentation Q2 2024
Fixed Income Presentation Q2 2024 Mercedes-Benz Group AG
Slide 2: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 2024 2
Slide 3: Mercedes-Benz Group: Key messages
Mercedes-Benz Group: Key messages Performance: robust car and van sales in subdued market environment. Products: world premiere of electric G-Class, extensive EQS upgrade & Mythos series Concept Mercedes-AMG PureSpeed. Further ramp-up of recently launched vehicles. Profitability: Cars double digit m
Slide 4: 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 -4% -19% -12% -52% -12% 38.2 5.0 3.34 3.4 31.7 36.7 2.95 28.0 4.0 1.6 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2
Slide 5: Mercedes-Benz Group: EBIT
Mercedes-Benz Group: EBIT In million euros 223 5,211 4,988 42 22 4,049 4,037 -1,049 -177 -12 t/o • At-equity Daimler Truck - 147 • Legal proceedings -12 • Legal proceedings + 18 • Russia + 205 EBIT EBIT EBIT Mercedes-Benz Mercedes-Benz Mercedes-Benz EBIT Adjustments adjusted Reconciliation adjusted
Slide 6: Reconciliation from CFBIT to Free Cash Flow
Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow In million euros 591 2,156 238 1,629 70 1,699 91 14 -1,461 • Legal proceedings +70 Free cash flow Other Free cash flow Mercedes-Benz Mercedes-Benz Income taxes Interest Effects from (industrial reconciling (industrial Adjustments Cars
Slide 7: Mercedes-Benz Group: Net Industrial Liquidity
Mercedes-Benz Group: Net Industrial Liquidity In billion euros 3.5 1.6 0.3 33.6 -1.8 -2.0 1.1 28.0 -5.5 Free cash flow industrial business -2.8 Q2 2024: € 1.6 billion Additions to Net Industrial Earnings and Depreciation and Investments in Net Industrial Working capital property, plant, Liquidity ot
Slide 8: Mercedes-Benz Group: Gross Liquidity
Mercedes-Benz Group: Gross Liquidity inbillion In billions euros of EUR MBM Industrial Business 22.8 -5.6 3.8 9.6 -0.1 19.9 3.9 0.4 -2.2 -3.1 6.0 -7.3 3.2 -4.4 19.1 16.7 Liquidity Dividend Share IB MBM Other ABS New Bond New FX + Other Liquidity Dec 2023 Payment Buyback FCF FCF Debt Maturities ABS M
Slide 9: Financial flexibility over a 12-month period
Mercedes-Benz Group: Financial flexibility over a 12-month period Q2 2024 In billion euros 49 ABS potential Daimler Truck 33 stake Other incl. Gross industrial liquidity at €16.7 billion Fin. Lease Credit facility Commercial Financial flexibility supported by €11 billion revolving paper credit facil
Slide 10: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 2024 10
Slide 11: Mercedes-Benz Cars: Top-End and electric vehicle unit sales
Mercedes-Benz Cars: Top-End and electric vehicle unit sales In thousand units -4% 516 497 Top-End 85 -17% -6% 70 85* 96 90 11 6 70* 9 G 5 Maybach 46 BEV** Core 277 290 61 38 35 AMG thereof S 43 EQS 44 PHEV Entry ** 154 136 33 35 GLS EQS SUV Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Total MB Ca
Slide 12: 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 -4% -4% -28% -43% 515.7 28.2 3.8 3.8 496.7 27.2 2.8 2.2 73.5* -4% 70.9* Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 * ASP in thousand euros excl.
Slide 13: Mercedes-Benz Cars: EBIT & RoS
Mercedes-Benz Cars: EBIT & RoS In million euros Gross Profit -1,020 3,852 3,812 -40 144 395 34 61 2,763 2,756 -268 -7 -1,345 -70 RoS: RoS: 13.6% 13.5% Operational efficiencies Favorable material costs RoS: RoS: Lighter product-mix 10.2% 10.1% Negative Net Pricing Effect • Legal proceedings +26 Highe
Slide 14: Mercedes-Benz Cars: EBIT to CFBIT
Mercedes-Benz Cars: EBIT to CFBIT In million euros 2,756 893 2,156 36 2,192 130 1,501 -1,424 CCR: CCR: 0.8 0.8 t/o • Inventories -426 t/o • Trade Payable/ • Dividend BBAC +641 • Legal proceedings +36 Receivables -998 • Result at-Equity BBAC –305 -1,700 Net investments Depreciation and CFBIT EBIT Cha
Slide 15: Mercedes-Benz Vans: Electric vehicle unit sales
Mercedes-Benz Vans: Electric vehicle unit sales In thousand units -13% 120 +3% 5.2 5.1 103 thereof BEV thereof Q2 2023 Q2 2024 Q2 2023 Q2 2024 Total MB Vans Electric vehicles Share in % of volume 4% 5% Fixed Income Presentation Q2 2024 15
Slide 16: 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 +5% -13% -7% -24% 119.5 5.1 834 819 4.8 792 103.4 624 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Fixed Income Presentation Q2 2024 16
Slide 17: Mercedes-Benz Vans: EBIT & RoS
Mercedes-Benz Vans: EBIT & RoS In million euros Gross Profit +32 88 3 23 10 834 830 806 792 6 -61 -26 -4 -14 RoS: RoS: RoS: RoS: 15.7% 15.5% 17.5% 17.4% Healthy net pricing and mix supported by strong product substance Favorable FX Favorable material cost • Legal proceedings -9 Lower unit sales • Le
Slide 18: Mercedes-Benz Vans: EBIT to CFBIT
Mercedes-Benz Vans: EBIT to CFBIT In million euros 830 33 624 248 591 22 -405 129 CCR: CCR: 0.7 0.7 t/o t/o -233 • New vehicle stock –152 • Dividend FBAC +99 • Legal proceedings +33 • Trade payable –118 Net investments Depreciation and CFBIT EBIT Change in working Net financial CFBIT in pp&e and amo
Slide 19: Mercedes-Benz Mobility: Financials
Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in million euros +1% -9% 15.4 134.7 135.7 14.1 -40% 448 271 Q2 2023 Q2 2024 03/31/2024 06/30/2024 Q2 2023 Q2 2024 Fixed Income Presentation Q2 2024 19
Slide 20: Mercedes-Benz Mobility: EBIT & RoE
Mercedes-Benz Mobility: EBIT & RoE In million euros 276 448 -7 -52 25 271 0 271 5 -4 RoE: -144 12.8% 172 RoE: RoE: Efficiency measures leading to cost improvements 8.4% 8.4% RoE: Interest margin impacted by interest rate development in competitive environment Higher cost of credit risk driven by con
Slide 21: Mercedes-Benz Mobility: Net credit losses
Mercedes-Benz Mobility: Net credit losses* 0.89% 0.83% 0.43% 0.37% 0.34% 0.33% 0.40% 0.31% 0.31% 0.26% 0.26% 0.24% 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 22: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 2024 22
Slide 23: 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 24: 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 25: 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 26: We will continue to execute our strategy
We will continue to execute our strategy Top-End ramp-up Maintain cost Further momentum supporting sales & mix discipline, resilience generated by several in second half at work initiatives, e.g. BEAT Fixed Income Presentation Q2 2024 26
Slide 27: We will be able to cater to different customer needs well into the 2030s
We will be able to cater to different customer needs well into the 2030s All new models aim to exceed highest customer expectations Flexibility to offer Product offensive 2025ff Desirable offerings ICE & BEV during with new positions & in all segments transition phase significant upgrades Fixed Inco
Slide 28: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 2024 28
Slide 29: 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 30: Portfolio at Mercedes-Benz Mobility remained stable compared to 2023
Portfolio at Mercedes-Benz Mobility remained stable compared to 2023 Wholesale 163 154 151 Loan 140 133 134 132 135 136 Lease 117 99 Portfolio (in bn €) Others 72 74 71 68 62 64 62 MB Vans 58 58 48 Acquisitions (in bn €) 29 MB Cars 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Jun 2024 Fixed
Slide 31: Mercedes-Benz Mobility credit management and solid refinancing
Mercedes-Benz Mobility business with 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 0.40 consumer segment in the US market. 0.31 0.31 0.33 0.29 Due to the still challenging situ
Slide 32: Well balanced bond maturity profile
Well balanced bond maturity profile in billions of EUR as of June 30 th, 2024 Issued in 2024 12.4 Maturities 11.5 2.4 8.2 3.6 4.8 10.0 4.6 4.0 4.3 0.1 3.4 1.2 0.8 4.6 1.7 3.9 1.2 1.3 2.6 3.1 0.9 0.7 0.9 0.5 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2037 Fixed Income Presentation Q2 2024
Slide 33: 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% 110.9 2% 15% 1% 1% 1% 11% 15% 2% 3% 5% 22% 14% 16% 9% 5% 2% 19% 23% 22% 22% 53% 53% 4
Slide 34: 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 Other Lease Liabilities Bank Loans bank relationships 1% Bank loans Globally expand
Slide 35: 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 36: 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 Q2 2024 36
Slide 37: 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 -1.1 si
Slide 38: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 2024 38
Slide 39: Pace of transformation is set by customers and market conditions
The pace of the transformation is set by customers and market conditions We will be able to cater to different customer needs until well into the 2030s as high as 50 % expected xEV* share of new vehicles at Mercedes- Benz Cars in 2nd half of this decade -20 % Investments targeted vs. 2019 in 2nd hal
Slide 40: Sustainable business strategy Ambition 2039
Our sustainable business strategy “Ambition 2039” goes far beyond our products Production: The ambition for all Mercedes-Benz production plants worldwide Closing the loop: building Sourcing: ~60% of critical Retail: aim for net-carbon is to run 100 percent on battery recycling factory raw material a
Slide 41: 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 By end of the decade: Reductio
Slide 42: 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 43: VISION EQXX – third successful long-distance mission
VISION EQXX – third successful long-distance mission Fixed Income Presentation Q2 2024 43
Slide 44: eCAMPUS: Developing high-performance cells
eCAMPUS: Developing high-performance cells with "Mercedes-Benz DNA" Develops and evaluates cell chemistries and advanced cell designs in various The Chemistry Lab formats – from button cells to small multi-layer pouch cells The Flexible Cell Lab Builds and tests large prototype cells in automotive .
Slide 45: 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 46: 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 47: 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 48: 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 49: Expanding 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 Q2 2024 49
Slide 50: We are 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 51: Carbon reduction & renewable energy expansion
Carbon reduction & renewable energy expansion at Mercedes-Benz Cars; net carbon-neutral production since 20221,2 CO2 emissions3 -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
Slide 52: Solar and wind power for German electricity demand
Mercedes-Benz Group intends to cover more than 50% of its total electricity demand in Germany from new solar and wind power plants PHOTOVOLTAIC W I N D PA R K PA P E N B U R G W I N D PA R K W I N D A N K E R 20 wind turbines Power Purchase with a capacity of Agreement (PPA) up to around securing 14
Slide 53: Establishing a net carbon-neutral supply chain
We are establishing a net carbon-neutral* supply chain STEEL ALUMINIUM 1/3 of primary aluminium for next BEV models in EU using electricity from renewable sources CARBON FOOTPRINT for electrolysis – goal is to extend to all aluminium sourced for our R E D U C T I ON B Y 4 0 % foundry in Mettingen (G
Slide 54: 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 * Net
Slide 55: Sustainable people plan: Re-shape, Re-skill, Re-charge
Our sustainable people plan focuses on a just transition for our employees Re-shape Target pictures of locations and entities Becoming a lean, resilient, agile and innovative Hiring for our future Streamlining our organisation company in a responsible way >2 bn 2.3 mn ~ 142.000 Re-skill Cultivating
Slide 56: 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 expanded Green Mercedes-Benz Mobility assets and Green ABS Ne
Slide 57: 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 58: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 2024 58
Slide 59: 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 60: 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 61: Concept Mercedes-AMG PureSpeed
Concept Mercedes-AMG PureSpeed – expressive concept car gives a look at the first model in the Mythos series Radical design concept kicks off the launch of the highly exclusive Mythos series Concept Mercedes-AMG PureSpeed references the design language of legendary racing cars Exclusive world premie
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: 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 Q2 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 Q2 2024 64
Slide 65: Our game plan: 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 Q2 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 Change of segment share in 2026 vs. 2019 CLA, CLA Shooting Brake, GLA and GLB -25% The new entrance point of the portfolio is being
Slide 69: Core Segment – Grow & Refine
Core Segment – Grow & Refine Core Luxury Sales volume Launch of new generation of mid-size volume 1.350k 1.030k vehicles (C-Class, GLC). New generation of Change of segment share in 2026 vs. 2019 large-size vehicles as ICE and BEV to follow flat New GLC Coupé, CLE Coupé and Change of ASP E-Class Sal
Slide 70: Top-End Segment – Expand & Enhance
Top-End Segment – Expand & Enhance Top End Luxury Sales volume New generation of top-end electric AMGs and 250k 305k large-size vehicles as ICE and BEV to follow Change of segment share in 2026 vs. 2019 328k top-end luxury units with ASP of > € 100k +60% Change of ASP Desirable products fueling grow
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 Q2 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 Q2 2024 76
Slide 77: Agenda
AGENDA I. Mercedes-Benz Group Review Q2 2024 II. Divisional Review Q2 2024 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation Q2 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 up to 95 Joint development of future China, Europe to follow soon km/h in Germany by end of 2024
Slide 79: DRIVE PILOT SAE-Level 3
Conditionally automated driving SAE-Level 3: DRIVE PILOT gives back time to customers Mercedes-Benz is the first car company in the world to meet the UN-R157 regulation for conditionally automated driving. Browsing Messaging Relaxing Orders for DRIVE PILOT for the S-Class and EQS started on May 17,
Slide 80: Continuous updates for DRIVE PILOT
Continuous updates for DRIVE PILOT: Advanced speed and take-over time enables unseen in-cabin use cases only L3 vehicles can offer 2021 2023 2024 95 End of decade 60 130 Germany with Nevada and California Germany with up to Stepwise extension take-over- 60 km/h with 40 mph 95 km/h time, markets and
Slide 81: Driving Assistance Package with DRIVE PILOT
Driving Assistance Package with DRIVE PILOT Parking Package with 360°-Camera Rear Multi-Purpose Camera Antenna Module Opening angle 50° Stereo Multi-Purpose Camera Opening angle 70° Front Long-Range Radar Opening angle 90° / 9° Ultrasonic Sensors 12x Opening angle 120° 360°-Camera 4 Single Cameras L
Slide 82: We are creating 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 83: 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 Q2 2024 83
Slide 84: 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 Q2 2024 84
Slide 85: 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 Q2 2024 85
Slide 86: Delighting our 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 Q2 2024 86
Slide 87: 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 Q2 2024 87
Slide 88: 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 89: 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 90: 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 Q2 2024 90
Slide 91: 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 92: 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 Q2 2024 92
Slide 93: 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 94: 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 95: 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 Q2 2024 95
Slide 96: 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 Q2 2024 96
Slide 97: MB.OS investment within existing financial targets
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 98: 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 99: 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