Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Q4 2021 Earnings Presentation
68 slides from Mercedes-benz's earnings presentation, Feb 24, 2022
Slide 1: Roadshow Presentation FY 2021 Mercedes-Benz Group AG
Roadshow Presentation FY 2021 Mercedes-Benz Group AG
Slide 2: Agenda
Daimler Internal AGENDA I. RESULTS FY 2021 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation FY 2021 2
Slide 3: Mercedes-Benz Group: Achievements 2021
Daimler Internal Mercedes-Benz Group: Achievements 2021 Increased financial robustness managing through the pandemic & semiconductor shortages Accelerated strategy implementation, especially electric vehicles & automated driving Established new company structure successfully Roadshow Presentation FY
Slide 4: Q4/FY reporting changes due to Spin-off Daimler Trucks & Buses
Daimler Internal Q4/FY reporting changes due to Spin-off Daimler Trucks & Buses Group P&L (Financial Statements) 1 Segment P&L Q4/FY Until Q3 2021 Continued Operations (CO) Mercedes- Daimler Daimler Benz Trucks & Reconciliation Mainly: Mercedes-Benz Cars & Vans, Cars & Vans Mobility Buses Mercedes-B
Slide 5: Mercedes-Benz Group: Key figures
Daimler Internal Mercedes-Benz Group: Key figures* Revenue EBIT EBIT adj.** Free Cash Flow (IB) Net Industrial Liquidity in billion euros in billion euros in billion euros in billion euros in billion euros +9% +340% +123% +18% 168.0 29.1 19.2 21.0 154.3 2.1 17.9 34.1 32.5 13.0 +4% 8.3 8.6 8.6 17.2 0
Slide 6: Mercedes-Benz Cars & Vans: Key messages
Daimler Internal Mercedes-Benz Cars & Vans: Key messages Strong market demand for top end vehicles: record sales for Maybach, AMG and G-Class Acceleration of EVs: 4 new BEVs introduced, strong EQS demand; Van EV deliveries doubled Automated driving: next milestone with industry-first Level 3 approva
Slide 7: Mercedes-Benz Cars: Top-end and electric vehicle unit sales
Daimler Internal Mercedes-Benz Cars: Top-end and electric vehicle unit sales In thousand units -7% 2,087 +30% 1,944 305* 41 G +64% 17 Maybach 272 236* 34 10 135 AMG 166 182 PHEV 121 S 119 thereof 153 EQS 101 GLS 90 BEV 47 2020 2021 2020 2021 2020 2021 Total MBC Top-end vehicles Electric vehicles * w
Slide 8: Mercedes-Benz Vans: Electric vehicle unit sales
Daimler Internal Mercedes-Benz Vans: Electric vehicle unit sales In thousand units +3% 386 +119% 14 375 thereof 6 thereof 2020 2021 2020 2021 Total MB Vans Battery electric vehicles Share in % of volume 2% 4% Roadshow Presentation FY 2021 8
Slide 9: Cars & Vans: Internal data confirms CO2 compliance 2021 in Europe
Daimler Internal Mercedes-Benz Cars & Vans: Internal data confirms CO2 compliance 2021 in Europe Target ~125g* 115g NEDC WLTP WLTP Preliminary actuals 2020 2021 excluding regulatory factors** Prognosis * Estimated target level Mercedes-Benz Group 2021ff new car fleet’s average CO2 emissions in Europ
Slide 10: Mercedes-Benz Cars & Vans: Financials
Daimler Internal Mercedes-Benz Cars & Vans: Financials Sales Revenue EBIT adj. CFBIT adj. in million units in billion euros in billion euros in billion euros -5% +11% +105% 2.46 2.33 109.6 13.9 +55% 98.6 12.3 7.9 6.8 2020 2021 2020 2021 2020 2021 2020 2021 Roadshow Presentation FY 2021 10
Slide 11: Mercedes-Benz Cars & Vans: FY EBIT & RoS
Daimler Internal Mercedes-Benz Cars & Vans: FY EBIT & RoS In million euros Gross Profit +7,627 9,123 -235 533 13,914 13,626 -1,261 -170 -197 -680 -288 Strongly improved net pricing 6,802 Favourable product mix RoS: 1,630 RoS: Positive development of used cars business 12.7% 5,172 12.4% Income from B
Slide 12: Mercedes-Benz Cars & Vans: Indicators of Change
Daimler Internal Mercedes-Benz Cars & Vans: Indicators of Change Mercedes-Benz Cars Active Workforce Fixed Costs R&D Investment in pp&e Revenue per unit in thousand FTE* in billion euros in billion euros in billion euros in thousand euros +26% -3% -5% 49.8 159.8 -16% 8.1 -35% 5.9 39.4 154.9 7.7 3.8
Slide 13: Mercedes-Benz Cars & Vans: EBIT to CFBIT
Daimler Internal Mercedes-Benz Cars & Vans: EBIT to CFBIT In million euros 13,626 6,176 2,125 12,295 -702 -118 10,170 -2,718 CCR: -6,095 CCR: 0.9 0.7 t/o t/o • BBAC Dividend +1,523 • Legal proceedings +1,658 • New vehicle stock +671 • Result at-Equity BBAC -1,553 • Restructuring +557 • Unfinished pr
Slide 14: Mercedes-Benz Mobility: Key messages
Daimler Internal Mercedes-Benz Mobility: Key messages Spin-off of truck business successfully completed (Phase 1 2021) New business impacted by semiconductor shortage and lower penetration rate Reduced portfolio due to truck spin-off and lower dealer stock Net credit losses on low level due to high
Slide 15: Mercedes-Benz Mobility: Financials
Daimler Internal Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in billion euros -11%* +116% -6% 67.8 150.6 3.4 63.6 133.7 1.6 2020 2021 2020 2021 2020 2021 * t/o - 16.8bn EUR Focus effect Roadshow Presentation FY 2021 15
Slide 16: Mercedes-Benz Mobility: FY EBIT & RoE
Daimler Internal Mercedes-Benz Mobility: FY EBIT* & RoE In million euros Lower credit risk reserve due to timely response to Covid-19 pandemic in 2020 Margin benefiting from lower refinancing costs Improved operative business performance at mobility services and fleet management 1,044 44 3,493 86 3,
Slide 17: Mercedes-Benz Group: FY EBIT
Daimler Internal Mercedes-Benz Group: FY EBIT* In billion euros 9.8 29.1 1.6 19.2 1.9 7.1 16.0 -13.0 2.0 8.6 6.1 0.5 6.6 • Legal proceedings -0.3 • Restructuring -0.7 • M&A transactions +10.9 t/o t/o Deconsolidation result • EBIT of DO +1.4 (DT + MBM) +9.2 EBIT Mercedes- Mercedes- EBIT EBIT 2020 EBI
Slide 18: Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow
Daimler Internal Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow* In billion euros 2.3 10.9 10.2 0.5 8.6 -1.9 -0.2 -0.1 • Legal proceedings +1.7 t/o • Restructuring +0.8 • FCF DO +0.7 • M&A transactions -0.2 Free cash flow Free cash flow Mercedes-Benz Income taxes Effects from Other
Slide 19: Mercedes-Benz Group: Net Industrial Liquidity
Daimler Internal Mercedes-Benz Group: Net Industrial Liquidity* In billion euros 6.8 10.4 0.0 -1.4 -7.2 -1.4 1.8 21.0 17.9 Free cash flow industrial business FY 2021: € 8.6 billion -5.9 Additions to Dividend Net Industrial Depreciation and Investments in Net liquidity Net Industrial Earnings and oth
Slide 20: Mercedes-Benz Group: Dividend
Daimler Internal Mercedes-Benz Group: Dividend* Net profit Earnings per share Dividend (excl. decons. result) (excl. decons. result) proposed in euros in billion euros in euros +254% +280% 14.2 12.89 +270% 5.0 € 0.7 DT&B 4.0 3.39 4.3 1.4 2020 2021 2020 2021 2020 2021 * Including former Daimler Truck
Slide 21: Agenda
Daimler Internal AGENDA I. RESULTS FY 2021 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation FY 2021 21
Slide 22: 2021 Segment and Group KPIs as guidance base for reference
Daimler Internal 2021 Segment and Group KPIs as guidance base for reference The base for the comparative guidance are the respective continued operations KPIs of 2021. Mercedes-Benz Cars 1,944 thousand Unit Sales Mercedes-Benz Vans 386 thousand Mercedes-Benz Cars 13.1 % Return on Sales Mercedes-Benz
Slide 23: Mercedes-Benz Divisional Guidance 2022
Daimler Internal Mercedes-Benz Divisional Guidance 2022 ASSUMPTION The macroeconomic conditions will continue to be comparatively favourable for the global demand for cars in 2022. However, it currently looks as if the semiconductor-related supply bottlenecks will continue to impact the market. Ther
Slide 24: Mercedes-Benz Group Guidance 2022
Daimler Internal Mercedes-Benz Group Guidance 2022 ASSUMPTION The macroeconomic conditions will continue to be comparatively favourable for the global demand for cars in 2022. However, it currently looks as if the semiconductor-related supply bottlenecks will continue to impact the market. Therefore
Slide 25: Agenda
Daimler Internal AGENDA I. RESULTS FY 2021 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation FY 2021 25
Slide 26: Strategic priorities for this year
Daimler Internal Strategic priorities for this year Scale Accelerate Grow Alleviate Focus electric car luxury supply relentlessly vehicles software business constraints on costs Roadshow Presentation FY 2021 26
Slide 27: Three levers to sustainably improve our cash flow
Daimler Internal Three levers to sustainably improve our cash flow “Improve “Establish “Free up cash” cash flow steering” cash flow culture” Reduction of working capital: Creating more Cash flow as part of the from purchase to production transparency and Daimler DNA: from to sales visibility m
Slide 28: Agenda
Daimler Internal AGENDA I. RESULTS FY 2021 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation FY 2021 28
Slide 29: Mercedes-Benz Cars Strategy
Daimler Internal Mercedes-Benz Cars Strategy Our goal: We will build the world’s most desirable cars Driven by a highly qualified and motivated team Sustainability, integrity, and diversity as our foundation Roadshow Presentation FY 2021 29
Slide 30: We will provide the luxury experience across all touchpoints
Daimler Internal We will provide the luxury experience across all touchpoints Roadshow Presentation FY 2021 30
Slide 31: We will focus on profitable growth
Daimler Internal We will focus on profitable growth Roadshow Presentation FY 2021 31
Slide 32: Brand Maturity: Clear growth plan
Daimler Internal Clear growth plan Brand Maturity Time Roadshow Presentation FY 2021 32
Slide 33: Owning the customer relationship and leveraging our car park and customer base
Daimler Internal It‘s about owning the customer relationship and leveraging our car park and customer base Embrace customers Grow recurrent revenues Luxury experience, Significant Personalized Still significant profit OTA greater concentration acceleration relationships growth ahead upgrades Roadsho
Slide 34: Daimler Internal Roadshow Presentation FY 2021
Daimler Internal Roadshow Presentation FY 2021 34
Slide 35: Our electric product rollout is running at full speed
Daimler Internal Our electric product rollout is running at full speed EQS order intake is strong even though sales only started in August In the first three quarters of the year, sales of hybrid and electric vehicles surged to a record 184,369 units (+143%) EQA EQB 2021 61,652 plug-in hybrids and a
Slide 36: Electrifying our brands: leveraging their full potential
Daimler Internal Electrifying our brands: leveraging their full potential Launch of a sophisticated luxury electric Mercedes-Maybach SUV in 2023 Launch of the fully electric G-Class in 2024 AMG will go electric: Three BEV models in 2022 alone and redefining high performance with a completely new ele
Slide 37: At the end of the decade, our focus will be on BEV only
Daimler Internal At the end of the decade, our focus will be on BEV only By 2025, our customers will be able to choose an all-electric alternative for every model we make It’s our ambition to drive the plug-in hybrid & BEV share up to 50% in 2025. By the end of the decade, we will be ready to go all
Slide 38: We will launch three EV-only architectures in 2025
Daimler Internal We will launch three EV-only architectures in 2025 MB.EA Following the launch of MMA, the compact “electric first” architecture in 2024, all new Mercedes-Benz vehicle architectures will be electric only MB.EA: will cover all medium and large size cars. Scalable modular system as ele
Slide 39: Expanding activities in battery cells and systems with partners
Daimler Internal Together with our partners, we will expand our activities in battery cells and systems Needed battery volume for all car lines Our targets: 200 Gwh Capacity of more than 200 Gigawatt hours 8 new cell factories around the world: one in the U.S., four in Europe with our partners 2
Slide 40: By joining ACC, we build a European battery champion
Daimler Internal By joining ACC, we build a European battery champion We take a one third stake in Automotive Cells Company (ACC). Our goal: Joint development and production of cells and modules in Europe. ACC will reach a capacity of at least 120 Gigawatt hours in Europe by the end of the decade. A
Slide 41: Our batteries will be highly standardized
Daimler Internal Our batteries will be highly standardized Differentiating factors More than 90% of all future Mercedes-Benz vehicles will be based on a common battery platform Chemistry We are aiming for a modular battery system that consists of uniformly designed components and standard interfaces
Slide 42: Developing the next generation battery cell technology
Daimler Internal Developing the next generation battery cell technology High-Silicon Anode: increasing energy density by using silicon-carbon composite in the anode Expected energy density Solid-State: pushing energy density beyond limits of conventional lithium-ion cell, doubling energy capacity an
Slide 43: In-house electric motors are a key part of our strategy
Daimler Internal In-house electric motors are a key part of our strategy Ultra-high performance axial motors for our forthcoming AMGs. Axial flux technology allows for unmatched power density, performance, acceleration Electric motor and power electronics company YASA Ltd. will be a fully owned subs
Slide 44: We are establishing a green and CO2 neutral supply chain
Daimler Internal We are establishing a green and CO2 neutral supply chain Raw In the future, raw materials for battery materials Processed components only from IRMA-certified mines materials & components Intention to partner with lithium producer Albemarle for Recycling future lithium supply, lithiu
Slide 45: We want to provide a premium charging experience
Daimler Internal We want to provide a premium charging experience Mercedes me Charge currently comprising more than 690,000 AC and DC charging points worldwide. We will expand and enhance our charging network with partners like Ionity and ChargePoint Mercedes-Benz customers will get enhanced access
Slide 46: VISION EQXX – taking electric range and efficiency to a new level
Daimler Internal VISION EQXX – taking electric range and efficiency to an entirely new level Efficiency means achieving more from less. The VISION EQXX is packed with efficiency improvements that push the envelope with a mixture of advanced technology and talented teamwork. The outcome is a research
Slide 47: We are ready to accelerate EV production
Daimler Internal We are ready to accelerate EV production Bremen Kamenz Ready to scale up: our largest plants in Beijing, Bremen, Stuttgart Jawor Kecskemét, Rastatt, Sindelfingen, and Tuscaloosa are all Sindelfingen Kecskemét capable of building EVs and are currently assembling 6 different BEVs Rast
Slide 48: Closing the loop: from value chain to value cycle
Daimler Internal Closing the loop: from value chain to value cycle 2022: Carbon-neutral production at all Mercedes- Benz AG passenger car and battery assembly sites Establishing remanufacturing processes and repurpose of key components, e.g. batteries can be reused to help balance electricity grid P
Slide 49: The transformation of our workforce
Daimler Internal The transformation of our workforce Re-shape Re-skill Re-charge Streamlining Developing Meeting the our organization in a future-oriented Mercedes-Benz responsible way qualifications standard as an employer Continue effective process of cost reduction working Ensure that motivated a
Slide 50: Our transition plan to go BEV-only
Daimler Internal Our transition plan to go BEV-only What we told you 2025 BEV Ready to go all-electric Faster ramp down PHEV transition alternative for every by end of decade of ICE vehicles technology model What we are going to do New BEV architecture New BEV models MB.EA, AMG.EA, New battery cell
Slide 51: Revenue quality rising – driven by mix and pricing
Daimler Internal Revenue quality rising – driven by mix and pricing Key levers Net revenue per unit* Net pricing performance Positive mix from high end electric vehicles Digital services revenue Direct sales model * schematic graph Roadshow Presentation FY 2021 51
Slide 52: BEV cost reduction focus
Daimler Internal BEV cost reduction focus Key levers Variable costs per unit* Material and manufacturing cost reduction of 1% until 2025 Further cost reduction on electric drive train from 2025 to 2030 Decreasing cell costs and common battery platforms Scalable modular electric only architectures *
Slide 53: Radical shift in capital allocation – from EV-first to EV-only
Daimler Internal Radical shift in capital allocation – from EV-first to EV-only Key levers CAPEX and R&D investments* Additional investments for new BEV architecture MB.EA, AMG.EA, VAN.EA and intensified battery footprint Radically reduced non-BEV investments Capex share of investments decreasing 20
Slide 54: Fixed cost reduction targets stepped up
Daimler Internal Fixed cost reduction targets stepped up Key levers Fixed cost development* Covid 2020: significant fixed cost reduction 2021: temporary effects replaced by permanent measures >20% fixed cost reduction until 2025 vs. 2019 2025ff: digitization of all business areas 2019 2025 2030 Afte
Slide 55: Transformation moves with high speed
Daimler Internal Transformation moves with high speed Q3 Results Transfer of compact and mid size Partnership with Luminar to enhance transmissions activities to Magna pioneering work in next-generation automated driving systems MB Strategy Update: ‘electric drive’ Acquisition of British electric Ne
Slide 56: Our financial ambitions for MB AG 2025
Daimler Internal Our financial ambitions for MB AG 2025 On track towards double digit RoS despite supply constraints Market environment/revenues Roadshow Presentation FY 2021 56
Slide 57: BBAC (Beijing Benz Automotive Cooperation) Joint Venture
Daimler Internal BBAC (Beijing Benz Automotive Cooperation) Joint Venture BBAC is based on a trustful partnership with our long-term partner BAIC BBAC is the largest Mercedes-Benz production facility in the world with local R&D for passenger cars. Product ranges from Compact, Midsize, and Larg
Slide 58: Agenda
Daimler Internal AGENDA I. RESULTS FY 2021 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation FY 2021 58
Slide 59: Mercedes-Benz Vans Strategy
Daimler Internal Mercedes-Benz Vans Strategy Our Goal: We exceed customers’ expectations with the most desirable vans and services Lead Target Focus Embrace Lower in electric premium on customers and total drive and digital segments profitable grow recurrent cost base solutions growth revenues Guide
Slide 60: Mercedes-Benz Vans Ambition 2039
Daimler Internal Mercedes-Benz Vans Ambition 2039 The ambition of Mercedes-Benz Vans is to make our fleet of new private and commercial Vans CO₂-neutral over the entire lifecycle1 by 2039. PRODUCTION USE PHASE END OF LIFE Cradle-to-gate Well-to-wheel Recycling Supply chain/ In- & outbound Mercedes-B
Slide 61: Mercedes-Benz Vans SUSTAINEER
Daimler Internal Mercedes-Benz Vans SUSTAINEER Solar Panel Digital Interior Mirror Daylight+ Sustainable Materials Heated Seat Belt Innovative Breaks Optimized Tires Vegan Heated Steering Wheel Front Module Filter Electric (fine particulate air Underbody Filter (fine Sidewalk Drive filter) Speed Mir
Slide 62: Strategy priority: Electrifying MB Vans
Daimler Internal Strategy priority: Electrifying MB Vans Mercedes-Benz Vans is fully committed and dedicated to electrification Holistic Approach: From small over mid-size to large, we electrify every van segment eCitan VAN.EA eVito eSprinter EQV Next Generation Electrified T-Class eSprinter 1st gen
Slide 63: The next-generation eSprinter based on Electric Versatility Platform
Daimler Internal The next-generation eSprinter based on Electric Versatility Platform An intelligent, modular solution with three core elements Front module for high-voltage Rear module with components electrically driven rear axle Choice of • 2 wheel bases • 3 battery capacity levels Large | Medium
Slide 64: Agenda
Daimler Internal AGENDA I. RESULTS FY 2021 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation FY 2021 64
Slide 65: Mobility Strategy
Daimler Internal Daimler Mobility Strategy Roadshow Presentation FY 2021 65
Slide 66: Mercedes-Benz Mobility Role & Contribution
Daimler Internal Mercedes-Benz Mobility Role & Contribution As an integral part of Mercedes-Benz, we secure the company’s position as a global leader by leveraging customer data and insights generated through our numerous touchpoints with our clients. We retain them in the Mercedes-Benz ecosystem an
Slide 67: Mercedes-Benz Mobility Product Range
Daimler Internal Mercedes-Benz Mobility Product Range CREDIT LEASING FLEET SUBSCRIPTION RENT INSURANCE SERVICES CHARGING, PAYMENT, ETC. As integral part of the Mercedes-Benz customer journey Roadshow Presentation FY 2021 67
Slide 68: Disclaimer
Daimler Internal 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 identi