Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Debt Investor Presentation (2023)
78 slides from Mercedes-benz's debt investor presentation, 2023
Slide 1: Fixed Income Presentation FY 2022
Internal Fixed Income Presentation FY 2022 Mercedes-Benz Group AG
Slide 2: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2022 II. DIVISIONAL REVIEW FY 2022 III. OUTLOOK FY 2023 IV. FUNDING V. SUSTAINABILITY VI. LUXURY STRATEGY
Slide 3: Mercedes-Benz Group: Key figures
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 +12% +28% +20% +27% 150.0 20.5 20.7 26.6 17.2 +3% 16.0 21.0 7.9 8.1 133.9 2021 2022 2021 2022 2021 2022
Slide 4: Mercedes-Benz Group: Group EBIT
Internal Mercedes-Benz Group: Group EBIT In million euros 3,556 698 264 20,655 20,458 -1,021 -197 1,130 17,158 16,028 • Legal proceedings + 334 • Legal proceedings - 119 • Restructuring + 549 t/o • M&A transactions + 631 • M&A transactions + 247 • At-equity Daimler Truck +227 • Russia - 709 EBIT EBI
Slide 5: Reconciliation from CFBIT to Free Cash Flow
Internal Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow* In million euros 1,731 10,718 1,166 9,294 320 8,128 -4,137 -255 -249 • Legal proceedings + 878 • Restructuring + 374 • M&A transactions - 86 Free cash flow Free cash flow Mercedes-Benz Mercedes-Benz Income taxes Effects from
Slide 6: Net Industrial Liquidity
Internal Mercedes-Benz Group: Net Industrial Liquidity* In billion euros 6.4 11.4 0.3 -3.2 -6.8 2.9 26.6 21.0 -5.3 Free cash flow industrial business FY 2022: € 8.1 billion Additions to Net Industrial Depreciation and Investments in Net Industrial Earnings and other Working capital property, plant,
Slide 7: Gross Liquidity
Internal Mercedes-Benz Group: Gross Liquidity inbillions in billionsof EURof EUR MBM Industrial Business 4.7 0.1 -9.2 7.6 -15.4 8.1 30.7 -5.6 6.1 4.3 -0.7 24.7 4.6 24.6 20.2 Gross Liquidity Dividend FCF FCF Other ABS New Bond New FX & Gross Liquidity 31.12.2021 Payment IB MBM Debt Maturities ABS Mat
Slide 8: Financial flexibility over a 12-month period
Internal Mercedes-Benz Group: Financial flexibility over a 12-month period Q4 2022 in billions of EUR 54,8 ABS potential Other incl. 42,4 Fin. Lease Net industrial liquidity increased to €26.6 billion Commercial Daimler Truck paper stake Gross industrial liquidity at €20.2 billion Credit facility Ba
Slide 9: Mercedes-Benz Group: Dividend
Internal Mercedes-Benz Group: Dividend Net profit Earnings per share Dividend in billion euros in euros proposed in euros +4% +5% 14.8 14.2* 13.55 12.89* +4% 5.0 5.2 € 0.7 DT&B 4.3 2021 2022 2021 2022 2021 2022 * 2021 figures excl. deconsolidation result Fixed Income Presentation FY 2022 9
Slide 10: Mercedes-Benz Group: Share buyback
Internal Mercedes-Benz Group: Share buyback Strategic course set Excess cash generation after addressing strategic priorities Honouring dividend policy Optimizing capital structure post spin-off Buybacks funded by MBG’s prevailing strong free cash flows and compatible with our strategic investment p
Slide 11: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2022 II. DIVISIONAL REVIEW FY 2022 III. OUTLOOK FY 2023 IV. FUNDING V. SUSTAINABILITY VI. LUXURY STRATEGY
Slide 12: Mercedes-Benz Cars: Key messages
Internal Mercedes-Benz Cars: Key messages Performance: Resilience in challenging environment, vigilance towards macroeconomics & geopolitics Profitability: Improvement of revenue quality, cost efficiency & pricing power compensating inflation Products: world premiere of GLC, EQS SUV & EQE SUV Techno
Slide 13: Cars: Top-End and electric vehicle unit sales
Internal Mercedes-Benz Cars: Top-End and electric vehicle unit sales In thousand units +5% 2,041 1,944 +23% +8% 328 Top-End 305 333 328* 305* 39 G 23 272 41 Maybach 17 149 BEV 1,117 90 Core 1,029 138 AMG 135 S EQS 182 184 PHEV 177 Entry ** 610 596 153 GLS EQS SUV 2021 2022 2021 2022 2021 2022 Total
Slide 14: Cars and Private Vans: CO2 compliance 2022 in Europe
Internal Mercedes-Benz Group: Cars and Private Vans Internal data confirms CO2 compliance 2022 in Europe* Regulatory Target ~127g 115g 115g Actuals 2021** Prognosis 2022*** * Average CO2 emissions of the total fleet of newly registered Mercedes-Benz cars in Europe (European Union, Norway and Iceland
Slide 15: Mercedes-Benz Cars: Financials
Internal Mercedes-Benz Cars: Financials Sales Revenue EBIT adj. CFBIT adj. in million units in billion euros in billion euros in billion euros +5% +15% +28% 2.04 1.94 111.6 16.2 96.7 +7% 12.7 11.4 10.7 2021 2022 2021 2022 2021 2022 2021 2022 * ASP in thousand euros excl. Smart, BBAC sales and pbp re
Slide 16: Cars: FY EBIT & RoS
Internal Mercedes-Benz Cars: FY EBIT & RoS In million euros Gross Profit +3,938 8,318 368 216 16,245 95 16,340 -4,748 -274 -54 -271 12,487 202 12,689 Strongly improved net pricing Favourable product mix RoS: RoS: RoS: RoS: Slightly increased unit sales 14.6% 14.6% 12.9% 13.1% Discounting of non-curr
Slide 17: Cars: Indicators of Change
Internal Mercedes-Benz Cars: Indicators of Change Average Sales Price* Active Workforce Fixed Costs R&D Investment in pp&e in thousand euros in thousand FTE** in billion euros in billion euros in billion euros +43% +7% -5% 139.2 -13% 8.0 +9% 7.5 -42% 72.9 5.6 67.1 132.4 51.0 3.3 2019 2021 2022 2019
Slide 18: Cars: EBIT to CFBIT
Internal Mercedes-Benz Cars: EBIT to CFBIT In million euros 16,340 208 5,943 -2,936 11,413 695 10,718 -2,122 16,340 -6,715 CCR: CCR: t/o 0.7 0.7 • BBAC Dividend + 1,431 t/o • Result at-Equity BBAC - 1,711 • Legal proceedings + 549 • New vehicle stock - 3,758 • Retail outlet sale - 478 • Restructurin
Slide 19: Mercedes-Benz Vans: Key messages
Internal Mercedes-Benz Vans: Key messages Performance: Global sales significantly increased despite geopolitical challenges & supply constraints Profitability: Solid margin reflects healthy mix & pricing Products: Sales start of new T-Class & world premiere of all-electric EQT Transformation: Reorga
Slide 20: Vans: Electric vehicle unit sales
Internal Mercedes-Benz Vans: Electric vehicle unit sales In thousand units +8% 415 +9% 15 386 14 thereof thereof 2021 2022 2021 2022 Total MB Vans Battery electric vehicles Share in % of volume 4% 4% Fixed Income Presentation FY 2022 20
Slide 21: Mercedes-Benz Vans: Financials
Internal Mercedes-Benz Vans: Financials Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in billion euros in billion euros +8% 415.3 +17% 386.2 17.2 +29% +57% 14.7 2.0 1.9 1.6 1.2 2021 2022 2021 2022 2021 2022 2021 2022 Fixed Income Presentation FY 2022 21
Slide 22: Vans: FY EBIT & RoS
Internal Mercedes-Benz Vans: FY EBIT & RoS In million euros Gross Profit +618 1,565 33 153 1,927 1,897 23 -980 -30 -77 -20 86 1,229 1,143 Strongly improved net pricing RoS: RoS: Significantly increased unit sales 11.2% 11.0% RoS: RoS: Favourable product mix 7.8% 8.3% • Russia - 51 Higher raw materia
Slide 23: Vans: EBIT to CFBIT
Internal Mercedes-Benz Vans: EBIT to CFBIT In million euros 309 2,040 1,897 452 54 1,731 -167 -141 -364 CCR: CCR: 1.1 0.9 • Legal proceedings + 335 t/o t/o • Restructuring + 17 • New vehicle stock - 170 • FBAC - 122 • M&A transactions - 43 Net investments Depreciation and CFBIT EBIT Change in workin
Slide 24: Mercedes-Benz Mobility: Key messages
Internal Mercedes-Benz Mobility: Key messages Performance: High portfolio quality results in low credit losses despite challenging environment Profitability: Solid margins despite headwinds from higher interest rates and increase in cost of credit risk Fleet Management: Improved business performance
Slide 25: Mercedes-Benz Mobility: Financials
Internal Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in billion euros -9% -1% 63.6 133.7 132.4 58.0 -30% 3.4 2.4 2021 2022 2021 2022 2021 2022 Fixed Income Presentation FY 2022 25
Slide 26: Mobility: FY EBIT & RoE
Internal Mercedes-Benz Mobility: FY EBIT & RoE In million euros 165 3,493 3,449 -44 -448 138 2,428 0 2,428 -832 -36 -8 RoE: RoE: 22.3% 22.0% Favourable FX development Improved business performance at fleet management RoE: RoE: Lower volume due to Daimler Truck spin-off and lower penetration 16.8% 16
Slide 27: Mobility: Net credit losses
Internal Mercedes-Benz Mobility: Net credit losses* 0.89% 0.83% 0.68% 0.61% 0.50% 0.51% 0.43% 0.36% 0.37% 0.34% 0.33% 0.31% 0.31% 0.26% 0.26% 0.24% 0.21% 0.21% 0.2% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 * As percentage of portfolio, subject to
Slide 28: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2022 II. DIVISIONAL REVIEW FY 2022 III. OUTLOOK FY 2023 IV. FUNDING V. SUSTAINABILITY VI. LUXURY STRATEGY
Slide 29: Divisional Guidance 2023
Internal Mercedes-Benz Divisional Guidance 2023 ASSUMPTION The global economic conditions continue to be characterized by an exceptional degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business development of the Mercedes-Benz
Slide 30: Group Guidance 2023
Internal Mercedes-Benz Group Guidance 2023 ASSUMPTION The global economic conditions continue to be characterized by an exceptional degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business development of the Mercedes-Benz Grou
Slide 31: Strategic priorities for this year
Internal Strategic priorities for this year Safeguard our Further upgrade Maintain Continue Future-proof operating customer cost scaling BEVs supply chains optimum experience discipline Fixed Income Presentation FY 2022 31
Slide 32: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2022 II. DIVISIONAL REVIEW FY 2022 III. OUTLOOK FY 2023 IV. FUNDING V. SUSTAINABILITY VI. LUXURY STRATEGY
Slide 33: Our funding strategy is built on strict principles
Internal Our funding strategy is built on strict principles No dependence from single markets, instruments, banks or investors Targeting Diversification of funding sources and instruments: Financial Bank Loans, Bonds, ABS, Commercial Paper Independence No Covenants and asset pledges, no Credit Suppo
Slide 34: Portfolio at Mercedes-Benz Mobility remained stable compared to 2021
Internal Portfolio at Mercedes-Benz Mobility remained stable compared to 2021 Wholesale 163 154 151 140 Loan 133 134 132 Lease 117 Truck spin-off (Phase 1) 99 Truck Portfolio 84 spin-off (in bn €) 80 (Phase 2) 72 74 Truck & Bus share after 71 68 spin-off (Phase 1 and 62 64 58 Phase 2) ~6% 58 Acquisi
Slide 35: Mobility business benefits from stringent credit management and solid refinancing
Internal Mercedes-Benz Mobility business benefits from stringent credit management and solid refinancing Net credit losses as a percentage of portfolio, subject to credit risk 0.89 Net credit losses on very low level benefiting from 0.83 strong used car markets, i.e. collateral values. Yet 0.68 0.61
Slide 36: Well balanced Bond Maturity Profile
Internal Well balanced Bond Maturity Profile in billions of EUR as of 31st December 2022 Issued in 2022 12.1 Maturities 0.2 11.4 1.4 7.0 1.3 11.9 4.8 4.8 10.0 0.1 1.2 3.6 3.1 5.7 2.4 4.7 2.1 3.5 1.3 1.0 0.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2037 Fixed Income Presentation FY 2022
Slide 37: Financing liabilities show a diversified funding mix
Internal Financing liabilities show a diversified funding mix in billions of EUR Lease Liabilities Acc. Deposits Other (ex Lease Liab.) Bank Loans Com. Paper Bonds 161.8 ABS 3% 145.0 1% 145.8 3% 1% 9% 2% 1% 2% 9% 8% 11% 0% 125.8 2% 8% 1% 10% 0% 111.8 2% 15% 25% 1% 11% 15% 2% 27% 22% 9% 19% 22% 53% 5
Slide 38: Balanced mix of funding instruments for sustainable portfolio growth
Internal 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% 2% Globally expand
Slide 39: Diversified global funding base matched with MBM requirements
Internal 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 Domestic Bond Prog. ABS EMTN ABS Domestic Bon
Slide 40: Group's financial KPIs set to support a strong rating
Internal Mercedes-Benz Group’s financial KPIs set to support a strong rating Agency Long-term Outlook Short-term Standard & Poor's: A- positive A-2 Moody’s: A2 stable P-1 Current Ratings: Fitch: A- positive F1 DBRS: A (low) stable R-1 (low) Scope: A positive S-1 Fixed Income Presentation FY 2022 40
Slide 41: Contributions stabilized funded ratio in low interest rate environment
Internal Contributions stabilized funded ratio in low interest rate environment Daimler Group Mercedes-Benz Group 14 (excl. Truck) 11.5 12 9.8 10 8.6 8.1 8 7.4 7.8 5.9 Significant contri- 6 3.1 4.5 3.7 4.3 4.3 butions since 2012 4 2.4 2 1.1 0.5 1.9 0.5 0.5 0.6 0.5 1.5 support the solid 0 -0.1 capita
Slide 42: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2022 II. DIVISIONAL REVIEW FY 2022 III. OUTLOOK FY 2023 IV. FUNDING V. SUSTAINABILITY VI. LUXURY STRATEGY
Slide 43: Holistic sustainable business strategy
Internal We follow a holistic sustainable business strategy: Ecological, social, economical Climate & Air Protection Human Resource Rights Conservation Integrity People Data Sustainable Responsibility Urban Mobility Partnerships Traffic Safety Fixed Income Presentation FY 2022 43
Slide 44: CO2-neutral across the value chain
Internal Supply chain Production & Logistics Well-to-tank Tank-to-wheel End-of-life SBTi SBTi SBTi CO2-neutral CO2-neutral CO2-neutral CO2-neutral CO2-neutral supply chain production & logistics energy generation vehicle operation recycling Fixed Income Presentation FY 2022 44
Slide 45: Halve lifecycle CO2 emissions per vehicle this decade
Internal We will at least halve lifecycle CO2 emissions per vehicle in this decade 100% More than half per decade End-of-life Use phase Use phase Production & Production & logistics logistics Supply chain & Supply chain raw materials 2020 2030 Fixed Income Presentation FY 2022 45
Slide 46: Electric product rollout running at full speed
Internal Our electric product rollout is running at full speed with nine electric models on the road and more to come Since 2022 we offer an all-electric alternative in 2019 every segment we serve EQC By 2025, our customers will be able to choose an all-electric alternative for every model we make 2
Slide 47: Three EV-only architectures to be launched in 2025
Internal Three Mercedes-Benz EV-only architectures to be launched in 2025 Ready to go all-electric by the end of the decade* medium- and large-size cars dedicated performance for electric vans modular system as electric electric-vehicle architecture and light commercial backbone for our EV portfolio
Slide 48: Expanding battery cell and system activities with partners
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 Local for local strategy for battery cell production - several battery partnerships with multiple prov
Slide 49: By joining ACC, we build a European battery champion
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. ACC will
Slide 50: Pledge to make vehicle production CO2 neutral
Internal Mercedes-Benz has pledged to make vehicle production CO2 neutral this year1 Together with our EV strategy, Mercedes-Benz global production network CO2 neutral production1 is a key driver of Ambition 2039 All Mercedes-Benz own plants worldwide are producing 100% CO2 neutrally1 in 2022 We pla
Slide 51: Factory 56 is a zero-carbon factory
Internal Our Factory 56 is a zero-carbon factory and serves as a blueprint for our global Mercedes-Benz production network At our Factory 56 in Sindelfingen “producing sustainability” is already reality The innovative energy concept includes a photovoltaic system, a DC power grid and energy storage
Slide 52: CO2-neutral production and own clean energy generation
Internal Having achieved CO2-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 Solar cells with an output corresponding to more than 1,000 photovoltaic systems on si
Slide 53: Water usage reduction and sustainable heat supply
Internal Water usage reduction and a sustainable heat supply are cornerstones in reducing our ecological footprint Our use of water will be cut by 35% by 2030 thanks to multi-reuse of water in production We boost the sustainability of our plants’ heat supply, especially focusing on our paint shops W
Slide 54: Sustainable supply chains for focus materials
Internal We create sustainable supply chains for focus materials via technology changes ~90% Steel – CO2 reduction: optimised of our annual purchasing volume is supplied by companies that follow our conventional ambition to become CO2 neutral Base green electricity Aluminium sheet/cast H2GS Thermopl
Slide 55: Establishing a green and CO2 neutral supply chain
Internal We are establishing a green and CO2 neutral supply chain* In the future, raw materials for battery Raw materials components only from IRMA-certified mines Processed materials & components Intention to partner with lithium producer Albemarle for Recycling future lithium supply, lithium recyc
Slide 56: Circular economy: battery recycling factory in Kuppenheim
Internal Circular economy: Closing the loop with our battery recycling factory in Kuppenheim Own CO2-neutral recycling plant in Kuppenheim, southern Germany, is scheduled to ram up in 2023 Hydrometallurgy: Innovative technology increases recovery rate >96% to more than 96% Cooperation with high-tech
Slide 57: The transformation of our workforce
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 New technologies require a new area of expertise - Job profiles of the future: The d
Slide 58: Turn2Learn: unlimited possibilities for lifelong learning
Internal Turn2Learn: unlimited possibilities for livelong learning >1,300,000,000 € for qualification from 2022 until 2030 ~1,300,000 hours of professional and personal training in 2021 Existing Learning ø 1,000 € per employee/ year Opportunities Customized Learning in Germany Paths eLearning Platfo
Slide 59: Clear objectives, comprehensive disclosure, international frameworks
Internal Clear objectives, comprehensive disclosure and guided by international frameworks We embedded the Sustainable We use comprehensive reporting Our strategy is guided by Development Goals in our strategy frameworks to provide transparent international frameworks, our concentrating on the areas
Slide 60: Green finance framework part of sustainable business strategy
Internal Mercedes-Benz Group’s green finance framework is part of our sustainable business strategy Project Use of Management External evaluation and Reporting* proceeds of proceeds review selection Mercedes-Benz Group’s green finance framework is developed to be in line with both the ICMA Green Bon
Slide 61: Second Opinion on green bonds
Internal Second Opinion by leading provider of independent reviews of green bonds SHADES OF GREEN Mercedes-Benz Group’s green finance framework was rated by CICERO as Dark Green. Dark Green is allocated to projects and solutions that correspond to the long- term vision of a low carbon and climate re
Slide 62: Mercedes-Benz Group's ESG Ratings
Internal Mercedes-Benz Group’s ESG Ratings Upgraded from Strong position in the Ranked with the highest rating BBB to A sub-industry peer group in the auto sector ranked 8 out of 79 Prime Status (C+) Fixed Income Presentation FY 2022 62
Slide 63: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2022 II. DIVISIONAL REVIEW FY 2022 III. OUTLOOK FY 2023 IV. FUNDING V. SUSTAINABILITY VI. LUXURY STRATEGY
Slide 64: The original and most valuable luxury car brand
Internal 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 37% female 54% under 35 823 m fans Source: Interbrand Best Global Brands 2021 Fixed Income Presentation FY 2022 64
Slide 65: There's no luxury without sustainability
Internal Zeitgeist relevance: There’s no luxury without sustainability Our sustainability goals: 2022 2025 2030 2039 CO2-neutral Up to ready to go all electric Carbon Production* 50% xEVs where market neutrality* conditions allow * Partly including offsets Fixed Income Presentation FY 2022 65
Slide 66: Understanding our customers
Internal Understanding our customers 50% ~180% 60% more adults with wealth expected contribution from GenY & GenZ of car buyers under the above 1 million USD to total growth in personal luxury goods age of 45 are likely to purchase (2020-2025) market from 2019 to 2025 their next car online Source: C
Slide 67: Approaching our customers
Internal Approaching our customers 20 80% 25% Fixed Income Presentation FY 2022 67
Slide 68: Exclusivity: progress with top-end vehicles
Internal Exclusivity: Significant progress with our top-end vehicles and increasingly electric with even more conquest potential +27% ~60% Expected growth of top-end vehicle share Top-end vehicle unit sales in 2022 vs. 2019 of total Mercedes-Benz sales 2019-2026 Fixed Income Presentation FY 2022 68
Slide 69: Desire for TECH: Digital innovations for China
Internal Desire for… TECH Digital innovations for China In-house developed Fixed Income Presentation FY 2022 69
Slide 70: Our game plan: returns consistent with luxury status
Internal Our game plan: generate returns consistent with our luxury status - Focus on pricing power - Drive ASP higher - Optimise product portfolio - Find a superior operating equilibrium - Tap full potential of top-end segment - Structurally higher profitability and improved - Exit lower margin pro
Slide 71: The power of pricing is part of our strategy
Internal 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 gri
Slide 72: Reshaped model portfolio will drive profitable sales growth
Internal Reshaped model portfolio will drive profitable sales growth Change of Mercedes-Benz 2021-2026 segment share in 2.3 m cars 1.9 m cars Car Sales CAGR approx. 5% p.a. 2026 vs. 2019 Around Top-End Luxury +60% Core Luxury 0% Entry Luxury -25% 2019 2021 2026 Fixed Income Presentation FY 2022 72
Slide 73: Entry Luxury – Focus & Elevate
Internal Entry Luxury – Focus & Elevate - Elevate to Entry Luxury 680k 570k - Product range refocused on fewer and more upscale portfolio positions: 4 bodystyles instead of 7 -25% - The new entrance point of the portfolio is being redefined with the next around +20% significantly up generation of ve
Slide 74: Core Luxury – Grow & Refine
Internal Core Luxury – Grow & Refine - Core Luxury going electric on an accelerated timescale, leveraging EVA 1.350k 1.030k (EQE, EQE-SUV) and then MB.EA architectures flat - Very attractive C-Class in the market GLC launched end of 2022 Brand new E-Class in 2023 around +25% regular price adjustment
Slide 75: Top-End Luxury – Expand & Enhance
Internal Top-End Luxury – Expand & Enhance - Starting point: Over 300k top-end luxury units with ASP of > € 100k and 250k 305k top-end profitability - Sustainable segment growth +60% - Desirable products fueling growth: EQS, EQS-SUV, EQS-SUV Maybach, SL, GT, AMG.EA around +15% regular price adjustme
Slide 76: Changing our economic equation
Internal 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
Slide 77: Financial ambitions for Mercedes-Benz Cars in 2025
Internal Our financial ambitions for Mercedes-Benz Cars in 2025: structurally higher profitability and lower margin volatility Market level, competitive actions, commodity and raw material markets > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 approx.
Slide 78: Disclaimer
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 identify forwa
Mercedes-Benz Group — Debt Investor Presentation (2023) on 6ix