Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Q1 2024 Earnings Presentation
101 slides from Mercedes-benz's earnings presentation, 2024
Slide 1: Roadshow Presentation Q1 2024
Roadshow Presentation Q1 2024 Mercedes-Benz Group AG
Slide 2: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow 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 Cars: Q1 Product Highlights
Mercedes-Benz Cars: Q1 Product Highlights Electric G-Class AMG GT EQS AMG E-Class Roadshow Presentation Q1 2024 4
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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% Roadshow Presentation Q1 2024 10
Slide 11: 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 Roadshow Presentation Q1 2024 11
Slide 12: 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 13: 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 14: 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 15: 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 Roadshow Presentation Q1 2024 15
Slide 16: 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 17: 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 18: Mercedes-Benz Group: 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 19: 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 20: 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 21: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation Q1 2024 21
Slide 22: 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 23: 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 24: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation Q1 2024 24
Slide 25: Mercedes-Benz – 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 26: We elevate our physical brand experience with unique Mercedes moments
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 27: 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 28: Significant progress with our 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 Roadshow Presentation Q1 2024 28
Slide 29: New tailor-made products to capture growth potential in 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 Roadshow Presentation Q1 2024 29
Slide 30: Our game plan: generate returns consistent with our 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 31: 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 32: 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 Roadshow Presentation Q1 2024 32
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 Roadshow Presentatio
Slide 38: 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 39: Optimizing our footprint and our 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 40: 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. Roadshow Presentation Q1 2024 40
Slide 41: Iconic Luxury Leading Technology
The essence of our brand and our way forward ICONIC LEADING LUXURY TECHNOLOGY Roadshow Presentation Q1 2024 41
Slide 42: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation Q1 2024 42
Slide 43: 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 44: Moving forward with Ambition 2039
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 45: 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 46: Ambition 2039 - Our 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 47: Mercedes-Maybach EQS SUV: The brand's first all-electric model
Mercedes-Maybach EQS SUV: The brand’s first all-electric model Premiere: April 2023 Redefining automotive excellence in the age of electro mobility Maximum luxury and comfort with a cocooning effect in the rear Extraordinary driving experience with Maybach driving programme and maximum noise comfort
Slide 48: Electric G-Class
Electric G-Class Off-road capability enters the electric age and opens up unimagined possibilities Accelerates from 0 to 100 km/h in 4.7 seconds. The top speed is electronically limited to 180 km/h. Innovative individual-wheel drive concept with a total output of 432 kW and 1,164 Nm The 116 kWh high
Slide 49: Extensive update: EQS with an upright star and more range
Extensive update: EQS now with an upright star and even more range More status-conscious with new radiator trim with chrome applications and upright star With a range of 683-822 kilometres (WLTP), the EQS 450+ even exceeds the 800-kilometre mark. More seating comfort for the EQS: Rear Comfort Packag
Slide 50: Going all-electric with our upcoming architectures
We are taking the necessary steps to go all-electric with our upcoming architectures MMA MB.EA AMG.EA VAN.EA Roadshow Presentation Q1 2024 50
Slide 51: 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 52: 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 53: 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 Roadshow Presentation Q1 2024 53
Slide 54: Developing the next generation battery cell technology
Developing the next generation battery cell technology High-Silicon Anode: increasing energy density Expected energy density by using silicon-carbon composite in the anode Solid-State: Pushing energy density compared to state-of the art Li-Ion cells. Reducing weight in same packaging space, Solid-St
Slide 55: In-house electric drive units are a key part of our strategy
In-house electric drive units are a key part of our strategy Ultra-high performance axial flux motors for our forthcoming AMGs. Axial flux technology allows for unmatched power density, performance, acceleration. Electric motor and power electronics company YASA Ltd. is a fully owned subsidiary of M
Slide 56: 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 57: 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 58: 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 59: Fixed cost reduction targets stepped up
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 costs by 2025* After 2025 further net reductions 2019 2025 2030 * Compared to 2019 Roadshow Presentation Q1 2024 5
Slide 60: 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 61: Net carbon-neutral 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 Roadsh
Slide 62: 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 63: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation Q1 2024 63
Slide 64: 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 North Aim to extend speed to ~90 km/h Joint development of future America and China, in Germany by end of 2024, automated dri
Slide 65: DRIVE PILOT gives back time to customers
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 66: 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 67: 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 68: 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 Roadshow Presentation Q1 2024 68
Slide 69: 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 Roadshow Presentation Q1 2024 69
Slide 70: 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 Roadshow Presentation Q1 2024 70
Slide 71: 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 Roadshow Presentation Q1 2024 71
Slide 72: 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 Roadshow Presentation Q1 2024 72
Slide 73: 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 74: Advancing 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 75: Accelerating next-gen Level 2+ and Level 3 automated driving
Accelerating next-gen Level 2+ and 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 Roadshow Presentation Q1 2024 75
Slide 76: Bundling functionalities into one 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 77: A strong digital customer base as a springboard for growth
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 Roadshow Presentation Q1 2024 77
Slide 78: 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) Roadshow Presentation Q1
Slide 79: 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 80: 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 Roadshow Presentation Q1 2024 80
Slide 81: 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 Roadshow Presentation Q1 2024 81
Slide 82: MB.OS investment part of existing financial target landscape
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 83: 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 84: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation Q1 2024 84
Slide 85: Mercedes-Benz Vans Strategy
Mercedes-Benz Vans Strategy WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES TARGET EMBRACE LEAD LOWER premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industrial growth revenues experience footprint Guided by economi
Slide 86: The Van business is commercially attractive
The Van business is commercially attractive M AR K E T S P L AY E R S Strong and growing Stable and concentrated Development LCV-market Top-3 players in Europe +25% expected in core markets, dominate approx. 70% from 2022 through to 2030* of the market C US T O M E R S P R O DUC T S Knowledgeable an
Slide 87: Our products keep the world running
Our products keep the world running Private Usage Services & Crafts Rental CEP & Logistics Construction Recreational Vehicles Private 20% Commercial 80% Trade & eGrocery Manufacturing Deployment & People Mover Municipal Ordered according to sales volume of Mercedes Benz Vans in Europe (GER, FR, IT,
Slide 88: Mercedes-Benz Vans enjoys a unique position
Mercedes-Benz Vans enjoys a unique position Exceptional top-end Lead the industry product identity to all-electric future Best mix, strongest pricing, Grow top-end positioning highest residuals even further Favourable channel mix Expand profitable growth in U.S. and China Balanced market coverage Ad
Slide 89: Ambition 2039 — Our commitment to net carbon-neutrality
Ambition 2039 — Our commitment to net carbon-neutrality Along the entire value chain in the new vehicle fleet in 2039 S UPPLY C H AIN PR O D UC TION & LO G IS TIC S WE LL- TO - TANK TANK- TO - WH EE L E ND - O F -LIFE SBTi SBTi SBTi Today’s proportional CO2 impact along the value chain 2022 2026 203
Slide 90: Mercedes-Benz Vans sets the course for a fully electric future
Mercedes-Benz Vans sets the course for a fully electric future VAN.EA 2030 2026 Roadshow Presentation Q1 2024 90
Slide 91: Electrification roadmap
Electrification roadmap 2010 2023 2026 2030 Introduction Electrification of every Van Launch of all-new, > 50% share of battery of first electric Vito segment & presentation of purpose battery electric electric vehicles* new eSprinter architecture VAN.EA * Wherever market conditions allow, target Ro
Slide 92: Raising our ambitions level: tackling costs at all levels
Raising our ambitions level: tackling costs at all levels C O M P AN Y O P E R AT IO N S P R O DUC T S FIXED COSTS HOURS PER VEHICLE (HPV) PORTFOLIO VARIANTS -20%* -25%* -30%* * By mid-decade vs. 2019 Roadshow Presentation Q1 2024 92
Slide 93: Our financial ambitions for Mercedes-Benz Vans
Our financial ambitions for Mercedes-Benz Vans Guidance 15.1 14 11.2 12 8.3 ROS adjusted 6.0 1.9 2019 2020 2021 2022 2023 2024 mid-decade end of decade CCR adjusted 1.0 0.6 - 0.8 slightly lower level of 2023 Roadshow Presentation Q1 2024 93
Slide 94: Agenda
AGENDA I. Results Q1 2024 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation Q1 2024 94
Slide 95: Mercedes-Benz Mobility Strategy
Mercedes-Benz Mobility Strategy Roadshow Presentation Q1 2024 95
Slide 96: Mercedes-Benz Mobility Role & Contribution
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 and offer services
Slide 97: Mercedes-Benz Mobility Product Range
Mercedes-Benz Mobility Product Range As integral part of the Mercedes-Benz customer journey Financing | Leasing | Insurance | Fleet Management | Rental & Subscription | Charging Ecosystem | Payment Services Roadshow Presentation Q1 2024 97
Slide 98: Appendix
Appendix Roadshow Presentation Q1 2024 98
Slide 99: BBAC (Beijing Benz Automotive Cooperation) Joint Venture
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 Large-mid Segment (E-
Slide 100: Mercedes-Benz 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 101: 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