Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — FY2023 Earnings Presentation
49 slides from Mercedes-benz's earnings presentation, Feb 22, 2024
Slide 1: Willkommen | Welcome
Willkommen | Welcome Annual Results Conference 2023 Mercedes-Benz Group AG Stuttgart, February 22, 2024
Slide 2: 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 +2% -1% +39% +19% -4% 150.0 153.2 20.5 13.55 13.46 11.3 31.7 19.7 26.6 8.1 2022 2023 2022 2023 2022 2023 2022 20
Slide 3: Mercedes-Benz Cars: Key messages
Mercedes-Benz Cars: Key messages Solid results demonstrate resilience in challenging environment Scaling BEV: +73% sales growth at Mercedes-Benz Brand. Premiere of E-Class family, GLC Coupé, CLE, AMG GT Coupé and Maybach EQS SUV Concept CLA gives glimpse of MMA platform; L3 introduction in Californi
Slide 4: Mercedes-Benz Cars: Top-End and electric vehicle unit sales
Mercedes-Benz Cars: Top-End and electric vehicle unit sales In thousand units 0% 2,041 2,044 +21% 0% Top-End 328 328 402 328* 328* 39 43 G 333 23 28 Maybach 241 BEV** Core 1,117 1,097 149 138 143 AMG thereof S 177 EQS 184 171 161 PHEV Entry ** 596 619 GLS EQS SUV 2022 2023 2022 2023 2022 2023 Total
Slide 5: Mercedes-Benz Vans: Key messages
Mercedes-Benz Vans: Key messages Executing value growth strategy: large vans dominating sales growth with Sprinter as segment leader in Europe, total market leader in Germany, sales record in U.S. Premiere of new eSprinter and mid-size van portfolio; electrification of each segment completed Strong
Slide 6: Mercedes-Benz Vans: Electric vehicle unit sales
Mercedes-Benz Vans: Electric vehicle unit sales In thousand units +8% 448 +51% 415 23 15 thereof BEV thereof 2022 2023 2022 2023 Total MB Vans Electric vehicles Share in % of volume 4% 5% 6
Slide 7: Cars and private Vans: Internal data confirms CO2 compliance 2023 in Europe
Mercedes-Benz Group: Cars and private Vans Internal data confirms CO2 compliance 2023 in Europe* Regulatory Target ~129g 115g 109g 2022** 2023*** * Average CO2 emissions of the total fleet of newly registered vehicles within the Mercedes-Benz CO2 pool in Europe (European Union, Norway and Iceland) i
Slide 8: Mercedes-Benz Cars: Financials
Mercedes-Benz Cars: Financials Sales Revenue EBIT adj. CFBIT adj. in million units in billion euros in billion euros in billion euros 0% +1% -12% 2.04 2.04 111.6 112.8 16.2 14.3 +10% 12.5 11.4 2022 2023 2022 2023 2022 2023 2022 2023 8
Slide 9: Mercedes-Benz Cars: FY EBIT & RoS
Mercedes-Benz Cars: FY EBIT & RoS In million euros Gross Profit -714 1,876 16,340 16,245 -782 -95 14,252 14,224 -1,808 -199 -78 -498 -504 -28 Improved net pricing Lower raw material prices RoS: RoS: Improved manufacturing costs RoS: RoS: 14.6% 14.6% Higher inflation and supply chain related cost 12.
Slide 10: Mercedes-Benz Cars: Indicators of Change
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 +21% +46% -7% -41% 139.2 -16% 9.1 5.6 +2% 129.9 72.9 74.2 7.5 51.0 3.3 2019 2022 2023 2019 2023 201
Slide 11: Mercedes-Benz Cars: EBIT to CFBIT
Mercedes-Benz Cars: EBIT to CFBIT In million euros 14,224 514 6,125 21 12,336 199 12,535 -1,095 CCR: CCR: -7,453 0.9 0.9 t/o t/o • New vehicle stock –1,148 • BBAC Dividend +1,660 • Result at-Equity BBAC –1,457 • Legal proceedings +251 • Restructuring +92 • M&A transactions –144 Net investments Depre
Slide 12: Mercedes-Benz Vans: Financials
Mercedes-Benz Vans: Financials Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in billion euros in billion euros +8% +18% +59% +48% 447.8 20.3 3.1 3.0 415.3 17.2 2.0 1.9 2022 2023 2022 2023 2022 2023 2022 2023 12
Slide 13: Mercedes-Benz Vans: FY EBIT & RoS
Mercedes-Benz Vans: FY EBIT & RoS In million euros Gross Profit +1,331 2,418 81 10 11 3,063 75 3,138 -1,168 -107 -109 1,897 30 1,927 RoS: RoS: Strongly improved net pricing 15.1% 15.5% RoS: RoS: Significantly improved unit sales 11.0% 11.2% Lower raw material prices • Russia +51 • Russia +5 • Legal
Slide 14: Mercedes-Benz Vans: EBIT to CFBIT
Mercedes-Benz Vans: EBIT to CFBIT In million euros 3,138 201 3,018 353 2,817 -340 -29 420 -725 CCR: CCR: 0.9 1.0 t/o t/o • New vehicle stock –564 • Dividend FBAC +107 • Legal proceedings +198 • At-equity FBAC –126 • Restructuring +3 Net investments Depreciation and CFBIT EBIT Change in working Net f
Slide 15: Mercedes-Benz Vans: Indicators of Change
Mercedes-Benz Vans: 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 million euros in million euros +36% -8% 48.0 20.6 -16% 18.9 +60% +46% 35.2 873 351 240 544 2019 2023 2019 2023 2019 2023 2019 2023
Slide 16: Mercedes-Benz Mobility: Key messages
Mercedes-Benz Mobility: Key messages Sound new business development with continued focus on electric vehicles; xEV penetration rate above average Portfolio margin impacted by higher interest rates in competitive environment while acquisition margin started to improve Overall solid cost of credit ris
Slide 17: Mercedes-Benz Mobility: Financials
Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in billion euros +7% +2% 62.0 132.4 135.0 58.0 -30% 2.4 1.7 2022 2023 31/12/2022 31/12/2023 2022 2023 17
Slide 18: Mercedes-Benz Mobility: FY EBIT & RoE
Mercedes-Benz Mobility: FY EBIT & RoE In million euros 2,428 0 2,428 22 -72 178 1,695 25 -808 -79 1,302 RoE: RoE: Overall solid cost of credit risk despite macroeconomic environment -393 16.8% 16.8% At-equity result of mobility participations improved driven by better performance and restructuring m
Slide 19: Mercedes-Benz Group: EBIT
Mercedes-Benz Group: EBIT In million euros 20,458 197 20,655 1,136 939 20,004 19,660 -344 -1,993 -733 t/o • Legal proceedings +119 • At-equity Daimler Truck +572 • Legal proceedings –22 • M&A transactions –631 • M&A transactions –117 • Russia +709 • Russia –205 EBIT EBIT EBIT Mercedes-Benz Mercedes-
Slide 20: Group: Reconciliation from CFBIT to Free Cash Flow
Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow In million euros 2,817 12,336 464 11,316 404 11,720 324 182 -4,807 • Legal proceedings +447 • Restructuring +101 • M&A transactions –144 Free cash flow Free cash flow Mercedes-Benz Mercedes-Benz Income taxes Effects from Other reconcil
Slide 21: Mercedes-Benz Group: Net Industrial Liquidity
Mercedes-Benz Group: Net Industrial Liquidity In billion euros 6.5 13.8 0.5 -1.4 -8.1 1.3 31.7 -5.6 26.6 -1.9 Free cash flow industrial business FY 2023: € 11.3 billion Additions to Net Industrial Earnings and Depreciation and Investments in Net Industrial Working capital property, plant, Dividend p
Slide 22: Mercedes-Benz Group: Dividend
Mercedes-Benz Group: Dividend Net profit Earnings per share Dividend per share proposed in billion euros in euros in euros -2% -1% 14.8 14.5 13.55 13.46 +2% 5.20 5.30 2022 2023 2022 2023 2022 2023 22
Slide 23: Capital Allocation Framework
Capital Allocation Framework New Share Buyback Policy Distributing available Free Cash Flow of the industrial business (after M&A) generated beyond the dividend payout ratio of approx. 40% of Group Net Income to our shareholders Completion of current Share Buyback in Q3 2024 possible Capital Allocat
Slide 24: Outlook 2024
Outlook 2024 24
Slide 25: Mercedes-Benz Divisional Guidance 2024
Mercedes-Benz Divisional Guidance 2024 ASSUMPTION The premises regarding the economic situation and the development of automotive markets continue to be characterized by an exceptional degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy a
Slide 26: Mercedes-Benz Group Guidance 2024
Mercedes-Benz Group Guidance 2024 ASSUMPTION The premises regarding the economic situation and the development of automotive markets continue to be characterized by an exceptional degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and th
Slide 27: Strategic priorities
Strategic priorities 27
Slide 28: We are expanding our leading position as the world's most valuable luxury automotive brand
We are expanding our leading position as the world’s most valuable luxury automotive brand $61 bn. Mercedes-Benz brand value 2023 which equals +9% vs. prior year* *Interbrand: Best Global Brands 2023 28
Slide 29: 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 Train sales and service partners in Customers experience new look Global expansion to ensure highly 28 markets until end of 2024 to and feel already visible i
Slide 30: 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 31: We want to ease the life of our customers with 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 32: We focus on our main task: Building desirable cars
We focus on our main task: Building desirable cars 32
Slide 33: At Mercedes-Benz, desirability is not a matter of drivetrain
At Mercedes-Benz, desirability is not a matter of drivetrain E-Class GLC Coupé S63 “debuts a bevy “qualities that few if “the quiet luxury of new tech ” any rivals can match” of driving” Top Gear Autocar Bloomberg 33
Slide 34: We will introduce new tailor-made products to capture further 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 34
Slide 35: We are creating 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 | WLTP: combined power consumption: 24.1-22.5 kWh/100km; CO2-emissions: 0 g/km S-Class: strengthening G-Class: evolving the Maybach: redefining AMG: pushing forward
Slide 36: For our most demanding customers, we will offer even 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 36
Slide 37: With MMA we will redefine what customers can expect at the entry point
With MMA we will redefine what customers can expect at the entry point into the world of Mercedes-Benz >750 km range (WLTP) ~12 kWh / 100 km consumption 150 kW to >400 kW output Up to 93% drive train efficiency Up to 400 km charge in 15 min Up to 300 kW charging power incl. boost Bidirectional charg
Slide 38: We are taking the necessary steps to go all-electric
We are taking the necessary steps to go all-electric MB.EA AMG.EA VAN.EA 38
Slide 39: 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 40: Customers and market conditions will set the pace of the transformation
Customers and market conditions will set the pace of the transformation BEV: ICE: Strategic & Tactical consistency flexibility up to 50% xEV sales in 2nd half of decade. Will be able to cater to different customer needs until well into 2030s 40
Slide 41: 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 Retail: aim for net-carbon Closing the loop: building CO2 emissions by 2030 raw material assessment neutrality by 2030 across battery recycling factory at own plants by 80
Slide 42: 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 43: Mercedes-Benz continues to pioneer advancements in automated driving
Mercedes-Benz continues to pioneer advancements in automated driving Launching Automatic Lane Change Advancing DRIVE PILOT (L3) Cooperating with NVIDIA Function introduced in U.S. and Aim to extend speed to ~90 km/h Joint development of future China, Europe to follow soon in Germany by end of 2024,
Slide 44: We are continuously 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 45: Iconic Luxury Leading Technology
The essence of our brand and our way forward ICONIC LEADING LUXURY TECHNOLOGY 45
Slide 46: Appendix
Appendix
Slide 47: Mercedes-Benz Mobility: Net credit losses
Mercedes-Benz Mobility: Net credit losses* 0.89% 0.83% 0.51% 0.43% 0.37% 0.34% 0.33% 0.31% 0.31% 0.26% 0.26% 0.24% 0.21% 0.21% 0.29% 0.20% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * As percentage of portfolio, subject to credit risk. 47
Slide 48: 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 49: 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