Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Debt Investor Presentation (2024)
102 slides from Mercedes-benz's debt investor presentation, 2024
Slide 1: Fixed Income Presentation FY 2023
Fixed Income Presentation FY 2023 Mercedes-Benz Group AG Fixed Income Presentation FY 2023 1
Slide 2: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 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 +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 4: 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 5: 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 6: 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 7: Mercedes-Benz Group: Gross Liquidity
Mercedes-Benz Group: Gross Liquidity inbillion In billions euros of EUR MBM Industrial Business 11.3 -4.6 24.7 -5.8 -2.6 13.7 0.1 22.8 4.6 -7.2 6.9 -11.9 3.8 -1.9 20.2 19.1 Liquidity Liquidity Dividend Share IB MBM Other ABS New Bond New FX + Other Liquidity Liquidity Dec 2022 12/31/2022 Payment Buy
Slide 8: Financial flexibility over a 12-month period Q4 2023
Mercedes-Benz Group: Financial flexibility over a 12-month period Q4 2023 In billion euros 53.7 ABS potential Other incl. Net industrial liquidity increased to €31.7 billion 37.7 Fin. Lease Daimler Truck Commercial stake paper Gross industrial liquidity at €19.1 billion Credit facility Financial fle
Slide 9: 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 Fixed Income Presentation FY 2023 9
Slide 10: 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 11: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 11
Slide 12: 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 13: 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 1,097 241 BEV** Core 1,117 149 138 143 AMG thereof S 177 EQS 184 171 161 PHEV Entry ** 596 619 GLS EQS SUV 2022 2023 2022 2023 2022 2023 Total
Slide 14: 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 15: 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% Fixed Income Presentation FY 2023 15
Slide 16: Cars and private Vans: 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 17: 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 Fixed Income Presentation FY 2023 17
Slide 18: 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 -1,808 -199 14,252 14,224 -78 -498 -504 -28 Improved net pricing Lower raw material prices RoS: RoS: Improved manufacturing costs 14.6% 14.6% RoS: RoS: Higher inflation and supply chain related cost 12.
Slide 19: 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 20: 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 21: 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 Fixed Income Presentation FY 2023 21
Slide 22: 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% Significantly improved unit sales RoS: RoS: Lower raw material prices 11.0% • Russia +51 11.2% Significantly higher
Slide 23: 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 24: 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 25: 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 26: 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 Fixed Income Presentation FY 2023 26
Slide 27: 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 28: 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% 0.24% 0.26% 0.26% 0.21% 0.29% 0.21% 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. Fixed Income Presentation F
Slide 29: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 29
Slide 30: 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 31: 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 32: Group/Divisional Guidance Ranges
Mercedes-Benz Group/Divisional Guidance Ranges* Specification/ Significantly Slightly below At prior-year level Slightly above Significantly KPI below 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 33: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 33
Slide 34: Our funding strategy is built on strict principles
Our funding strategy is built on strict principles Targeting Financial Maximizing Financial Stringent Global Independence Flexibility Funding Policy No dependence from single Keeping prudent amount of Liquidity matched funding markets, instruments, banks or Cash and Committed Credit investors Facili
Slide 35: Portfolio at Mercedes-Benz Mobility remained stable compared to 2022
Portfolio at Mercedes-Benz Mobility remained stable compared to 2022 Wholesale 163 154 151 140 Loan 133 134 132 135 Lease 117 Truck spin-off (Phase 1) 99 Truck Portfolio 84 spin-off (in bn €) 74 (Phase 2) Others 71 72 68 62 64 62 58 58 Vans 48 41 Acquisitions (in bn €) Cars 2013 2014 2015 2016 2017
Slide 36: Mobility benefits from stringent credit management and solid refinancing
Mercedes-Benz Mobility business benefits from stringent credit management and solid refinancing Net credit losses as a percentage of portfolio, subject to credit risk Net credit losses increased mainly driven by the US 0.89 0.83 market. Risks lean toward the upside due to the 0.51 0.43 macroeconomic
Slide 37: Well balanced bond maturity profile
Well balanced bond maturity profile In billion euros as of 31st December 2023 Issued in 2023 12.1 Maturities 0.6 11.2 9.9 4.2 5.0 11.4 4.6 4.6 0.1 4.0 1.0 7.0 2.6 3.1 1.9 4.9 4.5 0.2 1.7 3.6 1.3 2.4 0.7 2.1 0.5 1.0 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2037 Fixed Income Presentation FY 2
Slide 38: Financing liabilities show a diversified funding mix
Financing liabilities show a diversified funding mix In billion euros Lease Liabilities Acc. Deposits Other (ex Lease Liab.) Bank Loans Com. Paper Bonds ABS 161.8 3% 145.8 3% 9% 1% 1% 2% 8% 11% 0% 125.8 2% 1% 10% 111.8 2% 108.6 2% 15% 0% 25% 1% 1% 11% 15% 2% 3% 22% 14% 9% 5% 19% 22% 23% 53% 53% 53%
Slide 39: Balanced mix of funding instruments
To ensure sustainable portfolio growth, we mitigate risk and volatility through a balanced mix of funding instruments Capital Markets Strengthen our global footprint and use market opportunities Deepen our excellent Other Lease Liabilities Bank Loans bank relationships 1% Bank loans 2% Globally expa
Slide 40: Diversified global funding base matched with MBM requirements
Diversified global funding base: continuously matched with MBM requirements Canada EMTN Domestic Bonds CP Prog. Europe ABS EMTN Program Japan EUR CP Program Domestic CP Prog. USA Italy & Hungary: China EMTN 144a / RegS PP - Domestic Bonds Turkey ABS Domestic Bond Prog. EMTN ABS Domestic Bond Prog. A
Slide 41: Financial KPIs set to support a strong rating
Mercedes-Benz Group’s financial KPIs set to support a strong rating Agency Long-term Outlook Short-term Standard & Poor's: A stable A-1 Moody’s: A2 stable P-1 Current Ratings: Fitch: A stable F1+ DBRS: A stable R-1 (low) Scope: A+ stable S-1+ Fixed Income Presentation FY 2023 41
Slide 42: Funded Ratio of pension obligations at approximately 100%
Funded Ratio of pension obligations at approximately 100% Daimler Group Mercedes-Benz Group (excl. Truck) 14 11.5 12 10 8.6 7.8 8.1 Pension contri- 7.4 butions support the in EUR bn 8 5.9 6 4.5 4.3 4.3 4 3.1 1.9 2.4 3.7 solid capital 1.5 2 0.5 0.5 0.5 0.6 0.5 0.1 structure: on a net 0 -2 -0.1 -0.1 b
Slide 43: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 43
Slide 44: Holistic sustainable business strategy
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 2023 44
Slide 45: Ambition 2039 – commitment to net carbon-neutrality
Ambition 2039 – our commitment to net carbon-neutrality * Supply chain Production & logistics Well-to-tank Tank-to-wheel End-of-life SBTi SBTi SBTi 49.7 tCO 2 in 2020 - 47.8 tCO 2 in 2022 - reduction by at least 50% by end of decade** Net carbon-neutral Sourci ng more than production in 1 st E V c h
Slide 46: Ambition 2039 – targets for Mercedes-Benz operations
Ambition 2039 – our commitment to net carbon-neutrality * OUR AMBITIOUS TARGETS FOR MERCEDES-BENZ OPERATIONS Renewable energy 45% 70% 100% CO2 emissions* * - 50% -80% ZERO 2022 2030 2039 1 Coming from 2018 * Net carbon-neutrality along the entire value chain in our fleet of new vehicles in 2039 ** C
Slide 47: 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 Fixed Income Presentation FY 2023 47
Slide 48: Clear strategic direction towards all electric
Clear strategic direction towards all electric - Strategically focused and tactically flexible Mercedes-Benz BEV product launches MMA* “Electric-First“ Three new electric platform for compact architectures EQT and mid-size EQE SUV CLA MB.EA EQS EQE SUV AMG Mercedes-Benz is EQS AMG Mercedes- CLA Shoo
Slide 49: MMA redefines the entry point into Mercedes-Benz
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 50: Taking the necessary steps to go all-electric
We are taking the necessary steps to go all-electric MB.EA AMG.EA VAN.EA Fixed Income Presentation FY 2023 50
Slide 51: Expanding activities in 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 − Cell production in Bowling Green, USA − Cell production in Caceres, Spain CATL − New plant in Debrecen, Hungary ACC bu
Slide 52: By joining ACC, we build a European battery champion
By joining ACC, we build a European battery champion We have a 30% 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 supply Mercedes
Slide 53: 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 54: Fast, convenient, 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 55: Ambition 2039 goes far beyond our products
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 56: Own plants world-wide producing net carbon-neutral
All of our own Mercedes-Benz plants world-wide are producing 100% net carbon-neutral Together with our EV strategy, Mercedes-Benz global production network net carbon-neutral production is a key driver of Ambition 2039 Since the beginning of 2022, production sites worldwide fully owned by Mercedes-B
Slide 57: Factory 56 as blueprint for the production network
Our Factory 56 serves as a blueprint for our global Mercedes-Benz production network At our Factory 56 in Sindelfingen producing more sustainable is already reality The innovative energy concept includes a photovoltaic system, a DC power grid and energy storage based on reused vehicle batteries Self
Slide 58: Producing clean energy on site
Having achieved net carbon-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 Maximising our on-site photovoltaic systems worldwide by 2025 – adding up to 140 MWp new
Slide 59: Sustainable supply chains for focus materials
Creating sustainable supply chains for focus materials via technology changes STEEL ALUMINIUM BATTERY CELLS Oxygen furnace Directly reduced Average CO2/kg Al iron/electric arc furnace of primary aluminium used in Europe I II III 9 kg -40% I IV -70% - >90% II + Further V I II III potential III IV in
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: Maximizing battery recycling quota in Kuppenheim
Maximizing the recycling quota of automotive batteries and closing the loop with our net carbon-neutral battery recycling factory in Kuppenheim Ramp-up mechanical dismantling in 2024 >96% recovery rate Innovative mechanical- hydrometallurgical process Recycling of lithium-ion batteries Recycling of
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: We finance our transformation in a sustainable manner
We finance our transformation in a sustainable manner G R E E N F I N A N C E F R A M E W O RK REVOLVING CREDIT FACILITY GREEN PANDA BOND In line with Ambition 2039 In line with Ambition 2039 First automaker to issue a Green Panda Bond “DARK GREEN” by CICERO 11 billion euros linked to carbon footpri
Slide 64: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 64
Slide 65: 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 37% female 54% under 35 823 m fans $61 bn. Mercedes-Benz brand value 2023 which equals +9% vs. prior year* *Interbrand: Best Global Brands
Slide 66: Elevating our physical brand experience
We elevate our physical brand experience with unique “Mercedes moments” “The Mercedes-Benz Way” New retail brand concept Brand center network 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 67: Putting 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 68: Approaching our customers
Approaching our customers Specific Mercedes-AMG Direct sales: touchpoints continue to grow one giant leap for our customers and for us worldwide Our ambition for mid-decade 20 markets globally over 80% 25% direct sales in Europe online Digitalisation drives the importance of the physical brand exper
Slide 69: Progress with top-end vehicles
Significant progress with our top-end vehicles and increasingly electric with even more conquest potential +31% 250k to 328k ~60% Expected growth of top-end vehicle share Top-end vehicle unit sales 2023 vs. 2019 of total Mercedes-Benz sales 2019-2026 50% more adults with wealth above 1 million USD (
Slide 70: New tailor-made products for China
We will introduce new tailor-made products to capture further growth potential in China 15 new models will be introduced to China in 2024 E-Class LWB fond developed in China for China Fixed Income Presentation FY 2023 70
Slide 71: Game plan: returns consistent with luxury status
Our game plan: generate returns consistent with our luxury status What we are going to do The financial Impact - Focus on pricing power - Drive ASP higher - Optimise product portfolio - Find a superior operating equilibrium - Tap full potential of top-end segment - Structurally higher profitability
Slide 72: The power of pricing
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 pric
Slide 73: Reshaped model portfolio will drive profitable sales growth
Reshaped model portfolio will drive profitable sales growth Change of Mercedes-Benz segment share in 2.3 m cars 2.0 m cars Car Sales 2026 vs. 2019 Around Top-End 328k units +60% Average ASP >100k € Core 0% Entry -25% 2019 2023 2026 Fixed Income Presentation FY 2023 73
Slide 74: Entry Segment – Focus & Elevate
Entry Segment – Focus & Elevate Sales volume - Elevate to Entry Luxury 680k 570k - Product range refocused on fewer and more upscale portfolio positions: Change of segment share in 2026 vs. 2019 MMA platform with CLA, CLA Shooting -25% Brake, GLA and GLB Change of ASP - The new entrance point of the
Slide 75: Core Segment – Grow & Refine
Core Segment – Grow & Refine Sales volume - Core Luxury going electric on an accelerated timescale, leveraging EVA 1.350k 1.030k (EQE, EQE-SUV) and then MB.EA Change of segment share in 2026 vs. 2019 architectures flat - Brand-new GLC Coupé, CLE Coupé and E-Class Saloon & Estate launched in 2023 Cha
Slide 76: Top-End Segment – Expand & Enhance
Top-End Segment – Expand & Enhance Sales volume - 328k top-end luxury units with ASP of > € 100k and top-end profitability 250k 305k in 2023 Change of segment share in 2026 vs. 2019 - Sustainable segment growth +60% - Desirable products fueling growth: EQS, EQS-SUV, Mercedes-Maybach Change of ASP EQ
Slide 77: New opportunities at the top-end of product and brand portfolio
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 78: More individualisation and exclusive editions
For our most demanding customers, we will offer even more individualisation and exclusive editions Extension of Exclusive limited Mythos: First Mythos car Collaborations to shape individualisation program: editions: Maybach by next year the brand: Moncler MANUFAKTUR Virgil Abloh Fixed Income Present
Slide 79: 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
Slide 80: Optimizing footprint and cost base
We are continuously optimizing our footprint and our cost base Retail: evaluating potential sale Production: rightsizing industrial Procurement: target of own retail business footprint, e.g. Jawor: transformation to reduce material costs in Germany from powertrain into van site, in the next years be
Slide 81: Bottom line
Bottom line We cannot control macro- or world events. But we are redesigning & repositioning Mercedes-Benz to ensure a structurally more profitable company. Fixed Income Presentation FY 2023 81
Slide 82: Iconic Luxury Leading Technology
The essence of our brand and our way forward ICONIC LEADING LUXURY TECHNOLOGY Fixed Income Presentation FY 2023 82
Slide 83: Agenda
AGENDA I. Mercedes-Benz Group Review FY 2023 II. Divisional Review FY 2023 III. Outlook FY 2024 IV. Funding V. Sustainability VI. Luxury VII. Operating System Fixed Income Presentation FY 2023 83
Slide 84: Pioneering advancements in automated driving
Mercedes-Benz continues to pioneer advancements in automated driving Launching Automatic Lane Change Advancing DRIVE PILOT (L3) Cooperating with NVIDIA Function introduced in U.S. and Aim to extend speed to ~90 km/h Joint development of future China, Europe to follow soon in Germany by end of 2024,
Slide 85: 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 86: We are the architects
The fundamental building principles of our own operating system We are the architects SPECIFY DESIGN DEVELOP PROCURE/ PA R T N E R I N T E G R AT E U P G RA D E Fixed Income Presentation FY 2023 86
Slide 87: The fundamental building principles
The fundamental building principles 1. Purpose-built and open to partners 2. Personalized services through one unique Mercedes Me ID 3. Privacy-by-design from th e very beginning 4. Full overt-the-air updatability and decoupled software and hardware releases Fixed Income Presentation FY 2023 87
Slide 88: Mercedes-Benz Operating System MB.OS
All central to our own Mercedes-Benz Operating System MB.OS Proprietary operating system Four domains: Infotainment, Automated Driving, Body & Comfort, Driving & Charging Service-oriented chip-to-cloud architecture Fixed Income Presentation FY 2023 88
Slide 89: Delighting customers with an extraordinary experience
Delighting our customers with an extraordinary experience The most desirable HARDWARE CANVAS … for the most desirable SOFTWARE CONTENT Fixed Income Presentation FY 2023 89
Slide 90: The operating system of our entire business
It’s about the operating system of our entire business We’re connecting the elements to build an integrated network Fixed Income Presentation FY 2023 90
Slide 91: 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 92: 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 93: Accelerating next-gen Level 3 automated driving
Accelerating next-gen Level 3 automated driving with 2x computing power Giving customers back even more time Up to 130 km/h in its final stage Automatic Lane Change (ALC) and highway-to-highway transfer Worldwide rollout to additional markets Fixed Income Presentation FY 2023 93
Slide 94: 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 95: Strong digital customer base as 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 cars Fixed Income Presentation FY 2023 95
Slide 96: MB.CHARGE fixed prices and priority access
MB.CHARGE – we offer fixed prices and priority access to our charging network Transparent, fixed-price charging rates Priority access for customers to the Mercedes-Benz HPC network > 80% customer retention expected from 2025 onwards (for vehicles in the one-to-six-year age) Fixed Income Presentation
Slide 97: 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 98: MB.DRIVE unlocks new revenue and EBIT pools
MB.DRIVE unlocks new revenue and EBIT pools Features available as factory and store sales Low single-digit Bn EUR revenue by mid of the decade Mid single-digit Bn EUR revenue by end of the decade Schematic graph Fixed Income Presentation FY 2023 98
Slide 99: Total software-enabled revenue development
Total software-enabled revenue development + Low-to-mid single-digit Bn EUR revenue by mid of the decade High single-digit Bn EUR revenue by end of the decade 1 Bn EUR EBIT on track by mid of the decade All figures part of existing weather chart Schematic graph Fixed Income Presentation FY 2023 99
Slide 100: 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 101: 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 V ision: Future proofing our valuable real estate Our Focus: Deliv
Slide 102: Disclaimer
Disclaimer This document contains forward-looking statements that reflect our current views about future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “can”, “could”, “plan”, “project”, “should” and similar expressions are used to identify forward-lookin
Mercedes-Benz Group — Debt Investor Presentation (2024) on 6ix