Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Debt Investor Presentation (2022)
53 slides from Mercedes-benz's debt investor presentation, 2022
Slide 1: Fixed Income Presentation FY 2021
Fixed Income Presentation FY 2021 Mercedes-Benz Group AG
Slide 2: Agenda
Daimler Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2021 II. DIVISIONAL REVIEW FY 2021 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation FY 2021 2
Slide 3: Mercedes-Benz Group: Achievements 2021
Daimler Internal Mercedes-Benz Group: Achievements 2021 Increased financial robustness managing through the pandemic & semiconductor shortages Accelerated strategy implementation, especially electric vehicles & automated driving Established new company structure successfully Fixed Income Presentatio
Slide 4: Q4/FY reporting changes due to Spin-off Daimler Trucks & Buses
Daimler Internal Q4/FY reporting changes due to Spin-off Daimler Trucks & Buses Group P&L (Financial Statements) 1 Segment P&L Q4/FY Until Q3 2021 Continued Operations (CO) Mercedes- Daimler Daimler Benz Trucks & Reconciliation Mainly: Mercedes-Benz Cars & Vans, Cars & Vans Mobility Buses Mercedes-B
Slide 5: Mercedes-Benz Group: Key figures
Daimler Internal Mercedes-Benz Group: Key figures* Revenue EBIT EBIT adj.** Free Cash Flow (IB) Net Industrial Liquidity in billion euros in billion euros in billion euros in billion euros in billion euros +9% +340% +123% +18% 168.0 29.1 19.2 21.0 154.3 2.1 17.9 34.1 32.5 13.0 +4% 8.3 8.6 8.6 17.2 0
Slide 6: Mercedes-Benz Group: FY EBIT
Daimler Internal Mercedes-Benz Group: FY EBIT* In billion euros 9.8 29.1 1.6 19.2 1.9 7.1 16.0 -13.0 2.0 8.6 6.1 0.5 6.6 • Legal proceedings -0.3 • Restructuring -0.7 • M&A transactions +10.9 t/o t/o Deconsolidation result • EBIT of DO +1.4 (DT + MBM) +9.2 EBIT Mercedes- Mercedes- EBIT EBIT 2020 EBI
Slide 7: Reconciliation from CFBIT to Free Cash Flow
Daimler Internal Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow* In billion euros 2.3 10.9 10.2 0.5 8.6 -1.9 -0.2 -0.1 • Legal proceedings +1.7 t/o • Restructuring +0.8 • FCF DO +0.7 • M&A transactions -0.2 Free cash flow Free cash flow Mercedes-Benz Income taxes Effects from Other
Slide 8: Mercedes-Benz Group: Net Industrial Liquidity
Daimler Internal Mercedes-Benz Group: Net Industrial Liquidity* In billion euros 6.8 10.4 0.0 -1.4 -7.2 -1.4 1.8 21.0 17.9 Free cash flow industrial business FY 2021: € 8.6 billion -5.9 Additions to Dividend Net Industrial Depreciation and Investments in Net liquidity Net Industrial Earnings and oth
Slide 9: 2021 development of gross industrial liquidity
Daimler Internal Mercedes-Benz Group: 2021 development of gross industrial liquidity DMO/MBM In billion euros Industrial Business 8.7 -7.8 11.8 -17.9 8.6 -9.0 1.8 30.7 29.4 -1.8 6.9 3.6 6.1 25.8 24.6 Gross FCF FCF Other ABS New Bond New FX & Gross Dividend Liquidity IB MBM Debt* Maturities* ABS Matu
Slide 10: Financial flexibility over a 12-month period
Daimler Internal MBG Q4 2021 Financial flexibility over a 12-month period in billion euros ABS potential Compared to end of Q3 net industrial liquidity Other incl. decreased to €21.0 billion due to Daimler Truck spin-off Daimler Truck Fin. Lease stake Commercial Gross industrial liquidity at €24.6 b
Slide 11: Agenda
Daimler Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2021 II. DIVISIONAL REVIEW FY 2021 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation FY 2021 11
Slide 12: Mercedes-Benz Cars & Vans: Key messages
Daimler Internal Mercedes-Benz Cars & Vans: Key messages Strong market demand for top end vehicles: record sales for Maybach, AMG and G-Class Acceleration of EVs: 4 new BEVs introduced, strong EQS demand; Van EV deliveries doubled Automated driving: next milestone with industry-first Level 3 approva
Slide 13: Top-end and electric vehicle unit sales
Daimler Internal Mercedes-Benz Cars: Top-end and electric vehicle unit sales In thousand units -7% 2,087 +30% 1,944 305* 41 G +64% 17 Maybach 272 236* 34 10 135 AMG 166 182 PHEV 121 S 119 thereof 153 EQS 101 GLS 90 BEV 47 2020 2021 2020 2021 2020 2021 Total MBC Top-end vehicles Electric vehicles * w
Slide 14: Mercedes-Benz Vans: Electric vehicle unit sales
Daimler Internal Mercedes-Benz Vans: Electric vehicle unit sales In thousand units +3% 386 +119% 14 375 thereof 6 thereof 2020 2021 2020 2021 Total MB Vans Battery electric vehicles Share in % of volume 2% 4% Fixed Income Presentation FY 2021 14
Slide 15: Internal data confirms CO2 compliance 2021 in Europe
Daimler Internal Mercedes-Benz Cars & Vans: Internal data confirms CO2 compliance 2021 in Europe Target ~125g* 115g NEDC WLTP WLTP Preliminary actuals 2020 2021 excluding regulatory factors** Prognosis * Estimated target level Mercedes-Benz Group 2021ff new car fleet’s average CO2 emissions in Europ
Slide 16: Cars & Vans: Financials
Daimler Internal Mercedes-Benz Cars & Vans: Financials Sales Revenue EBIT adj. CFBIT adj. in million units in billion euros in billion euros in billion euros -5% +11% +105% 2.46 2.33 109.6 13.9 +55% 98.6 12.3 7.9 6.8 2020 2021 2020 2021 2020 2021 2020 2021 Fixed Income Presentation FY 2021 16
Slide 17: Cars & Vans: FY EBIT & RoS
Daimler Internal Mercedes-Benz Cars & Vans: FY EBIT & RoS In million euros Gross Profit +7,627 9,123 -235 533 13,914 13,626 -1,261 -170 -197 -680 -288 Strongly improved net pricing 6,802 Favourable product mix RoS: 1,630 RoS: Positive development of used cars business 12.7% 5,172 12.4% Income from B
Slide 18: Cars & Vans: Indicators of Change
Daimler Internal Mercedes-Benz Cars & Vans: Indicators of Change Mercedes-Benz Cars Active Workforce Fixed Costs R&D Investment in pp&e Revenue per unit in thousand FTE* in billion euros in billion euros in billion euros in thousand euros +26% -3% -5% 49.8 159.8 -16% 8.1 -35% 5.9 39.4 154.9 7.7 3.8
Slide 19: Cars & Vans: EBIT to CFBIT
Daimler Internal Mercedes-Benz Cars & Vans: EBIT to CFBIT In million euros 13,626 6,176 2,125 12,295 -702 -118 10,170 -2,718 CCR: -6,095 CCR: 0.9 0.7 t/o t/o • BBAC Dividend +1,523 • Legal proceedings +1,658 • New vehicle stock +671 • Result at-Equity BBAC -1,553 • Restructuring +557 • Unfinished pr
Slide 20: Mercedes-Benz Mobility: Key messages
Daimler Internal Mercedes-Benz Mobility: Key messages Spin-off of truck business successfully completed (Phase 1 2021) New business impacted by semiconductor shortage and lower penetration rate Reduced portfolio due to truck spin-off and lower dealer stock Net credit losses on low level due to high
Slide 21: Mobility: Financials
Daimler Internal Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in billion euros -11%* +116% -6% 67.8 150.6 3.4 63.6 133.7 1.6 2020 2021 2020 2021 2020 2021 * t/o - 16.8bn EUR Focus effect Fixed Income Presentation FY 2021 21
Slide 22: Mobility: FY EBIT & RoE
Daimler Internal Mercedes-Benz Mobility: FY EBIT* & RoE In million euros Lower credit risk reserve due to timely response to Covid-19 pandemic in 2020 Margin benefiting from lower refinancing costs Improved operative business performance at mobility services and fleet management 1,044 44 3,493 86 3,
Slide 23: Agenda
Daimler Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2021 II. DIVISIONAL REVIEW FY 2021 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation FY 2021 23
Slide 24: 2021 Segment and Group KPIs as guidance base
Daimler Internal 2021 Segment and Group KPIs as guidance base for reference The base for the comparative guidance are the respective continued operations KPIs of 2021. Mercedes-Benz Cars 1,944 thousand Unit Sales Mercedes-Benz Vans 386 thousand Mercedes-Benz Cars 13.1 % Return on Sales Mercedes-Benz
Slide 25: Divisional Guidance 2022
Daimler Internal Mercedes-Benz Divisional Guidance 2022 ASSUMPTION The macroeconomic conditions will continue to be comparatively favourable for the global demand for cars in 2022. However, it currently looks as if the semiconductor-related supply bottlenecks will continue to impact the market. Ther
Slide 26: Group Guidance 2022
Daimler Internal Mercedes-Benz Group Guidance 2022 ASSUMPTION The macroeconomic conditions will continue to be comparatively favourable for the global demand for cars in 2022. However, it currently looks as if the semiconductor-related supply bottlenecks will continue to impact the market. Therefore
Slide 27: Strategic priorities for this year
Daimler Internal Strategic priorities for this year Scale Accelerate Grow Alleviate Focus electric car luxury supply relentlessly vehicles software business constraints on costs Fixed Income Presentation FY 2021 27
Slide 28: Agenda
Daimler Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2021 II. DIVISIONAL REVIEW FY 2021 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation FY 2021 28
Slide 29: Our funding strategy is built on strict principles
Daimler 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, Deposits Independence No Covenants and asset pledge
Slide 30: Lower Portfolio at Mercedes-Benz Mobility due to Truck spin-off
Daimler Internal Lower Portfolio at Mercedes-Benz Mobility due to Truck spin-off and lower dealer stock Wholesale Loan Lease Truck spin-off (Phase 1) Portfolio (in bn €) 71 72 74 68 64 Truck & Bus 58 62 share after spin-off (Phase 1) ~9% Acquisitions 48 Others Trucks (in bn €) 38 41 Buses Vans 2012
Slide 31: Mobility business benefits from stringent credit management and solid refinancing
Daimler 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 Net credit losses on very low level benefitting from 0.89% 0.83% strong used car markets, i.e. collateral values as
Slide 32: Well balanced Bond Maturity Profile
Daimler Internal Well balanced Bond Maturity Profile in billions of EUR as of 31th December 2021 Issued in 2021 Maturities 0.6 0.8 3.1 14.5 0.0 11.2 0.9 7.4 0.4 6.2 4.3 3.1 1.0 Fixed Income Presentation FY 2021 32
Slide 33: Financing liabilities show a diversified funding mix
Daimler Internal Financing liabilities show a diversified funding mix Lease Liabilities Acc. Deposits in billions of EUR Other (ex Lease Liab.) Bank Loans Com. Paper Bonds ABS 3% 1% 3% 1% 9% 2% 1% 2% 2% 9% 8% 11% 0% 2% 1% 8% 1% 9% 10% 15% 0% 9% 25% 27% 11% 22% 27% 19% 53% 53% 53% 53% 53% Fixed Incom
Slide 34: Balanced mix of funding instruments
Daimler Internal To ensure sustainable portfolio growth, we mitigate risk and volatility through a balanced mix of funding instruments Bank loans 53% RATING Total: EUR 126 bn INDEPENDENT Planned to increase Green Finance Share in the upcoming years Fixed Income Presentation FY 2021 34
Slide 35: Diversified global funding base
Daimler Internal Diversified global funding base: continuously matched with MMO requirements Canada EMTN Domestic Bonds ABS Euro Market Japan CP EMTN Program Domestic CP EUR CP Program EMTN USA ABS China ABS 144a / RegS PP Italian domestic Turkey Domestic Bonds CP Hungarian domestic Domestic Bonds A
Slide 36: Group's financial KPIs set to support a strong rating
Daimler Internal Mercedes-Benz Group’s financial KPIs set to support a strong rating Agency Long-term Outlook Short-term Standard & Poor's: A- stable A-2 Moody’s: A3 positive P-2 Current Ratings: Fitch: A- stable F1 DBRS: A (low) stable R-1 (low) Scope: A stable S-1 Fixed Income Presentation FY 2021
Slide 37: Contributions stabilized funded ratio in low interest rate environment
Daimler Internal Contributions stabilized funded ratio in low interest rate environment Daimler Group Mercedes-Benz Group Significant contributions since 2011 support the solid capital structure 19% Even though German Discount Rate decreased significantly since 2011, Funded Ratio is at a solid level
Slide 38: Agenda
Daimler Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW FY 2021 II. DIVISIONAL REVIEW FY 2021 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation FY 2021 38
Slide 39: Sustainable value for all stakeholder groups
Daimler Internal Sustainable value for all stakeholder groups Climate protection Resource Livable & air quality conservation cities Traffic safety Data responsibility Human rights Integrity People Partnerships Fixed Income Presentation FY 2021 39
Slide 40: With our Ambition 2039 we put a stake into the ground
Daimler Internal Mercedes-Benz Cars With our Ambition 2039 we put a stake into the ground Our ambition: carbon-neutrality by 2039 Now it’s time to accelerate with the full and rapid electrification of our products Fixed Income Presentation FY 2021 40
Slide 41: Our electric product rollout is running at full speed
Daimler Internal Mercedes-Benz Cars Our electric product rollout is running at full speed EQS order intake is strong even though sales only started in August In the first three quarters of the year, sales of hybrid and electric vehicles surged to a record 184,369 units (+143%) EQA EQB 2021 61,652 pl
Slide 42: At the end of the decade, our focus will be on BEV only
Daimler Internal Mercedes-Benz Cars At the end of the decade, our focus will be on BEV only By 2025, our customers will be able to choose an all-electric alternative for every model we make It’s our ambition to drive the plug-in hybrid & BEV share up to 50% in 2025. By the end of the decade, we will
Slide 43: Expanding activities in battery cells and systems
Daimler Internal Mercedes-Benz Cars: Together with our partners, we will expand our activities in battery cells and systems Needed battery volume for all car lines Our targets: 200 Gwh Capacity of more than 200 Gigawatt hours 8 new cell factories around the world: one in the U.S., four in Europe
Slide 44: By joining ACC, we build a European battery champion
Daimler Internal Mercedes-Benz Cars 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 e
Slide 45: We are ready to accelerate EV production
Daimler Internal Mercedes-Benz Cars: We are ready to accelerate EV production Bremen Kamenz Ready to scale up: our largest plants in Beijing, Bremen, Stuttgart Jawor Kecskemét, Rastatt, Sindelfingen, and Tuscaloosa are all Sindelfingen Kecskemét capable of building EVs and are currently assembling 6
Slide 46: Closing the loop: from value chain to value cycle
Daimler Internal Mercedes-Benz Cars Closing the loop: from value chain to value cycle 2022: Carbon-neutral production at all Mercedes- Benz AG passenger car and battery assembly sites Establishing remanufacturing processes and repurpose of key components, e.g. batteries can be reused to help balance
Slide 47: The transformation of our workforce
Daimler Internal Mercedes-Benz Cars: The transformation of our workforce Re-shape Re-skill Re-charge Streamlining Developing Meeting the our organization in a future-oriented Mercedes-Benz responsible way qualifications standard as an employer Continue effective process of cost reduction working Ens
Slide 48: On the road to CO2-neutral production
Daimler Internal On the road to CO2-neutral production 2030 By 2030: At Mercedes-Benz 2022 Cars & Vans we are striving to reduce the CO2 emissions at our plants (Scope 1 and 2) by Starting in 2022: CO2-neutral 50 percent relative to the production at our own reference year 2018 by 2030. Mercedes-Ben
Slide 49: Clear objectives, comprehensive disclosure and guided by international frameworks
Daimler 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 t
Slide 50: Group's green finance framework is part of our sustainable business strategy
Daimler 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 G
Slide 51: Second Opinion by leading provider of independent reviews of green bonds
Daimler 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 cli
Slide 52: Group's ESG Ratings
Daimler Internal Mercedes-Benz Group’s ESG Ratings (as of February 2022) Leading position Upgraded Ranked with the in the sub-industry from highest rating peer group BBB to A in the auto sector rank 6 out of 71 (last update MBG score 09/2021) Prime Status (C+) (last update MBG score 12/2021) Fixed I
Slide 53: Disclaimer
Daimler Internal Disclaimer This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identi
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