Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Investor Day (May 2023)
57 slides from Mercedes-benz's investor day presentation, May 16, 2023
Slide 1: Strategy Update: Mercedes-Benz Vans
Internal STRATEGY UPDATE: MERCEDES-BENZ VANS
Slide 2: Disclaimer
Internal DISCLAIMER STRATEGY UPDATE: MERCEDES-BENZ VANS The following presentation contains forward-looking statements that reflect management's current views with respect to future events. Such MAY 16, 2023 statements are subject to many risks and uncertainties. If the assumptions underlying any of
Slide 3: Founder of the Light Commercial Vehicle Segment
Internal FOUNDER OF THE LIGHT COMMERCIAL STRATEGY UPDATE: MERCEDES-BENZ VANS VEHICLE SEGMENT MAY 16, 2023
Slide 4: Van portfolio strongly focused on upper segments
Internal VAN PORTFOLIO STRONGLY FOCUSED ON UPPER SEGMENTS SH A R E O F O V E R A LL SA LE S Sprinter Vito V-Class Citan/ T-Class ~50% ~30% ~15% 5% STRATEGY UPDATE: MERCEDES-BENZ VANS >400K MAY 16, 2023 DELIVERED in 2022 SMALL MIDSIZE LARGE
Slide 5: The van business is commercially attractive
Internal THE VAN BUSINESS IS COMMERCIALLY ATTRACTIVE M A R KETS P LA Y E R S Strong and growing Stable and concentrated STRATEGY UPDATE: MERCEDES-BENZ VANS Development LCV-market Top-3 players in Europe +25% expected in core markets, dominate approx. 70% from 2022 through to 2030* of the market MAY
Slide 6: Mercedes-Benz Vans enjoys a unique position
Internal MERCEDES-BENZ VANS ENJOYS A UNIQUE POSITION Exceptional top-end Lead the industry STRATEGY UPDATE: MERCEDES-BENZ VANS product identity to all-electric future Best mix, strongest pricing, Grow top-end positioning MAY 16, 2023 highest residuals even further Favourable channel mix Expand profi
Slide 7: We offer the world's most desirable vans and services
Internal WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS PREMIUM MAY 16, 2023 VOLUME ENTRY Sales volume 2021 2030 FOCUS ON PREMIUM SEGMENTS IN EACH INDUSTRY
Slide 8: Private vans: enhancing the top-end of our portfolio
Internal PRIVATE VANS: ENHANCING THE TOP-END OF OUR PORTFOLIO STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023
Slide 9: Commercial vans: focused on most profitable segments
Internal COMMERCIAL VANS: FOCUSED ON AND SUCCESSFUL IN THE MOST PROFITABLE SEGMENTS STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023
Slide 10: Commercial vans: focused on most profitable segments
Internal COMMERCIAL VANS: FOCUSED ON AND SUCCESSFUL IN THE MOST PROFITABLE SEGMENTS STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023
Slide 11: We have made a strong commitment to climate protection
Internal STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 We have made a strong commitment to climate protection
Slide 12: Net carbon-neutral fleet of new vans
Internal NET CARBON-NEUTRAL FLEET OF NEW VANS 2022 2026 2030 2039 STRATEGY UPDATE: MERCEDES-BENZ VANS Net carbon-neutral up to 20% BEV share > 50% BEV share* Net carbon-neutral production at our own fleet of new vans over plants worldwide the entire life cycle MAY 16, 2023 SUPPLY CHAIN & PRODUCTION
Slide 13: Transition plan towards electric only
Internal TRANSITION PLAN TOWARDS “ELECTRIC ONLY” VAN.EA MAY 16, 2023 2030 2026
Slide 14: Electrification roadmap
Internal ELECTRIFICATION ROADMAP 2010 2023 2026 2030 STRATEGY UPDATE: MERCEDES-BENZ VANS Introduction Electrification of every Van Launch of > 50% share of battery of first electric Vito segment & presentation of all-new, electric-only electric vehicles* MAY 16, 2023 new eSprinter architecture VAN.E
Slide 15: Leveraging our strengths to deliver industry-leading profitability
Internal LEVERAGING OUR STRENGTHS TO DELIVER INDUSTRY-LEADING PROFITABILITY SA LES R E V E N UE E BI T A D J U S T E D ROS ADJUSTED STRATEGY UPDATE: MERCEDES-BENZ VANS 2022 415.3 17.2 1.9 11.2 MAY 16, 2023 K units EUR bn EUR bn percent +8% (2021: 386.2) +17% (2021: 14.7) +57% (2021: 1.2) +2.9%p (202
Slide 16: Intensifying our focus on cost competitiveness
Internal INTENSIFYING OUR FOCUS ON COST COMPETITIVENESS STRATEGY UPDATE: MERCEDES-BENZ VANS PRODUCTS AND TECHNOLOGY MANUFACTURING FIXED COSTS AND OVERHEAD Substantial reduction Intensified management Streamlined processes MAY 16, 2023 of complexity approach to manufacturing and optimisation of plant
Slide 17: Uniquely positioned in an attractive industry
Internal UNIQUELY POSITIONED IN AN ATTRACTIVE INDUSTRY, INTENSIVELY FOCUSED ON VALUE CREATION An exceptional portfolio of products, geared towards upper segments STRATEGY UPDATE: MERCEDES-BENZ VANS Unique and continuously highest pricing power MAY 16, 2023 Highest level of brand attractiveness and l
Slide 18: Mercedes-Benz Vans strategy
Internal MERCEDES-BENZ VANS STRATEGY WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS TARGET EMBRACE LEAD LOWER MAY 16, 2023 premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industr
Slide 19: Mercedes-Benz Vans strategy
Internal MERCEDES-BENZ VANS STRATEGY WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS TARGET EMBRACE LEAD LOWER MAY 16, 2023 premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industr
Slide 20: Leadership in four areas
Internal #1 TARGET LEADERSHIP IN FOUR AREAS BRAND STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 CUSTOMER FOCUS SUSTAINABILITY TECHNOLOGY
Slide 21: Industry's strongest pricing power
Internal #1 TARGET MERCEDES-BENZ VANS HAS THE INDUSTRY’S STRONGEST PRICING POWER Significant price premia STRATEGY UPDATE: MERCEDES-BENZ VANS MB Share ~15% Transaction price MAY 16, 2023 ~85% ~50% MB Share ~50% ~50% Entry/Volume Premium1 Competitor A Competitor B Sprinter Sprinter vs. main competito
Slide 22: Regional sales split & comprehensive portfolio
Internal #1 TARGET I. REGIONS: REGIONAL SALES SPLIT & COMPREHENSIVE PORTFOLIO Europe USA STRATEGY UPDATE: MERCEDES-BENZ VANS China 16% 60% 8% MAY 16, 2023 RoW 16% 80% COMMERCIAL APPLICATIONS
Slide 23: Profitable sales channel mix
Internal #1 TARGET II. CHANNELS: PROFITABLE SALES CHANNEL MIX $$ 70% STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 SHARE OF RETAIL AND SMALL FLEET BUSINESS* $ 30%SHARE OF LARGER FLEET BUSINESS* Source: CSI Study 2022, #1 placements: MB 55% vs. 13% (VW) * European data basis
Slide 24: Aiming for profitable growth in most important regions
Internal #1 TARGET III. PRODUCTS: AIMING FOR PROFITABLE GROWTH IN MOST IMPORTANT REGIONS STRATEGY UPDATE: MERCEDES-BENZ VANS EUROPE USA CHINA Strengthening our Aiming to substantially Significant growth potential MAY 16, 2023 position increase our sales by 2030 for private Vans Expansion into premiu
Slide 25: Offering tailor-made vehicles with partners
Internal #1 TARGET IV. INDUSTRIES: OFFERING TAILOR-MADE VEHICLES WITH PARTNERS STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023
Slide 26: Our vans – the perfect basis for upfitting solutions
Internal #1 TARGET OUR VANS – THE PERFECT BASIS FOR UPFITTING SOLUTIONS #1 STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 OEM RANKING* > 75% SHARE OF UPFITTED LARGE VANS * Survey conducted by an external institute on behalf of the Mercedes-Benz Group AG Source: CSI Study 2022, #1 placements: MB 55
Slide 27: Our VanSolution partners
Internal #1 TARGET OUR VANSOLUTION PARTNERS: COMMITTED TO OUR SUSTAINABILITY AMBITION STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023
Slide 28: Our products keep the world running
Internal #1 TARGET OUR PRODUCTS KEEP THE WORLD RUNNING STRATEGY UPDATE: MERCEDES-BENZ VANS Private Usage Services & Crafts Rental Deployment & Recreational Manufacturing MAY 16, 2023 Municipal Vehicles Private 20%* Commercial 80% CEP & Logistics Trade & eGrocery Construction People Mover Ordered acc
Slide 29: New model line camper vans based on VAN.EA
Internal #1 TARGET NEW MODEL LINE CAMPER VANS BASED ON VAN.EA MAY 16, 2023
Slide 30: Mercedes-Benz Vans strategy
Internal MERCEDES-BENZ VANS STRATEGY WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS TARGET EMBRACE LEAD LOWER MAY 16, 2023 premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industr
Slide 31: Resilient business built on strong relationships
Internal #2 EMBRACE RESILIENT BUSINESS BUILT ON STRONG RELATIONSHIPS Most loyal customer base 74% STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 Repurchase rate Mercedes-Benz Sprinter (Europe, 2021)* Highly trusted commercial customer service > 70% service retention (vehicle age 0-4 yrs. – Europe,
Slide 32: Focused on attracting and retaining lifelong customers
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS STRATEGY UPDATE: MERCEDES-BENZ VANS REPURCHASE CONSIDERATION MAY 16, 2023 SERVICES PURCHASE & REPAIRS OPERATIONS
Slide 33: Focused on attracting and retaining lifelong customers: consideration
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS CONSIDERATION BY 2026*: STRATEGY UPDATE: MERCEDES-BENZ VANS > 20% online sales MAY 16, 2023 > 75% direct sales in Europe 20 direct sales markets globally * Target
Slide 34: Focused on attracting and retaining lifelong customers: purchase
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS STRATEGY UPDATE: MERCEDES-BENZ VANS Sales and customer service satisfaction rating MAY 16, 2023 PURCHASE 4.5 / 5 Today* * Internal survey, 2022
Slide 35: Focused on attracting and retaining lifelong customers: operations
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 OPERATIONS
Slide 36: Focused on attracting and retaining lifelong customers: operations
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 OPERATIONS 70% connected vans in 2022 in core markets ⁓ 30 digital extras in 2023 Relevant incremental EBIT contribution going forward
Slide 37: Focused on attracting and retaining lifelong customers: services
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS > 4,200 retail locations STRATEGY UPDATE: MERCEDES-BENZ VANS + additional mobile repair SERVICES ~ 30 min average drive time MAY 16, 2023 & REPAIRS to next retail location in Europe > 50% service contracts Mercedes-Benz Vans
Slide 38: Focused on attracting and retaining lifelong customers: repurchase
Internal #2 EMBRACE FOCUSED ON ATTRACTING AND RETAINING LIFELONG CUSTOMERS REPURCHASE STRATEGY UPDATE: MERCEDES-BENZ VANS 74% Sprinter repurchase rate in 2021 in Europe MAY 16, 2023 + Retrieval & reorder + Financial service offerings Source: NVBS 2022
Slide 39: Mercedes-Benz Vans strategy
Internal MERCEDES-BENZ VANS STRATEGY WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS TARGET EMBRACE LEAD LOWER MAY 16, 2023 premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industr
Slide 40: Pioneer: our first electric van started early
Internal #3 LEAD PIONEER: OUR FIRST ELECTRIC VAN STARTED EARLY 2023 1972 2010 STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023
Slide 41: eSprinter efficiency test drive
Internal #3 LEAD eSPRINTER EFFICIENCY TEST DRIVE FROM LAS VEGAS, NEVADA, TO LONG BEACH, CALIFORNIA LAS VEGAS STRATEGY UPDATE: MERCEDES-BENZ VANS 275 mi / 443 km MAY 16, 2023 without recharging the 113 kWh battery LONG BEACH
Slide 42: Growing strongly with a full range of private and commercial vans
Internal #3 LEAD GROWING STRONGLY WITH A FULL RANGE OF PRIVATE AND COMMERCIAL VANS TO P R E S E N T TA R G E T 2026 TA R G E T 2030 > 40,000 up to 20% > 50% eVans sold BEV share BEV share* * Wherever market conditions allow
Slide 43: Efficiency is the new currency
Internal #3 LEAD EFFICIENCY IS THE NEW CURRENCY DRIVETRAIN TYRES STRATEGY UPDATE: MERCEDES-BENZ VANS CHASSIS THERMAL MANAGEMENT MAY 16, 2023 ELECTRICAL SYSTEM & EE AERODYNAMICS MATERIAL CONCEPT VAN.EA PRIVATE VAN.EA COMMERCIAL
Slide 44: VAN.EA: high degree of modularity
Internal #3 LEAD VAN.EA: HIGH DEGREE OF MODULARITY TO MEET CUSTOMER REQUIREMENTS STRATEGY UPDATE: MERCEDES-BENZ VANS > 50% reduction of MAY 16, 2023 body in white variants LUXURY PREMIUM PRIVATE VAN COMMERCIAL VAN
Slide 45: Targeting leadership in electric drive and digital experience
Internal #3 LEAD TARGETING LEADERSHIP IN ELECTRIC DRIVE AND DIGITAL EXPERIENCE E LE C TR I C D R I V E STRATEGY UPDATE: MERCEDES-BENZ VANS VAN.EA is our new, purpose-built EV architecture – for midsize and large vans, private and commercial. MAY 16, 2023 M B.O S With our Mercedes-Benz Operating Syst
Slide 46: Mercedes-Benz Vans strategy
Internal MERCEDES-BENZ VANS STRATEGY WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS TARGET EMBRACE LEAD LOWER MAY 16, 2023 premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industr
Slide 47: #4 Lower
STRATEGY UPDATE: MERCEDES-BENZ VANS Internal #4 LOWER MAY 16, 2023
Slide 48: Raising our ambitions level: tackling costs at all levels
Internal #4 LOWER RAISING OUR AMBITIONS LEVEL: TACKLING COSTS AT ALL LEVELS STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 COM P A N Y O P E R A TI ON S P R O D U C TS FIXED COSTS HOURS PER VEHICLE (HPV) PORTFOLIO VARIANTS -20%* -25%* -30%* Processes Digitalisation Synergies * By mid-decade vs. 20
Slide 49: Financials: starting from a strong position
Internal FINANCIALS: STARTING FROM A STRONG POSITION Controlled growth in sales Strong revenue improvement K units bn EUR 438 17.2 STRATEGY UPDATE: MERCEDES-BENZ VANS 386 415 14.8 14.7 374 13.3 + 11% + 29% MAY 16, 2023 2019 2020 2021 2022 2019 2020 2021 2022 Significant step up in EBIT Double-digit
Slide 50: Raising ASP with controlled costs
Internal FINANCIALS RAISING ASP WITH CONTROLLED COSTS Average Sales Price Research & Investment in plant, Fixed Costs (ASP) Development property & equipment STRATEGY UPDATE: MERCEDES-BENZ VANS EUR m EUR m +24% +2% -17% -7% MAY 16, 2023 544 553 240 199 2019 2022 2019 2022 2019 2022 2019 2022
Slide 51: Resilient business based on strong revenue streams
Internal FINANCIALS RESILIENT BUSINESS BASED ON STRONG REVENUE STREAMS KEY LEVERS STRATEGY UPDATE: MERCEDES-BENZ VANS schematic ASP MAY 16, 2023 Net pricing Positive mix Direct sales model +24% Digital extras Customer service & parts 2019 2022 end of decade
Slide 52: Investing in our electric and software-driven future
Internal FINANCIALS INVESTING IN OUR ELECTRIC AND SOFTWARE -DRIVEN FUTURE schematic KEY LEVERS Capex & R&D investments STRATEGY UPDATE: MERCEDES-BENZ VANS MAY 16, 2023 Radically reduced ICE investments Ramp-up of VAN.EA BEV & software investments Investments in future production network ~€1bn BEV In
Slide 53: Fixed cost reduction at all levels
Internal FINANCIALS FIXED COST REDUCTION AT ALL LEVELS KEY LEVERS STRATEGY UPDATE: MERCEDES-BENZ VANS schematic Fixed costs MAY 16, 2023 Streamlined processes Digitalisation - 20% Synergies with Mercedes-Benz Cars 2019 mid-decade end of decade
Slide 54: Variable cost reduction at all levels
Internal FINANCIALS VARIABLE COST REDUCTION AT ALL LEVELS KEY LEVERS STRATEGY UPDATE: MERCEDES-BENZ VANS schematic and before mix change BEV Variable costs MAY 16, 2023 Reorganised industrial footprint eSprinter New eSprinter HPV improvements VAN.EA EU7 Complexity reduction ICE Battery cost improvem
Slide 55: Our financial ambitions for Mercedes-Benz Vans
Internal FINANCIALS OUR FINANCIAL AMBITIONS FOR MERCEDES-BENZ VANS Guidance STRATEGY UPDATE: MERCEDES-BENZ VANS 13 11.2 11 8.3 MAY 16, 2023 6.0 ROS adjusted 1.9 2019 2020 2021 2022 2023 mid-decade end of decade CCR adjusted 1.1 0.6 - 0.8 slightly lower level of 2022
Slide 56: Mercedes-Benz Vans strategy
Internal MERCEDES-BENZ VANS STRATEGY WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES STRATEGY UPDATE: MERCEDES-BENZ VANS TARGET EMBRACE LEAD LOWER MAY 16, 2023 premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industr
Slide 57: Disclaimer
Internal DISCLAIMER This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forwa