Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Debt Investor Presentation (2022)
52 slides from Mercedes-benz's debt investor presentation, 2022
Slide 1: Fixed Income Presentation Q1 2022
Fixed Income Presentation Q1 2022 Mercedes-Benz Group AG
Slide 2: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW Q1 2022 II. DIVISIONAL REVIEW Q1 2022 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation Q1 2022 2
Slide 3: Mercedes-Benz Group: Key figures
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 +6% +8% 3 4 .9 2 2 .7 3 2 .9 2 1 .0 + 11% + 19% 5 .2 5 .3 4 .7 4 .4 -6 % 1 ,3 1 ,2 Q 1 2021 Q 1 2022 Q 1
Slide 4: Group: Q1 2022 EBIT
Internal Mercedes-Benz Group: Q1 2022 EBIT* In million euros 138 42 5,301 5,229 728 -51 -72 4,701 4,444 -257 • Legal proceedings -281 • M&A transactions +918 • Russia -709 EBIT EBIT EBIT Mercedes-Benz Mercedes-Benz Mercedes-Benz EBIT Adjustments adjusted Reconciliation Adjusted Adjustments Q1 2021 C
Slide 5: Reconciliation from CFBIT to Free Cash Flow
Internal Mercedes-Benz Group: Reconciliation from CFBIT to Free Cash Flow In million euros 378 1.847 -609 -165 -16 1.216 1.210 -219 -6 • Legal proceedings +210 • Restructuring +328 • M&A transactions -544 Free cash flow Free cash flow Mercedes-Benz Mercedes-Benz Income taxes Effects from Other recon
Slide 6: Group: Net Industrial Liquidity
Internal Mercedes-Benz Group: Net Industrial Liquidity In billion euros 1.5 0.5 22.7 1.6 0.5 21.0 -0.9 -1.5 Free cash flow industrial business Q1 2022: € 1.2 billion Additions to Net Industrial Depreciation and Investments in Net Industrial Earnings and other Working capital property, plant, Liquidi
Slide 7: Group: Gross Liquidity Development Q1 2022
Internal Mercedes-Benz Group: Gross Liquidity Development Q1 2022 in billions of EUR MBM 0,8 0,2 -1.9 -6.5 Industrial Business 1,2 1,1 30.7 0.0 6,1 -0.5 0,1 25.3 4,9 24,6 20,4 Gross Liquidity Dividend FCF FCF Other ABS New Bond New FX & Gross Liquidity 12/31/2021 Payment IB MBM Debt Maturities ABS M
Slide 8: Group: Financial flexibility over a 12-month period
Internal Mercedes-Benz Group: Financial flexibility over a 12-month period Q1 2022 in billion euros 67.8 60.9 ABS potential Other incl. 42.2 Fin. Lease Net industrial liquidity increased to €22.7 billion Daimler Truck 42.7 Commercial stake paper Gross industrial liquidity at €20.4 billion Bank loans
Slide 9: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW Q1 2022 II. DIVISIONAL REVIEW Q1 2022 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation Q1 2022 9
Slide 10: Mercedes-Benz Cars: Key messages
Internal Mercedes-Benz Cars: Key messages Ongoing high customer demand; volume constrained by semiconductor shortage Financials impacted by situation in Russia and Ukraine Strong margin reflects shift to top-end vehicles; continued pricing power and cost discipline Momentum of electric vehicle sales
Slide 11: Cars: Top-end and electric vehicle unit sales
Internal Mercedes-Benz Cars: Top-end and electric vehicle unit sales In thousand units -10% 539 487 +5% 78* 75* G +19% 8 9 6 Maybach 2 74 62 28 AMG BEV 27 37 18 S thereof 46 EQS PHEV 44 47 34 GLS Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Total MBC Top End Vehicles Electric vehicles Share in %
Slide 12: Mercedes-Benz Cars: Financials
Internal Mercedes-Benz Cars: Financials Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in billion euros in billion euros +8% -10% 538.9 25.8 +21% 487.0 4.2 23.9 3.5 -43% 2.9 1.7 70.5* +18% 60.0* Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 * ASP in thousand
Slide 13: Cars: Q1 2022 EBIT & RoS
Internal Mercedes-Benz Cars: Q1 2022 EBIT & RoS In million euros Gross Profit +918 1.806 56 50 4,243 28 4,271 -944 -45 -47 3,790 -149 3,515 -275 Strongly improved net pricing Favorable product mix RoS: RoS: RoS: RoS: 16.5% Positive development of used car business 16.4% 15.8% 14.7% Lower unit sales
Slide 14: Cars: EBIT to CFBIT
Internal Mercedes-Benz Cars: EBIT to CFBIT In million euros 4.271 414 1.458 -884 -1,426 1,847 1,680 -1,986 -167 CCR: CCR: t/o t/o • New vehicle stock - 1,351 • Result at-Equity BBAC - 447 0.4 • Legal proceedings +123 0.4 • Unfinished products - 680 • MB Grand Prix -358 • Restructuring +275 • Trade p
Slide 15: Mercedes-Benz Vans: Key messages
Internal Mercedes-Benz Vans: Key messages Unit sales at prior-year level despite semiconductor constraints Best ever Q1 sales of Sprinter and Metris in North America Progressing battery electric Van sales based on market leadership mid- and large-size in Europe in 2021 New products in small Van segm
Slide 16: Mercedes-Benz Vans: Financials
Internal Mercedes-Benz Vans: Financials Sales Revenue EBIT adj. CFBIT adj. in thousand units in billion euros in million euros in million euros +0% +9% 88.4 88.5 3.7 +135% +42% 437 3.4 466 thereof 328 186 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Fixed Income Presentation Q1 20
Slide 17: Vans: Q1 2022 EBIT & RoS
Internal Mercedes-Benz Vans: Q1 2022 EBIT & RoS In million euros Gross Profit +112 197 8 32 10 466 -93 -11 -7 348 38 328 290 -118 RoS: 12.6% RoS: Strongly improved net pricing RoS: RoS: 9.4% 9.7% Favorable product mix 8.5% Positive development of used vehicle business • Russia -51 Higher raw materia
Slide 18: Vans: EBIT to CFBIT
Internal Mercedes-Benz Vans: EBIT to CFBIT In million euros 122 43 59 437 55 378 -34 348 -156 CCR: CCR: 0.9 1.1 t/o t/o • New vehicle stock +13 • Provisions -56 • Legal proceedings +86 • Unfinished products -105 • Retail outlets sale -36 • Restructuring +16 • Trade payables +115 • At-equity result F
Slide 19: Mercedes-Benz Mobility: Key messages
Internal Mercedes-Benz Mobility: Key messages New business still impacted by supply constraints and lower market penetration Solid interest margin despite volatile capital markets Net credit losses at low level similar to 2021 Situation in Russia constantly tracked, new business stopped and credit r
Slide 20: Mercedes-Benz Mobility: Financials
Internal Mercedes-Benz Mobility: Financials New Business Contract Volume EBIT adj. in billion euros in billion euros in million euros +1% +6% -13% 16.8 133.7 134.4 733 691 14.5 Q1 2021 Q1 2022 12/31/2012 03/31/2022 Q1 2021 Q1 2022 Fixed Income Presentation Q1 2022 20
Slide 21: Mobility: Q1 2022 EBIT & RoE
Internal Mercedes-Benz Mobility: Q1 2022 EBIT & RoE In million euros 744 47 68 733 0 733 691 -8 12 -54 -55 -22 RoE: RoE: RoE: RoE: 20.2% 18.7% 20.2% 20.2% Improved operative business performance at Mobility Services and Fleet Management Margin benefiting from lower refinancing costs vs. Q1 previous
Slide 22: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW Q1 2022 II. DIVISIONAL REVIEW Q1 2022 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation Q1 2022 22
Slide 23: Mercedes-Benz Divisional Guidance 2022
Internal Mercedes-Benz Divisional Guidance 2022 ASSUMPTION The macroeconomic and geopolitical conditions continue to be characterized by an exceptional degree of uncertainty. The main factor contributing to this is the war in Ukraine, with its effects on supply chains and on the availability and the
Slide 24: Mercedes-Benz Group Guidance 2022
Internal Mercedes-Benz Group Guidance 2022 ASSUMPTION The macroeconomic and geopolitical conditions continue to be characterized by an exceptional degree of uncertainty. The main factor contributing to this is the war in Ukraine, with its effects on supply chains and on the availability and the deve
Slide 25: Strategic priorities for this year – implementation on track
Internal Strategic priorities for this year – implementation on track Scale Grow Accelerate Alleviate Focus electric luxury car supply relentlessly vehicles business software constraints on costs Significant increase of CMD May 19th CMD preparation On course Deep sourcing progress BEV sales Fixed In
Slide 26: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW Q1 2022 II. DIVISIONAL REVIEW Q1 2022 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation Q1 2022 26
Slide 27: Our funding strategy is built on strict principles
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 pledges, no Cr
Slide 28: Stable Portfolio at Mercedes-Benz Mobility despite challenges
Internal Stable Portfolio at Mercedes-Benz Mobility despite challenges Wholesale 163 154 151 140 Loan Lease 133 134 134 117 Truc k s p in-off (P hase 1) Portfolio 99 (in bn €) 80 84 71 72 74 68 64 Truc k & Bus 58 62 s ha re after s p in-off (P hase 1) ~9% Acquisitions 48 Others Trucks (in bn €) 38 4
Slide 29: Mobility business benefits from stringent credit management and solid refinancing
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 strong used car markets, i.e. collateral values as well as 0,83 lo
Slide 30: Well balanced Bond Maturity Profile
Internal Well balanced Bond Maturity Profile in billions of EUR as of 31th March 2022 Issued in 2022 Maturities 11,9 10,5 8,6 6.2 0.1 5.2 0.1 3,5 3,6 3,1 6,1 2,4 5,1 2,1 1,0 1,3 0,5 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2037 Fixed Income Presentation Q1 2022 30
Slide 31: Financing liabilities show a diversified funding mix
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 161.8 1% 145.0 2% 145.8 3% 1% 9% 1% 2% 9% 8% 11% 0% 125.8 2% 8% 1% 118.2 2% 10% 15% 0% 1% 25% 15% 0% 27% 11% 22% 11% 19% 20% 53% 53%
Slide 32: Balanced mix of funding instruments
Internal 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 Other Lease Liabilities Deepen our excellent 1% 2% Bank Loans bank relationships Bank loans Glob
Slide 33: Diversified global funding base matched with MBM requirements
Internal Diversified global funding base: continuously matched with MBM requirements Canada E M TN Domestic Bonds ABS Euro Market Japan CP E M TN Program Domestic CP E U R CP Program E M TN USA ABS China ABS 1 44a / RegS PP Italian domestic Turkey Hungarian domestic Domestic Bonds CP Domestic Bonds
Slide 34: Group's financial KPIs set to support a strong rating
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 Q1 2022 34
Slide 35: Contributions stabilized funded ratio in low interest rate environment
Internal Contributions stabilized funded ratio in low interest rate environment Daimler Group Mercedes-Benz Group 14 11,5 12 9,8 10 8,6 8,1 7,8 Significant in EUR bn 7,4 8 5,9 6 4,5 3,7 4,3 4,3 contributions since 3,1 4 1,1 1,9 2,4 1,7 1,3 2012 support the 2 0,5 0,5 0,5 0,6 0,5 0 solid capital 2012
Slide 36: Agenda
Internal AGENDA I. MERCEDES-BENZ GROUP REVIEW Q1 2022 II. DIVISIONAL REVIEW Q1 2022 III. OUTLOOK FY 2022 IV. FUNDING V. SUSTAINABILITY Fixed Income Presentation Q1 2022 36
Slide 37: We follow a holistic sustainable business strategy
Internal We follow a holistic sustainable business strategy: Ecological, social, economical Climate & Air Protection Resource Integrity Human Conservation Rights People Partnerships Data Sustainable Responsibility Urban Mobility Traffic Safety Fixed Income Presentation Q1 2022 37
Slide 38: Ambition 2039 – our commitment to CO2 neutrality over lifecycle
Internal Ambition 2039 – our commitment to CO2 neutrality over lifecycle Supply chain Production & Logistics Well-to-tank Tank-to-wheel End-of-life SBTi SBTi SBTi CO2-neutral CO2-neutral CO2-neutral CO2-neutral CO2-neutral supply chain production & logistics energy generation vehicle operation recyc
Slide 39: Our electric product rollout is running at full speed
Internal Mercedes-Benz Cars Our electric product rollout is running at full speed In Q1 Mercedes-Benz was able to more than triple sales of battery electric EQ models to reach 21,900 (+210%) units. Plug-in hybrid vehicles also set a new first quarter record with 45,900 (+8%) sales. EQA EQB 2021 In t
Slide 40: At the end of the decade, our focus will be on BEV only
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 be read
Slide 41: Expanding activities in battery cells and systems
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 − with ou
Slide 42: By joining ACC, we build a European battery champion
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 end of th
Slide 43: Pledge to make vehicle production CO2 neutral this year
Internal Mercedes-Benz has pledged to make vehicle production CO2 neutral this year Mercedes-Benz global production network Together with our EV strategy, CO2 neutral production is a key driver of Ambition 2039 All Mercedes-Benz plants worldwide are producing 100 % CO2 neutrally in 2022 We plan to c
Slide 44: Halve lifecycle CO2 emissions per vehicle in this decade
Internal We will at least halve lifecycle CO2 emissions per vehicle in this decade Mercedes-Benz Cars – on our way towards Ambition 2039 – we target the full lifecycle of the car 100% More than half per decade End-of-life Use phase Use phase Production & Production & logistics logistics Supply chain
Slide 45: Sustainable supply chains for focus materials via technology changes
Internal We create sustainable supply chains for focus materials via technology changes Steel – CO2 reduction: Aluminium sheet/cast optimised Thermoplastics conventional Battery materials Base Steel – CO2 prognosis over time: green electricity H2GS Oxygen furnace Directly reduced 2025 2030 2035 iron
Slide 46: Circular economy: battery recycling factory in Kuppenheim
Internal Circular economy: Closing the loop with our battery recycling factory in Kuppenheim Own CO2-neutral recycling plant in Kuppenheim, southern Germany, is scheduled to open in 2023 Hydrometallurgy: Innovative technology increases recovery rate >96% to more than 96 % Cooperation with high-tech
Slide 47: The transformation of our workforce
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 Ensure that
Slide 48: Clear objectives, comprehensive disclosure and international frameworks
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 the areas
Slide 49: Green finance framework part of our sustainable business strategy
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 Green Bon
Slide 50: Second Opinion by leading provider of independent reviews of green bonds
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 climate res
Slide 51: Mercedes-Benz Group's ESG Ratings
Internal Mercedes-Benz Group’s ESG Ratings (as of February 2022) Upgraded Leading position Ranked with the from in the sub-industry highest rating BBB to A peer group in the auto sector rank 6 out of 71 (last update MBG score 09/2021) Prime Status (C+) (last update MBG score 02/2022) Fixed Income Pr
Slide 52: 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
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