Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Q1 2022 Earnings Presentation
69 slides from Mercedes-benz's earnings presentation, 2022
Slide 1: Roadshow Presentation Q1 2022
Roadshow Presentation Q1 2022 Mercedes-Benz Group AG
Slide 2: Agenda
Internal AGENDA I. RESULTS Q1 2022 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow 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: 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 5: 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 6: 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 7: Mercedes-Benz 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 8: Mercedes-Benz 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 9: 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 10: 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 Roadshow Presentation Q1 2022 1
Slide 11: Mercedes-Benz 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 12: Mercedes-Benz 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 13: 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 14: 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 Roadshow Presentation Q1 2022 14
Slide 15: Mercedes-Benz 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 16: Mercedes-Benz 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 17: 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 18: Mercedes-Benz 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 19: Agenda
Internal AGENDA I. RESULTS Q1 2022 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation Q1 2022 19
Slide 20: 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 21: 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 22: Agenda
Internal AGENDA I. RESULTS Q1 2022 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation Q1 2022 22
Slide 23: 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 Roadshow Presentation Q1 2022 23
Slide 24: 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 Roadshow
Slide 25: Three levers to sustainably improve our cash flow
Internal Three levers to sustainably improve our cash flow “Improve “Establish “Free up cash” cash flow steering” cash flow culture” − Reduction of working capital: − Creating more − Cash flow as part of the from purchase to production transparency and Mercedes-Benz DNA: from to sales visibility man
Slide 26: Agenda
Internal AGENDA I. RESULTS Q1 2022 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation Q1 2022 26
Slide 27: Cars Strategy: build the world's most desirable cars
Internal Mercedes-Benz Cars Strategy Our goal: We will build the world’s most desirable cars Think Focus Expand Embrace Lead Lower and act on customer base customers and in electric cost base like a luxury profitable by growing grow recurrent drive and and improve brand growth sub-brands revenues ca
Slide 28: Luxury experience across all touchpoints
Internal We will provide the luxury experience across all touchpoints Brand touchpoints Product substance Digital experience Roadshow Presentation Q1 2022 28
Slide 29: We will focus on profitable growth
Internal We will focus on profitable growth Profit Price Portfolio Rethink volume ambitions – Reorientate pricing Reshape future product profitability first and channel mix portfolio to optimise returns #1 Profit Price Volume Roadshow Presentation Q1 2022 29
Slide 30: Brand Maturity
Internal Clear growth plan Brand Maturity Taking it to the next level Growing the legend Unlocking the potential Addressing a new audience Time Roadshow Presentation Q1 2022 30
Slide 31: Owning the customer relationship and growing recurrent revenues
Internal It‘s about owning the customer relationship and leveraging our car park and customer base Embrace customers Grow recurrent revenues Physical Direct Data-driven Service & parts Digital services retail sales connection business business Luxury experience, Significant Personalized Still signif
Slide 32: Ambition 2039 – 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 33: Our electric product rollout is running at full speed
Internal 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 total, the Mercedes-
Slide 34: Electrifying our brands
Internal Electrifying our brands: leveraging their full potential Launch of a sophisticated luxury electric Mercedes-Maybach SUV in 2023 Launch of the fully electric G-Class in 2024 AMG will go electric: Three BEV models in 2022 alone and redefining high performance with a completely new electric ar
Slide 35: At the end of the decade, our focus will be on BEV only
Internal 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 ready to go all-electri
Slide 36: Three Mercedes-Benz EV-only architectures to be launched in 2025
Internal Three Mercedes-Benz EV-only architectures to be launched in 2025 Ready to go all-electric by the end of the decade* MB.EA AMG.EA VAN.EA medium- and large-size cars dedicated performance for electric vans modular system as electric electric-vehicle architecture and light commercial backbone
Slide 37: Expanding activities in battery cells and systems with partners
Internal 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 our partners 2019 2030
Slide 38: By joining ACC, we build a European battery champion
Internal 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 the decade. ACC will
Slide 39: Our batteries will be highly standardized
Internal Our batteries will be highly standardized Differentiating factors More than 90% of all future Mercedes-Benz vehicles will be based on a common battery platform Chemistry We are aiming for a modular battery system that consists of uniformly designed components and standard interfaces to the
Slide 40: Developing the next generation battery cell technology
Internal Developing the next generation battery cell technology High-Silicon Anode: increasing energy density by using silicon-carbon composite in the anode Expected energy density Solid-State: pushing energy density beyond limits of conventional lithium-ion cell, doubling energy capacity and Solid-
Slide 41: In-house electric motors are a key part of our strategy
Internal In-house electric motors are a key part of our strategy Ultra-high performance axial motors for our forthcoming AMGs. Axial flux technology allows for unmatched power density, performance, acceleration Electric motor and power electronics company YASA Ltd. will be a fully owned subsidiary o
Slide 42: Premium charging experience
Internal We want to provide a premium charging experience Mercedes me Charge currently comprising more than 690,000 AC and DC charging points worldwide. We will expand and enhance our charging network with partners like Ionity and ChargePoint Mercedes-Benz customers will get enhanced access to the S
Slide 43: VISION EQXX – taking electric range and efficiency to a new level
Internal VISION EQXX – taking electric range and efficiency to an entirely new level Efficiency means achieving more from less. The VISION EQXX is packed with efficiency improvements that push the envelope with a mixture of advanced technology and talented teamwork. On April 14th, Mercedes-Benz anno
Slide 44: 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 45: Factory 56 is a zero-carbon factory
Internal Our Factory 56 is a zero-carbon factory and serves as a blueprint for our global Mercedes-Benz production network At our Factory 56 in Sindelfingen “producing sustainability” is already reality The innovative energy concept includes a photovoltaic system, a DC power grid and energy storage
Slide 46: Halving lifecycle CO2 emissions per vehicle 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 47: Sustainable supply chains for focus materials
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 48: Green and CO2 neutral supply chain
Internal We are establishing a green and CO2 neutral supply chain Raw In the future, raw materials for battery materials Processed components only from IRMA-certified mines materials & components Intention to partner with lithium producer Albemarle for Recycling future lithium supply, lithium recycl
Slide 49: 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 50: The transformation of our workforce
Internal 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 motivated and quali
Slide 51: Our transition plan to go BEV-only
Internal Our transition plan to go BEV-only What we told you 2025 BEV Ready to go all-electric Faster ramp down PHEV transition alternative for every by end of decade of ICE vehicles technology model What we are going to do New BEV architecture New BEV models MB.EA, AMG.EA, New battery cell New coop
Slide 52: Revenue quality rising – driven by mix and pricing
Internal Revenue quality rising – driven by mix and pricing Key levers Net revenue per unit* Significant increase Net pricing performance Positive mix from high end electric vehicles Digital services revenue 2019 Direct sales model 2025 2030 * schematic graph Roadshow Presentation Q1 2022 52
Slide 53: BEV cost reduction focus
Internal BEV cost reduction focus Key levers Variable costs per unit* Material and manufacturing cost reduction of 1% until 2025 BEV Further cost reduction on electric drive train from 2025 to 2030 Decreasing cell costs and common battery EU7 ICE platforms 2019 2025 2030 Scalable modular electric on
Slide 54: Radical shift in capital allocation
Internal Radical shift in capital allocation – from EV-first to EV-only Key levers CAPEX and R&D investments* Additional investments for new BEV architecture MB.EA, AMG.EA, VAN.EA and intensified battery footprint Radically reduced non-BEV investments Capex share of investments decreasing 2019 2025
Slide 55: Fixed cost reduction targets stepped up
Internal Fixed cost reduction targets stepped up Key levers Fixed cost development* Covid 2020: significant fixed cost reduction 2021: temporary effects replaced by permanent measures >20% fixed cost reduction until 2025 vs. 2019 2025ff: digitization of all business areas 2019 2025 2030 After 2025 f
Slide 56: Transformation moves with high speed
Internal Transformation moves with high speed Q3 Results Transfer of compact and mid size Partnership with Luminar to enhance transmissions activities to Magna pioneering work in next-generation automated driving systems MB Strategy Update: ‘electric drive’ Acquisition of British electric New transf
Slide 57: Our financial ambitions for MB AG 2025
Internal Our financial ambitions for MB AG 2025 On track towards double digit RoS despite supply constraints Market environment/revenues Contribution margin Profitable growth Targets increased Fixed costs Target extended > -20% vs. 2019 > -20% vs. 2019 > -20% vs. 2019 CAPEX and R&D Target extended >
Slide 58: BBAC Joint Venture
Internal BBAC (Beijing Benz Automotive Cooperation) Joint Venture Key Facts − BBAC is based on a trustful partnership with our long-term partner BAIC − BBAC is the largest Mercedes-Benz production facility in the world with local R&D for passenger cars. BBAC Figures disclosed by MBG In EUR millions
Slide 59: Agenda
Internal AGENDA I. RESULTS Q1 2022 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation Q1 2022 59
Slide 60: Mercedes-Benz Vans Strategy
Internal Mercedes-Benz Vans Strategy Our Goal We offer the world’s most desirable vans and services Target Embrace Lead Lower Our Strategic premium segments customers and in electric total cost base and Pillars and focus on grow recurrent drive and car improve industrial profitable growth revenues s
Slide 61: Mercedes-Benz Vans Ambition 2039
Internal Mercedes-Benz Vans Ambition 2039 The ambition of Mercedes-Benz Vans is to make our fleet of new private and commercial Vans CO₂-neutral over the entire lifecycle1 by 2039. PRODUCTION USE PHASE END OF LIFE Cradle-to-gate Well-to-wheel Recycling Supply chain/ In- & outbound Mercedes-Benz Fuel
Slide 62: Mercedes-Benz Vans SUSTAINEER
Internal Mercedes-Benz Vans SUSTAINEER Solar Panel Digital Interior Mirror Daylight+ Sustainable Materials Heated Seat Belt Innovative Breaks Optimized Tires Vegan Heated Steering Wheel Front Module Filter Electric (fine particulate air Underbody Filter (fine Sidewalk Drive filter) Speed Mirror part
Slide 63: Strategy priority: Electrifying Mercedes-Benz Vans
Internal Strategy priority: Electrifying Mercedes-Benz Vans Mercedes-Benz Vans is fully committed and dedicated to electrification Holistic Approach: From small over mid-size to large, we electrify every van segment eCitan* VAN.EA eVito eSprinter EQV EQT** current eVan portfolio next generation all-
Slide 64: The next-generation eSprinter
Internal The next-generation eSprinter An intelligent, modular solution with three core elements Front module for high-voltage Rear module with components electrically driven rear axle Choice of • 2 wheel bases • 3 battery capacity levels Large | Medium | Small Underfloor module for high-voltage bat
Slide 65: Agenda
Internal AGENDA I. RESULTS Q1 2022 II. OUTLOOK FY 2022 III. STRATEGY 1. MERCEDES-BENZ CARS 2. MERCEDES-BENZ VANS 3. MERCEDES-BENZ MOBILITY Roadshow Presentation Q1 2022 65
Slide 66: Mercedes-Benz Mobility Strategy
Internal Mercedes-Benz Mobility Strategy WE MOVE YOU! Best-in-class Mobility Services – Customer-centric, seamless & flexible Seamlessly Sustainability End-to-end integrated Data-driven Electrification automation & customer company Service Income digitization experience High-performance culture Road
Slide 67: Mercedes-Benz Mobility Role & Contribution
Internal Mercedes-Benz Mobility Role & Contribution As an integral part of Mercedes-Benz, we secure the company’s position as a global leader by leveraging customer data and insights generated through our numerous touchpoints with our clients. We retain them in the Mercedes-Benz ecosystem and offer
Slide 68: Mercedes-Benz Mobility Product Range
Internal Mercedes-Benz Mobility Product Range CREDIT LEASING FLEET SUBSCRIPTION RENT INSURANCE SERVICES CHARGING, PAYMENT, ETC. As integral part of the Mercedes-Benz customer journey Roadshow Presentation Q1 2022 68
Slide 69: 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