Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — FY2023 Earnings Presentation
115 slides from Mercedes-benz's earnings presentation, 2024
Slide 1: Roadshow Presentation FY 2023
Roadshow Presentation FY 2023 Mercedes-Benz Group AG Roadshow Presentation FY 2023 1
Slide 2: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow 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 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 5: 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 6: 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 7: 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% Roadshow Presentation FY 2023 7
Slide 8: 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 9: 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 Roadshow Presentation FY 2023 9
Slide 10: 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 11: 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 12: 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 13: 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 Roadshow Presentation FY 2023 13
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 Roadshow Presentation FY 2023 18
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 Roadshow Presentation FY 2023 23
Slide 24: 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 25: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation FY 2023 25
Slide 26: 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 27: 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 28: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation FY 2023 28
Slide 29: 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 30: We elevate our physical brand experience with unique Mercedes moments
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 31: We put 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 32: 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% Digitalisation drives the importance of direct sales in Europe online the physical brand exper
Slide 33: Top-end vehicles: 250k to 328k
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 34: We focus on our main task: Building desirable cars
We focus on our main task: Building desirable cars “Mercedes EQS: EQE: “the epitome of EQE SUV : “a EQS SUV: “one of The S stands for technology and beautiful, the most stunning” finesse” luxurious gem” complete luxury offroaders” New York Times AutoLab L’argus Top Gear Mercedes-Maybach EQS 680 SUV
Slide 35: Desirability is not a matter of drivetrain
At Mercedes-Benz, desirability is not a matter of drivetrain E-Class GLC Coupé S63 “debuts a bevy “qualities that few if “the quiet luxury of new tech ” any rivals can match” of driving” Top Gear Autocar Bloomberg Roadshow Presentation FY 2023 35
Slide 36: New tailor-made products for growth in 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 Roadshow Presentation FY 2023 36
Slide 37: Our game plan: returns consistent with our 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 38: The power of pricing is part of our strategy
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 39: 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 Roadshow Presentation FY 2023 39
Slide 40: 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 41: 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 42: 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 43: New opportunities for profitable growth at the top-end
We are creating new opportunities for profitable growth at the top-end of our product and brand portfolio Mercedes-Maybach EQS 680 SUV | WLTP: electricity consumption combined: 24.1-22.0 kWh/100km; CO2- emissions combined: 0 g/km S-Class: strengthening G-Class: evolving the Maybach: redefining AMG:
Slide 44: 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 Roadshow Presentatio
Slide 45: 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 46: Optimizing our 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 47: 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. Roadshow Presentation FY 2023 47
Slide 48: Iconic Luxury Leading Technology
The essence of our brand and our way forward ICONIC LEADING LUXURY TECHNOLOGY Roadshow Presentation FY 2023 48
Slide 49: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation FY 2023 49
Slide 50: Ambition 2039 – our 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 51: Going all-electric
Mercedes-Benz Cars is taking the necessary steps to go all-electric. Customers and market conditions will set the pace. Roadshow Presentation FY 2023 51
Slide 52: Customers and market conditions will set the pace
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 Roadshow Presentation FY 2023 52
Slide 53: 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 54: The EQS: First electric vehicle in our Top-End segment
The EQS: The first electric vehicle in our Top-End segment Launched in 2021 WLTP ranges of up to 753 kilometres1 With its Cd figure2 from as low as 0.20 the EQS is one of the world's most aerodynamic production cars. Drive powers from 265 to 400 kW. Mercedes-AMG EQS with up to 560 kW. Power for up t
Slide 55: The EQE: The new business avant-garde
The EQE: The new business avant-garde Global launch: mid-2022 Depending on the on-board equipment and configuration, WLTP operating ranges of up to 654 kilometres* A lithium-ion battery with 10 cell modules is installed In 15 minutes it is possible to charge the EQE to a range of up to 250 kilometre
Slide 56: The EQS SUV: Redefined SUV luxury
The EQS SUV: Redefined SUV luxury Launch: Second half of 2022 WLTP ranges of up to 720 kilometres1 Lithium-ion battery with up to 12 cell modules DC fast charging system with a charging capacity of up to 200 kW In 15 minutes, power corresponding to a range of up to 250 kilometres2 can be recharged o
Slide 57: EQE SUV: High-tech and luxury meet versatility
EQE SUV: High-tech and luxury meet versatility Launch: First half of 2023 The multi-purpose variant of the EQE business saloon WLTP ranges of up to 628 kilometres1 AMG Lithium-ion battery of 10 cell modules DC charging system with a charging capacity of up to 170 kW In 15 minutes, power correspondin
Slide 58: Mercedes-Maybach EQS SUV
Mercedes-Maybach EQS SUV: The brand’s first all-electric model Premiere: April 2023 Redefining automotive excellence in the age of electro mobility Maximum luxury and comfort with a cocooning effect in the rear Extraordinary driving experience with Maybach driving programme and maximum noise comfort
Slide 59: Efficiency is the new currency
Efficiency is the new currency – learnings and technology transfer Focus on Efficiency Transfer of Technology EQS 450+ Concept CLA / MMA 422 miles (679 km) 1,202 km on a single battery charge under > 750 km** class leading range, 800 V system, Edmunds’ real-world EV range* real-world conditions 250
Slide 60: With MMA we redefine the entry point
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 61: Steps to go all-electric: MB.EA, AMG.EA, VAN.EA
We are taking the necessary steps to go all-electric MB.EA AMG.EA VAN.EA Roadshow Presentation FY 2023 61
Slide 62: 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 63: 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 64: Developing next generation battery cell technology
Developing the next generation battery cell technology High-Silicon Anode: increasing energy density Expected energy density by using silicon-carbon composite in the anode Solid-State: pushing energy density beyond limits of conventional lithium-ion cell, doubling energy capacity and Solid-State red
Slide 65: In-house electric drive units are a key part of our strategy
In-house electric drive units are a key part of our strategy Ultra-high performance axial flux motors for our forthcoming AMGs. Axial flux technology allows for unmatched power density, performance, acceleration. Electric motor and power electronics company YASA Ltd. is a fully owned subsidiary of M
Slide 66: 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 67: Radical shift in capital allocation
Radical shift in capital allocation Key levers 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 >20% investment reduction by second half of decade* and further decreases
Slide 68: Fixed cost reduction targets stepped up
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 costs by 2025* 2025ff: digitization of all business areas After 2025 further net reductions 2019 2025 2030 Roadsho
Slide 69: Fast, convenient, and 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 70: 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 71: 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 72: 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 73: Factory 56 as blueprint for global 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 74: 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 75: 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 76: 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 77: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation FY 2023 77
Slide 78: 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 79: Conditionally automated driving SAE-Level 3: DRIVE PILOT
Conditionally automated driving SAE-Level 3: DRIVE PILOT gives back time to customers Mercedes-Benz is the first car company in the world to meet the UN-R157 regulation for conditionally automated driving. Browsing Messaging Relaxing Orders for DRIVE PILOT for the S-Class and EQS started on May 17,
Slide 80: Driving Assistance Package with DRIVE PILOT
Driving Assistance Package with DRIVE PILOT Parking Package with 360°-Camera Rear Multi-Purpose Camera Antenna Module Opening angle 50° Stereo Multi-Purpose Camera Opening angle 70° Front Long-Range Radar Opening angle 90° / 9° Ultrasonic Sensors 12x Opening angle 120° 360°-Camera 4 Single Cameras L
Slide 81: We are 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 82: Fundamental building principles of our own operating system
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 Roadshow Presentation FY 2023 82
Slide 83: 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 Roadshow Presentation FY 2023 83
Slide 84: 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 Roadshow Presentation FY 2023 84
Slide 85: Delighting our customers with an extraordinary experience
Delighting our customers with an extraordinary experience The most desirable HARDWARE CANVAS … for the most desirable SOFTWARE CONTENT Roadshow Presentation FY 2023 85
Slide 86: 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 Roadshow Presentation FY 2023 86
Slide 87: 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 88: 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 89: 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 Roadshow Presentation FY 2023 89
Slide 90: 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 91: A 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 Roadshow Presentation FY 2023 91
Slide 92: 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) Roadshow Presentation FY
Slide 93: 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 94: 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 Roadshow Presentation FY 2023 94
Slide 95: 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 Roadshow Presentation FY 2023 95
Slide 96: MB.OS investment part of existing financial targets
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 97: 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 vision: Future proofing our valuable real estate Our focus: Delive
Slide 98: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation FY 2023 98
Slide 99: Mercedes-Benz Vans Strategy
Mercedes-Benz Vans Strategy WE OFFER THE WORLD’S MOST DESIRABLE VANS AND SERVICES TARGET EMBRACE LEAD LOWER premium segments and customers and in electric total cost base and focus on profitable grow lifetime drive and digital improve industrial growth revenues experience footprint Guided by economi
Slide 100: The Van business is commercially attractive
The Van business is commercially attractive MAR K E T S P L AY E R S Strong and growing Stable and concentrated Development LCV-market Top-3 players in Europe +25% expected in core markets, dominate approx. 70% from 2022 through to 2030* of the market C US T O M E R S P R O DUC T S Knowledgeable and
Slide 101: Our products keep the world running
Our products keep the world running Private Usage Services & Crafts Rental Deployment & Recreational Manufacturing Municipal Vehicles Private 20%* Commercial 80% CEP & Logistics Trade & eGrocery Construction People Mover Ordered according to sales volume of Mercedes Benz Vans in Germany 2021 * Priva
Slide 102: Mercedes-Benz Vans enjoys a unique position
Mercedes-Benz Vans enjoys a unique position Exceptional top-end Lead the industry product identity to all-electric future Best mix, strongest pricing, Grow top-end positioning highest residuals even further Favourable channel mix Expand profitable growth in U.S. and China Balanced market coverage Ad
Slide 103: Net carbon-neutral fleet of new vans
Net carbon-neutral fleet of new vans 2022 2030 2039 Net carbon-neutral > 50% BEV share* Net carbon-neutral production at our own fleet of new vans over plants worldwide the entire life cycle SUPPLY CHAIN & PRODUCTION & WELL-TO-TANK TANK-TO-WHEEL END OF LIFE RAW MATERIALS LOGISTICS * Wherever market
Slide 104: Transition plan towards electric-only: VAN.EA
Transition plan towards “electric-only” VAN.EA 2030 2026 Roadshow Presentation FY 2023 104
Slide 105: Electrification roadmap
Electrification roadmap 2010 2023 2026 2030 Introduction Electrification of every Van Launch of > 50% share of battery of first electric Vito segment & presentation of all-new, electric-only electric vehicles* new eSprinter architecture VAN.EA * Wherever market conditions allow, target Roadshow Pres
Slide 106: Raising our ambitions level: tackling costs at all levels
Raising our ambitions level: tackling costs at all levels C O MP AN Y O P E R AT IO N S P R O DUC T S FIXED COSTS HOURS PER VEHICLE (HPV) PORTFOLIO VARIANTS -20%* -25%* -30%* * By mid-decade vs. 2019 Roadshow Presentation FY 2023 106
Slide 107: Our financial ambitions for Mercedes-Benz Vans
Our financial ambitions for Mercedes-Benz Vans Guidance 15.1 14 11.2 12 8.3 ROS adjusted 6.0 1.9 2019 2020 2021 2022 2023 2024 mid-decade end of decade CCR adjusted 1.0 0.6 - 0.8 slightly lower level of 2023 Roadshow Presentation FY 2023 107
Slide 108: Agenda
AGENDA I. Results FY 2023 II. Outlook FY 2024 III. Strategy 1. Mercedes-Benz Cars 1.1 Luxury 1.2 Electrification 1.3 Automated Driving & Operating System 2. Mercedes-Benz Vans 3. Mercedes-Benz Mobility Roadshow Presentation FY 2023 108
Slide 109: Mercedes-Benz Mobility Strategy
Mercedes-Benz Mobility Strategy Roadshow Presentation FY 2023 109
Slide 110: Mercedes-Benz Mobility Role & Contribution
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 services
Slide 111: Mercedes-Benz Mobility Product Range
Mercedes-Benz Mobility Product Range As integral part of the Mercedes-Benz customer journey Financing | Leasing | Insurance | Fleet Management | Rental & Subscription | Charging Ecosystem | Payment Services Roadshow Presentation FY 2023 111
Slide 112: Appendix
Appendix Roadshow Presentation FY 2023 112
Slide 113: BBAC Joint Venture
BBAC (Beijing Benz Automotive Cooperation) Joint Venture − 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. − Product ranges from Compact, Midsize, and Large-mid Segment (E-
Slide 114: 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 115: 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