Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — Investor Day (February 2025)
20 slides from Mercedes-benz's investor day presentation, February 2025
Slide 1: Capital Market Day February 2025
— CAPITAL MARKET DAY — FEBRUARY 2025 — MERCEDES-BENZ —
Slide 2: Planning Assumptions: Macro and market environment to remain challenging
PLANNING ASSUMPTIONS M ACRO AN D M ARKET EN VI RON M EN T TO R E M AI N CH AL L E N G I N G I N TH E M E D I UM-TE R M * PREMIUM AND LUXURY AUTO MB SALES MACRO* INFLATION* TARIFFS* EXPECTATIONS MARKET* — CAPITAL MARKET DAY — — MERCEDES-BENZ — EUROPE Stable development USA Solid momentum CHINA Cautio
Slide 3: Mastering transition years and preparing for unprecedented product launches
PLANNING ASSUMPTIONS M ASTERI N G TRAN SI TI ON YEARS AN D PR E PAR I N G FOR UN PR E CE D E N TE D PR OD UCT L AUN CH E S GLOBAL SALES* 1,983 Volume Cautious outlook on China. — CAPITAL MARKET DAY — 1,299 Preparing product offensive to gain momentum in 2027. — MERCEDES-BENZ — 684 China Top-End Vehi
Slide 4: Solid revenue momentum – 2027
PLANNING ASSUMPTIONS SOL I D R E V E N UE M OM E N TUM 20 24 – 20 27 REVENUE* 108 — CAPITAL MARKET DAY — — MERCEDES-BENZ — ASP/Pricing Staying disciplined while staying competitive. Revenue Delivered CAGR of more than 2.5% between 2019 and 2024. 2024 2025 2026 2027 Gaining traction in 2027 driven by
Slide 5: Iconic brands and products as our resilient backbone
PLANNING ASSUMPTIONS I CON I C BRAN D S AN D PROD UCTS AS OUR RE SI L I E N T BACK BON E TO M ASTE R TH E TR AN SFOR M ATI ON STRONG PRODUCT PORTFOLIO* Top-End Segment Iconic products delivering outstanding margins. — CAPITAL MARKET DAY — — MERCEDES-BENZ — Core Segment Healthy contribution in compet
Slide 6: Next Level Performance
G 580 (energy consumption combined: 30.3-27.7 kWh/100 km | CO₂ emissions combined: 0 g/km | CO₂ class: A) — MERCEDES-BENZ — 6 Next Level Performance. We increase the resilience of our business. — CAPITAL MARKET DAY —
Slide 7: Industrial base tailored to market demand
NEXT LEVEL PERFORMANCE I N D USTRI AL BASE TAI L ORE D TO M ARKE T D E M AN D GLOBAL PRODUCTION CAPACITY 2024* RIGHTSIZING PRODUCTION FOOTPRINT* EUROPE/ AMERICA ASIA Sale of Hambach Rightsizing Germany REST OF WORLD and small volume plants in Optionality at partner plants & remote locations — CAPITA
Slide 8: Substantially optimizing production costs
NEXT LEVEL PERFORMANCE SUBSTAN TI AL L Y OPTI M I ZI N G PR OD UCTI ON COSTS DOUBLING THE LOW-COST PRODUCTION COSTS COUNTRY SHARE IN EU — CAPITAL MARKET DAY — 15% to 30% -10% > -10% — MERCEDES-BENZ — from Act 2024 vs. 2027 Act 2024 vs. Act 2022 2027 vs. Act 2024 Factor costs EUR/vehicle* Labor costs
Slide 9: Geopolitical hedge: increasing share of local-for-local production
NEXT LEVEL PERFORMANCE G EO PO L I TI CAL H ED G E: I N CREASI N G SH ARE O F L OCAL - FOR -L OCAL PROD UCTI ON FROM 6 0 % ( TOD AY) TO 70 % BY 20 27 USA our “Home of SUVs” GLOBAL PRODUCTION NETWORK 2027** Optional localization of additional product in Core segment. — CAPITAL MARKET DAY — Imported a
Slide 10: We tackle our material costs
NEXT LEVEL PERFORMANCE W E TACKL E OUR M ATE R I AL COSTS MATERIAL COST — CAPITAL MARKET DAY — Beat 2026: design-to-cost, strict standardization of REDUCTION — MERCEDES-BENZ — components and modules, low-cost country sourcing. > -8% Battery costs: -30% €/kWh reduced for MMA vs. predecessor and ambit
Slide 11: We continue to allocate our capital to the most promising segments
NEXT LEVEL PERFORMANCE W E CO N TI N UE TO AL L OCATE OUR CAPI TAL TO TH E M OST PR OM I SI N G SE G M E N TS 2019 – 2024 CAPEX AND R&D INVESTMENTS* Capex share of investments significantly down. — CAPITAL MARKET DAY — Investment peak in 2025 > -10% — MERCEDES-BENZ — driven by unprecedented product
Slide 12: Continued fundamental fixed cost savings
NEXT LEVEL PERFORMANCE CO N TI N UE D FUN D AM E N TAL FI X E D CO ST SAV I N G S AD D I TI O N AL > 1 0 % UN TI L 20 27 FIXED COST REDUCTION (NET OF INFLATION)* — CAPITAL MARKET DAY — — MERCEDES-BENZ — Headcount reduction using all levers -19% such as attrition, no replacements, voluntary redundanc
Slide 13: China – our home away from home: dominating the TEV market
NEXT LEVEL PERFORMANCE CH I N A – OUR H OM E AW AY FR OM H OM E : D OM I N ATI N G TH E TE V M AR K E T I N TH E FUTUR E Dominate Top-End MB No. 1 AMG No. 1 Highest average MSRP & TAP MB No. 1 Market Share >50% (>1.5mn RMB) in TOP25 Market in Performance Market among Premium OEMs in CAACS Survey 202
Slide 14: China – securing profitability of our China business
NEXT LEVEL PERFORMANCE CH I N A – OUR H OM E AW AY FR OM H OM E : SE CUR I N G PR OFI TABI L I TY OF OUR CH I N A BUSI N E SS BBAC (PbP*) — CAPITAL MARKET DAY — Leveraging open sourcing opportunities — MERCEDES-BENZ — from Chinese supply chain. RoS 2024: ~ 15% Further localization of products. Scali
Slide 15: Financial Framework and Capital Allocation
— CAPITAL MARKET DAY — — MERCEDES-BENZ — Financial Framework and Capital Allocation 15
Slide 16: Margins back to double-digit because it's Mercedes-Benz
FINANCIAL FRAMEWORK AND CAPITAL ALLOCATION M ARG I N S BACK TO D OUBL E -D I G I T BE CAUSE I T‘S M ERCED ES-BE N Z RoS in % MB CARS MARGIN CORRIDOR** MASTERING TRANSFORMATION ≥ 10% Prudent macro and — CAPITAL MARKET DAY — — MERCEDES-BENZ — market perspective. 10 Product momentum materializing in sa
Slide 17: MB Group generated >100% total shareholder return between 2019 and 2024
FINANCIAL FRAMEWORK AND CAPITAL ALLOCATION M B G RO UP G EN ERATED > 1 00% TOTAL SH AREH OL D ER R E TUR N BE TW E E N 20 1 9 AN D 20 24 CASH GENERATED CASH RETURN TO NET SINCE 2019* SHAREHOLDERS* LIQUIDITY3 TOTAL SHAREHOLDER — CAPITAL MARKET DAY — RETURN — MERCEDES-BENZ — >€45 bn 2019 – 2024 >30% S
Slide 18: Benchmark capital allocation framework in place
FINANCIAL FRAMEWORK AND CAPITAL ALLOCATION BE N CH M AR K CAPI TAL AL L OCATI ON FR AM E W OR K I N PL ACE CAPITAL ALLOCATION* — CAPITAL MARKET DAY — Capital allocation framework in place. — MERCEDES-BENZ — €5 bn SHARE BUYBACK Dividend of €4.30 + equivalent to 41% payout ratio. €4.30 New share buyba
Slide 19: Because it's Mercedes-Benz
— CAPITAL MARKET DAY — — MERCEDES-BENZ — Because it’s Mercedes-Benz The Perfect Blend of Luxury and Tech 19
Slide 20: Iconic brands: the perfect blend of luxury and tech
ICONIC BRANDS M ERCED ES-BE N Z TH E PE R FE CT BL E N D OF L UX UR Y AN D TE CH Iconic brand and desirable products. — CAPITAL MARKET DAY — — MERCEDES-BENZ — Tech leadership, today and tomorrow. Global presence, regionally embedded. Roadmap to double-digit RoS. Exceptional cash generation, 30+ bn l