Mercedes-Benz Group (MBG) Fixed income presentation summary

FY 2020 performance

• Sales fell 15% YoY to 2.84m units and revenue fell 11% to €154.3bn; EBIT rose 53% to €6.6bn, while adjusted EBIT was €8.6bn, down 16%.

• Free cash flow from the industrial business was €8.3bn, up 504% YoY; net industrial liquidity increased 62% to €17.9bn.

• Industrial free cash flow was €8.259bn; adjusted free cash flow was €9.155bn, with legal proceedings contributing €896m to the reconciliation.

• Restructuring activity increased, divisional strategies were refocused, and significant earnings progress was expected in 2021.

Divisional results

• Mercedes-Benz Cars & Vans revenue was €98.6bn, down 8% YoY; adjusted EBIT was €6.2bn, down 13%, while adjusted CFBIT more than tripled to €7.9bn.

• Mercedes-Benz passenger-car xEV sales tripled worldwide, China sales reached a new record, and the division met European passenger-car CO2 targets in 2020.

• Daimler Trucks & Buses sales fell 27% to 379,000 units and revenue fell 22% to €34.7bn; adjusted EBIT fell 75% to €678m, while adjusted CFBIT was €2.5bn.

• Daimler Mobility new business fell 9% to €67.8bn, contract volume fell 8% to €150.6bn, and adjusted EBIT fell 13% to €1.6bn; higher credit-risk costs were a key pressure.

2021 outlook

• Guidance assumed continued market normalization without further pandemic setbacks; semiconductor bottlenecks were expected to affect sales mainly in Q1, with lost production anticipated to be recovered by year-end.

• Revenue and EBIT were forecast significantly above prior-year levels, and industrial free cash flow significantly above; investment in PP&E was expected at prior-year level and R&D slightly above.

• Adjusted Mercedes-Benz Cars & Vans return on sales guidance was 8–10%; Trucks & Buses 6–7%; Daimler Mobility return on equity 12–13%.