Mercedes-Benz Group (MBG) Investor presentation summary

FY 2021 performance

• Revenue was €168.0bn, up 9% YoY; adjusted EBIT reached €19.2bn, up 123% YoY, including the former truck and bus segment until deconsolidation.

• Free cash flow from industrial business was €8.6bn; net industrial liquidity ended the year at €21.0bn, up 18% YoY.

• Cars and Vans revenue increased 11% to €109.6bn; adjusted EBIT rose 105% to €13.9bn despite sales declining 5% to 2.33m units.

• Cars and Vans adjusted return on sales was 12.7% in 2021, versus 5.2% in 2020; higher net pricing and favorable product mix supported results, while semiconductor shortages constrained volumes.

• Mobility adjusted EBIT increased 116% to €3.4bn; contract volume fell 11% to €133.7bn, including a €16.8bn truck-related focus effect.

FY 2022 outlook

• Guidance assumes continued semiconductor-related supply constraints, strained supply chains and uncertainty from geopolitical and pandemic developments.

• Cars and Vans unit sales are expected slightly above 2021; adjusted RoS guidance is 11.5–13% for Cars and 8–10% for Vans.

• Mobility ROE guidance is 16–18%; Cars adjusted cash conversion rate is 0.8–1.0, and Vans is 0.6–0.8.

• Group revenue is expected slightly above 2021, EBIT at prior-year level, industrial free cash flow slightly below, and European fleet CO2 emissions at prior-year level.

Cars strategy and electrification

• Priorities include scaling EVs, accelerating car software, growing luxury business, easing supply constraints and maintaining cost discipline.

• The EV plan targets an all-electric alternative for every model by 2025 and a plug-in hybrid and BEV share of up to 50% in 2025; all-electric readiness is targeted by decade-end where market conditions allow.

• Three EV-only architectures are planned for 2025: MB.EA for medium and large cars, AMG.EA for performance vehicles, and VAN.EA for vans; MMA is planned as a compact electric-first architecture in 2024.

• Battery plans target more than 200 GWh of capacity and eight cell factories; a one-third stake in Automotive Cells Company supports a European cell and module capacity target of at least 120 GWh by decade-end.

• 2025 financial ambitions include fixed-cost reductions of more than 20% versus 2019, investment reductions of more than 20% versus 2019, double-digit RoS and a 0.7–0.9x cash conversion rate.