Mercedes-Benz Group (MBG) Investor presentation summary

Q1 2021 performance

• Group sales rose 13% YoY to 729,000 units and revenue increased 10% to €41.0bn; adjusted EBIT reached €5.0bn, up 591%.

• Industrial free cash flow was €4.1bn versus an outflow of €2.3bn in Q1 2020; net industrial liquidity rose to €20.1bn from €9.3bn.

• Cars & Vans sales increased 15% to 627,000 units and revenue rose 16% to €26.9bn; adjusted EBIT was €3.8bn and adjusted CFBIT €3.1bn.

• Trucks & Buses adjusted EBIT more than doubled to €518m; Mobility adjusted EBIT increased to €691m from €58m, with new business up 4% to €16.8bn.

• Cars & Vans adjusted ROS was 14.3% and Trucks & Buses adjusted ROS 6.0%; Mobility adjusted ROE was 18.7%.

2021 outlook

• Guidance assumes gradual normalization of key markets and global recovery from 2020 pandemic-related weakness, supported in part by wider vaccine availability.

• Car, van and EU30 heavy-duty truck markets were expected to increase significantly; North American truck markets were also expected to grow significantly, while Japan was seen at the prior-year level and Brazil slightly higher.

• Group revenue and EBIT were expected significantly above prior year; industrial free cash flow significantly above, investment at prior-year level, R&D slightly above and CO2 emissions significantly below.

• Divisional guidance: Cars & Vans adjusted ROS 10–12%, Trucks & Buses 6–7%, Mobility ROE 14–15%; adjusted cash conversion rates were 0.7–0.9x and 0.8–1.0x, respectively.

Strategic priorities and separation

• Project Focus planned a separate Daimler Truck listing and distribution of shares to existing shareholders; a majority free float and loss of control were intended, with a retained minority stake and no shareholder investment or proceeds to Daimler.

• The Daimler Truck spin-off and Frankfurt listing were targeted for completion by year-end 2021, following a planned extraordinary shareholder meeting and spin-off vote in fall 2021.

• Cars strategy centered on luxury positioning, profitable growth, electric drive and proprietary MBOS software; Truck priorities included core-business focus, global growth, services, technology and a leaner organization.

• Trucks planned a China-focused heavy-duty truck through BFDA, with production at a new Huairou plant targeted in two years and joint-venture investment above RMB 3.8bn.

• Cellcentric was established with Volvo Group for fuel-cell systems; Cummins was to provide global medium-duty engine systems and establish a plant at the Mannheim campus.