Mercedes-Benz Group (MBG) Fixed income presentation summary

Q3 performance

• Semiconductor shortages constrained Q3 sales to 578k units, down 25% YoY; revenue was €40.1bn, down 0% YoY.

• Net industrial liquidity rose to €23.5bn at 9/30/2021 from €20.9bn at 6/30/2021; Q3 industrial free cash flow was €2.249bn.

• Q3 resilience and financial flexibility improved while EV portfolio ramp-up continued across divisions.

Divisional performance

• Mercedes-Benz Cars & Vans sales fell 30% YoY to 471k units; revenue was €25.6bn, down 1%, and adjusted EBIT was €2.0bn with 7.8% adjusted ROS.

• Favorable product mix and net pricing offset semiconductor-related supply constraints and raw-material headwinds in Cars & Vans.

• Trucks & Buses sales rose 7% YoY to 106.4k units, while adjusted EBIT declined 19% to €489m; semiconductor shortages and unfavorable regional mix weighed on results.

• Mobility adjusted EBIT increased 57% YoY to €943m, driven mainly by lower refinancing costs; contract volume was €148.1bn, down 2%.

2021 outlook

• Worldwide demand conditions were expected to remain favorable, but supply-chain bottlenecks were expected to materially affect Q4 production; semiconductor supply was assumed to improve vs. Q3.

• Divisional guidance: Cars unit sales slightly below prior year, Vans at prior-year level and Trucks & Buses significantly above; adjusted ROS targets were 10–12% for Cars & Vans and 6–8% for Trucks & Buses.

• Mobility ROE guidance was 20–22%; adjusted cash conversion rate guidance was 0.8–1.0x for Cars & Vans and Trucks & Buses.

• Group guidance was significantly above prior guidance for revenue and EBIT; industrial free cash flow was at prior-year level, investment in PP&E slightly below, and R&D expenditure slightly above.