Mercedes-Benz Group (MBG) Investor presentation summary

Q2 2021 performance

• Revenue reached €43.5bn, up 44% YoY; EBIT was €5.2bn and adjusted EBIT €5.4bn, versus losses in Q2 2020.

• Industrial-business free cash flow was €6.1bn; net industrial liquidity was €20.9bn at June 30, 2021, up 17% from year-end 2020.

• Mercedes-Benz Cars & Vans sales rose 29% to 620,000 units and revenue increased 49% to €28.2bn; adjusted EBIT was €3.6bn and adjusted return on sales was 12.8%.

• Truck and bus sales rose 91% to 116,800 units; revenue increased 61% to €10.0bn and adjusted EBIT reached €831mn, versus a €747mn loss in Q2 2020.

• Mobility adjusted EBIT increased 197% to €930mn; new business rose 23% to €17.2bn, while contract volume remained €150.6bn.

Business and market outlook

• FY 2021 assumptions included gradual economic normalization and continued semiconductor supply constraints in H2, with low visibility on supply developments.

• Group guidance called for revenue and EBIT significantly above prior year, industrial free cash flow slightly below, investment in PP&E at prior-year level, R&D significantly above and CO2 emissions significantly below.

• Adjusted FY return-on-sales guidance: Cars & Vans 10–12%; Trucks & Buses 6–8%. Mobility ROE guidance was 17–19%.

• Adjusted cash conversion rate guidance was 0.7–0.9x for Cars & Vans and 0.8–1.0x for Trucks & Buses.

Planned separation

• The planned transaction would distribute a majority stake in the truck business to existing shareholders, separately list it in Frankfurt and leave a minority holding; no shareholder investment or proceeds were planned.

• The intended spin-off targeted year-end 2021, with independent governance and strong net liquidity positions for both businesses.

• The separation aimed to sharpen strategic focus, financial discipline and value creation across the two businesses.