Mercedes Benz : Raport T1 2022 - transmis de SSIF TRADEVILLE

Interim Report Q1 2022

Contents
INTERIM MANAGEMENT REPORT	3 - 20
Business development	3
Important events	4
Profitability	6
Cash flows	11
Financial position	16
Risk and opportunity report	18
Outlook	19
INTERIM CONSOLIDATED
FINANCIAL STATEMENTS	21 - 45
Consolidated Statement of Income	21
Consolidated Statement of Comprehensive
Income	22
Consolidated Statement of Financial Position	23
Consolidated Statement of Cash Flows	25
Consolidated Statement of Changes in Equity	26
Notes to the Interim Consolidated
Financial Statements	28
AUDITOR'S REVIEW REPORT	46
INFORMATION ON THE INTERNET	47
Cover photo: The EQE sporty business Saloon.

Interim Management Report

• • Unit sales of Mercedes-Benz Cars of 487,000 vehicles significantly below the prior-year level

• • Unit sales of Mercedes-Benz Vans of 88,500 vehicles at the prior-year level

• • Revenue of €34.9 billion (Q1 2021: €32.9 billion)

• • Group EBIT of €5.2 billion (Q1 2021: €4.7 billion); adjusted Group EBIT of €5.3 billion (Q1 2021: €4.4 billion)

• • Net profit of €3.6 billion (Q1 2021: €3.5 billion)

• • Free cash flow of the industrial business of €1.2 billion (Q1 2021: €1.3 billion)

Business development

At the beginning of the year, the development of the global car market continued to be characterised by bottlenecks in the availability of semiconductors. In addition, the effects of the war in Ukraine have recently weighed on market development, especially in the Europe region.

In the first quarter, the global market was slightly below the prior-year level. However, the European market fell well short of the comparatively high level of the previ-ous year. The US market for cars and light trucks also recorded a significant loss compared to the previous year. There, too, the market level was still very robust in the first quarter of 2021, before the semiconductor cri-sis worsened later in the year. In the Chinese market, the current wave of covid-19 made itself increasingly felt in March; for the quarter as a whole, however, car sales were still significantly above the previous year's level.

These conditions also influenced key van markets. In the Europe region, market development decreased sharply both in the combined segment of mid-size and large vans and in the segment of small vans. The US market for large vans also contracted considerably. In China, a market volume roughly at the prior-year level was observed in the segment for mid-size vans.

Mercedes-Benz Cars sold 487,000 cars of the Mercedes-Benz and smart brands worldwide in the first quarter of 2022 (Q1 2021: 538,900). The drop in unit sales was mainly caused by global supply chain bottle-necks for semiconductors, while continuing high market demand. A total of 151,300 vehicles (Q1 2021: 165,400) were sold in Europe (European Union, United Kingdom, Switzerland and Norway). Mercedes-Benz Cars sold 50,000 vehicles in its core market of Germany (Q1 2021: 56,100). In China, which is Mercedes-Benz Cars' biggest sales market, unit sales reached 186,100 (Q1 2021: 208,100), while subject to the effects of supply chain bottlenecks for semiconductors and local lockdown measures. Mercedes-Benz Cars delivered 64,700 vehi-cles in the United States (Q1 2021: 72,800).

Mercedes-Benz Vans posted unit sales of 88,500 worldwide from January through March 2022 (Q1 2021: 88,400), despite ongoing supply bottlenecks for certain semiconductor components. At 52,700 units, unit sales in the core region of Europe (European Union, United Kingdom, Switzerland and Norway) were substantially lower than in the previous year (Q1 2021: 57,500). We sold 19,700 vehicles in Germany during this period (Q1 2021: 20,400). In North America (United States, Canada and Mexico), sales reached a record level of 17,400 units in the first quarter (Q1 2021: 11,100), driven, in particular, by a big rise in the United States to 14,800 units (Q1 2021: 9,500). In China, unit sales amounted to 8,100 vehicles and were thus slightly lower than in the prior year (Q1 2021: 8,500).

In the first quarter of 2022, the new business of Mercedes-Benz Mobility dropped sharply by 13% to €14.5 billion. One reason are the effects of the semicon-ductor-related supply bottlenecks and the slightly decreased proportion of leased and financed vehicles in unit sales. The fact that the prior-year figure still included the Daimler commercial vehicle business that was spun off and hived down must also be taken into consideration.

In North America, new business was significantly lower than in the previous year. This result was particularly affected by the spin-off and hive-down of the Daimler commercial vehicle business. In Germany, by contrast, new business was at the prior-year level, while it increased significantly in China. The spin-off and hive-down of Daimler's commercial vehicle business had no effects on Germany or China. At the end of March 2022, contract volume amounted to €134.4 billion and was thus at the same level as at the end of 2021. Athlon and Daimler Fleet Management had a total of 382,000 con-tracts at the end of the quarter. This corresponded to a contract volume of €6.6 billion.

The investments in property, plant and equipment of the Mercedes-Benz Group amounted to €0.9 billion in the first quarter of 2022 (Q1 2021: €1.2 billion). Of this amount, €0.8 billion (Q1 2021: €1.1 billion) was attributa-ble to Mercedes-Benz Cars and €18 million (Q1 2021: €29 million) to Mercedes-Benz Vans.

The research and development expenditure of the Mercedes-Benz Group amounted to €2.0 billion in the first quarter (Q1 2021: €2.4 billion), of which €0.6 billion (Q1 2021: €0.6 billion) was capitalised. At €1.9 billion (Q1 2021: €1.9 billion), Mercedes-Benz Cars accounted for a majority of the research and development expenditure. During the reporting period, Mercedes-Benz Vans had research and development expenditure of €84 million (Q1 2021: €119 million).

Important events

Daimler embarks on a new era as Mercedes-Benz Group

On 1 February 2022, Daimler AG became Mercedes-Benz Group AG. With its renaming, the company completed the historic realignment that began last year and was approved by the shareholders with an overwhelming majority. The new Mercedes-Benz Group is thus fully concentrating on its passenger car brands Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach and Mercedes-EQ as well as vans. As a focused manufac-turer with the most valuable luxury automotive brand in the world, the Group will be able to fully develop its economic potential in the future and better exploit its competitive strengths.

Parallel to the renaming of Daimler AG, Daimler Mobil-ity AG also received a new designation: Under the name Mercedes-Benz Mobility AG, the company offers mobil-ity services for passenger cars and vans in the areas of financing, leasing and insurance. In addition, the finance and mobility division enables Mercedes-Benz custom-ers to use their vehicles flexibly via rental and subscrip-tion models, fleet management and digital services for charging and payment.

Mercedes-Benz strengthens Supervisory Board with experts for sustainability and luxury-goods industry Two new members are to be appointed to the Supervi-sory Board of Mercedes-Benz Group AG. As the Com-pany announced on 23 February 2022, the current Supervisory Board members Bader M. Al Saad and Prof. Dr. Clemens Börsig will step down from their positions at the end of the 2022 Annual General Meeting, when their current periods of office expire. At that Annual General Meeting on 29 April 2022, Dame Polly Courtice and Marco Gobbetti will be proposed for election to the Supervisory Board as their successors.

Dame Polly Courtice graduated from the University of Cape Town and has a Master of Arts from Cambridge University. From 1989, she was Deputy Director - and from 2000 to 2021, Director - of the University of Cam-bridge Institute for Sustainability Leadership (CISL).

Marco Gobbetti holds a Bachelor in Business Adminis-tration from the American University of Washington D.C. Gobbetti began his career in management at Bottega Veneta, followed by CEO positions at luxury brands Valextra and Moschino. From 2017 to 2021, he was CEO of Burberry Group plc. Since January 2022, Marco Gob-betti has been CEO of Salvatore Ferragamo S.p.A.

New battery plant sets stage for EQS SUV production in the United States

On 15 March 2022, Mercedes-Benz opened a new bat-tery plant in Bibb County, Alabama, a few months ahead of the start of production of new all-electric Mercedes-EQ vehicles in the United States. The new battery factory underscores the importance of the United States within the Mercedes-Benz global produc-tion network and the status of Alabama as an export hub for luxury SUVs also in the electric era.

Mercedes-Benz will produce the EQS SUV and EQE SUV in Alabama, as part of a global push to produce eight all-electric vehicles at seven locations on three conti-nents. The state-of-the-art battery factory in Bibb County will supply batteries for these new models.

Mercedes-Benz Cars aims to slash CO2 emissions by more than 50% by end of this decade

At its first digital ESG (Environment, Social and Govern-ance) Conference for investors and analysts on 11 April 2022, Mercedes-Benz announced measures aimed at cutting CO2 emissions, creating lasting value for all stakeholders. The company aims to at least halve CO2 emissions per passenger car over the lifecycle by the end of this decade compared to 2020 levels. To achieve this goal, the key levers include: electrifying the vehicle fleet, charging with green energy, improving battery technology, an extensive use of recycled materials and renewable energy in production.