3rd Quarter Results 2023.

Mercedes-Benz Cars Q3 revenue dipped 3.8% on lower vehicle deliveries, narrowing adjusted Earnings Before Interest and Taxes to €3.3 billion (Q3 2022 €4.0 billion). The average selling price remained stable in Q3 compared to the prior-year quarter reaching approximately €74,600 (Q3 2022: €75,400) and even rose slightly from approximately €73,500 in the second quarter. Healthy net pricing partially offset slightly lower volumes and the change in model mix. A €329 million headwind from foreign exchange further dampened earnings. Overall sales of Mercedes-Benz Cars reached 1,529,800 units in the first nine months of the year (+2%), and 510,600 units (-4%) in the third quarter. Volumes were impacted by a model changeover for the E-Class and a supplier bottleneck which constrained availability of the GLC in particular.

Mercedes-Benz continues to defend its leadership position in the Top-End Vehicle segment where the S-Class enjoys a market share of above 50% in China. Overall, Top-End Vehicle sales are expected to increase on a full-year basis.

In Q3, S-Class wholesale deliveries were impacted by a seasonal slowdown, temporary certification matters and the macroeconomic environment. However, S-Class sales were up 9% in China and retail sales in the U.S. rose 48% in the quarter.

In the Top-End segment Mercedes-Benz sales reached 246,500 units (+6%) in the first nine months of the year and 69,900 units in Q3 (-11%) as Mercedes-AMG sales were impacted by model changeovers of the GLC, the E-Class and entry models in China. By contrast, Mercedes-AMG BEV sales rose by 51% in the third quarter. Mercedes-Benz continues to expand the market for Top-End electric vehicles, with the Mercedes EQS SUV seeing a 162% rise in sales with strong growth in all regions. In the U.S., registrations of the EQS outpaced those of its main Top End peers in the first nine months of the year.

In the Core segment, Q3 sales reached 290,200 units (-1%) and in the Entry segment sales reached 150,500 units (-5%) as the A- and B-Class models received a mid-lifecycle makeover. The company presented the AMG GT Coupe and an all-new E-Class Estate.

Mercedes-Benz Vans increased its global sales in the third quarter of 2023 to 105,100 units (+1%) thanks to a strong contribution from commercial vans. Global sales of all-electric vans doubled to 6,300 units (Q3 2022: 3,100). All-electric sales accounted for 6% of total sales. In the strategically important U.S. market, the division sold 21,800 (Q3 2022: 15,500) units reaching the best sales quarter ever. Thanks to solid net prices, improved product mix and lower raw material costs, EBIT increased to €715 million (+44%) and was able to offset inflation and supply chain-related cost increases. Adjusted for non-recurring items, EBIT rose by 36% to €743 million. Revenue was up to €4.9 billion, 15% higher than in the prior-year quarter. This development resulted in a Return on Sales of 14.5% and an adjusted RoS of 15% respectively. Third-quarter cash flow amounted to €980 million and adjusted cash flow amounted to €1.04 billion.

In the third quarter of 2023 Mercedes-Benz Mobility’s new business increased to €15.2 billion and is above the level of the prior-year period (Q3 2022: €14.3 billion). The contract volume of Mercedes-Benz Mobility amounted to €133.8 billion at the end of September, matching the level at the end of the previous year (FY 2022: €132.4 billion). At €363 million, the adjusted EBIT was below the previous years level (Q3 2022: €577 million), a decrease mainly caused by higher refinancing rates and intensified competition in the financial services sector. In addition, the cost of credit risk is elevated, driven by a weakening macroeconomic environment as well as higher delinquencies in some markets. This combined with negative foreign exchange effects, resulted in a decrease of the adjusted Return on Equity (RoE) to 10.4% (Q3 2022: 15.8%).