Annual Report 2024
Mercedes-Benz International Finance B.V.
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Contents
Annual Management Report
04
Financial Statements
08
Statement of Income and
Statement of Comprehensive Income/Loss
09
Statement of Financial Position
10
Statement of Cash Flows
11
Statement of Changes in Equity
12
Notes to the Financial Statements
13
01. Material accounting policies
13
02. Accounting estimates and management judgments
20
03. Interest income and expense
21
04. Other financial income and expense
22
05. General administrative expense
22
06. Income taxes
23
07. Property, plant and equipment
23
08. Receivables from Mercedes-Benz Group companies
23
09. Cash and cash equivalents
24
10. Issued capital
24
11. Share premium reserve
24
12. Cash flow hedge reserve
24
13. Retained earnings
25
14. Undistributed income
25
15. Debt securities
25
16. Liabilities due to Mercedes-Benz Group companies
26
17. Interest payables and other liabilities
26
18. Contingent liabilities
26
19. Financial instruments
26
20. Management of risks
33
21. Capital management
36
22. Related party disclosures
36
23. Remuneration of the Board of Management and the Supervisory Board
37
24. Segment Information
37
Other Information
39
Independent Auditor’s Report
40
Statutory rules as to appropriation of result
40
Responsibility Statement
41
Declaration by the Supervisory Board
42
Annual Report 2021 · Mercedes-Benz Group
ANNUAL
MANAGEMENT
REPORT
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Annual Management Report
Corporate profile
Mercedes-Benz International Finance B.V., (the “Company”) was incorporated in the
Netherlands on April 4, 1986. With effect from January 1, 2023, Mercedes-Benz Group AG as
sole shareholder transferred the ownership of the Company to its subsidiary Mercedes-Benz
Capital Investments B.V. Since 1 January 2023 the Company is part of the fiscal unity for
corporate income tax together with Mercedes-Benz Group companies located in the
Netherlands. The purpose of the Company is to assist the financing of business activities
conducted by companies of the Mercedes-Benz Group and to provide financial services in
connection therewith. The Company’s goal is to mitigate the related market risks, especially
interest rate and currency risk, and liquidity risk associated with financial instruments by
applying the matched funding principle and by using derivative financial instruments, such as
interest rate swaps and foreign exchange swaps.
Given its objectives and strategy, the Company is economically interrelated with the ultimate
parent company, Mercedes-Benz Group AG, Germany. In assessing the general risk profile of
the Company, the solvency of the Mercedes-Benz Group as a whole needs to be considered.
The liquidity is assured by managing and monitoring the liquidity position on the basis of a
rolling cash flow forecast. The derived funding requirements are secured by a spectrum of
various debt instruments issued on the international money and capital market. The debt
securities are guaranteed by Mercedes-Benz Group AG.
The Financial Statements of the Company have been prepared in accordance with Part 9 of
Book 2 of the Dutch Civil Code and comply with the International Financial Reporting
Standards as issued by the IASB (“IFRS Accounting Standards”) as adopted by the European
Union.
At the end of 2024, the Company employed 3 people (2023: 3).
Business development
In the year 2024, the Company’s Financial result of euro 47.1 million (2023: euro 47.5 million)
equals the prior-year level. In 2024, the Company received a compensation payment of euro
35 million from its shareholder Mercedes-Benz Capital Investments B.V. (2023: no
compensation payments were paid nor received). General administrative expense were in line
with last year at euro 1.7 million (2023: euro 1.6 million).
The Income tax expense of euro 26.1 million (2023: euro 29.5 million) decreased primarily due
to the lower foreign taxes. Altogether, this results in a Net income of euro 19.4 million (2023:
euro 16.3 million).
The Other comprehensive income was comprised of unrealized gains and losses as well as
reclassifications from cash flow hedges. In 2024 the Company recorded a negative Other
comprehensive income of euro 37.9 million in comparison with a also negative Other
comprehensive income of euro 117.5 million in the previous year.
The balance sheet total decreased compared with December 31, 2023 from euro 26,812
million to euro 22,734 million. This decrease of 15.2% in total assets relates to a decline in
financing activities for Mercedes-Benz Group companies performed by the Company.
Company’s Receivables were partly refinanced by loans from affiliated companies. Respective
loan outstanding per yearend declined from euro 4,837 million in the previous year to euro 150
5
million in 2024.
In 2024, the company issued 10 bonds in a total nominal amount of euro 6 billion.
The Company’s equity decreased compared with December 31, 2023 from euro 601 million to
euro 582 million. The negative effect in equity relates primarily to a loss in Other comprehensive
income of euro 37.9 million.
The net positive cash flow from operating activities in the amount of euro 4,213 million (2023:
positive euro 268 million) was largely influenced by the decrease in Receivables from
Mercedes-Benz Group companies, while the negative cash flow from financing activities in the
amount of euro 4,215 million (2023: euro 265 million) was driven by the related development
of Debt Securities and loans from affiliates.
Risk and opportunity report
The Company is primarily exposed to financial risks that are directly and indirectly linked to the
business development of the Mercedes-Benz Group and the international financial markets.
Non-financial risks could arise from operating risks such as the risk of fraud and compliance
risk.
The Company has aligned its risk and opportunity management system with the Mercedes-Benz
Group to identify business risks and opportunities at an early stage and to assess, control and
manage them consequently. This is integrated into the value-based management and planning
system of the Mercedes-Benz Group and is an integral part of the overall planning, management
and reporting process in the Company. Standardized rules and procedures are consistently
applied in line with the internationally recognized COSO framework for internal control systems.
The Company identified no risks which threaten the going concern status or have a materially
adverse impact on its liquidity or capital resources as well as financial performance or position.
The financial management aims to minimize the impact of fluctuations in interest rate and
currency price on the earnings of the Company by matching amounts and maturities (natural
hedges) or using derivative financial instruments based on exposure assessments. The
Company manages its liquidity by holding adequate volumes of cash and by applying as far as
possible the matched funding principle. In accordance with internal guidelines, this ensures
that financial liabilities generally have at least the same maturity profile as the financial assets,
and thus reduces the Company’s liquidity risk.
The Company’s exposure to credit risk is mainly influenced by the Mercedes-Benz Group related
default risk, as the Company solely provides loans to Mercedes-Benz Group companies which
are managed based on internal limit systems and guaranteed by Mercedes-Benz Group AG. The
credit risk from deposits or financial derivatives are steered based on Mercedes-Benz Group’s
global counterparty limits.
Risk of fraud is mainly identified in the area of management override of control. This risk is
addressed by design and implementation of the internal control measures on operational and
organisational level which address relevant compliance topics, including fraud prevention.
As part of the Mercedes-Benz organization, the Company has implemented all compliance
principles, as set out in binding form in the Group’s Integrity Code. This framework contains
6
central corporate principles of behavior that Mercedes-Benz expects all of its employees and
business partners to adhere to out of a sense of conviction. Mercedes-Benz’s goal is to maintain
a common understanding of ethical behavior in order to reduce risks and help ensure the
Group’s sustained success. This also means acting in accordance with laws and regulations
within the daily business activities. Among other things, the guideline includes the compliance
with anti-corruption regulations, data protection laws, equal treatment rules, sanctions and the
prevention of money laundering.
Outlook
The Company is expected to maintain its current core activities and will actively support all
major changes in the treasury operation deemed necessary to ensure the sustainable efficiency
and effectiveness of financing capital use within the Mercedes-Benz Group. Hand in hand with
the business the number of newly contracted interest rate and foreign exchange derivatives is
expected to develop.
Financial result from Company’s operating activities is generally expected to evolve in line with
its balance sheet development. Persisting market price volatility however might put pressure
on Company’s financial performance if interest rate increases cannot be passed on in full.
Changes in the fair value of derivative financial instruments accounted for in Other
comprehensive income due to the application of CF hedge accounting will impact the Equity
position of the Company.
This annual report contains forward-looking statements based on current expectations of the
management. Various known and unknown risks, uncertainties and other factors could lead to
considerable differences between the future results, financial situation development and/or
performance and the historical results presented. Undue reliance should not be placed on
forward-looking statements which speak only as of the date of this report.
Diversity of Board members
The Board of Management and the Supervisory Board are unbalanced since less than 30% of
its members are female. The Board members have been appointed based on qualifications and
availability, irrespective of gender. In order to create more balance, the Boards will take these
regulations (“Diversiteitswet”) into account to the extent possible for future appointments of
Board members.
Climate change
Given the nature of the Company the Board of Management believes there is no significant
impact on the operations. The Company had no CSRD reporting obligations to observe in the
reporting period, but will closely follow the implementation into local legislation in the future.
7
FINANCIAL
STATEMENTS
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Financial Statements • Statement of Income and Statement of Comprehensive Income/Loss
in euro thousand
Note
2024
2023
1,894,200
Interest income Mercedes-Benz Group companies
1,620,710
Interest income third parties
28,075
23,828
Interest income
3
1,922,275
1,644,538
Interest expense Mercedes-Benz Group companies
-1,392,119
-1,273,070
-483,821
Interest expense third parties
-327,205
Interest expense
3
-1,875,940
-1,600,275
Net interest income
3
46,335
44,263
Other financial income and expense
4
769
3,222
Financial result
47,104
47,485
General and administrative expenses
5
-1,656
-1,649
Income before taxation
45,448
45,836
6
-26,087
Income taxes
-29,520
Net income
19,361
16,316
Other comprehensive income/loss
Derivative financial instruments
Unrealized gains/losses (pre-tax)
-65,007
-245,880
Reclassifications to profit and loss (pre-tax)
13,884
87,469
Taxes on unrealized gains/losses and on reclassifications
13,190
40,870
Derivative financial instruments (after tax)
12
-37,933
-117,541
Total comprehensive income/loss
-18,572
-101,225
The Total comprehensive income is attributable to the shareholder of the Company.
9
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Financial Statements • Statement of Financial Position (before appropriation of result)
Assets
Note
31.12.2024
31.12.2023
in euro thousand
7
246
Property, plant and equipment
291
Receivables from Mercedes-Benz Group companies
8
8,456,196
10,449,235
Derivative assets
19
309,879
239,945
Deferred tax assets
6
7,640
-
Total non-current assets
8,773,961
10,689,471
8
13,863,717
Receivables from Mercedes-Benz Group companies
15,886,485
Derivative assets
19
92,799
230,266
Cash and cash equivalents
9
3,869
5,486
Total current assets
13,960,385
16,122,237
Total assets
22,734,346
26,811,708
Equity and liabilities
Note
31.12.2024
31.12.2023
in euro thousand
Issued capital
10
500
500
Share premium reserve
11
500,000
500,000
Cash flow hedge reserve
12
-21,815
16,119
Retained earnings
13
84,087
67,771
Undistributed income
14
19,361
16,316
Total equity
582,133
600,706
Debt securities
15
14,792,159
14,824,502
Liabilities due to Mercedes-Benz Group companies
16
50,000
173,638
19
451,239
Derivative liabilities
767,866
Deferred tax liabilities
6
-
5,549
Total non-current liabilities
15,293,398
15,771,555
Debt securities
15
6,524,896
5,558,422
Liabilities due to Mercedes-Benz Group companies
16
120,229
4,698,087
Derivative liabilities
19
211,818
179,525
17
1,872
Other liabilities
3,413
Total current liabilities
6,858,815
10,439,447
Total equity and liabilities
22,734,346
26,811,708
10
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Financial Statements • Statement of Cash Flows
in euro thousand
Note
2024
2023
Net income/loss
19,361
16,316
Adjustments for non-cash items
Interest income
-1,922,275
-1,644,538
Interest expense
1,875,940
1,600,275
Other financial income and expense
-769
-3,222
26,087
Income taxes
29,520
Changes in operating assets and liabilities
Additions to Receivables from Mercedes-Benz Group companies
-87,160,408
-52,341,924
Repayment of Receivables from Mercedes-Benz Group companies
91,384,963
52,766,783
Other liabilities
-1,864
-2,897
Derivative foreign currency received
687,006
960,689
Derivative foreign currency paid
-659,876
-1,005,276
Interest received
1,942,648
1,485,448
Interest paid
-1,949,814
-1,568,660
Tax paid
-27,647
-24,108
Cash used for/provided by operating activities
4,213,352
268,406
Cash flows from financing activities
Additions to Debt securities
5,930,752
5,071,401
Repayment of Debt securities
-5,437,936
-7,488,222
Additions to Liabilities due to Mercedes-Benz Group companies
43,332,215
41,963,263
-48,040,000
Repayment of Liabilities due to Mercedes-Benz Group companies
-39,811,000
Cash inflow/outflow from financing activities
-4,214,969
-264,558
Net increase/decrease in Cash and cash equivalents
-1,617
3,848
Cash and cash equivalents at January 1
5,486
1,638
Cash and cash equivalents at December 31
9
3,869
5,486
11
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Financial Statements • Statement of Changes in Equity
in euro thousand
Issued
Share
Cash flow
Retained
Undis-
Total
capital
premium
hedge
earnings
tributed
equity
reserve
reserve
income
Balance at January 1, 2023
500
500,000
133,660
63,066
4,705
701,931
Net income/loss
-
-
-
-
16,316
16,316
Other comprehensive income/loss after tax
-
-
-117,541
-
-
-117,541
Total comprehensive income/loss
-
-
-117,541
-
16,316
-101,225
Appropriation of results 2022
-
-
-
4,705
-4,705
-
Balance at December 31, 2023
500
500,000
16,119
67,771
16,316
600,706
Balance at January 1, 2024
500
500,000
16,119
67,771
16,316
600,706
Net income/loss
-
-
-
-
19,361
19,361
Other comprehensive income/loss after tax
-
-
-37,933
-
-
-37,933
Total comprehensive income/loss
-
-
-37,933
-
19,361
-18,572
Appropriation of results 2023
-
-
-
16,316
-16,316
-
Balance at December 31, 2024
500
500,000
-21,815
84,087
19,361
582,133
12
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
01. Material accounting policies
General information
Mercedes-Benz International Finance B.V. is a private limited company under the laws of the
Netherlands. The Company is entered in the Commercial Register of the Chamber of Commerce
under No. 30078162 and its registered office is located at Ravenswade 4, Nieuwegein, The
Netherlands. The issued share capital is fully owned by the parent company Mercedes-Benz
Capital Investments B.V. With effect from January 1, 2023 Mercedes-Benz Group AG as sole
shareholder transferred the ownership of the Company to its subsidiary Mercedes-Benz Capital
Investments B.V.. The Supervisory Board comprised the three members: Frank Wetter
(chairman), Jürgen Vogt and Dr. Stephanie Pfeifer. The purpose of the Company is to assist the
financing of business activities conducted by Mercedes-Benz Group companies and to provide
financial services in connection therewith. During the year, the Company employed 3 persons
in the Netherlands (2023: 3 persons).
The Financial Statements of the Company are presented in euros. Unless otherwise stated, all
amounts are reported in thousands of euros. All figures shown are rounded in accordance with
standard business rounding principles.
The Board of Management authorized the Financial Statements for issue on April 28, 2025.
Basis of preparation
Applied IFRS
The Financial Statements of the Company have been prepared in accordance with Part 9 of
Book 2 of the Dutch Civil Code and comply with the International Financial Reporting Standards
as issued by the IASB’ (“IFRS Accounting Standards”) as adopted by the European union.
IFRS issued, EU endorsed and initially adopted in the reporting period
New and amended standards adopted by the Company
⦁
Classification of Liabilities as Current or Non-current and Non-current liabilities with
covenants – Amendments to IAS 1;
⦁
Lease Liability in Sale and Leaseback – Amendments to IFRS 16; and
⦁
Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.
New standards and interpretations not yet adopted
⦁
Amendments to IAS 21 -- Lack of Exchangeability
⦁
Amendments to the Classification and Measurement of Financial Instruments –
Amendments to IFRS 9 and IFRS 7
⦁
IFRS 19 Subsidiaries without Public Accountability: Disclosures
⦁
IFRS 18 Presentation and Disclosure in Financial Statements
Comparison with previous year
The applied valuation and determination of results principles have remained unchanged
compared to the previous year, except for the applied changes in accounting policies and
estimates as included in the respective paragraphs.
13
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Disclosure of changes in accounting policies
As at December 31, 2024, non-derivative financial instruments are reported including the
corresponding accrued interest. As a result, accrued interest expenses in particular, which
relate to financing liabilities and were previously reported separately under “Interest payables
and other liabilities”, will be reported under “Debt securities”. As at December 31, 2023, euro
202 million was reclassified from “Interest payables and other liabilities” to “Debt securities”
to improve comparability.
Presentation
Presentation in the Statement of Financial Position differentiates between current and non-
current assets and liabilities. Assets and liabilities are classified as current if they are expected
to be realized or settled within one year or within a longer and normal operating cycle. Deferred
tax assets and liabilities and similar obligations are generally presented as non-current items.
The Statement of Income is presented by function.
Measurement
The Financial Statements have been prepared on the historical-cost basis with the exception
of certain items such as financial assets measured at fair value through profit or loss, derivative
financial instruments and hedged items. The measurement models applied to those exceptions
are described below.
Foreign currency translation
Transactions in foreign currency are translated at the relevant foreign exchange rates prevailing
at the transaction date to the functional currency EUR. In subsequent periods, assets and
liabilities denominated in foreign currency are translated using period-end exchange rates. The
gains and losses from this measurement are recognized in profit and loss (note 4).
Accounting policies
The accounting policies applied in the Financial Statements comply with the IFRS required to
be applied in the EU as of December 31, 2024.
Financial result
The Financial result comprises the Interest result (note 3), and the Other financial income and
expense (note 4).
The Interest result is the difference between Interest income and Interest expense. The Interest
income comprises interest income on funds invested. The Interest expense includes interest
expense on borrowings. The Interest income and expense are recognized as they accrue in
profit or loss, using the effective interest method.
The Other financial income and expense consists of exchange rate differences of assets and
liabilities in foreign currency. Foreign currency gains and losses are reported on a net basis.
Income taxes
The Income taxes (note 6) are comprised of current income taxes and deferred taxes.
Current income taxes are calculated based on the local taxable income and local tax rules for
the period. In addition, current income taxes presented for the period include adjustments for
uncertain tax payments or tax refunds for periods not yet finally assessed, however, excluding
interest expenses and interest refunds and penalties on the underpayment of taxes.
14
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Changes in deferred tax assets and liabilities are generally recognized through profit and loss
in deferred taxes in the Statement of Income. Taxes on items directly recognized in equity are
likewise recognized in equity instead of the Statement of Income.
Deferred tax assets or liabilities are calculated on the basis of temporary differences between
the tax basis and the carrying amount of assets and liabilities. Measurement is based on the
tax rates expected to be effective in the period in which an asset is recognized or a liability is
settled. For this purpose, the tax rates and tax rules are used which have been substantively
enacted at the reporting date or are soon to be enacted. The Company recognizes a valuation
allowance for deferred tax assets when it is unlikely that a corresponding amount of future
taxable profit will be available against which the deductible temporary differences, tax loss
carryforwards and tax credits can be utilized.
Property, plant and equipment
The Property, plant and equipment (note 7) are measured at acquisition costs less accumulated
depreciation. If necessary, accumulated impairment losses are recognized.
Leasing
Leases include all contracts that transfer the right to use a specified asset for a stated period
of time in exchange for consideration, even if the right to use such asset is not explicitly
described in the contract. The Company is a lessee of real estate property, namely its office.
The cost of a right-of-use asset comprises the present value of the outstanding lease payments
plus any lease payments made at or before the commencement date less any lease incentives
received, any initial direct costs and an estimate of costs to be incurred in dismantling or
removing the underlying asset. In this context, the Company also applies the practical
expedient that the payments for non-lease components are generally recognized as lease
payments. If the lease transfers ownership of the underlying asset to the lessee at the end of
the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a
purchase option, the right-of-use asset is depreciated to the end of the useful life of the
underlying asset. Otherwise, the right-of-use asset is depreciated to the end of the lease term.
Lease liabilities, which are assigned to Liabilities due to Mercedes-Benz Group companies (note
16), are measured initially at the present value of the lease payments. Subsequent
measurement of a lease liability includes the increase of the carrying amount to reflect interest
on the lease liability and reducing (while affecting the Other comprehensive income) the
carrying amount to reflect the lease payments made.
According to IFRS 16, the depreciation of right-of-use assets and the lease expenses of leases
are recognized within the General administrative expense (note 5). The interest due on the
lease liability is a component of interest expense.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability of another entity. Financial instruments in the form of financial assets and
financial liabilities are generally presented separately. Financial instruments are recognized as
soon as the Company becomes a party to the contractual provisions of the financial instrument.
In the case of purchases or sales of financial assets through the regular market, the Company
uses the transaction date as the date of initial recognition or de-recognition.
15
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Upon initial recognition, the financial instruments are measured at fair value. For the purpose
of subsequent measurement, the financial instruments are allocated to one of the categories
mentioned in IFRS 9 Financial Instruments (financial assets measured at amortized cost,
financial assets measured at fair value through other comprehensive income and financial
assets measured at fair value through profit or loss). Transaction costs directly attributable to
acquisition or issuance are considered by determining the carrying amount if the financial
instruments are not measured at fair value through profit or loss.
Financial assets
Financial assets primarily comprise the Receivables from Mercedes-Benz Group companies
(note 8) and the Derivative assets (note 19). The classification of financial instruments is based
on the business model in which these instruments are held and on their contractual cash flows.
The determination of the business model is made at the portfolio level and is based on past
transaction patterns. The assessments of the contractual cash flows are made on an instrument
by instrument basis.
Financial assets at amortized cost are initially recognized at fair value and subsequently
measured at amortized cost using the effective interest rate method. Financial assets at
amortized cost are non-derivative financial assets with contractual cash flows that consist
solely of payments of principal and interest on the principal amount outstanding and which are
held with the aim of collecting the contractual cash flows, such as the Receivables from
Mercedes-Benz Group companies or the Cash and cash equivalents (business model “hold to
collect”). The intergroup cash position is reflected in the Inhouse Bank position with Mercedes-
Benz Group AG as the sub-item of the Receivables from Mercedes-Benz Group companies. Cash
and cash equivalents consist of cash at bank accounts which are not part of the Global Payment
Platform of Mercedes-Benz Group AG. The cash positions correspond with the classification in
the Statement of Cash Flows.
Recognition and derecognition, regular way purchases and sales of financial assets are
recognized on trade date, being the date on which the group commits to purchase or sell the
asset. Financial assets are derecognized when the rights to receive cash flows from the
financial assets have expired or have been transferred and the group has transferred
substantially all of the risks and rewards of ownership.
After initial recognition, financial assets at amortized cost are subsequently carried at
amortized cost using the effective interest method less any loss allowances. Gains and losses
are recognized in the Statement of Income when the financial assets at amortized cost are
impaired or derecognized. Interest effects on the application of the effective interest method
are also recognized in profit or loss as well as effects from foreign currency translation.
Financial assets at fair value through profit or loss are initially recognized at fair value and
subsequently measured at fair value. Financial assets at fair value through profit or loss include
financial assets with cash flows other than those of principal and interest on the principal
amount outstanding. Furthermore, financial assets that are held in a business model other than
“hold to collect” or “hold to collect and sell” are included here. In addition, derivatives, which
are not classified as hedging instruments in hedge accounting, are included here. Gains or
losses on these financial assets are recognized in profit or loss. Financial assets at fair value
through profit and loss are derecognized when the rights to receive cash flows from the
financial assets have expired or have been transferred and the group has transferred
substantially all of the risks and rewards of ownership.
16
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Financial assets at fair value through other comprehensive income are initially recognized at fair
value and subsequently measured at fair value. Financial assets at fair value through other
comprehensive income are non-derivative financial assets with contractual cash flows that
consist solely of payments of principal and interest on the principal amount outstanding which
are held to collect the contractual cash flows as well as to sell the financial assets, e.g. to
achieve a defined liquidity target (business model “hold to collect and sell”). Financial assets
at fair value through other comprehensive income are derecognized when the rights to receive
cash flows from the financial assets have expired or have been transferred and the group has
transferred substantially all of the risks and rewards of ownership.
After initial measurement, financial assets at fair value through other comprehensive income
are measured at fair value, with unrealized gains or losses being recognized in the other
comprehensive income/loss. Upon disposal of financial assets, the accumulated gains and
losses recognized in the other comprehensive income/loss resulting from measurement at fair
value are recognized in profit or loss. Interest earned on financial assets at fair value through
other comprehensive income is reported as interest income using the effective interest method.
Impairment of financial assets
IFRS 9 introduced the expected credit loss impairment approach to be applied on all financial
assets at amortized cost or at fair value through other comprehensive income. Under IFRS 9,
the projections of the future are taken into consideration.
The expected credit loss approach uses three stages for allocating impairment losses:
Stage 1: expected credit losses within the next twelve months
Stage 1 includes all contracts with no significant increase in credit risk since initial recognition
and usually includes new acquisitions and contracts with fewer than 31 days past due date.
The portion of the lifetime expected credit losses resulting from default events possible within
the next 12 months is recognized.
Stage 2: expected credit losses over the lifetime – not credit impaired
If a financial asset has a significant increase in credit risk since initial recognition but is not yet
credit impaired, it is moved to Stage 2 and measured at lifetime expected credit loss, which is
defined as the expected credit loss that results from all possible default events over the
expected life of a financial instrument.
Stage 3: expected credit losses over the lifetime – credit impaired
If a financial asset is defined as credit-impaired or in default, it is transferred to Stage 3 and
measured at lifetime expected credit loss. Objective evidence for a credit-impaired financial
asset includes 91 days past due date and other information about significant financial
difficulties of the borrower.
The determination of whether a financial asset has experienced a significant increase in credit
risk is based on external and internal information on the credit quality of the financial asset.
The Receivables from Mercedes-Benz Group companies are mainly guaranteed by Mercedes-
Benz Group AG (note 20).
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Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
In general, an impaired financial asset is written off when there is no reasonable expectation of
recovery, for example after insolvency proceedings or a court decision of uncollectibility.
Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount is presented in the Statement of
Financial Position provided that an enforceable right currently exists to offset the amounts
involved, and there is an intention to carry out the offsetting on a net basis or settle a liability
when the related asset is sold.
Financial liabilities
Financial liabilities primarily include the Debt securities (note 15), the Liabilities due to
Mercedes-Benz Group companies (note 16), the Derivative liabilities (note 19) and Other
liabilities (note 17).
Financial liabilities measured at amortized cost are initially recognized at fair value. After initial
recognition, financial liabilities are subsequently measured at amortized cost using the effective
interest method. Financial liabilities measured at amortized cost are derecognized when the
obligation under the liability is discharged or cancelled or expires.
Financial liabilities at fair value through profit or loss. Financial liabilities at fair value through
profit or loss include financial liabilities held for trading. Derivatives which are not used as
hedging instruments in hedge accounting are classified as held for trading. Gains or losses on
liabilities held for trading are recognized in profit or loss. Financial liabilities at fair value through
profit or loss are derecognized when the obligation under the liability is discharged or cancelled
or expires.
Derivative financial instruments and hedge accounting
The Company uses derivative financial instruments, such as interest rate and cross currency
interest rate swaps or forward agreements, exclusively for hedging financial risks that arise
from its operating or financing activities. These are mainly interest rate risks and currency risks.
Derivative financial instruments are measured at fair value upon initial recognition and at each
subsequent reporting date. The fair value of listed derivatives is equal to their positive or
negative market value. If a market value is not available, fair value is calculated using standard
financial valuation models such as discounted cash flow or option pricing models. Derivatives
are presented as assets if their fair value is positive and as liabilities if the fair value is negative.
If the requirements for hedge accounting set out in IFRS 9 are met, the Company designates
and documents the hedge relationship from the date a derivative contract is entered into as a
fair value hedge or a cash flow hedge. In a fair value hedge, the changes in the fair value of a
recognized asset or liability or an unrecognized firm commitment are hedged. In a cash flow
hedge, the variability of cash flows to be received or paid from expected transactions related
to a recognized asset or liability or a highly probable forecast transaction is hedged. The
documentation of the hedging relationship includes the objectives and strategy of risk
management, the type of hedging relationship, the nature of the risk being hedged, the
identification of the eligible hedging instrument and the eligible hedged item, as well as an
assessment of the effectiveness requirements comprising the risk mitigating economic
relationship, the absence of deteriorating effects from credit risk and the appropriate hedge
ratio. Hedging transactions are regularly assessed to determine whether the effectiveness
18
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
requirements are met while they are designated.
Changes in the fair value of derivative financial instruments that are designated in a hedge
relationship are recognized periodically in either profit or loss or other comprehensive income,
depending on whether the derivative is designated as a hedge of changes in fair value or cash
flows. Changes in the fair value of non-designated derivatives are recognized in profit or loss.
For fair value hedges, changes in the fair value of the hedged item attributable to the hedged
risk and the derivative are recognized in profit or loss. For cash flow hedges, fair value changes
in the effective portion of the hedging instrument are recognized after tax in the Other
comprehensive income.
Under IFRS 9, with cash flow hedges, amounts recognized in the Other comprehensive income
as effective hedging gains or losses from hedging instruments are removed from the reserves
for derivative financial instruments and directly included in the initial cost or carrying amount
of the hedged item at initial recognition if a hedged forecast transaction results in the
recognition of a non-financial asset or non-financial liability.
For other cash flow hedges, the accumulated hedging gains or losses from hedging instruments
are reclassified from the reserves for derivative financial instruments to the Statement of
Income when the hedged item affects profit or loss. The ineffective portions of fair value
changes are recognized directly in profit or loss.
For derivative instruments designated in a hedge relationship, certain components can be
excluded from designation and the changes in these components’ fair value are then deferred
in other comprehensive income under IFRS 9. This applies for example to the time value of
options or cross currency basis spreads.
Hedge relationships are to be discontinued prospectively if a particular hedge relationship
ceases to meet the qualifying criteria for hedge accounting under IFRS 9. Instances that require
discontinuation of hedge accounting are, among others, loss of the economic relationship
between the hedged item and the hedging instrument, disposal or termination of the hedging
instrument, or a revision of the documented risk management objective of a particular hedge
relationship. Accumulated hedging gains and losses from cash flow hedges are retained and
are reclassified from equity as described, when hedged cash flows affect profit and loss, if the
hedged future cash flows are still expected to occur. Otherwise, accumulated hedging gains
and losses are immediately reclassified to profit or loss.
If derivative financial instruments do not or no longer qualify for hedge accounting because the
qualifying criteria for hedge accounting are not or are no longer met, the derivative financial
instruments are measured at fair value through profit or loss.
Employee benefits
The pension plan for the Company qualifies as a defined contribution plan. The Company has
no obligation to pay supplementary contributions in the event of a shortfall in the pension fund,
other than payment of future contributions. Equally the Company has no claim to any surpluses
in the pension fund.
Presentation in the Statement of Cash Flows
The cash flow statement is prepared in accordance with the indirect method and distinguishes
between cash flows from operating, investing and financing activities. The changes in the
19
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Receivables from Mercedes-Benz Group companies, the Derivative foreign currency received /
paid and the Interest received / paid are classified as cash provided by / used for operating
activities. The cash flows from the changes in the Debt securities and the Liabilities due to
Mercedes-Benz Group companies are presented within cash provided by financing activities.
Calculation of income taxes
The calculation of income taxes is based on the legislation and regulations applicable in various
countries. Different interpretations can occur especially in connection with the recognition and
measurement of balance sheet items as well as in connection with the tax assessment of
expenses and income. For the calculation of deferred tax assets, assumptions have to be made
regarding future taxable income and the time of realization of the deferred tax assets. In this
context, the Company takes into consideration, among other things, the projected earnings
from business operations, the effects on earnings of the reversal of taxable temporary
differences, and realizable tax strategies. As future business developments are uncertain and
are sometimes beyond the Company’s control, the assumptions to be made in connection with
accounting for deferred tax assets are connected with a substantial degree of uncertainty. On
each balance sheet date, the Company carries out a re-assessment of the recoverability on
deferred tax assets on the basis of the planned taxable income in future financial years; if the
Company assesses that the probability of future tax advantages being partially or fully
unrealized is more than 50%, the deferred tax assets are impaired (note 6).
02. Accounting estimates and management judgments
In the Financial Statements, to a certain degree, estimates and management judgments have
to be made which can affect the amounts and reporting of assets and liabilities, the reporting
of contingent assets and liabilities on the balance sheet date, and the amounts of income and
expense reported for the period. The major items affected by such estimates and management
judgments are described as follows. Actual amounts may differ from the estimates. The
estimates and the underlying assumptions are constantly assessed. Revisions of estimates are
recognized in the period, in which the estimate is revised and in future periods, on which the
revision has an impact.
In the context of fair value measurement for financial instruments, estimates have to be made
to determine the fair values of financial assets and liabilities, especially when no quoted prices
in active markets are available. In accordance with the established Mercedes-Benz Group
framework, the Company uses valuation techniques on the basis of the discounted estimated
future cash flows by applying appropriate market interest rates and forward exchange rates
(note 19). These are not considered to be significant estimates.
The Company assesses the expected credit losses associated with its financial assets at
amortized cost and FVOCI. On making its assessment, the Company has to make assumptions
about risk of default and expected loss rates, which requires judgement. The inputs used for
risk assessment and for calculation of the loss allowances for financial assets include: (i) credit
ratings for external credit rating agencies companies such like Standard and Poor, Moody’s and
Fitch; (ii) significant changes in the expected performance and behavior of the borrower,
including changes in the payment status of borrowers in the Mercedes-Benz Group AG group
and changes in the operating results of the borrower; (iii) Public market data, namely on
probabilities of default and loss given default expectations; (iv) internal credit risk assessments
on the credit profiles of Mercedes-Benz Group AG subsidiaries; and (v) macroeconomic
information (such as market interest rates or growth rates). There were no significant changes
20
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
in the assumptions or methodology applied in the assessment of expected credit losses,
compared to prior year.
The Company regularly estimates the creditworthiness of Mercedes-Benz Group companies
related to the default risk of Mercedes-Benz Group AG, even though the Receivables from
Mercedes-Benz Group companies and Debt securities are both guaranteed by Mercedes-Benz
Group AG. In this context, further factors are taken into consideration, including historical loss
experience, size and composition of certain portfolios as well as current and forward-looking
economic conditions (note 20).
The Company applies judgement in presenting related information together in a manner that it
considers to be most relevant to an understanding of its financial performance and position.
The outcome of the ECL calculation has not been presented and recorded.
03. Interest income and expense
The composition of Interest result from financial assets and liabilities is shown in the following:
in euro thousand
2024
2023
Interest income on financial assets at amortized cost
562,055
578,949
1,321,625
Interest income on financial assets included in a hedge relationship
1,051,745
Interest income on derivatives not included in a hedge relationship
38,595
13,844
Interest income
1,922,275
1,644,538
Interest expense on financial liabilities at amortized cost
-156,303
-211,172
Interest expense on financial liabilities included in a hedge relationship
-1,695,099
-1,306,260
Interest expense on derivatives not included in a hedge relationship
-24,538
-82,843
Interest expense
-1,875,940
-1,600,275
Interest result
46,335
44,263
The Interest result is split between Mercedes-Benz Group companies and third parties:
in euro thousand
2024
2023
Interest income Mercedes-Benz Group companies
1,894,200
1,620,710
Interest income third parties
28,075
23,828
Interest income
1,922,275
1,644,538
Interest expense Mercedes-Benz Group companies
-1,392,119
-1,273,070
Interest expense third parties
-483,821
-327,205
Interest expense
-1,875,940
-1,600,275
Interest result
46,335
44,263
The Interest income from third parties of euro 28,075 thousand (2023: euro 23,828 thousand)
was mainly earned from the derivatives held during the year. The Interest expense from third
parties of euro 483,821 thousand (2023: euro 327,205 thousand) comprised the interest
expense due to debt securities outstanding during the year.
21
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
The Interest result increased to euro 46,335 thousand (2023: euro 44,263 thousand). In 2024,
the Company received a compensation payment amounting euro 35,000 thousand from its
shareholder (2023: no compensation payment nor received) related to its business model and
presented as interest income on financial assets at amortized cost.
04. Other financial income and expense
The Company incurred a minor foreign currency risk on its intergroup cash positions (note 8)
which was recognized against the foreign exchange rates applying on the balance sheet date.
In 2024, the line item comprised a gain of euro 769 thousand (2023: gain of euro 3,222
thousand) due to exchange rate differences which increased the Financial result.
05. General administrative expenses
2024
in euro thousand
2023
Salaries and social security charges
-442
-480
Pension costs – defined contribution plan
-29
-29
Audit and advisory costs
-308
-321
-877
Other general administrative expense
-819
General administrative expense
-1,656
-1,649
The General administrative expense in total amounted to euro 1,656 thousand in 2024 (2023:
euro 1,649 thousand) and consisted of expenses not directly attributable to operating
activities, such as personnel expenses, audit and advisory costs, and other general
administrative costs.
The personnel expenses comprised salaries and wages in the amount of euro 419 thousand
(2023: euro 454 thousand), social contributions in the amount of euro 23 thousand (2023: euro
26 thousand), and pension costs. The number of people employed is shown in the section
General Information (note 1). The Remuneration of the members of the Board of Management
and the Supervisory Board being active during the periods is shown in note 23.
With reference to section 2:382a (1) and (2) of the Dutch Civil Code, the following audit have
been charged by PWC Accountants N.V. (2023: KPMG Accountants N.V.) as the auditor of the
Company:
in euro thousand
2024
2023
-118
Audit services
-153
Advisory services
-
-
Tax services
-
-
The Other general administrative expense comprised legal charges and advisory costs related
to the debt issuance program, housing costs and other administrative costs.
22
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
06. Income taxes
The following table shows the components of Income taxes:
2024
in euro thousand
2023
Current tax income/expense
-26,087
-29,520
Deferred tax income/expense
-
-
Income taxes in the Statement of Income
-26,087
-29,520
The reconciliation of the effective tax rate is shown below:
in euro thousand
2024
2023
Income before taxation
45,448
45,836
Income taxes using the domestic corporate tax rate (calculation)
25.8% -11,726
25.8% 1,830
Tax benefit/loss related to other periods
812
-222
Tax loss related to foreign taxes (Withholding tax)
-20,971
-24,376
Deductible foreign taxes
5,798
6,908
Income taxes in the Statement of Income
-26,087
-29,520
Effective tax rate
57.4%
64.4%
The deferred tax asset of euro 7,640 thousand (2023: deferred tax liabilities of euro 5,549
thousand) mainly consisted of taxes on unrealized gains or losses and on reclassifications of
cash flow hedges within the Other comprehensive income charged with a tax rate of 25.8%
directly to shareholder’s equity.
In 2024, Other liabilities include an amount of 1,042 thousand related to taxation and social
security premiums.
07. Property, plant and equipment
Property, plant and equipment as shown in the Statement of Financial Position with a carrying
amount of euro 246 thousand (2023: euro 291 thousand) mainly included right-of-use assets
from lessee accounting related to a lease contract with Mercedes-Benz Nederland B.V. for an
office space with a non-cancellable term of 10 years and a carrying amount of euro 225
thousand. The remaining duration is 4 years. The lease payment per year is euro 50 thousand.
08. Receivables from Mercedes-Benz Group companies
in euro thousand
31.12.2024
31.12.2023
Non-current receivables from Mercedes-Benz Group companies
8,456,196
10,449,235
13,863,717
Current receivables from Mercedes-Benz Group companies
15,886,485
Receivables from Mercedes-Benz Group companies
22,319,913
26,335,720
23
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
The Receivables from Mercedes-Benz Group companies declining by euro 4,016 million to a
level of euro 22,320 million as per December 31, 2024. This decrease relates to a decline in
financing activities for Mercedes-Benz Group companies performed by the Company. The
Company strives to develop its funding activities for the Mercedes-Benz Group both in Europe
and globally.
The Receivables from Mercedes-Benz Group companies consisted of 96% (2023: 96%) fixed
rate loans. The Inhouse Bank position with Mercedes-Benz Group AG is described in note 9.
31.12.2024
in euro thousand
31.12.2023
Receivables from Mercedes-Benz Group companies
22,290,215
26,319,453
Inhouse Bank Mercedes-Benz Group AG
29,698
16,267
Receivables from Mercedes-Benz Group companies
22,319,913
26,335,720
The Receivables from Mercedes-Benz Group companies have the following maturity structure:
in euro thousand
Maturity within
Maturity between
Maturity later
Total
one year
one and five years
than five years
receivables
31.12.2024
13,863,717
8,456,196
-
22,319,913
31.12.2023
15,886,485
10,329,235
120,000
26,335,720
09. Cash and cash equivalents
The Company participates in the Global Payment Platform from Mercedes-Benz Group AG.
Therefore, the daily available intergroup cash positions are reflected in the Inhouse Bank
position with Mercedes-Benz Group AG. The total balance is accounted for as Receivable from
Mercedes-Benz Group companies (note 8).
10. Issued capital
The authorized share capital consists of 5,000 ordinary shares with a par value of euro 500 of
which 1,000 shares have been called up and fully paid-in. The holder of ordinary shares,
Mercedes-Benz Capital Investments B.V., is entitled to execute its rights under the Dutch Civil
Code without any restrictions. Since January 1, 2017, there has been no changes in the number
of shares outstanding.
11. Share premium reserve
The share premium reserve comprises additional paid-in capital on the issue of the shares.
Since January 1, 2017, there has been no changes in this line item.
12. Cash flow hedge reserve
The Cash flow hedge reserve comprises the effective portion of the accumulated net change in
the fair value of derivatives included in a cash flow hedge relationship. This Cash flow hedge
reserve is released during the period that the cash flows from the hedged items are realized.
The Cash flow hedge reserve is not freely distributable in accordance with the Dutch Civil Code.
24
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
At December 31, 2024, the Cash flow hedge reserve charged directly to shareholder’s equity
add up to euro 37.9 million negative (2023: euro 117.5 million negative). The Cash flow hedge
reserve is presented in the Statement of Financial Position.
The following table shows the reconciliation of the Cash flow hedge reserve:
in euro thousand
2024
2023
Balance at January 1
16,119
133,660
Unrealized gains/losses (pre-tax)
-13,619
Foreign currency derivatives
-96,855
Interest rate derivatives
-51,388
-149,025
Reclassifications to profit and loss (pre-tax)
Foreign currency derivatives
13,884
87,469
Taxes on unrealized gains/losses and on reclassifications
13,190
40,870
Balance at December 31
-21,815
16,119
Unrealized revaluation of cash flow hedges charged directly to shareholder’s equity
-37,933
-117,541
13. Retained earnings
The Retained earnings comprise the accumulated net income and loss of the Company. In
addition, the effects of remeasuring the deferred taxes are presented within Retained earnings.
14. Undistributed income
The Board of Management proposes to add the net income for the year 2024 amounting to
euro 19.4 million (2023: euro 16.3 million) to the Retained earnings.
15. Debt securities
in euro thousand
31.12.2024
31.12.2023
Total bonds
21,317,055
20,107,329
Non-current bonds
14,792,159
14,824,502
Current bonds
6,524,896
5,282,827
Promissory-note loan (solely non-current)
-
275,595
Debt securities
21,317,055
20,382,924
* Presentation of Debt securities 31.12.2023 was adjusted.
The Company participated as an issuer in Mercedes-Benz’s euro 70 billion Euro Medium Term
Note program (“EMTN”), Mercedes-Benz’s euro 15 billion multi-currency Commercial Paper
program (“CP”) and in its Universal Registration program for debt financing instruments in the
China Interbank Bond Market (“Bond Connect” NAFMII).
These Mercedes-Benz debt issuance programs are based on unconditional and irrevocable
guarantees from Mercedes-Benz Group AG. The outstanding bonds issued by the Company are
either listed on the Luxembourg Stock Exchange or SIX Swiss Exchange or are non-listed.
In 2024, the company issued a number of 10 bonds in a total nominal amount of euro 6 billion.
Its outstanding volume under CP program (“CP”) amounted to euro nil (2023: euro nil).
25
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
As at December 31, 2024, non-derivative financial instruments are reported including the
corresponding accrued interest. As a result, accrued interest expenses in particular, which
relate to financing liabilities and were previously reported separately under “Interest payables
and other liabilities”, will be reported under “Debt securities”. As at December 31, 2023, € 202
million was reclassified from “Interest payables and other liabilities” to “Debt securities” to
improve comparability.
16. Liabilities due to Mercedes-Benz Group Companies
in euro thousand
31.12.2024
31.12.2023
Non-current liabilities due to Mercedes-Benz Group companies
50,000
173,638
120,229
Current liabilities due to Mercedes-Benz Group companies
4,698,087
Liabilities due to Mercedes-Benz Group companies
170,229
4,871,725
All Liabilities due to Mercedes-Benz Group companies are based on fixed interest rates.
31.12.2024
in euro thousand
31.12.2023
Liabilities due to Mercedes-Benz Group AG
21,616
772,645
Liabilities due to Mercedes-Benz Capital Investments B.V.
148,388
4,098,810
Liabilities due to Mercedes-Benz Nederland B.V.
225
270
Liabilities due to Mercedes-Benz Group companies
170,229
4,871,725
17. Other liabilities
31.12.2024
in euro thousand
31.12.2023
Taxation and social security premiums
1,042
2,537
830
Various
876
Other liabilities
1,872
3,413
* Presentation of Other liabilities 31.12.2023 was adjusted.
As at December 31, 2024, non-derivative financial instruments are reported including the
corresponding accrued interest. As a result, accrued interest expenses in particular, which
relate to financing liabilities and were previously reported separately under “Interest payables
and other liabilities”, will be reported under “Debt securities”. As at December 31, 2023, € 202
million was reclassified from “Interest payables and other liabilities” to “Debt securities” to
improve comparability.
18. Contingent liabilities
At December 31, 2024, the Company had no off-balance sheet commitments (2023: euro nil).
19. Financial instruments
Carrying amounts and fair values of financial instruments
The following table shows the carrying amounts and fair values of the respective classes of the
Company’s financial instruments in accordance with IFRS 9:
26
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Assets
Carrying amount
Fair value
in euro thousand
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Derivative assets
Fair value hedges
368,312
344,586
368,312
344,586
Cash flow hedges
14,358
75,887
14,358
75,887
Other derivative assets
20,008
49,738
20,008
49,738
Receivables from Mercedes-Benz Group Companies
22,319,913
26,335,720
22,468,101
26,436,873
Cash and cash equivalents
3,869
5,486
3,869
5,486
Total financial assets
22,726,460
26,811,417
22,874,648
26,912,570
Liabilities
Carrying amount
Fair value
in euro thousand
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Derivative liabilities
Fair value hedges
523,272
823,165
523,272
823,165
Cash flow hedges
112,337
80,762
112,337
80,762
Other derivative liabilities
27,448
43,464
27,448
43,464
21,317,055
21,305,886
Debt securities
20,382,924
20,437,665
Liabilities due to Mercedes-Benz Group Companies
170,229
4,871,725
171,484
4,872,200
Other liabilities
1,872
3,413
1,872
3,413
Total financial liabilities
22,152,213
26,205,453
22,142,299
26,260,669
The fair value of a financial instrument is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date. Given the varying influencing factors, the reported fair values can only be
viewed as indicators of the prices that may actually be achieved on the market. The fair values
of financial instruments were calculated on the basis of market information available on the
balance sheet date.
The fair values in the financial asset and liability categories approximate their carrying values,
except for Mercedes-Benz Group receivables with fixed interest rates and non-current debt
securities. The fair values of Mercedes-Benz Group receivables with fixed interest rates are
determined on the basis of discounted expected future cash flows. The discounting is based
on the current interest rates at which similar loans with identical terms could be obtained at
year-end. Non-current debt securities measured at fair value were measured using quoted
market prices at year-end. If quoted market prices were not available, the fair value is measured
based on inputs that are either directly or indirectly observable in active markets.
Financial instruments measured at fair value through profit or loss include derivative financial
instruments not used in designated hedge relationship. These financial instruments as well as
derivative financial instruments used in designated hedge relationship comprise:
-
derivative currency hedging contracts; the fair values of cross currency interest rate swaps
are determined on the basis of the discounted estimated future cash flows using market
interest rates appropriate to the remaining terms of the financial instruments.
-
derivative interest rate hedging contracts; the fair values of interest rate swaps are
calculated on the basis of the discounted estimated future cash flows using the market
interest rates appropriate to the remaining terms of the financial instruments.
Offsetting of financial instruments
The Mercedes-Benz Group concludes derivative transactions in accordance with the master
netting arrangements (framework agreement) of the International Swaps and Derivatives
27
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Association (ISDA) and comparable national framework agreements. However, these
arrangements do not meet the criteria for offsetting in the Statement of Financial Position, as
they allow netting only in case of future events such as default or insolvency on the part of the
counterparties.
The following table shows the carrying amounts of the derivative financial instruments and the
possible financial effects of netting in accordance with the enforceable netting arrangements:
31.12.2024
in euro thousand
31.12.2023
Assets
Liabilities
Assets
Liabilities
Gross amounts (balance sheet)
402,678
-663,057
470,211
-947,391
Possible netting in case of insolvency
-384,507
384,507
-445,740
445,740
Net amount after offsetting
18,171
-278,550
24,471
-501,651
Measurement hierarchy
The following table provides an overview of the classification into measurement hierarchies for
the fair values of the financial assets and liabilities in accordance with IFRS 13:
Assets
31.12.2024
31.12.2023
Level 1
Level 2
Level 3
in euro thousand
Level 1
Level 2
Level 3
Derivative assets
Fair value hedges
-
368,312
-
-
344,586
-
Cash flow hedges
-
14,358
-
-
75,887
-
Other derivative assets
-
20,008
-
-
49,738
-
Receivables from Mercedes-Benz Group
-
22,468,101
-
-
26,436,873
-
companies
Cash and cash equivalents
-
3,869
-
-
5,486
-
Liabilities
31.12.2024
31.12.2023
Level 1
Level 2
Level 3
in euro thousand
Level 1
Level 2
Level 3
Derivative liabilities
Fair value hedges
-
523,272
-
-
823,165
-
Cash flow hedges
-
112,337
-
-
80,762
-
-
27,448
-
Other derivative liabilities
-
43,464
-
Debt securities
20,273,376
1,032,510
-
18,282,138
2,155,527
-
Liabilities due to Mercedes-Benz Group
-
171,484
-
-
4,872,200
-
companies
Other liabilities
-
1,872
-
-
3,413
-
Level 1 inputs are based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities.
Level 2 inputs are based on inputs that are observable on active markets either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 inputs are based on inputs for which no observable market data is available.
At the end of each reporting period, the Company reviews the necessity of reclassification
between the measurement hierarchies.
Measurement categories
The carrying amounts of financial instruments according to measurement categories are shown
in the table below. The table does not include the carrying amounts of derivative financial
instruments used in hedge accounting as these financial instruments are not assigned to a
measurement category.
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Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Assets
31.12.2024
31.12.2023
in euro thousand
Receivables from Mercedes-Benz Group companies
22,319,913
26,335,720
Cash and cash equivalents
3,869
5,486
Total financial assets measured at amortized cost
22,323,782
26,341,206
31.12.2024
31.12.2023
Liabilities
in euro thousand
Debt securities
21,317,055
20,382,924
Liabilities due to Mercedes-Benz Group companies
170,229
4,871,725
Other liabilities
1,872
3,413
Total financial liabilities measured at amortized cost
21,489,156
25,258,062
Net gains or losses
The following table shows the net gains and losses on financial instruments included in the
Statement of Income and Statement of Comprehensive Income/Loss (excluding revaluation on
hedging instruments).
2024
in euro thousand
2023
Financial instruments measured at fair value through profit and loss
-287,654
-240,916
Financial assets measured at amortized cost
1,573,858
1,494,529
-1,201,139
Financial liabilities measured at amortized cost
-1,095,083
The net gains or losses on financial instruments measured at fair value through profit or loss
comprised the realized interest result from hedging instruments and the revaluation of
derivatives not included in a hedge relationship.
The net gains or losses on financial assets and liabilities measured at amortized cost comprised
the effects of interest income and expense (note 3) and currency translation (note 4).
Information on derivative financial instruments
Use of derivatives
The Company uses derivative financial instruments exclusively for hedging financial risks that
arise from its operating or financing activities. These are mainly interest rate and currency risks
which were defined as risk categories in accordance with IFRS 9. For these hedging purposes,
the Company mainly uses currency forward transactions, cross currency interest rate swaps
and interest rate swaps.
29
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
The following table shows the amounts for transactions designated as hedging instruments:
in euro thousand
Interest rate risks
Currency risks
Fair value
Cash flow
Cash flow
hedges1
hedges1
hedges2
Others3
December 31, 2024
Carrying amount of the hedging instruments
307,594
2,285
-
-
Derivative assets non-current
Derivative assets current
60,718
12,073
-
20,008
Derivative liabilities non-current
390,461
60,778
-
-
Derivative liabilities current
132,811
51,559
-
27,448
Fair value changes4
340,075
-65,007
-
-
December 31, 2023
Carrying amount of the hedging instruments
Derivative assets non-current
207,061
32,884
-
-
Derivative assets current
137,525
43,003
-
49,738
Derivative liabilities non-current
690,663
77,203
-
-
Derivative liabilities current
132,502
3,559
-
43,464
Fair value changes4
479,433
-245,880
-
-
1 includes the following derivative instrument types: interest rate swaps, cross currency interest rate swaps.
2 includes the following derivative instrument types: currency forward transactions.
3 currency forward transactions for the purpose of hedging against currency risk without application of hedge accounting.
4 Gains and losses from hedging instruments used for recognizing hedge ineffectiveness.
Fair value hedges
The Company uses fair value hedges primarily for hedging interest rate risks. The amounts of
the items hedged with fair value hedges are included in the table below:
in euro thousand
Interest rate risks
2024
2023
December 31
Carrying amounts of the hedged items
Receivables from Mercedes-Benz Group Companies non-current
5,030,062
4,399,718
Receivables from Mercedes-Benz Group Companies current
2,451,835
3,127,968
thereof hedge adjustments
Receivables from Mercedes-Benz Group Companies non-current
40,555
13,776
Receivables from Mercedes-Benz Group Companies current
3,134
-41,527
4,724,767
Debt securities and liabilities to Mercedes-Benz Group Companies current
2,823,157
Debt securities and liabilities to Mercedes-Benz Companies non-current
13,208,116
13,006,949
thereof hedge adjustments
Debt securities and liabilities to Mercedes-Benz Group Companies current
-39,031
-27,920
Debt securities and liabilities to Mercedes-Benz Group Companies non-current
-55,809
--478,436
Fair value changes of the hedged items1
-340,075
-479,433
Accumulated amount of hedge adjustments from inactive hedges
-
-
remaining in the Statement of Financial Position
1 Fair value changes of the hedged items used for recognizing hedge ineffectiveness.
30
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
The following table shows the gains and losses on hedging instruments and hedged items which
are deemed to be part of a fair value hedge relationship:
in euro thousand
2024
2023
Revaluation on hedging instruments (Foreign currency derivatives)
-45,874
-119,305
385,949
Revaluation on hedging instruments (Interest rate derivatives)
598,738
Fair value changes from hedged items attributable to hedged risk
-340,075
-479,433
Ineffective portion of fair value hedges
-
-
There is no fair value hedge ineffectiveness in the relevant reporting periods.
Cash flow hedges
The Company uses cash flow hedges for hedging interest rate and currency risks.
The amounts related to items designated as cash flow hedges are shown in the table below:
in euro thousand
Interest rate risks
Currency risks
2024
2024
2023
2023
-65,007
-
Fair value changes of the hedged items1
-245,880
-
Balance of the reserves for derivative
-29,400
21,724
-
-
financial instruments (pre-tax)
1 Fair value changes of the hedged items used for recognizing hedge ineffectiveness.
The following table shows the gains and losses on items which are deemed to be part of a cash
flow hedge relationship and the amounts relating to cash flow hedge ineffectiveness:
in euro thousand
2024
2023
Revaluation on hedging instruments (Foreign currency derivatives)
-13,619
-96,855
Revaluation on hedging instruments (Interest rate derivatives)
-51,388
-149,025
Ineffective portion of cash flow hedges
-
-
Unrealized gains/losses (pre-tax)
-65,007
-245,880
Reclassifications to profit and loss (pre-tax)
13,884
87,469
Taxes on unrealized gains/losses and on reclassification
13,190
40,870
Unrealized revaluation of cash flow hedges charged directly to shareholder’s equity
-37,933
-117,541
For the reconciliation of the Cash flow hedge reserve see note 12.
31
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Nominal values of derivative financial instruments
The following table shows the nominal values and fair values of derivative financial instruments
entered into for the purpose of hedging interest rate and currency risks that arise from the
Company’s operating or financing activities.
Assets
31.12.2024
31.12.2023
in euro thousand
Nominal amount
Fair value
Nominal amount
Fair value
Interest rate derivatives
7,229,241
218,741
6,182,191
174,380
thereof fair value hedges
6,794,241
212,729
3,382,191
124,034
thereof cash flow hedges
435,000
6,012
2,800,000
50,346
Foreign currency derivatives
5,160,542
183,937
6,690,575
295,831
2,493,969
155,583
thereof fair value hedges
3,864,211
220,552
thereof cash flow hedges
597,878
8,346
1,014,609
25,541
thereof other derivative assets
2,068,695
20,008
1,811,755
49,738
Total derivative financial instruments
12,389,783
402,678
12,872,766
470,211
Liabilities
31.12.2024
31.12.2023
in euro thousand
Nominal amount
Fair value
Nominal amount
Fair value
Interest rate derivatives
15,003,683
357,606
16,534,782
677,728
thereof fair value hedges
9,920,000
248,660
12,437,591
606,419
thereof cash flow hedges
5,083,683
108,946
4,097,191
71,309
Foreign currency derivatives
9,029,475
305,451
6,753,829
269,663
5,954,090
274,612
thereof fair value hedges
3,880,410
216,746
thereof cash flow hedges
235,121
3,391
280,407
9,453
thereof other derivative assets
2,840,264
27,448
2,593,012
43,464
Total derivative financial instruments
24,033,158
663,057
23,288,611
947,391
The nominal values of derivative financial instruments have the following maturity structure:
Total
in euro thousand
Maturity within
Maturity between
Maturity later
nominal amounts
one year
one and five years
than five years
December 31, 2024
Nominal amount of the hedging instruments
Interest rate risks
10,575,618
17,938,364
3,000,000
31,513,982
Fair value hedges
6,926,149
15,236,152
3,000,000
25,162,301
Cash flow hedges
3,649,469
2,702,212
-
6,351,681
thereof major hedging instruments affected by
-
-
-
the interest rate benchmark reform
Foreign currency risks
4,908,959
-
-
4,908,959
December 31, 2023
Nominal amount of the hedging instruments
Interest rate risks
8,869,520
21,681,906
1,205,184
31,756,610
Fair value hedges
5,816,754
16,542,464
1,205,184
23,564,402
Cash flow hedges
3,052,766
5,139,442
-
8,192,208
thereof major hedging instruments affected by
46,088
-
-
46,088
the interest rate benchmark reform in PLN1
Foreign currency risks
4,404,767
-
-
4,404,767
1 The volumes of risk exposure in cash flow hedges directly affected by the interest rate benchmark reform are generally in line with the reported
volumes of the hedging instruments because of the basic hedging ratio of 1. Further information on the benchmark reform is provided in note 21.
Further disclosures of interest rate and currency risk see note 21 under the section Market risk.
32
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
20. Management of risks
The exposure of the Company can be broken down into financial and non-financial risks.
Risk management framework
During the normal course of its business, the Company is exposed to, especially market risks,
interest rate and currency, as well as credit, liquidity and other operational risks. To mitigate
the main market risks, derivative financial instruments are used. The Company does not trade
speculatively in these derivative financial instruments. The standardized rules and procedures
adopted by the Company to cover banking, foreign exchange and other treasury matters are in
line with objectives and policies for financial risk management within the Mercedes-Benz Group.
Solvency
Given its objectives and strategy, the Company is economically interrelated with the ultimate
parent company, Mercedes-Benz Group AG, Germany. In assessing the general risk profile of
the Company, the solvency of the Mercedes-Benz Group as a whole, headed by Mercedes-Benz
Group AG, needs to be considered.
Credit risk
Credit risk is the risk of economic loss arising from counterparty’s failure to repay or service
debt in accordance with the contractual terms. Credit risk encompasses both the direct risk of
default and the risk of a deterioration of creditworthiness. The credit risk is regularly monitored
and consequently managed based on the defined standards, guidelines and procedures. The
Mercedes-Benz Group has established appropriate credit risk and counterparty limit systems
which are continuously reassessed together with their respective utilizations.
The Company provides financing within the Mercedes-Benz Group and concludes derivative
financial instruments for hedging risks almost exclusively with Mercedes-Benz Group AG.
The Receivables from Mercedes-Benz Group companies are guaranteed by Mercedes-Benz
Group AG. The Company receives from Mercedes-Benz Group AG the then outstanding amount
of such financing minus 1% retention which in any case not exceeds the overall maximum
threshold of euro 50 million. As a result, the credit risk of intergroup financial receivables is
effectively mitigated to the default risk of Mercedes-Benz Group AG. The Receivables from
Mercedes-Benz Group companies are attributed to stage 1 in accordance with IFRS 9 (note 8).
The maximum risk positions of financial assets, which are generally subject to credit risk, are
equal to their carrying amounts. The following table gives an overview of maximum exposures:
31.12.2024
in euro thousand
31.12.2023
Receivables from Mercedes-Benz Group companies (incl. Inhouse Bank Mercedes-Benz Group AG)
22,319,913
26,335,720
Cash and Cash equivalents
3,869
5,486
Derivative assets
402,678
470,211
Gross exposure
22,726,460
26,811,417
Receivables guaranteed by Mercedes-Benz Group AG
22,269,913
26,285,720
Residual unguaranteed exposure
456,547
525,697
The Company has recognized no credit defaults in the relevant reporting periods.
33
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Liquidity risk
Liquidity risk comprises the risk that a company cannot meet its financial obligations as they
fall due. The Company manages its liquidity by holding adequate volumes of intergroup cash
(note 8) and by applying as far as possible the matched funding principle. In accordance with
internal guidelines, this principle ensures that financial obligations generally have the same
maturity profile as the financial assets, and thus mitigates the Company’s liquidity risk.
The following table provides an overview of how the future liquidity situation of the Company
can be affected by the cash flows from liabilities as of December 31, 2024.
in euro thousand1
Total
2025
2026
2027
2028
2029
≥2029
Debt securities2
-22,684,534 -6,831,376 -7,279,304 -4,808,943
-109,367
-444,194 -3,211,350
Liabilities due to Mercedes-Benz
-154,584
-101,808
-1,388
-51,388
-
-
-
Group companies2
Derivative financial instruments3
-719,826
-386,115
-237,088
-90,426
-5,681
-516
-
thereof with gross settlement
-354,687
-148,250
-124,585
-76,385
-4,951
-516
-
Cash outflows
-6,660,644 -2,263,650 -2,108,837 -1,946,890
-330,381
-10,886
-
Cash inflows
6,305,957
2,115,400
1,984,252
1,870,506
325,430
10,370
-
-365,139
-237,865
-112,503
-14,041
-730
-
-
thereof with net settlement
1 The amounts were calculated as follows:
(a) If the counterparty can request payment at different dates, the liability is included on the basis of the earliest date on which the Company can
be required to pay.
(b) The cash flows of floating interest financial instruments are estimated on the basis of forward rates.
2 The stated cash flows of financing liabilities consist of their undiscounted principal and interest payments.
3 The undiscounted sum of the cash flows of the derivative financial liabilities is shown for the respective year.
Mercedes-Benz Group AG unconditionally and irrevocably guarantees all the debt securities.
Market risk
The Company is mainly exposed to market risks which comprises interest rate and currency
risks. The Company manages market risks to minimize the impact of fluctuations in interest
rates and foreign exchange rates on the results. The exposure to these market risks are
regularly calculated to provide the basis for hedging decisions which include the selection of
hedging instruments and the determination of hedging volumes and the corresponding periods.
As part of its risk management system, the Mercedes-Benz Group employs value at risk
analyses. In performing these analyses, the Company quantifies its market risk due to changes
in interest rates and foreign currency exchange rates on a regular basis by predicting the
potential loss over a target time horizon (holding period) and confidence level.
The value at risk calculations employed:
-
express potential losses in fair values, and
-
assume a 99% confidence level and a holding period of five days.
Mercedes-Benz Group calculates the value at risk based on the variance-covariance approach.
Hedge accounting. When designating derivative financial instruments, a hedge ratio of 1 is
generally applied. The respective volumes, interest curves and currencies of the hedged item
and the hedging instrument as well as maturity dates are matched. In the case of combined
34
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
derivative financial instruments for interest currency hedges, the cross currency basis spread
is not designated into the hedge relationship, but deferred as a hedging cost in Other
Comprehensive Income and recognized in profit and loss pro rata over the hedge term. The
Company ensures an economic relationship between the underlying transaction and the
hedging instrument by ensuring consistency of interest rate, currency, volume and maturity.
The effectiveness of the hedge is assessed at the beginning and during the economic
relationship using the hypothetical derivative method.
Interest rate risk
The Company’s general policy is to mitigate interest rate risk by matching funding in terms of
maturities and interest rates wherever economically feasible. Potential interest rate gaps are
managed in manner that the portfolio is immunized to a considerable degree against interest
rate changes. The Company assesses its interest rate risk position by comparing assets and
liabilities for corresponding maturities, including the impact of the relevant derivative financial
instruments. An asset and liability committee within the Mercedes-Benz Group sets targets for
the interest rate risk position which are monitored on a monthly basis. In order to achieve the
targeted interest rate risk positions in terms of maturities and interest rate fixing periods, the
Company also uses derivative financial instruments such as interest rate swaps.
The following table shows the period-end value at risk figures of the interest rate risk for the
2024 and 2023 portfolios of interest rate sensitive financial instruments and derivative financial
instruments of the Company. In this respect, the table shows the interest rate risk regarding
the unhedged position of interest rate sensitive financial instruments.
31.12.2024
in euro thousand
31.12.2023
Interest rate risk
3,183
6,562
In the course of the year 2024, changes on the value at risk of interest rate sensitive financial
instruments were primarily determined by the development of interest rate volatilities.
Currency risk
The objective of the Company is to eliminate currency risk. Therefore, the Company enters into
foreign exchange contracts to hedge currency risks as far as cash flows and earnings are not
lent on in the same currency (natural hedge). As a result, the Company incurred only limited
foreign currency risk from its ordinary debt issuances and intergroup financing activities.
The following table shows the period-end value at risk figures of the exchange rate risk for the
2024 and 2023 portfolios of exchange rate sensitive financial instruments and derivative
financial instruments of the Company (including interest payments).
in euro thousand
31.12.2024
31.12.2023
Currency risk
328
288
The Company mainly incurred a minor currency risk on the intergroup cash position (note 8)
which is recognized against the exchange rate applying on the balance sheet date (note 4).
35
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Operating and Compliance risks
The non-financial risks consist of operating risks mainly resulting from the usage of information
technology, and compliance risks. The Company uses IT systems to monitor financial positions
and daily cash flows, and to process payments to internal and external counterparties. System
failures can, therefore, lead to delays in payment processes. Further operating risks can arise
in connection with the settlement of financial transactions. The management of daily cash flows
at the Company depends on the timely receipt of funds from external institutions who act as
counterparties to financial transactions. To avoid negative impacts of system failures, all key
systems are set up in parallel or backup facilities or available within the Mercedes-Benz Group.
21. Capital management
The Company’s objectives when managing capital at an individual company level are to
safeguard its ability to continue as a going concern in order to provide returns for shareholder
and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the
cost of capital. The Company may issue new shares or adjust the amount of dividends paid to
shareholder to steer the capital structure. The Company has no prescribed dividend policy.
The Company’s equity, as shown in the Statement of Financial Position, constitutes its capital.
The Company maintains its level of capital by reference to its financial obligations and
commitments arising from operations requirements. In view of the Company’s borrowings or
debt, the capital level as at the end of the reporting periods is deemed adequate by the Board
of Management. The Company is not subject to externally imposed capital requirements. There
were no changes in the Company’s approach to capital management during the relevant years.
22. Related party disclosures
An exchange of internal cooperation between affiliates of a multinational corporation as the
Mercedes-Benz Group is common practice.
Identity of related parties
In its responsibility to assist the financing of business activities conducted by companies of the
Mercedes-Benz Group, Mercedes-Benz International Finance B.V. applies transfer prices for
financial instruments in conformity with external market levels and in accordance with national
and international tax requirements (such as arm’s length principle, principle of economic
allegiance, separate entity approach, Art 9 OECD-MA Rz 126).
Key personnel
Mercedes-Benz International Finance B.V. has two directors in the Board of Management who
receive compensation from Mercedes-Benz International Finance B.V. The Company does not
have other key personnel than the Board of Management and the Supervisory Board. Therefore,
the details regarding the compensation of key management personnel is described in note 23.
Transactions with Mercedes-Benz Group companies
Mercedes-Benz International Finance B.V. obtains funds mainly from the capital markets, and
affiliated companies by entering into loan agreements. The debt issuances under the EMTN,
the Chinese Private and Public Placement and CP programs are unconditionally and irrevocably
guaranteed by Mercedes-Benz Group AG for which the Company pays a guarantee fee to its
parent company. The funds represent currently 99% of the borrowed funds (2023: 81%). The
Company also obtained funds from affiliated companies in the amount of euro 148 million
36
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
(2023: euro 4,837 million). Together with the Company’s equity, all of these funds are made
available to Mercedes-Benz Group companies.
23. Remuneration of the Board of Management and the Supervisory Board
The remuneration for directors, including pension obligations as intended in Section 2:383 of
the Dutch Civil Code, which were charged in the financial year to the Company, amounted to
euro 0.4 million (2023: euro 0.4 million). These costs were partly recharged for rendered
services to other Mercedes-Benz Group companies. The members of the Supervisory Board did
not receive any remuneration in the relevant reporting periods.
24. Segment information
The Company has only a single reportable segment. The segment information provided to the
Board of Management for the identified reporting segment corresponds with the one reported
on the statement of comprehensive income.
37
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Notes to the Financial Statements
Nieuwegein, April 28, 2025
Mercedes-Benz International Finance B.V.
The Board of Management
Maarten van Pelt
Volker Lach
The Supervisory Board
Frank Wetter
Dr. Stephanie Pfeifer
Jürgen Vogt
Chairman
38
OTHER
INFORMATION
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Other Information
Independent auditor’s report
Independent Auditor’s Report The Auditor’s Report is shown on the following pages
Statutory rules as to appropriation of result
Article 13 of the Articles of Association states:
1. The Company’s income is wholly at the disposal of the general meeting of shareholder.
2. The Company may only make distributions to the shareholder and other parties entitled to
the income available for distribution in so far as its capital and reserves exceed the paid-up
and called part of the reserves required to be held under law.
3. The distribution of income takes place after adoption of the annual accounts indicating such
distribution to be justified.
4. The Company may only make interim distributions if the requirement in clause two has been
satisfied.
5. The entitlements to income distribution lapse after a period of five years after the date on
which they became payable.
40
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Responsibility Statement
To the best of our knowledge, and in accordance with Part 9 of Book 2 of the Dutch Civil Code
and the International Financial Reporting Standards as issued by the IASB’ (“IFRS Accounting
Standards”)., the Financial Statements give a true and fair view of the financial position, cash
flows and profit or loss of Mercedes-Benz International Finance B.V., and the Company’s Annual
Management Report includes a fair review of the development and performance of the business
and the position of Mercedes-Benz International Finance B.V. together with a description of the
principal risks and opportunities associated with the expected development of the Company.
Nieuwegein, April 28, 2025
Mercedes-Benz International Finance B.V.
The Board of Management
Maarten van Pelt
Volker Lach
41
Annual Report 2024 · Mercedes-Benz International Finance B.V.
Declaration by the Supervisory Board
- The responsibility for the audit committee function for the Company has been placed and
will be executed by the Supervisory Board.
- Pursuant to the Articles of Association, we are pleased to submit the Financial Statements
for the year 2024 as drawn up by the Board of Management.
- The Financial Statements, which both the Supervisory Board and the Board of Management
have signed, have been audited by PwC Accountants N.V.
- The Independent Auditor’s Report is included under the section Other Information below.
Nieuwegein, April 28, 2025
Mercedes-Benz International Finance B.V.
The Supervisory Board
Frank Wetter
Dr. Stephanie Pfeifer
Jürgen Vogt
Chairman
42
Independent auditor’s report
Financial Statements
31 December 2024
1
January 2024
Mercedes-Benz International Finance .V.
B
Controle
Goedkeurend
00k4L00000HTaMOQA1
KVK
30078162
Create SBR Extension
1.0
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29 April 2025
To: the general meeting and the supervisory board of Mercedes-Benz International Finance B.V.
Report on the audit of the financial statements 2024
Our opinion
In our opinion, the financial statements of Mercedes-Benz International Finance B.V. (‘the Company’)
give a true and fair view of the financial position of the Company as at 31 December 2024, and of its
result and its cash flows for the year then ended in accordance with IFRS Accounting Standards as
adopted by the European Union (‘EU’) and with Part 9 of Book 2 of the Dutch Civil Code.
What we have audited
We have audited the accompanying financial statements 2024 of Mercedes-Benz International Finance
B.V., Utrecht.
The financial statements comprise:
the statement of financial position as at 31 December 2024;
the following statements for 2024: the income statement, the statements of comprehensive
income/loss, changes in equity and cash flows; and
the notes to the financial statements, including material accounting policy information and
other explanatory information.
The financial reporting framework applied in the preparation of the financial statements is IFRS
Accounting Standards as adopted by the EU and the relevant provisions of Part 9 of Book 2 of the
Dutch Civil Code.
The basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We
have further described our responsibilities under those standards in the section ‘Our responsibilities
for the audit of the financial statements’ of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of Mercedes-Benz International Finance B.V. in accordance with the European
Union Regulation on specific requirements regarding statutory audit of public-interest entities, the
‘Wet toezicht accountantsorganisaties’ (Wta, Audit firms supervision act), the ‘Verordening inzake de
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357,
1006 BJ Amsterdam, the Netherlands
T: +31 (0) 88 792 00 20, F: +31 (0) 88 792 96 40, www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V.
(Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V.
(Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368),
PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms
and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions
of Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions
and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.
onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to independence) and other relevant independence regulations
in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels
accountants’ (VGBA, Dutch Code of Ethics).
Our audit approach
We designed our audit procedures with respect to the key audit matters, fraud and going concern, and
the matters resulting from that, in the context of our audit of the financial statements as a whole and in
forming our opinion thereon. The information in support of our opinion, such as our findings and
observations related to individual key audit matters, the audit approach fraud risks and the audit
approach going concern was addressed in this context, and we do not provide separate opinions or
conclusions on these matters.
Overview and context
The Company’s main activity is the financing of Mercedes-Benz Group AG group companies, through
bond offerings on the international capital markets. The repayment of the bonds to the investors is
guaranteed by Mercedes-Benz Group AG as disclosed in note 2 to the financial statements. The
Company has derivative financial instruments in place to mitigate interest rate risk and currency risk.
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where the board of
management made important judgements, for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. We
also considered climate-related risks.
In note 2 of the financial statements, the Company describes the areas of judgement in applying
accounting policies and the key sources of estimation uncertainty. Given the estimation uncertainty in
the measurement of expected credit losses, we considered this matter as key audit matter as set out in
the section ‘Key audit matters’ of this report. Furthermore, we identified hedge accounting as key audit
matter because of the detailed requirements for hedge accounting.
The Company assessed the possible effects of climate change on its financial position, refer to the
section ‘Climate change’ of the annual management report. We discussed the Company’s assessment
and governance thereof with the board of management and evaluated the potential impact on the
financial position including underlying assumptions and estimates. Given the nature of the Company’s
activities, the impact of climate change is not considered a key audit matter.
We ensured that the audit team included the appropriate skills and competences, which are needed for
the audit of a finance company.
First-year audit consideration
After our appointment as the Company’s auditors, we developed and executed a comprehensive
transition plan. As part of this transition plan, we carried out a process of understanding the strategy
of the Company, its business, its internal control environment and IT systems. We examined where
and how this affected the Company’s financial statements and internal control framework.
Additionally, we read the prior year financial statements and we reviewed the predecessor auditor’s
files and discussed and evaluated the outcome of the audit procedures included therein. Based on
these procedures, amongst others, we obtained sufficient and appropriate audit evidence regarding the
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opening balances. Furthermore, we prepared our risk assessment, our audit strategy and our audit
plan for the year 2024, which we discussed with the board of management and the supervisory board.
Materiality
The scope of our audit was influenced by the application of materiality, which is further explained in
the section ‘Our responsibilities for the audit of the financial statements’.
Based on our professional judgement we determined certain quantitative thresholds for materiality,
including the overall materiality for the financial statements as a whole as set out below. These,
together with qualitative considerations, helped us to determine the nature, timing and extent of our
audit procedures on the individual financial statement line items and disclosures and to evaluate the
effect of identified misstatements, both individually and in aggregate, on the financial statements as a
whole and on our opinion.
Based on our professional judgement, we determined the materiality for the financial statements as a
whole at €227,300,000. As a basis for our judgement, we used 1% of total assets. We used total assets
as the primary benchmark, a generally accepted auditing practice, based on our analysis of the
common information needs of the stakeholders. Inherent to the nature of the Company’s business, the
amounts in the statement of financial position are large in proportion to the income statement line
items Other financial income and expense, General and administrative expenses and Income taxes.
Based on qualitative considerations, we performed audit procedures on those income statement line
items, applying a benchmark of 10% of the total of those expenses.
We also take misstatements and/or possible misstatements into account that, in our judgement, are
material for qualitative reasons.
We agreed with the supervisory board that we would report to them any misstatement identified
during our audit above €11,365,000 as well as misstatements below that amount that, in our view,
warranted reporting for qualitative reasons.
Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due to
fraud. During our audit we obtained an understanding of Mercedes-Benz International Finance B.V.
and its environment and the components of the internal control system. This included the board of
management’s risk assessment process, the board of management’s process for responding to the risks
of fraud and monitoring the internal control system and how the supervisory board exercised
oversight, as well as the outcomes. We refer to section ‘Risk and opportunity report’ of the annual
management report for the board of management’s fraud risk assessment.
We evaluated the design and relevant aspects of the internal control system with respect to the risks of
material misstatements due to fraud and in particular the fraud risk assessment, as well as the code of
conduct among other things. We evaluated the design and the implementation and, where considered
appropriate, tested the operating effectiveness of internal controls designed to mitigate fraud risks.
We asked members of the board of management and the supervisory board whether they are aware of
any actual or suspected fraud. This did not result in signals of actual or suspected fraud that may lead
to a material misstatement.
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As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to
financial reporting fraud, misappropriation of assets and bribery and corruption. We evaluated
whether these factors indicate that a risk of material misstatement due to fraud is present.
We identified the following fraud risk and performed the following specific procedures.
Identified fraud risk
Audit work and observations
The risk of management override of We evaluated the design and implementation of the internal control
control
measures, i.e. segregation of duties, that are intended to mitigate the
The board of management is in a
risk of management override of control and to the extent relevant for
unique position to perpetrate fraud
our audit tested the effectiveness of these controls. Furthermore, we
because of the board of
evaluated the design and implementation of the controls in the
management’s ability to manipulate
processes for generating and processing journal entries and making of
accounting records and prepare
estimates.
fraudulent financial statements by
overriding controls that otherwise
We performed our audit procedures primarily substantive based.
appear to be operating effectively.
That is why, in all our audits, we pay We have selected journal entries based on risk criteria and performed
attention to the risk of management
specific audit procedures.
override of controls in:
The appropriateness of journal We also performed specific audit procedures related to important
entries and other adjustments estimates of the board of management, including the valuation of loans
made in the preparation of the issued to group companies and the application of hedge accounting. We
financial statements.
refer to the section ‘Key audit matters’ for the audit procedures
Determining significant
performed.
accounting estimates.
We specifically paid attention to the inherent risk of bias of the board of
Significant transactions, if
management in estimates.
any, outside the normal course
of business for the Company. We did not identify any significant transactions outside the normal
course of business.
We pay particular attention to
tendencies due to possible interests of Our audit procedures did not lead to specific indications of fraud or
the board of management.
suspicions of fraud with respect to management override of controls.
[]
We incorporated an element of unpredictability in our audit. During the audit, we remained alert to
indications of fraud. Furthermore, we considered the outcome of our other audit procedures and
evaluated whether any findings were indicative of fraud or non-compliance with laws and regulations.
Audit approach going concern
As disclosed in section ‘Risk and opportunity report’ in the annual management report, the board of
management performed their assessment of the Company’s ability to continue as a going concern and
has not identified events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern (hereafter: going-concern risks).
Our procedures to evaluate the board of management’s going-concern assessment included, amongst
others:
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considering whether the board of management’s going-concern assessment included all relevant
information of which we were aware as a result of our audit by inquiring with the board of
management regarding the board of management’s most important assumptions underlying its
going-concern assessment.
evaluating the financial position of the Company, the counterparties of loans to group
companies (including the financial position of the guarantor to the bonds issued on capital
markets) and their ability to repay the notional and interest to the Company, by assessing
observable data from rating agencies, current financial data (such as recent financial
information and cash flows) and other publicly available data and by discussing and obtaining
information from the group auditor of Mercedes-Benz Group AG.
performing inquiries of the board of management as to its knowledge of going-concern risks
beyond the period of the board of management’s assessment.
Our procedures did not result in outcomes contrary to the board of management’s assumptions and
judgements used in the application of the going-concern assumption.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
the audit of the financial statements. We have communicated the key audit matters to the supervisory
board. The key audit matters are not a comprehensive reflection of all matters identified by our audit
and that we discussed. In this section, we described the key audit matters and included a summary of
the audit procedures we performed on those matters.
Due to the nature of the Company, key audit matters do not change significantly year over year.
Key audit matter
How our audit addressed the matter
Measurement of expected credit losses
Reference is made to note 8
We performed the following procedures to test the
We considered the valuation of the loans to Mercedes-
board of management’s assessment of the ECL to
Benz Group AG group companies, as disclosed in note 8 support the valuation of the loans to Mercedes-Benz
to the financial statements for a total amount of
Group AG group companies:
€22,319,913,000, to be a key audit matter. This is due
With respect to the ECL calculation, we
to the size of the loan portfolio and the inherent
determined that the loans qualify as stage 1
complexity involved in estimating the expected credit
loans by assessing the actual performance of the
losses (‘ECL’), which requires judgement and involves
loans (i.e. no significant deterioration of credit
estimation.
risk).
We evaluated the financial position of the
The board of management monitors the need for
counterparties of loans to group companies and
changes in the methods, assumptions or the data used
guarantor by assessing observable data from
in making the accounting estimate by monitoring key
rating agencies, the latest available financial
performance indicators that may indicate unexpected
information and other publicly available data in
or inconsistent performance. Mainly with respect to the
order to assess if there are no adverse conditions
probability of default (‘PD’), and loss given default
present suggesting to classify the loans as stage
(‘LGD’) used in the determination of the expected credit
2 or stage 3 loans.
losses, the board of management has applied
For the ECL we assessed that the impairment
judgement given the low default character of the
methodology and model applied by the
Company’s loan portfolio. As a result, there is limited
Company were in accordance with the
impairment requirements of IFRS 9. We
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Key audit matter
How our audit addressed the matter
internal historical data to support and back-test the PD
assessed that the forward-looking information
and LGD.
used by the client as part of the impairment
methodology was appropriate considering the
The board of management has determined that all loans
characteristics of the loan portfolio of Mercedes-
to group companies are categorised as stage 1 loans.
Benz International Finance B.V.
We assessed that the PD and LGD and the
In the absence of internal historical losses and default
assumptions applied by the board of
information, the management board used data from
management, are appropriate and were based
external data source providers in determining the ECL.
upon data from external data source providers
including indicators for potential management
The Company has received a guarantee on the loans
bias.
granted to Mercedes-Benz Group AG group companies.
This has been considered as part of the calculation of
We found the board of management’s assessment to be
the ECL.
adequate. Our procedures as set out above did not
indicate material differences.
Hedge accounting
We performed the following procedures to support the
Reference is made to note 19
appropriateness of the application of hedge accounting:
We considered the application of hedge accounting to
We tested on a sample basis whether the hedge
be a key audit matter. This is because of the detailed
documentation and hedge effectiveness testing
formal and technical requirements that are relevant to
as prepared by the board of management met
the application of hedge accounting and because
the requirements and whether the hedge
inappropriate application of these requirements can
effectiveness test was mathematically correct.
lead to a material effect on the financial statements.
We reconciled the outcome of the effectiveness
testing for the derivative portfolio as a whole to
the financial statements.
Evaluated the shared comfort memo for the
application of hedge accounting from the group
auditor of Mercedes-Benz Group AG.
Based on the procedures as set out above we found the
application of hedge accounting to be appropriate.
Report on the other information included in the annual report
The annual report contains other information. This includes all information in the annual report in
addition to the financial statements and our auditor’s report thereon.
Based on the procedures performed as set out below, we conclude that the other information:
is consistent with the financial statements and does not contain material misstatements; and
contains all the information regarding the annual management report and the other information
that is required by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and the understanding obtained in our
audit of the financial statements or otherwise, we have considered whether the other information
contains material misstatements.
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By performing our procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil
Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope
of those procedures performed in our audit of the financial statements.
The board of management is responsible for the preparation of the other information, including the
annual management report and the other information in accordance with Part 9 of Book 2 of the Dutch
Civil Code.
Report on other legal and regulatory requirements and ESEF
Our appointment
We were appointed as auditors of Mercedes-Benz International Finance B.V. on 22 March 2024 by the
supervisory board. This followed the passing of a resolution by the shareholders at the annual general
meeting held on 22 March 2024. Our appointment represents a total period of uninterrupted
engagement of one year.
European Single Electronic Format (ESEF)
Mercedes-Benz International Finance B.V. has prepared the annual report in ESEF. The requirements
for this are set out in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical
standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report prepared in XHTML format, including the financial statements of
Mercedes-Benz International Finance B.V., complies in all material respects with the RTS on ESEF.
The board of management is responsible for preparing the annual report, including the financial
statements in accordance with the RTS on ESEF.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report
complies with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N
‘Assuranceopdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal
verantwoordingsdocument’ (assurance engagements relating to compliance with criteria for digital
reporting).
Our examination included amongst others:
Obtaining an understanding of the entity’s financial reporting process, including the preparation
of the annual report in XHTML format.
Identifying and assessing the risks that the annual report does not comply in all material
respects with the RTS on ESEF and designing and performing further assurance procedures
responsive to those risks to provide a basis for our opinion, including examining whether the
annual report in XHTML format is in accordance with the RTS on ESEF.
No prohibited non-audit services
To the best of our knowledge and belief, we have not provided prohibited non-audit services as
referred to in article 5(1) of the European Regulation on specific requirements regarding statutory
audit of public-interest entities.
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Services rendered
The services, in addition to the audit, that we have provided to the Company, for the period to which
our statutory audit relates, are disclosed in note 5 to the financial statements.
Responsibilities for the financial statements and the audit
Responsibilities of the board of management and the supervisory board
for the financial statements
The board of management is responsible for:
the preparation and fair presentation of the financial statements in accordance with IFRS
Accounting Standards as adopted by the EU and Part 9 of Book 2 of the Dutch Civil Code; and
for
such internal control as the board of management determines is necessary to enable the
preparation of the financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the board of management is responsible for assessing the
Company’s ability to continue as a going concern. Based on the financial reporting frameworks
mentioned, the board of management should prepare the financial statements using the going-concern
basis of accounting unless the board of management either intends to liquidate the Company or to
cease operations or has no realistic alternative but to do so. The board of management should disclose
in the financial statements any event and circumstances that may cast significant doubt on the
Company’s ability to continue as a going concern.
The supervisory board is responsible for overseeing the Company’s financial reporting process.
Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain
sufficient and appropriate audit evidence to provide a basis for our opinion. Our objectives are to
obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high but not absolute level of assurance, and is not a guarantee that an audit
conducted in accordance with the Dutch Standards on Auditing will always detect a material
misstatement when it exists. Misstatements may arise due to fraud or error. They are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the
effect of identified misstatements on our opinion.
A more detailed description of our responsibilities is set out in the appendix to our report.
Amsterdam, 29 April 2025
PricewaterhouseCoopers Accountants N.V.
/PwC_Partner_Signature1/
Originally signed by H.C. van der Rijst RA
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Appendix to our auditor’s report on the financial statements
2024 of Mercedes-Benz International Finance B.V.
In addition to what is included in our auditor’s report, we have further set out in this appendix our
responsibilities for the audit of the financial statements and explained what an audit involves.
The auditor’s responsibilities for the audit of the financial statements
We have exercised professional judgement and have maintained professional scepticism throughout
the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence
requirements. Our audit consisted, among other things of the following:
Identifying and assessing the risks of material misstatement of the financial statements, whether
due to fraud or error, designing and performing audit procedures responsive to those risks, and
obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the intentional override of internal control.
Obtaining an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
Evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the board of management.
Concluding on the appropriateness of the board of management’s use of the going-concern basis
of accounting, and based on the audit evidence obtained, concluding whether a material
uncertainty exists related to events and/or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report and
are made in the context of our opinion on the financial statements as a whole. However, future
events or conditions may cause the Company to cease to continue as a going concern.
Evaluating the overall presentation, structure and content of the financial statements, including
the disclosures, and evaluating whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with the supervisory board regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit. In this respect, we also issue an additional report to the audit
committee in accordance with article 11 of the EU Regulation on specific requirements regarding
statutory audit of public-interest entities. The information included in this additional report is
consistent with our audit opinion in this auditor’s report.
We provide the supervisory board with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
actions taken to eliminate threats or safeguards applied.
From the matters communicated with the supervisory board, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
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key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
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Mercedes-Benz International Finance B.V., Ravenswade 4, 3439 LD Nieuwegein, The Netherlands