Annual Report 2025 · Mercedes-Benz International Finance B.V.
Contents
Annual Report 2025
Mercedes-Benz International Finance B.V.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Contents
Contents
Management Report
6
Financial Statements
12
Statement of Income and Statement of Comprehensive Income/Loss
12
Statement of Financial Position (before appropriation of result)
13
Statement of Changes in Equity
14
Statement of Cash Flows
15
Notes to Financial Statements
16
01. Material accounting policies
16
02. Accounting estimates and management judgments
28
03. Interest income and expense
29
04. Other financial income and expense
30
05. General administrative expenses
30
06. Income taxes
31
07. Property, plant and equipment
32
08. Receivables from Mercedes-Benz Group companies
32
09. Cash and cash equivalents
33
10. Issued capital
33
11. Share premium reserve
33
12. Cash flow hedge reserve
33
13. Retained earnings
34
14. Undistributed income
34
15. Debt securities
34
16. Liabilities due to Mercedes-Benz Group Companies
35
17. Other liabilities
36
18. Contingent liabilities
36
19. Financial instruments
36
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Contents
20. Risk management
44
21. Capital management
48
22. Related party disclosures
49
23. Remuneration of the Board of Management and the Supervisory Board
50
24. Segment information
50
Other Information
52
Independent auditor’s report
52
Statutory rules as to appropriation of result
52
Responsibility Statement
53
Declaration by the Supervisory Board
54
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Management Report
MANAGEMENT
REPORT
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Management Report
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 2025, the Company employed 5 people (2024: 3).
Business development
In the year 2025, the Company’s Financial result of euro 40.3 million (2024: euro 47.1
million) decreased compared to the prior-year level due to a reduction of its
financing activities for Group companies throughout 2025 as well as an overall
decrease of the interest rate environment. In 2025, the Company received a
compensation payment of euro 54 million from its shareholder Mercedes-Benz
Capital Investments B.V., which is recognized and presented in interest income (2024:
euro 35 million). The compensation payment originates from an agreement between
the Company and its shareholder to compensate the Company for any losses arising
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Management Report
from liquidity- and market price risks due to the issuing of commercial papers,
corporate bonds or bank loans with a non-matched on-lending to Group companies
as required by the shareholder. General administrative expenses were slightly higher
than the last year at euro 1.9 million (2024: euro 1.6 million).
The Income tax expense of euro 14.2 million (2024: euro 26.1 million) decreased
primarily due to the lower foreign taxes. Altogether, this results in a Net income of
euro 24.2 million (2024: euro 19.4 million).
The Other comprehensive income consists of unrealized gains and losses as well as
reclassifications from cash flow hedges. In 2025, the Company recorded a positive
Other comprehensive income of euro 36.2 million in comparison with a negative
Other comprehensive income of euro 18.6 million in the previous year. The
fluctuation is mainly driven by fair value movements of derivatives designated in cash
flow hedge relationships, which are influenced by changes in market interest and
foreign exchange rates.
The balance sheet total decreased compared with December 31, 2024 from euro
22,734 million to euro 18,489 million. This decrease of 18.7% 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 year end declined from euro
150 million in the previous year to euro 50 million in 2025. In 2025, the Company
issued 7 bonds in a total nominal amount of euro 2.6 billion, consisting of EUR 1.65
billion, GBP 0.30 billion, and CNY 5 billion.
The Company’s equity increased compared with December 31, 2024 from euro 582
million to euro 618 million. The positive effect in equity relates primarily to a gain in
Other comprehensive income of euro 12.0 million.
The net positive cash flow from operating activities in the amount of euro 3,784
million (2024: positive euro 4,213 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 3,784 million (2024: euro 4,215
million) was driven by the related development of Debt securities and loans from
affiliates.
Risk Management
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. It is the Company’s intention to reduce these risks as
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Management Report
much as possible.
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 includes regular risk
reporting on the Company’s main risks to manage them closely. The risk
management 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. This also applies to the risk of fraud, which 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 organizational level which address relevant compliance topics,
including fraud prevention. 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 risk 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, such as (but not
limited to) interest rate- or foreign currency swaps, 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.
In addition, the Company and its parent company Mercedes-Benz Capital
Investments B.V. established an interest remuneration agreement based on the
function and risk profile in order to ensure that the Mercedes-Benz International
Finance B.V. earns an “at arm’s length” net interest result for its financing activity.
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. In prior years,
these intercompany loans were additionally supported by a letter of comfort from
Mercedes-Benz Group AG, which was terminated in March 2025. The credit risk from
deposits or financial derivatives are steered based on Mercedes-Benz Group’s global
counterparty limits.
As financing entity within the Mercedes-Benz Group, the Company is partially
exposed to strategic-, financial reporting-, legal- and regulatory risks.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Management Report
Strategic risks arise from the Company's dependence on the Group's
creditworthiness and financing strategy, mitigated through close alignment with
Group treasury and the Groups diversified funding strategy. Financial reporting risks
relate to the complexity of the Company’s financial instruments, addressed through
robust internal controls and Group-wide accounting policies. The accounting of
financial instruments is supported by a specialist team of Mercedes-Benz Group.
Legal- and regulatory risks arise from an evolving regulatory landscape, such as EU
regulations, and cross-border tax obligations, which is managed through ongoing
monitoring by the Company’s management and, if necessary, external advisory
support.
Integrity and compliance
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, which
is publicly available on the official website of Mercedes-Benz Group AG. This
framework contains 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.
ESG Reporting Regulation
ESG reporting regulation, Corporate Sustainability Reporting Directive (short: CSRD),
is being implemented in Europe. The broader group implemented CSRD at Group
level to report over financial year 2024 onwards. The Company is monitoring the
standalone reporting requirements and noted that with the stop-the-clock directive
reporting requirements for the Company are delayed until reporting over financial
year 2027. At the same time, if current Omnibus proposals would become law all
standalone, ESG reporting requirements for the Company would likely not come into
effect anymore.
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.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Management Report
Events after the balance sheet date
At the end of December 2025, the Board of Management of Mercedes-Benz Group
AG decided to sell the Athlon Group companies. Mercedes-Benz Group is currently
in exclusive negotiations with BNP Paribas. Given the magnitude of the transaction
and the respective Athlon share in the portfolio, the Company is assessing and
monitoring the impact closely.
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, efficient, and effective use of financing capital 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.
For the year 2026, the Financial result from the Company’s operating activities is
expected to evolve in line with the balance sheet development. The changes in the
fair value of derivative financial instruments may have another impact on the financial
performance 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. This is especially true for financial market developments, which remain
volatile due to current geopolitical tensions in the Middle East. Undue reliance should
not be placed on forward-looking statements which speak only as of the date of this
report.
Nieuwegein, April 28, 2026
The Board of Management
Maarten van Pelt
Tim Tode
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Financial Statements
FINANCIAL
STATEMENTS
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Financial Statements
Financial Statements
Statement of Income and Statement of Comprehensive Income/Loss
For the year ended 31 December 2025
in euro thousand
Note
2025
2024
Interest income Mercedes-Benz Group companies
1,409,240
1,894,200
Interest income third parties
6,784
28,075
Interest income
3
1,416,024
1,922,275
Interest expense Mercedes-Benz Group companies
-933,018
-1,392,119
Interest expense third parties
-442,255
-483,821
Interest expense
3
-1,375,273
-1,875,940
Net interest income
3
40,751
46,335
Other financial income and expense
4
-492
769
Financial result
40,259
47,104
General and administrative expenses
5
-1,905
-1,656
Income before taxation
38,354
45,448
Income taxes
6
-14,156
-26,087
Net income
24,198
19,361
Other comprehensive income/loss
Derivative financial instruments
Unrealized gains/losses (pre-tax)
149,707
-65,007
Reclassifications to profit and loss (pre-tax)
-133,596
13,884
Taxes on unrealized gains/losses and on reclassifications
-4,157
13,190
Derivative financial instruments (after tax)
12
11,954
-37,933
Total comprehensive income/loss
36,152
-18,572
The Total comprehensive income is attributable to the shareholder of the Company.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Financial Statements
Statement of Financial Position (before appropriation of result)
As at 31 December 2025
Assets
Note
31.12.2025
31.12.2024
in euro thousand
Property, plant and equipment
7
193
246
8
3,624,308
Receivables from Mercedes-Benz Group companies
8,456,196
Derivative assets
19
176,593
309,879
Deferred tax assets
6
3,475
7,640
Total non-current assets
3,804,569
8,773,961
Receivables from Mercedes-Benz Group companies
8
14,522,154
13,863,717
Derivative assets
19
157,349
92,799
Cash and cash equivalents
9
4,498
3,869
Total current assets
14,684,001
13,960,385
Total assets
18,488,570
22,734,346
Equity and liabilities
Note
31.12.2025
31.12.2024
in euro thousand
Issued capital
10
500
500
Share premium reserve
11
500,000
500,000
Cash flow hedge reserve
12
-9,861
-21,815
Retained earnings
13
103,448
84,087
Result for the year
14
24,198
19,361
Total equity
618,285
582,133
Debt securities
15
10,449,967
14,792,159
Liabilities due to Mercedes-Benz Group companies
16
50,000
50,000
Derivative liabilities
19
124,588
451,239
Deferred tax liabilities
6
-
-
Total non-current liabilities
10,624,555
15,293,398
Debt securities
15
7,078,404
6,524,896
Liabilities due to Mercedes-Benz Group companies
16
19,999
120,229
Derivative liabilities
19
143,942
211,818
Other liabilities
17
3,385
1,872
Total current liabilities
7,245,730
6,858,815
Total equity and liabilities
18,488,570
22,734,346
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Financial Statements
Statement of Changes in Equity
As at 31 December 2025
n euro thousand
Issued
Share
Cash flow
Retained
Undis-
Total
capital
premium
hedge
earnings
tributed
equity
reserve
reserve
income
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
Balance at January 1, 2025
500
500,000
-21,815
84,087
19,361
582,133
Net income/loss
-
-
-
-
24,198
24,198
Other comprehensive income/loss after tax
-
-
11,954
-
-
11,954
Total comprehensive income/loss
-
-
11,954
-
24,198
36,152
Appropriation of results 2024
-
-
-
19,361
-19,361
-
Balance at December 31, 2025
500
500,000
-9,861
103,448
24,198
618,285
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Financial Statements
Statement of Cash Flows
For the year ended 31 December 2025
in euro thousand
Note
2025
2024
Net income/loss
24,198
19,361
Adjustments for non-cash items
Interest income
3
-1,416,024
-1,922,275
Interest expense
3
1,375,273
1,875,940
Other financial income and expense
4
492
-769
Income taxes
6
14,156
26,087
Changes in operating assets and liabilities
Additions to Receivables from Mercedes-Benz Group companies
8
-216,748,000
-87,160,408
Repayment of Receivables from Mercedes-Benz Group companies
8
220,615,793
91,384,963
Other liabilities
17
-1,694
-1,864
Derivative foreign currency received
4
370,956
687,006
Derivative foreign currency paid
4
-408,190
-659,876
Interest received
3
1,566,840
1,942,648
Interest paid
3
-1,597,665
-1,949,814
Tax paid
6
-12,461
-27,647
Cash used for/provided by operating activities
3,783,674
4,213,352
Cash flows from financing activities
Additions to Debt securities
15
2,623,551
5,930,752
Repayment of Debt securities
15
-6,306,596
-5,437,936
Additions to Liabilities due to Mercedes-Benz Group companies
16
-
43,332,215
Repayment of Liabilities due to Mercedes-Benz Group companies
16
-100,000
-48,040,000
Cash inflow/outflow from financing activities
-3,783,045
-4,214,969
Net increase/decrease in Cash and cash equivalents
629
-1,617
Cash and cash equivalents at January 1
3,869
5,486
Cash and cash equivalents at December 31
9
4,498
3,869
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
Notes to 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. The ultimate parent
company of the Group is Mercedes-Benz Group AG, Germany, which prepares
consolidated financial statements that are publicly available. 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 consists of 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
5 persons in the Netherlands (2024: 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,
2026.
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
There are no financial standards issued by the IASB that are applied for the first time
during the financial year 2025.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
New standards and interpretations not yet adopted
In April 2024 the IASB issued the standard IFRS 18 “Presentation and Disclosure in
Financial Statements”. The aim of the standard is to improve the presentation of
financial information as well as to increase the transparency and comparability of
financial statements. IFRS 18 will in future replace IAS 1 “Presentation of Financial
Statements” and includes regulations for the presentation and classification of items
in the Statement of Income, the Statement of Financial Position and the Statement
of Cash Flows. In addition, certain performance indicators defined by the Board of
Management (so-called Management Performance Measures) are to be disclosed in
a separate note to the Financial Statements, and improved guidelines for the
aggregation and disaggregation of items will be introduced.
The application of IFRS 18 is mandatory for reporting periods beginning on or after
1 January 2027. Earlier application is permitted but not planned by the Company.
The company is currently analysing, in particular, the effects of IFRS 18 on the
structure of the Income Statement and the Statement of Cash Flows, as well as the
necessity and scope of the additionally required disclosures and the need for
amended aggregation or disaggregation of items.
Going concern
The Financial Statements have been prepared on a going concern basis.
Management has assessed the Company’s ability to continue as a going concern and
is satisfied that it has adequate resources to continue its operations for the
foreseeable future. In making this assessment, management considered the
Company’s financial position, liquidity, available funding sources and the continued
support of its parent company. No material uncertainties have been identified that
may cast significant doubt on the Company’s ability to continue as a going concern.
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.
Disclosure of changes in accounting policies
The accounting policies adopted in the preparation of these financial statements are
consistent with those followed in the previous financial year. There have been no
changes in accounting policies during the reporting period.
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
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
they are expected to be realized or settled within one year or within a longer and
normal operating cycle. Deferred tax assets and liabilities 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, 2025.
Financial result
The Financial result includes 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 from loans to group companies and
earnings from derivatives held during the year. 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) consist 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
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
finally assessed, however, excluding interest expenses and interest refunds and
penalties on the underpayment of taxes.
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. Depreciable property, plant and equipment are written down by
scheduled depreciation over the corresponding useful life, generally on a straight-
line basis.
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 consists of 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 on a straight-line basis over
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
the shorter of the lease term and the useful life of the underlying asset.
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.
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 consist of the Receivables from Mercedes-Benz Group
companies (note 8), Cash and cash equivalents (note 9) 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.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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 on bank accounts which are not part of the Inhouse
Bank of Mercedes-Benz Group AG. The cash positions correspond to 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.
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
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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-
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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 an assessment of the probability of default, which is made
at least quarterly, incorporating external credit rating information as well as internal
information on the credit quality of the financial asset. For debt instruments that are
not receivables from financial services, a significant increase in credit risk is assessed
mainly based on past-due information or the probability of default.
A financial asset is migrated to stage 2 if the asset’s credit risk has increased
significantly compared to its credit risk at initial recognition. Indicators of a significant
increase in credit risk may be past due dates of more than 30 days or an increase in
debtor-specific risk premiums. For trade receivables, the simplified approach is
applied whereby all trade receivables are allocated to stage 2 initially. Hence, no
determination of significant increases in credit risk is necessary. The Mercedes-Benz
Group applies the low-credit-risk exception to the stage allocation to quoted debt
instruments with investment-grade ratings. These debt instruments are always
allocated to stage 1. In stages 1 and 2, the effective interest revenue is calculated
based on gross carrying amounts. If a financial asset becomes credit impaired in
stage 3, the effective interest revenue is calculated based on its net carrying amount
(gross carrying amount adjusted for any loss allowance).
Measurement of expected credit losses
Expected credit losses are measured in a way that reflects:
a) the unbiased and probability-weighted amount,
b) the time value of money,
c) reasonable and supportable information (if available without undue cost or
effort) at the reporting date about past events, current conditions and forecasts of
future economic conditions.
Expected credit losses are measured as the probability-weighted present value of all
cash shortfalls over the expected life of each financial asset.
For receivables from financial services, expected credit losses are calculated using a
statistical model with three major risk parameters: probability of default, loss given
default and exposure at default.
The estimation of these risk parameters incorporates all available relevant
information, not only historical and current loss data, but also reasonable and
supportable forward-looking information reflected by future expectations. This
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
information includes macroeconomic factors (e.g. gross domestic product growth,
unemployment rate, cost performance index) and forecasts of future economic
conditions. For receivables from financial services, these forecasts are performed
using a scenario analysis (basic scenario, optimistic scenario and pessimistic
scenario). The impairment amount for trade receivables is predominantly determined
on a collective basis.
A financial instrument is written off when there is no reasonable expectation of
recovery in whole or in part, for example, after the end of insolvency proceedings or
after a court decision of uncollectibility.
As all receivables are due from Group companies and their development is closely
monitored on a monthly basis, the Company considers that the associated credit risk
is effectively mitigated. Accordingly, no material expected credit loss allowance is
recognized in respect of these receivables.
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.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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.
In accordance with IFRS 13 The fair value measurement of derivative financial
instruments incorporates adjustments for counterparty credit risk (Credit Valuation
Adjustment – CVA) and the Company’s own credit risk (Debit Valuation Adjustment
– DVA). These adjustments are determined using valuation techniques that consider
expected future exposure profiles, incorporating both current and potential future
exposures over the life of the instruments. The estimation of CVA and DVA reflects
market-implied credit spreads, probability of default, and loss given default, derived
from observable market data where available.
The calculation of credit risk adjustments also takes into account the impact of
netting agreements and collateral arrangements, including margining practices,
where applicable. CVA represents the adjustment to reflect the risk of counterparty
default, while DVA reflects the adjustment for the Company’s own non-performance
risk. These components are measured on a bilateral basis and are included as an
integral part of the fair value of derivative financial instruments.
The inputs and assumptions applied in the measurement of CVA and DVA are subject
to periodic review and are updated to reflect prevailing market conditions at each
reporting date.
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
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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 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
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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. The related costs to the
defined contribution plan are recognized as General administrative expenses (note
5) in the income statement.
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 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
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
of future tax advantages being partially or fully unrealized is more than 50%, the
deferred tax assets are reduced (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 as Standard and Poor and Moody’s; (ii) significant changes in the expected
performance and behavior of the borrower, including changes in the payment status
of borrowers in Mercedes-Benz 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 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. In this context,
further factors are taken into consideration, including historical loss experience, size
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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
2025
2024
Interest income on financial assets at amortized cost
424,236
562,055
Interest income on financial assets included in a hedge relationship
978,850
1,321,625
Interest income on derivatives not included in a hedge relationship
12,938
38,595
Interest income
1,416,024
1,922,275
Interest expense on financial liabilities at amortized cost
-85,499
-156,303
Interest expense on financial liabilities included in a hedge relationship
-1,277,046
-1,695,099
Interest expense on derivatives not included in a hedge relationship
-12,728
-24,538
Interest expense
-1,375,273
-1,875,940
Interest result
40,751
46,335
The Interest result is split between Mercedes-Benz Group companies and third
parties:
in euro thousand
2025
2024
Interest income Mercedes-Benz Group companies
1,409,240
1,894,200
Interest income third parties
6,784
28,075
Interest income
1,416,024
1,922,275
Interest expense Mercedes-Benz Group companies
-933,018
-1,392,119
Interest expense third parties
-442,255
-483,821
Interest expense
-1,375,273
-1,875,940
Interest result
40,751
46,335
The Interest income from third parties of euro 6,784 thousand (2024: euro 28,075
thousand) was mainly earned from the derivatives held during the year. The Interest
expense from third parties of euro 442,255 thousand (2024: euro 483,821 thousand)
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
include the interest expense due to debt securities outstanding during the year.
The Interest result decreased to euro 40,751 thousand (2024: euro 46,335 thousand).
In 2025, the Company received a compensation payment amounting euro 54,000
thousand from its shareholder (2024: euro 35,000 thousand) 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 2025, the line item showed a loss of euro 492 thousand (2024:
gain of euro 769 thousand) due to exchange rate differences which decreased the
Financial result.
05. General administrative expenses
in euro thousand
2025
2024
Salaries and social security charges
-700
-442
Pension costs – defined contribution plan
-37
-29
Audit and advisory costs
-143
-118
Other general administrative expense
-1,025
-1,067
General administrative expense
-1,905
-1,656
The General administrative expense in total amounted to euro 1,905 thousand in
2025 (2024: euro 1,656 thousand) and consists of expenses not directly attributable
to operating activities, such as personnel expenses, audit and advisory costs, and
other general administrative costs.
The personnel expenses consist of salaries and wages in the amount of euro 667
thousand (2024: euro 419 thousand), social contributions in the amount of euro 33
thousand (2024: euro 23 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.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
With reference to section 2:382a (1) and (2) of the Dutch Civil Code, the following
audit fees have been charged by PwC Accountants N.V. as the auditor of the
Company:
in euro thousand
2025
2024
Audit services
-143
-118
Advisory services
-
-
Tax services
-
-
Non-audit services
-
-
The Other general administrative expense consists of legal charges and advisory
costs related to the debt issuance program, housing costs and other administrative
costs.
06. Income taxes
The following table shows the components of Income taxes:
in euro thousand
2025
2024
Current tax income/expense
-14,156
-26,087
Deferred tax income/expense
-
-
Income taxes in the Statement of Income
-14,156
-26,087
The reconciliation of the effective tax rate is shown below:
in euro thousand
2025
2024
Income before taxation
38,354
45,448
Income taxes using the domestic corporate tax rate (calculation)
25.8% -9,895
25.8% -11,726
Tax benefit/loss related to other periods
1,222
812
Tax loss related to foreign taxes (Withholding tax)
-8,063
-20,971
Deductible foreign taxes
2,580
5,798
Income taxes in the Statement of Income
-14,156
-26,087
Effective tax rate
36.9%
57.4%
The deferred tax asset of euro 3,475 thousand (2024: deferred tax liabilities of euro
7,640 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.
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
In 2025, Other liabilities include an amount of 2,754 thousand related to taxation and
social security premiums. (2024: euro 1.042 thousand)
07. Property, plant and equipment
Property, plant and equipment as shown in the Statement of Financial Position with
a carrying amount of euro 193 thousand (2024: euro 246 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 172 thousand (2024: euro 225 thousand). The remaining
duration is 3 years. The lease payment per year is euro 50 thousand.
08. Receivables from Mercedes-Benz Group companies
in euro thousand
31.12.2025
31.12.2024
Non-current receivables from Mercedes-Benz Group companies
3,624,308
8,456,196
Current receivables from Mercedes-Benz Group companies
14,522,154
13,863,717
Receivables from Mercedes-Benz Group companies
18,146,462
22,319,913
The Receivables from Mercedes-Benz Group companies declined by euro 4,173
million to a level of euro 18,146 million as per December 31, 2025. This decrease
relates to a decline in financing activities for Mercedes-Benz Group companies
performed by the Company.
The Receivables from Mercedes-Benz Group companies consisted of 99% (2024:
96%) fixed rate loans. The Inhouse Bank position with Mercedes-Benz Group AG is
described in note 9.
in euro thousand
31.12.2025
31.12.2024
Receivables from Mercedes-Benz Group companies
17,537,906
22,290,215
Inhouse Bank Mercedes-Benz Group AG
608,556
29,698
Receivables from Mercedes-Benz Group companies
18,146,462
22,319,913
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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
31.12.2025
14,522,154
3,624,308
-
18,146,462
31.12.2024
13,863,717
8,456,196
-
22,319,913
09. Cash and cash equivalents
The Company participates in the Global Payment Platform and Inhouse Bank of
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). Cash and cash equivalents consist of cash on bank accounts which are not part of
the Inhouse Bank of Mercedes-Benz Group AG amounting to euro 4.5 million (2024:
euro 3.9 million).
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 have 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.
At December 31, 2025, the Cash flow hedge reserve charged directly to shareholder’s
equity add up to euro 12 million positive (2024: euro 37.9 million negative). The Cash
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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
2025
2024
Balance at January 1
-21,815
16,119
Unrealized gains/losses (pre-tax)
Foreign currency derivatives
136,767
-13,619
Interest rate derivatives
12,940
-51,388
Reclassifications to profit and loss (pre-tax)
Foreign currency derivatives
-133,596
13,884
Taxes on unrealized gains/losses and on reclassifications
-4,157
13,190
Balance at December 31
-9,861
-21,815
Unrealized revaluation of cash flow hedges charged directly to shareholder’s equity
11,954
-37,933
13. Retained earnings
The Retained earnings consist of 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 2025
amounting to euro 24.2 million (2024: euro 19.4 million) to the Retained earnings.
15. Debt securities
in euro thousand
31.12.2025
31.12.2024
Total bonds
17,528,371
21,317,055
Non-current bonds
10,449,967
14,792,159
Current bonds
7,078,404
6,524,896
Debt securities
17,528,371
21,317,055
The Company participated as an issuer in Mercedes-Benz Group’s euro 70 billion
Euro Medium Term Note program (“EMTN”), Mercedes-Benz Group’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).
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Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
These Mercedes-Benz Group 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 2025, the company issued a number of 7 bonds in a total nominal amount of euro
2.6 billion. Its outstanding volume under CP program (“CP”) amounted to euro nil
(2024: euro nil).
The following table shows the reconciliation of the Debt Securities:
in euro thousand
2025
2024
Balance at January 1
21,317,055
20,382,924
Issuances
2,623,551
5,930,752
Redemptions
-6,306,596
5,437,936
Exchange Rate Changes
-96,667
118,735
Fair Value Changes
72,780
404,682
Price Changes
-50,206
-52,285
Change in Accrued Interest
-31,546
-29,817
Balance at December 31
17,528,371
21,317,055
16. Liabilities due to Mercedes-Benz Group Companies
in euro thousand
31.12.2025
31.12.2024
Non-current liabilities due to Mercedes-Benz Group companies
50,000
50,000
Current liabilities due to Mercedes-Benz Group companies
19,999
120,229
Liabilities due to Mercedes-Benz Group companies
69,999
170,229
All Liabilities due to Mercedes-Benz Group companies are based on fixed interest
rates.
in euro thousand
31.12.2025
31.12.2024
Liabilities due to Mercedes-Benz Group AG
19,536
21,616
Liabilities due to Mercedes-Benz Capital Investments B.V.
50,463
148,388
Liabilities due to Mercedes-Benz Nederland B.V.
-
225
Liabilities due to Mercedes-Benz Group companies
69,999
170,229
35
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
17. Other liabilities
in euro thousand
31.12.2025
31.12.2024
Taxation and social security premiums
2,754
1,042
Other liabilities, including provisions for audit services, employee bonus and other
631
830
accrued expenses
Other liabilities
3,385
1,872
18. Contingent liabilities
At December 31, 2025, the Company had no off-balance sheet commitments (2024:
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:
Assets
Carrying amount
Fair value
in euro thousand
31.12.2025
31.12.2024
31.12.2025
31.12.2024
Derivative assets
Fair value hedges
303,233
368,312
303,233
368,312
Cash flow hedges
748
14,358
748
14,358
Other derivative assets
29,961
20,008
29,961
20,008
Receivables from Mercedes-Benz Group
18,146,462
22,319,913
18,215,327
22,468,101
Companies
Cash and cash equivalents
4,498
3,869
4,498
3,869
Total financial assets
18,484,902
22,726,460
18,553,767
22,874,648
Liabilities
Carrying amount
Fair value
in euro thousand
31.12.2025
31.12.2024
31.12.2025
31.12.2024
Derivative liabilities
Fair value hedges
205,543
523,272
205,543
523,272
Cash flow hedges
62,987
112,337
62,987
112,337
Other derivative liabilities
-
27,448
-
27,448
Debt securities
17,528,371
21,317,055
17,608,871
21,305,886
Liabilities due to Mercedes-Benz Group
69,999
170,229
70,435
171,484
Companies
Other liabilities
3,385
1,872
3,385
1,872
Total financial liabilities
17,870,285
22,152,213
17,951,221
22,142,299
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
36
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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 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 on the next page shows the carrying amounts of the derivative
financial instruments and the possible financial effects of netting in accordance with
the enforceable netting arrangements:
37
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
in euro thousand
31.12.2025
31.12.2024
Assets
Liabilities
Assets
Liabilities
Gross amounts (balance sheet)
333,942
-268,530
402,678
-663,057
Possible netting in case of insolvency
-268,530
268,530
-384,507
384,507
Net amount after offsetting
65,412
-
18,171
-278,550
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
31.12.2025
31.12.2024
in euro thousand
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Derivative assets
Fair value hedges
-
303,233
-
-
368,312
-
Cash flow hedges
-
748
-
-
14,358
-
Other derivative assets
-
29,961
-
-
20,008
-
Receivables from Mercedes-Benz Group
-
18,215,327
-
-
22,468,101
-
companies
Cash and cash equivalents
-
4,498
-
-
3,869
-
Liabilities
31.12.2025
31.12.2024
in euro thousand
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Derivative liabilities
Fair value hedges
-
205,543
-
-
523,272
-
Cash flow hedges
-
62,987
-
-
112,337
-
Other derivative liabilities
-
-
-
-
27,448
-
Debt securities
14,958,216
2,650,655
-
20,273,376
1,032,510
-
Liabilities due to Mercedes-Benz Group
-
70,435
-
-
171,484
-
companies
Other liabilities
-
3,385
-
-
1,872
-
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 on the next page. 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.
38
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
Assets
31.12.2025
31.12.2024
in euro thousand
Receivables from Mercedes-Benz Group companies
18,146,462
22,319,913
Cash and cash equivalents
4,498
3,869
Total financial assets measured at amortized cost
18,150,960
22,323,782
31.12.2025
31.12.2024
Liabilities
in euro thousand
Debt securities
17,528,371
21,317,055
Liabilities due to Mercedes-Benz Group companies
69,999
170,229
Other liabilities
3,385
1,872
Total financial liabilities measured at amortized cost
17,601,755
21,489,156
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).
in euro thousand
2025
2024
Financial instruments measured at fair value through profit and loss
-137,525
-287,654
Financial assets measured at amortized cost
1,480,300
1,573,858
Financial liabilities measured at amortized cost
-1,436,111
-1,201,139
The net gains or losses on financial instruments measured at fair value through profit
or loss include 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
include 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.
39
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to 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, 2025
Carrying amount of the hedging instruments
Derivative assets non-current
175,890
703
-
-
Derivative assets current
127,343
45
-
29,961
Derivative liabilities non-current
112,090
12,498
-
-
Derivative liabilities current
93,453
50,489
-
-
Fair value changes4
79,643
149,707
-
-
December 31, 2024
Carrying amount of the hedging instruments
Derivative assets non-current
307,594
2,285
-
-
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
-
-
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 on the
next page:
40
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
in euro thousand
Interest rate risks
2025
2024
December 31
Carrying amounts of the hedged items
Receivables from Mercedes-Benz Group Companies non-current
2,625,326
5,030,062
Receivables from Mercedes-Benz Group Companies current
2,530,835
2,451,835
thereof hedge adjustments
Receivables from Mercedes-Benz Group Companies non-current
30,230
40,555
Receivables from Mercedes-Benz Group Companies current
8,742
3,134
Debt securities and liabilities to Mercedes-Benz Group Companies current
5,991,319
4,724,767
Debt securities and liabilities to Mercedes-Benz Companies non-current
9,450,003
13,208,116
thereof hedge adjustments
Debt securities and liabilities to Mercedes-Benz Group Companies current
-35,487
-39,031
Debt securities and liabilities to Mercedes-Benz Group Companies non-current
15,573
-55,809
Fair value changes of the hedged items1
-79,643
-340,075
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.
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
2025
2024
Revaluation on hedging instruments (Foreign currency derivatives)
2,334
-45,874
Revaluation on hedging instruments (Interest rate derivatives)
77,309
385,949
Fair value changes from hedged items attributable to hedged risk
-79,643
-340,075
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.
Cash flow hedge accounting is applied only to interest rate risk exposures, primarily
through interest rate swaps and cross-currency interest rate swaps. Foreign currency
risk is economically hedged using foreign exchange derivatives; however, these
instruments are not designated in cash flow hedge relationships. As a result, no
amounts relating to foreign currency risk are presented within the cash flow hedge
reserve.
41
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
The amounts related to items designated as cash flow hedges are shown in the table
below:
in euro thousand
Interest rate risks
Currency risks
2025
2024
2025
2024
Fair value changes of the hedged
149,707
-65,007
-
-
items1
Balance of the reserves for derivative
-13,289
-29,400
-
-
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
2025
2024
Revaluation on hedging instruments (Foreign currency derivatives)
136,767
-13,619
Revaluation on hedging instruments (Interest rate derivatives)
12,940
-51,388
Ineffective portion of cash flow hedges
-
-
Unrealized gains/losses (pre-tax)
149,707
-65,007
Reclassifications to profit and loss (pre-tax)
-133,596
13,884
Taxes on unrealized gains/losses and on reclassification
-4,157
13,190
Unrealized revaluation of cash flow hedges charged directly to shareholder’s equity
11,954
-37,933
For the reconciliation of the Cash flow hedge reserve see note 12.
Nominal values of derivative financial instruments
The following table on the next page shows the nominal values and fair values of
derivative financial instruments executed for the purpose of hedging interest rate-
and currency risks that arise from the Company’s operating or financing activities.
42
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
Assets
31.12.2025
31.12.2024
in euro thousand
Nominal amount
Fair value
Nominal amount
Fair value
Interest rate derivatives
6,080,880
135,246
7,229,241
218,741
thereof fair value hedges
6,080,880
135,246
6,794,241
212,729
thereof cash flow hedges
-
-
435,000
6,012
Foreign currency derivatives
4,068,771
198,696
5,160,542
183,937
thereof fair value hedges
3,745,692
167,987
2,493,969
155,583
thereof cash flow hedges
62,667
748
597,878
8,346
thereof other derivative assets
260,412
29,961
2,068,695
20,008
Total derivative financial instruments
10,149,651
333,942
12,389,783
402,678
Liabilities
31.12.2025
31.12.2024
in euro thousand
Nominal amount
Fair value
Nominal amount
Fair value
Interest rate derivatives
9,656,880
133,428
15,003,683
357,606
thereof fair value hedges
7,220,000
83,149
9,920,000
248,660
thereof cash flow hedges
2,436,880
50,279
5,083,683
108,946
Foreign currency derivatives
3,550,325
135,102
9,029,475
305,451
thereof fair value hedges
3,310,063
122,394
5,954,090
274,612
thereof cash flow hedges
240,262
12,708
235,121
3,391
thereof other derivative assets
-
-
2,840,264
27,448
Total derivative financial instruments
13,207,205
268,530
24,033,158
663,057
The nominal values of derivative financial instruments have the following maturity
structure:
in euro thousand
Maturity within
Maturity between
Maturity later
Total
one year
one and five years
than five years
nominal amounts
December 31, 2025
Nominal amount of the hedging instruments
Interest rate risks
10,525,802
10,220,642
2,350,000
23,096,444
Fair value hedges
8,297,475
9,709,160
2,350,000
20,356,635
Cash flow hedges
2,228,327
511,482
-
2,739,809
thereof major hedging instruments affected
-
-
-
-
by the interest rate benchmark reform
Foreign currency risks
260,412
-
-
260,412
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 in
-
-
-
-
PLN1
Foreign currency risks
4,908,959
-
-
4,908,959
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.
43
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
Further disclosures of interest rate and currency risk see note 20 under the section
Market risk.
20. Risk management
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 especially exposed to
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 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
44
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
risk, are equal to their carrying amounts. The following table gives an overview of
maximum exposures:
in euro thousand
31.12.2025
31.12.2024
Receivables from Mercedes-Benz Group companies
18,146,462
22,319,913
(incl. Inhouse Bank Mercedes-Benz Group AG)
Cash and Cash equivalents
4,498
3,869
Derivative assets
333,942
402,678
Total exposure
18,484,902
22,726,460
The Company has recognized no credit defaults in the relevant reporting periods.
Liquidity risk
Liquidity risk includes 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 Company’s exposure to liquidity risk arises primarily from its financial liabilities,
including debt securities, liabilities to group companies, and derivative financial
instruments.
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, 2025.
in euro thousand1
Total
2026
2027
2028
2029
2030
≥2030
Debt securities2
-18,648,133
-7,333,105
-5,337,099
-1,716,969
-452,693
-1,337,222 -2,471,045
Liabilities due to Mercedes-Benz
-52,776
-1,388
-51,388
-
-
-
-
Group companies2
Derivative financial instruments3
-253,781
-175,210
-48,778
-20,270
-8,060
-2,752
1,289
thereof with gross settlement
-118,819
-59,213
-33,127
-20,493
-5,986
-
-
Cash outflows
-3,732,290
-1,822,187
-1,304,137
-465,183
-140,783
-
-
Cash inflows
3,613,471
1,762,974
1,271,010
444,690
134,797
-
-
thereof with net settlement
-134,962
-115,997
-15,651
223
-2,074
-2,752
1,289
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
45
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
securities.
Market risk
The Company is mainly exposed to market risks which include 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 is 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 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,
46
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
including the impact of the relevant derivative financial instruments.
The following table shows the period-end value at risk figures of the interest rate risk
for the 2025 and 2024 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.
in euro thousand
31.12.2025
31.12.2024
Interest rate risk
798
3,183
In the course of the year 2025, changes on the value at risk of interest rate sensitive
financial instruments were primarily determined by the development of interest rate
volatilities.
In accordance with IFRS 7, the Company has performed a sensitivity analysis to assess
the impact of reasonably possible changes in interest rates on profit or loss and
equity. The analysis is based on financial instruments held at the reporting date,
including derivative financial instruments, with all other variables held constant. A
100 basis points change in the reference interest rates would lead to the following
increases/(decreases), gross from tax, in equity and results.
in euro thousand
31.12.2025
31.12.2024
Result
Equity
Result
Equity
100 bp
100 bp
100 bp
100 bp
100 bp
100 bp
100 bp
100 bp
Increase
Decrease
Increase
Decrease
Increase
Decrease
Increase Decrease
Assets
Cashflow effect:
Hedged Assets
184,747
-184,747
57
-57
226,876
-226,876
350
-350
Liabilities
Cashflow effect:
Hedged Liabilities
-178,669
178,669
-221,503
221,503
Total
6,078
-6,078
57
-57
5,372
-5,372
350
-350
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.
47
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
The following table shows the period-end value at risk figures of the exchange rate
risk for the 2025 and 2024 portfolios of exchange rate sensitive financial instruments
and derivative financial instruments of the Company (including interest payments).
in euro thousand
31.12.2025
31.12.2024
Currency risk
122
328
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).
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
of its capital. Capital comprises issued capital, share premium reserve, retained
earnings, results for the year and the cash flow hedge reserve. 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
48
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
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 (2024: 99%). The Company has a
payable to its parent company in respect of the guarantee arrangements amounting
to EUR 19.5 million (2024: eur 21.6 million). The Company also obtained funds from
affiliated companies in the amount of euro 50 million (2024: euro 148 million). During
the reporting period, the Company incurred interest expenses of euro 933 million
(2024: euro 1.3 billion) in relation to these borrowings.
The Company also enters into intercompany financing transactions with Mercedes-
Benz Group companies as part of the Group’s treasury activities. These transactions
comprise loans provided to affiliated companies. As at the reporting date,
outstanding receivables from Mercedes-Benz Group companies amounted to euro
18.1 billion (2024: euro 22.3 billion). During the reporting period, the Company
incurred interest income of euro 1.4 billion (2024: euro 1.9 million) in relation to these
49
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Notes to Financial Statements
intercompany loans. The Company assesses the recoverability of these receivables
on an ongoing basis. Given the strong credit profile of Mercedes-Benz Group
companies, no impairment has been recognised as at the reporting date.
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 0.7 million (2024: 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 to the one reported on the statement of comprehensive income.
Nieuwegein, April 28, 2026
Mercedes-Benz International Finance B.V.
The Board of Management
Maarten van Pelt
Tim Tode
The Supervisory Board
Frank Wetter
Dr. Stephanie Pfeifer
Jürgen Vogt
Chairman
50
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Other Information
OTHER
INFORMATION
51
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Other Information
Other Information
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.
52
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Responsibility Statement
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.
The Company's Management Report includes a fair review of the development,
the 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, 2026
Mercedes-Benz International Finance B.V.
The Board of Management
Maarten van Pelt
Tim Tode
53
Annual Report 2025 · Mercedes-Benz International Finance B.V.
Declaration by the Supervisory Board
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 2025 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.
-
Nieuwegein, April 28, 2026
Mercedes-BenzInternational Finance B.V.
The Supervisory Board
Frank Wetter
Dr. Stephanie Pfeifer
Jürgen Vogt
Chairman
54
Independent auditor’s report
To: the general meeting and the supervisory board of Mercedes-Benz International Finance B.V.
Report on the audit of the financial statements 2025
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 2025, 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 2025 of Mercedes-Benz International Finance
B.V., Utrecht.
The financial statements comprise:
•
the statement of financial position as at 31 December 2025;
•
the following statements for 2025: 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.
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, 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
www.pwc.nl
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.
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
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. Therefore, we do not provide separate opinions or conclusions on
information in support of our opinion, such as our findings and observations related to individual key
audit matters and the audit approach to address fraud risk and 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.
Page 2 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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.
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 a key audit matter as set out in
the section ‘Key audit matters’ of this report. Furthermore, we identified hedge accounting as a key audit
matter because of the detailed formal and technical requirements that are relevant to the application of
hedge accounting.
The Company assessed the possible effects of climate change on its financial position, refer to the section
‘ESG Reporting Regulation’ of the 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.
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.
Page 3 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
Based on our professional judgement, we determined the materiality for the financial statements as a
whole at €184,885,700. 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.
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 €9,244,000 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 in 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 Management' of the management report for
management’s fraud risk assessment.
We evaluated the design and implementation of 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 were 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.
Page 4 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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 risks
Our audit work and observations
The risk of management override of
We evaluated the design and implementation of the internal control measures,
controls
which are intended to mitigate the risk of management override of control and
to the extent relevant for our audit tested the effectiveness of this control.
The board of management is in a unique
Furthermore, we evaluated the design and implementation of the control in the
position to perpetrate fraud because of
processes for generating and processing journal entries and making of
the board of management’s ability to
estimates.
manipulate accounting records and
prepare fraudulent financial statements
We performed our audit procedures substantive based.
by overriding controls that otherwise
appear to be operating effectively. That
We selected journal entries based on risk criteria and conducted specific audit
is why, in all our audits, we pay attention
procedures for these entries, also paying attention to significant transactions
to the risk of management override of
outside the normal business operations.
controls in:
We also performed specific audit procedures related to important estimates of
•
The appropriateness of journal
the board of management including the estimation of ECL and the application
entries and other adjustments
of hedge accounting. We refer to the key audit matters for the audit procedures
made in the preparation of the
performed.
financial statements.
•
Estimates.
We specifically paid attention to the inherent risk of bias of the board of
management in estimates.
•
Significant transactions, if any,
outside the normal course of
Our audit procedures did not lead to specific indications of fraud or suspicions
business for the entity.
of fraud with respect to management override of controls.
We pay particular attention to tendencies
due to possible bias of the board of
management.
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.
Page 5 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
Audit approach going concern
As disclosed in section ‘Going Concern’ in the management report the board of management performed
its assessment of the Company’s ability to continue as a going concern for at least 12 months from the
date of preparation of the financial statements 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:
•
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, developments in credit spreads, 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;
•
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.
Page 6 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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
We performed the following procedures to test the board of
management’s assessment of the expected credit loss to
Note 8
support the valuation of the loans to Mercedes-Benz Group
AG group companies:
We considered the valuation of the loans to group
•
With respect to the ECL calculation, we determined
companies, as disclosed in note 8 to the financial
that the loans qualify as stage 1 loans by assessing
statements for a total amount of €18,146,462,000, to be a
the actual performance of the loans (i.e. no significant
key audit matter. This is due to the size of the loan portfolio
deterioration of credit risk).
and the inherent complexity involved in estimating the
expected credit losses (ECL), which requires significant
•
We evaluated the financial position of the
judgement and involves estimation uncertainty.
counterparties of loans to group companies by
assessing observable data from rating agencies, the
The board of management monitors the need for changes
latest available financial information and other
in the methods, significant assumptions or the data used in
publicly available data in order to assess if there are
making the accounting estimate by monitoring key
no adverse conditions present suggesting to classify
performance indicators that may indicate unexpected or
the loans as stage 2 or stage 3 loans.
inconsistent performance. Mainly with respect to the PD
•
For the expected credit loss, we assessed that the
and LGD used in the determination of the expected credit
impairment methodology and model applied by the
losses, the board of management has applied significant
Company were in accordance with the impairment
judgement given the low default character of the
requirements of IFRS 9. We assessed that the
Company’s loan portfolio. As a result, there is limited
forward-looking information used by the client as part
internal historical data to support and back-test the PD and
of the impairment methodology was appropriate
LGD.
considering the characteristics of the loan portfolio of
Mercedes-Benz International Finance B.V.
The board of management has determined that all loans to
group companies are categorised as stage 1 loans, hence
•
We assessed for a sample of financial instruments
only a 12-month expected credit loss (‘ECL’) has been
that the PD and LGD and the assumptions applied by
recognised.
the board of management, are appropriate and were
based upon data from external data source providers
including indicators for potential management bias.
We have recalculated the impairment recorded in the
financial statements.
We found the board of management’s assessment to be
adequate. Our procedures as set out above did not indicate
material differences.
Page 7 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
Key audit matter
How our audit addressed the matter
Hedge accounting
We performed the following procedures to support the
appropriateness of the application of hedge accounting:
Note 19
•
We tested on a sample basis whether the hedge
documentation and hedge effectiveness as prepared
We considered the application of hedge accounting to be a
by the board of management met the requirements
key audit matter. This is because of the detailed formal and
and whether the hedge effectiveness test was
technical requirements that are relevant to the application
mathematically correct.
of hedge accounting and because inappropriate application
of these requirements can lead to a material effect on the
•
We reconciled the outcome of the effectiveness
financial statements.
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.
Page 8 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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
directors’ 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 has been renewed annually by shareholders and now
represents a total period of uninterrupted engagement of 2 years.
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).
Page 9 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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.
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.
Page 10 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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.
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:
Page 11 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
•
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
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.
Page 12 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
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 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.
Amsterdam, 28 April 2026
PricewaterhouseCoopers Accountants N.V.
Original has been signed by:
H.C. van der Rijst RA
Page 13 of 13
Independent auditor’s report, Mercedes-Benz International Finance B.V., 28 April 2026
Mercedes-Benz International Finance B.V., Ravenswade 4, 3439 LD Nieuwegein, The Netherlands