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Mercedes-Benz Financial Services Australia Pty Ltd  
ABN 73 074 134 517  
Annual Financial Report  
Year Ended 31 December 2024  
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Annual Financial Report for the year ended - 31 December 2024  
Contents  
Page  
Directors' report  
1
Directors' declaration  
5
Financial statements  
Statements of Financial Position  
6
Statements of Comprehensive Income  
8
Statements of Changes in Equity  
10  
Statements of Cash Flows  
12  
Notes to the Consolidated and Company Financial Statements  
Note 1  
Reporting Entity  
13  
Note 2  
Basis of Preparation  
13  
Note 3  
Statement of material accounting policies  
18  
Note 4  
Accounting estimates and judgements  
31  
Note 5  
Revenue  
33  
Note 6  
Segment information  
34  
Note 7  
Employee expenses  
34  
Note 8  
Expenses  
35  
Note 9  
Auditor's remuneration  
35  
Note 10  
Net finance costs  
36  
Note 11  
Income tax (expense)/benefit  
37  
Note 12  
Cash and cash equivalents  
38  
Note 13  
Inventory  
38  
Note 14  
Trade and other receivables  
38  
Note 15  
Receivables from financial services  
39  
Note 16  
Derivative financial instruments  
42  
Note 17  
Other assets  
43  
Note 18  
Property, plant and equipment  
44  
Note 19  
Intangible assets  
45  
Note 20  
Current tax assets and liabilities  
46  
Note 21  
Deferred tax assets and liabilities  
47  
Note 22  
Trade and other payables  
50  
Note 23  
Interest bearing liabilities  
50  
Note 24  
Financial instruments  
53  
Note 25  
Employee benefits  
65  
Note 26  
Notes to the statement of cash flows  
66  
Note 27  
Operating leases  
68  
Note 28  
Parent entity  
68  
Note 29  
Key management personnel  
68  
Note 30  
Related party disclosures  
69  
Note 31  
Events subsequent to balance date  
71  
Note 32  
Contingencies  
71  
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Note 33  
Capital and reserves  
71  
Lead Auditor's Independence Declaration  
73  
Independent Auditor's Report  
74  
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Directors' report for the year ended 31 December 2024  
The directors present their report together with the consolidated financial statements of the Group comprising  
Mercedes-Benz Financial Services Australia Pty Ltd (“the Company”) and its controlled entities, for the year ended  
31 December 2024 and the auditor's report thereon.  
1
Directors  
Ilka Fuerstenberger (CEO)  
Director since 1 January 2022  
Rafael Pasquet (CFO)  
Director since 1 December 2017  
2
Company secretary  
Lorraine M. Parrot was appointed to the position of Company Secretary on 3 March 2018 and resigned from the  
position on 9 August 2024. Mrs Parrot held the position of General Counsel of the Company during her appointment  
as Company Secretary.  
Sarah-Jane E. Mills was appointed to the position of Company Secretary on 9 August 2024. Ms Mills has been with  
the Company for 14 years and currently holds the position of General Counsel of the Company.  
3
Officers who were previously partners of the audit firm  
There were no officers of the Company during the financial year who were previously partners of the current audit  
firm, PwC, at a time when PwC undertook an audit of the Company.  
4
Principal activities  
The principal activities of the Company during the year ended 31 December 2024 have been the provision of retail  
and wholesale financing and insurance services for passenger motor vehicles and light commercial vehicles. There  
were no significant changes in the nature of the activities of the Company during the year.  
5
Review and results of operations  
The Group made a profit after income tax from continuing operations totalling $27.2 million (2023: profit after  
income tax from continuing operations: $32.7 million) over the reporting period.  
Overview of the Company  
The Company’s presence in the Australian market continued to assist Mercedes-Benz Australia/Pacific Pty Ltd in  
achieving higher automotive sales. Fierce competition continued to be experienced during 2024 in the automobile  
finance sector.  
The Company provides leases and consumer finance primarily in relation to motor vehicles. In addition, the  
Company provides wholesale bailment facilities to motor vehicle dealers and acts as an insurance broker, principally  
in relation to motor vehicle insurance.  
1
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Directors' report for the year ended 31 December 2024 (continued)  
5
Review and results of operations (continued)  
Financial performance for the financial year ended 31 December 2024  
The year 2024 was characterised by challenging geopolitical developments, a slow ramp-up of electromobility and  
subdued consumer climate in Australia. The Company had a contract volume of $3,930 million at the end of 2024,  
which is the total monetary amount of all leasing and financing contracts on the reporting date. Impacted by the  
developments on the sales side and the continued high competition in the financial services sector in Australia, new  
business was 13.6% below the previous year’s level at $1,394 million. Gross revenue has increased by 7.5% from  
continuing operations over the reporting period. This was driven by a pricing change from the brand partner,  
Mercedes-Benz Australia/Pacific Pty Ltd, steady customer demands and high interest rate environment in Australia.  
However, due to higher interest rates and increasing competition in the financial services sector, it results in higher  
interest expenses and lower interest margin of the Company in 2024. Furthermore, higher credit risks cost has  
impacted 2024 profits before tax by a decrease of $2.3 million. This is mainly due to a challenging macroeconomic  
environment.  
6
Environmental regulation  
The Company’s operations are not subject to significant environmental regulation under either Commonwealth or  
State legislation.  
7
Dividends - Mercedes-Benz Financial Services Australia Pty Ltd  
Dividends paid or declared by the Company to members since the end of the previous financial year were:  
Cents per  
Total amount  
Franked/  
Date of  
share  
$'000  
unfranked  
payment  
27 November  
Interim 2024 ordinary dividend  
27.39  
$31,500  
Unfranked  
2024  
8
Significant changes in the state of affairs  
There have been no significant changes in the state of affairs of the Company during the period.  
9
Events subsequent to reporting date  
In March 2025, the Board of Directors of the Company approved the issuance of Euro Medium-Term Note in Euro  
Multilateral Trading Facility (“MTF”) market segment on the Luxembourg Stock Exchange (“LuxSE”). The bond  
issuance is expected to take place around mid-May 2025, subject to market conditions and regulatory approvals.  
The proceeds from the issuance will be used for the Company funding purpose.  
Other than what is noted above, there has not arisen in the interval between the end of the financial year and the  
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the  
directors of the Company, to affect significantly the operations of the Company, the results of those operations, or  
the state of affairs of the Company, in future financial years.  
2
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Directors' report for the year ended 31 December 2024 (continued)  
10 Likely developments  
Information as to likely developments in the operations of the Company and the expected results of those  
operations in future financial years has not been included in this report because disclosure of the information would  
be likely to result in unreasonable prejudice to the Company.  
11 Indemnification and insurance of officers  
Since the end of the previous financial year, the Company has not indemnified or made a relevant agreement for  
indemnifying against a liability any person who is or has been an auditor of the Company. The Company has  
purchased a professional indemnity insurance policy to cover the Company and its officers for legal liability for acts,  
errors and omissions committed by the insured in their professional capacity.  
On behalf of the Company, the Company’s ultimate parent entity, Mercedes-Benz Group AG, incurs the expense  
arising in respect of the directors’ and officers’ liability and legal insurance contract, for current and former  
directors and officers, including executive officers of the Company. The insurance policy outlined does not contain  
details of the premiums paid in respect of individual officers of the Company. No amounts are payable by the  
Company in respect of this insurance.  
12 Directors’ interest and benefits  
No director of the Company has received or become entitled to receive a benefit (other than a benefit included in  
the aggregate amount of emoluments received or due and receivable by Directors shown in the financial statements  
or the fixed salary of a full time employee of the Company or a related corporation) by reason of a contract made by  
a related corporation with the Director or with a firm of which he is a member, or with an entity in which he has a  
substantial financial interest.  
13 Proceedings on behalf of the Company  
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings  
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of  
taking responsibility on behalf of the Company/Group for all or part of those proceedings.  
No proceedings have been brought or intervened in on behalf of the Company/Group with leave of the Court under  
section 237 of the Corporations Act 2001.  
14 Lead auditor's independence declaration  
The lead auditor’s independence declaration is set out on page 73 and forms part of the directors’ report for the  
financial year ended 31 December 2024.  
15 Rounding off  
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/ Directors’ Reports) Instrument  
2016/191 and in accordance with that, amounts in the financial report and directors’ report have been rounded off  
to the nearest thousand dollars, unless otherwise stated.  
3
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Directors' report for the year ended 31 December 2024 (continued)  
Signed in accordance with a resolution of the directors:  
Rafael Pasquet  
Director  
Melbourne  
30 April 2025  
4
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Directors' declaration  
In the opinion of the directors of Mercedes-Benz Financial Services Australia Pty Ltd (“the Company”):  
(a) the financial statements and notes set out on pages 6 to 72 are in accordance with the Corporations  
Act 2001, including:  
(i) giving a true and fair view of the Group and Company’s financial position as at 31 December  
2024 and of their performance for the financial year ended on that date; and  
(ii) complying with Australian Accounting Standards (including the Australian Accounting  
Interpretations) and the Corporations Regulations 2001; and  
(iii) complying with International Financial Reporting Standards as described in Note 2(a);  
and  
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when  
they become due and payable.  
Signed in accordance with a resolution of the directors:  
Rafael Pasquet  
Director  
Melbourne  
30 April 2025  
5
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Statements of Financial Position  
As at 31 December 2024  
Consolidated  
Consolidated  
and Company  
and Company  
2023  
2024  
Restated  
$'000  
$'000  
Note  
Current assets  
Cash and cash equivalents  
12  
685  
49  
Trade and other receivables  
14  
52,892  
69,989  
Receivables from financial services  
15  
1,533,502  
1,538,317  
Inventory  
13  
8,723  
4,504  
6,744  
Derivative financial instruments  
16  
8,813  
19,760  
Other assets  
17  
16,800  
2,755  
448  
Current tax assets  
20  
1,625,061  
Total current assets  
1,638,920  
Non-current assets  
Trade and other receivables  
14  
3,637  
5,786  
Receivables from financial services  
15  
2,396,670  
2,586,471  
Property, plant and equipment  
18  
10,229  
11,433  
Intangible assets  
19  
11,928  
12,784  
12,352  
Derivative financial instruments  
16  
28,573  
15,526  
Deferred tax assets (net)  
21  
12,668  
Total non-current assets  
2,450,342  
2,657,715  
4,075,403  
Total assets  
4,296,635  
Current liabilities  
Trade and other payables  
22  
40,357  
51,527  
Interest payable  
22  
33,080  
29,514  
Interest bearing liabilities  
23  
1,031,962  
1,681,246  
7,223  
Employee entitlements  
25  
8,177  
Total current liabilities  
1,112,622  
1,770,464  
Non-current liabilities  
2,684,009  
Interest bearing liabilities  
23  
2,230,203  
10,767  
Derivative financial instruments  
16  
21,792  
440  
762  
Employee entitlements  
25  
2,695,216  
Total non-current liabilities  
2,252,757  
The Statements of Financial Position are to be read in conjunction with the accompanying notes to the financial  
statements set out on pages 13 to 72.  
6
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Statements of Financial Position  
As at 31 December 2024  
(continued)  
Consolidated  
Consolidated  
and Company  
and Company  
2023  
2024  
Restated  
$'000  
$'000  
Note  
Total liabilities  
3,807,838  
4,023,221  
Net assets  
267,565  
273,414  
Equity  
115,000  
Contributed equity  
33  
115,000  
Retained earnings  
203,800  
208,056  
Hedge revaluation reserve  
33  
2,572  
4,165  
(53,807)  
(53,807)  
Merger reserve  
Total equity  
267,565  
273,414  
The Statements of Financial Position are to be read in conjunction with the accompanying notes to the financial  
statements set out on pages 13 to 72.  
7
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Statements of Comprehensive Income  
For the year ended 31 December 2024  
Consolidated  
Consolidated  
and Company  
and Company  
2023  
2024  
Restated  
$'000  
Note  
$'000  
Interest revenue  
5
279,087  
246,440  
Other income  
5
25,248  
24,311  
5,911  
8,035  
Other revenue  
5
Total revenue  
310,246  
278,786  
Net finance cost  
10  
(175,480)  
(133,551)  
Employee expenses  
7
(21,260)  
(23,153)  
(3,574)  
Depreciation and amortisation expense  
(2,913)  
(4,975)  
Lease expense  
(8,934)  
Net impairment losses on financial assets  
8
(23,302)  
(20,998)  
Commission expense  
(936)  
(1,885)  
Other expenses  
8
(41,956)  
(40,486)  
Total expenses  
(271,483)  
(231,920)  
Profit before income tax  
38,763  
46,866  
(11,519)  
(14,177)  
Income tax expense  
11  
27,244  
32,689  
Profit from continuing operations  
Profit for the period  
27,244  
32,689  
Other comprehensive income/(loss)  
(5,266)  
Effective portion of changes in fair value of cash flow hedges  
10  
(14,834)  
Net change in fair value of cash flow hedges transferred to profit  
2,990  
or loss, net of tax  
10  
64  
683  
Income tax on other comprehensive income  
10  
4,431  
(1,593)  
Other comprehensive income for the period, net of tax  
(10,339)  
Blank  
25,651  
22,350  
Total comprehensive income for the period  
Test  
The Statements of Comprehensive Income are to be read in conjunction with the accompanying notes to the financial  
statements set out on pages 13 to 72.  
8
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Statements of Comprehensive Income  
For the year ended 31 December 2024  
(continued)  
Consolidated  
Consolidated  
and Company  
and Company  
2023  
2024  
Restated  
$'000  
Note  
$'000  
Profit is attributable to:  
Owners of the parent  
27,244  
32,689  
Profit for the period  
27,244  
32,689  
Total comprehensive income attributable to:  
Owners of the parent  
25,651  
22,350  
Total comprehensive income for the period  
25,651  
22,350  
The Statements of Comprehensive Income are to be read in conjunction with the accompanying notes to the financial  
statements set out on pages 13 to 72.  
9
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Statements of Changes in Equity  
For the year ended 31 December 2024  
Hedge  
Retained  
revaluation  
Merger  
Share capital  
earnings  
reserve  
reserve  
Total  
$'000  
$'000  
$'000  
$'000  
$'000  
Consolidated and Company  
115,000  
213,167  
(53,807)  
288,864  
Balance at 1 January 2023  
14,504  
Total comprehensive income for the period  
Profit for the period  
-
32,689  
-
-
32,689  
Net change in fair value of cash flow hedges transferred  
to profit or loss, net of tax  
-
-
(10,339)  
-
(10,339)  
Dividends to owners of the Company  
-
(37,800)  
-
-
(37,800)  
115,000  
208,056  
4,165  
(53,807)  
273,414  
Balance at 31 December 2023  
The above Statements of Changes in Equity should be read in conjunction with the notes to the financial statements set out on page 13 to 72.  
10  
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Statements of Changes in Equity  
For the year ended 31 December 2024  
(continued)  
Hedge  
Retained  
revaluation  
Merger  
Share capital  
earnings  
reserve  
reserve  
Total  
$'000  
$'000  
$'000  
$'000  
$'000  
Consolidated and Company  
115,000  
208,056  
4,165  
(53,807)  
273,414  
Balance at 1 January 2024  
Total comprehensive income for the period  
Profit for the period  
-
27,244  
-
-
27,244  
Net change in fair value of cash flow hedges  
transferred to profit or loss, net of tax  
-
-
(1,593)  
-
(1,593)  
Transactions with owners in their capacity as  
owners:  
-
(31,500)  
-
-
(31,500)  
Dividends to owners of the Company  
115,000  
203,800  
2,572  
(53,807)  
267,565  
Balance at 31 December 2024  
The above Statements of Changes in Equity should be read in conjunction with the notes to the financial statements set out on page 13 to 72.  
11  
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Statements of Cash Flows  
For the year ended 31 December 2024  
Consolidated  
Consolidated  
and Company  
and Company  
2023  
2024  
Restated  
$'000  
Note  
$'000  
Cash flows from operating activities  
Net cash outflow from lending and other operating  
activities  
92,660  
(211,273)  
Payments made to related parties for prepayment of leases  
and guaranteed residual value  
(48,875)  
(75,751)  
Receipts from related parties for the guaranteed residual  
value  
49,365  
80,530  
Interest received  
321,679  
320,177  
Interest paid  
(164,651)  
(146,841)  
Income taxes paid  
(16,075)  
(12,839)  
Net cash (used in) / inflow from operating activities  
234,103  
(45,997)  
26  
Cash flows from investing activities  
(2,030)  
Payments for plant and equipment  
(3,281)  
516  
Proceeds from sale of plant and equipment  
1,576  
Net cash from/ (used in) investing activities  
(1,514)  
(1,705)  
Cash flows from financing activities  
Proceeds from borrowings  
6,971,126  
8,772,861  
Repayment of borrowings  
(7,171,385)  
(8,687,301)  
Payments for Lease Liabilities  
(194)  
(101)  
(31,500)  
Dividends paid to company's shareholders  
(37,800)  
Net cash (used in)/ from financing activities  
(231,953)  
47,659  
Net (decrease)/increase in cash and cash equivalents  
636  
(43)  
49  
92  
Cash and cash equivalents at beginning of the period  
685  
Cash and cash equivalents at end of period  
12  
49  
The above Statements of Cash Flows should be read in conjunction with the accompanying notes.  
12  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
1
Reporting Entity  
Mercedes-Benz Financial Services Australia Pty Ltd (the “Company”) is a company domiciled in Australia. The  
address of the Company’s registered office is 44 Lexia Place, Mulgrave, Victoria. The Company is a for-profit entity  
and is primarily involved in the wholesale and retail financing of motor vehicles and insurance broking services.  
The consolidated and Company financial statements of Mercedes-Benz Financial Services Australia Pty Ltd as at the  
year ended 31 December 2024 comprise the Company, and the Company and its controlled entities (together  
referred to as the “Group”).  
2
Basis of Preparation  
(a) Statement of compliance  
The financial reports are general purpose financial reports which have been prepared in accordance with Australian  
Accounting Standards (“AAS”) (including Australian interpretations), adopted by the Australian Accounting  
Standards Board (“AASB”) and the Corporations Act 2001.  
The financial reports of the Group comply with International Financial Reporting Standards (“IFRSs”) and  
interpretations adopted by the International Accounting Standards Board ("IASB").  
The consolidated and Company financial statements were approved by the Board of Directors on 30 April 2025.  
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/ Director’s Reports) Instrument  
2016/191 and in accordance with that Instrument, amounts in the financial report have been rounded off to the  
nearest thousand dollars, unless otherwise stated.  
The disclosure in the financial report applies to both the Group and Company, unless otherwise stated.  
(b) Basis of measurement  
The financial reports are prepared on the historical cost basis except for derivative financial instruments, interest  
bearing liabilities which are subject to fair value hedging, and share based payments, which are measured at fair  
value.  
Going concern basis of accounting  
The financial reports of the Group have been prepared on a going concern basis which contemplates continuity of  
normal business activities, funding of operating activities and the realisation of assets and settlement of liabilities in  
the ordinary course of business.  
On this basis, the Directors have formed the opinion that the Group’s financial report should be prepared on a going  
concern basis.  
(c) Functional and presentation currency  
The financial reports are presented in Australian dollars which is the Group’s functional currency.  
13  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
2
Basis of Preparation (continued)  
(d) Use of estimates and judgements  
The preparation of the financial statements in conformity with Australian Accounting Standards requires  
management to make judgements, estimates and assumptions that affect the application of accounting policies and  
reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are  
based on historical experience and various other factors that are believed to be reasonable under the  
circumstances, the results of which form the basis of making the judgements about carrying values of assets and  
liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These  
accounting policies have been consistently applied by the Group.  
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are  
recognised prospectively.  
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies  
that have the most significant effect on the amount recognised in the financial statements are described in Note 4.  
(e) Basis of Consolidation  
Subsidiaries  
Subsidiaries are structured entities controlled by the Company (Mercedes-Benz Financial Services Australia Pty Ltd).  
Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies  
of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are  
exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the  
consolidated and Company financial statements from the date that control commences until the date that control  
ceases.  
During 2019, Silver Arrow Australia Trust 2019-1 ("SAAT 2019-1") was created for investment purposes as outlined  
above. SAAT 2019-1 remains active as at 31 December 2024. During 2020, Silver Arrow Australia 2020-1 ("SAA  
2020-1") was created for investment purposes as outlined above. SAA 2020-1 was closed in 2024. During 2024,  
Silver Arrow Australia 2024-1 ("SAAT 2024-1") was created for investment purposes as outlined above and remains  
active as at 31 December 2024. The controlled entities under the Company as at 31 December 2024 are SAAT  
2019-1 and SAAT 2024-1. In the normal course of business, the Company enters into transactions by which it  
transfers the eligible financial assets to the securitisation trusts. These transfers do not give rise to derecognition of  
those financial assets for the Group. The Company is entitled to any residual income of the securitisation program  
after all payments due to investors have been met.  
The financial statements of the Company and its subsidiaries included in the consolidated and Company financial  
statements are prepared using uniform recognition and measurement principles. All intercompany assets and  
liabilities, equity, income and expenses as well as cash flows from transactions between consolidated entities are  
eliminated in the course of the consolidation process.  
14  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
2
Basis of Preparation (continued)  
(f) Restatement of prior year balances  
Certain prior year figures have been restated in line with current year presentation.  
(1) In prior years, the company incorrectly presented leased assets from related parties as purchases of property  
plant and equipment with subleases treated as operating leases. In the current period, the Company has restated  
the property, plant and equipment financial statement line item given there is no control transferred as a result of  
the economic incentive to return the vehicle to the related party at the end of the lease term. As a consequence of  
this, prepayment of the headlease and guaranteed residual values have also been restated in the prior period to  
reflect this change. Refer to Note 3 for relevant accounting policies.  
31 December  
31 December  
31 December Increase /  
2023 31 December Increase /  
2022  
2023 (Decrease)  
(restated)  
2022 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
$'000  
$'000  
$'000  
Statement of Financial Position  
Current assets  
Trade and other receivables  
27,082  
42,907  
69,989  
26,934  
63,047  
89,981  
Receivables from financial  
services  
1,535,630  
2,687 1,538,317 1,533,632  
3,950 1,537,582  
Other assets  
15,418  
1,382  
16,800  
15,632  
3,883  
19,515  
Non-current assets  
Trade and other receivables  
-
5,786  
5,786  
-
9,220  
9,220  
Receivable from financial  
services  
2,585,711  
760 2,586,471 2,478,965  
776 2,479,741  
Property, plant and  
equipment  
64,955  
(53,522)  
11,433  
83,738  
(80,876)  
2,862  
Net assets  
273,414  
-
273,414  
288,864  
-
288,864  
31 December  
31 December  
31 December Increase /  
2023 31 December Increase /  
2022  
2023 (Decrease)  
(restated) 2022 (Decrease)  
(restated)  
Retained earnings  
208,056  
-
208,056  
213,167  
-
213,167  
Total equity  
273,414  
-
273,414  
288,864  
-
288,864  
15  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
2
Basis of Preparation (continued)  
(f) Restatement of prior year balances (continued)  
Profit 31 December  
31 December Increase /  
2023  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Statement of Comprehensive Income  
Depreciation and  
amortisation expense  
(12,790)  
10,057  
(2,913)  
Lease expense  
-
(8,934)  
(8,934)  
Commission expense  
(50,188)  
(1,123) ($51,311.00)  
Profit before income tax  
(63,158)  
-
(63,158)  
31 December  
31 December Increase /  
2023  
Statement of Cash Flows  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Cash flows from operating activities  
Payments made to related parties for prepayment of  
leases and guaranteed residual value  
-
75,751  
(75,751)  
Receipts from related parties for the guaranteed  
residual value  
-
(80,530)  
80,530  
Net cash (used in) / inflow from operating activities  
-
(4,779)  
4,779  
Cash flows from investing activities  
Payments for plant & equipment  
(79,032)  
(75,751)  
(3,281)  
Proceeds from sale of plant & equipment  
82,106  
80,530  
1,576  
Net cash from/ (used in) investing activities  
3,074  
4,779  
(1,705)  
Net increase in cash and cash equivalents  
3,074  
-
3,074  
(2) In prior years, the Company had included its Interest revenue and Other income under "Revenue" note in the  
financial statements. As a consequence, the affected financial statement line items for prior period has been  
restated, as below:  
16  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
2
Basis of Preparation (continued)  
(f) Restatement of prior year balances (continued)  
31 December  
31 December Increase /  
2023  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Statement of Comprehensive Income  
Revenue  
320,177  
(320,177)  
-
Other revenue  
8,035  
-
8,035  
Interest revenue  
-
295,866  
295,866  
Other income  
-
24,311  
24,311  
Total revenue  
328,212  
-
328,212  
(3) In prior years, the Company had included its commission expense (using the effective interest rate method) in  
"Commission expense" note in the financial statements. As a consequence, the affected financial statement line  
items for prior period has been restated, as below:  
31 December  
31 December Increase /  
2023  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Statement of Comprehensive Income  
Interest revenue  
295,866  
(49,426)  
246,440  
Commission expense  
(51,311)*  
49,426  
(1,885)  
Profit before income tax  
244,555  
-
244,555  
*Restated balance from Note 2 (f) (2)  
(4) In prior years, the Company had included its movement between current interest bearing liabilities and  
non-current interest bearing liabilities in "Proceeds from borrowings" and "Repayment of borrowings" in the financial  
statements. As a consequence, the affected financial statement line items for prior period has been restated, as  
below:  
31 December  
31 December Increase /  
2023  
Statement of Cash Flows  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Cash flows from financing activities  
Proceeds from borrowings  
30,308,703 (21,535,842) 8,772,861  
Repayment of borrowings  
(30,223,143) 21,535,842 (8,687,301)  
Net cash from financing activities  
85,560  
-
85,560  
17  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
2
Basis of Preparation (continued)  
(f) Restatement of prior year balances (continued)  
(5) In prior years, the Company had included its financial derivatives income and expense in the "Interest received"  
and "Interest paid" in the financial statements. The balance has been reclassified in the same manner as the cash  
flows of the position hedged. As a consequence, the affected financial statement line items for prior period has  
been restated, as below:  
31 December  
31 December Increase /  
2023  
Statement of Cash Flows  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Cash flows from operating activities  
Interest received  
463,456  
(143,279)  
320,177  
Interest paid  
(290,120)  
143,279  
(146,841)  
Net cash inflow from operating activities  
173,336  
-
173,336  
(6) In the prior year, the Company has presented cash flows from operations included in the line items "Cash inflows  
from customers" and "Cash paid to suppliers and employees". In the current period, the Company collapse these  
separately disclosed operating cash flows to a net position. In line with AASB 107, this is an acceptable  
presentation given these cash flows relate to cash inflows and outflows associated with lending activities. As a  
consequence, the affected financial statement line items for prior period has been restated, as below:  
31 December  
31 December Increase /  
2023  
Statement of Cash Flows  
2023 (Decrease)  
(restated)  
$'000  
$'000  
$'000  
Cash flows from operating activities  
Cash receipts from customers  
2,724,311 (2,724,311)  
-
Cash paid to suppliers and employees  
(2,935,584) 2,935,584  
-
Net cash outflow from lending and other operating  
activities  
-
(211,273)  
(211,273)  
Net cash inflow from operating activities  
(211,273)  
-
(211,273)  
3
Statement of material accounting policies  
The accounting policies set out below have been applied consistently to all periods presented in these financial  
statements.  
18  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(a) Foreign currency transactions  
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction.  
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Australian  
dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are  
recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical  
cost in a foreign currency are translated using the exchange rate at the date of the transaction.  
(b) Derivative financial instruments  
The Company's ultimate parent entity Mercedes-Benz Group AG uses derivative financial instruments to hedge the  
Company's exposure to changes in interest rate risks arising from the funding of operational and financing  
activities. In accordance with its treasury policy, the Company does not hold or issue derivative financial  
instruments for trading or speculative purposes.  
If the requirements for hedge accounting set out in AASB 9 are met, Mercedes-Benz Group AG designates and  
documents the hedge relationship from the date a derivative contract is entered into as a fair value hedge, a cash  
flow hedge or a hedge of a net investment in a foreign business operation. The documentation of the hedging  
relationship includes the objectives and strategy of risk management, the type of hedging relationship, the nature of  
the risk being hedged, the identification of the eligible hedging instrument and the eligible hedged item, as well as  
an assessment of the effectiveness requirements comprising the risk mitigating economic relationship, the absence  
of deteriorating effects from credit risk and the appropriate hedge ratio.  
Under AASB 9, amounts recognised in 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 Consolidated Statement of Income when the hedged  
item affects profit or loss. The ineffective portions of fair value changes are recognised 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 AASB 9. This applies for example to the fair value of options or cross currency basis spread.  
The fair value of interest rate swaps is the estimated amount that the Company would receive or pay to terminate  
the swap at the balance sheet date, taking into account current interest rates and the current creditworthiness of  
the swap counterparties.  
(c) Non-derivative financial instruments  
Non-derivative financial instruments comprise debt securities, trade and other receivables, cash and cash  
equivalents, loans and borrowings, and trade and other payables.  
19  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(c) Non-derivative financial instruments (continued)  
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal  
and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases the  
market rate of interest is determined by reference to similar lease agreements.  
(d) Hedging  
Cash flow hedges  
Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised  
asset or liability, or a highly probable forecasted transaction, the effective part of any gain or loss on the derivative  
financial instrument is recognised directly in equity. When the forecasted transaction subsequently results in the  
recognition of a non-financial asset or non-financial liability, or the forecast transaction for a non-financial asset or  
non-financial liability, the associated cumulative gain or loss is removed from equity and included in the initial cost  
or other carrying amount of the non-financial asset or liability. If a hedge of a forecasted transaction subsequently  
results in the recognition of a financial asset or a financial liability, the associated gains and losses that were  
recognised directly in equity are reclassified into profit or loss in the same period or periods during which the asset  
acquired or liability assumed affects profit or loss (i.e., when interest income or expense is recognised).  
For cash flow hedges, other than those covered above, the associated cumulative gain or loss is removed from  
equity and recognised in the income statement in the same period or periods during which the hedged forecast  
transaction affects profit or loss. The ineffective part of any gain or loss is recognised immediately in the income  
statement.  
Fair value hedges  
Changes in the fair value of a derivative hedging instrument designed as a fair value hedge are recognised in the  
profit or loss. The hedged item is adjusted to reflect changes in its fair value in respect of the risk being hedged; the  
gain or loss attributable to the hedged risk is recognised in profit or loss with an adjustment to the carrying amount  
of the hedged item.  
(e) Property, plant and equipment  
Owned assets  
Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation (see  
below) and impairment losses (refer Note 3(k)).  
20  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(e) Property, plant and equipment (continued)  
Leased assets  
Since January 1, 2019 the Company as a lessee has recognised right-of-use assets and the lease liabilities for the  
payment obligations entered into for generally all leases in the statement of financial position at present value. The  
lease liabilities include the following lease payments:  
- fixed payments including defacto fixed payments, less lease incentives receivables from the lessor;  
- variable lease payments linked to an index or interest rate;  
- the exercise price of purchase options, when exercise is estimated to be reasonably certain; and  
- contractual penalties for the termination of a lease if the lease term reflects the exercise of a termination option.  
Lease payments are discounted at the rate implicit in the lease if that rate can readily be determined. Otherwise,  
discounting is at the incremental borrowing rate. The incremental borrowing rate, which is mainly applied at the  
Company, is based on risk adjusted interest rates and determined for the respective lease terms and currencies.  
The Company generally also applies the option for contracts comprising lease components as well as non-lease  
components not to split these components.  
Extension and termination options are part of a number of leases particularly of real estate. Such contract terms  
offer the Company the greatest possible flexibility. In determining the lease term, all facts and circumstances  
offering economic incentives for exercising extension options or not exercising termination options are taken into  
account. In determining the lease term, those options are only considered if they are reasonably certain.  
Subsequent costs  
The Company recognises in the carrying amount of an item of property, plant and equipment the cost of replacing  
part of such an item when that cost is incurred if it is probable that the future economic benefits embodied within  
the item will flow to the Company and the cost of the item can be measured reliably. All other costs are recognised  
in the income statement as an expense as incurred.  
Depreciation  
The depreciation/amortisation is booked using the straight line method. The rates used for each class of asset are  
as follows:  
2024  
2023  
Motor vehicles  
10% -25%  
10% - 25%  
Leased building  
6%  
6%  
Office equipment  
5% - 20%  
5% - 20%  
Assets are depreciated or amortised from the date of acquisition or, in respect of internally constructed assets such  
as software, from the time the program is completed and first put into use. Depreciation is recognised in profit and  
loss statement on a straight-line basis. All costs associated with the development of the asset are capitalised and  
amortised as per the table above.  
21  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(e) Property, plant and equipment (continued)  
Depreciation (continued)  
Depreciation and amortisation rates and methods are reviewed annually for appropriateness. When changes are  
made, adjustments are reflected prospectively in current and future periods only.  
(f) Intangible assets  
Software  
Costs associated with maintaining software programmes are recognised as an expense as incurred. Development  
costs that are directly attributable to the design and testing of identifiable and unique software products controlled  
by the Company are recognised as intangible assets when the following criteria are met:  
•
it is technically feasible to complete the software so that it will be available for use  
•
management intends to complete the software and use or sell it  
•
there is an ability to use or sell the software  
•
it can be demonstrated how the software will generate probable future economic benefits  
•
adequate technical, financial and other resources to complete the development and to use or sell the software  
are available, and  
•
the expenditure attributable to the software during its development can be reliably measured.  
Directly attributable costs that are capitalised as part of the software include employee costs and an appropriate  
portion of relevant overheads.  
Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset is  
ready for use as follows:  
2024  
2023  
Contract Management System (CMS) Software  
20%  
20%  
Other IT software and licences (non CMS)  
20%  
20%  
(g) Inventories  
Inventories are measured at lower of cost and net realisable value. Net realisable value is the estimated selling price  
in the ordinary course of business, less the estimated costs of completion and selling expenses.  
(h) Receivables from financial services  
Receivables from financial services consist of receivables from sales financing with retail customers, receivables  
from sales financing with dealers, and finance lease contracts receivables.  
22  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(h) Receivables from financial services (continued)  
Receivables from financial services are stated at amortised cost using the effective interest rate method less any  
impairment (refer Note 3(k)). The fair value of receivables from financial services is estimated as the present value  
of future cash flows, discounted at the market rate of interest at the reporting date.  
Recognition and derecognition  
Receivable from financial services are recognised on transaction settlement date, which is the date the Company  
becomes party to an irrevocable financing arrangement.Receivable from financial services are derecognised when  
the rights to receive cash flows from the financial assets have expired or have been transferred, and the Company  
has transferred substantially all the risks and rewards of ownership.  
Receivable from financial services include a portion of receivables under securitisation within the ABS trusts. In the  
normal course of business, the Company enters into transactions by which it transfers financial assets  
to securitisation trusts. These transfers do not give rise to derecognition of those financial assets for the Company  
or the Group. The terms of the transfer of these loans do not meet the criteria for derecognition under AASB9  
Financial Instruments and are therefore recognised on the Group’s statements of financial position. AASB10  
Consolidated Financial Statements defines control when an investor is exposed or has rights to variable returns from  
its involvement with the investee and has the ability to affect those returns through its power over the investee. The  
Company bears control over the securitisation trusts requiring consolidation in the financial statements. The  
Company has no financial guarantee in relation to the securitisation of loans and receivables.  
(i) Acquisition of assets  
All assets acquired, including property, plant and equipment, are initially recorded at their cost of acquisition at the  
date of acquisition, being the fair value of the consideration provided plus incidental costs directly attributable to  
the acquisition.  
Where settlement of any cash consideration is deferred, the amounts payable are recorded at their present value,  
discounted at the rate applicable to the Company if a similar borrowing was obtained from an independent financier  
under comparable terms and conditions.  
Expenditure is only recognised as an asset when the entity controls future economic benefits as a result of the  
costs incurred, it is probable that those future economic benefits will eventuate, and the costs can be measured  
reliably.  
Costs incurred on assets subsequent to initial acquisition are capitalised when it is probable that future economic  
benefits in excess of the originally assessed performance of the asset will flow to the Company in future years.  
(j) Cash and cash equivalents  
Cash and cash equivalents comprise cash balances and call deposits which are carried at the face value of the  
amounts deposited or drawn. The carrying amounts of cash, short-term deposits and bank overdrafts approximate  
fair value. Interest revenue is accrued at the market or contracted rates, using the effective interest method.  
23  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(k) Impairment  
At each reporting date, a loss allowance is recognised for financial assets, loan commitments and financial  
guarantees other than those to be measured at fair value through profit or loss reflecting expected losses for these  
instruments. 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 recognised.  
Stage 2: expected credit losses over the lifetime - not credit impaired  
If a financial asset has a significant increase in credit risk since initial recognition but is not yet credit impaired, it is  
moved to stage 2 and measured at lifetime expected credit loss, which is defined as the expected credit loss that  
results from all possible default events over the expected life of a financial instrument.  
Stage 3: expected credit losses over the lifetime - credit impaired  
If a financial asset is defined as credit-impaired or in default, it is transferred to stage 3 and measured at lifetime  
expected credit loss. Objective evidence for a credit-impaired financial asset includes 91 days past due date and  
other information about significant financial difficulties of the borrower.  
The determination of whether a financial asset has experienced a significant increase in credit risk is based on 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. The credit risk is assessed based on the probability of default. For trade receivables, the  
simplified approach is applied whereby expected credit losses for all trade receivables are allocated to stage 2  
initially. Hence, no determination of significant increases in credit risk is necessary.  
The Company 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 stage 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).  
24  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(k) Impairment (continued)  
Measurement of expected credit losses  
Expected credit losses are measured in a way that reflects:  
i) the unbiased and probability-weighted amount;  
ii) the time value of money; and  
iii) 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 mainly  
calculated with a statistical model using 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 the future  
expectation factors. This information includes macroeconomic factors (e.g., gross domestic product growth,  
unemployment rate) 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, for example, at the end of  
insolvency proceedings or after a court decision of uncollectibility.  
Significant modification of financial assets (e.g., with a change in the present value of the contractual cash flows of  
10%) also leads to derecognition of the financial assets with a simultaneous recognition of new financial assets. This  
is estimated to be rare and immaterial for receivables from financial services. If the terms of a contract are  
renegotiated or modified and this does not result in derecognition of the contract, then the gross carrying amount of  
the contract has to be recalculated and a modification gain or loss has to be recognised in profit or loss.  
(l) Interest bearing loans and borrowings  
Interest-bearing borrowings are recognised initially at fair value less directly attributable transaction costs.  
Subsequent to initial recognition, these financial liabilities are stated at amortised cost using the effective interest  
method.  
25  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(m) Employee benefits  
Long-term service benefits  
The Company’s net obligation in respect of long-term service benefits is the amount of future benefit that  
employees have earned in return for their service in the current and prior periods. The obligation is calculated using  
expected future increases in wage and salary rates including related on-costs and expected settlement dates, and is  
discounted using the wage inflation and discount rates published by the Department of Treasury and Finance  
Victoria at the balance sheet date which have maturity dates approximating to the terms of the Company’s  
obligations. Related on-costs have also been included in the liability (refer Note 25).  
Wages, salaries, annual leave, sick leave and non-monetary benefits  
Liabilities for employee benefits for wages, salaries, annual leave and sick leave that are expected to be settled  
within 12 months of the reporting date represent present obligations resulting from employees’ services provided to  
reporting date, are calculated at undiscounted amounts based on remuneration wage and salary rates that the  
Company expects to pay as at reporting date including related on-costs, such as workers compensation insurance  
and payroll tax.  
Non-accumulating non-monetary benefits, such as medical care, housing, cars and free or subsidised goods and  
services, are expensed based on the net marginal cost to the Company as the benefits are taken by the employees.  
Bonus plan  
The Company operates an employee bonus plan which is linked to both employee and Company performance. The  
provision for bonuses is calculated at nominal amounts based on expected bonus payments.  
Employee loans  
Employees are entitled to purchase financial products similar to those offered by the Company to the public at  
lower interest rates where the lower interest rates can be offered to the members of the public. The rates offered to  
employees exceed the cost of funds to the Company.  
Defined contribution plans  
Obligations for contributions to defined contribution pension plans are recognised as an expense in the income  
statement as incurred (refer Note 25).  
Share-based payment transactions  
In 2005 Mercedes-Benz Group AG adopted the “Performance Phantom Share Plan” under which virtual shares  
(phantom shares) are granted to eligible employees entitling them to receive cash paid out after four years of  
service. The Company recognises the value of phantom shares issued in accrued liabilities. The quoted price  
represents the fair value of each phantom share because the payment per vested share depends on the quoted  
price of one ordinary share. The proportionate compensation expense for 2024 is determined based on the quoted  
price of Mercedes-Benz Group AG ordinary shares as well as the estimated target achievement grades as of 31  
December 2024 (refer Notes 7 and 25).  
26  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(n) Trade and other payables  
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial  
year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due  
within 12 months after the reporting period. They are recognised initially at their fair value and subsequently  
measured at amortised cost using the effective interest method.  
(o) Deferred income  
Deferred income is recognised in the statement of financial position when income is received in earlier periods than  
that in which it is earned. Principally the Company recognised deferred income in the consolidated statement of  
financial position in relation to interest rate subsidies received from related parties in connection with various  
finance campaigns. Deferred income is recognised in the income statement according to the effective interest  
method.  
(p) Revenue recognition  
Finance contracts  
Interest income arising from finance leases and hire purchase contracts is accounted for over the term of the  
contract using an effective interest method in accordance with Accounting Standard AASB 16 “Leases”. Unearned  
income is that portion of charges written into hire purchase agreements, chattel mortgage agreements and lease  
agreements, which will be earned in the future. Initial direct costs arising from finance contracts have reduced the  
unearned income remaining to be recognised in future years and will be amortised over the lease term.  
Operating leases  
Rental revenue arising from operating lease contracts is brought to account in the period in which it is earned on a  
straight line basis over the lease term. Motor vehicles subject to operating leases where the Company acts as lessor  
have been accounted for as non-current assets depreciated by periodic charges to the income statement.  
Commissions  
When the Company acts in the capacity of an agent rather than as the principal in a transaction, the revenue  
recognised is the net amount of commission received by the Company.  
(q) Expenses  
Finance Income and Expense  
Net financing costs comprise interest payable on borrowings calculated using the effective interest method, interest  
receivable on funds invested and gains and losses on hedging instruments that are recognised in the income  
statement (refer Note 10).  
27  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(r) Taxation  
Income tax  
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the  
income statement except to the extent that it relates to items recognised directly in equity, in which case it is  
recognised in equity.  
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively  
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.  
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the  
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation  
purposes. The following temporary differences are not provided for: the initial recognition of assets or liabilities that  
affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that  
they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the  
expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates  
enacted or substantively enacted at the balance date. Deferred tax assets and deferred tax liabilities are offset if  
there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes linked  
to the same tax authority on the same taxable entity.  
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available  
against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable  
that the related tax benefit will be realised.  
Tax Consolidation  
The Company is an entity in a multiple entry consolidated (MEC) group, whereby the group of Australian entities  
(being Mercedes-Benz Group Australia/Pacific Pty Ltd, Mercedes-Benz Australia/Pacific Pty Ltd, Mercedes-Benz  
Vans Australia/Pacific Pty Ltd, Mercedes-Benz Mobility Australia Pty Ltd, and Mercedes-Benz Financial Services  
Australia Pty Ltd) were all wholly foreign-owned by a common non-resident company, but did not have a common  
Australian resident head company. As a result, these entities formed part of MEC group that were consolidated and  
taxed as a single entity for Australian tax purposes. The provisional head entity of the Australian tax-consolidated  
group is Mercedes-Benz Group Australia/Pacific Pty Ltd. The implementation date of the tax consolidation system  
for the tax-consolidated group was 1 January 2003.  
Current tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences of  
the members of the tax-consolidated group are recognised in the separate financial statements of the members of  
the tax-consolidated group using the ‘separate taxpayer within group’ approach. Deferred tax assets and deferred  
tax liabilities are measured by reference to the carrying amounts of the assets and liabilities in the Company’s  
balance sheet and their tax values applying under tax consolidation.  
28  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(r) Taxation (continued)  
Tax Consolidation (continued)  
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the Company are  
assumed by the head entity of the tax-consolidated group and are recognised as amounts payable (receivable) to  
other entities in the tax-consolidated group in conjunction with any tax funding arrangement amounts (refer below).  
Any difference between these amounts is recognised by the Company as an equity contribution or distribution.  
The Company recognises deferred tax assets arising from unused tax losses to the extent that it is probable that  
future taxable profits of the tax-consolidated group will be available against which the asset can be utilised. The  
Company assesses the recovery of its unused tax losses and tax credits only in the period in which they arise and  
before assumption by the head entity, in accordance with AASB 112 applied in the context of the tax-consolidated  
group.  
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of revised  
assessments of the probability of recoverability is recognised by the head entity only.  
Nature of tax funding and sharing arrangements  
The Company, in conjunction with other members of the tax-consolidated group, has entered into a tax funding  
arrangement which sets out the funding obligations of members of the tax consolidated group in respect of tax  
amounts. The tax funding arrangements require payments to / from the head entity equal to the current tax liability  
(asset) assumed by the head entity and any tax-loss deferred tax asset assumed by the head entity, resulting in the  
Company recognising an inter-entity payable (receivable) equal in amount to the tax liability (asset) assumed. The  
inter-entity payable (receivable) is at call.  
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect the timing  
of the head entity’s obligation to make payments for tax liabilities to the relevant tax authorities.  
The Company, in conjunction with other members of the tax-consolidated group, has also entered into a tax sharing  
agreement. The tax sharing agreement provides for the determination of the allocation of income tax liabilities  
between the entities should the head entity default on its tax payment obligations. No amounts have been  
recognised in the financial statements in respect of this agreement as payment of any amounts under the tax  
sharing agreement is considered remote.  
(s) Goods and Services Tax  
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the  
amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is  
recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are  
stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included  
as a current asset or liability in the statement of financial position.  
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising  
from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating  
cash flows.  
29  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
3
Statement of material accounting policies (continued)  
(t) Repossessed assets  
Repossessed assets are those assets acquired through actual foreclosure or in full or partial satisfaction of leases  
or loans. When such assets are acquired, income on the loan or lease ceases to be recognised in the income  
statement as reasonable doubt exists as to the collectability of interest and principal. The carrying amount of  
repossessed assets approximates net realisable value. Repossessed assets are included as inventory in the  
consolidated statement of financial position.  
(u) Share Capital  
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are  
recognised as a deduction from equity, net of any tax effects.  
(v) Segment reporting  
Determination and presentation of operating segments  
An operating segment is a component of the Company that engages in business activities from which it may earn  
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the  
Company’s other components. All operating segments’ operating results are regularly reviewed by the Company’s  
senior management to make decisions about resources to be allocated to the segment and assess its performance,  
and for which discrete financial information is available.  
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment,  
and intangible assets other than goodwill.  
30  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
4
Accounting estimates and judgements  
In the consolidated and Company financial statements, to a certain degree, estimates and management judgements  
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.  
Key sources of estimation and uncertainty  
The doubtful debts provision as detailed above in Note 3(k) involves a level of management judgement. Many  
factors are taken into consideration in this context including historical loss experience, the size and composition of  
certain portfolios, the current fair values and adequacy of collaterals, current economic events, macroeconomic  
factors, and forecasts of future economic conditions and conditions. These forecasts are performed using a  
scenario analysis (basic scenario, optimistic scenario and pessimistic scenario).  
The doubtful debts provision is calculated for the retail portfolio using current delinquencies, historical delinquency  
migration ratios ("HDMR") as well as historical loss data. Corporate Fleet and Dealer pool provisions are calculated  
based on customer ratings and associated default probabilities as well as potential loss severities. Specific  
provisions for impaired corporate accounts are determined using remarketing estimates of current assets, expert  
and management judgement on the likelihood of recovery and liquidation of assets as at 31 December 2024.  
Further external information is included in the assessment through subsequent adjustments. Changes to the  
estimation and assessment of these factors influence the allowance for credit losses with a resulting impact on the  
Company’s net profit.  
Other factors that have the most significant effect on the amount recognised in the financial statements are also  
described in the following notes:  
•
Notes 16, 22, 23 and 24 - the best evidence of fair value is a quoted price from an actively traded market. In  
the event that the market for a financial instrument is not active, a valuation technique is used. The majority of  
valuation techniques employ only observable market data and so the reliability of the fair value measurement is  
high. However, certain financial instruments are valued on the basis of valuation techniques that feature one or  
more significant market inputs that are unobservable. Valuation techniques that rely to a greater extent on  
unobservable inputs require a higher level of management judgement to calculate a fair value than those based  
wholly on observable inputs. Key judgements include:  
-
the likelihood and expected timing of future cash flows on the instrument.  
-
selecting an appropriate discount rate for the instrument.  
-
judgement to determine what model to use to calculate fair value in areas where the choice of  
valuation model is particularly subjective.  
31  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
4
Accounting estimates and judgements (continued)  
Key sources of estimation and uncertainty (continued)  
When applying a model with unobservable inputs, estimates are made to reflect uncertainties in fair values  
resulting from a lack of market data inputs, for example, as a result of illiquidity in the market. For these  
instruments, the fair value measurement is less reliable. Inputs into valuations based on unobservable data are  
inherently uncertain because there is little or no current market data available from which to determine the  
level at which an arm’s length transaction would occur under normal business conditions. However, in most  
cases there is some market data available on which to base a determination of fair value, for example historical  
data, and the fair values of most financial instruments are based on some market observable inputs even when  
unobservable inputs are significant.  
32  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
5
Revenue  
2023  
2024  
Restated  
$'000  
$'000  
Interest:  
- Related parties  
31  
677  
- Other parties  
312,783  
281,956  
(42,592)  
(49,426)  
Fee expense (effective interest method)  
270,222  
233,207  
Operating lease income:  
- Related parties  
4,451  
4,293  
4,414  
8,940  
- Other parties  
279,087  
246,440  
Total revenue from continuing operations  
Insurance brokerage income  
13,218  
12,430  
12,030  
Other contract and fee income  
11,881  
Total other income from continuing operations  
25,248  
24,311  
Prior year recoveries  
- Other parties  
4,114  
5,272  
Revenue from other ordinary activities  
- Related parties  
1,247  
1,261  
- Other parties  
550  
1,502  
Total revenue from other ordinary activities  
5,911  
8,035  
310,246  
Total revenue  
278,786  
33  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
6
Segment information  
Operating segments are identified on the basis of whether the allocation of resources and/or the assessment of  
performance of a particular component of the Company’s activities are regularly reviewed by the Company’s chief  
operating decision maker as a separate operating segment. The Company supports the sales of the Mercedes-Benz  
automotive brands in Australia. By these criteria, the activities of the Company are considered to be one segment  
being the financial products provider in the automobile finance sector, and the segmental analysis is the same as  
the analysis for the Company as a whole. The chief operating decision maker (Chief Executive Officer and Chief  
Financial Officer) review the consolidated income statement and consolidated balance sheet regularly to make  
decisions about the Company’s resources and to assess overall performance.  
7
Employee expenses  
2024  
2023  
$'000  
$'000  
Wages and salaries  
17,550  
19,139  
1,759  
Compulsory superannuation contributions  
1,872  
152  
Cash settled share based payments transactions  
310  
Increase in liability for annual leave  
1,170  
1,241  
Increase in liability for long service leave  
338  
535  
291  
56  
Other employee expenses  
21,260  
23,153  
34  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
8
Expenses  
2023  
2024  
Restated  
$'000  
$'000  
Depreciation of plant and equipment  
3,574  
2,913  
Lease expense - Related parties  
3,518  
6,510  
1,457  
Lease expense - Other parties  
2,424  
Net expense for movements to provision for  
bad debts  
2,590  
7,446  
Bad debts written off  
20,712  
13,552  
936  
Commission expense  
1,885  
327  
Net loss on assets disposed  
1,172  
General administration costs  
24,112  
27,986  
17,517  
11,328  
Other  
74,743  
75,216  
9
Auditor's remuneration  
2024  
2023  
$
$
Audit services  
Auditors of the Company - PwC Australia**  
- Audit of financial statements  
255,000  
228,073  
- Other regulatory audit service - Australian Financial Services  
35,000  
35,266  
License and APRA  
290,000  
263,339  
Other assurance services  
Auditors of the Company - PwC Australia**  
60,000  
Other assurance services  
65,171  
60,000  
65,171  
35  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
9
Auditor's remuneration (continued)  
**The Board of the Company resolved to request that KPMG Australia resign as auditors and to appoint  
PricewaterhouseCoopers Australia ("PwC Australia") as auditors of the Company for the first time in 2024. The  
balances in 2023 represented the KPMG Australia remuneration for audit services and other assurance services.  
Audit services relate to the audit of the consolidated and Company financial statements. Other services in 2024  
relate to agreed upon procedures performed in connection with internal control system review (2023: agreed upon  
procedures in connection with ABS project).  
10 Net finance costs  
2024  
2023  
Recognised in profit or loss  
$'000  
$'000  
- Related parties  
(34,456)  
(33,287)  
- Other parties  
(145,133)  
(98,932)  
4,109  
Net fair value gain/(loss) on derivative financial instruments  
(1,332)  
Net finance costs  
(175,480)  
(133,551)  
Recognised in other comprehensive income  
(5,266)  
Effective portion of changes in fair value of cash flow hedges  
(14,834)  
Net change in fair value of cash flow hedges transferred to profit  
2,990  
or loss, net of tax  
64  
683  
4,431  
Income tax on other comprehensive income  
Finance expenses recognised in other comprehensive  
income, net of tax  
(1,593)  
(10,339)  
36  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
11 Income tax (expense)/benefit  
2024  
2023  
$'000  
$'000  
Current tax (expense)  
Current year  
(13,813)  
(17,469)  
Adjustments for prior years  
9
(192)  
(13,804)  
(17,661)  
Deferred tax (expense)  
2,285  
Origination and reversal of temporary differences  
3,484  
Total income tax (expense) in income statement  
(11,519)  
(14,177)  
Numerical reconciliation between tax (expense) and pre-tax  
net profit  
38,763  
46,865  
Profit before tax  
38,763  
Profit from continuing operations before income tax  
46,865  
Income tax expense using the Company's domestic tax rate of  
(11,629)  
30% (2023 - 30%)  
(14,060)  
Increase in income tax expense due to:  
- Non-deductible expenses  
(4)  
(5)  
- Prior year income tax expense adjustment  
9
(192)  
Decrease in income tax expense due to:  
105  
80  
- Prior year deferred tax adjustment  
(11,519)  
Income tax (expense) on pre-tax net profit  
(14,177)  
(50,282)  
(61,042)  
Deferred tax recognised in other comprehensive income  
Relating to change in fair value of derivatives  
683  
4,431  
683  
4,431  
37  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
12 Cash and cash equivalents  
2024  
2023  
$'000  
Note  
$'000  
685  
49  
Cash and cash equivalents  
24  
685  
49  
13 Inventory  
2024  
2023  
$'000  
$'000  
Finished goods  
8,723  
4,504  
8,723  
4,504  
Finished goods comprise returned lease vehicles and vehicles repossessed. The carrying amount of inventories  
recognised during the period by taking possession of collateral held as security amounted to $6,596,504  
(2023: $4,254,555).  
14 Trade and other receivables  
2023  
2024  
Restated  
$'000  
Note  
$'000  
Receivables due from related entities  
30  
42,100  
61,984  
Trade and other receivables  
10,792  
8,005  
52,892  
69,989  
Total current trade and other receivables  
3,637  
5,786  
Receivables due from related entities  
3,637  
Total non-current trade and other receivables  
5,786  
38  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
15 Receivables from financial services  
2023  
2024  
Restated  
Note  
$'000  
$'000  
Current  
Receivables from financial services - Retail  
1,180,489  
1,177,151  
(137,612)  
Unearned income  
(131,864)  
Gross carrying amount  
1,042,877  
1,045,287  
(11,581)  
(9,070)  
Allowance for doubtful debts  
1,031,296  
Net carrying amount  
1,036,217  
Receivables from financial services - Wholesale  
-
- Related parties  
30  
14  
502,679  
- Other parties  
502,585  
502,679  
Gross carrying amount  
502,599  
(473)  
(499)  
Allowance for doubtful debts  
502,206  
502,100  
Net carrying amount  
Total current receivables from financial services  
1,533,502  
1,538,317  
Non-current  
Receivables from financial services - Retail  
2,731,656  
2,934,955  
(313,486)  
(327,691)  
Unearned income  
Gross carrying amount  
2,418,170  
2,607,264  
(21,500)  
Allowance for doubtful debts  
(20,793)  
Net carrying amount  
2,396,670  
2,586,471  
3,930,172  
4,124,788  
Total receivables from financial services  
Retail receivables include loans and finance leases to end users of the financed asset. The consolidated weighted  
average effective interest rate on retail receivables at 31 December 2024 is 6.58% (2023 restated: 5.89%).  
Wholesale receivables primarily represent vehicles on floor plan arrangements. Included also are direct loans to  
dealerships for other assets such as dealer showroom refurbishments.  
39  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
15 Receivables from financial services (continued)  
Loss allowance  
The development of loss allowances for receivables from financial services due to expected credit losses at 31  
December 2024 under AASB 9 is shown in the table below.  
Loss allowance due to expected credit losses AASB 9  
Lifetime  
12-month  
expected  
expected  
credit loss  
credit loss  
not credit  
credit  
impaired  
impaired  
(Stage 1)  
(Stage 2)  
(Stage 3)  
Total  
$'000  
$'000  
$'000  
$'000  
Balance at 1 January according to  
(13,394)  
(6,521)  
(10,447)  
(30,362)  
AASB 9  
Additions  
(1,515)  
(5,450)  
(2,074)  
(9,039)  
Change in remeasurement  
2,950  
(2,354)  
(8,979)  
(8,383)  
Utilisation  
163  
828  
3,856  
4,847  
Reversals  
4,984  
1,694  
2,705  
9,383  
Transfer to Stage 1  
(2,328)  
1,457  
871  
-
1,568  
(2,316)  
748  
-
Transfer to Stage 2  
138  
738  
(876)  
-
Transfer to Stage 3  
Balance as 31 December according  
(7,434)  
(11,924)  
(14,196)  
(33,554)  
to AASB 9  
Changes in the allowance for doubtful debts for receivables from financial services at 31 December 2023 under  
AASB 9 are shown as follows.  
$'000  
$'000  
$'000  
$'000  
Balance at 1 January according to AASB 9  
(11,945)  
(3,461)  
(7,155)  
(22,561)  
Additions  
(4,501)  
(1,772)  
(1,674)  
(7,947)  
Change in remeasurement  
(1,639)  
(3,386)  
(5,936)  
(10,961)  
Utilisation  
115  
523  
1,596  
2,234  
Reversals  
4,694  
1,360  
2,819  
8,873  
Transfer to Stage 1  
(804)  
692  
112  
-
Transfer to Stage 2  
610  
(846)  
237  
1
Transfer to Stage 3  
76  
369  
(446)  
(1)  
Balance as 31 December according to AASB 9  
(13,394)  
(6,521)  
(10,447)  
(30,362)  
40  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
15 Receivables from financial services (continued)  
The Company’s exposure to credit risk is disclosed in Note 24.  
Finance lease receivables (included in Receivables from financial services - Retail)  
Maturities of the future contractual lease payments and the development of lease payments to the carrying  
amounts of receivables from finance lease contracts at reporting date, comprise the following:  
2023  
2024  
Restated  
$'000  
$'000  
67,755  
64,950  
Contractual future lease payment  
Thereof due:  
- Within one year  
44,186  
35,319  
- Between one and two years  
15,730  
20,426  
- Between two and three years  
5,523  
4,511  
1,002  
- Between three and four years  
4,183  
725  
- Between four and five years  
509  
589  
2
- Later than five years  
67,755  
Gross investment  
64,950  
67,755  
Gross investment  
64,950  
(7,059)  
Unearned finance lease  
(6,377)  
Gross carrying amount  
60,696  
58,573  
Gross carrying amount  
60,696  
58,573  
(267)  
Loss allowance  
(151)  
Net carrying amount (included in Receivable from financial  
60,429  
58,422  
services - Retail)  
41  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
16 Derivative financial instruments  
2024  
2023  
$'000  
$'000  
Current assets  
6,744  
Interest rate swaps - cash flow hedge  
8,489  
-
324  
Foreign currency option contracts - held for trading  
6,744  
8,813  
Non-current assets  
Interest rate swaps - cash flow hedge  
3,610  
7,517  
8,742  
21,056  
Interest rate swaps contracts - no hedge accounting  
12,352  
28,573  
19,096  
37,386  
Non-current liabilities  
Interest rate swap contracts - cash flow hedges  
1,566  
600  
9,201  
21,192  
Interest rate swap contracts - no hedge accounting  
10,767  
21,792  
2024  
2023  
$'000  
$'000  
Current assets  
6,744  
8,813  
Related parties  
6,744  
Total current assets  
8,813  
Non-current assets  
12,352  
Related parties  
28,573  
Total non-current assets  
12,352  
28,573  
Non-current liabilities  
Related parties  
1,566  
600  
9,201  
Other parties  
21,192  
Total non-current liabilities  
10,767  
21,792  
42  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
16 Derivative financial instruments (continued)  
The Company’s exposure to credit, liquidity and market risks and a sensitivity analysis for financial assets and  
liabilities is disclosed in Note 24.  
17 Other assets  
2023  
2024  
Restated  
$'000  
$'000  
2,594  
Prepayments  
2,627  
17,166  
General Reserve  
14,173  
19,760  
16,800  
General Reserve consists primarily of funds held in compliance of the SAAT 2019-1 Trust Supplement and SAAT  
2024-1 Trust Supplement as at 31 December 2024.  
43  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
18 Property, plant and equipment  
2023  
2024  
Restated  
$'000  
$'000  
Motor vehicles subject to operating lease  
Cost  
1,457  
Balance at beginning of year  
3,453  
Additions  
-
-
(908)  
(1,996)  
Disposals  
549  
Balance at end of year  
1,457  
Accumulated depreciation  
Balance at beginning of year  
(682)  
(1,114)  
Depreciation expense  
(70)  
(221)  
431  
Disposals  
653  
Balance at end of year  
(321)  
(682)  
775  
2,338  
Carrying amount at beginning of year  
228  
Carrying amount at end of year  
775  
Office equipment  
Cost  
Balance at beginning of year  
338  
3,269  
Additions  
7
23  
-
(2,954)  
Disposals  
345  
338  
Balance at end of year  
Accumulated depreciation  
Balance at beginning of year  
(144)  
(2,745)  
(64)  
Depreciation expense  
(120)  
-
Disposals  
2,721  
Balance at end of year  
(208)  
(144)  
194  
524  
Carrying amount at beginning of year  
137  
Carrying amount at end of year  
194  
44  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
18 Property, plant and equipment (continued)  
2024  
2023  
Right-of-use assets - leased office  
$'000  
$'000  
Cost  
Balance at beginning of year  
10,816  
-
-
10,816  
Additions  
10,816  
10,816  
Balance at end of year  
Accumulated depreciation  
Balance at beginning of year  
(351)  
-
(601)  
(351)  
Depreciation expense  
Balance at end of year  
(952)  
(351)  
10,465  
-
Carrying amount at beginning of year  
9,864  
10,465  
Carry amount at end of year  
11,433  
Total carrying amount at beginning of year  
2,862  
Total carrying amount at end of year  
10,229  
11,433  
19 Intangible assets  
2024  
2023  
$'000  
$'000  
Software  
Cost  
24,553  
Balance at beginning of year  
21,338  
Additions  
6,632  
3,215  
(736)  
-
Disposals  
30,449  
24,553  
Balance at end of year  
Accumulated depreciation  
Balance at beginning of year  
(17,295)  
(15,073)  
Depreciation expense  
(2,839)  
(2,222)  
696  
Disposals  
-
Balance at end of year  
(19,438)  
(17,295)  
Software - Projects in Progress balance at beginning of year  
5,483  
3,781  
(4,609)  
Software - Projects in Progress movement  
1,702  
45  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
19 Intangible assets (continued)  
2024  
2023  
$'000  
$'000  
874  
5,483  
Balance at end of year  
Other intangible assets  
43  
Other intangible assets balance at beginning of year  
-
-
43  
Other intangible assets movement  
43  
Balance at end of year  
43  
test  
12,784  
Carrying amount at beginning of year  
10,046  
Carrying amount at end of year  
11,928  
12,784  
The Company had intangible assets subject to amortisation which comprise software developed or obtained to  
facilitate certain transactions between the Company and its dealer network.  
20 Current tax assets and liabilities  
2024  
2023  
$'000  
$'000  
Income tax (receivable)/payable attributable to:  
13,813  
Related party  
17,470  
(16,568)  
(17,953)  
Less instalments paid  
(2,755)  
Net current tax (assets)/liabilities  
(483)  
46  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
21 Deferred tax assets and liabilities  
Recognised deferred tax assets and liabilities  
Deferred tax assets of the Company are attributable to the following:  
2024  
2023  
$'000  
$'000  
Allowance for bad debts  
10,066  
9,109  
-
Other provisions  
81  
7,221  
Derivatives  
10,828  
Employee benefits  
2,299  
2,681  
2,651  
4,052  
Other / Accruals  
22,237  
26,751  
Total deferred tax assets  
Deferred tax liabilities of the Company are attributable to the following:  
2024  
2023  
$'000  
$'000  
Derivatives  
(5,756)  
(13,022)  
Property, Plant & Equipment  
(14)  
(543)  
(941)  
(518)  
Capitalised Commissions  
(6,711)  
(14,083)  
Total deferred tax liabilities  
In accordance with the tax consolidation legislation, Mercedes-Benz Group Australia/Pacific Pty Ltd (the head  
entity) has assumed the current tax liability or asset initially recognised by the Company which is a member of the  
tax consolidated group.  
Under the tax funding arrangement the Company and the head entity recognise an inter-entity payable or receivable  
equal in amount to the current tax liability or asset assumed. The Company continues to recognise tax expense or  
income even through it has derecognised its current tax liability or asset.  
47  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
21 Deferred tax assets and liabilities (continued)  
Recognised deferred tax assets and liabilities (continued)  
Movement in temporary differences of the Company during the year comprises the following:  
Balance at 1 Recognised in Recognised in  
Balance at 31  
January 2023  
income  
equity December 2023  
$'000  
$'000  
$'000  
$'000  
Allowance for bad debts  
6,768  
2,341  
-
9,109  
Other Provisions  
6
75  
-
81  
Derivatives  
(6,604)  
(21)  
4,431  
(2,194)  
Employee Benefit Provisions  
2,683  
(2)  
-
2,681  
Other / Accruals  
3,886  
166  
-
4,052  
Property, Plant & Equipment  
(720)  
177  
-
(543)  
Capitalised Commissions  
(176)  
(342)  
-
(518)  
5,843  
2,394  
4,431  
12,668  
48  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
21 Deferred tax assets and liabilities (continued)  
Recognised deferred tax assets and liabilities (continued)  
Movement in temporary differences of the Company during the year comprises the following: (continued)  
Balance at 1 Recognised in Recognised in  
Balance at 31  
January 2024  
income  
equity December 2024  
$'000  
$'000  
$'000  
$'000  
Allowance for bad debts  
9,109  
957  
-
10,066  
Other Provisions  
81  
(81)  
-
-
Derivatives  
(2,194)  
2,976  
683  
1,465  
Employee Benefit Provisions  
2,681  
(382)  
-
2,299  
Other / Accruals  
4,052  
(1,401)  
-
2,651  
Property, Plant & Equipment  
(543)  
529  
-
(14)  
Capitalised Commissions  
(518)  
(423)  
-
(941)  
12,668  
2,175  
683  
15,526  
49  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
22 Trade and other payables  
2024  
2023  
$'000  
Note  
$'000  
Trade payables  
Trade creditors  
6,305  
10,727  
Other creditors & accruals  
3,215  
10,139  
Amounts due to related parties:  
30,837  
- Purchase of vehicles used in wholesale financing  
30  
30,661  
40,357  
51,527  
Interest payable  
- Related parties  
30  
25,551  
23,273  
- Other parties  
7,529  
6,241  
Total interest payable  
33,080  
29,514  
An amount of $300,021 (2023: $200,219) is included in interest payable to other parties that is due to related  
parties.  
23 Interest bearing liabilities  
Securitisation  
Loans and receivables include a portion of the Group's term loans and term purchases under securitisation within  
securitisation trusts. The terms of the transfer of these loans do not meet the criteria for derecognition under AASB  
9 Financial Instruments and are therefore recognised on the Group's and the Company’s statements of financial  
position. AASB 10 Consolidated Financial Statements defines control when an investor is exposed or has rights to  
variable returns from its involvement with the investee and has the ability to affect those returns through its power  
over the investee. The Company bears control over the securitisation trusts requiring consolidation in the financial  
statements. The Company has no financial guarantee in relation to the securitisation of loans and receivables.  
The table below discloses the financial liabilities of the Group and Company:  
50  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
23 Interest bearing liabilities (continued)  
Consolidated  
Company  
Consolidated  
Company  
2024  
2024  
2023  
2023  
Note  
$'000  
$'000  
$'000  
$'000  
Current  
535,347  
Loans from external parties  
618,293  
580,022  
618,293  
413,442  
413,442  
Loans from related parties  
30  
1,101,031  
1,145,70ꢀ  
227  
227  
1ꢁ3  
Lease liabilities  
1ꢁ3  
1,031,962  
1,ꢀ81,24ꢀ  
1,031,962  
1,ꢀ81,24ꢀ  
Non-current  
1,890,638  
190,638  
45ꢁ,045  
Loans from external parties  
1,45ꢁ,045  
783,076  
2,483,076  
Loans from related parties  
30  
7ꢀ0,ꢀ35  
1,7ꢀ0,ꢀ35  
10,295  
10,295  
Lease liabilities  
10,523  
10,523  
2,684,009  
2,684,009  
2,230,203  
2,230,203  
This note provides information about the contractual terms of the Company’s interest-bearing loans and borrowings.  
For more information about the Company’s exposure to liquidity and interest rate risk, and sensitivity analysis,  
please refer to Note 24.  
Loans and receivables include a portion of the consolidated entity’s term loans and term purchases under  
securitisation within securitisation trusts. The terms of the transfer of these loans do not meet the criteria for  
derecognition under AASB9 Financial Instruments and are therefore recognised on the consolidated entity’s  
statements of financial position. AASB10 Consolidated Financial Statements defines control when an investor is  
exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those  
returns through its power over the investee. The company bears control over the securitisation trusts requiring  
consolidation in the financial statements. The company has no financial guarantee in relation to the securitisation of  
loans and receivables. As at the end of the reporting period, the liabilities the securitisation trusts is disclosed in the  
table below:  
Consolidated  
Company  
Consolidated  
Company  
2024  
2024  
2023  
2023  
$'000  
$'000  
Note  
$'000  
$'000  
Total facilities available  
Bank overdraft (unsecured)  
-
-
-
-
Loans from external parties  
3,758,671  
3,138,075  
2,0ꢀ8,671  
2,0ꢁ3,400  
1,207,040  
2,ꢁ07,040  
Loans from related entities  
1,ꢁ8ꢀ,ꢁꢀ0  
3,031,ꢀ35  
4,965,711  
5,125,035  
4,965,711  
5,125,035  
51  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
23 Interest bearing liabilities (continued)  
Consolidated  
Company  
Consolidated  
Company  
31 December  
31 December  
31 December  
31 December  
2024  
2024  
2023  
2023  
$'000  
$'000  
$'000  
$'000  
Facilities  
utilised  
at  
balance date  
-
-
Bank loans (unsecured)  
-
-
808,931  
Loans from external parties  
2,508,931  
2,03ꢁ,0ꢀ7  
ꢁꢁ4,3ꢁ2  
1,207,040  
1,8ꢀ1,ꢀꢀꢀ  
2,ꢁ07,040  
2,ꢁ0ꢀ,341  
Loans from related parties  
24  
3,715,971  
3,715,971  
3,ꢁ00,733  
3,ꢁ00,733  
Facilities not utilised at balance  
date (uncommitted)  
Bank overdraft (unsecured)  
-
-
-
-
1,0ꢁꢁ,008  
Loans from external parties  
1,249,740  
1,249,740  
1,0ꢁꢁ,008  
Loans from related parties  
-
125,2ꢁ4  
-
125,2ꢁ4  
1,249,740  
1,224,302  
1,249,740  
1,224,302  
Bank overdraft  
For the purposes of the financial statements, overdrawn individual bank balances are separately disclosed within  
interest bearing liabilities. The Company did not have this overdraft facility as at the end of the financial year 2024  
and 2023.  
Loans from related parties  
Mercedes-Benz Australia/Pacific Pty Ltd and Mercedes-Benz International Finance B.V. ("MBIF"), both related  
parties, facilitate borrowings for the Group. MBIF is incorporated in Netherlands, which is wholly owned by  
Mercedes-Benz Group AG. The related parties contract with the relevant lenders or investors, and on lend requisite  
funding to the Company via arms-length transactions. Funding sources include bank loans, commercial paper,  
unsecured notes, secured notes and loans from the ultimate parent entity.  
Loans from external parties  
Loans from external parties includes securitised debt representing the value of term loans held by external parties  
in the securitisation trusts. The securitisation trusts have issued interest-bearing notes to third parties amounted to  
$1,700 million (nominal value) (2023: $1,500 million). The Company holds the notes balance of the securitisation  
trusts of $245 million (2023: $202 million). Receivable from financial services amounting to $1,928 million as at 31  
December 2024 (2023: $1,227 million) are pledged as collateral for the senior notes under securitisation.  
52  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
23 Interest bearing liabilities (continued)  
In the current and previous reporting years, the total facilities available include uncommitted external facilities,  
loans from the ultimate parent entity which are currently outstanding at balance date, and those secured and  
unsecured notes, which are currently on issue. Facilities not utilised at balance date represent the unused  
uncommitted funding facilities. These unused bank loan facilities are accessible by either Mercedes-Benz  
Australia/Pacific Pty Ltd, Mercedes-Benz Group Australia/Pacific Pty Ltd or Mercedes-Benz Financial Services  
Australia Pty Ltd, , where these entities and the Company are the joint borrowers.  
Terms and repayment schedule  
2024  
2023  
Year of  
Currency Nominal interest rate %  
Maturity Carrying amount  
Carrying amount  
$'000  
$'000  
Secured notes issued  
AUD  
BBSW + 0.75% to 0.85%  
2024-2028  
-
1,044,675  
Secured notes issued  
AUD  
BBSW + 0.81% to 0.94%  
2033-2034  
1,700,000  
-
Unsecured bank loan  
AUD  
4.83 - 5.34  
2024  
-
183,000  
Unsecured bank loan  
AUD  
2.81 - 5.84  
2025  
578,931  
575,000  
230,000  
Unsecured bank loan  
AUD  
5.34 - 5.98  
2026  
230,000  
-
Loans from affiliate  
AUD  
0.75 - 4.84  
2024  
781,841  
Loans from affiliate  
AUD  
4.70 - 5.81  
2025  
312,816  
80,000  
Loans from affiliate  
AUD  
4.50 - 5.81  
2026  
583,813  
583,177  
Loans from affiliate  
AUD  
4.75  
2027  
199,263  
-
Loans from affiliate  
EUR -0.09 to 3-month EURIBOR rate  
2024  
-
325,582  
Loans from affiliate  
EUR  
0.12  
2025  
100,626  
97,458  
10,522  
Lease liabilities  
AUD  
4.94  
2041  
10,716  
Total interest bearing liabilities  
3,715,971  
3,911,449  
24 Financial instruments  
Exposure to credit, liquidity and market risks arise in the normal course of the Company’s business.  
Interest Rate Risk  
Interest rate risk for the Company refers to the occurrence of a mismatch in the characteristics of assets and their  
respective liability funding.  
An asset-liability committee at Mercedes-Benz Group AG, the ultimate parent entity, which consists of members of  
the business segment, the Corporate Treasury department and the Corporate Controlling department, actively  
manage the risk by quarterly setting interest rate exposure targets for the local companies. As a separate function,  
the Global Portfolio Management department at Mercedes-Benz Mobility AG monitors on a monthly basis whether  
the interest rate risk position at month end is in line with the targets to be achieved.  
53  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Interest Rate Risk (continued)  
Interest rate exposure is assessed by comparing assets and liabilities for corresponding maturities based on interest  
rate characteristics, including the impact of derivative financial instruments. In order to achieve the interest rate  
exposure targets, the Company uses derivative financial instruments. The only derivative financial instrument  
currently in use is interest rate swaps.  
Interest rate swaps  
Interest rate swaps allow the Company to swap floating rate borrowings into fixed rate as well as fixed rate  
borrowings into floating rates and match differing interest rate characteristics of assets and liabilities where  
required. Maturities of swap contracts do not exceed five years.  
Each contract involves quarterly payment or receipt of a net amount of interest. At 31 December 2024 the fixed  
rates varied between 0.10% and 5.25% (2023: 0.10% and 4.60%). Floating rates were at bank bill swap rates  
("BBSW") plus the Company’s credit margin. The weighted average effective floating interest rate at 31 December  
2024 was 5.07% (2023: 4.94%).  
Effective of hedge accounting on the financial position and performance  
The effects of the interest rate swaps on the Group's financial position and performance are as follows:  
2024  
2023  
Interest rate swaps  
$'000  
$'000  
Notional amount (current and non-current assets)  
1,359,200  
944,395  
Maturity date  
2025-2028  
2024-2026  
Hedge ratio  
1:1  
1:1  
Weighted average hedged rate for the year  
5.07%  
4.94%  
Sensitivity analysis  
As part of its risk management control systems, Mercedes-Benz Group AG (the ultimate parent entity) employs  
value-at-risk analyses as recommended by the Bank for International Settlements. In performing these analyses the  
market risk exposure to changes in foreign currency exchange rates, interest rates and equity prices is quantified on  
a continuous basis by predicting the maximum loss over a target time horizon (holding period) and confidence level.  
The value-at-risk calculation is performed by Mercedes-Benz Group AG for the Company. The only material market  
risk concerning the Company is interest rate risk.  
54  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Interest Rate Risk (continued)  
Sensitivity analysis (continued)  
When the value-at-risk of the Company’s portfolio of financial instruments is calculated, first the current fair value of  
these financial instruments is computed. Then the sensitivity of the Company’s portfolio value to changes in  
relevant market risk factors is quantified. Based on expected volatilities and correlations of these market risk  
factors which are obtained from the RiskMetrics™ dataset, potential changes of the portfolio value are computed by  
applying the variance-covariance approach. The variance-covariance approach is a statistical method used to  
quantify the total impact of all relevant major risk factors on the portfolio’s present value. Through these  
calculations and by assuming a 99% confidence level and a holding period of five days, the Company’s value-at-risk  
is obtained. The 99% confidence level and the five day holding period indicate that there is only a 1% statistical  
probability that the value-at-risk will be exceeded by losses at the end of the five day holding period.  
The following table shows the period-end, high, low and average value-at-risk figures for the 2024 and 2023  
portfolio of interest rate sensitive financial instruments. The average exposure has been computed on an end of  
quarter basis:  
Period-end  
High  
Low  
Average  
$'000  
$'000  
$'000  
$'000  
Interest rate risk  
2024  
77,228  
77,228  
18,235  
48,640  
2023  
79,519  
79,519  
40,319  
55,592  
The following table provides details of the (gain) / loss on hedge accounting relationships recognised in finance  
costs:  
2024  
2023  
$'000  
$'000  
Loss / (gain) on fair value hedges (i)  
-
-
Ineffective portion of cash flow hedges (ii)  
(2,990)  
(64)  
(2,990)  
(64)  
(i)  
The re-measurement of the borrowings in the fair values resulted in nil gain or loss before tax in reporting  
period (2023: nil). The change in fair value of the associated derivative financial instruments resulted in nil  
gain or loss before tax in reporting period (2023: nil).  
(ii)  
The ineffective portion in cash flow hedges has been disclosed in profit or loss for gain of $2,990,376  
(2023: gain of $63,957).  
At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments was:  
55  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Interest Rate Risk (continued)  
Sensitivity analysis (continued)  
2023  
2024  
Restated  
$'000  
$'000  
Note  
Fixed rate instruments  
3,427,966  
Financial assets  
15  
3,623,012  
(1,768,702)  
(2,312,695)  
Financial liabilities  
23  
1,659,264  
1,310,317  
Variable rate instruments  
502,891  
Financial assets  
15  
502,149  
(1,936,748)  
(1,588,039)  
Financial liabilities  
23  
(1,433,857)  
(1,085,890)  
Credit risk  
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.  
Receivables from financial services  
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. In  
addition, Mercedes-Benz Mobility AG has implemented global guidelines and rules as a basis for efficient risk  
management. In particular, these guidelines deal with concentration risks, requests for collateral as well as the  
treatment of unsecured credits and non-performing loans. The risk management principles contain standards for  
identifying, measuring, analysing and monitoring the credit risks and are accompanied by a set of limits for  
operating entities and product types.  
Credit risk is mitigated by assessing individually each customer’s credit standing and constructing the terms of the  
financial arrangement on the basis of the customer’s risk profile; higher risk customers requiring greater cash  
deposits for example. The Company takes collateral over each transaction, with the exception of shortfall  
agreements. Principally the collateral is the financed vehicle. Concentrations of credit risk is minimised by  
undertaking transactions with a large number of customers. Transactions are undertaken with Australian domiciled  
customers only.  
The maximum exposure to credit risk at the reporting date is the carrying amount, net of any provision of doubtful  
debts.  
The Company’s most significant external retail customer accounts for $48.1 million of the receivables from financial  
services before allowance for doubtful debts (2023: $36.8 million).  
56  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Credit risk (continued)  
Receivables from financial services (continued)  
The Company’s most significant external wholesale customer accounts for $161.8 million of the receivables from  
financial services carrying amount before allowance for doubtful debts (2023: $114.1 million).  
Trade receivables  
Trade receivables primarily consist of operating lease payments due and residual value guaranteed by  
Mercedes-Benz Australia /Pacific Pty Ltd. The credit risk encompasses the default risk of customers. The Company  
minimises the credit risk of trade receivables by limiting the payment terms of the agreements making trade  
receivables either due immediately, or within thirty days.  
The Company holds legal title over vehicles on operating lease. Additionally, based on historical credit losses in  
relation to the operating lease product, the Company believes credit risk to be immaterial and does not provide an  
allowance.  
The maximum exposure to credit risk at the reporting date is the carrying amount.  
Other financial assets  
In 2024 other financial assets include the positive fair value of interest rate swap derivatives used for hedging. The  
maximum exposure to credit risk at the reporting date is the carrying amount.  
Cash and cash equivalents  
Cash and cash equivalents consists only of cash at bank. Where the Company expects to hold a surplus of funds  
over and above working capital and operating cash requirements, an investment is made in an overnight related  
party facility. Credit risk relates to the risk that the bank fails to fulfil its obligation. In line with the MB Group AG's  
risk policy, liquid assets are not subject to a material credit risk and are allocate to Stage 1 of the impairment  
model, which in based on expected credit risk. Credit risk is managed on a group basis. For banks and financial  
institutions, only independently rated parties with a minimum rating of ‘A’ are accepted as counterparties.  
The maximum exposure to credit risk at the reporting date is the carrying amount.  
Derivative financial instruments  
The Company, in accordance with its treasury policy, use derivatives only for the purpose of risk management, and  
not for speculation. Credit risk is managed through diversification of counterparties (principally large banks) by a  
limit system. The limit is based on the review of the counterparty’s financial strength and concurrently manages  
concentration risks.  
In 2008, the Company began entering interest rate swaps with a related party. The related party has a mirror match  
of the swap (back-to-back trade) with an external counterparty in their balance sheets. Starting in 2017, the  
Company began entering interest rate swaps with external bank, to achieve the desired interest-rate maturities and  
asset/liability structures (asset and liability management). The MB Group AG manages its credit risk exposure in  
connection with derivative financial instruments through a limit system, which is based on the review of each  
counterparty's financial strength. Accordingly, only the external positions are considered in the limit system.  
57  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Credit risk (continued)  
Derivative financial instruments (continued)  
The hedging strategy is specified at the MB Group AG level. The decision-making body is the Treasury Risk  
Management Committee, which meets regularly. Cross-currency interest swaps and interest rate swaps contracts  
are subject to credit risk in relation to the relevant counterparties. The Company’s ultimate parent Mercedes-Benz  
Group AG determines which counterparties are contracted with. Typically this will only be with A rated external  
counterparties.  
Maximum credit exposure  
The maximum exposure to credit risk is the carrying amount of those derivatives classified as financial assets.  
The Company’s maximum exposure to credit risk at the reporting date is set out below:  
2023  
2024  
Restated  
$'000  
$'000  
Receivables from financial services  
3,930,172  
4,124,788  
56,529  
Trade receivables  
75,776  
685  
Cash and cash equivalents  
49  
19,096  
37,062  
Interest rate swaps  
4,006,482  
4,237,675  
The Company’s maximum exposure to credit risk for trade receivables and receivables from financial services at the  
reporting date by customer segment is set out below:  
2023  
2024  
Restated  
$'000  
$'000  
Wholesale  
502,206  
502,100  
Retail  
3,484,495  
3,698,464  
3,986,701  
4,200,564  
Impairment losses  
The ageing and corresponding impairment of the Company's trade receivables and receivables from financial  
services at the reporting date under AASB 9 is set out below:  
58  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Credit risk (continued)  
Impairment losses (continued)  
2023  
2024  
Gross  
Gross Impairment  
Restated  
Impairment  
$'000  
$'000  
$'000  
$'000  
Not past due  
3,113,747  
(20,240)  
3,454,281  
(18,377)  
Individually impaired  
752,640  
(1,395)  
702,687  
(910)  
Past due 0-30 days  
62,935  
(1,511)  
27,664  
(1,931)  
Past due 31-60 days  
56,119  
(2,442)  
22,939  
(2,891)  
14,087  
(2,238)  
Past due 61-90 days  
10,155  
(1,923)  
12,219  
(3,113)  
Past due 91 - 180 days  
8,751  
(2,900)  
8,508  
(2,615)  
4,449  
(1,430)  
Past due > 180 days  
4,020,255  
(33,554)  
4,230,926  
(30,362)  
The Company assesses individually each customer with capital outstanding at end of reporting period of greater  
than one million dollars. Impairment is assessed on the basis of the customer credit rating, which for such  
customers, is assessed at either the inception of additional lending, or annually, whichever comes sooner. From the  
credit rating, the probability of default is determined. This is multiplied by a conservative expected loss on the  
contract, and then multiplied by the loss given default rate to ascertain the impairment amount.  
An individual impairment on receivables from financial services is raised also where no collateral is held. These  
unsecured loans represent a documented finance contract with customers whose debts have previously been  
written off and thus the collateral already realised. The capital value at inception of an unsecured loan accordingly  
amounts to the capital outstanding at time of repossession, less collateral sale proceeds, plus any additional  
charges recoverable from the client. The individual impairment raised equals the unsecured loan portfolio and is  
adjusted in line with customer repayments and new additions.  
The vast majority of receivables from financial services related to retail business are grouped in homogeneous pools  
and collectively assessed for impairment (refer Note 3(k)). The impairment model is based on historical experience  
and takes into account the current economic conditions. Particular consideration is given to the earlier disclosed  
aged debtors. The aim of the model is to determine an appropriate level of impairment allowances to reflect losses  
which have been incurred on the loans in the pool, but have not yet been identified. The movement in the allowance  
for doubtful debts is shown in Note 15.  
A security interest is held over the vehicle financed until such time as the finance contract is paid in full. In case of  
default, and in accordance with relevant company guidelines, the vehicle may be repossessed and sold to suffice  
the debt outstanding, being the total future cash flows discounted by the effective customer rate (refer Note 3(k)).  
Where this amount is not sufficient to cover the debt outstanding, legal proceedings may be ensued to recover the  
remaining portion, as well as costs incurred upon the termination of the financing contract in accordance with the  
Company’s Terms and Conditions.  
59  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Credit risk (continued)  
Impairment losses (continued)  
As at the reporting date, the following collateral had been repossessed by the Company:  
2024  
2023  
$'000  
$'000  
Repossessed vehicles  
6,597  
4,255  
Repossessed assets are redeemable by the customer within 28 days of actual repossession providing that certain  
payment criteria are met. This period may be shortened, or extended, at the Company’s discretion. Where the  
vehicle is not redeemed, the sale is subsequently conducted through a vehicle auction house where a reserve is set.  
Alternatively the vehicle can be remarketed directly through the Mercedes-Benz dealer network.  
Repossessed vehicles are reported as finished goods in inventory in the balance sheet.  
60  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Liquidity risk  
Liquidity risk represents the risk that a Company will face difficulty in meeting future obligations associated with its  
financial liabilities.  
The Company’s main sources of liquidity are its operations and borrowings sourced through related parties. The  
related parties’ main sources of funds come from bank loans, commercial paper, notes issuances (secured and  
unsecured) and loans from the ultimate parent entity. Funds are sourced from both the domestic and international  
markets.  
The borrowings are primarily used to fund wholesale and retail customers in the course of the leasing and financing  
business, and to meet working capital needs.  
Immediate cash management is handled through daily requirement analyses. The Company seeks to hold sufficient  
liquid funds to meet daily needs, primarily in the form of cash and cash equivalents. Where additional funds are  
required, the Company utilises a related party overnight borrowing facility. Conversely, where surplus funds are  
held, the Company is able to invest in a related party overnight facility. This is consistent with the Mercedes-Benz  
AG cash concentration method which is used as the basis for cash and asset management throughout the group.  
The overriding principle of cash management is to concentrate cash at the highest possible level to maximise  
investment returns and to minimise borrowing costs.  
Additionally, the Company monitors liquidity exposure in the short and medium term by comparing financial assets  
and financial liabilities for their corresponding maturities, including the estimated cash inflows from the operating  
business. Liquidity exposure is actively managed out to three years from the reporting date and is kept within  
targeted exposure limits as defined by Mercedes-Benz Group AG.  
The ability of the Company to draw on excess liquidity via Mercedes-Benz Australia/Pacific Pty Ltd within the  
worldwide group by the related parties obtaining loans from the ultimate parent entity, and the available committed  
credit lines already in place, give the Company adequate flexibility to cover refinancing requirements and to match  
the characteristics of assets by obtaining sufficient funds of requisite tenor and interest rate terms.  
The following is a maturity analysis of the Company’s financial liabilities, excluding estimated interest payments and  
excluding the impact of netting arrangements.  
Cash flows associated with derivatives that are cash flow hedges are predominantly expected to impact profit or  
loss within the same reporting period as in which the cash flow occurs. That is, consistent with the table below. Any  
differences are not expected to be material.  
61  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Liquidity risk (continued)  
Contractual  
expected  
More than 3  
2024  
cash flows 1 year or less 1 to 2 years 2 to 3 years  
years  
$'000  
$'000  
$'000  
$'000  
$'000  
Non derivative financial liabilities  
(1,196,519)  
(413,442)  
(583,814)  
(199,263)  
-
Loans from related parties  
(2,505,000)  
(614,362)  
(818,264)  
(599,385)  
(472,989)  
Loans from external parties  
Trade and other payables  
(40,357)  
(40,357)  
-
-
-
Interest payable  
(33,080)  
(33,080)  
-
-
-
Lease liabilities  
(10,522)  
(747)  
(772)  
(800)  
(8,202)  
(3,785,478) (1,101,988) (1,402,850)  
(799,448)  
(481,191)  
Derivative financial assets  
Interest rate swaps - cash flow hedges  
8,742  
-
-
-
8,742  
10,354  
6,744  
499  
708  
2,403  
Interest rate swap - no hedge accounting  
19,096  
6,744  
499  
708  
11,145  
Derivative financial liabilities  
Interest rate swap – cash flow hedges  
(1,566)  
-
(264)  
(572)  
(730)  
(9,201)  
-
-
-
(9,201)  
Interest rate swap – no hedge accounting  
(10,767)  
-
(264)  
(572)  
(9,931)  
62  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Liquidity risk (continued)  
Contractual  
expected cash  
More than 3  
2023  
flows 1 year or less 1 to 2 years  
2-3 years  
years  
$'000  
$'000  
$'000  
$'000  
$'000  
Non derivative financial liabilities  
Loans from related parties  
(1,861,666) (1,101,031)  
(177,458)  
(583,177)  
-
Loans from external parties  
(2,039,067)  
(580,022)  
(960,709)  
(498,336)  
-
Trade and other payables  
(51,524)  
(51,524)  
-
-
-
Interest payable  
(29,514)  
(29,514)  
-
-
-
Lease liabilities  
(10,716)  
(722)  
(747)  
(773)  
(8,474)  
(3,992,487) (1,762,813) (1,138,914) (1,082,286)  
(8,474)  
Derivative financial assets  
Foreign currency option contracts - no hedge accounting  
324  
342  
-
-
-
37,062  
8,489  
6,949  
568  
21,056  
Interest rate swap - no hedge accounting  
37,386  
8,831  
6,949  
568  
21,056  
Derivative financial liabilities  
Interest rate swap – cash flow hedges  
(600)  
-
-
(600)  
-
Interest rate swap – no hedge accounting  
(21,192)  
-
-
-
(21,192)  
(21,792)  
-
-
(600)  
(21,192)  
63  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Fair values  
Net fair values of financial assets and liabilities are determined by the Company on the following bases:  
Recognised financial instruments  
Other monetary financial assets and financial liabilities not readily traded in an organised financial market are  
determined by valuing them at the present value of contractual cash flows on amounts due from customers  
(reduced for expected credit losses) or due to suppliers. Cash flows are discounted by using standard valuation  
techniques at the applicable market yield having regard to the timing of cash flows.  
The Company has not disclosed fair value of each class of financial assets and financial liabilities not measured at  
fair value because their carrying amounts are a reasonable approximation of fair value. For the sake of simplicity,  
the fair value of receivable from financial services with variable interest rates are estimated to be equal to the  
respective carrying amounts, because the agreed upon interest rates and those available in the market do not  
significantly differ. The fair value of receivable from financial services with fixed interest rates are determined on the  
basis of discounted expected future cash flows. Discounting is based on the current interest rates at which similar  
loans with identical terms could have been obtained at 31 December 2024 and 31 December 2023. For  
interest-bearing loans and receivables from financial services this assessment was done by discounting the  
expected future principal and interest cash flows.  
Fair value hierarchy  
As at 31 December 2024, derivative financial liabilities of $10,645,217 (2023: $21,792,209) and derivative financial  
assets of $19,095,949 (2023: $37,061,189) are carried at fair value based on a Level 2 valuation methodology  
which requires inputs, other than quoted prices in an active markets for identical assets and liabilities, that are  
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).  
Fair value is calculated based on discounted expected future principal and interest cash flows.  
Interest rates used for determining fair value  
The Company uses the government borrowing yield curve as of 31 December 2024 plus an adequate constant  
credit spread to discount financial instruments. The interest rates used are as follows:  
2024  
2023  
Derivatives  
0.10% - 5.25%  
0.10% - 4.60%  
Loans and borrowings  
3.79% - 4.42%  
3.76% - 4.34%  
Receivables from financial services  
6.58%  
5.89% (restated)  
64  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
24 Financial instruments (continued)  
Capital management  
Net assets and value added represent the basis for capital management. The Company's policy is to maintain a  
strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of  
the business. The Company is required to comply with certain capital and liquidity requirements as a holder of an  
Australian Financial Services License.  
There was no change in the Group's approach to capital management requirements during the year.  
25 Employee benefits  
2024  
2023  
$'000  
$'000  
Current  
Share based payment transactions  
250  
578  
6,973  
Provision for employee benefits  
7,599  
7,223  
8,177  
Non-current  
Share based payment transactions  
264  
401  
Provision for employee benefits  
176  
361  
440  
762  
The present value of employee entitlements not expected to be settled within twelve months has been calculated  
using the following weighted averages:  
2024  
2023  
Assumed rate of increase in wage and salary rates  
2.80%  
5.40%  
Discount rate  
4.07%  
3.98%  
Superannuation plan  
During the year the Company contributed to the Mercedes-Benz Superannuation Plan, a related party plan to which  
it is an associated member, being part of the Mercer Super Trust in respect of all its permanent employees.  
The obligation of the Company to make contributions to the Mercedes-Benz Superannuation Plan is legally  
enforceable up to the date on which the Company gives notice to suspend or terminate contributions as provided in  
the trust deed.  
65  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
25 Employee benefits (continued)  
Performance Phantom Share Plan  
In 2005 Mercedes-Benz Group AG adopted the “Performance Phantom Share Plan” under which virtual shares  
(phantom shares) are granted to eligible employees entitling them to receive cash paid out after four years. The  
amount of cash paid to eligible employees is based on the number of phantom shares that vest (determined over a  
three year performance period) times the quoted price of Ordinary Shares of Mercedes-Benz Group AG (determined  
as an average price over a specified period at the end of the four-year service). The number of phantom shares that  
vest will depend on the achievement of Mercedes-Benz Group AG performance goals as compared with competitive  
and internal benchmarks (return on net assets and return on sales). Mercedes-Benz Group AG will not issue any  
common shares in connection with the Performance Phantom Share Plan.  
In 2023 the Company recognised an addition to the employee entitlement for Performance Phantom Share Plans in  
the income statement of $310,231 (refer Note 7). In 2024 the Company recognised an addition to the employee  
entitlement for Performance Phantom Share Plans in the income statement of $152,088 (refer Note 7). As the  
payment per vested phantom share depends on the quoted price of one Mercedes-Benz Group AG Ordinary Share,  
the average quoted price represents the fair value of each phantom share. The proportionate entitlement release  
and compensation expense for share plans granted in 2023 and 2024 respectively, is determined based on the  
quoted price of Mercedes-Benz Group AG Ordinary Shares as well as the estimated target achievement. The  
carrying amount of the entitlements granted has been recognised as a provision.  
The number of phantom shares granted by Mercedes-Benz Group AG to key management personnel of the Company  
at 31 December 2024 was 14,448 (2023: 14,534).  
26 Notes to the statement of cash flows  
2023  
2024  
Restated  
$'000  
$'000  
Profit for the period  
27,244  
32,689  
Adjustments for  
3,574  
Depreciation and amortisation expense  
2,913  
327  
Loss on sale of property, plant and equipment  
1,172  
Bad debts written off  
20,712  
13,552  
Net expense for movements to provision for doubtful debts  
2,590  
7,446  
4,975  
8,934  
Lease payment  
59,422  
66,706  
Operating profit before changes in working capital  
(Increase) / decrease in receivables from financial services  
170,986  
(126,135)  
(Increase) / decrease in trade receivables  
19,249  
975  
(4,219)  
(Increase) / decrease in inventory  
(1,752)  
(5,267)  
(Increase) / decrease in other assets  
5,063  
66  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
26 Notes to the statement of cash flows (continued)  
2023  
2024  
Restated  
$'000  
$'000  
(Increase) / decrease in derivative financial instruments  
7,264  
24,254  
(Increase) / decrease in deferred tax assets (net)  
(2,858)  
(7,943)  
(1,276)  
Increase / (decrease) in employee entitlements  
37  
(11,170)  
Increase / (decrease) in trade and other payables  
186  
Increase / (decrease) in interest payables  
3,565  
2,951  
(1,593)  
(10,339)  
Unrealised gain / (loss) on derivatives  
234,103  
Net cash (used in)/ from operating activities  
(45,997)  
Cash provided by financing activities  
Cash provided by financing activities includes cash flows from hedging the currency risks of financial liabilities. In  
2024, cash provided by financing activities included payments for the reduction of outstanding leasing liabilities of  
$0.5 million (2023: $0.4 million). The below table includes changes in liabilities arising from financing activities.  
Interest  
bearing  
liabilities Derivatives  
Change in liabilities arising from financing activities 2024  
$'000  
$'000  
6,852,507  
Drawdown of loans  
-
(7,041,130)  
Repayment of loans  
-
Repayment of lease liabilities  
(194)  
-
(7,264)  
Settlement of derivatives  
(188,818)  
(7,264)  
Interest  
bearing  
liabilities Derivatives  
Change in liabilities arising from financing activities 2023  
$'000  
$'000  
Drawdown of loans  
8,702,235  
-
Repayment of loans  
(8,627,391)  
-
Additions of lease liabilities  
10,716  
-
Settlement of derivatives  
-
(24,254)  
85,560  
(24,254)  
67  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
27 Operating leases  
Leases as lessee  
The Company leases property and equipment under operating leases expiring from one to five years. Leases of  
property generally provide the Company with the right of renewal at which time all terms are renegotiated.  
Leases as lessor  
The Company provides vehicles held under operating leases. Future non-cancellable motor vehicle operating lease  
rental income not provided for in the financial statements and receivable is due as follows:  
2024  
2023  
$'000  
$'000  
Within one year  
1,703  
2,401  
One year or later but not later than five years  
-
3,050  
1,703  
5,451  
28 Parent entity  
The immediate parent entity of the Company is Mercedes-Benz Mobility Australia Pty Ltd ("MBMAu") , which is  
incorporated in Australia. The ultimate parent entity of the Company is Mercedes-Benz Group AG, a company  
incorporated in Germany.  
29 Key management personnel  
In addition to their salaries, the Company provides non-cash benefits to key management personnel and contributes  
to a superannuation fund on their behalf (refer Note 25 for details on the superannuation plan).  
The key management personnel compensation included in “employee expenses” (refer Note 7) is as follows:  
2024  
2023  
$'000  
$'000  
Short-term employee benefits  
3,544  
3,152  
Other long-term benefits  
15  
14  
-
Termination benefits  
-
193  
Post-employment benefits  
148  
639  
609  
Share-based payments*  
4,391  
3,923  
68  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
29 Key management personnel (continued)  
*Share based payments are paid by the ultimate parent entity to key management personnel.  
In accordance with AASB 124 Related Party Disclosures, key management personnel of the Group are those  
persons having the authority and responsibility for planning, directing and controlling the activities of the Group,  
directly or indirectly. For purposes of AASB 124 Related Party Disclosures, the below personnel are considered key  
management personnel of the Group:  
- Managing Director  
- Chief Financial Officer  
- Director of Credit and Credit Operations  
- Director of Sales & Marketing  
30 Related party disclosures  
The names of each person holding the position of director of the Company during the year ended 31 December  
2024 are Ilka Fuerstenberger and Rafael Pasquet.  
Details of directors' remuneration payments are included in Note 29.  
Controlled entities  
On the inception of the SAAT 2019-1 in January 2019, the Company invested in Class B notes issued by the SAAT  
2019-1, totalling $112,070,852. The Company holds Class B notes of $71,102,000 as at 31 December 2024 (2023:  
$133,010,000).  
On the inception of the SAAT 2024-1 in April 2024, the Company invested in Class B notes issued by the SAAT  
2024-1, totalling $157,000,000. The trusts used the funds received to purchase receivables from financing  
activities from the Company.  
SAAT 2019-1 and SAAT 2024-1 balances have been consolidated in the financial statements.  
Related entities  
All transactions within the ultimate parent's wholly owned group during the year were made under normal  
commercial terms and conditions.  
In the course of providing wholesale finance to dealers, the Company made payments under normal trading terms to  
Mercedes-Benz Australia /Pacific Pty Ltd, for the purchase of motor vehicles on behalf of dealers.  
Daimler Truck Australia Pacific Pty Ltd has entered into operating leases with the Company. The revenues from  
these leases have been disclosed in Note 5.  
The Company has interest bearing debts to its related parties. The interest expense is disclosed in Note 10. The  
carrying amount is disclosed in Note 23.  
The Company enters into interest rate swaps and foreign currency option contracts with Mercedes-Benz Group AG.  
The interest expense, and interest income, is disclosed in Note 10. The carrying amount for the financial liabilities is  
disclosed in Note 22. The carrying amount for the financial assets is disclosed in Note 16.  
69  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
30 Related party disclosures (continued)  
Related entities (continued)  
The Company paid commissions to Mercedes-Benz Australia /Pacific Pty Ltd totalling $1,230,514 (2023:  
$1,107,574) under normal terms and conditions.  
Mercedes-Benz Australia /Pacific Pty Ltd has agreed to provide residual value guarantees to the Company, for the  
operating leases entered into between the Company and the external customers. Upon expiry of the operating lease  
arrangement, the vehicles are transferred back to Mercedes-Benz Australia /Pacific Pty Ltd. The total residual value  
guaranteed by Mercedes-Benz Australia /Pacific Pty Ltd is amounting to $42,732,805 (2023: $47,795,069). The  
balance is disclosed in Note 14.  
Balances with entities within the wholly-owned group  
The aggregate amounts payable and receivable to entities within the Mercedes-Benz Group AG by the Group at  
balance date:  
2023  
2024  
Restated  
Note  
$'000  
$'000  
Current assets  
42,100  
Trade receivables  
14  
61,984  
-
Receivables from financial services  
15  
14  
Derivative financial instruments  
16  
6,744  
8,813  
2,755  
483  
Current tax assets  
20  
51,599  
71,294  
Non-current assets  
3,637  
Trade receivables  
5,786  
12,352  
28,573  
Derivative financial instruments  
15,989  
34,359  
Current liabilities  
30,837  
Trade and other payables  
22  
30,661  
Interest payables  
25,551  
23,273  
Interest bearing liabilities  
23  
413,442  
1,101,031  
227  
193  
Lease liabilities  
23  
470,057  
1,155,158  
70  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
30 Related party disclosures (continued)  
Related entities (continued)  
Balances with entities within the wholly-owned group (continued)  
2023  
2024  
Restated  
Note  
$'000  
$'000  
Non-current liabilities  
Interest bearing liabilities  
23  
783,076  
760,635  
10,295  
Lease liabilities  
10,523  
1,566  
Derivative financial instruments  
600  
794,937  
771,758  
31 Events subsequent to balance date  
In March 2025, the Board of Directors of the Company approved the issuance of Euro Medium-Term Note in Euro  
Multilateral Trading Facility (“MTF”) market segment on the Luxembourg Stock Exchange (“LuxSE”). The bond  
issuance is expected to take place around mid-May 2025, subject to market conditions and regulatory approvals.  
The proceeds from the issuance will be used for the Company funding purpose.  
Other than what is noted above, there has not arisen in the interval between the end of the financial year and the  
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the  
directors of the Company, to affect significantly the operations of the Company, the results of those operations, or  
the state of affairs of the Company, in future financial years.  
32 Contingencies  
The Directors are not aware of any contingent assets or liabilities requiring disclosure.  
33 Capital and reserves  
Issuance of ordinary shares  
In 2024 no ordinary shares were issued (in 2023: nil).  
Ordinary shares  
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are  
fully paid.  
71  
76  
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Notes to the Consolidated and Company Financial Statements  
31 December 2024  
(continued)  
33 Capital and reserves (continued)  
Hedging revaluation reserve  
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow  
hedging instruments, net of tax.  
Merger reserve  
Merger reserve relates to the difference between the consideration received and net assets of the disposed  
business when the Company applied book value accounting for common control transactions (refer to note 30).  
Dividends  
Dividends totalling $31,500,000 were declared and paid in the year ended 31 December 2024 (2023:  
$37,800,000). Of the total dividend disclosed, $31,500,000 was a cash distribution to its immediate parent on 27  
November 2024.  
72  
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Auditor’s Independence Declaration  
As lead auditor for the audit of Mercedes-Benz Financial Services Australia Pty Ltd for the year ended  
31 December 2024, I declare that to the best of my knowledge and belief, there have been:  
(a)  
no contraventions of the auditor independence requirements of the Corporations Act 2001 in  
relation to the audit; and  
(b)  
no contraventions of any applicable code of professional conduct in relation to the audit.  
This declaration is in respect of Mercedes-Benz Financial Services Australia Pty Ltd and the entities it  
controlled during the period.  
Jonathan Gerace  
Melbourne  
Partner  
30 April 2025  
PricewaterhouseCoopers  
73  
PricewaterhouseCoopers, ABN 52 780 433 757  
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001  
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au  
Liability limited by a scheme approved under Professional Standards Legislation.  
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Independent auditor’s report  
To the members of Mercedes-Benz Financial Services Australia Pty Ltd  
Our opinion  
In our opinion:  
The accompanying financial report of Mercedes-Benz Financial Services Australia Pty Ltd (the  
Company) and its controlled entities (together the Group) is in accordance with the Corporations Act  
2001, including:  
(a)  
giving a true and fair view of the Company's and Group's financial positions as at 31 December  
2024 and of their financial performance for the year then ended  
(b)  
complying with Australian Accounting Standards and the Corporations Regulations 2001.  
What we have audited  
The financial report comprises:  
•
the Consolidated and Company statements of financial position as at 31 December 2024  
•
the Consolidated and Company statements of comprehensive income for the year then ended  
•
the Consolidated and Company statements of changes in equity for the year then ended  
•
the Consolidated and Company statements of cash flows for the year then ended  
•
the notes to the financial statements, including material accounting policy information and other  
explanatory information  
•
the directors’ declaration.  
Basis for opinion  
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under  
those standards are further described in the Auditor’s responsibilities for the audit of the financial  
report section 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 the Company and the Group in accordance with the auditor independence  
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting  
Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants  
(including Independence Standards) (the Code) that are relevant to our audit of the financial report in  
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.  
Other information  
The directors are responsible for the other information. The other information comprises the  
information included in the annual report for the year ended 31 December 2024, but does not include  
the financial report and our auditor’s report thereon.  
PricewaterhouseCoopers, ABN 52 780 433 757  
74  
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001  
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au  
Liability limited by a scheme approved under Professional Standards Legislation.  
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Our opinion on the financial report does not cover the other information and accordingly we do not  
express any form of assurance conclusion thereon through our opinion on the financial report.  
In connection with our audit of the financial report, our responsibility is to read the other information  
and, in doing so, consider whether the other information is materially inconsistent with the financial  
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.  
If, based on the work we have performed on the other information that we obtained prior to the date of  
this auditor’s report, we conclude that there is a material misstatement of this other information, we are  
required to report that fact. We have nothing to report in this regard.  
Responsibilities of the directors for the financial report  
The directors of the Company are responsible for the preparation of the financial report in accordance  
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair  
view, and for such internal control as the directors determine is necessary to enable the preparation of  
the financial report that is free from material misstatement, whether due to fraud or error.  
In preparing the financial report, the directors are responsible for assessing the ability of the Company  
and the Group to continue as a going concern, disclosing, as applicable, matters related to going  
concern and using the going concern basis of accounting unless the directors either intend to liquidate  
the Company or the Group or to cease operations, or have no realistic alternative but to do so.  
Auditor’s responsibilities for the audit of the financial report  
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is  
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 level of assurance, but is not a guarantee that  
an audit conducted in accordance with the Australian Auditing Standards will always detect a material  
misstatement when it exists. Misstatements can arise from fraud or error and 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 report.  
A further description of our responsibilities for the audit of the financial report is located at the Auditing  
and Assurance Standards Board website at: https://auasb.gov.au/media/apzlwn0y/ar3_2024.pdf. This  
description forms part of our auditor's report.  
PricewaterhouseCoopers  
Jonathan Gerace  
Melbourne  
Partner  
30 April 2025  
75  
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Report on compliance with relevant requirements set out in the Delegated Regulation  
2019/815 on European Single Electronic Format  
Our opinion  
We have checked the compliance of the accompanying financial statements of the Company as at 31  
December 2024 with the relevant requirements set out in the Delegated Regulation 2019/815 on  
European Single Electronic Format (“ESEF Regulation”) that are applicable to the accompanying  
financial statements of the Company.  
For the Company, it relates to the requirement that:  
the accompanying Company financial statements are prepared in a valid XHTML format.  
In our opinion, the accompanying Company financial statements of Mercedes-Benz Financial Services  
Australia Pty Ltd as at 31 December 2024, identified as MBFSAU_Annual_Report_2024.xhtml, have  
been prepared, in all material respects, in compliance with the requirements laid down in the ESEF  
Regulation.  
Responsibilities of the directors  
In addition to the responsibilities described above in the Responsibilities of the directors for the  
financial report section to our Report on the audit of the financial report, the directors are responsible  
for presenting the Company financial statements in compliance with the requirements set out in the  
ESEF Regulation.  
Auditor’s responsibilities  
In conjunction with our responsibilities described above in the Auditor’s responsibilities for the audit of  
the financial report section to our Report on the audit of the financial report, our responsibility is to  
assess whether the accompanying Company financial statements have been prepared, in all material  
respects, in compliance with the requirements laid down in the ESEF Regulation.  
PricewaterhouseCoopers  
Melbourne  
Jonathan Gerace  
Partner  
15 May 2025  
76