Outlook.

The economic situation and automotive markets continue to be characterised by a degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business development of Mercedes-Benz Group may arise from geopolitical events and trade policy.

The company sees unit sales of Mercedes-Benz Cars at the prior-year level, with overall sales expected to rise in the second half of 2024, driven by the full availability of all new E-Class and GLC models and an increase in Top-End Vehicle sales.

• In Europe, Mercedes-Benz sees the overall sentiment improving.
• In China Mercedes-Benz has a cautious view on the macroeconomic sentiment and fierce competition in the Entry segment and to a certain extent in the Core segment. In China the company seeks to successfully defend its leading position in the Top-End Vehicle segment in a softer market environment.
• In the United States, solid momentum is seen for sales and demand. A positive year-over-year development is expected for the second half of 2024 driven by sales of the GLC.

The xEV share is expected to be between 19% - 20%. Sales of plug-in hybrids are expected to increase in the second half, driven by SUVs and the full availability of the E-Class.

The adjusted Return on Sales (RoS) guidance is seen in the narrower range of 10% - 11% (previously 10%-12%). Mercedes-Benz expects an increase in sales volumes and an improved model mix in the second half of the year. Mercedes-Benz also seeks to hold and defend pricing at current levels. The company sees some normalization of the used vehicle business which overall remains on a healthy level. Investments in property plant & equipment, research & development expenditure and the adjusted Cash Conversion Rate (CCR) are seen unchanged at 0.8 to 1.0.

Mercedes-Benz Vans raises its adjusted Return on Sales (RoS) guidance to 14%-15% (previously 12% - 14%) given continued healthy net pricing and favourable structure supported by comprehensive cost reductions. The Vans division is currently in a sweet spot with regards to product lifecycle. The company expects a healthy return on sales in H2 but influenced by increasing costs for the new VAN.EA platform. Considering current macro developments and uncertainties with regard to H2, the company remains prudent and takes a cautious view. Market demand is expected to soften in the private and commercial van segments in H2. As the EV markets ease, the xEV share is now seen at 5% - 7%. The full year guidance on sales, research & development expenditure, investments in property plant & equipment as well as the adjusted CCR remain unchanged.

Due to the demanding market environment and interest rates which are remaining higher for longer, Mercedes-Benz Mobility now expects the adjusted Return on Equity (RoE) for the division in the range of 8.5% - 9.5% for the full year (previously 10%-12%). Coming from an adjusted Return on Equity (RoE) of 8.5% in H1 the company expects a flat portfolio margin in H2. Improving cost of credit risk will be partially outweighed by further increasing ramp up costs for charging infrastructure and a challenging market environment especially in China. Mercedes-Benz Mobility will continue to work on efficiencies.

The Mercedes-Benz Group confirms its group guidance. Group revenue is expected to remain at the prior- year level with Mercedes-Benz Cars, Mercedes-Benz Vans and Mercedes-Benz Mobility revenue forecasts unchanged. Group EBIT is expected to be slightly below the prior-year level, resulting out of the divisional guidance, with the guidance raise at Vans balancing out Mercedes-Benz Mobility. Group free cash flow from the industrial business is seen slightly below the very strong levels from 2023.

This page was revised based on the Q2 Interim Report 2024 and contains forward-looking statements.