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. Current supply bottlenecks are on the way to easing in regard to the GLC and E-Class, with further improvements expected. Sales levels in the first quarter are seen as the trough, with second quarter volumes expected to be better. Total unit sales are still seen at the prior-year level with Core segment sales benefiting from the E-Class and GLC this year, and Top-End Vehicle sales improving from first-quarter levels, due to product transitioning.

In Europe overall, sentiment is seen unchanged.

In China availability will improve, especially for the E-Class. Thanks to very good acceptance of our current product lineup and availability, growth potential is seen from the portfolio and availability side. However, the overall market is seen with caution.

In the United States, solid momentum is seen for sales and demand. A positive-year-over-year development is expected because of SUV’s and the GLC in particular.

The xEV share is expected to remain at approximately 19% - 21% of new car sales, even as production of the all-electric smart fortwo model came to an end in March.

The adjusted Return on Sales (RoS) is expected in the range of 10% - 12%. An increase in sales volume over the coming quarters and an improvement in product mix in the second half of 2024 is expected. Mercedes-Benz wants to hold and defend pricing at current levels.

Some material tailwinds on raw material costs are seen and further headwinds on supply-chain related costs are expected. On a full-year basis a tailwind is expected on material costs.

Research & Development spending is expected to be flat. Investments in property plant & equipment are seen significantly higher.

The adjusted cash conversion rate (CCR) corridor for Mercedes-Benz Cars remains at 0.8 to 1.0. Cash generation is expected to continue.

Strong Q1 performance at Mercedes-Benz Vans provides a comfortable cushion for the remainder for the year. Market demand is expected to soften in the private and commercial van segments. Considering current macro developments and uncertainties in regard to the second half of 2024, the adjusted RoS is expected to remain in the range of 12% - 14%. Full-year guidance on sales, xEV sales, research and development as well as investment in property, plants and equipment are unchanged. The adjusted CCR for Mercedes-Benz Vans is seen remaining at 0.6 to 0.8.

The adjusted Return on Equity at Mercedes-Benz Mobility is seen unchanged in the range of 10% - 12%. Q1 is seen as the trough, with improvements expected over the second half of 2024, despite increasing ramp-up costs for charging infrastructure. Coming from 8.5% adj. RoE in Q1, positive effects from increased acquisition margins are expected on the portfolio margin. The cost of credit risk is seen improving from Q1 levels but is expected at an overall higher level compared to 2023.

The Mercedes-Benz Group confirms its group guidance. Group revenue in 2024 is expected to remain at the prior-year level, with Cars, Vans and Mobility seen unchanged. Group EBIT is expected to be slightly below the 2023 level, resulting out of divisional guidances. Group Free Cash Flow from the Industrial Business is seen slightly below the very strong levels from 2023, due to lower EBIT at Cars and Vans and lower CCR at Vans.

This page was revised based on the Q1 Interim Report 2024 and contains forward-looking statements.