The macroeconomic and geopolitical conditions continue to be characterized by an exceptional degree of uncertainty, including the war in Ukraine, its effects on supply chains and on the availability and the development of prices for energy and raw materials. Further effects due to the rapidly changing situation in Russia and Ukraine are not currently known and have not yet been taken into account in our key figures. An escalation beyond its current state could possibly have substantial negative consequences for Mercedes-Benz business activities.
In addition, the continued very high inflationary pressure for consumers and companies and the associated central bank increases in interest rates as well as ongoing bottlenecks in global supply chains make the outlook more difficult. Not least the further course of the pandemic, in particular in China, holds uncertainties for the expected development of the market.
Mercedes-Benz Cars continues to expect sales slightly above last year and for demand to outstrip supply. Sales in the fourth quarter are seen above sales in Q4 last year. Mercedes-Benz Cars now expects the adjusted RoS for the full year to be in the range of 13%-15%, rather than 12%-14% seen earlier. The cash conversion rate for Mercedes-Benz Cars remains unchanged at between 0.8 to 1.0. Investments in property, plant & equipment and research and development remain unchanged at “significantly above” the prior-year level.
Mercedes-Benz Vans expects sales to remain slightly above 2021 levels. The adjusted RoS at Mercedes-Benz Vans is now expected to be at 9% - 11%, rather than 8% - 10% previously. The cash conversion rate for Mercedes-Benz Vans has been adjusted to 0.8 to 1.0, from 0.6 to 0.8 previously. Investments in property, plant & equipment and research and development remain unchanged at “significantly above” the prior-year level.
The adjusted Return on Equity at Mercedes-Benz Mobility is still seen in the range of 16% to 18%.
Revenue continues to be expected at “significantly above” 2021 levels. Group EBIT is now seen “significantly above” the prior year, rather than “slightly above.” Free Cash Flow from the industrial business remains at “prior-year level.”