Full Year Results and Annual Report 2023.

The adjusted Earnings Before Interest and Taxes at Mercedes-Benz Cars reached €14.3 billion (2022: €16.2 billion) and the adjusted Return on Sales resulted in a solid 12.6% (2022: 14.6%). Hereby, tailwinds from net pricing, lower raw material prices and improved manufacturing costs were outweighed by higher inflation charges and supply-chain related costs.

Research and Development costs rose for future platforms and technologies, particularly for MB.OS. Net pricing increased significantly with the average sales price up 2% to €74,200 in 2023 and remained positive on a healthy level also in the fourth quarter.

Overall sales volumes remained flat, reaching 2,044,100 units in 2023 and included a sales increase for Mercedes-Maybach (+19%), G-Class (+11%) and Mercedes-AMG (+4%). The model mix remained flat, but on a high level, with Top-End vehicle sales reaching 328,300 last year. The S-Class remains the undisputed leader in its segment, retaining its market share with around 50% in all key regions. Battery electric vehicles now account for 12% of overall Mercedes-Benz Cars sales with Mercedes-Benz reaching the highest share of EV’s among all traditional foreign OEMs in the United States in 2023.

The adjusted Cash Flow Before Interest and Taxes (CFBIT) of Mercedes-Benz Cars increased by 10% to €12.5 billion in 2023 (2022: €11.4 billion) due to improved working capital, resulting in a favorable adjusted Cash Conversion Rate of 0.9 compared to 0.7 last year.

Revenue at Mercedes-Benz Vans rose by 18% to €20.3 billion (2022: €17.2 billion) and adjusted EBIT increased 59% to €3.1 billion (2022: €1.9 billion) year-on-year, as unit sales improved 8% to a record 447,800 units (2022: 415,300 units).

The strong financial performance is a result of strong product substance, a healthy price premium and product mix, robust net pricing and lower raw material costs. These factors, combined with efficiency measures, helped to offset higher inflation-related and logistic costs. In line with the value growth strategy to focus on premium segments, large Vans dominated sales, resulting in record sales in the U.S., the Sprinter leading its segment in Europe and Mercedes-Benz Vans leading the market in Germany. With 237,400 large, 178,900 mid-size and 31,500 small vans sold, Mercedes-Benz Vans achieved its best annual result to date in each segment.

In the United States, sales grew by 13% to an annual record of 75,100 units. With around 22,700 eVans, sales of electric vans increased by 51% in 2023, accounting for 5% of total sales. Last year also saw the premiere of the new eSprinter and the facelift of the mid-size van portfolio. With the eCitan, EQT (WLTP: combined electricity consumption 100 kWh/km: 20,7-19,3; combined CO2 emissions: 0 g/km), eVito, eVito Tourer, EQV and eSprinter, Mercedes-Benz Vans offers each model also as an all-electric version since 2023. Research and development costs increased due to an investment focus on Van Electric Architecture (VAN.EA). Investments into property, plants and equipment rose as plants were retooled to build the new eSprinter and the facelift of the mid-size vans and to build the all-new generation of electric vans. Full year the adjusted cash flow surged by 48% to €3.0 billion (2022: €2.0 billion), resulting in a strong adjusted Cash Conversation Rate of 1.0 (2022: 1.1).

Mercedes-Benz Mobility saw new business increase by 7% to €62.0 billion (2022: €58.0 billion) in a competitive market environment with above average penetration rates for financed or leased electric vehicles. The total portfolio grew in 2023 to €135.0 billion (2022: €132.4 billion). Performance was impacted by a lower portfolio margin due to higher refinancing rates and intensified competition in the financial services sector, resulting in adjusted Earnings Before Interest and Taxes of €1.7 billion (2022: €2.4 billion). The expenses for the establishment of charging activities also had an effect on EBIT. The charging business continued its global ramp up with high-power charging stations opening in Germany, the U.S. and China. As a result, the adjusted Return on Equity (RoE) was at 12.3% (2022: 16.8%).