Mercedes-Benz Group Annual Meeting: Transformation on track

At the Mercedes-Benz Group AG (ticker symbol: MBG) Annual Meeting for the financial year 2022 the company outlines its strategic progress while delivering strong financial results and shareholder returns.

“The Mercedes-Benz Group successfully overcame the challenges of the past year, demonstrating a high level of resilience and great adaptability while remaining focused on substantial progress in implementing, developing, and sharpening its sustainable business strategy. Going forward, we will continue to work on a profitable, electric and software-driven future at Mercedes-Benz.”

Bernd Pischetsrieder, Chairman of the Supervisory Board of Mercedes-Benz Group AG

For shareholders, the past year was rewarding: Between March 2022 and March 2023 Mercedes-Benz total shareholder returns – the profit from all capital gains and dividends – increased by 20%, outperforming the German DAX index, where total shareholder returns rose 8% during the same period.

For the financial year 2022 the Board of Management and the Supervisory Board propose a dividend of €5.20 (2021: €5.00). Based on this proposal, the total dividend pay-out for 2022 amounts to €5.6 billion (2021: €5.3 billion). Furthermore, the Board of Management and the Supervisory Board in February 2023 agreed on a share buyback program. Beginning in March 2023, Mercedes-Benz shares worth up to €4 billion (not including incidental costs) are intended to be acquired on the stock exchange over a period of up to two years, with a view to cancelling the shares.

The company’s focus on desirable products is paying off. Sales in the Mercedes-Benz Top-End segment increased by 8% last year while battery electric vehicle (BEV) sales for Mercedes-Benz Passenger Cars rose to 128,700 vehicles (+147%) and 15,000 eVans (+9%). Group Earnings Before Interest and Taxes (EBIT) improved by 28% to €20.5 billion (2021: €16.0 billion) and revenue increased by 12% to €150 billion (2021: €134 billion). The momentum continued in 2023: In the first quarter, improved pricing outweighed headwinds from material costs. Together with higher sales as well as a favourable product mix, resulted in an EBIT of €5.5 billion (Q1 2022: €5.2 billion). First-quarter revenue increased 8% to €37.5 billion (Q1 2022: €34.9 billion) and adjusted EBIT rose to €5.4 billion (Q1 2022: €5.3 billion).

“As the world’s most valuable luxury automotive brand, we delivered strong results in 2022 and have become significantly more resilient while driving forward the transformation. This is the result of great teamwork and our highly sought-after products. Together we stand by our ambition to build the most desirable cars and vans and to be a double-digit margin company – also in the electric and digital era.”

Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG

Election to the Supervisory Board

After 15 years, Sari Baldauf will leave the Supervisory Board at the end of the Annual Meeting. Stefan Pierer has been proposed for election based on his in-depth industry know-how and his expertise in product and brand development.

“With Sari Baldauf, a highly esteemed colleague is leaving us. For many years, she has played a key role in shaping the work of the Supervisory Board with her broad entrepreneurial knowledge and extensive international experience. On behalf of the entire Supervisory Board, I would like to express my sincere thanks for her outstanding commitment. We wish her all the best for the future and continued success.”

Bernd Pischetsrieder, Chairman of the Supervisory Board of Mercedes-Benz Group AG

Since the Annual Meeting on April 29, 2022, there have been further changes: Gabriela Neher, Works Council Representative at the Mercedes-Benz plant in Rastatt, and Michael Peters, Works Council Chairman at the Mercedes-Benz plant in Bremen, were elected to the Supervisory Board for the first time. Elke Toenjes-Werner, who retires, and Michael Brecht, Chairman of the General Works Council of Daimler Truck AG as well as Deputy Chairman of the Supervisory Board of Daimler Truck Holding AG, will no longer be members of the Supervisory Board.

“I would like to thank the outgoing members of the Supervisory Board for their trust, cooperation and commitment. Special thanks go to Michael Brecht, who has played a key role in shaping and enriching the work of the Supervisory Board for eight years as its Deputy Chairman.”

Bernd Pischetsrieder, Chairman of the Supervisory Board of Mercedes-Benz Group AG

Transformation continues in 2023

On February 22, 2023 the company unveiled plans for a proprietary software operating system: MB.OS is based on a new purpose-built chip-to-cloud architecture designed to deliver exceptional software capabilities. As part of the strategy presentation, Mercedes-Benz and Google announced a long-term strategic partnership in the area of mapping.

At its ESG (Environmental, Social and Governance) Conference 2023, Mercedes‑Benz underlined measures aimed at reducing the carbon footprint and creating lasting value for all stakeholders. Some examples of their efforts: By the end of 2023, the new battery recycling factory in Kuppenheim, Germany, will start ramping up operations. Expanding the energy portfolio to include wind power from onshore and offshore wind farms is another focus in the company’s energy strategy. In 2022, the company signed a contract with Canadian-German start-up Rock Tech Lithium for the supply of an average 10,000 tons lithium hydroxide per year starting in 2026. Finally, as part of its transformation efforts Mercedes-Benz will invest more than €1.3 billion in the qualification, training and continuing education of its employees by 2030.

On its way to an all-electric future Mercedes-Benz currently offers 7 fully electric cars and 4 vans. To accelerate the transition to electric vehicles, the company announced plans to launch a global high-power charging network across North America, Europe, China and other key markets before the end of the decade, when Mercedes-Benz intends to go all-electric wherever market conditions allow.

For its Van division Mercedes-Benz will provide a strategy update on May 16, 2023.

Link to the current Annual Report: group.mercedes-benz.com/results-2022

Link to press information “Financial figures Q1 2023”: group-media.mercedes-benz.com/Financials-Q1

Further information on Mercedes-Benz Group AG is available at: group-media.mercedes-benz.com and group.mercedes-benz.com

Forward-looking statements:

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel, raw materials or energy; disruption of production due to shortages of materials or energy, labour strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending governmental investigations or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading “Risk and Opportunity Report” in this Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Mercedes-Benz Group at a glance

Mercedes-Benz Group AG is one of the world’s most successful automotive companies. With Mercedes-Benz AG, the Group is one of the leading global suppliers of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG offers financing, leasing, car subscription and car rental, fleet management, digital services for charging and payment, insurance brokerage, as well as innovative mobility services. The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the future of mobility in a safe and sustainable way as both a motivation and obligation. The company’s focus therefore remains on innovative and green technologies as well as on safe and superior vehicles that both captivate and inspire. Mercedes-Benz continues to invest systematically in the development of efficient powertrains and sets the course for an all-electric future: The brand with the three-pointed star pursues the goal to go all-electric by 2030, where market conditions allow. Shifting from electric-first to electric-only, the world’s pre-eminent car company is accelerating toward a fully electric and software-driven future. The company’s efforts are also focused on the intelligent connectivity of its vehicles, autonomous driving and new mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its responsibility to society and the environment. Mercedes-Benz sells its vehicles and services in nearly every country of the world and has production facilities in Europe, North and Latin America, Asia and Africa. In addition to Mercedes-Benz, the world’s most valuable luxury automotive brand (source: Interbrand study, 03 Nov. 2022), Mercedes-AMG, Mercedes-Maybach, Mercedes-EQ and Mercedes me as well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial Services and Athlon. The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In 2022, the Group had a workforce of around 170,000 and sold around 2.5 million vehicles. Group revenues amounted to €150.0 billion and Group EBIT to €20.5 billion.

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