- Performance improved: Product mix and cost efficiency support
adjusted EBIT increase at Mercedes-Benz Cars & Vans of
105%
- Portfolio optimised : Top-end vehicle sales surge and
electrification ramp-up gathers pace
- New structure established: Pure-play car & van business
after successful Daimler Truck spin-off
- Dividend increased: Proposal of €5.00 per share (2020: €1.35)
reflects solid cash generation
- Outlook 2022: Guidance confirms strategic progress
Mercedes-Benz Group AG (ticker symbol: MBG) achieved strong
financial results for the fiscal year 2021 ended December 31, while
accelerating its strategy as a pure-play manufacturer of desirable
cars and vans.
In 2021, good product mix, solid net pricing, continued
cost-discipline and favourable used car performance lifted the
adjusted Return on Sales (RoS) for the Mercedes-Benz Cars &
Vans division to 12.7% in the full year, even as the COVID-19
pandemic and semiconductor supply chain bottlenecks continued to
affect the business. Since 2019 fixed costs at Mercedes-Benz Cars
have fallen by 16% while revenue per unit improved by 26% to an
average €49,800 per vehicle.
Mercedes-Benz achieved several technological milestones last
year: The company introduced four battery electric vehicles and
attained the first internationally valid system approval for
SAE-Level 3 automated driving. The EQS electric flagship received
strong reviews and orders for the vehicle are currently at around
20,000 of which 3,600 came in January 2022. Mercedes-Benz is
preparing to roll out a raft of new electric vehicles this year,
including the EQE and EQS SUV.
”2021 was a year of strategic progress for Mercedes-Benz. Three
numbers illustrate how this transformation is gaining traction:
Top-end vehicle sales rose by 30%, sales of electric cars surged
64%, and our adjusted EBIT increased by 105%. That’s a strong
demonstration of the potential of this brand and this team. I want
to extend my deepest gratitude to all our colleagues who made this
excellent result possible,” said Ola Källenius, Chairman of the
Board of Management of Mercedes-Benz Group AG. “With a clear
agenda for this year we are confident about 2022. Aside from the
relentless focus on cost efficiency and supply chain management,
our strategic priorities are: Scaling electric vehicles,
accelerating our car-software plans and growing our luxury
business.”
On February 1, 2022 the previous Daimler AG was renamed
Mercedes-Benz Group AG and Daimler Mobility AG became Mercedes-Benz
Mobility AG. The former Daimler Trucks & Buses division was
listed on the Frankfurt Stock Exchange on December 10, 2021.
Figures within financial statements have therefore been split into
continued and discontinued operations. In line with the newly
formed Group divisions, the reporting structure and the prior-year
figures have been adjusted accordingly. All figures are preliminary
and unaudited.
In the fourth quarter, the company realized a one-time Group
EBIT gain of €9.2 billion from deconsolidation, due to the spin-off
of the Daimler commercial vehicle business. This one-time EBIT
effect has no impact on the cash flow and no material impact on
taxes. It is the perspective of the management that this is a pure
valuation effect and has therefore been excluded from the basis for
determining the dividend proposal.
Mercedes-Benz Group
Mercedes-Benz Group revenue reached €168 billion (2020: €154.3
billion). The share from continuing operations was €133.9 billion
(2020: €121.8 billion). Group EBIT was €29.1 billion (2020: €6.6
billion), thereof the share from continuing operations was €16.0
billion (2020: €6.1 billion). Adjusted EBIT, reflecting the
underlying business, was €19.2 billion (2020: €8.6 billion). Group
net profit was €23.4 billion (2020: €4.0 billion). The share from
continuing operations was €11.1 billion (2020: €4.0 billion).
In 2021, net profit excluding the deconsolidation result rose to
€14.2 billion (2020: €4.0 billion). Earnings per share, excluding
the deconsolidation result, rose by 280% to €12.89 (2020:
€3.39).
Mercedes-Benz Group
Q4
Q4
Change
FY
FY
Change
2021
2020
21/20
2021
2020
21/20
Revenue, in millions of €
43,389
46,621
-7%
167,971
154,309
+9%
EBIT, in millions of €
14,557
4,598
+217%
29,069
6,603
+340%
EBIT adjusted, in millions of €
5,231
5,151
+2%
19,230
8,641
+123%
Net profit/loss, in millions of
€
12,746
3,589
+255%
23,3961
4,009
+484%
Earnings per share (EPS), in €
11.82
3.26
+263%
21.502
3.39
+534%
Employees (December 31)
-
-
-
172,4255
275,943
-38%
Net liquidity (industrial business,
December 31), in millions of €
21,005
17,855
+18%
21,005
17,855
+18%
Free cash flow (industrial business)3,
in millions of €
1,961
4,751
-59%
8,606
8,259
+4%
Free cash flow (industrial business)
adjusted4, in millions of €
2,267
4,894
-54%
10,882
9,155
+19%
1
Excluding the result from the
deconsolidation of the Daimler commercial vehicle business, net
profit amounted to €14,180 million.
2
Excluding the result from the
deconsolidation of the Daimler commercial vehicle business, EPS
amounted to €12.89.
3
Including former Daimler Trucks
& Buses division.
4
Including former Daimler Trucks
& Buses division. The free cash flow of the former Daimler
Trucks & Buses division for 2021 amounted to €726 million until
the spin-off and hive down went into effect on 9 December 2021.
5
As at 31 December 2021 excluding
the employees of the spun-off Daimler commercial vehicle
business.
Investments, free cash flow and liquidity
Thanks to a tight grip on working capital and investments, the
strong profitability translated into a solid level of free cash
flow. The free cash flow of the industrial business was €8.6
billion (2020: €8.3 billion), including important upfront
investments in future products. The adjusted free cash flow of the
industrial business was €10.9 billion (2020: €9.2 billion). The net
liquidity of the industrial business amounted to €21.0 billion (end
of Q3 2021: €23.5 billion/end of 2020 €17.9 billion), even after
the spin-off of Daimler Truck. The Group’s investments in property,
plant and equipment in the full year totaled €3.8 billion from
continued operations (2020: €4.9 billion). Research &
development expenditure for 2021 for continued activities amounted
to €7.7 billion (2020: €7.2 billion).
Divisional results
Sales at the Mercedes-Benz Cars & Vans division
decreased by 5% to 2,330,169 vehicles (2020: 2,461,884).
Mercedes-Benz passenger car unit sales decreased to 2,054,962
(2020: 2,164,187), mainly due to the global supply constraints of
semiconductors. However, the Top-end vehicles, which include
Mercedes‑Maybach, Mercedes-AMG, G-Class, S-Class, GLS and EQS,
posted a new sales record in 2021, underscoring the strength of the
world’s most valuable luxury car brand. Mercedes-Maybach sales in
China have risen to more than 1,000 vehicles a month since June
last year, with the exception of last October, when supplies were
constrained. At Mercedes-Benz Vans, in line with the strategy to
focus on EV’s, battery electric vehicle sales more than doubled.
The adjusted Return on Sales (RoS) for Mercedes-Benz Cars and Vans
rose to 12.7% from 6.9% in the year-earlier period.
Mercedes-Benz Cars & Vans
Q4
Q4
Change
FY
FY
Change
2021
2020
21/20
2021
2020
21/20
Sales, in units
611,920
760,895
-20%
2,330,169
2,461,884
-5%
Sales Mercedes-Benz Cars, in
units
500,421
641,146
-22%
1,943,930
2,087,232
-7%
Sales Mercedes-Benz Vans, in
units
111,499
119,749
-7%
386,239
374,652
+3%
Revenue, in millions of €
29,007
30,613
-5%
109,648
98,576
+11%
EBIT, in millions of €
4,106
3,669
+12%
13,626
5,172
+163%
EBIT adjusted, in millions of €
4,294
4,066
+6%
13,914
6,802
+105%
Return on Sales (RoS), in %
14.2%
12.0%
+2.2%pts
12.4%
5.2%
+7.2%pts
Return on Sales (RoS) adjusted, in
%
14.8%
13.3%
+1.5%pts
12.7%
6.9%
+5.8%pts
Cash Flow Before Interest and Tax
(CFBIT), in millions of €
2,048
3,730
-45%
10,170
7,048
+44%
Cash Flow Before Interest and Tax
(CFBIT) adjusted, in millions of €
2,234
3,855
-42%
12,295
7,917
+55%
Cash Conversion Rate (CCR)
adjusted1
0.5
0.9
-
0.9
1.2
-
1
Ratio of CFBIT adjusted to EBIT
adjusted.
At Mercedes-Benz Mobility, new business fell by 6% to
€63.6 billion (2020: €67.8 billion) due to lower penetration rates
and the shortage of semiconductors. The division’s EBIT amounted to
€3.5 billion (2020: €1.4 billion). The portfolio decreased due to
the Truck spin-off and lower dealer stock. With its financial
services products the division supported the ramp up of the
electric vehicle sales. Adjusted EBIT more than doubled to €3.4
billion (2020: €1.6 billion) and adjusted return on equity reached
22%, which is above the adjusted prior-year figure of 10.9%. The
lower cost of credit risks and a higher interest margin due to
improved funding conditions contributed towards the result.
Mercedes-Benz Mobility
Q4
Q4
Change
FY
FY
Change
2021
2020
21/20
2021
2020
21/20
Revenue, in millions of €
7,246
7,271
-0%
27,941
27,699
+1%
New business, in millions of €
15,043
18,965
-21%
63,631
67,786
-6%
Contract volume (December 31), in
millions of €
133,687
150,553
-11%
133,687
150,553
-11%
EBIT, in millions of €
882
584
+51%
3,493
1,436
+143%
EBIT adjusted, in millions of €
885
623
+42%
3,449
1,595
+116%
Return on Equity (RoE), in %
21.6%
16.2%
+5.4%pts
22.3%
9.8%
+12.5%pts
Return on Equity (RoE) adjusted, in
%
21.7%
17.3%
+4.4%pts
22.0%
10.9%
+11.1%pts
Dividend
At the Annual General Meeting on April 29, 2022, the Board of
Management and the Supervisory Board will propose a dividend of
€5.00 per share (2020: €1.35), thereof approximately €0.70 covers
the dividend share of Daimler Trucks & Buses, as Daimler Truck
Holding AG will not pay out a separate dividend to its shareholders
for 2021. Therefore, a dividend of €4.30 is the reference point
going forward for Mercedes-Benz Group. For 2021 the total payout
will amount to €5.35 billion (2020: €1.4 billion).
Outlook
Semiconductors
Mercedes-Benz expects that supply constraints related to
semiconductors will continue to impact the market in 2022.
Visibility on semiconductor supply is improving and capacity is
gradually increasing. However, there is a high level of volatility
and selective bottlenecks remain. Therefore, it is currently not
possible to give a prognosis about when the semiconductor supply
bottlenecks will be cleared. The company expects the situation to
stabilize in 2022 compared to last year. In line with the
Mercedes-Benz strategy, deliberate prioritization of top-end and
electric vehicles continues. Furthermore, deep sourcing and
interaction has been intensified with direct suppliers, as well as
with the semiconductor suppliers, in order to make the system more
robust in the future. Together with suppliers, Mercedes-Benz is
continually working to secure capacity and develop the technology
to enable new chip generations. This includes more concrete
agreements on supply quantities, extended planning cycles, as well
as the development of a safety stock at various points of the
supply chain and multiple supply sources.
Mercedes-Benz Cars
Demand for Mercedes-Benz products remains very strong. However,
due to uncertainties surrounding supply chain constraints, a
cautious approach has been taken to forecasting sales. The company
expects unit sales of Mercedes-Benz Cars to be slightly above 2021.
The sales mix is expected to remain favourable, with top-end
vehicle sales increasing by more than 10%. Net pricing is
anticipated to improve further, but it will not fully offset the
raw material headwinds which are expected to increase in 2022
compared with last year. Used car results are expected to normalise
but remain on a good level. Investments into property, plant and
equipment as well as research and development costs are expected to
be slightly above the prior year, mainly because of investments
into vehicle platforms MMA and AMG.EA. The cash conversion rate for
Mercedes-Benz Cars will be in the corridor of 0.8 and 1.0.
Mercedes-Benz Cars expects an adjusted return on sales of 11.5% to
13% for the year 2022.
Mercedes-Benz Vans
Mercedes-Benz Vans expects sales to be slightly above last
year’s level. Despite strong demand Mercedes-Benz Vans has, in line
with its cars division, again chosen a cautious approach to
forecasting sales, given the supply-chain uncertainties faced by
the industry. Investments into property, plant and equipment and
research and development expenditures will be significantly above
last year, when expenditures were relatively low. A new
fully-fledged electric platform to cover all segments, VAN.EA, is
being developed to hit markets by the mid of this decade. At the
same time, existing combustion platforms are being upgraded. The
adjusted cash conversion rate is expected to be 0.6 to 0.8.
Mercedes-Benz Vans anticipates an adjusted return on sales of 8% to
10% for 2022.
Mercedes-Benz Mobility
For Mercedes-Benz Mobility the adjusted return on equity
corridor is expected to be 16% to 18%, which is significantly lower
than in 2021. This is due to an expected normalisation of cost of
credit risks and headwinds in the form of slightly higher market
interest rates in 2022. Furthermore, last year’s results benefited
from a positive one-time effect from a legal case provision.
Mercedes-Benz Group
Mercedes-Benz Group anticipates revenue in 2022 slightly above
the previous year’s figure from continued operations, which is
without the Daimler Trucks & Buses business. Based on the
expectation of a slight increase in revenue in 2022, the company
anticipates that EBIT from continued operations will be at the
prior-year level.In 2022 the company sees Cash Flow Before Interest
and Taxes (CFBIT) Automotive and CFBIT Automotive adjusted
all-in-all at about the previous year’s level. This year the
company expects cash taxes to return to more normal levels and
therefore to increase significantly versus 2021 levels, due to
lower tax loss carry forwards. The company therefore expects the
free cash flow from the Industrial Business in 2022 to be slightly
below the 2021 level of €7.9 billion from continued operations.
CO2 emissions of the new car fleet in Europe
Internal figures show that in 2021 the new car fleet’s average
CO2 emissions in Europe (European Union, Norway and Iceland) fell
to 115 grams per kilometre, below the preliminary regulatory target
of 125 grams. Mercedes-Benz expects to fulfil European emissions
targets also in 2022 as the company continues to roll out its fleet
of electric vehicles.
Link to press release “sales figures 2021” (January 7, 2022):
group-media.mercedes-benz.com/annual sales
Link to capital market presentation on full year 2021:
group.mercedes-benz.com/results-2021
Link to the replay of the event:
media.mercedes-benz.com/results-2021
Pictures of the Annual Results Conference 2021 will be available
here: group-media.mercedes-benz.com
The figures in this document are preliminary and have not yet
been approved by the Supervisory Board nor audited by the external
auditor.
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 or raw materials; disruption of production
due to shortages of materials, 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 the current Annual Report or in the
current Interim 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 premium and luxury cars and 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, where market conditions allow. Shifting from
electric-first to electric-only, the world’s pre-eminent luxury car
company is accelerating toward an emissions-free 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, 20 Oct. 2021),
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 2021, the Group had a workforce of around 172,000 and sold 2.3
million vehicles. Group revenues amounted to €168.0 billion and
Group EBIT to €29.1 billion.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220223006394/en/
Tobias Just, +49 711 17 41341, tobias.just@mercedes-benz.com
Edward Taylor, +49 176 30 94 1776, edward.taylor@mercedes-benz.com
Han Tjan, +1 212 909-9063, han.tjan@daimler.com Andrea Berg, +1 917
667-2391, andrea.a.berg@daimler.com
Further information on Mercedes-Benz Group AG is available at:
group-media.mercedes-benz.com and
group.mercedes-benz.com
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