Preisträger 2021 – Large Caps: CFO Harald Wilhelm, Mercedes-Benz Group

The truck business and the passenger car business are ultimately two different businesses. We deliberately chose the structure to be independent from the valuation on day one. I myself and all colleagues on the floor in Frankfurt were really nervous. When you get to ring the bell and wait for the first price, it's a very exciting thing.

Very good, we worked towards it. It sounds technical, but I and all colleagues who were on the floor were really nervous. When you ring the bell and wait for the first price, it's exciting.

At first there was a wide range of estimates, then a narrower band quickly came, and we had a very pleasing start. 28 euros, 23 billion market capitalization. We were relieved. It was a great moment. The days after developed well, above 30 euros by February 24. That shows the potential. Now it has suffered under geopolitical conditions. We deliberately chose the spin structure to be independent from day-one valuation, so the upside can be realized over time.

Personally, I am very depressed that this can happen. But politicians must react. Our market assessment has not fundamentally changed. We see strong momentum in Asia, China, USA, and Europe, though we are cautious on consumer confidence in Europe. Demand remains strong. We must watch inflation and energy supply, but no weakening yet. Supply chains are affected, especially wiring harnesses from Ukraine. We reacted quickly, and the impact is limited. Our teams are used to volatility.

First, truck and car are different businesses with different customer structures and low synergies. Second, both need maximum speed and freedom in capital allocation for the CO2-neutral transformation. Independent companies with direct capital market access are better. Third, shareholders prefer to choose between investing in a truck or luxury car company. This creates value. On day one, shareholders gained about 1 euro. The share rose 7-8% on announcement and more later. There is still potential. The management has a clear plan. It allows Mercedes-Benz to deliver a razor-sharp strategy for luxury and premium vehicles.

It started in February 2021 with the announcement. We determined that only a majority spin was an option for clear governance. After announcement, we rolled it out broadly. Massive work across all functions. We put the A-team on it. Milestones: July approval from Board and Supervisory Board, October General Meeting with 99.89% approval, then final sprint to December 10. The timeline was ten months, and we did not want to slip into 2022. The pace was like a clockwork. The project team worked 24/7, making quick decisions. We managed to stay as one team, avoiding the usual split into two camps.

The topic of a spin had been discussed for a while. What surprised the market was the stringency of a majority spin of 65%. That was seen as consistent and appreciated. We had full backing from the capital market, with 99.1% approval at the General Meeting. External factors like February 24 could have been a challenge, but the spin is more resistant to market conditions than an IPO. I'm happy we did it in December. The company's performance and market conditions were favorable.

Team, tight timeline, high pacing, ensuring the team stays united, quick decisions on technical questions. On the capital market side, clear strategy articulation from Daimler Truck at capital market days, and a solid capital endowment of six billion net cash with investment-grade rating. Everything fit: strategy, performance targets, solid endowment, management.

We are very happy to be Mercedes-Benz. Our strategy is to be the leading luxury and premium brand, focusing on electric vehicles and software. We have made significant progress. The spin-off allows the team to focus entirely on Mercedes-Benz and its future.

We went in with respect. It was a bold step to split a 100-year-old company. We managed through proactive communication. After the announcement, I became uneasy when we saw all the entanglements. But the network handled it fantastically. The General Meeting with 99.89% was a great moment that released pressure. We celebrated, then continued to prepare for December 10.

Sustainability is the transformation theme. We committed to CO2 neutrality by 2039, sharpened with the strategy update and the decision to go all-electric. We are convinced that only sustainable business is successful long-term. This decision, alongside the truck spin-off, is the most important capital allocation decision in the company's history. It is bold but gives clear direction. We are working at full speed on electric luxury cars. The decision is well received by the capital market, though not fully internalized yet. Fantastic products are coming.