Mercedes 2024: Leaner, faster, more powerful – biggest product offensive | Harald Wilhelm speaks

Thank you, Markus. That's incredible. You know what this means for the numbers. Before we discuss costs, I want to show you this chart with our assumptions for the future. We are cautious on macro and market developments, and that is reflected in our outlook. In Europe we expect solid dynamics, the US more cautious, China uncertain due to tariffs. Let me go into the product portfolio impact on sales mix. In 2024 we had just under 2 million units. For 2025 we are more cautious, but the product firepower will drive new dynamics in 2027. I firmly believe that. For the top-end mix, we talk about a share of 14-15%, with the S‑Class upgrade and AMG – both ICE and BEV. The EV share should exceed 6% with the CLA/MMA and later the electric GLC and C‑Class. We expect EV share to exceed 30% in 2027, depending on market conditions and infrastructure. For the top line: sales declined from 2019 to 2024, but we saw a CAGR of over 2.5% despite challenges, with solid ASP due to pricing discipline. Revenue in 2025/26 will track sales, but 2027 is key. On margins: top-end contributed over 40% of contribution margin in 2024 with roughly 280,000 units – we can reach 300,000. Core segment (over 1 million units, E‑Class success) contributes about 40%. Entry segment around 500,000 with CLA/MMA, good quality. For EVs, we need the right products and cost control. We reduce EV costs by more than the previous generation to close the margin gap. ICE will remain longer, which is good for margin security. 70% of investments go to top-end and core. Next Level Performance program: capacity adjustment from 2.5 million units to 2-2.5 million globally, reducing Germany by 100,000, shifting to Kecskemét, ending GLB in Mexico, options for China and Argentina. No plant closures in Germany – we cap capacity at 300,000 per plant, reducing headcount via attrition and temporary workers. Production costs down 10% from 2022 to 2024, targeting another 10% by 2027, aiming to double by decade end. Low-cost country share in the EU will rise from 15% to 30% by 2027. Other levers: demography, shift times, AI, digital twins, logistics, energy costs via renewables. For geopolitical risks: 'local for local' increased from 60% to 70% by 2027, with localization in China and the US. In the US, Tuscaloosa produces 250-300,000 SUVs, two-thirds exported – the trade balance is balanced. We will export top-end SUVs from the US to China and core SUVs to Europe. Europe is home for top-end excellence. In China, BBAC serves 80% locally, no exports from China. Material cost reduction target 8% by 2027 via the Beat program, battery cost reduction 30% per kWh with MMA, and better supplier contracts. Non-production materials (€20 billion) also have potential. Investment discipline: 2025 investments up slightly, peak in 2026, then 2027 about 10% below 2024, 20% below 2019. MMA, electric GLC, C‑Class, AMG EA investments mostly complete by 2027. Future S-Class, E-Class, SUVs with modularization. Fixed costs: we aimed to reduce 20% from 2019 to 2025, achieved 19% by 2024 despite over 20% inflation in Europe and over 30% globally. Next target: another 10% reduction via headcount reduction, outsourcing, streamlining functions, integrating mobility and car sales, selling dealerships in Germany, management levels, standardization, digitalization, generative AI. China: we have over 50% share in the top‑end market above 1.5 million RMB, number one in AMG, S‑Class sells 2-3 times competitors, highest MSRP and lowest discounts. We must defend the top‑end position and protect the profit pool. BBAC: despite lower contributions in 2024, ROS 15% – very healthy. We need to restructure to maintain double-digit margins: cost reduction programs, material over 10%, variable and fixed costs 20% each. Capacity adjustments, dealer network efficiency, GLA localization. For the overall financial framework: we see a clear roadmap back to double-digit margins. The main lever is Next Level Performance. For cash generation: from 2019 to 2024 we generated over €30 billion industrial cash, distributed €30 billion in dividends and buybacks, plus the Daimler Truck spin-off, total shareholder return 100%. If you invested €100 in 2019, you would have €200 now. Net liquidity rose from €11 billion to €31 billion. Going forward, we propose a dividend of €4.30, payout ratio 41%, and a new buyback program of up to €5 billion over two years from May 2025, subject to AGM approval, funded by 2025/26 cash generation and monetization of the Daimler Truck stake. In summary, Mercedes-Benz is a perfect blend of luxury and cutting-edge technology, the most valuable brand with iconic products, excellence and innovation, and a disciplined cost and investment approach that supports the roadmap to double-digit margins. Thank you.