Mercedes-Benz Annual Results 2024: Speech by Harald Wilhelm – All Details

Yes hello everybody, good morning, a warm welcome from me as well. I'm looking forward to going into our figures in more detail. Let's start with the cars. Revenue matches sales given the circumstances Ola already pointed out. 8.7 billion in cars, a bit more in cash flow. Regarding Q4, we finished at 8.1%, better than the 6% we forecast at the end of Q3. Better volume, strong fourth quarter, more cost efficiency. That is very encouraging when we look at 2025.

Back to the full year and the bridge. Net prices negative, lower volume, a more positive mix in 2024. We increased lifecycle measures. We made residual value adjustments for used cars. The industrial development is very encouraging for 2025. Underlying improvements from manufacturing, material cost efficiency, and raw materials are much higher than 1 billion. We see efficiency gains in our engineering organization. In the other bucket, we had lower BBIC equity results and support for dealers in China. We made a value adjustment of 350 million at ACC due to industrial ramp-ups.

That translates into 9 billion in cash. Working capital was well managed; inventory and trade payables down. Net investments before PPA. We see reversals at equity and non-cash elements like amortization, impairments, and dealer provisions not yet cashed out. The average sales price increased from 2019 to 2024. Workforce reduced by 11,000 office employees, leading to 19% lower fixed costs net of inflation. We have a strong focus on R&D and discipline in capex. Free cash flow was 9.2 billion, net liquidity 31 billion. 10 billion paid to shareholders through dividends and buybacks.

For vans, we suffered less in revenue due to mix and pricing discipline. The V-Class and US portfolio contributed. EBIT margin was 14.6%. ASP increased over 40%, active workforce down 10%, fixed costs down 19%. New business slightly down due to competition in China and exchange rate effects. Interest margins and residual values affect the fleet. Credit risk costs from the US stabilized in the second half. We invested in charging infrastructure and achieved 1% return on sales for mobility.

At the group level, EBIT was 13.6 billion, tax rate 26%, EPS 2.10 euros. Free cash flow 9.2 billion. Net liquidity stable at 31 billion. The capital allocation framework worked well. Now for the 2025 outlook. If EU export tariffs to the US rise to 10%, the gross impact on our car margin could be up to 100 basis points before mitigating measures. Chinese tariffs on US-made vehicles with engines over 2.5 liters have limited impact because we localize production.

We expect group sales slightly lower in 2025 compared to 2024. Car margins in the range of 6–8% adjusted. The product mix will be positive, but lower volume and pricing discipline keep margins stable. CO2 compliance costs in Europe will be a single-digit billion impact, less than feared. We will drive performance in material, fixed, and production costs to mitigate headwinds. For vans, guidance is 10–12% return on sales, with CO2 a larger headwind than in cars. Capex will increase due to new product launches and investments in the van EA architecture and Eastern European plants. Cash conversion rate for vans is expected at 0.9–1.1. For mobility, return on sales 8–9%. Group revenue and EBIT slightly below previous year; cash flow significantly below due to higher capex and lower conversion.

With that, I hand back to Christina and Wilhelm. Thank you very much.