What is the strategy update about?

The strategy update is focused on Mercedes-Benz's Vans division.

How has the Vans division performed financially?

In 2022, the Vans division reported a significant financial contribution, with a stunning 66% increase in EBIT.

Why does Mercedes-Benz keep Vans and Cars under the same roof?

Keeping Vans and Cars together allows for technology and innovation sharing, exploits synergies, and enhances business resilience.

What customer segments does Mercedes-Benz Vans serve?

Mercedes-Benz Vans serves two main segments: luxury private Vans and premium commercial Vans.

Van EA is a new purpose-built electric architecture that sets the course for the future of Mercedes-Benz's Vans.

What are the key growth regions for Mercedes-Benz Vans?

Key growth regions include Europe, the United States, and China.

How is Mercedes-Benz addressing the shift to electric vehicles?

They aim for up to a 20% BEV share by 2026 and more than 50% by 2030, with efforts focused on reducing complexity and costs.

What role does the V-Class play in Mercedes-Benz's strategy?

The V-Class is positioned as a luxury product, and its new electric versions aim to capture more of the luxury market.

What is the significance of the new plant in Poland?

The new plant in Poland will focus on producing electric vans, setting standards for productivity and sustainability.

How does Van EA benefit the overall Vans production?

Van EA increases efficiency and performance, consolidates portfolio complexity, and enhances sustainability and profitability.

Mercedes-Benz Vans Strategy Update – Full Press Conference

01:52:14

https://www.youtube.com/watch?v=iJgJfWL-Cj4

Summary

TLDRMercedes-Benz recently held a comprehensive strategy update targeting their Vans division, highlighting its financial success and strategic role in the company. Over the past 18 months, Mercedes-Benz has positioned their Vans division as an independent business unit with complete decision-making autonomy, while still benefiting from technology and synergies with the passenger car division. The presentation outlined the differences in customer bases, ranging from luxury private and commercial Vans. Despite serving different needs, both areas display a consistent luxury image aligned with Mercedes-Benz's core identity. The Vans division displayed strong financial performance in 2022, showing significant growth and revealing a strategic roadmap aimed at leveraging the division's scale for further profitability. Key initiatives include launching the all-new Electric Architecture (Van EA) starting from 2026, which will streamline production and improve synergy across parts and resources. This aligns with Mercedes-Benz’s ambition for carbon-neutral production and a shift towards fully electric fleets by the end of the decade, targeting an up to 20% BEV share by 2026 and over 50% by 2030. Growth strategies focus on profitable expansions in key markets such as Europe, the United States, and China, aiming to capitalize on their trusted brand and technological advancements. The update emphasized cost-cutting initiatives and optimizing the production footprint, including a new Electric Vehicle-focused plant in Poland. Overall, the event underlined Mercedes-Benz's commitment to maintaining a robust and competitive Vans business through innovation, digitalization, and a strong strategic focus on luxury and premium markets.

Takeaways

🚐 Mercedes-Benz focuses on luxury and premium Vans.
⚡ Van EA is the new electric architecture for future Vans.
📈 Vans division shows significant financial growth.
🌍 Key markets include Europe, the U.S., and China.
🏭 New EV-focused plant in Poland.
♻️ Commitment to carbon-neutral ambitions by 2039.
🛠️ Vans benefit from shared technology with Mercedes-Benz cars.
👥 Serves both private luxury and commercial markets.
📉 Efforts to reduce complexity and operational costs.
🎯 Strategic focus on profitable market segments.

Timeline

00:00:00 - 00:05:00
The video begins with questions about Mercedes-Benz Vans' relevance in the luxury sector and why the vans are under the same umbrella as Mercedes-Benz cars. It introduces the Mercedes-Benz strategy update focusing on Vans, emphasizing their independence but integration within the company, leveraging synergies with cars, serving distinct customer segments, and contributing significantly financially.
00:05:00 - 00:10:00
The presenter highlights the extensive history of Mercedes-Benz Vans, dating back to 1896, and its global reach. The emphasis is on technological excellence, reliability, and the path towards all-electric vehicles. Van EA, a new dedicated electric architecture, is introduced as the foundation for future mobility.
00:10:00 - 00:15:00
Matthias Geisen highlights Vans' important role in daily life and the transport sector's history. The Vans portfolio, led by the Sprinter, is emphasized for innovation, premium positioning, and profitability. The van segment is explained to be attractive due to stable, profitable market characteristics and customer loyalty.
00:15:00 - 00:20:00
Mercedes-Benz Vans' leadership in the European large van market is discussed, highlighting their strong pricing power and balanced market coverage. Significant synergies with Mercedes-Benz cars are noted, ensuring strong profitability despite past challenges. There is a clear focus on leading the market to an all-electric future while retaining profitability.
00:20:00 - 00:25:00
Matthias Geisen outlines the strategy for future offerings, focusing on high-profit segments in both private and commercial vehicles. There's a commitment to innovation, cost, and quality improvements in the V-Class and new electric models, targeting niche but profitable sectors like luxury camping.
00:25:00 - 00:30:00
The commitment to sustainability is stressed with targets for carbon neutrality by 2039, and significant increases in electric vehicle share by 2030. To manage the transition, complexity in existing portfolios is being reduced while ramping up new electric offerings. A clear roadmap for an all-electric future is provided, tied closely with profitability projections.
00:30:00 - 00:35:00
Mario Puja discusses financial strategies to maintain strong profitability amid the transition to electric vehicles, focusing on cost control, synergy exploitation, and a leaner production footprint. Fixed cost reductions and flexible sourcing strategies are key pillars.
00:35:00 - 00:40:00
Francesco Chancha describes production optimizations including a new electric van plant in Poland designed to maximize efficiency and sustainability. Strategies include reducing complexity, improving core production areas, and achieving a more streamlined cost structure across global production.
00:40:00 - 00:45:00
Mercedes-Benz Vans has set a focus on attractive van segments poised for growth, underlined by strong brand equity and premium product positioning. Strategic pillars include customer loyalty enhancements, leveraging direct sales, and digital extras to expand recurring revenue.
00:45:00 - 00:50:00
Advanced digital offerings are being developed to integrate vehicles into customer workflows, improving efficiency and functionality with services like predictive maintenance. There's a clear focus on maintaining multi-brand software flexibility for fleet operators.
00:50:00 - 00:55:00
The rollout of a comprehensive charging network tailored for Vans customers is underway, along with enhanced digital service capabilities. Customer proximity and service excellence are emphasized, aiming for high service contract uptake and streamlined ordering processes.
00:55:00 - 01:00:00
Mercedes-Benz aims to lead in digital experiences and electric drive with its future vehicles, integrating advanced capabilities into the van architecture. This includes continued innovation in digital solutions and expansive service and software offerings.
01:00:00 - 01:05:00
The presentation outlines a comprehensive cost management strategy, essential for supporting investments in electric vehicle development and maintaining competitive profitability levels. Efforts are focused on reducing complexity and enhancing manufacturing processes.
01:05:00 - 01:10:00
Timo Kaiser's questions prompted emphasis on strategic synergies with Mercedes-Benz Cars and historical strong margins across decades, despite select challenging years. Investment decisions focus on maintaining strong profitability and strategic fit within Mercedes-Benz.
01:10:00 - 01:15:00
The Q&A session addresses key strategic distinctions in the van market, detailing focus areas like selective industry presence and long-term EV transition plans. Highlights include targeting profitable segments and maintaining robust financial health amid market transitions.
01:15:00 - 01:20:00
Questions on maintaining profit amid volume swings emphasize the strength of Mercedes-Benz Vans' focused strategy on profitable growth over volume. Emphasis is placed on maximizing current production capability rather than expanding volume significantly.
01:20:00 - 01:25:00
The presentation elaborates on the transition to an all-electric future, detailing the role of the Van EA platform and the ambitious plans for reducing CO2 emissions, enhancing digital and service capabilities, and aligning production with sustainability goals.
01:25:00 - 01:30:00
The final summary reiterates the strategic aims to fuse luxury and utility, leveraging synergies, and setting forth a clear electric vehicle transition with an eye on strong market positioning and customer-centric innovation. This underpins Mercedes-Benz Vans' future growth strategy.
01:30:00 - 01:35:00
The concluding remarks of the presentation reiterate the strong market position Mercedes-Benz Vans holds and its strategic importance within the group. Customer satisfaction, market prestige, and technological advancements are highlighted as pillars of continued success.
01:35:00 - 01:40:00
Mercedes-Benz Vans' investor-focused Q&A session reiterates strategic clarity and confidence in maintaining a robust margin despite increased R&D and CAPEX for electric vehicle transitions. The focus remains on high-value growth with cost discipline.
01:40:00 - 01:45:00
Discussion on potential future segments and geographical expansion opportunities concludes the session, with emphasis placed on maintaining premium positioning and exploring niche markets. The vehicles are positioned as essential solutions across various industries.
01:45:00 - 01:52:14
The session concludes by reflecting on the comprehensive strategic plan, emphasizing the integrated role Mercedes-Benz Vans plays within Mercedes-Benz, redoubling focus on high-margin areas, digital transformation, and leading the charge into an electric future.

Mind Map

Video Q&A

What is the strategy update about?
The strategy update is focused on Mercedes-Benz's Vans division.
How has the Vans division performed financially?
In 2022, the Vans division reported a significant financial contribution, with a stunning 66% increase in EBIT.
Why does Mercedes-Benz keep Vans and Cars under the same roof?
Keeping Vans and Cars together allows for technology and innovation sharing, exploits synergies, and enhances business resilience.
What customer segments does Mercedes-Benz Vans serve?
Mercedes-Benz Vans serves two main segments: luxury private Vans and premium commercial Vans.
What is Van EA?
Van EA is a new purpose-built electric architecture that sets the course for the future of Mercedes-Benz's Vans.
What are the key growth regions for Mercedes-Benz Vans?
Key growth regions include Europe, the United States, and China.
How is Mercedes-Benz addressing the shift to electric vehicles?
They aim for up to a 20% BEV share by 2026 and more than 50% by 2030, with efforts focused on reducing complexity and costs.
What role does the V-Class play in Mercedes-Benz's strategy?
The V-Class is positioned as a luxury product, and its new electric versions aim to capture more of the luxury market.
What is the significance of the new plant in Poland?
The new plant in Poland will focus on producing electric vans, setting standards for productivity and sustainability.
How does Van EA benefit the overall Vans production?
Van EA increases efficiency and performance, consolidates portfolio complexity, and enhances sustainability and profitability.

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Subtitles

Auto Scroll:

00:00:03
foreign
00:00:08
S is doing their next strategy update
00:00:11
this time about their bands business
00:00:15
isn't the van more a leftover of the
00:00:18
truck spin-off
00:00:20
I mean
00:00:26
Vans within the Mercedes-Benz group
00:00:30
and how do they fit into the luxury
00:00:31
approach from Mercedes-Benz cars anyway
00:00:34
then again
00:00:36
looking at the Vans q1 margins pretty
00:00:39
luxurious
00:00:41
but honestly does it really makes sense
00:00:43
to have Mercedes-Benz cars and vans
00:00:45
under the same roof
00:00:48
[Music]
00:00:52
hi everybody and welcome to the first
00:00:54
ever Mercedes-Benz strategy update
00:00:57
that's fully dedicated to Mercedes-Benz
00:00:59
vans
00:01:01
for more than 18 months now
00:01:02
Mercedes-Benz has been a pure play cars
00:01:05
and vans company which means Vans is an
00:01:08
independent yet fully integrated
00:01:11
business unit within Mercedes-Benz
00:01:14
they have the freedom to make all the
00:01:16
decisions necessary to cater to the
00:01:18
individual needs of their band's
00:01:21
customers
00:01:22
at the same time they have full access
00:01:24
to and it benefits from technology and
00:01:27
Innovation sharing with our car's
00:01:29
business
00:01:30
this includes exploiting synergies
00:01:33
between the two for instance by using
00:01:35
common parts and harnessing the
00:01:37
purchasing power of the Mercedes-Benz
00:01:39
group
00:01:40
unlike cars the van's business serves
00:01:43
two distinctly separate sets of
00:01:45
customers with different demands luxury
00:01:48
private Vans and premium commercial vans
00:01:52
our Advanced division is perfectly
00:01:55
positioned to out deliver to both
00:01:58
on top there's a very rational business
00:02:00
side to it for us too
00:02:03
today the Vans already make a
00:02:06
significant financial contribution to
00:02:08
our overall business
00:02:10
in 2022 the van division reported a
00:02:13
solid eight percent growth in sales and
00:02:15
a stunning 66 percent increase in ebit
00:02:17
just to mention two highlights and q1
00:02:20
clearly speaks for itself
00:02:22
these numbers are one part of the reason
00:02:25
why I like to call Vans are Pearl
00:02:28
I am convinced that there is so much
00:02:31
additional room for growth in the field
00:02:33
and today's event is designed to show
00:02:35
you why and how
00:02:37
first of all our aim at Mercedes-Benz is
00:02:40
to build the world's most desirable
00:02:42
Vehicles that's true for cars and vans
00:02:45
alike
00:02:46
and desire also is our shared strategic
00:02:49
Baseline
00:02:51
let's look at luxury private Vans first
00:02:55
they drive just as easily as a passenger
00:02:58
car and offer that desired extra space
00:03:01
that so many of our customers appreciate
00:03:03
for their families Hobbies travel and
00:03:06
everything in between and there are
00:03:09
fully electric versions too
00:03:11
now what about their Light commercial
00:03:13
vehicles
00:03:14
this part of our business is all about
00:03:17
fuel efficiency and quality to get the
00:03:20
job done in the most economical and most
00:03:23
convenient way possible
00:03:25
a capable and durable work van is yet
00:03:28
another high-end tool for professionals
00:03:31
which of course has to come at the very
00:03:34
competitive total cost of ownership here
00:03:37
again are commercial Vans fully benefit
00:03:40
from The Innovation and scale of the
00:03:42
Mercedes-Benz brand
00:03:44
and let's not forget the bigger picture
00:03:46
the world runs on our vans
00:03:49
there is an almost infinite number of
00:03:52
use cases and applications
00:03:54
whether you're waiting for your online
00:03:56
shopping to arrive for the ambulance to
00:03:59
come to your Aid or for a maintenance
00:04:02
worker to fix something around the house
00:04:04
our vans are system relevant products
00:04:08
and whether you're excited to head out
00:04:10
to your next camping Adventure or be
00:04:13
shuttled in style to your nice hotel our
00:04:17
vans are at your service still every now
00:04:20
and then I get the question hola does it
00:04:22
really make sense to keep the cars and
00:04:24
the Vans business together under one
00:04:26
Mercedes-Benz roof my answer is clear
00:04:29
yes it does first Vance compliments our
00:04:33
lineup of the world's most desirable
00:04:34
vehicles
00:04:36
thanks to different product cycles and
00:04:38
Market mechanisms it makes our business
00:04:40
more resilient second we're able to take
00:04:43
advantage of lots of synergies between
00:04:46
cars and vans as well as between private
00:04:49
and Commercial Vans and third Vance
00:04:52
makes a significant financial
00:04:54
contribution to our company's business
00:04:57
I'm sure you'll find many reasons to
00:04:59
agree during the course of this event
00:05:02
thank you very much
00:05:03
I will see you later for the Q a session
00:05:05
and with that please allow me to hand it
00:05:08
over to Matthias geisen head of
00:05:10
Mercedes-Benz bands
00:05:18
[Music]
00:05:21
of transportation for people and goods
00:05:25
supporters of our customers since 1896.
00:05:29
[Music]
00:05:31
it's our people who make the difference
00:05:33
a lean and dedicated team from 87
00:05:36
countries
00:05:38
proud to engineer and build our bands at
00:05:41
five own production sites
00:05:44
in 2022 we delivered over 400 000 bands
00:05:49
and Evans in more than 150 countries
00:05:53
we are ready to serve in sales and
00:05:56
service locations worldwide
00:05:59
[Music]
00:06:04
it's about more than Vehicles it's what
00:06:06
moves our customers through their lives
00:06:10
from people to goods from work to play
00:06:19
we offer exceptional technology and
00:06:22
outstanding reliability across markets
00:06:25
and industries the perfect solution for
00:06:28
every need
00:06:31
on our way to all electric and
00:06:34
sustainable Mobility
00:06:38
whether private or commercial luxury or
00:06:41
premium
00:06:43
we build tailor-made Solutions with our
00:06:46
strong Partners In hardware and software
00:06:50
we move forward with giant energy
00:06:54
exactly
00:06:55
[Music]
00:06:57
on the road ahead van EA our new
00:07:01
purpose-built electric architecture that
00:07:03
sets the course for the future of
00:07:06
Mobility
00:07:06
[Music]
00:07:08
This Is Us
00:07:11
Mercedes-Benz spans
00:07:14
[Music]
00:07:17
welcome ladies and gentlemen to our
00:07:19
strategy update events
00:07:21
as all I mentioned in this introduction
00:07:23
for many people our products are part of
00:07:26
their day-to-day lives at home at work
00:07:29
and Beyond
00:07:31
Mercedes-Benz venz makes an important
00:07:33
impact on so many aspects of society and
00:07:36
life
00:07:37
we're both the founder and innovator of
00:07:40
the Light commercial vehicle segment the
00:07:43
segment that British cars and trucks and
00:07:46
which originated with the first delivery
00:07:48
vehicle back in 1896.
00:07:51
and thanks to vet history our record of
00:07:54
outstanding products and our brand we
00:07:57
have a truly unique place in the lcv
00:08:00
business
00:08:01
that's what I want to emphasize most
00:08:03
today our unmatched high-end position
00:08:06
with the industry's best mix and best
00:08:09
pricing by far
00:08:11
to give you a better idea of what that
00:08:13
means let's have a short look at our
00:08:16
portfolio today
00:08:17
some 30 years ago we created the
00:08:20
Sprinter segment today our flagship
00:08:23
it is our Leading Light commercial
00:08:25
vehicle with many features and
00:08:27
functionalities Incorporated from
00:08:29
Mercedes-Benz Passenger cars
00:08:32
the Sprinter is by far the most valued
00:08:35
vehicle in the class favored by
00:08:37
commercial buyers drivers and of course
00:08:39
on the used vehicle Market as well
00:08:42
it defines the segment
00:08:44
the Sprinter contributes around 50
00:08:46
percent of our sales share the mid-sized
00:08:49
veto approximately 30 percent and the
00:08:52
private v-class around 15 percent
00:08:55
we have continued to set industry
00:08:57
standards since the launch of the
00:08:59
Sprinter in the early 90s for example by
00:09:02
introducing Advanced safety features and
00:09:05
connectivity into the lcv segment
00:09:09
today we are the world's leading premium
00:09:12
light Commercial Vehicle Manufacturer
00:09:14
having delivered over 400 000 Vans and
00:09:17
events worldwide in 2022.
00:09:21
looking at the lcv segment in total we
00:09:23
operate in a highly profitable and
00:09:25
attractive industry
00:09:27
many of you joining us today are
00:09:29
industry experts but perhaps the
00:09:31
exceptional overall profitability of the
00:09:34
Vans industry is not common knowledge
00:09:36
yet
00:09:37
for a number of reasons the lcv segment
00:09:39
is one of the most attractive segments
00:09:42
in the broader automotive industry let
00:09:44
me explain why markets remain strong and
00:09:47
are growing and the competitive
00:09:49
environment is stable and concentrated
00:09:52
this stability is supported by very
00:09:55
knowledgeable and loyal commercial
00:09:56
customers
00:09:58
due to long life cycles and a cost
00:10:00
driven approach with focus on reuse the
00:10:03
industry is less Capital intense than
00:10:06
other Automotive Industries
00:10:08
so historically the Light commercial
00:10:10
Vans have been very profitable for our
00:10:13
industry
00:10:16
but now let's look at Mercedes-Benz
00:10:18
Van's unique position within this
00:10:20
industry
00:10:21
we have an exceptional top-end product
00:10:23
identity being the market leader in the
00:10:26
large event segment in Europe
00:10:28
and looking at the previous segments of
00:10:30
all Light commercial vehicles we're in a
00:10:33
clear leadership position
00:10:36
this is thanks to our attractive product
00:10:38
and service portfolio our strong mix and
00:10:41
residuals as well as a very favorable
00:10:44
Channel structure
00:10:46
we ensure highest pricing power with
00:10:48
significant premium
00:10:50
We additionally benefit from a balanced
00:10:53
Market coverage with Europe as our core
00:10:56
Market followed by the United States and
00:10:58
China on third position
00:11:01
but most important our customers highly
00:11:05
value our products and services
00:11:06
resulting in an industry-leading 74
00:11:10
repurchase rate for the Mercedes-Benz
00:11:13
Sprinter in Europe
00:11:14
and let's not forget one crucial aspect
00:11:17
we have a strong partner in
00:11:19
Mercedes-Benz cars together we are able
00:11:22
to leverage significant synergies
00:11:25
a component commonality rate of up to 50
00:11:28
percent
00:11:29
economies of scale and sourcing
00:11:32
lean and align processes from
00:11:34
development to governance
00:11:36
technology sharing and improved time to
00:11:39
market for Innovations in crucial areas
00:11:42
like automated driving car software and
00:11:45
electric electronic architecture
00:11:48
all of these factors have played a role
00:11:50
in our strong double digit return on
00:11:53
sales results adjusted 11.2 percent in
00:11:56
2022.
00:11:59
however there are more opportunities
00:12:01
ahead for further growth
00:12:03
we will cover those topics
00:12:05
comprehensively throughout the
00:12:06
presentation today but let me emphasize
00:12:09
one important topic
00:12:11
with our strong position today it is our
00:12:14
clear ambition to lead the industry to
00:12:18
an all-electric future whilst
00:12:20
simultaneously keeping a clear focus on
00:12:22
the most profitable segments
00:12:25
but now let's talk about our way forward
00:12:28
we want to offer the world's most
00:12:31
desirable Vans and services today and in
00:12:34
the future
00:12:36
and most desirable for our demanding
00:12:38
customers and for us means focusing even
00:12:41
more on the premium segments with the
00:12:43
highest profitability
00:12:46
and of course that starts with our
00:12:48
products we want to offer the best
00:12:50
products in each segment
00:12:52
and we will continue to cater to the
00:12:55
needs of both private and Commercial
00:12:58
customers
00:12:59
let's start with our private customers
00:13:03
our v-class uniquely combines the
00:13:05
functionality and cost efficiency of a
00:13:07
van with the luxury appeal of a
00:13:10
Mercedes-Benz passenger car
00:13:12
this exceptional positioning translates
00:13:15
into a very attractive profitability
00:13:18
to build upon this strong Foundation we
00:13:20
will be presenting the new v-class later
00:13:22
this year
00:13:24
here you see for the first time a
00:13:27
glimpse at how we are planning to serve
00:13:29
our status oriented private customers
00:13:32
a totally revamped exterior and all new
00:13:35
interior featuring the latest
00:13:37
infotainment and assistance features
00:13:40
that's how we Define van luxury
00:13:45
now to our commercial customers
00:13:47
we will continue serving our commercial
00:13:50
customers with a high level of
00:13:53
dedication and highly specified premium
00:13:55
vehicles
00:13:57
currently we are seeing a lot of focused
00:13:59
discussions and new entrance Into The
00:14:02
Courier Express and parcel industry
00:14:04
for sure this will be the one to
00:14:07
Electrify first
00:14:08
but this is by far not the largest and
00:14:11
not the most profitable industry
00:14:13
let me be quite clear we want to
00:14:16
maintain our strong position in this
00:14:18
industry
00:14:19
but our customers range from lower
00:14:22
priced Industries through to premium RVs
00:14:25
meaning the camper business
00:14:27
what I want to emphasize there are other
00:14:30
highly attractive industries that offer
00:14:32
us great opportunities to focus on
00:14:35
and our strategy is to have a strong
00:14:38
footprint in the premium segments of all
00:14:40
Industries
00:14:41
more about this from Klaus Ray Google
00:14:43
our head of marketing and sales in a
00:14:46
couple of minutes
00:14:47
but now let's talk about our sustainable
00:14:49
future we're a vital part of the group's
00:14:52
sustainable business strategy
00:14:55
that means that we are fully committed
00:14:57
to our ESG activities within
00:14:59
Mercedes-Benz HV including our ambition
00:15:03
2039
00:15:05
a net carbon neutral Fleet of new
00:15:07
vehicles by the end of the next decade
00:15:11
our Target of up to 20 Bev share by 2026
00:15:15
and more than 50 percent by 2030 goes
00:15:19
hand in hand with a significant
00:15:21
reduction in CO2 emissions across the
00:15:24
entire life cycle in new vans
00:15:27
and by offering fully electric vans for
00:15:30
the transport of people and goods we are
00:15:32
also contributing to more livable cities
00:15:37
the transition towards electric only is
00:15:39
ambitious as we have to fulfill
00:15:41
different customer needs in parallel
00:15:43
as existing ice models will continue to
00:15:46
serve us well beyond the end of the
00:15:48
decade we have to keep them attractive
00:15:50
in parallel we have to ramp up electric
00:15:53
vents to handle this challenge
00:15:55
we are driving a substantial complexity
00:15:58
reduction of the existing ice portfolio
00:16:00
and the streamlined offering for the new
00:16:02
electric vents while still addressing
00:16:05
the customer use cases of the premium
00:16:08
segments
00:16:09
our head of finance and controlling will
00:16:12
share further details with you in the
00:16:14
further course of the event
00:16:18
our future is electric only and our
00:16:21
roadmap towards reaching that Target is
00:16:24
clearly defined
00:16:26
indeed we started early in 2010 we
00:16:30
introduced our first electric Cirrus
00:16:32
production van the Vito Isel
00:16:35
today our complete portfolio is
00:16:38
electrified leading to a market share of
00:16:40
over 20 percent in Europe in 2022 for
00:16:45
the electric large and mid-sized vans
00:16:48
and we are targeting strong growth in
00:16:50
the electric segment
00:16:52
to reach that ambitious goal we will
00:16:55
start introducing our all-new
00:16:57
purpose-built EV architecture van EA
00:17:00
2026.
00:17:03
Vernier is our newly developed
00:17:06
Innovative modular and scalable
00:17:08
architecture according to the electric
00:17:11
only strategy Vani a has been developed
00:17:14
from scratch as a Purpose battery
00:17:16
electric architecture fully utilizing
00:17:19
the advantages of the new technology
00:17:22
to keep complexity and costs under
00:17:24
control this architecture will be the
00:17:27
shared basis for all mid-size and large
00:17:30
events from private v-class up to
00:17:33
commercial Sprinter
00:17:35
to make it clear for us electrification
00:17:38
goes hand in hand with a massive
00:17:41
simplification
00:17:43
of course all of our product offerings
00:17:45
are accompanied by an attractive
00:17:47
portfolio of services and digital extras
00:17:50
Andreas sugan our head of development
00:17:52
will share further details with you
00:17:54
later on we are one of the most
00:17:57
profitable lcv businesses in the world
00:17:59
and it is very much Our intention to
00:18:02
remain at the highest levels
00:18:05
not just in 2022 which was a very good
00:18:08
year despite tough conditions if you
00:18:10
look at those numbers
00:18:12
in q1 we were able to increase all kpis
00:18:15
compared to the previous year resulting
00:18:17
in a return on sales of 15.6 percent
00:18:21
with the transition to Electric drive we
00:18:24
will continue to targeting profitable
00:18:26
growth
00:18:27
but while we have strong financial
00:18:28
results we cannot be complacent
00:18:31
particularly when we have clear
00:18:33
opportunities to improve on the cost
00:18:35
side
00:18:36
I would like to explain this
00:18:39
let me be candid with you I've talked
00:18:41
about Mercedes-Benz Vans having the best
00:18:43
mix and the best pricing in the industry
00:18:46
that's a very nice position to be in but
00:18:49
while we've been strong on product model
00:18:51
mix and pricing we have to admit that
00:18:54
we've been less strong on cost
00:18:55
but that is changing
00:18:57
with our leadership team we are going to
00:19:00
Target costs in an even more systematic
00:19:02
way using openness honesty and Industry
00:19:06
benchmarks as our reference point
00:19:09
especially in the areas of product and
00:19:11
Technology
00:19:12
manufacturing as well as fixed costs and
00:19:15
overheads
00:19:17
there are many opportunities and we are
00:19:19
well Advanced with our plans to pull
00:19:21
costs out of the business
00:19:23
this includes rethinking our production
00:19:26
footprint
00:19:27
the decision to locate our first pure
00:19:30
Electric Light commercial vehicle
00:19:32
Factory for the Nea in Poland clearly
00:19:35
demonstrates our stronger focus on costs
00:19:39
we have additionally identified other
00:19:41
levels to further improve our financial
00:19:43
performance
00:19:45
you will hear more on this from Mario
00:19:47
Puja and Francesco chancha our new head
00:19:50
of operations Francesco brings excellent
00:19:53
expertise in lean manufacturing from an
00:19:56
efficiency focused volume OEM
00:20:00
to be clear we have long haired the
00:20:02
industry's best mix and pricing we fully
00:20:06
intend to maintain those strength and
00:20:08
even expand upon them
00:20:10
but if we can combine these powerful
00:20:13
Revenue drivers with an intensified
00:20:15
focus on cost competitiveness then
00:20:18
things get really interesting
00:20:20
so let me sum it up we are uniquely
00:20:23
positioned in an attractive industry and
00:20:26
intensely focused on value creation
00:20:29
our success factors are an exceptional
00:20:32
portfolio angled towards the upper
00:20:34
segments
00:20:35
the very highest pricing power and brand
00:20:37
attractiveness and customer loyalty
00:20:40
a clear focus on the most profitable
00:20:42
markets as well as renewed very serious
00:20:46
focus on cost
00:20:47
and then a clear way forward with a
00:20:50
highly ambitious technology roadmap to
00:20:52
lead the industry to an all-electric
00:20:55
future
00:20:58
now how do we leverage our unique assets
00:21:01
we've implemented a new strategy based
00:21:04
on our four strategic pillars
00:21:06
we will Target Premium segments in terms
00:21:09
of regions channels products and
00:21:12
industries with high margins for example
00:21:15
we've strongly reduced the sales to less
00:21:17
profitable industry segments whilst
00:21:20
increasing our Focus for instance on the
00:21:22
campus segment we embrace our customers
00:21:25
we already have the most loyal customers
00:21:28
in the market today allowing us to grow
00:21:31
lifetime revenues across all Industries
00:21:33
in the future even further
00:21:36
we aim to lead in electric drive and the
00:21:39
digital experience with our all-new Vani
00:21:42
a and our mbos our Mercedes-Benz
00:21:45
operating system
00:21:46
and we will continue lowering our total
00:21:49
cost base and improving our industrial
00:21:52
footprint our strategy is underlined by
00:21:55
three guiding principles sustainability
00:21:58
digitalization and our highly motivated
00:22:01
team
00:22:03
I took over as head of Mercedes-Benz
00:22:05
Vans beginning of 2022.
00:22:08
I'm well aware of the considerable
00:22:10
strength of the business that are now
00:22:12
lead
00:22:13
but I also know our weaknesses
00:22:16
in the last month my team and I have
00:22:18
worked intensively to develop our
00:22:20
strategy and build a plan that will
00:22:22
better position us for the future
00:22:25
we are privileged to be part of
00:22:27
Mercedes-Benz a batch of honor to have
00:22:30
the three-pointed star on our vehicles
00:22:34
but with that privilege comes
00:22:35
responsibility and that includes
00:22:38
delivering a very strong level of
00:22:40
financial performance with margins that
00:22:43
are within close range of Mercedes-Benz
00:22:45
cars average
00:22:47
that is the goal that is the mission
00:22:49
we've already proven that it's a
00:22:51
credible objective with our recent
00:22:53
Financial results
00:22:55
with this clear strategy our high level
00:22:57
of Ambitions and our focus on execution
00:23:00
I'm also confident that we will continue
00:23:03
to demonstrate it going forward
00:23:07
I'm fortunate to have a great team at
00:23:09
Mercedes-Benz vans you will now meet a
00:23:12
number of these key leaders who will
00:23:13
present our strategy in more detail
00:23:17
our head of sales and marketing will
00:23:19
start
00:23:22
[Music]
00:23:30
thank you Matthias let us start with the
00:23:34
first pillar of our strategy Target
00:23:36
Premium segments and focus on profitable
00:23:38
growth
00:23:39
we Define our premium positioning by
00:23:42
unchallenged leadership in four areas
00:23:43
brand technology customer focus and
00:23:47
sustainability
00:23:49
Mercedes-Benz Vans has a strong brand
00:23:51
one that is built on trust and our
00:23:54
Superior product substance
00:23:56
this is the number one reason for
00:23:58
Undisputed pricing power in commercial
00:24:00
Industries
00:24:02
consequently translating into
00:24:03
significant double-digit transaction
00:24:06
price premium overall competitors
00:24:09
in some cases this transaction price Gap
00:24:12
is substantial
00:24:14
these industry-leading price Premier are
00:24:17
at the same time a camper Night by an
00:24:19
outstanding 50 Mercedes-Benz land share
00:24:22
in the German premium segments
00:24:25
based on this premium positioning
00:24:28
we derive four areas of attack to
00:24:31
further improve our profitability in the
00:24:33
future
00:24:34
we are aiming for further profitable
00:24:37
growth in our most important regions
00:24:40
today
00:24:41
Europe already comprises our strongest
00:24:44
Market with a 60 share of total sales
00:24:47
worldwide we want to strengthen our
00:24:49
position here
00:24:51
in the US we have doubled our market
00:24:53
share from eight percent to 16 since
00:24:57
2018 which ensures us a strong Market
00:25:00
position as well
00:25:01
in China our nine percent v-class market
00:25:04
share in the MPV Market segment secures
00:25:07
us a relevant stake in a segment which
00:25:10
is deemed for further growth in its
00:25:12
Upper price bands
00:25:13
our sales Channel mix splits into a 70
00:25:17
share in the highly profitable retail
00:25:19
and small Fleet business and a 30 share
00:25:22
in a larger Fleet business in Europe
00:25:25
This Channel mix strongly supports our
00:25:28
ambition to continue to grow profitably
00:25:32
we see significant potential for further
00:25:35
profitable growth in China and North
00:25:37
America in the US we aim to
00:25:40
substantially increase our sales by
00:25:42
2030. therefore we will be extending our
00:25:46
product portfolio by adding both Danny a
00:25:49
commercial Vans and for the first time a
00:25:52
Vani a private derivative to the U.S
00:25:54
lineup the purpose built all new
00:25:57
electric v-class will have an
00:25:59
unparalleled luxury positioning to cater
00:26:02
stronger than ever before to the
00:26:04
expectations of our sophisticated
00:26:06
customers in China and the US
00:26:09
as a multi-industry player in the B2B
00:26:12
business
00:26:13
we serve many different Industries and
00:26:16
are well positioned in their respective
00:26:18
upper end price bands together with our
00:26:22
upfitting partners we offer
00:26:24
well-equipped tailor-made vehicles that
00:26:27
provide our customers with Vans and
00:26:29
services best suited for their specific
00:26:32
commercial purposes
00:26:35
today
00:26:36
more than 75 percent of the commercial
00:26:39
large fans that we sell are upfitted
00:26:42
the majority of these vehicles are
00:26:44
already well equipped
00:26:46
and therefore represent profitable
00:26:48
specifications
00:26:50
in 2022 our professional expertise and
00:26:54
partner focus with Van outfitters was
00:26:57
ranked at the number one position
00:26:58
amongst all oems
00:27:01
this close cooperation with our van
00:27:03
solution Partners is also reflected by
00:27:05
the fact that all of them have already
00:27:08
signed the letter of intent declaring
00:27:10
their willingness to participate in our
00:27:13
sustainability ambition 2039.
00:27:17
the broad range of Industries we serve
00:27:19
makes our business resilient
00:27:21
which is a strong competitive advantage
00:27:25
today
00:27:26
we serve nine commercial Industries and
00:27:29
while each one has its own specific
00:27:31
requirements and demands they are all
00:27:34
important for keeping our world running
00:27:36
smoothly
00:27:38
all non-commercial Industries are
00:27:40
strategically important for
00:27:41
Mercedes-Benz events
00:27:42
for example service and craft is the
00:27:45
biggest industry in Germany and of
00:27:48
course also in our portfolio
00:27:49
camper business is the fastest growing
00:27:52
industry and the cap The Courier Express
00:27:55
and parcel and Logistics has the highest
00:27:58
request for all electric Drive
00:28:00
for example in the camper business
00:28:02
we have seen tremendous growth in recent
00:28:05
years due to the growing desire for
00:28:08
individual
00:28:09
and independent traveling however
00:28:12
there is still room to grow
00:28:14
that is why we want to expand our
00:28:16
portfolio of x-factory campervans with a
00:28:19
new model line of fully electric campers
00:28:22
based on Van EA
00:28:25
we aim to define the next industry
00:28:28
standard with our International camper
00:28:30
business partners all around the world
00:28:34
but we also see profitable growth
00:28:35
potential in other Industries such as in
00:28:38
the cap segment therefore
00:28:40
we plan to offer a van EA cap specific X
00:28:45
Factory derivative for the first time
00:28:47
ever the solution is being co-developed
00:28:50
with the expertise of our cap business
00:28:53
partners
00:28:55
coming to our second pillar
00:28:57
Embrace customers and grow lifetime
00:29:00
revenues the customer is at the core of
00:29:03
our business
00:29:05
and we have the most loyal customer base
00:29:08
in 2021 our Sprinter repurchase rate
00:29:12
equaled 74 in Europe our service
00:29:15
retention rate in the first four years
00:29:17
amounted to more than 70 percent in
00:29:20
Europe
00:29:21
but now let's have a look at the whole
00:29:24
customer journey in more detail
00:29:28
all of the following initiatives are
00:29:30
aiming at further improving the business
00:29:31
efficiency of our TCO conscious
00:29:34
customers
00:29:36
first of all we are in the process of
00:29:38
Shifting our business model towards a
00:29:40
direct sales model a model in which our
00:29:43
dealers will act as sales agents in the
00:29:46
future
00:29:47
this will enable us to manage discounts
00:29:50
and eliminate intro brand competition to
00:29:53
ensure Fair offers to our customers and
00:29:56
reduce sales costs at the very same time
00:29:59
with this we are targeting by 2026 more
00:30:03
than 20 in online sales more than 75
00:30:06
percent direct sales volume in Europe
00:30:09
and the go life of our direct sales
00:30:11
models in 20 markets globally
00:30:14
within the purchase phase
00:30:17
we offer a superb point of sales
00:30:19
experience with our trained and
00:30:22
certified retail team
00:30:24
qualified consultation also considering
00:30:27
the best upfitting solution to meet each
00:30:29
customer's individual requirements
00:30:31
and on top of that the consultation
00:30:34
includes services for our customers
00:30:36
transition to e-mobility and tailor-made
00:30:40
charging Solutions
00:30:41
we are aiming to boost our already
00:30:43
strong customer satisfaction rate of 4.5
00:30:46
Stars even further
00:30:48
coming to operations
00:30:51
I want to turn to a really crucial Topic
00:30:53
in the commercial vehicle segment
00:30:56
which is connectivity and digital extras
00:30:59
we are absolute Believers in the value
00:31:02
of data and the opportunity for software
00:31:05
to help commercial customers
00:31:07
at Mercedes-Benz Vans we have been
00:31:09
working on vehicle software and
00:31:12
digitalization for many years
00:31:14
we have numerous products already in use
00:31:17
building on this experience our digital
00:31:20
strategy follows a straightforward yet
00:31:23
comprehensive three-layer approach
00:31:26
and the first layer
00:31:28
we offer vehicle related functions
00:31:31
we are already at a quite Advanced stage
00:31:34
in 2022 in our core markets Europe the
00:31:38
US and China
00:31:39
70 percent of all new Vans were
00:31:42
connected to our Mercedes-Benz digital
00:31:45
ecosystem
00:31:47
our second layer consists of customer
00:31:49
specific digital extras provided by a
00:31:53
unique steering device that we developed
00:31:55
in-house our onboard logic unit and
00:31:58
absolute USP the solution enables our
00:32:01
customers to integrate our products into
00:32:03
their specific digital infrastructure
00:32:08
our third layer will extend our offering
00:32:10
with a selection of commodity services
00:32:12
and third-party applications integrated
00:32:15
into mbos in the future
00:32:18
so I would like to leave you with this
00:32:20
takeaway
00:32:21
Mercedes-Benz Vans is at the Forefront
00:32:24
of lcv focused software systems and
00:32:27
digital extras these will make our
00:32:30
products even more attractive
00:32:32
some we will be able to charge for
00:32:35
hence our Target we are aiming for a
00:32:38
relevant incremental ebit contribution
00:32:40
in the mid and long term future but I
00:32:43
also must sound a note of caution
00:32:46
while software is becoming increasingly
00:32:49
important to our customers most Fleet
00:32:51
operators run a multi-brand fleet
00:32:54
they do this for reasons of scale or
00:32:56
flexibility and function
00:32:59
large fleets are therefore highly
00:33:01
unlikely to want to use or be able to
00:33:03
use a single OEM software platform
00:33:07
we know our customers very well and it's
00:33:10
absolutely clear that while they value
00:33:12
software predictive maintenance and
00:33:14
route planning
00:33:16
what they want is the ability for a
00:33:19
vehicle not only to offer a proprietary
00:33:22
software platform but also to support
00:33:25
independent specialists
00:33:28
as well as customized software products
00:33:30
designed to operate across their whole
00:33:33
Fleet
00:33:34
so that fact anchors our strategy
00:33:37
while we have developed excellent
00:33:40
proprietary software Solutions and will
00:33:42
continue to improve them
00:33:44
our vehicles are also designed to
00:33:46
support other software products for our
00:33:49
customers
00:33:51
that is why in the future we will extend
00:33:54
our offering with our third layer
00:33:56
integrated into mbos including commodity
00:34:00
services and the possibility to
00:34:02
integrate android-based productivity
00:34:05
applications we believe this is most
00:34:08
likely where the industry will go
00:34:10
and while it will improve profitability
00:34:12
and efficiency for lcv operators it is
00:34:16
unlikely to drive a total Revolution
00:34:18
into the segment more about the
00:34:21
technical specifications in a minute for
00:34:22
Marie our head of electronic and
00:34:25
Electric Systems
00:34:27
furthermore we are supporting the EV
00:34:30
ramp up with tailor-made charging
00:34:32
Solutions
00:34:33
alongside the existing and growing
00:34:35
ionity Network our commercial customers
00:34:38
will also have full access to the
00:34:41
all-new Mercedes-Benz high power
00:34:43
charging Network that will consist of up
00:34:46
to 10 000 high-power Chargers worldwide
00:34:49
by the end of the decade which will
00:34:51
fully reflect the needs for our van
00:34:54
customers as well
00:34:56
we will offer our digital service
00:34:58
Mercedes me charge B2B for Van customers
00:35:01
as well with our new es printer giving
00:35:04
them access to 300 000 charging points
00:35:07
in Europe
00:35:08
Mercedes me charge is one of the largest
00:35:11
public charging networks in Europe
00:35:14
our outstanding commercial customer
00:35:16
service is the backbone of our business
00:35:18
today
00:35:19
and will become an even bigger
00:35:21
differentiator for us tomorrow
00:35:23
our core kpis reflect our outstanding
00:35:26
performance and proximity to our
00:35:29
customer
00:35:30
with more than 4 200 Mercedes-Benz
00:35:33
retail locations we ensure an average
00:35:35
drive time of approximately 30 minutes
00:35:38
in Europe in other words we're close to
00:35:40
our customers
00:35:42
we further supplement this proximity
00:35:44
with our mobile repair service on
00:35:47
customer premises or field technicians
00:35:50
for complex repair cases and will
00:35:52
continue to expand these offerings this
00:35:54
pays off
00:35:55
with every second you've been sold
00:35:57
our customers purchase a service
00:36:00
contract for an extended service
00:36:01
partnership with us
00:36:04
our customer service promise focuses on
00:36:06
maximizing vehicle uptime and managing
00:36:09
unexpected downtimes
00:36:12
based on this mission
00:36:13
we have already rolled out a
00:36:16
connectivity based product EG
00:36:18
Mercedes-Benz vans uptime
00:36:20
already today
00:36:21
160 000 service center visits per year
00:36:24
are being triggered digitally this
00:36:26
secures vehicle uptime and customer's
00:36:28
loyalty and last but not least we're
00:36:31
making repurchase easier than ever
00:36:34
our options for reordering retrieval
00:36:37
already allow our commercial customers
00:36:39
to purchase their next Mercedes-Benz van
00:36:41
as quickly and as conveniently as
00:36:43
possible
00:36:44
with Mercedes-Benz Mobility we accompany
00:36:47
the customer Journey with a wide range
00:36:49
of financial service offerings ranging
00:36:51
from leasing over financing and rental
00:36:54
to subscription
00:36:56
the offer of commercial rental services
00:36:58
helps our customers staying flexible in
00:37:01
their operations by buffering Peak
00:37:03
Seasons with rented Mercedes-Benz lens
00:37:06
so let me wrap this up we Target Premium
00:37:09
segment positioning for commercial Vans
00:37:11
and luxury positioning for private Vans
00:37:14
this will allow us to focus even more on
00:37:17
high margin regions channels products
00:37:20
and industries
00:37:22
our business remains robust due to the
00:37:25
strategically white balance positioning
00:37:27
in nine core commercial Industries
00:37:30
we embrace our customers and they reward
00:37:32
us with the highest Customer Loyalty in
00:37:35
the lcv segment we are transforming
00:37:38
towards a direct sales business model to
00:37:40
lower costs and to make our sales
00:37:42
processes leaner
00:37:43
with our three layer offer of digital
00:37:46
extras we are creating software enabled
00:37:48
recurrent revenues and with that I would
00:37:51
like to hand over to Dr Andreas sugan
00:37:53
head of development Andreas will provide
00:37:56
a more in-depth look at how we are
00:37:59
leading in electric drive and the
00:38:01
digital experience
00:38:04
[Music]
00:38:12
thank you Klaus
00:38:14
to embrace our customers means providing
00:38:17
them with sustainable products and
00:38:19
services
00:38:20
Mercedes-Benz Vans pioneered electric
00:38:23
Advance with the 2010 launch of the veto
00:38:26
e-cell the world premiere of the second
00:38:29
generation es printer was this February
00:38:32
with a strong and positive resonance
00:38:36
with both the media and public
00:38:39
after the efficiency Drive last fall in
00:38:42
Germany our new East printer just
00:38:45
successfully completed a special test
00:38:48
drive from Las Vegas to Long Beach
00:38:50
California
00:38:53
275 miles or
00:38:55
443 kilometers without recharging the
00:39:00
113 kilowatt hours battery
00:39:04
if you have ever had the chance to
00:39:07
experience this particular route you
00:39:10
will know how demanding it is
00:39:13
coming back to our current electric
00:39:16
portfolio we have already sold more than
00:39:20
40 000 events
00:39:22
by the second quarter 2023 we will be
00:39:26
fully completed with an electric version
00:39:29
of each model we sell
00:39:31
we lead in electric drive today and aim
00:39:36
to lead tomorrow
00:39:38
starting 2026 onwards we will introduce
00:39:42
our all-new purpose-built EV product
00:39:46
portfolio on our van electric
00:39:49
architecture
00:39:50
for both private and Commercial model
00:39:55
portfolio
00:39:56
we are targeting nav share of more than
00:40:00
50 percent by 2030 wherever market
00:40:04
conditions are low
00:40:07
with a new van architecture we will
00:40:10
secure our ambition to lead in electric
00:40:14
Drive based on really clever engineering
00:40:18
with Veni a we will increase overall
00:40:22
efficiency and performance in every
00:40:25
aspect of the vehicle including
00:40:28
aerodynamics drive time tires and
00:40:32
Chassis
00:40:34
efficiency is a key criteria for
00:40:37
electric vans the goal is to achieve a
00:40:41
higher range with an optimal battery
00:40:43
capacity which is directly related to
00:40:47
vehicle weight and cost
00:40:50
the development and launch of Vanier
00:40:53
underscores our strong commitment to
00:40:57
sustainability and is an important
00:40:59
Milestone on the road to achieving our
00:41:03
ambition
00:41:04
2039 goals
00:41:06
let's head over to Steffi Schmidt's
00:41:09
strategic Project Lead Vani a for deep
00:41:12
dive into our new electric architecture
00:41:18
starting 2026 all newly the events from
00:41:24
C1 single Innovative modular and
00:41:27
scalable architecture
00:41:30
according to the electric only strategy
00:41:32
Manny a has been developed from scratch
00:41:34
as a Purpose battery electric vehicle
00:41:37
many a is short for vain electric
00:41:39
architecture all future midsize and
00:41:42
large events will be built on it both
00:41:45
commercial and private water and
00:41:47
commercial use as a versatile premium
00:41:49
all-rounder or as a private luxury van
00:41:51
many a-based vehicles will focus on
00:41:54
added values for our customers and their
00:41:57
individual needs a modular and scalable
00:42:00
architecture also means a high degree of
00:42:02
scale effects as well as maximum
00:42:04
synergies through leaner simpler and
00:42:06
faster processes and maximally efficient
00:42:09
use of resources in development as well
00:42:12
as in production secure sustainable
00:42:14
profitability the three modules of Nea
00:42:17
help to achieve these targets first the
00:42:20
front module consists of the electric
00:42:21
powertrain and the front axle the module
00:42:24
is the same in all Vani a variants in an
00:42:27
optimized common part strategy the
00:42:30
differentiation relevant to the customer
00:42:32
takes place in the two other models
00:42:34
second the center module scales the
00:42:36
vehicle length this is also where the
00:42:39
standardized battery case is placed high
00:42:42
voltage batteries with different
00:42:43
capacities are installed within the case
00:42:46
third the rear module will be available
00:42:49
in two versions with an electric motor
00:42:52
for all-wheel drive variants of Nea and
00:42:55
without electric motor for the front
00:42:56
wheel drive variance based on these
00:42:59
three modules many a allows for Clear
00:43:01
differentiation between privately and
00:43:04
commercially used events as well as
00:43:07
maximum synergies many AP stands for
00:43:10
privately positioned bands in the
00:43:11
mid-size segment whether for lifestyle
00:43:14
oriented customers with high standards
00:43:16
as a VIP shuttle as a locally CO2
00:43:20
emission-free office or for leisure
00:43:22
active families thanks to the Innovative
00:43:25
Mercedes-Benz operating system mbos
00:43:28
manyap is always on and Masters all
00:43:32
everyday challenges and with planned
00:43:34
wltp range well over 500 kilometers it
00:43:38
is perfectly suited for all kinds of
00:43:41
Adventures even outside cities
00:43:43
many AC stands for commercial vans in
00:43:46
the mid-size and large segments it is
00:43:48
the ideal ways for customers who value
00:43:51
efficiency reach and payload many AC
00:43:54
large office space for almost every
00:43:56
commercial need even for customers who
00:43:58
need more space than average with its
00:44:01
modular and scalable design the
00:44:03
architecture is tailor-made for
00:44:04
different configurations and up for the
00:44:07
solutions from career Express and parcel
00:44:09
delivery vehicles to ambulances
00:44:12
foreign events
00:44:15
from Municipal vans
00:44:18
or flatbeds to lifting platforms or
00:44:21
campus almost everything is conceivable
00:44:24
with Van EA we see the spans Vans
00:44:28
accelerates its cost towards a fully
00:44:30
electric future and its commitment to
00:44:34
sustainability and the goals of ambition
00:44:36
2039 maximum added value for customers
00:44:40
with sustainable profitability at the
00:44:43
same time when EA clearly underscores
00:44:46
the aspiration of Mercedes-Benz events
00:44:48
to be lead in electric
00:44:55
as Steffy has just shown us
00:44:58
starting 2026 onwards this new
00:45:02
technology will enable us to consolidate
00:45:05
our mid-end large van portfolio down to
00:45:09
only one architecture to reduce the
00:45:13
overall complexity of our product
00:45:16
portfolio
00:45:18
but it's not only about Hardware
00:45:21
digital features and the overall digital
00:45:25
experience are a crucial factor in our
00:45:28
customers purchase decisions
00:45:31
lead in digital experience will be
00:45:35
indispensable for us in not just meeting
00:45:38
but exceeding our customers expectations
00:45:42
how to do that
00:45:44
please allow me to hand over to Mariela
00:45:48
New York weather sir head of electric
00:45:50
Electronics systems
00:45:54
at Mercedes Benz we are constantly
00:45:57
moving forward with our strategy lead in
00:45:59
digital experience in the private and
00:46:02
the commercial van segment our goal for
00:46:04
the commercial segment is simple
00:46:05
ensuring the full digital integration of
00:46:08
our products into the activities of our
00:46:11
customers in brief words we will make
00:46:14
the venue fully integrated part of our
00:46:16
customers businesses we started our
00:46:18
journey some years ago and have a lot of
00:46:21
value-added offerings already in place
00:46:23
backbone for our digital offerings are
00:46:26
data sets we are able to retrieve data
00:46:28
sets and load collectives from roughly 4
00:46:31
million vans in the field resulting in
00:46:34
several billion potential Data Insights
00:46:36
enabling us to enhance our future
00:46:38
products and further improve their
00:46:40
robustness and usability of course
00:46:42
always the explicit consent of our
00:46:45
customers towards Mercedes-Benz age let
00:46:48
me briefly give you some technical
00:46:49
details
00:46:51
on the first layer Klaus mentioned
00:46:53
earlier we offer around 30 digital
00:46:56
extras
00:46:57
for example a specific navigation for
00:47:00
oversized Vehicles like compass that
00:47:03
need special routing due to the road
00:47:05
limitation for large vehicles for our
00:47:08
private customers in the compass segment
00:47:10
we have developed our Mercedes-Benz
00:47:12
Advance control
00:47:14
in short mvac mbac enables digital
00:47:18
control of the living space via mbux or
00:47:21
a smartphone app
00:47:22
for example functions like opening and
00:47:25
closing of the proper proof
00:47:27
or activation of room lights and other
00:47:30
camper specific functions in the van for
00:47:33
our commercial customers another service
00:47:35
with high value is Mercedes-Benz
00:47:38
providing predictive maintenance using a
00:47:41
rule-based approach to reduce downtime
00:47:43
of the vehicles
00:47:45
uptime is money
00:47:47
and bf time is based on more than 900
00:47:50
rules with 4 000 data points to cover
00:47:53
the diagnostic codes of the vehicles
00:47:56
with MB uptime we detect anomalies
00:47:59
before they turn into failures allowing
00:48:01
schedule maintenance before the
00:48:03
equipment breaks down on the second
00:48:06
layer we offer even more customer
00:48:08
specific and highly relevant B2B extras
00:48:12
one example is the individual
00:48:14
intelligent charging management we
00:48:16
developed with and for the pdh
00:48:20
digital solution is based on our
00:48:22
dedicated onboard logic unit Olu which
00:48:26
gives us the unique ability to integrate
00:48:28
our electric vents in the existing
00:48:31
enterprise system of dpdhl in a seamless
00:48:34
way hence dpdhl can realize intelligent
00:48:37
charging for their old Fleet the Olu is
00:48:40
hosting an in-house developed vehicle
00:48:42
abstraction software layer to run third
00:48:44
party Solutions
00:48:45
like the concept of an API for the cloud
00:48:49
it even allows connections to the
00:48:52
external backends of our customers
00:48:54
additionally a fitter Solutions can be
00:48:56
integrated into digital services to give
00:48:59
another example using the Olu it will be
00:49:03
possible to sense the temperature in the
00:49:05
back of an equation and display it to
00:49:08
the mbux screen to the driver while on
00:49:10
route to the next delivery the fleet
00:49:12
manager will also receive the same
00:49:14
information in parallel to provide
00:49:16
state-of-the-art car I.T security and
00:49:19
what we call controlled openness so all
00:49:21
who comes with a dedicated in-house
00:49:23
developed back-end platform for managing
00:49:26
and monitoring Olu devices in the field
00:49:28
as well as rolling out software updates
00:49:31
with mbos the Olu functionality will be
00:49:34
an integral part of the ee architecture
00:49:37
with more high performance Computing
00:49:39
units and an advanced set of sensors and
00:49:42
actuators mbos will enable us to offer
00:49:46
even more specific commercial
00:49:47
application for the customers and for
00:49:50
the third layer
00:49:51
for the first time with mbos we will
00:49:54
offer a whole range of new and existing
00:49:56
Android apps relevant to our commercial
00:49:59
customers and most important industries
00:50:02
these Android capabilities allow us to
00:50:05
fulfill our customers needs for
00:50:07
multi-brand Solutions those applications
00:50:09
will be seamlessly integrated and
00:50:13
drivers won't need to juggle smartphones
00:50:15
or other handheld devices while driving
00:50:17
our vents to carry out their jobs to sum
00:50:20
up ease of use efficiency and safety for
00:50:24
our customers all in all with our free
00:50:27
layer approach we will fulfill customer
00:50:29
requirements for off-the-shelf Solutions
00:50:31
as well as highly individual
00:50:33
functionality last but not least
00:50:36
based on mbos and its technical
00:50:38
capabilities we want to achieve level 3
00:50:41
for our private customers by end of the
00:50:43
Decay and while we will offer an
00:50:45
entry-level set of driver assistance
00:50:47
systems for a cost-driven commercial
00:50:49
customers we target to realize level 4
00:50:52
automated driving starting end of the
00:50:55
decade to address the business potential
00:50:58
of driverless Transportation as part of
00:51:00
the Mercedes-Benz AG we benefit from
00:51:03
strong partnership and cooperation these
00:51:05
features are a glimpse into the future
00:51:08
that our customer will not have to wait
00:51:10
so long to experience automated driving
00:51:12
in the commercial Fleet
00:51:14
from mid decade we will already provide
00:51:17
L2 capabilities for veni a
00:51:21
thank you again Marie and Steffi
00:51:24
to give you all a quick wrap up
00:51:26
Mercedes-Benz Vans has a long history
00:51:29
with an experience in the field of
00:51:32
electric Drive
00:51:33
moving forward it's our clear ambition
00:51:36
to lead the industry into the electric
00:51:39
era
00:51:41
with venny a we will introduce our
00:51:44
purpose-built EV architecture producing
00:51:47
and launching our new mid-size and large
00:51:51
size van on only one architecture
00:51:55
with veneer we will also introduce mbos
00:51:59
the Mercedes-Benz operating system
00:52:03
mus will allow us to offer even more
00:52:06
digital extras software enabled upgrades
00:52:10
for our commercial customers including
00:52:13
access to third-party apps
00:52:16
by using the same ee architecture as
00:52:20
Mercedes-Benz cars we benefit from
00:52:23
common Technologies and are able to
00:52:26
realize maximum synergies in automated
00:52:29
driving
00:52:31
for the road ahead we have a clear
00:52:33
Target for automatic driving
00:52:36
offering for private customers SAE level
00:52:40
3 by end of the decade
00:52:43
and for commercial customers we target
00:52:46
to realize level four starting end of
00:52:49
the decade to address the business
00:52:51
potential of driverless transportation
00:52:55
with the launch of many a based Vehicles
00:52:58
we will provide level 2 capabilities
00:53:03
with all of this we want to secure our
00:53:07
goal to offering the most desirable Vans
00:53:10
and services
00:53:12
to effectively tackle this huge
00:53:15
transformation we also need to address
00:53:17
the bottom line when it comes to
00:53:20
controlling our costs
00:53:23
our head of finance and controlling will
00:53:27
now give us a closer look at how we are
00:53:30
approaching our cost structures within
00:53:33
our transformation
00:53:36
[Music]
00:53:45
thank you Andreas for providing a
00:53:47
glimpse into our technological future
00:53:51
now I will explain how we are going to
00:53:53
translate this into our objective
00:53:56
industry leading profitability
00:53:59
first let's talk about costs
00:54:02
we are tackling costs on all levels
00:54:06
our strategic pillar lower focuses
00:54:08
exactly on this
00:54:11
we have set up a comprehensive
00:54:13
efficiency program to drive down costs
00:54:16
at company operations and product level
00:54:21
let's have a closer look into what we
00:54:24
plan on the company side
00:54:26
first we will reduce fixed cost
00:54:29
especially by streamlining and
00:54:31
digitizing processes
00:54:33
we are aiming for around 20 percent
00:54:35
fixed cost reduction by miticade
00:54:37
compared to 2019 actuals
00:54:41
and we are well on track also
00:54:44
we will continue to harness the power of
00:54:47
synergies with Mercedes-Benz Passenger
00:54:49
cars
00:54:51
we are enjoying a competitive Advantage
00:54:53
from commonly used resources and the
00:54:56
technical know-how of Mercedes-Benz
00:55:00
this leverages our objective industry
00:55:03
leading profitability
00:55:07
next to our company goals efficient
00:55:09
operations are a must to lower costs
00:55:12
that means we have to focus on an
00:55:16
appropriate Capital allocation and an
00:55:18
optimized fixed cost structure
00:55:21
therefore we will reorganize our Global
00:55:25
industrial footprint
00:55:27
let me hand over to Francesco chancha
00:55:29
head of operations
00:55:31
Francesco comes from an efficiency
00:55:33
focused volume om
00:55:35
bringing new ideas and an ambitious cost
00:55:38
mindset to bands
00:55:40
he will tell us more about that
00:55:43
foreign
00:55:46
I joined Mercedes-Benz vans in 2022 to
00:55:50
drive the transformation of the
00:55:51
cost-based manufacturing coming from a
00:55:54
company that is known for its efficiency
00:55:56
I'm excited to be part of the
00:55:58
Mercedes-Benz Vans team as we move to
00:56:01
combine best-in-class events with the
00:56:03
radical Improvement in cost structure we
00:56:05
are actively Transforming Our Global
00:56:07
Production Network to make it more
00:56:09
efficient flexible and geared towards an
00:56:12
electric future we are expanding our
00:56:15
network with our first pure Electric
00:56:17
Light commercial vehicles plan in Java
00:56:20
Poland with this plant we aim to set all
00:56:23
new standards for productivity lean
00:56:25
operations and sustainability in the
00:56:27
manufacturing of Premium elcbs worldwide
00:56:30
the following short animation will give
00:56:32
you a first impression of what it will
00:56:35
look like of course Java will be net
00:56:38
carbon neutral just like all the
00:56:40
factories we own however we are
00:56:43
targeting the use of 100 percent green
00:56:45
energy for the first time through
00:56:47
maximizing our use of sources like solar
00:56:50
panels
00:56:51
the plant will also be modular flexible
00:56:54
and scalable to cover increasing demands
00:56:57
in the hour we will exclusively produce
00:57:01
purpose this allows for lean and cost
00:57:04
efficient production and will go hand in
00:57:06
hand with other significant changes in
00:57:09
our manufacturing footprint we want to
00:57:11
build Vanier in our plants in Victoria
00:57:13
Spain Dusseldorf Germany and in other
00:57:17
countries as well this will be
00:57:19
accompanied by transformational changes
00:57:21
that enhance productivity our multi-site
00:57:24
footprint also maintains our ability to
00:57:27
react to rapidly changing market
00:57:29
conditions while optimizing our cost
00:57:32
position
00:57:33
our planning road is Felder the second
00:57:35
of two plants in Germany will continue
00:57:37
to produce a sprinter and Sprinter and
00:57:40
will also become a competence Center for
00:57:43
even customization for example Camper
00:57:46
vans with our highly skilled and
00:57:48
motivated Workforce we will
00:57:50
significantly improve our production
00:57:52
processes and lower our production costs
00:57:54
our increase in performance will be
00:57:56
driven by dramatically reducing the
00:57:59
complexity of our product portfolio
00:58:01
focusing on efficiency in the core
00:58:03
production processes by reducing hours
00:58:06
per vehicle up to 25 percent by 2025
00:58:09
coming from 2019
00:58:12
optimizing our energy consumption and
00:58:15
using digital technology to increase
00:58:17
efficiency across all our operations
00:58:21
these efforts will result in a
00:58:23
significantly linear cost structure and
00:58:26
we lay the groundwork for a 100
00:58:28
profitable electric dry portfolio in the
00:58:32
future
00:58:35
as I said before we run a comprehensive
00:58:38
cost efficiency program addressing all
00:58:41
levels
00:58:42
company operations and products
00:58:46
now let's have a look at our product
00:58:48
costs
00:58:50
as of today we have already started to
00:58:53
optimize the complexity of our current
00:58:55
vehicle portfolio
00:58:57
by Medicaid we will reduce our portfolio
00:59:00
variance by 30 percent
00:59:03
but still covers the same use cases for
00:59:06
our customers
00:59:09
to face a transformation Beyond 2025
00:59:12
with a ban ea1 architecture strategy we
00:59:17
will achieve further complexity
00:59:19
reduction translating into significant
00:59:22
economies of scale
00:59:25
also we will apply a flexible sourcing
00:59:28
concept it means we are sourcing
00:59:31
components as a Mercedes-Benz internally
00:59:34
or externally as off-the-shelf Solutions
00:59:38
we will choose whatever is best suitable
00:59:41
for us especially in terms of cost
00:59:46
now let's have a look at our financial
00:59:49
kpis
00:59:51
as Matia said at the beginning we are
00:59:53
currently in a very strong position
00:59:56
after very challenging year in 2019 with
01:00:00
topics like litigations discontinuation
01:00:03
of x-class Etc
01:00:05
we have achieved a remarkable turnaround
01:00:09
since then we have improved continuously
01:00:12
and delivered strong results over the
01:00:15
last years
01:00:16
most recently in q1
01:00:18
we achieved exceptionally High figures
01:00:21
with 15.6 percent adjusted return on
01:00:24
sales
01:00:26
I think the figure speak for themselves
01:00:30
the success today is crucial to fund our
01:00:33
investments into an all-electric future
01:00:37
so let's have a look at our indicators
01:00:40
of change
01:00:41
these figures shows successful first
01:00:44
steps through our transformation
01:00:48
we already realized that 24 increase in
01:00:52
our average sales price compared to 2019
01:00:55
with strong net pricing and a very
01:00:58
favorable mix
01:01:00
our r d spendings remain consistent with
01:01:03
previous years focusing on our new bath
01:01:06
models and investing in our future
01:01:10
PP and E is down 17 by reusing existing
01:01:15
assets and structures
01:01:18
last but not least we reduced our fixed
01:01:21
cost by seven percent since 2019 by
01:01:25
building a lean organization
01:01:27
unfortunately headwinds caused by
01:01:30
inflation and The Limited availability
01:01:32
of parts have eaten up two digit savings
01:01:35
compared to previous years
01:01:38
however for this year we expect a step
01:01:41
in the right direction towards our goal
01:01:44
of around minus 20 by mid decade
01:01:47
and this is just the beginning
01:01:51
now let me give you some examples for
01:01:54
the application of our strategy in
01:01:56
upcoming years
01:01:58
our resilient business is based on our
01:02:01
strong revenue streams revenue streams
01:02:04
with the Strategic pillar Target and
01:02:07
embrace we aim to achieve a further push
01:02:10
in product mix and net pricing
01:02:13
this results in a significantly growing
01:02:16
average sales price until end of the
01:02:19
decade
01:02:20
this goes hand in hand with a
01:02:22
substantial content enrichment
01:02:26
we intend to keep our premium position
01:02:28
for commercial Vans and luxury position
01:02:31
for private vans
01:02:34
with this we serve a wide range of
01:02:36
customers with a strong product mix
01:02:40
the shift to a direct sales model brings
01:02:43
us closer to the customer
01:02:45
it enables us to manage discounts and
01:02:48
eliminate inter-brand competition
01:02:52
additionally we expect digital extras
01:02:55
so-called software enabled upgrades to
01:02:58
generate a relevant incremental ebit
01:03:00
contribution
01:03:02
on top we have a strong customer service
01:03:06
and parts business
01:03:08
combining this with profitable growth in
01:03:11
regions channels products and industries
01:03:15
underlines our objective
01:03:18
industry-leading profitability
01:03:21
ramping up our av portfolio by
01:03:24
introducing Vanier including mbos and
01:03:27
our new low-cost plant in Poland we will
01:03:30
require additional investments in our
01:03:32
electric future
01:03:34
at the same time we are reducing our ice
01:03:37
Investments by 70 percent by mid decade
01:03:39
compared to 2019.
01:03:43
to be clear why we will be intensely
01:03:46
cost focused absolute capex and r d will
01:03:50
increase in the next few years
01:03:53
please recognize that capex and R D
01:03:57
levels have always been intermittent in
01:03:59
the LCB industry due to Long platform
01:04:02
life cycles even in the past we have had
01:04:05
short periods of higher Investments
01:04:09
these are followed by longer periods
01:04:12
reapings benefits of that investment
01:04:15
with the product in the market
01:04:17
we will see this again in upcoming years
01:04:20
for beignet
01:04:23
we expect annual capex and r d to
01:04:26
increase to a peak of about 1 billion
01:04:28
Euro for Bev in 2025.
01:04:31
while this marks a substantial increase
01:04:33
on recent levels of roughly 0.7 billion
01:04:37
Euro for all r d and PP e spendings it
01:04:41
is essential to make this investment
01:04:45
based on our latest planning we will be
01:04:47
able to reduce spendings again after
01:04:49
2026.
01:04:52
it will set us up for an ongoing success
01:04:55
in the market with the best possible
01:04:57
bath product and the best digital
01:04:59
services
01:05:02
we also tackle our fixed and variable
01:05:04
cost at the company operations and
01:05:07
product level
01:05:09
the key levers for the around 20 fixed
01:05:12
cost reduction by medicator streamline
01:05:15
and digitized processes
01:05:18
bundling of cross-functions and
01:05:20
synergies with Mercy dispense cars like
01:05:23
John sourcing and common development
01:05:28
a lot has been achieved already and
01:05:30
inflation further increases our ambition
01:05:34
our variable cost will decrease mainly
01:05:37
through the reorganized industrial
01:05:39
footprint HPV improvements complexity
01:05:42
reduction and contracted battery cost
01:05:46
improvements
01:05:47
making our objective industry leading
01:05:50
profitability viable also in the
01:05:53
password
01:05:54
all of these efforts support our
01:05:57
financial ambition till end of decade
01:06:00
double digit margin adjusted at
01:06:03
Mercedes-Benz vans
01:06:05
departing from today we guided 11 to 13
01:06:09
percent return on sales adjusted for the
01:06:13
full year 2023.
01:06:15
we indicated to see ourselves at the
01:06:18
upper end of this range for this year
01:06:21
we believe that we can hold the march in
01:06:24
range until mid decade
01:06:26
an EV share of up to 20 percent is
01:06:29
compensated by ongoing strong industrial
01:06:33
performance lower fixed costs and slide
01:06:36
volume grows year over year
01:06:39
beyond that end of decade we assume an
01:06:43
EV share of more than 50 percent
01:06:46
in addition the depreciation from the
01:06:48
Vanier project and the reorganized
01:06:51
production footprint will influence the
01:06:53
margin however we believe we can hold
01:06:57
the margin also at Double Digit probably
01:07:00
closer to 10 percent
01:07:03
over the investment cycle we see a cash
01:07:05
conversion rate adjusted in the vicinity
01:07:08
of 0.8
01:07:10
during the investment phase we might be
01:07:13
slightly below our current guidance
01:07:16
in the following years we expect CCR
01:07:19
adjusted to be on the level of 2022. our
01:07:23
clear ambition is to assure
01:07:25
weatherproofness of our van business
01:07:28
a resilient private and Commercial
01:07:30
banned business is core to master the
01:07:33
transformation towards Bev successfully
01:07:36
with this back to Matthias
01:07:40
[Music]
01:07:49
thank you Mario thanks to everyone for
01:07:52
today's in-depth look at our strategic
01:07:54
goals moving forward
01:07:56
let's summarize our four pillar strategy
01:07:58
and how we want to build economic value
01:08:00
and create future profitable growth
01:08:05
our emphasis on luxury private Vans and
01:08:07
premium commercial Vans will sharpen our
01:08:10
ability to grow high margin regions
01:08:12
channels products and industries
01:08:16
we are strengthening our
01:08:17
customer-centric Focus for stable profit
01:08:20
streams offering customers products and
01:08:23
services they desire
01:08:25
Vani a our Innovative purpose-built EV
01:08:28
architecture with the latest autonomous
01:08:31
capabilities is our way into a fully
01:08:34
electric future
01:08:36
Mercedes-Benz Van's digital experience
01:08:38
will be based on mbos extended by B2B
01:08:42
extras and including access to
01:08:44
third-party apps
01:08:46
a more cost-conscious approach to our
01:08:49
company operations and products will
01:08:51
facilitate long-term profitability of
01:08:54
the van business
01:08:55
that is our plan and the entire event
01:08:58
team is committed to making it happen
01:09:00
and to see what makes us excited about
01:09:03
the van business and how we are keeping
01:09:05
the world moving let's take a look at
01:09:07
this video now thanks for joining us
01:09:09
today
01:09:11
they are beautiful they are reliable
01:09:14
they are strong then what are you doing
01:09:17
to them you get them dirty you draw
01:09:20
holes in them you drive hundreds of
01:09:23
thousands of kilometers and work in them
01:09:26
oh yes of course you even build gyms for
01:09:29
dogs in them and you know what that's
01:09:32
awesome because that is exactly what
01:09:35
they are made for
01:09:44
when I saw that when I just fall in love
01:09:48
when I stop everybody wants to take
01:09:50
pictures and talk about the land
01:10:04
yeah foreign
01:10:11
[Music]
01:10:19
one of my favorite features of all is
01:10:21
the name Mercedes and the reputation
01:10:24
that precedes it
01:10:33
so for each one of you with a great or
01:10:35
even a little bit crazy idea there is a
01:10:38
van out there to put your heart and soul
01:10:41
into
01:10:57
hello ladies and gentlemen this is
01:10:59
Stefan Hoffman speaking and I'm heading
01:11:01
investor relations and treasury I'd like
01:11:04
to welcome you to our q a session of our
01:11:07
events strategy update for this q a
01:11:10
session we are happy to have with us
01:11:12
hola queles our CEO Howard Wilhelm our
01:11:16
CFO Matthias geisen head of fans and
01:11:20
Mario Puja head of finance and
01:11:23
controlling Vans who you have already
01:11:25
seen on stage you probably all joined
01:11:28
the presentations right before
01:11:30
just as a quick reminder in advance of
01:11:33
our upcoming q a session we would like
01:11:35
to politely ask you to focus your
01:11:38
questions on the presented matters thank
01:11:41
you for that ladies and gentlemen you
01:11:44
may ask your questions now I will
01:11:46
identify the questioner by name however
01:11:48
as always please also introduce yourself
01:11:51
with your name and the name of the
01:11:53
organization that you are representing
01:11:55
before asking your questions a few
01:11:58
practical points please ask your
01:12:00
question in English and as a matter of
01:12:03
fairness please limit the number of
01:12:05
questions to a maximum of two to give
01:12:08
everybody on this call the opportunity
01:12:10
to ask questions the operator will now
01:12:13
explain the procedure
01:12:18
thank you
01:12:19
to ask a question please press nine and
01:12:21
the star key on your telephone keypad
01:12:24
to remove the question please press 9
01:12:26
star on your telephone keypad again
01:12:29
please note that dialing 9 star a second
01:12:31
time during the call will automatically
01:12:33
withdraw your question
01:12:35
please refrain from pressing the key
01:12:37
combination multiple times during the
01:12:39
call
01:12:40
again for a question please press 9 star
01:12:42
on your telephone keypad and if you have
01:12:45
any difficulties during this conference
01:12:47
please press zero and rhombus on a
01:12:49
telephone keypad for operator assistance
01:12:52
we start the Q a now and the first
01:12:55
question goes to Patrick Kumer from ubes
01:13:00
thank you it's particleman UBS um good
01:13:03
afternoon everybody thanks for the
01:13:06
presentation of your segment that's
01:13:08
definitely uh very helpful to better
01:13:11
understand the business so I'd like to
01:13:14
uh go for two questions please first one
01:13:17
um is on the manufacturing side and your
01:13:19
focus on efficiency not too long ago you
01:13:23
were looking at establishing a
01:13:26
manufacturing joint manufacturing plant
01:13:29
together with rivien which did not
01:13:31
happen so I'm just wondering to which
01:13:33
extent scale and
01:13:36
Partnerships with other van producers
01:13:39
are an important element to safeguard
01:13:42
profitability in the long term I assume
01:13:44
this plan that you presented is is based
01:13:47
on on a standalone
01:13:49
um kind of uh uh uh
01:13:53
manufacturing footprint but any color
01:13:55
you could share in terms of how much
01:13:58
you're going to pursue manufacturing
01:14:00
synergies with others uh would be
01:14:03
appreciated and my second question is
01:14:06
um it it ties into the Adas topic and
01:14:10
um you you said at the beginning of the
01:14:12
presentation the industry is very stable
01:14:14
and that's one of the reasons why it's
01:14:16
so profitable if you think about the
01:14:18
arrival of autonomous Vans whenever that
01:14:21
is uh that would probably be the exact
01:14:23
opposite of stable and you have some
01:14:25
very powerful players looking at you
01:14:28
know achieving that autonomy beat Amazon
01:14:30
with Zouk speed right drop GM and and
01:14:34
Tesla talked about the rubber band so
01:14:37
um is your roadmap for Adas which is I
01:14:40
would say more or less in sync with
01:14:42
Passenger cars maybe even with a bit of
01:14:44
a time lag versus Passenger cars is that
01:14:48
um you know ambitious enough or are you
01:14:50
taking the risk here of um massively
01:14:53
losing out in the long run whenever
01:14:55
autonomy
01:14:57
um is is really ready for prime time and
01:14:59
we all know that timelines got pushed
01:15:01
out but um to me it sounds like your
01:15:03
plan is not really
01:15:05
um to to have a fully autonomous uh ban
01:15:08
for logistics for deliveries
01:15:10
um over over the business plan thank you
01:15:13
thank you Patrick Matthias I suggest
01:15:15
both for you uh efficiency Road
01:15:18
efficiency Partnerships and Ada's
01:15:20
roadmap yeah absolutely so then let's
01:15:21
start with the efficiency topic first
01:15:24
based on our van ER architecture we have
01:15:27
decided that we will definitely have our
01:15:30
independent architecture and to make
01:15:33
sure that we can use the advantages of
01:15:36
the new technology like immobility we
01:15:39
have decided to merge our full mid-size
01:15:41
segment and our large segment onto one
01:15:44
platform vanity a which gives us the
01:15:47
corresponding scale to be independent so
01:15:49
we don't need to be in a in a
01:15:52
partnership and this is the basis then
01:15:55
we also decided last year that this
01:15:57
Benny a platform will be built also in
01:16:00
our brand new Factory which will be
01:16:01
focused on electric drive only indeed
01:16:04
and getting to your point of review and
01:16:06
that was the original plan that we built
01:16:09
this Factory a big larger because the
01:16:11
original plans were that review and
01:16:13
would also come to Europe with their
01:16:16
operations that was the original plan
01:16:18
Riven has decided for a focus on the U.S
01:16:21
market which we fully accept and so we
01:16:24
continued with our original plan to
01:16:26
build this Factory for vein EA on our
01:16:29
own and as I said that the scale effect
01:16:31
is pretty massive because of us merging
01:16:33
basically everything from a v-class up
01:16:36
to a sprinter on one platform so that's
01:16:38
on the efficiency piece let's come to
01:16:40
the others piece I mean one of the the
01:16:43
things Ola mentioned in in his
01:16:45
introduction as well was that we share
01:16:47
the corresponding synergies with our
01:16:50
strongest cooperation partner which is
01:16:51
Mercedes-Benz passenger cars so the only
01:16:54
a will be fully based on the electric
01:16:55
electronic architecture of um of our
01:16:59
passenger cars and so we also have full
01:17:01
access to the autonomous functionalities
01:17:04
accordingly and our clear plan is to
01:17:07
have level 2 level 2 plus in the market
01:17:10
launching Vani a then to move towards
01:17:13
level three on the private luxury side
01:17:15
and that will kick in whenever we we are
01:17:18
right earned and prepared in this
01:17:20
segment and coming to your point of the
01:17:23
um of the commercial segment there we
01:17:25
believe that level 4 will play a role
01:17:28
absolutely we have made sure that based
01:17:31
on our architecture we have the
01:17:33
corresponding installation spaces the
01:17:35
redundancy is everything we need to also
01:17:37
fully operate on a level fear basis but
01:17:39
I also want to be clear here we believe
01:17:42
that this is a technology which will
01:17:44
rather click in end of the decade
01:17:45
beginning of next decade and if you look
01:17:48
at our segmentation I showed in in my
01:17:51
introduction as well this is only a very
01:17:54
small piece of the overall industry so
01:17:56
we have a very very strong and resilient
01:17:58
footprint because we cover
01:17:59
comprehensively all nine plus one
01:18:01
Industries and the industry for example
01:18:04
for Hub to HUB Transportation which
01:18:06
matters most here is especially the last
01:18:08
mile which is by far not the biggest one
01:18:10
so we will be prepared for that but we
01:18:13
also have a basis in all the other
01:18:14
segments
01:18:18
thank you Matthias thank you Patrick
01:18:19
from Zurich to Frankfurt Timo Casa
01:18:22
Deutsche Bank
01:18:24
thank you very much I think Patrick was
01:18:26
just trying to clarify something but
01:18:27
then I go ahead
01:18:29
um Stefan I hope this is still in line
01:18:31
with the content uh delivered I think
01:18:33
first of all this was a really good
01:18:34
presentation number strategy not from my
01:18:36
role that we can ask for and certainly
01:18:38
events does not get the credibility that
01:18:40
it deserves but I think he dodged what
01:18:42
is probably the most important question
01:18:43
to investors and you entered to that in
01:18:45
your intro actually the key question is
01:18:47
not if this can be a good business to be
01:18:49
honest I think we never quite understood
01:18:50
why it wasn't as good as it is right now
01:18:52
with your positioning and pricing the
01:18:54
question is if you are the best owner of
01:18:56
this effort and the v-class clearly is a
01:18:58
premium asset but it has a lot of
01:19:00
commercial customers as well certainly
01:19:02
your Sprinter product does that and it's
01:19:04
very different to those that you are
01:19:06
attracting with the presentation that
01:19:07
you held in Monaco so once this was a
01:19:09
very good presentation I think we've
01:19:10
heard almost nothing about why this is a
01:19:13
very integral and important part of the
01:19:15
Mercedes-Benz group I see that software
01:19:18
is one obviously a few hundred thousand
01:19:19
units as well but online Herald maybe to
01:19:21
you can you please clarify why you think
01:19:24
fans should remain part of Mercedes
01:19:27
going forward and then secondly looking
01:19:30
just a bit at the past because we have
01:19:31
seen the pattern of substantially better
01:19:33
profitability over the last three years
01:19:35
in many other instances in the
01:19:37
automotive world as well you had quite
01:19:39
disappointing times between 2018 and
01:19:41
2020. can you maybe nail it down to a
01:19:43
few points that you really changed that
01:19:46
made you as profitable as you are today
01:19:48
versus those 2-3 relatively dark youth
01:19:51
that we've seen to give us conference
01:19:52
that you can remain as profitable going
01:19:54
forward thank you
01:20:00
happy to do so as we saw in the
01:20:03
presentation
01:20:04
with Matthias and the team is the van
01:20:08
business in its own right is a
01:20:10
profitable strong business it underlies
01:20:12
slightly different Market mechanisms
01:20:14
than the classic passenger car business
01:20:17
with different Market Cycles but also
01:20:20
different Regional footprint so in a way
01:20:22
the strong division inside Mercedes
01:20:25
provides a resilience factor a little
01:20:28
bit of a hedge to to the cycles that you
01:20:30
would have on the passenger car side but
01:20:32
I think is one thing that's very
01:20:34
important to consider here which is very
01:20:37
different from what we did with project
01:20:38
focus with with our truck business
01:20:40
is that um
01:20:43
that if a car company is to treat the
01:20:45
van business is a branch
01:20:46
and I'm not aware of any large van
01:20:48
player that does not have a tree to
01:20:51
attach to
01:20:52
so the synergies between a car company
01:20:55
and a van company is much much bigger I
01:20:57
think on the bill of material side we're
01:20:59
at or above 50 percent of the Bill of
01:21:01
material
01:21:02
so a standalone van business is
01:21:05
certainly a less viable proposition then
01:21:09
you go into the intersect intersect
01:21:11
section here between the two I'm looking
01:21:13
at this eqv to my right here
01:21:16
this unique segment that we have built
01:21:18
over years with a strong price premium
01:21:22
for specific customers that are looking
01:21:24
for a larger vehicle a people mover or
01:21:26
some kind of a space concept for
01:21:29
specific customers or for a specific
01:21:30
period in your life
01:21:32
that has been a significantly
01:21:35
significantly growing and important
01:21:37
segment for us
01:21:39
and I think we we haven't seen the end
01:21:40
of the road of this on my recent rather
01:21:43
long trip to China I saw more Vans than
01:21:46
I had expected many of which were
01:21:48
Mercedes which of course made me happy
01:21:50
but many of which were even volume
01:21:52
producers that sell vans in that class
01:21:56
for above 100 000 Euro a piece and I was
01:21:59
thinking to myself van EA opportunity
01:22:02
and that goes further I think Matthias
01:22:05
alluded to the RV segment in the U.S and
01:22:07
so on so even in the market one segment
01:22:10
a profitable segment of the Vans
01:22:12
actually does fit quite well to what
01:22:14
we're doing on the passenger car side
01:22:17
so I think there's a whole host of
01:22:18
reasons to say uh we have a large
01:22:22
passenger car business but we also have
01:22:25
a very attractive van business that
01:22:27
provides resilience for our overall
01:22:29
business model and the purpose of today
01:22:32
was to lift that out of the Shadows a
01:22:34
little bit
01:22:35
because we seem to talk only about
01:22:38
Passenger cars when we usually meet
01:22:42
thank you hola and Mario on the
01:22:44
profitability kind of what has
01:22:45
sustainably changed since the more
01:22:48
challenging times yes thank you Tim for
01:22:50
the question
01:22:52
um we managed to turn around coming from
01:22:54
2018 2019 mainly because we focused we
01:22:58
focused directly on a profitable growth
01:23:01
not only on product we also focused on
01:23:04
the profitable growth on the products
01:23:06
and regions channels and Alternate
01:23:08
industries that means as you could see
01:23:11
all also on the slide the ASP was
01:23:14
growing up in the last years by 24
01:23:19
compared to 2019 but also on the cost we
01:23:23
did a very good job we focused also to
01:23:26
reduce our fixed costs to optimize our
01:23:28
operations as we saw also we had a clear
01:23:31
Target for a reduction of our hpbs and
01:23:34
also for the product costs we focused
01:23:36
and the variable costs we I think we we
01:23:39
are really focused now on on the revenue
01:23:42
side as well on the cost side to
01:23:44
optimize our product and also our
01:23:47
product portfolio for example also our
01:23:49
complexity what we mentioned in uh in
01:23:51
the slides beforehand
01:23:54
one thing I mean you you pick 2018 and
01:23:58
2000 2020 which which makes a lot of
01:24:00
sense but let's also look at the Whole
01:24:02
Decade the Whole Decade we have um
01:24:04
basically operated at very very healthy
01:24:06
margins they they may not not appear to
01:24:08
be too high from today's perspective but
01:24:10
if you look at the automotive industry
01:24:12
Back In These Years also the van
01:24:15
business in those days was was a very
01:24:17
strong business but you picked exactly
01:24:18
the right uh the the right years and I
01:24:20
think Mario could could explain well the
01:24:22
the reason for that
01:24:24
maybe terminal point I would add is
01:24:27
um I think you will not doubt or contest
01:24:30
the belonging of the v-class to the
01:24:34
Mercedes side of things to the private
01:24:37
use side of things as Ola pointed out
01:24:39
and human tears but everything there's
01:24:42
an important point I mean to do the
01:24:44
investment into the platform
01:24:46
you need to have some scale and probably
01:24:49
uh the private use case is not is not
01:24:53
big enough to have the economics of
01:24:57
scale you need to command
01:24:59
therefore you need to have the
01:25:00
commercial side of things and in return
01:25:03
you couldn't do the commercial side
01:25:04
without having the private use and I
01:25:07
think therefore I mean this is a key
01:25:09
point which we discussed intensively as
01:25:13
part of our Capital allocation over the
01:25:15
last 12 or 24 months where we have come
01:25:18
to the conclusion that obviously next to
01:25:21
a decent profitability as you can see it
01:25:24
is also a meaningful thing in terms of
01:25:26
optimizing Capital allocation
01:25:31
to all of you Patrick I'm sorry if you
01:25:34
had a follow-up question we we didn't
01:25:36
hear it if if you want to go in the
01:25:39
queue again then just dial the the star
01:25:41
in the nine if there's a follow-up
01:25:43
question now from Frankfurt to London I
01:25:46
have a few questions coming out of
01:25:47
London we start with Jose azumendi from
01:25:50
JP Morgan
01:25:53
thank you very much uh and thanks for
01:25:55
the uh very little presentation a couple
01:25:57
of questions please
01:25:59
um can you comment a little bit the uh
01:26:01
depict the trough margins in in the
01:26:03
business and I'm trying to understand
01:26:04
with all the cost actions we've done in
01:26:07
the last years with everything that's
01:26:08
coming up in the coming two to three
01:26:10
years in terms of the reduction of fixed
01:26:12
costs and uh you know continued
01:26:14
Improvement of the product what do you
01:26:17
think Marty's would be if volumes will
01:26:19
be down if volumes will be down 20 to 30
01:26:22
percent how do you think about this
01:26:24
picture trough margin
01:26:26
um you know uh thesis in the next in the
01:26:28
next uh in the next cycle and then
01:26:30
second all I I would love to hear a
01:26:33
little bit more strategically why is the
01:26:35
pickup truck uh the pickup segment not
01:26:38
uh strategically a segment that is in of
01:26:41
interest for you especially when you
01:26:42
think about
01:26:44
you know you you have ultimately the
01:26:46
Branded technology and the platform so
01:26:48
what would the segment not be of
01:26:49
interest for you strategically in in
01:26:51
North America thank you
01:26:54
okay Mario on the kind of marching
01:26:57
downside in in a downturn market
01:27:00
scenario yeah
01:27:01
um thanks also for your question
01:27:04
um I think we focused on the value
01:27:07
growth not on the volume growth what we
01:27:09
currently have in our plan and it means
01:27:12
even if the market goes more from a
01:27:15
sunny scenario to a cloudy weather
01:27:18
scenario we are very resilient business
01:27:21
case yeah because of we have this cost
01:27:24
efficiency program comprehensive cost
01:27:26
efficiency program over all levels and
01:27:29
here we see a very good situation in our
01:27:32
in our planning currently and therefore
01:27:35
we also guided you with this 11 to 13 RS
01:27:39
two weeks ago or four weeks ago
01:27:42
and we are very convinced that we can
01:27:46
hold this margin also um for this year
01:27:48
for sure we also indicated that we will
01:27:51
stay in the upper end you know but also
01:27:53
when we have a look forward in the Bev
01:27:55
world we also said we will keep the
01:27:58
double digit margin yeah
01:28:01
maybe it was there it's new to me that
01:28:04
you love the weather chart so much you
01:28:07
might have noticed that we took it away
01:28:10
exactly we are just used to Sun no uh I
01:28:15
think I mean 2022 in terms of volume was
01:28:18
not really mean a great year right and
01:28:20
you you guys I mean did a fantastic job
01:28:22
and there was more Improvement to come I
01:28:24
think more resilience to come and you
01:28:26
can also wear the lower volumes and
01:28:29
again I mean the proof has been
01:28:30
demonstrated
01:28:32
so to your question Jose on pickups if
01:28:35
you look at the world of pickups I would
01:28:37
say there are two main markets the one
01:28:41
that is by far and away the most
01:28:44
profitable one is the full-size pickup
01:28:47
Market in the United States dominated by
01:28:49
traditional players but of course new
01:28:51
players that are entering in
01:28:53
to be in that market you would have to
01:28:56
go all in and in fact we don't have an
01:28:59
architecture for a full-size American
01:29:02
style pickup and there I'm not so sure
01:29:06
because that would then be on more on
01:29:08
the passenger car side in terms of where
01:29:10
you would position that from an image
01:29:12
point of view I'm not so sure that
01:29:14
Mercedes is the right play for that
01:29:16
the other pickup that you have in Asian
01:29:19
markets or you have it in South America
01:29:21
or you have it in South Africa or a
01:29:24
little bit in the Craftsman World in
01:29:26
Europe but not so big is is more what I
01:29:28
would call
01:29:30
compact to normal large to Mid
01:29:33
that's a Cutthroat business it certainly
01:29:36
doesn't fit to our brand image we tried
01:29:38
it that was by the way part of the not
01:29:41
so fantastic Financial results in 2018
01:29:44
and 2019
01:29:46
so I think we we gave that a go but we
01:29:49
quickly realized that that was not
01:29:51
something that's going to be long-term
01:29:53
financially successful for us so we cut
01:29:56
our losses and we stepped out of it and
01:29:57
we have no plans of coming back in again
01:30:00
we've also talked briefly about a
01:30:02
capital allocation and I mean we have a
01:30:05
lot of ideas what you could do based on
01:30:06
Vani a but we also have a very clear
01:30:08
focus and this focus is clearly in our
01:30:11
home turf and our home turf is medium to
01:30:13
large lands that works perfectly well
01:30:15
from commercial up to private and that's
01:30:17
what this platform is made for so clear
01:30:20
focus on on those two segments of the
01:30:22
market
01:30:24
thanks Jose and we continue with George
01:30:28
Gallie from Goldman Sachs
01:30:32
I
01:30:37
can you hear us
01:30:40
we heard a high I I can yeah sorry
01:30:44
um yes just two questions from me um the
01:30:47
first one is obviously you've seen a
01:30:48
strong evolution in the ASP and you're
01:30:51
hoping to grow that further in coming
01:30:53
years
01:30:54
can you grow the ASP while also reducing
01:30:58
the tto for your customers on the
01:31:00
commercial side at face value these two
01:31:03
objectives would seem to pull in the
01:31:04
opposite direction that but perhaps it
01:31:07
is possible to achieve both and maybe
01:31:09
you can provide a bit more elaboration
01:31:12
on that the second question I had was
01:31:14
really on the luxury and premium Side
01:31:17
based on observations from London it
01:31:20
seems that every top hotel and high net
01:31:22
worth individual now has a v-class in
01:31:25
their Fleet can you talk about how that
01:31:28
market is evolving at an industry level
01:31:30
and what you are seeing by region and
01:31:33
how big an opportunity could this be for
01:31:35
Mercedes going forward and related to
01:31:38
this is it unreasonable to assume that
01:31:41
the margins on this part of the v-class
01:31:43
portfolio are comparable to the top end
01:31:47
luxury on the car side thank you
01:31:50
but yes I suggest you take the first two
01:31:52
one and Harold the one on the comparison
01:31:55
in with regards to March and Van versus
01:31:57
top end yeah then then let me stay start
01:32:00
with the ASP as Mario has shown we've
01:32:02
already increased the ASP
01:32:04
um but we what what's our focus is
01:32:07
profitable growth in products in regions
01:32:09
in Industries and in channels so we
01:32:11
believe that with the product substance
01:32:13
plus the services we are offering we can
01:32:15
increase but what we increase normally
01:32:17
as well as our residual values because
01:32:19
what you could see throughout the
01:32:21
presentation we have the strongest
01:32:22
residual values so if you calculate the
01:32:24
overall TCO it's very very healthy still
01:32:27
so we believe both can go to your
01:32:29
question hand in hand to the second
01:32:32
question on the v-class of course that's
01:32:35
a very nice question because we said we
01:32:38
want to position the Vani a platform
01:32:39
more towards the luxury we'll do a first
01:32:42
step now with the existing v-class we
01:32:44
gave you that glimpse of how that may
01:32:46
look like from a design perspective but
01:32:48
then coming 2026 onward words we see a
01:32:51
strong growth potential of of the
01:32:53
v-class in the European markets yes but
01:32:56
even more in the in China where Ola you
01:33:00
mentioned that a bit earlier where you
01:33:02
see plenty plenty of of those Vehicles
01:33:04
driving around right now because in
01:33:07
China spaciousness is is the new luxury
01:33:10
and everyone's heading in this direction
01:33:12
and um well I said as well we have we
01:33:16
see a lot of volume oems basically
01:33:18
demanding luxury pricing and we believe
01:33:20
that with Vani a we can Define the
01:33:23
Pinnacle in this segment so big growth
01:33:25
potential in China where we right now
01:33:27
only have an eight percent share overall
01:33:29
but we also see this potential in the
01:33:31
United States but we haven't launched
01:33:33
the the v-class today we see a lot of
01:33:36
potential there as well with this luxury
01:33:38
position of this vehicle
01:33:40
so we we are convinced that it will go
01:33:43
in the right direction when it comes to
01:33:44
luxury positioning privately
01:33:46
well George uh thanks for the question
01:33:48
uh yeah some some internal competition
01:33:52
is good as well for the modern crown
01:33:54
right
01:33:56
um so uh and as you could see you in the
01:33:58
first quarter these guys try to
01:34:00
challenge uh Ola and myself on the car
01:34:03
side pretty much and successfully so by
01:34:06
the way congrats
01:34:08
um so we class I think War has always
01:34:10
been a very healthy margin uh but thanks
01:34:13
to the pricing action The Continuous
01:34:15
cost effort Matthias and Mario talked
01:34:19
about I mean obviously sits at even a
01:34:21
higher space I mean today
01:34:23
uh and I think I mean with the potential
01:34:26
to develop as Matias just pointed out I
01:34:28
mean the product features I mean
01:34:29
probably there's some more juice to get
01:34:32
out of it in the future in particular
01:34:34
than in the context of the Next
01:34:37
Generation and uh and the updates to
01:34:39
come here
01:34:41
uh so yeah I would conclude by Maybe by
01:34:44
saying uh it belongs to the entry side
01:34:48
or it has an entry ticket into the
01:34:50
top-end margin territory of the cars but
01:34:54
we keep the capital competition up so
01:34:56
there are still some in the top end of
01:34:58
cars which sit above obviously
01:35:01
great great to have internal competition
01:35:04
and the next gentleman in line is hot
01:35:07
Schneider from Bank of America
01:35:10
yeah
01:35:12
thanks for taking also my questions
01:35:15
um I'm not sure if I missed it during
01:35:16
the presentation so therefore I'm asking
01:35:19
um but sure if you mentioned anything
01:35:21
about volume grows when I look at your
01:35:23
current level of unit sales then we are
01:35:26
still substantially below the level of
01:35:28
2019 so the first question that I would
01:35:30
have is when you expect
01:35:32
to return to this 2019 sales level I
01:35:36
could imagine the downtrend was also
01:35:38
related just to kind of shortage and do
01:35:41
I read basically also then the capacity
01:35:44
Edition right in the way that you expect
01:35:46
long term something like five percent
01:35:48
annual volume grows that's number one
01:35:52
number two is again just confirmation of
01:35:56
the statements that were made on
01:35:58
profitability just that I got it right
01:35:59
so you said that you want to maintain
01:36:02
the current level of margins 11 to 13
01:36:05
despite the big step up in Investments
01:36:07
and then after the margin comes down to
01:36:10
10 can you maybe explain again the past
01:36:12
probability that that you have described
01:36:14
thank you
01:36:17
but yes volume cross let's start with
01:36:20
the first one yeah volume growth
01:36:22
um I think you mentioned it um some
01:36:23
minutes ago we clearly prefer value
01:36:26
growth over volume growth so right now
01:36:28
we are operating in a very very healthy
01:36:30
overall volume situation although the
01:36:33
volume is currently split between two
01:36:34
architectures so that's going to change
01:36:36
as I explained earlier and so it's not
01:36:39
that we want to rule out uh growth not
01:36:41
at all our strategy is clearly towards
01:36:43
profitable growth but we only want to
01:36:45
grow where we can do it in a profitable
01:36:46
way and we just touch the topic of of
01:36:49
the v-class so the the 20 of our overall
01:36:51
portfolio which are privately positioned
01:36:53
where we will make make a big step with
01:36:56
this product then fully electric to to
01:36:58
the US and to China where we of course
01:37:00
see corresponding volume growth but we
01:37:02
also see profitable growth on the
01:37:05
commercial side for example when it
01:37:06
comes to the camper business where we
01:37:09
have a good good stronghold right now
01:37:11
but not good enough we could improve
01:37:13
there as well so also on the commercial
01:37:15
side there is a lot of um room where we
01:37:18
can grow but profitably grow so
01:37:21
I would say that we will explain how
01:37:25
that works and to your question when we
01:37:27
will see the the volume level back again
01:37:30
don't want to make any forecasts now but
01:37:32
at least if you look at the first three
01:37:34
months of this year that was a best ever
01:37:36
q1 so I think we are good in shape
01:37:41
and uh Mario there was a question on the
01:37:44
margins and the path to profitability
01:37:46
yes it was um thanks also the desk for
01:37:49
this question
01:37:51
um the transition of our margin uh
01:37:53
coming from this year as we
01:37:56
um explained already we had guided and
01:38:00
indicated for this year 2020's readers
01:38:02
new guidance from 11 to 13 percent
01:38:05
coming and have a look now when the the
01:38:08
Bev share is growing up up to 20 percent
01:38:11
then for sure we see lower margins but
01:38:14
this will be compensated by the fixed
01:38:16
cost on the one hand but also we see
01:38:19
this just from Matthias also mentioned
01:38:21
slightly increase of the volume by year
01:38:24
by year it's only a slightly increase
01:38:25
because we focus really on the value on
01:38:27
growth value growth and in addition we
01:38:30
see it is a really strong industrial
01:38:32
performance this means all the until mid
01:38:34
of decade we will see us in still in the
01:38:37
range of our guidance there and have a
01:38:40
look until end of the decade when the
01:38:42
path share will increase up to more than
01:38:45
50 percent and for sure we have then the
01:38:48
the way on the margin coming from the
01:38:50
depreciation for the investment what we
01:38:52
do for the Vanier project for the new
01:38:55
plant in Poland for the MBS and so on
01:38:57
but even here we see a double digit and
01:39:01
also mentioned in my presentation
01:39:03
perhaps a little bit closer to 10
01:39:05
percent
01:39:06
but uh just follow up on a quick
01:39:09
follow-up on that
01:39:10
um when uh then you show this one
01:39:13
billion Euro capex for Ev you say cat
01:39:16
packs and r d investment could you maybe
01:39:18
provide a split because I think this one
01:39:20
billion also then includes a capex for
01:39:22
the plant in Poland is that correct
01:39:25
yes that's correct it's including the
01:39:27
investment also for Poland that means
01:39:29
overall the investment includes the
01:39:31
investment for the new architecture when
01:39:33
the AI texture structure and new plan in
01:39:37
Poland and where and as well also the
01:39:39
investment in the new software and the
01:39:41
mbos
01:39:43
and again if I can come back to my point
01:39:46
before that's it but you need to have
01:39:47
the scale of the commercial and the
01:39:50
private use together
01:39:51
otherwise that wouldn't fly and would
01:39:54
not generate the double-digit margins
01:39:56
also in an electric area
01:40:01
comes from capex PPE right towards 25
01:40:04
because of this plant went up
01:40:09
it's not just the plant it's plant and r
01:40:11
d but we haven't broken it out
01:40:13
separately yeah that's right
01:40:17
the chaos thank you and we continue with
01:40:21
Daniel roska from Bernstein
01:40:24
hi It's Sammy Martin uh thanks for the
01:40:27
insight and for the presentation could
01:40:28
we dive a little bit into the Top Line
01:40:31
Ambitions as it relates to electric
01:40:32
electrification and one is kind of how
01:40:35
do you see the bvs in relation to the
01:40:37
growth do you expect the bvs here to be
01:40:40
growth enhancing giving you access to
01:40:42
new customer segments or our electric
01:40:44
bands rather replacing orders that would
01:40:47
have been a combustion engine otherwise
01:40:49
and then secondly as you think about
01:40:51
continued at expectation you know
01:40:53
towards the end of the decade and Beyond
01:40:55
do you think the PV pricing premium will
01:40:58
develop differently from Cars given the
01:41:01
TCO considerations in the commercial
01:41:03
business
01:41:04
and also won't there be kind of a
01:41:06
headwind to the services and parts
01:41:08
revenues you highlighted today thanks
01:41:12
Matthias I suggest you take over yep so
01:41:16
um as indicated in the presentation we
01:41:18
indeed believe the overall ramp up of
01:41:20
the battery electric vehicles will be
01:41:21
slightly slower than on the passenger
01:41:23
car side
01:41:25
um 20 up to 20 in 2026
01:41:28
um and then uh above 50 in 2030
01:41:32
um let me explain why we are operating
01:41:34
in very very different industries from
01:41:37
ambulances to last mile delivery to the
01:41:41
Craftsman at home so finally all of
01:41:44
those Industries will have a completely
01:41:45
different pace in electrification big
01:41:48
feed operators of Last Mile companies of
01:41:50
course have their own sustainability
01:41:52
Ambitions in in-house and push strongly
01:41:56
towards electrification there are other
01:41:57
segments where the ramp up will be much
01:41:59
slower it's especially the the business
01:42:02
of the the the electricians for example
01:42:06
having one or two two Vans he may decide
01:42:08
much later than one of those Fleet
01:42:10
operators I just mentioned so the speed
01:42:12
in general world will be will be slower
01:42:15
and to your question will it only
01:42:16
replace or will it basically also
01:42:18
attract new customers in the commercial
01:42:21
field we believe that it will in most of
01:42:24
the cases replace existing customers
01:42:27
because they are so use case specific
01:42:29
and those needing a van for doing their
01:42:31
business today will also need it in a
01:42:34
similar way tomorrow when it comes to
01:42:37
the to the premium I think the premium
01:42:40
is not only driven by the product but
01:42:41
it's driven by the product Hardware
01:42:44
software the TCO and finally also other
01:42:48
services we offer around so we believe
01:42:51
that we can we can keep keep the
01:42:54
corresponding price premium because we
01:42:57
position our vehicles in the upper upper
01:42:59
segment of the markets so we believe
01:43:01
that that will also assure us a
01:43:04
corresponding
01:43:05
corresponding
01:43:07
profitability in the future
01:43:14
so what we do of course I mean the
01:43:16
service and parts Business Place a major
01:43:18
role um today so it will in the future
01:43:21
because I just explained that the
01:43:22
overall ramp up of the battery electric
01:43:24
vehicles will be slower so the headwinds
01:43:27
you mentioned will be there but in a
01:43:30
much damped much more damped way because
01:43:33
the overall carpool in the market is
01:43:35
will still for the for the next 10 years
01:43:37
to come we highly dominated by the
01:43:40
vehicles with a combustion engine and in
01:43:43
addition to that we also work on
01:43:44
additional profit streams I think Marie
01:43:47
explained it nicely what we are offering
01:43:49
in the world of Digital Services Etc
01:43:51
which will also create profit streams
01:43:53
which we don't have to that extent today
01:43:57
okay thank you Daniel for your questions
01:43:59
and we continue with Henning costsman
01:44:02
from Barclays
01:44:04
yeah thanks Jeff Melissa for taking my
01:44:07
question um if you don't mind um I'd
01:44:09
like to take it a slightly different
01:44:11
angle at the profitability again I'm I'm
01:44:13
struggling to reconcile
01:44:16
um why the margin would would drop
01:44:18
closer to 10 Again by by the end of the
01:44:21
decade um I appreciate you you perhaps
01:44:24
in the in the q1 you didn't have the r d
01:44:26
and also not the BV dilution that you're
01:44:29
expecting more more mature long term but
01:44:32
um if I take as a proxy for example the
01:44:34
50 bit dilution uh for um higher the V
01:44:38
sales that you're guiding in the car
01:44:39
business
01:44:40
um and even considering the r d you're
01:44:42
talking about this 20 fixed cost savings
01:44:44
variable cost savings complexity
01:44:46
reduction further ASP growth uh benefit
01:44:49
from direct sales
01:44:51
um I'm trying to get a feeling I are you
01:44:53
just being really conservative or
01:44:56
um yeah perhaps give us a bit of color
01:44:59
what we still might be missing
01:45:02
um in in terms of this margin
01:45:03
normalization uh in the midterm and um
01:45:08
also coming back to the
01:45:11
positioning of the Vans business
01:45:14
um in the overall Mercedes-Benz group
01:45:18
um I appreciate what you say on uh
01:45:20
productivity and efficiencies and
01:45:23
economies of scale
01:45:24
um maybe we can talk about the consumer
01:45:26
side of things a little bit I think if I
01:45:28
understood you correctly you said at one
01:45:30
point the event customers even the
01:45:33
commercial Vans customers will also also
01:45:35
have access to the proprietary charging
01:45:37
Solutions can you give us a bit of
01:45:39
comfort that that won't compromise for
01:45:41
example the Maybach customers experience
01:45:45
if they have to share the proprietary
01:45:47
branded charging whether service and
01:45:50
crafts commercial events customer how do
01:45:53
you how do you perceive that
01:45:57
Mario the first one profitability to
01:46:00
watch the 10 yeah thanks um heading
01:46:03
um yes the 10 is mainly driven by the
01:46:06
way of the depreciation of our
01:46:07
investment would we have and therefore
01:46:10
middle decade here we will have this
01:46:13
with the start and ramp up of the benie
01:46:15
product and with a new plan in Poland
01:46:17
here we will see and have the impact in
01:46:20
the margin out of the depreciation of
01:46:22
the investment we have to do
01:46:24
let's not forget which is true for the
01:46:27
whole Auto industry that the variable
01:46:30
cost up for electrification for cars or
01:46:32
vans
01:46:33
is a burden and is ahead wind and we
01:46:36
think it's prudent to not assume neither
01:46:39
for cars nor for vans that you can pass
01:46:42
that 100 on to the customer so there is
01:46:45
a structural effect from that that we
01:46:47
try to combat with all the different
01:46:49
measures that Mario mentioned
01:46:52
thanks
01:46:53
on the question uh
01:46:57
uh whether am I about customer would uh
01:47:00
would have an issue if at the charging
01:47:02
point he would see
01:47:04
um yeah more commercial than customers
01:47:07
who wants to take it Matthias
01:47:09
yeah yes I mean uh based from a
01:47:13
technology perspective I explained that
01:47:15
earlier uh of course we have the same
01:47:18
technology so we have made sure that
01:47:20
from a technological perspective that's
01:47:22
feasible of course we will set it up in
01:47:26
a way that it's not disturbing any kind
01:47:28
of luxury customers parking right next
01:47:31
to a sprinter but let's also be quite
01:47:34
clear talking about the European market
01:47:36
now
01:47:37
um our brand of Mercedes-Benz is built
01:47:40
on trust and that has been built up over
01:47:42
the last basically over the last century
01:47:44
and it has been built up by cars by Vans
01:47:47
and by trucks so this company has always
01:47:50
been known for offering luxury Passenger
01:47:53
cars but also for example premium
01:47:55
commercial vans so at least in Europe
01:47:57
it's not a big surprise that there are
01:47:59
also vans in the market with a with a
01:48:01
star on the hood and it has never been a
01:48:05
a problem because that's how this Market
01:48:08
has built up the trust over the last 100
01:48:10
years so I think we find a good way to
01:48:13
separate what you just mentioned
01:48:15
in addition to that you have to look at
01:48:18
the diverse customers that you have on
01:48:20
the van side if you talk about the ones
01:48:22
that theoretically could clog your
01:48:24
charging system those are more the fleet
01:48:26
operators that maybe do Last Mile but
01:48:28
they don't go and charge where the
01:48:30
buyback customer goes in charge they
01:48:32
will do Depot charging so our team that
01:48:34
is in in Harold's area that work on this
01:48:37
they're looking at the whole Spectrum so
01:48:40
we will work with those commercial
01:48:41
customers to give them Depot Solutions
01:48:44
and quite often they will charge those
01:48:46
overnight and they won't need to charge
01:48:49
during the day because they're stopping
01:48:51
delivering going a little bit stopping
01:48:53
and so on and so forth so
01:48:55
we're not too worried about it
01:48:58
thanks
01:49:01
Matthias and thanks Henning for your
01:49:03
question we have time for a last one
01:49:07
um and the next gentleman is Stephen
01:49:09
Reitman from associated general
01:49:22
um but again I'd like to ask about the
01:49:24
v-class
01:49:26
um it's obviously been very impressive
01:49:28
success story
01:49:30
um and I would guess probably looking at
01:49:33
the vehicles is probably one of your
01:49:34
most expensive four-cylinder Vehicles
01:49:36
you actually sell across the Mercedes
01:49:38
total group so my question really is is
01:49:41
has that been a limitation in terms of
01:49:43
how you've been able to develop the V
01:49:44
class
01:49:46
um and so with electric drive train
01:49:47
could we really see performance versions
01:49:49
which really take your 80 asps on that
01:49:52
vehicle line way higher and gives a new
01:49:54
opportunities of a sort of performance
01:49:56
Vans thank you good idea I I love to
01:50:00
hear this one
01:50:03
absolutely right so today and it is
01:50:06
based on on a different platform and
01:50:08
that was exactly something we plan to do
01:50:10
differently in the future going forward
01:50:12
we said we want to clearly position this
01:50:14
v-class in the luxury segment we want to
01:50:17
make sure that it has all the latest and
01:50:18
greatest Technologies of a passenger car
01:50:21
we already made a good step now with the
01:50:23
existing one but we can go a much wider
01:50:25
step now with the Vani a architecture
01:50:27
because we can clearly also from a
01:50:29
design perspective differentiate now
01:50:31
commercial vehicles and the private
01:50:34
v-class so it will be exactly the same
01:50:36
platform will be the same architecture
01:50:38
they will be based on but it will have a
01:50:40
proprietary
01:50:42
design and fully cover all the luxury
01:50:46
features uh passenger car will will
01:50:48
cover as well that includes what you may
01:50:51
uh also relate to includes uh
01:50:54
correspondingly a high increase in in
01:50:56
performance
01:50:57
four wheel drive version will at least
01:51:02
combat the AMG GT at the red light we
01:51:06
shall see
01:51:09
Harold sometimes has a smile on his face
01:51:11
so this time he also had a smile on your
01:51:13
face yeah I like that Stephen thanks for
01:51:15
the idea of having an AMG version of the
01:51:17
v-class I think we'll we'll fuel the
01:51:21
internal competition further great
01:51:25
okay thank you very much ladies and
01:51:27
gentlemen thanks a lot for your
01:51:29
questions for being with us today
01:51:31
in addition many thanks to all of you
01:51:34
here for the presentations and for
01:51:37
answering the related questions after
01:51:39
the event our team at investor relations
01:51:41
remains at your disposal as always to
01:51:44
answer any further questions you may
01:51:46
have and now to all of you wherever you
01:51:48
are have a great morning great afternoon
01:51:50
or a great evening and we look forward
01:51:52
to talk to you soon thanks and goodbye
01:51:58
[Music]
01:52:00
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