At the Mercedes-Benz Group AG (ticker symbol: MBG) Annual Meeting for the financial year 2022 the company outlines its strategic progress while delivering strong financial results and shareholder returns.
“The Mercedes-Benz Group successfully overcame the challenges of the past year, demonstrating a high level of resilience and great adaptability while remaining focused on substantial progress in implementing, developing, and sharpening its sustainable business strategy. Going forward, we will continue to work on a profitable, electric and software-driven future at Mercedes-Benz.”
Bernd Pischetsrieder, Chairman of the Supervisory Board of Mercedes-Benz Group AG
For shareholders, the past year was rewarding: Between March 2022 and March 2023 Mercedes-Benz total shareholder returns – the profit from all capital gains and dividends – increased by 20%, outperforming the German DAX index, where total shareholder returns rose 8% during the same period.
For the financial year 2022 the Board of Management and the Supervisory Board propose a dividend of €5.20 (2021: €5.00). Based on this proposal, the total dividend pay-out for 2022 amounts to €5.6 billion (2021: €5.3 billion). Furthermore, the Board of Management and the Supervisory Board in February 2023 agreed on a share buyback program. Beginning in March 2023, Mercedes-Benz shares worth up to €4 billion (not including incidental costs) are intended to be acquired on the stock exchange over a period of up to two years, with a view to cancelling the shares.
The company’s focus on desirable products is paying off. Sales in the Mercedes-Benz Top-End segment increased by 8% last year while battery electric vehicle (BEV) sales for Mercedes-Benz Passenger Cars rose to 128,700 vehicles (+147%) and 15,000 eVans (+9%). Group Earnings Before Interest and Taxes (EBIT) improved by 28% to €20.5 billion (2021: €16.0 billion) and revenue increased by 12% to €150 billion (2021: €134 billion). The momentum continued in 2023: In the first quarter, improved pricing outweighed headwinds from material costs. Together with higher sales as well as a favourable product mix, resulted in an EBIT of €5.5 billion (Q1 2022: €5.2 billion). First-quarter revenue increased 8% to €37.5 billion (Q1 2022: €34.9 billion) and adjusted EBIT rose to €5.4 billion (Q1 2022: €5.3 billion).
“As the world’s most valuable luxury automotive brand, we delivered strong results in 2022 and have become significantly more resilient while driving forward the transformation. This is the result of great teamwork and our highly sought-after products. Together we stand by our ambition to build the most desirable cars and vans and to be a double-digit margin company – also in the electric and digital era.”
Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group AG
| Mercedes-Benz Group* | FY 2022 | FY 2021 | Change 22/21 | ||||||
| Revenue** | 150,017 | 133,893 | +12% | ||||||
| Earnings before Interest and Tax (EBIT)** | 20,458 | 16,028 | +28% | ||||||
| Earnings before Interest and Tax (EBIT) adjusted** | 20,655 | 17,158 | +20% | ||||||
| Net profit/loss** | 14,809 | 11,050 | +34% | ||||||
| Free cash flow (industrial business)** | 8,128 | 7,880 | +3% | ||||||
| Free cash flow (industrial business) adjusted** | 9,294 | 10,125 | -8% | ||||||
| Earnings per share (EPS) in EUR | 13.55 | 10.00 | +35% | ||||||
* from continuing operations
** in millions of €
Election to the Supervisory Board
After 15 years, Sari Baldauf will leave the Supervisory Board at the end of the Annual Meeting. Stefan Pierer has been proposed for election based on his in-depth industry know-how and his expertise in product and brand development.
“With Sari Baldauf, a highly esteemed colleague is leaving us. For many years, she has played a key role in shaping the work of the Supervisory Board with her broad entrepreneurial knowledge and extensive international experience. On behalf of the entire Supervisory Board, I would like to express my sincere thanks for her outstanding commitment. We wish her all the best for the future and continued success.”
Bernd Pischetsrieder, Chairman of the Supervisory Board of Mercedes-Benz Group AG
Since the Annual Meeting on April 29, 2022, there have been further changes: Gabriela Neher, Works Council Representative at the Mercedes-Benz plant in Rastatt, and Michael Peters, Works Council Chairman at the Mercedes-Benz plant in Bremen, were elected to the Supervisory Board for the first time. Elke Toenjes-Werner, who retires, and Michael Brecht, Chairman of the General Works Council of Daimler Truck AG as well as Deputy Chairman of the Supervisory Board of Daimler Truck Holding AG, will no longer be members of the Supervisory Board.
“I would like to thank the outgoing members of the Supervisory Board for their trust, cooperation and commitment. Special thanks go to Michael Brecht, who has played a key role in shaping and enriching the work of the Supervisory Board for eight years as its Deputy Chairman.”
Bernd Pischetsrieder, Chairman of the Supervisory Board of Mercedes-Benz Group AG
Transformation continues in 2023
On February 22, 2023 the company unveiled plans for a proprietary software operating system: MB.OS is based on a new purpose-built chip-to-cloud architecture designed to deliver exceptional software capabilities. As part of the strategy presentation, Mercedes-Benz and Google announced a long-term strategic partnership in the area of mapping.
At its ESG (Environmental, Social and Governance) Conference 2023, Mercedes‑Benz underlined measures aimed at reducing the carbon footprint and creating lasting value for all stakeholders. Some examples of their efforts: By the end of 2023, the new battery recycling factory in Kuppenheim, Germany, will start ramping up operations. Expanding the energy portfolio to include wind power from onshore and offshore wind farms is another focus in the company’s energy strategy. In 2022, the company signed a contract with Canadian-German start-up Rock Tech Lithium for the supply of an average 10,000 tonnes lithium hydroxide per year starting in 2026. Finally, as part of its transformation efforts Mercedes-Benz will invest more than €1.3 billion in the qualification, training and continuing education of its employees by 2030.
On its way to an all-electric future Mercedes-Benz currently offers 7 fully electric cars and 4 vans. To accelerate the transition to electric vehicles, the company announced plans to launch a global high-power charging network across North America, Europe, China and other key markets before the end of the decade, when Mercedes-Benz intends to go all-electric wherever market conditions allow.
SOURCE: Mercedes-Benz
