Interim Report

Q3 2023
 Interim Report Q3 2023 · Mercedes-Benz Group

Contents
KEY FIGURES 3

REPORTING PRINCIPLES 7

INTERIM GROUP MANAGEMENT REPORT 8 – 33

Important events 8
Business development 12
Profitability 16
Cash flows 22
Financial position 28
Outlook 31
Risk and opportunity report 33

INTERIM CONSOLIDATED FINANCIAL STATEMENTS 34 – 62

Consolidated Statement of Income/Loss 34
Consolidated Statement of Comprehensive Income/Loss 36
Consolidated Statement of Financial Position 38
Consolidated Statement of Cash Flows 40
Consolidated Statement of Changes in Equity 41
Notes to the Interim Consolidated Financial Statements 43

AUDITOR’S REVIEW REPORT 63

INFORMATION ON THE INTERNET 64

2
 Interim Report Q3 2023 Mercedes-Benz Group
Key Figures

Key Figures
Mercedes-Benz Group in the third quarter

A.01
Q3 2023 Q3 2022 Change
In millions of euros in %

Revenue 37,200 37,716 -1

EBIT 4,842 5,196 -7
Adjusted EBIT 4,915 5,344 -8
Net profit 3,719 3,998 -7
Earnings per share (in euros) 1
3.44 3.66 -6
Free cash flow of the industrial business 2,347 3,016 -22
Adjusted free cash flow of the industrial business 2,449 3,309 -26
Net liquidity of the industrial business (30 Sept.) 28,485 23,303 +22
Investments in property, plant and equipment 934 795 +17
Research and development expenditure 2,525 2,335 +8
1 Based on net profit attributable to shareholders of Mercedes-Benz Group AG.

3
 Interim Report Q3 2023 Mercedes-Benz Group
Key Figures

Divisions in the third quarter

A.02
Q3 2023 Q3 2022 Change
In millions of euros in %

Mercedes-Benz Cars
Unit sales (in units) 510,564 530,414 -4
Revenue 27,131 28,209 -4
EBIT 3,312 4,034 -18
Adjusted EBIT 3,357 4,081 -18
Return on sales (in %) 12.2 14.3 .
Adjusted return on sales (in %) 12.4 14.5 .
CFBIT 2,148 3,374 -36
Adjusted CFBIT 2,195 3,552 -38
Adjusted cash conversion rate1 0.7 0.9 .
Investments in property, plant and equipment 822 732 +12
Research and development expenditure 2,373 2,172 +9
thereof capitalized development costs 943 737 +28

Mercedes-Benz Vans
Unit sales (in units) 105,083 103,978 +1
Revenue 4,939 4,309 +15
EBIT 715 497 +44
Adjusted EBIT 743 546 +36
Return on sales (in %) 14.5 11.5 .
Adjusted return on sales (in %) 15.0 12.7 .
CFBIT 980 434 +126
Adjusted CFBIT 1,035 529 +96
Adjusted cash conversion rate1 1.4 1.0 .
Investments in property, plant and equipment 90 55 +64
Research and development expenditure 152 148 +3
thereof capitalized development costs 41 73 -44

Mercedes-Benz Mobility
Revenue 6,561 6,599 -1
EBIT 363 577 -37
Adjusted EBIT 363 577 -37
Return on equity (in %) 10.4 15.8 .
Adjusted return on equity (in %) 10.4 15.8 .
New business 15,183 14,255 +7
1 The adjusted cash conversion rate is the ratio of adjusted CFBIT to adjusted EBIT.

4
 Interim Report Q3 2023 Mercedes-Benz Group
Key Figures

Mercedes-Benz Group in the first nine months

A.03
Q1-3 2023 Q1-3 2022 Change
In millions of euros in %

Revenue 112,957 109,014 +4

EBIT 15,334 15,047 +2
Adjusted EBIT 15,548 15,584 -0
Net profit 11,371 10,782 +5
Earnings per share (in euros)1 10.47 9.83 +6
Free cash flow of the industrial business 7,874 5,649 +39
Adjusted free cash flow of the industrial business 8,173 6,588 +24
Net liquidity of the industrial business (30 Sept.) 28,485 23,303 +22
Investments in property, plant and equipment 2,559 2,427 +5
Research and development expenditure 7,418 6,468 +15
Employees (30 Sept.)2 167,397 170,166 -2
1 Based on net profit attributable to shareholders of Mercedes-Benz Group AG.
2 Active workforce without holiday workers.

5
 Interim Report Q3 2023 Mercedes-Benz Group
Key Figures

Divisions in the first nine months

A.04
Q1-3 2023 Q1-3 2022 Change
In millions of euros in %

Mercedes-Benz Cars
Unit sales (in units) 1,529,793 1,504,538 +2
Revenue 83,187 81,044 +3
EBIT 11,312 12,097 -6
Adjusted EBIT 11,282 12,157 -7
Return on sales (in %) 13.6 14.9 .
Adjusted return on sales (in %) 13.6 15.0 .
CFBIT 8,898 7,614 +17
Adjusted CFBIT 9,057 8,180 +11
Adjusted cash conversion rate1 0.8 0.7 .
Investments in property, plant and equipment 2,333 2,305 +1
Research and development expenditure 6,795 5,982 +14
thereof capitalized development costs 2,325 2,006 +16
Employees (30 Sept.) 3
133,656 136,801 -2

Mercedes-Benz Vans
Unit sales (in units) 323,473 292,611 +11
Revenue 14,677 12,103 +21
EBIT 2,283 1,227 +86
Adjusted EBIT 2,254 1,426 +58
Return on sales (in %) 15.6 10.1 .
Adjusted return on sales (in %) 15.4 11.8 .
CFBIT 2,167 1,066 +103
Adjusted CFBIT 2,304 1,299 +77
Adjusted cash conversion rate 1
1.0 0.9 .
Investments in property, plant and equipment 196 105 +87
Research and development expenditure 578 427 +35
thereof capitalized development costs 213 111 +92
Employees (30 Sept.) 3
19,214 19,189 +0

Mercedes-Benz Mobility
Revenue 19,706 20,096 -2
EBIT 1,074 1,934 -44
Adjusted EBIT 1,350 1,934 -30
Return on equity (in %) 10.3 17.7 .
Adjusted return on equity (in %) 12.9 17.7 .
New business 45,299 42,910 +6
Contract volume (30 Sept.)2 133,840 135,731 -1
Employees (30 Sept.)3 9,942 9,775 +2
1 The adjusted cash conversion rate is the ratio of adjusted CFBIT to adjusted EBIT.
2 Contract volume at 31 December 2022: €132,379 million.
3 Active workforce without holiday workers.

6
 Interim Report Q3 2023 · Mercedes-Benz Group
Reporting principles

Reporting principles
The Interim Report as of 30 September 2023 of The Group comprises the segments Mercedes-Benz Cars,
Mercedes-Benz Group AG comprises an Interim Group Mercedes-Benz Vans and Mercedes-Benz Mobility.
Management Report as well as condensed Interim The reconciliation of the segments for the Group (recon-
Consolidated Financial Statements (Interim Financial ciliation) presents the functions and services provided by
Statements). In keeping with IAS 34 (Interim Financial the Group’s headquarters. In addition, it includes equity
Reporting), the Interim Financial Statements have been investments that are not allocated to the segments,
prepared in accordance with the International Financial effects at the corporate level and the impact on earnings
Reporting Standards (IFRS) of the International Account- of eliminating intra-Group transactions between the
ing Standards Board (IASB) and their interpretations segments.
as endorsed by the European Union (EU) and effective at
the reporting date. This Interim Report also complies The Interim Report is presented in euros (€). Unless
with the requirements of the German Securities Trading otherwise stated, all amounts are stated in millions of
Act (WpHG) and with German Accounting Standard euros. All figures shown are commercially rounded.
No. 16 (GAS 16 — Interim Financial Reporting) issued by
the German Accounting Standards Committee (GASC). The Board of Management authorized the Interim Report
for publication on 25 October 2023. It is published in
This Interim Report should be read in conjunction with German and English. The German version is binding.
the Annual Report for financial year 2022 and the addi-
tional information contained therein. The Interim Report was reviewed by the Group auditor.

Forward-looking statements
This document contains forward-looking statements that reflect our current views about future events. The words “anticipate”, “assume”, “believe”, “esti-
mate”, “expect”, “intend”, “may”, “can”, “could”, “plan”, “project”, “should” and similar expressions are used to identify forward-looking statements. These
statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand
in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural
disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or finan-
cial services activities; changes in currency exchange rates, customs and foreign trade provisions; a shift in consumer preferences towards smaller, lower-
margin vehicles; a limited demand for battery electric vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve
prices and adequately utilize our production capacities; price increases for fuel, raw materials or energy; disruption of production due to shortages of materi-
als or energy, labour strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and effi-
ciency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic
cooperations and joint ventures; changes in laws, regulations and government policies (or changes in their interpretation), particularly those relating to vehi-
cle emissions, fuel economy and safety or to ESG reporting (environmental, social or governance topics); the resolution of pending governmental investiga-
tions or of investigations requested by governments and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties,
some of which are described under the heading “Risk and Opportunity Report” in the current Annual Report or in this Interim Report. If any of these risks and
uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially
different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since
they are based solely on the circumstances at the date of publication.

7
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Interim Group Management Report

Important events Mercedes-Benz and Google form partnership for
next-generation vehicle navigation
As announced on 22 February 2023, the Mercedes-Benz
First quarter 2023 Group plans to integrate innovative vehicle-related
geospatial data and route planning capabilities from
Creation of a global high-power charging network the Google Maps platform into the Mercedes-Benz Oper-
On 5 January 2023, the Mercedes-Benz Group ating System (MB.OS). With this partnership, the Group
announced far-reaching plans to build a high-power plans to become the first automaker to develop its own
charging network in North America, Europe, China navigation experience based on a new concept that
and other core markets. The goal is to create a global combines new in-vehicle geospatial data and navigation
charging network by the end of the decade. features from the Google Maps platform.

Certification granted for SAE Level 3 system for The system is to be introduced in the middle of the dec-
US market ade with the new MMA (Mercedes Modular Architecture)
On 26 January 2023, the Mercedes-Benz Group became platform. MB.OS was designed and developed in-house
the world's first automaker to receive SAE Level 31 certi- at Mercedes-Benz. This was done to give the Company
fication for conditionally automated driving on US roads complete control over the customer relationship as well
in the state of Nevada. The “DRIVE PILOT” was released as ensure data privacy and the unparalleled integration
for sale in Germany in May 2022 after the German Fed- of all vehicle functions.
eral Motor Transport Authority issued the SAE Level 3
system a licence to operate on the basis of the inter- Foundation laid for sustainable battery recycling
‘nationally valid regulation UN-R157. factory
On 3 March 2023, the Mercedes-Benz Group laid the
Mercedes-Benz Group AG decides on share buyback symbolic foundation stone for a battery recycling factory
programme at the Kuppenheim site. The Company is thus underpin-
With the approval of the Supervisory Board, the Board ning its goal of ensuring a sustainable closure of the
of Management resolved a share buyback programme recycling loop for batteries and significantly reducing
on 16 February 2023. On 3 March 2023, the company resource consumption.
started to acquire treasury shares on the stock ex-
change. Treasury shares worth up to €4 billion (excluding The Group plans to invest an eight-digit euro sum in the
incidental costs) are to be purchased over a period of up construction of the net CO2-neutral plant. For the first
to two years and subsequently cancelled. stage of the plant (mechanical dismantling facility)
commissioning is scheduled to start as early as the end
Further information on this is provided in Note 15 of the of this year. Subject to discussions with the government
Notes to the Interim Consolidated Financial Statements. authorities, the pilot plant is to be rounded out by a
hydrometallurgical facility just a few months later.

1 The automated driving function takes over certain driving tasks. Nevertheless, a driver is
still necessary. The driver must be ready to take control of the vehicle at any time when
prompted by the vehicle to intervene.

8
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Mercedes-Benz underscores ESG commitment with Second quarter 2023

significant achievements and measurable targets
At the ESG (Environmental, Social and Governance) Sale of shares in the Russian subsidiaries
Conference on 30 March 2023, the Board of Manage- As reported in the Annual Report 2022, the Group had
ment of the Mercedes-Benz Group emphasized to intended to withdraw from the Russian market and sell
investors and analysts its measures for reducing its its shares in the Russian subsidiaries to the local investor
CO2 footprint and creating sustainable value for all Avtodom AO. In March 2022, the Mercedes-Benz Group
stakeholders. had already stopped exporting cars and vans to Russia
and ceased local production in Russia.
The key measures are to accelerate electrification with a
growing portfolio and dedicated fast-charging network, As of 31 December 2022, completion of the transaction
to promote supply chain decarbonization and resource was still subject to authorities’ approval and the imple-
conservation through the use of renewable energy mentation of the contractually agreed conditions. With
sources and responsible sourcing of raw materials, and the closing of the transaction on 19 April 2023, the
to forge ahead with the creation of a circular economy shares of Russian subsidiaries were deconsolidated.
and the direct sourcing of raw materials. The Company
also aims to reduce CO2 emissions in production by Further information on this is provided in Note 2 of the
80% by 20301. Notes to the Interim Consolidated Financial Statements.

Alongside other measures such as investments in social Annual General Meeting of Mercedes-Benz Group AG
commitment and the environment, the Company has At the Annual General Meeting of Mercedes-Benz Group
added additional ESG metrics to the variable component AG on 3 May 2023, the shareholders approved a divi-
of executive compensation and has indicated the dend of €5.20 per share for the financial year 2022
governance structures that were implemented. (2021: €5.00). The total payout for 2022 was €5.6 billion
(2021: €5.3 billion).
The participation of Supervisory Board member Dame
Veronica Anne Courtice reinforces the embedding of At Mercedes-Benz Group AG, a position on the Super-
sustainability in the Company’s strategy, business visory Board was also refilled: Sari Baldauf stepped
processes and remuneration system. down from the Board after 15 years at the end of the
Annual General Meeting of Mercedes-Benz Group AG on
The Mercedes-Benz Group has engaged CICERO Shades 3 May 2023. Stefan Pierer was elected as Baldauf’s
of Green, now part of S&P Global, an expert in research- successor on the Supervisory Board.
based assessment of green finance frameworks, to
review the Mercedes-Benz Group framework. The
Mercedes-Benz Group framework has received the
highest rating of “Dark Green” from CICERO.

1 In comparison to 2018.

9
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

CO2 reduction in the aluminium supply chain Mercedes-Benz expands charging options for custom-
The Mercedes-Benz Group is working with its partners to ers: Access to Tesla Superchargers in North America
decarbonize the aluminium supply chain. As reported in On 5 January 2023, the Mercedes-Benz Group had
the Annual Report 2022, Mercedes-Benz AG and the Nor- already announced the development of its own global
wegian aluminium producer Norsk Hydro ASA (Hydro) high-power charging network with around 400 charging
signed a letter of intent in December 2022 for a low-CO₂ stations and more than 2,500 charging points in North
technology roadmap between 2023 and 2030. America. In addition, the Mercedes-Benz Group an-
nounced on 7 July 2023 that Mercedes-Benz customers
The Mercedes-Benz Group already purchases CO₂- will be able to use Tesla Superchargers in North America
reduced aluminium from Hydro. As a next milestone, from 2024.
the Group announced on 9 May 2023 that Hydro should
supply even more CO₂-reduced aluminium to the foundry Automakers unite to create a leading high-powered
at the Mercedes-Benz plant in Untertürkheim: With charging network across North America
a minimum of 25% recycled material in Hydro's tested Seven automakers – BMW Group, General Motors,
aluminium, the CO2 footprint should be reduced. Honda, Hyundai, Kia, Mercedes-Benz Group, Stellantis
NV – are planning to form a joint venture to accelerate
Following the completion of the successful test phase the transition to electric vehicles in North America. The
for the low-CO2 aluminium, the Company plans to bring joint venture is targeting to install a charging network
sophisticated structural castings for the body-in-white with at least 30,000 charging points. The joint venture
made from the more sustainable material into series is expected to be established later this year, subject to
production this year. regulatory approvals. The first stations are expected
to open in the United States in the summer of 2024 and
Mercedes-Benz Vans Strategy Update in Canada at a later stage. In line with the sustainability
At the Strategy Update on 16 May 2023, Mercedes-Benz strategies of all seven automakers, the joint venture in-
Vans unveiled its focused strategy, which is geared tends to power the charging network solely by renewable
towards profitable growth in both the private and com- energy.
mercial van segments. Key objectives include further
strengthening the brand’s position in the upper market
segments, increasing competitiveness in terms of
costs, and leading the way in electromobility and digital
experiences.

Supply agreement and memorandum of understand-

ing to establish a North American supply chain
between Mercedes-Benz AG and H2 Green Steel
The Mercedes-Benz Group announced on 7 June 2023
that it had signed a supply agreement with Swedish
startup H2 Green Steel AB (H2GS) for approximately
50,000 metric tons of nearly CO₂-free steel per year
for its European stamping plants. At the same time, the
two companies are deepening their partnership with
a memorandum of understanding to jointly establish a
sustainable steel supply chain in North America.

Following the investment in H2GS in 2021, the new sup-

ply agreement will enable Mercedes-Benz to use virtually
CO₂-free steel in series production. The strategic partner
plans to start production in 2025.

10
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Third quarter 2023 Supply contract with Steel Dynamics

On 14 September 2023, the Mercedes-Benz Group
Resolutions of the Supervisory Board signed a supply contract with Steel Dynamics, Inc. for
At its meeting on 27 July 2023, the Supervisory Board CO₂-reduced steel for the production plant in Tusca-
reappointed Ola Källenius as Chairman of the Board of loosa, Alabama (USA). In this way, the Company wants to
Management of Mercedes-Benz Group AG for the period reach another milestone on the path to decarbonizing
until 21 May 2029. At the same time, the Supervisory the global steel supply chain.
Board extended Markus Schäfer’s contract until 21 May
2026. As Chief Technology Officer, Markus Schäfer is Mercedes-Benz announces the availability of DRIVE
responsible for Development & Procurement on the PILOT in the United States
Board of Management. As reported in January 2023, the Mercedes-Benz Group
has received SAE Level 31 certification for conditionally
The Supervisory Board also decided to establish a cross- automated driving on US roads in the state of Nevada.
divisional steering and coordination function for sustain- In June 2023, it also received the certification for the
ability management in the Company at the Board of Man- state of California. The Mercedes-Benz Group now plans
agement level. On 1 August 2023, Renata Jungo Brüngger to introduce the production-ready version of the DRIVE
took over responsibility for this function as part of PILOT with a small fleet of SAE Level 31 EQS sedans in
the Integrity, Governance & Sustainability division (previ- the states of California and Nevada from the end of
ously: Integrity & Legal Affairs). With this step, the 2023.
Mercedes-Benz Group is taking into account the steadily
increasing complexity and growing legal significance of
this multi-faceted topic.

At its meeting, the Supervisory Board also resolved to

rename Jörg Burzer’s division as Production, Quality &
Supply Chain Management (previously: Production &
Supply Chain Management). As a result of this change,
the division’s name will also express the division’s com-
prehensive responsibility for quality as well as this
topic’s great importance for the Mercedes-Benz brand.

Sabine Kohleisen’s division was renamed Human Rela-

tions (previously: Human Resources) in order to show
that human resources work in the Group focuses on the
cooperation with and between people.

1
The automated driving function takes over certain driving tasks. Nevertheless, a driver is
still necessary. The driver must be ready to take control of the vehicle at any time when
prompted by the vehicle to intervene.

11
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Business development Unit sales

Mercedes-Benz Cars sold 510,600 units in the third

Automotive markets quarter of 2023 (Q3 2022: 530,400). Due to the limited
availability of the GLC and the E-Class as a result of
The development of the world economy continued to supply bottlenecks at a supplier, unit sales in the third
be rather subdued in the third quarter of 2023 and was quarter were 4% below the prior-year quarter.
thus also noticeably below its long-term trend growth in
the first nine months of the year as a whole. The Euro- A total of 164,200 vehicles (Q3 2022: 146,100) were sold
pean economy continued to develop weakly, while the in Europe (European Union, United Kingdom, Switzerland
Chinese economy recently improved somewhat and the and Norway). Germany was the main contributor, with
US economy continued to be unexpectedly robust. growth of 11% to 53,800 units. In China, the single largest
Inflation rates continued to gradually decline, but in market for Mercedes-Benz Cars, unit sales totalled
many places they remained at exceptionally high levels. 196,000 vehicles (Q3 2022: 222,600). In North America,
Accordingly, major central banks continued their unit sales totalled 74,900 vehicles (Q3 2022: 86,200).
restrictive monetary policies. Unit sales in the region’s main market, the United States,
amounted to 64,000 vehicles (Q3 2022: 74,900).
The conditions for the automotive markets continued
to be characterized by the easing of global supply chains As a result of the ongoing transformation to electric
and the further normalization of production. Overall, mobility, all-electric vehicles’ share of total unit sales
the global car market in the third quarter of 2023 was increased significantly compared to the same period last
significantly above the level of the same period of the year (Q3 2023: 12%; Q3 2022: 7%).
previous year and this was also the case for the first nine
months of the year. A comparatively favourable market In the first nine months of 2023, Mercedes-Benz Cars
trend was observed across the major sales regions. In recorded unit sales at around the previous year’s level
the third quarter, the European market significantly with an increase of 2% (Q1-3 2023: 1,529,800; Q1-3 2022:
exceeded the level of the previous year. The US market 1,504,500). The growth in unit sales was mainly attributa-
for light vehicles also recorded significant growth in the ble to Top-End vehicles and vehicles in the Entry product
past quarter. The Chinese car market was at the prior- category.
year level.
Unit sales of Mercedes-Benz Cars in Europe (European
Important van markets developed favourably in the past Union, United Kingdom, Switzerland and Norway) in-
quarter and in the first nine months of 2023 as a whole. creased significantly in the first nine months of 2023
In the Europe region, the market for mid-size and large compared to the same period last year (Q1-3 2023:
vans overall was significantly above that of the previous 485,200; Q1-3 2022: 447,400). Strong growth of 18% to
year in the third quarter. The segment for small vans also 172,900 units was recorded in Germany (Q1-3 2022:
grew substantially. The US market for large vans contin- 146,000). In China, unit sales totalled 570,600 vehicles
ued to show strong signs of recovery in the third quarter (Q1-3 2022: 573,300). In North America, unit sales
and greatly surpassed the prior-year level. Strong growth totalled 248,800 vehicles (Q1-3 2022: 256,700). At
was recorded in the Chinese market for mid-size vans. 216,700 units (Q1-3 2022: 222,900), unit sales in the re-
However, growth there in the third quarter continued to gion’s main market, the United States, were slightly lower
be driven primarily by new vehicle models in the market than in the previous year. The significant decline in unit
segment relevant to Mercedes-Benz Vans. sales in the rest of the world was due in particular to the
discontinuation of business activities in Russia since
March 2022.

12
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

All-electric vehicles’ share of total unit sales reached 11%

in the first nine months of 2023 (Q1-3 2022: 6%).

C.01
Mercedes-Benz Cars unit sales
Q3 2023 Q3 2022 Change Q1-3 2023 Q1-3 2022 Change
In units in % in %

Total unit sales of Mercedes-Benz Cars 510,564 530,414 -4 1,529,793 1,504,538 +2

Top-End 1
69,900 78,848 -11 246,464 232,381 +6
% share of unit sales 13.7 14.9 16.1 15.4
Core2 290,154 293,298 -1 815,345 846,066 -4
% share of unit sales 56.8 55.3 53.3 56.2
Entry3 150,510 158,268 -5 467,984 426,091 +10
% share of unit sales 29.5 29.8 30.6 28.4

thereof
Electrified vehicles (xEVs) 102,292 84,850 +21 289,900 222,444 +30
Battery electric vehicles (BEVs) 61,621 37,069 +66 174,471 95,688 +82
Plug-in hybrid vehicles (PHEVs) 40,671 47,781 -15 115,429 126,756 -9
% share of unit sales 20.0 16.0 19.0 14.8
1 Mercedes-AMG, Mercedes-Maybach, G-Class, S-Class, GLS, EQS and EQS SUV.
2 All derivatives of the C-Class and E-Class, including the EQC, EQE and EQE SUV.
3 All derivatives of the A-Class and B-Class, including the EQA, EQB and smart.

Mercedes-Benz Vans sold 105,100 units worldwide in At 197,700 units, unit sales in Europe (European Union,
the third quarter of 2023 (Q3 2022: 104,000). United Kingdom, Switzerland and Norway) were 12%
above the first nine months of the prior year (Q1-3 2022:
Unit sales in Europe (European Union, United Kingdom, 176,200). Mercedes-Benz Vans sold 80,100 units (Q1-3
Switzerland and Norway) totalled 58,100 units (Q3 2022: 2022: 72,400) in Germany. In the United States,
63,500). Here, Mercedes-Benz Vans sold 25,800 units Mercedes-Benz Vans achieved sales growth of 13% with
(Q3 2022: 28,300) in Germany. In the United States, how- unit sales of 56,000 (Q1-3 2022: 49,700). In China, unit
ever, Mercedes-Benz Vans recorded a 41% increase, to sales totalled 25,800 vehicles (Q1-3 2022: 27,500).
21,800 units (Q3 2022: 15,500). In China, unit sales
totalled 10,000 (Q3 2022: 11,700). Total sales of all-electric vans rose to 15,000 units in the
first nine months of 2023 (Q1-3 2022: 10,300), leading to
Global sales of all-electric vans increased to 6,300 units all-electric models accounting for 5% of global unit sales
in the third quarter of 2023 (Q3 2022: 3,100). All-electric (Q1-3 2022: 4%).
models thus accounted for a 6% share of total unit sales
(Q3 2022: 3%).

Mercedes-Benz Vans also increased total unit sales sig-

nificantly by 11% to 323,500 units in the first nine months
of 2023 (Q1-3 2022: 292,600). The main contributors
were the commercial variants.

13
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

At €15.2 billion (Q3 2022: €14.3 billion), new business at Investment and research activities
Mercedes-Benz Mobility in the third quarter of 2023
was slightly higher than in the prior-year period. The investments in property, plant and equipment of
the Mercedes-Benz Group amounted to €0.9 billion in
This caused new business in the German market to rise the third quarter of 2023 (Q3 2022: €0.8 billion). In the
year-on-year by 3%. New business in the United States first nine months of 2023 investments in property, plant
increased by 22% compared to the same quarter of and equipment by the Group amounted to €2.6 billion
the previous year. This increase was driven by a clear (Q1-3 2022: €2.4 billion).
positive development in the proportion of leased and
financed vehicles in the Group’s unit sales. In China, on Investments in property, plant and equipment at
the other hand, there was a decline in new business in Mercedes-Benz Cars were dominated by the new vehi-
the third quarter of 2023 by 23% due to increased com- cle architectures in both the third quarter and the first
petition in the financial services sector. nine months of 2023. At Mercedes-Benz Vans, the main
driver of investment was again the planned transfor-
At €45.3 billion, new business at Mercedes-Benz Mobility mation to an all-electric Mercedes-Benz van fleet.
in the first nine months of 2023 was slightly higher than
in the prior-year period.

Supported by a significant increase in unit sales in the

German market, new business there rose year-on-year by
9% in the first nine months 2023. Driven by a positive
trend in the share of leased and financed vehicles in the
Group’s sales, new business in the United States also in-
creased significantly (+23%). In China, on the other hand,
increased competition in the financial services sector
caused new business to decline in the first nine months
of 2023 by 24%.

At 30 September 2023, contract volume amounted to

€133.8 billion and was thus at the level of 31 December
2022.

14
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

The research and development expenditure of the At Mercedes-Benz Cars as well as Mercedes-Benz
Mercedes-Benz Group amounted to €2.5 billion in the Vans, the focus of research and development activities in
third quarter of 2023 (Q3 2022: €2.3 billion), of which the third quarter and the first nine months of 2023 was
€1.0 billion (Q3 2022: €0.8 billion) was capitalized. In the on electric drives, digitalization and automated driving.
first nine months of 2023, research and development The increase was mainly due to higher costs for new
expenditure amounted to €7.4 billion (Q1-3 2022: €6.5 vehicles and for future technologies.
billion), of which €2.5 billion (Q1-3 2022: €2.1 billion) was
capitalized.

C.02
Investments in property, plant and equipment1
Q3 2023 Q3 2022 Change Q1-3 2023 Q1-3 2022 Change
In millions of euros in % in %

Mercedes-Benz Group 934 795 +17 2,559 2,427 +5

thereof Mercedes-Benz Cars 822 732 +12 2,333 2,305 +1
thereof Mercedes-Benz Vans 90 55 +64 196 105 +87
1 The investments in property, plant and equipment correspond to additions to property, plant and equipment in the Consolidated Statement of Cash Flows in the Interim Financial
Statements.

C.03
Research and development
Q3 2023 Q3 2022 Change Q1-3 2023 Q1-3 2022 Change
In millions of euros in % in %

Research and development expenditure at

Mercedes-Benz Group 2,525 2,335 +8 7,418 6,468 +15
thereof Mercedes-Benz Cars 2,373 2,172 +9 6,795 5,982 +14
thereof Mercedes-Benz Vans 152 148 +3 578 427 +35
Research and non-capitalized development costs 1,541 1,525 +1 4,880 4,351 +12
Capitalized development costs 984 810 +21 2,538 2,117 +20

Capitalization rate in % 39 35 34 33

15
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Profitability, cash flows and Profitability

financial position
Consolidated Statement of Income of the
To provide a better insight into the Group’s profitability, Mercedes-Benz Group for the three-month period
cash flows and financial position, the condensed Consol- ended 30 Sept 2023
idated Statement of Income/Loss, the condensed Con-
solidated Statement of Cash Flows and the condensed Revenue of €37,200 million in the third quarter of 2023
Consolidated Statement of Financial Position are shown was on the same level as the prior-year quarter of
for the industrial business and for Mercedes-Benz Mobil- €37,716 million despite slightly decreased unit sales.
ity as well as for the Mercedes-Benz Group. The indus-
trial business comprises the segments Mercedes-Benz Cost of sales were at the prior-year level in the third
Cars and Mercedes-Benz Vans. Mercedes-Benz Mobility quarter of 2023.
is identical to the Mercedes-Benz Mobility segment. The
effects from intra-Group eliminations between the indus- Gross profit in relation to revenue in the third quarter
trial business and Mercedes-Benz Mobility, as well as of 2023 was slightly below the level of the same quarter
items at the corporate level, are generally allocated of the previous year. This was primarily due to an unfa-
to the industrial business. In justified individual cases, vourable product mix and higher expenses to suppliers
effects on the profitability, cash flows and financial for additional costs due to inflation and the supply chain.
position are not assigned to the corresponding segment
according to a legal perspective; instead the segment The total other functional costs were at the prior-year
reporting follows an economic perspective. level as the same quarter of the previous year.

In order to provide a more transparent presentation of The other operating income/expense in the third quar-
the ongoing business, adjusted figures are also calcu- ter of 2023 was significantly above the level of the same
lated and reported for both the Group and the segments. quarter of the previous year. This was primarily due to
The adjustments include individual items insofar as they lower overall expenses in connection with ongoing
lead to material effects in a reporting year. These individ- governmental and court proceedings and measures
ual items can relate in particular to legal proceedings and taken relating to Mercedes-Benz diesel vehicles.
related measures, restructuring measures and M&A
transactions. Further information on the performance In particular, the higher proportional contribution
measurement system can be found in the Annual Report of the investment in Daimler Truck Holding AG led to
2022 in the Corporate Profile chapter of the Combined a significant increase in the gains/losses on equity-
Management Report with Non-Financial Declaration. method investments.

The other financial income in the third quarter of 2023

amounted to €36 million (Q3 2022: €58 million).

EBIT amounted to €4,842 million in the third quarter of

2023 and was thus 7% below the prior-year level of
€5,196 million. Exchange-rate effects had a negative net
impact.

16
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Due to the global increase in interest rates, net interest The calculation of earnings per share (basic) is based on
income/expense improved in the third quarter of 2023 an average number of outstanding shares of 1,057.2 mil-
to an income of €138 million (Q3 2022: expense of lion (Q3 2022: 1,069.8 million).
€30 million).
Table C.04 shows the condensed Consolidated State-
The income tax expense recognized in the third quarter ment of Income/Loss of the Mercedes-Benz Group as
of 2023 amounted to €1,261 million (Q3 2022: €1,168 mil- well as of the industrial business and Mercedes-Benz
lion). The tax rate was 25.3% (Q3 2022: 22.6%). Mobility.

Net profit amounted to €3,719 million in the third quar- Table C.05 shows the composition of Group EBIT and the
ter of 2023 (Q3 2022: €3,998 million). Non-controlling EBIT of the individual segments as well as the reconcilia-
interests accounted for a profit of €83 million (Q3 2022: tion and the reconciliation of EBIT to adjusted EBIT.
€75 million). The share of net profit attributable to
shareholders of Mercedes-Benz Group AG amounted Further information on the items in the Consolidated
to €3,636 million (Q3 2022: €3,923 million). This led to a Statement of Income/Loss can be found in the respec-
decrease in earnings per share to €3.44 (Q3 2022: tive notes in the Notes to the Interim Consolidated
€3.66).] Financial Statements.

C.04
Condensed Consolidated Statement of Income/Loss for the three-month period ended 30 Sept
Mercedes-Benz Industrial Business Mercedes-Benz
Group Mobility
Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022
In millions of euros

Revenue 37,200 37,716 30,639 31,117 6,561 6,599

Cost of sales -29,166 -28,934 -23,327 -23,316 -5,839 -5,618
Gross profit 8,034 8,782 7,312 7,801 722 981
Selling expenses -2,368 -2,456 -2,198 -2,279 -170 -177
General administrative expenses -606 -614 -399 -436 -207 -178
Research and non-capitalized development costs -1,541 -1,525 -1,541 -1,525 - -
Other operating income/expense 454 232 429 208 25 24
Gains/losses on equity-method investments, net 833 719 841 794 -8 -75
Other financial income/expense, net 36 58 35 56 1 2
EBIT 4,842 5,196 4,479 4,619 363 577
Interest income/expense 138 -30 138 -28 - -2
Profit before income taxes 4,980 5,166 4,617 4,591 363 575
Income taxes -1,261 -1,168 -1,157 -990 -104 -178
Net profit 3,719 3,998 3,460 3,601 259 397
thereof profit attributable to non-controlling interests 83 75
thereof profit attributable to shareholders of Mercedes-Benz Group AG 3,636 3,923

Earnings per share (in euros)

for profit attributable to shareholders of Mercedes-Benz Group AG
Basic 3.44 3.66
Diluted 3.44 3.66

17
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

EBIT of the segments for the three-month period In the third quarter of 2023, the Mercedes-Benz
ended 30 Sept 2023 Mobility segment reported a significant decline in
adjusted EBIT. The segment's earnings were primarily
In the third quarter of 2023, the Mercedes-Benz Cars influenced by the following factors:
segment reported a significant decline in adjusted EBIT,
which was influenced by the following material factors: • Interest margin impacted by higher refinancing costs
and increased competition in the financial services
• Improved net pricing sector

• Lower raw material prices • Negative development of exchange rates

• Unfavourable product mix • Expenses for ramp-up of charging business

• Slightly decreased unit sales due to supply bottlenecks • Slightly higher cost of credit risk mainly due to a
at one supplier challenging macroeconomic environment worldwide

• Higher expenses to suppliers for additional costs due • Lower result from equity-method investments in the
to inflation and the supply chain prior year

• Negative development of exchange rates In the third quarter of 2023, the EBIT of the reconcilia-
tion in particular includes the positive earnings contribu-
In the third quarter of 2023, the following adjustment is tion of the equity-method investment in Daimler Truck
included in EBIT: Holding AG. Earnings in the previous year’s quarter were
affected by expenses in connection with the sale of indi-
• Expenses in connection with ongoing governmental vidual investments and business activities to Daimler
and court proceedings and measures taken relating to Truck.
Mercedes-Benz diesel vehicles

The Mercedes-Benz Vans segment was able to achieve

an adjusted EBIT significantly above the level of the
prior-year period. The development of earnings showed
the following main influencing factors:

• Strongly improved net pricing

• Significantly improved product mix

• Lower raw material prices

• Higher expenses to suppliers for additional costs due

to inflation and the supply chain

In the third quarter of 2023, the following adjustment is

included in EBIT:

• Expenses in connection with ongoing governmental

and court proceedings and measures taken relating to
Mercedes-Benz diesel vehicles

18
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

C.05
EBIT for the three-month period ended 30 Sept
Mercedes-Benz Mercedes-Benz Mercedes-Benz Mercedes-Benz Reconciliation
Group Cars Vans Mobility
In millions of euros

Q3 2023
Revenue 37,200 27,131 4,939 6,561 -1,431
Cost of sales -29,166 -21,012 -3,795 -5,839 1,480
Gross profit 8,034 6,119 1,144 722 49
Selling expenses -2,368 -1,903 -348 -170 53
General administrative expenses -606 -331 -72 -207 4
Research and non-capitalized development costs -1,541 -1,430 -111 - -
Other income/expense 1,323 857 102 18 346
EBIT 4,842 3,312 715 363 452
Legal proceedings (and related measures) 73 45 28 - -
Restructuring measures - - - - -
M&A transactions - - - - -
Expenses in connection with adjustments of the business activities
in Russia - - - - -
Adjusted EBIT 4,915 3,357 743 363 452

Return on sales/return on equity (in %) 12.2 14.5 10.4

Adjusted return on sales/return on equity (in %) 1
12.4 15.0 10.4

Q3 2022
Revenue 37,716 28,209 4,309 6,599 -1,401
Cost of sales -28,934 -21,226 -3,456 -5,618 1,366
Gross profit 8,782 6,983 853 981 -35
Selling expenses -2,456 -1,953 -329 -177 3
General administrative expenses -614 -367 -63 -178 -6
Research and non-capitalized development costs -1,525 -1,435 -75 - -15
Other income/expense 1,009 806 111 -49 141
EBIT 5,196 4,034 497 577 88
Legal proceedings (and related measures) 97 47 49 - 1
Restructuring measures - - - - -
M&A transactions 51 - - - 51
Expenses in connection with adjustments of the business activities
in Russia - - - - -
Adjusted EBIT 5,344 4,081 546 577 140

Return on sales/return on equity (in %) 14.3 11.5 15.8

Adjusted return on sales/return on equity (in %)1 14.5 12.7 15.8
1 Adjusted return on sales is calculated as the ratio of adjusted EBIT to revenue. The adjusted return on equity is determined as the ratio of adjusted EBIT to the average equity of
each quarter.

19
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Tables C.06 and C.07 show the earnings for the first nine
months.

C.06
Condensed Consolidated Statement of Income/Loss for the nine-month period ended 30 Sept
Mercedes-Benz Industrial Business Mercedes-Benz
Group Mobility
Q1-3 2023 Q1-3 2022 Q1-3 2023 Q1-3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

Revenue 112,957 109,014 93,251 88,918 19,706 20,096

Cost of sales -86,559 -83,766 -69,309 -66,720 -17,250 -17,046
Gross profit 26,398 25,248 23,942 22,198 2,456 3,050
Selling expenses -7,252 -7,087 -6,722 -6,569 -530 -518
General administrative expenses -1,956 -1,814 -1,329 -1,251 -627 -563
Research and non-capitalized development costs -4,880 -4,351 -4,880 -4,351 - -
Other operating income/expense 1,050 1,229 1,242 1,151 -192 78
Gains/losses on equity-method investments, net 1,876 1,496 1,911 1,611 -35 -115
Other financial income/expense, net 98 326 96 324 2 2
EBIT 15,334 15,047 14,260 13,113 1,074 1,934
Interest income/expense 300 -145 300 -141 - -4
Profit before income taxes 15,634 14,902 14,560 12,972 1,074 1,930
Income taxes -4,263 -4,120 -3,943 -3,592 -320 -528
Net profit 11,371 10,782 10,617 9,380 754 1,402
thereof profit attributable to non-controlling interests 227 262
thereof profit attributable to shareholders of 10,520
Mercedes-Benz Group AG 11,144

Earnings per share (in euros)

for profit attributable to shareholders of
Mercedes-Benz Group AG
Basic 10.47 9.83
Diluted 10.47 9.83

20
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

C.07
EBIT for the nine-month period ended 30 Sept
Mercedes-Benz Mercedes-Benz Mercedes-Benz Mercedes-Benz Reconciliation
Group Cars Vans Mobility
In millions of euros

Q1-3 2023
Revenue 112,957 83,187 14,677 19,706 -4,613
Cost of sales -86,559 -62,747 -11,059 -17,250 4,497
Gross profit 26,398 20,440 3,618 2,456 -116
Selling expenses -7,252 -5,765 -1,033 -530 76
General administrative expenses -1,956 -1,148 -190 -627 9
Research and non-capitalized development costs -4,880 -4,470 -365 - -45
Other income/expense 3,024 2,255 253 -225 741
EBIT 15,334 11,312 2,283 1,074 665
Legal proceedings (and related measures) 9 36 -24 - -3
Restructuring measures - - - - -
M&A transactions - - - - -
Expenses in connection with adjustments of the business activities
in Russia 205 -66 -5 276 -
Adjusted EBIT 15,548 11,282 2,254 1,350 662

Return on sales/return on equity (in %) 13.6 15.6 10.3

Adjusted return on sales/return on equity (in %) 1
13.6 15.4 12.9

Q1-3 2022
Revenue 109,014 81,044 12,103 20,096 -4,229
Cost of sales -83,766 -61,247 -9,570 -17,046 4,097
Gross profit 25,248 19,797 2,533 3,050 -132
Selling expenses -7,087 -5,639 -941 -518 11
General administrative expenses -1,814 -1,079 -191 -563 19
Research and non-capitalized development costs -4,351 -3,976 -316 - -59
Other income/expense 3,051 2,994 142 -35 -50
EBIT 15,047 12,097 1,227 1,934 -211
Legal proceedings (and related measures) 451 265 184 - 2
Restructuring measures - - - - -
M&A transactions -623 -863 -36 - 276
Expenses in connection with adjustments of the business activities
in Russia 709 658 51 - -
Adjusted EBIT 15,584 12,157 1,426 1,934 67

Return on sales/return on equity (in %) 14.9 10.1 17.7

Adjusted return on sales/return on equity (in %)1 15.0 11.8 17.7
1 Adjusted return on sales is calculated as the ratio of adjusted EBIT to revenue. The adjusted return on equity is determined as the ratio of adjusted EBIT to the average equity of
each quarter.

21
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Cash flows Condensed Consolidated Statement of Cash flows

Table C.08 shows the condensed Consolidated
Statement of Cash flows.
The cash flow information presented in the following
tables refers to Group amounts, including assets and
liabilities held for sale.

C.08
Condensed Consolidated Statement of Cash flows
Mercedes-Benz Industrial Business Mercedes-Benz
Group Mobility
Q1-3 2023 Q1-3 2022 Q1-3 2023 Q1-3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

Cash and cash equivalents at beginning of period 17,679 23,182 14,094 18,034 3,585 5,148
thereof cash and cash equivalents classified as assets held for sale at 62
beginning of period - - - - 62
Profit before income taxes 15,634 14,902 14,560 12,972 1,074 1,930
Depreciation and amortization/impairments 4,927 4,914 4,844 4,825 83 89
Other non-cash expenses and income and -1,995
gains/losses from disposals of assets -1,994 -2,340 -2,151 346 156
Change in operating assets and liabilities
Inventories -4,767 -6,180 -4,702 -6,221 -65 41
Trade receivables and trade payables 2,868 4,031 2,655 3,596 213 435
Receivables from financial services -3,820 -2,786 71 -26 -3,891 -2,760
Vehicles on operating leases 169 3,069 -270 -812 439 3,881
Other operating assets and liabilities 878 -21 403 -276 475 255
Dividends received from equity-method investments 1,371 835 1,371 835 - -
Income taxes paid -4,397 -3,316 -3,617 -2,469 -780 -847
Cash flow from operating activities 10,869 13,453 12,975 10,273 -2,106 3,180
Additions to property, plant and equipment and -4,743
intangible assets -5,664 -5,607 -4,706 -57 -37
Investments in and disposals of shareholdings and other business operations 217 2,029 406 189 -189 1,840
Acquisitions and sales of marketable debt securities and similar investments 244 1,866 392 1,805 -148 61
Other cash flows 196 318 215 270 -19 48
Cash flow from investing activities -5,007 -530 -4,594 -2,442 -413 1,912
Change in financing liabilities -1,214 -15,806 1,799 -10,947 -3,013 -4,859
Dividends paid -5,879 -5,578 -5,761 -5,551 -118 -27
Acquisition of treasury shares -1,178 -48 -1,178 -48 - -
Other cash flows 119 29 65 29 54 -
Internal equity and financing transactions - - -4,270 1,192 4,270 -1,192
Cash flow from financing activities -8,152 -21,403 -9,345 -15,325 1,193 -6,078
Effect of foreign exchange-rate changes 692
on cash and cash equivalents -251 -189 576 -62 116
Cash and cash equivalents at end of period 15,138 15,394 12,941 11,116 2,197 4,278
thereof cash and cash equivalents classified as assets held for sale at end 17
of period - - 17 - -

22
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Free cash flow of the industrial business The free cash flow of the industrial business amounted
The free cash flow of the industrial business is regarded to €7.9 billion (Q1-3 2022: €5.6 billion). The increase
as a key performance indicator for the Mercedes-Benz during the first nine months of 2023 was influenced by
Group. The free cash flow of the industrial business is the following, partly opposing factors:
derived from the reported cash flows from the operating
and investing activities in table C.09. The cash flow from • Higher profit before income taxes adjusted for non-
sales and purchases of marketable debt securities and cash items; partly offset by higher income taxes paid
similar investments included in cash flow from investing
activities are deducted, as those securities are allocated • Positive development of working capital mainly due to
to liquidity and changes in them are thus not a part of lower inventory build-up compared to the previous
the free cash flow. On the other hand, effects in connec- year, as well as lower trade receivables; partly offset
tion with the recognition and measurement of right-of- by a lower increase in trade payables compared to the
use assets, which result from lessee accounting and are previous year
largely non-cash items, are included in the free cash flow
of the industrial business. Other adjustments relate • In the previous year, higher payments in connection
to effects from the financing of the Group’s own dealer- with ongoing governmental and legal proceedings and
ships and effects from internal deposits within the related measures taken with regard to Mercedes-Benz
Group. In addition, the calculation of the free cash flow diesel vehicles as well as for restructuring measures
includes the cash flows to be shown under cash flow
from financing activities in connection with the acquisi- • Positive effect from lower increase in vehicles on
tion or disposal of interests in subsidiaries without operating leases compared to the prior-year period
loss of control.
• Higher dividend payments from equity-method
C.09 investments, in particular Daimler Truck Holding AG
Free cash flow of the industrial business and Beijing Benz Automotive Co., Ltd.
Q1-3 2023 Q1-3 2022 Change
In millions of euros • In the first nine months of 2023, cash inflows from
the disposal of the sales company in Greece of
Cash flow from operating activities 12,975 10,273 +2,702 €0.1 billion and the disposal of the sales and produc-
Cash flow from investing activities -4,594 -2,442 -2,152 tion companies in Indonesia of €0.1 billion as well as
Change in marketable debt from the purchase price payment for the sale of
securities and similar investments -392 -1,805 +1,413 shares in Mercedes-Benz Grand Prix Ltd. of €0.1 billion
Right-of-use assets -162 -366 +204 (Q1-3 2022: cash inflow from the restructuring of
Other adjustments 47 -11 +58 the sales activities in Canada of €0.6 billion and cash
Free cash flow of the outflow from the investment in Automotive Cells
industrial business 7,874 5,649 +2,225 Company SE of €0.4 billion)
Legal proceedings (and related
measures) 342 698 -356
In the interest of greater transparency in reporting on
Restructuring measures 101 357 -256
the ongoing business, we additionally calculate and
M&A transactions -144 -116 -28 report an adjusted free cash flow of the industrial
Adjusted free cash flow of the business of €8.2 billion (Q1-3 2022: €6.6 billion) in table
industrial business 8,173 6,588 +1,585
C.09. The following adjustments were taken into account
in the first nine months of 2023 and 2022:

• The legal proceedings include payments by the indus-

trial business in connection with ongoing governmen-
tal and legal proceedings and related measures taken
with regard to Mercedes-Benz diesel vehicles

23
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

• The restructuring measures include payments made in Free cash flow of the Mercedes-Benz Group
connection with the programmes for the optimization In the first nine months of 2023, the free cash flow of
of personnel costs the Mercedes-Benz Group resulted in a cash inflow of
€5.9 billion (Q1-3 2022: €11.3 billion). Besides the effects
• The M&A transactions include the cash inflow from of the free cash flow of the industrial business, the free
the purchase price payment for the sale of shares cash flow of the Mercedes-Benz Group is mainly affected
in Mercedes-Benz Grand Prix Ltd. (Q1-3 2022: cash by the leasing and sales-financing business of Mercedes-
inflows from the restructuring of retail activities in Benz Mobility.
Canada, opposing cash outflows from investment
in Automotive Cells Company SE) In the first nine months of 2022, a cash inflow in the
amount of €1.1 billion which related to the payments re-
As well as being calculated on the basis of the disclosed ceived from the sale of intercompany loans in connec-
cash flows from operating and investing activities, the tion with the sale of various units of the truck financing
free cash flow of the industrial business can also be cal- business and does not legally relate to Mercedes-Benz
culated on the basis of the cash flows before interest Mobility was economically allocated to the cash flow
and taxes (CFBIT) of the automotive segments. The from investing activities of Mercedes-Benz Mobility.
reconciliation from the CFBIT of Mercedes-Benz Cars An opposing repayment of the financing liabilities in the
and Mercedes-Benz Vans to the free cash flow of the in- same amount was recognized in the cash flow from
dustrial business also includes the payments for interest financing activities of Mercedes-Benz Mobility. In the
and taxes. The other reconciling items primarily comprise first nine months of 2023, there were no reclassifications
eliminations between the segments and items that are of cash flows between the cash flows from investing
allocated to the industrial business but for which the activities of the industrial business and Mercedes-Benz
automotive segments are not responsible. Mobility.

Table C.10 shows the reconciliation of the CFBIT of Cash flow from financing activities of the
the automotive segments to the free cash flow of the Mercedes-Benz Group
industrial business. In the reporting period, the cash flow from financing
activities of the Mercedes-Benz Group (cf. table C.08)
resulted in a cash outflow of €8.2 billion (Q1-3 2022:
€21.4 billion). The lower cash outflow relative to the
same period of the prior year is primarily due to the
significantly lower net refinancing in the prior year.
This was offset by the payments made in connection
with the share buyback programme.

C.10
Reconciliation from CFBIT to the free cash flow of the industrial business
Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

CFBIT Mercedes-Benz Cars 2,148 3,374 8,898 7,614

CFBIT Mercedes-Benz Vans 980 434 2,167 1,066
Income taxes paid/refunded -1,096 -875 -3,617 -2,469
Interest paid/received 133 -179 173 -330
Other reconciling items 182 262 253 -232
Free cash flow of the industrial business 2,347 3,016 7,874 5,649

24
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

CFBIT and cash conversion rate of the The line Other was impacted, among other things, by
automotive segments dividend payments from equity-method investments,
The CFBIT of the automotive segments is derived from payments for the settlement of payables and provisions
EBIT and the change in net assets, and also includes recognized in previous years through profit or loss,
additions to right-of-use assets. Table C.11 shows the and, in particular in the first nine months of 2022, by the
composition of CFBIT for Mercedes-Benz Cars and elimination of non-cash income included in EBIT in con-
Mercedes-Benz Vans compared with the prior-year nection with the sale of shares in Mercedes-Benz Grand
period. In addition, the reconciliation from CFBIT to Prix Ltd.
adjusted CFBIT and the adjusted cash conversion rate
for Mercedes-Benz Cars and Mercedes-Benz Vans
are shown.

C.11
Reconciliation to adjusted CFBIT for the three-month period ended 30 Sept
Mercedes-Benz Cars Mercedes-Benz Vans
Q3 2023 Q3 2022 Q3 2023 Q3 2022
In millions of euros

EBIT 3,312 4,034 715 497

Change in working capital -492 -402 134 24
Net financial investments 120 188 - 5
Net investments in property, plant and equipment and intangible assets -1,928 -1,578 -132 -137
Depreciation and amortization/impairments 1,512 1,549 104 108
Other -376 -417 159 -63
CFBIT 2,148 3,374 980 434
Legal proceedings (and related measures) 66 166 55 95
Restructuring measures - 12 - -
M&A transactions -19 - - -
Adjusted CFBIT 2,195 3,552 1,035 529
Adjusted EBIT 3,357 4,081 743 546
Adjusted cash conversion rate 1
0.7 0.9 1.4 1.0
1 The adjusted cash conversion rate is the ratio of adjusted CFBIT to adjusted EBIT.

25
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

C.12
Reconciliation to adjusted CFBIT for the nine-month period ended 30 Sept
Mercedes-Benz Cars Mercedes-Benz Vans
Q1-3 2023 Q1-3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

EBIT 11,312 12,097 2,283 1,227

Change in working capital -1,809 -2,458 -251 -82
Net financial investments 418 84 -34 49
Net investments in property, plant and equipment and intangible assets -5,186 -4,578 -424 -239
Depreciation and amortization/impairments 4,530 4,484 312 340
Other -367 -2,015 281 -229
CFBIT 8,898 7,614 2,167 1,066
Legal proceedings (and related measures) 211 436 134 260
Restructuring measures 92 305 3 16
M&A transactions -144 -175 - -43
Adjusted CFBIT 9,057 8,180 2,304 1,299
Adjusted EBIT 11,282 12,157 2,254 1,426
Adjusted cash conversion rate1 0.8 0.7 1.0 0.9
1 The adjusted cash conversion rate is the ratio of adjusted CFBIT to adjusted EBIT.

26
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Net liquidity and net debt C.14

The net liquidity of the industrial business, which is Net debt of the Mercedes-Benz Group
shown in table C.13, has increased by €1.8 billion to 30 Sept. 31 Dec.
2023 2022 Change
€28.5 billion since 31 December 2022. The increase is
In millions of euros
mainly due to the positive free cash flow of the industrial
business and the transfer of profits from Mercedes-Benz
Mobility. This was offset by the dividend paid to the Cash and cash equivalents 15,138 17,679 -2,541

shareholders of Mercedes-Benz Group AG in the second Marketable debt securities and

similar investments 6,904 7,060 -156
quarter of 2023 and the payments made in connection
Liquidity 22,042 24,739 -2,697
with the share buyback programme.
Financing liabilities -109,046 -111,837 +2,791

As can be seen in table C.08, after taking exchange-rate Market valuation and currency
hedges for financing liabilities -1,200 -1,048 -152
effects into account, the cash and cash equivalents of
Financing liabilities
the Mercedes-Benz Group have decreased to €15.1 billion (nominal) -110,246 -112,885 +2,639
since 31 December 2022. Total liquidity as shown in Net debt -88,204 -88,146 -58
table C.14, which also includes marketable debt securi-
ties and similar investments, decreased by €2.7 billion
to €22.0 billion. Net debt at the Group level, which pri-
Refinancing
marily results from refinancing the leasing and sales-
The Mercedes-Benz Group once again successfully
financing business, slightly increased by €0.1 billion to
utilized the international money and capital markets for
€88.2 billion compared with 31 December 2022.
refinancing in the first nine months of 2023.
C.13
During this period, the Mercedes-Benz Group had a cash
Net liquidity of the industrial business
inflow of €12.1 billion from the issuance of bonds (2022:
30 Sept. 31 Dec.
2023 2022 Change €1.4 billion). The redemption of bonds resulted in cash
In millions of euros outflows of €10.0 billion (2022: €14.2 billion).

Cash and cash equivalents 12,941 14,094 -1,153

In the first nine months of 2023, an asset-backed secu-
Marketable debt securities and
rities (ABS) transaction with a volume of €0.7 billion
similar investments 5,778 6,083 -305 was conducted in Germany. In the first nine months of
Liquidity 18,719 20,177 -1,458 2023, additional ABS transactions were conducted in
Financing liabilities1 10,968 7,507 +3,461 China generating a volume of CNY17.4 billion and in the
Market valuation and currency United States with a volume of US$2.5 billion. Also
hedges for financing liabilities -1,202 -1,047 -155 noteworthy is the extension of the asset-backed credit
Financing liabilities line in the United States with a volume of US$4.0 billion.
(nominal) 9,766 6,460 +3,306
Net liquidity 28,485 26,637 +1,848 The “sustainability-linked loan” of €11.0 billion had not
1 Financing liabilities include liabilities from refinancing of internal dealerships. been utilized as of the balance sheet date.

27
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Financial position Table C.15 shows the condensed Consolidated Statement

of Financial Position for the Mercedes-Benz Group as
well as for the industrial business and Mercedes-Benz
As of 30 September 2023, the balance sheet total of Mobility.
the Group was slightly above the level of 31 December
2022. Adjusted for exchange-rate effects, there was
an increase of €5.7 billion.

C.15
Condensed Consolidated Statement of Financial Position
Mercedes-Benz Industrial Business Mercedes-Benz
Group Mobility
30 Sept. 31 Dec. 30 Sept. 31 Dec. 30 Sept. 31 Dec.
2023 2022 2023 2022 2023 2022
In millions of euros

Assets
Intangible assets 16,962 15,869 16,396 15,275 566 594
Property, plant and equipment 26,253 27,250 25,959 26,942 294 308
Equipment on operating leases 41,560 41,552 14,257 14,038 27,303 27,514
Receivables from financial services 87,440 85,549 -76 -66 87,516 85,615
Equity-method investments 13,831 13,530 13,532 13,259 299 271
Inventories 29,763 25,621 28,891 24,906 872 715
Trade receivables 7,489 8,100 6,900 7,328 589 772
Cash and cash equivalents 15,138 17,679 12,941 14,094 2,197 3,585
Marketable debt securities and similar investments 6,904 7,060 5,778 6,083 1,126 977
thereof current 6,166 6,237 5,708 5,970 458 267
thereof non-current 738 823 70 113 668 710
Other financial assets 8,410 7,931 -4,811 -5,140 13,221 13,071
Other assets 9,940 9,874 739 772 9,201 9,102
Total assets 263,690 260,015 120,506 117,491 143,184 142,524

Equity and liabilities

Equity 92,024 86,540 78,275 72,964 13,749 13,576
Provisions 16,270 17,044 15,439 16,211 831 833
Financing liabilities 109,046 111,837 -11,052 -7,549 120,098 119,386
thereof current 45,320 49,786 -20,397 -20,668 65,717 70,454
thereof non-current 63,726 62,051 9,345 13,119 54,381 48,932
Trade payables 14,491 12,204 13,352 11,101 1,139 1,103
Other financial liabilities 7,824 7,928 5,163 5,128 2,661 2,800
Contract and refund liabilities 10,272 10,554 9,946 10,234 326 320
Other liabilities 13,763 13,908 9,383 9,402 4,380 4,506
Total equity and liabilities 263,690 260,015 120,506 117,491 143,184 142,524

28
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Mercedes-Benz Mobility accounts for 54% of the Liabilities and equity

Mercedes-Benz Group’s balance sheet total, almost
unchanged from 31 December 2022. Current assets The Group’s equity increased, in particular as a result of
account for 40% of the balance sheet total and are at the the positive earnings development within the first nine
prior-year level. Current liabilities amount to 32% of the months. The Group’s equity ratio increased to 34.9%
balance sheet total and are below the prior-year level. (31 December 2022: 33.3%); the equity ratio for the in-
dustrial business was 65.0% (31 December 2022: 62.1%).
The disposal of the Russian subsidiaries was completed
in April 2023. As a result, assets of €1.0 billion and liabili- Provisions of €16.3 billion were below the level of
ties of €1.1 billion were deconsolidated in the second €17.0 billion as of 31 December 2022. This was in particu-
quarter of 2023. lar due to the decrease in provisions for other risks.

Assets Financing liabilities of €109.0 billion were below the

level of the previous year (31 December 2022:
Inventories increased compared to 31 December 2022, €111.8 billion). The decrease was due to the lower net
partly due to the introduction of the direct sales model refinancing as a result of the positive liquidity situation.
in additional markets, ramp-ups in production due to
new model years as well as high levels of vehicles in the Trade payables were higher than the figures for
process of delivery. 31 December 2022, partly due to the higher production
level.
Receivables from financial services increased due to
the growth in sales-financing in North America. At 49%, Further information on the assets presented in the State-
the leasing and sales-financing business as a proportion ment of Financial Position and on the Group’s equity
of total assets has remained at the same level as the and liabilities is provided in the Consolidated Statement
previous year. of Financial Position, the Consolidated Statement of
Changes in Equity and the related notes in the Notes to
Oppositely, the cash and cash equivalents decreased, the Interim Consolidated Financial Statements.
as can be seen in the condensed Consolidated State-
ment of Cash Flows.

29
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Table C.16 shows the derivation of net assets of the au-

tomotive segments. They relate to the operating assets
and liabilities for which the segments are responsible.

C.16
Derivation of net assets of the automotive segments
Mercedes-Benz Cars Mercedes-Benz Vans
30 Sept. 31 Dec. 30 Sept. 31 Dec.
2023 2022 2023 2022
In millions of euros

Intangible assets 15,001 13,988 1,387 1,276

Property, plant and equipment 24,050 25,010 1,911 1,936
Inventories 25,715 22,419 3,268 2,558
Trade receivables 5,803 6,083 1,097 1,244
Other segment assets 25,114 24,408 2,865 3,022
Segment assets 95,683 91,908 10,528 10,036

Trade payables 11,697 9,838 1,637 1,259

Other segment liabilities 41,395 42,126 7,732 7,766
Segment liabilities 53,092 51,964 9,369 9,025

Net assets 42,591 39,944 1,159 1,011

30
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Outlook Overview of forecast key figures

Based on the development of the automotive markets,

Automotive markets the following forecasts are issued in comparison to
the forecasts for the full year 2023 made in the chapter
With regional differences the overall growth momentum Outlook of the Combined Management Report with
of the world economy is likely to remain rather subdued Non-Financial Declaration of the Annual Report 2022.
in the rest of the year. Above all, the still above-average
inflation in many places and the persistently restrictive Mercedes-Benz Cars has the following expectations for
monetary policy of key central banks are likely to con- 2023 as a whole:
tinue to weigh on growth. Global gross domestic product
is correspondingly expected to increase by only around • Unit sales: at the prior-year level
2.5% in 2023 as a whole. Geopolitical imponderables
remain another major factor of uncertainty. In contrast, • Revenue: at the prior-year level
energy prices should be at a significantly lower level on
average in 2023 than in the previous year, despite the • Adjusted return on sales: 12–14%
recent volatility.
• Adjusted cash conversion rate: 0.8–1.0
The development of the automotive markets is likely
to continue to be determined by the normalization of • Investments in property, plant and equipment:
the global supply situation and the gradual reduction of significantly above the prior-year level
order backlogs, as in previous quarters. By contrast,
consumer demand is expected to remain subdued in im- • Research and development expenditures:
portant markets. Overall, however, the global car market now significantly above the prior-year level
is now expected to show a significant increase compared
to the previous year. The European market, despite a Mercedes-Benz Vans has the following expectations for
weaker outlook for the rest of the year, is expected to 2023 as a whole:
grow significantly in 2023 as a whole. The US light
vehicle market is also likely to grow significantly. The car • Unit sales: now significantly above the prior-year level
market in China is expected to increase slightly.
• Revenue: now significantly above the prior-year level
The outlook for important van markets is comparatively
favourable for the full year 2023. In Europe, the market • Adjusted return on sales: now 13–15%
segment for mid-size and large vans is likely to experi-
ence significant growth. A considerable increase is also • Adjusted cash conversion rate: now 0.7–0.9
expected for the small van segment in Europe. The US
market for large vans is expected to increase substan- • Investments in property, plant and equipment:
tially as well. The Chinese market segment for mid-size significantly above the prior-year level
vans is also expected to show significant growth.
• Research and development expenditures:
significantly above the prior-year level

31
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Mercedes-Benz Mobility has the following expectations

for 2023 as a whole:

• New business: slightly above the prior-year level

• Contract volume: now at the prior-year level

• Revenue: now at the prior-year level

• Adjusted return on equity: 12–14%

The Mercedes-Benz Group has the following

expectations for 2023 as a whole:

• Revenue: at the prior-year level

• EBIT: now at the prior-year level

• Free cash flow of the industrial business:

now slightly above the prior-year level

• CO2 emissions of the new car fleet in Europe1:

significantly below the prior-year level

1
Average CO2 emissions of the new car fleet of newly registered Mercedes-Benz cars in
Europe (European Union, Norway and Iceland) in the reporting year as measured on the
basis of the WLTP, i.e. including vans that are registered as passenger cars.

32
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Group Management Report

Risk and opportunity report Country risks

In the Annual Report 2022, the country risks also in-
cluded the risk assessment in connection with business
The Mercedes-Benz Group is exposed to a large number activities in Russia. For 2023, country risks have de-
of risks that are directly linked with the business activi- creased from High to Low mainly due to the sale of the
ties of Mercedes-Benz Group AG and its subsidiaries or shares in the Russian subsidiaries of the Mercedes-Benz
that result from external influences. At the same time, it Group and the shorter observation horizon.
is important to identify opportunities in order to safe-
guard and enhance the competitiveness of the Legal and tax risks
Mercedes-Benz Group.
Legal risks
At the Mercedes-Benz Group, the risk and opportunity As already reported, the Environmental Protection Com-
management system is integrated into the value-based mission of Hillsborough County, Florida, asserts in a
management and planning system and is a fixed compo- lawsuit filed in September 2020, that, amongst others,
nent of the overall planning, management and reporting Mercedes-Benz Group AG and MBUSA violated municipal
process. Changes in risks and opportunities are continu- regulations prohibiting vehicle tampering and other
ously monitored, assessed and, if necessary, incorpo- conduct by using alleged devices claimed to impair the
rated into the planning during the year. effectiveness of emission control systems. The lawsuit
was dismissed in the third quarter of 2022. The plaintiff’s
For a detailed presentation of the risk and opportunity appeal to this decision was dismissed in the third quarter
management system and the risk and opportunity situa- of 2023. The decision is final and the proceedings are
tion, please refer to the chapter Risk and Opportunity concluded. Therefore, the risk for the Mercedes-Benz
Report in the Combined Management Report with Non- Group associated with the proceedings no longer exists.
Financial Declaration of the Annual Report 2022.
Furthermore, as previously reported, the following
Business risks, company-specific risks and significant developments occurred since the last Annual
financial risks Report:

Due to the shorter observation horizon, the possible Following a decision of the European Court of Justice in
financial impacts of the risks have decreased overall the first quarter of 2023, the German Federal Court of
for the fourth quarter of 2023. This development is also Justice ruled in the second quarter of 2023 that vehicle
reflected in changes that have been described in the purchasers are entitled to claim damages against the
following risk categories since first quarter significant manufacturer if it intentionally or negligently used an
changes compared to the Annual Report 2022: inadmissible defeat device. Mercedes-Benz Group AG
and the respective other affected companies of the
Procurement-market risks Group regard these lawsuits as being without merit and
The procurement-market risks for the remainder of 2023 continue to defend themselves against the claims.
have decreased from High to Low, primarily due to the
stabilization on the energy markets, the price develop-
ment for energy supplies and the shorter observation
horizon.

33
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Interim Consolidated Financial

Statements
Consolidated Statement of Income/Loss Q3

D.01
Q3 2023 Q3 2022
In millions of euros

Revenue 37,200 37,716

Cost of sales -29,166 -28,934
Gross profit 8,034 8,782
Selling expenses -2,368 -2,456
General administrative expenses -606 -614
Research and non-capitalized development costs -1,541 -1,525
Other operating income 507 491
Other operating expense -53 -259
Gains/losses on equity-method investments, net 833 719
Other financial income/expense, net 36 58
Earnings before interest and taxes (EBIT) 4,842 5,196
Interest income 190 63
Interest expense -52 -93
Profit before income taxes 4,980 5,166
Income taxes -1,261 -1,168
Net profit 3,719 3,998
thereof profit attributable to non-controlling interests 83 75
thereof profit attributable to shareholders of Mercedes-Benz Group AG 3,636 3,923

Earnings per share (in euros)

for profit attributable to shareholders of Mercedes-Benz Group AG
Basic 3.44 3.66
Diluted 3.44 3.66

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

34
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Consolidated Statement of Income/Loss Q1-3

D.02
Q1-3 2023 Q1-3 2022
In millions of euros

Revenue 112,957 109,014

Cost of sales -86,559 -83,766
Gross profit 26,398 25,248
Selling expenses -7,252 -7,087
General administrative expenses -1,956 -1,814
Research and non-capitalized development costs -4,880 -4,351
Other operating income 1,512 2,395
Other operating expense -462 -1,166
Gains/losses on equity-method investments, net 1,876 1,496
Other financial income/expense, net 98 326
Earnings before interest and taxes (EBIT) 15,334 15,047
Interest income 500 157
Interest expense -200 -302
Profit before income taxes 15,634 14,902
Income taxes -4,263 -4,120
Net profit 11,371 10,782
thereof profit attributable to non-controlling interests 227 262
thereof profit attributable to shareholders of Mercedes-Benz Group AG 11,144 10,520

Earnings per share (in euros)

for profit attributable to shareholders of Mercedes-Benz Group AG
Basic 10.47 9.83
Diluted 10.47 9.83

The accompanying Notes to the Interim Consolidated Financial Statements are an integral part of these Interim Consolidated Financial Statements.

35
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Consolidated Statement of Comprehensive Income/Loss Q3

D.03
Q3 2023 Q3 2022
In millions of euros

Net profit 3,719 3,998

Gains/losses from currency translation 436 668
Gains/losses on debt instruments 2 -9
Gains/losses on derivative financial instruments -256 -136
Gains/losses on equity-method investments 63 159
Items that may be reclassified to profit/loss in the Statement of Income in the future 245 682
Actuarial gains/losses from pensions and similar obligations 386 -113
Gains/losses on equity instruments -59 -120
Gains/losses on equity-method investments 11 -59
Items that will not be reclassified to profit/loss in the Statement of Income 338 -292
Other comprehensive income/loss after taxes 583 390
thereof income/loss attributable to non-controlling interests after taxes 14 -4
thereof income/loss attributable to shareholders of Mercedes-Benz Group AG after taxes 569 394
Total comprehensive income/loss 4,302 4,388
thereof income/loss attributable to non-controlling interests 97 71
thereof income/loss attributable to shareholders of Mercedes-Benz Group AG 4,205 4,317

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

36
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Consolidated Statement of Comprehensive Income/Loss Q1-3

D.04
Q1-3 2023 Q1-3 2022
In millions of euros

Net profit 11,371 10,782

Gains/losses from currency translation -162 1,884
Gains/losses on debt instruments 4 -35
Gains/losses on derivative financial instruments 660 115
Gains/losses on equity-method investments -97 348
Items that may be reclassified to profit/loss in the Statement of Income in the future 405 2,312
Actuarial gains/losses from pensions and similar obligations 902 2,220
Gains/losses on equity instruments 114 -291
Gains/losses on equity-method investments -1 284
Items that will not be reclassified to profit/loss in the Statement of Income 1,015 2,213
Other comprehensive income/loss after taxes 1,420 4,525
thereof income/loss attributable to non-controlling interests after taxes -69 22
thereof income/loss attributable to shareholders of Mercedes-Benz Group AG after taxes 1,489 4,503
Total comprehensive income/loss 12,791 15,307
thereof income/loss attributable to non-controlling interests 158 284
thereof income/loss attributable to shareholders of Mercedes-Benz Group AG 12,633 15,023

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

37
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Consolidated Statement of Financial Position

D.05
30 Sept. 31 Dec.
2023 2022
In millions of euros

Assets
Intangible assets 16,962 15,869
Property, plant and equipment 26,253 27,250
Equipment on operating leases 41,560 41,552
Equity-method investments 13,831 13,530
Receivables from financial services 49,147 48,237
Marketable debt securities and similar investments 738 823
Other financial assets 4,526 4,478
Deferred tax assets 2,958 3,725
Other assets 2,535 1,677
Total non-current assets 158,510 157,141
Inventories 29,763 25,621
Trade receivables 7,489 8,100
Receivables from financial services 38,293 37,312
Cash and cash equivalents 15,138 17,679
Marketable debt securities and similar investments 6,166 6,237
Other financial assets 3,884 3,453
Other assets 4,447 4,472
Total current assets 105,180 102,874
Total assets 263,690 260,015

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

38
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

30 Sept. 31 Dec.
2023 2022
In millions of euros

Equity and liabilities

Share capital 3,070 3,070
Capital reserves 11,718 11,718
Retained earnings 74,186 67,695
Other reserves 3,538 2,932
Treasury shares -1,502 -
Equity attributable to shareholders of Mercedes-Benz Group AG 91,010 85,415
Non-controlling interests 1,014 1,125
Total equity 92,024 86,540
Provisions for pensions and similar obligations 996 1,021
Provisions for other risks 6,432 6,438
Financing liabilities 63,726 62,051
Other financial liabilities 2,159 2,524
Deferred tax liabilities 7,407 6,910
Deferred income 1,223 1,234
Contract and refund liabilities 3,549 3,656
Other liabilities 1,101 1,238
Total non-current liabilities 86,593 85,072
Trade payables 14,491 12,204
Provisions for other risks 8,842 9,585
Financing liabilities 45,320 49,786
Other financial liabilities 5,665 5,404
Deferred income 1,438 1,391
Contract and refund liabilities 6,723 6,898
Other liabilities 2,594 3,135
Total current liabilities 85,073 88,403
Total equity and liabilities 263,690 260,015

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

39
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Consolidated Statement of Cash Flows

D.06
Q1-3 2023 Q1-3 2022
In millions of euros

Profit before income taxes 15,634 14,902

Depreciation and amortization/impairments 4,927 4,914
Other non-cash expense and income -1,972 -1,243
Gains (-)/losses (+) from disposals of assets -22 -752
Change in operating assets and liabilities
Inventories -4,767 -6,180
Trade receivables and trade payables 2,868 4,031
Receivables from financial services -3,820 -2,786
Vehicles on operating leases 169 3,069
Other operating assets and liabilities 878 -21
Dividends received from equity-method investments 1,371 835
Income taxes paid -4,397 -3,316
Cash flow from operating activities 10,869 13,453
Additions to property, plant and equipment -2,559 -2,427
Additions to intangible assets -3,105 -2,316
Proceeds from disposals of property, plant and equipment and intangible assets 177 280
Investments in shareholdings -278 -834
Proceeds from disposals of shareholdings and other business operations 495 2,863
Acquisition of marketable debt securities and similar investments -4,577 -984
Proceeds from sales of marketable debt securities and similar investments 4,821 2,850
Other cash flows 19 38
Cash flow from investing activities -5,007 -530
Change in financing liabilities -1,214 -15,806
Dividend paid to shareholders of Mercedes-Benz Group AG -5,556 -5,349
Dividends paid to non-controlling interests -323 -229
Acquisition of treasury shares -1,178 -48
Other cash flows 119 29
Cash flow from financing activities -8,152 -21,403
Effect of foreign exchange-rate changes on cash and cash equivalents -251 692
Change in cash and cash equivalents -2,541 -7,788
Cash and cash equivalents at beginning of period 17,679 23,182
Less cash and cash equivalents classified as assets held for sale at beginning of period - 62
Cash and cash equivalents at beginning of period (Consolidated Statement of Financial Position) 17,679 23,120
Cash and cash equivalents at end of period 15,138 15,394
Less cash and cash equivalents classified as assets held for sale at end of period - 17
Cash and cash equivalents at end of period (Consolidated Statement of Financial Position) 15,138 15,377

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

40
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Consolidated Statement of Changes in Equity

D.07
Other reserves

Equity
instruments/
Share Capital Retained Currency debt
capital reserves earnings translation instruments
In millions of euros

Balance at 1 Jan. 2022 3,070 11,723 55,926 1,691 202

Net profit - - 10,520 - -
Other comprehensive income/loss after taxes - - 2,499 2,185 -317
Total comprehensive income/loss - - 13,019 2,185 -317
Dividends - - -5,349 - -
Changes in the consolidated group - - - - -
Acquisition of treasury shares - - - - -
Issue and disposal of treasury shares - - - - -
Other - -2 19 - -9
Balance at 30 Sept. 2022 3,070 11,721 63,615 3,876 -124

Balance at 1 Jan. 2023 3,070 11,718 67,695 2,161 -241

Net profit - - 11,144 - -
Other comprehensive income/loss after taxes - - 902 -187 119
Total comprehensive income/loss - - 12,046 -187 119
Dividends - - -5,556 - -
Capital increase/Issue of new shares - - - - -
Acquisition of treasury shares - - - - -
Issue and disposal of treasury shares - - - - -
Other - - 1 - -1
Balance at 30 Sept. 2023 3,070 11,718 74,186 1,974 -123

The accompanying Notes to the Consolidated Financial Statements are an integral part of these Interim Financial Statements.

41
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Equity
attributable to
Derivative shareholders of Non-
financial Treasury Mercedes-Benz controlling Total
instruments shares Group AG interests equity
In millions of euros

-661 - 71,951 1,216 73,167 Balance at 1 Jan. 2022

- - 10,520 262 10,782 Net profit
136 - 4,503 22 4,525 Other comprehensive income/loss after taxes
136 - 15,023 284 15,307 Total comprehensive income/loss
- - -5,349 -248 -5,597 Dividends
- - - -29 -29 Changes in the consolidated group
- -48 -48 - -48 Acquisition of treasury shares
- 48 48 - 48 Issue and disposal of treasury shares
-40 - -32 1 -31 Other
-565 - 81,593 1,224 82,817 Balance at 30 Sept. 2022

1,012 - 85,415 1,125 86,540 Balance at 1 Jan. 2023

- - 11,144 227 11,371 Net profit
655 - 1,489 -69 1,420 Other comprehensive income/loss after taxes
655 - 12,633 158 12,791 Total comprehensive income/loss
- - -5,556 -323 -5,879 Dividends
- - - 54 54 Capital increase/Issue of new shares
- -1,568 -1,568 - -1,568 Acquisition of treasury shares
- 66 66 - 66 Issue and disposal of treasury shares
20 - 20 - 20 Other
1,687 -1,502 91,010 1,014 92,024 Balance at 30 Sept. 2023

42
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Notes to the Interim Consolidated All significant intercompany accounts and transactions
have been eliminated. In the opinion of the management,
Financial Statements the Interim Financial Statements reflect all adjustments
(i.e., normal recurring adjustments) necessary for a fair
1. Basis of preparation presentation of the profitability, cash flows and financial
position of the Group. Earnings in the interim periods
presented are not necessarily indicative of the earnings
General information that may be expected for any future period or for the full
These condensed Interim Consolidated Financial State- financial year.
ments (Interim Financial Statements) of Mercedes-Benz
Group AG and its subsidiaries (“Mercedes-Benz Group” Issued IFRS but not yet endorsed by the EU
or “the Group”) have been prepared in accordance with In December 2021, the OECD published guidelines for a
Section 115 of the German Securities Trading Act (WpHG) new global minimum tax framework aimed at curbing tax
and in conformity with the International Accounting avoidance and profit shifting by multinational corpora-
Standard (IAS) 34 Interim Financial Reporting. tions. EU member states unanimously agreed in Decem-
ber 2022 to implement these rules in the form of a
The Interim Financial Statements comply with the Inter- directive. This directive must be transposed into the na-
national Financial Reporting Standards (IFRS) as adopted tional law of the member states by 31 December 2023 in
by the European Union (EU). order to be applicable for financial years beginning after
that date. As of the reporting date, these rules have nei-
The reporting period of the Interim Financial Statements ther been fully nor substantively enacted into German
is the period from 1 January 2023 to 30 September 2023. law. In May 2023, the IASB published International Tax
Reform — Pillar Two Model Rules (Amendments to
The Interim Report is presented in euros (€). Unless IAS 12) in order to introduce a mandatory temporary
otherwise stated, all amounts are stated in millions of exemption from the requirements in IAS 12 Income Taxes
euros. for the recognition and disclosure of information on
deferred tax assets and liabilities. The amendments also
The Board of Management authorized the Interim Report introduce disclosure requirements that will apply imme-
for publication on 25 October 2023. diately after endorsement by the EU. The Mercedes-Benz
Group is currently analysing the potential future impact
The Interim Financial Statements should be read in of these new regulations on the Group.
conjunction with the audited and published IFRS Consol-
idated Financial Statements and Notes thereto of
31 December 2022. The accounting policies applied by
the Group in these Interim Financial Statements
fundamentally correspond with those applied for the
Consolidated Financial Statements for the year 2022.

Mercedes-Benz Group AG is a public limited liability

company organized under the laws of the Federal Repub-
lic of Germany. The Company is entered in the Commer-
cial Register of the Stuttgart District Court under the
number HRB 19360 and its registered office is located at
Mercedesstraße 120, 70372 Stuttgart, Germany.

43
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

2. Other significant acquisitions and The assets of €976 million disposed of with the decon-
solidation essentially include property, plant and
disposals of investments equipment of €290 million and receivables from financial
services of €280 million. In addition, cash and cash
Sale of shares in the Russian subsidiaries equivalents of €91 million are included. The disposed lia-
On 2 March 2022, the Mercedes-Benz Group decided to bilities of €1,065 million include in particular provisions
stop exporting cars and vans to Russia and to cease local of €636 million and financing liabilities of €347 million.
production in Russia until further notice. At the end of The Group had issued a global guarantee for the financ-
October 2022, the Mercedes-Benz Group signed con- ing liabilities to financial institutions, which ended when
tracts with the Russian car dealer Avtodom AO for the the transaction was completed. The contingent liabilities
sale of the shares in the Russian subsidiaries. reported as of 31 December 2022 in connection with
the cessation of business activities in Russia were also
A degree of discretion has been exercised in the consid- derecognized upon completion of the transaction.
eration and subsequent derivation of the effects of
the sanctions and counter-sanctions on the business The transaction costs amounted to €3 million. After
activities. realizing the currency reserve of €291 million, a loss on
disposal of €205 million resulted. This was reported in
The recognition and valuation of the assets and liabilities other operating expenses. Expenses of €276 million were
due to the discontinuation of the business activities in attributable to the Mercedes-Benz Mobility segment; the
Russia, in particular the processing of existing transac- Mercedes-Benz Cars and Mercedes-Benz Vans segments
tions, resulted in expenses of around €0.7 billion in the generated income of €66 million and €5 million, respec-
automotive segments in 2022. Total expenses of around tively.
€0.2 billion resulted from the measurement of credit
default risks and increased refinancing expenses in the Sale of Daimler’s commercial vehicle business
segment Mercedes-Benz Mobility. The bulk of the With the completion of the spin-off and hive-down of
expenses were included in cost of sales. the Daimler commercial vehicle business substantial
parts of the former Daimler commercial vehicle business
As of 31 December 2022, completion of the transaction including the associated financial services business were
was still subject to authorities’ approval and the imple- deconsolidated on 9 December 2021.
mentation of the contractually agreed conditions.
The initially remaining financial services of the Daimler
With the closing of the transaction on 19 April 2023, the commercial vehicle business were sold to Daimler Truck
shares of Russian subsidiaries were deconsolidated. Holding AG or its subsidiaries in 2022. At the Mercedes-
Benz Mobility segment, assets of €3,191 million and liabil-
The sale of the Russian subsidiaries resulted in no ities of €746 million were disposed of on or before
significant cash inflow. This leads to a cash outflow in 31 December 2022.
the amount of the disposed cash and cash equivalents of
€91 million, which is mainly attributable to the Mercedes- In addition, in individual countries, investments in
Benz Mobility segment. operating entities or business operations of the former
commercial vehicle business were sold to external third
parties in 2022. Assets of €149 million and liabilities of
€106 million, mainly allocated to the Mercedes-Benz Cars
segment, were disposed of on or before 31 December
2022.

44
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

The Group received €2,355 million from the (in the prior In addition, further dealers in various countries, in partic-
year partially still preliminary) purchase prices in 2022, ular those allocated to the Mercedes-Benz Cars segment,
including the repayment of the existing intragroup fi- were sold in 2022. The disposals resulted in income of
nancing liabilities of the companies and business activi- €107 million and cash inflows of €362 million.
ties within the Mercedes-Benz Group.
The sales company in Greece was sold in the first quarter
The valuation and sale and the transfer of the Mercedes- of 2023. The sale generated income of €42 million for
Benz Mobility companies resulted in net expenses of the Mercedes-Benz Cars segment. The cash inflow
€184 million in the whole of 2022, which were reported amounts to €119 million.
in the reconciliation in the segment reporting. Income of
€32 million was realized for the operating investments Sale of Indonesian sales and production entities
and business activities disposed of in 2022 as a whole, in The Mercedes-Benz Group sold its subsidiaries in
particular in the Mercedes-Benz Cars segment. In total, Indonesia to a local investor with effect from 29 Septem-
expenses of €58 million were recognized from the reali- ber 2023. The sale of both companies resulted in a
zation of the currency reserve. Expenses from the valua- preliminary income of €103 million and a cash inflow of
tion and sale and transfer of investments and business €140 million which is allocated to the Mercedes-Benz
operations of the commercial vehicles business of the Cars segment. Assets decreased by €141 million and
Mercedes-Benz Mobility segment of €96 million were in- liabilities by €102 million as a result of deconsolidation.
cluded in the third quarter of 2022. The figure amounted
to €315 million in the first nine months of 2022. Sale of interests in Mercedes-Benz Grand Prix Ltd.
In the fourth quarter of 2021, the Mercedes-Benz Group
In the first nine months of 2023 this had no material signed the contractual agreements with Motorsports In-
effects on the profitability, cash flows and financial vest Ltd. and INEOS Industries Holdings Ltd. on the sale
position. of shares of Mercedes-Benz Grand Prix Ltd. Some of the
agreements concluded already took effect in 2021. When
Sale of retail activities and other sales companies the other agreements became effective in January 2022,
In December 2021, the contractual arrangements on the the Group lost control over Mercedes-Benz Grand Prix
sale of the retail activities in Canada were concluded. Ltd. and included the remaining 33.3% interest in the
The transaction became effective in February 2022 company in the Consolidated Financial Statements using
and the Group recognized other operating income of the equity method. The sale of the shares resulted in
€514 million, which was mainly allocated to the other operating income of €385 million in the Mercedes-
Mercedes-Benz Cars segment. The cash inflow amounted Benz Cars segment in the first quarter of 2022. The
to €608 million and was also mainly allocated to the purchase price payment agreed for 2023 resulted in a
Mercedes-Benz Cars segment. Parts of the purchase cash inflow of €144 million.
price were financed by Mercedes-Benz Financial Ser-
vices in Canada and led to a cash outflow of €393 million
at the Mercedes-Benz Mobility segment.

45
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

3. Revenue Other revenue primarily comprises revenue from the

rental and leasing business, interest from the financial
services business and effects from currency hedging.
Revenue disclosed in the Consolidated Statement of
Income/Loss includes revenue from contracts with cus-
tomers in the scope of IFRS 15 (revenue according to
IFRS 15) and other revenue not in the scope of IFRS 15.

Revenue according to IFRS 15 is disaggregated by the

two categories – type of products and services, and
geographical regions – and presented in tables D.08
and D.09. The category type of products and services
corresponds to the reported segments.

D.08
Revenue for the three-month period ended 30 Sept
Mercedes- Mercedes- Mercedes- Total Mercedes-
Benz Cars Benz Vans Benz Mobility segments Reconciliation¹ Benz Group
In millions of euros

Q3 2023
Europe 9,878 2,776 1,344 13,998 -745 13,253
North America 5,584 1,231 1,248 8,063 -54 8,009
Asia 9,240 274 41 9,555 -1 9,554
Other markets 1,569 461 30 2,060 - 2,060
Revenue according to IFRS 15 26,271 4,742 2,663 33,676 -800 32,876
Other revenue 860 197 3,898 4,955 -631 4,324
Total revenue 27,131 4,939 6,561 38,631 -1,431 37,200

Q3 2022
Europe 8,904 2,555 1,245 12,704 -717 11,987
North America 6,454 900 1,464 8,818 -20 8,798
Asia 11,067 311 33 11,411 - 11,411
Other markets 1,468 427 18 1,913 - 1,913
Revenue according to IFRS 15 27,893 4,193 2,760 34,846 -737 34,109
Other revenue 316 116 3,839 4,271 -664 3,607
Total revenue 28,209 4,309 6,599 39,117 -1,401 37,716
1 The reconciliation includes eliminations of intragroup revenue between the segments.

46
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

D.09
Revenue for the nine-month period ended 30 Sept
Mercedes- Mercedes- Mercedes- Total Mercedes-
Benz Cars Benz Vans Benz Mobility segments Reconciliation¹ Benz Group
In millions of euros

Q1-3 2023
Europe 28,697 8,828 4,079 41,604 -2,553 39,051
North America 19,201 3,146 4,043 26,390 -183 26,207
Asia 29,234 738 102 30,074 -3 30,071
Other markets 3,866 1,369 73 5,308 - 5,308
Revenue according to IFRS 15 80,998 14,081 8,297 103,376 -2,739 100,637
Other revenue 2,189 596 11,409 14,194 -1,874 12,320
Total revenue 83,187 14,677 19,706 117,570 -4,613 112,957

Q1-3 2022
Europe 26,360 7,067 3,722 37,149 -2,283 34,866
North America 17,749 2,640 4,837 25,226 -38 25,188
Asia 31,593 835 104 32,532 -7 32,525
Other markets 4,402 1,115 58 5,575 - 5,575
Revenue according to IFRS 15 80,104 11,657 8,721 100,482 -2,328 98,154
Other revenue 940 446 11,375 12,761 -1,901 10,860
Total revenue 81,044 12,103 20,096 113,243 -4,229 109,014
1 The reconciliation includes eliminations of intragroup revenue between the segments.

47
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

4. Functional costs 5. Other operating income and expense

Cost of sales was at the prior-year level in the third Other operating income amounted to €507 million in
quarter of 2023. In the first nine months of the year the third quarter of 2023 (Q3 2022: €491 million) and
2023, cost of sales increased slightly compared to the €1,512 million in the first nine months of 2023 (Q1-3
prior-year period. The development of cost of sales is 2022: €2,395 million).
correlated to the development of revenue. The increase
of cost of sales in the first nine months of the year 2023 The drop in other operating income in the first nine
resulted primarily from higher raw material prices and months of the year 2023 resulted mainly from other
expenses paid to suppliers for additional costs due to operating income recognized in the comparison period
inflation and supply chains. The first nine months of the from the sale of the retail activities in Canada (€514 mil-
year 2022 included expenses in connection with the lion) and of shares in Mercedes-Benz Grand Prix Ltd.
discontinuation of business activities in Russia. (€385 million).

The selling expenses were at the prior-year level in the Other operating expense was €53 million in the third
third quarter as well as in the first nine months of the quarter of 2023 (Q3 2022: €259 million) and €462 million
year 2023. in the first nine months of 2023 (Q1-3 2022: €1,166 mil-
lion).
The general administrative expenses were at the prior-
year level in the third quarter. In the first nine months of The decrease in other operating expense in the third
2023, general administrative expenses increased slightly quarter as well as in the first nine months of the year
compared to the same period of the previous year. 2023 mainly resulted from decreased expenses in con-
nection with ongoing governmental and court proceed-
Research and non-capitalized development costs ings and measures taken relating to Mercedes-Benz
were at the prior-year level in the third quarter. Research diesel vehicles.
and non-capitalized development costs in the first nine
months of 2023 were significantly above the level of the The loss of €205 million from the deconsolidation of
prior-year period. The increase in the first nine months is the shares in the Russian subsidiaries booked in other
due to higher expenditures for new vehicles and future operating expense in the first nine months of the year
technologies. 2023 is mainly attributable to the Mercedes-Benz
Mobility segment.

In the third quarter of 2022 expenses of €96 million and

in the first nine months of the year 2022 expenses of
€315 million resulted from the valuation as well as the
sale and transfer of investments and business operations
of the commercial vehicle business of the Mercedes-
Benz Mobility segment, which are reported in the recon-
ciliation.

48
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

6. Other financial income/expense, net

Table D.10 shows the components of other financial

income/expense, net.

D.10
Other financial income/expense, net
Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

Income and expense from compounding and effects from

changes in discount rates of provisions for other risks -74 68 -194 570
Miscellaneous other financial income/expense, net 110 -10 292 -244
36 58 98 326

In both reporting periods in 2023 miscellaneous other fi- also contributed to an increase in miscellaneous other
nancial income/expense, net primarily comprised income financial income/expense, net. The prior-year period, in
(net expense in the prior-year period) from the valuation contrast, was affected in particular by the negative
of financial assets and liabilities. In addition, as of Sep- measurement of the equity instruments.
tember 2023, higher dividends from equity instruments

7. Interest income and interest expense

The composition of interest income and interest expense

is shown in table D.11.

D.11
Interest income and interest expense
Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

Interest income
Net interest income on the net assets of defined-benefit pension plans 8 2 23 6
Interest and similar income 182 61 477 151
190 63 500 157

Interest expense
Net interest expense on the net obligation from defined-benefit pension plans -10 -15 -30 -45
Interest and similar expenses -42 -78 -170 -257
-52 -93 -200 -302

49
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

8. Income taxes

Table D.12 shows profit before income taxes, income

taxes and the derived effective tax rate.

D.12
Income taxes
Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

Profit before income taxes 4,980 5,166 15,634 14,902

Income taxes -1,261 -1,168 -4,263 -4,120
Tax rate 25.3% 22.6% 27.3% 27.6%

9. Intangible assets D.14

Property, plant and equipment
(excluding right-of-use assets)
The composition of intangible assets is shown in table 30 Sept. 31 Dec.
D.13. 2023 2022
In millions of euros

D.13
Intangible assets Land, land rights and buildings, including
buildings on land owned by others 7,620 7,988
30 Sept. 31 Dec.
2023 2022 Technical equipment and machinery 7,670 8,170
In millions of euros Other equipment, factory and
office equipment 6,549 6,866
Advance payments and
Goodwill 753 749
construction in progress 2,109 1,500
Development costs 14,484 13,537
23,948 24,524
Other intangible assets 1,725 1,583
16,962 15,869

11. Equipment on operating leases

10. Property, plant and equipment
At 30 September 2023, the carrying amount of equip-
ment on operating leases was €41,560 million (2022:
Property, plant and equipment as presented in the Con- €41,552 million). In the first nine months of 2023,
solidated Statement of Financial Position with a carrying additions amounted to €15,115 million (Q1-3 2022:
amount of €26,253 million (2022: €27,250 million) also €12,568 million) and disposals to €10,018 million (Q1-3
includes right-of-use assets of €2,305 million (2022: 2022: €10,242 million). Depreciation in the first nine
€2,726 million), that the Group received as lessee. months of 2023 was €5,313 million (Q1-3 2022:
€5,512 million).
Table D.14 shows the composition of property, plant and
equipment excluding right-of-use assets.

50
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

12. Equity-method investments

Table D.15 shows the composition of the carrying

amounts and the gains/losses on equity-method
investments.

D.15
Summarized carrying amounts and gains/losses on equity-method investments
Associated Joint
companies ventures Total
In millions of euros

30 Sept. 2023
Equity-method carrying amount1 13,015 816 13,831
Equity-method gains/losses (Q3 2023) 1
839 -6 833
Equity-method gains/losses (Q1-3 2023)1 1,920 -44 1,876
31 Dec. 2022
Equity-method carrying amount1 12,539 991 13,530
Equity-method gains/losses (Q3 2022) 1
762 -43 719
Equity-method gains/losses (Q1-3 2022)1 1,581 -85 1,496
1 Including investor-level adjustments.

Associated companies Mercedes-Benz Group did not sell any of its Daimler
Income from associated companies includes in particular Truck shares. Consequently a shareholding of 30.25% is
the pro-rata earnings of Beijing Benz Automotive Co., assumed for the development of the equity-method
Ltd. (BBAC). In the second quarter of 2023 the share- investment as of 30 September 2023. In June 2023, the
holders of BBAC resolved the distribution of a dividend Annual General Meeting of Daimler Truck resolved a
of €903 million. The distribution reduced the sharehold- dividend of €1.30 per share. The distribution led to
ing’s carrying amount and caused a cash inflow of €897 a cash inflow of €321 million and reduced the carrying
million. This equity interest is allocated to the Mercedes- amount of the investment accordingly. The investment
Benz Cars segment. is reported in the reconciliation.

The pro-rata earnings of Daimler Truck Holding AG As part of a strategic realignment and refinancing of Here
(Daimler Truck) included in the Mercedes-Benz Group’s International B.V. (HERE) the Mercedes-Benz Group,
Financial Statements are best possible estimates based along with other shareholders of the associated com-
on consensus data. The result in the first nine months of pany There Holding B.V. (THBV), injected additional
2023 amounted to €567 million (Q1-3 2022: €165 million). equity of €118 million into THBV via Mercedes-Benz AG in
Of this €259 million are accounted for in the third quar- the first half of 2023. The capital increases led to a
ter (Q3 2022: €186 million). In the first quarter of 2022, corresponding increase in the equity-method carrying
the pro-rata earnings included income of €59 million amount. The funds from the capital injection were trans-
from the contribution of approximately 5% of the shares ferred by THBV to HERE in order to increase HERE’s
in Daimler Truck to the Mercedes-Benz Pension Trust liquidity.
e.V. With the approval of the Supervisory Board, the
Board of Management of Daimler Truck resolved a share
buyback programme on 10 July 2023. The acquisition of
the treasury shares on the stock exchange began on 2
August 2023. During the share buyback programme, the

51
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

The strategic repositioning led to a reassessment of

the business development of HERE in the second quarter
of 2023. Due to this THBV recognized an impairment
on the carrying amount of HERE. The proportionate
expenses attributable to the Group from the impairment
of €92 million are included in the line item gains/losses
on equity-method investments and reported in the
Mercedes-Benz Cars segment.

13. Receivables from financial services

Receivables from financial services are shown in the

following table:

D.16
Receivables from financial services
30 Sept. 2023 31 Dec. 2022
Current Non-current Total Current Non-current Total
In millions of euros

Sales financing with customers 18,161 32,106 50,267 19,188 32,223 51,411
Sales financing with dealers 13,455 4,519 17,974 11,198 3,504 14,702
Finance lease contracts 6,749 12,291 19,040 7,009 12,296 19,305
Residual-value receivables 348 849 1,197 439 890 1,329
Gross carrying amount 38,713 49,765 88,478 37,834 48,913 86,747
Loss allowances -420 -618 -1,038 -522 -676 -1,198
Net carrying amount 38,293 49,147 87,440 37,312 48,237 85,549

52
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

14. Inventories Share buyback programme

On the basis of the authorization to acquire the Com-
pany’s own shares given by the Annual General Meeting
Inventories are comprised as follows: on 8 July 2020, the Board of Management, with the
approval of the Supervisory Board, resolved a share buy-
D.17 back programme on 16 February 2023. The acquisition
Inventories
of treasury shares worth up to €4 billion (not including
30 Sept. 31 Dec.
incidental costs) on the stock exchange over a period
2023 2022
of up to two years began on 3 March 2023. The repur-
In millions of euros
chased shares are to be cancelled at a later date.
Mercedes-Benz Group AG has separately agreed with
Raw materials and manufacturing
supplies 2,991 2,909
Beijing Automotive Group Co., Ltd. and Geely Group that
Work in progress 3,709 3,491
they will each keep their shareholdings in Mercedes-
Benz Group AG below ten per cent by divesting their
Finished goods, spare parts and
products held for resale 22,838 19,058 shares on a pro-rata basis concurrently with the share
Advance payments 225 163 buyback programme.
29,763 25,621
In the first nine months of 2023 16.3 million of the
Company’s own shares were repurchased at a purchase
Inventories increased compared to 31 December 2022, price of €1,134 million and transferred to the reserve for
partly due to the introduction of the direct sales model treasury shares. Furthermore, a liability of €329 million
in additional markets, ramp-ups in production due to was recorded for buyback obligations.
new model years as well as high levels of vehicles in the
process of delivery. Employee share purchase plan
In the first quarter of 2023 Mercedes-Benz Group AG
purchased 0.9 million (2022: 0.7 million) Mercedes-Benz
shares to be reissued to employees as employee shares
directly based on Section 71 Subsection 1 No. 2 of the
15. Equity
German Stock Corporation Act (AktG). The shares were
reissued to employees on 28 March 2023.
Approved capital
The Annual General Meeting held on 5 April 2018 author- Dividend
ized the Board of Management, with the consent of the The Annual General Meeting on 3 May 2023 resolved to
Supervisory Board, to increase the share capital of pay out a dividend to the shareholders of €5,556 million,
Mercedes-Benz Group AG in the period until 4 April equivalent to €5.20 per no-par-value share entitled
2023, by up to a total of €1.0 billion in exchange for cash to a dividend out of the distributable profit 2022 of
and/or non-cash contributions (Approved Capital 2018). Mercedes-Benz Group AG of €5,563 million (2022:
No use was made of this authorization. €5,349 million, equivalent to €5.00 per no-par-value
share entitled to a dividend). The dividend was paid out
The Annual General Meeting held on 3 May 2023 author- on 8 May 2023. For the 1.3 million treasury shares held
ized the Board of Management again to increase the by Mercedes-Benz Group AG at the date of the Annual
share capital by up to a total of €1.0 billion by 2 May General Meeting that are not entitled to a dividend, the
2028 with the approval of the Supervisory Board against Annual General Meeting took the resolution to transfer
cash and/or non-cash contributions (Approved Capital the respective portion of €7 million of the distributable
2023). The authorization provides opportunity, with the profit to the retained earnings.
consent of the Supervisory Board to exclude sharehold-
ers’ subscription rights under certain conditions and
within defined limits.

53
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

16. Pensions and similar obligations D.18

Development of funded status
30 Sept. 31 Dec.
The provisions for pensions and similar obligations con- 2023 2022
sist of provisions for pension obligations and provisions In millions of euros
for post-employment healthcare benefits.
Present value of the defined
The funded status of the pension obligations is shown in benefit obligations 19,711 20,444
table D.18. The present value of the defined benefit obli- Fair value of plan assets 20,682 20,526
gations has decreased, in particular due to the increase Funded status 971 82
of the discount rate in Germany to 4.2% (31 December actuarial loss due to
2022: 3.8%). The fair value of the plan assets reflects the asset ceiling -27 -27

positive return in the reporting period. Net defined benefit asset 944 55
thereof recognized in: Other assets 1,594 738
thereof recognized in: Provisions
for pensions and similar obligations -650 -683

17. Provisions for other risks

Provisions for other risks are comprised as shown in

table D.19.

D.19
Provisions for other risks
30 Sept. 2023 31 Dec. 2022
Current Non-current Total Current Non-current Total
In millions of euros

Product warranties 2,888 3,577 6,465 3,204 3,372 6,576

Personnel and social costs 2,278 2,030 4,308 2,422 2,191 4,613
Litigation risks and regulatory proceedings 1,444 549 1,993 2,217 538 2,755
Other 2,232 276 2,508 1,742 337 2,079
8,842 6,432 15,274 9,585 6,438 16,023

54
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

18. Financing liabilities

Financing liabilities are comprised as follows:

D.20
Financing liabilities
30 Sept. 2023 31 Dec. 2022
Current Non-current Total Current Non-current Total
In millions of euros

Notes/bonds 12,357 43,755 56,112 12,104 41,995 54,099

Commercial paper 3,072 - 3,072 2,174 10 2,184
Liabilities to financial institutions 15,520 8,086 23,606 17,488 7,250 24,738
Deposits in the direct banking business 6,758 380 7,138 9,529 1,009 10,538
Liabilities from ABS transactions 6,712 9,567 16,279 7,433 9,452 16,885
Lease liabilities 470 1,729 2,199 598 2,047 2,645
Loans, other financing liabilities 431 209 640 460 288 748
45,320 63,726 109,046 49,786 62,051 111,837

19. Legal proceedings Likewise, as previously reported, in 2021 a number of

Australian Mercedes-Benz dealers brought claims against
Mercedes-Benz Australia/Pacific Pty Ltd (MBAuP) before
As described in the Notes to the Consolidated Financial the Federal Court of Australia. In August 2023, the court
Statements as of 31 December 2022, Mercedes-Benz dismissed the claims in their entirety. The decision may
Group AG and its subsidiaries are confronted with vari- still be appealed. MBAuP considers those claims to be
ous court proceedings, claims and governmental without merit and continues to defend itself against the
investigations and orders (legal proceedings) on a large claims.
number of topics.
Furthermore, as previously reported, the following
Compared to the legal proceedings described therein the significant developments occurred since the last Annual
following significant changes occurred: Report:

In a lawsuit filed by the Environmental Protection Following a decision of the European Court of Justice in
Commission of Hillsborough County, Florida, in Septem- the first quarter of 2023, the German Federal Court of
ber 2020, the plaintiff claims that, amongst others, Justice ruled in the second quarter of 2023 that vehicle
Mercedes-Benz Group AG and MBUSA violated municipal purchasers are entitled to claim damages against the
regulations prohibiting vehicle tampering and other manufacturer if it intentionally or negligently used an in-
conduct by using alleged devices claimed to impair the admissible defeat device. Mercedes-Benz Group AG and
effectiveness of emission control systems. The lawsuit the respective other affected companies of the Group
was dismissed in the third quarter of 2022. The plaintiff’s regard these lawsuits as being without merit and con-
appeal to this decision was dismissed in the third quarter tinue to defend themselves against the claims.
of 2023. The decision is final and the proceedings are
concluded. Therefore, the risk for the Mercedes-Benz
Group associated with the proceedings no longer exists.

55
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

20. Financial instruments The fair value of a financial instrument is the price that
would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market partici-
Table D.21 shows the carrying amounts and fair pants at the measurement date. Given the varying influ-
values of the respective classes of the Group’s financial encing factors, the reported fair values can only be
instruments. viewed as indicators of the prices that may actually be
achieved in the market.

D.21
Carrying amounts and fair values of financial instruments
30 Sept. 2023 31 Dec. 2022
Carrying Carrying
amount Fair value amount Fair value
In millions of euros

Financial assets
Receivables from financial services 87,440 88,547 85,549 86,343
Trade receivables 7,489 7,489 8,100 8,100
Cash and cash equivalents 15,138 15,138 17,679 17,679
Marketable debt securities and similar investments 6,904 6,904 7,060 7,060
Recognized at fair value through other comprehensive income 1,248 1,248 1,641 1,641
Recognized at fair value through profit or loss 5,531 5,531 4,460 4,460
Measured at cost 125 125 959 959
Other financial assets
Equity instruments and debt instruments 1,573 1,573 1,439 1,439
Recognized at fair value through other comprehensive income 903 903 768 768
Recognized at fair value through profit or loss 670 670 671 671
Other financial assets recognized at fair value through profit or loss 378 378 584 584
Derivative financial instruments used in hedge accounting 2,843 2,843 2,463 2,463
Other receivables and financial assets 3,196 3,196 3,113 3,113
124,961 126,068 125,987 126,781

Financial liabilities
Financing liabilities 106,847 104,873 109,192 107,417
Trade payables 14,491 14,491 12,204 12,204
Other financial liabilities
Financial liabilities recognized at fair value through profit or loss 239 239 171 171
Derivative financial instruments used in hedge accounting 1,641 1,641 2,283 2,283
Miscellaneous other financial liabilities 5,929 5,929 5,454 5,454
Contract and refund liabilities
Obligations from sales transactions 4,099 4,099 4,481 4,481
133,246 131,272 133,785 132,010

56
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

The fair values of financial instruments were calculated - Derivative interest-rate hedging contracts: the fair
on the basis of market information available on the bal- values of the interest-rate hedging instruments (e.g.
ance sheet date. The following methods and premises interest-rate swaps) are determined on the basis of
were used. discounted estimated future cash flows (taking into
account credit premiums and default risks) using the
Marketable debt securities and similar investments, market interest rates appropriate to the remaining
other financial assets and liabilities terms of the financial instruments.
Marketable debt securities are recognized at fair value
through other comprehensive income or at fair value - Derivative commodity hedging contracts: the fair val-
through profit or loss. Similar investments are measured ues of commodity hedging contracts (e.g., commodity
at cost and are not included in the measurement hierar- forwards) are determined on the basis of current refer-
chy, as their carrying amount is a reasonable approxima- ence prices with consideration of forward premiums
tion of fair value due to the short terms of these financial and discounts and default risks.
instruments and the fundamentally low credit risk.
Contract and refund liabilities
Equity instruments are recognized at fair value through Contract and refund liabilities include obligations from
other comprehensive income or at fair value through sales transactions that qualify as financial instruments.
profit or loss. Obligations from sales transactions should generally
be regarded as current. Due to the short maturities of
Marketable debt securities and equity instruments rec- these financial instruments, it is assumed that their
ognized at fair value were measured using quoted market fair values are equal to their carrying amounts.
prices at the end of the reporting period. If quoted
market prices are not available for these debt and equity Table D.22 provides an overview of the classification into
instruments, fair value measurement is based on inputs measurement hierarchies of financial assets and liabili-
that are either directly or indirectly observable in active ties recognized at fair value (according to IFRS 13). At the
markets. Fair values are calculated using recognized end of the reporting period, the Group reviews whether
financial valuation models such as discounted cash-flow reclassifications between the fair-value hierarchies are
models or multiples. necessary compared to 31 December of the previous
year.
Other financial assets and liabilities recognized at fair
value through profit or loss relate to derivative financial For the determination of the credit risk from derivative
instruments not used in hedge accounting. These financial instruments which are allocated to the Level 2
financial instruments as well as derivative financial measurement hierarchy, portfolios managed on the basis
instruments used in hedge accounting comprise: of net exposure are applied.

- Derivative currency hedging contracts: the fair values

of cross-currency interest-rate swaps are determined
on the basis of the discounted estimated future cash
flows (taking account of credit premiums and default
risks) using the market interest rates appropriate to
the remaining terms of the financial instruments. The
measurement of currency forwards is based on market
quotes of forward curves; currency options are meas-
ured with market quotes or option-pricing models
using market data.

57
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

D.22
Measurement hierarchy of financial assets and liabilities
recognized at fair value
30 Sept. 2023 31 Dec. 2022
Total Level 11 Level 22 Level 33 Total Level 11 Level 22 Level 33
In millions of euros

Financial assets recognized at fair value

Marketable debt securities 6,779 6,676 103 - 6,101 5,849 252 -
Recognized at fair value through
other comprehensive income 1,248 1,148 100 - 1,641 1,392 249 -
Recognized at fair value
through profit or loss 5,531 5,528 3 - 4,460 4,457 3 -
Equity instruments and debt instruments 1,573 497 435 641 1,439 457 339 643
Recognized at fair value through
other comprehensive income 903 403 217 283 768 341 215 212
Recognized at fair value
through profit or loss 670 94 218 358 671 116 124 431
Other financial assets recognized at
fair value through profit or loss 378 - 376 2 584 - 578 6
Derivative financial instruments
used in hedge accounting 2,843 - 2,843 - 2,463 - 2,463 -
11,573 7,173 3,757 643 10,587 6,306 3,632 649

Financial liabilities recognized

at fair value
Financial liabilities recognized
at fair value through profit or loss 239 - 238 1 171 - 171 -
Derivative financial instruments
used in hedge accounting 1,641 - 1,641 - 2,283 - 2,283 -
1,880 - 1,879 1 2,454 - 2,454 -
1 Fair value measurement is based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities.
2 Fair value measurement is based on inputs that are observable in active markets either directly (i.e., as prices) or indirectly (i.e., derived from prices).
3 Fair value measurement is based on inputs for which no observable market data is available.

58
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

21. Segment reporting

Segment reporting is presented in accordance with the

internal management and reporting system.

Segment information for the third quarter of 2023

resp. 2022 is as follows:

D.23
Segment reporting for the three-month period ended 30 Sept
Mercedes- Mercedes- Mercedes- Total Mercedes-
Benz Cars Benz Vans Benz Mobility segments Reconciliation Benz Group
In millions of euros

Q3 2023
External revenue 26,087 4,751 6,362 37,200 - 37,200
Intersegment revenue 1,044 188 199 1,431 -1,431 -
Total revenue 27,131 4,939 6,561 38,631 -1,431 37,200

Segment profit/loss (EBIT) 3,312 715 363 4,390 452 4,842

Q3 2022
External revenue 27,325 3,983 6,408 37,716 - 37,716
Intersegment revenue 884 326 191 1,401 -1,401 -
Total revenue 28,209 4,309 6,599 39,117 -1,401 37,716

Segment profit/loss (EBIT) 4,034 497 577 5,108 88 5,196

59
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

Segment information for the first nine months of 2023

and 2022 is as follows:

D.24
Segment reporting for the nine-month period ended 30 Sept
Mercedes- Mercedes-
Mercedes- Mercedes- Benz Total Recon- Benz
Benz Cars Benz Vans Mobility segments ciliation Group
In millions of euros

Q1-3 2023
External revenue 79,839 14,080 19,038 112,957 - 112,957
Intersegment revenue 3,348 597 668 4,613 -4,613 -
Total revenue 83,187 14,677 19,706 117,570 -4,613 112,957

Segment profit/loss (EBIT) 11,312 2,283 1,074 14,669 665 15,334

Q1-3 2022
External revenue 78,088 11,392 19,534 109,014 - 109,014
Intersegment revenue 2,956 711 562 4,229 -4,229 -
Total revenue 81,044 12,103 20,096 113,243 -4,229 109,014

Segment profit/loss (EBIT) 12,097 1,227 1,934 15,258 -211 15,047

Table D.25 contains the reconciliation of the total of

the segment’s profit/loss (EBIT) to the EBIT of the Con-
solidated Statement of Income/Loss.

The reconciliation shows items at the corporate level.

Transactions between the segments are eliminated in the
reconciliation.

D.25
Reconciliation of EBIT to Group figures
Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022
In millions of euros

Total of segments’ profit/loss (EBIT) 4,390 5,108 14,669 15,258

Gains/losses on equity-method investments, net1 272 188 611 209
Other reconciling items 2
103 -109 -36 -438
Eliminations 77 9 90 18
EBIT as shown in the Consolidated Statement of Income/Loss 4,842 5,196 15,334 15,047
1 Mainly includes the equity method gains/losses of the shares in Daimler Truck Holding AG.
2 Further information on this is provided in Note 2 of the Notes to the Interim Consolidated Financial Statements.

60
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

22. Related party disclosures services as well as right-of-use assets of €326 million
(31 December 2022: €548 million) vis-à-vis Daimler Truck
shown in leased assets.
Business transactions with related companies are gener-
ally carried out at market terms. Most of the goods and Joint ventures
services supplied between the Group and related com- On 12 May 2022 Mercedes-Benz AG signed an agreement
panies comprise transactions with associated companies with PSA Automobiles SA, Opel Automobile GmbH, Saft
and joint ventures and are shown in table D.26. EV SAS and Saft Groupe to acquire a 33.33% stake in
Automotive Cells Company SE (ACC) through a capital
Associated companies contribution of approximately €390 million. The Group
A large proportion of the Group’s sales of goods and ser- also committed itself to the provision of further funds up
vices to associated companies relates to business rela- to €410 million. The investment in the European battery
tions with the Daimler Truck Group and with LSH Auto cell manufacturer ACC was made in order to promote the
International Limited (LSHAI) and Beijing Benz Automo- development and production of high-performance bat-
tive Co., Ltd. (BBAC). tery cells and modules in the course of the transfor-
mation to “Electric only”. The shares in the joint venture
The leased equipment of the Mercedes-Benz Mobility ACC are included in the Consolidated Financial State-
segment includes commercial vehicles produced by the ments using the equity method and are allocated to the
Daimler Truck Group which have been acquired from Mercedes-Benz Cars segment.
external dealers or other third parties not related to the
Mercedes-Benz Group. Mercedes-Benz Mobility usually In the third quarter of 2023, an additional contract with
receives a residual-value guarantee from Daimler Truck PSA Automobiles SA, Opel Automobile GmbH, Saft EV
for this leased equipment with the obligation to return SAS, Saft Groupe and Automotive Cells Company SE
the respective commercial vehicles to Daimler Truck. At (ACC) was signed in which MB Group committed to pro-
30 September 2023 this guarantee was €289 million vide additional funds of up to €567 million to ACC in
(31 December 2022: €383 million). addition to the commitments agreed in 2022. The other
shareholders committed to the provision of additional
Additionally, Mercedes-Benz Mobility is continuing the funds, too.
leasing and sales-financing business for Daimler Truck’s
commercial vehicles in some markets. To this end, As of 30 September 2023, there are further off-balance
Mercedes-Benz Mobility acquires these vehicles from obligations from guarantees of €270 million (31 Decem-
Daimler Truck and leases them to the end customers. ber 2022: €157 million).
Because Daimler Truck provides residual value guaran-
tees for these vehicles, a leasing contract (head lease) Related persons
between Mercedes-Benz Mobility and Daimler Truck is In August 2023, Mr. Stefan Pierer, member of the Super-
shown. The contract between Mercedes-Benz Mobility visory Board of Mercedes-Benz Group AG and Mercedes-
and the end customer constitutes a sublease in this re- Benz AG, acquired 100% of the shares of Leoni AG, an
spect. The receivables and right-of-use assets shown in international automotive supplier. In addition, Stefan
Table D.26 include demands for the repurchase of vehi- Pierer controls the SHW-Group, also a global automotive
cles by Daimler Truck of €1,210 million (31 December supplier, as well as other companies where supply and
2022: €1,312 million) shown in receivables from financial service relationships exist.

61
 Interim Report Q3 2023 · Mercedes-Benz Group
Interim Consolidated Financial Statements

D.26
Transactions with related companies

Income from sales of goods and Expense from purchases of goods and
services and other income services and other expense
In millions of euros Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022 Q3 2023 Q3 2022 Q1-3 2023 Q1-3 2022

Associated companies 3,923 5,174 12,290 14,044 646 644 1,783 1,999
thereof Daimler Truck Group¹ 213 282 655 788 505 511 1,356 1,620
thereof LSHAI 2,238 2,774 6,796 7,415 72 63 217 186
thereof BBAC 1,467 2,113 4,825 5,828 67 70 208 193
Joint ventures 142 202 343 532 6 8 23 24

Receivables and
right-of-use assets Liabilities²
30 Sept. 31 Dec. 30 Sept. 31 Dec.
In millions of euros 2023 2022 2023 2022

Associated companies 4,162 4,842 529 557

thereof Daimler Truck Group¹ 1,894 2,262 298 332
thereof LSHAI 947 887 23 23
thereof BBAC 1,273 1,646 202 195
Joint ventures 135 93 3 1
1 Temporarily services by corporate functions such as IT, Logistics and Human Resources are included in addition to relationships in the scope of ordinary business, for example, the purchase
and sale of goods and services and leasing agreements.
2 Including liabilities from default risks from guarantees for related parties.

62
 Interim Report Q3 2023 · Mercedes-Benz Group
Auditor’s Review Report

Auditor’s Review Report

To Mercedes-Benz Group AG, Stuttgart requirements of the WpHG applicable to interim group
management reports. A review is limited primarily to
We have reviewed the condensed Interim Consolidated inquiries of company employees and analytical assess-
Financial Statements of Mercedes-Benz Group AG — ments and therefore does not provide the assurance
comprising Consolidated Statement of Income/Loss, attainable in a financial statement audit. Since, in ac-
Consolidated Statement of Comprehensive Income/Loss, cordance with our engagement, we have not performed
Consolidated Statement of Financial Position, Consoli- a financial statement audit, we cannot issue an auditor’s
dated Statement of Changes in Equity, Consolidated report.
Statement of Cash Flows and selected, explanatory
Notes to the Interim Consolidated Financial Statements Based on our review, no matters have come to our
— together with the Interim Group Management Report attention that cause us to presume that the condensed
of the Mercedes-Benz Group AG, Stuttgart, for the period Interim Consolidated Financial Statements have not
from 1 January to 30 September 2023, that are part of been prepared, in material respects, in accordance with
the quarterly financial report according to § 115 WpHG IAS 34, “Interim Financial Reporting” as adopted by the
(“Wertpapierhandelsgesetz“: “German Securities Trading EU, or that the Interim Group Management Report has
Act“). The preparation of the condensed Interim Consoli- not been prepared, in material respects, in accordance
dated Financial Statements in accordance with Interna- with the requirements of the WpHG applicable to interim
tional Accounting Standard IAS 34 “Interim Financial group management reports.
Reporting” as adopted by the EU, and of the Interim
Group Management Report in accordance with the Stuttgart, 25 October 2023
requirements of the WpHG applicable to interim group
management reports, is the responsibility of the Com-
pany’s management. Our responsibility is to issue a KPMG AG
report on the condensed Interim Consolidated Financial Wirtschaftsprüfungsgesellschaft
Statements and on the Interim Group Management
Report based on our review.

We performed our review of the condensed Interim Con-

solidated Financial Statements and the Interim Group
Management Report in accordance with the German Sailer Bock
generally accepted standards for the review of financial Wirtschaftsprüfer Wirtschaftsprüfer
statements promulgated by the Institut der Wirtschafts-
prüfer (IDW) and additional application of the Interna-
tional Standard on Review Engagements 2410 “Review of
Interim Financial Information Performed by the Inde-
pendent Auditor of the Entity” (ISRE 2410). Those stand-
ards require that we plan and perform the review so that
we can preclude through critical evaluation, with a cer-
tain level of assurance, that the condensed Interim Con-
solidated Financial Statements have not been prepared,
in material respects, in accordance with IAS 34, “Interim
Financial Reporting” as adopted by the EU, and that
the Interim Group Management Report has not been
prepared, in material respects, in accordance with the

63
 Interim Report Q3 2023 · Mercedes-Benz Group
Information on the Internet

Information on the Internet

Further information about the Mercedes-Benz share
can be found in the Investors section at

🌐 group.mercedes-benz.com/investors

Annual and interim reports as well as company financial

statements are available there. In addition, you can find
the latest news, the financial calendar, presentations,
various overviews of key figures, information on the
share price and additional services.

For sustainability reasons, the Annual and Interim Reports

are not printed in hard copy. We make all Annual and
Interim Reports available online and as PDF files to
download.

🌐 group.mercedes-benz.com/investors/reports-news

Further information is available at

🌐 group.mercedes-benz.com/en

Mercedes-Benz Group AG Investor Relations

70546 Stuttgart Fax +49 711 17 94075
Tel. +49 711 17 0 [email protected]
🌐 group.mercedes-benz.com/en

64
Mercedes-Benz Group AG, Mercedesstraße 120, 70372 Stuttgart, Germany