Mercedes-Benz Group AG

China: major headwind + strategic “operating point” management - China market contracted >20% YoY; premium segment declining >3 years (top-end hit hardest). - Ola: competition >100 players is structurally pressuring prices/profitability, and spillover via exports. - Mercedes’ response: keep ASP highest among competitors and manage capacity/production and dealer profitabilities; adjust fixed structures quickly. - Opportunity (demand sign): early signs of stronger BEV demand; electric GLC (launched late summer/early fall) has healthy orders at the chosen price point.

Group & segment performance (Q3): profitability up, cash “soft” - Group revenue slightly below prior year; EBIT and EPS significantly up (prior year burden from restructuring/legal proceedings). - Return on sales (group): 5.8%; Free cash flow positive but soft: ~EUR 2.2bn (includes M&A proceeds). - Cars: sales -8% to 407k units, mainly China; ex-China sales +1% (Europe +5%, US +6%). - BEV: +60% YoY; new BEV record for Q3. xEV share: 25% (Europe: ~every 2nd car electrified).

Germany competitiveness & cost actions - Germany is ~15% of sales but ~2/3 of employees/structures. - Ola: restart severance program in Germany in December; comprehensive productivity initiative launched (labor talks ongoing; no figures announced yet). - Goal: improve fixed-cost competitiveness; shift more cost advantages to Eastern Europe/Hungary where applicable.