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Annual Report 2014.

Table of contents

  • Page 1
    Annual Report 2014.

  • Page 2
    ... Revenue Western Europe thereof Germany NAFTA thereof United States Asia thereof China Other markets Investment in property, plant and equipment Research and development expenditure 2 thereof capitalized Free cash ï¬,ow of the industrial business EBIT 3 Value added 3 Net profit 3 Earnings per share...

  • Page 3
    ... capitalized Unit sales Employees (December 31) 3 Daimler Trucks EBIT 1 Revenue Return on sales (in %) 1 Investment in property, plant and equipment Research and development expenditure 2 thereof capitalized Unit sales Employees (December 31) 3 Mercedes-Benz Vans EBIT 1 Revenue Return on sales...

  • Page 4
    .../Oceania Production locations Sales outlets Revenue (in millions of euros) Employees - - 1,534 733 2 - 22,385 3,901 1 - 1,417 5,435 1 - 729 136 1 - 16,955 7,268 11 - 30,595 111,633 Daimler Mercedes-Benz Trucks Vans Daimler Buses Sales Organization Automotive Businesses Daimler Financial Services...

  • Page 5
    Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services

  • Page 6
    ... Clean. Safe. Connected. Clean. Safe. Connected. The Future Has Begun. 1 3 13 25 36 C | The Divisions Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 152 154 160 165 168 171 Chairman's Letter A | To Our Shareholders The Board of Management Report of...

  • Page 7
    Clean. Safe. Connected.

  • Page 8
    ... on the road to emissionfree and accident-free driving. Intelligent connectivity offers us additional and completely new opportunities to shape the mobility of tomorrow. We plan to use these new technologies to keep our loyal customers satisfied, gain new markets and customers, continue along...

  • Page 9
    ... Clean. Safe. Connected. Clean. Clean mobility. Daimler is on the "road to emission-free driving." To this end, we have created an environmental roadmap that focuses on further efficiency enhancements to combustion engines, needs-based hybridization and locally emission-free electric vehicles with...

  • Page 10
    ...further key element on the road to emission-free mobility. The first S 500 PLUG-IN HYBRID1 models were delivered to customers in 2014. Inspired by F1. Knowledge gained with the Formula 1 drive system was incorporated into the new Mercedes-Benz S 500 PLUG-IN HYBRID1. This automobile sets benchmarks...

  • Page 11
    .... Its predictive operating strategy regulates the interaction between the electric motor and the combustion engine and adjusts it in line with the traffic situation, the route ahead and the battery-charge state." From left to right: Dr. Uwe Keller (Project Manager Hybrid Drive), Thomas Ulrich...

  • Page 12
    Daimler | Clean. Safe. Connected. 2.8 l per 100 km The S 500 PLUG-IN HYBRID1 delivers pure driving pleasure with an impressive system ... km 13.5. A+ Use of the electric motor significantly reduces both fuel consumption and CO2 emissions. The model's top efficiency class rating of A+ is therefore...

  • Page 13
    ... light for environmentally friendly hybrids. Daimler is shaping future mobility by combining combustion engines with electric drive systems. Hybrid concepts help reduce fuel consumption and enhance performance. Hybrids also use braking energy to generate electricity to charge the vehicle's battery...

  • Page 14
    ... through recuperation on downhill stretches. In addition, the operating system will charge the battery as much possible before the vehicle reaches a city so as to ensure the car can drive electrically and emission-free on city streets. COMAND Online also provides predictive data on route profiles...

  • Page 15
    ... of our ï¬,eet of vehicles sold in Europe to 129 g/km. More than 100 Mercedes-Benz models have an efficiency class rating of A+ or A and over 60 models emit less than 120 g CO 2/km. 2013 Euro VI commercial vehicle ï¬,eet. Innovative drive systems continually make our trucks, vans and buses even...

  • Page 16
    ...electric drive. In line with our claim to leadership in green technologies, we continue to develop and produce different kinds of vehicles with customized drivesystems. That's how we are meeting the mobility requirements of today and tomorrow in all areas of road transport. w www.mercedes-benz.com...

  • Page 17
    ... on the move worldwide every day. Daimler is working to make the mobility of the future as safe as possible for all of them. Our primary goal is to ensure that accidents never happen to begin with. As a pioneer in the field of safety, we are moving forward on the "road to accidentfree driving." 13

  • Page 18
    ... IAA Commercial Vehicles 2014, the Mercedes-Benz Future Truck 2025 study offered a visually fascinating and technically feasible preview of the future of freight transport. The Future Truck 2025 marks a revolution in road freight transport, traffic infrastructure, the truck-driving profession and...

  • Page 19
    ... 2025 is ready to roll. The truck's lights turn white when the prototype is driven manually. When the truck is driving autonomously, the color of the lights changes to a pulsating blue to clearly indicate the vehicle's operating mode to other road users. Innovative design for the cockpit as well...

  • Page 20
    ...the road. In the summer of 2014, auto industry specialists and journalists from around the world witnessed the cutting-edge capabilities of the Highway Pilot in a camouï¬,aged prototype of the Future Truck 2025. Although a driver was sitting at the steering wheel, the Highway Pilot drove the vehicle...

  • Page 21
    ... in 2013, Mercedes-Benz Cars became the world's first automaker to prove that autonomous driving is possible in cities and on country roads with the Mercedes-Benz S 500 INTELLIGENT DRIVE research vehicle. That car's groundbreaking technology was also incorporated into the Mercedes-Benz Future Truck...

  • Page 22
    ... has always been a trailblazer for innovative safety systems in trucks, vans and buses. Numerous electronic assistance systems support drivers, regulate vehicle speed or autonomously initiate emergency braking maneuvers. Revolutionary technologies such as the Highway Pilot rely on the seamless...

  • Page 23
    ... set of traffic lights. Blind Spot Assist also supports drivers when they change lanes. Following extensive practical testing, Blind Spot Assist will go into series production sometime in the next few years. Blind Spot Assist is an important step on the road to the transport system of the future and...

  • Page 24
    ...equipment in the new Mercedes-Benz Sprinter since the large van's market launch, making the Sprinter unique in its segment. 2012 Active Brake Assist ABA 3 in trucks. The third-generation emergency braking assistance system brings the Mercedes-Benz Antos and Actros trucks to a standstill to prevent...

  • Page 25
    ... important in the future as well. For this reason, we are focusing on driver assistance systems and autonomous driving functions up to and including the groundbreaking use of real-time digital information via augmented reality systems. In this way, we are making the interaction between our vehicles...

  • Page 26
    ... the working world are becoming more mobile and more digital. At the same time, ï¬,exible and economical forms of mobility are needed. Daimler is meeting the requirements of its customers and defining a new digital driving culture with state-of-the-art information technologies, online communication...

  • Page 27
    ... traffic information in real-time or communicate with friends and business partners, for example. Because Daimler aims to actively shape the mobility of the future, we align our forward-looking technologies with the needs of our customers. Among other things, we are working to connect vehicles with...

  • Page 28
    ... and quiet. I use the moovel smartphone app to order a car from mytaxi, and I can also pay for the trip with my phone afterwards. 5:45 p.m. 10:15 a.m. An employee from the dealership picks up the car at my office. I'll still be able to get to my meeting with customers without any problems, though...

  • Page 29
    ... Financial Services. The portfolio offered ranges from ï¬,exible financing solutions to personalized leasing plans and the right insurance policy for every customer's dream car. Mercedes inspire me offers an interesting look at research and development at Mercedes-Benz and also presents reports...

  • Page 30
    ...stage and has been a driving force behind the development of this technology for some years. As a result, we have launched various research projects and are participating in the important Car-to-X communication projects worldwide. As a founder member of the Car 2 Car Communication Consortium, we are...

  • Page 31
    ... system with Mercedes-Benz cars in the pilot cities of Berlin and Hamburg. mytaxi The taxi-ordering app enables a direct connection between taxi driver and passenger. car2go Flexible urban mobility made by Daimler - now operating at 29 locations worldwide. moovel combines the mobility services of...

  • Page 32
    .... Our vehicles and mobility concepts skillfully bring together the requirements of our customers with the complete range of options available in the digital world. www.daimler.com/technology-and-innovation/ w mobility-services-and-connectivity Socially connected and always up to date on the road...

  • Page 33
    ... from the F 015. The research vehicle uses light signals and voice output to communicate with passengers and other road users, thus becoming a social partner in the traffic environment. Harbinger of a mobility revolution: Mercedes-Benz F 015 Luxury in Motion. The Future Has Begun. The F 015...

  • Page 34
    We are on track. "In the coming years, we want to further strengthen what has traditionally differentiated Daimler from the competition: exceptional quality and technological leadership. At the same time, we intend to achieve a level of profitability that is unprecedented at this company."

  • Page 35
    ... are letting our shareholders participate in the company's success and at the same time expressing our confidence that Daimler can achieve even more. Mercedes-Benz Cars made the main contribution to last year's excellent results. With unit sales of 1.72 million vehicles, we sold more cars than ever...

  • Page 36
    ... connected. In business terms, the year 2014 differed widely from region to region for Daimler Trucks. In Europe and Latin America, political uncertainty had a negative impact on market development. But we profited from very good demand for trucks in Japan and North America. In India, we have built...

  • Page 37
    ...nancial services division is the first German company to be ranked amongst the world's top 25 employers. All of these achievements are the result of a clear strategy and its consistent implementation. And we will continue in exactly the same way in 2015. By the end of this year, Mercedes-Benz Cars...

  • Page 38
    China is an important market also for Daimler Trucks: Together with our Chinese partner Foton and the truck brand Auman, we intend to grow rapidly there in the coming years. In India, we will expand our product portfolio in the second half of the year with a new BharatBenz heavy-duty truck. We are ...

  • Page 39
    ... well as with autonomous driving. On this basis, we intend to continue our profitable growth in the coming years. A | To Our Shareholders. The Board of Management Report of the Supervisory Board The Supervisory Board Highlights of 2014 Daimler and the Capital Market Objectives and Strategy 44 46 52...

  • Page 40
    ... of the Board of Management Head of Mercedes-Benz Cars Appointed until December 2016 Wolfgang Bernhard | 54 Daimler Trucks and Buses Appointed until February 2018 Christine Hohmann-Dennhardt | 64 Integrity and Legal Affairs Appointed until February 2017 Wilfried Porth | 56 Human Resources and...

  • Page 41
    ... | 55 Finance & Controlling, Daimler Financial Services Appointed until December 2019 Thomas Weber | 60 Group Research & Mercedes-Benz Cars Development Appointed until December 2016 Since January 1, 2015: Ola Källenius | 45 Mercedes-Benz Cars Marketing & Sales Appointed until December 2017 45

  • Page 42
    ... the product portfolio and securing the Group's long-term competitiveness. Furthermore, the Supervisory Board dealt with fundamental questions of corporate planning including financial, investment, sales and personnel planning, current developments at companies of the Group, revenue development, the...

  • Page 43
    ... the preliminary key figures of the annual company and consolidated financial statements for 2013 and the dividend proposal to be made at the 2014 Annual Shareholders' Meeting were discussed. The preliminary key figures for the year 2013 and the proposal on the appropriation of profit were announced...

  • Page 44
    ... as Mercedes-Benz Cars. In connection with Daimler Trucks and Buses, the topics discussed were model policy, production network, new competitors from the emerging markets, opportunities in new sales markets and emission-free driving for city buses. With regard to Mercedes-Benz Cars, the discussions...

  • Page 45
    ... on April 1, 2015 and until the end of the Annual Shareholders' Meeting that decides on ratification of the actions in the year 2019. Other topics dealt with in the December meeting were corporate governance, as detailed below, and Board of Management remuneration in light of the recommendations...

  • Page 46
    ...and Daimler Financial Services was extended for a further five years as of January 1, 2015. In its meeting on December 11, 2014, the Supervisory Board decided to expand the Board of Management and to appoint Ola Källenius as a new member with responsibility for Sales Mercedes-Benz Cars for a period...

  • Page 47
    ...remuneration report, as well as its own proposed decisions on the items of the agenda for the 2015 Annual Shareholders' Meeting. Appreciation. The Supervisory Board thanks all of the employees and the management of the Daimler Group for their personal contributions to the successful year 2014. With...

  • Page 48
    ... Manager of the Networks Business Group of Nokia Corporation Other supervisory board memberships/directorships: Fortum OYj - Chairwoman Deutsche Telekom AG AkzoNobel N.V. Dr. Bernd Bohr Stuttgart Former Member of the Management Board of Robert Bosch GmbH (since April 9, 2014) Other supervisory board...

  • Page 49
    ... of the General Electric Group's Industrial Division; Managing Partner, Founder, GenNx360 Capital Partners (retired on April 9, 2014) Dr. h.c. Bernhard Walter Frankfurt am Main Former Spokesman of the Board of Management of Dresdner Bank AG (retired on April 9, 2014) Committees of the Supervisory...

  • Page 50
    Highlights of 2014. Determination pays off! 54

  • Page 51
    ... the World Cup in 2014. MercedesBenz's impressive victory in the Formula 1 Championship racing series also reï¬,ects our great determination. All signs point to growth at all of our divisions. We are on schedule with the implementation of our efficiency programs and our new vehicle models have...

  • Page 52
    ...) and a term of one year. The bond issue provides Daimler with an additional source of financing for its rapidly expanding business activities in China. New service: Corporate car-sharing. Daimler Fleet Management, a provider of ï¬,eet-management and ï¬,eet-leasing services, will expand its range of...

  • Page 53
    ... annual capacity of 300,000 units. Daimler on course for profitable growth. In the second quarter of 2014, the company once again sets new records for sales and revenue and significantly increases its operating profit from ongoing business operations. The outlook for fullyear 2014 remains positive...

  • Page 54
    ... two all-new city cars: fortwo and forfour. The new models retain the tried-and-tested rear-engine concept but offer more of everything - more comfort, more safety and more driving pleasure in the city. Daimler presents an autonomously driving truck. The Mercedes-Benz Future Truck 2025 is equipped...

  • Page 55
    ... company. The sale generates proceeds of approximately â,¬600 million, which will be used to strengthen business operations. Cooperation with Tesla will nevertheless remain an important part of Daimler's activities in the field of electric mobility in the future. A new international employer image...

  • Page 56
    ... range of investor relations services. Daimler took advantage of the high level of liquidity on international capital markets to refinance its operations at attractive terms. A.01 Development of Daimler's share price and of major indices End of 2014 End of 2013 14/13 % change Daimler share price...

  • Page 57
    ... from a more favorable stock-market environment and from the solid development of our business operations. Our share price increased again substantially until the end of the financial year and closed at â,¬68.97 on December 30. At the end of the year, the company had a market capitalization of â,¬73...

  • Page 58
    ... the stock exchanges in Frankfurt and Stuttgart. A total volume of 957 million shares were traded in Germany in 2014 (2013: 1,029 million). Daimler shares are also increasingly being traded on multilateral trading platforms and in the over-the-counter market. Employee share purchase plan implemented...

  • Page 59
    ...Shareholders | Daimler and the Capital Market Continuation of comprehensive investor relations activities. In 2014, we once again provided institutional investors, analysts, rating agencies and private investors with timely information regarding the company's business development. We organized road...

  • Page 60
    ... and aftersales processes that ensure we can maintain contact with customers at all times. We also offer our customers tailored transport and mobility services. Best teams. We work in teams whose diversity in terms of gender, nationality and age is extremely important to us. Our employees are proud...

  • Page 61
    ... with the indiâ€' vidual divisions and consolidating our sales and service activities to ensure quality customer service throughout the entire vehicle lifecycle. With a comprehensive model offensive, we will renew and extend the product range of Mercedes-Benz Cars in all segâ€' ments. Within the...

  • Page 62
    ...and the Mercedes-Benz CapaCity L, we also offer bus variants that can transport large numbers of people. This means that we can supply vehicles with ideal passenger capacities for worldwide Bus Rapid Transit (BRT) systems. Daimler Financial Services is also focused on profitable growth. The division...

  • Page 63
    ... ship network in China in 2014 and opened our biggest training center in the world for carâ€'dealership employees. We will begin manufacturing the Câ€'Class and the GLA for the local market in Brazil in 2016. Daimler Trucks is investing in the modernization of its product range in Brazil in order to...

  • Page 64
    ... INTELLIGENT DRIVE research car marks a milestone on the road to autonomous driving, which we want to make a reality in a seriesâ€'production vehicle by the end of this decade. The Mercedesâ€'Benz Future Truck 2025 marks a step forward toward making autonomous driving a reality with trucks as well...

  • Page 65
    ...our manufacturing facilities in Germany, to expand local production in growth markets see page 92 and to enhance our sales organization. A.10 Investment in property, plant and equipment 2015 - 2016 In % Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 73...

  • Page 66
    .... The year 2014 was generally very successful for Daimler. We once again significantly increased our unit sales and revenue, and we were also able to continuously improve the Group's profitability. We thrilled our customers with numerous new products. With pioneering innovations, we set new...

  • Page 67
    ... markets Business development 77 77 78 79 Overall Assessment of the Economic Situation 116 Events after the Reporting Period Profitability EBIT Consolidated statement of income Dividend Net operating profit Value added 82 82 85 86 86 86 117 Remuneration Report Principles of Board of Management...

  • Page 68
    ... Chinese partner Beiqi Foton Motor Co., Ltd., has been producing trucks under the Auman brand name since July 2012. Daimler Trucks' product range includes light, B.01 Consolidated revenue by division Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 55...

  • Page 69
    ... makes us a full-range supplier in the van market. In 2014, we also introduced the new V-Class, which is a new multi-purpose vehicle (MPV). We continue to manufacture the Viano in China for private customers. Mercedes-Benz Vans has manufacturing facilities at a total of nine locations in Germany...

  • Page 70
    ...these funds to strengthen the Group's core business. Strategic partnership in China strengthened. Also in March 2014, Daimler AG and its Chinese partner Beijing Autoâ€' motive Industry Corporation (BAIC) signed an agreement to increase production capacities at Beijing Benz Automotive Co., Ltd. (BBAC...

  • Page 71
    ... an annual capacity of 300,000 units. Production is scheduled to begin with Infiniti models in 2017. The plant will start manufacturing Mercedesâ€'Benz brand vehicles in 2018. In the van segment, Daimler's Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Nissan Motor Co. Ltd. signed a contract...

  • Page 72
    .... The expected returns on liquidity and plan assets of the pension funds of the industrial business are considered with the opposite sign. The cost of equity is calculated according to the capital asset pricing model (CAPM), using the interest rate for long-term risk-free securities (such as German...

  • Page 73
    B | Combined Management Report | Corporate Profile | Economic Conditions and Business Development Economic Conditions and Business Development. The world economy With a real rate of growth of 2.7%, the world economy failed to fulfill our hopes for a more noticeable acceleration of economic ...

  • Page 74
    ...in the bus market volume in Latin America as well. B.06 Global automotive markets Unit sales growth rates 2014 in % 20 15 10 5 0 -5 -10 -15 -20 Total Western Europe NAFTA region1,2 Asia South America1,2 Eastern Europe Passenger cars Commercial vehicles 1 Cars segment includes light trucks 2 Medium...

  • Page 75
    ... Annual Report 2013, Daimler recorded a substantial overall increase in unit sales in 2014. Sales of more than 2.5 million vehicles were 8% higher than in the prior year. This growth was largely driven by Mercedes-Benz Cars (+10%) and Mercedes-Benz Vans (+9%). These divisions thus enabled the Group...

  • Page 76
    ... produced vehicles. In the year under review, BFDA sold 99,200 Auman brand trucks (2013: 103,300), which are not included in the see pages 160 ff Daimler Group's unit sales. E B.09 Market share1 2014 In % Mercedes-Benz Cars Western Europe thereof Germany United States China Japan Daimler Trucks...

  • Page 77
    ...the flexible carâ€'sharing model car2go, moovel was operâ€' ating in 29 locations in Europe and North America by the end of 2014. car2go is thus the clear market leader for flexible see pages 171 ff shortâ€'term car rentals. Revenue. The Daimler Group increased its total revenue in the year 2014 by...

  • Page 78
    ... B.12 EBIT by segment EBIT 2014 In millions of euros Mercedesâ€'Benz Cars Daimler Trucks Mercedesâ€'Benz Vans Daimler Buses Daimler Financial Services Reconciliation Daimler Group 5,853 1,878 682 197 1,387 755 10,752 4,006 1,637 631 124 1,268 3,149 10,815 2013 14/13 % change +46 +15 +8 +59 +9 â€'76...

  • Page 79
    ...Notes to the the information provided in Consolidated Financial Statements. B.13 Development of earnings In billions of euros 12 10 8 6 4 2 0 2010 2011 2012 2013 2014 EBIT Net profit (loss) B.14 Special items affecting EBIT 2014 In millions of euros Mercedes-Benz Cars Impairment of investments in...

  • Page 80
    ... Financial Services In % 30 25 20 15 10 5 0 2010 2011 2012 2013 2014 Mercedes-Benz Vans posted EBIT of â,¬682 million in 2014, a significant improvement on its priorâ€'year earnings of â,¬631 million. The division's return on sales increased to 6.8% from 6.7% in 2013.  B.15 Operating profit...

  • Page 81
    ... the Management Report.  B.17 E Consolidated statement of income The Group's total revenue increased by 10.1% to â,¬129.9 billion in 2014; adjusted for exchange rate effects, it increased by 12.1%. The revenue growth primarily reï¬,ects the strong demand for the products of Mercedes-Benz Cars...

  • Page 82
    ... of capitalized borrowing costs. B.21 Value added 2014 In millions of euros Daimler Group Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 4,416 3,799 761 473 79 457 5,921 2,007 369 445 -4 409 2013 14/13 % change -25 +89 +106 +6 . +12 Value added As...

  • Page 83
    ...increase in EBIT due to the growth in contract volume and the ongoing positive development of risk costs. Average equity rose by â,¬0.5 billion to â,¬7.2 billion. B.22 Net assets (average) 2014 In millions of euros Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial...

  • Page 84
    ...ows from operating and financial activities in a rolling plan. The resulting financial requirements are covered by the use of appropriate instruments for liquidity management (e.g. bank credits, commercial papers, notes); liquidity surpluses are invested in the money market or the capital market to...

  • Page 85
    ... billion in 2014 (2013: cash inï¬,ow of â,¬3.3 billion). This decrease was mainly caused by the realization of the growth strategy. Working capital increased at a higher rate than in the prior-year period due to the higher inventory increase. Growth in new business in leasing and sales financing...

  • Page 86
    ... Financial Services by companies in the industrial business. The positive development of other operating assets and liabilities was related to the business expansion and is primarily due to payments received from sales with service and maintenance contracts and sales with residual-value guarantees...

  • Page 87
    ... as collateral for the guaranteed obligations. Another financial guarantee of â,¬0.1 billion relates to bank loans of Toll Collect GmbH, the operator company of the tollâ€'collection system for trucks in Germany. Other risks arise from an additional guarantee that the Group provided for obligations...

  • Page 88
    ... the capital markets. B.30 Investment in property, plant and equipment by division 2014 In millions of euros Daimler Group in % of revenue Mercedes-Benz Cars in % of revenue Daimler Trucks in % of revenue Mercedes-Benz Vans in % of revenue Daimler Buses in % of revenue Daimler Financial Services in...

  • Page 89
    ..., Mercedesâ€' Benz Bank once again sold ABS bonds in a volume of â,¬1.0 billion to European investors through its Silver Arrow Platform. Bank credit was another important source of refinancing in 2014. Funds were provided not only by large, globally active banks, but increasingly also by a number of...

  • Page 90
    ...of Mercedesâ€'Benz Vans and Daimler Buses in their respective market segments, and the credit metrics which place the Group well within its rating category. On November 27, 2014, Standard & Poor's Ratings Services (S&P) published a report on Daimler AG in which it confirmed our longâ€'term corporate...

  • Page 91
    ...â,¬0.7 billion of goodwill. Mercedes-Benz Cars accounts for 69% of the development costs and Daimler Trucks accounts for 22%. Capitalized development costs amounted to â,¬1.1 billion (2013: â,¬1.3 billion), and account for 20.2% of the Group's total research and development see page 103. expenditure...

  • Page 92
    ... a larger number of model variants as well as the expected positive development of unit sales. This resulted primarily at the Mercedes-Benz Cars and Daimler Trucks divisions in increased stocks of finished and unfinished goods in Germany, China and the United States. Trade receivables increased by...

  • Page 93
    ... in the direct banking business and 7% by liabilities from ABS transactions. Trade payables increased to â,¬10.2 billion due to the higher volume of business (2013: â,¬9.1 billion). The Mercedes-Benz Cars division accounts for 61% of those payables and the Daimler Trucks division accounts for...

  • Page 94
    ...-manufacturing agreements by domestic and foreign subsidiaries and by producers of special vehicles. Daimler AG distributes its products through its own sales network of 32 German sales-and-service centers, through foreign sales subsidiaries and through third parties. The annual financial statements...

  • Page 95
    ... flow from the increased operating profit in 2014. B.36 Condensed statement of income of Daimler AG 2014 In millions of euros Revenue Cost of sales (including R&D expenses) Selling expenses General administrative expenses Other operating income, net Operating profit Financial income Profit from...

  • Page 96
    ... expense from provisions for pensions and similar obligations, which in turn is the result of the ongoing low level of market interest rates. In addition, the restructuring of our salesâ€'andâ€'service centers in Germany is connected with substantial charges on our operating profit in 2015. E 100

  • Page 97
    ... the case in vehicle production. We therefore employ a consistent system of environmental management in order to minimize this impact. - As an employer, we have a responsibility to ensure fair and attractive working conditions for our 280,000 employees worldwide. - As a corporate citizen, we seek...

  • Page 98
    ... of our employees in research and development are key factors behind our vehicles' market success. At the end of 2014, Daimler employed 21,700 men and women at its research and development units (2013: 21,300) A total of 14,000 employees (2013: 13,600) worked at Group Research & Mercedesâ€'Benz Cars...

  • Page 99
    ...1 0 2010 2011 2012 2013 2014 total thereof capitalized B.39 Research and development expenditure by division 2014 In millions of euros Daimler Group thereof capitalized Mercedesâ€'Benz Cars thereof capitalized Daimler Trucks thereof capitalized Mercedesâ€'Benz Vans thereof capitalized Daimler Buses...

  • Page 100
    ...therefore strive to offer our customers safe and efficient low-emission vehicles and associated services. Our vision for the future is to establish a mix of drive systems that reflect market demands. Our "Road to Emissionâ€'free Driving" initiative defines the key development approaches for creating...

  • Page 101
    ... energy management for hybrid vehicles. The engineers who develop new hybrid models are benefiting more and more from cooperation with our successful Formula 1 racing team, which also uses highâ€'tech hybrid drive to save on fuel. The synergies here benefit both production vehicles and race cars...

  • Page 102
    ... normal everyday conditions since 2010. Daimler's fuel-cell fleet, which together with a large number of research cars now totals more than 300 vehicles, has clocked up well over nine million kilometers of driving to date. Our engineers continue to use the results of studies on how they operate to...

  • Page 103
    ...F 015 Luxury in Motion is in touch with its environment using laser projection and LED signals, and thus becomes an interactive partner in road traffic. The research vehicle sets standards also in terms of its drive system: Its total range under electric power with fuel cells is approximately 1,100...

  • Page 104
    ... range of the truck from a standstill to the permitted maximum speed. New emergency braking system for touring coaches. In recent years, the Mercedes-Benz Travego high-deck touring coach has been setting standards for safety technology. The latest world first in the Travego is Active Brake Assist...

  • Page 105
    ...car ï¬,eet of Mercedes-Benz Cars in the EU g/km 170 160 150 140 130 120 2010 2011 2012 2013 2014 E B.44 CO2 emissions Year 2010 2011 2012 2013 2014 g/km 158 150 140 134 129 We plan to use innovative technologies for locally emission-free mobility and, more importantly, new hybrid models, in order...

  • Page 106
    ... drive systems and electric mobility. We also have the most extensive lineup of seriesâ€'production vehicles in this field, ranging from vans and trucks to buses. There are more than 1.2 million environmentally friendly Daimler commercial vehicles equipped with SCR technology on the road worldwide...

  • Page 107
    ...excluding Germany USA Brazil Japan Other 60.3% 12.9% 8.2% 4.4% 4.1% 10.1% B.46 Employees by division 2014 Employees (December 31) Daimler Group Mercedesâ€'Benz Cars Daimler Trucks Mercedesâ€'Benz Vans Daimler Buses Daimler Financial Services Group Functions & Services Sales & Marketing Organization...

  • Page 108
    ... Cars, Daimler Trucks and Mercedes-Benz Vans. Employees will receive their profitsharing payout in April 2015. Slight increase in average age of our employees. The average age of our global workforce in 2014 was 42.4 years (2013: 42.3). Our employees in Germany were 43.8 years old on average (2013...

  • Page 109
    ... in order to achieve sustained improvements for the benefit of the Group and its employees. Award for Daimler Financial Services. Daimler's Financial Services division was named one of the 25 best international employers worldwide by the independent Great Place to Work Institute in 2014. This makes...

  • Page 110
    ... program with an internship at Mercedesâ€' Benz Turkey or at dealerships or supplier companies. In view of the project's success, we have also expanded it to include a university scholarship program. Traffic safety. As we move along the "road to accidentâ€'free driving," we are utilizing assistance...

  • Page 111
    ... relief goods. The "Ekukhanyeni" project helps severely impoverished people in a town near Johannesburg, South Africa. Mercedes-Benz South Africa has been supporting the initiative, which has built a daycare center and an elementary school, since 2010. These days, "Ekukhanyeni" is also promoting the...

  • Page 112
    ... set for the year 2014. We significantly increased our unit sales by 8% to 2.5 million passenger cars and commercial vehicles despite difficult conditions in some major markets. Thanks to numerous new and successful products, Mercedes-Benz Cars and Mercedes-Benz Vans set new records for unit sales...

  • Page 113
    ... the Mercedes-Benz S 500 INTELLIGENT DRIVE and the Future Truck 2025. These research vehicles show that fully autonomous driving can soon become reality on our roads in the foreseeable future. see page 167 and pages 36 f Events after the Reporting Period. Since the end of the 2014 financial year...

  • Page 114
    ... of all stakeholders, in particular those of the shareholders as the owners of the Company and those of the employees, are harmonized through the focus on the Group's long-term success. Practical implementation. For each upcoming financial year, the Presidential Committee at first prepares a review...

  • Page 115
    ... year. In the agreements on the inclusion maximum amounts of remuneration in their current contracts of service effective as of January 1, 2014, the members of the Board of Management also agreed to the application of this percentage limit to the annual bonus payments for the years 2012 and 2013...

  • Page 116
    ... several years and to hold those shares until the end of their Board of Management membership. The number of shares to be held was set in 2005 when the Performance Phantom Share Plan was introduced in relation to double the then annual base salary for each ordinary member of the Board of Management...

  • Page 117
    ...by Group companies (excluding retirement benefit commitments) to the memâ€' bers of the Board of Management of Daimler AG is calculated as the total of the amounts of - the base salary in 2014, - the half of the annual bonus for 2014 payable in 2015 and measured as of the end of the reporting period...

  • Page 118
    ... sources of income, and are subject to annual perâ€' centage increases described above in the explanation of these pension agreements. Service costs for pension obligations according to IFRS amounted to â,¬2.8 million in 2014 (2013: â,¬2.5 million). The present value of the total defined benefit...

  • Page 119
    ... the notes to the annual company financial statements of Daimler AG and on our website. In general, Board of Management members have no right to separate remuneration for board positions held at other companies of the Group. Loans to members of the Board of Management. In 2014, no advances or loans...

  • Page 120
    ... in 2015 for 2013 at the value with target achievement of 100%, B.51 Benefits granted Dr. Dieter Zetsche Chairman of the Board of Management and Head of Mercedesâ€'Benz Cars Jan. 1 - Dec. 31, 2013 In thousands of euros Base salary Taxable nonâ€'cash benefits and other fringe benefits Total Annual...

  • Page 121
    ...- the retirement pension expense in 2013 (service cost in 2013). The total of "benefits granted" for financial year 2014 is calculated from - the base salary for 2014, - the taxable non-cash benefits for the year 2014, - the half of the annual bonus payable in 2015 for 2014 at the value with target...

  • Page 122
    ...(2010, 2011, 2012 and 2013) paid in 2013, - the value of stock options 2004 when exercised (as defined by German tax law), and - the retirement pension expense in 2013 (service costs in 2013). B.52 Payments made Dr. Dieter Zetsche Chairman of the Board of Management and Head of Mercedesâ€'Benz Cars...

  • Page 123
    ... Combined Management Report | Remuneration Report The total of "payments made" for financial year 2014 is calculated from: - the base salary in 2014, - the taxable non-cash benefits and other fringe benefits in 2014, - the half of the annual bonus payable in 2015 for 2014 at the value as of the end...

  • Page 124
    ... services, except for the remuneration paid to the members of the Supervisory Board representing the employees in accordance with their contracts of employment. The remuneration of all the activities of the members of the Supervisory Board of Daimler AG in the year 2014 was thus â,¬3.6 million (2013...

  • Page 125
    ... the Stock Ownership Guidelines to acquire Daimler shares with a part of their Plan income up to a defined target volume and to hold them for the duration of their employment at the Daimler Group. On April 7, 2010, Daimler AG and the Renaultâ€'Nissan Alliance signed a master cooperation agreement on...

  • Page 126
    ... may not exceed 18 months. No use has yet been made of this authorization. By resolution of the Annual Shareholders' Meeting held on April 9, 2014, the Board of Management was authorized with the consent of the Supervisory Board to increase the share capital of Daimler AG in the period until April...

  • Page 127
    ...to bear its share of the costs of the development of shared components even if the development were terminated for that party. - An agreement with BAIC Motor Co., Ltd., relating to a jointly held company for the production and distribution of cars of the Mercedesâ€'Benz brand in China, by which BAIC...

  • Page 128
    ... recognizing and managing entrepreneurial risks and opportunities at an early stage. As part of the strategy process, risks related to the planned long-term development and opportunities for further profitable growth are identified and inteâ€' grated into the decisionâ€'making process. In order to...

  • Page 129
    .... The category descriptions include the explaination of important changes in comparison to the prior year. The tasks of the employees responsible for risk and opportunity management include, in addition to identification and assessâ€' ment, the development of measures and the initiation of such...

  • Page 130
    ...to the world economy, Daimler along with the majority of economic research institutes anticipates a slight acceleration of growth in 2015. Economic developments in 2014 are described in detail in the "Economic Conditions and Business Development" section of this Management Report; growth assumptions...

  • Page 131
    ... in the construction industry have considerably increased the risk of an abrupt adjustment in the real estate market or a bankingâ€'sector crisis. China is now a key sales market for the Mercedesâ€'Benz Cars and Mercedesâ€'Benz Vans divisions in particular, which means any disruptions caused by the...

  • Page 132
    ...the Mercedes-Benz Cars and Daimler Trucks divisions, these include increasing competitive and price pressure. A change within the framework of a product's lifecycle bears the risk of a negative volume effect in relation to the anticipated sales volumes. In addition, aggressive pricing policies, the...

  • Page 133
    ... at Mercedes-Benz Cars relate to the development of the used-car market. As part of the established residual-value management process, certain assumptions are made on the local and corporate levels regarding the expected level of prices, on which basis the cars returned in the leasing business are...

  • Page 134
    ... some of the suppliers remains difficult due to the tough competitive pressure. This has necessitated individual or joint support actions by vehicle manufacturers to ensure their production and sales. In the context of supplier risk management, regular reporting dates are set for suppliers for which...

  • Page 135
    ... cities through increasing measures, such as restrictions on vehicles in inner cities, congestion charges and other types of roadâ€'use fees. This stimulates demand for mobility services including car sharing services. In order to utilize the resulting opportunities, Daimler is present in the market...

  • Page 136
    ... a short-term decline in production volume during the initial production phase. In order to achieve a very high level of quality, which is one of the key factors for a customer's decision to buy a product of the Daimler Group, it is necessary to make investments in new products and technologies that...

  • Page 137
    ...Information technology plays a crucial role for the Daimler Group's business processes. Storing and exchanging data in a timely, complete and correct manner is of key importance for a global group such as Daimler. Appropriately secure IT systems and a reliable IT infrastructure must be used in order...

  • Page 138
    ...-price risks and opportunities are limited. In addition, the Group is exposed to credit and country-related risks. As part of the risk management process, Daimler regularly assesses these risks by considering changes in key economic indicators and market information. Pension plan assets to cover...

  • Page 139
    ...current financial year or could lead to changes in the periodic net pension expense in the following financial year. The market value of plan assets is determined to a large degree by developments in the capital markets. Unfavorable or favorable developments, especially relating to equity prices and...

  • Page 140
    ...cash ï¬,ows anticipated from the Group's growth could not be realized. Credit rating upgrades could lead to lower borrowing costs for the Group and also facilitate its access to financing sources on the money and capital markets. If the positive development of the Group should continue and its cash...

  • Page 141
    ... achieving growth and profitability targets cannot be completely ruled out. The aforementioned opporâ€' tunities represent both potentials and challenges for the Daimler Group. By effectively and flexibly focusing the production program and sales activities on changing conditions, the divisions of...

  • Page 142
    ... are generally based on the operational planning of Daimler AG as approved by the Board of Management and the Supervisory Board in December 2014. This planning is based on the premises we set regarding the economic situation and the development of the automotive markets. It involves assessments made...

  • Page 143
    ... important to us of various emerging markets, we anticipate increased volatility. In order to counteract the risks arising for our business as a result of the still very volatile exchange rates, we conduct hedging transactions as far as this makes sense for the various currencies. For the year 2015...

  • Page 144
    ... November 2014. Both of these products will be launched in all key markets in 2015 and will therefore contribute to the positive development of unit sales at Mercedes-Benz Cars. As we had lacked a four-seat smart model in recent years, we are now able to address completely new target groups with...

  • Page 145
    ..., the specific targeting of younger customers, the expansion of business especially in Asia, and the further development of our online sales channels. We will continue to grow also with the ï¬,exible car-sharing model, car2go, and will systematically expand our range of mobility services under the...

  • Page 146
    ...for new models and product enhancements and the new bus plant in India. Research and development Dividend At the Annual Shareholders' Meeting on April 1, 2015, the Board of Management and the Supervisory Board will propose an increase in the dividend to â,¬2.45 per share (prior year: â,¬2.25). With...

  • Page 147
    ... statement on future development We have implemented our strategy consistently and with great determination in recent years, and this is now beginning to pay off. Our new vehicle models are extremely well received by our customers. We are strengthening our market position worldwide and increasing...

  • Page 148
    ... our product range, and we were able to enter additional markets and market segments with new models. At the same time, we further improved the efficiency of our processes. In order to create the right conditions for future growth, we modernized and expanded our worldwide production network. 152

  • Page 149
    ... technology and design of new smart models - Numerous awards for Mercedes-Benz - Foundations laid for further growth in China - "Best Customer Experience" pushed forward - Extensive investment in worldwide production network - World champions in Formula 1 - CO2 emissions reduced to an average...

  • Page 150
    ...the year under review, thereby laying the foundations for future growth. C.01 Mercedes-Benz Cars 2014 Amounts in millions of euros EBIT Revenue Return on sales (in %) Investment in property, plant and equipment Research and development expenditure thereof capitalized Production Unit sales Employees...

  • Page 151
    ... | Mercedes-Benz Cars The new Mercedes-Benz S-Class coupe: breathtaking design and refined sportiness. Record unit sales for Mercedes-Benz. Unit sales of the Mercedes-Benz brand increased by 11% to 1,630,100 vehicles in 2014. This is the fourth consecutive year in which the brand has set a new...

  • Page 152
    ...Mercedes-AMG to attract new customer groups in both new and established markets. Within the framework of the AMG Green Performance Strategy, fleet fuel consumption has been reduced by 35% over the past five years with the help of an extensive range of technical modifications. New engine technologies...

  • Page 153
    ... our sales network in China, which now comprises a total of nearly 450 dealerships. In order to ensure that we can staff our growing sales organization with highly qualified employees, we opened Mercedesâ€'Benz's biggest training center in the world for car dealership staff in Shanghai in July 2014...

  • Page 154
    ...(PwC) corporate consulting firm. Best Customer Experience. The Best Customer Experience program is designed to ensure completely personalized service for customers - from the initial contact to advice, test drives, purchases and aftersales services. Our goal here is to make Mercedesâ€'Benz even more...

  • Page 155
    ... our car and engine plants in Germany in 2014. We are also expanding our vehicle production capacities in the United States and China. A new logistics center is being built in Speyer, Germany, to enable us to efficiently and flexibly manage the growing material flows in our global production network...

  • Page 156
    ... America and to achieve successful results in fullâ€'year 2014. C.03 Daimler Trucks 2014 Amounts in millions of euros EBIT Revenue Return on sales (in %) Investment in property, plant and equipment Research and development expenditure thereof capitalized Production Unit sales Employees (December...

  • Page 157
    ...India. With the start of production of the left-hand-drive versions and the Euro IV and Euro V versions, these vehicles can also be exported to the Middle East and Latin America. Outstanding product acceptance thanks to low total cost of ownership. Daimler Trucks once again increased its unit sales...

  • Page 158
    ... heavy-duty Mercedes-Benz trucks to 25.8% (2013: 24.7%). We will make major investments in our production facilities and products in the coming years in order to ensure we remain competitive in this strategically important market and are able to react flexibly to future changes. Our market share of...

  • Page 159
    ... Corporation since September 2014. These vehicles are also based on FUSO's lightâ€'duty truck platform and are marketed in Japan under the name "Kazet." Sale of RRPSH shares. In the first quarter of 2014, the Board of Management and the Supervisory Board of Daimler AG made the decision to transfer...

  • Page 160
    ...numerous vehicle world premieres, an extensive range of services and the spectacular Mercedes-Benz Future Truck 2025 at the 65th IAA Commercial Vehicles show in Hanover in September 2014. The Future Truck 2025 autonomously driving vehicle is a key component of the transportation system of the future...

  • Page 161
    ... of the potential offered by the European and North American van markets.  C.05 Continued growth. Mercedesâ€'Benz Vans sold 294,600 vehicles worldwide in 2014. This figure marks a new sales record and an increase of 9% from the prior year. Our Sprinter, Vito and Citan vans are targeted mainly...

  • Page 162
    ... strategy. With this vehicle, Mercedes-Benz Vans redefines the MPV and sets new standards in the segment both aesthetically and technologically. The model's design follows the new design idiom for Mercedes-Benz cars and ensures that the V-Class stands out visually from the crowd as it communicates...

  • Page 163
    ... is now utilizing its "Mercedes-Benz Vans goes global" strategy with the Vito. As a result, the vehicle will be launched in North and South America in 2015. Long-term production strategy defined for next-generation Sprinter. The Sprinter is ready for the future. In October 2014, the company decided...

  • Page 164
    ... program had their full effect during the reporting year. The division actually exceeded the GLOBE 2013 earnings improvement target of â,¬200 million. Varied business development in core regions. In Western Europe, the Daimler Buses brands Mercedes-Benz and Setra offer not only a complete range...

  • Page 165
    ... Upper picture: The Setra TopClass 500 is fitted with the TopSky Panorama glass roof and offers passengers exceptional space and comfort. Lower picture: Plenty of space - the large-capacity articulated bus Mercedes-Benz CapaCity L offers a solution for urban traffic problems with space for 191...

  • Page 166
    ...Truck and Bus Corporation in October 2014 provided customers, municipal authorities and the media with information on bus rapid transit systems. Major international contracts. The RATP Group, which provides public transport services in the Paris metropolitan area, opted to purchase 199 Mercedes-Benz...

  • Page 167
    ... carâ€'sharing, broke the oneâ€'million customer mark for the first time ever at the end of the year under review. Daimler Financial Services was named one of the 25 best international employers worldwide by the independent Great Place to Work institute. Number of financed and leased vehicles...

  • Page 168
    Upper picture: Online or in direct dialog - customers of Daimler Financial Services can gain information on financing and leasing offers conveniently on all channels. Lower picture: Everyone can find the right mode of transport for his or her needs with the new moovel app. 172

  • Page 169
    ... business operations in the area of innovative mobility services in 2014. At the end of the year, more than one million customers were registered with the moovel Group for the first time - 86% more than in 2013. With the car2go brand, moovel is the clear market leader for flexible shortâ€'term car...

  • Page 170
    We act responsibly and sustainably. Daimler's Board of Management and Supervisory Board are committed to the principles of good corporate governance. All of our activities are based on responsible, transparent and sustainable management. 174

  • Page 171
    ... operation of the Board of Management and of the Supervisory Board and its committees - Shareholders and the Annual Shareholders' Meeting - Shares held by the Board of Management and the Supervisory Board, directors' dealings - Risk management and financial reporting - Corporate governance statement...

  • Page 172
    ...early February 2014, the Audit Committee dealt with the preliminary figures of the annual company financial statements and the annual consolidated financial statements for the year 2013, as well as with the proposal on the appropriation of profits made by the Board of Management. The preliminary...

  • Page 173
    ... 2014 Annual Shareholders' Meeting and with the annual audit plan of the Internal Auditing department for the year 2014. In the meetings during 2014 relating to the quarterly results, the Audit Committee discussed the interim financial reports before their publication with the Board of Management...

  • Page 174
    ... to answer supplementary questions and to provide additional information. The audit reports on the company and consolidated financial statements and on the internal control system (ICS), the report on the risk management system for the year 2014, the Annual Report 2014 and important issues related...

  • Page 175
    ... to answer questions on all aspects of the Code. Training and communication. In September 2014, we introâ€' duced an online game known as "Monster Mission." The game increases employee awareness of the principles contained in the Integrity Code by simulating typical everyday decisionâ€' making...

  • Page 176
    ... Supervisory Board. We offer specific training courses to ensure compliance staff members remain up to date on the repeated changes made to laws and regulations. All new compliance employees also receive comprehensive orientation through a practical comâ€' pliance seminar. Antitrust law Our Group...

  • Page 177
    ... of the Board of Management) ceased to apply effective from January 1, 2014, when the members of the Board of Manâ€' agement approved the inclusion of the upper limits specified in clause 4.2.3 Paragraph 2 sentence 6 of the Code in their current service agreements. Stuttgart, December 2014 For the...

  • Page 178
    ... within the company as well as conduct toward customers and business partners. Fairness, responsibility and compliance with legislation are key principles in this context. The Integrity Code is based on a shared understanding of values, which was developed together with the Daimler employees. In...

  • Page 179
    ...the Board of Management determines the Group's strategic focus, defines the corporate goals and makes decisions concerning operational planning issues. The members of the Board of Management must represent the interests of the Company and share responsibility for managing the Group's entire business...

  • Page 180
    ... and advises the Board of Management with regard to its management of the Company. At regular intervals, the Supervisory Board receives reports from the Board of Management on the Group's strategy, corporate planning, revenue development, profitability, business development and general situation...

  • Page 181
    D | Corporate Governance | Corporate Governance Report The Supervisory Board reviews the annual company financial statements, the annual consolidated financial statements and the management report of the Company and the Group, as well as the proposal for the appropriation of distributable profits. ...

  • Page 182
    ... and are supported by the Company in doing so. Daimler AG offers courses of further training to the members of its Superâ€' visory Board as required. Possible contents of such courses include subjects of technological and economic developments, accounting and financial reporting, internal control...

  • Page 183
    ... the Supervisory Board for its approval a complete list of the sideline activities of each member of the Board of Management. In addition, the Presidential Committee decides on questions of corporate governance, on which it also makes recommendations to the Supervisory Board. It supports and advises...

  • Page 184
    ... in its business. In addition to other methods of communication, we also make extensive use of the Company's website. All of the important information disclosed in 2014, including annual and interim reports, press releases, voting rights notifications from major shareholders, presentations, and...

  • Page 185
    ... | Corporate Governance Report Directors' Dealings As of December 31, 2014, the members of the Board of Management held a total of 0.26 million shares or options on shares of Daimler AG (0.025% of the shares issued). At the same date, members of the Supervisory Board held a total of 0.02 million...

  • Page 186
    ... Consolidated Financial Statements presented as follows have been prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union (EU). They also comply with additional requirements set forth in Section 315a (1) of the German Commercial Code (HGB...

  • Page 187
    ... statement of cash ï¬,ows Legal proceedings Financial guarantees, contingent liabilities and other financial obligations Financial instruments Management of financial risks Segment reporting Capital management Earnings per share Related party relationships Remuneration of the members of the Board...

  • Page 188
    ... 20131 Daimler Financial Services (unaudited additional information) 2014 20131 Note In millions of euros Revenue Cost of sales Gross profit Selling expenses General administrative expenses Research and non-capitalized development costs Other operating income Other operating expense Profit/loss on...

  • Page 189
    ... 6,842 -1,485 1,878 -46 2014 Noncontrolling interests 2014 Daimler Group 2013 Shareholders of Daimler AG 2013 Noncontrolling interests 2013 1 See Note 20 for other information on comprehensive income/loss. The accompanying notes are an integral part of these consolidated financial statements. 193

  • Page 190
    ... Industrial Business Daimler Financial Services (unaudited additional (unaudited additional information) information) At December 31, 2013 2014 At December 31, 2013 2014 Note In millions of euros Assets Intangible assets Property, plant and equipment Equipment on operating leases Equity-method...

  • Page 191
    ... Flows Consolidated Statement of Cash Flows1. E.04 Consolidated Industrial Business (unaudited additional information) 2014 2013 Daimler Financial Services (unaudited additional information) 2014 2013 2014 In millions of euros Profit before income taxes Depreciation and amortization/impairments...

  • Page 192
    ...Statement of Changes in Equity1. E.05 Share capital In millions of euros Balance at January 1, 2013 Net profit Other comprehensive income/loss before taxes Deferred taxes on other comprehensive income Total comprehensive income/loss Dividends Share-based payment Capital increase/Issue of new shares...

  • Page 193
    ... income Total comprehensive income/loss Dividends Share-based payment Capital increase/Issue of new shares Acquisition of treasury shares Issue and disposal of treasury shares Changes in ownership interests in subsidiaries Other Balance at December 31, 2013 Balance at January 1, 2014 Net profit...

  • Page 194
    ... Group and for the presentation of a true and fair view of its profitability, liquidity and capital resources and financial position due to their inactive or minor business activities. Therefore, these companies are not consolidated and hence have no effect on the consolidated financial statements...

  • Page 195
    ...income is presented using the cost-of-sales method. Commercial practices with respect to certain products manufactured by the Group necessitate that sales financing, including leasing alternatives, be made available to the Group's customers. Accordingly, the Group's consolidated financial statements...

  • Page 196
    ...on the consolidated statement of income in 2014 if the original allocation of the cost centers to the individual functional costs had been retained. There are no effects on net profit, basic and diluted earnings per share or Group equity. Measurement. The consolidated financial statements have been...

  • Page 197
    ... measured at amortized cost. Subsidiaries, associated companies, joint ventures and joint operations whose business is non-active or of low volume and that are not material for the Group and the fair presentation of financial position, liquidity and capital resources, and profitability are generally...

  • Page 198
    ... vehicles are sold with free or reduced-in-price service programs, the Group allocates revenue to the various elements based on their estimated fair values. Research and non-capitalized development costs. Expenditure for research and development that does not meet the conditions for capitalization...

  • Page 199
    ...at each year-end. Changes in expected useful lives are treated as changes in accounting estimates. The amortization expense on intangible assets with finite useful lives is recorded in functional costs. Development costs for vehicles and components are recognized if the conditions for capitalization...

  • Page 200
    ... from financial services. The net investment of a lease agreement is the gross investment (future minimum lease payments and non-guaranteed residual value) discounted at the rate upon which the lease agreement is based. E.09 Useful lives of property, plant and equipment Buildings and site...

  • Page 201
    ...based on the capital asset pricing model (CAPM) taking into account current market expectations. In calculating the risk-adjusted interest rate for impairment test purposes, specific peer group information for beta factors, capital structure data and cost of debt are used. Periods not covered by the...

  • Page 202
    ... location and condition. Costs for large numbers of inventories that are interchangeable are allocated under the average cost formula. In the case of manufactured inventories and work in progress, cost also includes production overheads based on normal capacity. Financial instruments. A financial...

  • Page 203
    ...for-sale financial asset is impaired, the difference between its cost (net of any principal payment and amortization) and its current fair value (less any impairment loss previously recognized in the statement of income) is reclassified from other comprehensive income/loss to the statement of income...

  • Page 204
    ...consideration in the functional costs in the consolidated statement of income. The discount factors used to calculate the present values of defined benefit pension obligations are to be determined by reference to market yields at the end of the reporting period on high-quality corporate bonds in the...

  • Page 205
    ... at the end of the reporting period. Provisions are regularly reviewed and adjusted as further information becomes available or circumstances change. A provision for expected warranty costs is recognized when a product is sold, upon lease inception, or when a new warranty program is initiated...

  • Page 206
    ... pension cost are based on various mathematical models. The calculations are subject to various assumptions on matters such as current actuarially developed probabilities (e.g. discount factors and costof-living increases), future fluctuations with regard to age and period of service, and experience...

  • Page 207
    ... and management of assets. The ABS companies are primarily used for the Group's refinancing. The assets transferred to structured entities usually result from the Group's leasing and sales financing business. Those entities refinance the purchase price by issuing securities. At the reporting date...

  • Page 208
    ...51%; Daimler increased its equity interest in the jointly owned sales company Beijing Mercedes-Benz Sales Service Co., Ltd. also by 1% to 51%. EADS. In 2013, Daimler sold its equity interest in the European Aeronautic Defence and Space Company EADS N.V. (since January 2, 2014: Airbus Group N.V.) and...

  • Page 209
    ... competitive German market. In addition, the restructuring program includes the plan to sell selected operations of the Group's current sales network, primarily by the end of 2015. Due to their minor impact on the Group's profitability, liquidity and capital resources and financial position, assets...

  • Page 210
    ... European commercial vehicle manufacturers. E.15 Average number of employees 2014 Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services Group functions and services Sales and marketing Other 128,883 83,343 16,147 16,419 8,594 26,471 - - 279,857 2013 97,003...

  • Page 211
    ... E.22. For German companies, in 2014 and 2013, deferred taxes were calculated using a federal corporate income tax rate of 15%, a solidarity tax surcharge of 5.5% on each year's federal corporate income taxes, and a trade tax rate of 14%. In total, the tax rate applied for the calculation of German...

  • Page 212
    ...nitely. E.25 Split of tax assets and liabilities before offset At December 31, 2013 2014 In millions of euros Intangible assets Property, plant and equipment Equipment on operating leases Inventories Receivables from financial services Other financial assets Tax loss carryforwards and unused tax...

  • Page 213
    ... years. E.26 Change of deferred tax assets, net 2014 In millions of euros Deferred tax assets, net as of January 1 Deferred tax expense Change in deferred tax expense/benefit on financial assets available-for-sale included in other comprehensive income/loss Change in deferred tax expense/benefit...

  • Page 214
    ... useful lives, which relate to the Daimler Trucks segment as well as distribution rights of Mercedes-Benz Cars with indefinite useful lives. The Group plans to continue to use these assets unchanged. Table  E.29 shows the line items of the consolidated statement of income in which total...

  • Page 215
    ... Financial Statements E.29 Amortization expense for intangible assets in the consolidated statement of income 2014 In millions of euros Cost of sales Selling expenses General administrative expenses Research and non-capitalized development costs 1,344 92 41 30 1,507 1,319 30 25 6 1,380 2013...

  • Page 216
    ...31. At December 31, 2014, equipment on operating leases with a carrying amount of â,¬4,367 million is pledged as security for liabilities from ABS transactions related to a securitization transaction of future lease payments on operating leases and related vehicles (2013: â,¬5,084 million) (see also...

  • Page 217
    ... operations Subsidiaries Total E.34 Key figures on interests in associated companies accounted for using the equity method EADS In millions of euros At December 31, 2014 Equity interest (in %) Stock market price1 Equity investment2 Equity result2 Dividends to Daimler At December 31, 2013 Equity...

  • Page 218
    ... engines and related components. RRPSH and its subsidiary procure engines, other parts and services from Daimler AG. On September 25, 2012, the dependent company RRPS, formerly Tognum AG (Tognum) and the controlling company RRPSH concluded a control and profit and loss transfer agreement, resulting...

  • Page 219
    ...), Daimler AG und BAIC Motor Corporation Ltd. (BAIC Motor) as a joint venture. BBAC produces and distributes Mercedes-Benz passenger cars and spare parts in China. In 2013, Daimler participated in a capital increase and made a payment of approximately â,¬160 million. The Chinese partner BAIC Motor...

  • Page 220
    ... in the Group's consolidated financial statements E.35 Summarized IFRS financial information on significant associated companies accounted for using the equity method BBAC1 2013 BAIC Motor2 2013 Kamaz3 2013 2014 In millions of euros Information on the statement of income Revenue Profit/loss from...

  • Page 221
    ... ended on the day of the annual shareholders' meeting. After that, the equity interest was recognized until it was sold as a financial asset available for sale at fair value based on the stock-market price. The difference between the first-time fair value measurement on June 3, 2014 using the stock...

  • Page 222
    ... purchased by dealers from third parties, primarily used vehicles traded in by dealers' customer or real estate such as dealers' showrooms. E.37 Receivables from financial services At December 31, 2014 Non-current Total At December 31, 2013 Non-current Total Current In millions of euros Sales...

  • Page 223
    ...automotive business, Daimler Financial Services sold a nonautomotive asset that was subject to finance lease contracts in 2014. This resulted in a cash inflow of â,¬69 million (2013: â,¬48 million). The pre-tax income from this transaction in 2014 amounted to â,¬45 million (2013: â,¬11 million), and...

  • Page 224
    ... were sold (2013: â,¬37 million). The gains realized on the sales were â,¬5 million in 2014 (2013: â,¬15 million). As of December 31, 2014, the Group did not generally intend to dispose of any of the reported equity instruments. Financial assets recognized at fair value through profit or loss relate...

  • Page 225
    ...million at December 31, 2014 (2013: â,¬798 million) and are primarily spare parts. Based on the requirement to provide collateral for certain vested employee benefits in Germany, the value of company cars included in inventories at Daimler AG in an amount of â,¬609 million at December 31, 2014 (2013...

  • Page 226
    ... assessment are grouped and subject to collective impairment allowances to cover credit losses. Further information on financial risk and types of risk is provided in Note 32. 20. Equity See also the consolidated statement of changes in equity  E.05. Share capital. The share capital is divided...

  • Page 227
    ... profit reported in the annual financial statements of Daimler AG (parent company only) in accordance with the German Commercial Code (HGB). For the year ended December 31, 2014, the Daimler management will propose to the shareholders at the Annual Shareholders' Meeting to pay out â,¬2,621 million...

  • Page 228
    ... values as of balance sheet date. The options were exercised completely in 2013. The pre-tax effects of share-based payment arrangements for the executive managers of the Group and the members of the Board of Management of Daimler AG on the consolidated statement of income and consolidated statement...

  • Page 229
    ...event of exercise, the Group generally issued ordinary shares. E.49 Expenses in the consolidated statement of income resulting from share-based payments to current members of the Board of Management Dr. Dieter Zetsche 2013 2014 In millions of euros PPSP SOP Medium-term component of the annual bonus...

  • Page 230
    ... stock options in 2013. The average exercise price was â,¬43.57 per share. The members of the Board of Management Dr. Wolfgang Bernhard, Dr. Christine Hohmann-Dennhardt, Wilfried Porth, Hubertus Troska and Bodo Uebber had no outstanding or exercisable option rights in the year 2013. 22. Pensions...

  • Page 231
    ... pension obligations result at the Daimler Group in particular from changes in financial assumptions such as discount rates and increases in the cost of living, but also from changes in demographic assumptions such as adjusted life expectancies. With most of the German plans, expected long-term...

  • Page 232
    ...fit pension obligations and fair value of plan assets 2014 Non-German plans 2013 Non-German plans Total In millions of euros Present value of the defined benefit obligation at January 1 Current service cost Interest cost Contributions by plan participants Actuarial gains (-)/losses from changes in...

  • Page 233
    ...the investment process. E.53 Composition of pension plan assets 2014 Non-German plans 2013 Non-German plans Total In millions of euros Energy, commodities and utilities Financials Healthcare Industrials Consumer goods Information technology and telecommunication services Others Equities Government...

  • Page 234
    ...set in the fourth quarter of a financial year. In addition, the Group expects to make pension benefit payments of â,¬0.9 billion in 2015. The weighted average duration of the defined benefit obligations is shown in table  E.58. E.54 Pension cost 2014 Non-German plans 2013 Non-German plans Total...

  • Page 235
    ...-capitalized development costs Interest income Interest expense -318 -106 -51 -74 3 -292 -838 -313 -121 -43 -71 2 -293 -839 2013 E.56 Significant factors for the calculation of pension benefit obligations German plans At December 31, 2013 2014 In percent Discount rates Expected increase in cost...

  • Page 236
    ... public sector. In addition, these plans are subject to the usual risks for defined benefit plans, in particular the risk of changes in discount rates. In May 2014, Daimler Trucks North America LLC and the United Auto Workers union (UAW) entered into an agreement to settle a healthcare plan as part...

  • Page 237
    ... related to the Group's obligation under certain conditions to repurchase vehicles from customers. Buybacks may occur for a number of reasons including litigation, compliance with laws and regulations in a particular region and customer satisfaction issues. The utilization date of product warranties...

  • Page 238
    ... to leases of property, plant and equipment which transfer substantially all risks and rewards to the Group as lessee. Future minimum lease payments under finance leases amounted to â,¬436 million at December 31, 2014 (2013: â,¬474 million). The reconciliation of future minimum lease payments from...

  • Page 239
    ... December 31, 2013 Non-current Total Current In millions of euros Deferral of revenue from multi-year service and maintenance agreements Deferral of sales revenue received from sales with residual-value guarantees Deferral of advance rental payments received from operating lease arrangements Other...

  • Page 240
    ... 31, 2014, cash and cash equivalents included restricted funds of â,¬112 million (2013: â,¬69 million). The restricted funds primarily relate to subsidiaries where exchange controls apply so that the Group has restricted access to the funds. Cash provided by/used for operating activities. Changes in...

  • Page 241
    ...from these guarantees amounted to â,¬786 million at December 31, 2014 (2013: â,¬772 million) and includes liabilities recognized in the amount of â,¬84 million (2013: â,¬80 million). These amounts include financial guarantees, which the Group issued for the benefit of Chrysler in connection with the...

  • Page 242
    ... on the future purchase of vehicles or services. The provisions recognized in connection with these buyback commitments, amounted to â,¬58 million at December 31, 2014 (2013: â,¬43 million). Residual value guarantees related to arrangements for which revenue recognition is precluded due to the Group...

  • Page 243
    ... information. Each of the consortium members (including Daimler Financial Services AG) has provided guarantees supporting the obligations of Toll Collect GmbH towards the Federal Republic of Germany relating to the completion and operation of the toll collection system, which are subject to specific...

  • Page 244
    ... factors, the reported fair values can only be viewed as indicators of the prices that may actually be achieved on the market. The fair values of financial instruments were calculated on the basis of market information available on the balance sheet date. The following methods and premises were used...

  • Page 245
    ... in the direct banking business and liabilities from ABS transactions are calculated as the present values of the estimated future cash flows. Market interest rates for the appropriate terms are used for discounting. Trade payables. Due to the short maturities of these financial instruments, it is...

  • Page 246
    ... the predominantly short maturities of these financial instruments, it is assumed that the fair values approximate the carrying amounts. Offsetting of financial instruments. The Group concludes derivative transactions in accordance with the master netting arrangements (framework agreement) of the...

  • Page 247
    ... 31, 2013 Level 22 Level 33 Total In millions of euros Available-for-sale financial assets Financial assets available for sale thereof equity instruments thereof marketable debt securities Financial assets measured at fair value through profit or loss Derivative financial instruments used in hedge...

  • Page 248
    ... not measured at fair value Level 11 At December 31, 2014 Level 22 Level 33 Level 11 At December 31, 2013 Level 22 Level 33 Total In millions of euros Financial assets measured at cost Receivables from financial services Financial liabilities measured at cost Financing liabilities thereof bonds...

  • Page 249
    ... statement of income (excluding derivative financial instruments used in hedge accounting). Net losses of financial assets and liabilities recognized at fair value through profit or loss primarily include gains and losses attributable to changes in market value. Net gains on available-for-sale...

  • Page 250
    ... 31, 2013 2014 In millions of euros Fair value hedges Cash flow hedges Hedges of net investments in foreign operations 535 -1,527 -29 118 1,177 13 Use of derivatives. The Group uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business or...

  • Page 251
    ... of exchange rate risks, interest rate risks and commodity price risks can be found in Note 32 in the sub-item finance market risk. E.83 Nominal values of derivative financial instruments At December 31, 2014 At December 31, 2013 Maturity Maturity ≤ 1 year > 1 year Nominal values Nominal values...

  • Page 252
    ... information on Daimler's pension and other post-employment benefits. Credit risk E.84 Maximum risk positions of financial assets and loan commitments Maximum risk position 2014 Maximum risk position 2013 See also Note In millions of euros Liquid assets Receivables from financial services Trade...

  • Page 253
    ... Group's consolidated financial statements. Overdue lease payments from operating lease contracts are recognized in trade receivables. In addition, the Daimler Financial Services segment is exposed to credit risk from irrevocable loan commitments to retailers and end customers. At December 31, 2014...

  • Page 254
    ... business, Daimler also evaluates each general distribution company's creditworthiness by means of an internal rating process and its country risk. In this context, the year-end financial statements and other relevant information on the general distribution companies such as payment history are used...

  • Page 255
    ... In 2014, Daimler had very good access to the money and capital markets. Bank credit lines are also used to cover financing requirements. Potential downgrades of our credit ratings could have a negative impact on the Group's financing. In addition, customer deposits at Mercedes-Benz Bank are used as...

  • Page 256
    ... exchange rates and interest rates. In addition, the Group is exposed to market risks in terms of commodity price risk associated with its business operations, which the Group hedges partially through derivative financial instruments. The Group is also exposed to equity price risk in connection...

  • Page 257
    ... the Mercedes-Benz Cars and Daimler Trucks segments. In addition, the Group is indirectly exposed to transaction risk from its equity-method investments. Cash inflows and outflows of the business segments are offset if they are denominated in the same currency. This means that the exchange rate risk...

  • Page 258
    ... from the leasing and sales financing business operated by the Daimler Financial Services segment. The Daimler Financial Services companies enter into transactions with customers that primarily result in fixed-rate receivables. Daimler's general policy is to match funding in terms of maturities...

  • Page 259
    ... at year-end 2014 for calendar year 2015. The corresponding figure at year-end 2013 was 27% for calendar year 2014. Table  E.86 shows the period-end, high, low and average value at risk figures of the commodity price risk for the 2014 and 2013 portfolio of derivative financial instruments used to...

  • Page 260
    ... the brand names Mercedes-Benz and Setra. In addition, Daimler Buses produces and sells bus chassis. The vehicle segments also sell related spare parts and accessories. The Daimler Financial Services segment supports the sales of the Group's vehicle segments worldwide. Its product portfolio mainly...

  • Page 261
    ... and North America (see also Note 5). Daimler Financial Services. The interest income and interest expenses of Daimler Financial Services are included in revenue and cost of sales, and are presented in Notes 4 and 5. Table  E.87 presents segment information as of and for the years ended December...

  • Page 262
    ... impairments of property, plant and equipment of â,¬93 million from the planned sale of selected sites of the Group's sales network, of which â,¬64 million relates to Mercedes-Benz Cars, â,¬13 million to Daimler Trucks, â,¬14 million to Mercedes-Benz Vans and â,¬2 million to Daimler Buses. 266

  • Page 263
    ... Financial Statements MercedesBenz Cars In millions of euros 2013 External revenue Intersegment revenue Total revenue Segment profit (EBIT) thereof profit/loss from equity-method investments thereof expenses from compounding of provisions and changes in discount rates Segment assets thereof equity...

  • Page 264
    ... commercial vehicle manufacturers as well as further expenses in connection with legal proceedings. This line item also includes expenses of â,¬212 million from the hedging of the Tesla share price (2013: â,¬0 million) and income of â,¬88 million from the sale of the Tesla shares (2013: â,¬0 million...

  • Page 265
    ... the operational requirements. 35. Earnings per share The calculation of basic and diluted earnings per share for net profit attributable to shareholders of Daimler AG is shown in table  E.91. E.90 Average net assets 2014 In millions of euros Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans...

  • Page 266
    ...plan assets. In 2014 and 2013, the Group made contributions of â,¬3,121 million and â,¬560 million to its external funds to cover pension and other post-employment benefits. See also Note 22 for further information. E.92 Transactions with related parties Sales of goods and services and other income...

  • Page 267
    ... service cost resulting from entitlements to post-employment benefits, amounted to â,¬29.9 million (2013: â,¬32.1 million). See Note 21 for additional information on share-based payment of the members of the Board of Management. The members of the Supervisory Board are solely granted short-term...

  • Page 268
    ... the extent that such information is of minor relevance for a fair presentation of the profitability, liquidity and capital resources and financial position of Daimler AG. In addition, the statement of investments (footnote 7) indicates which consolidated companies make use of the exemption pursuant...

  • Page 269
    ...Investments Company Daimler Capital Services LLC Daimler Colombia S. A. Daimler Export and Trade Finance GmbH Daimler Finance North America LLC Daimler Financial Services AG Daimler Financial Services India Private Limited Daimler Financial Services Japan Co., Ltd. Daimler Financial Services México...

  • Page 270
    ...China) Ltd. Daimler Trucks Canada Ltd. Daimler Trucks Korea Ltd. Daimler Trucks North America LLC Daimler Trucks Remarketing Corporation Daimler Trust Holdings LLC Daimler Trust Leasing Conduit LLC Daimler Trust Leasing LLC Daimler UK Limited Daimler Vans Hong Kong Limited Daimler Vans Manufacturing...

  • Page 271
    ...Trust 2012â€'1 Mercedesâ€'Benz Auto Receivables Trust 2013â€'1 Mercedesâ€'Benz Auto Receivables Trust 2014â€'1 Mercedesâ€'Benz Bank AG Mercedesâ€'Benz Bank Polska S.A. Mercedesâ€'Benz Bank Rus OOO Mercedesâ€'Benz Bank Service Center GmbH Mercedesâ€'Benz Banking Service GmbH Schönefeld, Germany Sch...

  • Page 272
    ... AG Mercedes-Benz Financial Services Singapore Ltd. Mercedes-Benz Financial Services Slovakia s.r.o. Mercedes-Benz Financial Services South Africa (Pty) Ltd Mercedes-Benz Financial Services Taiwan Ltd. Mercedes-Benz Financial Services UK Limited Mercedes-Benz Financial Services USA LLC Mercedes-Benz...

  • Page 273
    ... Research & Development North America, Inc. Mercedes-Benz Retail Group UK Limited Mercedes-Benz Retail, S.A. Mercedes-Benz Risk Solutions South Africa (Pty.) Ltd. Mercedes-Benz Roma S.p.A. Mercedes-Benz Romania S.R.L. Mercedes-Benz Russia SAO Mercedes-Benz Schweiz AG Mercedes-Benz Service Leasing...

  • Page 274
    ... LLC SelecTrucks of Toronto, Inc. Setra of North America, Inc. Silver Arrow S.A. smart France S.A.S. smart Vertriebs gmbh Starexport Trading S.A. Sterling Truck Corporation Suffolk Leasing, Inc. Sumperská správa majetku k.s. Taunusâ€'Autoâ€'Verkaufs GmbH Thomas Built Buses of Canada Limited Thomas...

  • Page 275
    ...-Benz Customer Assistance Center Maastricht N.V. Mercedes-Benz Egypt S.A.E. Mercedes-Benz G GmbH Mercedes-Benz GastroService GmbH Mercedes-Benz Hungária Kft. Mercedes-Benz Museum GmbH Mercedes-Benz Ã-sterreich GmbH Mercedes-Benz Project Consult GmbH Mercedes-Benz Research and Development India...

  • Page 276
    ... Testing Company, Inc. Circulo Cerrado S.A. de Ahorro para Fines Determinados DRIVEtest LLC Mercedes-Benz Capital Services NV MBtech Auto Testing Properties L.L.C. IV. Joint operations accounted for using the equity method AFCC Automotive Fuel Cell Cooperation Corp. EM-motive GmbH North America Fuel...

  • Page 277
    ... Code (HGB) 08 Profit and loss transfer agreement with Daimler AG (direct or indirect) 09 Daimler AG is unlimited partner 10 Financial statements 2013 11 Financial Statements according to IFRS 12 Financial statements April 1, 2013 â€' March 31, 2014 13 Financial statements September 1, 2013...

  • Page 278
    ...At the Annual Shareholders' Meeting to be held on April 1, 2015, the Board of Management and the Supervisory Board will therefore propose an increase in the dividend to â,¬2.45 per share (prior year: â,¬2.25). With this proposal, we are expressing our confidence about the future business development...

  • Page 279
    F | Further Information | Contents F | Further Information. Responsibility Statement Independent Auditors' Report Ten-Year Summary Glossary Index List of Charts and Tables International Representative Offices 284 285 286 288 289 290 292 283

  • Page 280
    ... financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group management report, which has been combined with the management report for DAG, includes a fair review of the development and performance of the business...

  • Page 281
    ... 31, 2014 as well as the results of operations for the financial year then ended, in accordance with these requirements. Report on the Combined Management Report. We have audited the accompanying group management report of Daimler AG, which is combined with the management report of the company for...

  • Page 282
    ... 2012 2013 2014 From the statements of financial position Property, plant and equipment Leased equipment Other non-current assets 2 Inventories Liquid assets Other current assets Total assets 2 Shareholders' equity 2 thereof share capital Equity ratio Group (%) 2 Equity ratio industrial business...

  • Page 283
    ... in property, plant and equipment Depreciation and amortization Cash provided by (used for) operating activities investing activities financing activities Free cash ï¬,ow of the industrial business 6,480 7,363 11,032 -10,237 -1,284 2,423 2006 2007 2008 2009 2010 2011 2012 2013 2014 5,874...

  • Page 284
    ... density, short charging times and long lives. NEDC - New European Driving Cycle. A measuring method used in Europe for the objective assessment of vehicles' fuel consumption. E CSR - corporate social responsibility. A collective term for the social responsibility assumed by companies, including...

  • Page 285
    ... and shareholders' equity. ROS - return on sales. The profitability of the industrial divisions is measured by return on sales. ROS is defined as the quotient of EBIT and revenue. Value added. Value added indicates the extent to which operating profit exceeds the cost of capital. When value added is...

  • Page 286
    ...-Benz Cars Unit sales structure of Daimler Trucks Market share Consolidated revenue by region Revenue by division 77 78 79 79 80 81 81 Daimler and the Capital Market A.01 Development of Daimler's share price and of major indices A.02 Key figures per share A.03 Daimler share price (high/low), 2014...

  • Page 287
    ... Mercedes-Benz Vans Daimler Buses Unit sales by Daimler Buses Daimler Financial Services 154 154 160 160 165 165 168 168 171 Sustainability B.38 Research and development expenditure B.39 Research and development expenditure by division B.40 Road to emission-free mobility B.41 Intelligent operating...

  • Page 288
    ...847 7500 Fax +1 416 425 0598 China, Beijing Tel. +86 10 8417 3452... Fax +33 1 3005 9276 Germany, Berlin Tel. +49 30 2594...711 17 790 06040 India, Pune Tel. +...+603 2246 8812 Mexico, Mexico City Tel. +52 55 4155 2880 ... +42 1 2492 94904 South Africa, Pretoria Tel. +27 ...97 14 8833 201 USA, Washington Tel. +1 ...

  • Page 289
    ... the "Investor Relations" daimler.com It includes the Group's section of our website. annual and interim reports and the company financial statements of Daimler AG. You can also find topical reports, presentations, an overview of various key figures, information on our share price and other services...

  • Page 290
    Daimler AG Mercedesstr. 137 70327 Stuttgart Germany www.daimler.com www.daimler.mobi