Mercedes 2015 Annual Report Download - page 88

Other financial obligations, financial guarantees
and contingent liabilities
In the context of its ordinary business operations, the
Group has entered into other financial obligations in addition
to the liabilities shown in the consolidated balance sheet at
December 31, 2015. Table  B.28 provides an overview of the
nominal amounts of other financial obligations. With regard
to their maturities, we refer to E Note 30 (Financial guarantees,
contingent liabilities and other financial commitments) and
E Note 32 (Management of financial risks) of the Notes to
the Consolidated Financial Statements.
Within the context of financial guarantees, Daimler generally
guarantees the settlement of the payment obligations of the
main debtor vis-à-vis the holder of the guarantee. The maximum
potential obligation resulting from these guarantees amounts
to €1.0 billion at December 31, 2015 (end of 2014: €0.8 billion);
liabilities recognized in this context amount to €0.1 billion
at the end of the year (end of 2014: €0.1 billion). In connection
with the Chrysler transactions entered into 2007 and 2009,
Daimler provides guarantees for Chrysler obligations; at
December 31, 2015, those guarantees amount to €0.3 billion,
whereby Chrysler provided €0.2 billion on an escrow account
as collateral for the guaranteed obligations. Another financial
guarantee of €0.1 billion relates to bank loans of Toll Collect
GmbH, the operator company of the toll-collection system
for trucks in Germany. Other risks arise from an additional
guarantee that Daimler Financial Services AG provided for
obligations of Toll Collect GmbH to the Federal Republic of
Germany. This guarantee is related to the completion and oper-
ation of the toll-collection system. A claim on this guarantee
could primarily arise if for technical reasons toll revenue is lost
or if certain contractually defined parameters are not fulfilled,
if the Federal Republic of Germany makes additional claims or
if the final operating permit is not granted. Furthermore,
arbitration proceedings have been initiated against Daimler
Financial Services AG. The maximum obligation that could
result from this guarantee for the Group is substantial, but
cannot be reliably estimated.
The contingent liabilities principally constitute buyback obliga-
tions. At December 31, 2015, the best possible estimate for
the loss risk from these guarantees amounted to €1.6 billion
(2014: €1.2 billion). Warranty and goodwill commitments
(product guarantees) provided by the Group in connection with
its vehicle sales are not included in the contingent liabilities.
Contingent liabilities also include other contingent liabilities.
The best possible estimate for potential expenses from the
other contingent liabilities is €0.4 billion (December 31, 2014:
€0.4 billion).
Investment
In the context of our growth strategy, we aim to make good
use of the opportunities presented by the global automotive
markets. At the same time, we intend to play a major role in
the fundamental technological change in the automotive industry,
and to assume a leading role with digitization. This requires
substantial investment in innovative products and new technolo-
gies as well as in the expansion of our worldwide production
network. In 2015, we therefore once again increased our invest-
ment in property, plant and equipment – as already announced
in Annual Report 2014 – from an already high level to €5.1 billion
(2014: €4.8 billion).
At December 31, 2015, financial obligations of €2.2 billion
exist in connection with future investments in property, plant
and equipment.
B.30
Investment in property, plant and equipment by division
2015 2014 15/14
In millions of euros % change
Daimler Group
in % of revenue
5,075
3.4
4,844
3.7
+5
Mercedes-Benz Cars
in % of revenue
3,629
4.3
3,621
4.9
+0
Daimler Trucks
in % of revenue
1,110
3.0
788
2.4
+41
Mercedes-Benz Vans
in % of revenue
202
1.8
304
3.0
-34
Daimler Buses
in % of revenue
104
2.5
105
2.5
-1
Daimler Financial Services
in % of revenue
30
0.2
23
0.1
+30
B | COMBINED MANAGEMENT REPORT | LIQUIDITY AND CAPITAL RESOURCES 95
4
3
2
1
0
2011 2012 2013 2014 2015
B.29
5
6
Investment in pr
operty, plant and equipment
In
billions of euros