Mercedes 2003 Annual Report Download - page 103
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Please find page 103 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.3. Financial Position and Cash Flow
Slight decrease of total assets. The Group’s total assets
decreased slightly by 5% to €178.3 billion compared with 2002.
The decrease was principally due to currency translation effects
from the appreciation of the euro against the US dollar. As a result,
the assets and liabilities of our US companies were translated into
euros at the exchange rate of €1 = $1.2630 as of December 31,
2003 versus an exchange rate of €1 = $1.0487 as of December 31,
2002. This higher exchange rate resulted in correspondingly lower
balance sheet amounts in euros. Currency effects accounted for
€17.3 billion of the total decrease in consolidated assets; if
exchange rates had stayed on the 2002 year-end level, total assets
would have increased by €8.2 billion. This increase was due to the
expansion of the Services segment’s leasing and sales-financing
business.
On the assets side, fixed assets decreased in 2003 by 9% to
€32.9 billion. The reduction was mainly due to currency translation
with opposing effects from the increased investments, especially in
the Mercedes Car Group segment.
Financial assets decreased slightly to €8.8 billion. The major
changes were attributable to the acquisition in Mitsubishi Fuso
Truck and Bus Corporation (€0.8 billion) and the lower book value
of the investment in EADS (- €0.8 billion). The development of the
investment in EADS, for which DaimlerChrysler accounts for using
the equity method, was significantly influenced by an impairment
of €2.0 billion.
The €3.9 billion (14%) decrease in leased equipment to €24.4
billion was predominantly caused by exchange rate fluctuations. In
addition, the financing programs, which are offered since 2001, led
to a shift from operating lease agreements to sales financing
agreements, which are reported under receivables from financial
services.
Inventories – less advance payments received – decreased to
€15.0 billion (2002: €15.6 billion). Currency translation effects
primarily drove this development.
Increased receivables from financial services of €52.6 billion
(+ €0.6 billion) were mainly due to the above mentioned increase in
sales financing agreements. Adjusted for currency translation,
receivables from financial services increased by 12%. Due to
exchange rate effects, the sale of receivables (asset backed
securities, ABS) in 2003 was slightly lower than in 2002. Overall,
the leasing and sales financing business accounted for €77.0
billion, i.e. 43%, of total assets.
The decrease in other receivables – including other assets – to
€15.8 billion (2002: €17.6 billion) resulted principally from reduced
tax refund claims and reduced market values of retained interests
in sold receivables from the declining ABS portfolio.
Liquidity rose by 15% to €14.3 billion and consisted of cash and
cash equivalents (€11.0 billion) and securities (€3.3 billion). Liquid
funds are actively managed within the Group to ensure a minimum
level of corporate liquidity.
Group equity decreased slightly to €34.5 billion (2002: €35.0
billion). The decrease was mainly due to currency translation
effects and the dividend distribution for the 2002 financial year
(€1.5 billion). On the other hand, positive effects on equity arose
from the fair value accounting of derivative financial instruments
and available-for-sale securities, from the reduced underfunding of
pension obligations as well as from the net income. The equity
ratio, adjusted for the proposed dividend distribution for the fiscal
year 2003 (€1.5 billion), rose by 0.6 percentage points to 18.5%
(2002: 17,9%). The equity ratio for the industrial business
amounted to 26,1% (2002: 24,9%).
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Fixed assets
Non-fixed assets
of which: Liquidity
Deferred taxes and
prepaid expenses
Liabilities
of which:
Financial liabilities
Deferred taxes
and income
2003 2002 2002 2003
Accured liabilities
Stockholders’ equity
178
40%
187
42%
187
18% 178
19%
58% 56%
23%
22%
55%
55%
8% 7%
43%
43%
2% 2% 4% 4%
Property, plant
and equipment
Other fixed assets
Deferred taxes and
prepaid expenses
Liabilities
2003 2002 2002 2003
Accrued liabilities
Stockholders’ equity
Inventories
Receivables
Liquidity
Deferred taxes
and income
95
34%
17%
14%
18%
13%
100
36%
17%
14%
17%
11 %
5%
100
25%
43%
32%
0% 1%
95
27%
40%
32%
4%
In billions of €
Balance Sheet Structure
In billions of €
Balance Sheet Structure of the Industrial Business