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Revenue and non-current assets by region. Revenue from
external customers is as follows:
Germany accounts for €21,252 million of non-current assets, which
include intangible assets, property, plant and equipment as well
as equipment on operating leases (2007: €19,542 million; 2006:
€19,628 million), the United States for €10,759 million (2007:
€11,819 million; 2006: €43,184 million) and other countries for
€8,687 million (2007: €8,129 million; 2006: €14,498).
32. Capital management
“Net assets” represent the basis for capital management at
Daimler. The assets and liabilities of the segments in accordance
with IFRS provide the basis for the determination of net assets
at Group level. The industrial divisions are accountable for the oper-
ational net assets; all assets, liabilities and provisions which
they are responsible for in day-to-day operations are therefore
allocated to them. Performance measurement at Daimler
Financial Services is on an equity basis, in line with the usual
practice in the banking business. Net assets at Group level addi-
tionally include net assets of discontinued operations and from
income taxes as well as other corporate items and eliminations.
The average annual net assets are calculated from the average
quarterly net assets. The average quarterly net assets are calcu-
lated as an average of the net assets at the beginning and the
end of the quarter and are as follows:
The cost of capital of the Group’s average net assets is reflect-
ed in “value added”. Value added shows to which extent the
Group achieves or exceeds the minimum return requirements
of the shareholders and creditors, thus creating additional
value. The required rate of return on net assets, and thus the
cost of capital is derived from the minimum rates of return that
investors expect on their invested capital. The Group’s cost
of capital comprises the cost of equity as well as the costs of
debt and pension obligations of the industrial business; in addition,
the expected returns on liquidity and on the plan assets of the
pension funds of the industrial business are considered with the
opposite sign. In the reporting period, the cost of capital used
for our internal capital management amounted to 8% after taxes.
For information about the ordinary shares which the Group
bought back in 2008 and 2007 to optimize its capital structure
see Note 19.
Consolidated
Other
countriesAsia
Other
American
countriesUnited States
Western
Europe1
Germany
21,817
22,582
21,652
24,099
26,707
25,347
17,922
20,270
24,943
7,652
7,248
6,542
13,771
11,851
11,761
10,612
10,741
8,977
95,873
99,399
99,222
2008
2007
2006
1 Excluding Germany.
in millions of €
2007
2008
10,475
6,340
4,478
8,932
30,225
–
1,941
(700)
31,466
7,831
6,127
4,268
8,804
27,030
7,186
5,569
(598)
39,187
Mercedes-Benz Cars
Daimler Trucks
Daimler Financial Services 1
Vans, Buses, Other
Net assets of the segments
Net assets from discontinued operations
Assets and liabilities from income taxes2
Corporate items and eliminations2
Net assets Daimler Group
1 Equity.
2 Industrial Business.
average in millions of €