Mercedes 2009 Annual Report Download - page 249

Consolidated Financial Statements |Notes to Consolidated Financial Statements |245
Revenue and non-current assets by region.
Revenue from external customers is as follows:
The split of non-current assets by region is as follows:
32. Capital management
“Net assets” and “value added” 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 segments are accountable
for the operational net assets; all assets, liabilities and provisions
which they are responsible for in day-to-day operations are there-
fore 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
additionally include assets and liabilities 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 calculated 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 reflected
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, are 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.
The objective of capital management is the optimization of the cost
of capital, which is achieved on the one hand by the management
of the net assets which are in the operational responsibility of the
segments. In addition, taking into account legal regulations,
Daimler strives to optimize the capital structure and, consequent-
ly, the cost of capital under cost and risk aspects. The share
buyback in 2008 and 2007 was one of the measures to improve
the capital structure (see Note 19).
Consolidated
Other
countriesAsia
Other
American
countriesUnited States
Western
Europe1 Germany
18,788
21,832
22,582
17,670
24,444
27,171
16,569
19,956
21,846
6,159
7,723
7,310
12,435
13,840
11 , 91 8
7,303
10,674
10,742
78,924
98,469
101,569
2009
2008
2007
1 Excluding Germany.
in millions of €
23,452
8,937
8,861
41,250
2007
20082009
19,542
11 , 819
8,129
39,490
21,426
10,759
8,687
40,872
in millions of €
Germany
USA
Other countries
20082009
11, 3 73
6,720
1,728
1,221
4,671
25,713
3,591
2,944
(470)
31,778
10,475
6,340
1,836
1,308
4,478
24,437
4,152
1,941
936
31,466
Mercedes-Benz Cars
Daimler Trucks
Mercedes-Benz Vans
Daimler Buses
Daimler Financial Services 1
Net assets of the segments
Investments accounted for using the
equity method2
Assets and liabilities from income taxes3
Other corporate items and eliminations3
Net assets Daimler Group
1 Equity.
2 Unless allocated to segments.
3 Industrial Business.
in millions of €