Mercedes 2009 Annual Report Download - page 94

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Cash flows from financing activities resulted in a net cash
inflow of €1.1 billion, mainly related to the capital increase of
€1.95 billion from the issue of new shares. The payment of the
dividend for the year 2008 (€0.6 billion) and the net repayment
of financing liabilities reduced the cash inflows from financing
activities. The net cash outflow of €2.9 billion in the prior year
primarily reflects the payment of the dividend for the year 2007
(€1.9 billion) and the share buyback programs (€4.2 billion),
only partially offset by net cash inflows from borrowing and debt
repayment.
Cash and cash equivalents with an original maturity of three
months or less increased compared to December 31, 2008 by
€2.9 billion, after taking into account the effects of currency
translation. Total liquidity, which also includes deposits and mar-
ketable securities with an original maturity of more than three
months, increased by €8.1 billion to €16.1 billion. The high level
of liquidity will tend to decrease again in 2010, depending on
the development of the economic environment.
The free cash flow of the industrial business, the parameter used
by Daimler to measure the Group’s financing capability, was sig-
nificantly positive despite the difficult economic situation at plus
€2.7 billion (2008: minus €3.9 billion).
The main reason for the increase in the free cash flow was the
development of inventories and trade receivables, as well as
investments in property, plant and equipment, which offset the
negative effects from the divisions’ earnings. There was also
an impact from internal payments within the Group that were
received by the industrial business from the financial services
business in connection with fiscal unities (cash outflow in the
prior year). The free cash flow was reduced, however, by higher
contributions to pension plans and lower trade payables.
in millions of € Change
Free cash flow of the industrial business
4,944
(2,749)
4,426
6,621
1,600
(4,967)
(548)
(3,915)
6,544
(7,716)
3,878
2,706
2009 09/08
Cash provided by
operating activities
Cash used for
investing activities
Changes in cash (> 3 months) and
marketable securities included
in liquidity
Free cash flow of the
industrial business
2008
in millions of € Change
Net liquidity of the industrial business
2,071
4,114
6,185
(1,068)
(938)
(2,006)
4,179
4,664
959
5,623
(4,448)
1,931
(2,517)
3,106
6,735
5,073
11,808
(5,516)
993
(4,523)
7,285
2009 09/08
Cash
Marketable securities and
term deposits
Liquidity
Financing liabilities
Market valuation and currency
hedges for financing liabilities
Financing liabilities
(nominal)
Net liquidity
2008
The net liquidity of the industrial business increased by €4.2
billion to €7.3 billion.
The increase in net liquidity was primarily caused by the positive
free cash flow and the capital increase from the issue of new
shares (€1.95 billion). On the other hand, the net liquidity of the
industrial business was reduced by the payment of the dividend
for the year 2008.