Mercedes 2009 Annual Report Download - page 99

Management Report |Financial Position |95
Financial Position
Investments accounted for using the equity method of €4.3
billion primarily comprise the carrying amounts of our equity
interests in EADS, Tognum and Kamaz (December 31, 2008: €4.2
billion).
Inventories fell by €4.0 billion to €12.8 billion, equivalent to
10% of the balance sheet total (December 31, 2008: 13%). The
decrease mainly reflects the lower stocks of new and used
vehicles held and was achieved through active inventory man-
agement at all the automotive divisions.
Due to the development of unit sales, trade receivables
decreased to €5.3 billion (December 31, 2008: €7.0 billion).
Daimler Trucks was responsible for the largest portion of this
decrease.
Other financial assets (€11.5 billion) mainly comprise securities,
derivative financial instruments, loans and other receivables due
from third parties. The increase of €3.5 billion primarily reflects
the acquisition of securities in the context of liquidity manage-
ment. There was an opposing effect from a reduction in the carry-
ing amounts of derivative financial instruments.
Cash and cash equivalents increased compared to December
31, 2008 by €2.9 billion to €9.8 billion. One of the reasons for
this change was the continued growth of customers’ deposits in
the direct banking business.
Due to the Group’s ongoing concentration on its core business,
parts of the non-automotive assets (€0.3 billion) were classified
as assets held for sale.
Provisions account for 14% of the balance sheet total. Provisions
primarily relate to warranty, personnel and pension obligations,
and increased by €0.2 billion to €18.4 billion. The increase result-
ed from higher provisions for income taxes. There was an oppos-
ing effect from provisions for product warranties and for obliga-
tions relating to personnel and social costs.
The Group’s balance sheet total decreased compared to Decem-
ber 31, 2008 by €3.4 billion to €128.8 billion; adjusted for the
effects of currency translation, the balance sheet total decreased
by €4.3 billion. The financial services business accounted for
€65.1 billion of the balance sheet total (December 31, 2008: €67.7
billion), equivalent to 51% of the Daimler Group’s total assets
(December 31, 2008: 51%).
Current assets constituted 42% of the balance sheet total, the
same as a year earlier. Within that total, cash and cash equivalents
increased while inventories and trade receivables decreased.
Current liabilities decreased to 37% of the balance sheet total
(December 31, 2008: 39%).
Intangible assets increased to €6.8 billion (December 31, 2008:
€6.1 billion). This rise was primarily due to capitalized develop-
ment costs and is related to investments in the development of
new models and main components.
Property, plant and equipment of €16.0 billion were at the
level of December 31, 2008 (€16.1 billion). Main areas of invest-
ment (€2.4 billion) in 2009 were for new models of the E-Class
at Mercedes-Benz Cars and for new main components at Daimler
Trucks.
Equipment on operating leases and receivables from finan-
cial services decreased by €4.1 billion to a total of €57.0 billion
(December 31, 2008: €61.1 billion). Adjusted for the effects
of currency translation, the decrease amounted to €4.9 billion.
Equipment on operating leases and receivables from finan-
cial services together account for 44% of the balance sheet total
(December 31, 2008: 46%). Receivables from financial services
were mainly responsible for the decrease, as a reflection of
reduced new business in line with the development of unit sales.
Furthermore, parts of the non-automotive assets with a carrying
amount of €0.9 billion were sold in 2009, and additional assets
in an amount of €0.3 billion were classified as held for sale.