Mercedes 2013 Annual Report Download - page 237

241
F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Failure to perform various obligations under the operating
agreement may result in penalties, additional revenue reduc-
tions and damage claims that could become significant over
time.
However, penalties and revenue reductions are capped at
€150 million per year until the final operating permit has
been issued and at €100 million per year following the issuance
of the final operating permit. These cap amounts are subject
to a 3% increase for every year of operation.
Beginning in June 2006, the Federal Republic of Germany began
reducing monthly payments to Toll Collect GmbH by €8 million
in partial set-off against amounts claimed in the arbitration
proceeding referred to below. This offsetting may require the
consortium members to provide additional operating funds
to Toll Collect GmbH.
The operating agreement calls for the submission of all
disputes related to the toll collection system to arbitration.
The Federal Republic of Germany has initiated arbitration
proceedings against Daimler Financial Services AG, Deutsche
Telekom AG and the consortium. According to the statement
of claims received in August 2005, the Federal Republic of Ger-
many is seeking damages including contractual penalties and
reimbursement of lost revenue that allegedly arose from delays
in the operability of the toll collection system. See Note 29
for additional information.
Each of the consortium members (including Daimler Financial
Services AG) has provided guarantees supporting the obli-
gations of Toll Collect GmbH towards the Federal Republic
of Germany relating to the completion and operation of the
toll collection system, which are subject to specific triggering
events. In addition, Daimler AG has guaranteed bank loans
obtained by Toll Collect GmbH. The guarantees are described
in detail below:
– Guarantee of bank loans. Daimler AG issued a guarantee
to third parties up to a maximum amount of €110 million
for bank loans which could be obtained by Toll Collect GmbH.
This amount represents the Group’s 50% share of Toll Collect
GmbH’s external financing guaranteed by its shareholders.
– Equity maintenance undertaking. The consortium members
have the obligation to contribute, on a joint and several
basis, additional funds to Toll Collect GmbH as may be nec-
essary for Toll Collect GmbH to maintain a minimum equity
(based on German Commercial Code accounting principles)
of 15% of total assets (a so-called “equity maintenance
undertaking”). This obligation will terminate on August 31,
2015, when the operating agreement expires, or earlier
if the agreement is terminated. Such obligation may arise
if Toll Collect GmbH is subject to revenue reductions caused
by underperformance, if the Federal Republic of Germany
is successful in claiming lost revenue against Toll Collect GmbH
for any period the system was not fully operational, or if
Toll Collect GmbH incurs penalties that may become payable
under the above mentioned agreements. If such penalties,
revenue reductions or other events reduce Toll Collect GmbH’s
equity to a level below the minimum equity percentage
agreed upon, the consortium members are obligated to fund
Toll Collect GmbH’s operations to the extent necessary
to reach the required minimum equity.
Cofiroute’s risks and obligations are limited to €70 million.
Daimler Financial Services AG and Deutsche Telekom AG
are jointly obliged to indemnify Cofiroute for amounts exceeding
this limitation.
While Daimler’s maximum future obligation resulting from
the guarantee of the bank loan can be determined (2013:
€100 million), the Group is unable to reasonably estimate the
amount or range of amounts of possible loss resulting from
the financial guarantee in form of the equity maintenance under-
taking due to the various uncertainties described above,
although it could be material. Only the guarantee for the bank
loan is included in the above disclosures for financial
guarantees.
Obligations associated with product warranties are also not
included in the above disclosures. See Note 23 for provisions
relating to such obligations.
Other financial obligations. The composition of other
financial obligations is shown in Table  F.73.
In connection with its production programs, Daimler has
committed to purchase various volumes of parts and compo-
nents over extended periods. The Group also has entered
into service arrangements for the provision of future services.
In addition, the Group has committed to purchase or invest
in the construction and maintenance of production facilities.
Amounts under the latter arrangements represent commit-
ments to purchase plant or equipment in the future.