Mercedes 2013 Annual Report Download - page 249

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F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Liquidityrisk
Liquidity risk comprises the risk that a company cannot
meet its financial obligations in full.
Daimler manages its liquidity by holding adequate volumes
of liquid assets and by maintaining syndicated credit facilities
in addition to the cash inflows generated by its operating
business. Additionally, the possibility to securitize receivables
of financial services business (ABS transactions) also reduces
the Group’s liquidity risk. Liquid assets comprise cash and
cash equivalents as well as debt instruments classified as held
for sale. The Group can dispose of these liquid assets at
short notice.
In general, Daimler makes use of a broad spectrum of financial
instruments to cover its funding requirements. Depending
on funding requirements and market conditions, Daimler issues
commercial paper, bonds and financial instruments secured
by receivables in various currencies. In 2013, Daimler had very
good access to the money and capital markets. Bank credit
lines are also used to cover financing requirements.
In addition, customer deposits at Mercedes-Benz Bank
have been used as a further source of refinancing.
The funds raised are used to finance the working capital and
capital expenditure requirements as well as the cash needs
of the lease and financing business and the unexpected liquidity
needs. In accordance with internal guidelines, the refunding
of the lease and financing business is generally carried out with
matching maturities so that financing liabilities have the
same maturity profile as the leased assets and the receivables
from financial services.
At December 31, 2013 liquidity amounted to €18.1 billion
(2012: €16.6 billion). In 2013, significant cash inflows resulted
from the positive contributions to earnings from the auto-
motive divisions and from the sale of the remaining EADS shares.
Cash outflows mainly resulted from the acquisition of a 12%
equity interest in BAIC Motor and from contributions to pension
plan assets (see Notes 13 and 22).
At December 31, 2013 the Group had short-term and long-
term credit lines totaling €35.4 billion, of which €15.0 billion
were not utilized. These credit lines include a syndicated
€9.0 billion credit facility of Daimler AG with five year tenor
and two extension options of two years in total which was
signed with a syndicate of international banks in September 2013.
This syndicated facility serves as a back-up for commercial
paper drawings and provides funds for general corporate
purposes. At December 31, 2013, this facility had not been
utilized.
From an operating point of view, the management of the
Group’s liquidity exposures is centralized by a daily cash pooling
process. This process enables Daimler to manage its liquidity
surplus and liquidity requirements according to the actual needs
of the Group and each subsidiary. The Group’s short-term and
mid-term liquidity management takes into account the maturities
of financial assets and financial liabilities and estimates
of cash flows from the operating business.
Information on the Group’s financing liabilities is also provided
in Note24.
Table  F.90 provides an insight into how the future liquidity
situation of the Group is affected by the cash flows from
liabilities and financial guarantees as of December 31, 2013.
Liquidity runoff for liabilities and financial guarantees1
Total 2014 2015 2016 2017 2018 ≥ 2019
In millions of euros
Financing liabilities283,690 34,741 17,826 11,813 5,165 5,042 9,103
Derivative financial instruments31,191 457 289 96 126 95 128
Trade payables49,086 9,074 10 1 1 . .
Miscellaneous other financial liabilities excluding
accrued interest 6,575 5,354 467 315 214 81 144
Irrevocable loan commitments
of the Daimler Financial Services segment
and of Daimler AG5
1,508 1,025 65 258 83 77 -
Financial guarantees6772 772 - - - - -
102,822 51,423 18,657 12,483 5,589 5,295 9,375
1 The values were calculated as follows:
(a) If the counterparty can request payment at different dates, the liability is included on the basis of the earliest date on which Daimler can
be required to pay. The customer deposits of Mercedes-Benz Bank are considered in this analysis to mature within the first year.
(b) The cash flows of floating interest financial instruments are estimated on the basis of forward rates.
2 The stated cash flows of financing liabilities consist of their undiscounted principal and interest payments.
3 The undiscounted sum of the net cash outflows of the derivative financial instruments are shown for the respective year. For single time bands,
this may also include negative cash flows from derivatives with an overall positive fair value.
4 The cash outflows of trade payables are undiscounted.
5 The maximum available amounts are stated.
6 The maximum potential obligations under the issued guarantees are stated. It is assumed that the amounts are due within the first year.
F.90