Mercedes 2013 Annual Report Download - page 75

79
C | Combined Management Report | Corporate Profile
Establishment of Daimler Trucks and Buses China Ltd.
(DTBC). DTBC was established as a legally separate company
for the Group’s business with trucks and buses in China
in April 2013; it is the ideal framework to further develop
the existing truck business and to continually expand the
product portfolio in China – in the area of buses for example.
Due to its structural independence, DTBC can now focus
even more closely on the specific requirements of commercial-
vehicle customers. At the same time, the integration of the
bus business facilitates expansion in additional areas of sales.
With the new company, Daimler is consistently continuing
the structural reorganization of its China business.
Establishment of Daimler Mobility Services. Daimler
Financial Services is pursuing the goal of significantly expan-
ding its business with mobility services. For this purpose,
in January 2013, Daimler Financial Services brought together
all of its activities in the field of innovative mobility services
such as car2go und moovel in a new company, Daimler Mobility
Services GmbH with headquarters in Ulm. In order to further
strengthen this business, Daimler acquired equity interests
in various companies during the course of the year. Those
companies include the long-distance bus operator Flixbus
and the chauffeur-service portal Blacklane GmbH.
Daimler sells remaining equity interest in EADS. On March
27, 2013, the extraordinary shareholders’ meeting of EADS
approved a new management and shareholder structure. Sub-
sequently, on April 2, 2013, the shareholders’ pact concluded
in the year 2000 was dissolved and replaced with a new share-
holders’ pact without the participation of Daimler. At the
same time, those EADS shares which had previously been held
by Daimler but of which a consortium of international investors
had beneficial ownership were transferred to those so-called
Dedalus investors. With the dissolution of the previous share-
holders’ pact, Daimler lost its significant influence on EADS.
On April 17, 2013, Daimler disposed of its remaining EADS shares
constituting a stake of approximately 7.4% by way of an acce-
lerated placement procedure. In the second quarter of 2013,
the remeasurement and sale of EADS shares led to a gain
recognized in Group EBIT totaling €3.2 billion, of which €1.7
billion is allocable to the Dedalus investors. The sale resulted
in a cash inflow for Daimler of €2.2 billion. Since the con-
clusion of the transaction, Daimler no longer holds any shares
in EADS. In addition, the Group concluded cash-settled con-
tracts which allowed Daimler to participate to a limited extent
in an increase in the EADS share price until the end of 2013.
This agreement resulted in an additional gain for the Daimler
Group of €44 million.
Performance measurement system
Financial performance measures. The financial performance
measures used at Daimler are oriented towards our investors’
interests and expectations and provide the foundation for
our value-based management.
Value added. Value added is a key element of our performance
measurement system, which is applied at both the Group
and the divisional level. It is calculated as the difference between
the operating result and the cost of capital of the average net
assets. Alternatively, the value added of the industrial divisions
can be determined by using the main value drivers: return on
sales (quotient of EBIT and revenue) and net assets’ productivity
(quotient of revenue and net assets).

C.03
During the year 2013, value added increased to €5.9 billion
(2012: €4.3 billion). The quantitative development of value added
and the other financial performance measures is explained
in the “Profitability” chapter. E see pages 90 f
Using the combination of return on sales and net assets’
productivity within the context of a strategy of profitable reve-
nue growth provides the basis for a positive development
of value added. Value added shows to which extent the Group
and its divisions achieve or exceed the minimum return
requirements of the shareholders and creditors, thus creating
additional value.
Profit measure. The measure of operating profit at divisional
level is EBIT, which is calculated before interest and income
taxes. EBIT hence reflects the divisions’ profit and loss respon-
sibility. The operating profit measure used at Group level is
net operating profit. It comprises the EBIT of the divisions as
well as profit and loss effects for which the divisions are not
held responsible, including income taxes and other reconcilia-
tion items.

C.12 on page 86
C.03
Value added=–x
Profit measure
Cost of capital
Cost of
capital (%)
Net assets
Value
added
Net assets
=–xx Net assets
productivity
Return on
sales
Cost of
capital (%)
Calculation of value added