Mercedes 2015 Annual Report Download - page 82

The tax expense of €4.0 billion stated under income tax expense
is €1.1 billion higher than in 2014, mainly due to the improved
pretax income. The effective tax rate for 2015 was 31.6% (2014:
28.3%). In 2014, a gain was recognized on the sale of the
RRPSH shares that was largely tax free. But also expenses arose
that were not tax deductible in connection with the ongoing
antitrust investigations of European manufacturers of commer-
cial vehicles by the EU Commission. Therefore, the increase
in pretax income is mainly an increase in normally taxed earn-
ings, which led to a correspondingly higher tax expense. In
both years, the income tax expense was affected by additional
tax benefits and expenses. The year 2015 includes tax benefits
in connection with the tax assessment of previous years as well
as tax expenses due to valuation allowances on deferred tax
assets, while in the year 2014, gains were recognized on the
reversal of valuation allowances on deferred tax assets.

B.18
Net profit for the year amounts to €8.7 billion (2014: €7.3
billion). Net profit of €0.3 billion is attributable to non-controlling
interests (2014: €0.3 billion). Net profit attributable to the
shareholders of Daimler AG amounts to €8.4 billion (2014:
€7.0 billion), representing earnings per share of €7.87 (2014:
€6.51).

B.18
The calculation of earnings per share (basic) is based on an
unchanged average number of outstanding shares of 1,069.8
million.
Dividend
At the Annual Shareholders’ Meeting on April 6, 2016, the
Board of Management and the Supervisory Board will recommend
the payment of a dividend of €3.25 per share (2014: €2.45).
With this proposal, we are once again raising the dividend (by
33%) and letting our shareholders participate in the Company’s
success. The total dividend will thus amount to €3,477 million
(prior year: €2,621 million) and the distribution ratio will be
41.3% of the net profit attributable to the Daimler shareholders
(prior year: 37.6%).

B.19
Net operating profit
Table

B.20 shows the reconciliation of the EBIT of the divisions
to net operating profit. In addition to the EBIT of the divisions,
net operating profit also includes earnings effects for which
the divisions are not accountable such as income taxes and
other reconciliation items.
Value added
As described in the “Performance measurement system” sec-
tion of the E “Corporate Profile” chapter in table

B.03, the
cost of capital is the result of net assets and cost of capital
expressed as a percentage, which is subtracted from earnings
in order to calculate value added. The tables

B.21 and

B.22 show value added and net assets for the Group and for
the individual divisions. Table

B.23 shows how net assets
are derived from the consolidated statement of financial position.
B.20
Reconciliation to net operating profit
2015 2014 15/14
In millions of euros % change
Mercedes-Benz Cars 7,926 5,853 +35
Daimler Trucks 2,576 1,878 +37
Mercedes-Benz Vans 880 682 +29
Daimler Buses 214 197 +9
Daimler Financial Services 1,619 1,387 +17
EBIT of the divisions 13,215 9,997 +32
Income taxes1-4,179 -3,074 +36
Other reconciliation -29 755 .
Net operating profit 9,007 7,678 +17
1 Adjusted for tax effects on interest income/expense and amortization
of capitalized borrowing costs.
B.21
Value Added
2015 2014 15/14
In millions of euros % change
Daimler Group 5,675 4,416 +29
Mercedes-Benz Cars 5,881 3,799 +55
Daimler Trucks 1,619 761 +113
Mercedes-Benz Vans 703 473 +49
Daimler Buses 105 79 +33
Daimler Financial Services 467 457 +2
B | COMBINED MANAGEMENT REPORT | PROFITABILITY 89
D
ividend per share
In
euros
B.19
3.252.45 2.20 2.252.20
2011 2012 2014 20152013
2.50
3.00
3.50
2.00
1.50
1.00
0.50
0