Mercedes 2015 Annual Report Download - page 94

B | COMBINED MANAGEMENT REPORT | FINANCIAL POSITION 101
The Group’s equity increased compared with December 31,
2014 from €44.6 billion to €54.6 billion. Equity attributable to
the shareholders of Daimler AG increased to €53.6 billion
(2014: €43.7 billion). The increase in equity was the result of
the net profit of €8.7 billion E page 88, actuarial gains from
defined benefit pension plans recognized in retained earnings of
€2.7 billion, positive currency translation effects of €1.4 billion
and a gain of €0.7 billion on the measurement of financial assets
available for sale. There were negative effects on equity,
however, from the distribution of the dividend for financial year
2014 to the shareholders of Daimler AG (€2.6 billion) and the
remeasurement of derivative financial instruments (€0.6 billion).
Compared to the 15% increase in the balance sheet total, there
was a disproportionately high increase in equity of 23%. Due to
the effects described above, the Group’s equity ratio of 23.6%
was above the level at the end of 2014 (22.1%); the equity ratio
for the industrial business was 44.2% (2014: 40.8%). It is nec-
essary to consider that the equity ratios at the end of 2014 and
2015 are adjusted for the paid and proposed dividend pay-
ments.
Provisions decreased to €26.1 billion (2014: €28.4 billion); as
a proportion of the balance sheet total, they amounted to 12%
(2014: 15%). They primarily comprise provisions for pensions and
similar obligations of €8.7 billion (2014: €12.8 billion), which
mainly consist of the difference between the present value of
defined benefit pension obligations of €27.6 billion (2014:
€30.1 billion) and the fair value of the pension plan assets applied
to finance those obligations of €20.2 billion (2014: €18.6 bil-
lion). The rise in discount rates, especially for German plans
from 1.9% at December 31, 2014 to 2.6% at December 31,
2015, led to a decrease in the present value of the defined ben-
efit pension obligations. This effect was strengthened by the
extraordinary contribution of €1.2 billion to German and US
pension plan assets. Provisions also relate to liabilities from
income taxes of €1.7 billion (2014: €1.6 billion), from product
warranties of €5.7 billion (2014: €5.0 billion) and from per-
sonnel and social costs of €4.4 billion (2014: €3.9 billion), as
well as other provisions of €5.8 billion (2014: €5.1 billion).
Financing liabilities of €101.1 billion were above the level of
December 31, 2014 (€86.7 billion). As well as currency effects
of €1.4 billion, the increase primarily reflects the refinancing of
the growing leasing and sales-financing business. 51% of the
financing liabilities are accounted for by bonds, 27% by liabilities
to financial institutions, 10% by deposits in the direct banking
business and 7% by liabilities from ABS transactions.
Trade payables increased to €10.5 billion due to the higher
volume of business (2014: €10.2 billion). The Mercedes-Benz
Cars division accounts for 61% of those payables and the Daimler
Trucks division accounts for 27%.
Other financial liabilities of €12.4 billion (2014: €10.7 billion)
mainly consist of liabilities from derivative financial instru-
ments, residual value guarantees, accrued interest on financing
liabilities, deposits received and liabilities from wages and
salaries. The increase of €1.2 billion after adjusting for exchange-
rate effects is due to derivative financial instruments, among
other things.
Other liabilities of €12.3 billion (2014: €9.1 billion) primarily
comprise deferred income, tax liabilities and deferred taxes.
The increase mainly results from the increase in deferred
income of €1.7 billion, which resulted from a higher volume of
service and maintenance contracts.
Further information on the assets presented in the statement of
financial position and on the Group’s equity and liabilities is
provided in the Consolidated Statement of Financial Position
E page 200, the Consolidated Statement of Changes in
Equity E page 202 and the related notes in the Notes to the
Consolidated Financial Statements.