Mercedes 2015 Annual Report Download - page 97

104 B | COMBINED MANAGEMENT REPORT | DAIMLER AG
Cash flows from investing activities resulted in a net cash
outflow of €4.2 billion in 2015 (2014: €1.3 billion). The increased
cash outflow was the result of higher net investment in
financial assets. An additional factor is that the sale of the
equity interest in Rolls-Royce Power Systems Holding GmbH
had a positive impact on cash flows from investing activities in
the previous year.
Cash flows from financing activities resulted in a net cash
outflow of €3.9 billion (2014: €3.2 billion). The increased
outflow is the result of the higher increase than in 2014 in
receivables due from subsidiaries from the Group’s internal
transactions in connection with central finance and liquidity
management. There was an opposing effect from the
increase compared with the previous year in external financing
liabilities. Cash flows from financing activities include the
payment of the dividend for the year 2014 in an amount of
€2.6 billion.
Equity increased compared with December 31, 2014 by €1.1
billion to €38.2 billion. This change primarily resulted from
the net profit for 2015, of which, in accordance with Section 58
Subsection 2 of the German Stock Corporation Act (AktG),
€0.3 billion was transferred to retained earnings. The equity
ratio at December 31, 2015 was 43.3% (December 31, 2014:
43.5%).
Provisions increased compared with December 31, 2014 by
€1.9 billion to €13.7 billion. This primarily reflects the sales-
related increase in provisions for warranty claims. The increase
also resulted from provisions for pensions and similar obliga-
tions, which were affected by the lower discount rate. There
was an opposing, reducing effect from the extraordinary
contri bution of €0.9 billion to the German pension plan assets.
An additional factor is that there were higher personnel
and social-security obligations than in the previous year.
Liabilities of €35.8 billion were at the prior-year level.
Risks and opportunities
The business development of Daimler AG is fundamentally
subject to the same risks and opportunities as that of the
Daimler Group. Daimler AG generally participates in the risks
of its subsidiaries and associated companies in line with
the percentage of each holding. The risks and opportunities
are described in the “Risk and Opportunity Report.”
E pages 138 ff For Daimler AG, we assess the probability of
occurrence of the risks and opportunities connected with
pension plans as high. These risks and opportunities increase
along with a change in the discount rate. Risks may addi-
tionally arise from relations with subsidiaries and asso ciated
companies in connection with statutory or contractual
obligations (in particular with regard to financing).
Outlook
Due to the interrelations between Daimler AG and its subsi-
diaries and the relative size of Daimler AG within the Group,
we refer to the statements in the “Outlook” chapter, which
largely reflect our expectations also for the parent company.
This includes the statements on unit sales and revenue.
E pages 152 ff For the year 2016, we plan for Daimler AG to
achieve a net profit significantly higher than in 2015. Due
to the expected legislation with regard to discount rates for
retirement benefit obligations, we anticipate a lower interest
expense. The related increase in financial income will be partially
offset by a decrease in income from investments in subsi-
diaries and associated companies.
B.37
Balance sheet structure of Daimler AG
Dec. 31,
2015
Dec. 31,
2014
In millions of euros
Assets
Non-current assets 39,259 43,772
Inventories 8,503 7,846
Receivables, securities and other assets 38,341 29,985
Cash and cash equivalents 1,925 3,399
Current assets 48,769 41,230
Prepaid expenses 257 256
88,285 85,258
Equity and liabilities
Share capital 3,070 3,070
(conditional capital €500 million)
Capital reserve 11,480 11,480
Retained earnings 20,169 19,891
Distributable profit 3,477 2,621
Equity 38,196 37,062
Provisions for pensions and similar obligations 1,931 1,391
Other provisions 11,811 10,470
Provisions 13,742 11,861
Trade payables 5,098 5,412
Other liabilities 30,654 30,379
Liabilities 35,752 35,791
Deferred income 595 544
88,285 85,258