Mercedes 1999 Annual Report Download - page 51

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SERVICES
45
debis, the Services division of DaimlerChrysler, took
full advantage of the growth potential of the services
market in 1999 and once again posted outstanding
results. With a managed portfolio of €99.2 billion,
debis is one of the world’s leading financial services
companies outside of the banking and insurance
sector. debis Systemhaus is one of Europe’s leading
manufacturer-independent IT services companies.
GROWTH CONTINUES. The Services division grew for the
tenth consecutive year in 1999, with revenues increasing by
29% to €12.9 billion. 42% of our revenues were generated in
the US, 32% in Germany and 12% in the European Union,
excluding Germany. Earnings were also up in 1999, with
operating profit increasing to €2.0 billion (1998: €1.0
billion); after adjusting for extraordinary effects, it actually
rose by 8% to €1.0 billion. These effects include non-
recurring income of €1.1 billion from the disposal of 42.4%
of the shares in debitel, as well as one-time expenses
arising from the sale of receivables from previos years
carried out in connection with the integration of the
financial services business.
Substantial investment would have been required to continue
successfully operating debitel, the telecommunications service
provider, as a unit of DaimlerChrysler. In line with our value
based management system, however, we decided to sell the
majority of our debitel shares in order to create additional
value.
A COMPREHENSIVE PACKAGE OF FINANCIAL SERVICES. The
core business of the Financial Services business unit
comprises comprehensive financial services for all
DaimlerChrysler vehicle brands plus other activities such as
brand-independent fleet management. Non-automobile
financial services are also an important business area. Such
capital services include financing concepts and investment
fund solutions for aircraft, rail vehicles, ships, real estate and
infrastructure projects. In addition, our countertrade
department provides complete customized solutions for cross-
border trade and projects, while our insurance activities
include brokerage services and direct insurance.
INTEGRATION AND INTERNATIONALIZATION.
In January
1999, all of DaimlerChrysler’s financial services activities
were consolidated into debis. Subsequently, the former
Mercedes-Benz, debis and Chrysler Financial Services leasing
companies were merged in our most important markets.
This created great potential for synergy savings. Integration
in all of our markets will be completed in 2000. We also
expanded internationally in the year under review. At the
end of 1999 the Financial Services business unit had more
than 100 companies operating in 35 countries around the
world.
STRONG GROWTH IN FINANCIAL SERVICES. Key indicators
for the Financial Services unit were positive in 1999. We set
records for both contract volume (€99.2 billion; 1998: €70.0
billion) and new business (€50.7 billion; up 44%). The
capital services portfolio increased to €7.5 billion (1998:
€4.9 billion), and the outlook for capital services remains
very positive. Countertrade volume was up 43% to €486
million and insurance policy volume increased by 16% to
€872 million.
IT SERVICES: COMPLETE SOLUTIONS.
Our IT Services
customers benefit from our high-grade services, ranging from
consulting (Plan) to the development of software solutions
and system integration (Build) to applications, data centers,
networks and desktops (Run). We offer industry-specific,
complete solutions, an advantage which has made us one of
the leading European companies covering all areas of
information management. The IT Services business unit
once again posted dynamic growth in 1999.
An attractive range of services led to revenues increasing by
31% to €2.9 billion. Growth outside Germany was
particularly strong, with business volume increasing from
€562 million to €876 million. Customers outside the
DaimlerChrysler Group accounted for 75% of the business
unit’s total revenues in 1999 (1998: 69%).
The strategically targeted acquisitions we made in 1999 will
help us expand our range of services even further. The
acquisition of the French IT company, “Soleri”, represents an
important step toward consolidating our position in France.
Other companies were established in the US, the Netherlands,
Belgium, Hungary, Spain and Austria. Our most recently
established subsidiary was set up in Australia.
2,053 2,039 985
1,033 1,026 949
13,023 12,932 9,987
10,126 10,056 7,772
2,962 2,941 2,244
326 324 285
26,240 21,272
99
US $
99
€
98
€
*)*)
*)*)
*)
*) 1998: excluding Telecom Services.
amounts in millions
Operating Profit
Operating Profit Adjusted
Revenues
Financial Services
IT Services
Investments in Property,
Plant and Equipment
Employees (Dec. 31)