Mercedes 2010 Annual Report Download - page 138

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Daimler Financial Services
The financial services business recovered distinctly during the year under review. Asia provided signifi-
cant impetus and our operations in North and South America were very profitable again. Daimler Financial
Services continued to be among the top performers in terms of customer and dealer satisfaction.
In Germany, Mercedes-Benz Bank’s contract volume was at the
prior-year level of €16.1 billion. The deposit volume in the direct
banking business decreased from €12.6 billion to €10.9 billion as
we shifted our focus from liquidity to profitability during the year.
Developments were very mixed in European markets during the
year under review. Some Central and Eastern European countries
continued to suffer from the effects of the global financial and
economic crisis. In those countries, the division focused on strength-
ening its collections management and improving remarketing
processes. Contract volume once again grew significantly in other
European markets such as Portugal (+23%), Sweden (+17%) and
the United Kingdom (+16%). Growth was also achieved in Russia
(+25%).
Business reorganized in Germany. Daimler Financial Services
and Mercedes-Benz Bank have decided to reorganize their busi-
ness activities in Germany. In October, we reached an agreement
with the employee council on the basic principles of the realign-
ment. In particular, it stipulates that by the end of 2012, all business
activities will be concentrated at three locations in Germany
instead of the current nine. In the medium term, this reorganization
will generate cost advantages of about €40 million each year.
As a result of the reorganization, the headquarters of Daimler
Financial Services will move in 2012 from Berlin to Stuttgart,
where it will be co-located under one roof with the headquarters
of Mercedes-Benz Bank. Mercedes-Benz Bank will set up a new
service center in Berlin by 2012, where it will concentrate its
functions for the commercial financial services business for
Daimler vehicles, which is currently carried out at eight branches
and at the Mercedes-Benz Bank headquarters in Stuttgart.
Growth in North and South America. Contract volume of
€25.9 billion in North and South America was 13% higher than in
2009. Adjusted for exchange-rate effects, there was an increase
of 4%. New business increased by 22% to €10.9 billion. Daimler
Financial Services grew noticeably in Mexico, Brazil and Argen-
tina, with contract volume rising by a total of 30% to €4.1 billion.
Strong performance by the financial services division. Daimler
Financial Services’ business developed very favorably during the
year under review. Worldwide contract volume of €63.7 billion
was 9% higher than the prior-year level. Adjusted for exchange-
rate effects, contract volume grew by 3%. New business increased
by 17% to €29.3 billion. Adjusted for exchange-rate effects,
the increase was 11%. EBIT was very high at €831 million
(2009: €9 million).
Successful continuation of “Captive #1.” Daimler Financial
Services continued to implement its “Captive #1” strategic
program during the year under review. The aims of this program
include further improving customer and dealer satisfaction,
boosting efficiency and profitability, and achieving sustainable
growth. Due to the global economic and financial crisis, the
division’s focus was on reducing costs and ensuring sufficient
refinancing in 2009. However, sustainable profitable growth
is now once again playing a greater role at Daimler Financial
Services. This is especially true in the Chinese and Brazilian
markets, and the scheduled launch of operations in India in 2011
promises to generate additional growth.
Business remains stable in Europe. Our financial services
business remained stable in Europe in 2010. At €29.2 billion,
contract volume was 2% higher than a year earlier. Adjusted for
exchange-rate effects, there was a slight increase of 1%. New
business of €14.8 billion was 8% higher than the prior-year level.
Daimler Financial Services
2010 2009 10/09
Amounts in millions of euros % change
EBIT 831 9 .
Revenue 12,788 11,996 +7
New business 29,267 25,066 +17
Contract volume 63,725 58,350 +9
Investment in property, plant
and equipment
12
14 -14
Employees (December 31) 6,742 6,800 -1