Mercedes 2010 Annual Report Download - page 86

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The Group recorded net interest expense for the year 2010
of €0.6 billion (2009: net interest expense of €0.8 billion).
The improvement was primarily due to lower interest expenses
caused by a lower level of debt in the industrial business.
This more than offset the higher expenses relating to pension
and health-care obligations. Further information on interest
income and expense is provided in Note 8 of the Notes to the
Consolidated Financial Statements.
The income-tax expense of €2.0 billion recorded in 2010
(2009: €0.3 billion) is mainly a reflection of the Group’s profit
before income taxes, with opposing effects from the reversal
of impairments recognized on deferred tax assets. The effective
tax rate for 2010 is 29.5% (2009: minus 15.1%). The effective
tax rate in 2009 reflects the fact that impairments had to be recog-
nized on deferred tax assets at non-German subsidiaries and
that tax expenses had to be recognized in connection with the
tax assessment of previous years. Further information on income
taxes is provided in Note 9 of the Notes to the Consolidated
Financial Statements.
The positive development of EBIT led to a significant improve-
ment in net profit to €4.7 billion in 2010 (2009: net loss of €2.6
billion). Earnings per share improved accordingly to €4.28
(2009: loss per share of €2.63).
In euros
Dividend per share
2006
1.50
2007
2.00
2008
0.60
20102009
0.00
2.50
2.00
1.50
1.00
0.50
0
1.85
Dividend
After deciding not to pay a dividend last year in view of the net
loss in 2009, we now want our shareholders to participate again
appropriately in our financial success. In setting the dividend,
we aim to distribute approximately 40% of the Group’s net profit
attributable to the Daimler shareholders. On this basis, the Board
of Management and the Supervisory Board have decided to recom-
mend to the shareholders for their approval at the Annual
Meeting to be held on April 13, 2011 that a dividend of €1.85
per share be paid out. The total dividend payout will then amount
to €1,971 million.