Mercedes 2012 Annual Report Download - page 102

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3 | Management Report | Liquidity and Capital Resources
To the extent that the Group’s internal refinancing of the finan-
cial services business is provided by the companies of the
industrial business, this amount is deducted in the calculation
of the net debt of the industrial business.
Compared with December 31, 2011, the net liquidity of the
industrial business decreased by €0.5 billion to €11.5 billion.
The reduction was mainly caused by the free cash flow and
the payment of the dividend to the shareholders of Daimler AG
for the year 2011.
Net debt at Group level  3.32, which primarily results from
the refinancing of the leasing and sales financing business,
increased by €8.3 billion compared with December 31, 2011.
The increase was primarily the result of the higher volume
of new business in the area of leasing and sales financing and
the payment of the dividend for the year 2011. There was
also an impact from the positive free cash flow of the industrial
business.
Capital expenditure
Renewed increase in investment.  3.33 In the context
of our global growth strategy, we want to make good use
of the opportunities presented by international automotive
markets. This requires substantial capital expenditure on local
production facilities, new products and new technologies.
In 2012, we therefore once again significantly increased our
investment in property, plant and equipment to €4.8 billion
(2011: €4.2 billion). Of that total, €3.3 billion was invested
in Germany (2011: €2.7 billion). In relation to revenue, investment
in property, plant and equipment reached the very high
proportion of 4.2% (2011: 3.9%).
At Mercedes-Benz Cars, investment in property, plant
and equipment increased by 28% to €3.5 billion in 2012.  3.34
One focus was on the expansion of production capacities for
our new compact-class models at the Rastatt plant in Germany
and at the new plant in Kecskemét, Hungary. In Sindelfingen,
we invested in preparations for production of the new S-Class.
In Tuscaloosa, USA, and in Bremen, preparations are already
under way for production of the new C-Class as of 2014.
At Daimler Trucks, the main areas of investment were the new
Mercedes-Benz Antos for heavy-duty distribution transport,
the new heavy construction-site truck Arocs and various projects
for the global harmonization and standardization of engines
and other main components and for meeting stricter emission
regulations. We also invested in expanding our production
capacities in Brazil and in the new plant in India, where trucks
of the new BharatBenz brand have been rolling off the pro-
duction line since mid-2012. Total investment in property, plant
and equipment at Daimler Trucks amounted to €1.0 billion
(2011: €1.2 billion). At the Mercedes-Benz Vans division, the focus
of investment was on the new Citan small van and the suc-
cessor generation of the Vito goods van and the Viano passenger
van. We also invested in the production and marketing of
the Sprinter in Argentina and in the expansion and modernization
of the sales organization. The main investments at Daimler
Buses in 2012 were in new products and the modernization
of production facilities.
3.34
Investment in property, plant and equipment by division
2012 2011 12/11
In millions of euros % change
Daimler Group
in % of revenue
4,827
4.2
4,158
3.9
+16
Mercedes-Benz Cars
in % of revenue
3,495
5.7
2,724
4.7
+28
Daimler Trucks
in % of revenue
989
3.2
1,201
4.2
-18
Mercedes-Benz Vans
in % of revenue
223
2.5
109
1.2
+105
Daimler Buses
in % of revenue
82
2.1
103
2.3
-20
Daimler Financial Services
in % of revenue
23
0.2
21
0.2
+10
4
3
2
1
0
2008 2009 2010 2011 2012
3.33
5
Capital expenditure
In billions of euros