Mercedes 2012 Annual Report Download - page 109

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In addition to reporting on the Daimler Group, in this chapter,
we also describe the development of Daimler AG.
Daimler AG is the parent company of the Daimler Group and
is domiciled in Stuttgart. Its principal business activities
comprise the development, production and distribution of cars,
vans and trucks in Germany and the management of the
Daimler Group.
The vehicles are produced at the domestic plants of Daimler
AG as well as under contract-manufacturing agreements by
domestic and foreign subsidiaries and by producers of special
vehicles. Daimler AG distributes its products through its own
sales network of 34 German sales-and-service centers, through
foreign sales subsidiaries and through third parties.
The annual financial statements of Daimler AG are prepared
in accordance with the German Commercial Code (HGB).
The consolidated financial statements are prepared in accor-
dance with the International Financial Reporting Standards
(IFRS).This results in some differences with regard to recognition
and measurement, primarily relating to intangible assets,
provisions, financial instruments, the leasing business and
deferred taxes.
Profitability
Daimler AG posted an income from ordinary activities
of €5.1 billion, which is slightly lower than in the prior year
(2011: €5.5 billion). The development of earnings reflects
the reduction in operating profit to €1.4 billion (2011: €3.1 billion)
and an opposing effect from the increase in financial income.
Revenue increased by €3.2 billion to €72.7 billion. Revenue
in the car business increased by 8% to €53.2 billion, due
to higher unit sales. The revenue generated by sales of trucks
and vans decreased by 3% to €19.5 billion.
In a more difficult economic environment, especially in
the second half of the year, earnings in the car business were
lower than in 2011. Further growth in unit sales had a positive
impact on earnings. We achieved high growth rates particularly
in the compact-car segment, with SUVs and with shipments
in the United States. Earnings were adversely affected primarily
by a less favorable model mix and by measures taken to
enhance the products’ attractiveness. There were other negative
impacts from expenditure for new technologies and new vehi-
cles. The car division’s unit sales increased by 4% to 1,357,000
vehicles in 20121. Following the successful market launch
of the A-Class in Europe and the strong sales of the B-Class,
the compact-car segment posted growth in unit sales of 31%
to 238,000 units1. Due to the great popularity of the new SUVs,
unit sales of the M-, R-, GL-, GLK- and G-Class increased by
9% to 273,000 units1. Unit sales in the E-Class segment decreased
to 273,000 vehicles for lifecycle reasons (2011: 297,000)1.
Earnings from trucks and vans were also lower than in the prior
year due to lower unit sales. Unit sales of 96,000 trucks were
close to the prior-year level (2011: 99,000)1. 249,000 vans were
sold (2011: 254,000)1.
Cost of sales (excluding research and development expenses)
increased by 9.2% to €59.8 billion (2011: €54.8 billion).
The changed product mix, expenses for the enhancement
of products’ attractiveness and for new technologies and
products led to higher cost of sales.
Research and development expenses, which are included
in cost of sales, of €4.8 billion were at the prior-year level
(2011: €4.8 billion); as a proportion of revenue, they amounted
to 6.6% (2011: 6.9%). These expenses are primarily caused
by the renewal of the product portfolio, especially with regard
to the compact class and the S-, E- and C-Class. In addition,
we are continuously working on new generations of engines and
alternative drive systems. At the end of the year, approximately
17,000 people were employed in the area of research and
development.
Daimler AG
Condensed version according to the German Commercial Code (HGB)
1 The unit sales of Daimler AG include vehicles invoiced to companies
of the Group which have not yet been sold on to external customers
by those companies. Vehicle sales by production companies of the Daimler
Group are not counted in the unit sales of Daimler AG.