Mercedes 2012 Annual Report Download - page 110

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3 | Management Report | Daimler AG
Receivables, securities and other assets decreased com-
pared with December 31, 2011 by €0.1 billion to €26.7 billion.
This was primarily caused by receivables from subsidiaries
(minus €0.8 billion) and receivables from associated companies
(minus €0.2 billion). Securities increased compared with
the end of 2011 by €0.9 billion. Cash and cash equivalents
increased by €2.3 billion to €7.1 billion.
Gross liquidity – defined as cash and cash equivalents and
other marketable securities – of €9.6 billion was significantly
higher than a year earlier (2011: €6.5 billion).
Cash provided by operating activities amounted to €5.4 billion
in 2012 (2011: €4.0 billion) and was mainly affected by the
substantial net income. The main opposing effects were the
higher tax payments.
Selling expenses increased to €5.9 billion in 2012 (2011:
€5.7 billion). The increase was caused by the higher volume
of business and the related higher expenses for purchased
services, as well as higher shipping and IT costs.
General administrative expenses increased by 6.4% to
€2.6 billion (2011: €2.4 billion). This development was mainly
the result of higher expenses for IT services and consulting.
The net other operating income improved by €0.5 billion
to €1.8 billion. The change compared with the prior year was
mainly the result of reclassifying license income of €0.4 billion;
in the prior year, it had been classified under revenue. In addi-
tion, higher income was realized from recharging costs to third
parties and companies of the Group. There was an opposing,
negative effect from the lower income from currency translation.
Financial income improved by €1.4 billion to €3.7 billion,
mainly due to higher net income from investments in subsidiaries
and associated companies and higher net interest income.
This increase primarily reflects the higher profit transfer from
Daimler Luft- und Raumfahrt Holding AG following the sale
of approximately 7.5% of the shares of EADS.
The income tax benefit for 2012 amounts to €0.4 billion
(2011: expense of €0.7 billion). One of the reasons for the lower
income tax expense in 2012 is the lower pre-tax profit, which
also includes a large gain on the sale of EADS shares that
is almost tax free. There were also tax benefits from the tax
assessment of previous years.
Net income improved compared with the prior year from
€4.8 billion to €5.5 billion. This increase is primarily due
to special factors from the sale of EADS shares and from income
tax benefits from the assessment of previous years.
Financial position, liquidity and capital resources
Compared with December 31, 2011, the balance sheet total
increased from €78.7 billion to €83.4 billion.
Non-current assets increased by €2.1 billion to €42.8 billion
during 2012. This was primarily the result of investments
in subsidiaries and associated companies: In 2012, Rolls-Royce
completed the agreed contribution of the piston-engine
business of the Bergen brand to Engine Holding GmbH. In return,
Daimler AG made a cash contribution into the capital reserve
of Engine Holding GmbH. Furthermore, a capital contribution
was made to the new truck joint venture in China. Capital
expenditure on property, plant and equipment (approximately
€2.8 billion excluding leased assets) mainly constituted
investments for the production of the new compact class, the
new C- and S-Class, as well as investments in engine and
transmission projects.
Inventories of €6.6 billion were slightly higher than a year
earlier (2011: €6.3 billion).
Condensed statement of income of Daimler AG
2012 2011
In millions of euros
Revenue 72,727 69,486
Cost of sales (including R&D expenses) -64,600 -59,562
Selling expenses -5,883 -5,655
General administrative expenses -2,600 -2,443
Other operating income/expense, net 1,755 1,309
Operating profit 1,399 3,135
Financial income 3,710 2,323
Income from ordinary activities 5,109 5,458
Income taxes (benefit, 2011: expense) 366 -701
Net income 5,475 4,757
Transfer to retained earnings -2,737 -2,378
Distributable profit 2,738 2,379
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