Mercedes 2012 Annual Report Download - page 20

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Daimler’s business activities continued to develop successfully
during the year 2012. The Group’s unit sales and revenue
increased significantly. Earnings from ongoing operations were
at the good level of €8.1 billion. During the year under review,
in line with the strategic planning, the Group considerably
expanded its international presence with the opening of new
plants in Hungary and India, with the start of operations
by our truck joint venture in China, and with investment in the
expansion of our car joint venture in Beijing and in our plant
in Tuscaloosa, USA. Further steps were thus taken to give
the Group a regional balance. Disproportionately high increases
in unit sales and revenues in Asia and the NAFTA region are
evidence of a consistent regional strategy and reduce Daimler’s
dependence on developments in Western Europe. The Super-
visory Board expressly supports this strategy, which will enhance
Daimler’s future competitiveness and competitive position.
The additional expenditure to expand the product portfolio and
increase the number of production locations had a corre-
sponding effect on the key financial metrics for the year 2012.
An issue relevant to the work of the Supervisory Board
throughout the year 2012 was the feasibility of planning further
developments and their stability. On the whole, the economic
environment was, and still is, marked by great uncertainty.
The general economic outlook, and in particular the situation
in the financial markets, was dominated by significant risk
factors and uncertainty. The Board of Management and the
Supervisory Board carefully monitored the economic situation
in China, one of the Group’s key markets.
Supporting actions at the European level prevented the
disintegration of the euro zone. For the crisis to be overcome,
however, further measures will have to be taken at the
European level; above all the required structural reforms
will have to be carried out in the countries affected by
the sovereign-debt crisis so that they can regain their inter-
national competitiveness.
In the year 2012, the Supervisory Board performed its tasks
as laid down by applicable law, the Articles of Incorporation and
its rules of procedure, and continually advised and supervised
the Board of Management on the management of the company.
Following careful reviews and consultations, the Supervisory
Board passed resolutions on numerous business matters
for which its consent was required, such as investment and
personnel planning, capital changes at companies of the Group,
investments and divestments and the conclusion of contracts
of particular importance for the Group. In addition, the Super-
visory Board examined for example whether the risk report,
the financial reporting and the annual financial statements were
in conformance with requirements. The Board of Management
also informed the Supervisory Board about a large number
of transactions not requiring the Supervisory Board’s consent
and the two boards discussed those matters together, for
example the further development of strategic programs in the
various divisions and the status of various cooperation projects.
The Supervisory Board discussed the information and eval-
uations that were material for its decisions and suggestions
together with the Board of Management. The Supervisory
Board meetings were regularly prepared in separate discus-
sions of the members representing the employees and the
members representing the shareholders with the members
of the Board of Management. The Board of Management
generally participates in the meetings of the Supervisory Board.
The Supervisory Board has also established an executive
session in each of its meetings in order to discuss topics in
the absence of the Board of Management.
No member of the Supervisory Board attended less than
half of the meetings in the past financial year. The Chairman
of the Supervisory Board was regularly informed by the
Chairman of the Board of Management about all significant
operating developments as well as personnel changes and
appointments.
Report of the Supervisory Board
Dear Shareholders, the Supervisory Board dealt in detail with the operational and strategic
development of the Daimler Group in seven meetings during the 2012 financial year.