Mercedes 2012 Annual Report Download - page 252

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7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
33. Capital management
“Net assets” and “value added” represent the basis for capital
management at Daimler. The assets and liabilities of the
segments in accordance with IFRS provide the basis for the
determination of net assets at Group level. The industrial
segments are accountable for the operational net assets; all
assets, liabilities and provisions which they are responsible
for in day-to-day operations are therefore allocated to them.
Performance measurement at Daimler Financial Services
is on an equity basis, in line with the usual practice in the bank-
ing business. Net assets at Group level additionally include
assets and liabilities from income taxes as well as other corpo-
rate items and eliminations.
The average annual net assets are calculated from the average
quarterly net assets. The average quarterly net assets are
calculated as an average of the net assets at the beginning
and the end of the quarter and are shown in table  7.90.
The cost of capital of the Group’s average net assets is
reflected in “value added.” Value added shows to which extent
the Group achieves or exceeds the minimum return require-
ments of the shareholders and creditors, thus creating additional
value. The required rate of return on net assets, and thus
the cost of capital, are derived from the minimum rates of return
that investors expect on their invested capital. The Group’s
cost of capital comprises the cost of equity as well as the costs
of debt and pension obligations of the industrial business;
in addition, the expected returns on liquidity and on the plan
assets of the pension funds of the industrial business are
considered with the opposite sign. In the reporting period,
the cost of capital used for our internal capital management
amounted to 8% after taxes.
The objective of capital management is to increase value added
among other things by optimizing the cost of capital. This is
achieved on the one hand by the management of the net assets,
for instance by optimizing working capital, which is in the
operational responsibility of the segments. In addition, taking
into account legal regulations, Daimler strives to optimize
the capital structure and, consequently, the cost of capital under
cost and risk aspects. Examples for this include a balanced
relationship between equity and financial liabilities as well
as an appropriate level of liquidity, oriented towards the opera-
tional requirements.
7. 8 8
Revenue by region
2012 2011
In millions of euros
Western Europe 39,377 39,387
thereof Germany 19,722 19,753
United States 27,233 22,222
Other American countries 9,734 10,232
Asia 25,126 22,643
thereof China 10,782 11,093
Other countries 12,827 12,056
114,297 106,540
Non-current assets by region
2012 2011
In millions of euros
Germany 29,889 27,272
United States 13,889 12,168
Other countries 11,764 10,810
55,542 50,250
7. 8 9
Average net assets
2012 2011
In millions of euros
Mercedes-Benz Cars 13,947 11,814
Daimler Trucks 10,987 9,000
Mercedes-Benz Vans 1,284 1,212
Daimler Buses 1,141 1,161
Daimler Financial Services15,890 5,147
Net assets of the segments 33,249 28,334
Investments accounted for using
the equity method2
2,408
2,643
Assets and liabilities from income taxes3-80 -385
Other corporate items and eliminations3808 834
Net assets Daimler Group 36,385 31,426
1 Equity
2 Unless allocated to segments
3 Industrial business
7.9 0