Mercedes 2012 Annual Report Download - page 89

94
Daimler Buses posted EBIT for the year of minus €232 million
(2011: plus €162 million). The division’s return on sales was
minus 5.9% (2011: plus 3.7%).

3.14
The decrease in earnings was primarily the result of lower sales
of bus chassis due to the difficult business situation in Latin
America as well as an unfavorable model mix in the declining
European market. There were additional negative effects
on earnings from expenses of €155 million for the repositioning
of the European and North American business systems and
from exchange-rate changes.
Daimler Financial Services achieved EBIT of €1,292 million
in 2012, which is close to its earnings of the prior year
(€1,312 million). The division’s return on equity was 21.9%
(2011: 25.5%).

3.15
A larger contract volume and exchange-rate effects contrib-
uted positively to the earnings development. There were
opposing effects on earnings from lower interest margins and
a normalization of risk costs, which had been unusually low
in the prior year. Additional expenses arose in connection with
the portfolio expansion. Prior-year earnings included allow-
ances for bad debts in connection with the natural disaster in
Japan (€10 million).
The reconciliation of the divisions’ EBIT to Group EBIT
comprises our proportionate share of the results of our equity-
method investment in EADS, other gains and/or losses at
the corporate level, and the effects on earnings of eliminating
intra-group transactions between the divisions.
Daimler’s proportionate share of the net profit of EADS
amounted to €307 million (2011: €143 million). In addition,
the Group realized a gain of €709 million on the sale of 7.5%
of the shares of EADS during the reporting period. At the
corporate level, an expense of €113 million was recognized
(2011: expense of €588 million). Corporate items in the prior
year included in particular litigation expenses and a charge
on the impairment of our investment in Renault (€110 million).
The elimination of intra-group transactions resulted in income
of €8 million in 2012 (2011: expense of €177 million).
Return on equity
In %
25
30
20
15
10
5
0
2009
2010
2011
2012
Daimler Financial Services
3.15
3.16
Value Added=–x Profit Measure
Cost of Capital
Cost of
Capital (%)
Net Assets
3.17
Value
Added
Net Assets
=–xx Net Assets
Productivity
Return on
Sales
Cost of
Capital (%)
3.18
Cost of capital
2012 2011
In percent
Group, after taxes 88
Industrial dvisions, before taxes 12 12
Daimler Financial Services, before taxes 13 13