Mercedes 2012 Annual Report Download - page 91

96
Value added
The Group’s value added increased by €0.5 billion to €4.2 billion;
representing a return on net assets of 19.5% (2011: 19.9%).
This was once again considerably higher than the minimum
required rate of return of 8%. Despite lower earnings by
the operating divisions and higher net assets, the Group’s value
added surpassed the high level of the prior year. This was
primarily due to the lower income tax expense and the sale
of 7.5% of the shares of EADS.

3.19

3.20
Mercedes-Benz Cars’ value added decreased by €1.1 billion
to €2.7 billion. Despite higher unit sales, earnings decreased due
to the increasingly difficult economic environment as the
year progressed as well as expenses related to the enhancement
of our products’ attractiveness, capacity expansion and
advance expenditure for new technologies and vehicles. There
was an additional negative impact from the increase in average
net assets by €2.1 billion to €13.9 billion, mainly due to the higher
level of fixed assets caused by increased investment for
new products.
The decrease in value added at the Daimler Trucks division
from €0.8 billion to €0.4 billion was caused on the one hand
by the lower earnings mainly due to falling demand in Brazil and
Western Europe, and on the other hand by expenses for the
current product offensive. Furthermore, net assets increased
by €2.0 billion as a result of higher inventories and fixed
assets.
The value added of the Mercedes-Benz Vans division also
decreased to €0.4 billion. The reason for this development was
the fall in EBIT due to lower levels of unit sales, especially
caused by the significantly weaker market in Western Europe.
There were negative effects also in connection with the
impairment of the Chinese joint venture Fujian Benz Automotive
Corporation and expenses for the market launch of the new
Citan city van and of the new Sprinter in Argentina. Average net
assets were almost unchanged compared with the prior year.
At the Daimler Buses division, value added decreased from
plus €23 million to minus €369 million. This development reflects
the negative earnings due to lower unit sales of bus chassis,
especially in Latin America, and the difficult market situation
in Western Europe. There were additional effects from
expenses connected with the repositioning of the European
and North American business systems.
The value added of the Daimler Financial Services division
decreased by €0.1 billion to €0.5 billion. Return on equity
was 21.9% (2011: 25.5%). This development was primarily the
result of the increase in average equity by €0.7 billion to
€5.9 billion due to the higher contract volume. Earnings were
at the level of the prior year.
Table

3.22 shows the derivation of net assets from
the consolidated statement of financial position.
3.19
Value added
2012 2011 12/11
In millions of euros % change
Daimler Group 4,185 3,726 +12
Mercedes-Benz Cars 2,716 3,775 -28
Daimler Trucks 396 796 -50
Mercedes-Benz Vans 387 690 -44
Daimler Buses -369 23 .
Daimler Financial Services 526 643 -18
3.20
Net assets (average)
2012 2011 12/11
In millions of euros % change
Mercedes-Benz Cars 13,947 11,814 +18
Daimler Trucks 10,987 9,000 +22
Mercedes-Benz Vans 1,284 1,212 +6
Daimler Buses 1,141 1,161 -2
Daimler Financial Services15,890 5,147 +14
Net assets of the divisions 33,249 28,334 +17
Investments accounted for
using the equity method 2
2,408
2,643 -9
Assets and liabilities from
income taxes 3
-80
-385 +79
Other reconciliation 3808 834 -3
Daimler Group 36,385 31,426 +16
1 Total equity
2 To the extent not allocated to the segments
3 Industrial business
3.21
Reconciliation to net operating profit
2012 2011 12/11
In millions of euros % change
Mercedes-Benz Cars 4,389 5,192 -15
Daimler Trucks 1,714 1,876 -9
Mercedes-Benz Vans 541 835 -35
Daimler Buses -232 162 -243
Daimler Financial Services 1,292 1,312 -2
EBIT of the divisions 7,704 9,377 -18
Income taxes 1-1,519 -2,515 +40
Othe reconciliation 911 -622 +246
Net operating profit 7,096 6,240 +14
1 Adjusted for tax effects of interest income