Mercedes 2012 Annual Report Download - page 92

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3 | Management Report | Profitability
Statement of income
The Group’s total revenue improved by 7.3% to €114.3 billion
in 2012; adjusted for exchange-rate effects, it increased by
3.6%. The revenue growth primarily reflects higher shipments
of vehicles by Mercedes-Benz Cars, increased unit sales by
Daimler Trucks in North America and Asia, and the larger con-
tract volume at Daimler Financial Services. Mercedes-Benz
Vans posted a slight decrease in revenue. Revenue at Daimler
Buses also decreased, as a result of lower unit sales of bus
chassis. Further information on the development of revenue is
provided in the E “Business development” section of this
Management Report.

3.23
Cost of sales amounted to €88.8 billion in the year under
review, increasing by approximately 10% compared with the
prior year (2011: €81.0 billion). The increase in cost of sales
was caused by higher business volumes and consequentially
higher material costs. Personnel expenses and depreciation
of property, plant and equipment also increased. At Financial
Services, depreciation of equipment on operating leases
increased in connection with the growing leasing business.
Overall, cost of sales increased at a higher rate than revenue,
so gross profit in relation to revenue fell to 22.3% (2011: 24.0%).
Further information on cost of sales is provided in E Note 5
of the Notes to the Consolidated Financial Statements.

3.23
Due to the growth in unit sales, selling expenses increased
by €0.6 billion to €10.5 billion. The main factors here were higher
expenses for marketing, personnel and IT services. As a
percentage of revenue, selling expenses decreased from 9.2%
to 9.1%.

3.23
General administrative expenses increased to €4.0 billion
(2011: €3.9 billion). The increase was partially due to higher
costs for IT and consulting services. As a percentage of revenue,
general administrative expenses decreased slightly to 3.5%
(2011: 3.6%).

3.23
Research and non-capitalized development costs were
unchanged compared with the prior year at €4.2 billion
in 2012. They were mainly related to advance expenditure for
the development of new models, the renewal of existing
models, and the further development of drive systems and
safety technologies. As a proportion of revenue, research
and development costs decreased from 3.9% to 3.7%. Further
information on the Group’s research and development costs
is provided in the E “Research and development, environmen-
tal protection” section of this Management Report.

3.23
Other operating income increased to €1.5 billion
(2011: €1.4 billion). The increase was mainly due to higher
income from services charged to third parties.

3.23
3.23
Consolidated statement of income
2012 2011 12/11
In millions of euros % change
Revenue 114,297 106,540 +7
Cost of sales -88,784 -81,023 +10
Gross profit 25,513 25,517 .
Selling expenses -10,451 -9,824 +6
General administrative expenses -3,973 -3,855 +3
Research and non-capitalized
development costs
-4,179
-4,174 .
Other operating income 1,507 1,381 +9
Other operating expense -291 -355 -18
Share of profit/loss from
investments accounted for
using the equity method, net
990
273 .
Other financial income/expense, net -501 -208 -141
Earnings before interest
and taxes (EBIT)1
8,615
8,755 -2
Interest income 828 955 -13
Interest expense -1,725 -1,261 +37
Profit before income taxes 7,718 8,449 -9
Income taxes -1,223 -2,420 -50
Net profit 6,495 6,029 +8
thereof
Profit attributable to
non-controlling interest
400
362 +11
thereof
Profit attributable to
shareholders of Daimler AG
6,095
5,667 +8
1 EBIT includes expenses from the compounding of provisions and
effects from changes in discount rates (2012: minus €543 million;
2011: minus €225 million).
3.22
Net assets of the Daimler Group at year-end
2012 2011 12/11
In millions of euros % change
Net assets of the industrial
business
Intangible assets 8,761 8,174 +7
Property, plant and equipment 20,546 19,129 +7
Leased assets 12,163 10,849 +12
Inventories 17,075 16,575 +3
Trade receivables 6,864 7,580 -9
Less provisions for other risks -11,316 -11,967 +5
Less trade payables -8,515 -9,233 +8
Less other assets and liabilities -14,464 -13,954 -4
Assets and liabilities from
income taxes
573
24 .
Total equity of
Daimler Financial Services
6,153
5,373 +15
Net assets 37,840 32,550 +16