Mercedes 2013 Annual Report Download - page 213

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F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
The objections to the decision were withdrawn because the
appellant’s representatives and RRPSH agreed to an out-of-court
settlement. The minority shareholders of Tognum AG, whose
shares were transferred to RRPSH in the context of the squeeze-
out under takeover law, and the former shareholders of
Tognum AG, who accepted the compensation of the control
and profit and loss transfer agreement effective December 19,
2012, received compensation of €31.61 per share pursuant
to the out-of-court settlement.
Rolls-Royce granted Daimler the right to exercise a put option
on the shares it holds in RRPSH at a price which generally hedges
Daimler’s investment in RRPSH. Starting on January 1, 2013,
the put option has a duration of six years. On December 31, 2013,
the value of this option was €118 million (2012: €178 million).
The option has been recognized as an asset to be measured
at fair value through profit or loss in the following periods.
The change in the fair value of the option during 2013 resulted
in a loss of €60 million (2012: gain of €1 million), which is rec-
ognized in other financial expense, net. The carrying amount
of this option, which is presented under “Other financial
assets”, as well as future changes in its fair value are recognized
in segment reporting as corporate items in the reconciliation
to Group figures.
The equity interest in and the proportionate share of RRPSH’s
profit or loss are allocated to the Daimler Trucks segment.
BBAC. The investment and the proportionate share in the results
of Beijing Benz Automotive Co., Ltd. (BBAC) are allocated
to the Mercedes-Benz Cars segment. In 2013, Daimler partici-
pated in a capital increase and made a payment of approxi-
mately €160 million. The Chinese partner BAIC Motor Corpora-
tion Ltd. (BAIC Motor) participated with the same amount.
On November 18, 2013, BAIC Motor increased its stake in BBAC
by 1% to 51% in the course of a capital increase in which
Daimler did not participate.
BFDA. In 2012, Beijing Foton Daimler Automotive Co., Ltd.
received a capital contribution of €344 million from Daimler.
The investment and the proportionate share in the results
of BFDA are allocated to the Daimler Trucks segment.
BAIC Motor. On November 18, 2013, BAIC Motor issued new
shares to Daimler representing a 12% stake in BAIC Motor
for a purchase price of €627 million including incidental acqui-
sition costs. Resulting from Daimler’s representation on the
board of directors of BAIC Motor and other contractual arrange-
ments the Group classified this investment as an investment
in an associate, to be accounted for using the equity-method,
and allocated the investment to reconciliation of total seg-
ment’s assets to Group assets. In December 2013, the share-
holders of BAIC Motor declared a dividend to its shareholders.
The portion of €23 million attributable to Daimler has decreased
the investment book value respectively. The Group is in the
process to perform an allocation of the purchase price on the
identifiable assets and liabilities.
Kamaz. Resulting from its representation on the board of
directors of Kamaz OAO (Kamaz) and its significant contractual
rights under the terms of a shareholder agreement, the Group
can exercise significant influence on Kamaz. Therefore, the Group
accounts for its equity interest in Kamaz using the equity
method; the investment and the proportionate share in the
results of Kamaz are allocated to the Daimler Trucks segment.
Others. The equity results of the other investments mainly result
from startup losses at several companies in the area of alter-
native drive systems (2013: €205 million; 2012: €89 million) which
are allocated to the Mercedes-Benz Cars segment. In 2013,
impairments of investments of €174 million (2012: €51 million)
are included.
The Group’s investment in Fujian Benz Automotive Co.,
Ltd. (FBAC) is included in other investments and is allocated
to the Mercedes-Benz Vans segment. In 2012, the Group
recorded an impairment loss of €64 million with respect to its
investment in FBAC. The loss is included in the equity result.
The Group’s investment in Tesla Motors, Inc. (Tesla) is also
included in other investments. The shares in Tesla are held
by a 100%-consolidated Daimler subsidiary. At December 31,
2011, Daimler held 60% and Aabar Investments PJSC (Aabar)
held 40% of that subsidiary. In June 2012, Aabar exchanged its
40% interest in the holding subsidiary for 3.2% of Tesla’s
shares. In October 2012, Tesla issued approximately 8 million
new shares in the context of a capital increase in which
Daimler did not participate. As a result, Daimler held a 4.3%
equity interest in Tesla as of December 31, 2012. In 2013,
the Group realized a dilution gain of €11 million due to a capital
increase in which Daimler did not take part. The equity inter-
est in Tesla amounts to 4.0% as of December 31, 2013; the fair
value and the carrying amount of the investment were €531
million and €13 million as of December 31, 2013 respectively
(December 31, 2012: €125 million and €6 million). Due to
its representation on the board of directors, participation in
decision-making processes and jointly conducted projects,
the Group can exercise significant influence on Tesla. Therefore,
the Group accounts for its equity interest in Tesla using the
equity method; the investment and the proportionate share in
the results of Tesla are allocated to the Mercedes-Benz Cars
segment.
Further information on investments accounted for using
the equity method is included in Note 36.