Mercedes 2013 Annual Report Download - page 84

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The Daimler Buses division returned to profitability in 2013
and posted EBIT of €124 million (2012: minus €221 million).
Its return on sales was 3.0% (2012: minus 5.6%).
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C.15
This positive development was driven by growth in unit sales
in Western Europe and Latin America as well as by an improved
model mix. Additional factors that led to significant earnings
improvements were further efficiency progress in the European
business and lower expenses for the repositioning of the Euro-
pean and American businesses. Expenses for repositioning the
business system amounted to €39 million (2012: €155 million).
Daimler Financial Services achieved EBIT of €1,268 million
in 2013, which is close to its earnings of the previous year
(€1,293 million). The division’s return on equity was 19.2%
(2012: 22.0%).
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C.16
A larger contract volume contributed towards the earnings
improvement. There were opposing effects on earnings
from negative exchange-rate developments and lower interest
margins. Higher expenses were incurred in connection with
the expansion of business operations.
The reconciliation of the divisions’ EBIT to Group EBIT
comprises gains and/or losses at the corporate level and the
effects on earnings of eliminating intra-group transactions
between the divisions. Until the sale of the remaining EADS
shares, gains and/or losses at the corporate level also
included our proportionate share of the results of the equity-
method investment in EADS.
In early April, Daimler left the former EADS shareholder pact.
Due to the resulting loss of significant influence, the EADS
shares were no longer accounted for using the equity method.
This resulted in a gain of €3.4 billion in 2013. On April 17,
2013, the Group sold its remaining EADS shares, comprising
a stake in the company of approximately 7.4%, by way of
an accelerated bookbuilding process; the development of the
EADS share price between April 2, 2013 and the date of
the sale resulted in a loss of €184 million. The Group had also
reached an agreement with cash settlement allowing parti-
cipation to a limited extent in a rise in the EADS share price until
the end of 2013. This agreement resulted in a gain for the
Daimler Group of €44 million. In total, our proportionate share
of the results of EADS resulted in a capital gain of €3.2 billion.
Further information on the disposal of the EADS shares in 2013
is included in E Note 13 of the Notes to the Consolidated
Financial Statements.
A loss of €191 million was recognized (2012: loss of €113 million)
for the other items at the corporate level. The elimination
of intra-group transactions resulted in a gain of €82 million
in 2013 (2012: €8 million).
The reconciliation of Group EBIT to profit before income
taxes is shown in the table
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C.18.
C .17
Consolidated statement of income
2013 2012 13/12
In millions of euros % change
Revenue 117,982 114,297 +3
Cost of sales -92,457 -88,821 +4
Gross profit 25,525 25,476 +0
Selling expenses -10,875 -10,455 +4
General administrative expenses -3,865 -3,974 -3
Research and non-capitalized
development costs
-4,101
-4,179 -2
Other operating income 1,530 1,507 +2
Other operating expense -399 -291 +37
Share of profit from investments
accounted for using the equity
method, net
3,345
1,198
+179
Other financial expense, net -349 -462 -24
Interest income 212 233 -9
Interest expense -884 -937 -6
Profit before income taxes 10,139 8,116 +25
Income taxes -1,419 -1,286 +10
Net profit 8,720 6,830 +28
thereof attributable to
non-controlling interests
1,878
402 +367
thereof attributable to
shareholders of Daimler AG
6,842
6,428 +6
C .18
Reconciliation of Group EBIT to profit before income taxes
2013 2012
In millions of euros
Group EBIT 10,815 8,820
Amortization of capitalized
borrowing costs1
-4
0
Interest income 212 233
Interest expense -884 -937
Profit before income taxes 10,139 8,116
1 Amortization of capitalized borrowing costs is not included in the internal
performance measure EBIT, but is a component of cost of sales.