Mercedes 2013 Annual Report Download - page 92

96
Investment in property, plant and equipment
Renewed increase in investment. In the context of our global
growth strategy, we want to make good use of the opportunities
presented by international automotive markets. This requires
substantial investment in new products and new technologies
as well as in the expansion of our worldwide production net-
work. In 2013, we therefore once again increased our investment
in property, plant and equipment to €5.0 billion (2012: €4.8
billion) and thus reached the magnitude announced in Annual
Report 2012. Of that capital expenditure, €3.2 billion was
invested in Germany (2012: €3.3 billion). As of December 31,
2013, no material financial obligations exist in connection with
future investment in property, plant and equipment.
At Mercedes-Benz Cars, investment in property, plant and
equipment increased by 6% to €3.7 billion in 2013. The most
important projects included the production of the new S-Class
and preparations for the new C-Class, which will be produced
in Bremen as well as Tuscaloosa (United States), Beijing (China)
and East London (South Africa) as of 2014. We also made
substantial investments in the modernization and expansion
of transmission production in Untertürkheim and in the
expansion of our production capacities in the United States.
The main areas of investment at Daimler Trucks were for
the Arocs (the new heavy-duty construction-site truck) as well
as various projects for the global standardization of engines
and other main components. We also invested in the expansion
of our production capacities in Brazil and in the new Bharat-
Benz plant in India. Total investment in property, plant and equip-
ment at Daimler Trucks amounted to €0.8 billion (2012: €1.0
billion). At the Mercedes-Benz Vans division, the focus of invest-
ment was on the successor generation of the Vito goods
van and the Viano passenger van. We also invested in the new
generation of the Sprinter and the production of the Sprinter
Classic by our partner GAZ in Russia. The main investments
at Daimler Buses in 2013 were in new products and the
modernization of production facilities.
In addition to capital expenditure on property, plant and
equipment, we also invested substantial amounts in associates
and joint ventures in 2013. Those investments include the
acquisition of a 12% equity interest in our Chinese partner BAIC
Motor and the investments in our Chinese joint ventures.
We also capitalized development costs of €1.3 billion in 2013
(2012: €1.5 billion); this is presented under intangible assets.
E see page 106
Refinancing
The funds raised by Daimler in the year 2013 primarily served
to refinance the leasing and sales-financing business. For
that purpose, Daimler made use of a broad spectrum of various
financing instruments in various currencies and markets.
They include bank credit, commercial paper in the money market,
bonds with medium and long maturities, customer deposits
at Mercedes-Benz Bank and the securitization of receivables
from customers in the financial services business (asset
backed securities, ABS).
Various issue programs are available for raising longer-term
funds in the capital market. They include the Euro Medium
Term Note program (EMTN) with a total volume of €35 billion,
under which Daimler AG and several subsidiaries can issue
bonds in various currencies. Other local capital-market programs
exist, significantly smaller than the EMTN program however,
in markets such as South Africa, Mexico, Thailand and Argentina.
Capital-market programs allow flexible, repeated access
to the capital markets.
4
3
2
1
0
2009 2010 2011 2012 2013
C.29
5
Investment in property, plant and equipment
In billions of euros
C.30
Investment in property, plant and equipment by division
2013 2012 13/12
In millions of euros % change
Daimler Group
in % of revenue
4,975
4.2
4,827
4.2
+3
Mercedes-Benz Cars
in % of revenue
3,710
5.8
3,495
5.7
+6
Daimler Trucks
in % of revenue
839
2.7
989
3.2
-15
Mercedes-Benz Vans
in % of revenue
288
3.1
223
2.5
+29
Daimler Buses
in % of revenue
76
1.9
82
2.1
-7
Daimler Financial Services
in % of revenue
19
0.1
23
0.2
-17