Mercedes 2013 Annual Report Download - page 98

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In addition to reporting on the Daimler Group, in this chapter,
we also describe the development of Daimler AG.
Daimler AG is the parent company of the Daimler Group and
is domiciled in Stuttgart. Its principal business activities
comprise the development, production and distribution of cars,
vans and trucks in Germany and the management of the
Daimler Group.
The vehicles are produced at the domestic plants of Daimler
AG as well as under contract-manufacturing agreements by
domestic and foreign subsidiaries and by producers of special
vehicles. Daimler AG distributes its products through its
own sales network of 32 German sales-and-service centers,
through foreign sales subsidiaries and through third parties.
The annual financial statements of Daimler AG are prepared
in accordance with the German Commercial Code (HGB).
The consolidated financial statements are prepared in accor-
dance with the International Financial Reporting Standards
(IFRS). This results in some differences with regard to recogni-
tion and measurement, primarily relating to intangible assets,
provisions, financial instruments, the leasing business and
deferred taxes.
The main performance indicators for Daimler AG are unit sales,
revenue and net profit.
Profitability
Daimler AG posted profit from ordinary activities of €3.5
billion for 2013 (2012: €5.1 billion). While an operating profit
of €0.8 billion was achieved (2012: €1.4 billion), the development
of earnings was also influenced by a decrease in financial
income of €1.0 billion.
Revenue increased, as forecast in the previous year, due to
the higher unit sales of vehicles and components by €2.8 billion
to €75.5 billion. In the car business, revenue therefore rose by
4% to €55.1 billion. Also with trucks and vans, revenue increased
for this reason by 5% to €20.4 billion.
The earnings achieved by the car business in 2013 were
lower than in the previous year. The development of earnings
was influenced by ongoing growth in unit sales in Western
Europe, the United States and Japan. Our expanded range of
compact cars made a particularly strong contribution. There
were opposing, negative effects from the changed model mix
and expen diture to enhance the products’ attractiveness, as
well as expenditure for new technologies and products, amongst
other factors. Unit sales in the car business increased by 7%
to 1,451,000 vehicles1 in the year under review. Of the various
model series, compact cars were once again extremely
successful in 2013: Their sales increased by 67% to 398,000
units1. The E-Class segment posted sales growth of 7%
to 293,000 units1. Due to the model change and for lifecycle
reasons, unit sales in the S-Class and C-Class segments
were lower than in the previous year.
Earnings from trucks and vans were slightly lower than in
2012. Unit sales of trucks increased by 9% to 105,000 vehicles1.
Sales of vans reached 253,000 units (2012: 249,000)1.
Cost of sales (excluding research and development expenses)
increased by 5.4% to €63.0 billion. The increase in unit sales
and expenses for the enhancement of product attractiveness
and for new technologies and products led to a higher cost
of sales.
Research and development expenses, which are included
in cost of sales, were slightly lower than in the previous year
at €4.6 billion (2012: €4.8 billion); as a proportion of revenue,
they amounted to 6.1% (2012: 6.6%). Research and devel-
opment expenses were primarily related to the renewal of the
product portfolio, especially with regard to the model series
of the C-, E- and S-Class as well as the compact class. In addi-
tion, we are continuously working on new generations of
engines and alternative drive systems. At the end of the year,
approximately 17,000 people were employed in the area
of research and development.
Daimler AG
Condensed version according to the German Commercial Code (HGB)
1 The unit sales of Daimler AG include vehicles invoiced to companies
of the Group which have not yet been sold on to external customers by those
companies. Vehicle sales by production companies of the Daimler Group
are not counted in the unit sales of Daimler AG.