Mercedes 2013 Annual Report Download - page 99

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C | Combined Management Report | Daimler AG
Selling expenses increased by €0.1 billion to €6.0 billion,
mainly due to higher expenses for personnel, outgoing shipping
and marketing. In relation to revenue, selling expenses
decreased from 8.1% to 8.0%.
General administrative expenses of €2.6 billion were
at the prior-year level (2012: €2.6 billion).
Other operating income, net amounted to €1.5 billion
(2012: €1.8 billion). The change compared with the prior year
was mainly the result of reclassifying expenses of €0.2 billion
for top-up amounts (“Aufstockungsbeträge”) for partial retire-
ment obligations; in the previous year, those expenses
were presented under functional costs.
Financial income decreased by €1.0 billion to €2.7 billion,
mainly due to lower net income from investments in subsidiaries
and associated companies and lower net interest income.
The decrease primarily reflects the lower special items than in
the previous year in connection with the sale of EADS shares.
In addition, the financial result was influenced by lower income
from the special purpose assets reserved for pensions and
similar obligations and by a higher interest portion of retirement
benefit obligations.
The income tax benefit for 2013 amounts to €0.2 billion
(2012: €0.4 billion). This includes tax benefits relating
to the tax assessment of previous years. Income taxes were
additionally influenced by the amount and composition
of profits before income taxes. No tax was payable on a large
proportion of financial income in 2013 and 2012.
Net profit decreased, as forecast in the previous year,
from €5.5 billion to €3.7 billion. This development is
due partially to the lower operating profit, but in particular
to the lower financial income.
The economic situation of Daimler AG primarily results
from the business operations of Daimler AG and its subsidiaries.
Daimler AG participates in the operating results of the subsid-
iaries through distributions. The economic situation of Daimler AG
is therefore fundamentally the same as that of the Daimler
Group, which is described in the chapter “Overall Assessment
of the Economic Situation”. E see pages 117 f
Financial position, liquidity and capital resources
Compared with December 31, 2012, the balance sheet total
increased from €83.4 billion to €85.3 billion.
Non-current assets increased by €2.0 billion to €44.7 billion
during 2013, due to the higher level of financial assets,
property, plant and equipment as well as increased intangible
assets. Investments in property plant and equipment (approxi-
mately €2.8 billion excluding leased assets) mainly constituted
investments for the production of the new C- and S-Class,
the compact class and investments in engine and transmission
projects.
Inventories of €6.7 billion were close to the prior-year level
(2012: €6.6 billion).
Receivables, securities and other assets increased com-
pared with December 31, 2012 by €2.1 billion to €28.9 billion.
The main cause of the development was the increase of
€2.1 billion in securities. Cash and cash equivalents decreased
by €2.4 billion to €4.7 billion.
Gross liquidity – defined as cash and cash equivalents
and other marketable securities – of €9.3 billion was slightly
lower than a year earlier (2012: €9.6 billion).
Cash provided by operating activities amounted to €6.0
billion in 2013 (2012: €5.4 billion). Lower net profit than in the
previous year was more than offset by lower tax payments
and higher trade payables. The development of trade payables
is connected with the expansion of business and partially
reflects invoicing factors.
C.36
Condensed statement of income of Daimler AG
2013 2012
In millions of euros
Revenue 75,531 72,727
Cost of sales (including R&D expenses) -67,579 -64,600
Selling expenses -6,032 -5,883
General administrative expenses -2,594 -2,600
Other operating income, net 1,497 1,755
Operating profit 823 1,399
Financial income 2,687 3,710
Profit from ordinary activities 3,510 5,109
Income tax benefit 203 366
Net profit 3,713 5,475
Transfer to retained earnings -1,306 -2,737
Distributable profit 2,407 2,738