Financial position

 

The Group’s balance sheet total increased compared with December 31, 2013 from €168.5 billion to €171.7 billion. Daimler Financial Services accounts for €89.7 billion of the balance sheet total (December 31, 2013: €89.4 billion), equivalent to 52% of the Daimler Group’s total assets (December 31, 2013: 53%).

The increase in total assets is primarily due to the high inventories and the increased financial services business. On the liabilities side of the balance sheet, the increase is accompanied by higher provisions and trade payables. Current assets account for 43% of total assets (December 31, 2013: 42%). Current liabilities account for 34% of total equity and liabilities (December 31, 2013: 35%).

C.10

Condensed consolidated statement of financial position      
In millions of euros Mar. 31, 2014 Dec. 31, 2013 % change
       
Assets      
Intangible assets 9,383 9,388 0
Property, plant and equipment 21,933 21,779 +1
Equipment on operating leases and receivables from financial services 79,673 78,930 +1
Investments accounted for using the equity method 1,928 3,432 -44
Inventories 19,066 17,349 10
Trade receivables 7,644 7,803 -2
Cash and cash equivalents 11,819 11,053 +7
Marketable debt securities 6,474 7,066 -8
Other financial assets 6,567 6,241 +5
Other assets 5,767 5,477 +5
Assets held for sale 1,415 - -
Total assets 171,669 168,518 +2
       
Equity and liabilities      
Equity 43,485 43,363 0
Provisions 24,541 23,098 +6
Financing liabilities 77,837 77,738 0
Trade payables 10,601 9,086 +17
Other financial liabilities 8,321 8,276 +1
Other liabilities 6,884 6,957 -1
Total equity and liabilities 171,669 168,518 +2

Intangible assets of €9.4 billion include €7.3 billion of capitalized development costs and €0.7 billion of goodwill, as in the previous year. The Mercedes-Benz Cars division accounts for 67% of the development costs and the Daimler Trucks division accounts for 24%.

Capital expenditure was higher than depreciation, causing property, plant and equipment to rise to €21.9 billion (December 31, 2013: €21.8 billion). In the first quarter of 2014, a total of €1.0 billion was invested primarily at the sites in Germany for the ramp-up of new products, the expansion of production capacities and modernization.

Equipment on operating leases and receivables from financial services increased to €79.7 billion (December 31, 2013: €78.9 billion). This increase was the result of higher new business at Daimler Financial Services. Those assets’ share of total assets of 46% is slightly lower than the prior-year figure (47%).

Investments accounted for using the equity method of €1.9 billion (December 31, 2013: €3.4 billion) mainly comprise the carrying amounts of our investments in the Chinese companies Beijing Benz Automotive Co., Ltd. and BAIC Motor Corporation Ltd. in the area of cars and in Beijing Foton Daimler Automotive Co., Ltd. and Kamaz OAO in the truck business. With the decision of the Board of Management and Supervisory Board of Daimler AG to transfer the 50% equity interest in the joint venture company Rolls-Royce Power Systems Holding GmbH (RRPSH) to the partner Rolls-Royce Holdings plc (Rolls-Royce), this investment is presented separately under “Assets held for sale”.

Inventories increased from €17.3 billion to €19.1 billion, equivalent to 11% of total assets (December 31, 2013:10%). The increase was due in particular to the development of production during the year to date and the launch of new models. This resulted primarily at the Mercedes-Benz Cars und Daimler Trucks divisions in increased stocks of finished goods in Germany and the United States.

Trade receivables decreased by €0.2 billion to €7.6 billion. The Mercedes-Benz Cars division accounts for 44% of these receivables and the Daimler Trucks division accounts for 36%.

Cash and cash equivalents increased compared with the end of the year 2013 by €0.8 billion to €11.8 billion.

Marketable debt securities decreased compared with December 31, 2013 from €7.1 billion to €6.5 billion. Those assets include the debt instruments that are allocated to liquidity, most of which are publicly traded. They generally have an external rating of A or better.

Other financial assets increased by €0.3 billion to €6.6 billion. They mainly comprise investments – in Renault and Nissan for example – and derivative financial instruments, as well as loans and other receivables due from third parties.

Other assets of €5.8 billion (December 31, 2013: €5.5 billion) primarily comprise deferred tax assets and tax refund claims.

The Group’s equity increased compared with December 31, 2013 from €43.4 billion to €43.5 billion. Equity attributable to the shareholders of Daimler AG increased to €42.8 billion (December 31, 2013: €42.7 billion). The net profit of €1.1 billion was almost offset by actuarial losses from defined-benefit pension plans of €0.9 billion, which are accounted for under retained earnings.

The equity ratio was 23.9% for the Group (December 31, 2013: 24.3%) and 41.8% for the industrial business (December 31, 2013: 43.4%). The equity ratios are adjusted for the dividend payment for the year 2013.

Provisions increased to €24.5 billion (December 31, 2013: €23.1 billion), equivalent to 14% of the balance sheet total, which is slightly above the level at the end of 2013. They primarily comprise provisions for pensions and similar obligations of €11.3 billion (December 31, 2013: €9.9 billion) as well as liabilities from product warranties of €4.6 billion (December 31, 2013: €4.7 billion), from personnel and social costs of €3.1 billion (December 31, 2013: €3.2 billion) and from income taxes of €1.6 billion (December 31, 2013: €1.3 billion). The increase in provisions was mainly caused by provisions for pensions and similar obligations and primarily relates to the decrease in discount rates.

Financing liabilities of €77.8 billion were close to the level of year-end 2013 (€77.7 billion). 51% of the financing liabilities are accounted for by bonds, 24% by liabilities to financial institutions, 14% by deposits in the direct banking business, and 7% by liabilities from ABS transactions.

Trade payables increased to €10.6 billion due to changes in production volumes during the year (December 31, 2013: €9.1 billion). The Mercedes-Benz Cars division accounts for 61% of these payables and the Daimler Trucks division accounts for 27%.

Other financial liabilities amounted to €8.3 billion, as at year-end 2013. They mainly consist of liabilities from residual value guarantees, accrued interest expenses on financing liabilities, deposits received, liabilities from wages and salaries, and derivative financial instruments.

Other liabilities of €6.9 billion (December 31, 2013: €7.0 billion) primarily comprise deferred income, tax liabilities and deferred taxes.

Further information on the Group’s assets, equity and liabilities is provided in the consolidated statement of financial position, the consolidated statement of changes in equity and the relevant notes in the Notes to the Interim Consolidated Financial Statements.

The funded status of pension obligations, defined as the difference between the present value of the pension obligations and the fair value of pension plan assets, amounted to minus €9.9 billion at March 31, 2014, compared with minus €8.6 billion at December 31, 2013. At March 31, 2014, the present value of the Group’s pension obligations amounted to €24.7 billion (December 31, 2013: €23.2 billion). The increase resulted primarily from the decrease in discount rates, primarily for the German plans from 3.4% at December 31, 2013 to 3.0% at March 31, 2014. The fair value of plan assets available to finance the pension obligations increased from €14.7 billion to €14.8 billion at March 31, 2014. In total, actuarial losses from defined benefit pension plans, which are recognized in equity under retained earnings, increased by €1.2 billion before taxes.

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