Financial position, liquidity and capital resources

Compared with December 31, 2011, the balance sheet total increased from €78.7 billion to €83.4 billion.

Non-current assets increased by €2.1 billion to €42.8 billion during 2012. This was primarily the result of investments in subsidiaries and associated companies: In 2012, Rolls-Royce completed the agreed contribution of the piston-engine business of the Bergen brand to Engine Holding GmbH. In return, Daimler AG made a cash contribution into the capital reserve of Engine Holding GmbH. Furthermore, a capital contribution was made to the new truck joint venture in China. Capital expenditure on property, plant and equipment (approximately €2.8 billion excluding leased assets) mainly constituted investments for the production of the new compact class, the new C- and S-Class, as well as investments in engine and transmission projects.

Inventories of €6.6 billion were slightly higher than a year earlier (2011: €6.3 billion).

Receivables, securities and other assets decreased compared with December 31, 2011 by €0.1 billion to €26.7 billion. This was primarily caused by receivables from subsidiaries (minus €0.8 billion) and receivables from associated companies (minus €0.2 billion). Securities increased compared with the end of 2011 by €0.9 billion. Cash and cash equivalents increased by €2.3 billion to €7.1 billion.

Gross liquidity – defined as cash and cash equivalents and other marketable securities – of €9.6 billion was significantly higher than a year earlier (2011: €6.5 billion).

Cash provided by operating activities amounted to €5.4 billion in 2012 (2011: €4.0 billion) and was mainly affected by the substantial net income. The main opposing effects were the higher tax payments.

3.41

Condensed statement of income of Daimler AG
  2012 2011
In millions of euros    
     
Revenue 72,727 69,486
Cost of sales (including R&D expenses) -64,600 -59,562
Selling expenses -5,883 -5,655
General administrative expenses -2,600 -2,443
Other operating income/expense, net 1,755 1,309
Operating profit 1,399 3,135
Financial income 3,710 2,323
Income from ordinary activities 5,109 5,458
Income taxes (benefit, 2011: expense) 366 -701
Net income 5,475 4,757
     
Transfer to retained earnings -2,737 -2,378
     
Distributable profit 2,738 2,379

The cash flow from investing activities resulted in a net cash outflow of €5.5 billion in 2012 (2011: €4.4 billion). This was primarily the result of investment in property, plant and equipment and financial assets.

The cash flow from financing activities resulted in a net cash inflow of €2.4 billion in 2012 (2011: net cash outflow of €0.5 billion). The payment of the dividend for the year 2011 accounts for a cash outflow of €2.3 billion. On the other hand, an increase in financing liabilities led to a cash inflow.

Equity increased by €3.2 billion compared with December 31, 2011 to €34.3 billion. This change primarily resulted from the net income for 2012, of which, pursuant to Section 58 Subsection 2 of the German Stock Corporation Act (AktG), €2.7 billion was transferred to retained earnings. The equity ratio at December 31, 2012 was 41.1% (2011: 39.5%).

Provisions decreased compared with December 31, 2011 by €2.2 billion to €12.3 billion. This was primarily due to the decrease in provisions for taxes in connection with the tax assessment of previous years.

Liabilities increased by €3.9 billion to €36.4 billion. This change was mainly caused by financing liabilities (plus €6.0 billion). There was an opposing effect primarily from the decrease in liabilities to subsidiaries (minus €1.8 billion).

3.42

Balance sheet structure of Daimler AG
  Dec. 31, 2012 Dec. 31, 2011
In millions of euros    
     
Assets    
Non-current assets 42,763 40,623
Inventories 6,612 6,331
Receivables, securities and other assets 26,736 26,820
Cash and cash equivalents 7,089 4,827
Current assets 40,437 37,978
Prepaid expenses 177 97
  83,377 78,698
     
Equity and liabilities    
Share capital 3,063 3,060
(conditional capital €600 million)    
Capital reserve 11,390 11,351
Retained earnings 17,061 14,298
Distributable profit 2,738 2,379
Equity 34,252 31,088
Provisions for pensions and similar obligations 3,097 3,313
Other provisions 9,205 11,179
Provisions 12,302 14,492
Trade payables 5,004 5,175
Other liabilities 31,383 27,361
Liabilities 36,387 32,536
Deferred income 436 582
  83,377 78,698