Value added

The Group’s value added increased by €0.5 billion to €4.2 billion; representing a return on net assets of 19.5% (2011: 19.9%). This was once again considerably higher than the minimum required rate of return of 8%. Despite lower earnings by the operating divisions and higher net assets, the Group’s value added surpassed the high level of the prior year. This was primarily due to the lower income tax expense and the sale of 7.5% of the shares of EADS. (See table 3.19 and 3.20)

3.19

Value added
  2012 2011 12/11
In millions of euros     % change
       
Daimler Group 4,185 3,726 +12
       
Mercedes-Benz Cars 2,716 3,775 -28
Daimler Trucks 396 796 -50
Mercedes-Benz Vans 387 690 -44
Daimler Buses -369 23 .
Daimler Financial Services 526 643 -18

3.20

Net assets (average)
  2012 2011 12/11
In millions of euros     % change
       
Mercedes-Benz Cars 13,947 11,814 +18
Daimler Trucks 10,987 9,000 +22
Mercedes-Benz Vans 1,284 1,212 +6
Daimler Buses 1,141 1,161 -2
Daimler Financial Services1 5,890 5,147 +14
Net assets of the divisions 33,249 28,334 +17
Investments accounted for using the equity method2 2,408 2,643 -9
Assets and liabilities from income taxes3 -80 -385 +79
Other reconciliation3 808 834 -3
       
Daimler Group 36,385 31,426 +16
1 Total equity 
2 To the extent not allocated to the segments 
3 Industrial business

Mercedes-Benz Cars’ value added decreased by €1.1 billion to €2.7 billion. Despite higher unit sales, earnings decreased due to the increasingly difficult economic environment as the year progressed as well as expenses related to the enhancement of our products’ attractiveness, capacity expansion and advance expenditure for new technologies and vehicles. There was an additional negative impact from the increase in average net assets by €2.1 billion to €13.9 billion, mainly due to the higher level of fixed assets caused by increased investment for new products.

The decrease in value added at the Daimler Trucks division from €0.8 billion to €0.4 billion was caused on the one hand by the lower earnings mainly due to falling demand in Brazil and Western Europe, and on the other hand by expenses for the current product offensive. Furthermore, net assets increased by €2.0 billion as a result of higher inventories and fixed assets.

The value added of the Mercedes-Benz Vans division also decreased to €0.4 billion. The reason for this development was the fall in EBIT due to lower levels of unit sales, especially caused by the significantly weaker market in Western Europe. There were negative effects also in connection with the impairment of the Chinese joint venture Fujian Benz Automotive Corporation and expenses for the market launch of the new Citan city van and of the new Sprinter in Argentina. Average net assets were almost unchanged compared with the prior year.

At the Daimler Buses division, value added decreased from plus €23 million to minus €369 million. This development reflects the negative earnings due to lower unit sales of bus chassis, especially in Latin America, and the difficult market situation in Western Europe. There were additional effects from expenses connected with the repositioning of the European and North American business systems.

The value added of the Daimler Financial Services division decreased by €0.1 billion to €0.5 billion. Return on equity was 21.9% (2011: 25.5%). This development was primarily the result of the increase in average equity by €0.7 billion to €5.9 billion due to the higher contract volume. Earnings were at the level of the prior year.

Table 3.22 shows the derivation of net assets from the consolidated statement of financial position.

3.22

Net assets of the Daimler Group at year-end
  2012 2011 12/11
In millions of euros     % change
       
Net assets of the industrial business      
Intangible assets 8,761 8,174 +7
Property, plant and equipment 20,546 19,129 +7
Leased assets 12,163 10,849 +12
Inventories 17,075 16,575 +3
Trade receivables 6,864 7,580 -9
Less provisions for other risks -11,316 -11,967 +5
Less trade payables -8,515 -9,233 +8
Less other assets and liabilities -14,464 -13,954 -4
Assets and liabilities from income taxes 573 24 .
Total equity of
Daimler Financial Services

6,153

5,373

+15
       
Net assets 37,840 32,550 +16