Share prices on the world’s stock exchanges are influenced by uncertainty about the ongoing development of the European sovereign debt crisis and the world economy, as well as by measures taken by central banks. Daimler’s share price gains 22% over the year. The Board of Management and the Supervisory Board propose a dividend of €2.20 per share. We offer investors and analysts a wide range of investor-relations services.
Volatile year on global stock markets. The world’s stock markets made a positive start to the year 2012. Buoyed by good company profits and key leading indicators pointing towards further expansion of the world economy, share prices increased on a broad front on international stock exchanges. But renewed concern about the European sovereign debt crisis, economic weakening and geopolitical stability caused investors to prefer low-risk assets once again. As a result, prices of government bonds with good credit ratings increased significantly in the months of April and May, while share prices fell substantially.
At the end of June, the positive assessment of statements made at the EU summit in Brussels significantly improved stock-market sentiment and share prices rose again. In late July, statements by ECB President Draghi about supporting the euro additionally boosted investor confidence. There was further stimulus in September from the announcement of new programs for the purchase of government bonds by the ECB and of mortgage-backed securities by the US Federal Reserve (QE3). As a result of this positive stream of news, the major indices rose to new interim highs in September. However, following the presidential election in the United States in November, a number of negative factors gave rise to increasing uncertainty amongst investors. Those factors included the fear that failure to avert the “fiscal cliff” (i.e. a combination of automatic tax increases and spending cuts) would force the USA back into recessions very quickly in 2013, the escalation of violence in the Middle East and the tense situation in Greece. Following the decision of the US Fed to expand the bond-buyback program, many share indices reached new highs for the year in December.
The index of the most important stocks in the euro zone, the Dow Jones Euro STOXX 50, rose by 14% over the full year. Germany’s main index, the DAX, performed even better due to the robust state of the country’s industry and gained 29%. In the United States, the Dow Jones climbed by 7% over the year, and the Japanese Nikkei index closed the year with a gain of 23%. (See table 1.01)
|Development of Daimler’s share price and major indices|
|End of 2012||End of 2011||12/11|
|Daimler’s share price (in euros)||41.32||33.92||+22|
|Dow Jones Euro STOXX 50||2,636||2,317||+14|
|Dow Jones Industrial Average||13,104||12,218||+7|
|Dow Jones STOXX Auto Index||351||259||+36|
Daimler share price gains significantly over the year. Automotive stocks made a very strong start to the year 2012. Our shares profited at the beginning of the year from the anticipated continuation of the positive unit-sales trend from record year 2011, from the prospects of strong business in China and from the dividend increase to €2.20 per share. Daimler’s share price peaked for the year at €48.45 on March 15. After that, the aforementioned weakening of stock markets had a disproportionately strong impact on prices of cyclical stocks such as Daimler’s, so our shares fell significantly until late June. During this phase, our share price reached its low for the year of €33.40 on June 26. In the following six weeks, however, Daimler’s share price increased again significantly and reached a new interim high of €42.17 on August 21, before fears of weakening automobile markets along with our reduced earnings guidance for 2012 and lower expected earnings for 2013 led to gradual price falls. In the last two trading months of the year, our share price was very volatile but profited from the general upward movement of stock markets and closed the year on December 28 at €41.32. Daimler’s market capitalization at the end of the year was €44.1 billion.
Daimler’s share price thus gained 22% over the full year, which is a weaker performance than the Dow Jones STOXX Auto Index (+36%) and the DAX (+29%). Including the distribution of a dividend of €2.20 per share, our shareholders had an increase in value of 28%.
In the first several weeks of the year 2013, Daimler’s share price again climbed significantly.
Dividend of €2.20. (See table 1.02) The Board of Management and the Supervisory Board will propose to the Annual Shareholders’ Meeting to be held on April 10, 2013 that a dividend of €2.20 per share be distributed (prior year: €2.20). The total dividend payout will thus amount to €2,349 million (prior year: €2,346 million).
|Key figures per share|
|In euros||% change|
|Net profit (diluted)||5.71||5.31||+8|
|Equity (December 31)||42.63||38.77||+10|
|Xetra price at year end1||41.32||33.92||+22|
1 Closing prices
Broad shareholder structure. (See graphic 1.07) Daimler continues to have a broad shareholder base of approximately 1.0 million shareholders. The number of shareholders remained stable compared with 2011. The Kuwait Investment Authority gradually increased its shareholding in Daimler AG from 6.9% to 7.6% during the year under review. The Renault-Nissan Alliance continues to hold 3.1% of Daimler’s stock.
Aabar Investments PJS, Abu Dhabi, (Aabar) informed us in October 2012 that its shareholding had fallen below the 3% notification threshold as stipulated by the German Securities Trading Act (WpHG).
BlackRock Inc., New York, which informed us in August 2011 that it held 5.7% of our shares, is still above the 5% notification threshold as stipulated by the German Securities Trading Act (WpHG).
During the year 2012, we received several voting-rights notifications from subsidiaries of BlackRock Inc., each of whose Daimler shares are part of the total investment of BlackRock Inc. According to the most recent notifications in May 2012, the voting rights held by BlackRock Holdco 2 Inc. and by BlackRock Financial Management Inc. exceeded the notification threshold of 5% on May 4, 2012 and amounted to 5.3% as of that date. The Daimler shares held by BlackRock International Holdings Inc. and BR Jersey International Holdings L.P. exceeded the notification threshold of 3% on May 4, 2012 and amounted to 3.30%, and the Daimler shares held by BlackRock Group Limited exceeded the notification threshold of 3% and amounted to 3.13% as of that date.
The Norwegian central bank, Norges Bank, Oslo, informed us in September 2012 that it had exceeded the 3% notification threshold as defined by Section 21 of the WpHG and that its Daimler voting rights amounted to 3.03% as of September 17, 2012.
The shares held by Capital Research and Management Company, Los Angeles are no longer above the 3% notification threshold stipulated by the WpHG. This company informed us in August 2012 that its shareholding had decreased to 2.98%.
On February 1, 2012, an amendment to the German Securities Trading Act (WpHG) took effect, extending the notification obligations of investors upon reaching, exceeding or falling below statutory notification thresholds for significant percentages of voting rights to other (financial) instruments. These extended disclosure obligations led to additional notifications in the year under review, which we have published on the internet.
In total, institutional investors hold 69% of our share capital and private investors hold 20%. Approximately 69% of our equity is in the hands of European investors and approximately 20% is held by US investors. (See graphic 1.08)
The weighting of Daimler shares in major indices increased slightly during 2012 due to the increase in the free float. In the German DAX 30 index, our stock was ranked in sixth position with a weighting of 6.16% at the end of the year (end of 2011: 5.93%). (See table 1.05) In the Dow Jones Euro STOXX 50, Daimler shares were represented with a weighting of 2.58% (end of 2011: 2.26%). Daimler shares are listed in Frankfurt and Stuttgart. Stock-exchange trading in Germany in the year 2012 amounted to 1,421 million shares (2011: 1,728 million). In addition, Daimler shares are increasingly traded on multilateral trading platforms and in the over-the-counter market.
|Key figures for Daimler shares|
|End of 2012||End of 2011||12/11|
|Share capital (in millions of euros)||3,063||3,060||+0|
|Number of shares (in millions)||1,067.6||1,066.3||+0|
|thereof treasury shares||0||0||0|
|Market capitalization (in billions of euros)||44.1||36.2||+22|
|Number of shareholders (in millions)||1.0||1.0||0|
|Weighting in share indices|
|Dow Jones Euro STOXX 50||2.58%||2.26%|
|Long-term credit ratings|
|Standard & Poor’s||A-||BBB+|
|DBRS||A (low)||A (low)|
Good participation in employee share program. In March 2012, eligible members of the workforce were once again able to acquire employee shares. As in the prior year, a price incentive and bonus shares were offered. The participation rate of 17.3% was similar to the good rate in 2011 (19%). The number of participants decreased slightly to 29,900 employees who acquired a total of 534,000 shares (2011: 32,200 employees acquired 610,300 shares).
Large number of visitors to Annual Shareholders’ Meeting. Our Annual Shareholders’ Meeting at the International Congress Center (ICC) in Berlin on April 4, 2012 was attended by approximately 5,700 shareholders (2011: 5,100). With 44.1% of the share capital represented at the Annual Meeting, shareholder representation (attendance plus absentee votes) was higher than in the prior year (43.3%). In voting on the items of the agenda, the shareholders adopted the recommendations of the management with large majorities. Dr. Clemens Börsig was reelected to the Supervisory Board for a further five years. The shareholders are able to exercise their voting rights at the Annual Meeting either in person or through a proxy of their own choice or through a proxy appointed by Daimler who is bound by their voting instructions. For the Annual Shareholders’ Meeting in 2012, we once again offered the possibility of absentee voting. All documents and information on the Annual Meeting are available at daimler.com/ir/am. Daimler utilized the exhibition space at the ICC to demonstrate to the shareholders the Group’s technological expertise and broad spectrum of products, with a focus on the new vehicles in the compact-car segment. The shareholders made good use of this interesting opportunity.
Comprehensive investor relations activities once again. In the year 2012, the Investor Relations department once again provided timely information on the development of the Group to institutional investors, analysts, rating agencies and private investors. Our communication activities for institutional investors and analysts included roadshows in the major financial centers of Europe, North America, Asia and Australia, as well as large numbers of one-on-one meetings. These took place in the context of investor conferences, in particular during the international motor shows in Geneva and Paris. We regularly reported on our quarterly results via conference calls and Internet broadcasts. The presentations can be seen on our website at daimler.com/ir/event/e.
The focus of discussions with analysts and investors was on current earnings expectations for the year 2012, as well as business developments and profitability in the various divisions and regions. For the first time, we additionally carried out three roadshows, featuring speeches and individual discussions with sustainability-oriented investors.
Additional attractive events were two capital-market days. In late March, the Board of Management presented the strategies, main thrusts and key goals of the Mercedes-Benz Cars division on the occasion of opening our new car plant in Kecskemét, Hungary. In late June, the management team of Daimler Trucks provided information on that division’s strategies, main thrusts and goals in the various regions at the truck plant in Mannheim. Audio recordings and presentation slides of the events can be accessed on our Internet website at Investor Relations – Presentations & Events. In Beijing, Daimler participated in two investor conferences in June and November, and explained its strategy and position in the important Chinese market.
Internet presence established on many channels. The broad range of information provided by our Internet website is reaching more and more people. In addition to the established addresses, daimler.com and daimler.mobi, Daimler has further intensified its social-media activities. Besides current information on the Group, our brands and products, technologies and innovations, starting in 2012, the Daimler app offers iPhone® and iPad® users comprehensive and up-to-date information from the area of investor relations.
Daimler received some coveted awards for its online Annual Report 2011. This report under the motto of “Innovation and Growth” was for the first time also published as a touch-optimized tablet version – a new approach in the digital financial reporting of German DAX companies.
Number of online shareholders remains at a high level. Our electronic information and communication service was as popular as ever: Approximately 86,000 shareholders chose to receive their invitations to the Annual Meeting by e-mail instead of by post in 2012. We thank them for helping us to protect the environment and reduce costs. As in previous years, we held a lottery amongst the participants with attractive prizes for the winners. Access and further information on the e-service for shareholders can be found on our website.
|Stock-exchange data for Daimler shares|
German securities identification
|Reuters ticker symbol||DAIGn.DE|
|Bloomberg ticker symbol||DAI:GR|