Financial Position

The balance sheet total increased compared with December 31, 2014 from €189.6 billion to €217.2 billion; adjusted for the effects of currency translation, the increase amounted to €23.2 billion. Daimler Financial Services accounts for €123.9 billion of the balance sheet total (2014: €105.5 billion); this is equivalent to 57 % of the Daimler Group’s total assets (2014: 56 %).

The increase in total assets is primarily due to the growth of the financial services business and higher inventories. On the liabilities side of the balance sheet, there were increases in particular in financing liabilities and shareholders’ equity. Current assets account for 42 % of the balance sheet total, which is above the prior-year level of 41 %. Current liabilities account for 35 % of the balance sheet total, as at the end of previous year.

Intangible assets of €10.1 billion include €7.8 billion of capitalized development costs (2014: €7.2 billion) and, as in the previous year, €0.7 billion of goodwill. Mercedes-Benz Cars accounts for 73 % (2014: 69 %) and Daimler Trucks for 18 % (2014: 22 %) of the develoment costs. Capitalized development costs amounted to €1.8 billion (2014: €1.1 billion), and account for 27 % of the Group’s total research and development expenditure (2014: 20 %) (See Sustainability)

Property, plant and equipment (See Liquidity and Capital Resources) rose to €24.3 billion (2014: €23.2 billion). In 2015, €5.1 billion was invested worldwide (2014: €4.8 billion), in particular at our production and assembly sites for new products and technologies and for the expansion and modernization of production facilities. The sites in Germany accounted for €3.3 billion of the capital expenditure (2014: €3.1 billion).

B.34 Consolidated statement of financial position

  Dec. 31, 2015 Dec. 31, 2014
In millions of euros     % change
Intangible assets 10,069 9,367 +7
Property, plant and equipment 24,322 23,182 +5
Equipment on operating leases and receivables from financial services 112,456 94,729 +19
Equity-method investments 3,633 2,294 +58
Inventories 23,760 20,864 +14
Trade receivables 9,054 8,634 +5
Cash and cash equivalents 9,936 9,667 +3
Marketable debt securities 8,273 6,634 +25
Other financial assets 7,454 5,987 +25
Other assets 8,209 8,277 -1
Total assets 217,166 189,635 +15
Equity and liabilities      
Equity 54,624 44,584 +23
Provisions 26,145 28,393 -8
Financing liabilities 101,142 86,689 +17
Trade payables 10,548 10,178 +4
Other financial liabilities 12,360 10,706 +15
Other liabilities 12,347 9,085 +36
Total equity and liabilities 217,166 189,635 +15

Equipment on operating leases and receivables from financial services increased to a total of €112.5 billion (2014: €94.7 billion). The increase was primarily caused by the higher level of new business at Daimler Financial Services. In addition, there was an increase due to the effects of currency translation in an amount of €3.3 billion. The growth reflects the successful course of business, especially in the United States. Above-average growth was achieved in the sales-financing business also in China and other Asian countries, as well as in Turkey. The leasing and sales-financing business as a proportion of total assets of 52 % is above the prior-year level (50 %).

B.35 Balance sheet structure Daimler Group

Equity-method investments of €3.6 billion (2014: €2.3 billion) primarily comprise the carrying amounts of our equity interests in Beijing Benz Automotive Co. Ltd. (BBAC), BAIC Motor Corporation Ltd., Beijing Foton Daimler Automotive Co. Ltd. and Kamaz PAO. In addition, the investment in the digital mapping provider HERE (There Holding B.V.) in December 2015 has been recognized. The increase was also caused by the positive proportionate share of the profit and the capital increase at BBAC.

Inventories increased from €20.9 billion to €23.8 billion, equivalent to 11 % of total assets, as in the prior year. Adjusted for currency effects, there was an increase of €2.6 billion, partially due to the launch of new models and a larger number of model versions, as well as the expected positive development of unit sales. This resulted primarily at the Mercedes-Benz Cars and Daimler Trucks divisions in increased stocks of finished and unfinished goods in Germany and the United States.

Trade receivables increased by €0.4 billion to €9.1 billion. The Mercedes-Benz Cars division accounts for 45 % of these receivables and the Daimler Trucks division accounts for 32 %.

Cash and cash equivalents increased compared with the end of 2014 by €0.3 billion to €9.9 billion.

Marketable debt securities increased compared with December 31, 2014 from €6.6 billion to €8.3 billion. Those assets include debt instruments that are allocated to liquidity, most of which are traded in active markets. They generally have an external rating of A or better.

Other financial assets increased from €6.0 billion to €7.5 billion. They primarily consist of the investments in Renault and Nissan and derivative financial instruments, as well as loans and other receivables due from third parties. Amongst other things, the increase was caused by higher stock-market prices of Renault and Nissan shares.

Other assets of €8.2 billion (2014: €8.3 billion) primarily comprise deferred tax assets and tax refund claims.

The Group’s equity increased compared with December 31, 2014 from €44.6 billion to €54.6 billion. Equity attributable to the shareholders of Daimler AG increased to €53.6 billion (2014: €43.7 billion). The increase in equity was the result of the net profit of €8.7 billion (See Business development), actuarial gains from defined benefit pension plans recognized in retained earnings of €2.7 billion, positive currency translation effects of €1.4 billion and a gain of €0.7 billion on the measurement of financial assets available for sale. There were negative effects on equity, however, from the distribution of the dividend for financial year 2014 to the shareholders of Daimler AG ( €2.6 billion) and the remeasurement of derivative financial instruments ( €0.6 billion). Compared to the 15 % increase in the balance sheet total, there was a disproportionately high increase in equity of 23 %. Due to the effects described above, the Group’s equity ratio of 23.6 % was above the level at the end of 2014 (22.1 %); the equity ratio for the industrial business was 44.2 % (2014: 40.8 %). It is necessary to consider that the equity ratios at the end of 2014 and 2015 are adjusted for the paid and proposed dividend payments.

Provisions decreased to €26.1 billion (2014: €28.4 billion); as a proportion of the balance sheet total, they amounted to 12 % (2014: 15 %). They primarily comprise provisions for pensions and similar obligations of €8.7 billion (2014: €12.8 billion), which mainly consist of the difference between the present value of defined benefit pension obligations of €27.6 billion (2014: €30.1 billion) and the fair value of the pension plan assets applied to finance those obligations of €20.2 billion (2014: €18.6 billion). The rise in discount rates, especially for German plans from 1.9 % at December 31, 2014 to 2.6 % at December 31, 2015, led to a decrease in the present value of the defined benefit pension obligations. This effect was strengthened by the extraordinary contribution of €1.2 billion to German and US pension plan assets. Provisions also relate to liabilities from income taxes of €1.7 billion (2014: €1.6 billion), from product warranties of €5.7 billion (2014: €5.0 billion) and from personnel and social costs of €4.4 billion (2014: €3.9 billion), as well as other provisions of €5.8 billion (2014: €5.1 billion).

Financing liabilities of €101.1 billion were above the level of December 31, 2014 ( €86.7 billion). As well as currency effects of €1.4 billion, the increase primarily reflects the refinancing of the growing leasing and sales-financing business. 51 % of the financing liabilities are accounted for by bonds, 27 % by liabilities to financial institutions, 10 % by deposits in the direct banking business and 7 % by liabilities from ABS transactions.

Trade payables increased to €10.5 billion due to the higher volume of business (2014: €10.2 billion). The Mercedes-Benz Cars division accounts for 61 % of those payables and the Daimler Trucks division accounts for 27 %.

Other financial liabilities of €12.4 billion (2014: €10.7 billion) mainly consist of liabilities from derivative financial instruments, residual value guarantees, accrued interest on financing liabilities, deposits received and liabilities from wages and salaries. The increase of €1.2 billion after adjusting for exchange-rate effects is due to derivative financial instruments, among other things.

Other liabilities of €12.3 billion (2014: €9.1 billion) primarily comprise deferred income, tax liabilities and deferred taxes. The increase mainly results from the increase in deferred income of €1.7 billion, which resulted from a higher volume of service and maintenance contracts.

Further information on the assets presented in the statement of financial position and on the Group’s equity and liabilities is provided in the Consolidated Statement of Financial Position Changes in Equity, the Consolidated Statement of Changes in Equity and the related notes in the Notes to the Consolidated Financial Statements.

Daimler AG
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