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Conformed Copy
[Form 10]
(Translation)
SEMI-ANNUAL REPORT
Financial Year (2014)
From: January 1, 2014
To: June 30, 2014
* This document is a hard copy of the electronic data of the Semi-Annual Report that was
filed on September 25, 2014 through the EDINET system as provided by Article 27-30-2 of the
Financial Instruments and Exchange Act of Japan with the table of contents and the page count
appended thereto.
DAIMLER AG
(E05854)
(The Japanese original of the Semi-Annual Report was filed electronically through the
EDINET system. This English translation has been prepared solely for reference purposes and
does not have any binding force.)
(Translation)
[Cover Page]
Document Name: Semi-Annual Report
Attention: The Director General of the Kanto
Local Finance Bureau
Date of Filing: September 25, 2014
Interim Financial Year: From January 1, 2014 to June 30, 2014
Corporate Name: Daimler AG
Titles and Names of Dr. Dieter Zetsche
Representatives: Chairman of the Board of Management,
Head of Mercedes-Benz Cars
Bodo Uebber
Member of the Board of Management
responsible for Finance & Controlling,
Daimler Financial Services
Address of Head Office: Mercedesstrasse 137
70327 Stuttgart
Federal Republic of Germany
Name of the Yasutaka Nishikori
Attorney-in-fact: (Attorney-at-law)
Address of the Attorney- Nishimura & Asahi
in-fact: Ark Mori Bldg,
12-32, Akasaka 1-chome
Minato-ku, Tokyo, Japan
Telephone Number: (03)-5562-8500
The Name of Person Yasutaka Nishikori
to Contact: (Attorney-at-law)
Susumu Tanizawa
(Attorney-at-law)
Takahiro Sato
(Attorney-at-law)
Place to Contact: Nishimura & Asahi
Ark Mori Bldg. 12-32, Akasaka 1-chome
Minato-ku, Tokyo, Japan
Telephone Number: (03)-5562-8500
Place at which Copies of this
Semi-Annual Report are made
available for Public Inspection: Not applicable
(Number of Pages including front pages: 90 in Japanese)
Table of Contents
Japanese English
original translation
PART 1. INFORMATION CONCERNING THE COMPANY 2 1
I. Outline of Legal and other Systems in the Home Country 3 1
II. Outline of the Company 4 2
1. Changes in Major Business Indices, etc. 4 2
2. Contents of Business 5 3
3. State of the Related Companies 6 3
4. Employees 7 4
III. Conditions of Business 8 6
1. Outline of Business Results, etc. 8 6
2. Conditions of Production, Order and Sales 9 7
3. Problems which must be Resolved 11 8
4. Risk Factors Relating to Business 12 9
5. Material Contracts Relating to Business 12 9
6. Research and Development 13 10
7. Analysis of Financial Condition, Results of Operations
and Cash Flow Status 14 11
a) Daimler Group 14 11
b) Mercedes-Benz Cars 25 20
c) Daimler Trucks 26 21
d) Mercedes-Benz Vans 28 22
e) Daimler Buses 29 23
f) Daimler Financial Services 30 24
g) Reconciliation 31 25
IV. Conditions of Facilities 32 26
1. Conditions of Principal Facilities 32 26
2. Plans for Installation or Removal of Facilities, etc. 32 26
V. Conditions of the Company 34 28
1. Information Concerning Shares, etc. 34 28
2. Trends in Share Prices 37 32
3. Directors and Officers 38 32
VI. Conditions of Accounting (CPA’s responsibility) 39 34
VII. Trends in the Foreign Exchange Rate 89 34
VIII. Reference Information 89 34
PART 2. INFORMATION REGARDING GUARANTORS, ETC.
OF ISSUER 90 35
Notes:
(1) Unless otherwise specified, in this report, “we,” “us,” “our,” “Daimler,” the “Daimler Group” or the “Group” refers
to Daimler AG and its consolidated subsidiaries, or any one or more of them, as the context may require. “Germany”
means the Federal Republic of Germany.
(2) In this Semi-Annual Report, unless otherwise noted, “Euro” refers to Euro (€). For the convenience of the Japanese
reader, conversion into Japanese Yen has been made at the exchange rate of Euro 1.00 = ¥ 136.76 (the means of the
Telegraphic Transfer Spot Selling and Buying Exchange Rates of The Bank of Tokyo-Mitsubishi UFJ, Ltd. on
August 29, 2014).
(3) Where figures in tables in this Semi-Annual Report have been rounded, the totals may not necessarily agree with the
sum of the figures.
(4) Unless otherwise indicated, “shares” in this document refer to ordinary registered shares of the Company.
(5) This document contains forward-looking statements that reflect our current views about future events. The words
“anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,”
“should” and similar expressions are used to identify forward-looking statements. These statements are subject to
many risks and uncertainties, including:
an adverse development of global economic conditions, in particular a decline of demand in our most important
markets;
a worsening of the sovereign-debt crisis in the euro zone;
an increase in political tension in Eastern Europe;
a deterioration of our refinancing possibilities on the credit and financial markets;
events of force majeure including natural disasters, acts of terrorism, political unrest, industrial accidents and
their effects on our sales, purchasing, production or financial services activities;
changes in currency exchange rates;
a shift in consumer preferences towards smaller, lower-margin vehicles;
a possible lack of acceptance of our products or services which limits our ability to achieve prices and
adequately utilize our production capacities;
price increases for fuel or raw materials;
disruption of production due to shortages of materials, labor strikes, or supplier insolvencies;
a decline in resale prices of used vehicles;
the effective implementation of cost-reduction and efficiency-optimization measures;
the business outlook for companies in which we hold a significant equity interest;
the successful implementation of strategic cooperations and joint ventures;
changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel
economy and safety;
the resolution of pending government investigations and the conclusion of pending or threatened future legal
proceedings; and
other risks and uncertainties, some of which we describe under the heading “4. Risk Factors Relating to
Business” in “III. Conditions of Business.”
If any of these risks and uncertainties materializes, or if the assumptions underlying any of our forward-looking
statements prove to be incorrect, the actual results may be materially different from those we express or imply by
such statements. We do not intend or assume any obligation to update these forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is made.
- 1 -
PART 1. INFORMATION CONCERNING THE COMPANY
I. Outline of Legal and other Systems in the Home Country
There has been no material change in the Legal Corporate System of the Federal
Republic of Germany or the Corporate System as provided for by Law and in the
Articles of Incorporation of the Company or the Foreign Exchange Control System
during the six-month period ended June 30, 2014 as well as since the filing of the
Securities Report on June 17, 2014.
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II. Outline of the Company
1. Changes in Major Business Indices, etc.
The following table sets out the development of key figures of the Daimler Group. A
detailed analysis of the business results is provided under “7. Analysis of Financial
Condition, Results of Operations and Cash Flow Status” in section “III. Conditions of
Business.”
Daimler Group 1st half ended June 30,
(unaudited) Year ended Dec. 31,
(audited)
(amounts in millions of €) 2014 2013 2012 2013 2012
Revenue 61,001 55,794 55,895 117,982 114,297
Western Europe 20,908 19,198 19,589 41,123 39,377
of which Germany 10,090 9,292 9,888 20,227 19,722
United States 15,282 13,747 12,724 28,597 27,233
China 6,504 4,971 6,077 10,705 10,782
Other markets 18,307 17,878 17,505 37,557 36,905
Employees (at period-end) 280,829 276,044 273,749 274,616 275,087
Investment in property, plant and
equipment
2,088
2,095
2,352
4,975
4,827
Research and development
expenditure1
2,667
2,731
2,761
5,489
5,644
thereof: capitalized
development costs
518
674
687
1,284
1,465
EBIT2 4,882 6,159 4,366 10,815 8,820
Net profit2 3,282 5,147 2,990 8,720 6,830
Earnings per share2 (in €)
Basic 2.93 3.16 2.65 6.40 6.02
Diluted 2.93 3.16 2.65 6.40 6.02
Total comprehensive income2 1,934 5,672 2,997 9,153 4,728
Cash provided by operating activities 1,641 1,570 39 3,285 (1,100)
Cash used for investing activities (1,758) (2,716) (3,915) (6,829) (8,864)
Cash provided by/used for financing
activities
(163)
1,807
6,355
3,855
11,506
Cash and cash equivalents
At beginning of period
11,053
10,996
9,576
10,996
9,576
At end of period 10,794 11,607 12,094 11,053 10,996
1) The figures for 2013 have been adjusted due to a reclassification within functional expenses. Additional
information on the adjustments is provided in Note 1 of the Notes to the Unaudited Interim Consolidated
Financial Statements.
2) The figures for 2012 have been adjusted, primarily for effects arising from application of the amended version
of IAS 19.
- 3 -
Daimler Group As of June 30,
(unaudited) As of December 31,
(audited)
(amounts in millions of €) 2014 2013 2012 2013 2012
Equity attributable to shareholders of
Daimler AG1
42,042
39,452
36,151
42,680
37,905
Non-controlling interest1 678 620 1,417 683 1,425
Total equity1 42,720 40,072 37,568 43,363 39,330
Total assets1 176,015 167,288 159,205 168,518 163,062
1) The figures for 2012 have been adjusted, primarily for effects arising from application of the amended version
of IAS 19.
2. Contents of Business (to and as of the end of August 2014)
Daimler AG is the ultimate parent company of the Daimler Group. The Group
develops, manufactures, distributes and sells a wide range of automotive products,
mainly passenger cars, trucks, vans and buses. It also provides financial and other
services relating to its automotive businesses.
The Group reports the following five segments:
Mercedes-Benz Cars
Daimler Trucks
Mercedes-Benz Vans
Daimler Buses
Daimler Financial Services
The reconciliation includes corporate items for which headquarters are responsible.
Transactions between the segments are eliminated in the context of consolidation and the
eliminated amounts are included in the reconciliation.
For information on earnings of the five segments and the reconciliation, please refer to
the discussion of Group EBIT in “III. Conditions of Business, 7. Analysis of Financial
Condition, Results of Operations and Cash Flow Status, a) Daimler Group.”
3. State of the Related Companies
The following material changes regarding the Related Companies occurred during the
six-month period ended June 30, 2014:
In March 2014, Daimler decided to sell its 50% equity interest in the joint venture
Rolls-Royce Power Systems Holding (RRPSH) to its partner Rolls-Royce Holdings
plc. (Rolls-Royce). Daimler therefore used a put option on its stake in RRPSH that was
agreed upon in 2011. The carrying amount of the equity interest of €1,415 million,
which is allocated to the Daimler Trucks segment, was reclassified to “Assets held for
sale.” Measurement using the equity method was ended. In the middle of April 2014,
the sale price of €2.43 billion was agreed upon; the transaction has been closed in
August 2014.
Since the Annual Shareholders’ Meeting of Tesla Motors, Inc. (Tesla) on June 3, 2014,
no representative of Daimler is a member of the Board of Directors. Therefore,
Daimler’s significant influence on Tesla ended on the day of the Annual Shareholders’
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Meeting and the equity interest is recognized as a “financial asset available for sale” at
fair value based on the stock-market price since then. The difference between the
first-time fair value measurement on June 3, 2014 using the stock-market price and the
carrying amount measured by applying the equity method resulted in a non-cash gain of
€718 million affecting Group EBIT in the second quarter of 2014. The carrying
amount, which was previously assigned to the Mercedes-Benz Cars segment and the
remeasurement gain are reallocated as corporate items in the reconciliation of total
segments’ figures to Group figures in the segment reporting.
In March 2014, Daimler acquired 50.1% of the shares in Li-Tec Battery GmbH, which
were previously held by Evonik Degussa GmbH, and therefore became the sole owner
of the company. The effects on the consolidated financial statements are not material.
Furthermore, the Group’s investment in Fujian Benz Automotive Co., Ltd. (FBAC) is
included in other investments and is allocated to the Mercedes-Benz Vans segment. In
2012, an impairment loss was recorded on the investment in FBAC. In the second
quarter of 2014, the impairment was reversed based on improved profit expectations,
leading to a gain of €61 million.
Shenzen BYD Daimler New Technology Co. Ltd. (SBDNT) is another of the Group’s
joint ventures and is allocated to the Mercedes-Benz Cars segment. A capital increase
of €34 million took place in the first quarter of 2014. On April 4, 2014, Daimler
provided a joint and separate liability guarantee to external banks which provided a
syndicate loan to SBDNT. The guarantee provided by Daimler amounts to RMB 750
million (approximately €90 million) and equates to the Group’s share in the loan
granted to SBDNT based on its 50% equity interest in SBDNT.
On June 27, 2014, Renault-Nissan and Daimler AG announced an agreement on the
joint development of premium compact vehicles and a shared production facility in
Mexico. A new 50:50 joint venture is responsible for the construction and operation of
the new plant in Aguascalientes in north-central Mexico. The new plant will be
immediately adjacent to an existing Nissan plant and will have an annual capacity of
300,000 vehicles after the ramp-up phase. The start of production with Infiniti models
is planned for the year 2017. The production of Mercedes-Benz brand vehicles will
follow as of 2018.
4. Employees
At the end of the first half of 2014, Daimler employed 280,829 people worldwide (end
of 2013: 274,616). Of that total, 170,649 were employed in Germany (end of 2013:
167,447).
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The table below provides the number of employees by segments as of June 30, 2014:
Number of Employees As of
June 30,
As of
December 31,
2014 2013
Mercedes-Benz Cars 129,651 96,895
Daimler Trucks 83,960 79,020
Mercedes-Benz Vans 16,276 14,838
Daimler Buses 16,214 16,603
Daimler Financial Services 8,488 8,107
Group Functions & Services1 26,240 59,153
Daimler Group 280,829 274,616
1) The figure as of December 31, 2013 includes the Group’s corporate functions and sales & marketing
organization.
Due to reorganization in the context of the Customer Dedication initiative, the numbers
of employees previously reported under “Sales & Marketing Organization” are
included in the respective divisions as of 2014. This does not apply, however, to the
Group’s own sales and service centers in Germany and the logistics center in
Germersheim, Germany, whose employees are included under “Group Functions &
Services” as of 2014.
- 6 -
III. Conditions of Business
1. Outline of Business Results, etc.
The following table provides an overview of the profit and loss account for the first half of
2014:
Unaudited Consolidated Statement of Income (In millions of €, except per share amounts)
1st half ended June 30,
2014 2013
Revenue 61,001 55,794
Cost of sales1 (47,749) (44,089)
Gross profit1 13,252 11,705
Selling expenses1 (5,487) (5,473)
General administrative expenses1 (1,558) (1,524)
Research and non-capitalized development costs1 (2,149) (2,057)
Other operating income 682 577
Other operating expense (239) (176)
Share of profit from investments accounted for using the
equity method, net
850
3,325
Other financial expense, net (473) (218)
Interest income 64 105
Interest expense (357) (446)
Profit before income taxes 4,585 5,818
Income taxes (1,303) (671)
Net profit 3,282 5,147
Profit attributable to non-controlling interest 151 1,777
Profit attributable to shareholders of Daimler AG 3,131 3,370
Earnings per share (in €) for profit attributable to
shareholders of Daimler AG
Basic 2.93 3.16
Diluted 2.93 3.16
1) The figures for the first half of 2013 have been adjusted due to a reclassification within functional expenses.
Additional information on the adjustments is provided in Note 1 of the Notes to the Unaudited Interim
Consolidated Financial Statements.
The accompanying notes are an integral part of these Unaudited Interim Consolidated
Financial Statements. A detailed analysis of the business results is provided under “7. Analysis
of Financial Condition, Results of Operations and Cash Flow Status” in this section.
- 7 -
2. Conditions of Production, Order and Sales
The following tables show the unit sales by regions and the total number of production
for Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans and Daimler Buses.
Mercedes-Benz Cars
Unit sales 1st half 2014 1
st half 2013 % change
Western Europe 324,229 327,938 -1
Germany 132,327 140,904 -6
United States 158,765 144,474 +10
China 138,404 106,455 +30
Other markets 186,763 167,355 +12
Total unit sales 808,161 746,222 +8
Production 814,097 786,050 +4
Daimler Trucks
Unit sales 1st half 2014 1
st half 2013 % change
Western Europe 24,873 26,238 -5
Germany 13,632 13,835 -1
United States 66,395 56,652 +17
Latin America (excl. Mexico) 22,082 29,038 -24
Asia 83,478 77,176 +8
Other markets 37,767 36,092 +5
Total unit sales 234,595 225,196 +4
Production 249,745 238,551 +5
Mercedes-Benz Vans
Unit sales 1st half 2014 1
st half 2013 % change
Western Europe 88,636 75,126 +18
Germany 37,183 31,168 +19
United States 12,208 10,084 +21
Latin America (excl. Mexico) 7,677 9,271 -17
Asia 8,585 7,727 +11
Other markets 20,022 19,851 +1
Total unit sales 137,128 122,059 +12
Production 155,426 135,980 +14
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Daimler Buses
Unit sales 1st half 2014 1
st half 2013 % change
Western Europe 2,792 2,026 +38
Germany 1,261 734 +72
NAFTA 1,751 1,078 +62
Latin America (excl. Mexico) 8,282 8,670 -4
Asia 397 753 -47
Other markets 1,550 1,419 +9
Total unit sales 14,772 13,946 +6
Production 16,591 16,627 -0
Unit sales and revenue will be discussed in detail under “7. Analysis of Financial
Condition, Results of Operations and Cash Flow Status” in this section.
3. Problems which must be Resolved
The material contracts, agreements, business developments and competition are
described under:
“2. Contents of Business” in section “II. Outline of the Company,”
“5. Material Contracts Relating to Business” in section “III. Conditions of
Business,”
“6. Research and Development” in section “III. Conditions of Business,”
“7. Analysis of Financial Condition, Results of Operations and Cash Flow Status” in
section “III. Conditions of Business,”
“2. Plans for Installation or Removal of Facilities, etc.” in section “IV. Conditions of
Facilities,” and
Note 10 to the Unaudited Interim Consolidated Financial Statements included in this
document.
Furthermore, the legal and political framework has a considerable impact on Daimler’s
future business success. Regulations concerning vehicles’ emissions, fuel consumption
and safety play a particularly important role. Complying with these varied and often
diverging regulations all over the world requires strenuous efforts on the part of the
automotive industry. We expect that we will have to expend an even larger proportion of
our research and development budget to ensure that we fulfill these regulations. Many
countries have already implemented stricter regulations to reduce vehicles’ emissions
and fuel consumption, or are now doing so. In addition, traffic-policy restrictions for the
reduction of traffic jams and pollution are becoming increasingly important in the cities
and urban areas of the European Union and other regions of the world. Drastic measures
such as general vehicle-registration restrictions like in Beijing, Guangzhou or Shanghai
can have a dampening effect on the development of unit sales, especially in the growth
markets. Daimler therefore continually monitors the development of statutory and
political conditions and attempts to anticipate foreseeable requirements and long-term
targets already during the phase of product development.
- 9 -
For an update on the risk factors affecting our business, please refer to subsection “4.
Risk Factors Relating to Business” below.
4. Risk Factors Relating to Business
For a full description of risk factors influencing the Group’s business development,
please refer to section “III. Description of Business”, subsection “4. Risk Factors” of
the Securities Report filed on June 17, 2014. Also, please consider Note 5 of the Table
of Contents of this document.
As of the filing date of this report, economic risks for the world economy have
increased somewhat, mainly reflecting increased political risks. Those risks are on the
one hand the possible escalation of tension between Russia and the Western countries,
primarily in the form of an accelerating spiral of sanctions and countersanctions. On the
other hand, the considerable tension in the Middle East constitutes a threat for the
development of the oil price. In particular, those economies that depend on cash inflows
due to their foreign-trade imbalances remain susceptible to growth slowdowns. In the
United States, there was a surprising decrease in gross domestic product in the first
quarter, raising doubts about the sustainability and dynamism of the upswing. The
peripheral countries of the European Monetary Union have so far remained rather
stable, but we are still far from a full all clear with regard to the sovereign- debt crisis,
and deflationary risks still exist in this region. In China, there is undiminished concern
about the possibility of uncontrolled developments in the financial market caused by a
bursting of the credit bubble, the insolvency of various investment products or a crash
of the real-estate market. Furthermore, the restructuring of the Chinese economy
continues to entail the risk of a “hard landing.” On the opportunities side, the main
potential is of a quick improvement and rapid economic recovery of the emerging
markets. Should political tension in the Middle East quickly subside, there would be
positive effects from a falling oil price.
Apart from the aforementioned factors, our assessment of risks and opportunities has
not changed significantly since filing of the Securities Report on June 17, 2014.
5. Material Contracts Relating to Business
(a) Material contracts
For update information during the first half of 2014 regarding the material contracts in
respect of Rolls-Royce and Renault-Nissan please refer to section “II. Outline of the
Company”, subsection “3. State of the Related Companies.”
For the material contracts that Daimler AG concluded on or before December 31, 2013,
please refer to section “III. Description of Business”, subsection “5. Material Contracts
Relating to Business” of the Securities Report filed on June 17, 2014, and to Note 10 to
the Unaudited Interim Consolidated Financial Statements.
(b) Material Change-of-Control Clauses
For contracts concluded by Daimler AG on or before December 31, 2013 that include
clauses regulating the possible occurrence of a change of control over Daimler AG
which may be considered material under a takeover aspect, please refer to section “III.
- 10 -
Description of Business”, subsection “5. Material Contracts Relating to Business” of
the Securities Report filed on June 17, 2014.
After year-end 2013, the cooperation between Renault-Nissan and Daimler was
amended by establishment of a new joint venture company for the joint production of
compact cars in Mexico. Like the other agreements concluded under the master
cooperation agreement described under section “III. Description of Business”,
subsection “5. Material Contracts Relating to Business” of the Securities Report filed
on June 17, 2014, the agreement on the new joint venture provides for the right of
termination for a party to the agreement in the case of a change of control of another
party. In general, a change of control is deemed to occur at a threshold of 50% of the
voting rights or upon authorization to appoint a majority of the members of the
managing board.
6. Research and Development
In the first half of 2014, Daimler spent a total of €2.7 billion on research and
development (H1 2013: €2.7 billion). Total research and development expenditure
reached 4.4% of the Group’s total revenue. 19% of the research and development
expenditure have been capitalized.
The table below shows research and development expenditure during the first six
months of 2014 and 2013:
Research and development expenditure 1st half ended June 30,
(€ in millions) 2014 2013
Research and development expenditure1 2,667 2,731
thereof: Capitalized development costs 518 674
1) The figure for the first half of 2013 has been adjusted due to a reclassification within functional
expenses.
Research and development have always played a key role at Daimler. Our researcher
engineers anticipate trends, customer wishes and the requirements of the mobility of
the future, and our developer engineers systematically implement these ideas in
products that are ready for series production. Our goal is to offer our customers
fascinating products and customized solutions for need-oriented, safe and sustainable
mobility. Our technology portfolio and our key areas of expertise are oriented toward
this objective.
We want to continue shaping technological transformation in the automotive sector
through our pioneering innovations. We therefore invested the large amount of €2.7
billion in research and development in the first half of 2014; €0.5 billion of that amount
was capitalized (H1 2013: €0.7 billion). Approximately two thirds of the research and
development spending was at the Mercedes-Benz Cars segment. The main areas in all
of our automotive divisions were new vehicle models, particularly fuel-efficient and
environmentally friendly drive systems and new safety technologies. We made
improvements in all of the main areas that further increased our vehicles’ efficiency –
ranging from energy management and aerodynamics to lightweight engineering.
For further information on Daimler’s research and development activities, including
important sites of the research and development network and the personnel employed
in research and development departments, please refer to section ‘‘III. Description of
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Business’’, subsection ‘‘6. Activities on Research and Development’’ of the Securities
Report filed on June 17, 2014.
7. Analysis of Financial Condition, Results of Operations and Cash Flow Status
The Group is conducting its business activities through the following segments:
Mercedes-Benz Cars (b); Daimler Trucks (c); Mercedes-Benz Vans (d), Daimler Buses
(e), and Daimler Financial Services (f). The table below sets forth revenue and earnings
before interest and taxes (EBIT) for each segment:
1st half ended June 30,
2014 2013
(amounts in millions of €) Revenue EBIT Revenue EBIT
Mercedes-Benz Cars 34,775 2,592 30,434 1,501
Daimler Trucks 15,087 796 14,989 550
Mercedes-Benz Vans 4,706 365 4,420 285
Daimler Buses 1,907 103 1,685 (4)
Daimler Financial Services 7,637 733 7,125 633
Reconciliation (3,111) 293 (2,859) 3,194
Total 61,001 4,882 55,794 6,159
a) Daimler Group
Unit Sales and Revenue
In the first half of 2014, the Daimler Group sold 1,194,700 cars and commercial
vehicles. This represents an 8% increase compared to the prior-year period (H1 2013:
1,107,400).
The Mercedes-Benz Cars division set a new record for first-half unit sales, with an
increase of 8% to 808,200 vehicles. Unit sales rose for the Mercedes-Benz brand
(+10%), while unit sales of the smart fortwo declined by 17%. Daimler Trucks sold
234,600 vehicles in the first half of 2014, an increase of 4% compared with the
prior-year figure of 225,200. Unit sales of the Mercedes-Benz Vans division rose by
12% to 137,100 vehicles. Daimler Buses achieved unit sales of 14,800 buses and bus
chassis, compared to 13,900 one year ago. At the end of the first half of 2014, Daimler
Financial Services’ contract volume amounted to €88.1 billion, which is 5% higher than
at the end of 2013 (€83.5 billion).
In the first half of 2014, Daimler achieved revenue of €61.0 billion, 9% above the level
of the prior-year period (€55.8 billion). Adjusted for the effects of currency translation,
revenue increased by 14%.
For revenue by regions, please refer to the table in “II. Outline of the Company, 1.
Changes in Major Business Indices, etc.”
EBIT
The Daimler Group’s EBIT for the first six months of 2014 amounts to €4,882 million
(H1 2013: €6,159 million). All the divisions posted a very positive development of unit
sales and revenue in the first half of 2014. Additional factors with a positive impact on
- 12 -
operating profit were the current product mix at Mercedes-Benz Cars and the
increasing effect of the efficiency measures that have been implemented in all
divisions. Group EBIT was reduced, however, by slightly negative exchange-rate
effects.
The remeasurement and hedging of the Tesla shares resulted in a gain of €489 million
in the first half of 2014. On the other hand, the exercise of the option to transfer shares
in RRPSH to Rolls-Royce led to an expense of €118 million. The first half of the year
2013 was substantially influenced by the gain realized on the EADS transaction in a
total amount of €3,209 million.
The Mercedes-Benz Cars division posted EBIT of €2,592 million for the first half of
2014 (H1 2013: €1,501 million). Its return on sales was 7.5% (H1 2013: 4.9%). The
earnings development primarily reflects the ongoing growth in unit sales, especially in
China and the United States. This growth was driven in particular by the S-Class and
the E-Class, as well as by the expanded range of compact cars. Mercedes-Benz Cars
achieved earnings growth also as a result of better pricing. Efficiency actions from the
“Fit for Leadership” program also had a positive impact on earnings. There were
negative effects on earnings from expenses for the enhancement of products’
attractiveness, capacity expansions and advance expenditure for new technologies and
vehicles. Exchange-rate effects also had a negative impact on earnings.
Daimler Trucks achieved EBIT of €796 million for the first half of this year (H1 2013:
€550 million) and a return on sales of 5.3% (H1 2013: 3.7%). The increase in earnings
was mainly the result of the positive development of unit sales in the NAFTA region
and Asia. Lower warranty expenses and the implementation of efficiency measures
from the “Daimler Trucks #1” program also had a positive effect on earnings. On the
other hand, lower unit sales in Latin America and exchange-rate effects had a negative
impact. Expenses of €76 million were recognized for workforce adjustments in
connection with the ongoing optimization programs in Brazil.
With first-half year EBIT of €365 million, the Mercedes-Benz Vans division
significantly surpassed its prior-year earnings (H1 2013: €285 million). Its return on
sales reached 7.8% (H1 2013: 6.4%). The main reasons for this development were
significant growth in demand in Europe and the NAFTA region; however, expenses in
connection with the launch of the new V-Class and the new Vito influenced earnings.
Exchange-rate effects had an additional negative impact. Earnings were boosted by a
gain of €61 million on the reversal of an impairment of Daimler’s investment in the
Chinese joint venture Fujian Benz Automotive Corporation.
The Daimler Buses division achieved EBIT for the first six months of this year of €103
million (H1 2013: EBIT of minus €4 million). Its return on sales was 5.4% (H1 2013:
minus 0.2%). Operating profit increased due to the positive development of the
business with complete buses as well as significant efficiency progress. The
optimization program for business repositioning resulted in expenses of €9 million in
the first half 2014 (H1 2013: €24 million).
Earnings by the Daimler Financial Services division of €733 million for the first half of
2014 were significantly higher than in the prior-year period (H1 2013: €633 million).
The main reasons for this earnings growth were the increased contract volume and a
gain of €45 million on the sale of a non-automotive-related asset in the United States.
However, exchange-rate effects had a negative impact on EBIT.
- 13 -
Items included in the reconciliation from the EBIT of the divisions to Group EBIT had
a total overall positive impact of €293 million in the first half of this year (H1 2013:
€3,194 million). Items at corporate level resulted in income of €280 million (H1 2013:
income of €3,132 million). This includes the gain of €718 million recognized on the
remeasurement of Daimler’s Tesla shares. This remeasurement had to be carried out as
Daimler no longer had a significant influence on that company. On the other hand, an
expense of €229 million was recognized from hedging the Tesla share price. The
decision of the Board of Management and the Supervisory Board to sell Daimler’s 50%
interest in RRPSH to Rolls-Royce resulted in an expense of €118 million in the first
half of 2014.
Until the sale of Daimler’s remaining shares in EADS in the second quarter of 2013,
income and expenses at the corporate level also included Daimler’s proportionate share
of the earnings of the equity-method investment in EADS, which amounted to €49
million in the first half of 2013. Furthermore, earnings in the first half of 2013 were
boosted by a total gain of €3.2 billion on the remeasurement and sale of the remaining
EADS shares.
The elimination of intra-group transactions resulted in income of €13 million in the first
half of 2014 (H1 2013: €62 million).
The special items shown in the table below influenced EBIT in the first six months of
the years 2014 and 2013:
Special items affecting EBIT 1st half ended June 30,
(amounts in millions of €) 2014 2013
Mercedes-Benz Cars
Impairment of investments in the area of alternative
drive systems
— (43)
Daimler Trucks
Workforce adjustments (76) (95)
Mercedes-Benz Vans
Reversal of impairment of investment in Fujian Benz
Automotive Corporation (FBAC)
61
—
Daimler Buses
Business repositioning (9) (24)
Reconciliation
EADS – remeasurement and sale of the remaining
shares
Measurement of put option for RRPSH
Hedge of Tesla share price
Remeasurement of Tesla shares
—
(118)
(229)
718
3,209
(29)
—
—
- 14 -
Net Profit
Unaudited Consolidated Statement of Income 1st half ended June 30,
(amounts in millions of €) 2014 2013
Revenue 61,001 55,794
Cost of sales1 (47,749) (44,089)
Gross profit1 13,252 11,705
Selling expenses1 (5,487) (5,473)
General administrative expenses1 (1,558) (1,524)
Research and non-capitalized development costs1 (2,149) (2,057)
Other operating income 682 577
Other operating expense (239) (176)
Share of profit from investments accounted for using the
equity method, net
850
3,325
Other financial expense, net (473) (218)
Interest income 64 105
Interest expense (357) (446)
Profit before income taxes 4,585 5,818
Income taxes (1,303) (671)
Net profit 3,282 5,147
Profit attributable to non-controlling interest 151 1,777
Profit attributable to shareholders of Daimler AG 3,131 3,370
1) The figures for the first half of 2013 have been adjusted due to a reclassification within functional
expenses. Additional information on the adjustments is provided in Note 1 of the Notes to the
Unaudited Interim Consolidated Financial Statements.
Net interest expense in the first half of 2014 improved by €48 million to €293 million
(H1 2013: €341 million). Expenses in connection with pension and healthcare benefits
obligations were unchanged compared with the prior-year level. Other interest result
improved due to the successive expiry of refinancing at high interest rates. There was
an opposing effect from lower income from cash deposits and from the measurement of
interest-rate hedges.
The expense of €1,303 million entered under income-tax expense increased by €632
million compared with the prior-year period. In the first half of last year, the income-tax
expense was relatively low compared with pre-tax earnings, as the gain recognized on
the remeasurement and sale of the EADS shares was largely tax free. Adjusted for this
amount, normal taxable earnings increased in the first half of 2014 compared with the
prior-year period, which led to a correspondingly higher income-tax expense.
Net profit decreased in the first six months of 2014 to €3,282 million (H1 2013: €5,147
million). Profit attributable to non-controlling interest amounted to €151 million (H1
2013: €1,777 million); in the year 2013, this primarily resulted from the remeasurement
of the EADS shares. Net profit of €3,131 million is attributable to the shareholders of
Daimler AG (H1 2013: €3,370 million); earnings per share decreased to €2.93 (H1
2013: €3.16).
The calculation of earnings per share (basic) is based on an average number of
outstanding shares of 1,069.8 million (H1 2013: 1,068.0 million).
- 15 -
Cash Flows
Cash provided by operating activities of €1.6 billion in the first half of 2014 was at the
level of the prior-year period. Profit before income taxes included a non-cash gain on
the remeasurement and an expense from hedging the price of Tesla shares in a net
amount of €0.5 billion in the first half of 2014; in the first half of 2013, it included a
non-cash gain of €3.4 billion on the remeasurement of the EADS shares. Adjusted for
these effects, profit before income taxes improved compared with the prior-year period.
The development of working capital had an opposing effect. The comparatively higher
inventory increase and the lower increase in trade payables were not fully offset by the
development of trade receivables. Growth in new business in leasing and sales
financing once again surpassed the high level of the prior-year period. Another factor
was that the positive business development in the first half of 2014 led to higher
income-tax payments.
Cash used for investing activities amounted to €1.8 billion (H1 2013: €2.7 billion). The
change compared with the prior-year period resulted primarily from acquisition and
disposals of securities in the context of liquidity management. Those transactions
resulted in a net cash inflow in the reporting period, whereas acquisitions of securities
significantly exceeded disposals in the prior-year period. In addition, the slight
decrease in investments in intangible assets had a positive impact. Investments in
property, plant and equipment for the ramp-up of new products and for the expansion of
production capacities remained at the high level of the previous years. While the sale of
the remaining EADS shares (€2.2 billion) and the capital increase at Beijing Benz
Automotive Co., Ltd. (BBAC) (€0.2 billion) had a major impact on cash used for
investing activities in the first half of 2013, there were only small cash outflows for
investments in equity interests in the first half of 2014.
Cash provided by / used for financing activities resulted in a cash outflow of €0.2
billion (H1 2013: cash inflow of €1.8 billion). The change resulted almost solely from
the reduction in financing liabilities (net). Increased dividend payments to minority
shareholders of subsidiaries and to the shareholders of Daimler AG were another factor.
Cash and cash equivalents decreased compared with December 31, 2013 by €0.3
billion, after taking currency translation into account. Total liquidity, which also
includes marketable debt securities, decreased by €1.2 billion to €16.9 billion.
The parameter used by Daimler to measure the financial capability of the Group’s
industrial business is the free cash flow of the industrial business, which is derived from
the reported cash flows from operating and investing activities. The cash flows from the
acquisition and sale of marketable debt securities included in cash flows from investing
activities are deducted, as those securities are allocated to liquidity and changes in them
are thus not a part of the free cash flow.
Other adjustments relate to additions to property, plant and equipment that are allocated
to the Group as their beneficial owner due to the form of their underlying lease
contracts. Furthermore, effects from the financing of dealerships within the Group are
adjusted. In addition, the calculation of the free cash flow includes those cash flows to
be shown under cash from financing activities in connection with the acquisition or sale
of interests in subsidiaries without the loss of control.
- 16 -
Free cash flow of the industrial business 1st half ended June 30,
(amounts in millions of €) 2014 2013
Cash provided by operating activities 4,082 3,430
Cash used for investing activities (1,957) (2,640)
Change in marketable debt securities (722) 1,639
Other adjustments 44 (127)
Free cash flow of the industrial business 1,447 2,302
The free cash flow amounted to €1.4 billion in the first half of 2014. The positive profit
contributions of the automotive divisions were offset by the increase in working capital,
defined as the net change in inventories, trade receivables and trade payables, in a total
amount of €0.7 billion. Positive effects resulted from the sale of trade receivables of
companies in the industrial business to Daimler Financial Services. There were
negative effects on the free cash flow of the industrial business from high investments
in property, plant and equipment and intangible assets, income-tax payments and
interest payments.
The decrease in free cash flow of €0.9 billion was mainly due to the proceeds of €2.2
billion in the prior-year period from the sale of the remaining EADS shares.
Furthermore, income-tax payments and interest payments increased. On the other hand,
higher profit contributions from the automotive divisions and lower investments in
intangible assets had positive effects.
Net liquidity of the industrial business June 30, Dec. 31,
(amounts in millions of €) 2014 2013
Cash and cash equivalents 9,487 9,845
Marketable debt securities 4,597 5,303
Liquidity 14,084 15,148
Financing liabilities (1,688) (1,324)
Market valuation and currency hedges for financing
liabilities
300
10
Financing liabilities (nominal) (1,388) (1,314)
Net liquidity 12,696 13,834
The net liquidity of the industrial business is calculated as the total amount as shown in
the statement of financial position of cash, cash equivalents and marketable debt
securities included in liquidity management, less the currency-hedged nominal
amounts of financing liabilities.
To the extent that the Group’s internal refinancing of the financial services business is
provided by the companies of the industrial business, this amount is deducted in the
calculation of the net debt of the industrial business.
Compared with December 31, 2013, the net liquidity of the industrial business
decreased by €1.1 billion to €12.7 billion. The decrease mainly reflects the dividend
payments to the shareholders of Daimler AG (€2.4 billion) and to the minority interest
of subsidiaries (€0.2 billion). On the other hand, the free cash flow of €1.4 billion had a
positive effect on net liquidity.
- 17 -
Net debt of the Daimler Group June 30, Dec. 31,
(amounts in millions of €) 2014 2013
Cash and cash equivalents 10,794 11,053
Marketable debt securities 6,115 7,066
Liquidity 16,909 18,119
Financing liabilities (81,453) (77,738)
Market valuation and currency hedges for financing
liabilities
289
(3)
Financing liabilities (nominal) (81,164) (77,741)
Net debt (64,255) (59,622)
Net debt at Group level, which primarily results from the refinancing of the leasing and
sales financing business, decreased by €4.6 billion compared with December 31, 2013.
The Daimler Group once again utilized the attractive conditions in the international
money and capital markets in the first half of 2014 for refinancing. In the first half of
2014, Daimler had a cash inflow of €6.8 billion from the issuance of bonds (H1 2013:
€6.7 billion). Outflows for the redemption of maturing bonds amounted to €5.8 billion
(H1 2013: €3.0 billion).
In addition, we undertook multiple smaller issue in various countries and currencies. In
particular, favorable conditions in the sterling market were utilized in the second
quarter of 2014.
Furthermore, Daimler AG issued a ten-year bond in a volume of €500 million in the
euro market in early July. In April and July 2014, asset-backed securities (ABS)
transactions were conducted in the United States in volumes of approximately $2.0
billion and $1.1 billion respectively, due to the very favorable market environment
there.
Balance Sheet Structure
The Group’s balance sheet total increased compared with December 31, 2013 from
€168.5 billion to €176.0 billion. Adjusted for exchange-rate effects, there was an
increase of €5.9 billion. Daimler Financial Services accounts for €93.8 billion of the
balance sheet total (December 31, 2013: €89.4 billion), equivalent to 53% of the
Daimler Group’s total assets, as at December 31, 2013.
The increase in total assets is primarily due to high inventories and the increased
financial services business. On the liabilities side of the balance sheet, financial
liabilities and provisions increased in particular. Current assets account for 42% of total
assets, as at December 31, 2013. Current liabilities are also unchanged at 35% of total
equity and liabilities.
Intangible assets of €9.3 billion include €7.2 billion of capitalized development costs
(December 31, 2013: €7.3 billion) and €0.7 billion of goodwill. The Mercedes-Benz
Cars division accounts for 68% of the development costs and the Daimler Trucks
division accounts for 23%.
Capital expenditure was higher than depreciation, causing property, plant and
equipment to rise to €22.2 billion (December 31, 2013: €21.8 billion). In the first half of
2014, a total of €2.1 billion was invested primarily at the sites in Germany for the
ramp-up of new products, the expansion of production capacities and modernization.
- 18 -
Equipment on operating leases and receivables from financial services increased to
€83.3 billion (December 31, 2013: €78.9 billion). This increase adjusted for
exchange-rate effects of €3.3 billion was the result of higher new business at Daimler
Financial Services. Those assets’ share of total assets of 47% is at the level of
December 31, 2013.
Investments accounted for using the equity method of €2.0 billion (December 31, 2013:
€3.4 billion) mainly comprise the carrying amounts of our investments in the Chinese
companies BBAC and BAIC Motor Corporation Ltd. (BAIC Motor) in the automotive
business and in Beijing Foton Daimler Automotive Co., Ltd. (BFDA) 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
RRPSH to the partner Rolls-Royce, this investment is presented separately under
“Assets held for sale.”
Inventories increased from €17.3 billion to €19.8 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, Daimler Trucks and Mercedes-Benz
Vans divisions in increased stocks of finished and unfinished goods in Germany and the
United States.
Trade receivables decreased by €0.1 billion to €7.7 billion. The Mercedes-Benz Cars
division accounts for 44% of these receivables and the Daimler Trucks division
accounts for 34%.
Cash and cash equivalents decreased compared with the end of the year 2013 by €0.3
billion to €10.8 billion.
Marketable debt securities decreased compared with December 31, 2013 from €7.1
billion to €6.1 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 €1.1 billion to €7.4 billion. The increase is
primarily related to the shares in Tesla, which were remeasured at fair value on the basis
of their stock-market price after Daimler lost its significant influence on the company.
In addition, other financial assets 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 €6.0 billion (December 31, 2013: €5.5 billion) primarily comprise
deferred tax assets and tax refund claims.
The Group’s equity decreased compared with December 31, 2013 from €43.4 billion to
€42.7 billion. Equity attributable to the shareholders of Daimler AG decreased to €42.0
billion (December 31, 2013: €42.7 billion). The net profit of €3.3 billion was offset by
the distribution of the dividend for financial year 2013 to the shareholders of Daimler
AG in an amount of €2.4 billion and actuarial losses from defined-benefit pension plans
(€1.2 billion), which are accounted for under retained earnings.
The equity ratio was 24.3% for the Group and 43.3% for the industrial business as at
June 30, 2014 (December 31, 2013: 24.3 and 43.4% respectively). The equity ratios for
the year 2013 are adjusted for the dividend payment.
- 19 -
Provisions increased to €24.4 billion (December 31, 2013: €23.1 billion), equivalent to
14% of the balance sheet total, as at the end of 2013. They primarily comprise
provisions for pensions and similar obligations of €11.6 billion (December 31, 2013:
€9.9 billion) as well as liabilities from product warranties of €4.7 billion (December 31,
2013: €4.7 billion), from personnel and social costs of €3.0 billion (December 31,
2013: €3.2 billion) and from income taxes of €1.2 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 €81.5 billion were above the level of December 31, 2013 (€77.7
billion). The increase adjusted for exchange-rate effects of €2.8 billion primarily
reflects the growing leasing and sales-financing business. 50% of the financing
liabilities are accounted for by bonds, 26% by liabilities to financial institutions, 14%
by deposits in the direct banking business, and 7% by liabilities from ABS transactions.
Trade payables increased to €10.4 billion due to changes in production volumes during
the year (December 31, 2013: €9.1 billion). The Mercedes-Benz Cars division accounts
for 60% of these payables and the Daimler Trucks division accounts for 28%.
Other financial liabilities amount to €9.6 billion (December 31, 2013: €8.3 billion).
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 €7.4 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 €10.6 billion at June 30, 2014, compared with minus €8.6 billion at December
31, 2013. At June 30, 2014, the present value of the Group’s pension obligations
amounted to €25.8 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 2.7% at June 30, 2014. The fair value of plan assets
available to finance the pension obligations increased from €14.7 billion to €15.2
billion at June 30, 2014. In total, actuarial losses from defined benefit pension plans,
which are recognized in equity under retained earnings, increased by €1.7 billion before
taxes.
Credit Ratings
To help debt and fixed income investors better evaluate the risk of any given
investment, the capital market uses the publicly available independent assessments of
rating agencies. Through regular discussions with the senior management of
companies, rating agencies gain an insight into the strategy and planning of the
companies that they rate. Using this information as a base, supplemented by
quantitative analysis, rating agencies evaluate the creditworthiness of the issuer
companies through a system of rating classifications. Companies which want to raise
- 20 -
money in the capital markets in the form of bonds, commercial paper and other debt
instruments normally need a minimum of one or better two ratings.
The higher the rating classification, the smaller is the potential risk that a company
cannot meet its debt obligations (interest and principal). The debt investor charges a
higher rate of interest for financing a higher risk. Thus a company with a strong rating
can raise capital more advantageously than a company which has a less favorable
rating. Additionally, the outlook given by a rating agency provides a supplementary
reference point for the investor in assessing the probable development of the rating.
The leading international rating agencies Standard & Poor's Rating Services (S&P),
Moody's Investors Service, Inc. (Moody's), Fitch Ratings Ltd. (Fitch) and DBRS
Limited (DBRS) rate Daimler’s commercial paper (short-term) and senior unsecured
long-term debt (long-term).
As of August 31, 2014, our credit ratings are as follows:
S&P Moody’s Fitch DBRS
Short-term debt A-2 P-2 F2 R-1 (low)
Long-term debt A- A3 A- A (low)
During the period between January 1 and August 31, 2014, the short-term and long-term
ratings of all four rating agencies remained unchanged.
b) Mercedes-Benz Cars
Amounts in millions of € 1st half 2014 1
st half 2013 % change
EBIT 2,592 1,501 +73
Revenue 34,775 30,434 +14
Unit Sales 808,161 746,222 +8
Production 814,097 786,050 +4
Employees1 129,651 96,895 +34
1) Figures as of June 30, 2014 and December 31, 2013.
Mercedes-Benz Cars achieved a new record for unit sales in the first half of 2014. Total
sales of the car division rose by 8% to 808,200 units (H1 2013: 746,200). With €34.8
billion, revenue was significantly higher than one year ago (H1 2013: €30.4 billion).
EBIT amounted to €2,592 million, compared with €1,501 million in the first half of
2013. For further information on the factors influencing EBIT, please refer to the
discussion of Group EBIT in “a) Daimler Group” above.
Regional sales information. Mercedes-Benz Cars performed well in a volatile
European market environment and increased its share of almost all markets. Sales of
191,900 units in Western Europe (excluding Germany) were 3% above the number of
187,000 vehicles sold in the first half of last year. In the German market,
Mercedes-Benz Cars sold 132,300 units (H1 2013: 140,900). In our biggest export
market, the United States, the division was more successful than ever before with sales
of 158,800 units, representing growth of 10% compared with the prior-year period. In
China, Mercedes-Benz Cars continued along its successful path with an increase in unit
- 21 -
sales to 138,400 vehicles (+30%). The development of unit sales was very positive also
in India (+27%) and in Russia (+23%).
Product information. The new compact cars sold very well in the first half: From
January through June, 215,000 units of the A-, B-, CLA- and GLA-Class were sold
(+20%). The E-Class family is meeting with a very good response from the customers:
169,400 cars were sold in the E-Class segment in the first half (+20%). Demand for the
Mercedes-Benz S-Class continued to be particularly strong: From January through
June, 58,900 units were sold in the luxury segment, an increase of 86%. Worldwide
sales of SUVs totaled 170,500 units (+9%). Sales of 148,500 units of the C-Class were
lower than in the prior-year period due to the model change (H1 2013: 182,700), and
the approaching model change of the smart resulted in lower sales also of that model
(45,900 units compared with 55,400 in H1 2013).
For the unit sales by regions and the total number of production for Mercedes-Benz
Cars, please refer to the table in “2. Conditions of Production, Order and Sales” above.
c) Daimler Trucks
Amounts in millions of € 1st half 2014 1
st half 2013 % change
EBIT 796 550 +45
Revenue 15,087 14,989 +1
Unit Sales 234,595 225,196 +4
Production 249,745 238,551 +5
Employees1 83,960 79,020 +6
1) Figures as of June 30, 2014 and December 31, 2013.
Daimler Trucks’ half-year unit sales were 4% above the prior-year level at 234,600.
Revenue reached €15.1 billion (H1 2013: €15.0 billion). EBIT amounted to €796
million (H1 2013: €550 million), including expenses of €76 million for workforce
adjustments in Brazil. For further information on the factors influencing EBIT, please
refer to the discussion of Group EBIT in “a) Daimler Group” above.
Regional sales information. The development of demand and unit sales in the
individual regions differed greatly in the first half. In Western Europe, sales of 24,900
units were below the prior-year level, primarily due to purchases brought forward to the
end of 2013 before the introduction of Euro VI emission limits. At the same time, we
increased the market share of our Mercedes-Benz vehicles in the medium- and
heavy-duty segment. In Latin America, the current economic situation continued to
have a negative impact on demand for trucks. Our sales of 22,100 units in that market
were 24% below the prior-year level. Despite the difficult market environment, we
were able to improve our market position in Brazil and increased our market share in
the medium- and heavy-duty segment.
In the NAFTA region, increased market demand led to growth in unit sales of 15% to
75,700 vehicles. Although our market share in Class 6-8 decreased in the first half of
2014, we were able to clearly defend our market leadership once again.
In Asia, sales of 83,500 units in a very disparate market environment were 8% higher
than in the first half of last year. With sales of 22,400 units in the overall Japanese truck
market, we sold 27% more FUSO trucks than in the prior-year period and thus
increased our market share. Also in India, we succeeded once again in increasing the
- 22 -
market share of our BharatBenz vehicles in the medium- and heavy-duty segment, thus
defending our fourth position in the market.
Product information. Shortly after our 100% subsidiary Daimler India Commercial
vehicles (DICV) was voted “Commercial Vehicle Maker of the Year” in India in early
2014, the company presented four new truck models of its BharatBenz brand. The
product portfolio has now been extended with the addition of three semitrailer tractors
and a vehicle for construction and mining applications.
The EuroTransportMedia publishing house carries out an annual readers’ vote on the
best commercial vehicles. Our renewed top places in this survey prove that the
Mercedes-Benz Actros is the best long-distance truck, convincing customers and
drivers alike. The Mercedes-Benz Antos was voted the best local-delivery truck, and
the Mercedes-Benz Arocs was the winner in the category of tipper trucks up to 32 tons.
The new Super Great V heavy-duty truck from FUSO sets new standards for economy:
Its fuel consumption is up to 10% better than that of the trucks currently offered in the
Japanese market. This is primarily due to the optimized engine, which is based on
Daimler Trucks’ heavy-duty engine platform.
In China, we hold a 50% interest in BFDA, a joint venture with Beiqi Foton Motor Co.,
Ltd. BFDA sold 57,900 trucks under the Auman brand name in the first half of this
year.
For the unit sales by regions and the total number of production for Daimler Trucks,
please refer to the table in “2. Conditions of Production, Order and Sales” above.
d) Mercedes-Benz Vans
Amounts in millions of € 1st half 2014 1
st half 2013 % change
EBIT 365 285 +28
Revenue 4,706 4,420 +6
Unit Sales 137,128 122,059 +12
Production 155,426 135,980 +14
Employees1 16,276 14,838 +10
1) Figures as of June 30, 2014 and December 31, 2013.
Mercedes-Benz Vans increased its unit sales by 12% to 137,100 vehicles in the first half
of 2014. Revenue of €4.7 billion was also above the prior-year level (H1 2013: €4.4
billion), while EBIT rose to €365 million (H1 2013: €285 million). For further
information on the factors influencing EBIT, please refer to the discussion of Group
EBIT in “a) Daimler Group” above.
Regional sales information. Mercedes-Benz Vans profited from its attractive product
range and achieved significant growth in unit sales of 18% to 88,600 vehicles in its core
region of Western Europe. Growth was particularly strong in Germany (+19%), the
United Kingdom (+29%) and Spain (+87%). Due to the volatile market environment in
Turkey, sales of 12,400 units in Eastern Europe remained slightly below the high level
of the prior-year period (H1 2013: 12,500).
The development of unit sales in the United States and China was positive once again:
In the United States, Mercedes-Benz Vans increased its sales in the first half by 21% to
12,200 units. We posted a double-digit growth rate also in China, where unit sales
- 23 -
increased by 16% to 6,600 vehicles. In Latin America, however, unit sales decreased
significantly compared with the first half of last year (-17%). This development
primarily reflects the difficult market environment in that region.
Product information. Our growth was driven above all by the market success of the
Sprinter. We sold 86,100 units of our large van worldwide in the first half of 2014,
which is 17% more than in the prior-year period. In the segment of mid-sized vans
(including the new V-Class), Mercedes-Benz Vans surpassed the prior-year level in the
reporting period despite the model change and sold 41,200 vehicles (H1 2013: 37,400).
9,700 units of the Mercedes-Benz Citan were sold (H1 2013: 9,300).
For the unit sales by regions and the total number of production for Mercedes-Benz
Vans, please refer to the table in “2. Conditions of Production, Order and Sales” above.
e) Daimler Buses
Amounts in millions of € 1st half 2014 1
st half 2013 % change
EBIT 103 (4) —
Revenue 1,907 1,685 +13
Unit Sales 14,772 13,946 +6
Production 16,591 16,627 -0
Employees1 16,214 16,603 -2
1) Figures as of June 30, 2014 and December 31, 2013.
Daimler Buses’ sales of 14,800 buses and bus chassis in the first half surpassed the
number of 13,900 units sold in the prior-year period. Growth in Western Europe due to
increased demand for complete buses more than compensated for the decrease in units
sales of bus chassis in Latin America. Primarily due to the positive development of unit
sales in the business with complete buses, revenue rose by 13% to €1.9 billion. EBIT
improved to €103 million (H1 2013: minus €4 million). For further information on the
factors influencing EBIT, please refer to the discussion of Group EBIT in “a) Daimler
Group” above.
Regional sales information. There was a positive growth in demand for complete buses
in Western Europe in the first half of 2014. In this core market, 2,800 units of the
Mercedes-Benz and Setra brands were sold. In Germany, Daimler Buses increased its
unit sales by 72% to 1,300 vehicles. In Turkey, we sold 400 units (H1 2013: 700); this
development resulted from the significant contraction of the overall market compared
with the first half of last year.
In Latin America (excluding Mexico), first-half unit sales of 8,300 bus chassis were
lower than in the prior-year period (H1 2013: 8,700). There was a negative impact on
our unit sales in particular from the difficult economic situation in Argentina. We sold
1,700 units in Mexico, which is 64% more than in the prior-year period.
Product information. In April, we delivered the 40,000th Mercedes-Benz Citaro city
bus to a customer. The Mercedes-Benz Citaro is thus the best-selling bus of all time. A
month earlier, Mercedes-Benz sold its 1000th Citaro with Euro VI emission
technology. Thanks to the early introduction of Euro VI, Daimler Buses has been able
to expand its market position and gain multiple major orders in various European
- 24 -
countries. Also in the first half of 2014, the delivery of minibuses of the Mercedes-Benz
brand passed the mark of 20,000 units.
For the unit sales by regions and the total number of production for Daimler Buses,
please refer to the table in “2. Conditions of Production, Order and Sales” above.
f) Daimler Financial Services
Amounts in millions of € 1st half 2014 1
st half 2013 % change
EBIT 733 633 +16
Revenue 7,637 7,125 +7
New Business 21,353 18,911 +13
Contract Volume1 88,084 83,539 +5
Employees1 8,488 8,107 +5
1) Figures as of June 30, 2014 and December 31, 2013.
Daimler Financial Services concluded approximately 617,000 new leasing and
financing contracts with a total value of €21.4 billion in the first half, increasing its new
business by 13% compared with the prior-year period. Contract volume reached €88.1
billion at the end of June, which is 5% higher than at the end of 2013. EBIT amounted
to €733 million (H1 2013: €633 million). For further information on the factors
influencing EBIT, please refer to the discussion of Group EBIT in “a) Daimler Group”
above.
In the insurance business, Daimler Financial Services brokered 8% more
automotive-related policies than in the first half of last year. Strong growth was
achieved once again in China, where approximately 87,000 policies brokered
represents an increase of 16%.
Europe. In Europe, approximately 331,000 new leasing and financing contracts in a
total volume of €10.1 billion were concluded, which is 11% more than in the first half
of last year. Strong growth was achieved for example in Spain (+44%). In Germany, the
new business of Mercedes-Benz Bank increased to €8.4 billion (+10%), and the deposit
volume in the direct banking business amounted to €11.2 billion at the end of the first
half, nearly constant compared with the end of 2013 (-1%). Contract volume in Europe
reached €38.6 billion as of June 30, rising by 4% compared with December 31, 2013.
Americas. In the Americas, Daimler Financial Services increased its new business
compared with the first six months of 2013 by 8% to €7.8 billion. In the United States,
new business grew by 11%. Contract volume in the Americas region rose to €36.6
billion, which is 6% above the level at year-end 2013. Adjusted for exchange-rate
effects, there was an increase of 4%. During the first half of 2014, customers in the
United States made instalment payments in a total volume of $50 million with the aid of
the innovative app “my MBFS”, with which customers can access information about
financial services from Daimler; that was 20% more than in the prior-year period.
Africa & Asia-Pacific. In the Africa & Asia-Pacific region, new business increased
compared with the first half of last year by 33% to €3.4 billion. In China, the volume of
newly concluded financing and leasing contracts more than doubled compared with the
prior-year period with an increase of 140%. Contract volume in the Africa &
Asia-Pacific region amounted to €12.7 billion at the end of June, which is 10% higher
- 25 -
than at the end of 2013. The “my MBFS” app passed the mark of 100,000 downloads in
the Africa & Asia-Pacific region.
g) Reconciliation
Amounts in millions of € 1st half 2014 1
st half 2013 % change
EBIT 293 3,194 -91
Share of profit from investments
accounted for using the equity method
732
3,398
-78
Corporate items / Other (452) (266) —
Eliminations 13 62 -79
Revenue (3,111) (2,859) —
The reconciliation of the divisions’ EBIT to Group EBIT comprises income and
expenses at the corporate level as well as effects on earnings from the elimination of
intra-group transactions between the divisions.
Items included in the reconciliation from the EBIT of the divisions to Group EBIT had
a total overall positive impact of €293 million in the first half of this year (H1 2013:
€3,194 million).
In the first six months of 2014, “Share of profit from investments accounted for using
the equity method” includes the income from the remeasurement of the equity
investment in Tesla of €718 million as well as the proportionate result of BAIC Motor.
The prior-year profit includes the gain from the remeasurement of the EADS shares.
In the first six months of 2014, “Other corporate items” include the expenses from
hedging the share price of Tesla of €229 million (H1 2013: €0 million) and from the
measurement of the RRPSH put option of €118 million (H1 2013: €29 million).
Furthermore it includes expenses in connection with legal proceedings. In the
prior-year period, a loss of €154 million in connection with the disposal of the
remaining EADS shares was disclosed, which was reported within “Other financial
expense, net.”
For additional details on EADS, please refer to section “II. Outline of the Company”,
subsection “2. Contents of Business”. For further information on the factors
influencing the reconciliation of the divisions’ EBIT to Group EBIT, please refer to the
discussion of Group EBIT in “a) Daimler Group” above.
Included in the column “Reconciliation” is revenue of minus €3.1 billion for the first
half of 2014 (H1 2013: minus €2.9 billion), which mainly represents eliminations of
intersegment transactions.
- 26 -
IV. Conditions of Facilities
1. Conditions of Principal Facilities
No material change during the six-month period ended June 30, 2014.
2. Plans for Installation or Removal of Facilities, etc.
Besides the announcement to establish a new plant in Mexico together with Nissan (for
further information please refer to section “II. Outline of the Company”, subsection “3.
State of the Related Companies”), there was no material change during the six-month
period ended June 30, 2014.
As part of our strategic planning and operations, we are continuously monitoring our
production capacity in relation to developing and anticipated industry changes and
market conditions. As these conditions fluctuate, we adjust our capacity by opening,
closing, selling, expanding, or downsizing production facilities, or by adding or
eliminating work shifts.
In order to achieve our ambitious growth targets, we will expand our product range in the
coming years and develop additional production and distribution capacities. We also
want to make sure that we can play a leading role in the far-reaching technological
transformation of the automotive industry. For this purpose, we will once again
significantly increase our already very high investment in property, plant and equipment
in the year 2014.
At the end of March, Daimler AG and its Chinese partner Beijing Automotive Industry
Corporation (BAIC) signed an agreement on the further expansion of the production
capacities of the joint venture BBAC. With this agreement, Daimler is further expanding
its activities in China and its strategic partnership with BAIC. A total of approximately
€4 billion is currently being invested at BBAC, of which €1 billion will flow into the
expansion of capacities for local car and engine production by 2015.
Our production plants for passenger cars continued to operate at high levels of capacity
utilization, with many of them working three shifts. A key feature of the first half was
the C-Class, which for the first time is now produced on four continents. Following the
start of production of the sedan at the Bremen plant (Germany) in February, two more
plants followed in May (East London, South Africa) and June (Tuscaloosa, United
States). In Sindelfingen, Germany, the new S-Class Coupé rolled off the assembly lines
for the first time in June. Furthermore, the Rastatt plant (Germany) started production
of the fully electric B-Class Electric Drive. In April, the foundation stone was laid for a
new transmission factory in Sebes, Romania, with investment of more than €300
million.
With the introduction of the new Mercedes-Benz V-Class, we have set another
milestone in our growth strategy. Mercedes-Benz Vans redefines the MPV segment
with this vehicle. Following the world premiere in January 2014, production of the new
V-Class started at the van plant in Vitoria, Spain, in early March.
In India, our 100% subsidiary DICV presented four new truck models of its BharatBenz
brand: three semitrailer tractors and a vehicle for construction and mining applications.
Following last year’s successful integration of the bus business under the roof of DICV,
the foundation stone for a bus plant has now been laid. Daimler is investing
approximately €50 million in a new plant to be constructed on the site of DICV.
- 27 -
Completion is planned for the second quarter of 2015. The product portfolio will
include front-engine buses of the BharatBenz brand, designed to meet the particular
requirements of the Indian volume market. In addition, the existing rear-engine chassis
for the premium segment under the Mercedes-Benz brand will be produced locally.
- 28 -
V. Conditions of the Company
1. Information Concerning Shares, etc.
(1) Total Number of Shares, etc.
(i) Total number of shares
Approved number of Shares: 1,592,615,185
(as of June 30, 2014)
Issued Shares: 1,069, 837,447 (0 of them treasury shares)
(as of June 30, 2014)
Shares not yet issued: 522,777,738
(as of June 30, 2014)
348,518,492 (Authorized/Approved
Capital 2014)
174,259,246 (Conditional Capital 2010)
Authorized/Approved Capital 2014: After the Authorized/Approved Capital 2009
expired on April 7, 2014, a new Authorized/Approved Capital 2014 has been created.
By resolution of the Annual Shareholders’ Meeting held on April 9, 2014, the Board of
Management was authorized, with the consent of the Supervisory Board, to increase the
Company’s share capital in the period until April 8, 2019 by a total of
€1,000,000,000.00, in one lump sum or by separate partial amounts at different times,
by issuing new, registered no par value shares in exchange for cash and/or non-cash
contributions (Authorized/Approved Capital 2014). Among other things, the Board of
Management was authorized, with the consent of the Supervisory Board, to exclude
shareholders’ subscription rights under certain conditions. No use has yet been made of
this authorization.
Conditional Capital 2010: By resolution of the Annual Shareholders’ Meeting on April
14, 2010, the Board of Management was authorized with the consent of the Supervisory
Board, until April 13, 2015 to issue once or several times convertible and/or warrant
bonds or a combination of these instruments (“bonds”) with a total face value of up to
€10 billion and a maturity of no more than ten years. The Board of Management is
allowed to grant the holders of these bonds conversion or warrant rights for new
registered no par value shares in Daimler AG with an allocable portion of the share
capital of up to €500 million in accordance with the details defined in the terms and
conditions of the bonds. The bonds can also be issued by majority-owned direct or
indirect subsidiaries of Daimler AG. Accordingly, the share capital is conditionally
increased by an amount of up to €500 million (Conditional Capital 2010). The
authorization to issue convertible and/or warrant bonds has not yet been exercised.
Conditional Capital II was approved by the Annual Shareholders’ Meeting 2000 to
cover the option rights issued by Daimler AG in the period up to April 18, 2005 in line
with the Daimler Stock Option Plan (SOP), which granted stock options for the
purchase of Daimler ordinary shares to eligible employees/board members. As the last
options rights expired on March 31, 2014, the Residual Conditional Capital II was
cancelled and deleted from the Articles of Incorporation.
- 29 -
For further details on the before mentioned authorized and conditional capital, please
refer to section II. Share Capital and Shares, Article 3 (§ 3) Share Capital, of the
Company’s Articles of Incorporation
(ii) Issued and outstanding shares
Kind: registered ordinary shares, no par value
Number of shares: 1,069, 837,447
(as of June 30, 2014)
Stock Exchanges on which the Shares are
listed or Securities Dealers Associations
with which the Securities are registered: Our ordinary shares are listed on the
Frankfurt Stock Exchange and the
Stuttgart Stock Exchange.
Contents: N/A
(2) Conditions of Execution of a Convertible Bond with a Floating Conversion Ratio,
etc.
Not applicable.
(3) Total Number of Issued Shares and Capital
Date or time
Increase in
share capital
Total share capital
after the increase/
change in €
Remarks
(ten thousand Yen)
Balance as of
Dec. 31, 2013
1,069,772,847 shares 3,069,486,615.75
(41,978,299)
End of financial
2013
Jan. 1 to June 30,
2014
€185,356.01
64,600 shares
3,069,671,971.76
(41,980,834)
Exercise of stock
options
Balance as of
June 30, 2014
1,069,837,447 shares 3,069,671,971.76
(41,980,834)
End of first half
2014
Between January 1, 2014 and June 30, 2014, 64,600 new Daimler shares were issued in
connection with the exercise of stock options. After this issuance of new shares under
Conditional Capital II, the total number of issued shares of the Company amounted to
1,069,837,447 on June 30, 2014.
- 30 -
(4) Major Shareholders
Our capital stock consists of ordinary shares without par value (Stückaktien). Our
ordinary shares are issued in registered form. Under our Articles of Incorporation
(Satzung), each ordinary share represents one vote. Major shareholders do not have
different voting rights.
German law requires notification of real shareholding only if (i) the voting rights reach
a certain level or (ii) the voting rights exceed or fall below such certain level. “Certain
level” means, the certain percentages of voting rights owned: 3%, 5%, 10%, 15%, 20%,
25%, 30%, 50% and 75%. The chart below is based on the notifications that Daimler
received from the respective shareholders until August 31, 2014. Therefore, the figures
below may not reflect the exact shareholding on August 31, 2014. There may have been
changes in the shareholding previously notified that did not touch the above thresholds
and therefore did not need to be notified.
Under German law, for the purposes of the notifications mentioned above, treasury
shares are taken into account for the total number of voting shares although such voting
rights from treasury shares are suspended as long as the shares are held by the issuer.
In case of an investor with a multi-level structure, each company in the chain of
companies controlled by the investor is subject to the obligation to notify reaching,
exceeding or falling below the legal thresholds for significant shareholdings. If, for
instance, an investor acquires 3% of voting rights indirectly via a second-tier subsidiary,
the parent company, the subsidiary and the second-tier subsidiary must notify that they
have reached the 3%-threshold, although the investor does not hold 9% but only 3%,
effectively. This fact is indicated in the notification that must refer to the attribution of
voting rights held by subsidiaries.
The table below shows the number of ordinary shares held by major shareholders who
substantially hold at least 3% in total and their percentage of ownership as notified on
or before August 31, 2014. As there may have been changes in the notified
shareholding that did not touch the legal thresholds and therefore did not need to be
notified, the exact shareholding may have changed until August 31, 2014.
- 31 -
Identity of the Person or
Group
Address Shares owned Percent
Kuwait Investment
Authority as agent for the
Government of the State of
Kuwait
Ministries Complex,
AlMurqab, Kuwait
City, Kuwait
73,169,320 6.8%
BlackRock, Inc. 40 East 52nd
Street
New York, NY
10022, USA
61,006,517 5.7%1, 2
Renault S.A.
Nissan Motor Co. Ltd
13-15, Quai Alphonse
Le Gallo, 92100
Boulogne-Billancourt,
France
1-1, Takashima
1-chome, Nishi-ku,
Yokohama-shi,
Kanagawa 220-8686,
Japan
16,448,378
16,448,378
1.54%
1.54%
Sum of Renault S.A. and Nissan
Motor Co. Ltd 32,896,756 3.1%
3
The State of Norway Oslo, Norway 33,911,167 3.2%4
1) Based on the latest formal notification in August 2011.
2) In this table, we describe only the shareholding of BlackRock Inc. In 2012, we received several
notifications from other BlackRock companies. 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 5.32% 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. As we have no knowledge of the internal structure of the
BlackRock group, we cannot confirm, which shareholding of which BlackRock company is
attributed to which other BlackRock company.
3) Based on the formal notification referring to April 28, 2010.
4) Based on the formal notification referring to April 24, 2014.
From January 1, 2014 to June 30, 2014, Daimler received the following voting rights
notifications based on exceeding, reaching or falling below the notification thresholds
of 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75% for the holding of real shares (to
be distinguished from instruments only granting the right or enabling to acquire
shares):
In January 2014, Deutsche Bank AG notified us that its holding of Daimler shares rose
above the 3% threshold on January 27, 2014, and that it had once again dropped below
this threshold on January 28, 2014, at 0.02%.
Norges Bank, Oslo, and the Norwegian Ministry of Finance, in the name of and on
behalf of the State of Norway, informed us that the number of shares held by Norges
Bank had dropped below the notification threshold of 3% stipulated by Section 21 of
the German Securities Trading Act (WpHG) on April 7, 2014. On April 24, 2014, this
threshold was once again exceeded and the bank held 3.17% of the voting rights in
Daimler as per this date.
- 32 -
In April 2014, we also received notifications of voting rights from UBS AG, DekaBank
Deutsche Girozentrale, and Commerzbank AG. According to those notification, the
banks’ directly or indirectly held voting rights in Daimler had risen above the 3%
threshold in the run-up to our Annual Shareholders’ Meeting before dropping
significantly below this threshold again two weeks later.
Additional notifications received between January 1, 2014 and June 30, 2014 are based
on notification requirements for financial and other instruments granting a right to
acquire shares or just enabling to acquire them. For further details regarding such
notification requirements, please refer to I. Outline of the Legal and other Systems of
the Company’s Country of Incorporation, 1. Outline of the Corporate System, etc., (2)
The Corporate System as Provided for by Law and in the Articles of Incorporation of
the Company, (j) Disclosure of Shareholdings of the Securities Report filed on June 17,
2014.
Between July 1, 2014 and August 31, 2014, Daimler did not receive any voting rights
notifications.
2. Trends in Share Prices
The table below shows the highest and lowest stock prices for our ordinary shares on
Xetra, which stands for Exchange Electronic Trading, for each of the first six months of
the year. Xetra is an integrated electronic exchange system which is an integral part of
the Frankfurt Stock Exchange, the most significant of the German stock exchanges.
Month: Jan 14 Feb 14 Mar 14 Apr 14 May 14 June 14
Stock price per share
(in €)
Highest: 66.09 67.69 69.13 71.14 69.70 70.31
Lowest: 61.54 60.69 64.41 63.99 64.52 68.14
3. Directors and Officers
(a) The Supervisory Board
The following changes in the Supervisory Board have occurred since year-end 2013:
At the close of the Annual Meeting of Shareholders on April 9, 2014, the period of office
of Mr. Gerard Kleisterlee, Mr. Lloyd G. Trotter and Dr. h.c. Bernhard Walter ended as
members of the Supervisory Board representing the shareholders.
The Annual Meeting of Shareholders on April 9, 2014 elected Dr. Bernd Bohr, former
member of the Management Board of Robert Bosch GmbH, Joe Kaeser, Chairman of the
Board of Management of Siemens AG, and Dr. Bernd Pischetsrieder, Chairman of the
Supervisory Board of the Münchener Rückversicherungs-Gesellschaft,
Aktiengesellschaft in Munich, as members of the Supervisory Board representing the
shareholders effective as of the end of that Annual Meeting for the period until the end of
the Annual Shareholders’ Meeting that passes a resolution on the ratification of the
actions of the Boards for the year 2018, i. e. until 2019.
With effect as of May 1, 2014, Ergun Lümali succeeded Erich Klemm, who retired on
April 30, 2014, as a member of the Daimler Supervisory Board representing the
- 33 -
employees. Mr. Lümali was elected as the substitute member for Mr. Klemm in the
Supervisory Board election in March 2013. Mr. Lümali was born in Eskisehir, Turkey,
on August 1, 1962. He is Deputy Chairman of the General Works Council, Daimler
Group and Daimler AG, and Chairman of the Works Council Sindelfingen Plant,
Daimler AG.
(b) The Board of Management
The following changes in the Board of Management have occurred since year-end
2013:
In a Supervisory Board meeting on January 28, 2014, the contract of service of Andreas
Renschler as a member of the Board of Management was amicably terminated.
Responsibility for the Mercedes-Benz Vans division was allocated to Wilfried Porth.
Responsibility for Manufacturing and Procurement Mercedes-Benz Cars was allocated
to Dr. Dieter Zetsche until further notice.
In the Supervisory Board meeting on February 18, 2014, Bodo Uebber was reappointed
as Member of the Board of Management of Daimler AG with responsibility for the area
of “Finance & Controlling/Daimler Financial Services” for a further five years as of
January 1, 2015.
(c) Compensation of the Supervisory Board and Board of Management
For information on the compensation of the Supervisory Board and the Board of
Management please refer to the statements as disclosed in the Securities Report filed on
June 17, 2014, especially described under ‘‘(c) Compensation of the Supervisory Board
and Board of Management’’ in section “V. Description of the Company”, subsection “4.
Directors and Officers.”
- 34 -
VI. Conditions of Accounting
The unaudited condensed consolidated financial statements, prepared according to
IFRS, and additional explanations required under Japanese law have been omitted.
They are included on pages 39 to 88 of the original Japanese version.
VII. Trends in the Foreign Exchange Rate
Omitted because the foreign exchange rates between Yen and Euro, the currency used
in the Company's financial statements, have been published for the first six months of
the year in more than one Japanese newspaper concerning current events.
VIII. Reference Information
The following documents have been filed since the commencement of the relevant half
financial year up to the filing date of this Semi-Annual Report.
a) Securities Report and its attachments filed with the Director General of the Kanto
Local Finance Bureau on June 17, 2014.
(For the financial year from January 1, 2013 through December 31, 2013)
b) Extraordinary Report
Extraordinary Report filed with the Director General of the Kanto Local Finance
Bureau on February 12, 2014 (pursuant to Article 24-5, Paragraph 4 of the
Financial Instruments and Exchange Act of Japan and Article 19, Paragraph 2,
Item 9 of the Cabinet Office Ordinance Concerning Disclosure of the Contents,
etc. of Companies).
c) Amendment
An Amendment Report (an amendment report to the Extraordinary Report filed
with the Director General of the Kanto Local Finance Bureau on April 26, 2013)
filed with the Director General of the Kanto Local Finance Bureau on February 27,
2014.
d) Securities Registration Statement
Not applicable.
e) Amendment to the Shelf Registration Statement
Not applicable.
- 35 -
PART 2. INFORMATION REGARDING GUARANTORS, ETC. OF ISSUER
Not applicable.