Daimler Annual Report 2011 - Alle jaarverslagen

3 | Management Report | Daimler AG
Research and development expenses, which are included
in cost of sales, rose from €4.2 billion to €4.8 billion; as
a proportion of revenue, it increased from 6.7% to 6.9%. The
increase was primarily caused by the renewal of the product
portfolio, especially with regard to the S-, C-, E-, A-, B-Class
and the smart, as well as investment in the development
of powertrains. In addition, work was further intensified on
research and development projects for alternative drive technologies
(hybrid, electric drive and fuel cells). At the end of
the year, approximately 17,000 people were employed in
the area of research and development.
Selling expenses increased to €5.7 billion in 2011 (2010:
€4.9 billion). The increase was caused by the higher volume of
business and the related higher expenses for purchased
services, as well as higher shipping, commission and IT costs.
General administrative expenses increased by 11.3% to
€2.4 billion (2010: €2.2 billion). This development was mainly
the result of higher expenses for IT services and consulting.
Another factor is that personnel expenses increased, primarily
due to the end of reduced working time.
Receivables, securities and other assets increased compared
with December 31, 2010 by €0.7 billion to €26.8 billion.
This was primarily caused by other assets (plus €0.5 billion),
securities held as current assets (plus €0.4 billion) and receivables
from associated companies (plus €0.4 billion). There
was an opposing effect from a decrease in receivables from
subsidiaries in the context of the Group’s central financial
and liquidity management (minus €0.7 billion). Cash and cash
equivalents decreased by €0.9 billion to €4.8 billion.
Gross liquidity – defined as cash and cash equivalents and
other marketable securities – of €6.5 billion was slightly lower
than a year earlier.
Cash provided by operating activities amounted to €4.0
billion in 2011 (2010: €6.7 billion) and was mainly affected by
the substantial net income. The main opposing effects were
from the increase in trade receivables related to the higher unit
sales. An additional factor is that significantly higher contributions
were made to the pension fund.
Other operating income improved by €0.4 billion to €1.3
billion. The main reasons for this were the increased income
from recharged costs and the gain realized on currency translation.
Furthermore, expenses for donations and foundations
decreased.
3.41
Condensed statement of income of Daimler AG
In millions of euros
2011 2010
The income tax expense amounts to €0.7 billion and
primarily comprises the tax expense for the year 2011.
Financial position, liquidity and capital resources
Compared with December 31, 2010, the balance sheet
total increased slightly to €78.7 billion.
Non-current assets increased by €1.5 billion to €40.6 billion
during 2011. This was primarily the result of increased investments
in associated companies and was mainly related to
a capital contribution to Engine Holding GmbH to finance the
acquisition of shares in Tognum AG. Capital expenditure
on property, plant and equipment (excluding leased assets
of approximately €2.3 billion) mainly constituted investment
for the production of the new B-, S- and SL-Class, as well
as investments in engine and transmission projects.
Revenue 69,486 63,002
Cost of sales (including R&D expenses) -59,562 -54,241
Selling expenses -5,655 -4,907
General administrative expenses -2,443 -2,194
Other operating income 1,309 923
Operating profit 3,135 2,583
Financial income 2,323 3,024
Profit on ordinary activities 5,458 5,607
Extraordinary income - 254
Income taxes -701 -462
Net income 4,757 5,399
Transfer to retained earnings -2,378 -2,699
Distributable profit 2,379 2,700
Inventories increased compared with a year earlier by €0.8
billion to €6.3 billion, mainly of work in progress and
finished goods, and relating to our higher production volumes.
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