Daimler Annual Report 2011 - Alle jaarverslagen

3.15
Return on equity
In %
30
25
20
15
10
5
0
3.16
Daimler Financial Services
2008
2009
2010
2011
With EBIT of €162 million, the Daimler Buses division did
not match the high level of earnings it achieved in the prior
year (2010: €215 million). Its return on sales was 3.7%
(2010: 4.7%). 3.14
This earnings development is due to lower unit sales of complete
buses in Western Europe and North America, especially in
the city-bus segment, in which demand decreased. Higher prices
due to the influence of inflation in Latin America also had
a negative impact on EBIT. The division’s earnings were positively
affected by higher shipments of bus chassis in Latin America
(including Mexico) and by exchange-rate effects.
Daimler Financial Services significantly surpassed its
earnings of the prior year with EBIT of €1,312 million in 2011
(2010: €831 million). The division’s return on equity was
25.5% (2010: 16.1%). 3.15
Value Added = Profit Measure –
3.17
Cost of
Net Assets x
Capital (%)
Cost of Capital
The improvement in earnings was mainly caused by lower
provisions for risks, improved refinancing conditions and an
increased contract volume. On the other hand, earnings were
negatively affected by ongoing expenditure related to the
realignment of business activities in Germany; in the prior year,
that had resulted in an extraordinary expense of €82 million.
A supplementary factor in 2011 was that additional allowances
for bad debts had to be recognized in connection with the
natural disaster in Japan. In the prior year, the disposal of nonautomotive
assets resulted in an expense of €9 million.
Value
Added
Return on Net Assets Cost of
= x
– x
Sales Productivity Capital (%)
Net Assets
The reconciliation of the divisions’ EBIT to Group EBIT comprises
our proportionate share of the results of our equitymethod
investment in EADS, other gains and/or losses at the
corporate level, and the effects on earnings of eliminating
intra-group transactions between the divisions.
3.18
Cost of capital
In percent
2011 2010
Group, after taxes 8 8
Industrial divisions, before taxes 12 12
Daimler Financial Services, before taxes 13 13
Daimler’s proportionate share of the net profit of EADS
amounted to income of €143 million (2010: expense of €261
million). The prior-year loss posted by EADS was mainly due
to additional provisions recognized in connection with the
A400M military transport aircraft.
In addition, an expense at corporate level of €588 million
was recognized (2010: income of €21 million). In 2011, amongst
others, this was related to litigation and the impairment of
Daimler’s equity interest in Renault (€110 million). Due to the
sharp drop in the stock-exchange price of Renault shares
at the end of the third quarter, the shareholding had to be
impaired to its fair value.
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