Annual Report 2020

Profitability

The profitability of Daimler AG in the 2020 financial year was affected by significantly higher financial income and improved operating profit. (See table B.34)

B.34 Condensed income statement of Daimler AG

2020 2019
In millions of euros
Revenue 1,685 2,019
Cost of sales -1,641 -1,959
General administrative expenses -928 -964
Other operating income/expense 280 -272
Operating profit -604 -1,176
Financial income/expense 2,878 -546
Income taxes -141 44
Net profit/loss 2,133 -1,678
Transfer to/from retained earnings -689 2,641
Distributable profit 1,444 963

Daimler AG generated revenue of €1.7 billion primarily from the provision of services to companies of the Group (2019: €2.0 billion). The decrease in revenue was the result of providing a lower volume of services to the companies of the Group, due to short-time working and efficiency measures.

Cost of sales comprises the services provided to Group companies to generate sales revenue and decreased to €1.6 billion (2019: €2.0 billion).

General administrative expenses amounted to €0.9 billion (2019: €1.0 billion), including expenses of €0.1 billion from ongoing programs for the optimization of personnel costs. The prior-year figure takes into consideration costs in connection with “Project Future” of €0.2 billion.

Other operating income amounted to €0.3 billion (2019: expense of €0.3 billion) and primarily comprises income from the sale of patents in connection with combining the Group-wide fuel-cell activities and relating to Group-internal derivatives of the vehicle business.

Financial income increased by €3.4 billion to €2.9 billion, primarily due to higher income from investments in subsidiaries and associated companies. This was the result of a positive development with profit transfers from subsidiaries.

The income tax expense amounted to €0.1 billion (2019: €0.0 billion).

Net profit amounts to €2.1 billion (2019: net loss of €1.7 billion) and is thus in line with the expectation stated in the Outlook chapter of Annual Report 2019.

The economic situation of Daimler AG in its function as a management holding company mainly depends on the development of its subsidiaries. Daimler AG participates in the operating results of its subsidiaries through dividend distributions and profit-and-loss transfers. Its economic situation therefore corresponds with that of the Daimler Group, which is described in the chapter »Overall Assessment of the Economic Situation«.

Daimler AG
Financial position, liquidity and financial resources