Annual Report 2020

Profitability, Liquidity and Capital Resources, Financial Position

To provide a better insight into the Group’s profitability, liquidity and capital resources, and financial position, the condensed statement of income, the condensed statement of cash flows and the condensed statement of financial position are shown for the Daimler Group as well as for the “Industrial Business” and “Daimler Mobility”. The industrial business and Daimler Mobility columns represent a business point of view. The industrial business comprises the vehicle segments Mercedes-Benz Cars & Vans and Daimler Trucks & Buses. Daimler Mobility is identical to the Daimler Mobility segment. Intra-Group eliminations between the industrial business and Daimler Mobility are generally allocated to the industrial business.

Change in the internal management and reporting structure as of January 1, 2020

Until December 31, 2019, the Group’s reportable segments were Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Mobility. Since January 1, 2020, the Group’s activities are divided into the segments Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks & Buses and Daimler Mobility. The Mercedes-Benz Cars and Mercedes-Benz Vans segments are aggregated due to their comparable long-term average return on sales as well as their comparable revenue development and capital intensity. In addition, both segments are comparable with regard to the nature of the products and services offered as well as their brands, sales channels and customer profiles.

In order to provide a more transparent presentation of the ongoing business, adjusted figures for both the Group and the segments are also calculated and reported since December 31, 2019. The adjustments include individual items where they lead to material effects in a reporting year. These individual items may relate in particular to legal proceedings and associated measures, restructuring measures and M&A transactions. Further information on the management system can be found in the chapter »Corporate Profile section« of the Combined Management Report.

Adjustment of prior-year figures

In order to ensure that the figures for 2020 are comparable with the prior-year figures, the figures for 2019 have been adjusted to the new segment structure. Internal supply relationships within the new segments have been taken into account. Furthermore, in the figures for the previous year, the effects of certain legal issues and equity investments not previously allocated to the segments have been reclassified from the reconciliation to the vehicle segments.

As of the 2020 financial year, the effects of capitalized borrowing costs are recognized in EBIT and in the Group’s assets and the assets of the segments. As a result, EBIT is reported as an accounting parameter in the consolidated statement of income from the 2020 financial year onwards. In order to ensure comparability of the figures for the 2020 financial year with those of the previous year, the reported figures for 2019 have been adjusted accordingly.

Investment and research activities