Financial position, liquidity and capital resources

The balance sheet total of €99.4 billion is €17.8 billion lower than at the end of 2018. Table B.38 shows the balance sheet of Daimler AG at December 31, 2019 compared with the balance sheet before the hive-down to Mercedes-Benz AG and Daimler Truck AG (December 31, 2018) and after the hive-down (January 1, 2019).

B.38 Balance sheet structure of Daimler AG

  Dec. 31,
2019
Jan. 1,
20191
Dec. 31,
2018
in millions of euros      
       
Assets      
Non-current assets 57,214 50,973 55,092
Inventories - 1 10,524
Receivables, securities and other assets 38,925 35,437 44,784
Cash and cash equivalents 2,942 4,819 6,354
Current assets 41,867 40,257 61,662
Prepaid expenses 285 300 406
  99,366 91,530 117,160
       
Equity and liabilities      
Share capital 3,070 3,070 3,070
(conditional capital €500 million)      
Capital reserve 11,480 11,480 11,480
Retained earnings 22,541 25,182 25,182
Distributable profit 963 3,477 3,477
Equity 38,054 43,209 43,209
Provisions for pensions and similar obligations 94 123 838
Other provisions 1,511 2,136 15,595
Provisions 1,605 2,259 16,433
Trade payables 227 428 7,210
Other liabilities 59,474 45,634 49,232
Liabilities 59,701 46,062 56,442
Deferred income 6 0 1,076
  99,366 91,530 117,160

1 Amounts following the hive-down. Deviations from the hive-down balance sheet (published in the hive-down report of May 22, 2019) are the result of subsequent adjustments in accordance with the hive-down agreement.

Non-current assets increased during the year by €2.1 billion to €57.2 billion, caused by the €12.9 billion increase in financial assets, which resulted in particular from corporate restructuring within the framework of “Project Future.” The increase also reflects a capital contribution at the subsidiary LEONIE FS DVB GmbH and the acquisition within the Group of Mercedes-Benz Bank AG from Daimler Mobility AG. The decreases of €9.3 billion in property, plant and equipment and of €1.5 billion in intangible assets are mainly due to corporate restructuring within the framework of “Project Future.”

Receivables, securities and other assets decreased compared with December 31, 2018 by €5.9 billion to €38.9 billion. This development mainly reflects a decrease of €9.3 billion from the hive-downs for corporate restructuring within the framework of “Project Future.” Furthermore, other securities decreased by €1.1 billion and other assets decreased by €1.1 billion in 2019, primarily due to lower tax-refund claims. On the other hand, receivables due from subsidiaries increased by €5.6 billion.

Cash and cash equivalents decreased from €6.4 billion to €2.9 billion. The decrease includes a transfer of €1.5 billion as part of corporate restructuring within the framework of “Project Future.”

Gross liquidity – defined as cash and cash equivalents and other marketable securities as well as fixed-term deposits presented under other assets – decreased by €4.7 billion to €9.6 billion on the balance sheet date. The reasons for the decrease in gross liquidity include the hive-downs for corporate restructuring within the framework of "Project Future" in an amount of €1.5 billion and the reduction in other securities of €1.1 billion in 2019.

Cash provided by operating activities amounted to €6.8 billion in 2019 (2018: €13.8 billion). The decrease resulted in particular from lower dividend distributions from subsidiaries and the end of cash flows from operations in the vehicle business. Another factor is that the amount for the previous year includes positive effects from trade receivables and payables with German and foreign companies of the Group and with external companies, which are no longer effective at Daimler AG due to the hive-down.

Cash flows from investing activities resulted in a net cash outflow of €7.6 billion in 2019 (2018: €14.7 billion). The decrease is due in particular to the end of investments by Daimler AG in intangible assets and property, plant and equipment, caused by the hive-down of business operations to Mercedes-Benz AG and Daimler Truck AG. Compared with the previous year, there were also lower cash outflows in the area of financial assets from corporate restructuring within the framework of “Project Future.” Furthermore, there were positive effects from acquisitions and disposals of securities conducted in the context of liquidity management.

Cash flows from financing activities resulted in a net cash outflow of €2.6 billion (2018: inflow of €5.5 billion). The change is explained by higher receivables from the financing of subsidiaries and the lower increase in liabilities from the Group's internal transactions in connection with central financial and liquidity management. On the other hand, a cash inflow resulted in 2019 from higher external financing liabilities. Cash flows from financing activities include the payment of the dividend for the year 2018 in an amount of €3.5 billion.

Equity decreased in 2019 by €5.2 billion to €38.1 billion, primarily reflecting the decrease in distributable profit due to the dividend payment for 2018. In addition, €2.6 billion was transferred from retained earnings in 2019. The equity ratio at December 31, 2019 was 38.3 % (December 31, 2018: 36.9 %). Daimler AG holds no treasury shares at December 31, 2019.

Provisions decreased compared with December 31, 2019 by €14.8 billion to €1.6 billion. This was mainly the result of the transfer of provisions of €14.7 billion from Daimler AG to Mercedes-Benz AG and Daimler Truck AG as part of the corporate restructuring within the framework of “Project Future.” On the other hand, additional provisions were recognized of €0.5 billion for internal derivatives in connection with the hive-down.

The reduction was also caused by provisions for taxes and personnel and social provisions. There was an opposing effect from increases in provisions for derivative financial instruments.

Provisions for pensions and similar obligations amounted to €0.1 billion at December 31, 2019 (2018: €0.8 billion). The decrease is almost solely attributable to the transfer of pension obligations and special-purpose assets to Mercedes-Benz AG and Daimler Truck AG.

Liabilities increased by €3.3 billion to €59.7 billion. This was primarily due to the increase of €11.9 billion in liabilities to subsidiaries, which is mainly due to losses transferred from subsidiaries. In addition, bonds and other debt instruments were issued in an amount of €1.5 billion. On the other hand, liabilities decreased by €10.4 billion due to the hive-downs for corporate restructuring within the framework of “Project Future.”

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