Financial Position

The balance sheet total increased compared with December 31, 2018 from €281.6 billion to €302.4 billion; the increase includes effects from currency translation of €3.1 billion. Adjusted for the effects of currency translation, the increase amounts to €17.7 billion. Daimler Mobility accounts for €174.8 billion of the balance sheet total (2018: €165.3 billion), equivalent to 58 % of the Daimler Group’s total assets (2018: 59 %).

The increase in total assets primarily reflects the higher volume of the financial services business as well as increased cash and cash equivalents. In addition, the recognition and measurement of right-of-use assets due to changed lessee accounting led to an increase in property, plant and equipment (see Note 11 of the Notes to the Consolidated Financial Statements). On the liabilities side of the balance sheet, there were increases primarily in financing liabilities (including liabilities from lease contracts) and provisions, while equity decreased compared with December 31, 2018. Table B.35 shows the condensed statement of financial position for the Group as well as for the industrial business and Daimler Mobility.

B.35 Condensed statement of financial position

  Consolidated Industrial Business Daimler Mobility
  2019 At December 31, 2018 2019 At December 31, 2018 2019 At December 31, 2018
In millions of euros            
             
Assets            
Intangible assets 15,978 14,801 15,077 13,913 901 888
Property, plant and equipment 37,143 30,948 36,782 30,859 361 89
Equipment on operating leases 51,482 49,476 18,799 18,509 32,683 30,967
Receivables from financial services 103,661 96,740 -88 -90 103,749 96,830
Equity-method investments 5,949 4,860 4,842 4,651 1,107 209
Inventories 29,757 29,489 28,420 28,096 1,337 1,393
Trade receivables 12,332 12,586 11,045 10,545 1,287 2,041
Cash and cash equivalents 18,883 15,853 16,152 12,799 2,731 3,054
Marketable debt securities and similar investments 8,655 9,577 7,522 8,364 1,133 1,213
thereof current 7,885 8,855 7,420 8,362 465 493
thereof non-current 770 722 102 2 668 720
Other financial assets 6,083 5,733 -13,283 -12,719 19,366 18,452
Other assets 12,515 11,025 2,349 1,376 10,166 9,649
Assets held for sale 531 531
Total assets 302,438 281,619 127,617 116,303 174,821 165,316
             
Equity and liabilities            
Equity 62,841 66,053 47,858 53,243 14,983 12,810
Provisions 30,652 22,955 29,473 21,942 1,179 1,013
Financing liabilities 161,780 144,902 13,289 4,771 148,491 140,131
thereof current 62,601 56,240 -21,218 -20,993 83,819 77,233
thereof non-current 99,179 88,662 34,507 25,764 64,672 62,898
Trade payables 12,707 14,185 11,896 13,395 811 790
Other financial liabilities 9,864 10,032 6,224 5,888 3,640 4,144
Contract and refund liabilities 13,631 12,519 13,239 12,146 392 373
Other liabilities 10,963 10,761 5,638 4,918 5,325 5,843
Liabilities held for sale 212 212
Total equity and liabilities 302,438 281,619 127,617 116,303 174,821 165,316

Current assets account for 42 % of the balance sheet total, which is below the prior-year level (2018: 43 %). Current liabilities amount to 35 % of total equity and liabilities, which is at the prior-year level. Graphic B.36 shows the structure of the balance sheet by maturity.

Daimler AR2019 B.36 balance sheet structure daimler group

Intangible assets of €16.0 billion (2018: €14.8 billion) include €12.5 billion of capitalized development costs (2018: €11.3 billion), €1.7 billion of franchises, industrial property and similar rights (2018: €2.0 billion) and €1.2 billion of goodwill (2018: €1.1 billion). The Mercedes-Benz Car division accounts for 85 % (2018: 81 %) of the development costs while the Mercedes-Benz Vans division accounts for 8 % (2018: 10 %) and the Daimler Trucks division accounts for 6 % (2018: 8 %). Capitalized development costs amount to €3.1 billion in 2019 (2018: €2.5 billion) and account for 32 % of the Group’s total research and development expenditure (2018: 28 %).

Property, plant and equipment increased to €37.1 billion (2018: €30.9 billion). Due to the application of single lessee accounting according to IFRS 16 as of January 1, 2019, right-of-use assets of €4.2 billion are included in property, plant and equipment. In 2019, €7.2 billion was invested worldwide (2018: €7.5 billion), in particular at our production and assembly sites for new products and technologies and for the expansion and modernization of production facilities. The sites in Germany accounted for €4.4 billion of the capital expenditure (2018: €4.4 billion).

Equipment on operating leases and receivables from financial services rose to a total of €155.1 billion (2018: €146.2 billion). The increase adjusted for currency-translation effects of €6.5 billion was primarily caused by the higher level of new business at Daimler Mobility; contract volume increased in North and South America, Europe and Asia. The leasing and sales-financing business as a proportion of 51 % of total assets was below the prior-year level (2018: 52 %).

Equity-method investments increased to €5.9 billion (2018: €4.9 billion). The increase is mainly due to the merger of the mobility services of Daimler Group and BMW Group and the resulting first-time consolidation of five operating joint ventures, which were merged into YOUR NOW Holding GmbH at the end of 2019 (see Note 13 of the Notes to the Consolidated Financial Statements). Furthermore, they mainly comprise the carrying amounts of our equity interests in Beijing Benz Automotive Co., Ltd., BAIC Motor Corporation Ltd. and There Holding B.V.

Inventories increased slightly from €29.5 billion to €29.8 billion, equivalent to 10 % of total assets, and were thus at the prior-year level. While inventories at the Mercedes-Benz Cars division increased mainly due to model changes and the launch of new models, inventories at the Daimler Trucks and Mercedes-Benz Vans divisions were reduced to below the prior-year level.

Trade receivables of €12.3 billion are below the prior-year level of €12.6 billion. The Mercedes-Benz Cars division accounts for 53 % of these receivables (2018: 45 %), the Daimler Trucks division accounts for 23 % (2018: 25 %) and the Mercedes-Benz Vans division accounts for 9 % (2018: 8 %).

Cash and cash equivalents increased compared with the end of 2018 by €3.0 billion to €18.9 billion.

Marketable debt securities and similar investments de­creased compared with December 31, 2018 from €9.6 billion to €8.7 billion. Those assets include the debt instruments that are allocated to liquidity, most of which are traded in active markets. They generally have an external rating of A or better.

Other financial assets of €6.1 billion are above the prior-year level (2018: €5.7 billion). They primarily consist of equity and debt instruments, investments in non-consolidated subsidiaries, derivative financial instruments, and loans and other receivables due from third parties.

Other assets of €12.5 billion (2018: €11.0 billion) primarily comprise deferred tax assets and tax refund claims. The increase is mainly due to deferred tax assets on tax loss carryforwards.

The Group’s equity decreased compared with December 31, 2018 from €66.1 billion to €62.8 billion. Positive effects in equity resulted from the net profit of €2.7 billion and the effects of currency translation of €0.5 billion. This was more than offset by the dividend of €3.5 billion paid out to Daimler’s shareholders, the effect of remeasurement of derivative financial instruments not recognized in profit or loss of €0.5 billion, and actuarial losses from defined-benefit pension plans recognized in retained earnings of €2.2 billion. Equity attributable to the shareholders of Daimler AG accordingly decreased to €61.3 billion (2018: €64.7 billion).

While the balance sheet total increased, equity decreased compared with the previous year. The Group’s equity ratio of 20.5 % was therefore below the level at the end of 2018 (22.2 %); the equity ratio for the industrial business was 36.7 % (2018: 42.8 %). It is necessary to consider the fact that the equity ratios at the end of 2018 and 2019 are adjusted for the paid and proposed dividend payments.

Provisions increased significantly from €23.0 billion to €30.7 billion; as a proportion of the balance sheet total, they were above the prior-year level at 10 % (2018: 8 %). They primarily comprise provisions for pensions and similar obligations of €9.7 billion (2018: €7.4 billion), which mainly consist of the difference between the present value of defined-benefit pension obligations of €36.2 million (2018: €31.7 billion) and the fair value of the pension-plan assets applied to finance those obligations of €27.8 billion (2018: €25.5 billion). The decrease in discount rates led to an increase in the present value of the defined-benefit pension obligations. This effect was only partially offset by a positive interest rate development for plan assets. Provisions also relate to liabilities for product warranties of €8.7 billion (2018: €7.0 billion), for personnel and social costs of €4.2 billion (2018: €4.3 billion), for liability risks, litigation risks and regulatory proceedings of €4.9 billion (2018: €2.1 billion), as well as other provisions of €3.1 billion (2018: €2.1 billion). The reassessment of risks especially at the Mercedes-Benz Cars and Mercedes-Benz Vans divisions led to an increase in provisions for product warranties and for liability risks, litigation risks and regulatory proceedings. The increase relates to ongoing governmental and legal proceedings and measures taken with regard to Mercedes-Benz diesel vehicles in several regions and markets, as well as an updated risk assessment for an extended recall of Takata airbags. The increase in other provisions is mainly due to the review and prioritization of the product portfolio at the Mercedes-Benz Vans division.

Financing liabilities of €161.8 billion were above the level of the previous year (2018: €144.9 billion). The increase, adjusted for exchange-rates effects, of €14.9 billion was primarily due to the refinancing of the growing leasing and sales-financing business and higher leasing liabilities of €3.9 billion caused by the application of single lessee accounting according to IFRS 16. 53 % of the financing liabilities were accounted for by bonds, 25 % by liabilities to financial institutions, 9 % by liabilities from ABS transactions and 8 % by deposits in the direct banking business.

Trade payables decreased compared with the prior year to €12.7 billion (2018: €14.2 billion). The Mercedes-Benz Cars division accounts for 64 % (2018: 60 %) of those payables, the Daimler Trucks division accounts for 20 % (2018: 24 %) and the Mercedes-Benz Vans division accounts for 7 % (2018: 7 %).

Other financial liabilities were nearly unchanged at €9.9 billion (2018: €10.0 billion) and mainly consist of liabilities from residual-value guarantees, liabilities from wages and salaries, deposits received and accrued interest on financing liabilities.

Contract and refund liabilities of €13.6 billion are higher than a year earlier (2018: €12.5 billion). They mainly comprise deferred revenue from service and maintenance contracts as well as extended warranties and obligations from sales in the scope of IFRS 15. Higher revenues from service and maintenance contracts and extended warranties mainly led to the increase in contract and refund liabilities.

Other liabilities of €11.0 billion (2018: €10.8 billion) primarily comprise deferred taxes, tax liabilities and deferred income.

Further information on the assets presented in the statement of financial position and on the Group’s equity and liabilities is provided in the »Consolidated Statement of Financial Position« (see table F.03), the »Consolidated Statement of Changes in Equity« (see table F.05) and the related notes in the Notes to the Consolidated Financial Statements.

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