Mercedes-Benz Group AG | Annual Report 2019

Annual Financial Statements 2019

Daimler AG

Cover photo

VISION EQS provides a preview of future large electric

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are convinced that perfect craf smanship, emotive

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sure will remain desirable in the future. Because the

idea of luxury – today and in the future – stands above

all for personal freedom. With the VISION EQS techno-

logy carrier, Mercedes-Benz is focusing on a comple-

tely new, fully variable battery-electric drive platform.

It is scalable in many respects and can be used across

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ponents, especially the batteries, are variable and thus

suitable for a broad range of vehicle concepts.

Daimler AG

Annual Financial Statements 2019

The Management Report of Daimler AG is combined with the Group Management

Report in accordance with Section 315 Subsection 5 of the German Commercial

Code (HGB) and is published in the Daimler Group’s Annual Report 2019.

The Annual Financial Statements and the combined Management Report

for Daimler AG and the Daimler Group for the year 2019 are ﬁled with the operator

of the German Federal Gazette and published in the German Federal Gazette.

The Annual Financial Statements of Daimler AG and the Daimler Group’s Annual

Report 2019 can be found on our website at

reports-news/.

_wwww.daimler.com/investors/

ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | CONTENTSꢀ 5

Contents

Aꢁ| Balance Sheet of Daimler AG

6

7

Other Notes

24 – 51

Personnel expenses/Employees

Cost of materials

24

25

Bꢁ| Income Statement of Daimler AG

Derivative ﬁnancial instruments and

valuation units

Contingent liabilities

Subsequent liability

Other ﬁnancial obligations

Related party relationships pursuant to

Section 285 No. 21 of the German

Commercial Code (HGB)

Events af er the reporting period

Legal proceedings

Cꢁ| Notes to the Financial Statements

of Daimler AG

25

27

28

8 –ꢁ13

Accounting policies and methods

Recognition and measurement

Schedule of non-current assets

8

10

12

28

29

Notes to the Balance Sheet

14 – 20

Remuneration of the members of the Board

of Management and the Supervisory Board

Disclosures pursuant to

Sectionꢁ160 Subsectionꢁ1 No. 8 of the

German Stock Corporation Act (AktG)

Declaration of compliance with the German

Corporate Governance Code

Members of the Board of Management

and their mandates

Intangible assets

Property, plant and equipment

Financial assets

Inventories

Receivables and other assets

Securities

Cash and cash equivalents

Prepaid expenses

Equity

14

15

16

17

18

19

20

33

34

35

36

Members of the Supervisory Board

and their mandates

Statement of investments

Dividend

38

41

Share-based payment

Provisions for pensions and similar obligations

Other provisions

Liabilities

Deferred income

Dꢁ| Board of Management

52

53

Eꢁ| Responsibility Statement

Fꢁ| Independent Auditor’s Report

Notes to the Income Statement

21 – 23

Revenue

Functional costs

Other operating income

Other operating expenses

Income/expense from investments in subsidiaries

and associated companies, net

Interest income/expense, net

Other ﬁnancial income/expense, net

Income taxes

21

22

54 – 58

22

23

Net loss (previous year: net proﬁt)

6ꢀ A | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | BALANCE SHEET OF DAIMLER AG

Balance Sheet of Daimler AG

Assets

Notes

Dec. 31, 2019

Dec. 31, 2018

In millions of euros

Non-current assets

Intangible assets

(1)

(2)

(3)

58

230

56,926

1,587

9,528

Property, plant and equipment

Financial assets

43,977

55,092

5

7,214

Current assets

Inventories

(4)

(5)

(6)

(7)

-

10,524

2,781

29,817

4,908

7,278

6,354

61,662

Trade receivables

69

Receivables from subsidiaries

Other receivables and other assets

Securities

30,644

2,047

6,165

2,942

Cash and cash equivalents

4

1,867

Prepaid expenses

(8)

285

406

9

9,366

117,160

Equity and liabilities

Notes

(9a)

Dec. 31, 2019

3,070

Dec. 31, 2018

3,070

In millions of euros

Equity

Share capital

(conditional capital €500 million)

Capital reserve

(9b)

(9c)

(9d)

11,480

22,541

963

11,480

25,182

3,477

Retained earnings

Distributable proﬁt

3

8,054

43,209

Provisions

Provisions for pensions and similar obligations

Other provisions

(10)

(11)

94

1,511

,605

838

15,595

16,433

1

Liabilities

Trade payables

Liabilities to subsidiaries

Other liabilities

(12)

227

29,978

29,496

7,210

18,838

30,394

56,442

5

9,701

Deferred income

(13)

6

1,076

9

9,366

117,160

B | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | INCOME STATEMENT OF DAIMLER AGꢀ 7

Income Statement of Daimler AG

Notes

2019

2018

In millions of euros

Revenue

Cost of sales

(14)

(15)

2,019

-1,959

112,491

-ꢁ103,232

Gross profit

Selling expenses

60

-

-964

88

-360

-426

-24

-96

44

9,259

-ꢁ7,904

-ꢁ2,304

1,372

(15)

(16)

(17)

(18)

(19)

(20)

(21)

General administrative expenses

Other operating income

Other operating expenses

-ꢁ1,664

11,337

-ꢁ4,202

183

Income/expense from investments in subsidiaries and associated companies, net

Interest income/expense, net

Other ﬁnancial income/expense, net

Income taxes

-ꢁ1,055

Profit after taxes/ Net loss (previous year: net profit)

Withdrawals from retained earnings (previous year: transfer to retained earnings)

Distributable profit

(22)

-1,678

2,641

963

5,022

-ꢁ1,545

3,477

8ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG

Notes to the Financial Statements of Daimler AG

Accounting policies and methods and changes

in the corporate structure

Furthermore, at the Annual Shareholders’ Meeting on May 22,

019, Article 2 of the Articles of Incorporation of Daimler AG,

in which the object of the company is stated, was amended.

The amendment was entered into the commercial register on

2

Daimler AG is entered in the Commercial Register of the

Stuttgart District Court under No. HRBꢁ19360 and its registered July 18, 2019.

oﬃce is located at Mercedesstraßeꢁ137, 70372 Stuttgart,

Germany.

The ﬁnancial statements of Daimler AG have been prepared in

accordance with the accounting principles of the German

Commercial Code (HGB) and the German Stock Corporation Act

(AktG); the amounts shown are in millions of euros (€) and the

comparable ﬁgures for the year ended December 31, 2018 are

also shown.

On May 22, 2019, within the framework of “Project Future”,

the Annual Shareholders’ Meeting of Daimler AG voted with

9

9.75% of the votes cast to hive-down assets and liabilities of

the Mercedes-Benz Cars and Mercedes-Benz Vans divisions

and of the Daimler Trucks and Daimler Buses divisions into

two legally independent entities. The hive-down took place in

accordance with Section 123 Subsection 3 No. 1 of the Ger-

man Transformation Act (UmwG) into Mercedes-Benz AG and

Daimler Truck AG. The hive-down is based on the hive-down

agreement concluded between Daimler AG, Mercedes-Benz

AG and Daimler Truck AG on March 25, 2019. The hive-down

Due to the substantial scope of the hive-downs to Mercedes-

Benz AG and Daimler Truck AG, the ﬁgures for the 2019 ﬁnan-

cial year of Daimler AG are not comparable with the prior-year

ﬁgures. For better comparability, additional information is

therefore provided on the individual items of the balance sheet

and income statement. The comparability of the prior-year

became eﬀective upon being entered in the commercial regis- ﬁgures is to be established as if the hive-downs had already

ter of Daimler AG on October 31, 2019 (“completion date”). taken place in the previous year. The adjusted ﬁgures for the

When the hive-down became eﬀective, the assets to be trans- previous year are indicated below as “adjusted.”

ferred as deﬁned in the hive-down agreement were trans-

ferred to Mercedes-Benz AG and Daimler Truck AG under civil The following table shows a comparison of the balance sheet

law by way of partial universal succession at their carrying

amounts. The transfer of assets had a retroactive ﬁnancial

eﬀect as of the hive-down date of January 1, 2019. In addi-

tion, when the hive-down became eﬀective, further assets

and liabilities as deﬁned by the agreements concluded

between Daimler AG and Mercedes-Benz AG and Daimler

Truck AG within the hive-down agreement were transferred to

Mercedes-Benz AG and Daimler Truck AG, respectively.

of Daimler AG before (December 31, 2018) and af er (January

1, 2019) the hive-down to Mercedes-Benz AG and Daimler

Truck AG.

The items summarized in the balance sheet and the income

statement are listed individually and explained in these notes.

For the sake of clarity, the system of presentation has been

modiﬁed in accordance with Section 266 of the HGB. Other

receivables and other assets comprise receivables from

associated companies and other assets. Other provisions com-

prise provisions for taxes and miscellaneous provisions. Other

As of the hive-down taking eﬀect, Daimler AG acts as an

operational management holding company and provides ser-

vices to the Group companies. As the parent company, it also

decides on the Group’s strategy, decides on matters of strate- liabilities comprise liabilities to associated companies, loans

gic importance for business operations, and ensures regula-

tory, legal and compliance functions throughout the Group.

and bonds, liabilities to banks and miscellaneous liabilities.

The income statement has been prepared according to the

internationally predominant cost-of-sales method. The system

of presentation according to Section 275 of the HGB has been

modiﬁed to improve clarity with regard to ﬁnancial activities.

Due to existing control and proﬁt and loss transfer agree-

ments, the proﬁts and losses occurring at Mercedes-Benz AG

and Daimler Truck AG are transferred to Daimler AG.

For tax purposes, the proﬁts and losses of Mercedes-Benz AG Financial activities are presented as net income/expense from

and Daimler Truck AG are allocated to Daimler AG within

the framework of a corporate income tax and trade tax ﬁscal

unity. In addition, Mercedes-Benz AG and Daimler Truck AG

are included in the ﬁscal unity of Daimler AG for value-added-

tax purposes.

investments in subsidiaries and associated companies, net

interest income/expense and net other ﬁnancial income/

expense.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AGꢀ 9

Assets

Jan 1.,

Dec. 31,

2018

2

019 ¹⁾

In millions of euros

Non-current assets

Intangible assets

73

209

50,691

1,587

9,528

Property, plant and equipment

Financial assets

43,977

55,092

5

0,973

Current assets

Inventories

1

4

10,524

2,781

29,817

4,908

7,278

6,354

61,662

Trade receivables

Receivables from subsidiaries

Other receivables and other assets

Securities

25,013

3,142

7,278

4,819

Cash and cash equivalents

4

0,257

Prepaid expenses

300

406

9

1,530

117,160

Equity and liabilities

Jan 1.,

Dec. 31,

2018

2

019 ¹⁾

In millions of euros

Equity

Share capital

Capital reserve

Retained earnings

Distributable proﬁt

3,070

11,480

25,182

3,477

3,070

11,480

25,182

3,477

4

3,209

43,209

Provisions

Provisions for pensions and similar obligations

Other provisions

123

2,136

,259

838

15,595

16,433

2

Liabilities

Trade payables

Liabilities to subsidiaries

Other liabilities

428

18,029

27,605

7,210

18,838

30,394

56,442

4

6,062

Deferred income

-

1,076

9

1,530

117,610

1

Amounts af er hive-down of business operations. Deviations from the hive-down balance (published in the hive-down report May 22, 2019) sheet

are the result of subsequent adjustments in accordance with the hive-down agreement.

10ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG

Recognition and measurement

Receivables and other assets are measured at their nominal

values with consideration of all recognizable risks. If they have

a residual period of more than one year and are non-interest

Intangible assets are measured at cost of acquisition, reduced

by systematic straight-line amortization. They have a useful life bearing, they are discounted to their present value on the

of 4 to 15 years.

balance sheet date. General allowances are recognized to reﬂect

general credit risks. Receivables and other assets with a

residual term of less than one year which are denominated in

foreign currencies are translated at the spot rates on the

balance sheet date. Non-current assets denominated in foreign

currencies are translated at the spot rates on the date when

booked or at the lower rate on the balance sheet date.

The capitalization option for self-produced intangible assets is

not utilized.

Property, plant and equipment are measured at cost of acquisi-

tion or production, reduced by systematic depreciation.

The production costs of self-constructed assets comprise

direct costs as well as prorated material and production over-

heads, including depreciation, to the extent that they are

caused by the production process.

Securities are measured at the lower of cost of acquisition or

fair value on the balance sheet date.

Payments made prior to the balance sheet date that constitute

expenses for a speciﬁc period af er that date are reported as

prepaid expenses. Any diﬀerence between the settlement

amount and the lower issue amount of a liability is capitalized

Systematic straight-line depreciation for technical equipment

and machinery, other equipment and operating and oﬃce

equipment is based on a useful life of 3 to 23 years. Correspond- and amortized systematically over the period of the liability.

ingly shorter periods apply for equipment used in multiple shif s.

Deferred taxes are calculated on temporary diﬀerences in the

Impairments are recognized if an asset has to be measured at

a lower value.

measurement of assets, liabilities, accruals and deferrals

between the tax basis and ﬁnancial reporting according to HGB,

as well as on tax-loss carryforwards. Tax-loss carryforwards

can only be taken into account if they can be oﬀset against

taxable income within the statutory period of ﬁve years.

Deferred taxes are measured based on the combined tax

rate of 29.825% for the income-tax ﬁscal unity of Daimler AG.

The combined tax rate includes corporate income tax, trade

tax and the solidarity surcharge. Deferred tax assets and

deferred tax liabilities are netted. Any resulting tax liability is

Assets with costs of acquisition or production of up to €1,000

are immediately expensed.

Leased assets are measured at cost of acquisition or produc-

tion and are systematically depreciated on a straight-line basis

over a useful life of 3 to 9 years.

For the sake of better clarity, the item of leased assets has been recorded as a deferred tax liability in the balance sheet. Any

added to the schedule of non-current assets under property,

plant and equipment.

resulting tax asset is not recognized, in line with the capitaliza-

tion option.

Shares in subsidiaries and associated companies and other

ﬁnancial assets are measured at cost of acquisition, or, if there

is an indication of permanent impairment, at the lower fair

value. If the reasons for permanent impairment are no longer

given, the impairment is reversed. Loans bearing low interest

or no interest are measured at their present values. In account-

ing for non-cash contributions, the exchange principles are

generally applied and the newly acquired shares are measured

at the carrying amount of the shares contributed.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AGꢀ 11

Provisions for pensions and similar obligations for pension plans

Other provisions also include provisions for taxes. For the case

that the amounts stated in the tax returns might not be realized

(uncertain tax positions), the provisions are based on the best-

estimate of the expected tax payments.

result from the oﬀsetting of pension obligations and assets that

are not available to all other creditors and serve exclusively to

settle pension obligations (special-purpose assets).

Retirement beneﬁt obligations from pension plans that provide

for a predeﬁned beneﬁt in old age are recognized at the settle-

ment amount required according to reasonable business judg-

ment. Measurement is based on the actuarial projected unit

credit method. Discounting of pension obligations is based on

In accordance with Section 254 of the HGB, derivative ﬁnancial

transactions are linked as a hedging relationship with an under-

lying transaction, provided there is a direct hedging context

between the ﬁnancial transaction and the underlying transaction.

Financial transactions for which no units of valuation are

the average market interest rate of the past ten ﬁnancial years as formed are measured individually at fair value. Any resulting

published on December 31, 2019 by the German central bank

Deutsche Bundesbank) for an assumed residual period of 15

years.

unrealized losses are expensed.

(

Liabilities are measured at their settlement amounts. Liabilities

denominated in foreign currencies with a residual period of

up to one year are translated at the spot rates on the balance

sheet date. Non-current liabilities denominated in foreign

currencies are translated at the spot rates on the date when

booked or at the higher rate on the balance sheet date.

Provisions for retirement beneﬁt obligations which at least guar-

antee the contributions paid in are recognized at the fair value of

the related assets, as this exceeds the guaranteed minimum

amount. Future claims are related to the fair value of the assets

(

securities or comparable assets).

Payments received prior to the balance sheet date that con-

stitute income for a speciﬁc period af er that date are reported

as deferred income.

The oﬀset assets are measured at fair value. Expenses and

income resulting from discounting the retirement beneﬁt obliga-

tions are oﬀset against the expenses and income of the oﬀset

assets under net interest income/expense. All other compo-

nents of pension expenses are presented under functional

costs.

Other provisions are recognized at the required settlement

amounts in accordance with reasonable commercial judgment.

Expected future increases in prices and costs until settlement

of the liabilities are taken into consideration. Provisions with a

residual period of more than one year are discounted according

to the net method over that period using the average market

interest rate of the past seven ﬁnancial years as published by

the German central bank (Deutsche Bundesbank). Changes in

the discount rate or interest eﬀects of a changed estimate of the

residual period are presented under interest income/expense.

12ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG

Schedule of non-current assets

Cost of acquisition or production

Disposals

Depreciation/Amortization/Write-ups

Disposals

Carrying amount

Reclas-

Addi- siﬁca-

tions tions

hive-down

Reclas-

siﬁca-

tions

hive-down

Dis- Jan. 1, Dec. 31, Dec. 31, Dec. 31,

Jan.ꢀ1,

019

Dis-

posals

Jan. 1, Dec. 31,

Jan.ꢀ1,

2019

Addi-

tions

Write-

ups

2

2019

posals

2019

2018

In millions of euros

Intangible assets

Purchased conces-

sions, industrial

property rights and

similar rights and

values, as well

as licenses to such

rights and values

2,464

269

13

-

13

2,273

191

1,146

28

-

13

1,028

133

58

1,318

Advance

payments made

-

269

-

269

2,733

13

2,542

191

1,146

28

13

1,028

133

58

1,587

Property, plant

and equipment

Technical

equipment

and machinery

16,821

1

3

-

16,775

50 13,909

4

-

13,889

24

26

2,912

Other equipment,

factory and oﬃce

equipment

17,792

1,659

60

-

14

-

36

2

17,343

1,655

487 14,515

61

-

37

-

14,221

135

318

2

169

-

3,277

1,522

Leased assets

2

137

Advance

payments made

and construction

in progress

1,817

26

87

-17

-

1,791

35

-

35

230

1,817

9,528

38,089

38

37,564

574 28,561

65

37

28,245

344

Financial assets

Shares in

subsidiaries

41,449 34,474¹⁾

-

17,081

145

4,619 54,223

2,021

-

230

-

33

-

521

-

329

-

1,368 52,855 39,428

Loans to subsidiaries 1,518

1,009

-

2,382

-

2,382

1,518

Shares in

associated

companies

Other loans

3,269

4

11

-

350

1

1,244

-

1,686

3

242

-

2,263

-

79

-

163

-

1,686

3

3,027

4

46,240 35,494

17,577

5,863 58,294

230

33

600

492

1,368 56,926 43,977

Non-current

assets

87,062 35,594

-

17,628

45,969 59,059 31,970

323

33

-

650

29,765

1,845 57,214 55,092

1

The hive-down of the assets and liabilities of the Mercedes-Benz Cars and Mercedes-Benz Vans divisions and of the Daimler Trucks and Daimler Buses divisions at

their carrying amounts in the context of “Project Future” resulted in a total addition of €12,085 million eﬀective January 1, 2019, which is included in the additions to the

ﬁnancial assets.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AGꢀ 13

In the context of the Project Future hive-down, non-current

assets with a carrying amount of €16,204 million were trans-

ferred to Mercedes-Benz AG and Daimler Truck AG. The fol-

lowing table shows the disposals to the respective companies.

Cost of acquisition or

production

Depreciation/

Amortization

Carrying amount

In millions of euros

Disposals to Mercedes-Benz AG

Intangible assets

2,366

31,856

3,210

894

23,500

282

1,472

8,356

Property, plant and equipment

Financial assets

2,928

3

7,432

24,676

12,756

Disposals to Daimler Truck AG

Intangible assets

176

5,708

2,653

134

4.475

210

42

963

Property, plant and equipment

Financial assets

2,443

3,448

8

,537

5,089

Disposals in the context of Project Future

45,969

29,765

16,204

14ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEET

Notes to the Balance Sheet

1

ꢂIntangible assets

amounts of the investments in LEONIE FS DVB GmbH, Daimler

Mobility AG, Mercedes-Benz Argentina S.A.U. and Daimler

Nederland B.V. increased as a result of cash capital increases.

And within the Group, Daimler AG acquired approximately 37%

of the shares in Daimler Canada Investments Company and the

shares in Mercedes-Benz Vans Nederland B.V.

The intangible assets of Daimler AG in an amount of €58 million

primarily comprise licenses, rights to use a name and similar

assets acquired for payment. The disposals mainly relate to

rights and development services in connection with cooperation

projects that were transferred to Mercedes-Benz AG (€1,472 mil-

lion) and to Daimler Truck AG (€42 million) in the context of the

hive-down. Systematic amortization amounts to €28 million

Signiﬁcant disposals of shares in subsidiaries relate in particu-

lar to the disposal of Daimler Trucks & Buses US Holding Inc.

2018: €230 million). No unscheduled amortization was carried by way of a non-cash contribution to Daimler Truck AG and a

capital reduction at Daimler Mobility AG in connection with the

acquisition of the shares in Mercedes-Benz Bank. Further dis-

posals relate to the subsidiaries that were contributed to

Mercedes-Benz AG and Daimler Truck AG eﬀective January 1,

(

out in 2019 (2018: €5 million).

2

ꢂProperty, plant and equipment

2019 as a result of the hive-down in the context of “Project

The property, plant and equipment of Daimler AG primarily

consists of technical equipment and machinery, other equip-

Future.” They include in particular the companies Mitsubishi

Fuso Truck and Bus Corporation, Daimler Trucks Canada Ltd.,

ment, operating and business equipment, advance payments Mercedes-AMG GmbH, Mercedes-Benz Cars Nederland B.V.,

made. In the context of the hive-down, property, plant and

equipment in particular were transferred to Mercedes-Benz

AG (€8,356 million) and to Daimler Truck AG (€963 million).

Mercedes-Benz Trucks UK Limited and Daimler UK Limited. In

addition, during the year in the context of “Project Future,”

numerous other MB Cars and Vans companies were contrib-

uted to Mercedes-Benz AG, truck companies to Daimler Truck

Additions in 2019 relate solely to movable assets. Systematic AG and ﬁnancial services companies to LEONIE FS DVB GmbH.

depreciation of property, plant and equipment amounts to €65

million (2018: €2,791 million)

Furthermore, the disposals include those subsidiaries that

were transferred to Daimler Nederland B.V. by way of non-cash

contributions.

.

3

ꢂFinancial assets

Signiﬁcant disposals of shares in subsidiaries and associated

companies result in particular from the disposal of There Hold-

ing B.V., Cooperation Manufacturing Plant Aguascalientes,

S.A.P.I and KAMAZ PAO due to the hive-down to Mercedes-

Benz AG and Daimler Truck AG in the context of “Project

Shares in subsidiaries and associated companies increased by

12,086 million to €54,541 million (2018 adjusted: €49,171

€

million, 2018: €42,455 million).

Future” eﬀective January 1, 2019. In addition, the shares in Bei-

jing Foton Daimler Automotive Co., Ltd. were sold within the

The main additions to ﬁnancial assets relate to the increase in

the carrying amounts of the investments in Mercedes-Benz AG Group in the year under review.

and Daimler Truck AG. The hive-down of the assets and liabili-

ties of the Cars & Vans and Trucks & Buses divisions at their

carrying amounts as part of “Project Future” resulted in an

addition totaling €12,085 million eﬀective January 1, 2019.

In 2019, shares in subsidiaries and associated companies were

impaired by an amount of €230 million (2018: €254 million)

This primarily relates to Mercedes-Benz Argentina S.A.U. in an

amount of €222 million in connection with its non-cash contri-

.

Other additions to shares in subsidiaries relate to the property, bution to Daimler Nederland B.V..

plant and equipment of Daimler Trucks & Buses US Holding

Inc. contributed to Daimler Truck AG and the acquisition within Write-ups amounted to €33 million (2018: €38 million).

the Group of the shares of Mercedes-Benz Bank AG. Also dur-

ing 2019, in the context of "Project Future," numerous further

The statement of investments pursuant to Section 285

of the German Commercial Code (HGB) is included in the

MB Cars and Vans companies were contributed to Mercedes

Benz AG, Truck companies to Daimler Truck AG and Financial

Services companies to LEONIE FS DVB GmbH. Furthermore,

several subsidiaries of Daimler AG were transferred to Daimler

Nederland B.V. by way of non-cash contributions. The carrying

-

E

“Statement of investments” chapter.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEETꢀ 15

4ꢂInventories

C.01

Most of the inventories presented at December 31, 2018 have

been transferred to Mercedes-Benz AG and Daimler Truck AG

in the context of the hive-down.

Receivables and other assets

Dec. 31, 2019 Dec. 31, 2018

In millions of euros

5

ꢂReceivables and other assets



C.01

Trade receivables

69

-

30,644

8,444

72

2,781

12

thereof more thanꢁ1 year until maturity

Receivables from subsidiaries

thereof more thanꢁ1 year until maturity

Receivables from associated companies

thereof more thanꢁ1 year until maturity

Other assets

Receivables from subsidiaries (€30,644 million, 2018 adjusted:

25,013 million, 2018: €29,817 million) primarily comprise

29,817

10,316

1,679

–

€

receivables that originally arose from the Group's internal

transactions in connection with central ﬁnance and liquidity

management (€27,600 million), from proﬁt transfers from sub-

sidiaries (€2,843 million) and from the supply of goods and

services to German and foreign companies (€201 million). As

the central ﬁnancial and liquidity management for “Project

Future” will remain with Daimler AG, the related receivables will

remain with Daimler AG.

-

1,975

23

32,760

8,467

3,229

9

thereof more thanꢁ1 year until maturity

Receivables and other assets

thereof more thanꢁ1 year until maturity

37,506

10,337

Disposals in the context of “Project Future” relate to receivables 7ꢂCash and cash equivalents

from subsidiaries from the operating activities of the

Mercedes-Benz Cars and Mercedes-Benz Vans divisions and

of the Daimler Trucks and Daimler Buses divisions in an

amount of €4,804 million, other receivables and assets in an

Cash and cash equivalents amount to €2,942 million at the

end of the year 2018 adjusted: €4,819 million, 2018: €6,354

million) and consist of bank balances, cash in hand and

(

amount of €1,766 million and trade receivables in an amount of checks. Liquidity also includes securities (€6,165 million, 2018

€

2,777 million.

adjusted: €7,278 million, 2018: €7,278 million), cash and cash

equivalents, as well as ﬁxed-term deposits (€450 million,

2018 adjusted: €650 million, 2018: €650 million), which are

presented under other assets.

Receivables from associated companies primarily comprise

receivables arising from the Group's internal transactions in

connection with central ﬁnancial and liquidity management

with German and foreign associated companies (€70 million,

In the context of the hive-down, cash and cash equivalents of

€1,378 million have been transferred to Mercedes-Benz AG

and of €157 million to Daimler Truck AG in line with the operat-

ing responsibilities

2018 adjusted €90 million, 2018: €90 million).

Other assets include tax-refund claims (€1,118 million, 2018

adjusted: €1,556 million, 2018: €1,556 million), ﬁxed-term

deposits (€450 million, 2018 adjusted: €650 million, 2018:

€

650 million) and accrued interest (€179 million, 2018

8ꢂPrepaid expenses

adjusted €161 million, 2018 €161 million).

Prepaid expenses include discount amounts of €117 million

(2018 adjusted: €112 million, 2018: €112 million). They result

from the diﬀerence between the settlement amount and the

lower issue amount of liabilities.

Other assets allocated to the Mercedes-Benz Cars & Mercedes-

Benz Vans division’s operating area of responsibility have been

transferred to Mercedes-Benz AG, except for tax refund claims,

ﬁxed-term deposits and accrued interest, which remain with

Daimler AG.

Prepaid expenses allocated to the Cars & Vans division’s oper-

ating area of responsibility have been transferred to

Mercedes-Benz AG in the amount of €103 million and to

Daimler Truck in the amount of €3 million.

6ꢂSecurities

Securities consist solely of other securities, which include

ﬁxed or variable-interest marketable debt securities as well as

money-market funds. The decrease of €1,113 million to €6,165

million (2018 adjusted: €7,278 million, 2018: €7,278 million) is

due in particular to the disposal of bonds.

Discounts within the context of central ﬁnancial and liquidity

management remain with Daimler AG.

No securities have been transferred to Mercedes-Benz AG or

Daimler Truck AG.

16ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEET

to exclude shareholders’ subscription rights in other deﬁned

C.02

cases. In a volume up to 5% of the share capital issued as of

the day of the resolution of the Annual Shareholders’ Meet-

ing, the Company was authorized to acquire treasury shares

also by using derivatives (put options, call options, forward pur-

chases or a combination of these instruments), whereby term

of a derivative must not exceedꢁ18 months and must not end

later than March 31, 2020. No use was made of the authoriza-

tion to acquire treasury during the reportingperiod. As at

December 31, 2018, no treasury shares were held by Daimler

Equity

Dec. 31, 2019 Dec. 31, 2018

In millions of euros

Share capital

Capital reserve

Retained earnings

Distributable proﬁt

Equity

3,070

11,480

22,541

963

3,070

11,480

25,182

3,477

AG at December 31, 2019.



C.03

38,054

43,209

Employee share purchase plan

In 2019, as in the previous year without utilizing the authoriza-

tion to acquire treasury shares granted by the Annual Share-

holders’ Meeting on April 1, 2015, 826,535 Daimler shares

(2018: 732,729 Daimler shares) were purchased and reissued

to employees in connection with employee share programs.

This includes 15,564 (2018: 15,394 shares) shares provided

as health shares in the context of the bonus program for atten-

dance. The employee shares represent €2.37 million or 0.08% of

the share capital. Daimler shares were acquired for an average

price of €52.07 per share and reissued to employees for an

average price of €36.48 per share. The proportionate loss arising

for Daimler AG of €12.89 million was recognized through proﬁt

and loss as a personnel expense in 2019. The proportionate

loss of €12.27 million from the sale of employee shares to enti-

tled employees of Group companies was charged by Daimler

AG to the respective companies of the Group.

C.03

Number of shares

2

019

2018

Shares outstanding/issued

at Januaryꢀ1

Shares reacquired in the context

of employee share programs and

not cancelled

1,069,837,447 1,069,837,447

-826,535

826,535

-ꢁ732,729

732,729

Sale of treasury shares to

employees in the context

of employee share programs

Shares outstanding/issued

at December 31

1,069,837,447 1,069,837,447

Approved capital

The Annual Shareholders’ Meeting held on April 5, 2018 autho-

rized the Board of Management, with the consent of the Super-

visory Board, to increase the share capital of the Company in

the period until April 4, 2023 by a total of €1,000 million in one

lump sum or by separate partial amounts at diﬀerent times by

9

ꢂEquity



C.02

a) Share capital

The share capital (authorized capital) is divided into no-par- value issuing new, registered no-par-value shares in exchange for

shares. All shares are fully paid up. Each share confers the cash and/or noncash contributions (Approved Capital 2018).

right to one vote at the Annual Shareholders’ Meeting of Daimler The new shares are generally to be oﬀered to the shareholders

AG and, if applicable, with the exception of any new shares

potentially not entitled to dividends, to an equal portion of the

proﬁts as deﬁned by the dividend distribution resolved at the

Annual Shareholders’ Meeting. Each share represents a pro-

for subscription (also by way of indirect subscription pursuant to

Section 186 Subsection 5 Sentence 1 of the German Stock Cor-

poration Act (AktG)). The Board of Management was also autho-

rized, among other things, with the consent of the Supervisory

portionate amount of approximately €2.87 of the share capital. Board to exclude shareholders’ subscription rights under certain

The number of shares outstanding/issued at December 31, 2019 conditions and within deﬁned limits. Approved Capital 2018 has

isꢁ1,070 million, unchanged from December 31, 2018.

not yet been utilized.

Treasury shares

By resolution of the Annual Shareholders’ Meeting held on

Conditional capital

The resolution of the Annual Shareholders’ Meeting on Aprilꢁ1,

Aprilꢁ1, 2015, the Company was authorized until March 31, 2020 2015 authorizes the Board of Management, with the consent of

to acquire treasury shares in a volume up toꢁ10% of the share

capital issued as of the day of the resolution to be used for all

legal purposes. The shares can be used, among other things,

the Supervisory Board, until March 31, 2020 to issue convert-

ible and/or warrant bonds or a combination of these instruments

(“bonds”) with a total face value of up to €10,000 million and

with the exclusion of shareholders’ subscription rights, for busi- a maturity of no more than ten years. The Board of Management

ness combinations or to acquire companies, or to be sold to

third parties for cash at a price that is not signiﬁcantly lower

than the stock-exchange price of the Company’s shares. The

acquired shares can also be used to fulﬁll obligations from

is allowed to grant the holders of these bonds conversion or

warrant rights for new registered no-par-value shares in Daimler

AG with an allocable portion of the share capital of up to €500

million in accordance with the details deﬁned in the terms and

issued convertible bonds and/or bonds with warrants and to be conditions of the bonds. The bonds can be oﬀered in exchange

issued to employees of the Company and employees and board for cash and/or non-cash contributions, in particular for shares

members of the Company’s subsidiaries pursuant to Sectionsꢁ15 in other companies. The terms and conditions of the bonds

et seq. of the German Stock Corporation Act (AktG). The trea- can include warranty obligations or conversion obligations. The

sury shares can also be canceled. The Board of Management

bonds can be issued once or several times, wholly or in install-

is further authorized, with the consent of the Supervisory Board, ments, or simultaneously in various tranches, as well as by

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEETꢀ 17

subsidiaries of the Company within the meaning of Sectionsꢁ15

et seq. of the German Stock Corporation Act (AktG). Among

other things, the Board of Management was authorized, with the

consent of the Supervisory Board, to exclude shareholders’

subscription rights for the bonds under certain conditions and

within deﬁned limits.

C.04

Other retained earnings

2

019

2018

In millions of euros

Balance at Januaryꢀ1

Purchase of treasury shares

25,182

-

23,637

–

In order to fulﬁll the conditions of the above-mentioned autho-

rization, the Annual Shareholders’ Meeting on Aprilꢁ1, 2015

also resolved to increase the share capital conditionally by an

amount of up to €500 million (Conditional Capital 2015).

Allocated by the Annual Shareholders’

Meeting

-

–

Transfer from net proﬁt

-

-2,641

22,541

–

1,545

Transfer from retained earnings

Balance at December 31

thereof treasury shares

-

25,182

–

The authorization to issue convertible and/or warrant bonds

has not yet been utilized.

b) Capital reserve

The capital reserve amounts to €11,480 million at December 31,

2019 (2018 adjusted: €11,480 million, 2018: €11,480 million).

c) Retained earnings

At December 31, 2019, other retained earnings amount to

€

22,541 million (2018 adjusted: €25,182 million, 2018:

25,182 million). In 2019, €2,641 million was transferred from

C.05

Distributable proﬁt

other retained earnings.



C.04

2

019

In millions of euros

d) Distributable profit

Distributable proﬁt for the 2019 ﬁnancial year is calculated in

accordance with Section 158 Subsection 1 of the German

Stock Corporation Act (AktG) and amounts to €963 million

Balance at Januaryꢀ1

Dividend distribution

Net loss 2019

3,477

-3,477

-1,678

2,641

963



C.05

Transfer from retaied earnings

Balance at December 31

Information on amounts that may not be distributed

The diﬀerence between the recognition of the retirement beneﬁt

obligations with the average market interest rate of the past

ten ﬁnancial years and the recognition of the retirement beneﬁt

obligations with the average market interest rate of the past

seven ﬁnancial years amounts to €156 million and may not be

distributed. The measurement at fair value of assets oﬀset

against pension obligations resulted in an amount of €40 mil-

lion that may not be distributed.

Dividend

Under the German Stock Corporation Act (AktG), the dividend

is paid out of the distributable proﬁt reported in the annual

ﬁnancial statements of Daimler AG (parent company only) in

accordance with the German Commercial Code (HGB). For the

On the other hand, retained earnings exist which may be freely year ended December 31, 2019, the Daimler management

disposed of in the amount of €22,541 million. Therefore, the

distributable proﬁt of €963 million is in fact fully distributable.

will propose to the shareholders at the Annual Shareholders’

Meeting the payment of €963 million of the distributable

proﬁt of Daimler AG as a dividend to the shareholders, equiva-

lent to €0.90 per no-par-value share entitled to a dividend

(

2018: €3,477 million and €3.25 per no-par-value share enti-

tled to a dividend, respectively).

Share-based payment

As of December 31, 2019, Daimler AG has Performance Phan

tom Share Plans (PPSP) 2016 through 2019 in operation. As

instruments of share-based payment with cash settlement, the

PPSP are measured at their fair values on the balance sheet

date. They are paid out at the end of their contractually deﬁned

periods; an earlier, proportionate payout is only possible under

certain conditions when a beneﬁciary leaves the company.

PPSP 2015 was paid out as planned in the ﬁrst quarter of 2019.

18ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEET

1

0ꢂProvisions for pensions and

C.06

similar obligations

Provisions for pensions and similar obligations

Dec. 31, 2019 Dec. 31, 2018

Provisions for pensions and similar obligations amount to €94

million at December 31, 2019 (2018 adjusted: €123 million,

In millions of euros

2

018: €838 million). In connection with the hive-down, provi-

Settlement amount of obligations

from deﬁned-beneﬁt plans

sions in the amount of €715 million were transferred to

Mercedes-Benz AG and Daimler Truck AG. The transferred

pension obligations comprise the obligations for the beneﬁ-

ciaries transferred from Daimler AG to Mercedes-Benz AG

and Daimler Truck AG pursuant to the hive-down agreement.

Special-purpose assets were transferred from Daimler AG to

Mercedes-Benz AG and Daimler Truck AG for parts of the pen-

sion obligations. The amounts of the special-purpose assets

transferred were based on the ratio of the obligations of

Daimler AG, Mercedes-Benz AG and Daimler Truck AG recog-

nized in accordance with IFRS as of date when the hive-down

took eﬀect.  C.06

1,342

-1,248

80

13,720

-ꢁ12,882

587

Fair value of related special-

purpose assets for obligations

from deﬁned-beneﬁt plans

Settlement amount for obligations

from plans with commitments backed

by securities

Fair value of related special-purpose

assets for obligations from plans

with commitments backed by securities

-80

-ꢁ587

Provisions for pensions and similar

obligations (+)/Net defined-benefit

plan asset (-)

94

838

The settlement amount for obligations that provide for a

deﬁned beneﬁt during retirement is €1,342 million (2018

adjusted: €1,222 million, 2018: €13,720 million).

C.07

Shares in investment funds at Dec. 31, 2019

Private equity funds

The measurement of the pension obligations is based on an

interest rate of 2.71% (2018: 3.21%). Life expectancy is calcu-

lated on the basis of the 2018 G mortality tables of K. Heu-

beck. The mortality tables take into account the latest statis-

tics of the statutory pension insurance and the Federal

Statistical Oﬃce. In addition, the measurement is based on

annual increases in the cost of living and annual increases in

future entitlements of 1.70% (2018: 1.80%) and expected

annual wage and salary increases of 3.00% (2018: 3.00%).

in millions of euros

Book value / fair value

Cost of acquisition

Diﬀerence

97

69

28

--

Dividend for the year

Daily return possible

yes

These obligations are oﬀset against the special-purpose

assets, which as at December 31, 2019 have a fair value of

€1,248 million (2018 adjusted: €1,099 million, 2018: €12,882

Performance Phantom Share Plans

In 2019, Daimler AG adopted a Performance Phantom Share Plan million) and cost of acquisition of €1,207 million.

similar to that used in prior years, under which eligible board

members and employees are granted phantom shares entitling The obligations for the pension plans, the amounts of which

them to receive cash payments provided that predeﬁned targets

are met in the three-year performance period. The amount of

cash paid to eligible persons is based on the number of vested

phantom shares (determined depending on target achievement

over a three-year performance period) multiplied by the quoted

price of Daimler’s ordinary shares (calculated as an average

price over a speciﬁed period at the end of the four-year plan

period). For the PPSP issued as of 2014, the determination of

are determined by the fair value of securities or comparable

assets, are recognized with the fair value of those assets at

December 31, 2019 of €80 million (2018 adjusted: €70 mil-

lion, 2018: €587 million), as this exceeds the guaranteed mini-

mum value of the obligations at December 31, 2019. There is

then an oﬀset with those special-purpose assets that have

original cost of acquisition of €76 million. As a result, this

leads to the full oﬀsetting of the obligations with the related

target achievement is based on the relative share performance, special purpose assets.

which measures the development of a share-price index of a

group of competitors including Daimler, and the return on sales

RoS) of Daimler compared with the average RoS of a group of

competitors.

The assets oﬀset at December 31, 2019 include the shares

shown in Table  C.07 in foreign funds in the form of shares in

an investment-fund company with variable equity of more than

(

1

0% pursuant to Sections 108 to 123 of the German Capital

Since PPSP 2018, the average RoS of the group of competitors

Investment Act (KAGB). This is a private equity fund with an

is additionally revenue weighted. In this context, special regula- international focus that reﬂects individual investor needs.

tions apply to the members of the Board of Management

beginning with the plan PPSP 2015 to the extent that Daimler

There are no restrictions on the possibility of returning the

shares on stock-exchange trading days. The return of shares

has to achieve a higher RoS than the average of its competitors can be temporarily suspended under unusual circumstances

in order to obtain the same target achievement that the other

plan participants obtain in the case of a RoS equal to the aver-

age of the competitors.

that make suspension seem necessary under consideration of

the interests of the investors.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEETꢀ 19

1



1 Other provisions C.08

C.08

Other provisions

Provisions for taxes relate primarily to income taxes for years

not yet ﬁnally assessed.

Dec. 31, 2019 Dec. 31, 2018

In millions of euros

Other provisions primarily relate to impending losses from

derivative transactions, personnel and social obligations, and

legal proceedings and liability risks.

Provisions for taxes

835

676

,511

1,223

14,372

15,595

Miscellaneous provisions

1

In the context of the “Project Future”, other provisions were

transferred to Mercedes-Benz AG (€11,268 million) and to

Daimler Truck AG (€2,676 million). Furthermore, the hive-down

has resulted in provisions of €485 million for newly created

internal derivatives.

C.09

Liabilities

Within the ﬁscal unity, Daimler AG continues to be the control-

Dec. 31, 2019 Dec. 31, 2018

ling company, also for the hive-down companies Mercedes

-

In millions of euros

Benz AG and Daimler Truck AG. All provisions for income taxes

have remained with Daimler AG. Only provisions for other tax

withholdings (withholding tax), which do not relate to income

taxes, have been transferred to Mercedes-Benz AG (€7 mil-

lion).

Notes/bonds and commercial paper

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

27,615

5,804

10,267

11,544

26,133

5,104

10,731

10,298

Liabilities to banks

1,498

2,800

500

2,300

–

1



2ꢂLiabilities C.09

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

-

Notes, bonds and commercial paper are primarily European

medium-term notes in the amount of €23,467 million (2018

adjusted: €22,659 million, 2018: €22,659 million).

Trade payables

227

7,210

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

227

7,210

Liabilities to banks of €1,498 million (2018 adjusted: €1,100

million, 2018: €2,800 million) primarily comprise loans of

-

–

€1,100 million (2018 adjusted: €1,100 million, 2018: €2,800

million).

Liabilities due to subsidiaries

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

29,978

21,763

8,215

-

18,838

12,338

6,500

–

In the context of “Project Future,” trade liabilities have been

transferred to Mercedes-Benz AG (€5,936 million) and Daimler

Truck AG (€846 million) in line with the purpose for which the

goods and services purchased for the Cars & Vans and Trucks

Liabilities due to associated companies

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

3

-

42

–

&

Buses divisions were actually used.

Liabilities to subsidiaries (€29,978 million, 2018 adjusted:

18,029 million, 2018: €18,838 million) are liabilities that origi-

-

–

€

nally arose from transactions within the Group in the context

of central ﬁnance and liquidity management (€20,566 million)

and from proﬁt/loss transfers with subsidiaries (€9,301 mil-

lion), as well as the supply of goods and services with German

and foreign companies of the Group (€111 million, 2018

adjusted: €1 million, 2018: €809 million).

Other liabilities

380

-

1,419

1,418

1

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

of which tax liabilities

-

–

32

163

of which obligations concerning

social security

2

46

Total of liabilities

59,701

29,675

18,482

11,544

56,442

26,612

19,532

10,298

of which due in less thanꢁ1 year

of which due inꢁ1 year to 5 years

of which due in more than 5 years

20ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE BALANCE SHEET

In the context of “Project Future,” central ﬁnancial and liquidity 13ꢂDeferred income

management remains at Daimler AG. Only those liabilities to

subsidiaries and associated companies from the operating

The items of deferred income have been transferred to

activities of the Cars & Vans and Trucks & Buses divisions have Mercedes-Benz AG (€842 million) and Daimler Truck AG (€234

been transferred to Mercedes-Benz AG and Daimler Truck AG.

million) due to its business origin in the operating areas of

responsibility of the Cars & Vans and Trucks & Buses divisions.

Liabilities to associated companies are liabilities that originally

arose from transactions within the Group in the context of

central ﬁnance and liquidity management (€3 million, 2018

adjusted: €3 million, 2018:€3 million).

Deferred income of €6 million existing at December 31, 2019

includes earnings eﬀects from terminated valuation units with

interest-rate swaps due to the early disposal of underlying trans-

actions.

Other liabilities of €380 million (2018 adjusted: €369 million,

018: €1,419 million) mainly comprise liabilities from wages

2

and salaries, accrued and deferred interest, and tax liabilities.

As the central ﬁnancial and liquidity management remains at

Daimler AG, notes, bonds, commercial paper and liabilities to

banks – with the exception of special-purpose support loans

and ﬁnancial liabilities to companies in which an equity interest

is held have not been transferred.

Liabilities relating to the products and employees of the Cars &

Vans and Trucks & Buses divisions have been transferred to

Mercedes-Benz AG and Daimler Truck AG, respectively.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE INCOME STATEMENTꢀ 21

Notes to the Income Statement

1

4ꢂRevenue

The expenses for consulting include principal accountant fees.

The shareholders of Daimler AG elected KPMG AG Wirtschaf s-

prüfungsgesellschaf as the external auditor at the Annual

The Company generates revenue primarily from the provision

of internal services from corporate functions, which are

charged to the companies of the Group.

Shareholders’ Meeting held on May, 22 2019. Table



C.10

shows the fees of KPMG AG Wirtschaf sprüfungsgesellschaf

recognized as expenses for the services provided to Daimler

AG and its subsidiaries in the respective ﬁnancial year. Princi-

1,950 million from the provision of internal services of central pal accounting fees relate to the audit of the consolidated

ﬁnancial statements and the company ﬁnancial statements, as

well as all services required for the audit, including the audi-

tors’ review of the interim ﬁnancial statements, the audit of

the accounting-related internal control system and the

accounting-related IT and process audits.

In the past ﬁnancial year, Daimler AG generated revenue of

€

functions.

Due to legal restrictions, Daimler AG is used for speciﬁc sales

of Mercedes-Benz AG and Daimler Truck AG. In this respect,

Daimler AG generated revenue of €69 million from the sale of

vehicles. Daimler AG is not to be involved in this context in the

near future.

Other attestation services primarily comprise statutory, con-

tractually agreed or voluntary attestation services. In addition

to project-supporting audits for non-accounting-related IT

systems and processes, this item includes in particular attes-

Domestic revenue (€1,701 million) accounts for 84% of total

revenue, with 16% coming from abroad (€318 million). The rev-

enues generated outside Germany are attributable in particular tation services in connection with “Project Future.” In addi-

to America (€86 million), Africa (€78 million), Europe (€78 mil-

lion) and Asia (€69 million).

tion, it also includes audits in connection with compliance

management systems, the issuing of comfort letters and non-

ﬁnancial statements and reports. Tax advisory services primar-

ily comprise tax advice in conjunction with value-added tax.

Other services in connection with principal accountant fees

were mainly commissioned in connection with IT and process

consulting, processes and quality assurance not relevant to

The decrease in revenue was primarily the result of the hive-

down of the operating activities into Mercedes-Benz AG and

Daimler Truck AG.

accounting

.

15ꢂFunctional costs

Functional costs are broken down in the income statement into

cost of sales and general administrative expenses.

C.10

Accountant fees

2

019

2018

Cost of sales includes the expenses incurred to generate sales.

These are mainly personnel expenses, the cost of purchased

services, IT expenses, depreciation, and rental and lease

expenses. The decrease in the cost of sales is mainly due to

the hive-down of the operating activities to Mercedes-Benz AG

and Daimler Truck AG.

In millions of euros

Audit services

28

12

1

23

8

Other attestation services

Tax services

1

Other services

4

6

4

5

38

The sales functions have been transferred to Mercedes-Benz

AG and Daimler Truck AG in the context of the hive-down, with

the result that selling expenses are no longer incurred at

Daimler AG.

General administrative expenses primarily comprise personnel

expenses, IT costs and fees for expertise and consulting.

Administrative expenses include expenses in connection with

“

Project Future” in the amount of €186 million (2018: €192 mil-

lion). The decrease in general administrative expenses primar-

ily results from the hive-down in the context of “Project

Future.”

22ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE INCOME STATEMENT

1



8ꢂIncome from subsidiaries, net C.11

C.11

Income/expense from investments in subsidiaries

and associated companies, net

Income from subsidiaries decreased primarily due to higher

expenses from loss transfers and lower income from sub-

sidiaries. Income from proﬁt-transfer agreements increased,

however.

2

019

2018

In millions of euros

The increased income from proﬁt-transfer agreements resulted

in particular from the higher proﬁt transfer from Daimler Mobil-

ity AG. In the previous year, this included the expense of a

€620 million proﬁt subsidy in connection with the settlement

in the Toll Collect arbitration proceedings.

Income from proﬁt and

loss transfer agreements

2,855

-9,326

5,370

914

2,291

-ꢁ685

9,069

830

Expenses from loss transfers

Income from subsidiaries

Income from associated companies

Impairments of investments in

subsidiaries and associated companies

-230

33

-ꢁ254

38

Expenses from loss transfers increased in the year under

review primarily due to the loss transfer from Mercedes-Benz

AG.

Write-ups on investments in subsidiaries

and associated companies

Gains on disposals of investments in

subsidiaries and associated companies

10

48

The lower income from subsidiaries resulted in particular from

lower dividends paid by the subsidiaries. Increased dividends

from Daimler International Nederland B.V. (€2,500 million;

Other expenses from investments in sub-

sidiaries and associated companies

-52

426

–

-

11,337

2

018: €0 million) and Daimler Trucks & Buses US Holding Inc.

(€988 million; 2018: €0 million) were oﬀset in particular by

lower dividends or no dividends from Daimler North America

Corporation (€0 million; 2018: €3,331 million), Daimler UK Lim-

ited (€0 million; 2018: €1,469 million) and Daimler Nederland

B.V. (€0 million; 2018: €1,035 million), as well as from numer-

1

6ꢀOther operating income

Of the other operating income of €88 million (2018: €1,372

million), €13 million (2018: € 326 million) is attributable to the ous smaller subsidiaries. Dividends from subsidiaries that were

period under review.

transferred to Mercedes-Benz AG and Daimler Truck AG in the

hive-down in the context of “Project Future” eﬀective January

1, 2019 are included in their proﬁt transfers to Daimler AG and

thus in the line item “Expenses from loss transfers.”

Other operating income of €75 million (2018: €1,046 million)

is assignable to other reporting periods and relates mostly to

income from the release of provisions and accruals and defer-

rals.

Impairments of investments in subsidiaries and associated

companies primarily relate to Mercedes-Benz Argentina

The decrease in other operating income is mainly the result of S. A. U. (€222 million). In the previous year, impairments of

the hive-down of the operating activities to Mercedes-Benz

AG and Daimler Truck AG.

investments in subsidiaries and associated companies primar-

ily related to Daimler Financial Services India Private Limited

(€100 million), Mercedes-Benz do Brasil Ltda. (€83 million) and

Mercedes-Benz Argentina S. A. U. (€63 million).

17ꢀOther operating expenses

Other operating expenses include provisions recognized as

expenses for derivatives of the vehicle business outside the

Group (€225 million), as the operating valuation units were ter-

minated with the hive-down.

Other operating expenses include expenses relating to legal pro-

ceedings. Other operating expenses of €16 million are attribut-

able to other periods and primarily comprise payments of

value-added tax for prior periods.

The decrease in other operating expenses is mainly the result of

the hive-down of the operating activities to Mercedes-Benz AG

and Daimler Truck AG.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | NOTES TO THE INCOME STATEMENTꢀ 23



19ꢂInterest income/expense, net C.12

C.12

The earnings components of the special-purpose assets are rec-

ognized under interest income/expense, net and are oﬀset

against the interest component of the retirement beneﬁt obliga-

tion.

Interest income/expense, net

2

019

2018

In millions of euros

Income from other securities

and loans of ﬁnancial assets

The interest expense from the retirement beneﬁt obligations

amounts to €133 million (2018: €2,003 million). The income

from the special-purpose assets amounts to €147 million (2018:

expense of €1,074 million).

22

887

411

-933

-214

18

thereof from subsidiaries

Other interest and similar income

thereof from subsidiaries

Interest and similar expenses

thereof to subsidiaries

707

310

-ꢁ4,927

-91

The compounding of provisions with an original maturity of more

than one year results in an interest expense of €23 million

-24

-ꢁ4,202

(2018: €298 million). The decrease compared with the previous

year is related to “Project Future,” as provisions have been

transferred to Mercedes-Benz AG and Daimler Truck AG.

C.13

Other ﬁnancial income/expense, net

20ꢂOther ﬁnancial income/expense, net

2

019

2018

In millions of euros

Other ﬁnancial income/expense, net includes items from the

ongoing Group ﬁnancing. The hive-down of the operating activ-

ities of Mercedes-Benz AG and Daimler Truck AG had only a

marginal impact on other ﬁnancial income/expense, net.

Currency income/expense, net

Miscellaneous income

-202

133

-27

148

119

-ꢁ84

183

Miscellaneous expenses

-96

Other ﬁnancial income/expense, net includes currency losses

of €202 million (2018: currency gains of €148 million) from the

ongoing Group ﬁnancing.

In the 2019 ﬁnancial year, the Daimler AG ﬁscal unity incurred

a tax loss. Therefore, there is no tax expense for corporate

income tax, solidarity surcharge and trade tax for the current

year. Only withholding taxes were to be paid, mainly from divi-

dend distributions from foreign subsidiaries and from pay-

ments for the use of rights and from interest, which are more

than oﬀset by tax income from other periods.

Miscellaneous income includes the Group’s internal provisions

for warranty and guarantee obligations of €128 million (2018:

€

108 million). Miscellaneous expenses include expenses for

Group ﬁnancing of €23 million (2018: €71 million). C.13



2

1ꢂIncome taxes

Deferred taxes are not included in this item because the capi-

talization of deferred tax assets is optional. Future tax relief

As the parent company, Daimler AG is the taxpayer with

respect to those subsidiaries with which it has concluded proﬁt mainly arises from temporary accounting diﬀerences in con-

and loss transfer agreements. The individual companies are nection with pensions and other provisions, and from the tax-

listed in the “Statement of investments” pursuant to Sec- loss carryforwards.

E

tion 285 of the German Commercial Code (HGB) and are

marked with a separate footnote.

22 Net loss (previous year: net proﬁt)

The income from taxes on income amounts to €44 million

(

€

2018: expense of €1,055 million). It comprises an expense of

114 million for the year 2019 (2018: expense of €1,070 mil-

Net loss for the year 2019 amounts to €1,678 million. Following

the transfer from retained earnings the distributable proﬁt of

lion) as well as income of €158 million for previous years (2018: Daimler AG amounts to €963 million.

expense of €15 million).

24ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Other Notes

Personnel expenses/Employees



C.14

Personnel expenses

Wages and salaries include salaries, severance payments, holi-

day bonuses, special bonuses and expenses resulting from

personnel provisions. Social-security contributions primarily

comprise the employer’s share of contributions to pension,

unemployment, nursing-care and medical insurance plans.

2

019

2018

In millions of euros

Wages and salaries

Social security contributions

Pension costs

683

102

36

11,275

1,819

Expenses for pensions include service costs and contributions

to the German Pension Insurance Association, which are

included in the functional costs in the income statement.

1,076

8

21

14,170

The average number of employees of 128,273 (2018: 151,879)

Employees

as shown in Table



C.14 reﬂects the entire ﬁnancial year. In

2

019

2018

the period from January 1, 2019 to October 31, 2019, Daimler

AG had an average of 152,546 employees (thereof 81,086 man-

ual workers, 62,274 oﬃce workers and 9,186 apprentices/

interns). With the transfer of operations eﬀective November 1,

2019, 112,661 employees were transferred to Mercedes-Benz

AG and 29,204 employees were transferred to Daimler Truck

AG. In the period from November 1, 2019 to December 31,

Annual average numbers

Manual workers

67,587

52,945

20,532

7,741

128,273

6,887

81,792

60,565

142,357

9,522

Salaried employees

1

Trainees/apprentices/interns

Total (average for the year)

151,879

2

019, Daimler AG had an average of 6,905 employees (thereof

Total (at end of year)

149,797

manual workers 88, oﬃce workers 6,304 and apprentices/

interns 513). As of December 31, 2019, Daimler AG had 6,887

employees (2018: 149,797).

C.15

The decrease in personnel expenses results primarily from the

transfer of employees to Mercedes-Benz AG and Daimler Truck

AG in the context of the transfer of operations, which is

already recognized in the respective companies as of January

Cost of materials

2

019

93

2018

In millions of euros

1, 2019.

Cost of raw materials, manufacturing

supplies and purchased goods

The (partial) transfers of operations from Daimler AG to Mer-

cedes-Benz AG and Daimler Truck AG resulting from the hive-

down were only possible with the consent of the employees

and their elected representatives. The transfer of employment

relationships took place automatically and under unchanged

conditions. At December 31, 2019, 156 active employees had

objected to the transfer of operations. Those employees will

remain with Daimler AG with all rights and obligations in accor-

dance with Section 613a of the German Civil Code (BGB). Mer-

cedes-Benz AG and Daimler Truck AG will reimburse Daimler

AG in full for all costs incurred for those employees.

77,110

Cost of purchased services

1

,123

,216

15,846

92,956

C.16

Derivative ﬁnancial instruments: nominal amounts

Dec. 31, 2019 Dec. 31, 2018

In millions of euros

Foreign exchange contracts

Interest rate contracts

79,696

59,618

821

44,698

50,303

704

Commodity forward contracts

1

40,135

95,705

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 25

Cost of materials

two companies, based on the same hedging rates of the

external derivatives. Provisions were recognized for the intra-

Group derivatives with negative fair values, while other assets

Cost of materials primarily comprises expenses for purchased

services as well as, to a smaller extent, expenses for raw mate- were recognized for the intra-Group derivatives with positive

rials and manufacturing supplies and for purchased goods.

fair values.

The decrease in cost of materials is mainly the result of the

The intra-Group and external derivatives are accounted since

hive-down of the operating activities to Mercedes-Benz AG and January 1, 2019 for as new valuation units. As the derivatives

Daimler Truck AG.



C.15

were concluded on a mirror basis, the eﬀects on Daimler AG’s

earnings oﬀset each other during the terms of the external

and intra-Group derivatives.

Derivative ﬁnancial instruments and

valuation units

The derivative ﬁnancial instruments held by Daimler AG have

the nominal values at the end of the reporting year and the

prior year as shown in table  C.16. The nominal values are

the totals of the basic values of all purchase and sale con-

As part of its centralized Group ﬁnancing, Daimler AG con-

cludes derivative ﬁnancial instruments with external ﬁnancial

institutions. These ﬁnancial instruments serve solely to hedge tracts without oﬀsetting.

risks relating to foreign exchange rates and interest rates and

to hedge commodity prices. They cover the underlying trans-

actions of the companies of the Daimler Group and the origi-

nal ﬁnancial transactions (underlying transactions) and are

placed together with them as far as possible in valuation

units.

The currency hedging contracts primarily comprise currency

forwards, most of which are charged on to companies of the

Group through internal derivatives. In addition, forward

exchange contracts and currency swaps are held to hedge

ﬁnancial receivables and liabilities from Group ﬁnancing. They

mainly serve to hedge the foreign-exchange risks of the com-

panies of the Group from the cash ﬂows expected with a high

degree of certainty from the automotive business. Currency

forwards are also held to hedge the risks connected with

ﬁnancial receivables and liabilities from the Group’s ﬁnancing.

Interest-rate contracts include interest-rate swaps as well as

With the transfer of operating activities in the hive-down of

Mercedes-Benz AG and Daimler Truck AG, the currency and

commodity price risks associated with the business activities

were transferred from Daimler AG to those companies with

economic eﬀect as of January 1, 2019. As the currency and

commodity-price hedging contracts existing at that date were interest/currency swaps. They are primarily used to minimize

no longer matched by underlying transactions, the existing

accounting valuation units at Daimler AG for these hedging

relationships were dissolved and a provision was recognized

for those contracts that had a negative fair value at the hive-

down date in the amount of that negative fair value. At

the risk of changes in interest rates. The commodity forwards

currently comprise commodity swaps and are charged on to

companies of the Group through internal derivatives.

The carrying amounts and fair values of derivative ﬁnancial

December 31, 2019, provisions recognized in the context of the instruments at the end of the reporting year and the prior

hive-down have a carrying amount of €276 million.

year are shown in table  C.17.

At the same time, in order to transfer to Mercedes-Benz AG

and Daimler Truck AG the hedging eﬀect of these external

derivatives existing at the hive-down date of January 1, 2019,

inverse intra-Group derivatives were concluded with those

The carrying amounts are taken from the items of the balance

sheet and relate to other assets, other liabilities, other provi-

sions, and prepaid expenses and deferred income.

C.17

Derivative ﬁnancial instruments: carrying amounts / fair values

Dec. 31, 2019

Dec. 31, 2018

Fair value

Carrying amount

Fair value

Carrying amount

In millions of euros

Assets

Foreign exchange contracts

Interest rate contracts

Commodity forward contracts

158

6

18

1,112

893

1

9

506

557

54

8

57

1

82

2,059

18

1,120

Liabilities

Foreign exchange contracts

Interest rate contracts

Commodity forward contracts

-331

-12

-18

-1,143

-309

-54

-1,506

-ꢁ38

-ꢁ15

-ꢁ12

-ꢁ65

-ꢁ611

-ꢁ348

-ꢁ73

-361

-ꢁ1,032

Balance

-179

553

-ꢁ56

88

26ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

C.18

Derivative ﬁnancial instruments: valuation units

Dec. 31, 2019

Negative

Hedging

instrument

Hedged

volume

Positive

fair value

In millions of euros

Exchange rate / interest rate risk

of assets and liabilities

Interest rate contracts

Foreign exchange contracts

53,207

464

76

5

-693

-2

Exchange rate risk of future transactions

Purchase price risk of future transactions

Foreign exchange contracts

Commodity forward contracts

34,446

410

909

2

-136

-52

Other assets and other liabilities include intra-Group deriva-

tives with positive fair values. Other provisions include intra-

Group derivatives with ﬁnancial institutions and intra-Group

derivatives between Daimler AG and Mercedes-Benz AG and

Daimler Truck AG with negative fair values. When they

become due, the provisions for derivatives outside and inside

the Group are used up, and the other assets for the deriva-

tives within the Group are reversed. The ﬁnancial eﬀects of

the intra-Group derivatives with positive market values and

Of the derivative ﬁnancial instruments held on the balance

sheet date in a nominal amount of €140,135 million, ﬁnancial

instruments in a total amount of €88,527 million serve as

hedging instruments in valuation units. Of that total, €34,910

million is accounted for by foreign-exchange contracts,

€53,207 million by interest-rate contracts and €410 million by

commodity forward contracts.

Table



C.18 shows the hedged exchange-rate, interest-rate

the matching external derivatives with negative market values and commodity-price risks included in valuation units.

fully oﬀset each other at maturity. In addition, other assets

and other liabilities include advance payments made and

received for interest-rate/currency swaps. Other provisions

also include negative market values and market-value

changes of derivatives not included in valuation units as well

as negative ineﬀectiveness from valuation units. Prepaid

expenses and deferred income include earnings eﬀects from

prematurely terminated valuation units with interest-rate

swaps through the early disposal of the underlying or hedging

transactions.

If derivative ﬁnancial instruments are included in valuation

units with the related underlying transactions, an eﬀectiveness

measurement is carried out both at the beginning of the hedg-

ing period and on each following balance sheet date upon

which the hedge exists. This does not apply if the underlying

transactions are also derivative financial instruments, as in this

case, effectiveness is automatically ensured due to mirroring.

In connection with the hedging of exchange-rate risks of

assets and liabilities, the conditions and parameters of the

underlying transaction and the hedging transaction are com-

pared with each other. With the hedging of future transactions,

the dollar-oﬀset method is mainly used. The risk management

system at the Daimler Group monitors the eﬀectiveness of

hedges.

The fair values of currency forwards are determined on the

basis of current ECB reference rates with consideration of

forward premiums or discounts. The fair values of interest-

rate contracts are determined on the basis of discounted

expected future cash ﬂows with the use of the market inter-

est rates applicable for the remaining time until maturity of

the ﬁnancial instruments. The fair values of commodity for-

wards are determined on the basis of current spot rates on

commodity exchanges with consideration of forward premi-

ums or discounts.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 27

Foreign exchange contracts

Commodity forward contracts

To transfer the economic eﬀects of currency hedging to Mer-

cedes-Benz AG and Daimler Truck AG, mirrored intra-Group

derivatives were concluded with these two companies for the

external derivatives existing at the hive-down date of January

To transfer the economic eﬀects of commodity hedging to

Mercedes-Benz AG and Daimler Truck AG, mirrored intra-

Group derivatives were concluded with these two companies

for the external derivatives existing at the hive-down date of

January 1, 2019, which are based on the same hedging rates as

1

, 2019, which are based on the same hedging rates as the

external derivatives. External currency hedging contracts are

combined with mirrored intra-Group hedging contracts to form tracts are combined with mirrored intra-Group hedging con-

the external derivatives. External commodity hedging con-

valuation units (microhedges). In economic terms, the positive

or negative eﬀects of currency hedging are thus incurred by

Mercedes-Benz AG and Daimler Truck AG. Daimler AG has no

ﬁnancial eﬀect from these transactions, as the external and

intra-Group derivatives oﬀset each other.

tracts to form valuation units (microhedges). In economic

terms, the positive or negative effects of commodity hedging

are thus incurred by other companies of the Group. These

transactions will have no financial impact on Daimler AG in

the future, as the external and internal derivatives offset each

other.

Currency forwards with Group-external counterparties of the

ﬁnancing activities are combined into valuation units (micro

hedges) with opposing hedges concluded within the Group.

Currency forwards with Group-external counterparties that are

not opposed by any corresponding hedges within the Group

Contingent liabilities

Contingent liabilities relate to potential future events, the

are included in valuation units with the related ﬁnancial receiv- occurrence of which would lead to an obligation. At the balance

ables and liabilities, provided that the documentation require-

ments are fulﬁlled. Provided that negative fair values from the

valuation of hedges are oﬀset by currency gains from the

underlying transactions, these derivatives are not accounted

for (freezing method); in this case, the corresponding losses

are recognized in proﬁt and loss only in the period when the

derivatives mature, simultaneously with the currency gains

sheet date, the contingent liabilities of Daimler AG were

reviewed with consideration of available knowledge about the

ﬁnancial position, cash ﬂows and proﬁtability of business

partners with regard to the risk situation. Daimler AG therefore

assesses the risk of possible claims on all the listed obligations

as unlikely. At December 31, 2019, contingent liabilities

amount to €94,611 million (2018: €86,437 million), primarily

from the underlying transactions. Provisions are recognized for consisting of guarantees. They include guarantees to domestic

any amounts in excess of that. The hedging period is generally

one to ﬁve years.

and foreign subsidiaries amounting to €94,569 million (2018:

€86,393 million), which primarily comprise guarantees pro-

vided to creditors of subsidiaries of Daimler AG, for example

for loans they have taken out and bonds they have issued

Interest rate contracts

Interest swaps and interest/currency swaps with Group-external and liabilities to banks.

counterparties are combined into valuation units (micro hedges)

with opposing hedges concluded within the Group. Interest-rate

contracts with Group-external counterparties that are not

opposed by any corresponding hedges within the Group are

included in valuation units with the related ﬁnancial receivables

Daimler AG has a commitment to provide a subsidiary with

ﬁnancial resources that will enable the subsidiary to meet all

of its payment obligations that are due by March 31, 2021.

and liabilities, provided that the documentation requirements are Guarantees were issued for the beneﬁt of third parties in a

fulﬁlled. If negative fair values from the valuation of pending

hedges are oﬀset by valuation gains from the underlying transac-

tions, these derivatives are not accounted for (freezing method).

Provisions are recognized for any amounts in excess of that. The

hedging period is one to a maximum of twelve years.

total amount of €42 million (2018: €44 million).

In the context of the hive-down, contingent liabilities were

transferred to Mercedes-Benz AG in an amount of €23 million

and to Daimler Truck AG in an amount of €22 million.

28ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Other ﬁnancial obligations

C.19

Business between Daimler AG and related parties

Other ﬁnancial obligations total €2,941 million (thereof due

in 2020: €1,700 million).

Associated

companies

Subsidiaries

Such obligations to subsidiaries amount to €816 million

In millions of euros

(thereof due in 2020: €632 million); such obligations to associ-

ated companies amount to €2 million (thereof due in 2020: €2

million).

Sales of services

and other income in 2019

102

178

742

273

59

1

Purchases of goods and services

and other expenses in 2019

Other ﬁnancial obligations resulting from rental and leasing

agreements amount to €573 million (thereof due in 2020: €123

million). Of that total, €196 million relates to subsidiaries

Receivables

at December 31, 2019

72

3

Payables

at December 31, 2019

(thereof due in 2020 €44 million). Rental obligations to prop-

erty management companies amount to €180 million (thereof

due in 2020: €41 million).

Subsequent liability

The remaining ﬁnancial obligations, in particular purchase

commitments, are of a magnitude typical for the industry.

As legal entities involved in the hive-down, Daimler AG, Mer-

cedes-Benz AG and Daimler Truck AG are jointly and severally

liable pursuant to Section 133 Subsections 1 and 3 of the Ger- Related party disclosures pursuant to

man Transformation Act (UmwG) for the liabilities of Daimler

AG incurred prior to the eﬀective date of the hive-down. Those

of the aforementioned legal entities to which the relevant liabil-

Section 285 No. 21 of the German Commercial

Code (HGB)

ities are not assigned under the hive-down agreement are lia-

ble, however, only for those liabilities if they fall due within ﬁve

Subsidiaries and associated companies

Most of the services supplied within the ordinary course of

years of the announcement of the entry of the hive-down in the business between Daimler AG and related parties comprise

commercial register of Daimler AG and claims therefrom are

established in court or in another manner as described in Sec-

tion 133 of the German Transformation Act (UmwG).

transactions with subsidiaries and associated companies and

are included in table C.19.



Board members

Throughout the world, Daimler AG has business relationships

with numerous entities that are also customers and/or suppliers

of Daimler AG. Those customers and/or suppliers include

companies that have a connection with some of the members of

the Supervisory Board or Board of Management of Daimler AG

or its subsidiaries.

The provisions existing in this context, in particular the proce-

dure for regulating the internal settlements between the par-

ticipating legal entities, are regulated in the hive-down agree-

ment of March 25, 2019.

The aforementioned period is ten years for pension obligations

based on the Company Pensions Act that existed before the

hive-down took eﬀect. Daimler AG does not expect any outﬂow Events af er the reporting period

of liquidity from the other two legal entities due to the special-

purpose assets available in a suﬃcient volume.

Transactions involving company law

On January 22, 2020, Daimler Nederland B.V. paid a dividend of

€

2,475 million to Daimler AG. Of this amount, €1,645 million

The potential obligations from subsequent liability pursuant to

Section 133 of the German Transformation Act (UmwG) and

from the risks from the internal settlement between Daimler

AG and Mercedes-Benz AG and Daimer Truck AG amount to

was taken from the capital reserve of Daimler Nederland B.V.,

thereby reducing the carrying amount of Daimler AG’s equity

interest in Daimler Nederland B.V. €830 million was distributed

from the retained earnings of Daimler Nederland B.V. and will

be recognized under income from subsidiaries at Daimler AG in

the year 2020.

€

24,307 million for Daimler AG (thereof due in 2020: €13,705

million).

According to the current appraisal, an actual cash outﬂow from As the sole shareholder in Mercedes-Benz AG, Daimler AG

Daimler AG is considered to be unlikely due to the assess- resolved at an Extraordinary Shareholders’ Meeting of Mer-

ments of the creditworthiness of Mercedes-Benz AG and Daim- cedes-Benz AG held on January 23, 2020 to increase the equity

ler Truck AG.

capital (share capital) and the capital reserve of Mercedes-

Benz AG by means of non-cash contributions of companies.

The companies contributed are Mercedes-Benz Österreich

GmbH and Daimler Nederland B.V..

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 29

At another Extraordinary Shareholders’ Meeting of Mercedes-

Legal proceedings

Benz AG on February 18, 2020, Daimler AG resolved to further

increase the equity capital and the capital reserve of Mer-

cedes-Benz AG through the contribution of the companies PT

Daimler AG and its subsidiaries are confronted with various

legal proceedings, claims as well as governmental investiga-

Mercedes-Benz Indonesia, Mercedes-Benz Romania S.R.L. and tions and orders (legal proceedings) on a large number of top-

Mercedes-Benz Slovakia.

ics, including vehicle safety, emissions, fuel economy, ﬁnancial

services, dealer, supplier and other contractual relationships,

intellectual property rights, product warranties, environmental

matters, antitrust matters (including actions for damages) and

shareholder matters. Legal proceedings relating to products

deal with claims on account of alleged vehicle defects. If the

outcome of such proceedings is detrimental to Daimler, the

Group may be required to pay substantial compensatory or

punitive damages or ﬁnes. Furthermore, the subsidiaries may

be required to undertake rectiﬁcation work, recall campaigns

In total, the two resolutions increased the equity of Mercedes-

Benz AG by €1,034 million. As a result, the carrying amount of

Daimler AG’s investment in Mercedes-Benz AG increased by

the same amount at.

Analogously to the situation described above, Daimler AG as

the sole shareholder of Daimler Truck AG resolved at the

Extraordinary Shareholders’ Meetings of Daimler Truck AG on

January 23, 2020 and on February 18, 2020 to contribute com- and other cost-intensive measures, with a negative impact on

panies to Daimler Truck AG by way of non-cash contributions.

The companies contributed are Mercedes-Benz Trucks Öster-

the earnings of Daimler AG due to proﬁt-and-loss-transfer

agreements. Legal proceedings may also have an impact on

reich GmbH, Mercedes-Benz Türk A.S., Mercedes-Benz Camio- the Group’s reputation.

nes y Buses Argentina S.A.U., Mercedes-Benz do Brasil Ltda.

and Mercedes-Benz Trucks & Buses Romania S.R.L. The carry-

ing amount of Daimler AG’s equity interest in Daimler Truck AG

increased by €756 million in accordance with the carrying

amounts of the companies contributed.

Diesel emission behavior: class action and other lawsuits

in the United States, Canada and Germany

As already reported, several consumer classaction lawsuits

were filed against Mercedes-Benz USA, LLC (MBUSA) in Fed-

eral Courts in the United States in early 2016. The main allega-

tion was the use of devices that impermissibly impair the

effectiveness of emission control systems in reducing

nitrogenoxide (NOX) emissions and which cause excessive

The companies Mercedes-Benz Türk A.S., Mercedes-Benz do

Brasil Ltda. and Mercedes-Benz Camiones y Buses Argentina

S.A.U. were acquired by Daimler AG from Daimler Nederland

B.V. before being contributed to Daimler Truck AG (contracts of emissions from vehicles with diesel engines. In addition, plain-

sale signed on January 13 and 20, 2020).

tiffs alleged that consumers were deliberately deceived in con-

nection with the advertising of Mercedes-Benz diesel vehicles.

Those consumer class actions were consolidated into one

class action pending against both Daimler AG and MBUSA in

the US District Court for the District of New Jersey, in which

the plaintiffs asserted various grounds for monetary relief on

behalf of a nationwide class of persons or entities who owned

In return for the contribution of the companies, Daimler AG

received, for each of the companies contributed, 1,000 shares

with a par value of €1 per share in Mercedes-Benz AG and

Daimler Truck AG respectively.

Personnel measures in production-related and administra- or leased certain models of Mercedes-Benz diesel vehicles as

tive areas in the years 2020 to 2022

of February 18, 2016. Daimler AG and MBUSA moved to dis-

miss the lawsuit in its entirety. By order dated December 6,

2016, the court granted Daimler AG’s and MBUSA’s motion to

dismiss and dismissed the lawsuit without prejudice, based on

In January 2020, Daimler reached an agreement with the Gen-

eral Works Council on a general company agreement, which,

among other things, regulates voluntary agreements on termi-

nation of employment primarily for employees in indirect areas plaintiffs’ failure to allege with sufficient specificity the adver-

(

i.e. in administrative and production-related areas). Discus-

tising that they contended had misled them. Plaintiffs subse-

quently filed an amended class action complaint in the same

court making similar allegations. The amended complaint also

adds as defendants Robert Bosch LLC and Robert Bosch

GmbH (collectively; “Bosch”), and alleges that Daimler AG and

MBUSA conspired with Bosch to deceive US regulators and

consumers. On February 1, 2019, the court granted in part and

denied in part Daimler AG’s and MBUSA’s subsequent motion

to dismiss. The case is ongoing as the court’s decision merely

addressed certain legal aspects of plaintiffs’ claims and did not

decide whether the plaintiffs can ultimately prove their claims,

whether the plaintiffs’ allegations are true, or whether their

claims have merit.

sions with employees on voluntary agreements on termination

of employment will begin in the second quarter of 2020.

.

30ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

On January 8, 2019, the Arizona State Attorney General filed a

civil complaint in Arizona state court against Daimler AG and

Diesel emission behavior: Governmental proceedings

As reported, several federal and state authorities and other

MBUSA making similar allegations that Arizona consumers had institutions worldwide have inquired about and/or are/have

been deliberately deceived in connection with the advertising

of Mercedes-Benz diesel vehicles. The state seeks monetary

penalties for violation of Arizona’s consumer protection laws.

been conducting investigations and/or administrative proceed-

ings and/or have issued administrative orders or, in the case of

the Stuttgart district attorney’s oﬃce, a ﬁne notice. These par-

ticularly relate to test results, the emission control systems

Another consumer class-action lawsuit against Daimler AG and used in Mercedes-Benz diesel vehicles and/or Daimler’s inter-

other companies of the Group containing similar allegations

was filed in Canada in April 2016. On June 29, 2017, the court

granted a procedural motion to certify certain issues for class

treatment, and on March 12, 2018, the court ordered the par-

ties to send a notice to the class by May 18, 2018, informing

class members that the litigation is ongoing and that they will

be bound by the outcome. That notice was sent, and class

action with the relevant federal and state authorities as well as

related legal issues and implications, including, but not limited

to, under applicable environmental, criminal and antitrust laws.

These authorities and institutions include, amongst others, the

U.S. Department of Justice (DOJ), which in April 2016

requested that Daimler AG review its certiﬁcation and admis-

sions processes related to exhaust emissions of diesel vehicles

members had until July 20, 2018 to opt out of the class to avoid in the United States by way of an internal investigation in coop-

being bound by subsequent rulings in the case.

eration with the DOJ, the U.S. Environmental Protection Agency

EPA), the California Air Resources Board (CARB) and other US

(

On July 14, 2017, an additional class action was filed in the

Superior Court of California, Los Angeles County, against

Daimler AG and other companies of the Group, alleging claims

similar to the existing US class action. That action was

state authorities, the European Commission, the German Fed-

eral Cartel Oﬃce (“Bundeskartellamt”), as well as national

antitrust authorities and other authorities of various foreign

states as well as the German Federal Ministry of Transport and

removed to Federal Court and, on October 31, 2017, was trans- Digital Infrastructure (BMVI) and the German Federal Motor

ferred to the District of New Jersey. On December 21, 2017, the Transport Authority (KBA). In the course of its formal investiga-

parties stipulated to dismiss, without prejudice, that lawsuit. It

may be filed again under specific conditions.

tion into possible collusion on clean emission technology, the

European Commission sent a statement of objections to Daim-

ler and other automobile manufacturers in April 2019. In this

context, Daimler ﬁled an application for immunity from ﬁnes

(leniency application) with the European Commission some

time ago. The Stuttgart district attorney’s oﬃce is conducting

criminal investigation proceedings against Daimler employees

concerning the suspicion of fraud and criminal advertising,

and, in May 2017, searched the premises of Daimler at several

locations in Germany. In February 2019, the Stuttgart district

attorney’s oﬃce also initiated a formal investigation proceed-

ing against Daimler AG with respect to an administrative

oﬀense. In September 2019, the Stuttgart district attorney’s

oﬃce issued a ﬁne notice against Daimler based on a negligent

violation of supervisory duties in the amount of €870 million

which has become legally binding, thereby concluding the

administrative oﬀense proceedings against Daimler.

Daimler AG and MBUSA, respectively, regard the foregoing

lawsuits in the United States and Canada as being without

merit and will defend against the claims.

In Germany, a multitude of lawsuits by investors alleging the

violation of disclosure requirements is pending. Plaintiffs con-

tend that Daimler AG did not immediately disclose inside in-

formation in connection with the emission behavior of its die-

sel vehicles and that it had made false and misleading public

statements. They further claim that the purchase price of their

Daimler shares would have been lower if Daimler had correctly

complied with its disclosure duties. In this context, both inves-

tors as well as Daimler AG have filed motions to initiate a

model proceeding in accordance with the Act on Model Pro-

ceedings in Capital Markets Disputes (KapMuG). Currently, no

model proceeding is pending. Daimler AG also regards these

lawsuits as being without merit and will defend against the

claims.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 31

In the years 2018 and 2019, KBA issued various administrative

emis-sions control technology, since the 1990s. On October 4,

orders holding that certain calibrations of speciﬁed functionali- 2017, all pending US class actions were centralized in one pro-

ties in certain Mercedes-Benz diesel vehicles are to be quali-

ﬁed as impermissible defeat devices and ordered subsequent

ceed-ing by the Judicial Panel on Multidistrict Litigation and

trans-ferred to the U.S. District Court for the Northern District

auxiliary provisions for the respective EC type approvals in this of California. On March 15, 2018, plaintiffs in the US class

respect, including stops of the ﬁrst registration and mandatory action amended and consolidated their complaints into two

recalls. Daimler has ﬁled timely objections against such admin- plead-ings, one on behalf of consumers and the other on

istrative orders in order to have the open legal issues resolved, behalf of dealers. On June 1, 2018, the court dismissed

if necessary, also by a court of law. In the course of its regular

market supervision, KBA is routinely conducting further re-

views of Mercedes-Benz vehicles and is asking questions

about technical elements of the vehicles. In light of the afore-

mentioned administrative orders issued by KBA, it is likely that

Mercedes-Benz U.S. International, Inc., Mercedes-Benz Vans,

LLC, and Daimler North America Corp., pursuant to the parties’

stipulation. Daimler AG and Mercedes-Benz USA, LLC (MBUSA)

remain parties in the case. On June 17, 2019, the court granted

mo-tions to dismiss in the consolidated US class action pro-

in the course of the ongoing and/or further investigations, KBA ceed-ings, albeit with leave to amend, and on August 15, 2019,

will issue additional administrative orders holding that other

Mercedes-Benz diesel vehicles are also equipped with imper-

the plaintiffs filed amended complaints making similar allega-

tions. Daimler AG and MBUSA regard the US and Canadian

missible defeat devices. Daimler has (in view of KBA’s interpre- lawsuits as being without merit, and will defend against the

tation of the law as a precaution) implemented a temporary

delivery and registration stop with respect to certain models,

also covering the used car, leasing and ﬁnancing businesses,

and is constantly reviewing whether it can lif this delivery and

registration stop in whole or in part. The new calibrations

requested by KBA are being processed, and for a certain pro-

portion of the vehicles, the relevant sof ware has already been

approved by KBA; the related recalls have insofar been initi-

ated. It cannot be ruled out that sof ware updates may be

reworked, further delivery and registration stops may be

ordered or resolved by the Company as a precautionary mea-

sure, also with a view to the used car, leasing and ﬁnancing

businesses, under the relevant circumstances.

claims.

In this context, Daimler AG may disclose that it filed a leniency

application with the European Commission some time ago. In

late October 2017, the European Commission conducted pre-

announced inspections with Daimler in Stuttgart (as well as

further inspections with other manufacturers) in order to fur-

ther clarify the facts of the case. In the third quarter of 2018,

the European Commission opened a formal investigation into

possible collusion on clean emission technology. In the course

of such investigation, the European Commission, in April 2019,

sent a statement of objections to Daimler and other automo-

bile manufacturers to which Daimler responded in time. At

present, Daimler does not expect this issue to have any mate-

rial impact on the company’s profitability, cash flow and finan-

cial situation.

Daimler has initiated further investigations and otherwise con-

tinues to fully cooperate with the authorities and institutions.

Except for the Stuttgart district attorney’s oﬃce’s administra-

tive oﬀense proceedings, the aforementioned inquiries, investi- Following the settlement decision by the European Commis-

gations, administrative proceedings and the replies to these

related information requests, the objection proceedings

against the administrative orders as well as Daimler’s internal

investigations are ongoing.

sion adopted on July 19, 2016, concluding the trucks antitrust

proceedings, Daimler AG and Daimler Truck AG facing custom-

ers’ claims for damages to a considerable degree. Respective

legal actions, class actions and other forms of legal redress

have been initiated in various states in and outside of Europe

and should further be expected. Daimler is taking appropriate

legal remedies to defend itself.

Antitrust law proceedings (including actions for damages)

Starting on July 25, 2017, a number of class actions have been

filed in the United States and Canada against Daimler AG and

other manufacturers of automobiles as well as various of their

North American subsidiaries. Plaintiffs allege to have suffered

damages because defendants engaged in anticompetitive

behavior relating to vehicle technology, costs, suppliers, mar-

kets, and other competitive attributes, including diesel

On June 23, 2016, the German Federal Cartel Office carried

out dawn raids at several car manufacturers and suppliers,

including Daimler AG, with regard to steel purchasing. Daimler

cooperated in full with the authority. In the fourth quarter of

2019, the proceedings were terminated by way of a settlement.

32ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Class action lawsuits Takata airbag inflators

Toll Collect

As already reported, class actions in connection with Takata

airbags are pending in Canada, the USA and Israel. The law-

suits are based on the allegation that, along with Takata enti-

ties and many other companies that sold vehicles equipped

with Takata airbag inflators, Daimler entities were allegedly

negligent in selling such vehicles, purportedly not recalling

them quickly enough, and failing to provide an adequate re-

placement airbag inflator. In detail: In August 2016, Mer-

cedes-Benz Canada (MB Canada) was added as a defendant

On July 4, 2018, through its subsidiary Daimler Financial Ser-

vices AG (since July 23, 2019 Daimler Mobility AG), Daimler AG

together with Deutsche Telekom AG notarized a settlement

agreement (hereinaf er: settlement) with the Federal Republic

of Germany which settles all arbitration proceedings in con-

nection with the involvement in the Toll Collect consortium,

which have been ongoing since 2004 and on July 6, 2018, the

arbitral tribunal issued an arbitration ruling on agreed terms

terminating the Toll Collect arbitration proceedings on the

to a putative nationwide class action pending in Ontario Supe- basis of the settlement. The ﬁnal operating permit for the toll

rior Court. In addition, Daimler AG and MBUSA were named

as defendants along with Takata companies in June 2017 in a

US nationwide class action, which was filed in New Jersey

Federal Court. In the third quarter of 2017, such lawsuit was

system was granted within the scope of the settlement.

All known and unknown claims from the toll agreement that

arose until March 31, 2018 are settled under the settlement

transferred to federal court in the Southern District of Florida provided that the related damage occurred before March 31,

for consolidation with other multidistrict litigation proceed-

ings. Further class action lawsuits in the USA were integrated

into the multiple district proceedings. In an order entered on

June 21, 2019, the court dismissed all consumer claims

against Daimler AG and some consumer claims against

MBUSA. However, one of the Multidistrict Litigation com-

plaints has been amended to assert claims by automotive

recyclers who allege injury because they are not able to re-

sell salvaged airbag inflators that are subject to the Takata

recall. The motions to dismiss against that complaint are still

pending. In February 2019, Daimler AG and its non-subsidiary

Israeli distributor (Colmobil) were named as defendants in an

Israel-wide class action alleging inadequacy of Takata recall

efforts in Israel. The previously reported lawsuit filed by the

State of New Mexico against MBUSA was dismissed without

prejudice on June 22, 2017. It may, however, be filed again

under specific conditions. Daimler AG continues to regard all

these lawsuits brought with regard to Mercedes-Benz vehi-

cles as being without merit, and the Daimler Group affiliates

respectively affected will further defend themselves against

the claims.

2018.

Irrespective of the settlement agreement, the guarantees from

the operator agreement or other additional orders remain unaf-

fected. To date, no guarantee claims have been asserted.

Accounting estimates and management judgments

Daimler AG recognizes provisions in connection with pending

or threatened proceedings to the extent a loss is probable and

can be reasonably estimated. Such provisions are recognized

in the ﬁnancial statements and are based on estimates. If

quantiﬁable, contingent liabilities in connection with legal pro-

ceedings are disclosed in the ﬁnancial statements. Risks

resulting from legal proceedings sometimes cannot be

assessed reliably or only to a limited extent. Consequently,

provisions recognized for some legal proceedings may turn out

to be insuﬃcient once such proceedings have ended. Daimler

AG may also become liable for payments in legal proceedings

for which no provisions were recognized and/or contingent lia-

bilities were disclosed. Uncertainty exists with regard to the

amounts or due dates of possible cash outﬂows. Although the

ﬁnal result of any such proceedings could materially aﬀect

Daimler’s operating results and cash ﬂows for a particular

reporting period, Daimler believes that it should not exert a

sustained inﬂuence onts ﬁnancial position.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 33

Remuneration of the members of the Board

of Management and the Supervisory Board

bonus (deferral) and the PPSP with a long-term orientation –

the amounts to be paid out can deviate signiﬁcantly from

the values described, depending on the development of the

Daimler share price and on the achievement of the relevant

The following information regarding the remuneration of the

members of the Board of Management and of the Supervisory

Board is disclosed on an individual basis in the Remuneration

Report. The Remuneration Report is a component of the

Combined Management Report for Daimler AG and the Daimler the Remuneration Report.

Group.

target parameters. Upward deviation is limited. Both compo-

nents can also be zero. Further information on share-based

remuneration is provided in the

E

“Equity” chapter and in

In 2019, €8.8 million was ﬁxed, that is, non-performance-

related remuneration (2018: €9.3 million), €2.0 million (2018:

€5.0 million) was short- and medium-term performance-

Board of Management remuneration

The total remuneration (excluding retirement beneﬁt commit-

ments) granted to the members of the Board of Management of related variable remuneration (annual bonus with deferral) and

Daimler AG pursuant to Section 285 No. 9 of the German Com- €13.3 million was variable performance-related remuneration

mercial Code (HGB) is calculated as the total of the amounts of granted in 2018 with a long-term incentive eﬀect (PPSP:ꢁ266,128

–

the base salary in 2019,

the half of the annual bonus for 2019 payable in 2020 with

its value at the balance sheet date,

phantom shares to €50.00) (2018: €10.2 million,ꢁ145,775 phan-

tom shares to €70.13). This adds up to a total of €24.1 million

for 2019 (2018: €24,5 million).

–

the half of the medium-term share-based component of the

annual bonus for 2019 (“deferral”) payable in 2021 with its

value at the balance sheet date (entitlement depending on

the development of Daimler’s share price compared with

the STOXX Europe Auto Index),

The members of the Board of Management are entitled to a

company pension. The system upon which that pension is based

was last adjusted by the Supervisory Board for members newly

appointed as of 2012. Service cost and present value have

been calculated with consideration of the parameters used to

calculate the pension obligation. The service cost of the pension

obligation in 2019 was €2.0 million (2018: €2.2 million). The

present value of the total obligation at December 31, 2019 was

–

the value of the long-term share-based remuneration

(

Performance Phantom Share Plan – PPSP) at the time when

granted in 2018 (payable in 2022), and

taxable non-cash beneﬁts in 2019 and other fringe beneﬁts.

€

28.3 million (2018: €73.4 million). Taking age and years of

service into consideration, the individual pensions, service costs

and present values are as shown in table C.20.

For both of the share-based components of remuneration –

both the deferred payment of the second 50% of the annual



C.20

Individual entitlements, service costs and present values for members of the Board of Management

Present value¹

Annual pension

Service cost

(for pension,

pension capital and

Daimler Pensions Plan)

of obligations

(for pension,

(

as regulated

until 2005)

as of age 60

pension capital and

Daimler Pensions Plan)

In thousands of euros

2

019

-

–

260

255

3,537

2,632

Ola Källenius

2018

2

019

-

–

250

244

3,429

3,011

Martin Daum

2018

2

019

-

254

1,567

Renata Jungo Brüngger

Wilfried Porth

2018

–

251

1,224

2

2018

019

156

-

9,593

9,525

234

2

019

-

155

2,714

Markus Schäfer²

Britta Seeger

2018

-

2

2018

019

-

–

254

247

1,724

1,285

2

019

-

250

5,647

Hubertus Troska

Harald Wilhelm³

Bodo Uebber

2018

–

244

4,977

2

2018

019

-

–

217

–

131

-

2

2018

019

-

312

734

-

275

15,344

2

019

-

Dr. Dieter Zetsche

Total

2018

1,050

–

35,378

2019

2

156

1,481

1,952

2,209

28,342

73,376

018

1

The amounts of the present values are mainly the result of the low level of the underlying interest rates.

Mr. Schäfer pro rate as of May 22, 2019

2

ꢃ Mr. Wihelm pro rata as of April 1, 2019

3

4ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

In the case of early termination of a service contract without

an important reason, Board of Management service contracts

include commitments to payment of the base salary and pro-

vision of a company car until the end of the original service

period at a maximum. However, entitlement to the payment of

the annual bonus exists only pro-rata for the time until the

termination of the service contract. Entitlement to payment of

the performance-related component of remuneration with a

Disclosures pursuant to Sectionꢁ160

Subsectionꢁ1 No. 8 of the German Stock

Corporation Act (AktG)

At the balance sheet date of December 31, 2019, shareholdings

in the Company exist that were communicated pursuant to Sec-

tion 33 Subsection 1 and Section 21 Subsection 1 [old version]

of the German Securities Trading Act (WpHG) and disclosed

long-term incentive eﬀect (PPSP) that has already been allocated pursuant to Section 40 Subsection 1 and Section 26 Subsec-

is deﬁned by the conditions of the respective plans. To the

extent that the beneﬁts described above are subject to the pro-

visions of the so-called severance cap of the German Corpo-

rate Governance Code, their total including fringe beneﬁts is

limited to double the annual remuneration and may not

exceed the total remuneration for the remaining period of the

service contract.

tion 1 [old version] of the WpHG as follows:

Bank of America Corporation, Wilmington, Delaware, USA,

notiﬁed us on December 27, 2019 pursuant to Section 33 Sub-

section 1 of the German Securities Trading Act (WpHG), that its

percentage of voting rights in Daimler AG, Mercedesstr. 120,

70372 Stuttgart, Germany, exceeded the threshold of 5% on

November 4, 2019 and amounts to 6.18% (equal to 66,046,224

out of a total of 1,069,837,447 voting rights) as of that date. Of

these voting rights, 6.18% (equal to 66,046,224 voting rights)

are attributable to Bank of America, Wilmington, Delaware,

USA, pursuant to section 34 WpHG. 3% or more of the voting

rights (6.11%) are held directly by Merrill Lynch International as

of that date.

Payments made in 2019 to former members of the Board of

Management of Daimler AG and their survivors amounted to

a total of €19.5 million (2018: €16.2 million). Pension obliga-

tions for former members of the Board of Management and

their survivors amounted to €292,6 million at December 31,

2019 (2018: €234.8 million).

In 2019, no advances or loans were made to members of the

Board of Management of Daimler AG.

BlackRock, Inc., Wilmington, Delaware, USA, notiﬁed us on

December 2, 2019 pursuant to Section 33 Subsection 1 of the

German Securities Trading Act (WpHG) that its percentage of

voting rights in Daimler AG, Mercedesstr. 120, 70372 Stuttgart,

Germany, fell below the threshold of 5% on November 27, 2019

and amounts to 4.47% (equal to 47.858.650 out of a total of

1,069,837,447 voting rights) as of that date. Of these voting

Supervisory Board remuneration

Total remuneration for the members of the Supervisory Board

of Daimler AG amounted to €4.3 million in 2019 (2018: €4.2

million). The remuneration of the members of the Supervisory

Board does not include a performance-related variable compo- rights, 4.47% (equal to 47,858,650 voting rights) are to be

nent.

attributed to BlackRock, Inc. Wilmington, Delaware, USA, pur-

suant to section 34 of the WpHG.

With the exception of the remuneration paid to the members

of the Supervisory Board representing the employees in accor-

dance with their contracts of employment, no remuneration

The People`s Republic of China, Beijing, China, notiﬁed us on

August 9, 2019 pursuant to Section 33 Subsection 1 of the Ger-

was paid to the members of the Supervisory Board for services man Securities Trading Act (WpHG), that its percentage of vot-

provided personally beyond their board and committee activities

in 2019, in particular for advisory or agency services.

ing rights in Daimler AG, [at that time] Mercedesstr. 137, 70372

Stuttgart, Germany, reached the threshold of 5% on August 7,

2019 and amounts to 5.00% (equal to 53,491,873 out of a total

In 2019, no advances or loans were made to members of the

Supervisory Board of Daimler AG.

of 1,069,837,447 voting rights) as of that date. 3% or more of

the voting rights are held directly by Investment Global Co., Ltd.

The notiﬁcation was made on the occasion of touching the

threshold of 5% of the voting rights in Daimler AG by Investment

Global Co., Ltd., an indirect subsidiary of the Beijing Automotive

Group Co., Ltd.

Li Shufu, notiﬁed us on December 5, 2018 pursuant to Section

3

3 Subsection 1 in conjunction with Section 37 of the German

Securities Trading Act (WpHG) that its percentage of voting

rights in Daimler AG, [at that time] Mercedesstr. 137, 70372

Stuttgart, Germany, exceeded the threshold of 5% on Decem-

ber 3, 2018 and amounts to 9.69% (equal to 103,619,340 out of

a total of 1,069,837,447 voting rights) as of that date. Of these

voting rights, 9.69% (equal to 103,619,340 voting rights) are to

be attributed to Li Shufu pursuant to Section 34 of the WpHG.

3

% or more of the voting rights (9,69 %) are held directly by

Tenaciou3 Prospect Investment Limited as of that date. The

notiﬁcation was made on the occasion of touching a threshold

at subsidiary level as a result of a change in the holding struc-

ture.

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 35

Harris Associates L.P., Wilmington, Delaware, USA, notiﬁed

Bank of America, Wilmington, Delaware, USA, notiﬁed us on

February 3, 2020 pursuant to Section 33 Subsection 1 of the

German Securities Trading Act (WpHG) that its percentage of

voting rights in Daimler AG, Mercedesstr. 120, 70372 Stutt-

gart, Germany, exceeded the threshold of 5% on January 29,

2020 and amounts to 6.62% (equal to 70,799,378 out of a total

of 1,069,837,447 voting rights) as of that date. Of these voting

rights, 6.62% (equal to 70,799,378 voting rights) are to be

attributed to Bank of America, Wilmington, Delaware, USA,

pursuant to section 34 of the WpHG.3% or more of the voting

us on October 22, 2018 pursuant to Section 33 Subsection 1

of the German Securities Trading Act (WpHG) that its percent-

age of voting rights in Daimler AG, [at that time] Mercedesstr.

1

37, 70372 Stuttgart, Germany, fell below the threshold of 5%

on October 16, 2018 and amounts to 4.93% (equal to

2,723,503 out of a total of 1,069,837,447 voting rights) as of

5

that date. Of these voting rights, 4.93% (equal to 52,723,503

voting rights) are to be attributed to Harris Associates L.P.,

Wilmington, Delaware, USA, pursuant to Section 34 of the

WpHG. 3% or more of the voting rights are held directly by Har- rights (6.56%) are held directly by Merrill Lynch International as

ris Associates Investment Trust as of that date. On November

, 2018, Harris Associates Investment Trust, Boston, Massa-

of that date.

1

chusetts, USA, notiﬁed us pursuant to Section 33 Subsection 1

of the WpHG that its voting rights in Daimler AG fell below the

threshold of 3% on October 29, 2018 and amounted to 2.99%

Declaration of Compliance with the German

Corporate Governance Code

(equal to 31,994,625 out of a total of 1,069,837,447 voting

rights) as of that date.

The mandatory statement pursuant to Section 161 of the

German Stock Corporation Act (AktG) has been issued by the

Board of Management and the Supervisory Board and is

permanently accessible at

Renault S. A., Boulogne-Billancourt, France, has notiﬁed us

pursuant to Section 21 Subsection 1 of the German Securities

Trading Act (WpHG) [old version] that its percentage holding of

the voting rights in Daimler AG, [at that time] Mercedesstr. 137,

_whttps://www.daimler.com/dai/

dcgk/.

7

0372 Stuttgart, Germany, exceeded the threshold of 3% on

April 28, 2010 and amounts to 3.10% (32,896,756 voting rights)

on that day. There of 16,448,378 voting rights (representing

1

.55% of the voting rights in Daimler AG) directly held by Nis-

san Motor Co. Ltd. are attributable to Renault S. A. pursuant to

Section 22 Subsection 2 of the WpHG [old version].

Nissan Motor Co. Ltd., Yokohama, Japan, has notiﬁed us pur-

suant to Section 21 Subsection 1 of the German Securities

Trading Act (WpHG) [old version] that its percentage holding of

the voting rights in Daimler AG, [at that time] Mercedesstr. 137,

7

0372 Stuttgart, Germany, exceeded the threshold of 3% on

April 28, 2010 and amounts to 3.10% (32,896,756 voting rights)

on that day. Thereof 16,448,378 voting rights (representing

1

.55% of the voting rights in Daimler AG) directly held by

Renault S. A. are attributable to Nissan Motor Co. Ltd. pursu-

ant to Section 22 Subsection 2 of the WpHG [old version].

The Kuwait Investment Authority as Agent for the Govern-

ment of the State of Kuwait, Kuwait City, State of Kuwait, has

notiﬁed us pursuant to Section 21 Subsection 1 of the German

Securities Trading Act [old version] that the voting rights of the

State of Kuwait in Daimler AG, [at that time] Mercedesstr. 137,

7

0372 Stuttgart, Germany, exceeded the threshold of 5% on

April 22, 2010 and that it held 5.33% (56,589,320 voting rights)

on that day. According to the notiﬁcation, all voting rights are

directly held.

Af er the balance sheet date, the company received a further

notiﬁcation concerning the shareholding of Bank of America,

Wilmington, Delaware, USA, pursuant to Section 33 Subsec-

tion 1 of the German Securities Trading Act (WpHG), which,

pursuant to Section 40 Subsection 1 of the WpHG was dis-

closed as follows:

36ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Members of the Board of Management and their mandates

Members of the Board of Management

Supervisory board memberships/directorships

Ola Källenius

Chairman of the Board of Management Daimler AG/

Mercedes-Benz Cars

Internal directorships

Chairman of the Supervisory Board of Daimler Truck AG (since

September 24, 2019)

(

since May 22, 2019)

Mercedes AMG High Performance Powertrains Ltd. –

Chairman (until May 22, 2019)

(until May 22, 2019: Group Research & Mercedes-Benz Cars

Development)

Appointed until May 2024

Mercedes-Benz Formula E Ltd. (until May 22, 2019)

Mercedes-Benz Grand Prix Ltd. (until May 22, 2019)

External directorships

HERE International B. V. (until April 5, 2019)

Shenzhen DENZA New Energy Automotive Co., Ltd. (until May

22, 2019)

Tetra Laval Group

Dr.-Ing. Dieter Zetsche

Chairman of the Board of Management Daimler AG/

Mercedes-Benz Cars

Internal directorships

None

Resignation with effect as of the end of the Annual Meeting

External directorships

TUI AG

Veta Health LLC

2019 (May 22, 2019)

Martin Daum

Daimler Trucks & Buses

Appointed until February 2022

Internal directorships

None

External directorships

Beijing Foton Daimler Automotive Co., Ltd.

Renata Jungo Brüngger

Integrity and Legal Affairs

Appointed until December 2023

Internal directorships

None

External directorships

Münchener Rückversicherungs-Gesellschaft

Aktiengesellschaft in München

Wilfried Porth

Internal directorships

Member of the Supervisory Board of Mercedes-Benz AG (since

November 1, 2019)

Human Resources and Director of Labor Relations

&

Mercedes-Benz Vans

Appointed until April 2022

Member of the Supervisory Board of Daimler Truck AG (since

November 1, 2019

External directorships

VfB Stuttgartꢁ1893 AG – Vice Chairman

Markus Schäfer

Internal directorships

Mercedes AMG High Performance Powertrains Ltd. (since May

22, 2019)

Group Research and Merceds-Benz Cars Development

(since May 22, 2019)

Appointed until May 2024

Mercedes-Benz Grand Prix Ltd. – Chairman (since May 22,

2019

Mercedes-Benz Formula E Ltd. (since March 1, 2019)

External directorships

Shenzhen DENZA New Energy Automotive Co., Ltd. (since May

2

2, 2019)

smart Automobile Co., Ltd. (since December 27, 2019)

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 37

Members of the Board of Management

Supervisory board memberships/directorships

Britta Seeger

Mercedes-Benz Cars Marketing & Sales

Appointed until December 2024

Internal directorships

Member of the Supervisory Board of Daimler Mobility AG

Mercedes-Benz (China) Ltd. – Vice Chairman

Mercedes-Benz Formula E Ltd.

Mercedes-Benz Grand Prix Ltd.

Mercedes-Benz South Africa Ltd.

External directorships

Beijing Mercedes-Benz Sales Service Co., Ltd.

Laureus World Sports Awards Ltd.

smart Automobile Co., Ltd. (since December 27, 2019)

Hubertus Troska

Internal directorships

Member of the Supervisory Board of Daimler Truck AG (since

November 1, 2019)

Greater China

Appointed until December 2025

Daimler Greater China Ltd. – Chairman

Daimler Truck China Limited – Chairman (since September 1,

2

019)

Daimler Northeast Asia Parts Trading & Services Co., Ltd. –

Chairman (until March 1, 2019)

Daimler Trucks and Buses (China) Ltd. – Chairman

Daimler Vans Hong Kong Ltd. – Chairman

Mercedes-Benz Auto Finance Ltd.

Mercedes-Benz Leasing Co., Ltd.

Mercedes-Benz (China) Ltd.

Mercedes-Benz Hong Kong Ltd.

Mercedes-Benz Taiwan Ltd.

External directorships

BAIC Motor Corporation Ltd.

Beijing Mercedes-Benz Sales Service Co., Ltd. – Chairman

Beijing Benz Automotive Co., Ltd. – Vice Chairman

Beijing Foton Daimler Automotive Co., Ltd. – Vice Chairman

Fujian Benz Automotive Co., Ltd. – Vice Chairman

Shenzhen DENZA New Energy Automotive Co., Ltd. – Chairman

smart Automobile Co., Ltd. (since December 27, 2019)

Bodo Uebber

Finance & Controlling/Daimler Financial Services

Appointed until December 2019

Internal directorships

Daimler Financial Services AG – Chairman (until May 22, 2019)

Mercedes-Benz Grand Prix Ltd. (until May 22, 2019)

Resignation with effect as of the end of the Annual Meeting

2019 (May 22, 2019)

External directorships

BAIC Motor Corporation Ltd. (until May 22, 2019)

Bertelsmann SE & Co. KGaA/Bertelsmann

Management SE – Chairman of the Audit and Finance Commit-

tee

Delta Topco Ltd.(until May 22, 2019)

adidas AG (since May 9, 2019)

Harald Wilhelm

since April, 1 2019)

Finance & Controlling / Daimler Mobility

Appointed until March 22

Internal directorships

Chairman of the Supervisory Board of Daimler Mobility AG

(since May 23, 2019)

Member of the Supervisory Board of Mercedes-Benz AG (since

November 1, 2019)

(

Member of the Supervisory Board of Daimler Truck AG. (since

November 1, 2019)

External directorships

BAIC Motor Corporation Ltd. (since June 18, 2019)

38ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Members of the Supervisory Board and their mandates

Members of the Supervisory Board

Other supervisory board memberships/directorships

Dr. Manfred Bischoff

Chairman of the Supervisory Board of Daimler AG

Elected until 2021

Mercedes-Benz AG – Chairman (since September 24, 2019)**

SMS Holding GmbH – Member of the Shareholders’ Committee

(until December 31, 2019)

Michael Brecht*

Mercedes-Benz AG (since September 24, 2019)**

Daimler Truck AG (since September 24, 2019)**

Deputy Chairman of the Supervisory Board of Daimler AG;

Chairman of the General Works Council, Daimler Group

and Daimler AG;

Chairman of the Works Council at the Mercedes-Benz plant in

Gaggenau

Elected until 2023

Dr. Paul Achleitner

Chairman of the Supervisory Board of Deutsche Bank AG

Elected until 2020

Deutsche Bank AG – Chairman

Bayer AG

Bader M. Al Saad

Daimler Truck AG (since November 1, 2019)**

Kuwait Investment Authority

Kuwait Fund for Economic Development

BlackRock Inc. (since May 23, 2019)

Former Chairman and Managing Director of the Executive

Committee of the Board of Directors of Kuwait Investment

Authority

Elected until 2022

Sari Baldauf

Daimler Truck AG (since September 24, 2019)**

Vexve Holding Oy – Chairwoman

Nokia Oyj

Former Executive Vice President and General Manager of the

Networks Business Group of Nokia Corporation

Elected until 2023

Michael Bettag*

Chairman of the Works Council at the Mercedes-Benz sales

and service center in Nuremberg

Elected until 2023

Dr. Clemens Börsig

Daimler Truck AG (since September 24, 2019)**

Linde AG (until April 8, 2019)

Linde Intermediate Holding AG (until August 7, 2019)

Linde plc

Former Chairman of the Supervisory Board of

Deutsche Bank AG

Elected until 2022

Emerson Electric Co.

Raymond Curry*

Secretary-Treasurer United Auto Workers (UAW)

Elected until 2023

Dr. Jürgen Hambrecht

Chairman of the Supervisory Board of BASF SE

Elected until 2023

Daimler Truck AG (since September 24, 2019)**

BASF SE - Chairman

Fuchs Petrolub SE – Chairman (until May 7, 2019)

Trumpf GmbH + Co. KG – Chairman

Michael Häberle*

Chairman of the Works Council at the Mercedes-Benz plant in

Mercedes-Benz AG (since September 24, 2019)**

Untertürkheim

Elected until 2023

*

Representative of the employees; **Group Mandate

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTESꢀ 39

Members of the Supervisory Board

Other supervisory board memberships/directorships

Petraea Heynike

Former Executive Vice President of the Executive Board

of Nestlé S. A.

Mercedes-Benz AG (since September 24, 2019)**

Elected until 2021

Joe Kaeser

Mercedes-Benz AG (since September 24, 2019)**

Allianz Deutschland AG

NXP Semiconductors N.V.

Chairman of the Board of Management of Siemens AG

Elected until 2024

Ergun Lümali*

Deputy Chairman of the Group Works Council at the

Daimler Group;

Mercedes-Benz AG (since September 24, 2019)**

Daimler Truck AG (since September 24, 2019)**

Deputy Chairman of the General Works Council at Daimler AG;

Chairman of the Works Council at the Mercedes-Benz plant in

Sindelfingen

Elected until 2023

Dr. Bernd Pischetsrieder

Chairman of the Supervisory Board of Münchener

Mercedes-Benz AG (since September 24, 2019)**

Münchener Rückversicherungs-Gesellschaft

Rückversicherungs-Gesellschaft Aktiengesellschaft in München Aktiengesellschaft in München – Chairman (until April 30,

Elected until 2024

2019)

Tetra Laval Group

Elke Tönjes-Werner*

Deputy Chairwoman of the Works Council at the

Mercedes-Benz plant in Bremen

Elected until 2023

Sibylle Wankel*

Mercedes-Benz AG (since November 1, 2019)**

General Legal Counsel of the German Metalworkers’ Union

(

IG Metall)

Elected until 2023

Dr. Frank Weber*

Head of BodyTEC Center, Mercedes-Benz AG;

Chairman of the Managemen Representatives Committee

at the Daimler Group

Elected until 2023

Marie Wieck*

Mercedes-Benz AG (since November 1, 2019)**

General Manager IBM Blockchain (until December31, 2019)

Elected until 2023

Dr. Sabine Zimmer*

Manager Vocational Training Policies, Germany, Daimler AG

Elected until 2023

Roman Zitzelsberger*

Daimler Truck AG (since September 24, 2019)**

ZF Friedrichshafen AG (since November 21, 2019)

MTU Friedrichshafen GmbH (until December 31, 2019)

Rolls-Royce Power Systems AG (until January 31, 2020)

German Metalworkers’ Union (IG Metall)

District Manager Baden-Württemberg

Elected until 2023

*

Representative of the employees; ** Group Mandate

4

0ꢀ C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Committees of the Supervisory Board:

Committee pursuant to Section 27 Subsection 3

of the German Codetermination Act (MitbestG)

Dr. Manfred Bischoﬀ – Chairman

Michael Brecht*

Dr. Jürgen Hambrecht

Roman Zitzelsberger*

Presidential Committee

Dr. Manfred Bischoﬀ – Chairman

Michael Brecht*

Dr. Jürgen Hambrecht

Roman Zitzelsberger*

Audit Committee

Dr. Clemens Börsig – Chairman

Michael Brecht*

Joe Kaeser

Ergun Lümali*

Nomination Committee

Dr. Manfred Bischoﬀ – Chairman

Dr. Paul Achleitner

Sari Baldauf

Legal Aﬀairs Committee

(

since July 24, 2019)

Dr. Clemens Börsig – Chairman

Michael Brecht*

Dr. Manfred Bischoﬀ

Michael Häberle*

Sibylle Wankel*

Marie Wieck

*

Representative of the employees

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES 41

Statement of Investments

pursuant to Section 285 of the German Commercial Code (HGB)

in conjunction with Section 286 Subsection 3 Sentenceꢁ1 No.ꢁ1

and Subsection 3 Sentence 2 of the German Commercial Code (HGB)

The statement of investments of Daimler AG pursuant to

omitted pursuant to Section 286 Subsection 3 Sentenceꢁ1 No.ꢁ1

Section 285 of the German Commercial Code (HGB) is presented of the HGB if such information is of minor relevance for a fair

as follows. For information regarding equity and earnings,

IFRS values are generally used for fully consolidated companies.

Information on equity, earnings and other investments is

presentation of the ﬁnancial position, cash ﬂows and proﬁt-

ability of Daimler AG.

C.21

Name of the Company

Domicile, Country

Capital

Equity in Net income Footnote

share in millions of €

(loss) in

1

%

millions of €

I. Consolidated subsidiaries

Athlon Beheer International B.V.

Athlon Beheer Nederland B.V.

Athlon Car Lease Belgium N.V.

Athlon Car Lease International B.V.

Athlon Car Lease Italy S.R.L.

Schiphol, Netherlands

Machelen, Belgium

Schiphol, Netherlands

Rome, Italy

100.00

80.00

–

315

–

35

–

468

–

24

–

Athlon Car Lease Nederland B.V.

Athlon Car Lease Polska Sp. z o.o.

Athlon Car Lease Portugal, lda

Athlon Car Lease Rental Services B.V.

Athlon Car Lease Rental Services Belgium N.V.

Athlon Car Lease S.A.S.

Schiphol, Netherlands

Warsaw, Poland

112

–

26

–

Oeiras, Portugal

–

Schiphol, Netherlands

Machelen, Belgium

Le Bourget, France

Alcobendas, Spain

Hoofddorp, Netherlands

Le Bourget, France

Düsseldorf, Germany

Schiphol, Netherlands

Machelen, Belgium

Düsseldorf, Germany

Malmö, Sweden

–

Athlon Car Lease Spain, S.A.

–

Athlon Dealerlease B.V.

–

Athlon France S.A.S.

–

Athlon Germany GmbH

–

Athlon Mobility Consultancy B.V.

Athlon Mobility Consultancy N.V.

Athlon Rental Germany GmbH

Athlon Sweden AB

–

Athlon Switzerland AG

Schlieren, Switzerland

Irvine, USA

–

AutoGravity Corporation

-5

442

–

-29

71

–

Banco Mercedes-Benz do Brasil S.A.

Brooklands Estates Management Limited

Campo Largo Comercio de Veículos e Peças Ltda.

CARS Technik & Logistik GmbH

CLIDET NO 1048 (Proprietary) Limited

Conemaugh Hydroelectric Projects, Inc.

DA Investments Co. LLC

São Paulo, Brazil

100.00

4

3

Milton Keynes, United Kingdom

Campinas, Brazil

–

Wiedemar, Germany

Centurion, South Africa

Wilmington, USA

–

Wilmington, USA

–

DAF Investments, Ltd.

Wilmington, USA

–

Daimler Australia/Paciﬁc Pty. Ltd.

Daimler Brand & IP Management GmbH & Co. KG

Daimler Buses North America Inc.

Daimler Canada Finance Inc.

Melbourne, Australia

Stuttgart, Germany

Oriskany, USA

122

–

86

–

4

Montreal, Canada

Halifax, Canada

260

–

5

Daimler Canada Investments Company

Daimler Capital Services LLC

–

Wilmington, USA

49

53

–

33

13

–

Daimler Ceská republika Holding s.r.o.

Daimler Colombia S. A.

Prague, Czech Republic

Bogota D.C., Colombia

Singapore, Singapore

Daimler Commercial Vehicles South East Asia Pte. Ltd.

–

42

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES

Name of the Company

Domicile, Country

Capital

Equity in Net income Footnote

share in millions of €

(loss) in

1

%

millions of €

Daimler Compra y Manufactura Mexico S. de R.L. de C.V. Mexico City, Mexico

100.00

313

39

Daimler Export and Trade Finance GmbH

Berlin, Germany

–

3

4

Daimler Finance North America LLC

Wilmington, USA

Singapore, Singapore

Chennai, India

Daimler Financial Services Africa & Asia Paciﬁc Ltd.

Daimler Financial Services India Private Limited

Daimler Financial Services Investment Company LLC

Daimler Financial Services México, S. de R.L. de C.V.

–

222

154

170

–

6

Wilmington, USA

Mexico City, Mexico

-50

26

–

4

Daimler Financial Services, S.A. de C.V., S.O.F.O.M.,

E.N.R.

Daimler Fleet Management GmbH

Daimler Fleet Management Singapore Pte. Ltd.

Daimler Fleet Management South Africa (Pty.) Ltd. i. L.

Daimler Fleet Management UK Limited

Daimler Fleet Services A.S.

Stuttgart, Germany

Singapore, Singapore

Centurion, South Africa

Milton Keynes, United Kingdom

Istanbul, Turkey

100.00

65.00

20

–

3

2

–

100.00

–

Daimler Fleetboard GmbH

Stuttgart, Germany

Beijing, China

–

3

Daimler Greater China Ltd.

3.519

753

–

Daimler Grund Services GmbH

Schönefeld, Germany

Chennai, India

–

Daimler India Commercial Vehicles Private Limited

Daimler Insurance Agency LLC

–

Wilmington, USA

–

Daimler Insurance Services GmbH

Daimler Insurance Services Japan Co., Ltd.

Daimler Insurance Services UK Limited

Daimler International Finance B.V.

Daimler International Nederland B.V.

Daimler Investments US Corporation

Daimler Ladungsträger GmbH

Stuttgart, Germany

Tokyo, Japan

–

3

–

Milton Keynes, United Kingdom

Utrecht, Netherlands

Wilmington, USA

–

473

12.467

–

-66

18

–

Sindelﬁngen, Germany

Mexico City, Mexico

Beijing, China

63

–

3

Daimler Manufactura, S. de R.L. de C.V.

Daimler Mexico, S.A. de C.V.

–

742

–

45

–

Daimler Mobility & Technology Service Co., Ltd.

Daimler Mobility AG

Stuttgart, Germany

Melbourne, Australia

São Bernardo do Campo, Brazil

Leinfelden-Echterdingen, Germany

Wilmington, USA

516

–

3

DAIMLER MOBILITY AUSTRALIA PTY LTD

Daimler Mobility Brasil Holding S.A.

Daimler Mobility Services GmbH

Daimler Motors Investments LLC

Daimler Nederland B.V.

–

212

286

–

4

–

Utrecht, Netherlands

Wilmington, USA

2.627

53

-19

10

451

–

Daimler Nederland Holding B.V.

Daimler North America Corporation

Daimler North America Finance Corporation

8.154

–

4

Newark, USA

Daimler Northeast Asia Parts Trading and Services Co.,

Ltd.

203

175

Beijing, China

100.00

Daimler Parts Brand GmbH

Stuttgart, Germany

Bremen, Germany

100.00

74.90

.

–

3

Daimler Re Brokers GmbH

Daimler Re Insurance S.A. Luxembourg

Daimler Real Estate GmbH

Luxembourg, Luxembourg

Berlin, Germany

100.00

3

Daimler Retail Receivables LLC

Daimler Securitisation Australia Pty Ltd

Farmington Hills, USA

Mulgrave, Australia

DAIMLER SERVICIOS CORPORATIVOS MEXICO S. DE R.L. Mexico City, Mexico

DE C.V.

Daimler South East Asia Pte. Ltd.

Daimler Truck AG

Singapore, Singapore

Stuttgart, Germany

Mulgrave, Australia

Melbourne, Australia

100.00

91

47

–

5.271

3

4

Daimler Truck and Bus Australia Paciﬁc Pty. Ltd.

–

DAIMLER TRUCK AND BUS HOLDING AUSTRALIA

PACIFIC PTY LTD

–

Daimler Truck China Limited

Beijing, China

100.00

–

Daimler Trucks & Buses US Holding LLC

Daimler Trucks and Buses (China) Ltd.

Daimler Trucks and Buses Southern Africa (Pty) Ltd

Wilmington, USA

Beijing, China

2.348

1.159

–

Zwartkop, South Africa

C | ANNUAL FINANCIAL STATEMENTS 2019 OF DAIMLER AG | OTHER NOTES 43

Name of the Company

Domicile, Country

Capital

Equity in Net income Footnote

share in millions of €

(loss) in

1

%

millions of €

Daimler Trucks Canada Ltd.

Daimler Trucks Korea Ltd.

Mississauga, Canada

Seoul, South Korea

Wilmington, USA

100.00

67.55

86

51

–

Daimler Trucks North America LLC

Daimler Trucks Remarketing Corporation

Daimler Trust Holdings LLC

Daimler Trust Leasing Conduit LLC

Daimler Trust Leasing LLC

3.655

1.597

–

Portland, USA

–

Farmington Hills, USA

Wilmington, USA

–

Farmington Hills, USA

Milton Keynes, United Kingdom

Hong Kong, China

–

Daimler UK Limited

507

133

25

–

Daimler Vans Hong Kong Limited

Daimler Vans USA, LLC

144

Wilmington, USA

100.00

51.11

–

Daimler Vehículos Comerciales Mexico S. de R.L. de C.V. Mexico City, Mexico

231

40

–

4

3

Daimler Verwaltungsgesellschaf für Grundbesitz mbH

Daimler Vorsorge und Versicherungsdienst GmbH

Detroit Diesel Corporation

Detroit Diesel Remanufacturing LLC

Deutsche Accumotive GmbH & Co. KG

EHG Elektroholding GmbH

EvoBus (Schweiz) AG

Schönefeld, Germany

Berlin, Germany

3.861

–

Detroit, USA

109

318

24

62

–

Detroit, USA

33

Kirchheim unter Teck, Germany

Stuttgart, Germany

Kloten, Switzerland

Coventry, United Kingdom

Wiener Neudorf, Austria

Kobbegem-Asse, Belgium

Prague, Czech Republic

Koege, Denmark

182

1.146

3

–

EvoBus (U.K.) Ltd.

–

EvoBus Austria GmbH

–

EvoBus Belgium N.V.

–

EvoBus Ceská republika s.r.o.

EvoBus Danmark A/S

–

EvoBus France S.A.S.U.

Sarcelles, France

37

18

–

EvoBus GmbH

Stuttgart, Germany

Sámano, Spain

89

3

EvoBus Ibérica, S.A.U.

–

EvoBus Italia S.p.A.

Bomporto, Italy

–

EvoBus Nederland B.V.

Nijkerk, Netherlands

Wolica, Poland

–

EvoBus Polska Sp. z o.o.

–

EvoBus Portugal, S.A.

Mem Martins, Portugal

Vetlanda, Sweden

Gaﬀney, USA

–

EvoBus Sverige AB

–

Freightliner Custom Chassis Corporation

Friesland Lease B.V.

45

62

–

Drachten, Netherlands

Schönefeld, Germany

–