Resúmenes de las respuestas a las entrevistas

The risk volume that is subject to credit risk management

includes all of Daimler’s worldwide creditor positions with financial institutions, issuers of securities and customers in the financial services business and the automotive business. Credit risks with financial institutions and issuers of securities arise primarily from investments executed as part of our liquidity management and from trading in derivative financial instruments. The management of these credit risks is mainly based on an internal limit system that reflects the creditworthi- ness of the respective financial institution or issuer. The credit risk with customers of our automotive business relates to con- tracted dealerships and general agencies, other corporate customers and retail customers. In connection with the export business, general agencies that according to our creditwor- thiness analysis are not sufficiently creditworthy are generally required to provide collateral such as first-class bank guaran- tees. The credit risk with end customers in the financial services business is managed by Daimler Financial Services on the basis of a standardized risk management process. In this process, minimum requirements are defined for the sales-financing and leasing business and standards are set for credit processes as well as for the identification, measurement and management of risks. Key elements for the management of credit risks are appropriate creditworthiness assessments, supported by statistical analyses and evaluation methods, as well as structured portfolio analysis and portfolio monitoring.

Financial country risk management includes various aspects: the risk from investments in subsidiaries and joint ventures, the risk from the cross-border financing of Group companies in risk countries and the risk from direct sales to customers in those countries. The Credit Committee sets country limits for this cross-border financing. Daimler has an internal rating system that divides all countries in which it operates into risk categories. Equity capital transactions in risk countries are hedged against political risks with the use of investment- protection insurance such as the German government’s invest- ment guarantees. Some cross-border receivables due from customers are protected with the use of export-credit insurance, first-class bank guarantees and letters of credit. In addition, a committee sets and restricts the level of hard-currency credits granted to financial services companies in risk countries. Further information on the management of market-price risk, credit-default and liquidity risk is provided in

E

Note 32

of the Notes to the Consolidated Financial Statements.

Cash flows

Cash used for/provided by operating activitiesB.24

resulted in a cash outflow of €1.3 billion in 2014 (2013: cash inflow of €3.3 billion). This decrease was mainly caused by the realization of the growth strategy. Working capital increased at a higher rate than in the prior-year period due to the higher inventory increase. Growth in new business in leasing and sales financing surpassed the high level of the prior-year period by €2.6 billion. An additional factor is that the positive business development in 2014 led to higher income-tax payments. Furthermore, there was a cash outflow of €2.5 billion for the extraordinary contribution to the German pension fund assets. These effects were partially offset by the higher result from ongoing business which did not include the lower measurement effects compared to the prior-year period. In 2014, they were related to RRPSH and Tesla with a total of €0,4 billion and in 2013 to EADS with €3,4 billion.

Cash used for investing activitiesB.24 amounted to €2.7 billion (2013: €6.8 billion). The change compared with the prior-year period resulted primarily from acquisitions and disposals of securities in the context of liquidity management. Those transactions resulted in a net cash inflow in 2014, whereas acquisitions of securities significantly exceeded dispos- als in the previous year. In addition, lower investments in intangible assets had a positive impact. Investments in property, plant and equipment for the ramp-up of new products and for the expansion of production capacities were slightly below the high level of recent years. Both years were affected by proceeds from the sale of equity interests. In August 2014, the sale of the shares in RRPSH was concluded and a capital gain of €2.4 billion was recognized. In October 2014, the sale of shares in Tesla and the termination of the related share- price hedge led to a cash inflow of €0.6 billion. In 2013, cash used for investing activities was significantly affected by the sale of the remaining shares in EADS (€2.3 billion); there were opposing, negative effects of €0.6 billion from the acquisition of a 12% equity interest in BAIC Motor Corporation Ltd. (BAIC Motor) and of €0.2 billion from the capital increase at Beijing Benz Automotive Co., Ltd. (BBAC).

B.24

Condensed consolidated statement of cash flows

2014 2013 14/13

In millions of euros Change

Cash and cash equivalents

at beginning of period 11,053 10,996 +57

Cash used for/provided

by operating activities -1,274 3,285 -4,559 Cash used

for investing activities -2,709 -6,829 +4,120 Cash provided by

financing activities 2,274 3,855 -1,581

Effect of exchange-rate changes

on cash and cash equivalents 323 -254 +577 Cash and cash equivalents

90

Cash provided by financing activitiesB.24 amounted to €2.3 billion (2013: €3.9 billion). The decrease resulted almost solely from the change in financing liabilities.

Cash and cash equivalents decreased compared with December 31, 2013 by €1.4 billion, after taking currency translation into account. Total liquidity, which also includes marketable debt securities, decreased by €1.8 billion to €16.3 billion.

The parameter used by Daimler to measure the financial capability of the Group’s industrial business is the free cash flow of the industrial businessB.25, which is derived from the reported cash flows from operating and investing activities. The cash flows from the acquisition and sale of marketable debt securities included in cash flows from invest- ing activities are deducted, as those securities are allocated to liquidity and changes in them are thus not a part of the free cash flow.

Other adjustments relate to additions to property, plant and equipment that are allocated to the Group as their beneficial owner due to the form of their underlying lease contracts. Furthermore, adjustments are made for the effects of financing dealerships within the Group. In addition, the calculation of the free cash flow includes those cash flows to be shown under cash from financing activities in connection with the acquisi- tion or sale of interests in subsidiaries without loss of control. The free cash flow of the industrial business amounted to €5.5 billion in 2014. The sale of the shares in RRPSH and Tesla contributed €3.0 billion of that amount. On the other hand, the free cash flow of the industrial business was reduced by the cash outflows for the extraordinary contribution to the German pension fund assets of €2.5 billion and for the settle- ment of a healthcare plan in the United States. Adjusted for these special effects, the free cash flow of the industrial business amounted to €5.2 billion.

The positive contributions to earnings from the automotive divisions were reduced by the increase in working capital, defined as the net change in inventories, trade receivables and trade payables, in a total amount of €2.3 billion. This included positive effects from the sale of trade receivables to Daimler Financial Services by companies in the industrial business. The positive development of other operating assets and liabilities was related to the business expansion and is primarily due to payments received from sales with service and maintenance contracts and sales with residual-value guaran- tees. In addition, high expenses for dealer bonuses and provisions are considered. There were opposing, negative effects from ongoing high investments in property, plant and equipment and intangible assets, as well as from income taxes and interest payments.

At the beginning of 2014, we expected the free cash flow to be significantly below prior-year level. However, when comparing with the previous year, it is necessary to consider that the free cash flow in both years included effects from acquisitions and disposals of equity interests. In 2013, the sale of the shares in EADS led to a cash inflow of €2.3 billion while the acquisition of the equity interest in BAIC Motor resulted in a cash outflow of €0.6 billion. After adjusting for special effects, the free cash flow of the industrial business of €5.2 billion in the year 2014 was significantly higher than the previous year value of €3.2 billion, in line with our forecast as adjusted during the year.

The increase in the free cash flow adjusted for special effects of €2.0 billion to €5.2 billion reflects the positive business devel- opment and was primarily due to higher profit contributions from the automotive divisions. The higher inventory increase due to realization of the growth strategy was not offset by the development of trade receivables and payables. Positive effects resulted from the development of other operating assets and liabilities.

The net liquidity of the industrial businessB.26 is calcu- lated as the total amount as shown in the statement of financial position of cash, cash equivalents and marketable debt securities included in liquidity management, less the currency- hedged nominal amounts of financing liabilities.

B.25

Free cash flow of the industrial business

2014 2013 14/13

In millions of euros Change

Cash provided by

operating activities 7,539 10,313 -2,774

Cash used for investing activities -2,887 -6,767 +3,880 Change in marketable

debt securities -195 1,548 -1,743

Other adjustments1 _{1,022 -252 +1,274}

Free cash flow

of the industrial business 5,479 4,842 +637

1 The effects from the financing of the Group’s own dealerships, which are reflected in cash provided by operating activities, are eliminated under other adjustments.

B.26

Net liquidity of the industrial business Dec. 31,

2014 Dec. 31, 2013 14/13

In millions of euros Change

Cash and cash equivalents 8,341 9,845 -1,504 Marketable debt securities 5,156 5,303 -147

Liquidity 13,497 15,148 -1,651

Financing liabilities 3,193 -1,324 +4,517

Market valuation and currency

hedges for financing liabilities 263 10 +253 Financing liabilities (nominal) 3,456 -1,314 +4,770

The contingent liabilities principally constitute buyback obli- gations. At December 31, 2014, the best possible estimate for the loss risk from these guarantees amounted to €1.2 billion (2013: €1.0 billion). Warranty and goodwill commitments (product guarantees) provided by the Group in connection with its vehicle sales are not included in the contingent liabilities. Contingent liabilities also include other contingent liabilities. The best possible estimate for potential expenses from the other contingent liabilities is €0.4 billion (December 31, 2013: €0.4 billion).

To the extent that the Group’s internal refinancing of the financial services business is provided by the companies of the indus- trial business, this amount is deducted in the calculation of the net debt of the industrial business. At December 31, 2014, the Group’s internal refinancing was of a higher volume than the financing liabilities originally taken on in the industrial business due to the application of the industrial business’s own financial resources. This resulted in a positive value for the financing liabilities of the industrial business, thus increasing net liquidity, so the net liquidity of the industrial business exceeds the gross liquidity presented here.

Compared with December 31, 2013, the net liquidity of the industrial business increased from €13.8 billion to €17.0 billion. The increase mainly reflects the positive free cash flow. Dividend payments to the shareholders of Daimler AG and to minority interests of subsidiaries reduced net liquidity by €2.6 billion. The adoption of the refinancing of the Group’s own dealerships by the industrial business was offset by the positive currency effects.

Net debt at Group level, which primarily results from the refi- nancing of the leasing and sales-financing business, increased by €10.5 billion compared with December 31, 2013. B.27 Other financial obligations, financial guarantees and contingent liabilities

In the context of its ordinary business operations, the Group has entered into other financial obligations in addition to the liabilities shown in the consolidated balance sheet at December 31, 2014. Table B.28 provides an overview of the nominal amounts of other financial obligations. With regard to their maturities, we refer to

E

Note 30 (Financial guaran- tees, contingent liabilities and other financial commitments) and

E

Note 32 (Management of financial risks) of the Notes to the Consolidated Financial Statements.

Within the context of financial guarantees, Daimler generally guarantees the settlement of the payment obligations of the main debtor vis-à-vis the holder of the guarantee. The maximum potential obligation resulting from these guarantees amounts to €0.8 billion at December 31, 2014 (end of 2013: €0.8 billion); liabilities recognized in this context amount to €0.1 billion at the end of the year (end of 2013: €0.1 billion). In connection with the Chrysler transaction entered into 2007 and 2009, Daimler provides guarantees for Chrysler obligations; at December 31, 2014, those guarantees amounted to €0.3 billion, whereby Chrysler provided €0.2 billion on an escrow account as collateral for the guaranteed obligations. Another financial guarantee of €0.1 billion relates to bank loans of Toll Collect GmbH, the operator company of the toll-collection system for trucks in Germany. Other risks arise from an additional guarantee that the Group provided for obligations of Toll Collect GmbH to the Federal Republic of Germany. This guarantee is related to the completion and operation of the toll-collection system. A claim on this guarantee could primarily arise if for technical reasons toll revenue is lost or if certain contractually defined parameters are not fulfilled, if the Federal Republic of Germany makes additional claims or if the final operating permit is not granted. Furthermore, arbitration proceedings have been initiated against the Group. The maximum obligation

B.27

Net debt of the Daimler Group

Dec. 31,

2014 Dec. 31, 2013 14/13

In millions of euros Change

Cash and cash equivalents 9,667 11,053 -1,386 Marketable debt securities 6,634 7,066 -432

Liquidity 16,301 18,119 -1,818

Financing liabilities -86,689 -77,738 -8,951 Market valuation and currency

hedges for financing liabilities 270 -3 +273 Financing liabilities (nominal) -86,419 -77,741 -8,678

Net debt -70,118 -59,622 -10,496

B.28

Other financial obligations (nominal amounts) Dec. 31,

2014 Dec. 31, 2013 In millions of euros

Obligations from purchasing agreements 9,769 9,771 Non-terminable rental and

leasing agreements 2,157 1,980

Irrevocable loan obligations 1,320 1,508

Miscellaneous other financial obligations 2,318 1,356

92

Investment

Investment still on high level. In the context of our growth strategy, we aim to make good use of the opportunities presented by international automotive markets. This requires substantial investment in new products and new technologies as well as in the expansion of our worldwide production net- work. In 2014, we therefore once again invested a very high amount of €4.8 billion in property, plant and equipment (2013: €5.0 billion). However, we did not quite reach the investment volume that we planned in the previous year and announced in Annual Report 2013. This was partially due to the very efficient application of our financial resources and the postpone- ment of some investment projects. As of December 31, 2014, no material financial obligations exist in connection with future investment in property, plant and equipment.

4 3 2 1 0 2010 2011 2012 2013 2014

B.29

5

Investment in property, plant and equipment

In billions of euros

At Mercedes-Benz Cars, investment in property, plant and equipment of €3.6 billion was almost at the prior-year level. The most important projects included the models of the new C-Class, which has been in production since 2014 in Bremen as well as in Tuscaloosa, Beijing and East London. Another focus of investment was on new sport-utility vehicles. We also made substantial investments in the modernization and realignment of our German production plants as competence centers, as well as in the expansion of our production capacities in the United States. The main areas of investment at Daimler Trucks were for new products such as the Western Star 5700XE, the new FUSO Super Great V and the new Actros and Arocs heavy-duty tractor units (SLT). In addition, progress was made with various projects for the global standardization of engines and other major components. As in the previous year, total investment in property, plant and equipment at Daimler Trucks amounted to €0.8 billion. At the Mercedes-Benz Vans division, the focus of investment was on the new Viano multipurpose vehicle and the next generation of the Vito. The main investments at Daimler Buses in 2014 were in new products and the modernization of production facilities. In addition to capital expenditure on property, plant and equipment, we also invested amounts in associated companies and joint ventures in 2014.

Furthermore, we capitalized development costs of €1.1 billion in 2014 (2013: €1.3 billion); this is presented under intangible assets.

E

see page 103

Refinancing

The funds raised by Daimler in the year 2014 primarily served to refinance the leasing and sales-financing business. For that purpose, Daimler made use of a broad spectrum of various financing instruments in various currencies and markets. They include bank credits, commercial papers in the money market, bonds with medium and long maturities, customer deposits at Mercedes-Benz Bank and the securitization of receiv- ables from customers in the financial services business (asset backed securities, ABS).

Various issue programs are available for raising longer-term funds in the capital market. They include the Euro Medium Term Note program (EMTN) with a total volume of €35 billion, under which Daimler AG and several subsidiaries can issue bonds in various currencies. Other local capital-market programs exist, significantly smaller than the EMTN program. However, in markets such as Mexico, Argentina, South Africa, Thailand and South Korea. Capital-market programs allow flexible, repeated access to the capital markets.

B.30

Investment in property, plant and equipment by division

2014 2013 14/13

In millions of euros % change

Daimler Group in % of revenue 4,844 3.7 4,975 4.2 -3 Mercedes-Benz Cars in % of revenue 3,621 4.9 3,710 5.8 -2 Daimler Trucks in % of revenue 788 2.4 839 2.7 -6 Mercedes-Benz Vans in % of revenue 304 3.0 288 3.1 +6 Daimler Buses in % of revenue 105 2.5 1.976 +38

Daimler Financial Services

The carrying values of the main refinancing instruments and the weighted average interest rates are shown in table B.31. At December 31, 2014, they are mainly denominated in the following currencies: 43% in euros, 26% in US dollars, 4% in Brazilian real, 3% in Japanese yen and 4% in Canadian dollars. At December 31, 2014, the total of financial liabilities shown in the consolidated statement of financial position amounted to €86,689 million (2013: €77,738 million). Detailed information on the amounts and terms of financing liabilities is provided in

E

Notes 24 and 32 of the Notes to the Consolidated Financial Statements.

E

Note 32 also provides information on the maturities of the other financial liabilities.

In 2014, the Group covered its refinancing requirements mainly through the issuance of bonds. A large proportion of those bonds were placed in the form of so-called benchmark emissions (bonds with high nominal volumes) in the US dollar and euro market. B.32

As the first international corporation, Daimler AG placed bonds in the domestic capital market of the People’s Republic of China, so-called panda bonds. In addition, a large number of smaller bonds were issued in various currencies in the euro market, as well as in Mexico, Brazil, Argentina, South Africa, Thailand and South Korea.

Refinancing was facilitated by high capital-market liquidity as well as by Daimler’s good credit ratings. The continuation of expansive monetary policies by the central banks had a significant impact on the situation of the bond markets also in 2014. The high volumes of available liquidity meant that risk premiums for companies with investment-grade ratings

In document Análisis e implementación de un manual para mejorar el proceso administrativo de la caja de ahorro y crédito de Aseguradora del Sur (página 83-92)