Financial position, liquidity and capital resources

The balance sheet total of €85.3 billion is at the level of a year earlier.

Non-current assets decreased by €1.0 billion to €43.8 billion in 2014, primarily due to the lower amount of financial assets. This mainly reflects the sale of our 50% equity interest in Rolls-Royce Power Systems Holding GmbH to Rolls-Royce Holdings plc. Investments in property plant and equipment (approximately €2.5 billion excluding leased assets) mainly comprised investments for the production of the C-, E-and S-Class, as well as investments in engine and transmission projects.

Inventories increased by €1.1 billion to €7.8 billion at December 31, 2014. The increase was mainly related to finished goods and raw materials and manufacturing supplies, as well as unfinished goods to a lower extent, and was caused by the high production volume.

Receivables, securities and other assets increased compared with December 31, 2013 by €1.1 billion to €30.0 billion. The main reason for this development was growth in receivables of €0.9 billion. Cash and cash equivalents decreased by €1.3 billion to €3.4 billion, partially due to the extraordinary contribution to pension plan assets of €2.4 billion.

Gross liquidity – defined as cash and cash equivalents and other marketable securities – of €8.6 billion was lower than a year earlier (2013: €9.3 billion).

Cash provided by operating activities amounted to €3.2 billion at the end of 2014 (2013: €6.0 billion). The decrease primarily reflects significantly higher contributions to pension plan assets as well as higher inventory growth. There was an opposing, positive effect on the cash flow from the increased operating profit in 2014.

Cash flows from investing activities resulted in a net cash outflow of €1.3 billion in 2014 (2013: €7.1 billion). The lower cash outflow was the result of lower net investment in securities. Another factor is that investments in financial assets also decreased. The sale of the equity interest in Rolls-Royce Power Systems Holding GmbH had a positive impact on cash flows from investing activities.

Cash flows from financing activities resulted in a net cash outflow of €3.2 billion (2013: €1.3 billion). The increased outflow is explained by the lower volume of external financing liabilities entered into compared with the previous year. Intragroup (cash) liabilities to subsidiaries in the context of the central finance and liquidity management decreased compared with 2013 at a lower rate. Cash flows from financing activities include the payment of the dividend for the year 2013 in an amount of €2.4 billion.

Equity increased compared with December 31, 2013 by €1.4 billion to €37.1 billion. This change primarily resulted from the net profit for 2014, of which, in accordance with Section 58 Subsection 2 of the German Stock Corporation Act (AktG), €1.2 billion was transferred to retained earnings. The equity ratio at December 31, 2014 was 43.5% (December 31, 2013: 41.9%).

Provisions decreased compared with December 31, 2013 by €0.8 billion to €11.9 billion. This primarily reflects lower provisions for pensions and similar obligations resulting from the extraordinary contribution of €2.4 billion to the pension plan assets. There was an opposing effect, however, mainly due to the increase in the expenses relating to the ongoing antitrust investigation by the European manufacturers of commercial vehicles, an increase in personnel and social-security obligations and the sales-related increase in provisions for warranty claims.

Liabilities decreased by €0.7 billion to €35.8 billion. This change is mainly related to liabilities to subsidiaries (minus €2.6 billion). Financing liabilities increased by €1.9 billion, however.

B.37

Balance sheet structure of Daimler AG
  Dec. 31, 2014 Dec. 31, 2013
In millions of euros    
     
Assets    
Non-current assets 43,772 44,748
Inventories 7,846 6,682
Receivables, securities and other assets 29,985 28,869
Cash and cash equivalents 3,399 4,718
Current assets 41,230 40,269
Prepaid expenses 256 259
  85,258 85,276
     
Equity and liabilities    
Share capital 3,070 3,069
(conditional capital €500 million)    
Capital reserve 11,480 11,477
Retained earnings 19,891 18,748
Distributable profit 2,621 2,407
Equity 37,062 35,701
Provisions for pensions and similar obligations 1,391 3,405
Other provisions 10,470 9,214
Provisions 11,861 12,619
Trade payables 5,412 5,352
Other liabilities 30,379 31,111
Liabilities 35,791 36,463
Deferred income 544 493
  85,258 85,276
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