Annual Financial Statements 2016 Daimler AG
Daimler AG Mercedesstraße 137 70327 Stuttgart Germany www.daimler.com ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | FORWARD-LOOKING STATEMENTS
Forward-looking statements:
This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a worsening of the sovereign-debt crisis in the euro zone; an increase in political tension in Eastern Europe; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, epidemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activi- ties; changes in currency exchange rates; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; dis- ruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective imple mentation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending official investigations and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk and Opportunity Report” in the current Annual Report. If any of these risks and uncertainties materializes or if the assump- tions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
Cover: The Mercedes-Benz Vision Van features numerous innovative solutions for parcel deliveries in urban and suburban settings. This forward-looking concept van is the world’s first van that digitally links all participants and processes in the delivery chain from start to finish – from the goods distribution center to the recipient. These documents represent the English translation of the It is also the first van with a fully automatic cargo area German “Jahresabschluss” which is the sole authoritative and integrated delivery drones. version. Daimler AG Annual Financial Statements 2016
The Management Report of Daimler AG is combined with the Group Management Report in accordance with Section 315 Subsection 3 of the German Commercial Code (HGB) and published in the Group Annual Report 2016.
The Annual Financial Statements and the summarized Management Report of Daimler AG for the year 2016 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 Group Annual Report 2016 can be found in the “Investor Relations” section of our website w www.daimler.com/ir/reports ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | CONTENTS 5
Contents
A | Balance Sheet of Daimler AG 6 Other Notes 22 – 47 Personnel expenses/Employees 22 Cost of materials 22 B | Income Statement of Daimler AG 7 Derivative financial instruments and valuation units 22 C | Notes to the Financial Statements Contingent liabilities 25 Other financial obligations 25 of Daimler AG 8 – 47 Related party relationships according to Accounting policies and methods 8 Section 285 No. 21 of the German Recognition and measurement 8 Commercial Code (HGB) 26 Schedule of non-current assets 11 Legal proceedings 26 Remuneration of the members of the Board of Management and the Supervisory Board 28 Notes to the Balance Sheet 12 – 18 Disclosures according to Section 160 Subsection 1 No. 8 of the Intangible assets 12 German Stock Corporation Act (AktG) 31 Property, plant and equipment 12 Declaration of compliance with the German Financial assets 12 Corporate Governance Code 31 Inventories 12 Members of the Board of Management Receivables and other assets 12 and their mandates 32 Securities 13 Members of the Supervisory Board Cash and cash equivalents 13 and their mandates 34 Prepaid expenses 13 Statement of Investments 37 Net defined benefit asset (prior year: provisions for pensions and similar obligations) 13 Equity 14 D | Board of Management 48 Dividend 16 Share-based payment 17 Other provisions 17 E | Responsibility Statement 49 Liabilities 18 Deferred income 18 F | Auditors’ Report 50 Notes to the Income Statement 19 – 21 Revenue 19 Functional costs 19 Other operating income 20 Other operating expenses 20 Income/expense from investments in subsidiaries and associated companies, net 20 Interest income/expense, net 21 Other financial income/expense, net 21 Income taxes 21 Net profit 21 6 A | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | BALANCE SHEET OF DAIMLER AG
Balance Sheet of Daimler AG
Assets Notes Dec. 31, 2016 Dec. 31, 2015 In millions of euros
Non-current assets Intangible assets (1) 1,270 1,005 Property, plant and equipment (2) 8,651 8,396 Financial assets (3) 30,186 29,858 40,107 39,259
Current assets Inventories (4) 9,071 8,503 Trade receivables (5) 2,572 2,495 Receivables from subsidiaries (5) 33,292 26,673 Other receivables and other assets (5) 3,423 3,274 Securities (6) 6,833 5,899 Cash and cash equivalents (7) 1,660 1,925 56,851 48,769
Prepaid expenses (8) 339 257
Net defined benefit asset (9) 891 –
98,188 88,285
Equity and liabilities Notes Dec. 31, 2016 Dec. 31, 2015 In millions of euros
Equity Share capital (10a) 3,070 3,070 (conditional capital €500 million) Capital reserve (10b) 11,480 11,480 Retained earnings (10c) 22,560 20,169 Distributable profit (10d) 3,477 3,477 40,587 38,196
Provisions Provisions for pensions and similar obligations (9) – 1,931 Other provisions (11) 11,847 11,811 11,847 13,742
Liabilities Trade payables (12) 6,077 5,098 Liabilities to subsidiaries (12) 7,053 6,640 Other liabilities (12) 31,882 24,014 45,012 35,752
Deferred income (13) 742 595
98,188 88,285 B | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | INCOME STATEMENT OF DAIMLER AG 7
Income Statement of Daimler AG
Notes 2016 20151 In millions of euros
Revenue (14) 107,178 103,024 Cost of sales (15) -96,271 -92,080
Gross profit 10,907 10,944 Selling expenses (15) -6,454 -6,695 General administrative expenses (15) -1,844 -1,622 Other operating income (16) 707 687 Other operating expenses (17) -1,456 -733 Income/expense from investments in subsidiaries and associated companies, net (18) 4,579 4,775 Interest income/expense, net (19) 655 -2,408 Other financial income/expense, net (20) 196 -293 Income taxes (21) -1,422 -900
Profit after taxes/Net profit (22) 5,868 3,755
Transfer to retained earnings -2,391 -278
Distributable profit 3,477 3,477 1 Information on reclassifications is presented under “Accounting policies and methods” and in Note 15. 8 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG
Notes to the Financial Statements of Daimler AG
Accounting policies and methods For the sake of clarity, the system of presentation has been modified in accordance with Section 266 of the HGB. Daimler AG is entered in the Commercial Register of the Other receivables and other assets comprise receivables Stuttgart District Court under No. HRB 19360 and its registered from associated companies and other assets. Other provisions office is located at Mercedesstraße 137, 70327 Stuttgart, comprise provisions for taxes and miscellaneous provisions. Germany. Other liabilities comprise liabilities to associated companies, loans and bonds, liabilities to banks and other liabilities. The financial statements of Daimler AG have been prepared in accordance with the accounting principles of the German The income statement has been prepared according to the Commercial Code (HGB) and the German Stock Corporation Act internationally predominant cost-of-sales method. The system (AktG); the amounts shown are in millions of euros (€) and of presentation according to Section 275 of the HGB has been the comparable figures for the year ended December 31, 2015 modified to improve clarity with regard to financial activities. are also shown. The items summarized in the balance sheet Financial activities are presented as net income/expense from and the income statement are listed individually and explained investments in subsidiaries and associated companies, in these notes. net interest income/expense and net other financial income/ expense. The 2016 financial statements have been prepared for the first time with application of the German Accounting Directives Implementation Act (Bilanzrichtlinie-Umsetzungsgesetz/ Recognition and measurement BilRUG). Due to the expansion of the term revenue as a result of changed legislation, other operating income has been Intangible assets are measured at cost of acquisition, partially reclassified to revenue. The prior-year figures have been reduced by systematic straight-line amortization. They have adjusted accordingly. Further adjustments on the basis of a useful life of between 2 and 20 years. BilRUG were immaterial. The capitalization option for self-produced intangible assets is The following table presents the effects on the prior-year not utilized. Research and development costs are immediately figures from the transition to BilRUG: expensed.
Property, plant and equipment are measured at cost of acquisition or production, reduced by systematic depreciation. 2015 BilRUG 2015 published reclassifications (adjusted) The production costs of self-constructed assets comprise In millions of euros direct costs as well as prorated material and production overheads, including depreciation, to the extent that they are Revenue 101,537 1,487 103,024 caused by the production process. In addition, production Other costs also include production-related general administrative operating expenses as well as production-related expenses for the income 2,174 -1,487 687 company’s social facilities, voluntary social benefits and company pensions, to the extent that those costs are incurred during the period of production. C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG 9
Systematic straight-line depreciation for technical equipment Receivables and other assets are measured at their nominal and machinery, other equipment and operating and office values with consideration of all recognizable risks. If they have equipment is based on a useful life of 3 to 33 years. Corre- a residual period of more than one year and are non-interest spondingly shorter periods apply for equipment used in bearing, they are discounted to their present value on the balance multiple shifts. sheet date. General allowances are recognized to reflect general credit risks. Receivables and other assets with a residual Impairments are recognized if an asset has to be measured term of less than one year which are denominated in foreign at a lower value. currencies are translated at the spot rates on the balance sheet date. Non-current assets denominated in foreign currencies Assets with costs of acquisition or production of up to €1,000 are translated at the spot rates on the date when booked or at are immediately expensed. the lower rate on the balance sheet date.
Leased assets are measured at cost of acquisition or production Securities are measured at the lower of cost of acquisition and are systematically depreciated. Systematic depreciation or fair value on the balance sheet date. is based on a useful life of 3 to 9 years. The method of deprecia- tion is changed from declining-balance to straight-line as Payments made prior to the balance sheet date that constitute soon as the equal distribution of the carrying value over the expenses for a specific period after that date are reported as remaining useful life leads to higher depreciation amounts. prepaid expenses. Any difference between the settlement Leased assets first measured since January 1, 2008 are reduced amount and the lower issue amount of a liability is capitalized by systematic depreciation using the straight-line method. and amortized systematically over the period of the liability. Depending on the various lessees, leased assets first measured before January 1, 2008 are depreciated using the straight-line Deferred taxes are calculated on temporary differences of method or the declining-balance method. assets, liabilities, accruals and deferrals between the tax basis and the financial reporting according to HGB, as well as on For the sake of better clarity, the item of leased assets has tax-loss carryforwards. Tax-loss carryforwards can only be been added to the schedule of non-current assets under taken into account if they can be offset against taxable income property, plant and equipment. within the statutory period of five years. Deferred taxes are measured based on the combined tax rate of 29.825% for the Shares in subsidiaries, associated companies and other income tax consolidation group of Daimler AG. The combined financial assets are measured at cost of acquisition, or, if there tax rate includes corporate income tax, trade tax and the is an indication of permanent impairment, at the lower fair solidarity surcharge. Deferred tax assets and deferred tax value. If the reasons for permanent impairment are no longer liabilities are netted. Any resulting tax liability is recorded as given, the value is written up. Loans bearing low interest deferred tax liability in the balance sheet. Any resulting tax or no interest are measured at their present values. asset is not recognized, in line with the capitalization option.
Raw materials, manufacturing supplies and goods are measured Provisions for pensions and similar obligations for pension plans at the lower of cost of acquisition or fair value; work in progress which stipulate a predefined benefit during retirement are and finished products are measured at cost of production. recognized at the required settlement amounts in accordance Cost of production comprises production material and labor with reasonable commercial judgment. The amounts are as well as prorated material and production overheads, measured using the projected unit credit method. The discount including depreciation, to the extent that they are caused by rate for provisions for pension obligations is the average the production process. In addition, production costs also market interest rate of the past ten years (2015: seven years) include production-related general administrative expenses as published on December 31, 2016 by the German central as well as production-related expenses for the company’s bank (Bundesbank) for an assumed residual period of 15 years. social facilities, voluntary social benefits and company pensions, The extension of the relevant period for the calculation of to the extent that those costs are incurred during the period the average interest rate from seven to ten years results from of production. Impairments are recognized if an asset has to be new legislation in Germany (Gesetz zur Umsetzung der measured at a lower value. Wohnimmobilienkreditrichtlinie und zur Änderung handels- rechtlicher Vorschriften). 10 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG
Provisions for retirement benefit obligations which at least In accordance with Section 254 of the HGB, derivative financial guarantee the contributions paid in are recognized at the transactions are linked as a hedging relationship with an fair values of the related assets as they exceed the guaranteed underlying transaction, provided there is a direct hedging minimum amount. Future claims are related to the fair value context between the financial transaction and the underlying of the assets (securities or comparable assets). transaction. Financial transactions for which no units of valuation are formed are measured individually at fair value. Assets to which other creditors have no recourse and which Any resulting unrealized losses are expensed. are solely used to fulfill retirement benefit obligations or similar long-term liabilities (special-purpose assets) are offset Liabilities are measured at their settlement amounts. Liabilities against pension obligations. The offset assets are measured denominated in foreign currencies with a residual period of at their fair values. up to one year are translated at the spot rates on the balance sheet date. Non-current liabilities denominated in foreign If the fair value of the related special-purpose assets exceeds currencies are translated at the spot rates on the date when the required settlement amounts of the obligations, the excees booked or at the higher rate on the balance sheet date. amount has to be presented as net defined benefit asset. Payments received prior to the balance sheet date that Expenses and income resulting from discounting the retire- constitute income for a specific period after that date are ment benefit obligations are offset against the expenses reported as deferred income. and income of the offset assets under net interest income/ expense. All other components of pension expenses are Daimler AG recognizes revenue from sales of vehicles, spare presented under functional costs. parts and other related products and services, and from leasing. Revenue is recognized net of discounts, cash sales Other provisions are recognized at the required settlement incentives, customer bonuses and rebates granted. For amounts in accordance with reasonable commercial judgment. transactions with multiple deliverables, such as when vehicles Expected future increases in prices and costs until settlement are sold with free service programs, Daimler AG allocates of the liabilities are taken into consideration. Provisions with revenue to the various elements based on their objectively a residual period of more than one year are discounted and reliably determined fair values. Outstanding elements according to the net method over that period using the average are recognized in the balance sheet as deferred income. market interest rate of the past seven years as published by the German central bank (Bundesbank). Changes in the discount rate or interest effects of a changed estimate of the residual period are presented under interest income/expense.
Other provisions also include provisions for taxes. For the case that the amounts stated in the tax return might not be realized (uncertain tax positions), the provisions are based on the best estimate of the expected tax payments. C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE FINANCIAL STATEMENTS OF DAIMLER AG 11
Schedule of non-current assets
Cost of acquisition or production Depreciation/Amortization/Write-ups Book value
Reclas- Reclas- Jan. 1, Addi- sifica- Dis Dec. 31, Jan. 1, Addi- Write- sifica- Dis Dec. 31, Dec. 31, Dec. 31, 2016 tions tions posals 2016 2016 tions ups tions posals 2016 2016 2015 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 1,513 102 17 19 1,613 728 185 – – 19 894 719 785 Advance payments made 220 350 -17 2 551 – – – – – – 551 220 1,733 452 – 21 2,164 728 185 – – 19 894 1,270 1,005
Property, plant and equipment Technical equipment and machinery 14,693 848 563 383 15,721 11,794 1,165 – -5 371 12,583 3,138 2,899 Other equipment, factory and office equipment 14,241 957 230 253 15,175 11,338 1,262 – 5 227 12,378 2,797 2,903 Leased assets 1,597 1,505 – 1,550 1,552 233 206 – – 287 152 1,400 1,364 Advance payments made and construction in progress 1,230 925 -793 46 1,316 – – – – – – 1,316 1,230 31,761 4,235 – 2,232 33,764 23,365 2,633 – – 885 25,113 8,651 8,396
Financial assets Shares in subsidiaries 28,305 1,315 – 1,289 28,331 1,537 1,283 29 – 4 2,787 25,544 26,768 Loans to subsidiaries 1,107 1,317 – 100 2,324 2 – 1 – – 1 2,323 1,105 Shares in associated companies 2,166 338 . . 2,504 192 . – – . 192 2,312 1,974 Other loans 14 – – 5 9 3 – 1 – – 2 7 11 31,592 2,970 – 1,394 33,168 1,734 1,283 31 – 4 2,982 30,186 29,858
Non-current assets 65,086 7,657 – 3,647 69,096 25,827 4,101 31 – 908 28,989 40,107 39,259 12 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET
Notes to the Balance Sheet
1 Intangible assets In 2016, shares in subsidiaries and associated companies were impaired by an amount of €1,283 million (2015: €726 million). Intangible assets of €1,270 million primarily comprise This affects Mercedes-Benz do Brasil Ltda. with €610 million purchased licenses, name rights, rights in connection with as well as Daimler India Commercial Vehicles Private Limited with vehicle development and production from cooperation €580 million. Write-ups amounted to €29 million (2015: projects and similar values. Systematic amortization amounted €2 million). to €185 million (2015: €209 million). The statement of investments pursuant to Section 285 of the German Commercial Code (HGB) is included in the 2 Property, plant and equipment E “Statement of investments” chapter.
Additions of €4,235 million include leased assets of €1,505 The development of non-current assets is presented million. These are primarily vehicles sold with leasing in the schedule of non-current assets. contracts. The other additions consist only of movable assets. Systematic depreciation of property, plant and equipment amounted to €2,633 million (2015: €2,607 million). 4 Inventories C.01
Finished products and goods comprise vehicles and spare 3 Financial assets parts produced both in the plants of Daimler AG and in the context of contract manufacturing. Used vehicles are also Shares in subsidiaries and associated companies decreased included. by €886 million to €27,856 million (2015: €28,742 million).
The decrease compared with 2015 was primarily caused 5 Receivables and other assets C.02 by the contribution of Daimspain S.L. into the special-purpose assets of Daimler AG. This resulted in a disposal of shares in Receivables from subsidiaries primarily include intragroup (cash) subsidiaries of €1,266 million. Daimspain S.L. holds 3.1% of the receivables within the scope of central financial and liquidity shares of each of Renault S.A. and Nissan Motor Company Ltd. management (€27,833 million, 2015: €21,212 million), as well as trade receivables due to domestic and foreign subsidiaries Significant additions to shares in subsidiaries relate to (€5,459 million, 2015: €5,461 million). Receivables from contributions to equity at Daimler International Finance B.V., associated companies primarily comprise trade receivables Mercedes-Benz do Brasil Ltda. and Daimler India Commercial that originally arose from associated companies in Germany Vehicles Private Limited. and abroad (€1,148 million, 2015: €883 million).
The additions to investments in associated companies Other assets include tax-refund claims (€1,177 million, relate to payments into the share capital of Cooperation 2015: €1,201 million), accrued interest (€206 million, Manufacturing Plant Aguascalientes, S.A.P.I and Beijing 2015: €202 million) and paid option premiums (€22 million, Benz Automotive Co., Ltd. 2015: €46 million). C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET 13
6 Securities C.01 Securities consist solely of other securities, which include Inventories fixed or variable-interest marketable debt securities as Dec. 31, 2016 Dec. 31, 2015 well as money-market funds. The increase of €934 million In millions of euros to €6,833 million is due in particular to the addition of money-market funds. Raw materials and manufacturing supplies 1,704 1,683 Work in progress 1,573 1,501 7 Cash and cash equivalents Finished products and goods 5,664 5,318 Advance payments made 185 66 Cash and cash equivalents amount to €1,660 million at the Inventories excluding advance end of the year (2015: €1,925 million) and consist of bank payments received 9,126 8,568 balances, cash in hand and checks. Advance payments received -55 -65 Inventories 9,071 8,503 Liquidity also includes securities (€6,833 million, 2015: €5,899 million) as well as cash and cash equivalents. C.02 8 Prepaid expenses Receivables and other assets Dec. 31, 2016 Dec. 31, 2015 In millions of euros Prepaid expenses include discount amounts of €131 million (2015: €74 million). They result from the difference between Trade receivables 2,572 2,495 the settlement amount and the lower issue amount of liabilities. thereof more than 1 year until maturity 2 3 Receivables from subsidiaries 33,292 26,673 9 Net defined benefit asset (prior year: thereof more than 1 year until maturity 9,838 7,329 Receivables from associated companies 1,259 1,066 provisions for pensions and similar obligations) thereof more than 1 year until maturity – – Other assets 2,164 2,208 The net defined benefit asset amounts to €891 million as thereof more than 1 year until maturity 8 28 of December 31, 2016 after offsetting the settlement amount Receivables and other assets 39,287 32,442 of the pension obligations against the related special purpose thereof more than 1 year until maturity 9,848 7,360 assets. In the prior year, provisions for pensions and similar obligations after offsetting against the related special purpose assets amounted to €1,931 million. C.03 C.03 The settlement amount for obligations that provide for a defined Net defined benefit asset/ benefit during retirement is €17,037 million (2015: €16,992 Provisions for pensions and similar obligations million). The calculation is based on the tables of mortality Dec. 31, 2016 Dec. 31, 2015 rates published by Heubeck (2005 G) and on an interest rate In millions of euros of 4.01% (2015: 3.89%). The calculation also takes into account annual cost-of-living increases and annual pension entitle- Settlement amount of obligations ment increases of 1.70% (2015: 1.70%), as well as anticipated from defined benefit plans 17,037 16,992 annual increases in wages and salaries of 3.0% (2015: 3.0%). Fair value of related special purpose ssets for obligations These obligations are offset with the special purpose assets. from defined benefit plans -17,928 -15,061 At December 31, 2016, those assets have a fair value of Settlement amount for obligations €17,928 million (2015: €15,061 million) and a cost of acquisi- from plans with commitments backed by securities 379 263 tion of €17,095 million (2015: €14,870 million). Fair value of related special purpose assets for obligations from plans with commitments backed by securities -379 -263 Net defined benefit asset (-)/ Provisions for pensions and similar obligations (+) -891 1,931 14 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET
The obligations for the pension plans, the amounts of which are C.04 determined by the fair values of securities or comparable Shares in investment funds by investment objective assets, are recognized with the fair values of those assets at at Dec. 31, 2016 December 31, 2016 of €379 million (2015: €263 million), as Cost of Dividend Daily this exceeds the guaranteed minimum value of the obligations Book value / acqui for the return fair value sition Difference year possible at December 31, 2016. There is then an offset with those special purpose assets that have original acquisition costs of In millions of euros €371 million (2015: €267 million). As a result, this leads to the full offsetting of the obligations with the related special Mixed funds 15,213 14,863 350 457 yes purpose assets. Private equity funds 261 212 49 49 yes The assets offset as of December 31, 2016 include the Equity funds 81 81 – 2 yes shares as shown in table C.04 of more than 10% in German Bond funds 21 20 1 1 yes or comparable foreign special funds as defined by Section 1 15,576 15,176 400 509 Subsection 10 of the German Capital Investment Act (KAGB) and investments in investment fund companies with variable equity pursuant to Sections 108 to 123 of the German Capital Investment Act (KAGB). The special funds include, as their C.05 investment focus, securities funds and a private equity fund Equity with an international orientation which reflect individual Dec. 31, 2016 Dec. 31, 2015 investors’ needs. In millions of euros There are no restrictions on the possibility of returning the Share capital 3,070 3,070 shares on stock-exchange trading days. The return of shares Capital reserve 11,480 11,480 can be temporarily suspended under unusual circumstances Retained earnings 22,560 20,169 that make suspension seem necessary under consideration Distributable profit 3,477 3,477 of the interests of the investors. Equity 40,587 38,196
10 Equity C.05
C.06 a) Share capital Number of shares 2016 2015 The share capital (Authorized Capital) is divided into no-par value shares. All shares are fully paid up. Each share confers Shares outstanding / issued the right to one vote at the Annual Shareholders’ Meeting at January 1 1,069,837,447 1,069,837,447 of Daimler AG and, if applicable, with the exception of any new Shares reacquired in the context shares potentially not entitled to dividends, to an equal portion of employee share programs and of the profits as defined by the dividend distribution resolved not cancelled -576,134 -298,702 at the Annual Shareholders’ Meeting. Each share represents Sale of treasury shares to employees in the context a proportionate amount of approximately €2.87 of the share of employee share programs 576,134 298,702 capital. Shares outstanding / issued at December 31 1,069,837,447 1,069,837,447 Treasury shares By resolution of the Annual Shareholders’ Meeting held on April 1, 2015, the Company has been authorized until March 31, 2020 to acquire treasury shares in a volume up to 10% of the share capital issued as of the day of the resolution to be used for all legal purposes. C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET 15
The shares can be used, amongst other things, to exclude share- Approved capital holders’ subscription rights, for business combinations or to By resolution of the Annual Meeting on April 9, 2014, the Board acquire companies or to be sold to third parties for cash at a of Management was authorized, with the consent of the Super price that is not significantly lower than the stock-exchange visory Board, to increase the share capital of the Company in the price of the Company’s shares. The acquired shares can also period until April 8, 2019 by a total of €1,000 million in one be used to fulfill obligations from issued convertible bonds lump sum or by separate partial amounts at different times by and/or bonds with warrants and to be issued to employees of issuing new, registered no-par-value shares in exchange for the Company and employees and board members of the cash and/or non-cash contributions (Approved Capital 2014). Company’s affiliates pursuant to Sections 15 et seq. of the The new shares are generally to be offered to the shareholders German Stock Corporation Act (AktG). The treasury shares can for subscription (also by way of indirect subscription pursuant to also be canceled. Section 186 Subsection 5 Sentence 1 of the German Stock Corporation Act (AktG)). Among other things, the Board of Man- The Board of Management is further authorized, with the con- agement was authorized with the consent of the Supervisory sent of the Supervisory Board, to exclude shareholders’ sub- Board to exclude shareholders’ subscription rights under certain scription rights in other defined cases. In a volume up to 5% of conditions and within defined limits. the share capital issued as of the day of the resolution, the Company was authorized to acquire treasury shares also by Approved Capital 2014 has not yet been utilized. using derivatives (put options, call options, forward purchases or a combination of these instruments), whereby term of a Conditional capital derivative must not exceed 18 months and must not end later The resolution of the Annual Shareholders’ Meeting on April 1, than March 31, 2020. 2015 authorizes the Board of Management, with the consent of the Supervisory Board, until March 31, 2020 to issue convert- The authorization to acquire treasury shares was not exercised ible and/or warrant bonds or a combination of these instru- in the reporting period. ments (“bonds”) with a total face value of up to €10,000 million and a maturity of no more than ten years. The Board of Man- As at December 31, 2015, Daimler AG held no treasury shares agement is allowed to grant the holders of these bonds at December 31, 2016. C.06 conversion or warrant rights for new registered no-par-value shares in Daimler AG with an allocable portion of the share Employee share programs capital of up to €500 million in accordance with the details In connection with employee share programs in 2016, Daimler AG defined in the terms and conditions of the bonds. The bonds acquired 576,134 Daimler shares (2015: 298,702 Daimler can be offered in exchange for cash and/or non-cash contribu- shares) representing €1.65 million or 0.05% of the share capital tions, in particular for shares in other companies. The terms for an average price of €65.97 per share and sold them to and conditions of the bonds can include warranty obligations employees for an average price of €50.08 per share. The propor- or conversion obligations. The bonds can be issued once or tionate loss arising for Daimler AG of €8.20 million was recog- several times, wholly or in installments, or simultaneously in nized through profit and loss as a personnel expense in 2016. various tranches, as well by affiliates of the Company within the The proportionate loss of €0.92 million from the sale of meaning of Sections 15 et seq. of the German Stock Corporation employee shares to entitled employees of Group companies Act (AktG). Among other things, the Board of Management was charged by Daimler AG to the respective companies was authorized, with the consent of the Supervisory Board, of the Group. to exclude shareholders’ subscription rights for the bonds under certain conditions and within defined constraints.
The authorization to issue convertible and/or warrant bonds has not yet been utilized.
In order to fulfill the conditions of the above-mentioned autho- rization, the Annual Shareholders’ Meeting on April 1, 2015 also resolved to increase the share capital conditionally by an amount of up to €500 million (Conditional Capital 2015). 16 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET
b) Capital reserve C.07 Other retained earnings The capital reserve amounts to €11,480 million 2016 2015 at December 31, 2016 (2015: €11,480 million). In millions of euros c) Retained earnings Balance at January 1 20,169 19,891 Purchase of treasury shares – – At December 31, 2016, other retained earnings amount Allocated by the Annual Meeting – – to €22,560 million. C.07 Transfer from net profit 2,391 278 Balance at December 31 22,560 20,169 d) Distributable profit thereof treasury shares – – Distributable profit for the year 2016 is calculated in accordance with Section 158 Subsection 1 of the German Stock Corporation Act (AktG) and amounts to €3,477 million. C.08 C.08 Distributable profit Information on amounts that may not be distributed 2016 The difference between the recognition of the retirement benefit In millions of euros obligations with the average market interest rate of the past ten years and the recognition of the retirement benefit obligations Balance at January 1 3,477 with the average market interest rate of the past seven years Dividend distribution -3,477 amounts to €2,056 million and may not be distributed. Allocation to retained earnings by the Annual Meeting – Net profit 2016 5,868 The measurement of the fair value of assets netted off Allocation to retained earnings by the Board against the retirement benefit obligations led to an amount of Management and the Supervisory Board pursuant of €826 million that may not be distributed. to Section 58 of the German Stock Corporation Act (AktG) -2,391 On the other hand, retained earnings exist which may be freely Balance at December 31 3,477 disposed of in the amount of €22,560 million. Therefore, the dis- tributable profit of €3,477 million is in fact fully distributable.
Dividend
Pursuant to the German Stock Corporation Act (AktG), the maximum dividend that can be distributed to the shareholders is the distributable profit reported in the year-end financial statements of Daimler AG (individual financial statements) according to the German Commercial Code (HGB). The proposal will be made to the shareholders at the Annual Shareholders’ Meeting that a dividend of €3,477 million (€3.25 per dividend- entitled share) should be paid to the shareholders out of the distributable profit of Daimler AG for the year 2016 (2015: €3,477 million equivalent to €3.25 per dividend-entitled share). C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET 17
Share-based payment 11 Other provisions C.09
As of December 31, 2016, Daimler AG has Performance Provisions for taxes relate primarily to income taxes for years Phantom Share Plans (PPSP) 2013 through 2016 in operation. not yet finally assessed. As instruments of share-based payment with cash settlement, the PPSP are measured at their fair values on the balance sheet Miscellaneous provisions relate primarily to worldwide warranty date. They are paid out at the end of their contractually risks, personnel and social obligations, obligations from the defined periods; an earlier, proportionate payout is only possible sales business, provisions for liability and litigation risks, and under certain conditions when a beneficiary leaves the unrealized losses from the valuation of derivative financial company. PPSP 2012 was paid out as planned in the first instruments. In addition, provisions are recognized for deferred quarter of 2016. maintenance that will be carried out in the first quarter of the following year. Performance Phantom Share Plan In 2016, Daimler AG adopted a Performance Phantom Share Plan similar to that used from 2005 through 2015, under which eligible board members and employees are granted phantom C.09 shares entitling them to receive cash payments provided that Other provisions predefined targets are met in the three-year performance Dec. 31, 2016 Dec. 31, 2015 period. The amount of cash paid to eligible persons is based on In millions of euros the number of vested phantom shares (determined depending on target achievement over a three-year performance period) Provisions for taxes 1,113 1,153 multiplied by the quoted price of Daimler’s ordinary shares Miscellaneous provisions 10,734 10,658 (calculated as an average price over a specified period at the 11,847 11,811 end of the four years of service). The determination of target achievement for the existing PPSP 2013 is based on return on net assets, derived from internal targets, and return on sales compared with benchmarks oriented towards the competition. For the PPSP adopted in 2014, the determination of target achievement is based on the relative share performance, which measures the development of a share-price index of a group of competitors including Daimler, and the return on sales (RoS) compared with benchmarks oriented towards the competition. In this context, special regulations apply to the members of the Board of Management to the extent that Daimler has to achieve a higher RoS than the average of its competitors in order to obtain the same target achievement that the other plan participants obtain in the case of a RoS equal to the average of the competitors. 18 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE BALANCE SHEET
12 Liabilities C.10 C.10 Liabilities Notes, bonds and commercial paper are primarily European Dec. 31, 2016 Dec. 31, 2015 medium-term notes in the amount of €25,264 million (2015: In millions of euros €17,083 million).
Notes/bonds and commercial paper 26,944 19,047 Liabilities to banks of €3,671 million (2015: €3,718 million) of which due in less than 1 year 5,506 4,258 primarily comprise loans of €3,620 million (2015: €3,717 million). of which due in 1 year to 5 years 14,499 11,140 of which due in more than 5 years 6,939 3,649 Liabilities to subsidiaries comprise liabilities that originally arose from intra-group transactions within the scope of Liabilities to banks 3,671 3,718 central financial and liquidity management (€6,458 million, of which due in less than 1 year 451 801 2015: €6,060 million) as well as from the supply of goods of which due in 1 year to 5 years 2,520 2,417 and services by domestic and foreign subsidiaries (€595 million, of which due in more than 5 years 700 500 2015: €580 million).
Trade payables 6,077 5,098 Liabilities to associated companies include trade payables due of which due in less than 1 year 6,077 5,098 to domestic and foreign associated companies (€70 million, of which due in 1 year to 5 years – – 2015: €75 million) as well as intragroup (cash) liabilities within the of which due in more than 5 years – . scope of central financial and liquidity management (€3 million, 2015: €6 million). Liabilities due to subsidiaries 7,053 6,640 of which due in less than 1 year 7,053 6,580 Other liabilities (€1,194 million, 2015: €1,168 million) mainly of which due in 1 year to 5 years – 60 comprise liabilities from wages and salaries, withheld income of which due in more than 5 years – – tax and social security contributions, accrued interest and option premiums. Liabilities due to associated companies 73 81 of which due in less than 1 year 73 81 of which due in 1 year to 5 years – – 13 Deferred income of which due in more than 5 years – – The increase in deferred income primarily relates to deferred Other liabilities 1,194 1,168 revenue in connection with Mercedes me connectivity services. of which due in less than 1 year 1,191 1,160 The release of deferred income takes place pro rata in line of which due in 1 year to 5 years 3 8 with the periods of the underlying contracts. of which due in more than 5 years – . of which tax liabilities 160 175 of which obligations concerning social security 40 57
Total of liabilities 45,012 35,752 of which due in less than 1 year 20,351 17,978 of which due in 1 year to 5 years 17,022 13,625 of which due in more than 5 years 7,639 4,149 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE INCOME STATEMENT 19
Notes to the Income Statement
14 Revenue General administrative expenses primarily comprise personnel expenses, IT costs and fees for expertise and consulting. The development of revenue can be seen in table C.11. Other taxes and customs duties amounting to €89 million (2015: €103 million) are included within functional costs. 15 Functional costs The fees of the external auditors are shown in the notes to the Functional costs are broken down in the income statement consolidated financial statements. into the categories cost of sales, selling expenses and general administrative expenses.
The redefinition of cost allocations in financial year 2016 led to C.11 retrospective reclassifications of €347 million from general Revenue administrative expenses to cost of sales in the comparative 2016 2015 period 2015. The prior-year figures have been adjusted pursuant In millions of euros to Section 265 Subsection 2 of the German Commercial Code (HGB). If the previous definition of cost allocations had been Revenue by product retained, general administrative expenses in 2016 would have Cars 81,807 78,863 been €394 million higher and cost of sales by the same Commercial vehicles 25,371 24,161 amount lower. 107,178 103,024
Cost of sales includes manufacturing costs incurred for products, Revenue by region goods and services sold. These costs mainly comprise the Germany 24,024 22,839 costs of production materials, personnel expenses, purchased International 83,154 80,185 goods and services, depreciation, rental and lease expenses 107,178 103,024 for the production premises and the currency result from busi- ness operations. The increase in cost of sales results in parti Breakdown of international revenue cular from the growth in unit sales and higher expenses for new Western Europe (excluding Germany) 24,282 21,143 products and technologies. Cost of sales also includes United States 19,646 21,841 €6,570 million (2015: €5,583 million) of research and develop- Asia (excluding China) 11,222 11,090 ment expenses. China 11,354 10,641 Eastern Europe 7,998 7,190 Revenue in the financial year includes extraordinary expenses The Americas (excluding United States) 3,686 3,385 of €563 million in connection with Takata Airbags. Other markets 4,966 4,895 83,154 80,185 Selling expenses mainly comprise purchased services such as for advertising and marketing, personnel expenses, commis- sion, outbound shipping costs, and the rental and lease expenses of the sales organization. The decrease in selling expenses primarily results from the decrease in personnel expenses related to the restructuring of the sales-and-service centers and the associated workforce reduction. 20 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE INCOME STATEMENT
16 Other operating income 17 Other operating expenses
Other operating income of €707 million (2015: €687 million) Other operating expense amounts to €1,456 million (2015: €733 consists mainly of currency gains in the amount of €121 million million). The change results in particular from extraordinary (2015: €81 million). With regard to the changes caused by expenses for legal proceedings in the amount of €400 million. BilRUG, we refer to the chapter E “Accounting policies and In the context of the organizational focus on the divisions, methods.” a restructuring program for the German sales organization was started in 2014, whereby individual, selected locations of the Other operating income includes €463 million (2015: €444 Group’s own sales organization in Germany were sold in 2015 million) of income assignable to other financial periods and 2016. Income and expenses from the individual sales and relates mostly to income from the release of provisions, locations and in particular expenses for personnel actions allowances, and accruals and deferrals. were netted off in other operating expenses of €64 million (2015: €244 million).
The expense from the currency translation of trade receivables C.12 and payables amounts to €78 million in 2016 (2015: €155 Income/expense from investments in subsidiaries million). and associated companies, net 2016 2015 Other operating expense of €303 million (2015: €104 million) In millions of euros is attributable to other periods.
Income from profit and loss transfer agreements 2,771 2,440 18 Income/expense from investments in thereof Daimler Vermögens- und Beteiligungsgesellschaft mbH 1,847 1,598 subsidiaries and associated companies, net C.12 Expenses from loss assumptions -15 -45 Net income from investments in subsidiaries and associated Income from subsidiaries 2,534 2,895 companies decreased slightly, mainly due to higher impairments Income from associated companies 24 207 of investments in subsidiaries and associated companies as Impairment of investments in subsidiaries and associated companies -1,283 -726 well as lower income from subsidiaries. Extraordinary income Write-ups on investments in subsidiaries of €533 million from the contribution of Daimspain S.L. and associated companies 29 2 into the special-purpose assets and from higher income from Gains on disposals of investments in profit-and-loss-transfer agreements had a positive effect. subsidiaries and associated companies 533 7 Losses on disposals of investments in The increase in income from profit-and-loss-transfer agreements subsidiaries and associated companies -14 -5 was mainly the result of the higher profit transfer from Daimler 4,579 4,775 Vermögens- und Beteiligungsgesellschaft mbH.
The impairments of investments in subsidiaries and associated companies mainly relate to Mercedes-Benz do Brasil Ltda (€610 million) and Daimler India Commercial Vehicles Private Limited (€580 million), and are primarily the result of economic developments in the emerging markets Brazil and India. These impairments constitute extraordinary expenses in the financial year. C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | NOTES TO THE INCOME STATEMENT 21
19 Interest income/expense, net C.13 22 Net profit
All of the earnings components of the existing special purpose Net profit for financial year 2016 is €5,868 million. After assets are recognized under interest income/expense, net a transfer to retained earnings of €2,391 million pursuant and are offset against the interest component of the retirement to Section 58 Subsection 2 of the German Stock Corporation benefit obligation. Act (AktG), distributable profit amounts to €3,477 million.
The interest expense from the retirement benefit obligation amounts to €349 million (2015: €2,234 million). The development of the special purpose assets resulted in income of €1,225 C.13 million (2015: €269 million). Interest income/expense, net 2016 2015 The compounding of provisions with an original maturity of In millions of euros more than one year results in an interest expense of €311 million (2015: €466 million). Income from other securities and loans of financial assets 19 19 thereof from subsidiaries 19 19 20 Other financial income/expense, net Other interest and similar income 1,593 674 thereof from subsidiaries 246 246 Other financial income/expense, net includes currency gains Interest and similar expenses -957 -3,101 of €85 million (2015: currency losses of €391 million) from thereof to subsidiaries -37 -92 current Group financing. It also includes income of €40 million 655 -2,408 (2015: expense of €23 million) from the measurement of deriv- ative financial instruments (interest-rate hedging contracts). C.14 C.14 Other financial income/expense, net 21 Income taxes 2016 2015 In millions of euros The parent company, Daimler AG, is also a taxpayer with respect to the profit and loss transfer agreements concluded Currency income/expense, net 85 -391 with its subsidiaries. The individual companies are listed Miscellaneous income 128 129 in the E “Statement of investments” pursuant to Section 285 Miscellaneous expenses -17 -31 of the German Commercial Code (HGB) and are marked 196 -293 with a separate footnote.
The income tax expense amounts to €1,422 million (2015: €900 million). It comprises an expense of €1,608 million for the year 2016 (2015: €1,595 million) as well as a benefit of €186 million for previous years (2015: €695 million).
The increased tax expense of €522 million compared to the prior year is primarily related to the decrease in tax benefits relating to other periods, which resulted in 2015 from the tax assessment of prior years.
The income tax expense of €1,608 million for 2016 remains close to the level of 2015 despite the increased profit before income taxes compared with 2015. This is caused by the changed composition of profit before income taxes. The decrease in earnings from operating activities led to lower taxable income, whereas the significant increase in financial income/ expense, net, only partially affected taxable income. The positive development of the financial expense for pensions caused by interest rate changes and an improved result from plan assets does not affect taxable income. For the calculation of taxable income, a constant interest rate has to be applied. In both years, substantial components of income from investments in subsidiaries and associated companies were nearly tax free.
Deferred taxes are not included in this item because the capi talization of deferred tax assets is optional. Future tax benefits mainly arise from temporary differences in connection with pensions and other provisions. 22 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Other Notes
Personnel expenses/Employees C.15 C.15 Personnel expenses Wages and salaries include direct labor, salaries, severance 2016 2015 payments, holiday bonuses, special bonuses and expenses In millions of euros resulting from personnel-related provisions.
Wages and salaries 10,771 10,917 Social-security contributions primarily relate to the employer’s Social security contributions 1,713 1,696 contributions to pension, unemployment, nursing-care and Pension costs 355 130 medical insurance plans. 12,839 12,743 Pension costs include the components to be shown under functional costs pursuant to applicable law. Insofar as they Employees occur, contributions to the German Pension Insurance Associa- 2016 2015 tion are included as well. Annual average numbers Manual workers 82,997 84,125 Salaried employees 58,398 59,098 Cost of materials 141,395 143,223 Trainees/apprentices/interns 9,889 9,772 Cost of materials includes expenses for raw materials and Total (average for the year) 151,284 152,995 manufacturing supplies as well as for purchased goods and services. C.16 Total (at end of year) 148,704 151,183 Derivative financial instruments and valuation units C.16 Cost of materials Derivative financial instruments serve solely to hedge risks 2016 2015 relating to foreign exchange rates, interest rates and raw In millions of euros material prices. They cover the underlying transactions of the companies of the Daimler Group and the original financial Cost of raw materials, manufacturing transactions (underlying transactions) and are placed together supplies and purchased goods 71,544 67,368 with them as far as possible in valuation units. Cost of purchased services 13,551 12,646 85,095 80,014 The derivative financial instruments held by Daimler AG have the nominal values as shown in table C.17 at the end of the reporting year and the prior year. The nominal values are the totals of the basic values of all purchase and sale C.17 contracts without netting off. Derivative financial instruments: nominal values Dec. 31, 2016 Dec. 31, 2015 In millions of euros
Foreign exchange contracts 61,285 57,150 Interest rate contracts 23,444 19,718 Commodity forward contracts 1,443 1,747 86,172 78,615 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 23
The foreign exchange contracts primarily comprise currency The fair values of currency forwards are determined on the basis forwards and currency options. They mainly serve to hedge the of current ECB reference rates with consideration of forward foreign exchange risks of the companies of the Group from premiums or discounts. Currency options are measured with the the cash flows expected with a high degree of certainty from the use of quoted rates or option price models. The fair values of automotive business. Currency forwards are also held to hedge interest rate contracts are determined on the basis of discounted the risks connected with financial receivables and liabilities from expected future cash flows with the use of the market interest the Group’s financing. Interest rate contracts include interest rates applicable for the remaining time until maturity of the finan- rate swaps as well as interest/currency swaps. They are primarily cial instruments. The fair values of commodity contracts are used to minimize the risk of changes in interest rates. Com- determined on the basis of current spot rates on commodity modity contracts currently consist of commodity swaps used exchanges with consideration of forward premiums or discounts. for hedging purchasing prices of raw materials expected to be purchased with a high degree of certainty. Of the derivative financial instruments held on the balance sheet date in a nominal amount of €86,172 million, financial The carrying values and fair values of derivative financial instruments in a total amount of €74,526 million serve as instruments at the end of the reporting year and the prior hedging instruments in valuation units. Of that total, €55,172 year are shown in the table C.18. million is accounted for by foreign exchange contracts, €18,313 million by interest rate contracts and €1,041 million The carrying values are taken from the items of the balance by commodity forward contracts. sheet and relate to other assets, other liabilities, other provi- sions, and prepaid expenses and deferred income. Other assets and other liabilities comprise paid and received option premiums from currency options as well as advance payments made and received for interest-rate/currency swaps. Other provisions consist on the one hand of negative fair values and changes in fair values of derivatives which are not included in a valuation unit, and on the other hand of negative ineffective- ness from valuation units. Prepaid expenses and deferred income include effects on earnings from commodity swaps which have already become due.
C.18 Derivative financial instruments: carrying value / fair value Dec. 31, 2016 Dec. 31, 2015 Carrying value Fair value Carrying value Fair value In millions of euros
Assets Foreign exchange contracts 22 1,185 46 656 Interest rate contracts 8 698 56 614 Commodity forward contracts 12 85 11 114 42 1,968 113 1,384
Liabilities Foreign exchange contracts -95 -1,997 -70 -2,695 Interest rate contracts -8 -296 -89 -286 Commodity forward contracts -28 -127 -38 -320 -131 -2,420 -197 -3,301
Balance -89 -452 -84 -1,917 24 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Table C.19 shows the hedged exchange rate, interest and Currency forwards with Group external counterparties of commodity price risks included in valuation units. the financing activities are combined into valuation units with opposing hedges concluded within the Group. Currency If derivative financial instruments are included in valuation units forwards with Group external counterparties that are not with the related underlying transactions, an effectiveness opposed by any corresponding hedges within the Group are measurement is carried out both at the beginning of the hedging included with the related financial receivables and liabilities period and on each following balance sheet date upon which in valuation units, provided that the documentation requirements the hedge exists. In connection with the hedging of exchange are fulfilled. To the extent that negative fair values from the rate risks of assets and liabilities, the terms and parameters valuation of hedges are offset by currency gains from the under- of the underlying transaction and the hedging transaction are lying transactions, derivatives are not accounted for; in this compared with each other. With the hedging of future trans case, the corresponding losses are only recognized in profit and actions, the dollar-offset method is mainly used. The risk manage- loss for the period when the derivatives mature, simultane- ment system at the Daimler Group monitors the effectiveness ously with the currency gains from the underlying transactions. of hedges. Provisions are recognized for any amounts in excess of that. The hedging period is generally one to three years. Foreign exchange contracts Currency forwards and currency options in the automotive Interest rate contracts business are combined with the expected cash flows they are Interest swaps and interest/currency swaps with Group based upon for each currency in valuation units. To the extent external counterparties are combined into valuation units with that negative fair values from the valuation of hedges are offset opposing interest and interest/currency contracts within the by currency gains from the expected underlying transactions, Group. For interest hedges with Group external counterparties they are not accounted for; in this case, the corresponding losses that are not opposed by any corresponding hedges within the are only recognized in profit and loss for the period when the Group, provided the documentation requirements are fulfilled, derivatives mature, simultaneously with the currency gains from they are included in valuation units with the related financial the underlying transactions. Provisions are recognized for any receivables and liabilities. To the extent that negative fair values amounts in excess of that. The hedging period is generally up to from the valuation of hedges are offset by currency gains five years. Setting hedging volumes lower than the planned from the underlying transactions, derivatives are not accounted cash flows in the respective foreign currency and decreasing as for. Provisions are recognized for any amounts in excess of time passes ensures that the future cash flows from the de that. The hedging period is one to a maximum of twelve years. rivatives are covered to a high degree of certainty by opposing currency effects from the underlying transactions.
C.19 Derivative financial instruments: valuation units Dec. 31, 2016 Hedging Hedged Positive Negative instrument volume fair value fair value In millions of euros
Exchange rate / interest rate risk Interest rate contracts 18,313 275 -366 of assets and liabilities Foreign exchange contracts 309 – -2 Exchange rate risk of future transactions Foreign exchange contracts 54,863 1,149 -1,934 Purchase price risk of future transactions Commodity forward contracts 1,041 68 -86 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 25
Commodity forward contracts Other financial obligations Raw-material hedges with Group external counterparties are combined into valuation units with opposing hedges within the Other financial commitments total €26,810 million (thereof due Group. For raw-material hedges with Group external counter- in 2017: €18,799 million). Such commitments to subsidiaries parties that are not opposed by any corresponding hedges amount to €7,620 million (thereof due in 2017: €4,492 million); within the Group, to the extent that applicable statutory require- such commitments to associated companies amount to €198 ments can be fulfilled, commodity forward contracts are (thereof due in 2017: €115 million). combined in valuation units with the price-change effects of the future material purchases they are intended to hedge. In connection with vehicle sales and leasing, buyback obliga- To the extent that negative fair values from the valuation of tions exist in an amount of €5,416 million (thereof due in 2017: hedges are opposed by positive price-change effects from €2,029 million). Such obligations to subsidiaries amount to the expected underlying transactions, derivatives are not €3,857 million (thereof due in 2017: €1,664 million). accounted for; in this case, the corresponding losses are recog- nized in profit and loss for the period when the price-change Other financial commitments resulting from rental and leasing effects from the purchases of raw materials are recognized. agreements amount to €2,118 million (thereof due in 2017: Provisions are recognized for any amounts in excess of €869 million). Of that total, €1,314 million relates to subsidiaries that. The hedging period is generally one to three years. Setting (thereof due in 2017: €644 million). Rental obligations to hedging rates lower than the planned material requirements property management companies amount to €1,286 million and decreasing as time passes ensures that the future cash flows (thereof due in 2017: €633 million). from the derivatives are covered to a high degree of certainty by opposing price-change effects of the hedged materials. The remaining financial commitments, in particular the purchase commitment, are of a magnitude typical for the industry. Contingent liabilities
Contingent liabilities relate to potential future events, the occurrence of which would lead to an obligation. At the balance sheet date, the contingent liabilities of Daimler AG were reviewed with consideration of available knowledge about the financial position, cash flows and profitability of busi- ness 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, 2016, contingent liabilities amount to €65,088 million (2015: €60,034 million), primarily consisting of guarantees. They include guarantees to domestic and foreign subsidiaries amounting to €64,938 million (2015: €59,883 million), which primarily comprise guarantees provided to creditors of subsidiaries of Daimler AG, for example for loans they have taken out and bonds they have issued and liabilities to banks. To the benefit of co-shareholders of Mercedes-Benz (China) Ltd., Daimler AG is liable for guaran- teed dividends for 2016 and following years.
Guarantees were issued for the benefit of third parties in a total amount of €150 million (2015: €151 million). This includes a payment guarantee in an amount of €100 million that was provided in the context of obligations from bank loans granted to Toll Collect GmbH. 26 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Related party relationships according to Legal proceedings Section 285 No. 21 of the German Commercial Code (HGB) Various legal proceedings, claims and governmental investi gations (legal proceedings) are pending against Daimler AG Subsidiaries and associated companies and its subsidiaries on a wide range of topics, including vehicle Most of the goods and services supplied within the ordinary safety, emissions, fuel economy, financial services, dealer, course of business between Daimler AG and related parties supplier and other contractual relationships, intellectual property comprise transactions with subsidiaries and associated com- rights, product warranties, environmental matters, antitrust panies and are included in table C.20. matters and shareholder matters. Legal proceedings relating to products deal with claims on account of alleged vehicle In connection with a 45% equity interest of the Daimler Group defects. Some of these claims are asserted by way of class in Toll Collect GmbH, Daimler has issued a guarantee that is action suits. not included in table C.20. If the outcome of such legal proceedings is detrimental to Board members Daimler, we may be required to pay substantial compensatory Throughout the world, Daimler AG has business relationships and punitive damages or to undertake service actions, recall with numerous entities that are also customers and/or suppliers campaigns, monetary penalties or other costly actions. Some of Daimler AG. Those customers and/or suppliers include of these proceedings may have an impact on the Group’s companies that have a connection with some of the members of reputation. the Supervisory Board or Board of Management of Daimler AG or its subsidiaries. In the second quarter of 2016, extraordinary expenses of €400 million were incurred in connection with legal proceedings.
In early 2016, several consumer class-action lawsuits were filed C.20 against Mercedes-Benz USA, LLC (MBUSA) in federal courts Business between Daimler AG and related parties in the U.S. The main allegation was the use of devices that imper- Associated missibly impair the effectiveness of emission control systems Subsidiaries companies in reducing nitrogen-oxide (NOx) emissions and which cause In millions of euros excessive emissions from vehicles with diesel engines. In addition, plaintiffs alleged that consumers were deliberately Sales of goods and services deceived in connection with the advertising of Mercedes-Benz and other income in 2016 13,634 3,817 diesel vehicles. Those consumer class actions were conso Purchases of goods and services lidated into one class action pending against both Daimler AG and other expenses in 2016 1,439 753 and MBUSA in the US District Court for the District of New Receivables at December 31, 2016 3,416 1,423 Jersey, in which the plaintiffs asserted various grounds for Payables monetary relief on behalf of a nation-wide class of persons or at December 31, 2016 328 108 entities who owned or leased certain models of Mercedes-Benz diesel vehicles as of February 18, 2016. Daimler AG and MBUSA moved to dismiss 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 plaintiffs’ failure to allege with sufficient specificity the advertising that they contended had misled them. On December 16, 2016, plaintiffs 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 U.S. regulators and consumers. Daimler AG and MBUSA view the lawsuit as being without merit and will defend against the claims. C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 27
Another consumer class-action lawsuit against Daimler AG On June 23, 2016 the German Federal Cartel Office carried and other companies of the Group containing similar allegations out dawn raids at several car manufacturers and suppliers, was filed in Canada in April 2016. Daimler also regards the including Daimler AG, with regard to steel purchasing. Daimler Canadian lawsuit as being without merit and will defend vigor- is cooperating in full with the authority. ously against the claims. In a settlement decision adopted on July 19, 2016, the Euro- In addition, several state and federal authorities, including in pean Commission concluded the trucks antitrust proceedings Europe and the United States, have inquired about and are against Daimler AG and other truck manufacturers that investigating test results, the emission control systems used in commenced in 2011. The European Commission imposed a fine Mercedes-Benz diesel vehicles and Daimler’s interaction with on Daimler AG in the amount of €1,009 million which has, the relevant state and federal authorities as well as related legal in the meantime, been paid. During the entire proceedings, issues and implications, including, but not limited to, under Daimler AG cooperated closely with the authorities and the Euro- applicable environmental, securities and criminal laws. These pean Commission took into account the company’s cooperation authorities include, among others, the U.S. Department of by reducing the fine imposed. Daimler had recognized Justice (DOJ), which in April 2016 requested that Daimler AG a provision for the fine. review its certification and admissions processes related to exhaust emissions of diesel vehicles in the United States by way The Federal Republic of Germany initiated arbitration proceed- of an internal investigation in cooperation with the DOJ, the ings against Daimler Financial Services AG, Deutsche Telekom U.S. Environmental Protection Agency (EPA), the California Air AG and Toll Collect GbR and submitted its statement of claims Resources Board (CARB) and other state authorities, the U.S. in August 2005. It seeks damages, contractual penalties and the Securities and Exchange Commission (SEC), the Stuttgart district transfer of intellectual property rights to Toll Collect GmbH. attorney’s office, to which Daimler offered its cooperation and In particular, the Federal Republic of Germany is claiming provided information, and the diesel emissions committee of – lost revenue of €3.33 billion for the period September 1, 2003 inquiry of the German Parliament. Daimler is cooperating fully through December 31, 2004 plus interest at 5% per annum with the DOJ and the other authorities. These inquiries, above the respective base rate since submission of claims investigations and the replies to these information requests as (an amount of €2 billion as at the date of September 29, 2014), well as Daimler’s internal investigation are ongoing. – contractual penalties of approximately €1.65 billion through July 31, 2005 plus interest at 5% per annum above the In late August 2016, Mercedes-Benz Canada (MB Canada) was respective base rate since submission of claims (an amount added as a defendant to a putative nation-wide class action of €225 million as at the date of September 29, 2014) and pending in Ontario Superior Court. The main allegation – refinancing costs of €196 million. in the matter is that MB Canada, along with Takata entities as well as many other companies which sold vehicles with Since, among other things, some of the contractual penalties are Takata airbag inflators installed in them, was allegedly negligent dependent on time and further claims for contractual penalties in selling such vehicles, purportedly not recalling them quickly have been asserted by the Federal Republic of Germany, the enough, and failing to provide an allegedly adequate replacement amount claimed as contractual penalties may increase. The airbag inflator. Daimler AG regards these cases as being defendants submitted their response to the statement of claims without merit, and MB Canada will defend vigorously against on June 30, 2006. The Federal Republic of Germany delivered the claims. Moreover, in January 2017, Mercedes-Benz USA, LLC its reply to the arbitrators on February 15, 2007, and the defen- (MBUSA) was named as defendant in a lawsuit filed by the dants delivered their rebuttal on October 1, 2007. The arbitra- State of New Mexico against Takata entities as well as many tors held the first hearing on June 16 and 17, 2008. Additional other companies which sold vehicles with Takata airbag inflators briefs from the claimant and the defendants have been filed installed in them. On behalf of consumers resident in the since then. A hearing of witnesses and experts took place state of New Mexico, accusations similar to those raised in between December 6 and 14, 2010. The parties submitted further the aforementioned Canada class action are made against written statements on July 15 and November 15, 2011. After the the defendants. Daimler AG regards the claims brought as to Tribunal’s President resigned for personal reasons as of March 30, Mercedes-Benz vehicles as being without merit, and MBUSA 2012, the new President was determined by the Administrative will defend vigorously against the claims. Court in Berlin as of October 29, 2012. The arbitrators held further hearings in May and October 2014 as well as in June 2015 and June 2016. Daimler believes the claims of the Federal Republic of Germany are without merit and will continue to defend itself vigorously. 28 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Daimler AG recognizes provisions in connection with pending Remuneration of the members of the or threatened proceedings to the extent a loss is probable and Board of Management and the Supervisory Board can be reasonably estimated. Such provisions are reflected in the financial statements and are based on estimates. Risks The following information regarding the remuneration of the resulting from legal proceedings, however, sometimes cannot members of the Board of Management and of the Supervisory be assessed reliably or only to a limited extent. Consequently, Board is disclosed on an individual basis in the Remuneration provisions accrued for some legal proceedings may turn out Report. The Remuneration Report is a component of the to be insufficient once such proceedings have ended. Daimler Combined Management Report for Daimler AG and the Daimler may also become liable for payments in legal proceedings Group. no provisions were established for. Although the final resolution of any such proceedings could materially affect Daimler’s Board of Management remuneration operating results and cash flows for a particular reporting period, The total remuneration (excluding retirement benefit commit- Daimler believes that it should not exert a sustained influence ments) granted to the members of the Board of Management on the financial position. of Daimler AG pursuant to Section 285 No. 9 of the German Commercial Code (HGB) is calculated as the total of the amounts of – the base salary in 2016, – the half of the annual bonus for 2017 payable in 2016 with its value at the balance sheet date, – the half of the medium-term share-based component of the annual bonus for 2016 (“deferral”) payable in 2018 with its value at the balance sheet date (entitlement depending on the development of Daimler’s share price compared with the Dow Jones STOXX Auto Index), – the value of the long-term share-based remuneration at the time when granted in 2016 (Performance Phantom Share Plan – PPSP), and – taxable non-cash benefits in 2016.
C.21 Individual entitlements, service costs and present values for members of the Board of Management Present value Annual pension Service cost of obligations (as regulated (for pension, (for pension, until 2005) pension capital and pension capital and as of age 60 Daimler Pensions Plan) Daimler Pensions Plan) In thousands of euros
Dr. Dieter Zetsche 2016 1,050 588 33,472 2015 1,050 742 32,040 Dr. Wolfgang Bernhard 2016 – 326 2,656 2015 – 344 2,187 Renata Jungo Brüngger 2016 – 117 542 2015 – – – Ola Källenius 2016 – 234 1,816 2015 – 117 1,366 Wilfried Porth 2016 156 208 7,214 2015 156 195 6,715 Hubertus Troska 2016 – 239 4,067 2015 – 319 2,811 Bodo Uebber 2016 275 555 12,680 2015 275 600 12,055 Prof. Dr. Thomas Weber 2016 300 218 11,199 2015 300 299 10,315
Total 2016 1,781 2,485 73,646 2015 1,781 2,616 67,489 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 29
For both of the share-based components of remuneration – The Pension Capital system was used from the beginning of both the deferred payment of the second 50% of the annual 2006 until the end of 2011. The pension agreements of active bonus (deferral) and the PPSP with a long-term orientation – the Board of Management members that were valid up until amounts actually paid out can deviate significantly from the that time were modified accordingly. All Board of Management values described, depending on the development of the Daimler members newly appointed during that period were subject share price and on the achievement of the relevant target exclusively to the Pension Capital system. parameters. Upward deviation is limited. Both components can also be zero. Further information on share-based remuneration Under this system, each Board of Management member is is provided in the E “Equity” chapter and in the Remuneration credited with a capital component each year. This capital Report. component comprises an amount equal to 15% of the sum of the Board of Management member’s fixed base salary In 2016, €9.8 million was fixed, that is, non-performance- and the total annual bonus for the respective financial year related remuneration (2015: €8.9 million), €11.6 million on the balance sheet date, multiplied by an age factor (2015: €17.4 million) was short- and medium-term performance- equivalent to a rate of return of 6% until 2015 and 5% as of related variable remuneration (annual bonus with deferral) 2016 (Wolfgang Bernhard and Wilfried Porth: 5% for all years). and €10.2 million was variable performance-related remu These contributions to pension plans are granted only until neration granted in 2015 with a long-term incentive effect the age of 60. The benefit from the pension plan is payable (2015: €12.3 million). This adds up to a total of €31.6 million for to surviving Board of Management members at the earliest 2016 (2015: €38.6 million). at the age of 60, irrespective of their age upon retirement. If a member of the Board of Management retires due to disability, In 2012, Daimler introduced a new company retirement benefit the pension is paid as a disability pension, even before the age plan for new entrants and new appointments for employees of 60. paid according to collective bargaining wage tariffs as well as for executives: the “Daimler Pensions Plan.” This retirement Payments under the Pension Capital system and the Daimler benefit system features the payment of annual contributions Pensions Plan can be made in three ways: by Daimler, but is oriented towards the capital market. Daimler – as a single amount; makes a commitment to guarantee the total of contributions – in twelve annual instalments, whereby interest accrues paid, which are invested in the capital market according to a on each partial amount from the time payments commence precautionary investment concept. until the payout is complete (Pension Capital: 6% or 5%; Daimler Pensions Plan in accordance with applicable law); The Supervisory Board of Daimler AG has approved the appli- – as an annuity with annual increases (Pension Capital 3.5% cation of this system for all members of the Board of Manage- or in accordance with applicable law; Daimler Pensions Plan ment newly appointed since 2012. The amount of the annual in accordance with applicable law). contributions results from a fixed percentage of the base salary and the total annual bonus for the respective financial year The contracts specify that if a Board of Management member calculated at the balance sheet date. This percentage is 15%. This passes away before retiring for reason of age, the spouse/ calculation takes into consideration the targeted level of registered partner or dependent children is/are entitled to the retirement provision for each Board of Management member – full committed amount in the case of the Pension Capital also according to the period of membership – and the resulting system, and to the credit amount reached plus an imputed annual and long-term expense for the Company. The contribu- amount until the age of 62 in the case of the Daimler Pensions tions to retirement provision are granted until the age of 62. Plan. If a Board of Management member passes away after The benefit from the pension plan is payable to surviving Board retiring for reason of age, in the case of payment of twelve annual of Management members at the earliest at the age of 62, installments, the heirs are entitled to the remaining present irrespective of their age upon retirement. If a member of the value. In the case of a pension with benefits for surviving depen- Board of Management retires due to disability, the benefit dents, the spouse/registered partner or dependent children is paid as a disability pension irrespective of his or her age is/are entitled to 60% of the discounted terminal value (Pension upon retirement. Capital), or the spouse/registered partner is entitled to 60% of the actual pension (Daimler Pensions Plan). 30 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Up until the end of 2005, the pension agreements of Board In the case of early termination of a service contract without of Management members included a commitment to an annual an important reason, Board of Management service contracts retirement pension, calculated as a proportion of the former include commitments to payment of the base salary and base salary and depending on the number of years of service; provision of a company car until the end of the original service an analogous implementation of this commitment for the period at a maximum. However, entitlement to the payment corresponding hierarchical level applied to Wilfried Porth for of the annual bonus exists only pro-rata for the time until the the period prior to his serving as a member of the Board of termination of the service contract or of the Board of Manage- Management. Such pension claims remained in effect after the ment membership takes effect. Entitlement to payment of the conversion to the Pension Capital system but were frozen performance-related component of remuneration with a long- at the level reached at the beginning of 2006. term incentive effect that has already been allocated is defined by the conditions of the respective plans. To the extent that Payments of these retirement pensions start upon request the benefits described above are subject to the provisions of when the term of service ends at or after the age of 60, or the so-called severance cap of the German Corporate Gover- are paid as disability pensions if the term of service ends before nance Code, their total including fringe benefits is limited to the age of 60 due to disability. The respective agreements double the annual remuneration and may not exceed the total provide for 3.5% annual increases starting when benefits are remuneration for the remaining period of the service contract. received (with the exception that Wilfried Porth’s benefits are adjusted in accordance with applicable law). The agreements Payments made in 2016 to former members of the Board include a provision by which a spouse of a deceased Board of Management of Daimler AG and their survivors amounted of Management member is entitled to 60% of that member’s to €15.6 million (2015: €15.5 million). Pension obligations for pension. That amount can increase by up to 30 percentage former members of the Board of Management and their survivors points depending on the number of dependent children. amounted to €204.1 million at December 31, 2016 (2015: €208.9 million). Departing Board of Management members with pension agreements modified as of the beginning of 2006 receive, for In 2016, no advances or loans were made to members of the the period between the end of the last contract period and Board of Management of Daimler AG. reaching the age of 60, payments in the amounts of the pension commitments granted as described in the previous section. Supervisory Board remuneration Departing Board of Management members are also provided Remuneration for all the activities of the members of the Super- with a company car, in some case for a defined period. These visory Board of Daimler AG amounted to €3.5 million in 2016 payments are made until the age of 60, possibly reduced due (2015: €3.5 million). The remuneration of the members of the to other sources of income, and are subject to the annual Supervisory Board does not include a performance-related percentage increases described above in the explanation variable component. of these pension agreements. With the exception of the remuneration paid to the members of The following details of retirement benefits have been calculated the Supervisory Board representing the employees in accor- with consideration of the parameters used to calculate the dance with their contracts of employment, no remuneration was pension obligation. The service cost of the pension obligation paid to the members of the Supervisory Board for services in 2016 was €2.5 million (2015: €2.6 million). The present value provided personally beyond their board and committee activi- of the total obligation at December 31, 2016 was €73.6 million ties in 2016, in particular for advisory or agency services. The (2015: €67.5 million). Taking age and years of service into members of the Supervisory Board solely receive remuneration consideration, the individual pensions, service costs and present due in the short term. values are as shown in table C.21. In 2016, no advances or loans were made to members of the Supervisory Board of Daimler AG. C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 31
Disclosures according to Section 160 Declaration of Compliance with the Subsection 1 No. 8 of the German Stock German Corporate Governance Code Corporation Act (AktG) The mandatory statement pursuant to Section 161 of the At the balance sheet date of December 31, 2016, shareholdings German Stock Corporation Act (AktG) has been issued by the in the Company exist that were communicated pursuant to Board of Management and the Supervisory Board and is Section 21 Subsection 1 of the German Securities Trading Act permanently accessible on w www.daimler.com/konzern/ (WpHG) and disclosed pursuant to Section 26 Subsection 1 corporate-governance/. of the WpHG as follows:
“BlackRock, Inc., Wilmington, DE, U.S.A., notified us on May 17, 2016 pursuant to Section 21 Subsection 1 of the German Securities Trading Act (WpHG) that its percentage of voting rights in Daimler AG, Stuttgart, Germany, exceeded the threshold of 5% on May 11, 2016 and amounts to 5.18% (equals: 55,377,428 out of a total of 1,069,837,447 voting rights) as of that date. Of these voting rights, 5.18% (equal to 55,377,428 voting rights) are to be attributed to BlackRock, Inc. Wilmington, DE, U.S.A., pursuant to section 22 of the WpHG.”
“Renault S. A., Boulogne-Billancourt, France, has notified us pursuant to Section 21 Subsection 1 of the German Securities Trading Act (WpHG) that its percentage holding of the voting rights in Daimler AG, Mercedesstr. 137, 70327 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 Nissan Motor Co. Ltd. are attributable to Renault S. A. pursuant to Section 22 Subsection 2 of the WpHG.
Nissan Motor Co. Ltd., Yokohama, Japan, has notified us pursuant to Section 21 Subsection 1 of the German Securities Trading Act (WpHG) that its percentage holding of the voting rights in Daimler AG, Mercedesstr. 137, 70327 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. pursuant to Section 22 Subsection 2 of the WpHG.”
“The Kuwait Investment Authority as Agent for the Government 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 that the voting rights of the State of Kuwait in Daimler AG, Mercedesstr. 137, 70327 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.” 32 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Members of the Board of Management and their mandates Members of the Board of Management Supervisory board memberships/directorships
Dr.-Ing. Dieter Zetsche Internal directorships Stuttgart None Chairman of the Board of Management Daimler AG/ Head of Mercedes-Benz Cars/ External directorships since February 10, 2017, also interim Veta Health LLC Head of Daimler Trucks and Buses1 Appointed until December 2019
Dr. Wolfgang Bernhard Until the termination of the appointment as of the end of Stuttgart February 10, 2017, Dr. Wolfgang Bernhard, as member of the Daimler Trucks and Buses Board of Management, was member in the following bodies: Termination of the appointment at the end of February 10, 2017 Internal directorships Daimler India Commercial Vehicles Private Ltd. EvoBus GmbH – Chairman Mercedes-Benz Grand Prix Ltd. Mitsubishi Fuso Truck and Bus Corporation
External directorships Beijing Foton Daimler Automotive Co., Ltd.
Renata Jungo Brüngger Internal directorships Stuttgart None Integrity and Legal Affairs (since January 1, 2016) External directorships Appointed until December 2018 Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (since January 3, 2017)
Britta Seeger Internal directorships Stuttgart Mercedes-Benz (China) Ltd. (since January 1, 2017) Mercedes-Benz Cars Marketing & Sales Mercedes-Benz South Africa Ltd. (since January 1, 2017) (since January 1, 2017) Mercedes-AMG GmbH (since January 1, 2017) Appointed until December 2020 Mercedes-Benz Grand Prix Ltd. (since January 24, 2017)
External directorships Beijing Mercedes-Benz Sales Service Co., Ltd. (since January 1, 2017) Laureus World Sports Awards Ltd. (since January 1, 2017)
Wilfried Porth Internal directorships Stuttgart Daimler Financial Services AG Human Resources and Director of Labor Relations, IT & Mercedes-Benz Vans External directorships Appointed until April 2022 None
1 Editorial amendment with regard to Board of Management responsibilities C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 33
Members of the Board of Management Supervisory board memberships/directorships
Hubertus Troska Internal directorships Stuttgart Daimler Greater China Ltd. – Chairman Greater China Daimler Northeast Asia Parts Trading & Services Co., Ltd. – Appointed until December 2020 Chairman 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 Daimler Culture Development Co., Ltd. - Chairman Shenzhen BYD Daimler New Technology Co., Ltd. – Chairman
Bodo Uebber Internal directorships Stuttgart Daimler Financial Services AG – Chairman Finance & Controlling/Daimler Financial Services Appointed until December 2019 External directorships BAIC Motor Corporation Ltd. Bertelsmann SE & Co. KGaA / Bertelsmann Management SE – Chairman of the “Prüfungs- und Finanzauschuss” Delta Topco Ltd.
Ola Källenius Internal directorships Stuttgart Mercedes-AMG GmbH – Chairman of the Advisory Board Group Research & Mercedes-Benz Cars Development (since January 1, 2017) (since January 1, 2017) Mercedes-Benz Grand Prix Ltd. (since January 1, 2017) (until December 31, 2016: Mercedes-Benz Cars Marketing & Sales) External directorships Appointed until December 2022 Tetra Laval Group
Prof. Dr.-Ing. Thomas Weber As of the termination of his appointment as a member of the Stuttgart Board of Management effective midnight on December 31, 2016, Group Research & Mercedes-Benz Cars Development Prof. Dr.-Ing. Thomas Weber had no board memberships. Termination of the appointment at the end of December 31, 2016 Internal directorships None
External directorships None 34 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Members of the Supervisory Board and their mandates Members of the Supervisory Board Supervisory board memberships/directorships
Dr. Manfred Bischoff SMS Holding GmbH Munich Chairman of the Supervisory Board of Daimler AG Elected until 2021
Michael Brecht* Gaggenau Chairman of the General Works Council, Daimler Group and Daimler AG; Chairman of the Works Council, Gaggenau Plant, Daimler AG; Deputy Chairman of the Supervisory Board of Daimler AG Elected until 2018
Dr. Paul Achleitner Deutsche Bank AG – Chairman Munich Bayer AG Chairman of the Supervisory Board of Deutsche Bank AG Elected until 2020
Sari Baldauf Fortum OYj – Chairwoman Helsinki Deutsche Telekom AG Former Executive Vice President and General Manager AkzoNobel N.V. of the Networks Business Group of Nokia Corporation Vexve Holding OY – Chairwoman Elected until 2018
Michael Bettag* Nuremberg Chairman of the Works Council of the Nuremberg Dealership, Daimler AG Appointed until 2018
Dr. Bernd Bohr Formel D GmbH Stuttgart Former Member of the Management Board of Robert Bosch GmbH Elected until 2019
Dr. Clemens Börsig Linde AG Frankfurt am Main Bayer AG Chairman of the Board of Directors Emerson Electric Co. of Deutsche Bank Foundation Elected until 2017
Dr. Jürgen Hambrecht BASF SE - Chairman Ludwigshafen Fuchs Petrolub SE – Chairman Chairman of the Supervisory Board of BASF SE Trumpf GmbH + Co. KG – Chairman Elected until 2018 Nyxoah SA
Petraea Heynike Schulich School of Business Vevey Aiglon College Former Executive Vice President of the Executive Board of Nestlé S.A. Elected until 2021
Andrea Jung Apple Inc. New York General Electric Company President and Chief Executive Officer of Grameen America, Inc. Elected until 2018
* Representative of the employees C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 35
Members of the Supervisory Board Supervisory board memberships/directorships
Joe Kaeser Allianz Deutschland AG Munich NXP Semiconductors N.V. Chairman of the Board of Management of Siemens AG Elected until 2019
Ergun Lümali* Sindelfingen Chairman of the Works Council, Sindelfingen Plant; Deputy Chairman of the General Works Council of Daimler AG Elected until 2018
Wolfgang Nieke* Stuttgart Chairman of the Works Council, Untertürkheim Plant, Daimler AG Elected until 2018
Dr. Bernd Pischetsrieder Münchener Rückversicherungs-Gesellschaft Munich Aktiengesellschaft in München – Chairman Chairman of the Supervisory Board of Münchener Tetra Laval Group Rückversicherungs-Gesellschaft, Aktiengesellschaft in München Elected until 2019
Valter Sanches* Geneva General Secretary IndustriALL Global Union Elected until 2018
Jörg Spies* Stuttgart Chairman of the Works Council, Headquarters, Daimler AG Elected until 2018
Elke Tönjes-Werner* Bremen Deputy Chairwoman of the Works Council, Bremen Plant, Daimler AG Elected until 2018
Sibylle Wankel* Siemens AG Frankfurt am Main General Counsel of the German Metalworkers’ Union (IG Metall) (since August 25, 2016) Appointed until 2018
Dr. Frank Weber* Sindelfingen Director of the Press Shop, Sindelfingen Plant, Daimler AG; Chairman of the Management Representative Committee, Daimler Group Elected until 2018
Roman Zitzelsberger* Heidelberger Druckmaschinen AG Stuttgart German Metalworkers’ Union (IG Metall) District Manager Baden-Württemberg Appointed until 2018
* Representative of the employees 36 C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES
Retired from the Supervisory board: Committees of the Supervisory board:
Dr. Sabine Maaßen* Committee pursuant to Section 27 Subsection 3 Frankfurt am Main of the German Codetermination Act (MitbestG) General Counsel of the German Metalworkers’ Union Dr. Manfred Bischoff – Chairman (IG Metall) Michael Brecht* (retired on June 30, 2016) 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* (since July 1, 2016) Dr. Sabine Maaßen* (until June 30, 2016)
Nomination Committee Dr. Manfred Bischoff – Chairman Dr. Paul Achleitner Sari Baldauf
* Representative of the employees C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 37
Statement of Investments pursant to Section 285 of the German Commercial Code (HGB) in conjunction with Section 286 Subsection 3 Sentence 1 No. 1 of the German Commercial Code (HGB)
The statement of investments of Daimler AG pursuant to Information on equity and earnings is omitted pursuant to Section 285 of the German Commercial Code (HGB) Section 286 Subsection 3 Sentence 1 No. 1 of the HGB if such is presented as follows. For information regarding equity and information is of minor relevance for a fair presentation of earnings, IFRS values are generally used for fully consolidated the financial position, cash flows and profitability of Daimler AG. companies.
C.22 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. Eindhoven, Netherlands 100.00 – – Athlon Beheer Nederland B.V. Eindhoven, Netherlands 100.00 315 . 5 Athlon Car Lease Belgium N.V. Machelen, Belgium 100.00 – – Athlon Car Lease International B.V. Eindhoven, Netherlands 100.00 456 -4 5 Athlon Car Lease Italy S.R.L. Rome, Italy 100.00 13 -10 5 Athlon Car Lease Nederland B.V. Eindhoven, Netherlands 100.00 – – Athlon Car Lease Polska Sp. z o.o. Warsaw, Poland 100.00 – – Athlon Car Lease Portugal, lda Oeiras, Portugal 100.00 – – Athlon Car Lease Rental Services B.V. Eindhoven, Netherlands 100.00 – – Athlon Car Lease Rental Services Belgium N.V. Machelen, Belgium 100.00 – – Athlon Car Lease S.A.S. Le Bourget, France 100.00 – – Athlon Car Lease Spain, S.A. Barcelona, Spain 100.00 – – Athlon Dealerlease B.V. Eindhoven, Netherlands 100.00 – – Athlon France S.A.S. Le Bourget, France 100.00 – – Athlon Germany GmbH Düsseldorf, Germany 100.00 – – Athlon Mobility Consultancy B.V. Eindhoven, Netherlands 100.00 – – Athlon Mobility Consultancy N.V. Machelen, Belgium 100.00 – – Athlon Rental Germany GmbH Düsseldorf, Germany 100.00 – – Athlon Sweden AB Malmö, Sweden 100.00 – – Athlon Switzerland AG Schlieren, Switzerland 100.00 – – Auto Testing Company, Inc. Wilmington, USA 100.00 – – AutoGravity Corporation Wilmington, USA 100.00 – – Banco Mercedes-Benz do Brasil S.A. São Paulo, Brazil 100.00 435 11 10 Belerofonte Empreendimentos Imobiliários Ltda. São Paulo, Brazil 100.00 – – Brooklands Estates Management Limited Milton Keynes, 100.00 – – United Kingdom Campo Largo Comercio de Veículos e Peças Ltda. São Bernardo do Campo, Brazil 100.00 – – car2go Canada Ltd. Vancouver, Canada 100.00 1 -11 car2go China Co., Ltd. Beijing, China 100.00 – – car2go Danmark A/S Kopenhagen, Denmark 100.00 – – car2go Deutschland GmbH Leinfelden-Echterdingen, 100.00 -7 -13 Germany car2go Europe GmbH Leinfelden-Echterdingen, 75.00 – – Germany car2go Group GmbH Leinfelden-Echterdingen, 100.00 1 – 6 Germany car2go Iberia S.L.U. Madrid, Spain 100.00 – – car2go Italia S.R.L. Milan, Italy 100.00 – – car2go N.A. LLC Wilmington, USA 100.00 16 -23 car2go Nederland B.V. Utrecht, Netherlands 100.00 – – 38 C | ANNUAL FINANCIAL STATEMENTS 2016 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 €
car2go Österreich GmbH Vienna, Austria 100.00 – – car2go Sverige AB Stockholm, Sweden 100.00 – – CARS Technik & Logistik GmbH Wiedemar, Germany 100.00 – – 6 CLIDET NO 1048 (Proprietary) Limited Centurion, South Africa 100.00 – – Conemaugh Hydroelectric Projects, Inc. Wilmington, USA 100.00 – – Coventry Lane Holdings, L.L.C. Wilmington, USA 100.00 – – DA Investments Co. LLC Wilmington, USA 100.00 – – DAF Investments, Ltd. Wilmington, USA 100.00 – – Daimler AC Leasing, d.o.o. Ljubljana, Slovenia 52.00 – – Daimler Australia/Pacific Pty. Ltd. Melbourne, Australia 100.00 – – Daimler Automotive de Venezuela C.A. Valencia, Venezuela 100.00 – – Daimler Buses North America Inc. Oriskany, USA 100.00 – – 10 Daimler Canada Finance Inc. Montreal, Canada 100.00 262 4 Daimler Canada Investments Company Halifax, Canada 100.00 – – Daimler Capital Services LLC Wilmington, USA 100.00 12 12 10 Daimler Colombia S. A. Bogota D.C., Colombia 100.00 – – Daimler Export and Trade Finance GmbH Berlin, Germany 100.00 – – 6 Daimler Finance North America LLC Wilmington, USA 100.00 – – Daimler Financial Services AG Stuttgart, Germany 100.00 1,875 – 6 Daimler Financial Services India Private Limited Chennai, India 100.00 213 12 Daimler Financial Services Japan Co., Ltd. Kawasaki, Japan 100.00 108 17 10 Daimler Financial Services México, S. de R.L. de C.V. Mexico City, Mexico 100.00 124 26 10 Daimler Financial Services, S.A. de C.V., Mexico City, Mexico 100.00 – – S.O.F.O.M., E.N.R. Daimler Fleet Management GmbH Stuttgart, Germany 100.00 21 – 6 Daimler Fleet Management Singapore Pte. Ltd. Singapore, Singapore 100.00 – – Daimler Fleet Management South Africa (Pty.) Ltd. Centurion, South Africa 65.00 – – Daimler Fleet Management UK Limited Milton Keynes, 100.00 – – United Kingdom Daimler Fleet Services A.S. Istanbul, Turkey 100.00 – – Daimler FleetBoard GmbH Stuttgart, Germany 100.00 – – 6 Daimler Greater China Ltd. Beijing, China 100.00 1,568 243 Daimler Grund Services GmbH Schönefeld, Germany 100.00 – – 6 Daimler India Commercial Vehicles Private Limited Chennai, India 100.00 58 -128 Daimler Insurance Agency LLC Wilmington, USA 100.00 – – Daimler Insurance Services GmbH Stuttgart, Germany 100.00 – – 6 Daimler Insurance Services Japan Co., Ltd. Tokyo, Japan 100.00 – – Daimler Insurance Services UK Limited Milton Keynes, 100.00 – – United Kingdom Daimler International Finance B.V. Utrecht, Netherlands 100.00 525 -2 Daimler Investments US Corporation Wilmington, USA 100.00 – – Daimler Manufactura, S. de R.L. de C.V. Mexico City, Mexico 100.00 – – Daimler Mexico, S.A. de C.V. Mexico City, Mexico 100.00 371 40 Daimler Mobility Services GmbH Leinfelden-Echterdingen, 100.00 52 – 6 Germany Daimler Motors Investments LLC Wilmington, USA 100.00 – – Daimler Nederland B.V. Utrecht, Netherlands 100.00 854 1 Daimler North America Corporation Wilmington, USA 100.00 11,499 1,610 10 Daimler North America Finance Corporation Newark, USA 100.00 – – Daimler Northeast Asia Parts Trading and Beijing, China 100.00 78 44 Services Co., Ltd. Daimler Parts Brand GmbH Stuttgart, Germany 100.00 – – 6 Daimler Re Brokers GmbH Bremen, Germany 74.90 – – 6 Daimler Re Insurance S.A. Luxembourg Luxembourg, Luxembourg 100.00 56 10 Daimler Real Estate GmbH Berlin, Germany 100.00 – – 6 Daimler Retail Receivables LLC Farmington Hills, USA 100.00 – – DAIMLER SERVICIOS CORPORATIVOS MEXICO Mexico City, Mexico 100.00 – – S. DE R.L. DE C.V. Daimler South East Asia Pte. Ltd. Singapore, Singapore 100.00 161 43 Daimler Trucks and Buses (China) Ltd. Beijing, China 100.00 – – C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 39
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. Mississauga, Canada 100.00 145 87 10 Daimler Trucks Korea Ltd. Seoul, South Korea 100.00 – – Daimler Trucks North America LLC Wilmington, USA 100.00 2,357 907 Daimler Trucks Remarketing Corporation Portland, USA 100.00 65 -36 Daimler Trust Holdings LLC Farmington Hills, USA 100.00 – – Daimler Trust Leasing Conduit LLC Wilmington, USA 100.00 – – Daimler Trust Leasing LLC Farmington Hills, USA 100.00 – – Daimler UK Limited Milton Keynes, 100.00 613 142 United Kingdom Daimler Vans Hong Kong Limited Hong Kong, China 67.55 – – Daimler Vans USA, LLC Wilmington, USA 100.00 – – Daimler Vehículos Comerciales Mexico S. de R.L. de C.V. Mexico City, Mexico 100.00 – – 10 Daimler Vermögens- und Beteiligungsgesellschaft mbH Stuttgart, Germany 100.00 4,148 – 6, 10 Daimler Verwaltungsgesellschaft für Grundbesitz mbH Schönefeld, Germany 100.00 3,866 – 6 Daimler Vorsorge und Versicherungsdienst GmbH Berlin, Germany 100.00 – – 6 Daiprodco Mexico S. de R.L. de C.V. Mexico City, Mexico 100.00 – – DCS UTI LLC, Mercedes Series Wilmington, USA 100.00 – – Detroit Diesel Corporation Detroit, USA 100.00 120 140 Detroit Diesel Remanufacturing LLC Detroit, USA 100.00 92 25 Detroit Diesel Remanufacturing Mexicana, Toluca, Mexico 100.00 – – S. de R.L. de C.V. Detroit Diesel-Allison de Mexico, S. de R.L. de C.V. San Juan Ixtacala, Mexico 100.00 – – Deutsche Accumotive GmbH & Co. KG Kirchheim unter Teck, Germany 100.00 38 -26 EHG Elektroholding GmbH Stuttgart, Germany 100.00 1,114 – 6 EvoBus (Schweiz) AG Kloten, Switzerland 100.00 – – EvoBus (U.K.) Ltd. Coventry, United Kingdom 100.00 – – EvoBus Austria GmbH Wiener Neudorf, Austria 100.00 – – EvoBus Belgium N.V. Kobbegem-Asse, Belgium 100.00 – – EvoBus Ceská republika s.r.o. Prague, Czech Republic 100.00 – – EvoBus Danmark A/S Koege, Denmark 100.00 – – EvoBus France S.A.S. Sarcelles, France 100.00 – – EvoBus GmbH Stuttgart, Germany 100.00 160 – 6 EvoBus Ibérica, S.A. (Sociedad Unipersonal) Sámano, Spain 100.00 – – EvoBus Italia S.p.A. Bomporto, Italy 100.00 – – EvoBus Nederland B.V. Nijkerk, Netherlands 100.00 – – EvoBus Polska Sp. z o.o. Wolica, Poland 100.00 – – EvoBus Portugal, S.A. Mem Martins, Portugal 100.00 – – EvoBus Sverige AB Vetlanda, Sweden 100.00 – – Freightliner Custom Chassis Corporation Gaffney, USA 100.00 20 85 Friesland Lease B.V. Drachten, Netherlands 51.11 – – Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 2,446 350 Alpha 1 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 – – Alpha 2 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 – – Alpha 3 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 453 50 Alpha 4 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 619 27 Alpha 5 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 228 13 Alpha 6 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 – – Alpha 7 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 184 33 Beta OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 211 23 Delta OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 187 17 Epsilon OHG 40 C | ANNUAL FINANCIAL STATEMENTS 2016 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 €
Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 348 69 Gamma 1 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 159 15 Gamma 2 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 – – Gamma 3 OHG Grundstücksverwaltungsgesellschaft Daimler AG & Co. Schönefeld, Germany 100.00 – – Gamma 4 OHG Grundstücksverwaltungsgesellschaft EvoBus Schönefeld, Germany 100.00 169 19 GmbH & Co. OHG Hailo Network IP Limited London, United Kingdom 100.00 – – Hailo Network Ireland Ltd. Dublin, Ireland 100.00 – – Hailo Network Ltd. London, United Kingdom 100.00 – – Highway 2015-I. B.V. Amsterdam, Netherlands 0.00 – – 3 Intelligent Apps GmbH Hamburg, Germany 68.86 91 – 6 Interleasing Luxembourg S.A. Windhof, Luxembourg 100.00 – – Invema Assessoria Empresarial Ltda São Paulo, Brazil 100.00 – – Koppieview Property (Pty) Ltd Zwartkop, South Africa 100.00 – – LBBW AM-MBVEXW Stuttgart, Germany 0.00 – – 3 LBBW AM - Daimler Re Insurance Luxembourg, Luxembourg 0.00 – – 3 Li-Tec Battery GmbH Kamenz, Germany 100.00 – – 6 MBarc Credit Canada Inc. Mississauga, Canada 100.00 – – MDC Power GmbH Kölleda, Germany 100.00 50 – 6 MDC Technology GmbH Arnstadt, Germany 100.00 – – 6 Mercedes AMG High Performance Powertrains Ltd Brixworth, United Kingdom 100.00 – – Mercedes-AMG GmbH Affalterbach, Germany 100.00 535 – 6 Mercedes-Benz - Aluguer de Veículos, Unipessoal Lda. Mem Martins, Portugal 100.00 – – Mercedes-Benz (China) Ltd. Beijing, China 75.00 1,987 614 10 Mercedes-Benz (Thailand) Limited Bangkok, Thailand 100.00 122 93 10 Mercedes-Benz (Yangzhou) Parts Distribution Co., Ltd. Yangzhou, China 100.00 – – Mercedes-Benz Accessories GmbH Stuttgart, Germany 100.00 7 – 6 Mercedes-Benz AG & Co. Grundstücksvermietung Düsseldorf, Germany 100.00 – – 3 Objekte Leipzig und Magdeburg KG Mercedes-Benz Antwerpen N.V. Antwerp, Belgium 100.00 – – Mercedes-Benz Argentina S.A. Buenos Aires, Argentina 100.00 109 -21 Mercedes-Benz Asia GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Assuradeuren B.V. Utrecht, Netherlands 100.00 – – Mercedes-Benz Australia/Pacific Pty Ltd Melbourne, Australia 100.00 621 69 Mercedes-Benz Auto Finance Ltd. Beijing, China 100.00 1,277 128 10 Mercedes-Benz Auto Lease Trust 2015-A Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Lease Trust 2015-B Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Lease Trust 2016-A Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Lease Trust 2016-1 Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Lease Trust 2016-2 Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Lease Trust 2016-B Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Receivables Trust 2013-1 Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Receivables Trust 2014-1 Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Receivables Trust 2015-1 Wilmington, USA 0.00 – – 3 Mercedes-Benz Auto Receivables Trust 2016-1 Wilmington, USA 0.00 – – 3 Mercedes-Benz Bank AG Stuttgart, Germany 100.00 1,719 – 6 Mercedes-Benz Bank GmbH Salzburg, Austria 100.00 – – Mercedes-Benz Bank Polska S.A. Warsaw, Poland 100.00 – – Mercedes-Benz Bank Rus OOO Moscow, Russian Federation 100.00 – – Mercedes-Benz Bank Service Center GmbH Berlin, Germany 100.00 – – 6 Mercedes-Benz Banking Service GmbH Saarbrücken, Germany 100.00 – – 6 Mercedes-Benz Belgium Luxembourg S.A. Brussels, Belgium 100.00 94 17 10 Mercedes-Benz Bordeaux S.A.S. Begles, France 100.00 – – Mercedes-Benz Broker Biztositási Alkusz Hungary Kft. Budapest, Hungary 100.00 – – Mercedes-Benz Brooklands Limited Milton Keynes, 100.00 – – United Kingdom C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 41
Name of the Company Domicile, Country Capital Equity in Net income Footnote share in millions of € (loss) in %1 millions of €
Mercedes-Benz Canada Inc. Toronto, Canada 100.00 174 60 Mercedes-Benz Capital Rus OOO Moscow, Russian Federation 100.00 – – Mercedes-Benz Ceská republika s.r.o. Prague, Czech Republic 100.00 – – 10 Mercedes-Benz CharterWay España, S.A. Alcobendas, Spain 100.00 – – Mercedes-Benz CharterWay Gesellschaft Berlin, Germany 100.00 17 – 6 mit beschränkter Haftung Mercedes-Benz CharterWay S.A.S. Le Chesnay, France 100.00 – – Mercedes-Benz CharterWay S.r.l. Trent, Italy 100.00 – – Mercedes-Benz Comercial, Unipessoal Lda. Mem Martins, Portugal 100.00 – – Mercedes-Benz Compañía Financiera Argentina S.A. Buenos Aires, Argentina 100.00 – – Mercedes-Benz Connectivity Services GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Corretora de Seguros Ltda São Paulo, Brazil 99.98 – – Mercedes-Benz CPH A/S Horsholm, Denmark 100.00 – – Mercedes-Benz Credit Pénzügyi Szolgáltató Hungary Zrt. Budapest, Hungary 100.00 – – Mercedes-Benz Danmark A/S Kopenhagen, Denmark 100.00 198 46 10 Mercedes-Benz Dealer Bedrijven B.V. The Hague, Netherlands 100.00 – – Mercedes-Benz Desarrollo de Mercados, Mexico City, Mexico 100.00 – – S. de R.L. de C.V. Mercedes-Benz do Brasil Assessoria Comercial Ltda. São Paulo, Brazil 100.00 – – Mercedes-Benz do Brasil Ltda. São Bernardo do Campo, Brazil 100.00 1,247 -493 Mercedes-Benz Drogenbos N.V. Drogenbos, Belgium 100.00 – – Mercedes-Benz Espana, S.A.U. Alcobendas, Spain 100.00 456 73 10 Mercedes-Benz Finance Co., Ltd. Tokyo, Japan 90.00 243 40 Mercedes-Benz Financial Services Australia Pty. Ltd. Melbourne, Australia 100.00 193 30 10 Mercedes-Benz Financial Services Austria GmbH Salzburg, Austria 100.00 – – Mercedes-Benz Financial Services BeLux NV Brussels, Belgium 100.00 69 11 Mercedes-Benz Financial Services Canada Corporation Mississauga, Canada 100.00 326 75 10 Mercedes-Benz Financial Services Prague, Czech Republic 100.00 116 13 Ceská republika s.r.o. Mercedes-Benz Financial Services España, E.F.C., S.A. Alcobendas, Spain 100.00 100 23 10 Mercedes-Benz Financial Services France S.A. Montigny-le-Bretonneux, France 100.00 379 28 Mercedes-Benz Financial Services Hellas Vehicle Kifissia, Greece 100.00 – – Sales and Rental SA Mercedes-Benz Financial Services Hong Kong Ltd. Hong Kong, China 80.00 – – 10 Mercedes-Benz Financial Services Italia SpA Rome, Italy 100.00 248 36 Mercedes-Benz Financial Services Korea Ltd. Seoul, South Korea 80.00 289 37 Mercedes-Benz Financial Services Nederland B.V. Utrecht, Netherlands 100.00 124 29 10 Mercedes-Benz Financial Services New Zealand Ltd Auckland, New Zealand 100.00 – – Mercedes-Benz Financial Services Portugal – Mem Martins, Portugal 100.00 – – 10 Sociedade Financeira de Crédito S.A. Mercedes-Benz Financial Services Rus OOO Moscow, Russian Federation 100.00 – – Mercedes-Benz Financial Services Schweiz AG Schlieren, Switzerland 100.00 106 15 Mercedes-Benz Financial Services Singapore Ltd. Singapore, Singapore 85.00 – – 10 Mercedes-Benz Financial Services Slovakia s.r.o. Bratislava, Slovakia 75.00 – – Mercedes-Benz Financial Services Centurion, South Africa 100.00 116 21 10 South Africa (Pty) Ltd Mercedes-Benz Financial Services Taiwan Ltd. Taipei, Taiwan 100.00 – – 10 Mercedes-Benz Financial Services UK Limited Milton Keynes, 100.00 580 112 10 United Kingdom Mercedes-Benz Financial Services USA LLC Wilmington, USA 100.00 2,484 414 10 Mercedes-Benz Finans Danmark A/S Kopenhagen, Denmark 100.00 – – Mercedes-Benz Finans Sverige AB Malmö, Sweden 100.00 – – Mercedes-Benz Finansal Kiralama Türk A.S. Istanbul, Turkey 100.00 – – Mercedes-Benz Finansman Türk A.S. Istanbul, Turkey 100.00 188 35 10 Mercedes-Benz Försäljnings AB Malmö, Sweden 100.00 – – Mercedes-Benz France S.A.S. Montigny-le-Bretonneux, France 100.00 353 96 10 Mercedes-Benz Gent N.V. Gent, Belgium 100.00 – – Mercedes-Benz Grand Prix Ltd. Brackley, United Kingdom 60.00 -170 -44 Mercedes-Benz Hellas S.A. Kifissia, Greece 100.00 – – Mercedes-Benz Hong Kong Limited Hong Kong, China 100.00 34 12 42 C | ANNUAL FINANCIAL STATEMENTS 2016 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 €
Mercedes-Benz India Private Limited Pune, India 100.00 243 29 Mercedes-Benz Insurance Broker S.R.L. Voluntari, Romania 100.00 – – Mercedes-Benz Insurance Services Nederland B.V. Utrecht, Netherlands 100.00 – – Mercedes-Benz Insurance Services Taiwan Ltd. Taipei, Taiwan 100.00 – – Mercedes-Benz Italia S.p.A. Rome, Italy 100.00 319 -30 10 Mercedes-Benz Japan Co., Ltd. Tokyo, Japan 100.00 657 99 Mercedes-Benz Korea Limited Seoul, South Korea 51.00 206 68 Mercedes-Benz Leasing (Thailand) Co., Ltd. Bangkok, Thailand 100.00 79 13 Mercedes-Benz Leasing Co., Ltd. Beijing, China 65.00 – – Mercedes-Benz Leasing do Brasil Arrendamento Barueri, Brazil 100.00 – – Mercantil S.A. Mercedes-Benz Leasing GmbH Stuttgart, Germany 100.00 415 – 6 Mercedes-Benz Leasing Hrvatska d.o.o. Zagreb, Croatia 100.00 – – Mercedes-Benz Leasing IFN S.A. Bukarest, Romania 100.00 – – 10 Mercedes-Benz Leasing Kft. Budapest, Hungary 100.00 – – 10 Mercedes-Benz Leasing Polska Sp. z o.o. Warsaw, Poland 100.00 77 12 10 Mercedes-Benz Leasing Taiwan Ltd. Taipei, Taiwan 100.00 – – Mercedes-Benz Leasing Treuhand GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Ludwigsfelde GmbH Ludwigsfelde, Germany 100.00 35 – 6 Mercedes-Benz Luxembourg S.A. Luxembourg, Luxembourg 100.00 31 12 Mercedes-Benz Lyon S.A.S. Lyon, France 100.00 – – Mercedes-Benz Malaysia Sdn. Bhd. Kuala Lumpur, Malaysia 51.00 165 75 Mercedes-Benz Manhattan, Inc. Wilmington, USA 100.00 – – Mercedes-Benz Manufacturing (Thailand) Limited Bangkok, Thailand 100.00 – – Mercedes-Benz Manufacturing Hungary Kft. Kecskemét, Hungary 100.00 304 73 Mercedes-Benz Master Owner Trust Wilmington, USA 0.00 – – 3 Mercedes-Benz Mexico, S. de R.L. de C.V. Mexico City, Mexico 100.00 20 14 Mercedes-Benz Milano S.p.A. Milan, Italy 100.00 – – Mercedes-Benz Minibus GmbH Dortmund, Germany 100.00 – – 6 Mercedes-Benz Mitarbeiter-Fahrzeuge Leasing GmbH Stuttgart, Germany 100.00 4 – 6 Mercedes-Benz Molsheim S.A.S. Molsheim, France 100.00 – – Mercedes-Benz Nederland B.V. Utrecht, Netherlands 100.00 227 20 10 Mercedes-Benz New Zealand Ltd Auckland, New Zealand 100.00 – – Mercedes-Benz Ninove N.V. Ninove, Belgium 100.00 – – Mercedes-Benz Österreich GmbH Salzburg, Austria 100.00 – – Mercedes-Benz Paris SAS Port-Marly, France 100.00 – – Mercedes-Benz Parts Manufacturing & Services Ltd. Shanghai, China 100.00 – – Mercedes-Benz Polska Sp. z o.o. Warsaw, Poland 100.00 67 24 10 Mercedes-Benz Portugal, S.A. Mem Martins, Portugal 100.00 – – 10 Mercedes-Benz PRAHA s.r.o. Prague, Czech Republic 100.00 – – Mercedes-Benz Renting, S.A. Alcobendas, Spain 100.00 – – Mercedes-Benz Research & Development Wilmington, USA 100.00 29 13 North America, Inc. Mercedes-Benz Retail Group UK Limited Milton Keynes, 100.00 – – United Kingdom Mercedes-Benz Retail, S.A. Madrid, Spain 100.00 – – Mercedes-Benz Risk Solutions South Africa (Pty.) Ltd. Centurion, South Africa 100.00 – – Mercedes-Benz Roma S.p.A. Rome, Italy 100.00 – – Mercedes-Benz Romania S.R.L. Bukarest, Romania 100.00 49 12 Mercedes-Benz Russia AO Moscow, Russian Federation 100.00 242 78 Mercedes-Benz Schweiz AG Schlieren, Switzerland 100.00 102 26 Mercedes-Benz Service Leasing S.R.L. Bukarest, Romania 100.00 – – Mercedes-Benz Services Correduria de Seguros, S.A. Alcobendas, Spain 100.00 – – Mercedes-Benz Services Malaysia Sdn Bhd Petaling Jaya, Malaysia 100.00 – – Mercedes-Benz Sigorta Aracilik Hizmetleri A.S. Istanbul, Turkey 100.00 – – Mercedes-Benz Sosnowiec Sp. z o.o. Sosnowiec, Poland 100.00 – – Mercedes-Benz South Africa Ltd Pretoria, South Africa 100.00 854 179 10 Mercedes-Benz Sverige AB Malmö, Sweden 100.00 63 28 10 Mercedes-Benz Taiwan Ltd. Taipei, Taiwan 51.00 115 42 C | ANNUAL FINANCIAL STATEMENTS 2016 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 €
Mercedes-Benz Türk A.S. Istanbul, Turkey 66.91 909 -27 Mercedes-Benz U.S. International, Inc. Vance, USA 100.00 341 80 Mercedes-Benz Ubezpieczenia Sp. z o.o. Warsaw, Poland 100.00 – – Mercedes-Benz UK Limited Milton Keynes, 100.00 253 90 10 United Kingdom Mercedes-Benz USA, LLC Wilmington, USA 100.00 168 77 10 Mercedes-Benz V.I. Lille SAS Vendeville, France 100.00 – – Mercedes-Benz V.I. Lyon SAS Genas, France 100.00 – – Mercedes-Benz V.I. Paris Ile de France SAS Wissous, France 100.00 – – Mercedes-Benz Vans, LLC Wilmington, USA 100.00 – – Mercedes-Benz Versicherung AG Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Vertrieb NFZ GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Vertrieb PKW GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Vietnam Ltd. Ho Chi Minh City, Vietnam 70.00 108 25 Mercedes-Benz Warszawa Sp. z o.o. Warsaw, Poland 100.00 – – Mercedes-Benz Waterloo S.A. Braine-L'Alleud, Belgium 100.00 – – Mercedes-Benz Wavre S.A. Wavre, Belgium 100.00 – – Mercedes-Benz Wemmel N.V. Wemmel, Belgium 100.00 – – Mercedes-Benz Wholesale Receivables LLC Wilmington, USA 100.00 – – MFTA Canada, Inc. Toronto, Canada 100.00 – – Mitsubishi Fuso Truck and Bus Corporation Kawasaki, Japan 89.29 2,339 365 MITSUBISHI FUSO TRUCK EUROPE – Tramagal, Portugal 100.00 – – Sociedade Europeia de Automóveis, S.A. Mitsubishi Fuso Truck of America, Inc. Logan Township, USA 100.00 – – 10 moovel Group GmbH Stuttgart, Germany 100.00 -2 – 6 moovel North America, LLC Wilmington, USA 100.00 6 -22 10 Multifleet G.I.E Le Bourget, France 50.10 – – Multistate LIHTC Holdings III Limited Partnership Wilmington, USA 100.00 – – MVSA COMPANY, INC. Jacksonville, USA 100.00 – – myTaxi Iberia SL Barcelona, Spain 100.00 – – N.V. Mercedes-Benz Aalst Erembodegem, Belgium 100.00 – – N.V. Mercedes-Benz Mechelen Mechelen, Belgium 100.00 – – NuCellSys GmbH Kirchheim unter Teck, Germany 100.00 – – P.T. Mercedes-Benz Distribution Indonesia Jakarta, Indonesia 100.00 – – P.T. Mercedes-Benz Indonesia Bogor, Indonesia 100.00 – – P.T. Star Engines Indonesia Bogor, Indonesia 100.00 – – PayCash Europe S.A. Luxembourg, Luxembourg 100.00 – – PayCash Labs AG Küsnacht, Switzerland 100.00 – – Renting del Pacífico S.A.C. Lima, Peru 100.00 – – Sandown Motor Holdings (Pty) Ltd Bryanston, South Africa 62.62 – – SelecTrucks of America LLC Portland, USA 100.00 – – SelecTrucks of Toronto, Inc. Mississauga, Canada 100.00 – – Setra of North America, Inc. Oriskany, USA 100.00 – – Silver Arrow China 2016-1 Auto Loan Asset Backed Beijing, China 0.00 – – 3 notes Trust c/o CITIC Trust Co., Ltd. Silver Arrow China 2016-2 Auto Loan Asset Backed Beijing, China 0.00 – – 3 notes Trust c/o CITIC Trust Co., Ltd. Silver Arrow S.A. Luxembourg, Luxembourg 0.00 – – 3 smart France S.A.S. Hambach, France 100.00 82 12 smart Vertriebs gmbh Berlin, Germany 100.00 – – 6 Special Lease Systems (SLS) B.V Eindhoven, Netherlands 100.00 – – Star Assembly SRL Sebes, Romania 100.00 159 13 Starexport Trading S.A. São Bernardo do Campo, Brazil 100.00 284 1 Sterling Truck Corporation Portland, USA 100.00 -627 -4 Sumperská správa majetku k.s. Prague, Czech Republic 100.00 – – Thomas Built Buses of Canada Limited Calgary, Canada 100.00 – – Thomas Built Buses, Inc. High Point, USA 100.00 126 59 Tróia Empreendimentos Imobiliários Ltda São Paulo, Brazil 100.00 – – Trona Cogeneration Corporation Wilmington, USA 100.00 – – 44 C | ANNUAL FINANCIAL STATEMENTS 2016 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 €
Ucafleet S.A.S Le Bourget, France 65.00 – – Western Star Trucks Sales, Inc Portland, USA 100.00 – – Zuidlease B.V. Sittard, Netherlands 51.00 – – 3218095 Nova Scotia Company Halifax, Canada 100.00 – –
II. Unconsolidated subsidiaries2 AEG Olympia Office GmbH Stuttgart, Germany 100.00 – – 6 Anota Fahrzeug Service- und Vertriebsgesellschaft mbH Berlin, Germany 100.00 – – 6 Brefa Bremsen- und Fahrzeugdienst AG (in Liquidation) Niederzier, Germany 100.00 – – 4 car2go Belgium SPRL Brussels, Belgium 100.00 – – car2go UK Ltd. Milton Keynes, 100.00 – – United Kingdom Circulo Cerrado S.A. de Ahorro para Fines Determinados Buenos Aires, Argentina 72.17 – – Croove GmbH Munich, Germany 100.00 – – 6 Cúspide GmbH Stuttgart, Germany 100.00 – – Daimler AG & Co. Anlagenverwaltung OHG Ludwigsfelde, Germany 100.00 – – 7 Daimler Ceská republika Holding s.r.o. Prague, Czech Republic 100.00 – – Daimler Commercial Vehicles Africa Ltd. Nairobi, Kenya 100.00 – – Daimler Commercial Vehicles MENA FZE Dubai, United Arab Emirates 100.00 – – Daimler Commercial Vehicles Thailand Ltd. Bangkok, Thailand 100.00 – – Daimler Compra y Manufactura Mexico Mexico City, Mexico 100.00 – – S. de R.L. de C.V. Daimler Culture Development Co., Ltd. Beijing, China 50.00 – – 3 Daimler Financial Services UK Trustees Ltd. Milton Keynes, 100.00 – – United Kingdom Daimler Gastronomie GmbH Esslingen am Neckar, Germany 100.00 – – 6 Daimler Group Services Berlin GmbH Berlin, Germany 100.00 – – 6 Daimler Group Services Madrid, S.A.U. San Sebastián de los Reyes, 100.00 – – Spain Daimler International Assignment Services USA, LLC Wilmington, USA 100.00 – – Daimler IT Retail GmbH Böblingen, Germany 100.00 – – 6 Daimler Mitarbeiter Wohnfinanz GmbH Stuttgart, Germany 100.00 – – 6 Daimler Protics GmbH Leinfelden-Echterdingen, 100.00 – – 6 Germany Daimler Purchasing Coordination Corp. Wilmington, USA 100.00 – – Daimler Starmark A/S Horsholm, Denmark 100.00 – – Daimler Trucks Asia Taiwan Ltd. Taipei, Taiwan 51.00 – – Daimler TSS GmbH Ulm, Germany 100.00 – – 6 Daimler UK Share Trustee Ltd. Milton Keynes, 100.00 – – United Kingdom Daimler UK Trustees Limited Milton Keynes, 100.00 – – United Kingdom Daimler Unterstützungskasse GmbH Stuttgart, Germany 100.00 1,181 -39 17, 15 Deméter Empreendimentos Imobiliários Ltda. São Paulo, Brazil 100.00 – – Deutsche Accumotive Verwaltungs-GmbH Kirchheim unter Teck, Germany 100.00 – – EvoBus Reunion S. A. Le Port, France 96.00 – – EvoBus Russland OOO Moscow, Russian Federation 100.00 – – Fünfte Vermögensverwaltungsgesellschaft Zeus mbH Stuttgart, Germany 100.00 – – Gemini-Tur Excursoes Passagens e Turismo Ltda. São Paulo, Brazil 100.00 – – Lapland Car Test Aktiebolag Arvidsjaur, Sweden 100.00 – – Legend Investments Ltd. Milton Keynes, 100.00 – – United Kingdom MB GTC GmbH Mercedes-Benz Gebrauchtteile Center Neuhausen auf den Fildern, 100.00 – – 6 Germany Mercedes-Benz AG & Co. Grundstücksvermietung Düsseldorf, Germany 100.00 – – 3, 7 Objekte Baden-Baden und Dresden OHG Mercedes-Benz Adm. Consorcios Ltda. São Bernardo do Campo, Brazil 100.00 – – Mercedes-Benz Cars Middle East FZE Dubai, United Arab Emirates 100.00 – – Mercedes-Benz Consulting GmbH Leinfelden-Echterdingen, 100.00 – – 6 Germany C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 45
Name of the Company Domicile, Country Capital Equity in Net income Footnote share in millions of € (loss) in %1 millions of €
Mercedes-Benz Customer Assistance Center Maastricht, Netherlands 100.00 – – Maastricht N.V. Mercedes-Benz Egypt S.A.E. New Cairo, Egypt 100.00 – – Mercedes-Benz Energy Americas LLC Wilmington, USA 100.00 – – Mercedes-Benz Energy GmbH Kamenz, Germany 100.00 – – 6 Mercedes-Benz G GmbH Raaba, Austria 100.00 – – Mercedes-Benz Group Services Phils., Inc. Cebu City, Philippines 100.00 – – Mercedes-Benz Hungária Kft. Budapest, Hungary 100.00 – – Mercedes-Benz Manufacturing Poland sp. z o.o. Warsaw, Poland 100.00 – – Mercedes-Benz Manufacturing Rus Ltd Veshki, Russian Federation 80.00 – – Mercedes-Benz Museum GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Parts Logistics Ibérica, S.L.U. Azuqueca de Henares, Spain 100.00 – – Mercedes-Benz Parts Logistics UK Limited Milton Keynes, 100.00 – – United Kingdom Mercedes-Benz Project Consult GmbH Stuttgart, Germany 100.00 – – 6 Mercedes-Benz Research & Development Tel Aviv Ltd. Tel-Aviv, Israel 100.00 – – Mercedes-Benz Research and Development Bangalore, India 100.00 56 18 13 India Private Limited Mercedes-Benz Slovakia s.r.o. Bratislava, Slovakia 100.00 – – Mercedes-Benz Solihull Ltd. Milton Keynes, 100.00 – – United Kingdom Mercedes-Benz Srbija i Crna Gora d.o.o. Novi Beograd, Serbia 100.00 – – Mercedes-Benz Trucks España S.L.U. Alcobendas, Spain 100.00 – – Mercedes-Benz Trucks UK Limited Milton Keynes, 100.00 – – United Kingdom Mercedes-Benz Vans España, S.L.U. Madrid, Spain 100.00 – – Mercedes-Benz Vans Mobility GmbH Berlin, Germany 100.00 – – 6 Mercedes-Benz Vans UK Limited Milton Keynes, 100.00 – – United Kingdom Mercedes-Benz Venezuela S.A. Valencia, Venezuela 100.00 – – MercedesService Card Beteiligungsgesellschaft mbH Kleinostheim, Germany 51.00 – – Mitsubishi Fuso Bus Manufacturing Co., Ltd. Toyama, Japan 100.00 – – Monarch Cars (Tamworth) Ltd. Milton Keynes, 100.00 – – United Kingdom Montajes y Estampaciones Metálicas, S.L. Esparraguera, Spain 51.00 – – mytapp Portugal Unipessoal LDA Lisbon, Portugal 100.00 – – mytaxi Austria GmbH Vienna, Austria 100.00 – – MYTAXI ITALIA S.R.L. Milan, Italy 100.00 – – MYTAXI POLSKA SPÓLKA Z OGRANICZONA Warsaw, Poland 100.00 – – ODPOWIEDZIALNOSCIA mytaxi Sweden AB Stockholm, Sweden 100.00 – – myTaxi Swiss GmbH Zurich, Switzerland 100.00 – – myTaxi UG Hamburg, Germany 100.00 – – myTaxi UK Ltd. London, United Kingdom 100.00 – – myTaxi USA Inc. New York, USA 100.00 – – NAG Nationale Automobil-Gesellschaft Stuttgart, Germany 100.00 – – Aktiengesellschaft ogotrac S.A.S. Paris, France 100.00 – – PABCO Co., Ltd. Ebina, Japan 100.00 – – Porcher & Meffert Grundstücksgesellschaft mbH & Co. Schönefeld, Germany 100.00 – – Stuttgart OHG PT Fuso Trucks Indonesia Jakarta, Indonesia 100.00 – – R.T.C. Management Company Limited Bicester, United Kingdom 88.89 – – Reva SAS Cunac, France 100.00 – – Ring Garage AG Chur Chur, Switzerland 100.00 – – Ruth Verwaltungsgesellschaft mbH Stuttgart, Germany 100.00 – – Sechste Vermögensverwaltungsgesellschaft Zeus mbH Stuttgart, Germany 100.00 – – SelecTrucks Comércio de Veículos Ltda Mauá, Brazil 100.00 – – Star Egypt For Import LLC New Cairo, Egypt 99.50 – – STAR TRANSMISSION SRL Cugir, Romania 100.00 – – 46 C | ANNUAL FINANCIAL STATEMENTS 2016 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 €
STARKOM d.o.o. Maribor, Slovenia 100.00 – – T.O.C. (Schweiz) AG Schlieren, Switzerland 51.00 – – Vermögensverwaltungsgesellschaft Daimler Atlanta mbH Stuttgart, Germany 100.00 – – Zweite Vermögensverwaltungsgesellschaft Zeus mbH Stuttgart, Germany 100.00 – – 6
III. Joint operations accounted for using proportionate consolidation Cooperation Manufacturing Plant Aguascalientes, Mexico City, Mexico 50.00 303 . 8 S.A.P.I de C.V.
IV. Joint operations accounted for using the equity method AFCC Automotive Fuel Cell Cooperation Corp. Burnaby, Canada 50.10 – – EM-motive GmbH Hildesheim, Germany 50.00 – – North America Fuel Systems Remanufacturing LLC Kentwood, USA 50.00 38 11 8
V. Joint ventures accounted for using the equity method Beijing Foton Daimler Automotive Co., Ltd Beijing, China 50.00 727 -69 11 Daimler Kamaz Trucks Holding GmbH Vienna, Austria 50.00 – – Enbase Power GmbH Munich, Germany 25.10 – – Fujian Benz Automotive Co., Ltd. Fuzhou, China 50.00 235 25 8 Polomex, S.A. de C.V. Garcia, Mexico 26.00 – – SelecTrucks of Atlanta LLC McDonough, USA 50.00 – – SelecTrucks of Houston LLC Houston, USA 50.00 – – SelecTrucks of Houston Wholesale LLC Houston, USA 50.00 – – SelecTrucks of Omaha LLC Council Bluffs, USA 50.00 – – Shenzhen DENZA New Energy Automotive Company Shenzhen, China 50.00 189 -82 11 Limited TASIAP GmbH Stuttgart, Germany 60.00 – – Toll Collect GbR Berlin, Germany 45.00 – – Toll Collect GmbH Berlin, Germany 45.00 700 138 14 Wagenplan B.V. Almere, Netherlands 50.00 – –
VI. Associated companies accounted for using the equity method BAIC Motor Corporation Ltd. Beijing, China 10.08 4,731 682 11 Beijing Benz Automotive Co., Ltd. Beijing, China 49.00 4,557 1,449 8 BlackLane GmbH Berlin, Germany 30.57 – – FlixMobility GmbH Munich, Germany 5.67 177 -31 FUSO LAND TRANSPORT & Co. Ltd. Kawasaki, Japan 21.67 – – KAMAZ PAO Naberezhnye Chelny, 15.00 463 -35 9 Russian Federation Kanagawa Mitsubishi Fuso Truck & Bus Sales Co., Ltd. Yokohama, Japan 43.83 – – MBtech Group GmbH & Co. KGaA Sindelfingen, Germany 35.00 46 17 11 MV Agusta Motor S.P.A. Varese, Italy 25.00 67 -23 12 Okayama Mitsubishi Fuso Truck & Bus Sales Co., Ltd. Okayamashi, Japan 50.00 – – P.T. Krama Yudha Tiga Berlian Motors Jakarta, Indonesia 18.00 – – P.T. Mitsubishi Krama Yudha Motors and Manufacturing Jakarta, Indonesia 32.28 – – There Holding B.V. Rijswijk, Netherlands 33.33 1,946 -57 16
VII. Joint operations, joint ventures and associated companies accounted for at (amortized) cost2 Abgaszentrum der Automobilindustrie GbR Weissach, Germany 25.00 – – 7 BDF IP Holdings Ltd. Burnaby, Canada 33.00 – – Beijing Mercedes-Benz Sales Service Co., Ltd. Beijing, China 51.00 – – COBUS Industries GmbH Wiesbaden, Germany 40.82 – – Esslinger Wohnungsbau GmbH Esslingen am Neckar, Germany 26.57 – – European Center for Information and Communication Berlin, Germany 20.00 – – Technologies – EICT GmbH EvoBus Hungária Kereskedelmi Kft. Budapest, Hungary 33.33 – – Gottapark, Inc. San Francisco, USA 18.09 – – Grundstücksgesellschaft Schlossplatz 1 mbH & Co. KG Berlin, Germany 18.37 – – H2 Mobility Deutschland GmbH & Co. KG Berlin, Germany 2.90 – – C | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | OTHER NOTES 47
Name of the Company Domicile, Country Capital Equity in Net income Footnote share in millions of € (loss) in %1 millions of €
INPRO Innovationsgesellschaft für fortgeschrittene Berlin, Germany 20.00 – – Produktionssysteme in der Fahrzeugindustrie mbH Juffali Industrial Products Company Jeddah, Saudi Arabia 0.00 – – 18 Laureus World Sports Awards Limited London, United Kingdom 50.00 – – MBtech Verwaltungs-GmbH Sindelfingen, Germany 35.00 – – Mercedes-Benz Starmark I/S Vejle, Denmark 50.00 – – MercedesService Card GmbH & Co. KG Kleinostheim, Germany 51.00 – – MFTB Taiwan Co., Ltd. Taipei, Taiwan 33.40 – – National Automobile Industry Company Ltd. Jeddah, Saudi Arabia 26.00 – – Omuta Unso Co., Ltd. Ohmuta, Japan 33.51 – – PDB - Partnership for Dummy Technology and Ingolstadt, Germany 20.00 – – 7 Biomechanics GbR smart-BRABUS GmbH Bottrop, Germany 50.00 – – STARCAM s.r.o. Most, Czech Republic 51.00 – – The Mobility House AG Zurich, Switzerland 13.99 – – tiramizoo GmbH Munich, Germany 18.46 – – Toyo Kotsu Co., Ltd. Sannoseki, Japan 28.20 – – UNION TANK Eckstein GmbH & Co. KG Kleinostheim, Germany 15.00 – – 1 Share pursuant to Section 16 of the German Stock Corporation Act (AktG) 2 As the impact of these companies is not material for the consolidated financial statements, they are not consolidated and not accounted for using the equity method. 3 Control due to economic circumstances 4 In liquidation 5 Net Income (loss) December 01, 2016 – December 31, 2016 6 Profit and loss transfer agreement with Daimler AG (direct or indirect) 7 Daimler AG is the personally liable partner Furthermore, Daimler AG is the personally liable partner for: MOST Cooperation GbR, Karlsruhe (Germany). 8 Financial statements according to IFRS 2016 9 Financial statements according to IFRS 2015 10 Preconsolidating company 11 Financial statements according to local GAAP 2015 12 Financial statements according to local GAAP 2014 13 Financial statements according to local GAAP 2016 14 Financial statements according to local GAAP September 1, 2015 – August 31, 2016 15 Financial statements according to local GAAP November 1, 2014 – October 31, 2015 16 IFRS amounts of the short business year July 29, 2015 - December 31, 2015 17 Control of the investment of the assets. No consolidation of the assets due to the contractual situation. 18 Joint control due to economic circumstances
48 D | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | BOARD OF MANAGEMENT
Board of Management
Stuttgart, February 10, 2017
Dieter Zetsche Wolfgang Bernhard
Renata Jungo Brüngger Ola Källenius
Wilfried Porth Britta Seeger
Hubertus Troska Bodo Uebber E | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | RESPONSIBILITY STATEMENT 49
Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of Daimler AG, and the management report, which has been combined with the Group management report, includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal opportunities and risks associated with the expected development of Daimler AG.
Stuttgart, February 10, 2017
Dieter Zetsche Wolfgang Bernhard
Renata Jungo Brüngger Ola Källenius
Wilfried Porth Britta Seeger
Hubertus Troska Bodo Uebber 50 F | ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | AUDITORS’ REPORT
Auditors’ Report
(Translation)
We have audited the annual financial statements, comprising Our audit has not led to any reservations. the balance sheet, the income statement and the notes to the financial statements, together with the bookkeeping system, In our opinion, based on the findings of our audit, the annual prepared by the Daimler AG, Stuttgart, and its report on the financial statements comply with the legal requirements position of the Company and the Group for the business year and give a true and fair view of the net assets, financial position from January 1 to December 31, 2016. The maintenance of and results of operations of Daimler AG in accordance with the books and records and the preparation of the annual financial German principles of proper accounting. The management report statements and management report in accordance with is consistent with the annual financial statements, complies German commercial law are the responsibility of the company’s with the German statutory requirements, and as a whole provides Board of Management. Our responsibility is to express an a suitable view of the Company’s position and suitably opinion on the annual financial statements, together with the presents the opportunities and risks of future development. bookkeeping system, and the management report based on our audit. Stuttgart, February 10, 2017
We conducted our audit of the annual financial statements in KPMG AG accordance with § 317 HGB [„Handelsgesetzbuch“: „German Wirtschaftsprüfungsgesellschaft Commercial Code“] and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and Becker Dr. Thümler results of operations in the annual financial statements in Wirtschaftsprüfer Wirtschaftsprüfer accordance with German principles of proper accounting and in the management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Company and expecta- tions as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the books and records, the annual financial statements and the management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles used and significant estimates made by the Board of Management, as well as evaluating the overall presentation of the annual financial statements and management report. We believe that our audit provides a reasonable basis for our opinion. ANNUAL FINANCIAL STATEMENTS 2016 OF DAIMLER AG | FORWARD-LOOKING STATEMENTS
Forward-looking statements:
This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a worsening of the sovereign-debt crisis in the euro zone; an increase in political tension in Eastern Europe; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, epidemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activi- ties; changes in currency exchange rates; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; dis- ruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective imple mentation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending official investigations and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk and Opportunity Report” in the current Annual Report. If any of these risks and uncertainties materializes or if the assump- tions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
Cover: The Mercedes-Benz Vision Van features numerous innovative solutions for parcel deliveries in urban and suburban settings. This forward-looking concept van is the world’s first van that digitally links all participants and processes in the delivery chain from start to finish – from the goods distribution center to the recipient. These documents represent the English translation of the It is also the first van with a fully automatic cargo area German “Jahresabschluss” which is the sole authoritative and integrated delivery drones. version. Annual Financial Statements 2016 Daimler AG
Daimler AG Mercedesstraße 137 70327 Stuttgart Germany www.daimler.com