New method of accounting for EADS shares at Daimler

             New method of accounting for EADS shares at Daimler

PR Newswire

STUTTGART, Germany, March 27, 2013

STUTTGART, Germany, March 27, 2013 /PRNewswire/ --

  oDaimler is withdrawing from current EADS shareholder pact as planned
  oTherefore end of "at equity"-method accounting and revaluation of EADS
  oOne-time positive EBIT effect of approximately €2,7 billion with no
    cash-flow effects
  oEarnings per share effect of plus €1.25 in 2013
  oCash-flow boost from future sale of EADS shares
  oBodo Uebber, Daimler CFO: "As a founding member, we have successfully
    supported EADS on its way to becoming the global market leader over a
    period of more than ten years. At the same time, we want to focus on our
    core business, so we intend to sell our remaining shares in EADS as we
    have previously announced."


The resolutions passed by today's extraordinary shareholders' meeting of EADS
will result in changes in the consolidated financial statements of Daimler AG
because the current shareholder pact, of which Daimler is a member, will be
terminated in the next few days. This means that Daimler will lose significant
influence over EADS, which is relevant for accounting, with the following
effects on the measurement of the shares in its books:

  oAs of the second quarter, Daimler's EADS shares will no longer be measured
    using the "at-equity method". They will be remeasured at their current,
    higher stock-market value.
  oThis remeasurement will increase the Group's second-quarter EBIT by
    approximately €2.7 billion. Of that total, about €1.35 billion is related
    to the approximately 7.5% EADS shares held by Daimler and about €1.35
    billion is related to the EADS shares held by the Dedalus consortium.
  oThe remeasurement of the approximately 7.5% of EADS shares (61.1 million
    shares) held by Daimler will increase Daimler's earnings per share (EPS)
    in 2013 by approximately €1.25.

The impact of the revaluation on EBIT is purely a book gain without any
effects on cash flows. The aforementioned EBIT and EPS effects are calculated
with an assumed EADS share price of €38. The finally relevant EADS share price
depends on the exact date when the current governance structure of EADS is

"As a founding member, we have successfully supported EADS on its way to
becoming the global market leader over a period of more than ten years. We
welcome the reorganization of the shareholder structure with a free float of
approximately 70 percent that has been decided upon today. Together with the
protective mechanism of restricted voting rights, this means that EADS is
ideally positioned for the future," stated Bodo Uebber, CFO of Daimler AG and
Chairman of the Administrative Board of EADS until last year.

"At the same time, we want to focus on our core business, so we intend to sell
our remaining shares in EADS as we have previously announced. No decision has
yet been made on exactly when the shares will be sold," continued Uebber.

The disposal of the remaining approximately 7,5% of EADS shares would have a
positive impact on the cash flow, as did the sale of EADS shares in 2012.

Table: Effects on key figures ^ 1 
Number of EADS shares                                122,225,136
Effect on EBIT ^ 1                                   plus €2,702 million
Income taxes                                         - €20 million
Effect on net profit ^ 1                             plus €2,682 million
 thereof attributable to non-controlling           €1,346 million
 therefore attributable to Daimler                 €1,336 million
Effect on earnings per share ^ 1                     plus €1.25
^1 calculated on the basis of an EADS share price of €38; in the case of a
disposal, transaction cost will have
 to be considered.

Further information from Daimler is available at: and

This document contains forward-looking statements that reflect our current
views about future events. The words "anticipate," "assume," "believe,"
"estimate," "expect," "intend," "may," "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;
a deterioration of our funding possibilities on the credit and financial
markets; events of force majeure including natural disasters, acts of
terrorism, political unrest, industrial accidents and their effects on our
sales, purchasing, production or financial services activities; changes in
currency exchange rates; a shift in consumer preference towards smaller, lower
margin vehicles; or a possible lack of acceptance of our products or services
which limits our ability to achieve prices as well as to adequately utilize
our production capacities; price increases in fuel or raw materials;
disruption of production due to shortages of materials, labor strikes, or
supplier insolvencies; a decline in resale prices of used vehicles; the
effective implementation of cost-reduction and efficiency-optimization
measures; the business outlook of 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 governmental 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 Report" in
Daimler's most recent Annual Report. If any of these risks and uncertainties
materialize, or if the assumptions underlying any of our forward-looking
statements prove incorrect, then our 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. Any
forward-looking statement speaks only as of the date on which it is made.

About Daimler
Daimler AG is one of the world's most successful automotive companies. With
its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler
Buses and Daimler Financial Services, the Daimler Group is one of the biggest
producers of premium cars and the world's biggest manufacturer of commercial
vehicles with a global reach. Daimler Financial Services provides financing,
leasing, fleet management, insurance and innovative mobility services. The
company's founders, Gottlieb Daimler and Carl Benz, made history with the
invention of the automobile in the year 1886. As a pioneer of automotive
engineering, Daimler continues to shape the future of mobility today: The
Group's focus is on innovative and green technologies as well as on safe and
superior automobiles that appeal to and fascinate its customers. For many
years now, Daimler has been investing continually in the development of
alternative drive systems with the goal of making emission-free driving
possible in the long term. So in addition to vehicles with hybrid drive,
Daimler now has the broadest range of locally emission-free electric vehicles
powered by batteries and fuel cells. This is just one example of how Daimler
willingly accepts the challenge of meeting its responsibility towards society
and the environment. Daimler sells its vehicles and services in nearly all the
countries of the world and has production facilities on five continents. Its
current brand portfolio includes, in addition to the world's most valuable
premium automotive brand, Mercedes-Benz, the brands smart, Freightliner,
Western Star, BharatBenz, Fuso, Setra and Thomas Built Buses. The company is
listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange
symbol DAI). In 2012, the Group sold 2.2 million vehicles and employed a
workforce of 275,000 people; revenue totaled €114.3 billion and EBIT amounted
to €8.6 billion.

SOURCE Daimler Corporate Communications

Contact: Florian Martens, +49 711 17-35014, or Han Tjan, +1 212 909-9063
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