New accounting standards lead to amended presentation of consolidated financial statements for Daimler AG

STUTTGART, Germany, March 27, 2018 /PRNewswire/ -- 

• Transition to accounting standards IFRS 9 and IFRS 15 in financial year 2018 leads to amended presentation of comparable prior-year EBIT and revenue at Group level.
• New standards require formal changes in the outlook for 2018 for Mercedes-Benz Cars and Daimler Buses.

As of financial year 2018, Daimler AG will adjust its financial reporting to comply with the new standards IFRS 9 and 15. The introduction of IFRS 15 effective January 1, 2018 results in changes to revenue recognition. Daimler measured its EBIT and revenue for financial year 2017 according to the previously valid accounting standards and presented those amounts in its 2017 consolidated financial statements. To improve comparability with the amounts to be reported for financial year 2018, Daimler AG will additionally present the prior-year figures that would have resulted from application of the new IFRS 15 at that time. The new standard IFRS 9 affects the recognition and measurement of financial instruments, which leads to minor adjustments to the presentation of the previously reported figures. The changes described also have an impact on Daimler's outlook for 2018.

Adjusting for the new standards results in Group revenue in 2017 of €164.2 billion (previously €164.3 billion) and Group EBIT in 2017 of €14.3 billion (previously €14.7 billion). The change leads to lower revenue and consequently to lower earnings of the divisional results of operations of Mercedes-Benz Cars, especially in the first quarter 2017. This is due to utilization of the legal simplification stating that certain contracts concluded before January 1, 2017 do not have to be reassessed according to the new IFRS 15 standard.

The adjusted prior-year figures result in formal changes to the Group's outlook for the year 2018. For each of Mercedes-Benz Cars and Daimler Buses, Daimler anticipates EBIT slightly above the prior-year level. The outlook for the other divisions' earnings remains unchanged.

Overview of adjusted key figures (in millions of euros)

Further information on the changeover to IFRS 15 can be found at: daimler.com/ir/IFRS15 

Further information from Daimler is available at:
www.media.daimler.com and www.daimler.com

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 deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; 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; 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 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 government investigations or of investigations requested by governments 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 assumptions 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.

Daimler at a Glance
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, financial investments, credit cards, 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, it is a motivation and commitment of Daimler to shape safely and sustainably the future of mobility: The Group's focus is on innovative and green technologies as well as on safe and superior automobiles that appeal and fascinate. Daimler consequently invests in the development of efficient drive trains with the long-term goal of locally emission-free driving: from high-tech combustion engines about hybrid vehicles to electric drive trains powered by battery or fuel cell. Furthermore, the company follows a consistent path towards intelligent connectivity of its vehicles, autonomous driving and new mobility concepts. 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 in Europe, North and South America, Asia, and Africa. Its current brand portfolio includes, in addition to the world's most valuable premium automotive brand, Mercedes-Benz (Source: Interbrand-Study „The Anatomy of Growth", 10/5/2016), as well as Mercedes-AMG, Mercedes-Maybach and Mercedes me, the brands smart, EQ, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial Services' brands: Mercedes-Benz Bank, Mercedes-Benz Financial Services, Daimler Truck Financial, moovel, car2go and mytaxi. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). With application of IFRS 15 and IFRS 9 in financial year 2017, Group revenue would have amounted to €164.2 billion and Group EBIT would have amounted to €14.3 billion. Before application of IFRS 15 and 9, Group revenue in 2017 amounted to €164.3 billion and Group EBIT amounted to €14.7 billion, as previously reported.

SOURCE Daimler North America - Corporate Communications