We launched our new corporate structure as planned on November 1, 2019. The most important facts at a glance.
The PROJECT FUTURE will strengthen corporate responsibility in the new companies and increase organizational and financial transparency. Further advantages of the new structure are more and more flexible possibilities for cooperation as well as a stronger allocation of responsibilities to the respective management.
In view of the importance of the two new companies in the Daimler Group - Mercedes-Benz AG and Daimler Truck AG - the Board of Management of Daimler AG has come to the conclusion that a (German) stock corporation - also taking into account the interests of the employees - is the appropriate legal form for the acquiring legal entities.
The two new divisional companies, Mercedes-Benz AG and Daimler Truck AG, will therefore also be German co-determined stock corporations.
Daimler AG as the holding company will form the parenthesis around the divisional companies - as a connecting element with overarching functions and services.
The central functions bundled in the future holding company will continue to provide Group-wide services that are geared to the needs of the divisional companies. These include IT infrastructure services, procurement of non-production material, Corporate security, facility management and financing services. Central bundling and standardization of services will preserve synergy effects for the entire Group.
On the other hand, governance functions that perform Group-wide tasks and serve the overall orientation of the Group remain within Daimler AG. These include Group Strategy, Corporate Audit, Taxes & Fiscal Matters, Legal, Compliance & Integrity, Communications, Group Accounting & Controlling. They ensure that we continue to act according to common rules and values in the future and that Daimler continues to act as a good corporate citizen.
Daimler share and capital market
We are convinced that the advantages of the new structure also have the potential to be reflected in the development of the share price.
With PROJECT FUTURE, we want to position Daimler for the new automotive age and exploit its growth and market potential to the best of our ability. To this end, we are creating a modern corporate structure that prepares us for new market and customer requirements. We are creating strong divisions with their own entrepreneurial responsibility, clear orientation and high value creation potential - combined with the clout of a global corporation.
In addition, the new structure increases transparency vis-à-vis the capital market and creates more trust for investors. In the new structure, we intend to break down the previous presentation of industrial business in the management report into Cars & Vans and Trucks & Buses.
Daimler also intends to use the new structure to increase its attractiveness on the capital market.
Each of the three divisions is wholly owned by Daimler AG. Therefore, there are no shares of the divisions in circulation that an investor could acquire. You can invest in shares of Daimler AG.
The stock exchange listing of Daimler AG will not change as a result of the realignment. Also, there will be no changes for Daimler’s shareholders. The shares of Daimler AG will persist.
There are no plans to change our attractive dividend policy.
Also in the future, we want to allow our shareholders to participate in the company's success while at the same time we wish to retain the flexibility to seize market opportunities as they arise.
With a dividend yield of more than 6 percent and a targeted distribution of 40 percent of the net profit attributable to the shareholders of Daimler AG, we are in the upper echelons of both original equipment manufacturers and DAX30 companies.
No. Daimler AG is the sole shareholder of Mercedes-Benz AG and Daimler Truck AG and exercises its ownership rights at the Annual General Meetings. This is already the case today at the Annual General Meeting of Daimler Mobility AG.
The Group's financing strategy remains unchanged. All financial liabilities will be raised by Daimler AG and its financing companies and will continue to be managed centrally by Treasury. All financial risks such as liquidity, exchange rate, investment and interest rate risks will continue to be managed centrally by Daimler AG. The pension assets of the German investment platform are also managed centrally. Both the funded status of pension obligations and the investment of pension assets for the Group as a whole are managed centrally.
Under the new Group structure, the Daimler Group continues to pursue the goal of a uniform presence on the credit markets. Therefore, there will be only one credit rating for the Group and no access to the bond markets for the individual divisions. This holistic financing approach ensures favorable credit terms for the entire Group.
Control and profit and loss transfer agreements exist between Daimler AG and the new stock corporations.
The new stock corporations are mainly financed internally, i.e. with the equity of the parent company (Daimler AG) and through inter-company loans.
The financing of our financial services business will not change, i.e. it will be financed through internal Group financing or through direct loans. These will be arranged and secured by the holding company (Daimler AG).
This means that for lenders and buyers of our corporate bonds the new structure will in principle not change anything: Daimler will continue to operate uniformly on the capital market and Daimler AG will continue to guarantee all external financial liabilities of our subsidiaries.
As German stock corporations, the new companies are generally obliged to prepare and publish annual financial statements and a management report. However, use is made of the possible exemption to prepare a management report and to publish the annual financial statements.
Nevertheless, we want to increase the transparency of the Daimler Group vis-à-vis the capital market. In the new presentation, we intend to break down the previous presentation of industrial business in the management report into the components Cars & Vans and Trucks & Buses.