Daimler Supervisory Board decides on further allocation to German pension fund

Dec 09, 2015, 11:36 ET from Daimler Corporate Communications

STUTTGART, Germany, Dec. 9, 2015 /PRNewswire/ -- 

  • Extraordinary pension contribution of €1.0 billion to German pension fund
  • The company continues to safeguard the employees' retirement provision while investing in its own future
  • Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: "Thanks to our employees' great efforts and commitment, our company is enduringly successful. It is therefore especially important to us to safeguard the long-term pension claims of the employees with the pension fund."

Today, the Supervisory Board of Daimler AG decided on an extraordinary contribution to the pension fund of €1.0 billion.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: "Thanks to our employees' great efforts and commitment, our company is enduringly successful. It is therefore especially important to us to safeguard the long-term pension claims of the employees with the pension fund. With this allocation to the German pension fund, we want to give them even more security for their future planning. At the same time, we are investing in the future and the sustained success of the company."

The allocation of €1.0 billion to the Daimler Group's pension fund will have positive effects on interest income and net profit in the coming years, but will have no impact on Group EBIT. The extraordinary pension allocation will reduce industrial net liquidity accordingly. At the end of the third quarter of 2015, industrial net liquidity amounted to €19.5 billion, which is €2.5 billion more than at the end of 2014.

Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Daimler Financial Services: "The renewed allocation to the pension fund leads to a significant increase in the funded status of our pension obligations. It strengthens the pension fund in order to safeguard future pension payments. We are thus also taking account of the ongoing low level of interest rates."

Including this allocation, the Group has paid more than €9.1 billion into its pension fund since the beginning of 2010; in 2014, the Supervisory Board approved an extraordinary allocation to the German pension fund of €2.5 billion. The sharp decrease in interest rates and thus also in discount rates since 2011 has led to a significant increase in pension obligations, reducing the positive effect of the payments into the pension fund. With the allocation now decided upon, the company is further safeguarding the pension claims of the employees with a pension fund invested in long-term assets. The funded status of the pension claims is now on a even higher level.

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, 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 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 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, 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  and fascinate. Daimler consequently invests in the development of alternative drive trains with the long-term goal of emission-free driving: from hybrid vehicles to electric vehicles powered by battery or fuel cell. Furthermore, the company follows a consistent path towards accident-free driving and intelligent connectivity all the way to autonomous driving. 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, as well as Mercedes-AMG and Mercedes-Maybach, the brands smart, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial Services' brands: Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial, moovel and car2go. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2014, the Group sold more than 2.5 million vehicles and employed a workforce of 279,972 people; revenue totalled €129.9 billion and EBIT amounted to €10.8 billion.

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SOURCE Daimler Corporate Communications