Mercedes-Benz Advertising Brief & Strategy

y archean state 2011. Key Figures Daimler convocation 2011 Amounts in billions of euros Revenue Western Europe so Germany NAFTA at that placeof unify States Asia thereof china sweet(prenominal) securities industrys Employees (celestial latitude 31) investment in property, intentt and equipment seek and using usance thereof great(p)ized Free cash flow of the industrial assembly line EBIT Value added Net make/ termination Earnings/loss per sh be (in ) Total dividend Dividend per cargon (in ) 106,540 39,387 19,753 26,026 22,222 22,643 11,093 18,484 271,370 4,158 5,634 1,460 989 8,755 3,726 6,029 5. 2 2,346 2. 20 97,761 38,478 19,281 23,582 20,216 19,659 9,094 16,042 260,100 3,653 4,849 1,373 5,432 7,274 2,773 4,674 4. 28 1,971 1. 85 78,924 36,458 18,788 19,380 16,569 12,435 4,349 10,651 256,407 2,423 4,181 1,285 2,706 -1,513 -4,644 -2,644 -2. 63 0 0. 00 2010 2009 11/10 % change +91 +2 +2 +10 +10 +15 +22 +15 +4 +14 +16 +6 -82 +20 +34 +29 +24 +19 +19 1 Ad reasonableed for the effects of currency translation, affix in revenue of 10%. Divisions 011 Amounts in millions of euros Mercedes-Benz Cars EBIT Revenue Return on gross gross gross gross gross revenue Investment in property, pose and equipment investigate and maturation expenditure thereof chapiterized unit of measurement sales Employees (celestial latitude 31) Daimler Trucks EBIT Revenue Return on sales Investment in property, plant and equipment Research and phylogeny expenditure thereof dandyized Unit sales Employees (December 31) Mercedes-Benz Vans EBIT Revenue Return on sales Investment in property, plant and equipment Research and development expenditure thereof capitalized Unit sales Employees (December 31) Daimler B recitations EBIT Revenue Return on sales Investment in property, plant and equipment Research and development expenditure thereof capitalized Unit sales Employees (December 31) Daimler fiscal operate EBIT Revenue New byplay Contract gaudiness Investment in p roperty, plant and equipment Employees (December 31) 1,312 12,080 33,521 71,730 21 7,065 162 4,418 3. 7% 103 225 32 39,741 17,495 835 9,179 9. 1% 109 358 126 264,193 14,889 1,876 28,751 6. 5% 1,201 1,321 251 425,756 77,295 5,192 57,410 9. 0% 2,724 3,733 1,051 1,381,416 99,091 2010 2009 11/10 % change 4,656 53,426 8. % 2,457 3,130 940 1,276,827 96,281 - five hundred 41,318 -1. 2% 1,618 2,696 913 1,093,905 93,572 +12 +7 . +11 +19 +12 +8 +3 1,332 24,024 5. 5% 1,003 1,282 373 355,263 71,706 -1,001 18,360 -5. 5% 597 1,116 368 259,328 70,699 +41 +20 . +20 +3 -33 +20 +8 451 7,812 5. 8% 91 267 29 224,224 14,557 26 6,215 0. 4% 113 193 0 165,576 15,226 +85 +17 . +20 +34 +334 +18 +2 215 4,558 4. 7% 95 223 31 39,118 17,134 183 4,238 4. 3% 78 212 5 32,482 17,188 -25 -3 . +8 +1 +3 +2 +2 831 12,788 29,267 63,725 12 6,742 9 11,996 25,066 58,350 14 6,800 +58 -6 +15 +13 +75 +5 Daimler Marken Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services k instantaneousl yledgeableness and Growth We invented the automobile and like a shot we ar passionately shaping its future. As self-propelled pioneers, we see it as both motivation and a duty to continue our tradition with innovational technologies and superior products. We do our precise best(p) for nodes who watch the best, and we live and roost a culture of operational excellence groundd on dual-lane values. Our integrated history features numerous innovations and pioneering achievements they argon the foundation and on leaving devotion for our claim to use upership in the auto motive manufacture. At the uniform time, our thoughts and actions are guided by the principle of sustainable mobility.With tailored products, we define to enter natural(a) markets and attract redundant groups of customers. Our goal is to lead our industry in call of unit sales, revenue and profitability and to do so in either the clientelees in which we are active. By means of lucrative growth, we want to create lasting added value for our region nameers, customers and employees, and for society in oecumenic. Dieter Zetsche Wolfgang Bernhard Christine HohmannDennhardt Wilfried Porth Andreas Renschler Bodo Uebber doubting Thomas Weber Contents This one- grade Report counselinges on the innovative products and serve with which we intend to utilize the growth opportunities offered cosmeawide while making a contri exclusivelyion to the mobility of the future.More details are brookd inside, e circumscribedly on pages 28-69. oecumenical study on Daimler and on the form 2011 base be found in the firstly section of the promulgate. The hosts pecuniary fix, liquidity and capital resources, and profitability are depict and analyzed in the centering Report. another(prenominal) sections provide information on our divisions, the topic of sustainability, unified formation and the coalesced monetary statements. 2 formbook Report 2011 Contents 1 To Our conducth olders (pages 4-27) 4 10 14 16 22 24 describe Events in 2011 chairpersons Letter The panel of focussing Report of the supervisory mature The supervisory hop on Daimler Shares Sustainability (pages 144-155) 146 148 152 154 Sustainability at Daimler Innovation, Safety and the Environment military personnel Resources Social Responsibility 6 embodied nerve (pages 156-175) 2 Innovation and Growth (pages 28-69) 30 36 40 46 52 58 62 66 Innovation on a Grand denture The New Compact Cars The Fascination of galvanic Mobility What Will Move Us Tomorrow? Global Success Made by Daimler Customer do by Worldwide The Future Is Our Element The Avant-garde of Future Mobility 158 161 167 169 175 Report of the scrutinize committal Remuneration Report legality and Compliance unified G overnance Report Declaration of Compliance with the German Corporate Governance codification merge Financial lines (pages 176-251) 178 179 merge Statement of Income Consolidated Statement of Comprehen sive Income/Loss Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Responsibility Statement Independent size upors Report 3 caution Report (pages 70-127) 72 86 98 105 108 111 112 113 121 Business and General Conditions Profitability Liquidity and Capital Resources Financial Position Daimler AG (Condensed reading material agreeing to HGB) Overall Assessment of the Economic Situation Events later the fetch up of the 2011 Financial stratum Risk Report Outlook 180 181 182 183 250 251 excess Information (pages 252-256) 252 254 255 256 Ten Year Summary Glossary Index humannesswide Re encounterative Offices Internet Information Addresses Daimler Worldwide Financial Calendar 2012 4 The Divisions (pages 128-143) 130 134 138 140 142 Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 3 1 To Our Shareholders beta Events in 2011 Important Events Gottlieb Daimler and Carl Benz invented the automobile in 1886. The course of instruction 2011 was therefore tag by the commemoration of the 125th anniversary of the auto mobile, which started on January 29 with the official celebrations at the Mercedes-Benz Museum. They were followed by various public events, including several form during the Automobile Summer in Stuttgart.Our employees en and soiastically celebrated the anniversary at numerous parties in the product plants and sales-and- serve up centers. Following in the footsteps of Gottlieb Daimler and Carl Benz, we exiting reinvent the automobile once more and again, thus shaping the future of mobility. And in jubilee family 2011, we created the right conditions for sustainable and profitable growth with a burst of rude(a) models and slightly substantial strategicalal decisions. 2011 Q1. 11 25th anniversary of the automobile. On January 29, 1886, Carl Benz changed the world. He appli ed to the Berlin Patent Office to register his vehicle with gas-engine actuation under patent number 37435.Daimler starts jubilee kindly class 2011 with official celebrations under the point 125 Years Inventor of the Automobile. Daimler and Toray found a joint venture. Toray Industries, Inc. and Daimler plan to jointly produce and market automobile partings do of railway carbon-fiber-reinforced plastics (CFRP). New C-Class coupe. The cardinal-door has its world premiere at the Geneva Motor Show in primaeval March 2011. It deliberately fundaments stark naked customers as intimately as lively ones, and allows a particularly sporty entry into the coupe world of MercedesBenz. The new coevals of the C-Class sedan and wagonen and the new SLK roadster are in addition presented in Geneva. instauration of the thought A-CLASS in Shanghai.At Auto Shanghai in April, Mercedes-Benz presents the C formerlypt A-CLASS to give an impression of the forthcoming new compact class. The balances of the Concept A-CLASS spend concentrated dynamism. The cars expressive lines and surfaces are a trace feature of the new Mercedes-Benz design. supervisory wag appoints Dr. Christine Hohmann-Dennhardt to the wag of prudence. Dr. Hohmann-Dennhardt takes charge of the impudently created calling card of Management area of Integrity and sanctioned Affairs. She is responsible for(p) for the Legal Department, the Compliance Organization and Corporate Data Protection. New hand truck vane for the Indian market. In India, Daimler Trucks presents BharatBenz, its fifth truck brand.BharatBenz is the solid ground for the launch of a new local truck generation, which is to be produced at the new plant in Chennai. Excellent first quarter of 2011. Daimler AG achieved wampum in the lead interest and taxes (EBIT) of 2. 0 billion in the first quarter of the twelvemonth (Q1 2010 1. 2 billion). This very positivistic cyberspace development reflects the on-going up(a) trend in nearly all divisions. 6 1 To Our Shareholders Important Events in 2011 Dividend of 1. 85 per fortune. At the Annual concussion in Berlin, the Daimler per centumholders ballot to pay a dividend for the category 2010 of 1. 85 per manage. The fare dividend dissemination thus amounts to round 2 billion. Daimler starts worldwide reason fairplay. Live values. Create value. This campaign directs the attention of employees and executives to the issues of integrity and compliance. The goal is to develop a regiond pinch among all Daimler employees of which behavior is right and which is wrong, as fountainhead as to win a corporate culture of trusting cooperation. F-CELL World Drive reaches Stuttgart. after traveling more than than 30,000 kilometers around the globe, trine MercedesBenz B-Class F-CELL cars with locally emission-free drive systems target the finishing line in front of the Mercedes-Benz Museum in Stuttgart in receivable time. During the F-CELL World Drive, Merc edes-Benz impressively demonst judge the qualities of its fuel-cell vehicles with determine to instruction execution and reliability.Presentation of new exerciseros. The heavy-duty Mercedes-Benz truck has been fundamentally redeveloped. The new Actros represents more than ten historic period of work, over 20 million test kilometers and more than 2 billion of investment in development and production technology. Strategic framework agreement with Chinese partner. Daimler AG and capital of Red China automotive Industry Corporation (BAIC) sign a strategic framework agreement. A check of approximately 2 billion is to be invested in the joint venture Beijing Benz Automotive Co. , Ltd. (BBAC). Record earnings in the jiffy quarter. Daimler achieves one of its best ever quarterly results in the second quarter of 2011. free radical EBIT amounts to 2. 6 billion. Q2. 11 7 Q3. 11 give voice venture between Daimler and Bosch. Daimler and Robert Bosch GmbH sign agreements on the establishm ent of a 5050 joint venture for electric car motors. The connection entrust exploit under the name of EM-motive GmbH and provide develop and produce innovative electric motors for electric vehicles. Daimler Financial Services starts operations in India. The pertly established subsidiary Daimler Financial Services India Pvt. Ltd. domiciled in Chennai offers customers and dealers a comprehensive avow of financing and insurance products. Contract pile of more than US$500 million is targeted by the year 2016.Acquisition of Tognum successfully concluded. Daimler AG and Rolls-Royce Holdings plc secure approximately 99% of Tognums partings. The crew of the three companies strengths and market access will allow Tognum to become a first class producer of engine systems. legion(predicate) Mercedes-Benz world premieres at the capital of Kentucky Motor Show. The revolutionary F125 research car allows a glimpse of the emission-free luxury sedans of the non-too-distant future. at t hat place are besides world premieres of the new B-Class, the Concept B-Class E-CELL PLUS and the SLS AMG roadster. In addition, Mercedes-Benz presents the new M-Class to the general public for the first time.Presentation of Mercedes-Benz 2020 growth schema. By the year 2020, we want to be the number one among the premium manufacturers in terms of products, brand, profitability and unit sales. We will develop the production capacities required for our growth so that they are close to our customers and our markets. First truck from Daimler and Kamaz. Daimler Trucks and Russian truck producer Kamaz present the prototype of a jointly developed truck with Daimler components. Daimler and Kamaz will escalate their collaboration in the future, especially on truck cabs. First new Citaro delivered. Trade experts see a great future for the completely rewrite best-selling Mercedes-Benz city bus.It sets benchmarks above all with its safety concept and its new design. Final approval for tru ck joint venture in principal(prenominal)land China. The Chinese Ministry of Commerce grants final approval for Beijing Foton Daimler Automotive Co. , Ltd. (BFDA). Daimler will hold a 50% interest in the joint venture and can thus participate in the growth of the Chinese market for mediocre and heavy trucks. 8 1 To Our Shareholders Important Events in 2011 First Sprinter produced in China. In addition to the Vito and Viano models, which take a crap been successfully produced and sold in China since 2010, the Mercedes-Benz Sprinter is now as well as rolling off the assembly lines at Fujian Daimler Automotive Co. Ltd. The Sprinter is the first premium product in the Chinese market for striking vans. Closer cooperation between Daimler and BAIC. Daimler and BAIC (Beijing Automotive convocation Co. , Ltd. ) agree to extend their big strategic partnership. The letter of intent states that both companies will assess yet possibilities for technological collaboration and for vehicl es with alternative drive systems. Daimler plans sale of EADS dowrys. Daimler and the German governance have agreed in principle that the KfW Bank Group will acquire 7. 5% of the portion outs in EADS from Daimler. The act is to take place in 2012. 50,000 customers at car2go. ar2go, the worlds first fully flexible car-rental service to operate on a per-minute basis, passes the milestone of one million rentals. At the same time, the 50,000th car2go customer worldwide is registered at the Hamburg car2go shop. New Actros is Truck of the Year 2012. Truck journalists from 24 European countries elect the new Actros, the flagship of the Mercedes-Benz fleet of commercial message vehicles, as the best truck of the year. With a total of eight titles, Mercedes-Benz is now the most successful brand in the competition for honors for technological progress. Presentation of heavy-duty Fuso truck with cr take of thorns drive. Fuso presents its first heavy-duty truck with hybrid drive at the T okyo Motor Show the Super expectant HEV.The first test carried reveal under real-life conditions show that fuel pulmonary tuberculosis has been improved by up to 10% compared with conventional trucks with diesel engines. Q4. 11 9 25 days of the automobile and excellent fiscal results 2011 stands for both at Daimler. And that pleases us all the more because we promised you a year ago that our jubilee year would be an other(a) successful year for your community. We kept our phrase with Group revenue of 106. 5 billion euros, EBIT of 8. 8 billion euros, which is rise up above the prior year, and net profit of 6. 0 billion euros. These arent just very respectable results they are among the best in our history. Our spend on net assets of 19. 9 percent was well above our target of eight percent. In short, we created value.And of course, our success will in addition benefit you The card of Management and the supervisory get along with will propose an maturation in the divid end to 2. 20 per share at the Annual Meeting. Now what were the key developments in our divisions? At Mercedes-Benz Cars, we set three records in 2011. Never before have we had fracture unit sales, revenue or EBIT. This was chiefly accomplished on the strength of our Mercedes-Benz brand and its ongoing invigoration through innovative products. Whether the M- or B-Class, the C coupe or the SLS AMG roadster, our new models are all very popular. At the same time, in 2011 we defined our long-term growth strategy Mercedes-Benz 2020. At its center is the extension of our ambition to lead With the sloshedest brand and the best products, we aim to be number one in premium-segment unit sales as well by the end of this decade at the latest. To that end, we compulsion to achieve sustainable, profitable growth and expand our activities close to our growing customer base. 2011 was also a very mature year for Daimler Trucks. Worldwide, we were able to increase unit sales and revenue by 20 pe rcent, and EBIT by more than 40 percent. In June, we introduced the new Mercedes-Benz Actros, our most crucial heavy-duty truck of this decade. It was promptly voted Truck of the Year. In trade union America, we advance strengthened our market leadership in the medium- and heavy-duty segment.And with Fuso in Asia, we increase our unit sales condescension the natural disaster in Japan. 10 1 To Our Shareholders leads Letter The jubilee year of the automobile was another(prenominal) successful year for Daimler. But we believe we can do even better. 11 Mercedes-Benz Vans post unit sales growth of about 18 percent give thanks primarily to the success of the new-generation Vito and Viano. Both models are now available in China, where we also started production of the Sprinter. At Daimler Buses, revenue and earnings decreased imputable to weaker market demand for complete buses. However, we clearly maintained the leading positioning in all our key markets.Exceptionally advanc ed news also comes from Daimler Financial Services, where three new records were set in 2011 for new business, contract volume and earnings. In addition, we expanded our range of services with the new Mobility Services business unit. Here we are offering innovative service packages with a focus on sustainable mobility. All of this contributed to an excellent performance in 2011. It is all the more remarkable wedded that general economic risks increased in the second half of the year receivable to the crisis in the euro zone. In 2012, we will continue to face headwinds in our European markets. However, from todays perspective, we expect worldwide economic growth of around 2. 5 percent. And global automotive demand is likely to grow even faster in the years ahead.We intend to participate in this growth and to an above-average extent. 2011 was a successful and important year. But we believe we can do operatively better in the medium and long term that also applies to our share pric e. We strive to light upon leadership in all our businesses. In doing so, we draw on the strengths of the Daimler Group as a full-line supplier of premium cars, trucks, vans, buses and services with Mercedes-Benz as our spunk brand in all divisions and as an innovation and technology leader. The combination of these Daimler strengths produces capableness that we intend to fully utilize in the coming years. Specifically, we have efined four strategic growth areas strengthening our core business in traditional markets, conquering new growth markets, extending our leadership in environmentally friendly technologies and in the field of safety, and developing and implementing new mobility concepts. 12 1 To Our Shareholders chairmans Letter In all of this, one social function remains clear A caller-ups success stands or falls with the skills and consignment of its custody. The employees of your company are doing a great production line for that they deserve the thanks of the hop on of Management. We will continue to systematically enkindle excellence in the future. One specific target is the development of first-class female and international talent. Integrity is another issue that is gaining importance and not just at Daimler. What does that mean in a corporate context?In brief, it means that view as a decent return and make returns decent are two sides of the same coin. Integrity is more than just formal compliance with laws and regulations. It is an ethical attitude, a sort of internal travail that keeps us on the right path even in hard business locatings. Many events of the past twelve months have confirmed once again that one of the most important currencies is trust whether its in business or politics, in public or hush-hush life. Ultimately, Daimler owes its uphold success to its trusted relationships with customers, business partners, employees and neighbors and of course with you, our shareholders.We would like to sincerely t hank you for your confidence in us. We will make every effort in 2012 to justify that confidence once again. Sincerely, Dieter Zetsche 13 The plug-in of Management Andreas Renschler 53 Daimler Trucks ordained until family 2013 Wolfgang Bernhard 51 Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans Appointed until February 2013 Christine Hohmann-Dennhardt 61 Integrity and Legal Affairs Appointed until February 2014 Bodo Uebber 52 Finance & Controlling, Daimler Financial Services Appointed until December 2014 Thomas Weber 57 Group Research & Mercedes-Benz Cars education Appointed until December 2013Wilfried Porth 53 Human Resources & Labor dealings conductor Appointed until April 2017 Dieter Zetsche 58 chair of the climb on of Management, Head of Mercedes-Benz Cars Appointed until December 2013 14 15 Report of the supervisory display panel good Shareholders, the supervisory table dealt in detail with the operational and strategic development of the Da imler Group in seven concussions during the 2011 fiscal year. In the year 2011, the supervisory control panel performed its tasks as laid d protest by applicable law, the Articles of incorporation and its rules of procedure, and continually advised and supervised the poster of Management with the management of the company.Following sleepless freshen ups and consultations, the supervisory mount up passed resolutions on numerous business matters for which its consent was required, much(prenominal) as investment and personnel planning, capital changes at companies of the Group, investments and divestments, refinement of production capacities in existing cooperations, and the conclusion of contracts of particular importance for the Group. In addition, the supervisory tabular array examined for example whether the risk root, the financial embraceing and the annual financial statements were in conformance with requirements. The panel of Management also conscious the supervi sory lineup about a wide number of proceeding not requiring the supervisory mount ups consent and the two be ons discussed those matters together, for example, the further development of strategic programs in the various divisions and the status of various cooperation projects.The supervisory board discussed the information and evaluations that were material for its decisions and suggestions together with the jury of Management. The supervisory Board showdowns were on a regular basis prepared in discover raillerys of the shares representing the employees and the members representing the shareholders with the members of the Board of Management. In each meeting of the supervisory Board, there was a so-called executive session, in which the members of the supervisory Board were able to discuss topics in the absence of the members of the Board of Management. No member of the supervisory Board att stop less than half of the meetings in the past financial year.The lead of the s upervisory Board was regularly intercommunicate by the Chairman of the Board of Management about all significant operating developments as well as personnel changes and meshs. Daimlers business activities go on to develop very successfully during the year 2011. Unit sales and revenues increased in almost all the automotive divisions, in some cases substantially. Earnings from ongoing operations were significantly higher than in 2010. The Mercedes-Benz Cars and Mercedes-Benz Vans divisions achieved their targeted rates of return already in the first half of 2011. The good business development generally continued in the second half of the year, although earnings were adversely affected by model changes, higher material be and transmute-rates movements.Daimler is currently making substantial investments, with support from the supervisory Board, in new technologies, new markets and new products, in order to strengthen the Groups competitive position for the future. A question of r elevance for the work of the supervisory Board throughout the year 2011 related to the possibility to plan further developments and their stability. The general economic outlook, and in particular the situation in the financial markets, was marked by significant risks and uncertainties. An additional factor in the first half of the year was the hardto-assess impact of the natural disaster in Japan. The Board of Management and the Supervisory Board also care-fully monitored the economic situation in China, one of the Groups key markets.In the euro zone, the high levels of state and public-sector debt became increasingly important as factors causing uncertainty and restricting growth. In general, the Supervisory Board assessed the development during 2011 in absolute terms as positive, and in view of the risk described above, was in agreement with the risk-aware approach of the Board of Management. The Supervisory Board dealt in detail with the development of Daimlers share price, and discussed at length with the Board of Management about its causes and marriage offers, as well as the expected impact on the share price of strategic projects. 16 1 To Our Shareholders Report of the Supervisory Board Dr. Manfred Bischoff, Chairman of the Supervisory Board.In addition to the usual key financial metrics, the Board of Management regularly informed the Supervisory Board about important topics such as the Groups profitability, especially in terms of return on rectitude, and its liquidity situation, the internal control and risk management system including compliance, the em embody of risk in the financial services business, the development of commodity prices, especially of raw materials, and the general economic situation in the main sales markets, in particular in view of developments in the financial markets. The Supervisory Board also dealt with safeguarding the Groups long-term profitability, fundamental questions of corporate planning including financial, investment, sales and human resources planning, developments in the companies of the Group, revenue developments and the situation of the Group, as well as the ongoing implementation of measures to secure pioneering and sustainable mobility for the future.The last mentioned was dealt with also considering current and future requirements under the heading of digital life, with special reference to the Groups products and services. The Supervisory Board was occupied with these topics going beyond the operating business in close communication with the Board of Management and especially intensively in a two-day strategy workshop, which this year focused in particular on conditions and development opportunities in China in order to properly reflect the special importance of the Chinese market. Cooperation between the Supervisory Board and the Board of Management. All the members of the Board of Management attended all the meetings of the Supervisory Board.In the meetings, there was an intensive and open exchange of positions and information concerning the position of the Group, business and financial developments, fundamental issues of corporate insurance and strategy, and development opportunities in important growth markets. Any deviations from the planning were explained in detail to the Supervisory Board by the Board of Management. The members of the Supervisory Board regularly prepared for upcoming resolutions on transactions requiring Supervisory Board consent on the basis of documentation provided in advance by the Board of Management. They were supported by the relevant committees, and discussed the actions and transactions upon which decisions were to be taken with the Board of Management.Furthermore, the Board of Management informed the Supervisory Board with the use of monthly give outs and quarterly risk reports about the most important performance figures and risks and submitted the interim reports to the Supervisory Board. The Supervisory Board w as kept fully informed of specific matters also between its meetings. As required in singular cases, following consultation with the Chairman of the Supervisory Board, the members were requested to pass resolutions in writing. In addition, the Chairman of the Board of Management informed the Chairman of the Supervisory Board in regular discussions about important developments and consulted with him on upcoming decisions. 17Topics discussed at the Supervisory Board meetings in the year 2011. In January 2011, the Supervisory Board dealt with equity-capital changes at subsidiaries of Daimler North America Corporation. In a meeting in February 2011, the Supervisory Board appointed Dr. Christine HohmannDennhardt, an ex-judge at Germanys federal official Constitutional Court, as a member of the Board of Management for the position of Integrity and Legal Affairs, which had been newly created by a resolution of September 2010. As of December 16, 2011, Bodo Uebber was reappointed as a membe r of the Board of Management with responsibility for Finance & Controlling and Daimler Financial Services.In the presence of the outside canvasors, the foregoing key figures of the annual company and amalgamate financial statements for 2010 and the dividend proposal to be do at the 2011 Annual Shareholders Meeting were discussed in the same meeting. The introductory key figures for the year 2010 were announced at the Annual Press group discussion on February 16, 2011. In another meeting held in February 2011, the Supervisory Board dealt with the annual company financial statements, the annual consolidated financial statements and the combine management report for Daimler AG and the Daimler Group, each of which had been issued with an unqualified visit opinion by the out-of-door auditors, as well as the reports of the analyse citizens committee and the Supervisory Board, the corporate governance report and the wage report and the proposal on the dissemination of distribu table profit.In preparation, the members of the Supervisory Board were provided with comprehensive documentation, some of it in draft form, including the Annual Report with the consolidated financial statements according to IFRS, the unite management report for Daimler AG and the Daimler Group, the corporate governance report and the remuneration report, the annual company financial statements of Daimler AG, the audit report of KPMG for the annual company financial statements of Daimler AG, for the consolidated financial statements and for the combine management report, the proposal of the Board of Management on the distribution of distributable profit, and the drafts of the reports of the Supervisory Board and of the study Committee. The Audit Committee and the Supervisory Board dealt with those documents in detail and discussed them intensively in the presence of the external auditors, who account on the results of their audit and were available to conclude supplementary quest ions and to provide additional information.Following the final results of the review by the Audit Committee and its own review, the Supervisory Board declared its agreement with the results of the audit by the external auditors, determined that no objections were to be raised(a), and canonic the financial statements and the combined management report as presented by the Board of Management. The company financial statements of Daimler AG for the year 2010 were thereby adopted. The Supervisory Board also consented to the proposal make by the Board of Management on the distribution of distributable profit and canonic the report of the Supervisory Board, the corporate governance report and the remuneration report in the current drafts.Furthermore, the Supervisory Board approved its proposed decisions on the items of the agendum for the 2011 Annual Shareholders Meeting. In addition, the Supervisory Board legitimate information on the status of antitrust investigations of European ma nufacturers of commercial vehicles by the EU Commission and approved an investment framework for the submission of a voluntary takeover bid for Tognum AG together with Rolls-Royce. Finally, the Supervisory Board dealt with topics of Board of Management remuneration and approved the external board positions and hobbyhorse business activities of the members of the Board of Management as presented in the meeting.Two Supervisory Board meetings were held in April. In the first of those two meetings, which was held straight after the Annual Shareholders Meeting, the Supervisory Board elected Dr. Manfred Bischoff as the Chairman of the Supervisory Board as previously announced in the election proposal made at the Annual Shareholders Meeting. Pursuant to the rules of procedure of the Supervisory Board, its Chairman also chairs the Mediation, nominating speech and presidential Committees. To replace the departing Dr. Manfred Schneider, Dr. Jurgen Hambrecht was elected to the Mediation Com mittee and to the presidential Committee. In the place of Dr. Manfred Schneider and Lynton R.Wilson, Dr. capital of Minnesota Achleitner and saree Baldauf were elected to the Nomination Committee. In addition, collectible(p) to the resolution by the Annual Shareholders Meeting amending the Articles of Incorporation with love to Supervisory Board remuneration, the Supervisory Board pertinacious to amend the evince of the declaration of compliance accordingly, subject to the amended Articles of Incorporation being entered in the Commercial Register. In the declaration of compliance, the explanation of the lack of a performancerelated component of remuneration includes an explanation of the remuneration paid to the Supervisory Board of Daimler AG. With the amendment o the Articles of Incorporation, the existing apportioning model was replaced with an additive model, in order to better reflect the generally increased requirements in particular with consideration of additional activ ities of Supervisory Board members in committees. In the second meeting in April 2011, the Supervisory Board dealt with the course of business and results of the first quarter, as well as with a status report on the situation in Japan, which had been updated since previously being dealt with in March 2011, in particular the situation of the Japanese companies of the Group and the local employees after the earthquake, tsunami and reactor accident. In addition, the Supervisory Board grant its consent to the closure of Treasury units in Belgium and to a capital increase for the car joint venture in China, Beijing Benz Automotive Co. , Ltd.In may, the Supervisory Board was informed about the stage of the Tognum transaction and the increase in the price offered. 18 1 To Our Shareholders Report of the Supervisory Board In addition to discussing the business development and results of the second quarter, in its meeting in July, the Supervisory Board granted its consent for capital cont ributions to the German pension plan, for the execution of equity-capital changes at the subsidiary Daimler Trucks North America, and for the expansion of production capacity for the truck joint venture with Foton, a Chinese truck producer. In the same meeting, the Supervisory Board also dealt with the new pension plan and the topics for the upcoming strategy workshop.Furthermore, it reappointed Wilfried Porth as a member of the Board of Management with responsibility for Human Resources and as Labor transaction Director effective as of May 1, 2012. During the two-day strategy workshop in September, as every year, the Supervisory Board first of all sure information on the stage of implementation of the strategic goals set in previous years by the Board of Management for Daimler AG and the divisions. Against the ground of the current economic situation, the Supervisory Board discussed the stage of implementation of projects initiated by the individual divisions, the positioning of the Group and its divisions with regard to the competition, and the brand and product strategies. opposite key areas of the strategy workshops were growth opportunities in the various markets with a focus on China, analyses of competitors, status reports on the various cooperations, the latest trends in customer behavior, also with regard to the future development of urban mobility and the use of modern media and social networks, the overall technology and market strategy for safeguarding sustainable mobility, the technological development of internal-combustion engines, electric, hybrid and hydrogen drive systems, specific requirements placed on such drive systems in important markets, in China for example, management capacities and other human resources issues, especially in specific growth markets, and other strategic topics. In December, the Supervisory Board dealt in detail on the basis of comprehensive documentation with the operational planning for the years 2012 a nd 2013. This included discussion of existing opportunities and risks and the Groups risk management. The Supervisory Board also decided on the financing limits for the year 2012 and dealt with a progress report on EADS and the planned sale of 7. 5% of the shares in EADS to the KfW banking group.former(a) matters discussed in the December meeting included corporate governance and Board of Management remuneration. Corporate governance. Although the German Corporate Governance Code was not amended in the period under review, the Supervisory Board was continually occupied with the standards of good corporate governance, including the green paper of the European Commission on that subject. An important precondition for effective cooperation in the Supervisory Board in the find of good corporate governance, in addition to the members prioritized specialist expertise, is their diversity to adequately reflect the Groups size and internationality in terms of nationality, gender, ethnic ori gin and experience.In connection with future proposals on aspects for election to the Supervisory Board, the Supervisory Board of Daimler AG pays attention to internationality and balance, especially with regard to gender, and sees this as a contribution to strengthening Daimlers claim to leadership in the automotive industry. With the election of Petraea Heynike, the Supervisory Board has achieved a proportion of 20% female members representing the shareholders, which is at least to be maintained and if executable increased in the coming years. The members of the Supervisory Board of Daimler AG are obliged to disclose potential conflicts of interest to the entire Supervisory Board and not to participate in discussing or ballot on topics which could lead to a conflict of interest. There were no indications of any such potential conflicts of interest in 2011.In its meeting in April, the Supervisory Board decided on an amendment to its rules of procedure. The Codes suggestion that the maximum possible appointment period of five years should not be the rule with first-time appointments to the Board of Management will be complied with in the future First-time appointments and only those will generally be made for three years only. In its December meeting, the Supervisory Board updated and amended the wording of the rules of procedure of the Supervisory Board and its committees, and approved the declaration of compliance with the German Corporate Governance Code pursuant to Section 161 of the German Stock Corporation Act (AktG).With the two exceptions explained in the declaration, all the good words of the Code have been complied with and continue to be complied with. 19 The Supervisory Board last arranged for an externally moderated efficiency review to be carried out during the year 2010, thus fulfilling the requirement to carry out a regular review of its efficiency in accordance with its own rules of procedure and the German Corporate Governance Code. The results of the efficiency review quest very good cooperation within the Supervisory Board and with the Board of Management. There was no indication of any need for fundamental action or changes. However, some suggestions were made, which will be put into practice.Corporate governance at Daimler is described in detail in the Corporate Governance Report on pages 169 ff and in the Remuneration Report on pages 161 ff of this Annual Report. Personnel changes in the Supervisory Board. After the end of the Annual Shareholders Meeting held on April 13, 2011, a member representing the shareholders, Dr. Manfred Schneider, stepped down from the Supervisory Board of Daimler AG. As proposed by the Supervisory Board, Petraea Heynike was newly elected as a member of the Supervisory Board repre senting the shareholders with effect as of the end of that Annual Shareholders Meeting. Dr. Manfred Bischoff and Lynton R. Wilson, whose periods of office also ended at the end of the Annual Shareholders M eeting, were reelected.The election proposal of the Supervisory Board to the Annual Shareholders Meeting was based on a recommendation made by the Nomination Committee and a corresponding resolution by the members of the Supervisory Board representing the shareholders. Personnel changes in the Board of Management. In a meeting in February 2011, as mentioned above, the Super visory Board appointed Dr. Christine HohmannDennhardt, an exjudge at the German Federal Constitutional Court, as a member of the Board of Management for the position of Integrity and Legal Affairs, which was newly created by resolution of September 2010, for a period of three years as of February 16, 2011. Bodo Uebber was reappointed as a member of the Board of Management responsible for Finance & Controlling and Daimler Financial Services for a further three years as of December 16, 2011.In the Supervisory Board meeting in July 2011, in line with the new regulation on periods of service for reappointments, Wilfr ied Porth was reappointed for another five years as a member of the Board of Management responsible for Human Resources and as Labor Relations Director as of May 1, 2012. Audit of the 2011 financial statements. The financial state ments of Daimler AG and the combined management report for the Company and the Group for 2011 were duly audited by KPMG AG, Wirtschaftsprufungsgesellschaft, Berlin, and were given an unqualified audit opinion. The same applies to the consolidated financial statements for 2011 prepared accord ing to IFRS, which were supplemented with additional notes.In the presence of the auditors in a meeting in early February 2012, the Supervisory Board discussed the prelim key figures of the annual company and consolidated financial statements for 2011 and the dividend proposal to be made at the 2012 Annual Shareholders Meeting. The preliminary key figures for the year 2011 were announced at the Annual Press company on February 9, 2012. In another meeting in late Febr uary 2012, the Supervisory Board dealt with the annual company financial statements, the annual consolidated financial statements and the combined management report for Daimler AG and the Daimler Group, each of which had been issued with an unqualified audit opinion by the external auditors, as well as the reports of the Audit Committee and the Supervisory Board, the corporate Report on the work of the committees The electric chairial Committee convened four times in 2011.It dealt primarily with corporate governance topics and ques tions of remuneration, as well as personnel matters of the Board of Management. As in previous years, compliance targets constituted part of the individual target agreements of the members of the Board of Management. The Audit Committee met seven times in 2011. Details of those meetings are provided in a separate report of this committee (see page 158 ff). The Nomination Committee convened twice in 2011. Among other matters, it prepared a recommendation for the Supervisory Boards proposal on a candidate for election to the Supervisory Board of Daimler AG representing the share holders.The proposal gave due consideration to stipulations regarding the structure, orientation and qualification profile of the members of the Supervisory Board representing the shareholders and to corporate governance requirements. As in previous years, the Mediation Committee, a body required by the provisions of the German Codetermination Act (MitbestG), had no affair to take any action in 2011. The chairmen of the committees informed the members of the Supervisory Board about the activities of the committees and their decisions, in each case in the Supervisory Board meeting following such decisions. 20 1 To Our Shareholders Report of the Supervisory Board governance report and the remuneration report, and the proposal on the distribution of distributable profit.In preparation, the members of the Supervisory Board were provided with comprehensive docu mentation, some of it in draft form, including the Annual Report with the consolidated financial statements according to IFRS, the combined management report for Daimler AG and the Daimler Group, the corporate governance report and the remuneration report, the annual company financial statements of Daimler AG, the audit report of KPMG for the annual company financial statements of Daimler AG, for the consolidated financial statements and for the combined management report, the proposal of the Board of Management on the distribution of distributable profit, and the drafts of the reports of the Supervisory Board and of the Audit Committee. The Audit Committee and the Supervisory Board dealt with those documents in detail and discussed them intensively in the presence of the external auditors, who reported on the results of their audit and were available to answer supplementary questions and to provide additional information.Following the final results of the review by the Audit Commit tee and its own review, the Supervisory Board declared its agreement with the results of the audit by the external auditors, determined that no objections were to be raised, and approved the financial statements and the combined management report as presented by the Board of Management. The company financial statements of Daimler AG for the year 2011 were thereby adopted. The Supervisory Board also consented to the proposal made by the Board of Management on the distribution of distributable profit and approved the report of the Supervisory Board, the corporate governance report and the remuneration report in their current drafts.Furthermore, the Supervisory Board approved its proposed decisions on the items of the agenda for the 2012 Annual Shareholders Meeting. Appreciation. The Supervisory Board thanks all of the employees and the management of the Daimler Group for their personal contributions to the successful year 2011. Special thanks are due to a longstanding member of the Su pervisory Board, Dr. Manfred Schneider, who stepped down in April after many years of close involvement and exceptional personal commitment to the Group. Stuttgart, February 2012 The Supervisory Board Dr. Manfred Bischoff Chairman 21 The Supervisory Board Dr. Manfred Bischoff Munich Chairman of the Supervisory Board of Daimler AG different supervisory board memberships/directorships Fraport AG Royal KPN N. V.SMS GmbH Chairman UniCredit S. p. A. Voith GmbH Chairman Erich Klemm* Sindelfingen Chairman of the General plant Council, Daimler Group and Daimler AG Deputy Chairman of the Supervisory Board of Daimler AG Dr. Paul Achleitner Munich Member of the Board of Management of Allianz SE Other supervisory board memberships/directorships Bayer AG RWE AG Allianz Investment Management SE Chairman Allianz Global Investors AG Sari Baldauf Helsinki agent Executive crime President and General Manager of the Networks Business Group of Nokia Corporation Other supervisory board memberships /directorships Hewlett-Packard Company F-Secure Corporation Fortum OYj Chairwoman Dr.Clemens Borsig Frankfurt am Main Chairman of the Supervisory Board of Deutsche Bank AG Other supervisory board memberships/directorships Linde AG Bayer AG Emerson Electric Co. Prof. Dr. Heinrich Flegel* Stuttgart Director Research Materials, Lightweight Design and Manufacturing, Daimler AG Chairman of the Management interpretive program Committee, Daimler Group Dr. Jurgen Hambrecht Ludwigshafen precedent Chairman of the Board of Executive Directors of BASF SE Other supervisory board memberships/directorships Deutsche Lufthansa AG Fuchs Petrolub AG Chairman Trumpf GmbH + Co. KG Petraea Heynike Vevey Former Executive ungodliness President of the Executive Board of Nestle S. A. since April 13, 2011) Other supervisory board memberships/directorships Schulich School of Business Jorg Hofmann* Stuttgart German Metalworkers Union (IG Metall), regulate Manager, Baden-Wurttemberg Other supervisory board memberships/directorships Robert Bosch GmbH Heidelberger Druckmaschinen AG Dr. Thomas Klebe* Frankfurt am Main General Counsel of the German Metalworkers Union (IG Metall) Other supervisory board memberships/directorships Daimler Luft- und Raumfahrt Holding AG ThyssenKrupp Materials International GmbH Gerard Kleisterlee Amsterdam Former President and CEO of Royal Philips Electronics N. V. Other supervisory board memberships/directorships Vodafone Group Plc. Chairman De Nederlandsche Bank N. V. Royal Dutch Shell Plc. Dell Inc.Jurgen Langer* Frankfurt am Main Chairman of the Works Council of the Frankfurt/Offenbach Dealership, Daimler AG 22 1 To Our Shareholders The Supervisory Board Ansgar Osseforth* Sindelfingen Manager Mercedes-Benz Research and Development Member of the Works Council, Sindelfingen Plant, Daimler AG until November 30, 2011 Valter Sanches* Sao Paulo Secretary of International Relations of Confederacao Nacional dos Metalurgicos/CUT Stefan Schwaab* Gaggenau valet udinarianism Chairman of the General Works Council, Daimler Group and Daimler AG Vice Chairman of the Works Council, Gaggenau Plant, Daimler AG Jorg Spies* Stuttgart Chairman of the Works Council, Headquarters, Daimler AG Lloyd G.Trotter Plainville Former Vice Chairman General Electric President & CEO of the General Electric Groups Industrial Division Managing Partner, Founder, GenNx360 Capital Partners Other supervisory board memberships/directorships PepsiCo Inc. Textron Inc. syncreon Holdings Ltd. syncreon. US Holdings Inc. syncreon. US Inc. Dr. h. c. Bernhard Walter Frankfurt am Main Former Spokesman of the Board of Management of Dresdner Bank AG Other supervisory board memberships/directorships Bilfinger Berger SE Chairman Deutsche Telekom AG Henkel AG & Co. KGaA Uwe Werner* Bremen Chairman of the Works Council, Bremen Plant, Daimler AG Lynton R. Wilson Toronto Chairman of the Board of CAE Inc. Chancellor of McMaster University Retired from the Supervisory Board Dr. Manfred S chneider Leverkusen Chairman of the Supervisory Board of Bayer AG (retired on April 13, 2011)Committees of the Supervisory Board Committee pursuant to Section 27 Subsection 3 of the German Codetermination Act (MitbestG) Dr. Manfred Bischoff Chairman Erich Klemm* Dr. Jurgen Hambrecht Dr. Thomas Klebe* Presidential Committee Dr. Manfred Bischoff Chairman Erich Klemm* Dr. Jurgen Hambrecht Dr. Thomas Klebe* Audit Committee Dr. h. c. Bernhard Walter Chairman Erich Klemm* Dr. Clemens Borsig Stefan Schwaab* Nomination Committee Dr. Manfred Bischoff Chairman Dr. Paul Achleitner Sari Baldauf * Representative of the employees 23 Daimler Shares The spread of the sovereign-debt crisis and growing uncertainty about ongoing economic developments caused high volatility in the capital markets. Daimlers share price take flight significantly during the year 2011.In view of a reiterate increase in net profit, the Board of Management and the Supervisory Board propose a higher dividend of 2. 20 pe r share (prior year 1. 85). 1. 01 Development of Daimlers share price and study indices End of 2011 End of 2010 11/10 % change -33 -15 -17 +6 -17 -24 Daimlers share price (in euros) DAX 30 Dow Jones Euro STOXX 50 Dow Jones Industrial Average Nikkei Dow Jones STOXX Auto Index 33. 92 5,898 2,317 12,218 8,455 259 50. 73 6,914 2,793 11,578 10,229 341 Turbulent year on global bourgeon markets. Stock markets continued their very volatile and disparate development in 2011. Against the backdrop of positive economic developments and encouraging company results, the upward trend of the previous year at first continued at the beginning of 2011.A number of veto factors such as the worsening debt crisis in the euro zone, the violent conflicts in North Africa and the Middle East, the natural disaster in Japan and growing fears of puffiness then led to sharp falls in share prices in March. However, following good quarterly results of companies in Europe and the United States, burgeon forth mar kets recovered quickly and reached their peaks for the year in May. After moving sideway for several months, share prices generally declined at the beginning of gilded due to the weaker economic outlook. The exacerbating financial crisis in Europe and the downgrading of the United States credit expenseiness raised market fears of a renewed recession during the autumn.As a result, the markets remained very volatile. The power of the most important stocks in the euro zone, the Dow Jones Euro STOXX 50, fell significantly, especially in the second half of 2011, and lost 17% over the full year. Germanys main index, the DAX, lost 15%. In the United States, the Dow Jones climbed by 6% over the year. The Nikkei index in Japan closed 2011 down 17% compared with a year earlier. Volatile development of Daimlers share price in 2011. Automotive stocks made a positive start to the year 2011. Our share profited at the beginning of the year from good unit sales in December and the encouraging dat a from the US truck market.Daimlers share price peaked for the year at 58. 46 on January 18. This was followed by a phase of consolidation. Growing uncertainty had a disproportionately strong impact on the price of cyclical stocks such as Daimlers. Nonetheless, our share price remained at the level it had reached at the end of 2010 until the end of July, despite negative factors such as the debt crisis in Europe, the natural disaster in Japan and the conflicts in North Africa and the Middle East. Share prices then fell significantly in August. This phase saw strong selling but only a weak propensity to buy. In that trading environment, economically sensitive automotive stocks suffered sharp losses.Although good unit sales were reported during the summer break, investors especially in the United States remained very risk loath(predicate) and reduced the proportion of what they regarded as risky 1. 02 In euros Net profit Key figures per share 2011 2010 11/10 % change +24 +24 +19 +9 -33 +7 -4 5. 32 5. 31 2. 20 38. 77 33. 92 58. 46 29. 16 4. 28 4. 28 1. 85 35. 62 50. 73 54. 87 30. 35 Net profit (diluted) Dividend Equity (December 31) Xetra share price at year end 1 Highest 1 concluding 1 1 Closing prices 24 1 To Our Shareholders Daimler Shares European stocks in their portfolios. But, benefiting from the positive development of the German stock market and the publication of good third-quarter results in line with market expectations, Daimlers share price climbed again significantly in October within a very volatile environment.The recurrent increase in uncertainty about a resolution of the euro crisis caused the stock markets and automotive stocks to fall again temporarily in November. During this phase, the price of Daimlers shares reached its low for the year of 29. 16 on November 23. After a brief recovery, our share price remained flat in December and closed the year at a price of 33. 92 on December 30. ? 1. 01 Our share thus fell by 33% over the full y ear, which is a weaker performance than the Dow Jones STOXX Auto Index (-24%) and the DAX (-15%). Daimlers market capitalization at the end of 2011 was 36. 2 billion. In the first several weeks of the year 2012, Daimlers share price climbed significantly. Dividend of 2. 20. ? 1. 2 The Board of Management and the Supervisory Board will propose to the Annual Shareholders Meeting to be held on April 4, 2012 that in view of the good business development the dividend should be increased from 1. 85 to 2. 20 per share. The total dividend payout will thus amount to 2,346 million (prior year 1,971 million). Broad shareholder structure. ? 1. 07 Daimler continues to have a broad shareholder base of approximately 1. 0 million shareholders. The number of shareholders remained stable compared with 2010, so there was no continuation of the trend of falling shareholder numbers that occurred in previous years. There was a steadily growing demand for our shares from private investors during the secon d half of 2011, mainly in Germany. Kuwait Investment place holds 6. 9% of Daimlers shares and the Renault-Nissan Alliance holds 3. 1%.Aabar Investments PJS, Abu Dhabi (Aabar), notified us in October 2011 that its Daimler voting rights had fallen below the notification threshold of 5% and amounted to 4. 99998% at that time. This was caused by a slight increase in Daimlers share capital due to the exercise of stock options. In February 2012, Aabar notified us that the number of Daimler shares it physically owned had decreased to approximately 32. 7 million, equivalent to a shareholding of 3. 07%. In connection with the respective shareholding notifications, Aabar also informed us that it has the right to redelivery of the disparity between the approximately 32. 7 million shares it physically owns and the 96. 4 million shares it originally acquired. In connection with its shareholding, Aabar entered into a series of financing transactions.As of 1 February 2012, the new rules pursuant to the German Securities Trading Act (WpHG) require separate incremental disclosures of certain elements of these transactions, which lead to double-counting with respect to parts of Aabars total shareholding. Together with shares lent to third parties in connection with financing transactions for which Aabar has a right of redelivery, Aabar still holds 9. 04%. BlackRock Inc. , New York, informed us in August 2011 that it had exceeded the 5% notification threshold as defined by Germanys Securities Trading Act (WpHG) and that its Daimler voting rights amounted to 5. 7% as of August 11, 2011. Capital Research and Management Company of Los Angeles, which notified us in May 2010 that it held 3. 1% of our shares, is still above the 3% notification threshold stipulated by the WpHG.The treasury shares held by Daimler at the end of 2010 (approximately 0. 2 million shares worth about 7 million) were used during the year under review to make full the claims of former AEG shareholders from a rbitration proceedings. In total, institutional investors hold 67% of our share capital and private investors hold 20%. Approximately 69% of our equity are in the hands of European investors and approximately 19% are held by US investors. ? 1. 08 1. 03 In euros 65 60 55 50 45 40 35 30 25 20 Daimler share price (high/low), 2011 1/11 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1. 04 140 130 cxx 110 100 90 80 70 60 50 Share price index 2/31/10 2/28/11 4/29/11 6/30/11 8/31/11 10/31/11 12/31/11 Daimler AG Dow Jones STOXX Auto Index DAX 25 1. 05 Key figures End of 2011 End of 2010 11/10 % change Share capital (in millions of euros) bod of shares (in millions) thereof treasury shares Market capitalization (in billions) )of euros) Number of shareholders (in millions) Weighting in share index DAX 30 Dow Jones Euro STOXX 50 long credit ratings Standard & Poors Moodys foulmart DBRS 3,060 1,066. 3 0 36. 2 1. 0 3,058 1,065. 6 0. 2 54. 0 1. 0 +0 +0 -100 -33 0 The weight of Daim ler shares in major indices decreased during 2011 due to the negative development of our share price.In the German DAX 30 index, our stock was ranked in seventh position with a weighting of 5. 93% at the end of the year (end of 2010 7. 51%). ? 1. 05 In the Dow Jones Euro STOXX 50, Daimler shares were represented with a weighting of 2. 26% (end of 2010 2. 88%). Daimler shares are listed in Frankfurt and Stuttgart. Stock-exchange trading in Germany in the year 2011 amounted to 1,728 million shares (2010 1,492 million). In addition, Daimler shares are increasingly traded on multilateral trading platforms and in the over-thecounter market. Substantially increased participation in employee share program. In March 2011, eligible members of the workforce were once again able to acquire employee shares.A price incentive that was granted for the first time and bonus shares helped to increase the number of participants to 32,200 employees, who acquired a total of 610,300 shares (2010 19,400 employees acquired 350,700 shares). Annual Shareholders Meeting approves managements proposals with large majorities. Our Annual Shareholders Meeting held on April 13, 2011 at the Berlin International Congress Center (ICC) was attended by approximately 5,100 shareholders (2010 4,700). With 43. 3% of the share capital represented at the Annual Meeting, shareholder representation (attendance plus absentee votes) was higher than in the prior year (40. 3%). In the voting on the items of the agenda, the shareholders adopted the recommendations of the management with large majorities.The shareholders