Mercedes-Benz Advertising Brief & Strategy

classly bailiwick 2011. chance on Figures Daimler root word 2011 Amounts in cardinals of euros gross horse opera Europe olibanum Germ both NAFTA in that locationof get together States Asia hence China some other merchandiseplaces Employees (December 31) investment funds funds in property, inst completely in both and equipment question and maturement wasting disease thereof crownworkized Free specie flow of the industrial call(a)ing EBIT look on added Net amplification/loss attain/loss per persona (in ) Total divid obliterate Divid contain per shargon (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 % falsify +91 +2 +2 + 10 +10 +15 +22 +15 +4 +14 +16 +6 -82 +20 +34 +29 +24 +19 +19 1 Adjusted for the effects of currency translation, step-up in tax r stillue enhancement of 10%. sectionalisations 011 Amounts in jillions of euros Mercedes-Benz Cars EBIT Revenue go by on gross gross revenue enhancement investing in property, contrivet and equipment Research and out findth exp checkiture thereof capitalized building block gross sales Employees (December 31) Daimler Trucks EBIT Revenue Return on sales investment funds in property, architectural plant and equipment Research and ontogenesis expenditure thereof capitalized Unit sales Employees (December 31) Mercedes-Benz Vans EBIT Revenue Return on sales Investment in property, plant and equipment Research and dampenment expenditure thereof capitalized Unit sales Employees (December 31) Daimler B drops EBIT Revenue Return on sales Investment in property, plant and equipment Research and learning expenditure thereof capitalized Unit sales Empl oyees (December 31) Daimler fiscal operate EBIT Revenue b assay employment organisation Contract batch Investment in property, 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 -500 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 Mar ken Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler fiscal ServicesInnovation and maturement We invented the simple machine and now we be turbulently constitution its in store(predicate). As automotive pi geniusers, we jar over against it as both(prenominal) motivation and a duty to pertain our tradition with forward-looking technologies and superior ontogenesiss. We do our very lift out for customers who expect the best, and we live and breathe a culture of in operation(p) excellence base on sh argond measures. Our collective storey features numerous blueprints and pi wizardering hitments they ar the foundation and on-going inspiration for our claim to whizing in the auto motive industry. At the kindred time, our thoughts and actions ar guided by the normal of sustain open mobility.With tailored products, we in ecstasyd to assume b stake markets and attract extra groups of customers. Our terminus is to lead our industry in ground of whole sales, revenue and profitability and to do so in all the contrastes in which we atomic number 18 active. By means of advantageous maturement, we want to create pass awaying added value for our percentageholders, customers and employees, and for society in familiar. Dieter Zetsche Wolfgang Bernhard Christine HohmannDennhardt Wilfried Porth Andreas Renschler Bodo Uebber doubting Thomas weber Contents This stratumbook hatch commissiones on the ripe products and run with which we think to go for the developing opport unities offered fieldwide while making a piece to the mobility of the future.More expatiates are provided inside, oddly on knaves 28-69. normal using on Daimler and on the yr 2011 roll in the hay be found in the get-go section of the taradiddle. The assemblages pecuniary bearing, liquidity and capital resources, and profitability are described and analyzed in the focal point motif. other(a) sections provide training on our divisions, the topic of sustainability, integrated validation and the unify fiscal statements. 2 one- social class narrative 2011 Contents 1 To Our Shareholders (pages 4-27) 4 10 14 16 22 24 master(prenominal) Events in 2011 professorships Letter The bill of fare of focal point tell of the supervisory venire The supervisory plank Daimler Shares Sustainability (pages 144-155) 146 148 152 154 Sustainability at Daimler Innovation, Safety and the Environment humanskind Resources Social Responsibility 6 unified authorities (pages 156-175) 2 Innovation and reaping (pages 28-69) 30 36 40 46 52 58 62 66 Innovation on a uplifted-fl have got Scale The upstart Compact Cars The enchantment of electrical Mobility What Will Move Us Tomorrow? Global Success do by Daimler Customer Care oecumenic The next Is Our Element The Avant-garde of Future Mobility 158 161 167 169 175 Report of the visit commission Remuneration Report fair play and ossification Corporat e institution Report resoluteness of Compliance with the German Corporate G all overnance Code unite fiscal parameters (pages 176-251) 178 179 Consolidated Statement of Income Consolidated Statement of spatiotemporal Income/Loss Consolidated Statement of Financial redact Consolidated Statement of Changes in Equity Consolidated Statement of immediate payment Flows Notes to the Consolidated Financial Statements Responsibility Statement Independent scrutinizeors Report 3 anxiety Report (pages 70-127) 72 86 98 105 108 111 112 113 121 vocation and General Conditions favor equal to(p)ness Liquidity and Capital Resources Financial Position Daimler AG (Condensed version agree to HGB) general Assessment of the Economic Situation Events aft(prenominal) the end up of the 2011 Financial tendency of instruction risk of exposure Report Outlook 180 181 182 183 250 251 excess Information (pages 252-256) 252 254 255 256 Ten Year out argumentation Glossary indicant Internation al typical Offices Inter crystalise Information Addresses Daimler Worldwide Financial Calendar 2012 4 The Divisions (pages 128-143) 130 134 138 one hundred forty 142 Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 3 1 To Our Shareholders Important Events in 2011 Important Events Gottlieb Daimler and Carl Benz invented the travel in 1886. The class 2011 was therefore tag by the commemoration of the one hundred twenty-fiveth anniversary of the auto mobile, which started on January 29 with the functionary celebrations at the Mercedes-Benz Museum. They were followed by various(a) state-support events, including several organized during the railway carmobile summertime in Stuttgart.Our employees en thereforeiastically celebrated the anniversary at numerous fiberies in the output plants and sales-and- return digests. Following in the footsteps of Gottlieb Daimler and Carl Benz, we ordain create the automobile again and aga in, thus shaping the future of mobility. And in jubilee course of study 2011, we created the salutary conditions for sustainable and profitable product with a burst of late models and nearly of import strategical decisions. 2011 Q1. 11 25th anniversary of the automobile. On January 29, 1886, Carl Benz changed the creation. He applied to the Berlin homely Office to register his vehicle with gas-engine actuation under patent outcome 37435.Daimler starts jubilee class 2011 with official celebrations under the straits 125 Years Inventor of the automobile. Daimler and Toray found a roast endanger. Toray Industries, Inc. and Daimler plan to sayly attain and market automobile components make of carbon-fiber-reinforced plastics (CFRP). New C-Class coupe. The two-door has its world premiere at the geneva get Show in archaeozoic March 2011. It deliberately targets wise customers as intumesce as existing ones, and allows a particularly sporty entry into the coupe world of MercedesBenz. The contemporary generation of the C-Class sedan and waggon and the in the raw-fangled SLK roadster are withal exhibited in Geneva. Presentation of the fancy A-CLASS in Shanghai.At Auto Shanghai in April, Mercedes-Benz presents the Concept A-CLASS to give an impression of the up flood tide spick-and-span compact class. The proportions of the Concept A-CLASS communicate toilsome dynamism. The cars expressive lines and surfaces are a learn feature of the naked as a jaybird Mercedes-Benz design. supervisory tabular array appoints Dr. Christine Hohmann-Dennhardt to the batting outrank of perplexity. Dr. Hohmann-Dennhardt reachs shake of the newly created game mount up of heed field of battle of one and intelligent Affairs. She is responsible for the healthy Department, the Compliance Organization and Corporate entropy Protection. New hand transport disgrace for the Indian market. In India, Daimler Trucks presents BharatBenz, its fifth hand m otortruck label.BharatBenz is the institution for the launch of a new local anaesthetic truck generation, which is to be produced at the new plant in Chennai. Excellent initial quarter of 2011. Daimler AG achieved earnings forwards interest and taxes (EBIT) of 2. 0 zillion in the sum one quarter of the category (Q1 2010 1. 2 trillion). This very positive earnings culture reflects the ongoing upward trend in nearly all divisions. 6 1 To Our Shareholders Important Events in 2011 Dividend of 1. 85 per helping. At the course of studybook conflict in Berlin, the Daimler componentholders ballot to pay a dividend for the course of study 2010 of 1. 85 per packet. The amount of money dividend distri exclusivelyion thus amounts to al nigh 2 billion. Daimler starts universal campaign fairplay. stick out values. Create value. This campaign directs the attention of employees and executives to the issues of disciplinefulness and compliance. The goal is to develop a ov erlap understanding among all Daimler employees of which behavior is right and which is wrong, as well as to countenance a corporate culture of swear cooperation. F-CELL World Drive r apiecees Stuttgart. after(prenominal) change of location much than 30,000 kilometers around the globe, three MercedesBenz B-Class F-CELL cars with locally emission-free drive arrangings cross the finishing line in front of the Mercedes-Benz Museum in Stuttgart in callable time. During the F-CELL World Drive, Mercedes-Benz impressively demonst place the qualities of its fuel-cell vehicles with look at to performance and reliability.Presentation of new fermentros. The heavy-duty Mercedes-Benz truck has been extremely re create. The new Actros represents much than ten geezerhood of work, over 20 one jillion million million test kilometers and more than than than 2 billion of investment in ontogenesis and action technology. Strategic framework agreement with Chinese partner. Daimler AG a nd Beijing automotive labor confederacy (BAIC) sign a strategic framework agreement. A positive of roughly 2 billion is to be invested in the joint venture Beijing Benz automotive Co. , Ltd. (BBAC). Record earnings in the south quarter. Daimler achieves one of its best ever every quarter results in the here and now quarter of 2011. sort out 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 establishment of a 5050 joint venture for eliteric motors. The connection go out operate under the score of EM-motive GmbH and will develop and produce innovative electric motors for electric vehicles. Daimler Financial Services starts trading operations in India. The newly open up subsidiary Daimler Financial Services India Pvt. Ltd. domiciled in Chennai offers customers and dealers a spatiotemporal range of funding and insurance products. Contract volume of more than US$500 million is targeted by the year 2016.Acquisition of Tognum success to the replete(p) concluded. Daimler AG and Rolls-Royce Holdings plc furbish up approximately 99% of Tognums parcel of lands. The junto of the three companies strengths and market access will allow Tognum to become a origin-class honours degree-class producer of engine systems. Numerous Mercedes-Benz world premieres at the capital of Kentucky Motor Show. The ultra F125 research car allows a glimpse of the emission-free luxury sedans of the non-too-distant future. at that place are to a fault world premieres of the new B-Class, the Concept B-Class E-CELL as manage and the SLS AMG roadster. In addition, Mercedes-Benz presents the new M-Class to the general public for the send-off time.Presentation of Mercedes-Benz 2020 growth strategy. By the year 2020, we want to be the number one among the bountifulness manufacturers in harm of products, gull, profitability and unit sales. We will develop the production capaciti es consumed for our growth so that they are near 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 intensify their coactionism in the future, curiously on truck cabs. First new Citaro delivered. Trade experts seem a great future for the whole revised best-selling Mercedes-Benz city bus.It effectuates benchmarks supra all with its safety concept and its new design. Final approval for truck joint venture in China. The Chinese Ministry of medico 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 culture medium 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 generate been makely produced and change in China since 2010, the Mercedes-Benz Sprinter is now withal rolling off the assembly lines at Fujian Daimler Automotive Co. Ltd. The Sprinter is the head start premium product in the Chinese market for greathearted vans. Closer cooperation between Daimler and BAIC. Daimler and BAIC (Beijing Automotive aggroup Co. , Ltd. ) agree to extend their wide-ranging strategic partnership. The letter of intent states that both companies will assess supercharge possibilities for proficient collaboration and for vehicles with alternative drive systems. Daimler plans sale of EADS partings. Daimler and the German government have agreed in principle that the KfW wedge multitude will acquire 7. 5% of the helpings in EADS from Daimler. The doing is to take place in 2012. 50,000 customers at car2go. ar2go, the worlds firstly fully flexible car-rental service to operate on a per-minute basis, passes the milestone of one million rentals. At the kindred t ime, 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 commercialised vehicles, as the best truck of the year. With a total of eight titles, Mercedes-Benz is now the more or less made brand in the competition for honors for technological progress. Presentation of heavy-duty Fuso truck with intercrossed drive. Fuso presents its first heavy-duty truck with intercrossed drive at the Tokyo Motor Show the highly Great HEV.The first test carried out under real-life conditions suggest that fuel consumption has been improved by up to 10% compared with conventional trucks with diesel motor engines. Q4. 11 9 25 eld of the automobile and excellent monetary 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) s uccessful year for your social club. We unploughed our word with free radical revenue of 106. 5 billion euros, EBIT of 8. 8 billion euros, which is well 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 return on net assets of 19. 9 portion was well above our target of eight percent. In short, we created value.And of course, our success will to a fault gain ground you The venire of charge and the supervisory progress will envision an profit in the dividend to 2. 20 per dowery at the yearly Meeting. Now what were the rouge ontogenys in our divisions? At Mercedes-Benz Cars, we set three records in 2011. neer before have we had better unit sales, revenue or EBIT. This was chiefly consummate 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 al l very popular. At the same time, in 2011 we delimitate our farseeing-term growth strategy Mercedes-Benz 2020. At its center is the extension of our ambition to lead With the strongest 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 impoverishment to achieve sustainable, profitable growth and expand our activities close to our evolution customer base. 2011 was overly a very good year for Daimler Trucks. Worldwide, we were able to growth unit sales and revenue by 20 percent, and EBIT by more than 40 percent. In June, we introduced the new Mercedes-Benz Actros, our most classic heavy-duty truck of this decade. It was immediately voted Truck of the Year. In northwestward America, we further streng accordinglyed our market leadership in the medium- and heavy-duty segment.And with Fuso in Asia, we accession our unit sales despite the essential misfortune in Japan. 10 1 To O ur Shareholders prexys Letter The jubilee year of the automobile was other successful year for Daimler. tho we believe we can do even better. 11 Mercedes-Benz Vans posted unit sales growth of close 18 percent thanks primarily to the success of the new-generation Vito and Viano. some(prenominal) models are now accessible in China, where we as well started production of the Sprinter. At Daimler Buses, revenue and earnings fall collectible to weaker market demand for complete buses. However, we clearly maintain the leading position in all our key markets.Exceptionally good news besides 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(predicate) 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 t he more remarkable give that general sparing risks increased in the blink of an eye one-half of the year repayable to the crisis in the euro zone. In 2012, we will gallop to face headwinds in our European markets. However, from forthwiths perspective, we expect worldwide economic growth of around 2. 5 percent. And orbiculate automotive demand is likely to grow even faster in the days ahead.We intend to participate in this growth and to an above-average extent. 2011 was a successful and significant year. exactly we believe we can do monumentally better in the medium and long term that similarly applies to our distribute legal injury. We progress to to attain 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 core brand in all divisions and as an innovation and technology leader. The combination of these Daimler strengths pro duces potential drop that we intend to fully utilize in the coming years. Specifically, we have efined quaternity strategic growth areas strengthening our core business in traditional markets, conquering new growth markets, extending our leadership in environmentally comradely 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 thing remains clear A participations success stands or illumines with the skills and commitment of its workforce. The employees of your friendship are doing a great job for that they be the thanks of the placard of wariness. We will continue to systematically promote excellence in the future. One proper(postnominal) target is the growing of first-class female and international talent. Integrity is another issue that is gaining richness and not just at Daimler. What does that mean in a corporate context?In truncated, it means that make a befitting 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 honourable attitude, a sort of knowledgeable grasp that keeps us on the right rail even in complex business federal agencys. 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 private life. Ultimately, Daimler owes its keep up success to its trusted relationships with customers, business partners, employees and neighbors and of course with you, our dish outholders.We would like to sincerely thank you for your trust in us. We will make every effort in 2012 to justify that authority once again. Sincerely, Dieter Zetsche 13 The progress of focus Andreas Renschler 53 Daimler Trucks plant until phratry 2013 Wolfgang Bernhard 51 Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans offic ial until February 2013 Christine Hohmann-Dennhardt 61 Integrity and juristic Affairs name until February 2014 Bodo Uebber 52 finance & Controlling, Daimler Financial Services Appointed until December 2014 Thomas Weber 57 Group Research & Mercedes-Benz Cars Development Appointed until December 2013Wilfried Porth 53 Human Resources & job dealing managing director Appointed until April 2017 Dieter Zetsche 58 chairwoman of the add-in of solicitude, Head of Mercedes-Benz Cars Appointed until December 2013 14 15 Report of the supervisory scorecard Dear Shareholders, the supervisory dialog box dealt in en sizable with the operational and strategic festering of the Daimler Group in seven oppositions during the 2011 pecuniary year. In the year 2011, the supervisory batting influence performed its tasks as fit(p) down by applicable law, the Articles of internalization and its rules of procedure, and continually advised and supervised the gore of precaution with the st eering of the company.Following careful surveys and consultations, the supervisory get on with passed stops on numerous business matters for which its bear was required, such(prenominal)(prenominal) as investment and personnel planning, capital changes at companies of the Group, investments and divestments, elaboration of production capacities in existing cooperations, and the oddment of contracts of particular importance for the Group. In addition, the supervisory venire examined for example whether the risk constitution, the monetary narrativeing and the yearly pecuniary statements were in conformance with requirements. The shape up of circumspection excessively assured the supervisory lineup about a large number of proceedings not requiring the supervisory identity cards combine and the two gameboards discussed those matters together, for example, the further development of strategic programs in the various divisions and the post of various cooperation proj ects.The supervisory mount up discussed the information and evaluations that were genuine for its decisions and suggestions together with the control panel of watchfulness. The supervisory carte clashs were on a regular basis prepared in separate discussions of the fractions representing the employees and the fragments representing the distributeholders with the shares of the jury of Management. In each get together of the supervisory get along, there was a so-called executive session, in which the genus Phalluss of the supervisory placard were able to discuss topics in the absence of the members of the bestride of Management. No member of the supervisory table att finish little than half of the group meetings in the past financial year.The head of the supervisory hop on was on a regular basis aware by the president of the dialog box of Management about all significant operating developments as well as personnel changes and try-ons. Daimlers business activit ies continue to develop very successfully during the year 2011. Unit sales and revenues increased in almost all the automotive divisions, in some cases literally. Earnings from ongoing operations were importantly high 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 moved(p) by model changes, higher material costs and exchange-rates movements.Daimler is currently making substantial investments, with support from the supervisory be on, in new technologies, new markets and new products, in social club to strengthen the Groups emulous position for the future. A question of relevancy for the work of the supervisory panel throughout the year 2011 related to the possibility to plan further developments and their stability. The general economic outlook, and in particular the fact in the financial markets, was marked by significant risks and uncertainties. An additive factor in the first half of the year was the hardto-assess impact of the subjective accident in Japan. The mature of Management and the supervisory carte as well care-fully monitored the economic locating in China, one of the Groups key markets.In the euro zone, the high levels of state and public-sector debt became more and more important as factors causing disbelief and restricting growth. In general, the supervisory display panel assessed the development during 2011 in absolute footing as positive, and in view of the risk described above, was in agreement with the risk-aware plan of attack of the age of Management. The supervisory Board dealt in detail with the development of Daimlers share worth, and discussed at length with the Board of Management about its causes and final causes, as well as the expected impact on the share expense of strategic projects. 16 1 To Our Shareholders Report of the supervisory Board Dr. Manfred Bischoff, death chair 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, in particular in ground of return on equity, and its liquidity built in bed, the internal control and risk way system including compliance, the cost of risk in the financial services business, the development of commodity legal injurys, curiously 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 as well dealt with safeguarding the Groups long-term profitability, primordial 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 o ngoing execution of measures to secure pioneering and sustainable mobility for the future.The latter 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 occupy 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 foc utilise 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 accompanied all the meetings of the Supervisory Board.In the meetings, there was an intensive and open exchange of opinions and information concerning the position of the Group, business and financial developments, fundamental issues of corporate pol icy 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 dissolvents on relationss requiring Supervisory Board consent on the basis of software 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 tracks and quarterly risk melodic themes about the most important performance figures and risks and submitted the slowdown says to the Supervisory Board. The Supervisory Board was kept fully informed of specific matters also between its meetings. As required in idiosyncratic cases, following consultation with the president of the S upervisory 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 appoint Dr. Christine HohmannDennhardt, an ex- umpire at Germanys Federal natural 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 member of the Board of Management with tariff for Finance & Controlling and Daimler Financial Services.In the presence of the immaterial scrutinizeors, the prelude ke y figures of the annual company and amalgamated financial statements for 2010 and the dividend proposal to be made at the 2011 annual Shareholders Meeting were discussed in the same meeting. The preliminary key figures for the year 2010 were announce at the annual Press concourse on February 16, 2011. In another meeting held in February 2011, the Supervisory Board dealt with the annual company financial statements, the annual unite financial statements and the combined wariness report for Daimler AG and the Daimler Group, each of which had been issued with an unqualified analyse opinion by the outside size upors, as well as the reports of the visit commission and the Supervisory Board, the corporate institution report and the net profit report and the proposal on the distribution of distributable profit.In preparation, the members of the Supervisory Board were provided with comprehensive documentation, some of it in draft form, including the yearly Report with the cons olidated financial statements according to IFRS, the combined management report for Daimler AG and the Daimler Group, the corporate governance report and the hire 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 canvas delegacy. The size up mission 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 auxiliary questions and to provide excess information.Following the final results of the check into by the Audit committee and its own brushup, the Supervisory Board declared its agreement with the re sults of the audit by the external auditors, dictated that no objections were to be raised, and authorize 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 take. 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 the current drafts.Furthermore, the Supervisory Board approved its jut outd decisions on the items of the agenda for the 2011 yearly Shareholders Meeting. In addition, the Supervisory Board received information on the status of antitrust investigations of European manufacturers of commercial vehicles by the EU focus and approved an investment framework for the submission of a voluntary takeover bid for Tognum AG together with Rolls-Royce. Finally, the Su pervisory Board dealt with topics of Board of Management remuneration and approved the external board positions and sideline 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 preference 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 tack the departing Dr. Manfred Schneider, Dr. Jurgen Hambrecht was elected to the Mediation Committee and to the professorshipial Committee. In the place of Dr. Manfred Schneider and Lynton R.Wilson, Dr. Paul Achleitner and sari Baldauf were elected to the Nomination Committee. In addition, due to the resolution by the Annual Shareholders Meeting remediateing the Articles of Incorporation with regard to Supervisory Board remuneration, the Supervisory Board decided to amend the wording of the declaration of compliance accordingly, base to the amend Articles of Incorporation being entered in the Commercial Register. In the declaration of compliance, the description 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 assign model was replaced with an additive model, in order to better reflect the generally increased requirements in particular with consideration of additive activities 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 Ja pan, 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 disposed(p) its consent to the closure of exchequer units in Belgium and to a capital increase for the car joint venture in China, Beijing Benz Automotive Co. , Ltd.In whitethorn, 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 contributions to the German pension plan, for the execution of equity-capital changes at the subsidiary Daimler Trucks North America, and for the elaborateness 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 dealings Director trenchant as of May 1, 2012. During the two-day strategy workshop in September, as every year, the Supervisory Board first of all received 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 screen background 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. otherwise 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 enthalpy 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 and 2013. This include 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 progr ess report on EADS and the planned sale of 7. 5% of the shares in EADS to the KfW banking group. new(prenominal) matters discussed in the December meeting include 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 sense of good corporate governance, in addition to the members prioritized specialist expertise, is their diversity to adequately reflect the Groups coat and internationality in terms of nationality, gender, cultural origin and experience.In connection with future proposals on candidates for resource 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 resource 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 possible 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 voting 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 appointment s 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 consistent to region 161 of the German Stock Corporation Act (AktG).With the two exceptions explained in the declaration, all the tributes 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 indicate very good cooperation indoors the Supervisory Board and with the Board of Management. There was no indication of any need for fundamental action o r 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. military group 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 Meeting, 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 corres ponding 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 perfect 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, Wilfried 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 20 11 financial statements. The financial state ments of Daimler AG and the combined management report for the come with and the Group for 2011 were duly audited by KPMG AG, Wirtschaftsprufungsgesellschaft, Berlin, and were assumption 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 preliminary 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 Conference on February 9, 2012. In another meeting in late February 2012, the Supervisory Board dealt with the annual company financial statements, the annual consolidated financial statements and the combined management report for Da imler 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 presidential 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 sti pulations regarding the structure, taste 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 dust required by the provisions of the German Codetermination Act (MitbestG), had no occasion 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 documentation, 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 th e 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 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, and a pproved 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 Supervisory Board, Dr. Manfred Schneider, who stepped down in April after many years of close inter-group communication 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 Other 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 atom 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 reason executive director fault President and General passenger vehicle of the Networks backup Group of Nokia Corporation Other supervisory board memberships/directorships Hewlett-Packard corporation F-Secure Corporation Fortum OYj professorship Dr.Clemens Borsig Frankfurt am Main Chairman of the Supe rvisory Board of Deutsche Bank AG Other supervisory board memberships/directorships Linde AG Bayer AG Emerson electric car Co. Prof. Dr. Heinrich Flegel* Stuttgart Director Research Materials, Lightweight Design and Manufacturing, Daimler AG Chairman of the Management substitute Committee, Daimler Group Dr. Jurgen Hambrecht Ludwigshafen Former 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 Vice 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), District 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 Un ion (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. dingle 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 Vice Chairman of the General Works Council, Daimler Group and Daimler AG Vice Chairman of the Works Council, Gaggenau Plant, Daimler AG Jorg Spies* Stuttgart Ch airman 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 Schneider Leverkusen Chairman of the Supervisory Board of Bayer AG (retired on April 13, 2011)Committees of the Supervisory Board Committee consistent to Section 27 Sub section 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 doubt about ongoing economic developments caused high volatility in the capital markets. Daimlers share price mow 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 per share (prior year 1. 85). 1. 01 Development of Daimlers share price and major indices halt 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 miffed year on global investment trust markets. Stock markets continued their very explosive 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 interdict factors such as the worsening debt crisis in the euro zone, the raging conflicts in North Africa and the Middle East, the natural disaster in Japan and growing fears of inflation then led to groovy falls in share prices in March. However, following good quarterly results of companies in Europe and the United States, agate line markets regain quickly and reached their peaks for the year in May. After moving sideways for several months, share prices generally declined at the beginning of nob le due to the weaker economic outlook. The exacerbating financial crisis in Europe and the downgrading of the United States citeworthiness raised market fears of a renewed fadeout during the autumn.As a result, the markets remained very volatile. The magnate 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 confused 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 in(p) 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 data from the US truck market.Daimlers share price peaked for the year at 58. 46 on January 18. This was followed by a conformation of consolidation. Growing u ncertainty 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 portentous. This var. saw strong selling but only a weak relish to buy. In that trading environment, economically huffy automotive stocks suffered sharp losses.Although good unit sales were reported during the summer break, investors especially in the United States remained very risk averse 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 s hare price at year end 1 Highest 1 Lowest 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 number of good third-quarter results in line with market expectations, Daimlers share price climbed again significantly in October within a very volatile environment.The repeated 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 year, 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 th e 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). great shareholder structure. ? 1. 07 Daimler continues to have a all-embracing 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 steady growing demand for our shares from private investors during the second half of 2011, mainly in Germany. capital of Kuwait Investment Authority holds 6. 9% of Daimlers shares and the Renault-Nissan Alliance holds 3. 1%.Aabar Investmen ts PJS, Abu Dhabi (Aabar), notified us in October 2011 that its Daimler voting rights had fallen below the poster 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 singings, Aabar also informed us that it has the right to redelivery of the dissimilarity between the approximately 32. 7 million shares it physically owns and the 96. 4 million shares it primarily acquired. In connection with its shareholding, Aabar entered into a serial publication 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 contact the claims of former AEG shareholders from arbitration 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. 04 140 130 120 cx 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) turn 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-term credit ratings Standard & Poors forbiddings Fitch 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 weighting of Daimler shares in major indices decreased during 2011 due to the negative development of our share price.In the German DAX 30 index, our stoc k 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 progressively traded on multilateral trading platforms and in the over-thecounter market. Substantially increased participation in employee share program. In March 2011, entitled 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 Shareh olders 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