Daimler boosts pension assets again
Addition of around € 1.8 billion to pension assets
Investment in Renault/Nissan transferred to pension assets
Strategic cooperation with Renault/Nissan unaffected of transfer of shares and to be extended successfully as planned
Daimler AG’s Supervisory Board has decided to add around €1.8 billion to the company’s pension assets.
The pension contribution will be made in form of a transfer of the shares in Renault S.A. and Nissan Motor Co. Ltd. to the pension assets of Daimler AG.
The transfer will result in a onetime positive EBIT impact in 2016 of about €0.5 billion.
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: “With this contribution we are again reinforcing our pension assets.
Our aim in this is to safeguard our employees’ pension benefits for the long term. Regardless of the share transfer we will continue the successful strategic alliance with the Renault/Nissan Alliance.
Besides the ongoing projects one of the major milestones is the start of a joint production with Nissan for the upcoming premium compact car generation in Mexico.”
The funding level of the pension obligations is falling because of the persistently low interest rate environment.
In order to increase the pension assets Daimler transfers the shares in Renault and Nissan of respectively 3.1% of the share capital into the pension assets.
All operative aspects of the successful strategic cooperation with Renault/Nissan will be continued. Both partners approved and support the transfer.
Bodo Uebber, Board of Management member of Daimler AG responsible for Finance & Controlling and Financial Services: “With this transaction we are improving the funding level of pension obligations significantly by around 6% with no effect on cash flow.
In addition, the company value will further benefit from a better interest result and a higher equity ratio of the industrial business. As a consequence, we further improve our strong financial position to support our solid rating.”