MERCEDES BENZ

International finance

Exchange rates represent the value of one currency in terms of another

currency. The four currencies provided in the table are Euro (EUR), US Dollar
(USD), British Pound (GBP), Japanese Yen (JPY), and Chinese Yuan (CNY).

The table provides average exchange rates for the year 2020 and 2021, as well
as the average exchange rates during each quarter of those years.
Comparing the average exchange rate for USD to EUR between 2020 and 2021,
it can be observed that the value of USD decreased from 1.2271 to 1.1326. This
indicates that the EUR appreciated in value against the USD during this period.

Similarly, comparing the average exchange rate for GBP to EUR between 2020
and 2021, it can be observed that the value of GBP decreased from 0.8990 to
0.8403. This indicates that the EUR appreciated in value against the GBP during
this period.

The exchange rate for JPY to EUR remained relatively stable between 2020 and
2021. However, the exchange rate for CNY to EUR decreased from 8.0225 in
2020 to 7.1947 in 2021, indicating that the EUR appreciated in value against
the CNY during this period.

When comparing the average exchange rates during each quarter of 2020 and
2021, it can be observed that the exchange rates fluctuated during the
respective periods. For example, the exchange rate for USD to EUR in the first
quarter of 2020 was 1.2048, which decreased to 1.1435 in the fourth quarter
of 2020. This indicates that the EUR appreciated in value against the USD
during this period.

Overall, exchange rates are influenced by a variety of factors, including

inflation rates, interest rates, and political stability. The fluctuations in
exchange rates can have a significant impact on trade and investment between
countries.

Derivatives
The table provided shows the reconciliation of reserves for derivative financial
instruments in millions of euros, for the period from 1 January 2020 to 31
December 2021.

At the beginning of the period, on 1 January 2020, the balance for reserves for
derivative financial instruments was a negative 546 million euros. This includes
reserves for hedge costs. During the period, changes in fair values (before
taxes) increased the balance by 1,266 million euros, with the majority of the
increase being due to foreign-currency risk.

Reclassifications to profit and loss decreased the balance by 117 million euros,
with the majority being due to foreign-currency risk and interest-rate risk.
Reclassifications to cost of acquisition of non-financial assets increased the
balance by 6 million euros, due to foreign-currency risk for procurement and a
decrease in commodity-price risk for inventory purchases.
Dividend
The Consolidated Statement of Changes in Equity shows how a company's
equity has changed over a period of time. Equity is the residual interest in the
assets of a company after deducting its liabilities. The equity includes share
capital, capital reserves, retained earnings, currency translation, and equity
instruments/debt instruments

Looking at the table, the company's equity increased from €46,329 million in
2019 to €56,190 million in 2021. The increase in equity is primarily due to the
net profit of €23,006 million and the other comprehensive income of €4,702
million. The other comprehensive income includes gains and losses that are
not recognized in the income statement, such as changes in the fair value of
available-for-sale financial assets, changes in the fair value of hedging
instruments, and currency translation adjustments.

The company paid dividends of €963 million in 2019 and €1,444 million in
2020, which reduced the retained earnings. The company also had changes in
ownership interests in subsidiaries, which affected the equity