Daimler AG / Key word(s): Scheme of Arrangement/Legal Matter
Agreement in Principle on Settlement of Litigation concerning Toll Collect - Possible Implications for Financial Indicators
Stuttgart - Today, Daimler AG (through its subsidiary Daimler Financial Services AG) has reached a commercial agreement in principle with Deutsche Telekom AG and the German Federal Government concerning a comprehensive settlement of the litigation concerning Toll Collect that has been pending since 2004.
A final settlement agreement is to include a final resolution of all litigation proceedings concerning Toll Collect. The agreement shall cover all claims that were raised in this context. It is to be expected that Daimler Group will face payment obligations amounting to approximately EUR 0.6 billion in case of a settlement.
The final agreement on a settlement agreement and its precise content are subject to further negotiation between the parties. A binding settlement would require, besides agreement on a final settlement agreement, consent of the respective decision making bodies of the involved parties, in particular consent of the executive boards and the supervisory boards of Daimler AG and Daimler Financial Services AG. It is intended to also involve the arbitration tribunal in the conclusion of the settlement agreement. Daimler AG regards a swift settlement of the arbitration proceedings after a very long time to be reasonable for all involved parties and
At the level of Daimler Group, a settlement could have a one-time negative EBIT effect in the magnitude of EUR0.6 billion that would impact the Daimler Group result in the current quarter and would be taken into consideration at Daimler Financial Services. Based on this negative one-time effect, Daimler now assumes that the result of Daimler Financial Services in 2018 will be in the magnitude of prior-year's level. The expectation for the Group EBIT remains unchanged slightly higher level than in the previous year.
Further information from Daimler is available at:
This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
16-May-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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