Annual Report 2016

Financial guarantees, contingent liabilities and other financial obligations

Within the context of financial guarantees, Daimler generally guarantees the settlement of the payment obligations of the main debtor vis-à-vis the holder of the guarantee. The maximum potential obligation resulting from these guarantees amounts to €0.8 billion at December 31, 2016 (2015: €1.0 billion); the liabilities recognized in this context amount to €0.2 billion at the end of the year (2015: €0.1 billion). The financial guarantees that the Group has issued relating to bank loans of Toll Collect GmbH, the operator company for the electronic toll-collection system in Germany, remain unchanged at €0.1 billion. For information on risks arising from guarantees, we refer to our Risk and Opportunity Report in the section “Risks from guarantees, legal and tax risks.”

The contingent liabilities principally constitute buyback obligations. At December 31, 2016, the best possible estimate for the loss risk from these guarantees amounted to €1.7 billion (2015: €1.6 billion). Warranty and goodwill commitments (product guarantees) provided by the Group in connection with its vehicle sales are not included in the contingent liabilities. In addition, other contingent liabilities are included. The best possible estimate for an obligation from the other contingent liabilities is €0.3 billion (2015: €0.4 billion).

In the context of its ordinary business operations, the Group has also entered into other financial obligations in addition to the liabilities shown in the consolidated balance sheet at December 31, 2016.

Detailed information on financial guarantees, contingent liabilities and other financial obligations are provided in Note 30 of the Notes to the Consolidated Financial Statements.

Cash flows