Despite falling demand, MAN returned a robust performance: Following on from a record prior year, the Company posted a moderate 4% downturn in revenue, with operating profit just below the €1 billion threshold.

Business performance

The worldwide slowdown in economic growth and the prevailing sovereign debt crisis in Europe led to substantial uncertainties in the business sector. This was also reflected in the investment behavior of our customers. The MAN Group posted a moderate downturn in revenue in 2012. At €15.8 billion, revenue was 4% below the record level of the previous year. Operating profit in the year under review totaled €964 million, 35% down from what was a high prioryear figure. We paid out total dividends to our shareholders of €297 million in 2012 or €2.30 per share for the 2011 fiscal year. The return on sales fell to 6.1% in the year under review, compared to 9.0% in 2011. Further information on our financial performance is available in our 2012 Annual Report (, 2012 Annual Report, page 35 et seq.).

Business performance

€ million 2011 2012
Order intake 17,145 15,889
of which: Germany 3,646 3,252
of which: other countries 13,499 12,637
Revenue 16,472 15,772
of which: Germany 3,515 3,170
of which: other countries 12,957 12,602
Operating profit 1,483 964

Capital expenditures by business area

€ million 2011 % 2012 %
Commercial Vehicles 12 563 76 11 692 74
Power Engineering 3 999 24 4 256 27
Others/consolidation - 90 - - 176 - 1
MAN Group 16 472 100 15 772 100

Taxes and subsidies

MAN pays its taxes wherever value is added. In the year under review, MAN paid income taxes amounting to €609 million. We do not take extensive measures to optimize our taxes. Expenditures for order-related R&D activities and for projects receiving public-sector subsidies totaled €196 million. Approximately 51% of internal funds were invested in basic research and the development of new products.

Capital expenditures

In the 2012 fiscal year, the MAN Group increased its capital expenditures by approximately 38%, from €671 million in 2011 to €929 million. Capital expenditures in property, plant and equipment, and in investments showed a strong increase. As well as making necessary replacement and maintenance investments, MAN Truck & Bus channeled funds above all into developing new products such as engines that comply with the Euro VI emission standard. Investments were also made in enhancing productivity and quality. Measures undertaken to realize growth potential included the opening in Ankara of Europe’s largest electrophoretic deposition (EPD) plant and the further modernization of the NEOPLAN factory in Plauen. To strengthen its worldwide presence, MAN Truck & Bus also expanded and upgraded its sales and service network. In the first quarter of 2012, MAN Truck & Bus acquired the remaining shares in the MAN FORCE TRUCKS joint venture in India, a move that underlines the importance of the BRIC markets for future growth. MAN Latin America’s capital expenditures were focused primarily on the changeover to the Euro V emission standard and on the technical integration of products and components from MAN Truck & Bus.

MAN Diesel & Turbo made necessary replacement and maintenance investments and invested in increasing the efficiency of its production operations. Other core areas of investment included plant and equipment for processing large components, as well as test benches. Investment was also made in improving occupational safety and works security.

Renk modernized and expanded its production operations at its Augsburg and Rheine sites.

Capital expenditures

€ million 2011 2012
Excluding earning effects from purchase price allocations (2012: €91 million, 2011: €99 million) and
excluding write-downs of investments of €190 million (Sinotruk) and €41 million (RMVV)
Property, plant, and equipment
and investment property
355 447
Intangible assets 246 307
Investments 70 175
Total 671 929
of which acquisition of additional interest
in Euro-Leasing GmbH
50 -
of which acquisition of Sinotruk - 148
of which other capital expenditures 621 781
of which Germany 438 520
of which other countries 183 261
Depreciation, amortization, and impairment* 353 384
Capital expenditure ratio in % 176 203

Capital expenditures by business area

€ million 2011 2012
Commercial Vehicles 567 740
Power Engineering 117 195
Others/consolidation - 13 - 6
MAN Group 671 929

Research and development

MAN invested €830 million in research and development in the year under review. This means that in relation to revenue, R&D expenditure increased to over 5%. The main focus of research and development in the Commercial Vehicles business area was on reducing fuel consumption and emissions, as well as on alternative drive concepts, including hybrid drive systems and electric mobility.

The need to increase efficiency while at the same time reducing emissions is also a major technology driver for the products of the Power Engineering business area. In the field of power plant applications, MAN Diesel & Turbo is working on combining multiple products to achieve substantially higher levels of efficiency than in the past. In the cogeneration sector, for example, engines are being optimized in such a way that their waste heat can be used as industrial process heat or for district heating. In addition, MAN Diesel & Turbo is participating in various research programs run by the German Federal Ministry of Economics and Technology (BMWi) designed to reduce CO2 emissions. One such program is AG Turbo 2020, bringing together universities, research centers, and industry.

Research and development

€ million 2011 2012
R&D expenditures 740 830
of which Commercial Vehicles 403 437
of which Power Engineering 345 399
of which consolidation - 8 - 6
R&D expenditures of the manufacturing areas
(% of revenue)
4.5 5.3
Internally funded R&D 565 634
R&D employees (annual average) 4,443 5,153

Climate-related risks and opportunities

MAN is indirectly affected by climate change, that is, by the resulting regulatory changes and the development of energy prices. According to estimates by the European Automobile Manufacturers’ Association, European manufacturers of commercial vehicles will have to spend between €6 billion and €8 billion solely to meet Euro VI emission standards. The Climate Strategy adopted by MAN has led to a closer focus on climate-related risks and opportunities. The direct impact of climate change for MAN is limited, however, as we have no production facilities in areas threatened by flooding. The consistent continuation of the European climateprotection policy and the gradual implementation of similar policies in the BRIC countries will yield new growth opportunities for MAN.

Customer focus

MAN provides its customers with comprehensive product information and user guides showing the safest and most environmentally compatible way to operate MAN products. We clearly communicate the efficiency potential of our products and ways of reducing environmental impacts, such as through exhaust gas treatment.

One new offering at MAN Truck & Bus is MAN Solutions, an integrated concept designed to reduce vehicle operating costs as well as improve operating safety and vehicle availability. This brings together services for all requirements, from vehicle financing via service and support all the way to vehicle rentals. We honor outstanding customer focus measures and initiatives on the part of our employees with an annual award. MAN Truck & Bus is taking part in a research initiative to develop intelligent traffic assistance systems in urban areas. These systems can enable more efficient use of the existing infrastructure, make drivers’ jobs easier, promote a more economical style of driving, and help improve road safety. The project is being supported by the BMWi.

MAN Diesel & Turbo provides local customer services at 116 sites through the after-sales brand MAN PrimeServ. In 2012, twelve PrimeServ Academies held 346 courses and training sessions around the world on the optimum operation of our products.

We take customer complaints very seriously and use them as important indicators of ways in which we could improve our products and services. To this end, in recent years MAN Truck & Bus has set up a Customer Management department, looking after customers not only in the event of complaints but also helping to implement specific solutions. In 2012, the department dealt with more than 40,000 customer concerns. Experience gained by Customer Management is passed on to the Fault Remediation and Product Development departments, to support the optimization and further development of our products. MAN Service Mobile24 helps our customers around the clock, 365 days a year. Via a single toll-free telephone number for all of Europe, MAN Truck & Bus offers rapid assistance for MAN trucks and for buses from MAN and NEOPLAN.

Customer satisfaction

Customers are our most important stakeholders because they drive our business success. In order to maintain close contacts with our customers and to identify their needs, we conduct regular surveys in all our business areas to find out how satisfied customers are with our products and services. MAN Truck & Bus, for example, has been tracking customer loyalty and customer satisfaction related to sales and service each year since 2006. We also address specific customer requirements in our product studies. For the ninth year in a row, MAN Latin America led the field for customer satisfaction in the light and heavy truck market segments in 2012.

Product marketing

As in all of our activities, we also observe the provisions of the law with regard to advertising and product marketing. In Germany, we follow the recommendations of the German Advertising Council and ensure that any information we provide to customers complies with the relevant legal requirements. MAN did not receive any complaints in this respect in 2012.