BMW 2002 Annual Report Download - page 118

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[DJSI World]
The abbreviation for Dow Jones Sustainability Index
World. An index for companies introduced by Dow
Jones and the Swiss SAM Sustainability Group
Investment Agency focusing on companies which
are following strategies aimed at sustainability. The
BMW Group is one of the leading car makers in the
DJSI Automotive Group ever since its establishment
in 1999.
[DVFA /SG result]
A basis for the computation of earnings used by the
Deutschen Vereinigung für Finanzanalyse und Asset
Management/Schmalenbach Gesellschaft, the
German Society of Investment Analysts and Asset
Managers. Under this method, the annual results of
a company are adjusted for one-off special effects
to improve comparability.
[EBIT]
Abbreviation for Earnings before Interest and Taxes.
The profit before income taxes, minority interest and
financial result.
[EBITDA]
Abbreviation for Earnings before Interest,Taxes,
Depreciation and Amortisation.The profit before
income taxes, minority interest, financial result and
depreciation/amortisation.
[E-Business]
The BMW Group sees E-business as both a chal-
lenge and an opportunity for the entire Company.
The strategic significance of E-business lies in the
greater process orientation and networking of cur-
rent structures and processes, with a clear focus on
the customer. E-business therefore supports the
BMW Groups objective to grow profitably. All of the
companys E-business activities are driven from the
perspective of daily business, helping to optimise
and improve processes. The primary focus is not
on cost reduction, but rather on benefits, flexibility,
quality and customer satisfaction. The aspect of
speed is of particular significance.
[Effectiveness]
The degree to which offsetting changes in fair value
or cash flows attributable to a hedged risk are
achieved by the hedging instrument.
[EMAS]
Abbreviation for Eco-Management and Audit
Scheme. A management tool which allows com-
panies and organisations to evaluate, report on and
improve their environmental performance.
[Equity ratio]
The proportion of equity (= subscribed capital, re-
serves and accumulated other equity) to the balance
sheet total.
[IAS]
Abbreviation for International Accounting Stand-
ards. Accounting standards which are intended to
ensure global comparability of accounting practices
and financial reporting. They are issued by the Inter-
national Accounting Standards Board (IASB).
[Internal financing]
Internal financing is defined by the BMW Group as
profit from ordinary activities less actual tax pay-
ments and adjusted for depreciation and amortisa-
tion and significant non-cash items.
[KOVP]
The German abbreviation for Customer-Oriented
Sales and Production Process. The overriding ob-
jective of KOVP is to give each customer his per-
sonal car on his specified date. To achieve this goal
in a competitive environment constantly changing
and becoming demanding, the BMW Group has
started to develop a new sales and production
sys tem.