BMW 2002 Annual Report Download - page 51

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50
001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
031 BMW Stock
034 Corporate Governance
042 Group Financial Statements
106 BMW AG Financial Statements
112 BMW Group Annual Comparison
114 BMW Group Locations
116 Glossary
120 Index
Explanatory comments on the cash flow
statement
For the year under report, the cash flow statement
has been expanded to show the cash flows of the in-
dustrial and financial operations.
The cash flow statement shows the sources and
application of cash flows for the financial years 2002
and 2001, classified into cash flows from operating,
investing and financing activities.
Using the net profit for the year as the starting
point, the cash flows from operating activities are
computed using the indirect method. Cash flows
from investing and financing activities are based on
actual cash payments and receipts.
Cash and cash equivalents in the cash flow
statement correspond to those disclosed in the
balance sheet.
Operating activities of the
BMW
Group in the
financial year 2002 generated a cash inflow of euro
7.3 billion (2001: euro 5.9 billion). Cash outflows
relating to the Rover disengagement of euro 0.2 bil-
lion (2001: euro 0.9 billion) have been allocated in
the cash flow statement to investing activities.
The cash outflow from investing activities
amounted to euro 9.7 billion, an increase of euro
3.6 billion compared to the previous year. The
higher cash outflow resulted mainly from the sig-
nificant increase of financial services business.
The cash outflow in this area was euro 3.7 billion
greater than in the previous year. This was due
partly to the general expansion of business and
partly to the fact that in the previous year the net
investment in financial services activities fell
noticeably as a result of discontinuing the financ-
ing of Rover and Land Rover vehicles. Capital ex-
penditure on property, plant and equipment and
intangible assets resulted in an additional cash
outflow of euro 0.5 billion compared to the previ-
ous year. The cash outflow in connection with the
Rover disengagement was euro 0.7 billion lower
than in the previous year. Cash inflow from operat-
ing activities covered 74.6 % (2001: 96.9 %) of
the cash outflow from investing activities. The
higher coverage in the previous year was due to
the lower net investment in financial services ac-
tivities.
The cash flow statement for industrial opera-
tions shows that the cash inflow from operating
activities exceeded the cash outflow from investing
activities by 7.2 % (2001: shortfall of 0.3%).
The cash flow from financing activities of the
BMW
Group gave rise to a cash inflow of euro
2.7 billion in comparison to 2001, to refinance sales
financing activities.