BMW 2004 Annual Report Download - page 38

37
working life of the employees concerned. At 31 De-
cember 2004, the amount still to be recognised was
euro 589 million (2003: euro 321 million). This re-
sults currently in an annual expense in the region of
euro 42 million.
Debt increased by 11.1% to euro 30,483 million.
Within the amount disclosed as debt, bonds in-
creased by 9.2% to euro 12,448 million as a result
of additions to the Medium Term Note Program. Lia-
bilities to banks amounted to euro 3,790 million, an
increase of 20.1% over one year earlier. Liabilities
from customer deposits increased sharply (+32.0%)
to euro 5,101 million. By contrast, other debt was re-
duced by 10.7% to euro 5,084 million.
Trade payables stood at euro 3,376 million, an
increase of 7.4% compared to the end of the pre-
vious year.
Other liabilities fell by 9.1% to euro 2,395 million.
Deferred tax liabilities were marginally higher
(+3.8 %) than at the end of the previous year and
amounted to euro 2,596 million at 31 December
2004.
Deferred income increased sharply (+86.1%) to
euro 1,576 million. This item includes, for the first
time, deferred income relating to service and repair
agreements concluded with customers at the time
of the sale of a new vehicle.
Events after the balance sheet date
No events have occurred after the balance sheet date
which could have a major impact on the earnings
performance, financial position and nets assets of
the BMW Group.
Value added statement
The added value statement shows the value of work
performed less the value of work bought in by the
BMW Group during the financial year. Depreciation,
cost of materials and other expenses are treated
as bought-in costs in the added value calculation.
The allocation statement applies added value to
each of the relevant parties involved in the added
value process. It should be noted that the gross
added value treats depreciation as a component of
added value which, in the allocation statement, would
be treated as internal financing.
Net valued added by the BMW Group in 2004
rose by 4.5% to euro 12,220 million, the increase
being mainly attributable to the increase in revenues.
The increase in gross valued added, at 5.7%, was
even more pronounced than that of net added
value, since it is not affected by depreciation and
amortisation, which are higher than in the previous
year.
The bulk of the net added value (58.5%) is
applied to employees, 1.9 percentage points less
than in the previous year. The portion applied to
providers of funds also fell by 0.5 percentage points
to 8.7%. The government/public sector (including
deferred tax liabilities of the Group) accounted for
14.6% (2003: 13.8%). As a result of the proposed
increased dividend, the proportion applied to share-
holders increased slightly from 3.3% to 3.4%.The
remaining proportion of net added value (14.8%)
will be retained in the Group to finance future opera-
tions, an increase of 1.5 percentage points com-
pared to the previous year.