BMW 2007 Annual Report Download - page 54

52 Group Management Report
10 Group Management Report
10 A Review of the Financial Year
13 General Economic Environment
17 Review of Operations
41 BMW Stock and Bonds
44 Disclosures relating to Takeover
Regulations and Explanatory Report
47 Financial Analysis
47 – Internal Management System
49 – Earnings Performance
51 – Financial Position
52 – Net Assets Position
55 – Subsequent Events Report
55 – Value Added Statement
57 – Key Performance Figures
58 – Comments on BMW AG
62 Risk Management
68 Outlook
talled euro 6,038 million (2006: euro 6,876 million),
and euro 4,152 million (2006: euro 4,491 million)
was used to repay bonds. The dividend payment
in 2007 totalled euro 458 million. The cash inflow
from other financial liabilities and commercial paper
increased by euro 3,519 million.
68.4 % (2006: 73.0 %) of the cash outflow for
investing activities was covered by the cash inflow
from operating activities. The cash flow statement
for Industrial Operations shows that the cash outflow
for operating activities exceeded the cash inflow
from investing activities by 56.6 % (2006: 21.6 %).
As expected, the cash flow statement for Financial
Operations shows that cash inflow from operating
activities did not cover the cash outflow for investing
activities due to the high level of capital expenditure
on leased products and receivables from sales fi-
nancing. The shortfall was 58.7 % (2006: 50.2 %).
After adjustment for the effects of exchange-
rate fluctuations and changes in the composition
of the BMW Group amounting to a negative amount
of euro 46 million (2006: positive amount of euro
82 million), the various cash flows resulted in an in-
crease in cash and cash equivalents of euro 1,057
million (2006: decrease of euro 285 million).
Net interest-bearing assets relating to Industrial
Operations (including receivables from Financial
Operations) amounted to euro 7,052 million at the
year-end, representing an increase of euro 1,667
million since 31 December 2006. Net interest-bear-
ing assets relating to Industrial Operations comprise
cash and cash equivalents (euro 1,887 million), mar-
ketable securities relating to Industrial Operations
(euro 1,933 million) and receivables from the Finan-
cial Operations (euro 5,910 million) less financial lia-
bilities of Industrial Operations. Excluding interest
and currency derivatives, the latter amounts to euro
2,678 million.
Net Assets Position
The Group balance sheet total increased by euro
9,940 million or 12.6 % to euro 88,997 million. Cur-
rency effects, largely attributable to a weaker US
dollar, again held down the increase in the balance
sheet total in 2007. Adjusted for changes in ex-
change rates, the balance sheet total would have
increased by 16.7 % to euro 12,703 million. The
main factors behind the increase on the assets
side were the increased level of leased products
(+ 24.7 %), financial assets (+ 21.4 %), cash and
Change in cash and cash equivalents
in euro million
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
– 1,000
– 2,000
– 3,000
– 4,000
Cash and cash
equivalents
31.12.2006
1,336
Cash inflow from
operating activities
+ 11,794
Cash outflow from
investing activities
– 17,248
Cash inflow from
financing activities
+ 6,557
Currency trans-
lation, changes in
Group composition
– 46
Cash and cash
equivalents
31.12.2007
2,393