BMW 2009 Annual Report Download - page 44

42
12 Group Management Report
12 A Review of the Financial Year
14 General Economic Environment
18 Review of Operations
42
BMW Group – Capital Market
Activities
45 Disclosures pursuant to § 289 (4)
and § 315 (4) HGB
48 Financial Analysis
48 Internal Management System
50 Earnings Performance
52 Financial Position
54 Net Assets Position
56 Subsequent Events Report
56 Value Added Statement
58 Key Performance Figures
59 Comments on BMW AG
63 Internal Control System
64 Risk Management
70 Outlook
BMW Group – Capital Market Activities in 2009
Development of BMW stock compared to stock exchange indices
(Index: 30.12.1999 = 100)
350
300
250
200
150
100
50
00 01 02 03 04 05 06 07 08 09
BMW preferred stock BMW common stock Prime Automobile DAX
Volatile year on the stock markets ends with
strong gains
At the beginning of 2009 the situation was dominated by
the worldwide financial and economic crisis. The leading
stock market indices recorded their lowest levels for the
year as negative expectations prevailed. However, helped
by economic stimulus programmes and hopes of a rapid
recovery for the global economy, the world’s stock markets
recovered well over the course of the year.
In 2009 the German stock index, the DAX, moved away
from its year’s low of 3,588.89 points and, after a great
deal of volatility, closed the year at 5,957.43 points.
Compared to the end of 2008, the DAX therefore gained
1,147.23 points or approximately one quarter in value
during the year under report. The increase against the
year’s low in March was as much as 66 %. Due to one
exceptional factor, the Prime Automobile sector index did
not perform as well as the DAX. It closed on the final day
of trading in 2009 at 542.78 points, only 6.8 % higher
than at the end of the previous year. The Dow Jones
EURO STOXX 50 ended the stock market year 2009 with
a gain of 21.0 %.
BMW stock performed well during the reporting period.
BMW
common stock closed the year at a price of euro
31.80 and hence 47.2 % higher than one year earlier.
BMW preferred stock performed even better and gained
66 % compared to the previous year’s closing price,
finishing at euro 23.00 on the last day of trading.
Authorisation to buy back shares of common
stock extended
BMW AG purchased treasury shares in 2005 and 2006
and withdrew them from circulation. At the Annual General
Meeting on 14 May 2009 the Board of Management was
again authorised to acquire treasury shares via the stock
exchange, up to a maximum of 10 % of the share capital in
place at the date of the resolution and to withdraw these
shares from circulation without any further resolution by
the Annual General Meeting. At the same time, the authori-
sation from 8 May 2008 to acquire treasury shares was
rescinded. The authorisation from 14 May 2009 is valid
until 12 November 2010. There are no current plans to
exercise the authorisation. The option of a share buy-back
does, however, remain open to BMW AG.
Employee share scheme
BMW AG has allowed its employees to participate in its
success for more than 30 years. Since 1989 this partici-
pation
has taken the form of an employee share scheme.
In total, 831,425 shares of preferred stock were issued to
employees in 2009 in conjunction with this scheme.
362,225 of these came from the buy-back of shares of
preferred shares in 2008. In addition to this – and in ac-
cordance with a resolution taken by the Board of Manage-
ment
on 24 November 2009 with the approval by the
Supervisory Board – the share capital was increased by euro
469,200 from euro 654,191,358 to euro 654,660,558 by
the issue of 469,200 new non-voting shares of preferred
stock. This increase was executed on the basis of Authorised
Capital 2009 in Article 4 (5) of the Articles of Incorporation.
The new shares of preferred stock carry the same rights
as existing shares of preferred stock and were issued to
enable employees to obtain an equity participation in the
company.
Debt instruments successfully issued under
difficult conditions
The international debt capital market was very much domi-
nated by the knock-on effects of the worldwide financial