BMW 2009 Annual Report Download - page 54

52
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
Revenues by segment
in euro million
2009 2008
Automobiles 43,737 48,782
Motorcycles 1,069 1,230
Financial Services 15,798 15,725
Other Entities 3 191
Eliminations – 9,926 – 12,731
Group 50,681 53,197
Profit / loss before tax by segment
in euro million
2009 2008
Automobiles – 588 318
Motorcycles 1 1 51
Financial Services 365 – 292
Other Entities 51 295
Eliminations 574 – 21
Group 413 351
lion, mainly reflecting the lower level of expense for risk
provision.
The segment profit for the Other Entities segment was
euro 51 million (2008: euro 295 million). The decrease
here was mainly due to higher income from the reversal of
provisions in the previous year and a gain on the partial
sale of the Cirquent Group, also recognised in the previous
year.
The result from inter-segment eliminations improved to a
positive amount of euro 574 million (2008: negative amount
of euro 21 million), mainly as a result of the lower volume
of new leasing business.
Financial Position
The cash flow statements of the BMW Group and the
Automobiles and Financial Services segments show the
sources and applications of cash flows for the financial
years 2008 and 2009, classified into cash flows from
operating, investing and financing activities. Cash and
cash equivalents in the cash flow statement correspond
to
the amount disclosed in the balance sheet.
Cash flows from operating activities are determined indi-
rectly starting with the Group net profit. By contrast, cash
flows from investing and financing activities are based on
actual payments and receipts.
Operating activities of the BMW Group generated a posi-
tive cash flow of euro 10,271 million in 2009, a decrease of
euro 601 million or 5.5 % compared to the previous year.
Changes in working capital and other operating assets
and liabilities during 2009 generated a cash inflow of euro
908 million (2008: euro 411 million). The increase was more
than offset by the decrease in depreciation and write-
downs on leased products (down by euro 1,287 million to
euro 5,476 million).
The cash outflow for investing activities amounted to euro
11,328 million and was therefore euro 7,324 million lower
than in 2008. Capital expenditure for intangible assets and
property, plant and equipment resulted in the cash outflow
for investing activities decreasing by euro 733 million on
a year-on-year comparison. The cash outflow for the net
investment in leased products and receivables from sales
financing decreased by euro 8,692 million to euro 5,700
million as a result of the lower level of new business and
the fact that an exceptional item in the previous year was
not repeated (buy-back in 2008 of previously off-balance-
sheet vehicle portfolio of a leasing company).
Financing activities generated a cash inflow of euro 1,352
million in 2009 (2008: euro 12,904 million). Cash inflows
from the issue of bonds totalled euro 9,762 million (2008:
euro 9,959 million), and euro 6,440 million (2008: euro
5,080 million) was used to repay bonds. The dividend pay-
ment
for the financial year 2009 amounted to euro 197
million. The cash outflow for other financial liabilities and
Commercial Paper was euro 1,562 million (2008: cash in-
flow of euro 9,041 million).
90.7 % (2008: 58.3 %) of the cash outflow for investing
activities was covered by the cash inflow from operating
activities. The cash flow statement for the Automobiles
segment shows that the cash inflow from operating
activities fell
short of the cash outflow for investing activi-
ties by euro 754 million (2008: euro 81 million). Adjusted
for purchases of marketable securities amounting to euro
2,210 million
(mainly in connection with the further exter-
nalisation of pension obligations), there would have been
a surplus of
euro 1,456 million or 142.0 % . Due to the