BMW 2009 Annual Report Download - page 56

54
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
Net Assets Position
The Group balance sheet total increased by euro 867 mil-
lion (+ 0.9 % ) to euro 101,953 million compared to 31 De-
cember 2008. Adjusted for changes in exchange rates, the
balance sheet total would have decreased by 0.9 % .
The main factors behind the increase on the assets side
were the increased level of receivables from sales financ-
ing
(+ 6.6 % ), other assets (+ 24.9 % ) and deferred taxes
(+ 46.2 %). Leased products (– 7.9 %) and inventories
(– 10.1 %) decreased. On the equity and liabilities side of
the balance sheet, the increase was due to the increase
in financial liabilities (+ 1.6 %) and trade payables (+ 21.9 %).
There were decreases in pension provisions (– 10.3 % ) and
equity (– 1.8 % ).
At euro 5,379 million, intangible assets were euro 262 mil-
lion lower than at the end of the previous reporting period.
Within intangible assets, capitalised development costs
went down by 2.7 % to euro 4,934 million. Development
costs recognised as assets during the year under report
amounted to euro 1,087 million (– 11.2 % ), equivalent to a
capitalisation ratio of 44.4 % (2008: 42.7 % ). The lower
level of additions to capitalised development costs in 2009
was attributable cost and process efficiencies during the
series development phase. The corresponding amortisa-
tion expense was euro 1,226 million (2008: euro 1,185 mil-
lion).
The carrying amount of property, plant and equipment
in-
creased slightly by 0.8 % to euro 11,385 million. Capital
expenditure of euro 2,334 million was 18.5 % lower than
in the previous year. The main focus was on product in-
vestments for production start-ups and infrastructure im-
provements. Depreciation on property, plant and
equip-
ment totalled euro 2,260 million (– 4.8 %). Balances
brought forward for subsidiaries being consolidated for
the first time amounted to euro 48 million. Total capital ex-
penditure as a percentage of revenues was 6.8 % (2008:
7.9 % ).
Leased products decreased by euro 1,551 million or
7.9 % . Excluding the effect of exchange rate fluctuations,
leased products would have decreased by 7.7 % . The
decrease was attributable to the lower volume of new
lease business in 2009 and the impact of
an exceptional
item in 2008.
The carrying amount of other investments decreased by
28.0 % to euro 232 million, mainly reflecting the sale of
the BMW Sauber Group and the first-time inclusion of pre-
viously unconsolidated subsidiaries.
Receivables from sales financing were up by 6.6 % to
euro 40,594 million due to higher business volumes. Of
this amount, retail customer and dealer financing
ac-
counted for euro 31,971 million (+ 8.5 %) and finance
leases accounted
for euro 8,623 million (+ 0.3 % ).
Inventories decreased by euro 735 million or 10.1 % to
euro 6,555 million as a result of the higher sales volume in
the fourth quarter 2009 and lower inventories of goods
for
resale and work in progress.
Trade receivables were 19.4 % lower than at 31 December
2008.
Financial assets decreased by 7.4 % to euro 4,734 million
mainly as a result of the expiry in 2009 of currency deriva-
tives with positive fair values.
Liquid funds increased by 16.1 % to euro 9,415 million.
Within that item, marketable securities and investment
fund shares rose by euro 995 million. Liquid funds com-
prise cash and cash equivalents as well as marketable
securities and investment fund shares (the last two items
reported as financial assets).
Cash and cash equivalents went up by euro 313 million to
euro 7,767 million.
On the equity and liabilities side of the balance sheet,
equity decreased by euro 358 million to euro 19,915 mil-
lion. This was primarily a result of the payment of the
dividend (euro 197 million), actuarial losses on pension
obligations due to lower interest rates and a changed as-
sumption for future inflation rates, totalling euro 1,198 mil-
lion.
Group equity increased due to translation differences
(+ euro 318 million), the fair value measurement of
deriva-
tive financial instruments (+ euro 295 million), the fair
value measurement of marketable securities (+ euro 4 mil-
lion) and the net profit for the period (+ euro 210 million).
Deferred taxes on fair value gains and losses recognised
directly in equity increased equity by euro 190 million.
Treasury shares (preferred stock) held at the end of the
previous financial year were issued to employees in 2009
in conjunction with an employee share scheme, increas-
ing
equity by euro 10 million. In addition, the Authorised
Capital created at the Annual General Meeting held on
14 May 2009 was partially used during the financial year
under report to issue shares of preferred stock to employees,
increasing subscribed capital by euro 1 million. An amount
of euro 10 million was transferred to capital reserves in
conjunction with this share capital increase. Other items
reduced equity by euro 1 million.