BMW 2010 Annual Report Download - page 55

53 GROUP MANAGEMENT REPORT
in euro million 31. 12. 2010 31. 12. 2009
Cash and cash equivalents 5,585 4,331
Marketable securities and investment funds 1,134 1,129
Intragroup net financial receivables 5,690 8,272
Financial assets 12,409 13,732
Less: external financial liabilities* –1,123 – 4,770
Net financial assets 11,286 8,962
* excluding derivative financial instruments
Net assets position
The Group balance sheet total increased by euro 6,914
million (+6.8%) to stand at euro 108,867 million at 31
December 2010. Adjusted for changes in exchange rates,
the balance sheet total would have increased by 1.7%.
The main factors behind the increase on the assets side
of the balance sheet were receivables from sales financing
(+ 11.8%), inventories (+18.5%), other assets (+16.8%)
and trade receivables (+25.4%). By contrast, decreases were
recorded for intangible assets (–6.5%) as well as for cash
and cash equivalents (– 4.3%). On the equity and liabili-
ties side of the balance sheet, the increase was due to the
rise in equity (+16.0%), other liabilities (+25.2%), trade
payables (+39.4%) and financial liabilities (+1.7%). Pen-
sion provisions decreased by 47.4%.
At euro 5,031 million, intangible assets were euro 348 mil-
lion
lower than at the end of the previous reporting
period. Within intangible assets, capitalised development
costs decreased by euro 309 million to euro 4,625 mil-
lion. Development costs recognised as assets during the
year under report amounted to euro 951 million (–12.5%),
equivalent to a capitalisation ratio of 34.3% (2009: 44.4%).
The lower level of additions to capitalised development
costs in 2010 was due to cost and process efficiencies
during the series development phase. The corresponding
amortisation expense was euro 1,260 million (2009: euro
1,226 million).
Property, plant and equipment increased slightly (+0.4%)
to euro 11,427 million. Capital expenditure of euro 2,235
million was 4.2% lower than in the previous year (2009:
euro 2,334 million). The main focus was on product invest-
ments for production start-ups and infrastructure improve-
ments.
Depreciation on property, plant and equipment
totalled euro 2,303 million (+1.9%). Balances
brought
forward for subsidiaries being consolidated for
the first
time amounted to euro 14 million. Total capital expendi-
ture as a percentage of revenues was 5.4% (2009: 6.8%).
Leased-out products decreased by euro 182 million or
1.0%. Excluding the effect of exchange rate fluctuations,
leased-out products would have decreased by 4.8 %.
Other investments fell by 23.7% to euro 177 million,
mainly as a result of impairment losses recognised on
investments in non-consolidated subsidiaries.
Receivables from sales financing were up by 11.8% to
euro 45,365 million due to higher business volumes. Of
this amount, customer and dealer financing accounted
for euro 35,460 million (+10.9%) and finance leases ac-
counted for euro 9,905 million (+14.9%).
Inventories rose by euro 1,211 million or 18.5% to euro
7,766 million. Adjusted for exchange rate factors, the
increase would have been 13.1%. The increase reflects
the effect of stocking-up in conjunction with the intro-
duction
of new models and the expansion of business
operations.
Trade receivables were 25.4% higher than at 31 Decem-
ber 2009.
Financial assets increased by 8.3% to euro 5,129 million,
mainly as a result of the higher fair values of derivative
portfolios.
Net financial assets of the Automobiles segment comprise the following: