BMW 2015 Annual Report Download - page 54

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18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
18 Business Model
20 Management System
23 Report on Economic Position
23 General and Sector-specific
Environment
27 Overall Assessment by Management
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
49 Results of Operations, Financial
Position and Net Assets
59 Comments on Financial Statements
of BMW AG
62 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
63 Outlook
68 Report on Risks and Opportunities
81 Internal Control System and Risk
Management System Relevant for the
Financial Reporting Process
83 Disclosures Relevant for Takeovers
and Explanatory Comments
87
BMW Stock and Capital Markets
Apart from issuing commercial paper on the money
market, the BMW Group’s financing companies also
issue bearer bonds. In addition, retail customer and
dealer financing receivables on the one hand and leas-
ing rights and obligations on the other are securitised
in the form of asset-backed securities (ABS) financing
arrangements. Financing instruments employed by the
Group’s in-house banks in Germany and the USA (e. g.
customer deposits) are also used as a supplementary
source of financing. Owing to the increased use of in-
ternational money and capital markets to raise funds,
the scale of funds raised in the form of loans from in-
ternational banks is relatively small.
Thanks to its good ratings and the high level of
accept-
ance it has on capital markets, the BMW Group was
again able to refinance operations during the financial
year 2015 on debt capital markets. In addition to the
issue of bonds and loan notes on the one hand and
private placements on the other, commercial paper was
also issued. Additional funds were raised via new secu-
ritised instruments and the prolongation of existing in-
struments. As in previous years, all issues were highly
sought after by both private and institutional investors.
In the course of 2015, the BMW Group issued eight euro
benchmark bonds with a total issue volume of € 6.75 bil-
Programme Amount utilised
in € billion
Euro Medium Term Notes 36.3
Australian Medium Term Notes 0.3
Commercial paper 5.6
lion on European capital markets. Bonds were also
issued in British pounds, US dollars, Australian dollars,
South Korean won and other currencies for a total
amount of € 6.35 billion.
Nine public ABS transactions were executed in 2015, in-
cluding three in the USA, two each in Germany and
China, and one each in Canada and France, with a total
volume equivalent to € 5.7 billion. Further funds were
also raised via new ABS conduit transactions in Canada,
Japan and Switzerland totalling € 1.1 billion. Other exist-
ing
transactions remained in place in various countries,
including the UK, South Korea, South Africa, Brazil and
Australia.
The regular issue of commercial paper also strengthens
the BMW Group’s financial basis. The following table
provides an overview of amounts utilised at 31 December
2015 in connection with the BMW Group’s money and
capital market programmes:
Liquid funds stood at a high level of € 11.4 billion at
31 December 2015. The BMW Group also has access to
a syndicated credit line of € 6 billion, with a term up to
October 2018. This credit line, which is provided by a
consortium of 38 international banks, had not been
utilised
at the end of the reporting period.
BMW Group – financial liabilities
in € million
Bonds 40,319
Asset-backed financing transactions 13,631
Liabilities from customer deposits (banking) 13,509
Liabilities to banks 12,720
Commercial paper 5,415
Derivative instruments 4,550
Other 1,539
Bonds
Asset-backed financing
transactions
Derivative instruments
Other
Liabilities to banks
Liabilities from customer
deposits (banking)
Commercial paper
BMW Group – financial liabilities
in € million
45,000
37,500
30,000
22,500
15,000
7,500
Maturity (years) within 1
between 1 and 5 later than 5
42,160 41,289 8,234