BMW 2003 Annual Report Download - page 125

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
12 A Review of the Financial Year
29 Outlook
30 Financial Analysis
44 Risk Management
047 BMW Stock
050 Corporate Governance
054 Group Financial Statements
118 BMW AG Principal Subsidiaries
120 BMW Group10-year Comparison
122 BMW Group Locations
124 Glossary, Index
124
[ACEA]
Abbreviation for “Association des Constructeurs
Européens d’Automobiles”. European automobile
manufacturers’ association.
[Active Steering]
An electronically controlled system that adapts
steering transmission to current driving speed. In the
low to medium speed range, Active Steering makes
steering transmission more direct, reducing steering
effort and significantly enhancing the car’s handling,
for example, when parking or taking bends. At high
velocity, the steering reacts more indirectly, ensuring
a high level of directional stability.
[ALC]
Adaptive Light Control ( ALC )directs two variable
headlights at the road ahead. This gives the driver
a better view of the road when approaching and
driving round bends. When approaching road junc-
tions, the light beam is broadened to provide better
visibility of the crossroads and pedestrian paths.
[Cash flow]
The difference between cash inflows and cash out-
flows for a specific period. Cash flow can be defined
in a variety of ways. The cash flow referred to in the
BMW Group Annual Report is computed as follows:
Net profit/loss
+depreciation and amortisation on intangible
assets and property, plant and equipment
+/– increase/decrease in pension provisions
=Cash flow
[CleanEnergy]
CleanEnergy is the name of the BMW Group’s initia-
tive for a sustainable energy strategy. The aim is to
develop products which are based on the idea of
sustainability and which embrace the responsibility
for the future. For this reason, the BMW Group will
support in the long term a hydrogen economy based
on regenerative energy sources such as hydro-elec-
tric
power, wind power and solar energy. As a result,
the BMW Group favours the
hydrogen-powered
combustion engine, since it best fulfils customer
demands in terms of power, dynamic
performance,
costs and sophistication.
[Common stock]
Stock with voting right (cf. preferred stock).
[ConnectedDrive]
ConnectedDrive is the term used by the BMW Group
to describe the interaction of the driver, the car and
the surrounding traffic on the road. The objective
is to prepare as much information as required and
desired for the driver, offering him individual service
customised to his requirements. The three areas
of ConnectedDrive – telematics services, online
services, and driver assistance systems – make
motoring more comfortable, safer and efficient.
[Cost of materials]
Comprises all expenditure to purchase raw materials
and supplies.
[Current assets]
All assets which are not held to benefit operations on
a long-term basis are classified as current. The follow-
ing items are classified as current assets:
Inventories
+Trade receivables
+Receivables from sales financing
+ Other receivables
+ Marketable securities
+ Cash and cash equivalents
= Current assets
[DAX]
Abbreviation for “Deutscher Aktien Index”, the Ger-
man
Stock Index.The index is based on the weighted
market prices of the 30 largest German stock cor-
porations (by stock market capitalisation).
[Deferred taxes]
Accounting for deferred taxes is a method of
allocating tax expense/benefit to the appropriate
accounting period.
[Derivatives]
Financial products, whose measurement is derived
principally from market price, market price fluctua-
tions and expected market price changes of the
underlying instrument (e.g. indices, stocks or bonds).
Glossary