BMW 2005 Annual Report Download - page 101

100
The Group Statement of Changes in Equity is shown
on page 68.
Number of shares issued
At 31 December 2005, common stock issued by
BMW AG is divided, as at the end of the previous
year, into 622,227,918 shares with a par-value of one
euro. Preferred stock issued by BMW AG is divided
into 52,196,162 shares with a par-value of one euro,
also unchanged from the previous year. Unlike the
common stock, no voting rights are attached to the
preferred stock. All of the company’s stock is issued
in the form of bearer shares. Preferred stock bears
an advance profit (additional dividend) of euro 0.02
per share. 708,025 of the shares of preferred stock
are only entitled to receive dividends with effect from
the beginning of the financial year 2006.
During the financial year 2005, BMW Group ac-
quired 708,025 of its own (treasury) shares of pre-
ferred stock at an average price of euro 28.68 per
share; these shares were issued to employees at a
reduced price of euro 18.99 per share in conjunction
with an employee share scheme. As a result of
the repurchase of shares of preferred stock and their
subsequent issue, the preferred stock portion of
share capital remained unchanged at euro 52 million.
At the Annual General Meeting of BMW AG on
12 May 2005, the shareholders authorised the
Board of Management to acquire treasury shares
via the stock exchange, up to a maximum of 10% of
the share capital in place at the date of the resolu-
tion and to withdraw those shares for circulation
without any further resolution by the Annual General
Meeting.The authorisation for the buy-back remains
valid until 11 November 2006.
In conjunction with this authorisation, the Board
of Management of BMW AG resolved on 20 Septem-
ber 2005 to put a programme in place to buy-back
shares via the stock exchange. Under this programme,
up to 3% of common stock will be acquired.The
extent to which BMW AG will acquire more than this
level as part of the currently valid authorisation, has
not yet been decided.
The shares will be acquired with the purpose of
withdrawing them from circulation and reducing
share capital.
Up to 31December 2005, a total of 13,488,480
treasury shares of common stock had been bought
back via the stock exchange at an average price
per share of euro 37.49 and a total acquisition cost
of euro 506 million. The number of shares so pur-
chased corresponds to 2% of the share capital.The
shares are held by BMW AG at the balance sheet
date. Equity has been reduced by the buy-back
amount.
Transaction costs amounted to approximately
euro 560 thousand (net of deferred taxes) and have
been recognised directly in equity.
[31]Equity
[30]Cash and cash
equivalents
[29]Trade receivables
At 31 December 2005, inventories measured at
their net realisable value amounted to euro 268 mil-
lion (2004: euro 437 million) and are included in
total inventories of euro 6,527 million (2004: euro
6,467 million). Write-downs to net realisable value
amounting to euro 10 million (2004: euro 49 million)
were recognised in 2005. Amounts recognised as
income from the reversal of write-downs were not
significant.
Cash and cash equivalents of euro 1,621million
(2004: euro 2,128 million), comprising cash on
hand and at bank, have a maturity of under three
months.
Cash and cash equivalents include euro 43 mil-
lion assigned as collateral to Deutsche Treuinvest
Stiftung, Frankfurt am Main, to secure obligations re-
lating to pre-retirement part-time work arrangements.
Trade receivables amounting to euro 2,135 million
(2004: euro1,868 million) are all due within one year
(2004: euro1 million with a maturity of more than one
year).
Group Financial Statements 62
Income Statements 63
Balance Sheets 64
Cash Flow Statements 66
Group Statement of
Changes in Equity 68
Statement of Income and Expenses
recognised directly in Equity 69
Notes 70
--Accounting Principles
and Policies 70
--Notes to the Income Statement 81
--Notes to the balance sheet 90
--Other Disclosures 114
--Segment Information 121
Auditors’ Report 125