BMW 2005 Annual Report Download - page 11
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10
dance with IAS 38, so that total additions in 2005
amounted to euro 3,993 million, equivalent to a de-
crease of 8.1% compared to the previous year.
The increase in capitalised development costs
resulted from the higher volume of series develop-
ment projects carried out during the year under
report. The proportion of development costs recog-
nised as assets in 2005 was 44.8% (2004: 39.8%).
Including capitalised development costs, the
capital expenditure ratio in 2005 (i.e. the ratio of
capital expenditure to group revenues) was 8.6%
(2004: 9.8%).
The main emphasis of capital expenditure in
2005 was, once again, the continued expansion of
the BMW Group’s worldwide production network
and of the sales network. As well as further con-
struction work at the BMW Leipzig plant, extensive
measures were taken, and up-front expenditure in-
curred, to expand capacities for new models going
into production at existing plants.
In its financial statements for 2005, the BMW Group has brought the computation of cash flow for external reporting purposes into line with standards normally applied on the
financial markets. In future, the BMW Group will disclose both the figure for the cash flow as defined here and operating cash flow; the latter corresponds to the cash flow from
industrial operations reported in the cash flow statement. The figures for simplified cash flow computation as disclosed previously and of operating cash flow are shown in the
ten-year comparison summary on pages 136 and 137. An exact definition of the two cash flow terms is also given in the glossary on page 140.
Group Management Report 8
A Review of the Financial Year 8
The General Economic Environment 11
Review of operations 15
BMW Stock in 2005 38
Financial Analysis 41
--Internal Management System 41
--Earnings performance 42
--Financial position 45
--Net assets position 46
--Subsequent events report 49
--Value added statement 49
--Key performance figures 51
--Comments on BMW AG 52
Risk Management 56
Outlook 60
BMW Group capital expenditure and cash flow
in euro million
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
05
Capital expenditure
01
3,993
5,602
3,516
4,202
02
4,042
4,374
03
4,245
4,490
4,347
Cash flow
*adjusted for new accounting treatment of pension obligations
04
5,187*