BMW 2005 Annual Report Download - page 120

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The cash inflow from operating activities includes the following cash flows in accordance with IAS 7 para-
graphs 31 and 35:
In accordance with IAS 24 (Related Party Disclo-
sures), related individuals or entities which have the
ability to control the BMW Group or which are con-
trolled by the BMW Group, must be disclosed unless
such parties are not already included in the consoli-
dated financial statements as consolidated compa-
nies. Control is defined as ownership of more than
one half of the voting power of BMW AG or the power
to direct, by statute or agreement, the financial and
operating policies of the management of the Group.
In addition, the disclosure requirements of IAS 24
also cover transactions with associates and with
parties which have the ability to exercise significant
influence over the financial and operating policies of
the
BMW Group. This also includes close relatives
and intermediaries. Significant influence over the
financial and operating policies of the Group can
arise when a party holds 20 % or more of the shares
of
BMW AG or is a member of the Board of Manage-
ment or Supervisory Board of
BMW AG .
For the financial year 2005, the disclosure re-
quirements contained in
IAS 24 only affect the BMW
Group with regard to business relationships with
joint ventures and other equity investments as well
as with members of the Board of Management and
Supervisory Board of
BMW AG .
Transactions of BMW Group companies with
joint ventures and other equity investments – mainly
BMW Brilliance Automotive Ltd., Shenyang (50%),
TRITEC Motors Ltda., Campo Largo (50%), F.A.S.T.
Gesellschaft für angewandte Softwaretechnologie
mbH, Munich (50%), and ZNF Maschinenfabrik
Spandau GmbH, Berlin (49%) – all arise in the nor-
mal course of activities of those companies and are
based on arm’s length principles.
Stefan Quandt is a shareholder and Deputy
Chairman of the Supervisory Board of
BMW AG .
He is also sole shareholder and Chairman of the
Supervisory Board of DELTON
AG , Bad Homburg
v.d.H., which, via its subsidiaries in the Thiel Group,
performed logistics services for the
BMW Group
during the financial year 2005. In addition, compa-
nies of the DELTON Group purchased vehicles from
the
BMW Group. These service and sale contracts
are not material for the BMW Group and are made,
without exception, on the basis of arm’s length prin-
ciples.
Susanne Klatten is a shareholder and member
of the Supervisory Board of
BMW AG , and also a
shareholder and Deputy Chairman of the Super-
visory Board of Altana
AG , Bad Homburg v.d.H.
which purchased vehicles from the
BMW Group
during the financial year 2005. These service and
sale contracts are not material for the
BMW Group
and are made, without exception, on the basis of
arm’s length principles.
With the exception of these related party trans-
actions, companies of the
BMW Group did not enter
into any significant transactions with members of
the Board of Management or Supervisory Board of
BMW AG or with companies in whose representative
bodies those persons are represented. The same
applies to close members of the families of those
persons.
in euro million 2005 2004
Interest received 283 243
Interest paid 240 267
Dividends received 28 86
Income taxes paid 604 736
[41]Related party
relationships