BMW 2005 Annual Report Download - page 143

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[Principal subsidiaries]
Subsidiaries are those enterprises which, either
directly or indirectly, are under the uniform control of
the management of BMW AG or in which BMW AG,
either directly or indirectly
– holds the majority of the voting rights
– has the right to appoint or remove the majority of
the members of the Board of Management or
equivalent governing body, and in which BMW AG
is at the same time (directly or indirectly) a share-
holder
– has control (directly or indirectly) over another
enterprise on the basis of a control agreement or
a provision in the statutes of that enterprise.
[Production network]
The BMW Group production network consists
worldwide of 16 plants, five assembly plants and one
contract production plant. Within this network, the
plants supply one another with systems and com-
ponents and are all characterised by a high level of
productivity, agility and flexibility.
[Rating]
Standardised evaluation of a company’s credit
standing which is widely accepted on the global
capital markets. Ratings are published by inde-
pendent rating agencies e.g. Standard& Poor’s or
Moody’s based on their analysis of a company.
[Return on Assets BMW Group]
Profit before interest expense (expense from revers-
ing the discounting of pension obligations and of
other non-current provisions, other interest and simi-
lar
expenses) and tax as a percentage of the balance
sheet total.
[Return on Assets Financial Services]
Profit before tax as a percentage of operating assets.
[Return on Capital Employed]
Profit before financial result as a percentage of
capital employed. Capital employed is defined as
operating assets less non-interest bearing liabilities.
For this purposes, non-interest bearing liabilities ex-
clude non-interest bearing provisions and liabilities.
[Return on sales]
The ratio of the profit from ordinary activities to
Group revenues. For segment reporting purposes,
the computation is based on the profit before finan-
cial result.
[Risk management]
An integral component of all business processes.
Following enactment of the Law on Control and
Transparency within Businesses (KonTraG), all
companies listed on a stock exchange in Germany
are required to set up a risk management system.
The purpose of this system is to identify risks at an
early stage which could have a significant adverse
effect on the assets, liabilities, financial position and
results of operations and which could endanger the
continued existence of the company. This applies
in particular to transactions involving risk, errors in
accounting or financial reporting and violations of
legal requirements. The Board of Management is
required to set up an appropriate system, to docu-
ment that system and monitor it regularly with the
aid of the internal audit department.
[Sports Activity Vehicle]
The BMW X5 is the first-ever Sports Activity Vehicle
- a combination of a typical BMW sedan featuring
sporting and comfortable driving features on the
one hand, with far-reaching driving abilities in terrain
on the other.This creates a new market segment.
In 2004, the BMW Group added another SAV, the
BMW X3, to its model range.
[Subscribed capital]
The share capital of a company is computed by
multiplying the nominal value of the shares by the
number of shares.
Other Information 134
BMW AG Principal Subsidiaries 134
BMW Group10-year Comparison 136
BMW Group Locations 138
Glossary 140
Index 144
Contacts 146
Financial Calendar 147