BMW 2005 Annual Report Download - page 44

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43
the increase was, however, lower than that of rev-
enues. They represented 10.2% of revenues, and
were therefore 0.3 percentage points lower on a
year-on-year comparison.
Research and development costs were 5.6%
higher than in 2004, unchanged as a percentage of
revenues at 5.3%. Research and development costs
include amortisation of capitalised development
costs amounting to euro 745 million (2004: euro
637 million). Total research and development costs
amounted to euro 3,115 million (2004: euro 2,818
million). This figure comprises research costs, de-
velopment costs not recognised as assets and capi-
talised development costs. The research and de-
velopment expenditure ratio for 2005 was 6.7%
(2004: 6.4%).
Depreciation and amortisation of property, plant
and equipment and intangible assets included in
cost of sales, sales and administrative costs and re-
search and development costs amounted to euro
3,025 million (2004: euro 2,672 million).
The positive net amount from other operating
income and expenses fell by 23.0% compared
to the previous year. Other operating income de-
creased primarily as a result of lower income from
the reversal of write-downs, reflecting lower credits
from unwinding interest, and the decrease in sundry
operating income. By contrast, income from the
reversal of provisions increased, partly as the result
of reversing a provision relating to the Rover disen-
gagement. The income from this release is included
within the Reconciliations segment. Other operating
– All brands achieve new sales volume highs
– Adverse external factors hold down reported
earnings
– Group and segment earnings still at high level
–
Operating cash flow well ahead of the previous year
Revenues 46,656 44,335
Cost of sales – 35,992 – 34,040
Gross profit 10,664 10,295
Sales and administrative costs – 4,762 – 4,648
Research and development costs – 2,464 – 2,334
Other operating income and expenses 355 461
Profit before financial result 3,793 3,774
Financial result – 506 – 191
Profit before tax 3,287 3,583
Income taxes – 1,048 – 1,341
Net profit 2,239 2,242
in euro million 1.1. to 1.1. to
31.12. 2005 31.12. 2004 *
Group Income Statement
*adjusted figures