BMW 2005 Annual Report Download - page 50

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employee-related obligations. By contrast, provisions
for other obligations decreased by 17.4%, mainly
as result of the above-mentioned reversal of a pro-
vision relating to the Rover disengagement. The
reversal is reported within the Reconciliations seg-
ment.
Deferred tax liabilities went up by 10.8% to euro
2,522 million, mainly as result of the higher level of
leased-out products in the USA which are depreci-
ated more quickly for tax purposes than for IFRS
purposes. Currency factors also played a role.
Financial liabilities increased by 12.1% to euro
34,668 million. Within financial liabilities, bonds in-
creased by 21.8% to euro 15,162 million, mainly as
a result of the higher volume of the medium term
note programme and of other bonds. Liabilities from
customer deposits (banking) also increased sharply,
rising by 25.3% to euro 6,392 million.
Trade payables amounted to euro 3,544 million
and were thus 5.0% higher than one year earlier.
Other liabilities of euro 5,236million were 26.4%
above their level at the end of the previous year.
Within other liabilities, deferred income relating to
service and repair agreements increased sharply.
Subsequent events report
On 1 January 2006, the BMW Group acquired a
majority interest in Sauber Holding AG, Vaduz.
In conjunction with the share buy-back pro-
gramme, the BMW Group had, by 21 February
2006, acquired shares of common stock equivalent
to 3% of the share capital of BMW AG.
In conjunction with the exchangeable bond
re-
lating to the BMW Group’s investment in Rolls-Royce
plc, London, declared and notified exchange re-
quests had been received by the BMW Group from
investors by 21 February 2006 corresponding to
approximately 42% of the exchangeable bond.
Servicing the exchange requests by the delivery
of shares would have a positive effect on the BMW
Group’s earnings in 2006.
Apart from these items, no events have occurred
after the balance sheet date which could have a
major impact on the earnings performance, financial
position and nets assets of the BMW Group.
Value added statement
The value added statement shows the value of work
performed less the value of work bought in by the
BMW Group during the financial year. Depreciation
and amortisation, cost of materials and other ex-
penses are treated as bought-in costs in the value
added calculation. The allocation statement applies
value added to each of the participants involved in
the value added process. It should be noted that
the gross value added treats depreciation as a com-
ponent of value added which, in the allocation state-
ment, is treated as internal financing.
Net valued added by the BMW Group in 2005
increased by 2.2% to euro 12,486 million. The in-
crease was attributable to the higher level of rev-
enues. The increase in gross valued added, at 5.6%,
was even more pronounced since it is not affected
by
depreciation and amortisation, which were higher
than in the previous year.
The bulk of the net value added (58.5%) is
applied to employees, 2.5% up in absolute terms
compared to the previous year. The amount applied
to providers of funds also went up, rising by 27.6%
to give a proportion of 10.9%. The government/
public sector (including deferred tax liabilities of the
Group) accounted for 12.7%. The proportion of net
value added applied to shareholders, at 3.4%, was
similar to the previous year’s level. The remaining
proportion of net value added (14.5%) will be retained
in the Group to finance future operations. In ab-
solute terms, this is 0.4% lower than in the pre-
vious year.