BMW 2006 Annual Report Download - page 40

39
stock. In the meantime, this instrument of employee
participation has spanned a timeframe of more
than 30 years.This successful programme will be
continued in 2007. As notified in the Federal
Gazette on 21 December 2006, up to 800,000
shares will be acquired during the course of 2007
for the purpose of issue to employees. As in the
past, the buy-back will be executed under the
leadership of a number of securities houses or
banks, which are able to determine the timing of
individual buy-backs independently of, and un-
influenced by, BMW AG.
Successful bond issues
In order to refinance the unabated high rate of growth
of the Financial Services segment, the BMW Group
increased its issuing activities with bonds and asset-
backed-security transactions (ABS) during 2006.
These issues were made by the group’s relevant
financing companies. The American capital market
was used primarily via ABS transactions and money
market instruments such as Commercial Paper.
In 2006, a benchmark bond of euro 1 billion
was placed on the European capital market. Bonds
were also issued in British pounds, US dollars and
Swiss francs.
The BMW Group was able to benefit from the
favourable conditions prevailing on the lending mar-
kets. Issue activities were aided by the BMW Group’s
policy of keeping the markets well informed and by
the above-average good ratings that the group en-
joys. As in previous years, financial terms and con-
ditions were particularly attractive in the euro region.
The bonds were highly sought after by institutional
and private investors alike. The strength of the
BMW Group’s three authentic premium brands is
therefore reflected in the global capital markets.
Scope of information for investors and analysts
continuously expanded
The continuous improvement in the quality of com-
munication with the financial markets was well ap-
preciated by market participants. In 2006, the BMW
Group’s investor relations team was judged to be
the best in the sector, winning first place in the Extel
Survey, published in summer 2006. Readers of the
investor magazine “Börse Online” judged the in-
vestor relations work of the BMW Group to be the
best of any DAX 30 company.
The internet plays a key role in the process of
communicating financial information. Within this
context, the on-going development of the BMW
Group’s investor relations website is of major sig-
nificance (www.bmwgroup.com/ir). Apart from finan-
cial publications and other important information
for shareholders, since 2005 it has been possible,
for example, to listen to quarterly conferences in
the form of audio podcasts. This service was widely
used during the period under report.
Increasing importance of sustainability as
analysis criterion for the stock markets
Business sustainability aspects are becoming in-
creasingly
important as an element of the BMW
Group’s capital market work. In addition to regular
capital market discussions focused on Socially
Responsible Investment (SRI), the BMW Group also
held SRI Roadshows in both London and Paris.
In September 2006, the BMW Group was again
included as sector leader in the Dow Jones Sus-
tainability Indexes.The BMW Group is therefore the
only enterprise in the sector to have been included
in this important group of indices for sustainable
investment for the eighth time in succession. For
the last five years, it has also been a member of the
Development in the value of a BMW stock investment in euro thousand
Investment of euro 10,000 at 1.1.1997, including dividends and proceeds from subscription rights, values at end of year
40
35
30
25
20
15
10
5
euro thousand
97
12.9
98
15.6
99
19.0
00
22.0
01
25.4
02
18.8
03
24.3
04
22.3
05
25.4
06
29.8