BMW 2006 Annual Report Download - page 48

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47
Operating activities of the BMW Group generated
a positive cash flow of euro 9,980 million in 2006,
down by euro 711 million or 6.7% compared to one
year earlier. Changes in net current assets during
2006 resulted in a net cash outflow of euro 49 million
(2005: net inflow of euro 923 million). The net cash
outflow was due to the higher level of inventories.
The cash outflow for investing activities
amounted to euro 13,670 million and was therefore
euro 1,707 million higher than in 2005. The marked
increase in cash outflow for investing activities was
due, on the one hand, to increased capital expendi-
ture in 2006 and, on the other, to the receipt, in 2005,
of the final sales price instalment of euro 1,000 million
from the sale of Land Rover. Capital expenditure on
intangible assets and property, plant and equipment
resulted in the cash outflow for investing activities
increasing by euro 438 million compared to the pre-
vious year. The cash outflow for net investments in
financial services activities also rose steeply and was
euro 505 million higher than in the previous year.
Financing activities in 2006 generated a
posi-
tive cash flow of euro 3,323 million (2005: euro
699
million). Cash inflows from the issue of bonds
totalled euro 6,876 million (2005: euro 5,819 million),
whilst cash outflows to repay bonds totalled euro
4,491 million (2005: euro 3,432 million). The dividend
payment made during the financial year 2006 was
euro 419 million. The share buy-back programme
involved a cash outflow in 2006 of euro 253 million.
73.0% (2005: 89.4 %) of the cash outflow for
investing activities was covered by the cash inflow
from operating activities.
The cash flow statement for Industrial opera-
tions shows that the cash inflow from operating
activities exceeded the cash outflow for investing
activities by 21.6 % (2005:150.7%). By contrast, the
cash flow statement for Financial operations shows
that, due to the high level of capital expenditure on
leased products and receivables from sales financing,
the cash inflow from operating activities did not cover
the cash outflow for investing activities. The short
fall was 50.2% (2005: 52.5%).
After adjustment for the effects of exchange-
rate fluctuations and changes in the composition of
the BMW Group which resulted in a positive amount
of euro 82 million (2005: euro 66 million), the various
cash flows resulted in a decrease in cash and cash
Change in cash and cash equivalents
in euro million
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
–1,000
–2,000
Cash and cash
equivalents
31.12.2005
1,621
Cash inflow from
operating activities
+9,980
Cash outflow from
investing activities
–13,670
Cash inflow from
financing activities
+ 3,323
Currency trans-
lation, changes in
group composition
+82
Cash and cash
equivalents
31.12.2006
1,336