BMW 2006 Annual Report Download - page 52

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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 value added by the BMW Group in 2006
increased by 8.8% to euro 13,585 million.The
increase in comparison to the previous year was
attributable primarily to the higher level of revenues.
The increase in gross valued added, at 10.8%, was
even more pronounced since it is not affected by
depreciation and amortisation, which are higher
than in the previous year.
The bulk of the net value added (54.9%) is
applied to employees. The amount applied to
providers of finance increased to12.0%.The govern-
ment
/public sector also accounted for 12.0 % (in-
cluding deferred taxes). The proportion of net value
added applied to shareholders, at 3.4%, was similar
to the previous year’s level. The remaining propor-
tion of net value added (17.7 %) will be retained in
the Group to finance future operations. In absolute
terms, this amount increased by 32.4 %.
51