BMW 2007 Annual Report Download - page 14
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12 Group Management Report
10 Group Management Report
10 A Review of the Financial Year
13 General Economic Environment
17 Review of Operations
41 BMW Stock and Bonds
44 Disclosures relating to Takeover
Regulations and Explanatory Report
47 Financial Analysis
47 – Internal Management System
49 – Earnings Performance
51 – Financial Position
52 – Net Assets Position
55 – Subsequent Events Report
55 – Value Added Statement
57 – Key Performance Figures
58 – Comments on BMW AG
62 Risk Management
68 Outlook
In addition, development expenditure of euro 1,333
million was recognised as assets in accordance
with IAS 38 (2006: euro 1,536 million/– 13.2 %).
The decrease in capitalised development costs
was due to the lower volume of series development
projects required to be recognised as assets. The
proportion of development costs recognised as
assets went down from 47.9 % in 2006 to 42.4 % in
2007.
The capital expenditure ratio (i.e. the ratio of
capital expenditure to revenues) accordingly de-
creased in 2007 to 7.6 % (2006: 8.8 %).
Strategic realignment of the BMW Group
announced
At the end of September 2007, the BMW Group
took on a new strategic direction. Up to the year
2020, the BMW Group intends to strengthen its
position within the global premium automobile mar-
ket by increasing volume of sales to more than two
million units per annum. The mission statement is
clearly defined: the BMW Group is the world’s lead-
ing provider of premium products and premium
services for individual mobility. This means that in
addition to striving for organic growth in the core
line of business, the BMW Group will also engage in
new and profitable areas of activity throughout the
automotive life-cycle and all the way along the value-
added chain. At the same time, the BMW Group
will invest substantially in future technologies, new
vehicle concepts and pioneering drive systems.
The new strategy, which has been given the name
Number ONE, is aimed at profitability and increasing
value over the long term. In order to achieve these
objectives, two new areas of responsibility have been
created within the Board of Management for the
Corporate and Brand Development and Purchas-
ing and Supplier Network divisions.