BMW 2007 Annual Report Download - page 157

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[Free cash flow]
Free cash flow corresponds to the cash inflow from
operating activities of Industrial Operations less
the cash outflow for investing activities of Industrial
Operations.
[Gross margin]
Gross profit as a percentage of revenues.
[IASs]
International Accounting Standards.
[IFRSs]
International Financial Reporting Standards, intended
to ensure global comparability of financial reporting
and consistent presentation of financial statements.
The IFRSs are issued by the International Accounting
Standards Board and include the International
Accounting Standards (IASs), which are still valid.
[Internal financing]
Internal financing is calculated as the profit before
tax, adjusted for depreciation and amortisation and
significant non-cash items, less income tax paid.
[ISO 14001]
An internationally recognised standard for environ-
mental management systems.
[Operating cash flow]
Cash inflow from Industrial Operations.
[Preferred stock]
Stock which receives a higher dividend than com-
mon stock, but without voting rights.
[Principal subsidiaries]
Subsidiaries are those enterprises which, either
directly or indirectly, are under the uniform control of
the management of BMW AG or in which BMW AG,
either directly or indirectly
– holds the majority of the voting rights
– has the right to appoint or remove the majority of
the members of the Board of Management or
equivalent governing body, and in which BMW AG
is at the same time (directly or indirectly) a share-
holder
– has control (directly or indirectly) over another
enterprise on the basis of a control agreement or
a provision in the statutes of that enterprise.
[Production network]
The BMW Group production network consists
worldwide of 16 plants, six assembly plants and one
contract production plant. Within this network, the
plants supply one another with systems and com-
ponents and are all characterised by a high level of
productivity, agility and flexibility.
[Production Triangle MINI]
The three British plants (Hams Hall, Oxford and
Swindon) are jointly manufacturing the MINI – with
greater capacity levels, flexibility and efficiency.
The Hams Hall plant produces the new MINI petrol
engines; the Oxford plant remains responsible for
chassis construction, painting and assembly. The
Swindon plant produces the pressed panels and
chassis components.
[Rating]
Standardised evaluation of a company’s credit
standing which is widely accepted on the global
capital markets. Ratings are published by inde-
pendent rating agencies, e.g. Standard & Poor’s or
Moody’s, based on their analysis of a company.