BMW 2007 Annual Report Download - page 158

156
148 Other Information
148 BMW AG Principal Subsidiaries
150 BMW Group 10-year Comparison
152 BMW Group Locations
154 Glossary
158 Index
160 Contacts
161 Financial Calendar
[Return on Assets BMW Group]
Profit before interest expense (expense from revers-
ing the discounting of pension obligations and of
other long-term provisions, sundry interest and simi-
lar
expenses) and tax as a percentage of the balance
sheet total.
[Return on Assets Financial Services]
Profit before tax as a percentage of operating assets.
[Return on Capital Employed]
Profit before financial result as a percentage of
capital employed. Capital employed is defined as
operating assets less non-interest bearing liabilities.
For this purpose, non-interest bearing liabilities
exclude non-interest bearing provisions and liabili-
ties.
[Return on sales]
Pre-tax: Profit before tax as a percentage of
revenues.
Post-tax: Profit as a percentage of revenues.
[Risk management]
An integral component of all business processes.
Following enactment of the Law on Control and
Transparency within Businesses (KonTraG), all
companies listed on a stock exchange in Germany
are required to set up a risk management system.
The purpose of this system is to identify risks at an
early stage which could have a significant adverse
effect on the assets, liabilities, financial position and
results of operations, and which could endanger the
continued existence of the company. This applies
in particular to transactions involving risk, errors in
accounting or financial reporting and violations of
legal requirements. The Board of Management is
required to set up an appropriate system, to docu-
ment that system and monitor it regularly with the
aid of the internal audit department.
[Sports Activity Vehicle]
The BMW X5 is the first-ever Sports Activity Vehicle –
a combination of a typical BMW sedan featuring
sporting and comfortable driving features on the
one hand, with far-reaching driving abilities in terrain
on the other. This creates a new market segment. In
2004, the BMW Group added another SAV, the
BMW X3, to its model range.
[Subscribed capital]
The share capital of a company is computed by
multiplying the nominal value of the shares by the
number of shares.
[Supplier relationship management]
Supplier relationship management (SRM) uses
f ocused procurement strategies to organise net-
worked supplier relationships, optimise processes
for supplier qualification and selection, ensure
the application of uniform standards throughout
the Group
and create efficient sourcing and
procurement processes along the whole value
added chain.
Other Information