BMW 2007 Annual Report Download - page 53

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3,232 million despite the adverse factors described
above.
Revenues of the Motorcycles segment fell by
2.9 %. Ongoing efficiency improvements neverthe-
less allowed the segment result to improve. The
segment profit before tax, at euro 71 million, im-
proved by 7.6 % compared to the previous year.
The Financial Services segment was again able
to expand its business successfully in 2007, enabling
the segment profit to be improved by 8.5 % on a
year-on-year comparison. Reconciliations to the
Group profit from ordinary activities were again neg-
ative in 2007, with a net expense of euro 173 million;
this represented a deterioration of euro 534 million
compared to the previous year. This was largely due
to the higher gain recognised in the previous year on
the settlement of the exchangeable bond on shares
in Rolls-Royce plc, London, and to fair value losses
recognised on derivative financial instruments.
Financial Position
The Group cash flow statement shows the sources
and applications of cash flows for the financial years
2007 and 2006, classified into cash flows from oper-
ating, investing and financing activities.
Cash flows from operating activities are deter-
mined indirectly starting with the Group net profit. By
contrast, cash flows from investing and financing ac-
tivities are based on actual payments and receipts.
Cash and cash equivalents in the cash flow state-
ment correspond to the amount disclosed in the
balance sheet.
Operating activities of the BMW Group gener-
ated a positive cash flow of euro 11,794 million in
2007, an increase of euro 1,814 million or 18.2 %
compared to the previous year. Changes in net cur-
rent assets during 2007 generated a cash inflow of
euro 204 million (2006: euro 174 million). The cash
outflow for investing activities amounted to euro
17,248 million and was therefore euro 3,578 million
higher than in 2006. Capital expenditure for intangi-
ble assets and property, plant and equipment result-
ed in the cash outflow for investing activities de-
creasing by euro 46 million on a year-on-year
comparison. The cash outflow for net investments
in financial services activities rose steeply and was
euro 3,604 million higher than in the previous year.
Financing activities in 2007 generated a positive
cash flow of euro 6,557 million (2006: euro 3,323
million). Cash inflows from the issue of bonds to-
Revenues by segment
in euro million 2007 2006
Automobiles 53,818 47,767
Motorcycles 1,228 1,265
Financial Services 13,940 11,079
Reconciliations – 12,968 – 11,112
Group 56,018 48,999
Profit before tax by segment
in euro million 2007 2006
Automobiles 3,232 3,012
Motorcycles 71 66
Financial Services 743 685
Reconciliations – 173 361
Group 3,873 4,124