BMW 2008 Annual Report Download - page 14

15 Group Management Report
Dividend lower than one year earlier
The Board of Management and the Supervisory Board will
propose to shareholders at the Annual General Meeting
that the unappropriated profit available for distribution in
BMW AG, amounting to euro  million, be used to pay a
decreased dividend of euro . for each share of common
stock (: euro . /– .  ) and a decreased dividend of
euro . for each share of preferred stock (: euro
. /– .  ). The proposed reduction in the dividend for the
financial year  reflects the earnings performance.
The
distribution rate for  would be .  : . .
Capital expenditure down on previous year
Capital expenditure, at euro , million (: euro ,
million / – .  ), was lower than in the previous year. The
main focus of capital expenditure was on product invest-
ments in conjunction with the production start-ups of new
models such as the BMW 7 Series, the Z4, the X1 and
the MINI Convertible as well as infrastructure investments.
The BMW Group invested euro , million in property,
plant and equipment and other intangible assets + .  in
. In addition, development expenditure of euro ,
million was recognised as assets in accordance with IFRS
(: euro , million / – .  ). The proportion of develop-
ment costs recognised as assets, at .  , was at a similar
level to the previous year : . .
The capital expenditure ratio (i. e. the ratio of capital ex-
penditure to Group revenues) increased slightly in 
to .  : .  as a result of the lower level of
revenues.
BMW Group sells majority shareholding in Cirquent
With effect from  September , the BMW Group sold
.  of its shares in the IT consultancy company Cirquent
(formerly Softlab) to the Japanese company NTT Data.
The BMW Group continues to hold .  of the shares.
The remaining .  of shares are held by Cirquent itself.
BMW Group Capital expenditure and operating cash flow
in euro million
7,000
6,000
5,000
4,000
3,000
2,000
1,000
04 05 06 07 08
Capital
expenditure 4,347 3,993 4,313 4,267 4,204
Operating
cash flow1 6,157 2 6,184 5,373 6,246 4,471
 reported in the cash flow statement up to  as cash inflow from operating activities
of Industrial Operations and from  as cash inflow from operating activities of the
Automobiles segment
 adjusted for new accounting treatment of pension obligations
BMW Group Revenues by region
in euro million
60,000
52,500
45,000
37,500
30,000
22,500
15,000
7,500
04 05 06 07 08
Rest of Europe 10,574 12,141 13,226 16,450 15,780
North America 10,205 10,957 11,779 12,161 12,461
Germany 11,961 11,001 10,601 11,918 10,739
Asia / Oceania 4,915 5,538 6,200 7,353 7,523
United Kingdom 5,249 5,125 5,214 5,945 4,913
Other markets 1,431 1,894 1,979 2,191 1,781
Total 44,335 46,656 48,999 56,018 53,197
Rest of Europe
North America
Germany
Asia / Oceania
United Kingdom
Other markets