BMW 2008 Annual Report Download - page 153

154
148 Other Information
148 BMW AG Principal Subsidiaries
150 BMW Group Ten-year Comparison
152 BMW Group Locations
154 Glossary
156 Index
158 Index of graphs
159 Financial Calendar
160 Contacts
Glossary
ACEA
Abbreviation for “Association des Constructeurs Européens
d’Automobiles” (European Automobile Manufacturers
Association).
Common stock
Stock with voting rights (cf. preferred stock).
Cost of materials
Comprises all expenditure to purchase raw materials and
supplies.
DAX
Abbreviation for “Deutscher Aktienindex”, the German
Stock Index. The index is based on the weighted market
prices of the  largest German stock corporations (by
stock market capitalisation).
Deferred taxes
Accounting for deferred taxes is a method of allocating tax
expense to the appropriate accounting period.
Derivatives
Financial products, whose measurement is derived princi-
pally from market price, market price fluctuations and ex-
pected market price changes of the underlying instrument
(e. g. indices, stocks or bonds).
DJSI World
Abbreviation for “Dow Jones Sustainability Index World”.
A family of indexes created by Dow Jones and the Swiss
investment agency SAM Sustainability Group for com-
panies with strategies based on a sustainability concept.
The BMW Group has been one of the leading companies
in the DJSI since .
EBIT
Abbreviation for “Earnings Before Interest and Taxes”. The
profit before income taxes, minority interest and financial
result.
EBITDA
Abbreviation for “Earnings Before Interest, Taxes, Depre-
ciation and Amortisation”. The profit before income taxes,
minority interest, financial result and depreciation / amor-
tisation.
Effectiveness
The degree to which offsetting changes in fair value or cash
flows attributable to a hedged risk are achieved by the
hedging instrument.
Efficient Dynamics
The aim of Efficient Dynamics is to reduce consumption
and emissions whilst simultaneously increasing dynamics
and performance. This involves a holistic approach to
achieving optimum automobile potential, ranging from
efficient engine technologies, lightweight construction
and comprehensive energy and heat management inside
the vehicle.
Equity ratio
The proportion of equity (= subscribed capital, reserves,
accumulated other equity and minority interest) to the
balance sheet total.
Free cash flow
Free cash flow corresponds to the cash inflow from operat-
ing activities of the Automobiles segment less the cash
outflow for investing activities of the Automobiles segment.
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 con-
sistent 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.
ISO 
An internationally recognised standard for environmental
management systems.
Operating cash flow
Cash inflow from the Automobiles segment.
Preferred stock
Stock which receives a higher dividend than common
stock, but without voting rights.