BMW 2008 Annual Report Download - page 54

55 Group Management Report
Financial liabilities increased by .  in conjunction with
the refinancing of the Group’s financial services business.
Within financial liabilities, bonds increased by .  to euro
, million. Liabilities to banks, asset-backed financing
obligations and deposit liabilities were all also up.
Trade payables amounted to euro , million and were
thus .  lower than one year earlier.
Other liabilities went up by .  to euro , million,
mainly reflecting increases in deferred income relating to
service and repair contracts, deferred income from lease
financing and the valuation of financial instruments.
Compensation Report
The compensation of the Board of Management comprises
fixed and variable components. In addition, benefits are
also payable at the end of members’ mandates, primarily in
the form of pension benefits. Further details, including an
analysis of remuneration by individual, are disclosed in the
Compensation Report which can be found in the “Corpo-
rate Governance” section of the Annual Report on pages
 – . The Compensation Report is a sub-section of the
Group Management Report.
Subsequent Events Report
No events have occurred after the balance sheet date which
have a major impact on the earnings performance, financial
position and net assets of the BMW Group.
Value Added Statement
The value added statement shows the value of work per-
formed less the value of work bought in by the BMW Group
during the financial year. Depreciation and amortisation,
cost of materials and other expenses are treated as bought-
in costs in the value added calculation. The allocation
statement applies value added to each of the participants
involved in the value added process. It should be noted
that the gross value added treats depreciation as a compo-
nent of value added which, in the allocation statement, is
treated as internal financing.
Net value added by the BMW Group in  decreased by
.  to euro , million. The decrease over the pre-
vious year was largely attributable to the lower level of rev-
enues. The decrease in gross value added, at . , was
less pronounced since it is not affected by depreciation
and amortisation, which are higher than in the previous
year.
Once again, the bulk of the net value added .  is ap-
plied to employees. The amount applied to providers of
finance increased to .  as a result of the higher funding
volume required for the financial services business. The
government / public sector (including deferred tax expense)
accounted for . . The proportion of net value added
applied to shareholders, at . , was lower than in the pre-
vious year. The remaining proportion of net value added
.  will be retained by the BMW Group to finance future
operations. This represents a decrease of . percentage
points.