BMW 2009 Annual Report Download - page 110

108
74 Group Financial Statements
74 Income Statements
74 Statement of
Comprehensive Income
76 Balance Sheets
78 Cash Flow Statements
80 Group Statement of Changes
in Equity
81 Notes
81 Accounting Principles
and Policies
90 Notes to the Income
Statement
97
Notes to the Statement
of Comprehensive Income
98 Notes to the Balance Sheet
119 Other Disclosures
133 Segment Information
in euro million 31. 12. 2009 31. 12. 2008
Equity attributable to shareholders of BMW AG 19,902 20,275
Proportion of total capital 24.5 % 25.1 %
Non-current financial liabilities 34,391 30,497
Current financial liabilities 26,934 29,887
Total financial liabilities 61,325 60,384
Proportion of total capital 75.5 % 74.9 %
Total capital 81,227 80,659
Revenue reserves increased during the year to euro
20,426 million. The figure was increased in 2009 by the
amount of the net profit attributable to shareholders of
BMW AG (euro 204 million) and was reduced by the pay-
ment of the dividend for 2008 (euro 197 million).
The unappropriated profit of BMW AG of euro 197 million
for 2009 will be proposed to the Annual General Meeting
for distribution. The proposed distribution must be au-
thorised
by the shareholders at the Annual General Meeting
of BMW AG. It is therefore not recognised as a liability in
the Group Financial Statements.
Accumulated other equity
Accumulated other equity consists of all amounts recog-
nised directly in equity resulting from the translation of
the financial statements of foreign subsidiaries, the
effects
of recognising changes in the fair value of derivative
finan-
cial instruments and marketable securities directly
in
equity, and actuarial gains and losses relating to defined
benefit pension plans and similar obligations. It also
in-
cludes deferred taxes on items recognised directly in equity.
Minority interests
Equity attributable to minority interests amounted to euro
13 million (2008: euro 8 million). This includes a minority
interest of euro 6 million (2008: euro 6 million) in the results
for the year.
Capital management disclosures
The BMW Group’s objectives when managing capital are
to safeguard the Group’s ability to continue as a going
concern in the long-term and to provide an adequate return
to shareholders.
The BMW Group manages the capital structure and
makes adjustments to it in the light of changes in eco-
nomic conditions and the risk profile of the underlying
assets.
In order to manage its capital structure, the BMW Group
uses various instruments including the amount of dividends
paid to shareholders and share buy-backs.
The BMW Group manages the structure of debt capital
on the basis of a target debt ratio. An important aspect
of the selection of financial instruments is the objective to
achieve matching maturities for the Group’s financing re-
quirements. In order to reduce non-systematic risk, the
BMW Group uses a variety of financial instruments available
on the world’s capital markets to achieve optimal diversi-
fication.
The capital structure at the end of the reporting period was
as follows:
Equity attributable to shareholders of BMW AG decreased
during the financial year by 0.6 percentage points, mainly
as a result of changes in accumulated actuarial gains and
losses on pension obligations recognised directly in equity.
The increase in the proportion of financial liabilities mainly
reflects higher financing requirements for financial services
business.
The BMW AG is officially rated by the rating agencies,
Standard & Poor’s (S & P) and Moody’s. In previous years
the BMW AG benefited from first-class short-term ratings
issued by Moody’s and S & P. In 2009, the BMW AG was
not fully able to avoid the impact of adverse developments
in the automotive sector caused by the financial and eco-
nomic crisis.