BMW 2010 Annual Report Download - page 108

106
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
89 Notes to the Income
Statement
95 Notes to the Statement
of Comprehensive Income
96 Notes to the Balance Sheet
117 Other Disclosures
133 Segment Information
in euro million 31. 12. 2010 31. 12. 2009
Equity attributable to shareholders of BMW AG 23,074 19,902
Proportion of total capital 27.0 % 24.5 %
Non-current financial liabilities 35,833 34,391
Current financial liabilities 26,520 26,934
Total financial liabilities 62,353 61,325
Proportion of total capital 73.0 % 75.5 %
Total capital 85,427 81,227
Moody’s Standard & Poor’s
Non-current financial liabilities A3 A –
Current financial liabilities P-2 A -2
Outlook stable stable
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 ef-
fects of recognising changes in the fair value of derivative
financial instruments and marketable securities directly
in equity, and actuarial gains and losses relating to de-
fined benefit pension plans and similar obligations. It also
includes deferred taxes on items recognised directly in
equity.
Minority interests
Equity attributable to minority interests amounted to
euro 26 million (2009: euro 13 million). This includes a
minority interest of euro 16 million (2009: euro 6 mil-
lion) 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 divi-
dends 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
requirements. In order to reduce non-systematic risk, the
BMW Group uses a variety of financial instruments avail-
able on the world’s capital markets to achieve optimal
diversification.
The capital structure at the end of the reporting period
was as follows:
Equity attributable to shareholders of BMW AG in-
creased during the financial year by 2.5 percentage points,
mainly reflecting the increase in revenue reserves com-
pared to the previous year. The decrease in the proportion
of financial liabilities mainly reflects the fact that financ-
ing requirements for financial services business only in-
creased slightly.
BMW AG is officially rated by the international rating
agencies, Standard & Poor’s (S & P) and Moody’s, and ad-
judged to be highly creditworthy. The long-term and
short-term ratings issued to BMW AG by the two rating
agencies have been robust for many years now.
In September 2010 Moody´s and S & P raised their ratings
for the Company’s outlook from negative to stable as
aresult of the recovery of sales markets and improved
macro-economic conditions.