BMW 2011 Annual Report Download - page 118

118
76 GROUP FINANCIAL STATEMENTS
76 Income Statements
76 Statement of
Comprehensive Income
78 Balance Sheets
80 Cash Flow Statements
82 Group Statement of Changes
in Equity
84 Notes
84 Accounting Principles
and Policies
100 Notes to the Income
Statement
107 Notes to the Statement
of Comprehensive Income
108
Notes to the Balance Sheet
129 Other Disclosures
145 Segment Information
in € million 31. 12. 2011 31. 12. 2010*
Equity attributable to shareholders of BMW AG 27,038 23,904
Proportion of total capital 28.5 % 27.7 %
Non-current financial liabilities 37,597 35,833
Current financial liabilities 30,380 26,520
Total financial liabilities 67,977 62,353
Proportion of total capital 71.5 % 72.3 %
Total capital 95,015 86,257
* Adjusted for effect of change in accounting policy for leased products as described in note 8
amount includes € 123 million relating to preferred stock.
The amount proposed for distribution represents an
amount of € 2.32 per share of preferred stock and € 2.30
per share of common stock. The proposed distribution
must be authorised by the shareholders at the Annual
General Meeting of BMW AG. It is therefore not recog-
nised as a liability in the Group Financial Statements.
Accumulated other equity
Accumulated other equity comprises 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 deriva-
tive financial instruments and marketable securities di-
rectly in equity and the related deferred taxes recognised
directly in equity.
Minority interests
Equity attributable to minority interests amounted to
€ 65 million (2010: € 26 million). This includes a minority
interest of € 26 million (2010: € 16 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 ade-
quate 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 financ-
ing requirements. In order to reduce non-systematic
risk, the BMW Group uses a variety of financial instru-
ments available 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 increased
during the financial year by 0.8 percentage points, mainly
reflecting the increase in revenue reserves compared to
the previous year.
BMW AG’s long-term and short-term ratings were raised
by one level in July 2011 by the rating agency Moody’s
from A3 / P-2 to A2 / P-1 with a stable outlook. In Sep-
tember 2011 the rating agency Standard & Poor’s
confirmed BMW AG’s rating of A– /A-2 and raised the
outlook from stable to positive. This means that
BMW AG currently enjoys the best ratings of all Euro-
pean car manufacturers.