BMW 2011 Annual Report Download - page 53

53 COMBINED GROUP AND COMPANY MANAGEMENT REPORT
Revenues by segment
in € million
2011 2010
Automotive 63,229 54,137
Motorcycles 1,436 1,304
Financial Services 17,510 16,617
Other Entities 5 4
Eliminations – 13,359 – 11,585
Group 68,821 60,477
Profit / loss before tax by segment
in € million
2011 2010*
Automotive 6,823 3,887
Motorcycles 41 65
Financial Services 1,790 1,214
Other Entities – 168 45
Eliminations – 1,103 – 358
Group 7,383 4,853
lion to € 41 million as a result of the loss recorded by the
Husqvarna Group.
Financial Services segment revenues grew by 5.4 % to
€ 17,510 million. Segment profit before tax improved to
€ 1,790 million (2010: € 1,214 million), influenced mainly
by lower expense for risk provision in the areas of
credit financing and residual values on the one hand
and lower refinancing costs on the other. The result also
includes the positive effect of exceptional income re-
sulting from the reduction in risk provision for residual
value and bad debt risks.
The Other Entities segment recorded a pre-tax loss of
€ 168 million (2010: pre-tax profit of € 45 million).
The result from inter-segment eliminations was a net
expense of € 1,103 million, up from a net expense of
€ 358 million one year earlier, mainly reflecting the higher
volume of new leasing business and lower Group pro-
duction costs.
Financial position*
The cash flow statements of the BMW Group and the
Automotive and Financial Services segments show the
sources and applications of cash flows for the financial
years 2010 and 2011, classified into cash flows from
operating, investing and financing activities. Cash and
cash equivalents in the cash flow statements correspond
to the amount disclosed in the balance sheet.
Cash flows from operating activities are determined
indirectly, starting with Group and segment net profit.
By contrast, cash flows from investing and financing
activities are based on actual payments and receipts.
Cash inflows and outflows relating to operating leases,
where the BMW Group is lessor, are required by IAS 7.14
to be presented within cash flows from operating activi-
ties. In previous financial statements, they were pre-
sented within cash flows from investing activities. The
change in presentation in the Group’s Cash Flow State-
ments has been made with effect from the end of the
financial year 2011. Prior year figures have been adjusted
accordingly. Cash inflow from operating activities de-
creased by € 4,476 million as a result of this reclassifica-
tion. Cash outflows for investing activities decreased
by the same amount. Cash flows relating to operating
leases, where the BMW Group is the lessee, continue
to be reported within operating activities. As a result
of
the change in presentation, changes in leased prod-
ucts are now reported on a net basis within operating
activities.
The presentation of receivables from sales financing
within the cash flow statement has also been changed
in the Group Financial Statements for the year ended
31 December 2011 to ensure that lease and financing
transactions are treated consistently. Previously, changes
in receivables from sales financing – including finance
leases, where the BMW Group is the lessor – were
presented within investing activities. They are now pre-
sented within operating activities. The previous year’s
figures were restated in the interest of comparability.
As a result of the change, cash flows from operating
activities were € 4,856 million lower than reported in the
financial
year 2010. Cash outflows for investing activi-
ties decreased by the same amount. In situations where
the BMW Group is the lessee in a finance lease, the
relevant components of changes continue to be reported
within operating activities and investing activities. As
with leased products, changes in receivables from sales
financing are now reported on a net basis within oper-
ating activities.
Operating activities of the BMW Group generated a
positive cash flow of € 5,713 million in 2011, an increase
o
f € 1,394 million or 32.3 % compared to the previous
* Adjusted for effect of change in accounting policy for leased products as described
in note 8