BMW 2011 Annual Report Download - page 55

55 COMBINED GROUP AND COMPANY MANAGEMENT REPORT
the excess amount was € 2,133 million (2010: excess
amount of € 4,471 million).
Refinancing
The net liquidity position of the BMW Group improved
again in 2011 thanks to a strong level of free cash flow.
Our good reputation enjoyed on the world’s interna-
tional financial markets provides the financial flexibility
to ensure solvency at all times and sufficient resources
to generate future growth.
We are able to call on a broadly based, finely tuned range
of instruments to refinance our operations via inter-
national money and capital markets. Almost all of the
funds raised are used to finance the BMW Group’s Finan-
cial
Services business. Apart from issuing commercial
Following the reclassification of cash flows relating to
leased assets and receivables from sales financing, the
cash outflow for operating activities of the Financial Ser-
vices segment totalled € 2,308 million (2010: outflow of
€ 3,773 million). Primarily as a result of the sale of market-
able securities, investing activities generated a cash in-
flow of € 204 million (2010: cash outflow of € 71 million).
Free cash flow of the Automotive segment can be
analysed as follows:
paper on the money market, the BMW Group’s financ-
ing companies also issue bearer bonds in various cur-
rencies. In addition, retail customer and dealer financ-
ing receivables on the one hand and leasing rights and
obligations on the other are securitised in the form of
asset-backed securities (ABS) financing arrangements.
Financing instruments employed by our banks in Ger-
many and the USA (e. g. customer deposits) are also
used as a supplementary source of financing. Owing to
the increased use of international money and capital
markets to raise funds, the scale of funds raised in the
form of loans from international banks has generally
decreased.
After adjustment for the effects of exchange-rate fluctu-
ations and changes in the composition of the BMW
Group amounting to a net positive amount of € 43 mil-
lion (2010: € 26 million), the various cash flows resulted
in an increase in cash and cash equivalents of € 344 mil-
lion (2010: decrease of € 335 million). Net financial as-
sets of the Automotive segment comprise the following:
in € million 31. 12. 2011 31. 12. 2010
Cash inflow from operating activities 7,077 8,149*
Cash outflow for investing activities – 5,725 – 5,541*
Net investment in marketable securities 781 1,863
Free cash flow Automotive segment 2,133 4,471
* The adjustments result from the reclassification described in note 43 of the Group Financial Statements.
in € million 31. 12. 2011 31. 12. 2010
Cash and cash equivalents 5,829 5,585
Marketable securities and investment funds 1,801 1,134
Intragroup net financial receivables 6,404 5,690
Financial assets 14,034 12,409
Less: external financial liabilities* – 1,747 – 1,123
Net financial assets 12,287 11,286
* Excluding derivative financial instruments