BMW 2011 Annual Report Download - page 56

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18 COMBINED GROUP AND COMPANY
MANAGEMENT REPORT
18 A Review of the Financial Year
20 General Economic Environment
24 Review of Operations
43 BMW Stock and Capital Market
46 Disclosures relevant for takeovers
and explanatory comments
49 Financial Analysis
49 Internal Management System
51 Earnings Performance
53 Financial Position
56 Net Assets Position
59 Subsequent Events Report
59 Value Added Statement
61 Key Performance Figures
62 Comments on BMW AG
66 Internal Control System and
explanatory comments
67 Risk Management
73 Outlook
The situation on international money and capital mar-
kets was again dominated in 2011 by the European debt
crisis, resulting in major swings on the world’s financial
markets, particularly in the second half of the year.
The debt crisis did not have any impact on the BMW
Group’s financing activities. Thanks to its good ratings,
the BMW Group was again able to refinance opera-
tions
at an attractive level in 2011. In addition to the issue
of bonds and loan notes on the one hand and private
placements on the other, we were also able to issue com-
mercial
paper at good conditions. Additional funds were
also raised via new securitised transactions and by ex-
tending existing transactions. As in previous years, all
issues were highly sought after by both institutional and
private investors.
During the year, the BMW Group issued two benchmark
bonds with a total issue volume of € 2.25 billion on
Euro-
pean capital markets. Bonds were also issued in Canadian
and Australian dollars, Norwegian krone, Swiss francs
and other currencies for a total amount of € 4.5 billion.
Issues of public ABS bonds raised 2.25 billion US dollar in
the USA and 2 billion rand in South Africa. In addition,
securitised private ABS transactions were used to raise
€ 200 million in Germany, 20 billion yen in Japan, 700
million Canadian dollars in Canada, 1.5 billion Australian
dollars in Australia and 1 billion US dollars in the USA.
Funds were also raised at attractive conditions on the
loan note market. Alongside various euro transactions
with a total volume of € 500 million, a number of smaller
issues were made on niche markets.
The regular issue of commercial paper at attractive con-
ditions further strengthened our broad refinancing basis.
The following table provides an overview of existing
money and capital market programmes of the BMW
Group at 31 December 2011:
good conditions. A consortium of 39 international banks
is involved in the credit facility. Despite the volatile market
situation, syndication of the facility was oversubscribed
to a considerable extent. A commitment fee is paid an-
nually in line with normal market practice. The duration
of the credit agreement is determined when the facility
is drawn down. The previous credit facility for 8 billion
US dollar, due to expire in November 2012, was there-
fore replaced early.
Standard & Poor’s raised its outlook for BMW AG during
the year under report from stable to positive. Moody’s
raised BMW AG’s long-term and short-term ratings by
one level in each case from A3/P-2 to A2/P-1 and con-
firmed the stable outlook. BMW AG therefore currently
enjoys the best ratings of all European car manufacturers.
Further information regarding financial liabilities is pro-
vided in the notes to the Group Financial Statements
(note 34 and note 38).
Net assets position*
The Group balance sheet total increased by € 13,265
mil-
lion (+ 12.0 %) to stand at € 123,429 million at 31 December
2011. Adjusted for changes in exchange rates, the balance
sheet total would have increased by 10.8 %.
The main factors behind the increase on the assets side
of the balance sheet were receivables from sales financ-
ing (+ 8.8 %), inventories (+ 24.1 %), leased products
(+21.1 %) and trade receivables (+ 41.1 %). By contrast,
decreases were recorded for non-current financial assets
(– 8.8 %) and non-current other assets (– 17.9 %).
On the equity and liabilities side of the balance sheet,
the increase was due to the rise in equity (+ 13.3 %),
pension provisions (+ 39.7 %), trade payables (+ 22.7 %)
and financial liabilities (+ 9.0 %). Deferred tax liabilities
decreased slightly (– 3.7 %).
At € 5,238 million, the carrying amount of intangible
assets was € 207 million higher than at the end of the
previous year. Within intangible assets, capitalised
development costs decreased by € 237 million to € 4,388
million. Development costs recognised as assets during
the year under report amounted to € 972 million (+ 2.2 %).
The proportion of development costs recognised as
assets was 28.8 % (2010: 34.3 %). Additions to capitalised
development costs in 2011 were therefore slightly above
Programme Amount utilised
Euro Medium Term Notes € 25.3 billion
Commercial paper € 5.2 billion
In October 2011 the BMW Group concluded a new syn-
dicated credit facility totalling € 6 billion with a term of
five years and with two one-year extension options at
* Adjusted for effect of change in accounting policy for leased products as described
in note 8