BMW 2013 Annual Report Download - page 61

61 COMBINED MANAGEMENT REPORT
BMW AG Income Statement
in € million
2013 2012
Revenues 60,474 58,805
Cost of sales – 47,067 – 46,252
Gross profit 13,407 12,553
Selling expenses – 3,528 – 3,684
Administrative expenses – 2,141 – 1,701
Research and development expenses – 4,362 – 3,573
Other operating income and expenses 542 703
Result on investments 373 598
Financial result – 328 – 99
Profit from ordinary activities 3,963 4,797
Income taxes – 1,629 – 1,635
Other taxes – 45 – 31
Net profit 2,289 3,131
Transfer to revenue reserves – 582 – 1,491
Unappropriated profit available for distribution 1,707 1,640
The increase of other receivables and other assets to
€ 3,194 million (2012: € 2,061 million) was mainly attribut-
able
to genuine repurchase (repo) transactions and
the higher level of receivables from other companies in
which an investment is held.
Liquidity within the BMW Group is managed centrally
by BMW AG on the basis of a group-wide liquidity con-
cept, which revolves around the strategy of concentrating
a significant part of the Group’s liquidity at the level of
BMW AG. One instrument used to achieve this aim is
the cash pool headed by BMW AG. The liquidity position
reported by BMW AG therefore reflects the global activi-
ties of BMW AG and other Group companies.
Cash and cash equivalents went down by € 861 million
to € 3,757 million, whereby the decrease was more than
offset by the increase in funds invested in marketable
securities. Financial receivables from subsidiaries went
down sharply.
Equity rose by € 665 million to € 10,529 million and the
equity ratio improved from 30.9 % to 31.2 %.
In order to secure obligations resulting from pre-retire-
ment part-time work arrangements and the Company’s
pension obligations, assets have been transferred to
BMW Trust e. V., Munich, in conjunction with Contractual
Trust Arrangements (CTA), on a fiduciary basis. The as-
sets concerned comprise mainly holdings in investment
fund assets and a receivable resulting from a so-called
“Capitalisation Transaction” (Kapitalisierungsgeschäft).
Fund assets are offset against the related guaranteed
obligations. The resulting surplus of assets over liabilities
is reported in the BMW AG balance sheet on the line
“Surplus of pension and similar plan assets over liabilities”.
Pension provisions, net of designated pension plan as-
sets, decreased
from € 56 million to € 43 million.
Trade payables increased by € 918 million to € 4,818 mil-
lion mainly due to higher business volumes.
Liabilities to banks and financing liabilities to subsidiaries
increased in the year under report.
Other liabilities fell from € 800 million to € 285 million,
reflecting the fact that all commercial paper outstanding
at 31 December 2012 was repaid during the year and
no new commercial paper was issued .
With effect from the beginning of the year under report,
deferred income includes for the first time income relat-
ing to service and maintenance contracts, for which all