BMW 2015 Annual Report Download - page 53

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53 COMBINED MANAGEMENT REPORT
Cash outflows for operating activities in the Financial
Services segment are driven primarily by cash flows re-
lating to leased products and receivables from sales fi-
nancing and totalled € 10,351 million (2014: € 4,715 mil-
lion). Overall, cash outflows from investing activities
totalled € 140 million (2014: € 297 million). Cash inflows
Refinancing
A broadly based range of instruments transacted on in-
ternational money and capital markets is used to refi-
nance worldwide operations. Practically all of the funds
raised are used to finance the BMW Group’s Financial
Services business.
The overall objective of Group financing is to ensure the
solvency of the BMW Group at all times. Achieving this
objective is tackled in three strategic areas:
1. The ability to act at all times by assuring permanent
access to strategically important capital markets,
2. Autonomy through the diversification of refinancing
instruments and investors, and
3. Focus on value by optimising financing costs.
liquidity planning, the excess amount was € 5,404 mil-
lion (2014: € 3,481 million).
from financing activities went up by € 4,101 million to
€ 10,028 million, mainly influenced by the change in
other financial liabilities.
Net financial assets of the Automotive segment comprise
the following:
Financing measures undertaken centrally ensure access
to liquidity for the Group’s operating subsidiaries on
market-based and consistent conditions. Funds are ac-
quired with a view to achieving a desired structure for
the composition of liabilities, comprising a finely tuned
mix of financing instruments. The use of longer-term
financing instruments to finance the Group’s financial
services business and the maintenance of a sufficiently
high liquidity reserve serves to avoid the liquidity risk
intrinsic to any large portfolio of contracts. This prudent
approach to financing also bolsters BMW AG’s ratings.
Further information is provided in the “Liquidity risks”
section of the “Report on outlook, risks and opportu-
nities”.
Free cash flow for the Automotive segment was as
follows:
in € million 2015 2014
Cash inflow from operating activities 11,836 9,423
Cash outflow from investing activities – 7,524 – 5,836
Net investment in marketable securities and term deposits 1,092 – 106
Free cash flow Automotive segment 5,404 3,481
in € million 31.12. 2015 31.12. 2014
Cash and cash equivalents 3,952 5,752
Marketable securities and investment funds 4,326 3,366
Intragroup net financial assets 11,278 8,583
Financial assets 19,556 17,701
Less: external financial liabilities* – 2,645 – 3,478
Net financial assets Automotive segment 16,911 14,223
* Excluding derivative financial instruments.