ACEA
Cash flow, operating
Common stock
Cost of materials
DAX
Deferred taxes
Derivatives
DJSI
EBIT
EBITDA
Effectiveness
EfficientDynamics
EMAS
Equity ratio
ERA
Free cash flow
IASs
IFRSs
Internal financing
Preferred stock
Principal subsidiaries
Production network
Production Triangle MINI
Rating
Return on Assets BMW Group
Return on Assets Financial Services
Return on Capital Employed
Return on sales
Risk management
Sports Activity Vehicle
Subscribed capital
Supplier relationship management
Sustainability
xDrive
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| ACEA |
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Abbreviation for “Association des Constructeurs Européens d’Automobiles“ (European Automobile Manufacturers Association).
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| Cash flow, operating |
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Cash inflow from automobiles segment.
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| Common stock |
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Stock with voting right (cf. preferred stock).
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| Cost of materials |
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Comprises all expenditure to purchase raw materials and supplies.
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| DAX |
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Abbreviation for "Deutscher Aktien Index", the German Stock Index. The index is based on the weighted market prices of the 30 largest German stock corporations (by stock market capitalisation).
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| Deferred taxes |
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Accounting for deferred taxes is a method of allocating tax expense/benefit to the appropriate accounting period.
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| Derivatives |
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Financial products, whose measurement is derived principally from market price, market price fluctuations and expected market price changes of the underlying instrument (e.g. indices, stocks or bonds).
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| DJSI |
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Abbreviation for “Dow Jones Sustainability Index World“. A family of indexes created by Dow Jones and the Swiss investment agency SAM Sustainability Group for companies with strategies based on a sustainability concept. The BMW Group has been one of the leading companies in the DJSI since 1999.
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| EBIT |
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Abbreviation for "Earnings Before Interest and Taxes". The profit before income taxes, minority interest and financial result.
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| EBITDA |
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Abbreviation for “Earnings Before Interest, Taxes, Depreciation and Amortisation“. The profit before income taxes, minority interest, financial result and depreciation/amortisation.
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| Effectiveness |
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The degree to which offsetting changes in fair value or cash flows attributable to a hedged risk are achieved by the hedging instrument.
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| EfficientDynamics |
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The aim of “EfficientDynamics“ is to reduce consumption and emissions whilst simultaneously increasing dynamics and performance. This involves a holistic approach to achieving optimum automobile potential, ranging from efficient engine technologies, lightweight construction and comprehensive energy and heat management inside the vehicle.
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| EMAS |
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Abbreviation for “Eco-Management and Audit Scheme“. A management tool that allows companies and organisations to evaluate, report on and improve their environmental performance.
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| Equity ratio |
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The proportion of equity (= subscribed capital, reserves and accumulated other equity) to the balance sheet total.
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| ERA |
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Remuneration Framework Agreement.
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| Free cash flow |
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Free cash flow corresponds to the cash inflow from operating activities of automobiles segment less the cash outflow for investing activities of automobiles segment.
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| IASs |
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International Accounting Standards.
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| IFRSs |
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International Financial Reporting Standards, intended to ensure global comparability of financial reporting and consistent presentation of financial statements. The IFRSs are issued by the International Accounting Standards Board and include the International Accounting Standards (IASs), which are still valid.
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| Internal financing |
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Internal financing is calculated as the profit before tax, adjusted for depreciation and amortisation and material non-cash items, less income tax paid.
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| Preferred stock |
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Stock which receives a higher dividend than common stock, but without voting rights.
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| Principal subsidiaries |
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Subsidiaries are those enterprises which, either directly or indirectly, are under the uniform control of the management of BMW AG or in which BMW AG, either directly or indirectly
- holds the majority of the voting rights
- has the right to appoint or remove the majority of the members of the Board of Management or equivalent governing body, and in which BMW AG is at the same time (directly or indirectly) a shareholder
- has control (directly or indirectly) over another enterprise on the basis of a control agreement or a provision in the statutes of that enterprise.
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| Production network |
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The BMW Group production network consists worldwide of 16 plants, six assembly plants and one contract production plant. Within this network, the plants supply one another with systems and components and are all characterised by a high level of productivity, agility and flexibility.
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| Production Triangle MINI |
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The three British plants (Hams Hall, Oxford and Swindon) are jointly manufacturing the MINI – with greater capacity levels, flexibility and efficiency. The Hams Hall plant produces the new MINI petrol engines; the Oxford plant remains responsible for chassis construction, painting and assembly. The Swindon plant produces the pressed panels and chassis components.
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| Rating |
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Standardised evaluation of a company’s credit standing which is widely accepted on the global capital markets. Ratings are published by independent rating agencies e.g. Standard&Poor’s or Moody’s based on their analysis of a company.
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| Return on Assets BMW Group |
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Profit before interest expense (expense from reversing the discounting of pension obligations and of other non-current provisions, other interest and similar expenses) and tax as a percentage of the balance sheet total.
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| Return on Assets Financial Services |
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Profit before tax as a percentage of operating assets.
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| Return on Capital Employed |
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Profit before financial result as a percentage of capital employed. Capital employed is defined as operating assets less non-interest bearing liabilities. For this purposes, non-interest bearing liabilities exclude non-interest bearing provisions and liabilities.
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| Return on sales |
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The ratio of the profit from ordinary activities to Group revenues. For segment reporting purposes, the computation is based on the profit before financial result.
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| Risk management |
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An integral component of all business processes. Following enactment of the Law on Control and Transparency within Businesses (KonTraG), all companies listed on a stock exchange in Germany are required to set up a risk management system. The purpose of this system is to identify risks at an early stage which could have a significant adverse effect on the assets, liabilities, financial position and results of operations and which could endanger the continued existence of the company. This applies in particular to transactions involving risk, errors in accounting or financial reporting and violations of legal requirements. The Board of Management is required to set up an appropriate system, to document that system and monitor it regularly with the aid of the internal audit department.
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| Sports Activity Vehicle |
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The BMW X5 is the first-ever Sports Activity Vehicle – a combination of a typical BMW sedan featuring sporting and comfortable driving features on the one hand, with far-reaching driving abilities in terrain on the other. This creates a new market segment. In 2004, the BMW Group added another SAV, the BMW X3, to its model range.
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| Subscribed capital |
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The share capital of a company is computed by multiplying the nominal value of the shares by the number of shares.
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| Supplier relationship management |
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Supplier relationship management (SRM) uses focused procurement strategies to organise networked supplier relationships, optimise processes for supplier qualification and selection, ensure the application of uniform standards throughout the group and create efficient sourcing and procurement processes along the whole added-value chain.
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| Sustainability |
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Sustainability or sustainable development. The United Nations Conference on the Environment and Development, held in Rio de Janeiro in 1992, resolved a global action plan for combating poverty, ensuring a suitable population policy, promoting urban development, human rights, trade, agriculture, environmental protection, research and technology. Referred to as Agenda 21, this action plan serves to ensure sustainable development, preserving the world’s natural resources and limiting the emission of pollutants to a volume the environment can absorb or degrade.
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| xDrive |
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The xDrive all-wheel drive system distributes engine power fully variably to all four wheels. The system recognises at a very early stage when power has to be shifted and reacts in fractions of a second. This increases driving dynamics, ensures maximum traction and can maintain the vehicle’s directional stability in critical situations.
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