74 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Financial Performance The Automotive segment generated a net cash inflow from op- erating activities amounting to € 16,791 million, which consisted of primarily profit before tax plus depreciation and amortisation of tangible, intangible and investment assets and interest re- ceived. Income taxes paid reduced the cash inflow. The decrease in cash inflow from operating activities compared to the previous year was largely due to the lower profit before tax and the change in provisions. The decrease in income taxes paid as well as positive changes in working capital had an offsetting effect. Inventories were in line with the previous year, while the reduction in trade payables was largely offset by the reduction in trade receivables. In the previous year, by contrast, an increase in inventories and a simultaneous reduction in liabilities led to a negative change in working capital. Net cash outflow from investing activities amounted to € 11,100 million, a significant portion of which was related to investments in property, plant and equipment and intangible assets, particu- larly in connection with the Group’s continued expansion of elec- tric mobility and NEUE KLASSE models. The sale of marketable securities reduced cash outflows from investing activities. The Automotive segment generated a free cash flow totalling € 4,852 million (2023: € 6,942 million) at 31 December 2024. Automotive-related net financial assets comprised the following: Cash and cash equivalents held by the Financial Services seg- ment changed as follows: In the Financial Services segment, the net cash outflow from op- erating activities amounted to € 8,387 million, and primarily re- sulted from the increase in leased products and receivables from sales financing. Profit before tax reduced net cash outflow. The stronger volume-related increase in leased products com- pared to the previous year had a particularly noteworthy impact on the cash outflow from operating activities. The cash inflow from financing activities totalled € 8,538 million. Compared to the previous year, intragroup refinancing increased particularly in connection with the financing of the higher level of leased products and receivables from sales financing. Proceeds from the issue of external financial liabilities and repayments of external financial liabilities were in line with the previous year. 1 The 2024 Half-Year Report was the first report in which disclosures of the net financial assets of the Automotive segment were expanded in scope. For comparison purposes, the figures as at 31 December 2023 have been adjusted accordingly. 2 Excluding derivative financial instruments. in € million 2024 2023 Change Cash and cash equivalents 14,882 13,682 1,200 Marketable securities and investment funds 1,001 1,782 – 781 Intragroup net financial assets 33,844 32,832 1,012 Financial assets 49,727 48,296 1,431 Less: external financial liabilities2 – 3,948 – 2,794 – 1,154 Net financial assets Automotive 45,779 45,502 277 in € million 2024 2023 Change Cash inflow (+)/outflow (–) from operating activities – 8,387 488 – 8,875 Cash inflow (+)/outflow (–) from investing activities – 81 6 – 87 Cash inflow (+)/outflow (–) from financing activities 8,538 – 750 9,288 Effects of exchange rate and changes in composition of segment – 57 – 184 127 Change in cash and cash equivalents 13 – 440 453 Cash flows Financial Services segment Net financial assets – Automotive1