427 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Glossary A Asset-backed financing transactions A form of corporate financing involving the sale of receivables to a financing company. B Bond A securitised debt instrument in which the issuer certifies its ob- ligation to repay the nominal amount at the end of a fixed term and to pay a fixed or variable rate of interest. Business volume in balance sheet terms The sum of the balance sheet line items “Leased products” and “Receivables from sales financing” (current and non-current), as reported in the balance sheet for the Financial Services segment. C Capitalisation rate Capitalised development costs as a percentage of research and development expenditure. Capital expenditure ratio (excluding capitalised development costs) Investments in property, plant and equipment and other intangi- ble assets (excluding capitalised development costs) as a per- centage of Group revenues. Capital expenditure ratio (excluding right-of-use assets and excluding capitalised development costs) Investments in property, plant and equipment (excluding right- of-use assets in accordance with IFRS 16) and other intangible assets (excluding capitalised development costs) as a percent- age of Group revenues. Cash flow at risk Similar to “value at risk” (see definition below). Cash flow hedges Hedges against exposures to the variability in forecasted cash flows, particularly in connection with exchange rate fluctuations. Commercial paper Deep-discounted bonds with a term of less than one year. Consolidation The process of consolidating separate financial statements of Group entities into Group Financial Statements, depicting the fi- nancial position, net assets and results of operations of the Group as a single economic entity. Credit default swap (CDS) Financial swap agreements, under which creditors of securities (usually bonds) pay premiums to the seller of the CDS to hedge against the risk that the issuer of the bond will default. As with credit default insurance agreements, the party receiving the pre- miums gives a commitment to compensate the bond creditor in the event of default. D Deliveries A new or used vehicle will be recorded as a delivery once handed over to the end user. End users also include leaseholders under lease contracts with BMW Financial Services and – in the US and Canada – dealerships when they designate a vehicle as a service loaner or demonstrator vehicle. In the case of used vehicles, end users may include dealerships and other third parties when they purchase a vehicle at auction or directly from the BMW Group. Vehicles designated for the end user which suffer a total loss in transit are also recorded as deliveries. Deliveries may be made by BMW AG, one of its international subsidiaries, a BMW Group retail outlet, an agent, or independent dealerships. The vast ma- jority of deliveries – and hence the reporting to BMW Group of deliveries – are made by independent dealerships. In the US and Canada, the period start and end dates for the reporting of deliv- eries deviate immaterially from the beginning and, respectively, end of calendar years or calendar quarters and instead follow in- dustry-standard reporting calendars. In the German-language version of the BMW Group Report, the terms “Auslieferungen” (deliveries) and “Absatz” (sales) are used interchangeably. * Part of the Combined Management Report. GLOSSARY*