ANALYSIS OF THE 2004 BMW ANNUAL REPORT

The annual report to shareholders has become a mainstay of corporate communications. Companies that are publicly held are required by law to issue financial statements, and the annual report includes key financial statements, including balance sheets, income statements and statements of cash flow. Typically, these financial statements are issued for several years so that shareholders and others can perform analysis. However, the annual report is meant for more than just shareholders. Other stakeholders, including potential investors, customers, employees, creditors and consumers, also read annual reports, and investment analysts are also part of the audience. Companies want to put forth a positive image in their annual reports, and may include information about the background of the company, highlights of recent accomplishments, and perhaps the strategy for the future. The annual report, as a cornerstone of the corporate communications strategy, combines legally mandated information with marketing data and serves to build and reinforce the corporate image. This research considers the BMW 2004 annual report, and the information presented as part of that company's document.

The annual report is more than 120 pages long, and an English version is prepared as well as a German version. This analysis considers only the English language version. However, the report notes on the back page that although th

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traded global companies. It is typical to report key financial information in graphs at the beginning of the report, particularly when the company has had a good year, and to include information about the company's highlights in the management discussion. Financial statements are typically included in the middle of the report, with ancillary informationùif anyùincluded at the end. This annual report differs somewhat from many in that it includes an index and a glossary, both of which aid the reader in finding and understanding the information presented (Stanko 12). FINANCIAL RESULTS Revenues for BMW increased 6.7 percent from 2003 to 2004, from Ç41.5 billion to Ç44.3 billion. Profits increased more than 14 percent during the same period from Ç1.9 billion to Ç2.2 billion. This indicates that the company is well-managed and is able to translate increases in revenue into profits at an accelerated rate. This information comes from the income statement, which, in addition to presenting information for the company as a whole, also breaks down performance by industrial and financial operations ("2004 Annual Report" 51). From the balance sheet, we learn that current assets increased approximately eight percent, and the value of
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Approximate Pages = 5 (250 words per page)

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