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Annual Report 2001
Profitable growth with premium brands

Table of contents

  • Page 1
    Annual Report 2001 Profitable growth with premium brands

  • Page 2
    ...2000 C1 production at Bertone 2] includes deliveries of C1 from 2000 3] adjusted for the transfer of the supplier plant Powertrain Ltd., Bracknell, and the sale of British Motor Heritage 4] from 1998 figures exclude suspended contracts of employment, employees in the vacation phase of pre-retirement...

  • Page 3
    BMW Group Revenues in euro billion 38.5 BMW Group Capital expenditure in euro million 40 35...97 HGB 98 HGB 99 HGB 00 HGB 00 IAS 01 IAS BMW Group Deliveries of automobiles* in thousand BMW Group Profit from ordinary activities in euro million 1,000 900 800 700 600...01 IAS for Rover/Land Rover

  • Page 4
    Contents BMW Group in figures Report of the Supervisory Board Members of the Supervisory Board Members of the Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index 01 04 08 11 12 ...

  • Page 5
    ...and on the Land Rover closing balance sheet on 20 June 2001. The BMW Group now only has a few customer/ supplier relationships with MG Rover and Land Rover. After the sale of Rover operations, the Board of Management has focussed the GroupÂ's automobile business entirely on the premium segment. With...

  • Page 6
    ... supports the Board of Management in positioning the BMW Group as the only multibrand car manufacturer operating exclusively in the premium segment. Other key issues deliberated at the joint meetings with the Board of Management were the location selection and decision for a new production plant...

  • Page 7
    ... development of business and the strength of the BMW brand, the Group was able to improve substantially on the very good result achieved in the previous year. The Supervisory Board would like to thank the Board of Management and all employees of the BMW Group for the outstandingly successful year...

  • Page 8
    ... member of the Supervisory Board following registration with the Munich District Court. On 31 December 2001, Prof. Dr.-Ing. Werner Sämann left the Company after 25 years of service for BMW, and since 1 December 1998 as a member of the Board of Management. The Supervisory Board thanked Prof. Sämann...

  • Page 9
    ... BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Members of the Supervisory Board Volker Doppelfeld Chairman Former Member of the Board of Management of BMW AG Ernst Rehmeier* Deputy Chairman Chairman of the Works...

  • Page 10
    ... S. A. Bankhaus Reuschel & Co. BNP PARIBAS S. A. Dresdner Kleinwort Benson North America Inc. Hans Glas* Director of the Dingolfing plant Konrad Gottinger* Member of the Works Council, Dingolfing Gerhard Gutsmiedl* Deputy Chairman of the Works Council, Munich Mandates** Aventis S. A. Siemens AG 9

  • Page 11
    ...029 033 098 104 106 108 112 BMW Group in figures Report of the Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Werner Neugebauer* Regional...

  • Page 12
    ...** Gerling Konzern Globale Rückversicherungs-AG BMW Australia Finance Ltd. BMW Financial Services NA, Inc. BMW FS Funding Corp. ** Dr. Helmut Panke Dr.-Ing. Norbert Reithofer Mandates** BMW Motoren GmbH ( Chairman) BMW Ã-sterreich Holding GmbH ( Chairman) BMW (South Africa) (Pty) Ltd. ( Chairman...

  • Page 13
    ... Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Group Management Report. The BMW Group is successfully focusing on the premium segments of the automobile market. In order to strengthen its leading position, the BMW Group...

  • Page 14
    ... in the world pursuing a consistent premium product strategy. This orientation is one of the reasons why the BMW Group is largely unaffected by the difficult economic situation in the international markets. BMW Group Â- key automobile markets 2001 as a percentage of sales volume Germany USA Great...

  • Page 15
    ...Munich Plant, with an aluminium spaceframe from the Dingolfing Plant, was delivered to 2,202 customers in the year. X5 deserves particular mention with 82,645 units delivered to customers in 2001. Sales of this Sports Deliveries of BMW diesel automobiles in 1,000 units BMW Group Â- key motorcycle...

  • Page 16
    ...in the year 2001. Growth in France (8,017 units, + 39.2 %) and Great Britain (4,137 units, + 38.9 %) primarily contributed to the overall performance. With customer deliveries of 2,801 units, the Japanese market was up by 18.6 %, also reaching a new record figure. The best-selling motorcycle in 2001...

  • Page 17
    ...the US market shows the largest share of financing BMW cars, ahead of East Asia (41.2 %) and Europe (28.2 %). The successful expansion of Financial Services was supported by a greater geographical spread of business, with fleet management, multibrand financing and direct banking, new strategic areas...

  • Page 18
    ... flexibility for working times, production volumes and capacity utilisation with the interests of the company and its employees. The flexibility of these working time arrangements was a significant factor in the BMW GroupÂ's decision to choose Leipzig/Halle as the location for its new factory. The...

  • Page 19
    ... Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index New production records for automobiles and motorcycles. Capital expenditure financed fully...

  • Page 20
    ... of the BMW Group in 2001 were geared towards the product and market offensive. The focus was the introduction of the new BMW 3 Series compact, the BMW M3 convertible, the MINI One and MINI Cooper and the new BMW 7 Series. In addition, extensive development activities were performed for the...

  • Page 21
    ... new BMW 7 Series. The worldÂ's first six speed automatic gear-box using integrated shift-bywire technology was the result of extensive development work in the area of mechatronics. The gears can be changed using a new type of lever on the steering wheel and by steptronic buttons located on the rim...

  • Page 22
    ...internet. Consistent implementation of e-business strategy. Top Drive: setting the standard in premium quality customer service. BMW Car IT fits neatly into the international research and development network of the BMW Group and works closely with the Research and Development Centre (FIZ) in Munich...

  • Page 23
    ...e-business has become an important factor in the on-going endeavours to optimise customer services. Together with more than 3,000 dealer operations throughout the world, the BMW Group is using the opportunities provided by the internet. As part of the customer-orientated sales and production process...

  • Page 24
    ...and the international standard ISO 14001 certification by 1999. An environment management system has also been implemented at the new BMW engine plant at Hams Hall within a very short space of time: series production of the new four cylinder engine using VALVETRONIC technology was started in January...

  • Page 25
    ...Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index account in their decisions. Suppliers to BMW production plants abroad are also required to commit themselves to adopting the strict principles applicable...

  • Page 26
    ...mobility on a long-term basis. A hydrogen version of the recently introduced new 7 Series will be available to customers during the life cycle of this new model. Volatile organic compounds (VOC) per unit produced (kg /unit) Process effluent per manufactured car (m3 /unit) 4.50 4.25 4.00 3.75 3.50...

  • Page 27
    ... Group Locations Glossary Index Risk management in the BMW Group As an enterprise with worldwide operations, the BMW Group faces a variety of risks. The Board of Management and the Supervisory Board are regularly informed about risks which have a significant impact on business development. Business...

  • Page 28
    ... are made of the technical competence and financial strength of potential suppliers. Risk from sales financing Â- A major part of financing and lease business within the Financial Services segment is refinanced on the capital markets. The excellent credit-standing of the BMW Group, reflected in the...

  • Page 29
    ...further increase the level of security at BMW Group. Every employee with IT access already has a electronic chip on his/her company identification badge which permits authentication, digital signature and encryption. Outlook: premium segments to perform better than the market as a whole in 2002 The...

  • Page 30
    ... performed better than the DAX as a whole. As a result of the general fall of stock markets following 11 September, BMW common stock dropped considerably in value under heavy trading, reaching a new annual low of euro 24.01 on 20 September. Development of BMW stock compared to stock exchange...

  • Page 31
    ...Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW stock 1997 1998 1999 2000 2001 Common stock Number of shares in 1,000 Stock exchange price in euro1] Year-end closing...

  • Page 32
    ...report for the fourth quarter is replaced by the Annual Report. These publications are available, along with further information, on the internet at www.bmwgroup.com/financial/. Development in value of a BMW stock investment in euro thousand Investment of euro 10,000 at 1.1. 92, including dividends...

  • Page 33
    001 004 008 011 012 029 033 098 104 106 108 112 BMW Group in figures Report of the Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index 32

  • Page 34
    ... Financial Analysis Group and sub-group Income Statements Group and sub-group Balance Sheets at 31 December 2001 Statement of Changes in Equity Group Cash Flow Statement Analysis of changes in Group non-current assets Notes to the Group Financial Statements Accounting principles and policies...

  • Page 35
    ... Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW Group Financial Analysis Income Statement in euro million 2001 2000 Revenues Cost of sales Gross profit Sales...

  • Page 36
    ... at 20.9 %, the deferred tax expense increased by 1.9 percentage points to 21.5 %. Overall, the Group net profit thus increased by 54.3 % against the previous year. Segment results in euro million 2001 2000 BMW Automobiles Rover Automobiles BMW Motorcycles Financial Services Reconciliations Profit...

  • Page 37
    ...issue of employee shares of euro 24 million. The payment of the dividend for 2000, exchange rate fluctuations and the accounting treatment of changes in the fair values of financial instruments reduced equity by euro 552 million. The equity ratio of the Group increased by 1.9 percentage points to 21...

  • Page 38
    ... equivalents and marketable securities Deferred tax assets and prepayments 7% 2% 2001 8% 4% 2000 2% 2000 2% 2001 Deferred tax liabilities and deferred income Balance sheet structure Industrial Operations in euro billion 25 22 22 25 Non-current assets of which property, plant and equipment 43...

  • Page 39
    ... Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Debt only increased by 2.5 % to euro 25.7 billion, as a result of the small increase in sales financing business. Debt as a percentage of the balance...

  • Page 40
    ... Statements in accordance with German accounting and reporting law (HGB) for the fourth quarter 2001 and for the full year ended 31 December 2001 as well as revenues and results by segment are presented below, to complete the GroupÂ's interim reporting for the financial year 2001 on a HGB basis...

  • Page 41
    ... Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Group Income Statement on an HGB basis in euro million 4th quarter 2001 4th quarter 2000 1.1. to 31.12. 2001 1.1. to 31.12. 2000 Revenues Cost of sales...

  • Page 42
    ... Rover Automobiles BMW Motorcycles Financial Services Miscellaneous, consolidations Group 1] includes euro 3,500 million revenues of the Rover Automobiles segment Segment results on an HGB basis in euro million 4th quarter 2001 4th quarter 2000 2001 2000 BMW Automobiles Rover Automobiles BMW...

  • Page 43
    ... 112 BMW Group in figures Report of the Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Analysis of the fourth quarter 2001 Total revenues...

  • Page 44
    BMW Group Group and sub-group Income Statements in euro million Notes Group 2000 2001 Industrial operations1] 2001 2000 2] Financial operations1] 2001 2000 Revenues Cost of sales Gross profit Sales and administrative costs Research and development costs Other operating income and expenses ...

  • Page 45
    ... 2000 Financial operations1] 2001 2000 Intangible assets Property, plant and equipment Financial assets Leased products Non-current assets Inventories Trade receivables Receivables from sales financing Other receivables Marketable securities Cash and cash equivalents Current assets Deferred tax...

  • Page 46
    ... reserves Revenue reserves Accumulated other equity Equity Minority interest Pension provisions Other provisions Provisions Debt Trade payables Other liabilities Liabilities Deferred tax liabilities Deferred income Total equity and liabilities Balance sheet total adjusted for asset backed financing...

  • Page 47
    ... AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW Group Statement of Changes in Equity in euro million Subscribed capital Capital reserves Revenue reserves Accumulated other equity Translation differences Fair value measurement of marketable securities...

  • Page 48
    ... 2000 Net profit for the year Depreciation of leased products Depreciation and amortisation of other non-current assets Increase in provisions Rover disengagement Change in deferred taxes Other non-cash income and expense items Gain/ loss on disposal of non-current assets and marketable securities...

  • Page 49
    ...Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW Group Analysis of changes in Group non-current assets in euro million 1.1. 20011] Translation differences Acquisition and manufacturing costs...

  • Page 50
    Depreciation and amortisation 1.1. 20011] Translation differences Deconsolidation Current year Disposals 31.12. 2001 Net book values 31.12. 2001 31.12. 2000 1,528 325 1,853 Â- 1 1 Â- Â- Â- 427 123 550 197 68 265 1,758 381 2,139 2,276 143 2,419 2,054 84 2,138 1,714 10,053 Â-1 29 22 327 ...

  • Page 51
    ...financial operations. Financial operations include financial services and the activities of the Group financing companies. The operating interest income and expense of financial operations is included in revenues and cost of sales. The holding companies BMW (UK) Holdings Ltd., Bracknell, BMW Holding...

  • Page 52
    ... have been consolidated using the equity method. Three (previous year: 3) associated companies are not included due to their relative insignificance to the GroupÂ's financial and earnings position. These associated companies are shown at cost, less write-downs where applicable, under investments in...

  • Page 53
    ... Following the disposal of the financing business for Rover Cars and Land Rover vehicles to the Phoenix Consortium and to Ford Motor Company, Dearborn, Mich., Rover Financial Services (GB), Hook, ceased to be a Group company. BMW Financial Services Holding GmbH, Munich, is no longer consolidated as...

  • Page 54
    ... Contracts) using the percentage of completion method. Revenues also include lease rentals and interest income from financial services. Cost of sales comprises the cost of manufacturing products which have been sold and the acquisition cost of purchased merchandise. It includes directly attributable...

  • Page 55
    ... Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index attributable to lease business and interest expense arising from the refinancing of financial services. Research costs...

  • Page 56
    ... This includes production-related depreciation and an appropriate proportion of administrative and social costs. Financing costs are not included in acquisition or manufacturing costs. Non-current assets also include assets relating to leasing. The BMW Group uses property, plant and equipment as the...

  • Page 57
    ...to take account of general credit risk. Receivables from sales financing comprise receivables from customer, dealer and lease financing. Derivative financial instruments are only used within the BMW Group for hedging purposes in order to reduce the currency, interest rate and market price risks from...

  • Page 58
    ... using the projected unit credit method in accordance with IAS 19 (Employee Benefits). Under this method, not only obligations relating to known vested benefits at the reporting date are recognised, but also the effect of future increases in pensions and salaries. This involves taking account...

  • Page 59
    ... balance sheet: Assets in euro million IAS HGB Change Intangible assets Property, plant and equipment Financial assets Leased products Non-current assets Inventories Assets from sales financing Receivables from sales financing Other current assets and prepayments Current assets Deferred tax...

  • Page 60
    ... and new measurement of leased products Other Non-current assets at 1.1.2001 under IAS 6,763 +2,054 +669 +7,206 +670 +119 17,481 Inventories In accordance with German accounting law, inventories of the groupÂ's production companies were measured for HGB purposes at direct costs of production...

  • Page 61
    ... Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Assets from sales financing (receivables from sales financing) Assets from sales financing...

  • Page 62
    ... remains relatively low however since the BMW Group was already using a discount rate of 5 % for HGB purposes which led to a higher provision. The increase is due to the fact that the computation took account of the career progression of all employees in Germany. Other provisions may only be...

  • Page 63
    ... of development costs Deferred taxes Inventory valuation Derecognition and different measurement of other provisions Depreciation on non-current assets Reclassification of operating leases to finance leases Release of allowances on receivables Fair value measurement of financial instruments...

  • Page 64
    ... of development costs Deferred taxes Inventory valuation Derecognition and different measurement of other provisions Depreciation on non-current assets Effect of asset backed financing transactions and lease arrangements Release of allowances on receivables Fair value measurement of financial...

  • Page 65
    ... the BMW Group undertaken in fiscal year 2000, the development, production and sales of Rover Cars, part of the Rover Automobile segment, was sold to the Phoenix Consortium on 9 May 2000 for a consideration of GBP 10. The other part, the Land Rover busi- ness, was acquired by the Ford Motor Company...

  • Page 66
    ...and related goods Income from lease instalments Sale of products previously leased to customers Interest income on loan financing Other income 31,222 2,505 2,851 1,277 608 38,463 28,882 3,052 3,357 1,312 623 37,226 Revenues of euro 61 million (2000: euro 27 million) were recognised on service and...

  • Page 67
    ... Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index [12 ] Other operating income and expenses in euro million 2001 2000 Income from the release of provisions Exchange...

  • Page 68
    ... Income from associated companies includes the equity results of Rover Finance Holdings Ltd., Guildford, and of the joint venture TRITEC Motors Ltda., Campo Largo. Write-downs on non-current financial assets and current marketable securities amounted in total to euro 3 million (2000: euro 6 million...

  • Page 69
    ... of operations in the year under report. There were no changes in accounting policies as defined by IAS 8 (Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies) in the past and thus no impact on the tax expense. Deferred taxes are computed using tax rates based...

  • Page 70
    ... assets and property, plant and equipment and a write-down of euro 40 million (2000: euro 0 million) on consolidations. In the year under report, deferred taxes recognised directly against equity reduced by euro 44 million (2000: euro 12 million). The actual tax expense in fiscal year 2001 of euro...

  • Page 71
    ... Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index in euro million 2001 2000 Expected tax expense Variances due to different tax rates Tax...

  • Page 72
    ... costs on vehicle and engine projects as well as subsidies for tool costs, licences, purchased development projects and software. Changes in intan- gible assets during the year are shown in the analysis of changes in Group non-current assets on pages 48 and 49. [18] Property, plant and equipment...

  • Page 73
    ... into additional shares in Rolls-Royce plc, London. [ 20 ] Leased products The BMW Group, as lessor, leases out assets (predominantly own products) as part of sales financing. Minimum lease payments of euro 3,736 million (2000: euro 3,437 million) from non-cancellable operating leases fall due...

  • Page 74
    ... Goods for resale Advance payments to suppliers 563 737 2,582 617 2 4,501 498 583 1,970 650 6 3,707 The increase in finished goods is attributable to the expansion of business and the build-up of inventory levels in conjunction with the market launches of the MINI and BMW 7 Series. At 31 December...

  • Page 75
    ... Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Receivables from sales financing Receivables from sales financing comprise euro 13,108 million (2000: euro 12,604 million) for loan financing and operating leases...

  • Page 76
    ... previous year, this position includes deferred interest receivable, receivables from employees and the excess of pension fund assets over pension obligations. [ 23 ] Marketable securities Current marketable securities comprise: in euro million 31.12. 2001 31.12. 2000 Stocks Investment funds...

  • Page 77
    ...Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index The contracted maturities of debt securities are as follows: in euro million 31.12. 2001 31.12. 2000...

  • Page 78
    ... to the proposed dividend payment will be recognised as a tax benefit in fiscal year 2002. Additional claims to tax reductions of euro 133 million (2000: euro 191 million) arising under the old income tax system can be made by BMW AG during the transition period of 15 years on dividends paid out...

  • Page 79
    ... level trend refers to the expected rate of salary increase which is estimated annually depending on inflation and the period of service of employees with the Group. In the case of funded plans, the defined benefit obligation is reduced by the plan assets. Where the plan assets exceed the pension...

  • Page 80
    in euro million 31. December Germany 2000 2001 UK 2001 2000 Other countries 2001 2000 Total 2001 2000 Present value of pension benefits covered by accounting provisions Present value of funded pension benefits Defined benefit obligation Fair value of fund assets Net obligation Surplus of fund ...

  • Page 81
    ... Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index in euro million Germany 2000 2001 UK 2001 2000 Other countries 2001 2000 Total 2001 2000 Current service cost...

  • Page 82
    ... relates to the transfer of employees of non-consolidated subsidiaries to BMW AG. [ 28 ] Other provisions Other provisions comprise the following: in euro million 31.12. 2001 Total thereof due within 1 year 31.12. 2000 Total thereof due within 1 year Taxes Obligations for personnel and social...

  • Page 83
    ... BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Provisions for obligations for personnel and social expenses comprise mainly profit-share schemes and bonuses, employee long-service awards, vacation entitlements, flexible working-time credits and part...

  • Page 84
    31. December in euro million 2000 Maturity within 1 year Maturity between 1 and 5 years Maturity later than 5 years Total Bonds Liabilities to banks Liabilities from customer deposits (banking) Commercial papers Bills of exchange Other debt 5,024 942 1,484 602 1 4,755 12,808 4,091 2,640 261 Â- ...

  • Page 85
    ...AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index The following details apply to the commercial papers: Issuer Issue volume in relevant currency (ISO-Code) Weighted average maturity period (in days) Weighted average effective interest rate (in %) BMW AG, Munich...

  • Page 86
    ... in euro million 2000 Maturity within 1 year Maturity between 1 and 5 years Maturity later than 5 years Total Taxes Social security Employees Advance payments received from customers Deposits received Interest Subsidiaries Fair values of derivative financial instruments Liabilities to associated...

  • Page 87
    ... import companies. The BMW Motorcycles segment develops, manufactures, assembles and sells BMW brand motorcycles and C1 as well as spare parts and accessories. The Financial Services segment focuses primarily on leasing automobiles, providing loan finance for customers, dealers and insurance...

  • Page 88
    ... on the location of the customerÂ's registered office. Segment information is provided for the regions Germany, rest of Europe, America and Africa, Asia and Oceania, in line with internal management and reporting procedures. Segment information by region in euro million External revenues 2000 2001...

  • Page 89
    ...Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index Segment information by business segment in euro million BMW Automobiles 2001 2000 Rover Automobiles 2001 2000 Revenues...

  • Page 90
    BMW Motorcycles 2001 2000 Financial Services 2001 2000 Reconciliations 2001 2000 Group 2001 2000 1,055 14.2 4 Â- 1,059 14.1 92 33 59 78.8 Â- 59 78.8 5.6 Â- 74 68 Â- 542 375 2,633 924 6,725 Â- 13.8 7,800 702 58.8 442 38,463 3.3 37,...

  • Page 91
    ... Expenditure for purchased services 20,010 868 20,878 Personnel costs Wages and salaries Social security, pension costs thereof for pensions: euro 560 million (2000: euro 531 million) 6,079 6,095 5,134 945 5,139 956 19,967 738 20,705 The average number of employees during the year was as follows...

  • Page 92
    In the year 2000, the average number of employees includes the workforce of Rover Cars and Land Rover for the appropriate periods. The reduction of the average number of employees is partly due to the sale of Rover Cars and Land Rover and partly due to the transfer, in 2001, of the supplier plant ...

  • Page 93
    ...108 112 BMW Group in figures Report of the Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index The above amounts include euro 56 million (2000...

  • Page 94
    ..., from which exchange rate risks arise. The BMW GroupÂ's operations are financed in various currencies, mainly by the issue of bonds and medium term notes and through bank loans. The BMW GroupÂ's financial management system involves the use of all standard types of financial instrument, e. g. short...

  • Page 95
    ... Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index These interest rates, were adjusted where necessary to take account of the credit quality...

  • Page 96
    ...-for-sale securities, recognised directly in equity, were realised as income or expense in the fiscal years 2000 and 2001. Credit risk The amount recognised in the balance sheet for financial assets is, ignoring any collateral received, the maximum credit risk in the case that counterparties...

  • Page 97
    ... Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index cash flow statement do not therefore agree directly with the amounts shown in the Group balance sheet. The cash inflow from operating...

  • Page 98
    ... the net assets, financial position, results of operations and cash flows of the Group for the business year in accordance with International Accounting Standards. Our audit, which also extends to the group management report prepared by the CompanyÂ's management for the business year from 1 January...

  • Page 99
    ... Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW AG Balance Sheet at 31 December Assets in euro million 2001 2000 Intangible assets Property, plant and equipment...

  • Page 100
    ... in euro million 2001 2000 Subscribed capital Capital reserves Revenue reserves Unappropriated profit available for distribution Equity Registered profit-sharing certificates Special tax allowable reserve Pension provisions Other provisions Provisions Trade payables Liabilities to subsidiaries...

  • Page 101
    ... Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW AG Income Statement in euro million 2001 2000 Revenues Cost of sales Gross profit Sales and marketing costs Administration costs Other operating...

  • Page 102
    ... of BMW AG, of which the balance sheet and the income statement are presented here. The financial statements are published in the German Federal Gazette and filed with the Trade Register of the Munich District Court. These financial statements are available from BMW AG, D-80788 Munich, Germany. 101

  • Page 103
    ... BMW Group in figures Report of the Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW AG Subsidiaries Principal subsidiaries of BMW AG...

  • Page 104
    ... to the Group financial statements. Equity and net result of companies outside the Federal Republic of Germany are converted using the closing rate. 2] Less than euro 500,000 3] Profit /loss transfer agreement with a subsidiary of BMW AG 4] Profit /loss transfer agreement with BMW AG 5] Consolidated...

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    ...Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW Group 10 year comparison 2001 IAS 2000 IAS Revenues Change Vehicle production Automobiles1] Motorcycles2] Deliveries to customers...

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    ...266 47,255 755 384 371 116 3] includes deliveries of C1 from 2000 4] from 1998 figures exclude suspended contracts of employment, employees in the vacation phase of pre-retirement, low-income earners / 2000 adjusted for the euro 663 million before extraordinary result 8] calculation under HGB 105

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    ... the Supervisory Board Supervisory Board Board of Management Group Management Report BMW Stock Group Financial Statements BMW AG Financial Statements BMW Group Annual Comparison BMW Group Locations Glossary Index BMW Group Locations. With 22 production and assembly plants, 26 sales subsidiaries and...

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    ... Munich BMW Technik, Munich BMW Car IT, Munich Designworks, Newbury Park, USA BMW Motoren, Steyr, Austria Production Berlin plant Dingolfing plant Eisenach plant Hams Hall plant, GB Landshut plant Munich plant Oxford plant, GB Regensburg plant Rosslyn plant, South Africa Spartanburg plant, USA Steyr...

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    ... from sales financing + Other receivables + Marketable securities + Cash and cash equivalents = Current assets [Customer Relationship Management] The BMW Group is integrating all activities and responsibilities in customer relations. In addition to the GroupÂ's overall customer support strategy, the...

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    ...Integral ABS] As a world-first achievement on the motorcycle, BMW Integral ABS uses the technical options of the newly developed third generation of ABS and combines this new technology with additional functions. The system incorporates an electrohydraulic brake servo as well as adaptive brake force...

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    ... five years) to subsidiaries and to other companies in which shares are held, investments in other companies, long-term marketable securities, other loans. [Online ordering] Online ordering helps to significantly speed up change management in handling customer orders, expedites the order processing...

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    ... driving abilities in terrain, on the other. This creates a new market segment. [Subscribed capital] The share capital of a company is computed by multiplying the nominal value of the shares (euro 1) by the number of shares. [Sustainability] The process of stable, ongoing development. The United...

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    ...86 Cost of materials 90, 110 Current assets 37, 44, 47, 56, 58 contd., 66, 69, 98, 104, 108 Customer Relationship Management 21, 108 [ D] DAX 29, 31, 108 Dealer network 16, 22 Deferred taxes 47, 55 contd., 61 contd., 68 contd., 77, 95, 108 Deliveries to customers 1 contd., 13 contd., 104 Dividend 12...

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    ...42, 87 contd., 110 Risk management 26, 111 [ S] Sales and marketing 100 Sales volume (see Deliveries to customers) Segment information 65 contd., 86 contd. SMG 20, 111 Sports Activity Vehicle 14, 18 contd., 111 Stock 12, 29 contd., 47, 54, 76 contd., 80, 93, 108, 110 Stock exchange 29 contd., 80, 92...

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    Driving Innovation

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    Contents Preface by the Chairman of the Board of Management Driving Innovation Experiencing Innovations Enhancing Agility Developing Markets Practising Responsibilty Formula 1 Â- Setting Standards Product Portfolio Highlights BMW Brand Highlights MINI Brand 04 08 14 24 34 38 44 50 52 60

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    Driving innovation: thinking along new lines is the prerequisite for progress. What is needed are innovations that provide benefit and pleasure to our customers. Only ongoing development secures the outstanding position of the BMW Group. The challenge is to ask the right questions more quickly, to ...

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    ... far the most successful business year in the history of the BMW Group, with sales and results once again reaching new record levels. Delivering more than 900,000 BMW and MINI cars to customers, we succeeded in increasing retail sales by more than 10 per cent in a world market stagnating as a whole...

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    ... of our products and outstanding brands. This, in turn, gives us an edge over the competition not only in core markets, but particularly in the new, dynamic, high-growth markets of Asia or South America. Customers the world over acknowledge BMW Group cars and motorcycles today as symbols of quality...

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    ...BMW as the only car in its range with standard drive. Launching the X3, we will have a small Sports Activity Vehicle following the philosophy of the X5, expanding the X family. The new BMW 6 Series will continue our heritage of sporting and elegant high-performance coupés with a high prestige value...

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    ... through our product and market offensive for the ongoing success of the BMW Group. We have given ourselves targets now being pursued with a clear, ongoing and consistent focus. We intend to be the most successful premium manufacturer in the automotive industry. We will continue to work at this...

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    8

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    Driving Innovation He who has more questions will find more answers

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    Must you really run into a traffic jam first before you receive a warning? 9

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    Driving Innovation What is the best way to structure work in order to gain time? 10

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    How fast must you be to use your opportunities? 11

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    Driving Innovation 12

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    Can you make fuel out of water? 13

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    All technical options are used in the design process to make new shapes and designs reality. CAS (Computer-Aided Styling) serves to implement alternative drafts quickly and efficiently. 14

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    Driving Innovation Experiencing Innovations

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    Experiencing innovations. Headlights that know when the next bend is approaching? Traffic jam warnings that prevent a traffic jam? Steering that shortens stopping distances? Engines able to breathe more freely?

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    Technology does not determine design Â- and not every technology automatically means better results. So BMW Group design starts out as craftsmanship Â- the work of genuine artists. This is the fastest and most flexible way to create emotional, dynamic structures. 15

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    ... Innovations Seeking out new opportunities Â- developing the future. The BMW Group is currently pursuing the most comprehensive product offensive in the history of the company. By the year 2006, the BMW Group will be spending some euro 10 billion on research and development, since the key to the...

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    ...on driving conditions and requirements. All four-cylinder petrol engines in the BMW 3 Series already incorporate VALVETRONIC, and this new technology is also featured in the two 8-cylinder power units of the new BMW 7 Series. In the year 2002 it will follow in the 12-cylinder engine.The BMW Group is...

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    ... road maps used in the BMW navigation system. ALC is therefore able to determine exactly where the car is at any point in time. Together with further information on the speed of the car, the angle of the steering and lateral acceleration, ALC will then provide exactly the right light in all driving...

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    ... or in bad weather. And the BMW GroupÂ's development specialists are also working on systems feeding in information signals, such as light fields incorporating navigation arrows for changing direction. All of these three light systems are part of ConnectedDrive, BMW GroupÂ's offensive for the...

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    Experiencing Innovations BMW Z9 gran turismo Concept Car Detail of BMW X coupé Concept Vehicle 20

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    ...stand for, freely and without restrictions. The response to these concept cars both by the public and within the company itself also shows what is possible and can be achieved today and in the future. Ultimately, this defines the bandwidth in design of the BMW brand, with a spectrum ranging directly...

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    Experiencing Innovations 22

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    The new BMW 7 Series was the most challenging type of project any design team can take on: interpret the top image-driving product of a successful brand into the next millennium Â- and do it in a manner that could be the starting point for a whole new generation of diverse but equally successful ...

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    24

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    Driving Innovation Enhancing Agility

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    Enhancing agility. How flexible and fast can production be? Teamwork beyond borders?

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    Z8 production at the Munich plant 25

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    ...the GroupÂ's CustomerOriented Sales and Production Process or KOVP for short, to use the German abbreviation. The basic point is that processes are determined not by the kind of car the company would like to build, but rather by the car the customer himself wishes to drive and specifies in his order...

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    MINI bodyshop at the Oxford plant 27

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    Enhancing Agility BMW bodyshop at the Regensburg plant 28

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    ... in each market. Consistent application of uniform standards in quality, safety and job processes within the plant network guarantees premium products Â"made byÂ" the BMW Group the world over. In 2001 the BMW Group further expanded its production network, opening the new engine plant in Hams...

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    ... Britain, the BMW GroupÂ's third-largest market after Germany and the USA, where, after a construction period of less than three years, engine production at the new Hams Hall plant started in early 2001. The total investment by the BMW Group in this 170,000 square metre location near Birmingham is...

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    [Top ] MINI production with ergonomic wooden floor panels at the Oxford plant [ Bottom ] Engine production at the Hams Hall plant 31

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    Enhancing Agility Quality audit at the Oxford and Regensburg plants 32

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    ... or extended shift periods creates a supreme standard of flexibility Â- a solution benefiting employees and the company alike. The workforce of approximately 5,500 new employees will enjoy secure jobs with a locally competitive income. Through its Â"BMW Formula for WorkÂ", the BMW Group is improving...

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    34

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    Driving Innovation Developing Markets

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    Developing markets. Using opportunities as soon as they arise? Finding partners where others do not know where to go? Remaining consistent when you believe in others?

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    35

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    Developing Markets 36

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    ... customer service, with branches in metropolitan centres, which also means in the fast-growing markets of Asia, a significant growth region for the BMW Group. The Company has been directly represented here for years, pursuing a long-term strategy in the process ever since 1981, when the BMW Group...

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    BMW hydrogen engine 38

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    Driving Innovation Practising Responsibility

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    Practising responsibility. Fuel made out of water? Materials able to save energy? Paint that does not have to dry?

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    ...of the production chain. Sustainability is becoming the fundamental principle of economic and social prosperity, also crucial to the interaction of markets and democracies. The BMW Group will continue its commitment to sustainable development as a future-oriented principle of its corporate strategy...

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    Practising Responsibility [1] Powder clear coating Â- BMW 7 Series production at the Dingolfing plant 40

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    ... production processes. The fulfilment of strict environmental standards is part of production quality. Application of the paintwork is one example. The BMW Group was the first car maker in the world to use powder clear coat, harmless to the environment, at the Dingolfing plant in 1997. Our new plant...

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    ...step is to join forces with strong partners in the worlds of business and politics, ensuring the industrial production and nationwide distribution of hydrogen produced in an environmentally friendly process. The CleanEnergy WorldTour conducted by the BMW Group in the year 2001 supported the cause of...

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    The BMW 745h prototype based on the new 7 Series with both a hydrogen and a petrol tank. 43

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    ... to their positions and the five red lights at the start come on. The engines are revving to their maximum limit. Once the last light goes out, the on-board electronic control systems will control rear-wheel spin. Like missiles, the cars set out on their 300-km trial. Is our strategy right? Are...

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    Driving Innovation Setting Standards

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    45

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    Setting Standards 46

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    47

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    Setting Standards 48

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    ... the start was to bring together Formula 1 and series development Â- and this is precisely what has happened. Electronics specialists working on the engine control units of the BMW M3 and M5 also develop the engine management in F1. These synergy effects go in both directions, the new BMW 7 Series...

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    50

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    ...BMW 3 Series saloon BMW 3 Series coupé BMW 3 Series convertible BMW 3 Series touring BMW Group 2001 MINI One BMW Z3 coupé BMW Z3 BMW M3 BMW 5 Series touring BMW 5 Series saloon MINI Cooper BMW X5 BMW M5 BMW 7 Series saloon BMW Z8 C1 200 MINI Cooper S F 650 CS R 1150 GS Adventure...

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    ... kw (184 bhp) * available with all-wheel drive as an option Sports Tourers R 1100 S 1.085 cc, 72 kw (98 bhp) R 1150 RS 1.130 cc, 70 kw (95 bhp) K 1200 RS 1.171 cc, 72 kw (98 bhp) or 96 kw (130 bhp) X5 X5 3.0i 2.979 cc, 170 kw (231 bhp) X5 4.4i 4.398 cc, 210 kw (286...

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    ... in the world to concentrate exclusively on the premium segments of the global automobile market. Premium means added value. The authentic BMW and MINI brands with their clear profile give the customer a direct, immediate feeling of this added value borne out by emotional products with outstanding...

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    ... engines. The range starts with the 316ti featuring the worldÂ's first-ever VALVETRONIC power unit and extends via the 318ti also equipped with VALVETRONIC all the way to the straight-six power unit in the 325ti. The 320td diesel offers a standard of performance and refinement only a sports car...

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    Driving Innovation Making Ideas Come True

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    ... further developed to an even higher standard providing even more agile handling on the road Â- sheer driving pleasure at its best. Advanced engine technology for more performance, extra comfort and much better fuel economy benefit the driver of a BMW 3 Series featuring the new four-cylinder diesel...

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    ... adjusts damper forces permanently and infinitely to road conditions and the carÂ's dynamic performance. The result is perfect harmony of sportiness and comfort. The new concept of the 7 Series and the innovative iDrive control system, in turn, have enabled BMWÂ's designers to create a new world of...

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    55

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    ... wheel, shifting up on the right and down on the left while keeping his foot fully on the accelerator pedal. BMW M, in close cooperation with Getrag and Sachs, has successfully converted this technology in motorsport to a practical experience on the road, developing a new high-performance drive...

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    ...347 horsepower accelerating this all-wheel-drive performance vehicle to 100 km/h in 6.5 seconds. Combining offroad driving qualities with the dynamism of a sports car, the X5 is at home both in terrain and on the road. The reserves offered by the suspension of the X5 have been demonstrated not least...

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    ... 42 per cent. This guarantees swift acceleration from the traffic lights as well as faster overtaking where it really counts. The result is an even greater experience of C1 driving pleasure. Business commuters and other drivers of the C1 also use the motorway near big cities or in densely populated...

  • Page 189
    ... 2002. The R 1150 GS Adventure will serve to further strengthen BMWÂ's leading position in the market segment of large-capacity long-distance enduros. Based on the R 1150 GS remaining in production, the R 1150 GS Adventure comes with modified standard equipment and a new, special range of options...

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    MINI Brand 60

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    ... new class of purchasers, further enlarging the market presence of the BMW Group. MINI is the expression of a modern, urban lifestyle. MINI means joy of life, bringing together different classes, countries and generations. All models in the MINI range stand out through their unmistakable design. All...

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    ... in the range, it features particularly elaborate technology and offers a standard of performance living up in every respect to the great name of the MINI Cooper S. Equipped with PLUS sports suspension, the MINI Cooper S caters even more directly for the needs and preferences of the dynamic driver...

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    63

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    ... E-mail [email protected] Investor Relations Telephone +49 (0) 89-3 82-2 42 72 +49 (0) 89-3 82-2 53 87 Telefax +49 (0) 89-3 82-2 44 18 E-mail [email protected] Further information on the BMW Group is available at the internet address http://www.bmwgroup.com BMW Group publications For an overview of...

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    Financial Calendar Interim Report for the period ending 31 March 2002 Annual General Meeting Interim Report for the period ending 30 June 2002 Interim Report for the period ending 30 September 2002 Letter to Shareholders May 2002 16 May 2002 August 2002 November 2002 January 2003

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    Published by Bayerische Motoren Werke Aktiengesellschaft Petuelring 130 D-80788 Munich Telephone +49 (0) 89-3 82-0