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Annual Report 2003
Developing power.
Rolls-Royce
Motor Cars Limited

Table of contents

  • Page 1
    Annual Report 2003 Developing power. Rolls-Royce Motor Cars Limited

  • Page 2
    ... 22.4 - 0.4 2.9 Rolls-Royce Motorcycles 2] Workforce at end of year 3] in euro million 1999 HGB 2000 HGB 2000 IAS 2001 IAS 2002 IAS 2003 IAS Change in % Revenues Capital expenditure Depreciation and amortisation Cash flow Profit from ordinary activities Net profit, - loss for the year 34...

  • Page 3
    BMW Group Revenues in euro billion BMW Group Capital expenditure in euro million 45...03 IAS after harmonisation of internal and external reporting systems BMW Group Deliveries of automobiles* in thousand BMW Group Profit from ordinary activities in euro million 1,200 ... for Rover/Land Rover

  • Page 4
    ... Board Members of the Board of Management Group Management Report A Review of the Financial Year Outlook Financial Analysis Earnings performance Financial position Net assets position Value added statement Key performance figures Comments on financial statements of BMW AG Risk Management BMW Stock...

  • Page 5
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 6
    ... of the BMW plant inLeipzig continued to progress in line with plan. The Board of Management regularly reported to the Supervisory Board about the continued positive development of the Group's motorcycle business. The encouraging and continuing progress made by the Financial Services segment was...

  • Page 7
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 8
    ... objections were made. The Supervisory Board expressed its particular thanks to the Board of Management and to the employees of the BMW Group for another year of exceptional performance in 2003. Following registration of the appointment with the District Court of Munich, Franz Oberländer joined the...

  • Page 9
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 10
    ... Biology (retired) Mandates** Fresenius Medical Care AG HeidelbergCement AG Hans Glas* Director of the Dingolfing plant Konrad Gottinger* Member of the Works Council, Dingolfing Gerhard Gutsmiedl* (until 31. 01. 2003) Deputy Chairman of the Works Council, Munich Mandates** Aventis S. A. Münchener...

  • Page 11
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 12
    ...of the Board of Management Dr. Helmut Panke Chairman Dr.-Ing. Norbert Reithofer Mandates** BMW Brilliance Automotive Ltd. BMW Motoren GmbH (Chairman) BMW Ã-sterreich Holding GmbH (Chairman) BMW (South Africa) (Pty) Ltd. (Chairman) Mandates Microsoft Corp. ** Ernst Baumann Mandates** Krones AG Dr...

  • Page 13
    ... Management Report. The BMW Group continued on its successful course in 2003, pushing ahead with its product and market offensive. There have never been as many new models presented in one year as in 2003. At the same time the BMW Group set its sights on new sales markets and target groups as part...

  • Page 14
    ... reported by the BMW Group for 2003. As a consequence of the impact of exchange rate changes, Group revenues fell by 2.1% to euro 41,525 million. Adjusted for changes in exchange rates, the Group achieved sales revenue growth of 4.2 %. Revenues of the Automobiles segment surpassed the previous year...

  • Page 15
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 16
    ... in 2002 according to plan. Production of BMW Z8 cars, which are handfinished at the BMW plant in Munich, was also discontinued in line with plan in 2003. Overall, the BMW Group has manufactured more than 5,700 units of this exclusive roadster over the last four years. BMW Group Deliveries of...

  • Page 17
    ...Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Deliveries...

  • Page 18
    ... was selected by 13,284 customers. The Motorcycles segment incurred substantial up-front expenditure during the financial year 2003 for new models which will be launched in 2004. BMW Group - key motorcycle markets 2003 as a percentage of sales volume Germany USA Italy France Spain United Kingdom...

  • Page 19
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW plant...

  • Page 20
    ...fleet lease services. 33,969 financing contracts were signed in 2003 with fleet customers, representing a 52.9 % growth over the previous year. More than 3,000 new jobs created At the end of 2003, the BMW Group had a worldwide workforce of 104,342 employees, 2.9 % more than at the end of 2002. After...

  • Page 21
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

  • Page 22
    ... throughout the Group's plants as part of the process of model change and in order to increase production capacity. Work on the new factory building at the BMW plant in Munich started at the beginning of 2003, and the project will be completed by the end of 2004. Other important capital expenditure...

  • Page 23
    ... Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Construction work for phase VII of the extension at the BMW Steyr plant commenced in April 2002...

  • Page 24
    ...,000 times each month, usually to make changes for additional equipment. Production logistics have also been remodelled using KOVP: not only is it possible to offer the customer faster and more individual service, but costs have also been reduced through shorter processing times, whilst quality has...

  • Page 25
    ... Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Research and development...

  • Page 26
    ...customer needs, also directly in the sales markets. The BMW Group has more than 8,600 people working worldwide in the field of research and development. New organisational structures introduced in conjunction with building extension work started at the Research and Development Centre (FIZ) in Munich...

  • Page 27
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 28
    ... Group makes use of worldwide purchasing opportunities. Partner Portal goes online. the process of vehicle development and production. The selection of suppliers takes account of technical expertise and innovative skills, as well as of ecological and social criteria. In spring 2003, the BMW Group...

  • Page 29
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

  • Page 30
    ...better than each of the relevant markets as a whole. With its premium brands BMW, MINI and Rolls-Royce and numerous new models, the BMW Group will continue to benefit from this development. Positive outlook for 2004 The BMW Group will carry through its product and market offensive in 2004. With the...

  • Page 31
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Analysis...

  • Page 32
    ... by 12.8 %, mainly on the back of exports to China. The lower US dollar exchange rate resulted in a 14.3 % drop in revenues for the Americas region compared to the previous year. The USA remained, however, the strongest market in revenue terms for the BMW Group. The reduction of cost of sales was...

  • Page 33
    ... Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index also includes a marginally negative...

  • Page 34
    ... expenditure for new models which will come onto the market from the beginning of the financial year 2004. The BMW Group expanded the activities of its Financial Services segment and continued its growth course in 2003. Revenues fell by 9.1% mainly as a result of exchange rate changes. The segment...

  • Page 35
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Change...

  • Page 36
    ... plant and equipment 46 % 33 % 44 % 32 % 43 % 45 % Equity Inventories 19 % 19 % 27 % 28 % Provisions Receivables 24% 23 % 27 % 20 % Liabilities Cash and cash equivalents and marketable securities Deferred tax assets and prepayments 10 % 1% 2003 13 % 1% 2002 3% 2002 7% 2003 Deferred...

  • Page 37
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 38
    ... statement, is treated as internal financing. In 2003, the net added value generated by the BMW Group, of euro 11,550 million (2002: euro 11,705 million) was 1.3 % lower than in the previous year. This reduction was due to the (exchange rate induced) lower level of revenues compared to the previous...

  • Page 39
    ... Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group value added statement in euro million 2003 2003 in % 2002 reclassified 2002 in % Change in % Work performed Revenues Financial income Other income Total Group output Cost of...

  • Page 40
    ... 2003 2002 Gross Margin EBITDA Margin EBIT Margin Pre-tax return on sales Post-tax return on sales Pre-tax return on equity Post-tax return on equity Equity ratio - Group Industrial operations Financial operations Equity as a percentage of non-current assets (excluding leased products) Equity...

  • Page 41
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 42
    BMW AG Balance Sheet at 31 December in euro million 2003 2002 ASSETS Intangible assets Property, plant and equipment Financial assets Non-current assets Inventories Trade receivables Receivables from subsidiaries Other receivables and other assets Marketable securities Cash and cash equivalents ...

  • Page 43
    ...29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW AG Income Statement in euro million 2003 2002 reclassified 2002 Revenues Cost of sales...

  • Page 44
    ... 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. 43

  • Page 45
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 46
    ...", the BMW Group is well prepared to deal with end-of-life vehicles. - The change in fuel prices, partly affected by the market and partly by governmental tax policies, and the requirement to reduce the fleet fuel consumption and CO2 emissions set high demands on engine and product development...

  • Page 47
    ... Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index - The financing...

  • Page 48
    ... year-end closing price of BMW common stock was euro 36.95, 24.0 % higher than its price at the beginning of the year. Sustainability as a success factor For the fifth time in succession, the BMW Group was included in 2003 in the family of sustainability Development of BMW stock compared to stock...

  • Page 49
    ... Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW stock 1999 2000 2001 2002 2003 Common stock Number of shares in 1,000 Stock exchange price in euro1] Year-end closing price...

  • Page 50
    ... factor for success. This link is documented in the Sustainable Value Report 2003/2004, which was published in autumn 2003. The report has been prepared along the lines of the guidelines issued by Global Reporting Initiative (GRI). It provides detailed information about the BMW Group's involvement...

  • Page 51
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Corporate...

  • Page 52
    ... of compensation is based on the BMW Group's net profit for the relevant year and the level of the dividend. An upper limit is set for the compensation of the Board of Management. The compensation system does not include any stock options, value appreciation rights which work in the same way as...

  • Page 53
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 54
    ... and sale of share in BMW AG by members of the Board of Management and Supervisory Board are posted on a timely and up-to-date basis on the BMW Group website. Each notification is reported on the Internet for at least 30 days. From the perspective of the BMW Group, the interests of shareholders and...

  • Page 55
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 56
    BMW Group Group and sub-group Income Statements in euro million Notes Group 2003 2002 reclassified 2] Industrial operations 1] 2003 2002 reclassified 2] Financial operations 1] 2003 2002 reclassified 2] Revenues Cost of sales Gross profit Sales and administrative costs Research and development...

  • Page 57
    ...Notes Group 2002 2003 Industrial operations1] 2003 2002 Financial operations1] 2003 2002 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...

  • Page 58
    ... Group 2002 2003 Industrial operations1] 2003 2002 Financial operations1] 2003 2002 Subscribed capital Capital reserves Revenue reserves Accumulated other equity Equity Minority interest Pension provisions Other provisions Provisions Debt Trade payables Other liabilities Liabilities Deferred tax...

  • Page 59
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

  • Page 60
    ...of leased products Additions to receivables from sales financing Payments received on receivables from sales financing Investment in marketable securities Proceeds from marketable securities Cash outflow from investing activities Payment into equity Payment of dividend for the previous year Proceeds...

  • Page 61
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

  • Page 62
    ... Notes. In order to support the sale of BMW products, the BMW Group provides various financial services - mainly loan and lease financing - to its customers. The inclusion of the financial services activities of the Group therefore has an impact on the Group financial statements. In order to provide...

  • Page 63
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index The Group...

  • Page 64
    ... held (associated companies). Under the equity method, investments are measured at the group's share of equity taking account of fair value adjustments on acquisition, based on the group's shareholding. Any difference between the cost of investment and the group's share of equity is accounted for in...

  • Page 65
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 66
    ... other intangible assets relating to production and write-downs on inventories. Cost of sales also includes freight and insurance costs relating to deliveries to dealers and agency fees in the case of direct sales. Expenses which are directly attributable to financial services business and interest...

  • Page 67
    ...Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Expenditure on low value non-current...

  • Page 68
    ... in non-consolidated group companies reported in non-current financial assets are measured at cost, since published price quotations in an active market are not available and their fair value cannot be reliably determined. Associated companies are consolidated using the equity method, whereby the...

  • Page 69
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 70
    ... BMW Group to discontinue the use of different methods for presenting results for internal and external purposes, a time-consuming approach often applied in Germany. The objective of international accounting standards is to provide information to users that is relevant for their economic decision...

  • Page 71
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 72
    ... insurance for deliveries to dealers are now reported in costs of sales rather than in sales costs. Agency fee cost relating to financial services business and direct sales are now reported in cost of sales rather than in sales costs. A number of administrative costs have been reclassified, mainly...

  • Page 73
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

  • Page 74
    ...in euro million 2003 2002 reclassified Manufacturing costs Warranty expenditure Cost of sales directly attributable to financial services Interest expense for financial operations Expense for risk provisions and write-downs for financial services business Other cost of sales Cost of sales 22,997...

  • Page 75
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 76
    ... expenses - expense from reversing the discounting of pension obligations Reclassification from cost of sales - corporate administrative costs Reclassification from research and development costs - sundry cost of sales Sales and administrative costs 2002 reclassified * 4,903 - 619 - 129 - 11...

  • Page 77
    ... Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Notes to the reclassification of the previous year's figures*: in euro million 2002 Research and development costs...

  • Page 78
    ...2003 2002 reclassified Exchange gains Income from the release of provisions Income from the reversal of write-downs Gains on the disposal of non-current assets Sundry operating income Other operating income Exchange losses...includes public-sector grants of euro 33 million (2002: euro 11 million) and...

  • Page 79
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 80
    ... income Expense from reversing the discounting of pension obligations Expense from reversing the discounting of other long-term provisions Write-downs on current marketable securities Sundry interest and similar expenses - thereof to subsidiaries euro 2 million (2002: euro 3 million) Interest and...

  • Page 81
    ...Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Income from investments arises principally from the investment in Rolls-Royce plc, London. Losses...

  • Page 82
    ... applicable for 2003, a corporation tax rate of 26.5 % applies. After taking account of the average multiplier rate (Hebesatz) of 410 % for municipal trade tax and the solidarity charge of 5.5 %, the overall tax rate for BMW companies in Germany is 40.21% (2002: 38.9 %). The tax rates for companies...

  • Page 83
    ... Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index Deferred tax...

  • Page 84
    ... stock shares entitled to receive a dividend in each of the relevant years. Diluted earnings per share were not applicable in either the current or prior year. [18] Other disclosures to the income statement The income statement includes personnel costs as follows: in euro million 2003 2002...

  • Page 85
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

  • Page 86
    Depreciation and amortisation 1.1. 2003 1] Translation differences Current year 2] Disposals Reversals 31.12. 2003 Net book values 31.12. 2003 31.12. 2002 1,737 316 2,053 - -4 -4 582 48 630 432 82 514 - - - 1,887 278 2,165 3,011 189 3,200 2,598 143 2,741 1,908 10,906 - 36 - 198 186 1,...

  • Page 87
    ... Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index [20] Intangible assets Intangible assets mainly comprise capitalised development costs...

  • Page 88
    ... sale of Rover Finance Holdings Ltd., Guildford. The reversal of write-downs on investments in other companies in the year relates to the investment in Rolls-Royce plc, London; the carrying amount was written up to the market value at 31 December 2003. This increase in value was recognised directly...

  • Page 89
    ... Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index [ 23] Leased...

  • Page 90
    ... for customers and dealers and out- standing instalments on operating leases as well as euro 5,527 million (2002: euro 4,646 million) for finance leases. Finance leases are analysed as follows: in euro million 31.12. 2003 31.12. 2002 Gross investment in finance leases due within one year due...

  • Page 91
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 92
    ... under three months. [ 28] Prepayments Prepayments of euro 488 million, which are unchanged from the previous year, relate mainly to prepaid interest, development costs not eligible for capitalisation as non-current assets, insurance premiums and rent. Prepayments of euro 388 million (2002: euro...

  • Page 93
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 94
    ... to pay future vested pension benefits and current pensions to present and former employees of the BMW Group and their dependants. Depending on the legal, economic and tax circumstances prevailing in each country, various pension plans are used, based generally on the length of service and...

  • Page 95
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 96
    ... benefits Fair value of fund assets Net obligation 1 January 2003 Current service cost Expense from reversing the discounting of pension obligations Expected return on plan assets (-) Employer contributions Benefits paid Actuarial gains (-) and losses (+) Translation differences and other changes...

  • Page 97
    ... Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index discount factor from 5.8 % to 5.5 % in the light of capital market developments. The defined benefit plans of the BMW...

  • Page 98
    ... euro million Germany 2002 2003 UK 2003 2002 Other countries 2003 2002 Total 2003 2002 Balance sheet amount at 1.1. Expense from pension obligations Effect of plan settlements (recognised in provisions in previous years) Pension payments or transfers to external funds Employee contributions to...

  • Page 99
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 100
    ... bond is subject to an annual interest rate of 1.875 % and has a term of five years. After three years into the term, the Group has the right, up to the maturity date, to give notice on the bond if Rolls-Royce stock rises to a level of more than 130 % of the conversion price of GBP 2.46. A cash-out...

  • Page 101
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 102
    ... items: 31 December 2003 in euro million Maturity within one year Maturity between one and five years Maturity later than five years Total Taxes payable Social security Employees Advance payments from customers Deposits received Interest Subsidiaries Fair values of derivative financial...

  • Page 103
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 104
    ... to the sale of Rover Cars and Land Rover activities. Other financial commitments In addition to liabilities, provisions and contingent liabilities, the BMW Group also has other financial commitments, primarily under lease contracts for land, buildings, plant and machinery, tools, office and other...

  • Page 105
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 106
    ... the use of all standard types of financial instrument, e. g. short-term deposits, investments in variable and fixed-income securities as well as securities funds. The BMW Group is therefore exposed to risks resulting from changes in interest rates, stock market prices and exchange rates. Financial...

  • Page 107
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 108
    ...199 million negative) relate to positive effects from available-for-sale securities. The fair values of financial instruments relating to hedged forecasted transactions are recognised directly in accumulated other equity. In the financial year under report, positive fair value measurement changes of...

  • Page 109
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

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    ..., which is included in the BMW Group Annual Report and which is available to shareholders on the BMW Group website under the address www.bmwgroup.com/ir. [41] Shareholdings of the Board of Management and Supervisory Board The members of the Supervisory Board of BMW AG hold in total 27.7% of the...

  • Page 111
    ...authorised dealers. Sales outside Germany are handled primarily by subsidiary companies and, in a number of markets, by independent importers. Rolls-Royce brand vehicles are sold worldwide by independent, authorised dealers. The BMW Motorcycles segment develops, manufactures, assembles and sells BMW...

  • Page 112
    ... to the previous year's figures are provided in Note [7]. Segment information by region in euro million External sales 2003 2002 reclassified 1] Capital expenditure 2003 2002 Assets 2003 2002 Germany Rest of Europe America Africa, Asia, Oceania Reconciliations Group 1] see also Note...

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    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

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    Motorcycles 2003 2002 reclassified1] Financial Services 2003 2002 reclassified1] Reconciliations 2003 2002 reclassified1] Group 2003 2002 reclassified1] 1,053 - 6.6 2 0.0 1,055 - 6.6 258 57 - 13.6 - -7 50 - 16.7 4.7 10 93 105 39 - 631 436 2,862 1,128 6.9 2 - 50.0 1,130 6.7 279 66 4.8 - -6 60 ...

  • Page 115
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group...

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    ...of forward currency contracts. All positive and negative fair values arising on derivative instruments must be recognised. Fair value changes arising on forward currency contracts to hedge future transactions (the normal case for BMW) are recognised directly in equity, thus leading to a greater risk...

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    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

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    ... of the Group's position and suitably presents the risks of future development. In addition, we confirm that the consolidated financial statements and the group management report for the business year from 1 January to 31 December 2003 satisfy the conditions required for the Company's exemption from...

  • Page 119
    ... Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW AG...

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    ... loss transfer agreement with a subsidiary of BMW AG 4] profit and loss transfer agreement with BMW AG 5] In the case of foreign affiliated companies, based on financial statements drawn up in accordance with uniform IFRSs accounting policies. Equity and net result are translated at the closing rate...

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    ... Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group 10-year Comparison 2003 IAS 2002 reclassified1] IAS Revenues Change...

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    ... 42,684 694 337 357 142 3] up to 1999 including BMW F650 assembly at Aprilia S.p. A./excluding C1 production at Bertone, production volume of C1 up to 2002: 33,489 units assets from sales financing 8] net profit of euro 663 million before extraordinary result 9] calculation under HGB 4] excluding...

  • Page 123
    ... Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary, Index BMW Group Locations. The BMW Group is present in the world markets with 23 production and assembly plants, 32 sales...

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    ... Group Designworks, Newbury Park, USA BMW Motoren, Steyr, Austria Production Berlin plant Dingolfing plant Eisenach plant Goodwood plant, GB (headquarters of Rolls-Royce Motor Cars Limited) Hams Hall plant, GB Landshut plant Munich plant Oxford plant, GB Regensburg plant Rosslyn plant, South Africa...

  • Page 125
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

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    ...for Customer-Oriented Sales and Production Process. The overriding objective of KOVP is to give each customer his personal car on his specified date. To achieve this goal in a competitive environment constantly changing and increasingly demanding, the BMW Group has started to develop a new sales and...

  • Page 127
    ... in other companies, long-term marketable securities, other loans. Leased products: from operating leases. [Online ordering] Online ordering helps to significantly speed up change management in handling customer orders, expedites the order processing and enables, at the time of order, confirmation...

  • Page 128
    ... steering "feel". [Subscribed capital] The share capital of a company is computed by multiplying the nominal value of the shares by the number of shares. [Supplier relationship management] Supplier relationship management (SRM) uses focused procurement strategies to organise networked supplier...

  • Page 129
    ... Board Supervisory Board Board of Management Group Management Report 12 A Review of the Financial Year 29 Outlook 30 Financial Analysis 44 Risk Management BMW Stock Corporate Governance Group Financial Statements BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations...

  • Page 130
    ...) per unit produced 22 Process effluent per manufactured car 22 Consumption of BMW Group car fleet in Germany in % 25 [Stock] Development of BMW stock compared to stock exchange indices 47 Development in value of a BMW stock investment 49 This version of the Annual Report is a translation from the...

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    Detecting potentials. Shaping growth.

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    Preface by the Chairman of the Board of Management Detecting potentials. Shaping growth. Developing markets Opening up segments Utilising resources efficiently Driving innovation New products BMW brand MINI brand Rolls-Royce brand 04 08 14 22 32 40 46 48 58 60

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    ...growth. Taking a clear stand. Understanding and using distinctive strengths - and taking action based on a clear strategy. However perfect the latest achievement, it is merely the starting point in the quest for something better. This belief is shared by everyone in the BMW Group, it forms corporate...

  • Page 134
    ... and the skills of its employees who have time and again enabled the Company to achieve outstanding results, and who have made a decisive contribution to our success in 2003 as well. For the BMW Group the past year was especially marked by product life cycles and model activities. Never before...

  • Page 135
    ... ranges, we have expanded our product range significantly. At the very beginning of the year, we introduced the new Rolls-Royce Phantom, thus enhancing our range of motor cars to include the very top end of the luxury segment. With the Rolls-Royce brand, the BMW Group now has a third strong brand...

  • Page 136
    ... to new groups of customers and thus greatly increase our unit sales potential. The new BMW 5 Series Touring will set standards in its segment and contribute significantly to our growth. We will also seize sales opportunities on new markets. In this context, we are further developing the BMW Group...

  • Page 137
    ... same time, we are working resolutely to intensify sales on the Company's traditional markets. As a result, we expect the BMW Group's sales volume to increase significantly again this year. This will enable us to achieve new record results in 2004, emphasising yet again the BMW Group's position as...

  • Page 138
    ...Group will be expanding into new market segments. With its three brands BMW, MINI and Rolls-Royce, which are among the mostsought-after car brands in the world, addressing all the relevant market segments, the BMW Group is well-equipped to meet these challenges. Detecting potentials. Shaping growth...

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    Production of BMW cars in Shenyang in the northeast of China began in September 2003 - this is an important milestone in the BMW Group's expansion strategy. Production follows the market 9

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    Detecting potentials. Shaping growth. With the MINI brand, the BMW Group successfully established the premium concept in the small car segment - even in the United States where, until then, small cars did not have a big following. Opening up new segments 10

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    Agility and efficiency are the decisive factors for success in the BMW Group's worldwide production network. Thinking and acting in networks 11

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    Detecting potentials. Shaping growth. To be included in the cars of the BMW, MINI or Rolls-Royce brands, innovations need to offer customers real benefits. Developing innovations and transforming them into products 12

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    ... as it develops its product range. For the BMW Group, growth means increasing sales of the existing product range in the established triad markets, i.e. in Europe, the United States and Japan. At the same time, the BMW Group is continuing the Company's regional expansion, thus opening up segments...

  • Page 144
    ... ASEAN Free Trade Area (AFTA) development, the BMW Group will gradually develop its production activities in the region in order to further consolidate its position in the markets of Southeast Asia. In addition to assembly and production plants, the BMW Group operates a regional parts distribution...

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    ... aim to attract internationally competitive production ventures. This is where the new plant of BMW Brilliance Automotive, the joint venture of the BMW Group and its Chinese partner Brilliance China Automotive Holdings, is located and where BMW 3 and 5 Series cars are now produced.The joint...

  • Page 148
    ... of the BMW Group's worldwide standards production quality, from the first weld applied to a body part by a local employee, to the car's packaging for transport. The local supplier industry is steadily being developed and integrated into the production process. For example, Chinese companies already...

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    17

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    ... to buy her BMW 5 Series car until she heard that Brilliance China Automotive Holdings and the BMW Group had agreed on the joint venture. A few years ago, demand on the Chinese car market came mainly from government bodies and local authorities. Today, however, it is the private customers anxious to...

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    19

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    Developing markets 20

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    ...-average growth over the next few years in China, as well. BMW cars on the roads of China's business centres are a sign of economic success: in 2003, the BMW Group sold 18,445 cars in the People's Republic of China, exceeding the previous year's unit sales by 176 %. At the same time, China became...

  • Page 154
    ..., fully meet the customers' demands and expectations. Current examples of this expansion strategy include the new BMW X3, the BMW 6 Series, and the Rolls-Royce Phantom which was launched at the beginning of 2003 and extended the BMW Group's product range at the very top end of the luxury segment...

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    ... is back in town. In 2002, the MINI brand staged its successful comeback in the United States, 35 years after the last Mini was sold there. The BMW Group has thus proved that a small car can be positioned successfully on the US market, provided the brand and substance of the product make the vehicle...

  • Page 158
    ...and road traffic is nearly always dense. There is, in fact, only one good reason for driving a car: the fun of driving. And that is why Cesar drives "Miles", his MINI. As project manager of a design agency, he obviously sets great store by the right look. However, Cesar enthuses most about the sheer...

  • Page 159
    ... logistics centre ensures that the various production areas are supplied flexibly, reliably and efficiently with parts and components. Several system suppliers are also located here. Just-in-time suppliers deliver large components such as the cockpit and seats, directly to the assembly line. 25

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    .... The entire production process at the MINI Plant Oxford is monitored by an integrated quality control system that provides an electronic history of each car produced. State-of-the-art technologies in the paint shop allow fast colour change, and the ergonomic design of the assembly area promotes the...

  • Page 161
    ... was first and foremost when Jasmine Kuo decided on her MINI. In the MINI Owners' Lounge on the Internet, the architect shows what you can transport in a MINI. She reports on her experiences: Jasmine has transported chairs, a dining table and bookshelves in her MINI without any difficulty. However...

  • Page 162
    ...Echelmeier, Boulder, Colorado. Chris Echelmeier works in the sales department of a software company. And he enjoys mountain biking. Colorado offers ideal conditions for his sport. Chris is proud that his bike fits into his MINI, but that is not all that the family car has to transport. Sometimes the...

  • Page 163
    ... sprayed directly onto the bodies. Extremely low spray losses of around 10 % are treated and reintroduced into the painting process. A recycling centre ensures that waste materials are collected, separated and re-used in an environmentally friendly way. The MINI Plant Oxford holds a leading position...

  • Page 164
    ... banners on many an old building. In 2003, the MINI conquered Hollywood and played the leading automobile role in "The Italian Job". MINI enthusiasts in the United States can get in touch with one another to share tips and experiences via the MINI Owners' Lounge on the Internet. The MINI is a hit...

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    ... a film-maker. His MINI quickly takes him through the city, whatever the weather, and even as far as Barcelona, where Brooks was a member of the USA team in the Mission MINI 2002.

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    ... plant's production at short notice. Add to this the BMW Group's various flexible work time models, and the Company can react swiftly and flexibly to surges in demand. As a result, capacity utilisation is continuously in tune with market requirements. Capital expenditure on cutting-edge technologies...

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    ...The BMW Group's production network currently comprises 23 locations on four continents. More than 1.1 million cars manufactured to customers' specifications roll off the assembly lines each year. Networks for flexibility. The BMW Group's production locations cooperate closely. As a rule, each plant...

  • Page 170
    ... the BMW Group's human resources policy and may also help to explain why the Company is regarded as one of the world's most attractive employers. Production follows the market. For the BMW Group, production also plays a decisive role in the development of new markets. Where a market offers potential...

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    ... BMW Group, with sales of around 277,000 cars in 2003. The Spartanburg plant in South Carolina has contributed decisively to this development. Opened in 1994, the Spartanburg plant today produces the BMW Z4 and the BMW X5 exclusively for the world market. More than 166,000 of these BMW cars rolled...

  • Page 172
    ... of each new vehicle concept ends with final product, market, production and finance baselines being laid down. In the product development process, all partners are integrated from the beginning. Since project progress flows directly into the "virtual car", down time and loss of momentum because...

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    ... working days before production begins. Each month the BMW Group records and processes an average of more than 120,000 of these customer changes for the BMW brand alone. Quality without compromise. The BMW Group has set binding quality standards for all of its production processes worldwide. These...

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    ... a result of consistently using heat recovery systems and energy-saving production technology, among others. The BMW Group is the first and so far the only car manufacturer to have introduced uniform international environmental standards for all its production plants worldwide and, moreover, to have...

  • Page 175
    ...and service sector. Factory of the future. Agility, thinking and acting in networks, as well as close cooperation between company management and associates - these are the bases for the future BMW Plant Leipzig. The new plant will series-produce BMW 3 Series cars from 2005, increasing the BMW Group...

  • Page 176
    ... to pay for technology if he can be convinced of its added value. Hence, innovations appreciated by the customer lie at the heart of the product value of automobiles of the BMW, MINI and Rolls-Royce brands. In the BMW Group, a three-phase innovation management process ensures that innovations, new...

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    ... a high level of directional stability. At lower speeds, it reduces steering effort, for example when parking or in slow city traffic. And on winding country lanes, drivers benefit from unique agility. New ideas develop in teamwork - Colleagues meet regularly to exchange information and ideas. 41

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    .... During development work for the new BMW 5 Series, all the factors fell into place that determine when new technologies of benefit to the customer should be introduced. One of the tasks of the BMW innovation management is to constantly monitor these factors. In 1999, the Active Steering project was...

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    [above] Test run in the laboratory - the Active Steering system's control unit clocks up many thousands of kilometres without moving an inch. Software and hardware only go into production when they have mastered every possible simulated situation without a hitch. [below] CAD - a component is ...

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    Driving innovation [top left] Diagnostics by laptop - all collected data is stored in the ...Careful inspections reveal and record how the materials behave. [left] The testing grounds - the Active Steering system is put through its paces time and time again. Whether on the handling or high-speed...

  • Page 183
    ... analysis. There must be no misunderstanding because a car is not a PC and a steering assembly is not a computer game. That is why TÃœV, Germany's renowned independent technical inspection company, was brought in to monitor the development process of the system's software. The Active Steering...

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    ... with a road licence. R 1200 GS continues the success story of large BMW enduros. MINI brand First diesel-engined MINI on the market. MINI Convertible - real four-seater with an innovative top and sliding roof function. Rolls-Royce brand Rolls-Royce Phantom - exceptional for the perfect balance of...

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    BMW Group 2003

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    ... Motorcycles ...Rolls-Royce...USA from April 2004, in Europe from May 2004 X5 3.0d 2,993 cc, 160 kw (218 bhp) R 1150 GS Adventure...new...115 bhp) Sports Bikes and Sports Tourer R...BMW Group 2003 * available with all-wheel drive as an option Revised March 2004 * in Germany available only with 72 kw (98 bhp)

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    47

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    ... luggage compartment is the balanced combination of sporting flair, elegance and convenience and is thus the ideal car for leisure, business and the family. Pressing a button on the ignition key is all it takes to have the tailgate open automatically. The luggage compartment features a completely...

  • Page 189
    ...'s first Active Steering, available as option, offers a high standard of driving comfort. It adapts steering transmission to current driving speed. The driver benefits from reduced steering effort in the low to medium speed range and more indirect steering at higher speeds. The Head-Up Display is...

  • Page 190
    .../h. The all-aluminium chassis is equipped with electronic control systems such as Dynamic Stability Control (DSC), Dynamic Traction Control (DTC) and, as an option, the intelligent Dynamic Drive suspension system, which almost completely eliminates body roll. The car's interior is also replete with...

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    [2] 51

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    BMW brand 52

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    ... - innovative all-wheel drive technology for outstanding agility. The BMW X3 combines the agility of a typical BMW with the great versatility of a Sports Activity Vehicle (SAV). One of the highlights of the new BMW X3 is the xDrive all-wheel drive system with an electronically controlled multi-plate...

  • Page 194
    ...event of side collisions. Extrastrength steel diagonal door reinforcements take account of bumper heights varying from car to car. The BMW X3 has up to eight airbags: driver, front passenger, head protection and side airbags at the front are standard. The lateral curtain airbag, designed to protect...

  • Page 195
    ... and K models, the front wheel of the R 1200 C Montauk is fitted with the EVO (Evolution) brake system as standard, offering truly outstanding brake performance. Braided steel hoses help provide a pressure point that is even more stable than before. The unique BMW Motorcycle Integral ABS (anti-lock...

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    [1] [2] 55

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    BMW brand 56

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    ... network of the R 1200 GS is highly innovative for it employs electronics (CAN bus technology) that permit a complete range of diagnostic and other new functions. Standard equipment includes an electronic immobiliser with transponder which offers the same high level of security as in BMW cars. 57

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    ... power. Standard Stability and traction control ASC+T makes sure that this powerful diesel is always able to build up full traction without the wheels spinning, leaving the driver firmly in control of his car. The direct injection diesel engine features second-generation common rail technology with...

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    [2] [2] 59

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    .../h. When the roof is in sliding mode, the lateral rails remain in their final position against the A-pillar. Because the top slides open across its entire width, occupants will feel a little closer to heaven right away. The remote controls in the key operate not only the doors and windows, but also...

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    Rolls-Royce brand 60

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    ... all, and even at particularly low, engine speeds. The power unit is a naturally aspirated 12-cylinder V engine that was developed using cutting-edge technology. Displacement of 6.75 litres follows a decades-long Rolls-Royce tradition. The 338 kW/460 bhp unit develops 560 Nm at 1,000 rpm and maximum...

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    ...love of detail for which Rolls-Royce is renowned is particularly apparent in the car's interior. Around six times a year, the manager of interior wood trim personally visits his suppliers to select the veneers for the Rolls-Royce Phantom, thereby ensuring that only the highest quality veneers of the...

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    ....com The BMW Group on the Internet Further information about the BMW Group is available online at www.bmwgroup.com. Investor Relations information is available directly at www.bmwgroup.com/ir. Information about the various BMW Group brands is available at www.bmw.com, www.mini.com and www.rolls...

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    Financial Calendar Interim Report to 31 March 2004 Annual General Meeting Interim Report to 30 June 2004 Interim Report to 30 September 2004 5 May 2004 13 May 2004 4 August 2004 3 November 2004

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