BMW 2003 Annual Report Download - page 13

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
12 A Review of the Financial Year
29 Outlook
30 Financial Analysis
44 Risk Management
047 BMW Stock
050 Corporate Governance
054 Group Financial Statements
118 BMW AG Principal Subsidiaries
120 BMW Group10-year Comparison
122 BMW Group Locations
124 Glossary, Index
12
The financial year in brief: BMW Group
continues on successful course
In the financial year 2003, the BMW Group was able
to maintain the good progress made in previous
years. In spite of the fact that economic conditions
prevailing on some of the world’s automobile markets
were difficult, the Group again sold a record number
of cars and motorcycles. In the area of financial
services, the BMW Group also remained on a growth
course, with the number of new contracts reaching
a new record level.
Against the background of an on-going high
level of expenditure for the product and market
offensive, the BMW Group has been able to maintain
earnings at the previous year’s high level. At euro
3,205 million, the group profit from ordinary activities
was just 2.8% below the previous year’s level.
The reported results of the Automobiles seg-
ment are still being affected by the high level of ex-
penditure for the Group’s product and market offen-
sive. Despite this up-front expenditure, the
Automobiles segment was nevertheless able to
record a profit from ordinary activities of euro 2,761
million, 4.2% lower than in the previous year.
A substantial level of up-front expenditure for
new models also affected the development of
earn-
ings of the Motorcycles segment. At euro 50 million,
the profit from ordinary activities of this segment was
euro10 million or 16.7% down on the previous year.
The Financial Services segment once more
achieved a record profit in 2003. At euro 452 million,
the profit from ordinary activities surpassed the pre-
vious year by 7.1%.
The BMW Group’s net profit for the year 2003
amounts to euro 1,947 million, 3.6% below the pre-
vious year’s level.
Proposed dividend increase
The Board of Management and the Supervisory
Board propose to the Annual General Meeting to
use the unappropriated profit available for distribu-
tion in BMW AG, amounting to euro 392 million,
to pay a dividend of euro 0.58 for each share of
common stock (2002: euro 0.52) and euro 0.60 for
BMW Group Revenues by region
in euro million
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7, 000
6,000
5,000
4,000
3,000
2,000
1,000
99
HGB
9,206
00
HGB
9,899
02 03
IAS IAS
13,071
4,592
1,159
8,823
10,343
8,450
3,201
1,097
4,667
11,252
1,164
10,590
8,728
4,661
02
IAS*
13,085
4,594
1,160
10,404
8,481
4,687
01
IAS
11,6 7 2
3,586
1,190
10,238
7,379
4,398
4,447
7,516
3,574
00
IAS
10,835
9,126
1,155
4,807
7,553
3,750
8,098
4,826
953
8,118
North America
Germany
Rest of Europe
United Kingdom
Other markets
Group 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 of its expansion strategy.
*reclassified
5,130 Asia/Oceania