BMW 2003 Annual Report Download - page 19

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
18
BMW plant in Berlin one of the most advanced
motorcycle plants in the world. As a result of pre-
paration work for new products, the number of
motorcycles manufactured at the Berlin plant, at
89,745 units, was 3.5% lower than in the previous
year.
Strong growth in the Financial Services
segment
The Financial Services segment also continued
its growth course in 2003.The business volume of
the segment measured in balance sheet terms
climbed in 2003 by 8.1% to stand at euro 28,647
million.
The steady increase in new business, already
seen in the previous year, continued in 2003. A total
of 1,578,829 new contracts was signed, 14.2%
more than in the previous year.
The proportion of new BMW and MINI brand
cars leased or financed by the Financial Services
segment increased in 2003 by 2.2 percentage
points to 38.3%.
The Americas again reported the highest pro-
portion of new car sales financed by the segment
(48.1%), followed by South-east Asia (40.0%) and
Europe (33.7%).
The number of new credit and lease contracts
in the area of retail customer financing reached a
new high level in 2003, rising by 10.7% to 710,333
contracts. This means that 45.0% of all new con-
tracts in 2003 related to retail customer business
(2002: 46.4%).
The increase in the volume of credit financing
contracts with retail customers in 2003 was particu-
larly pronounced, with the number of new contracts
up by 13.6%. This can be attributed largely to the
favourable trend with used cars and new business
with MINI brand cars.
Credit financing contracts as a proportion of
total customer business rose in 2003 to 68.6%,
compared to 66.8% in the previous year. The
proportion accounted for by lease contracts fell
accordingly to 31.4%, whereby financing business
in Europe was still growing at a rate faster than
lease business in the USA, itself still at a buoyant
level.
Retail customer business continued to grow
for all markets. As in the previous year, the Americas
region, with 219,163 new contracts signed and an
increase
of 12.6%, saw the strongest growth. In the
European
region, the number of new contracts with
customers rose by 8.5% to 412,734 contracts. In line
with the dynamic trend of car sales in the Asian region,
this area also saw significant increases; the number
of new contracts increased by 17.6% to 78,436.
At 31 December 2003, 1,474,254 retail customer
financing contracts were in place, 13.0% more than
at the end of the previous year.
The total average volume of dealer financing
contracts in 2003 amounted to euro 4,427 million,
21.3% more than in the previous year.
Deposit business grew strongly in 2003,
augmented by the high volume of inflows for online
call deposits accounts. The average deposit volume
increased by 43.8% to euro 3,788 million.
254,205 customer accounts were registered at
31 December 2003, 17.7% more than at the same
date last year.
Financial Services: New contracts signed
in 1,000 units
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
99 00 01
1,212 1,225 1,209
02
1,382
03
1,579