BMW 2004 Annual Report Download - page 19

Group Management Report 8
A review of the Financial Year 8
Outlook 29
Financial Analysis 30
--Earnings performance 30
--Financial position 33
--Net assets position 34
--Events after the
Balance Sheet date 37
--Value added statement 37
--Key performance figures 39
--Comments on the financial
statements of BMW AG 40
Risk Management 44
BMW Stock in 2004 48
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factor was the continued development and imple-
mentation of risk management instruments. The
interest rate risk is managed using a risk-return
approach. Diversified value-at-risk, as measured by
the Financial Services segment to quantify the inter-
est rate risk*, increased from euro 32.9 million to
euro 55.4 million.
Further increase in workforce
The BMW Group had a workforce of 105,972 em-
ployees at the end of 2004,1.6% more than one year
earlier. Adjusted for transfers and disposals of group
entities, the BMW Group therefore created 1,722 new
jobs in 2004, of which more than three quarters
were in Germany. The workforce here increased by
1.8 % to 80,005 employees. The BMW Group re-
cruited almost 2,000 new employees for the BMW
Leipzig plant,many of whom worked for training pur-
poses at other BMW locations during 2004.
Increase in number of apprentice positions
The number of apprentices working for the BMW
Group went up again in 2004. At present, 4,464
young people are learning a profession with the
BMW Group, 3.7% more than one year earlier. The
apprentice ratio, i.e. the proportion of apprentices
to the total workforce, is 5%. In the last three years
alone, the BMW Group has created more than
600 new apprentice positions worldwide. Numerous
starter programmes for high-school leavers and
university graduates are also available for people
starting their career with the BMW Group.
Extensive training measures
The BMW Group invested nearly euro 232 million
(2003: euro196 million) in prime and further training
for its employees.This means that approximately 3.2%
(2003: 2.8%) of total personnel expenditure related
to training, thus preparing employees for future chal-
lenges and ensuring that they have the right skills.
Innovative technologies used in the area of
personnel management
In conjunction with its “excellence in Human
Resources” (eHR) programme, the BMW Group is
taking advantage of modern technologies to im-
prove personnel management. As an example, the
employee portal “Network” was introduced as
part of this programme in March 2004. This allows
employees to access their own personnel data
and obtain individualised information, thus avoiding
expensive and time-consuming administrative
processes. By the end of 2004, some 64,000 em-
ployees were already using the new portal, and all
employees at the group’s German locations will
have access by mid-2005.
BMW Group employees 31.12.2004 31.12.2003 Change
in %
Automobiles1]99,043 97,711 1.4
Motorcycles 2,918 2,954 –1.2
Financial Services 2,841 2,476 14.7
Other1]1,170 1,109 5.5
thereof Software (1,108) (1,045) 6.0
BMW Group1]105,972 104,250 1.7
unadjusted 105,972 104,342 1.6
1]workforce at the end of 2003 adjusted for transfers and disposals of group entities
* based on a 99% confidence level and a holding period of ten days