BMW 2004 Annual Report Download - page 9

North America
Rest of Europe
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
8
A review of the Financial Year:
New records for sales volume, revenues and
earnings
The BMW Group continued the successful course
of previous years in 2004. Despite adverse global
economic conditions, the Group is able to report new
highs for car sales volume, revenues and earnings.
The year 2004 has therefore been the most success-
ful
in the Group’s history.
The group profit from ordinary activities also
rose sharply on the back of strong growth in car
sales volume, and, at euro 3,554 million, surpassed
the previous year’s result by 10.9%. The pre-tax
return on sales in 2004 was 8.0% (2003: 7.7%).
The Automobiles segment reports a profit from
ordinary activities of euro 3,159 million for 2004, a
14.4% improvement over the previous year.
The reported results of the Motorcycles seg-
ment in 2004 have been affected by the substantial
level of up-front expenditure incurred to introduce
new models and by persisting unfavourable market
conditions. The profit from ordinary activities of the
Motorcycles segment was euro 31 million, 38.0%
below the figure reported for 2003.
The Financial Services segment continued to
see sharp growth,a development which was matched
by a very pleasing improvement in earnings. At
euro 515 million, the segment’s profit from ordinary
activities was 13.9% higher than in the previous
year.
The group net profit for 2004, at euro 2,222 mil-
lion, was also a new record, beating the previous
year’s figure by 14.1%.
Proposed dividend increase
The Board of Management and Supervisory Board
propose to the Annual General Meeting to use the
unappropriated profit available for distribution in
BMW AG, amounting to euro 419 million, to pay a
dividend of euro 0.62 for each share of common
stock (2003: euro 0.58) and euro 0.64 for each
share of preferred stock (2003: euro 0.60). Share
capital entitled to receive dividends amounts to
euro 673.5 million (622.2 million shares of common
stock and 51.3 million shares of preferred stock,
each with a nominal value of euro 1).
Group Management Report.The BMW Group has achieved new records for
car sales volume, revenues and earnings in 2004 as a result of its product
and market initiative.The product range has been expanded further and new
important sales markets and target groups opened up.
BMW Group Revenues by region
in euro million
15,000
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
02 03 04
13,071
4,592
1,159
10,343
8,450
4,667
1,164
8,728
4,661
02*
13,085
4,594
1,160
10,404
8,481
4,687
01
11,6 7 2
3,586
1,190
10,238
7,379
4,398
00
10,835
9,126
1,155
4,807
7,553
3,750
Germany
Other markets
*reclassified after harmonisation of internal and external reporting systems
5,130
1,431
11,961
4,915 Asia/Oceania
United Kingdom
5,249
10,205
10,574
11,252
10,590