BMW 2005 Annual Report Download - page 37

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As a result of this engagement in the Indian mar-
ket, the BMW Group will be operating with its own
sales companies in practically all of Asia’s strategic
markets. In addition to its comprehensive presence
in China and the planned activities in India, the
BMW Group already has its own sales companies in
Japan, Indonesia, Malaysia, South Korea, Thailand
and the Philippines.
Asian markets served by importers are handled
out of the regional office in Singapore, where, at the
beginning of 2006, the BMW Group also opened a
new design studio. The BMW Group’s logistical hub
in Asia is based in Malaysia where an IT centre and
a parts distribution centre for the region are located.
Investment in strong brands
The BMW Group possesses, with the BMW, MINI
and Rolls-Royce brands, three of the strongest
premium brands in the automobile sector. A wide
range of activities was initiated in 2005 to define
the brand profiles more clearly and to bring them
even more to life for customers.
In connection with the BMW brand, the new
BMW World building is currently under construction
next to the group headquarters in Munich. The top-
ping out ceremony for the new building took place
on 1 July 2005, and its inauguration is planned for
spring 2007. Once completed, up to 250 customers
daily will come in person to collect their vehicles from
BMW World and experience the BMW brand to the
full. Tours of the nearby BMW plant and a visit to the
BMW Museum will round off this brand experience.
In September 2005, as a first for the car indus-
try, the BMW Group issued up-to-date information
in podcast audio format directly from the BMW stand
at the Frankfurt International Motor Show. Each day,
new audio clips, in both German and English, could
be downloaded free of charge. This pilot project is
being used to explore new ways of reaching target
groups which are becoming more and more difficult
to reach through conventional advertising.
The BMW Group was able to engage the well-
known filmmaker, Spike Lee, to make the current
advertising film for the BMW 3 Series Touring. This
is a follow-up to the film project “The Hire” which in-
volved the creation of eight short films by well-known
Hollywood directors from 2001 onwards.
The focus of the MINI brand profile was also
further sharpened in 2005 with a number of uncon-
ventional measures. For example, on the occasion
of the market introduction of the new models, MINI
Seven, MINI Checkmate and MINI Park Lane, MINI
enthusiasts in Germany were given the opportunity
to bring their ideas about the new models to life by
making short film clips of their own. The resulting
clips, filmed with cell phone or digital cameras,
were made available to the public on the website
www.mini.de, and prizes awarded to the best ones.
In autumn 2005, some 6,000 MINI fans from
more than 40 countries came to MINI United, the
first official annual meeting of the international MINI
fan community held at the racecourse in Misano,
Italy, where they had a taste of excitement and the
racing atmosphere for three days.
In 2005, the Rolls-Royce brand, which can al-
ready look back on a history of more than one hun-
dred years, focused its sport sponsoring activities
on polo. As well as supporting the top event, Cartier
International Day, Rolls-Royce Motor Cars is also the
official sponsor of the Prince of Wales polo team.
BMW managed team to contest Formula One
for the first time
Following the acquisition of a majority interest in the
Swiss Team Sauber, a BMW managed team will
contest the Formula One World Championship from
the 2006 season onwards. This will be the first time
in BMW’s history that it has participated at this level
under its own management.The BMW Sauber F1
team was presented to the public at the beginning
of 2006. The Sauber location in Hinwil, Switzerland,
will continue to operate as a separate entity. The
Group Management Report 8
A Review of the Financial Year 8
The General Economic Environment 11
Review of operations 15
BMW Stock in 2005 38
Financial Analysis 41
--Internal Management System 41
--Earnings performance 42
--Financial position 45
--Net assets position 46
--Subsequent events report 49
--Value added statement 49
--Key performance figures 51
--Comments on BMW AG 52
Risk Management 56
Outlook 60