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Rolls-Royce
Motor Cars Limited
Annual Report 2006

Table of contents

  • Page 1
    Annual Report 2006 Rolls-Royce Motor Cars Limited

  • Page 2
    ... Financial Year General Economic Environment Review of operations BMW Stock and Bonds in 2006 Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Group Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 3
    ..., MINI and Rolls-Royce brands, three of the strongest premium brands in the car industry. The BMW Group also has a strong market position in the motorcycle sector and operates successfully in the area of financial services. The BMW Group aims to generate profitable growth and above-average returns...

  • Page 4
    ... 805 100,064 106,575 5.2 - 6.2 1.1 2.7 0.7 Rolls-Royce Motorcycles 2] Workforce at end of year 3] in euro million 2002 2003 2004 2005 2006 Change in % Revenues Capital expenditure Depreciation and amortisation Operating cash flow 7] Profit before tax Net profit 42,411 5] 4,042 2,143 4,553...

  • Page 5
    ... the course of the financial year 2006, the most successful year ever recorded in the history of the BMW Group, the Supervisory Board closely monitored the company's management with the aid of extensive written and oral reports provided by the Board of Management and continuously supported it in an...

  • Page 6
    ... other. The Supervisory Board supports the strategy pursued by the Board of Management, namely continuing the new model product initiative implemented over recent years, remaining committed to the premium car and motorcycle markets and expanding the BMW Group's financial service activities. The two...

  • Page 7
    ...the Berlin plant and the Board of Management's continued model range expansion, intended to attract new target groups. The Supervisory Board discussed in detail with the Board of Management both the annual budget for the financial year 2007 and the long-term business plan for the BMW Group presented...

  • Page 8
    ... the Board of Management to report on the main focuses of the group's future orientation. Information was also acquired about new legislation in Germany, such as the Takeover Guidelines Implementation Act, affecting the duties of the Supervisory Board. The Audit Committee convened three times during...

  • Page 9
    ... Company and Group management report also contains additional information. Detailed disclosures, to which reference is made here, are provided on pages 41 et seq. of the Annual Report.The principal agreements to which BMW AG is party and which contain specific clauses that are triggered in the event...

  • Page 10
    ..., no objections were raised. As announced in the previous year Annual Report, Mr. Volker Doppelfeld's term of office in the Supervisory Board came to an end of the close of the Annual General Meeting on16 May 2006 after many years of highly distinguished service. Having reached the age of retirement...

  • Page 11
    ... position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook BM W Group reports the most successful year in its corporate history The BMW Group achieved record levels for sales volume, revenues and earnings...

  • Page 12
    ... expansion of the MINI Production Triangle, modification work at the BMW plant in Spartanburg, refurbishment of the group's headquarters and construction of " BMW Welt", the new brand experience centre in Munich. In 2006, the BMW Group invested euro 2,777 million in property, plant and equipment and...

  • Page 13
    ... - Financial position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook Business environment Economic developments in 2006 The global economy grew strongly again in 2006. For the most part, growth rates...

  • Page 14
    ...much by persisting shortages in oil production and processing capacities as by increased demand for oil. After peaking in the summer at prices in the region of US dollar 80 per barrel, oil prices then decreased sharply, settling towards the yearend, partly as a result of the slow-down in the rise of...

  • Page 15
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 16
    ...In Italy, the BM W Group - key automobile markets 2006 as a percentage of sales volume USA Germany United Kingdom Italy Spain Japan France Other 22.8 20.9 11.2 25.0 7.0 3.8 4.5 4.6 BMW Group sold 96,462 units, 6.8 % more than in the previous year. The total number of cars sold in Spain (63,043...

  • Page 17
    ... - Earnings performance - Financial position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook The sales volume of the BMW 1 Series in 2006, with 151,918 cars handed over to customers during the year, was...

  • Page 18
    ... in line with schedule. The very first Phantom Drophead Coupé, the name by which the new model will be known, will be handed over to its new owner in July 2007. In September 2006, Rolls-Royce Motor Cars announced the development of a further model series which, in terms of both size and price, will...

  • Page 19
    ... position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook Car production volume at all- time high level The BMW Group manufactured a total of 1,366,838 cars in 2006, 3.3 % above the previous year...

  • Page 20
    .... M INI Production Triangle started The series production start for the new MINI also heralds the beginning of a new cooperation network of BMW Group plants in the United Kingdom. The BMW Group has invested almost GBP 200 million in the MINI Production Triangle with its plants in Hams Hall, Oxford...

  • Page 21
    ... events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook term, the maximum production capacity will be boosted by 20 % to a total of 240,000 MINI brand cars p.a. Once full production capacity has been reached, the number of employees working...

  • Page 22
    ...level. With a sales volume of 23,617 units, the BMW Group sold 1.9 % fewer motorcycles in Germany than in the previous year, even though some products were purchased during the final months of 2006 to avoid the forthcoming increase in value added tax. With a market share of 18.5 %, the BMW Group was...

  • Page 23
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 24
    ..., leases accounted for 37.4 % of all new retail customer contracts, roughly maintaining the level of the previous year. In the area of used car financing, the number of new contracts increased by 3.1%. Most of these were related to the credit financing of used BMW and MINI brand cars. The number of...

  • Page 25
    ... - Financial position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook Continued growth in the area of dealer financing The total volume of dealer financing contracts managed by the Financial Services...

  • Page 26
    ... the USA. As part of the expansion of banking activities, the MINI Card has also been available since mid-2006 in the USA and the United Kingdom (previously only in Germany and Japan). Balanced risk situation During the financial year 2006, the credit risk for credit and lease financing activities...

  • Page 27
    .... The sales companies located in 39 countries around the world also cooperate closely with the corporate headquarters in Munich. In 2006, more than 800 employees from BMW AG were working at locations outside Germany. The main target countries were the group's business locations in markets currently...

  • Page 28
    ... problems. The Human Resources department rolled out new business processes at all German sites, including providing access to the channels "Personnel Direct" and "Personnel Management". The objective of the new business processes is to lend personnel support to both employees and senior management...

  • Page 29
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 30
    ...the EU End- of- Life Vehicles Directive Over the last few years, a network of recovery centres for end-of-life vehicles has been set up in the countries of the European Union. Since 1 January 2007, customers in the EU have been able to return their BMW, MINI or Rolls-Royce vehicles to these recovery...

  • Page 31
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 32
    .... 4] Combined EU fuel consumption. Consumption was measured until 1996 using the DIN-1/3-Mix method. The value shown here has been adjusted to the currently valid New European Driving Cycle. Efficiency improvement of the BM W 118 i revised model 1] (Index = BMW 118i model year 2004, compared with...

  • Page 33
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 34
    ... take into account the specific design concept applicable to each relevant brand. Hydrogen 7 - the first series- developed vehicle with a hydrogen combustion engine In the long term, the BMW Group is working towards hydrogen as the fuel source of the future. The BMW Group presented the BMW Hydrogen...

  • Page 35
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 36
    ... for these model series are located to an increasing extent in newly acceded countries within the European Union. The NAFTA market is used primarily to purchase parts for cars manufactured at the BMW Spartanburg plant. The production line change and the BMW X5 model change caused the purchase volume...

  • Page 37
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 38
    ... products, the BMW Group also benefits from the strength of its various brands. To this end, it continues to invest substantial sums on precise measures to improve their profile. With consideration to the separate market positioning of the BMW und MINI brands, the BMW Group selected two new creative...

  • Page 39
    ... market, closing on 29 December at a price of euro 43.52. During the year under report, BMW preferred stock therefore gained 34.3 % in value. Programme to buy back shares of common stock At the Annual General Meeting of BMW AG on 12 May 2005, the shareholders authorised the Board of Management...

  • Page 40
    ... Online" judged the investor relations work of the BMW Group to be the best of any DAX 30 company. The internet plays a key role in the process of communicating financial information. Within this context, the on-going development of the BMW Group's investor relations website is of major significance...

  • Page 41
    ...Financial position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook relevant FTSE4Good index group. For the second time in succession, the BMW Group was judged by the Carbon Disclosure Project to be "Best...

  • Page 42
    ... Company's Board of Management is not aware of any other restrictions relating to voting rights or the transfer of shares. Based on the information available to the Company, the following direct or indirect holdings exceeding 10 % of the voting rights were held at the date stated: Direct share of...

  • Page 43
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 44
    ... basic conditions which result from periodic planning.The aim here is to monitor and manage periodic targets on a long-term basis. Periodic performance is managed in the light of defined accounting policies and external financial reporting requirements.The BMW Group primarily uses profit before tax...

  • Page 45
    ... 4.38 and earnings per share of preferred stock of euro 4.40. Group revenues rose by 5.0 % compared to the previous year. Adjusted for exchange rate factors, group revenues would have increased by 5.5 % or euro 2,574 million. Revenues from the sale of BMW, MINI and Rolls-Royce brand cars went up by...

  • Page 46
    - New car and motorcycles sales volume records - Group and segment earnings above previous year's level - Adverse external factors hold down reported earnings, qualitative key performance figures nevertheless positive - Settlement of Rolls-Royce exchangeable bond has one-off impact on earnings - ...

  • Page 47
    ... - Financial position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook The group net profit was up by euro 635 million or 28.4 % against the previous year. The marginally lower effective tax rate was...

  • Page 48
    ...12.2006 1,621 + 9,980 -13,670 + 3,323 + 82 1,336 Operating activities of the BMW Group generated a positive cash flow of euro 9,980 million in 2006, down by euro 711 million or 6.7 % compared to one year earlier. Changes in net current assets during 2006 resulted in a net cash outflow of euro...

  • Page 49
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 50
    ... of which cash and cash equivalents and marketable securities 2006 2% 2005 2% 2005 2006 Balance sheet structure industrial operations in euro billion 38 35 35 38 Non-current assets 51 % 55 % 39 % 41 % Equity 35 % Current assets 31 % Non-current provisions and liabilities 49 % 45 % 28...

  • Page 51
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 52
    ... work bought in by the BMW Group during the financial year. Depreciation and amortisation, cost of materials and other expenses are treated as bought-in costs in the value added calculation. The allocation statement applies value added to each of the participants involved in the value added process...

  • Page 53
    ... events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook 2006 2006 in % 2005 2005 in % Change in % Work performed Revenues Financial income Other income 48,999 393 744 97.7 0.8 1.5 46,656 -188 844 98.6 - 0.4 1.8 Total Group output Cost...

  • Page 54
    ...Financial operations Coverage of intangible assets, property, plant and equipment by equity Return on Assets BMW Group 23.1 14.9 8.3 8.4 5.9 24.3 16.9 24.2 40.6 10.4 115.3 22.9 14.6 8.1 7.0 4.8 19.9 13.5 22.8 39.1 10.4 108.2 % % 6.3 1.4 5.6 1.3 Financial Services Return on Capital Employed...

  • Page 55
    ... rate used to measure pension provisions (from 4.25 % to 4.40 %) and the discounted tax reimbursement resulting from a change in German law with regard to the corporation tax credit, had a positive effect. In the financial year 2006, capital expenditure on intangible assets and property, plant...

  • Page 56
    ...in euro million 2006 2005 Assets Intangible assets Property, plant and equipment Investments 80 5,268 4,823 86 5,717 4,774 Tangible, intangible and investment assets Inventories Trade receivables Receivables from subsidiaries Other receivables and other assets Marketable securities Cash and cash...

  • Page 57
    ...- Financial position - Net assets position - Subsequent events report - Value added statement - Key performance figures - Comments on BMW AG Risk Management Outlook Revenues Cost of sales 42,417 - 36,364 41,801 - 36,379 Gross profit Sales costs Administrative costs Research and development costs...

  • Page 58
    ...The BMW AG Financial Statements and Management Report for the financial year 2006 will be submitted to the operator of the electronic version of the German Federal Gazette and can be obtained via the Company Register website.These financial statements are available from BMW AG, 80788 Munich, Germany...

  • Page 59
    ... factors such as changes in currency parities and changes on the financial markets. The US dollar is particularly important for the development of group revenues and earnings and represents the main single source of risk within the BMW Group's foreign currency portfolio. Exchange rate fluctuations...

  • Page 60
    ... active life-cycle management and management of used car markets at an international level, both of which have a stabilising effect on the residual values of BMW Group vehicles. - Operating risks relating to the provision of financial services are managed by the BMW Group by means of a process which...

  • Page 61
    ..., financing applications for international dealers, importers and fleet customers are presented to the local, regional or corporate credit committees for approval. A two-step credit application process helps to reduce the risk of default affecting the Group's worldwide financial services operations...

  • Page 62
    ... corporate assets and are mainly invested in fixed-income securities with a high level of creditworthiness, and in equities. In Germany, by contrast, the funds remain part of the enterprise's assets. Information and IT risks The BMW Group protects data, business secrets and innovative developments...

  • Page 63
    ... Review of the Financial Year General Economic Environment Review of operations BMW Stock and Bonds Disclosures pursuant to §289 (4) and §315 (4) HGB Financial Analysis - Internal Management System - Earnings performance - Financial position - Net assets position - Subsequent events report - Value...

  • Page 64
    ...positive earnings impact in 2007. The BMW Group will continue to make good use of opportunities to achieve further growth over the coming years and, with that aim in mind, invest in both new products and in the further expansion of its sales and production networks. Based on current forecasts, total...

  • Page 65
    ... 86 104 111 Auditors' Report 115 65 Group Financial Statements 65 66 68 70 71 Income Statements Balance Sheets Cash Flow Statements Group Statement of Changes in Equity Statement of Income and Expenses recognised directly in Equity Notes - Accounting Principles and Policies - Notes to the Income...

  • Page 66
    ... 2006 Group 2005 Industrial operations * 2006 2005 Financial operations * 2006 2005 Revenues Cost of sales [8 ] [9 ] 48,999 46,656 49,227 47,206 11,349 - 10,050 9,801 - 8,623 - 37,660 -35,992 - 39,238 -37,343 Gross profit Sales and administrative costs Research and development costs...

  • Page 67
    ... 2005 2006 Industrial operations * 2006 2005 Financial operations * 2006 2005 Intangible assets Property, plant and equipment Leased products Investments accounted for using the equity method Other investments Receivables from sales financing Financial assets Deferred tax Other assets [19 ] [20...

  • Page 68
    ... operations * 2006 2005 Subscribed capital Capital reserves Revenue reserves Accumulated other equity Treasury shares Minority interest 654 1,911 18,121 - 1,560 - 4 [30 ] [31] [32 ] [33 ] [34 ] [35 ] 674 1,971 16,351 -1,517 -506 - Equity Pension provisions Other provisions Deferred tax Financial...

  • Page 69
    ... profit Depreciation of leased products Depreciation and amortisation of tangible, intangible and investment assets Change in provisions Change in deferred taxes Other non-cash income and expense items Gain/loss on disposal of non-current assets and marketable securities Result from equity accounted...

  • Page 70
    ... profit Depreciation of leased products Depreciation and amortisation of tangible, intangible and investment assets Change in provisions Change in deferred taxes Other non-cash income and expense items Gain/loss on disposal of non-current assets and marketable securities Result from equity accounted...

  • Page 71
    ...199 -172 543 - 215 2,874 -2 Withdrawal of shares from circulation Dividends paid Translation differences Financial instruments Actuarial gains and losses on pension obligations Deferred tax on transactions recognised directly in equity Net profit 2006 Other changes 72 72 79 86 104 111 31 December...

  • Page 72
    ... available-for-sale investments recognised directly in equity Fair value gains and losses on financial instruments used for hedging purposes recognised directly in equity Exchange differences arising on the translation of foreign subsidiaries Actuarial gains and losses on defined benefit pension and...

  • Page 73
    ... the earnings, financial and net assets position of the Group, additional information has been presented in the BMW Group financial statements on its industrial and financial operations. Financial operations include financial services and the activities of the Group financing companies.The operating...

  • Page 74
    ... on the Group's earnings, financial and net assets position is immaterial. Non-inclusion of operating subsidiaries reduces total Group revenues by 1.5 % (2005: 1.7 %). Two joint ventures have been consolidated using the equity method. With effect from the beginning of the financial year 2006...

  • Page 75
    ...of BMW AG and of its subsidiaries in Germany and elsewhere have been prepared for consolidation purposes using uniform accounting policies in accordance with IAS 27. Revenues from the sale of products are recognised when the risks and rewards of ownership of the goods are transferred to the customer...

  • Page 76
    ... cost. Cost of sales comprises the cost of products sold and the acquisition cost of purchased goods sold. It includes all directly attributable material and production costs and production overheads, including depreciation/amortisation of property, plant and equipment and intangible assets relating...

  • Page 77
    ...-related overheads. This includes production-related depreciation and an appropriate proportion of administrative and social costs. Financing costs are not included in acquisition or manufacturing cost. Non-current assets also include assets relating to leases. The BMW Group uses property, plant...

  • Page 78
    ... customer, dealer and lease financing. Items are presented as financial assets to the extent that they relate to financing transactions. Derivative financial instruments are only used within the BMW Group for hedging purposes in order to reduce the currency, interest rate and market price risks...

  • Page 79
    ...into account the relevant biometric factors. Actuarial gains and losses are recognised, net of deferred tax, directly in equity. The expense related to the reversal of discounting on pension obligations and the income from the expected return on pension plan assets are reported separately as part of...

  • Page 80
    ... financial reporting rules issued in 2006 will not have a significant impact on the BMW Group. [8 ] Revenues Revenues by activity comprise the following: in euro million 2006 2005 Sales of products and related goods Income from lease instalments Sale of products previously leased to customers...

  • Page 81
    ... administration not attributable to development, production or sales functions. 65 Group Financial Statements 65 66 68 70 71 Income Statements Balance Sheets Cash Flow Statements Group Statement of Changes in Equity Statement of Income and Expenses recognised directly in Equity Notes - Accounting...

  • Page 82
    ... and other companies 62 - 46 16 28 - - Result on investments Expected return on plan assets Other interest and similar income - thereof from subsidiaries: euro 19 million (2005: euro 21 million) 32 315 259 28 283 363 Interest and similar income Expense from reversing the discounting of pension...

  • Page 83
    ... recognised directly in Equity Notes - Accounting Principles and Policies - Notes to the Income Statement - Notes to the Balance Sheet - Other Disclosures - Segment Information Intangible assets Property, plant and equipment Leased products Investments Other current assets Tax loss carryforwards...

  • Page 84
    ... of the exchangeable bond on shares in Rolls-Royce plc, London, also had an impact. Furthermore, legislation relating to the taxation of retained earnings in Germany has changed as a result of § 37 (5) of the German Corporation Tax Act (new version). For this reason, the present value of the...

  • Page 85
    84 Group Financial Statements [16 ] Earnings per share 2006 2005 Net profit for the year after minority interest Profit attributable to common stock Profit attributable to preferred stock Average number of common stock shares in circulation Average number of preferred stock shares in circulation...

  • Page 86
    ... fees for the audit of the annual financial statements of BMW AG, the audit of the Group financial statements and the audit of the annual financial statements of the German subsidiaries. The item "Tax advisory services" relates principally to fees for services provided to employees seconded abroad.

  • Page 87
    ... - 645 31 1,260 225 17 6,139 18,974 2,061 898 Property, plant and equipment Leased products Investments accounted for using the equity method Investments in associated companies Investments in other companies Non-current marketable securities 26,825 9,275 65 150 564 20 372 1,291 - 2 - 3 2,408...

  • Page 88
    ... 60 197 190 14 11,087 11,375 94 149 997 32 45 - 46 - 16 75 401 1,178 Depreciation and amortisation 1.1.2005 1] Translation differences Current year 2] Disposals Reversals 31.12.2005 Net book values 31.12.2005 31.12.2004 2,101 320 - -1 745 68 399 44 - 53 2,447 290 4,146 447 3,495...

  • Page 89
    ... Group Statement of Changes in Equity euro 205 million). This comprises mainly operational Statement of Income and buildings used by BMW AG and leased plant and Expenses recognised directly in Equity equipment used primarily in the Oxford and Hams Notes - Accounting Principles Hall production plants...

  • Page 90
    ... purchase options as well as price escalation clauses. Changes in leased products during the year are shown in the analysis of changes in Group tangible, intangible and investment assets on pages 86 and 87. [22 ] Investments accounted for using the equity method and other investments Investments...

  • Page 91
    ... relating to exchangeable bond issued by the BMW Group on shares in Rolls-Royce plc, London. A break-down of the different classes of other investments disclosed in the balance sheet and changes during the year are shown in the analysis of changes in Group tangible, intangible and investment assets...

  • Page 92
    ... primarily to changed exchange rate parities with the US dollar and to the higher level of interest rates. Marketable securities and investment funds relate to available-for-sale financial assets and comprise: in euro million 31.12.2006 31.12.2005 Stocks Investment funds Fixed income securities...

  • Page 93
    ... other companies in which an investment is held are all due within one year (2005: non-current amount of euro 4 million). Prepayments of euro 683 million (2005: euro 635 million) relate mainly to prepaid interest, development costs not eligible for capitalisation as non-current assets, insurance...

  • Page 94
    ... (net of income tax effect) and were recognised directly in equity. At the Annual General Meeting on 16 May 2006, the shareholders authorised the Board of Management to acquire treasury shares via the stock exchange, up to a maximum of 10 % of the share capital in place at the date of the resolution...

  • Page 95
    ... country, various pension plans are used, based generally on the length of service and salary of employees. Due to similarity of nature, the obligations of BMW Group companies in the U.S. and of BMW (South Africa) (Pty) Ltd., Pretoria, for post-employment medical care are also disclosed as pension...

  • Page 96
    ... or losses include the effect of changes in the measurement parameters, changes in estimates caused by the actual development of risks impacting on pension obligations and differences between the actual and expected return on plan assets. Past service cost arises where a BMW Group company introduces...

  • Page 97
    ... Pension payments or transfers to external funds Actuarial gains (-) and losses (+) on defined benefit obligations Actuarial gains (-) and losses (+) on plan assets Employee contributions to the deferred remuneration retirement scheme Translation differences and other changes 65 Group Financial...

  • Page 98
    ...in Germany, the United Kingdom and other countries changed as follows: in euro million Defined benefit obligation 2005 2006 Germany Plan assets 2006 2005 Net obligation 2006 2005 1 January Expense from pension obligations Payments to external funds Pension payments Actuarial gains (-) and losses...

  • Page 99
    .... In the United Kingdom, a substantial portion of plan assets is invested in debt securities in order to minimise fair value fluctuations. 65 Group Financial Statements 65 66 68 70 71 Income Statements Balance Sheets Cash Flow Statements Group Statement of Changes in Equity Statement of Income and...

  • Page 100
    ...-time consolidated entities - 64 2,284 34 2,402 264 5,536 Of the amount shown as reversed, euro 123 million are included in costs by function in the income statement. [33 ] Income tax liabilities 31 December 2006 in euro million Maturity within one year Maturity later than one year Total...

  • Page 101
    ... of the BMW Group at the relevant balance sheet dates relating to financing activities and comprise: 31 December 2006 in euro million Maturity within one year Maturity between one and five years Maturity later than five years Total Bonds Liabilities to banks Liabilities from customer deposits...

  • Page 102
    ... 1.6 5.8 BMW Coordination Center V.o.F., Bornem variable variable variable variable fixed fixed BMW (UK) Capital plc, Bracknell variable variable fixed BMW US Capital, LLC, Wilmington, Del. variable variable variable fixed fixed fixed fixed fixed fixed Rolls-Royce Motor Cars Ltd., Bracknell...

  • Page 103
    102 Group Financial Statements The following details apply to the commercial paper: Issuer Issue volume in relevant currency (ISO-Code) Weighted average maturity period (in days) Weighted average nominal interest rate (in %) BMW AG, Munich BMW Coordination Center V.o.F., Bornem BMW Finance ...

  • Page 104
    ... Grants comprise primarily public funds to promote regional structures; this has been invested in the construction of the production plant in Leipzig. In accordance with IAS 20, they are recognised as income over the useful lives of the assets to which they relate. [36 ] Trade payables 31 December...

  • Page 105
    ..., the BMW Group also has other financial commitments, primarily under lease contracts for land, buildings, plant and machinery, tools, office and other facilities.The leases run for periods of one to 96 years and in some cases contain extension and/or purchase options. Lease payments of euro...

  • Page 106
    ... management system involves the use of standard financial instruments such as short-term deposits, investments in variable and fixed-income securities as well as securities funds. The BMW Group is therefore exposed to risks resulting from changes in interest rates, market prices and exchange rates...

  • Page 107
    ... of derivative financial instruments of the BMW Group are shown in the following analysis: in euro million Nominal amount Total Fair values due within due between one year one and five years due later than five years 31 December 2006 Assets Currency hedge contracts Interest rate contracts Other...

  • Page 108
    ...flows from investing and financial activities are based on actual payments and receipts. The cash flow from operating activities is computed using the indirect method, starting from the net profit of the Group. Under this method, changes in assets and liabilities relating to operating activities are...

  • Page 109
    ... performed logistics services for the BMW Group during the financial year 2006. In addition, companies of the DELTON Group purchased vehicles from the BMW Group. In addition, SOLARWATT AG, Dresden, in which Stefan Quandt has a significant investment, supplied solar modules with a total value of euro...

  • Page 110
    ... Board of Management of BMW AG is, in total, less than 1 % of the issued stock shares. [43 ] Compensation of members of the Board of M anagement and Supervisory Board Subject to the approval of the proposed dividend at the Annual General Meeting of Shareholders, the remuneration of current members...

  • Page 111
    ...and Expenses recognised directly in Equity Notes - Accounting Principles and Policies - Notes to the Income Statement - Notes to the Balance Sheet - Other Disclosures - Segment Information [44 ] Application of exemptions pursuant to § 264 (3) and § 264 b HGB A number of companies and incorporated...

  • Page 112
    ...spare parts and accessories. BMW and MINI brand products are sold in Germany through branches of BMW AG and by independent, authorised dealers. Sales outside Germany are handled primarily by subsidiary companies and, in a number of markets, by independent import companies. Rolls-Royce brand vehicles...

  • Page 113
    ... financial result Profit before tax Change compared to previous year Return on sales Significant non- cash items Internal financing Capital expenditure Depreciation and amortisation Additions to leased products Investments accounted for using the equity method Assets Liabilities Average workforce...

  • Page 114
    113 Motorcycles 2006 2005 Financial Services 2006 2005 Reconciliations 2006 2005 2006 Group 2005 1,255 3.1 1,217 19.1 9,603 19.0 8,073 18.2 193 62.2 119 40.0 48,999 5.0 46,656 5.2 10 66.7 6 -14.3 1,476 10.6 1,335 - 4.4 - 11,305 13.6 - 9,...

  • Page 115
    ... recognised directly in Equity Notes - Accounting Principles and Policies - Notes to the Income Statement - Notes to the Balance Sheet - Other Disclosures - Segment Information 72 72 79 86 104 111 Munich, 20 February 2007 Bayerische M otoren Werke Aktiengesellschaft The Board of Management

  • Page 116
    ... of operations of the Group in accordance with these requirements. The group management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the Group's position and suitably presents the opportunities and risks of future development. Munich...

  • Page 117
    ... 119 Members of the Board of Management 120 Corporate Governance in the BMW Group 121 Compensation Report 124 Directors' Dealings 124 Shareholdings of members of the Board of Management and Supervisory Board 125 Declaration of Board of Management and of the Supervisory Board pursuant to §161 AktG...

  • Page 118
    ... Board of IG Metall Arthur L. Kelly Managing Partner of KEL Enterprises L.P. M andates* * BASF AG DataCard Corp. Deere & Company Northern Trust Corp. Robert Bosch Corp. Snap-on Inc. Susanne Klatten BSc., MBA Honorary Senator of the Technical University of Munich M andates* * ThyssenKrupp AG...

  • Page 119
    ... Air Lines AG Heinz- Joachim Neubürger (from 16.05.2006) Export Merchant, MBA M andates* * Allianz Versicherungs- AG 116 Corporate Governance 116 Members of the Supervisory Board 119 Members of the Board of Management 120 Corporate Governance in the BMW Group 121 Compensation Report 124...

  • Page 120
    ...Göschel (until 31.10.2006) Development and Purchasing Stefan Krause Finance M andates* * BMW Motoren GmbH (Chairman) BMW (South Africa) (Pty) Ltd. (Chairman) Leipziger Messe GmbH M andates* * Allianz Deutschland AG Ernst Baumann Human Resources, Industrial Relations Director M andates* * Krones...

  • Page 121
    ...the BMW Group website. Interested parties can also find other general information about the Group, up-to-date analysts' reports and all financial publications of the Group at www.bmwgroup.com/ir. A coordinator responsible for all corporate governance issues regular reports to the Board of Management...

  • Page 122
    ...use of company cars and the payment of insurance premiums. The factors determining the amount of variable compensation enable members of the Board of Management to earn a competitive level of income with a very high bonus element (2006: 84.1%, 2005: 83.6 %) for financial years in which the BMW Group...

  • Page 123
    ... transitional payments. The amounts disclosed below as the annual pension provision allocation for each member correspond to the pension service cost. Former members of the Board of Management are entitled to lease or purchase cars and motorcycles on the basis of the terms and conditions applicable...

  • Page 124
    ... the end of the financial year), and a variable amount of euro 1,500 for each percent of the dividend resolved by the shareholders at the Annual General Meeting in excess of 4% of the company's share capital (common stock). The Chairman of the Supervisory Board receives three times this amount and...

  • Page 125
    ... BMW stock or related financial instruments, if the total sum of such transactions exceeds an amount of euro 5,000 during the calendar year. BMW AG was given notice of the following transactions, which were also posted on the group website at www.bmwgroup.com: Date of transaction Person reporting...

  • Page 126
    ... Section 4.2.2 paragraph 1 GCGC: The Supervisory Board has transferred discussion and regular review of the structure of the compensation system of the Board of Management to the Personnel Committee. The Supervisory Board is informed on a regular basis of the work of the Personnel Committee.

  • Page 127
    ... drawn up in accordance with uniform IFRSs accounting policies. Equity and net result are translated at the closing rate. 126 Other Information 126 128 130 132 136 138 139 BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary Index Contacts Financial Calendar

  • Page 128
    ...BMW New Zealand Ltd., Auckland BMW (UK) Holdings Ltd., Bracknell BMW (UK) Manufacturing Ltd., Bracknell BMW (UK) Ltd., Bracknell BMW Financial Services (GB) Ltd., Hook BMW (UK) Capital plc, Bracknell BMW Malta Ltd., Valletta BMW Malta Finance Ltd., Valletta BMW Coordination Center V.o.F., Bornem BMW...

  • Page 129
    ... flow statement Cash and cash equivalents at balance sheet date Operative cash flow 8] 126 Other Information 126 128 130 132 136 138 139 BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary Index Contacts Financial Calendar euro million euro million euro million...

  • Page 130
    ... 2000 4] excluding C1, sales volume to 2003: 32,859 units 5] up to 1999 including BMW F 650 assembly by Aprilia S.p.A., from 2006 including BMW G 650 X assemply by Piaggio S.p.A./ exclude dormant employment contracts, employees in the non-work phases of pre-retirement part-time arrangements and low...

  • Page 131
    ... in the world markets with 23 production and assembly plants, 39 sales subsidiaries and a research and development network. 126 Other Information 126 128 130 132 136 138 139 BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary Index Contacts Financial Calendar

  • Page 132
    ... Test Center, Oxnard, USA BMW Group Technology Office, Tokyo, Japan BMW Group Entwicklungsbüro, Peking, China Production Berlin plant Dingolfing plant Eisenach plant Goodwood plant, GB (headquarters of Rolls-Royce Motor Cars Limited) Hams Hall plant, GB Landshut plant Leipzig plant Munich plant...

  • Page 133
    ... A management tool that allows companies and organisations to evaluate, report on and improve their environmental performance. 126 Other Information 126 128 130 132 136 138 139 BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary Index Contacts Financial Calendar

  • Page 134
    ...less income tax paid. [Preferred stock] Stock which receives a higher dividend than common stock, but without voting rights. [Principal subsidiaries] Subsidiaries are those enterprises which, either directly or indirectly, are under the uniform control of the management of BMW AG or in which BMW AG...

  • Page 135
    ... capital] The share capital of a company is computed by multiplying the nominal value of the shares by the number of shares. 126 Other Information 126 128 130 132 136 138 139 BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary Index Contacts Financial Calendar

  • Page 136
    ... combating poverty, ensuring a suitable population policy, promoting urban development, human rights, trade, agriculture, environmental protection, research and technology. Referred to as Agenda 21, this action plan serves to ensure sustainable development, preserving the world's natural resources...

  • Page 137
    ...accounted for using the equity method and other investments 76, 86, 89,112 [ K] Key data per share 40 [ L] Leased products 47-48,66,68,76,82,86,89,111-112 Locations 26, 28 -29, 33,130 [M] Mandates of members of Board of Management 119 Mandates of members of Supervisory Board 116 Market price changes...

  • Page 138
    ... market 15 BMW Group - key automobile markets 2006 15 BMW brand cars in 2006 - analysis by series 16 Deliveries of BMW diesel automobiles 17 MINI brand cars in 2006 - analysis by engine and model variant 17 Automobile production of the BMW Group by plant in 2006 18 BMW Group - key motorcycle markets...

  • Page 139
    .../ir. Information about the various BMW Group brands is available at www.bmw.com, www.mini.com and www.rolls-roycemotorcars.com. 126 Other Information 126 128 130 132 136 138 139 BMW AG Principal Subsidiaries BMW Group 10-year Comparison BMW Group Locations Glossary Index Contacts Financial Calendar

  • Page 140
    Financial Calendar 139 Interim Report to 31 March 2007 Annual General Meeting Interim Report to 30 June 2007 Interim Report to 30 September 2007 3 May 2007 15 May 2007 1 August 2007 6 November 2007

  • Page 141
    The BMW Group The year 2006 Focus: Assuming responsibility Assuming responsibility. Creating values.

  • Page 142
    Preface by the Chairman of the Board of Management The BMW Group >> 08 The year 2006 >> 14 Focus: Assuming responsibility >> 36 >> 04

  • Page 143
    The BMW Group 03 Growing profitably, acting responsibly. Challenge and aspiration at once. The BMW Group's solution: assuming responsibility. Focus: responsibility Page 36

  • Page 144
    ... day with our automobiles, motorcycles and financial services. Our key financial data also improved last year. For the first time in the Company's history, our profit before tax exceeded the four billion euro mark. Admittedly, book profit from the exchangeable bond option relating to shares in Rolls...

  • Page 145
    ... is our commitment in India where we opened a new sales subsidiary near Delhi at the beginning of the year. A few days ago our new BMW plant in Chennai began production of BMW 3 Series automobiles for the Indian market. The plant will also produce BMW 5 Series models for India from May onwards. Our...

  • Page 146
    ...than we can. Steadily rising sales volumes for BMW, MINI and Rolls-Royce, robust business with BMW motorcycles as well as years of continuing growth for BMW Financial Services are all impressive evidence of this. However, a record year such as 2006 should not mislead us. Our Company, like the entire...

  • Page 147
    ..., customers, employees and other stakeholders in order to master the challenges and, at the same time, to safeguard the success of the BMW Group in the future. We at the BMW Group aim to devote even greater attention to this objective and to our responsibility as company in the next few years...

  • Page 148
    ... behind the BMW Group's success. An aspiration that determines the character of the entire Company: not only in the automobile and motorcycle business, but also in the business with financial services for corporate and private customers. Premium - and nothing else. Growing profitably - worldwide...

  • Page 149
    .... Premium is what the BMW Group does best. Premium is this Company's inherent strength. Each of the three brands - BMW, MINI and Rolls-Royce - has its own unmistakable profile, authenticity and individual history. Thus, each brand appeals to a particular type of customer. We aim constantly to...

  • Page 150
    ... with importers and then it enters the market with its own sales subsidiary. If a market offers corresponding potential, the Company establishes its own production facilities there. Numerous examples demonstrate the success of this strategy: the BMW Group built its own BMW plant in South Africa in...

  • Page 151
    ...wish to achieve the very best, moves and drives not only the more than 106,000 employees of the BMW Group worldwide. It also shapes corporate culture and determines all processes in the Company. More than 1.3 million customers placed their trust in the BMW Group last year. Thus, they have once again...

  • Page 152
    ... work together at the BMW Group's Munich location. Thus, the BMW Group is not only a truly international company in its geographical scope, but also in the composition of its workforce. 98 billion euros were paid to BMW Group employees in wages and salaries in 2006.This amount includes pension...

  • Page 153
    The BMW Group 13 people are employed in the BMW Group's dealer network, namely at independent dealerships or importers - almost as many people as within the BMW Group itself. 100,000 seconds was the average time between two sales of a BMW Group automobile in 2006. 23 tons is the load the ...

  • Page 154
    14 The year 2006 was the most successful in the company history of the BMW Group.This is evident not only from record sales, revenues and income, but also from the many events and highlights that marked the year 2006 for the BMW Group - here are some of them.

  • Page 155
    The year 2006 15 What events marked the year 2006 for the BMW Group? Too many to all be listed here. Some of the highlights. 31 Highlights

  • Page 156
    16 January February March April May June July August September The year 2006 October November December

  • Page 157
    ...in the Board of Management of the BMW Group. >> 27 MINI production triangle launched. >> 27 A new era of mobility begins - the BMW Hydrogen 7. >> 28 BMW Group remains the most popular employer. >> 28 MINI world premiere at the Mondial de l'Automobile 2006. >> 29 Rolls-Royce announces new model range...

  • Page 158
    .... >> 03 Design study MINI Concept Detroit: dynamic engine performance and sporting ambience inside the car combined with flexible, intelligent use of space. >> 04 The BMW Group is continuing its international market initiative in India. From 2007 the BMW Group will begin by setting up six new BMW...

  • Page 159
    ...network, pricing and product strategy, marketing and aftersales. Subsidiary and assembly plant will go into operation at the beginning of 2007. The BMW Group will also expand its dealer network to all the country's major urban areas. Design Award of the Federal Republic of Germany for the BMW Group...

  • Page 160
    .... The MINI brand presented a particularly sporty automobile in Geneva. The new MINI Cooper S with John Cooper Works GP Kit weighs about 50 kilograms less than a MINI Cooper S with average equipment. At the same time, with engine power boosted to 160 kW/218 bhp and a top speed of 235 km /h, the model...

  • Page 161
    ... functionality of the BMW 3 Series. >> 04 MINI Cooper S John Cooper Works GP Kit: the first series- produced MINI with just two seats. >> 06 >> 05 His Royal Highness the Duke of York, Prince Andrew, asked employees about the production of the Rolls- Royce Phantom. >> 06 BMW plant in Spartanburg: at...

  • Page 162
    ...Racing Team spent much of the 2006 season improving the new yacht. The season was a great success. In 2006, the BMW ORACLE Racing Team took part in four regattas and won two first places. >> 01 Christening of the USA 87: Sue Dickson, wife of the BMW ORACLE Racing team CEO Chris Dickson, took on the...

  • Page 163
    ... judges the most important new models of the year according to 20 criteria, including design, performance, handling, comfort and functionality. The awards ceremony was held during the New York International Auto Show. Engine of the Year - V10 power unit from the BMW M5/M6. Munich. Never before in...

  • Page 164
    24 17/ 05 / 2006 Victories in the Mille Miglia 2006. Munich/San Donato Milanese. In the year of the BMW 328's 70th birthday, the Cané/Galliani team of the BMW Group Mobile Tradition won the Mille Miglia 2006 in the historic BMW 328 MM Roadster that had already taken third place in 1940. The ...

  • Page 165
    ..., more than 4,100 new jobs have been created on the plant premises, more than 2,300 at BMW, the others at suppliers and service partners. In 2007, daily output is to increase to 650 vehicles. Sales subsidiaries opened in the Czech Republic and in Slovakia. Munich. The BMW Group extended its global...

  • Page 166
    .... An architectural icon looks as good as new. In September, after 29 months, the employees moved back into the BMW Group's headquarters in Munich, a complex comprising the "Four Cylinders", the BMW Museum, a low-rise building and a multistorey car park. The "inside" of both the 22-storey Tower and...

  • Page 167
    ... 7 Series. The BMW Group has invested a total of nearly 200 million pounds sterling to build the new MINI in the so-called MINI production triangle with plants in Hams Hall, Oxford and Swindon. Thus, maximum production capacity will rise by 20 percent to up to 240,000 units a year in the medium term...

  • Page 168
    ... in conventional petrol mode. >> 03 The new MINI: while an evolutionary approach was taken to developing the exterior design in the brand's characteristic look, the interior has been updated with intelligent and trendy features. >> 04 BMW 3 Series Coupé: BMW continues a long tradition with this two...

  • Page 169
    ... market launch. The new MINI Cooper S and the new MINI Cooper were introduced with completely new four-cylinder engines at the end of 2006. The BMW brand also presented new models. The new BMW 3 Series Coupé joined the Sedan and Touring as an exclusive addition to the BMW 3 Series. In Paris, trade...

  • Page 170
    .... The K series was also extended: the BMW K1200 R now has a sister model, the K 1200 R Sport with sporty half-fairing. BMW Motorrad has added the new singlecylinder models to its product range to attract new target groups. While they share the same technical base, these three motorcycles - the hard...

  • Page 171
    ...is renewed evidence of the successful growth course of the BMW Group's Financial Services in recent years. Excellence Award for the BMW Group. Munich/Dingolfing. On 7 November, FrankPeter Arndt, member of the Board of Management of BMW AG responsible for Production, received the Excellence Award of...

  • Page 172
    ... show in Beijing. Munich/Beijing. In mid-November the BMW Group presented the BMW 530Li, 525Li and 523Li to the public at Auto China in Beijing. The long-wheelbase versions, developed exclusively for the Chinese market, differ from the other already successful BMW 5 Series automobiles in China in...

  • Page 173
    ... public for the first time in Los Angeles. The new edition of the successful Sports Activity Vehicle (SAV) is produced in the BMW plant in Spartanburg, South Carolina, and had been awaited on the US market, which is so important for vehicles of this segment, with tremendous excitement. The BMW Group...

  • Page 174
    ...museums and successful artists. The BMW Group presented the newly designed BMW Museum, which will be re-opened to the public in 2008. Adrian van Hooydonk, Head of Design BMW Automobiles, demonstrated the dynamic exhibition architecture of the BMW Museum using pictures, films and a model. This museum...

  • Page 175
    ... supercomputer is an important tool which will support us in this." Munich/Berlin. For the first time in the history of the BMW Group, more than 100,000 motorcycles were produced in the Berlin plant in a single year. The 100,000th motorcycle, an R1200 R, rolled off the assembly lines on 15 December...

  • Page 176
    36 Growing profitably, acting responsibly - challenge and aspiration at once.The BMW Group's view: a company only has a viable future - and can thus increase its value sustainably and on a long-term basis - if it takes responsibility.

  • Page 177
    Focus: Assuming responsibility 37 Assuming responsibility. Or: What does responsibility mean for the BMW Group as leading premium manufacturer in the automobile industry? The answer: Creating values.

  • Page 178
    ... on corporate strategy, individual products, the number of employees and more besides. However, it has no direct influence on other factors that are just as important for the company's success. These are, in particular, social developments and challenges, which in the long term affect the conditions...

  • Page 179
    ... and permanently increasing company value.This means that the Company aspires to play an active role - both in shaping internal economic success factors and as corporate citizen in society. After all, the BMW Group has a vital interest in securing, in the long term, the conditions that are necessary...

  • Page 180
    ...tomorrow - all these play at least as important a role for determining the value of a company as the short-term view of key financial data from quarter to quarter. Safeguarding future viability In order to maintain or even develop the BMW Group's leading position in keeping with these standards, the...

  • Page 181
    ...forwardlooking action - and at the same time advances to become one of the aspects that decisively determine a company's value in the future. These aspects play an increasingly important role also on the financial markets, for financial analysts and investment banks have spotted the correlations and...

  • Page 182
    ...vehicle. Current examples of this include new engines with High Precision Injection, but also innovations for enhanced energy management in the vehicle, such as Brake Energy Regeneration or the Auto Start/Stop Function. In the medium term, the BMW Group will introduce more innovations to reduce fuel...

  • Page 183
    ...,337 American households. At the same time, the plant's annual energy costs will fall by a six-digit euro amount. The BM W Group's Research and Innovation Centre 01 02 03 04 >>03 Innovative energy-saving projects 01 Process cooling system 02 Heat exchanger 03 Return water 04 Supply water 05 Water...

  • Page 184
    ... self-evident in view of the immense global challenges. At the same time, the BMW Group with its workforce of more than 106,000, most of whom are employed in Germany, is confronted in special measure with the consequences of demographic change. Obviously, a company that manages to anticipate these...

  • Page 185
    ... management at all locations, qualifications and competence management, individual retirement schemes and communications on these subjects. The BMW Group offers its employees comprehensive support for their own provisions for the future - whether relating to health and finance, skills or the design...

  • Page 186
    ...: the BMW Group has developed an extensive programme against HIV/AIDS at its location in South Africa. However, it is not only a company's duty to care for its employees that drives BMW South Africa to fight against HIV/AIDS, but also an economic necessity. The South African plant produces some...

  • Page 187
    ... able, the BMW Group provides its employees with qualifications and, with its positive corporate culture, creates the stimuli that make people aspire to work for the BMW Group. However, the Company has no direct influence on the education policy of the countries in which it operates. Expressed more...

  • Page 188
    ... sedan for everyday use.The BMW Hydrogen 7 has completed the series development process and is the result of a resolutely pursued strategy, which already enables the BMW Group to use hydrogen as trendsetting fuel for everyday operation. The BMW Hydrogen 7 is equipped with a dual-mode twelve-cylinder...

  • Page 189
    ... future. In addition, we see ourselves as part of the societies in which we live and work.This applies on the one hand to the BMW Group as a company and, on the other, to all our employees as people in their respective environment. The BMW Group is involved in many different fields. Our commitment...

  • Page 190
    ... policy-makers, companies and every individual member of society. No one can be excluded. No one should shift the responsibility to others. We are prepared to continue to bear responsibility within the scope of our possibilities. And in doing so, we will increase the value of the BMW Group steadily...

  • Page 191
    ...want to continue to be successful in ten, twenty or thirty years. In our view, assuming responsibility is a necessary and meaningful investment. The bottom line is that the public may rest assured that the BMW Group is a company with an honest interest in the positive development of society. And for...

  • Page 192
    ... range With its three brands BMW, MINI and Rolls-Royce, the BMW Group is represented in all the currently relevant premium segments on the international automobile and motorcycle markets. Thus, the Company offers a truly unique product range, which is linked by a common claim: Premium - and nothing...

  • Page 193
    ... a slot-in drive. March 2007 The manufacture of, and the paper used for, the BMW Group's Annual Report 2006, have been certified in accordance with the criteria of the Forest Stewardship Council (FSC). The FSC prescribes stringent standards for forest management, thus helping to avoid uncontrolled...

  • Page 194

  • Page 195
    ...2] (l/100 km) Extra- Combined CO2 urban (l/100 km) emissions (l/100 km) [g/km] Model Displacement Power Gearbox1] (cc) output (kw) Fuel Urban type 2] (l/100 km) Extra- Combined CO2 urban (l/100 km) emissions (l/100 km) [g/km] BMW 116i 116i (from 03/07) 118i 118i 118i (from 03/07) 118i (from 03...

  • Page 196
    ...Royce Phantom Rolls-Royce Phantom Long wheel base 1] Gearbox type: M5 = manual shift 5-speed M6 = manual shift 6-speed 6749 6749 338 338 A6 A6 S S 23.2 23.3 11.3 11.4 15.7 15.8 377 380 A5 = automatic transmission 5-speed A6 = automatic transmission 6-speed 2] Fuel type: S = Super SP = Super...

  • Page 197
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