BMW 2007 Annual Report Download - page 28

26 Group Management Report
10 Group Management Report
10 A Review of the Financial Year
13 General Economic Environment
17 Review of Operations
41 BMW Stock and Bonds
44 Disclosures relating to Takeover
Regulations and Explanatory Report
47 Financial Analysis
47 – Internal Management System
49 – Earnings Performance
51 – Financial Position
52 – Net Assets Position
55 – Subsequent Events Report
55 – Value Added Statement
57 – Key Performance Figures
58 – Comments on BMW AG
62 Risk Management
68 Outlook
Risk situation remains evenly balanced
During the financial year 2007, the credit risk for
credit and lease financing activities remained, with
the exception of the USA, at a similar level to that
of 2006. There, the risk situation was negatively in-
fluenced by the credit crisis. Compared to the pre-
vious year, the bad debts ratio increased by 5 basis
points to 0.46 %. 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 interest rate risk*, increased during the
year from euro 34.9 million to euro 37.3 million.
*based on a 99 % confidence level and a holding period of ten days
Softlab changes name to Cirquent
The softlab Group offers consultancy and other
services along the entire value-added chain, with its
main focus on the banking, insurance, telecommu-
nication and manufacturing sectors. In order to un-
derline its strong position as an organisation offering
first-class service under one single brand name,
the softlab Group changed its name to Cirquent at
the end of 2007.
Cirquent has continued to strengthen its market
position over the past year. This is highlighted by
the rise in revenues from euro 262 million in 2006 to
euro 286 million in 2007. One of the cornerstones
on which this growth has been built is the expansion
consultancy business, including the Finance Trans-
formation Unit, a new line of business which spe-
cialises in providing advisory services to finance de-
partments of corporate enterprises.
In addition to sector-specific consultancy ser-
vices, Cirquent also offers customer management,
finance transformation, IT management, SAP con-
sulting and application management services.
Workforce virtually unchanged
The BMW Group’s workforce increased slightly
(+ 0.9 %) during the financial year 2007 to stand at
107,539 employees at 31 December 2007. This
was largely attributable to acquisitions made by the
BMW Group in the financial services sector. Approx-
imately 75 % of the Group workforce is employed in
Germany, where the number of employees edged
up by 232 in 2007.
The employee fluctuation ratio at the BMW
Group has been at a low level for many years in com-
parison with other automobile manufacturers and
with companies operating in other sectors. The BMW
Group continues to recruit employees on a targeted
basis in order to compensate for fluctuation. In addi-
tion to more than 1,200 new apprentices taken on,
a total of 886 permanent jobs were advertised and
filled externally by BMW AG.
High number of apprenticeships
1,214 young people commenced apprenticeships
with the BMW Group at the start of the new training
year. A total of 4,281 apprentices were undergoing
their training with the BMW Group at the end of
2007, 1.8 % fewer than at the end of the previous year.
This small decrease came about despite the steady
number of apprentices recruited and reflects the fact
that some apprentices were able to complete their
vocational training early as a result of their above-
average performance. These vacated positions can-
not be replaced, however, until the next round of re-
cruitment. This is also the reason why the apprentice
ratio in Germany (i.e. the ratio of apprentices to the
total workforce) fell by 0.1 percentage points in 2007
to a level of 4.8 %.
Starter programmes for high school leavers and
university graduates are also in place to complement
the range of opportunities available to those about
BMW Group apprentices at 31 December
5,500
5,000
4,500
4,000
3,500
3,000
2,500
03
4,306
04
4,464
05
4,464
06
4,359
07
4,281