BMW 2008 Annual Report Download - page 8

09 Report of the Supervisory Board
Ladies and Gentlemen,
The Supervisory Board oversaw the running of the BMW Group throughout the financial year  on the
basis of detailed written and oral reports provided by the Board of Management and, in joint discussions,
advised the Board of Management on matters of governance. In a total of five meetings, the Supervisory
Board deliberated at length on the current performance and financial position of the BMW Group, risk
management issues (including the level of risk provisions recorded in the Group Financial Statements by
the Board of Management), short and long-term corporate planning and the composition of the Board
of Management. The Supervisory Board made use of regular reports prepared by the Board of Manage-
ment, followed up by talks and discussions, to keep abreast of business developments as well as the
Group’s performance, including variances from budget. The Supervisory Board additionally reviewed and
discussed a number of pertinent topics in more depth on the basis of reports and planning documents
provided by the Board of Management.
Apart from scheduled meetings, the Board of Management also kept the Supervisory Board informed of
the course of business, with particular regard to key performance indicators, personnel figures and other
significant matters. The Chairman of the Supervisory Board was also kept directly informed by the Chairman
of the Board of Management of all major business transactions and projects. The two chairmen ex-
change information regularly throughout the year.
Main focus of the Supervisory Board’s monitoring and advisory activities Over the past year, the
Supervisory Board paid particular attention to the implementation of the BMW Group’s business strategy
and corporate plan as well as its progress in achieving greater competitiveness by rolling out Efficient
Dynamics across the whole product range. Due to the business repercussions of the financial market crisis,
the Supervisory Board both monitored and provided advice to the Board of Management during the
financial year concerning risk management and risk provision.
In the light of declining vehicle residual values on certain markets, the Supervisory Board was kept fully
informed by the Board of Management both regarding the current situation and the future prospects of
the Financial Services segment. The two Boards held in-depth discussions on possible courses of action
in this area.
Furthermore, at the request of the Supervisory Board and in the course of joint discussions, the Board of
Management presented the strategies and measures adopted to optimise the value-added chain.
The Supervisory Board carefully considered the annual budget for the financial year  together with
the Board of Management, including the matter of forecasting sensitivities in the face of current business
conditions. The Supervisory Board also kept itself well informed regarding the financial management of
the BMW Group, including the measures and concepts put forward by the Board of Management to
enhance profitability. The Supervisory Board expressed its support for the measures being taken by the
Board of Management. In this context, the Supervisory Board stressed the necessity of continuing the
dialogue with employee representatives in a fair and constructive manner. After extensive deliberations
on the long-term corporate plan drawn up on the basis of the strategy Number ONE and presented by the
Board of Management, the Supervisory Board granted its formal approval to the plan.
The Supervisory Board firmly believes that the package of measures known as “Efficient Dynamics” –
de-
signed to reduce emissions and consumption without compromising the vehicle’s agility or vitality – provides