BMW 2009 Annual Report Download

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Annual Report 2009

Table of contents

  • Page 1
    Annual Report 2009

  • Page 2

  • Page 3
    Facts and figures

  • Page 4
    ... of Operations BMW Group - Capital Market Activities in 2009 Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Group Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 5
    ... largest car manufacturers in the world. With our BMW, MINI and Rolls-Royce brands, we possess three of the strongest premium brands in the automobile industry. We also command a strong market position in the motorcycle sector and operate successfully in the field of financial services. The Strategy...

  • Page 6
    04 BMW Group in figures Deliveries of automobiles in thousand units 1,500 1,400 1,300 1,200 1,100 1,000 Revenues in euro billion 55 50 45 40 35 30 05 1,328.0 06 1,374.0 07 1,500.7 08 09 05 46.7 06 49.0 07 56.0 08 53.2 09 1,435.9 1,286.3 50.7 Profit before financial result in euro ...

  • Page 7
    05 BMW Group in figures 2005 Deliveries to customers BMW MINI Rolls-Royce Automobile deliveries total Motorcycles1 Vehicle production BMW MINI Rolls-Royce Automobile production total Motorcycles2 Workforce at end of year 3 BMW Group 2006 2007 2008 2009 Change in % 1,126,768 200,428 796 1,327,...

  • Page 8
    06 Joachim Milberg Chairman of the Supervisory Board

  • Page 9
    ... of that meeting - dedicated to reviewing technical information, exploring the concept of motoring as an experience and exchanging ideas - members of the Board of Management gave presentations on new products and innovative drive concepts developed in conjunction with the Strategy Number ONE. It...

  • Page 10
    ... developments in the Financial Services segment and vehicle residual values in key markets. We were also regularly informed about measures to bring production capacities into line with current demand and about important changes in the area of human resources. The Board of Management also reported...

  • Page 11
    ... non-voting shares of preferred stock, each with a par value of euro 1, at favourable conditions to employees. The Personnel Committee held five meetings during the financial year 2009, focusing in particular on issues relating to the compensation of the Board of Management. Further information is...

  • Page 12
    ... Board extended mandates in two cases. Changes in the composition of the Supervisory Board, Presiding Board and committees 17 members of the Supervisory Board commenced their new term of office at the end of the Annual General Meeting 2009. The ten employee representatives elected at the meeting...

  • Page 13
    ... the financial year 2009 prepared by the Board of Management. The Company Financial Statements are therefore adopted. The Board of Management's profit distribution proposal was reviewed by the Audit Committee and the Supervisory Board. Taking account of the financial condition of the BMW Group and...

  • Page 14
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 15
    ... in 2009, the Board of Management and the Supervisory Board will propose to shareholders at the Annual General Meeting that the unappropriated profit available for distribution at the level of BMW AG, amounting to euro 197 million, be used to pay an unchanged dividend of euro 0.30 for each share of...

  • Page 16
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 17
    ... plummeting by an average of almost two thirds on worldwide markets during the second half of 2008, raw material prices regained more than half of the ground lost between their lowest point in February 2009 and the end of the year. The price of oil almost doubled, rising from US dollar 43 per barrel...

  • Page 18
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 19
    ... historically low level. Interest rate rises were only observed in countries with better economic indicators, such as Australia. Developments on used car markets varied greatly around the world. The situation in North America and in the United Kingdom stabilised in 2009. In Continental Europe, the...

  • Page 20
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 21
    ... affected by both the generally weak state of the economy and, in part, model life-cycle factors. During 2009, 216,944 units of the BMW 1 Series were handed over to customers, a moderate reduction of 3.6 % for the year. Sales of the BMW 3 Series during the year under report fell by 16.3 % to...

  • Page 22
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 23
    ... at an early stage in line with falling demand. In total, 1,258,417 BMW, MINI and Rolls-Royce brand cars came off the production lines in 2009 (- 12.6 %). Deliveries of Rolls-Royce automobiles by model variant in units 2009 2008 Change in % Rolls-Royce Phantom (including Phantom Extended Wheelbase...

  • Page 24
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 25
    ...registered on most markets In total, 60,178 BMW motorcycles were handed over to customers in Europe in 2009, a decrease of 16.3 %. In Germany, currently the largest single market for BMW motorcycles, we were able to maintain market leadership with 15,375 units sold (- 17.2 %). Sales in France (7,014...

  • Page 26
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 27
    ... implemented as part of the process of actively managing credit risk exposures. The interest rate risk is managed using a risk-return approach and measured using value at risk (VaR) techniques. The VaR for the Financial Services segment increased to euro 78.6 million at the end of 2009 compared to...

  • Page 28
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 29
    ...) rate us as an employer. BMW Group Apprentices at 31 December 5,500 5,000 4,500 4,000 3,500 3,000 2,500 05 4,464 06 4,359 07 4,281 08 4,102 09 3,915 BMW Group Employees 31.12. 2009 31.12. 2008 Change in % - 3.7 - 4.1 - 4.8 - 22.8 - 3.8 Automobiles Motorcycles Financial Services Other BMW...

  • Page 30
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 31
    ... Group net profit and the dividend paid on common stock. The recognition of personal commitment is also taken into account by means of appropriate components in the remuneration of employees, managers and Board of Management members. This is taken into account in tariffbased remuneration in the form...

  • Page 32
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 33
    31 Group Management Report Further progress made with sustainability strategy During the first half of 2009 we made further progress in developing our sustainability strategy. The Group's sustainability strategy is directly derived from the Strategy Number ONE and applies across all board divisions...

  • Page 34
    ...Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key Performance Figures 59 Comments on BMW AG Internal Control System Risk Management Outlook of the plant's total energy requirements to be covered by methane gas. Savings in the Spartanburg region will increase from a current...

  • Page 35
    ... in Germany pursuant to VDA agreement of 1990 by 2005 by almost 30 %. 2005 2006 2007 Introduction of Efficient Dynamics measures in numerous BMW and MINI models. 2008 First BMW Group vehicles with hybrid drive. 2010 Use of regenerative hydrogen as fuel in motor traffic. long-term BMW Hydrogen...

  • Page 36
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 37
    ... the value-added chain. In an initial step, approximately 600 fully electrically driven MINI cars were built for a large-scale trial and handed over to both private and business customers in the USA, the UK and Germany. The cars are powered by a 150-kW electric motor fed by highly efficient lithium...

  • Page 38
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 39
    ... the BMW Group's unique expertise in the field of drive train development. Coinciding with its successful launch, the BMW X1 won the "TOPAuto 2010" award of the MID (Motor-InformationsDienst) engine information service. Over 150 motoring journalists from Germany, Austria and Switzerland took part in...

  • Page 40
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 41
    ... became available in selected markets at the end of 2009 and the first delivery of the BMW ActiveHybrid 7 will take place in spring 2010. The low-fuel-consumption BMW 320d Efficient Dynamics Edition was also presented to the public at the IAA and will be available to customers from the beginning of...

  • Page 42
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 43
    ...MINI parts, accessories and services represents an important source of earnings. The accessories line of business was accordingly realigned in 2009. One of the measures taken was to include the marketing of accessories in the process of selling new cars. Selected products designed for special models...

  • Page 44
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 45
    ... Number of shares in 1,000 Shares bought back at the reporting date Stock exchange price in euro1 Year-end closing price High Low Key data per share in euro Dividend Common stock Preferred stock Earnings per share of common stock3 Earnings per share of preferred stock4 Cash flow 5 Equity 1 2 2008...

  • Page 46
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 47
    ... 0.02 per euro 1 par value on non-voting preferred shares and (c) uniform payment of any other dividends on shares on common and preferred stock, provided the shareholders do not resolve otherwise at the Annual General Meeting. The right of shareholders to have their shares evidenced in writing is...

  • Page 48
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 49
    ... shareholder has the right to purchase the shares of the joint ventures from the affected shareholder or to require the affected party to acquire the other shareholder's shares. The BMW Group has not concluded any compensation agreements with members of the Board of Management or with employees...

  • Page 50
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 51
    ...context of defined accounting policies and external financial reporting requirements. We primarily use profit before tax and segment-specific rates of return as the key indicator figures in managing operating performance by reporting period. Capital efficiency is measured within the BMW Group on the...

  • Page 52
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 53
    ...2008 to net financial income of euro 124 million in 2009. Euro 597 million of the improvement relates to the item "Other financial result". The main reasons for this development were higher positive fair values of stand-alone interest-rate derivatives (up in line with changed interest-rate structure...

  • Page 54
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 55
    ... 31.12. 2009 7,767 lower level of investment in leased products and receivables from sales financing, the cash flow statement of the Financial Services segment shows coverage of 115.8 % (2008: shortfall of 39.4 %). After adjustment for the effects of exchange-rate fluctuations and changes in the...

  • Page 56
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 57
    ... assets, the fair value of fund assets is offset against the defined benefit obligation. The decrease was mainly due to the transfer of pension obligations to BMW Trust e. V., Munich, in conjunction with a Contractual Trust Arrangement (CTA). This was only partly offset by the increase in pension...

  • Page 58
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 59
    ... 2009 in euro million Work performed Revenues Financial income and expenses Other income Total output Cost of materials Other expenses* Bought-in costs Gross value added Depreciation and amortisation Net value added Applied to Employees Providers of finance Government / public sector Shareholders...

  • Page 60
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 61
    ... of the financial year 2010. Consumer reluctance to spend in the face of the current financial crisis as well as model life-cycle factors caused a reduction in the number of cars sold by BMW AG. As a consequence, revenues fell by 14.3 % in 2009. Sales to group sales companies accounted for euro...

  • Page 62
    ... 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key Performance Figures 59 Comments on BMW AG Internal Control System Risk Management Outlook 2008 Assets Intangible assets Property, plant and equipment Investments Tangible, intangible and...

  • Page 63
    61 Group Management Report BMW AG Income Statement in euro million 2009 Revenues Cost of sales Gross profit Sales costs Administrative costs Research and development costs Other operating income and expenses Result on investments Financial result Profit from ordinary activities Income taxes Other ...

  • Page 64
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 65
    ... applications used in financial reporting processes throughout the BMW Group are subject to access restrictions. As a result, only authorised persons can gain access on a controlled basis to systems and data, depending on the nature of the work being performed. In addition, IT processes are designed...

  • Page 66
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 67
    ... as tools to manage interest-rate risks. The deposit business operated by the Financial Services segment, credit lines with various banks and the use of other financing instruments ensure that sufficient liquid funds are available to the Group. The finely tuned use of a wide range of capital market...

  • Page 68
    ...52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key Performance Figures 59 Comments on BMW AG Internal Control System Risk Management Outlook duces the average fuel consumption and emissions of the vehicle fleet. In the medium term, the BMW Group...

  • Page 69
    ..., the risk profile has also changed in the important area of financial services. Risks are identified, measured, monitored, evaluated and managed on the basis of recognised standards and regulations that generally apply worldwide in this line of business. A global Risk Committee, which serves as...

  • Page 70
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 71
    ... benefits of our employees are held in pension funds which are kept separate from corporate assets and invested in fixed-income securities (with a high level of creditworthiness), equities, property and other investment classes. In 2009, a further part of the pension obligations arising in Germany...

  • Page 72
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 73
    ... X1 and BMW 5 Series Gran Turismo was completed at the beginning of 2010. These two innovative models open up entirely new segments, a unique market selling point in itself. Customers and trade press alike have been extremely positive about the introduction of both models. The Rolls-Royce Ghost will...

  • Page 74
    ... Review of Operations BMW Group - Capital Market Activities Disclosures pursuant to § 289 (4) and § 315 (4) HGB Financial Analysis 48 Internal Management System 50 Earnings Performance 52 Financial Position 54 Net Assets Position 56 Subsequent Events Report 56 Value Added Statement 58 Key...

  • Page 75
    ... Management Report emerging signs of stability in certain sales markets should benefit our performance. Ongoing productivity improvement measures will also have a positive impact on earnings. We therefore aim to achieve a Group pre-tax profit (EBT) in 2010 that is significantly higher than in 2009...

  • Page 76
    ... costs to cost of sales Statement of Comprehensive Income for Group in euro million Note 2009 Net profit Available-for-sale securities Financial instruments used for hedging purposes Exchange differences on translating foreign operations Actuarial gains / losses relating to defined benefit pension...

  • Page 77
    ... from equity accounted investments Interest and similar income Interest and similar expenses Other financial result Financial result Profit / loss before tax Income taxes Net profit / loss Attributable to minority interest Attributable to shareholders of BMW AG Earnings per share of common stock in...

  • Page 78
    ... products Investments accounted for using the equity method Other investments Receivables from sales financing Financial assets Deferred tax Other assets Non-current assets Inventories Trade receivables Receivables from sales financing Financial assets 74 74 74 76 78 80 81 Group Financial Statements...

  • Page 79
    ... 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 Non-current assets Inventories Trade receivables Receivables from sales financing Financial...

  • Page 80
    ... non-current assets and marketable securities Result from equity accounted investments Changes in working capital Change in inventories Change in trade receivables Change in trade payables Change in current other operating assets and liabilities 74 74 74 76 78 80 81 Group Financial Statements Income...

  • Page 81
    ..., 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 investments Changes in working capital Change in inventories Change in trade...

  • Page 82
    ... of treasury shares Dividends paid Comprehensive income 31 December 2008 Other Changes 31 December 2008 Issue of treasury shares Subscribed share capital increase out of authorised capital 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement of Comprehensive Income Balance...

  • Page 83
    ... item in the income statement. Research and development costs in 2009 totalled euro 2,587 million (2008: euro 2,825 million). In order to support the sale of its products, the BMW Group provides various financial services - mainly loan and lease financing - to retail customers and to dealers. The...

  • Page 84
    ... February 2010. 2 Consolidated companies The BMW Group Financial Statements include, besides BMW AG, all material subsidiaries, six special purpose securities funds and 23 special purpose trusts (almost all used for asset-backed financing transactions). The number of subsidiaries, special purpose...

  • Page 85
    ... taking account of fair value adjustments on acquisition, based on the Group's shareholding. Any difference between the cost of investment and the Group's share of equity is accounted for in accordance with the purchase method. Investments in other companies are accounted for as a general rule using...

  • Page 86
    ... were as follows: Closing rate 31.12. 2009 US Dollar Average rate 2009 1.39 0.89 9.52 130.37 2008 1.47 0.80 10.23 152.29 31.12. 2008 1.40 0.95 9.54 126.74 1.43 0.89 9.78 133.17 British Pound Chinese Renminbi Japanese Yen 6 Accounting principles The financial statements of BMW AG and of its...

  • Page 87
    ... as financial liabilities. Where Group products are recognised by BMW Group leasing companies as leased assets under operating leases, they are measured at manufacturing cost. All other leased products are measured at acquisition cost. All leased products are depreciated using the straight-line...

  • Page 88
    ... or amortised cost. Investments accounted for using the equity method are measured at the Group's share of equity taking account of fair value adjustments on acquisition unless the investment is impaired. Investments in non-consolidated group subsidiaries reported in other investments are measured...

  • Page 89
    ... 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 currency, interest rate, fair value and market price risks from operating activities and related financing...

  • Page 90
    ...amortised cost. The BMW Group has no liabilities which are held for trading. Liabilities from finance leases are stated at the present value of the future 7 New financial reporting rules (a) Financial reporting rules applied for the first time in the financial year 2009 The following Standards and...

  • Page 91
    ...BMW Group in the financial year 2009: Standard / Interpretation Date of issue by IASB Date of mandatory application 1. 1. 2010 1. 1. 2010 Endorsed by EU at 31. 12. 2009 No No Expected impact on on BMW Group IFRS 1 IFRS 2 Additional Exceptions for First-time Adopters Share-based Payment: Accounting...

  • Page 92
    ... of the change in presentation of research and development costs Cost of sales include euro 14,281 million (2008: euro 13,997 million) relating to financial services business. Manufacturing costs do not contain any impairment losses on intangible assets and property, plant and equipment (2008: euro...

  • Page 93
    ... 52 274 1,187 241 Other operating income includes public-sector grants of euro 14 million (2008: euro 32 million). 12 Result from equity accounted investments The profit from equity accounted investments of euro 36 million (2008: euro 26 million) includes the Group's share of the results of the...

  • Page 94
    ...in particular gains on stand-alone interest rate derivatives (the fair values of 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement of Comprehensive Income Balance Sheets Cash Flow Statements Group Statement of Changes in Equity Notes 81 Accounting Principles and Policies 90...

  • Page 95
    93 Group Financial Statements Deferred tax assets in euro million Intangible assets Property, plant and equipment Leased products Investments Other current assets Tax loss carryforwards Provisions Liabilities Consolidations 2009 1 38 443 5 2,175 1,838 1,388 3,316 1,564 10,768 Valuation allowance ...

  • Page 96
    ..., as it is intended to invest these profits to maintain and expand the business volume of the relevant companies. A computation was not made of the potential impact of income taxes on the grounds of disproportionate expense. The tax returns of BMW Group entities are checked regularly by German and...

  • Page 97
    95 Group Financial Statements 16 Earnings per share 2009 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 Earnings ...

  • Page 98
    96 For information regarding the number of employees at the year-end, reference is made to page 27 et seq. in the Group Management Report. The fee expense recognised in the financial year 2009 for the auditors of the Group Financial Statements, KPMG AG in euro million Audit-related services Tax ...

  • Page 99
    ...Before tax Available-for-sale securities Financial instruments used for hedging purposes Exchange differences on translating foreign operations Actuarial gains / losses relating to defined benefit pension and similar plans Other comprehensive income 4 295 318 -1,198 - 581 2009 Deferred taxes -1 -131...

  • Page 100
    ... office equipment Advance payments made and construction in progress Property, plant and equipment Leased products Investments accounted for using the equity method 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement of Comprehensive Income Balance Sheets Cash Flow Statements...

  • Page 101
    ..., factory and office equipment Advance payments made and construction in progress Property, plant and equipment Leased products Investments accounted for using the equity method Investments in non-consolidated subsidiaries Participations Non-current marketable securities Other investments 2,745 16...

  • Page 102
    ... of changes in Group tangible, intangible and investment assets on page 98 et seq. Property, plant and equipment include a total of euro 57 million (2008: euro 68 million) relating to operational buildings used by BMW AG as well as leased plant, machinery and other facilities, factory and office...

  • Page 103
    ... have, in part, extension and 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 page 98 et seq. 23 Investments accounted for using the equity method and other...

  • Page 104
    ... -1,356 40,594 31. 12. 2008 39,116 -1,053 38,063 Allowances for impairment on receivables from sales financing developed as following during the year under report: 2009 in euro million Balance at 1 January Allocated / reversed Utilised Exchange rate impact and other changes Balance at 31 December...

  • Page 105
    ...expiry in 2009 of currency derivatives with positive fair values. The increase in marketable securities and investment funds resulted from investments made in conjunction with liquidity management. Investment funds are held to secure obligations relating to pre-retirement part-time work arrangements...

  • Page 106
    ... receivables relating to credit card business developed as following during the year under report: 2009 in euro million Balance at 1 January Allocated / reversed Utilised Exchange rate impact and other changes Balance at 31 December Allowance for impairment recognised on a specific item basis group...

  • Page 107
    ... term of more than one year. Receivables from other companies in which an investment is held are all due within one year. Prepayments of euro 898 million (2008: euro 848 million) relate mainly to prepaid interest, development costs not eligible for capitalisation as non-current assets, insurance...

  • Page 108
    ... carrying amount 31.12. 2009 1,942 - 85 1,857 31. 12. 2008 2,373 - 68 2,305 Allowances on trade receivables developed as following during the year under report: 2009 in euro million Balance at 1 January* Allocated / reversed Utilised Exchange rate impact and other changes Balance at 31 December...

  • Page 109
    ... 2 (Share-Based Payments) to the employee share scheme is not material for the Group. At the Annual General Meeting of BMW AG on 14 May 2009, the shareholders again authorised the Board of Management to acquire treasury shares via the stock exchange, up to a maximum of 10 % of the share capital in...

  • Page 110
    ...and makes adjustments to it in the light of changes in economic conditions and the risk profile of the underlying assets. In order to manage its capital structure, the BMW Group uses various instruments including the amount of dividends paid to shareholders and share buy-backs. The BMW Group manages...

  • Page 111
    ...past employees. Defined benefit plans may be funded or unfunded, the latter sometimes covered by accounting provisions. Most of the pension commitments of the BMW Group in Germany relate to BMW AG. In 2009 BMW AG transferred a further portion of its pension obligations to BMW Trust e. V., Munich, in...

  • Page 112
    ... assets. Past service cost arises where a BMW Group company introduces a defined benefit plan or changes the benefits payable under an existing plan. Based on the measurement principles contained in IAS 19, the following funding status applies to the Group's pension plans: United Kingdom 2009 2008...

  • Page 113
    ... Past service cost Expected return on plan assets (-) Expense from pension obligations 2009 103 228 - - 94 237 2008 117 209 -1 - 32 293 The expense from reversing the discounting of pension obligations and the income from the expected return on plan assets are reported as part of the financial...

  • Page 114
    ...). Germany in % Expected rate of return on plan assets 2009 6.12 2008 5.43 United Kingdom 2009 6.03 2008 5.93 2009 6.55 Other 2008 6.99 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement of Comprehensive Income Balance Sheets Cash Flow Statements Group Statement of Changes...

  • Page 115
    ... Other investment classes, such as stocks and shares, serve to generate higher rates of return. This is necessary to cover risks (such as changes in morbidity tables) not taken into account in the actuarial assumptions applied. in euro million Defined benefit obligation Fair value of plan assets Net...

  • Page 116
    ... personnel and social expenses comprise mainly performance-related remuneration components, pre-retirement part-time working arrangements and employee long-service awards. Provisions for obligations for on-going operational expenses comprise primarily warranty obligations. in euro million 1.1. 20091...

  • Page 117
    ... 60 million were reversed (2008: euro 141 million). 35 Financial liabilities Financial liabilities include all liabilities of the BMW Group at the relevant balance sheet dates relating to financing activities. Financial liabilities comprise the following: 31 December 2009 in euro million Maturity...

  • Page 118
    ... fixed fixed fixed fixed fixed fixed BMW (UK) Capital plc, Bracknell 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement of Comprehensive Income Balance Sheets Cash Flow Statements Group Statement of Changes in Equity Notes 81 Accounting Principles and Policies 90 Notes to...

  • Page 119
    ... average nominal interest rate (in %) 0.7 0.7 0.7 1.7 0.4 BMW AG, Munich BMW Finance N. V., The Hague BMW Malta Finance Ltd., St. Julians BMW (UK) Capital plc, Bracknell BMW US Capital, LLC, Wilmington, Del. 36 Other liabilities Other liabilities comprise the following items: 31 December 2009...

  • Page 120
    ... to service and repair work to be provided under commitments given at the time of the sale of a vehicle (multicomponent arrangements). Grants comprise primarily public funds to promote regional structures; this has been 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement of...

  • Page 121
    ... years Other financial obligations primarily under lease contracts for buildings, plant and machinery, tools, office and other facilities. The leases run for periods of one to 93 years and in some cases contain extension and / or purchase options. In 2009 an amount of euro 199 million (2008: euro...

  • Page 122
    ...amount Fair value Carrying amount Assets Other investments Receivables from sales financing Financial assets Derivative instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other financial assets Cash and cash equivalents 74 74 74 76 78 80 81 Group...

  • Page 123
    ...Fair value hedges Carrying amount* Assets Fair value Carrying amount 232 - - 1,648 - - 734 - - 619 - - 1,080 Other investments Receivables from sales financing Financial assets Derivative instruments Marketable securities and investment funds Loans to third parties Credit...

  • Page 124
    ... Fair value Carrying amount Fair value Carrying amount Assets Other investments Receivables from sales financing Financial assets Derivative instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other financial assets Cash and cash equivalents Trade...

  • Page 125
    ...* Fair value hedges Carrying amount* Assets Fair value Carrying amount 322 - - 653 - - 836 - - 817 - - 1,796 Other investments Receivables from sales financing Financial assets Derivative instruments Marketable securities and investment funds Loans to third parties Credit...

  • Page 126
    ...taken from interest rate structure curves were adjusted, where necessary, to take account of the credit quality and risk of the underlying financial instrument. Derivative financial instruments are measured at their fair value. The fair values of derivative financial instruments are determined using...

  • Page 127
    ... 2009 2008 Gains/losses from the use of derivatives relate primarily to fair value gains or losses arising on stand-alone derivatives. Write-downs of euro 3 million (2008: euro 123 million) on available-for-sale securities, for which fair value changes were previously recognised directly in equity...

  • Page 128
    ... be part of a fair value hedge relationship: 31. 12. 2008 386 - 405 -19 31.12. 2009 - 398 446 48 Gains / losses on hedging instruments designated as part of a fair value hedge relationship Gains / loss from hedged items 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement...

  • Page 129
    ... for the Group's financing requirements within the framework of the target debt ratio. Despite rating downgrades in 2009 due to the financial market and economic crisis and the resulting adverse impact on the automotive sector, the long-term ratings published by Standard & Poor's (S & P) and...

  • Page 130
    ... reporting procedures and control mechanisms used for financial instruments are set out in internal guidelines. This includes, above all, a clear separation of duties between trading and processing. Currency and interest rate risks are managed at a corporate level. Further disclosures relating...

  • Page 131
    ... rate risk The BMW Group's financial management system involves the use of standard financial instruments such as shortterm 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...

  • Page 132
    ... includes close relatives and intermediaries. Significant influence over the financial and operating policies of the BMW Group can arise when a party holds 20 % or more of the shares of BMW AG or is a member of the Board of Management or Supervisory Board of BMW AG. For the financial year 2009, the...

  • Page 133
    ... available to shareholders on the BMW Group website at www.bmwgroup.com/ir. 43 Shareholdings of members of the Board of Management and Supervisory Board The members of the Supervisory Board of BMW AG hold in total 27.68 % of the issued common and preferred stock shares, of which 16.11 % relates to...

  • Page 134
    ... for the financial year 2009 amounted to euro 1.6 million and, as in the previous year comprises only fixed components. The compensation systems for members of the Board of Management and the Supervisory Board do not include any stock options, value appreciation rights comparable to stock options or...

  • Page 135
    ... import companies. Rolls-Royce brand vehicles are sold in the USA via a subsidiary company and elsewhere by independent, authorised dealers. The BMW Motorcycles segment develops, manufactures, assembles and sells BMW brand motorcycles as well as spare parts and accessories. The Financial Services...

  • Page 136
    ...-current assets * Motorcycles 2009 1,059 10 1,069 19 52 73 2008 1,222 8 1,230 60 55 70* 2009 35,613 8,124 43,737 - 265 3,606 3,509 2008 37,877 10,905 48,782 690 4,467 3,567 including impairment losses of euro 3 million 74 74 74 76 78 80 81 Group Financial Statements Income Statements Statement...

  • Page 137
    ... 413 12,117 7,289 Group 2008 53,197 - 53,197 351 16,580 7,645 External revenues Inter-segment revenues Total revenues Segment result Capital expenditure on non-current assets Depreciation and amortisation on non-current assets Financial Services 31.12. 2009 4,268 31. 12. 2008 3,752 Other Entities...

  • Page 138
    ... December 2009 included investments accounted for using the equity method amounting to euro 23 million (2008: euro 29 million). The information disclosed for capital expenditure and depreciation and amortisation relates to property, plant and equipment, intangible assets and leased products. Segment...

  • Page 139
    137 Group Financial Statements In the case of information by geographical region, external sales are based on the location of the customer's registered office. Revenues with major customers were not material overall. The information disclosed for non-current Information by region assets relates to...

  • Page 140
    ...the best of our knowledge, and in accordance with the applicable reporting principles, the Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and profit of the Group, and the Group Management Report includes a fair review of the development and...

  • Page 141
    ... of operations of the Group. 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, 26 February 2010 KPMG AG Wirtschaftspr...

  • Page 142
    ... section 3.10 GCGC. The statement is part of the Group Management Report. Information on the Company's Governing Constitution The designation "BMW Group" comprises Bayerische Motoren Werke Aktiengesellschaft (BMW AG) and its Group entities. BMW AG is a stock corporation (Aktiengesellschaft) based on...

  • Page 143
    ... the adoption of resolutions relating to the Board of Management remuneration system and for the regular review of the remuneration system in accordance with the new legal situation. 2. BMW AG will in future comply with all of the recommendations published on 5 August 2009 in the electronic Federal...

  • Page 144
    ...on Work Procedures of the Management Board and Supervisory Board Compensation Report Information on Corporate Governance Practices Compliance in the BMW Group Ulrich Eckelmann* (until 14. 05. 2009) Head of the Industry, Technology and Environment section IG Metall Executive Board Mandates VOITH AG...

  • Page 145
    143 Statement on Corporate Governance Franz Haniel Engineer, MBA Mandates DELTON AG (Deputy Chairman) Franz Haniel & Cie. GmbH (Chairman) Heraeus Holding GmbH Metro AG (Chairman) secunet Security Networks AG Giesecke & Devrient GmbH Prof. Dr. rer. pol. Renate Köcher Director of Institut für ...

  • Page 146
    ... * Head of Development for the "Small Classes" Product Line Maria Schmidt * Member of the Works Council, Dingolfing Werner Zierer * Chairman of the Works Council, Regensburg 140 Statement on Corporate Governance (Sub-section of Management Report) Information on the Company's Governing Constitution...

  • Page 147
    ..., Industrial Relations Director Mandates Dr.-Ing. Herbert Diess Purchasing and Supplier Network BMW Brilliance Automotive Ltd. (until 31. 01. 2009) Dr.-Ing. Klaus Draeger Development Ian Robertson Sales and Marketing Mandates Rolls-Royce Motor Cars Limited (Chairman) General Counsel: Dr...

  • Page 148
    ... general meetings, the Board of Management defines the overall framework for business strategies and the use of resources, takes decisions regarding the implementation of strategies and deals with issues of particular importance to the BMW Group which are not directly related to a specific product...

  • Page 149
    ... at Product Board meetings. The Operations Committee comprises the members of the Board of Management responsible for Development (Dr.-Ing. Klaus Draeger, who also chairs the meetings), Purchasing and Supplier Network (Dr.-Ing. Herbert Diess), Production (Frank-Peter Arndt), and Sales and Marketing...

  • Page 150
    ...case in 2009. One meeting each year is planned to cover a number of days and is used, among other things, to enable an in-depth exchange on strategic and technological matters. In line with the suggestion contained in the German Corporate Governance Code, the shareholder representatives and employee...

  • Page 151
    ... work at each plenum meeting. The composition of the Presiding Board and the committees is based on legal requirements, BMW AG's Articles of Incorporation, terms of reference and corporate governance principles. The expertise and technical skills of its members are also taken into account. According...

  • Page 152
    ... and of the Supervisory Board pursuant to § 161 AktG Members of the Supervisory Board Members of the Board of Management Information on Work Procedures of the Management Board and Supervisory Board Compensation Report Information on Corporate Governance Practices Compliance in the BMW Group

  • Page 153
    ...) in 2009 and fully supports the objective set out therein to bring about compensation structures that promote sustainable and long-term oriented business performance. The compensation model used for the management boards should be attractive in the context of the competitive environment for highly...

  • Page 154
    ... remuneration elements comprise mainly the use of company cars as well as the payment of insurance premiums, contributions towards security systems and an annual medical check-up. The salaries of members of the Board of Management were raised with effect from 1 January 2009 after regular monitoring...

  • Page 155
    ... in vertical terms, by comparing board compensation with the salaries of senior management (below board level) and with average salaries of employees. In the event of the termination of mandate, current members of the Board of Management are entitled to receive certain defined benefits. Pensions are...

  • Page 156
    ... a change of control or a takeover offer. No members of the Board of Management received any payments or benefits from third parties in 2009 on account of their activities as the members of the Board of Management of BMW AG. Compensation of the Board of Management for the financial year 2009 (total...

  • Page 157
    ... General Meeting. The compensation regulation valid for the financial year 2009 is the result of the shareholders' resolutions taken at the Annual General Meeting on 8 May 2008 and § 15 of the Articles of Incorporation of BMW AG. The Articles of Incorporation of BMW AG can be viewed / downloaded...

  • Page 158
    ...and of the Supervisory Board pursuant to § 161 AktG Members of the Supervisory Board Members of the Board of Management Information on Work Procedures of the Management Board and Supervisory Board Compensation Report Information on Corporate Governance Practices Compliance in the BMW Group 165,000...

  • Page 159
    ... ("Directors' Dealings") Members of the Board of Management and the Supervisory Board and related persons of those members, are required, pursuant to § 15 a of the German Securities Trading Act (WpHG), to give notice of any of their transactions with BMW stock or related financial instruments...

  • Page 160
    ... value-added chain. That is why the BMW Group not only makes high demands of itself but also expects its suppliers and partners to meet the ecological and social standards it sets. The relevant sustainability criteria therefore play an integral part in all aspects of purchasing terms and conditions...

  • Page 161
    ...on their own initiative, check compliance with the law Compliance Committee BMW AG Board of Management Annual Status Report Compliance Committee Identification and monitoring Code of conduct Reporting Communication Compliance Committee Office Compliance contact Training Implementation with...

  • Page 162
    ... the BMW Group's intranet where employees can find compliance-related information and also have access to training materials in both German and English. Employees can use the website to access frequently asked questions (and answers) on compliancerelated issues. A special service area was added to...

  • Page 163
    161 Statement on Corporate Governance of the enterprise who have access to insider information in accordance with existing rules have been, and continue to be, included in a corresponding, regularly updated list and informed of the duties arising from insider rules. The full text of the BMW Group's...

  • Page 164
    ... with BMW AG 4 profit and loss transfer agreement with a subsidiary of BMW AG 5 below euro 500,000 162 162 164 166 168 170 172 173 174 Other Information BMW AG Principal Subsidiaries BMW Group Ten-year Comparison BMW Group Locations Glossary Index Index of graphs Financial Calendar Contacts

  • Page 165
    163 Other Information Principal subsidiaries of BMW AG at 31 December 2009 Foreign2 BMW Ã-sterreich Holding GmbH, Steyr BMW Motoren GmbH, Steyr BMW China Automotive Trading Ltd., Beijing BMW Russland Trading OOO, Moscow BMW Austria Gesellschaft m. b. H., Salzburg BMW Holding B. V., The Hague BMW ...

  • Page 166
    ... 2009 Deliveries to customers Automobiles3 Motorcycles4 Production Automobiles3 Motorcycles5 Financial Services Contract portfolio Business volume (based on balance sheet carrying amounts)6 Income Statement Revenues Gross profit margin Group 7 Profit before financial result Profit before tax Return...

  • Page 167
    ...242 8.4 1,376 42.4 1,866 37,226 22.8 2,065 2,032 5.5 823 40.5 1,209 Revenues Gross profit margin Group 7 Profit before financial result Profit before tax Return on sales (earnings before tax / revenues) Income taxes Effective tax rate Net profit for the year Balance Sheet 47,556 27,010 16,973 22...

  • Page 168
    ...The BMW Group is present in the world markets with 24 production and assembly plants, 43 sales subsidiaries and a research and development network. -H -R Headquarters Research and Development BMW Group Research and Innovation Centre (FIZ), Munich BMW Group Forschung und Technik, Munich BMW Car IT...

  • Page 169
    ... of Rolls-Royce Motor Cars Limited) Hams Hall plant, GB Landshut plant Leipzig plant Munich plant Oxford plant, GB Regensburg plant Rosslyn plant, South Africa BMW Brilliance Automotive Ltd., Shenyang, China (joint venture with Brilliance China Automotive Holdings) Spartanburg plant, USA Steyr plant...

  • Page 170
    ... International Accounting Standards (IASs), which are still valid. ISO 14001 An internationally recognised standard for environmental management systems. Common stock Stock with voting rights (cf. preferred stock). Cost of materials Comprises all expenditure to purchase raw materials and supplies...

  • Page 171
    ... on the global capital markets. Ratings are published by independent rating agencies, e. g. Standard & Poor's or Moody's, based on their analysis of a company. Return on sales Pre-tax: Profit before tax as a percentage of revenues. Post-tax: Profit as a percentage of revenues. Risk management An...

  • Page 172
    ... other investments 51, 86, 101 K Key data per share 43 162 162 164 166 168 170 172 173 174 Other Information BMW AG Principal Subsidiaries BMW Group Ten-year Comparison BMW Group Locations Glossary Index Index of graphs Financial Calendar Contacts L Lease business 12, 25, 54, 65 Leased products...

  • Page 173
    ... 130 Remuneration System 28 - 30, 141 Report of the Supervisory Board 06 - 11 Research 25, 36 - 37, 40, 50 - 51, 58, 61, 75, 81, 84, 90, 155, 165 - 166 Research and development costs 50 - 51, 58, 61, 75, 81, 90, 165 Result from equity accounted investments 50, 75, 79, 91 Return on sales 29, 50...

  • Page 174
    ... retail customer financing of BMW Group Financial Services 2009 26 Regional mix of BMW Group purchase volumes 2009 38 Change in cash and cash equivalents 53 Balance sheet structure - Automobiles segment Balance sheet structure Group 55 BMW Group Value added 2009 57 Stock Development of BMW stock...

  • Page 175
    ... Other Information Financial Calendar Annual Accounts Press Conference Financial Analysts' Meeting Quarterly Report to 31 March 2010 Annual General Meeting Quarterly Report to 30 June 2010 Quarterly Report to 30 September 2010 Annual Report 2010 Annual Accounts Press Conference Financial Analysts...

  • Page 176
    ... the various BMW Group brands is available at www.bmw.com, www.mini.com and www.rolls-roycemotorcars.com. 162 162 164 166 168 170 172 173 174 Other Information BMW AG Principal Subsidiaries BMW Group Ten-year Comparison BMW Group Locations Glossary Index Index of graphs Financial Calendar Contacts

  • Page 177
    ... ONE Growth Profitability Future Developing a growth market. Hakan Kaya and his family find the BMW ActiveHybrid X6 appealing. Creating individual mobility of the future. Customers Winning new customers through technological leadership. Preparing for the future by thinking ahead. Connecting...

  • Page 178
    ... experience the freedom of individual mobility. We offer premium solutions for personal transportation. Our strong brands and outstanding products inspire and impress our customers around the world. We have a clear strategy which we implement consistently. That is what makes the BMW Group different...

  • Page 179
    - Contents - Preface Norbert Reithofer 04 Topic one Future project i Topic two Growth 09 25 37 51 59 60 69 India Topic three Customers Efficient Dynamics Topic four Profitability Efficient capital Highlights 2009 Moments of sheer delight IAA 2009

  • Page 180
    04 Norbert Reithofer Chairman of the Board of Management

  • Page 181
    ... Group achieved positive group earnings for the 2009 financial year, despite the global economic crisis. The company remains the automobile industry's leading premium manufacturer. More than 1.28 million customers purchased a BMW, MINI or Rolls-Royce last year, and over 87,000 customers bought a BMW...

  • Page 182
    ... BMW 5 Series is one of the best cars we have ever built. Currently, the vehicle with the best fuel economy and lowest emissions in the BMW model range is the 320d Efficient Dynamics Edition. Customers will be able to experience its sheer driving pleasure with a fuel consumption of just 4.1 litres...

  • Page 183
    ... Preface Efficient Dynamics still has to offer at the 2009 IAA International Motor Show within our BMW Vision EfficientDynamics. This concept car rightly attracted a great deal of attention - not just for its futuristic design, but also for its innovative drivetrain, comprising a 3-cylinder turbo...

  • Page 184
    ... partnerships with the best partners for the task at hand. What is more, increased use of shared modules between models and brands will enable us to further reduce costs throughout the entire process chain, but still maintain our high quality. New directions with Strategy Number ONE Our industry...

  • Page 185
    project i Future Growth Customers Profitability Inventing the future - by putting it to the test.

  • Page 186
    MINI E field trial The drivers Roughly 600 MINI customers in three countries The cities New York, Los Angeles, London, Berlin, Munich The car MINI E with a 150 kW electric motor and lithium-ion battery The aim To test e-mobility in everyday situations Montclair, New Jersey Malibu, California ...

  • Page 187
    ... The future starts now They are highly efficient, quiet and, when run on energy from renewable sources, unbeatably fuel-efficient and low in emissions. Electric motors will undoubtedly play an important part in the future of the automobile. But what does the e-mobility experience feel like today...

  • Page 188
    Sandra Kulli MINI E driver MINI E No. 246 Malibu, California

  • Page 189
    15 Topic one project i How has your experience been? What was your best experience with your MINI E so far? And your worst experience? What made you decide to take part in the MINI E experiment? 5 What do you hope to see from the next generation of electric vehicles?

  • Page 190
    ..., Malibu Since she got the keys to her MINI E in June 2009, Sandra Kulli has been driving her electric car in and around Los Angeles on a daily basis. The 62-yearold real estate marketing strategist lives in Malibu, off Pacific Coast Highway, and spends her free time skiing, hiking and gardening...

  • Page 191
    Abbott Kinney Avenue, Santa Monica 3 4

  • Page 192
    Tom Moloughney MINI E driver MINI E No. 250 Montclair, New Jersey

  • Page 193
    ...i Is the MINI E your only car, or do you drive any other vehicles? How has your experience been? What is the main difference to driving a conventional car? Is the MINI E more of a fun car for you or just an A-to-B car? 10 You have even started blogging about your MINI E experience. Why is that?

  • Page 194
    17 East Fox Chase Road, Chester Tom Moloughney, 42, runs an Italian restaurant in Montclair, New Jersey. MINI E driver No. 250 blogs about his experiences with e-mobility.

  • Page 195
    Valley Road, Montclair 6 7 8 9 Since Tom Moloughney has had his MINI E, his sports car usually stays parked in the garage [6]. That is also where he charges the battery [7 - 8] for trips to Jersey City [9 -10] or to his restaurant in Montclair, New Jersey.

  • Page 196
    Hudson Ledwon MINI E driver MINI E No. 15 Berlin

  • Page 197
    ... spaces reserved exclusively f or electric cars right in f ront of Berlin Centr al Station . That is pretty cool. How has your experience been? 15 So what is your verdict after six months driving the MINI E? I love it ! I used the car every d ay and ended up driving about 5 , 000 ki lometres...

  • Page 198
    21 Heynstraße, Berlin 13 11 12 There is no quieter or emission-friendlier way to drive a car in a city like Berlin [13 - 15] than to drive the MINI E. It is easy for Hudson Ledwon to "fill up" on the go using a charger cable at one of many public charging stations [11 - 12].

  • Page 199
    22 Puschkinallee, Berlin 14 Just a few days ago, Hudson Ledwon, 45, returned his MINI E at the end of its field trial. From now on, the IT consultant from Berlin will be back on the road in more traditional style - on his motorbike and bicycle and driving his sports car.

  • Page 200
    .... This concept vehicle, developed on the basis of the BMW 1 Series Coupé, will be powered by a new, specially designed synchronous electric motor. In 2011, a trial fleet of these vehicles will make their debut on the roads. Their purpose will be to provide additional feedback from customers and...

  • Page 201
    India Future Growth Customers Profitability Opening markets by winning people's hearts.

  • Page 202
    Over the past three years the BMW Group has begun growing its market share in India.Today it is already the market leader in India's steadily growing premium segment. And there are plenty of signs that this is just the beginning. New Delhi December 8, 2009 Chennai plant December 10, 2009

  • Page 203
    ... climate zones; 21 official languages; 1.2 billion people. A place where agriculture is still the main source of employment and the average yearly income only 708 euros. The speed limit on its highways is, in theory, 90 kilometres an hour - but the real pace is dictated by the rhythm of ox carts and...

  • Page 204
    ...rising incomes, changes in customer preferences and a desire for upward mobility." In other words, India is a prime example of an emerging market. It has become a remarkable success story for the BMW Group. To understand how, it is important to talk to the people who are involved with the company in...

  • Page 205
    .... Time is a precious commodity for the 39-year-old textile businessman. He just built another new factory for 250 sewing workers on the outskirts of the Indian capital. In his office in the heart of New Delhi he is working with designers on ideas for his brand-new fashion label. As chairman of the...

  • Page 206
    ...fashion designs for trend setting global labels, regularly flies to the US for meetings and likes to spend his holidays in Southern Europe. For him it is perfectly normal to think globally and demand the best when it comes to his own personal mobility - so a BMW 525i from the new BMW assembly plant...

  • Page 207
    ... drives his BMW himself. But whenever he does, he certainly enjoys the experience. "To me," says Chawla, "a BMW isn't a luxury. It's part of my work. It's my way of rewarding myself." What he considers a luxury is coming home early and playing with his son before bedtime. Or flying over to Europe...

  • Page 208
    ... line - now it takes just 30 minutes. And that new metro line out there? That will actually be finished in time for the 2010 Commonwealth Games!" Delhi-born Kapur was raised in Dubai and went to college in the US. 6 6 BMW customers and sales consultant: the excitement of buying a new car 7 BMW...

  • Page 209
    ... of the 16 BMW dealerships in India Kapur offers his customers a fully equipped service garage - with the company's head office in Munich on standby, a roundthe-clock emergency service, a private breakdown service and expert mechanics, who are sent to the Chennai plant's training centre for regular...

  • Page 210
    ... up until 2009. In actual fact, over 50 percent more were sold last year. 33 % 9% BMW market share of the Indian premium segment (per year) 06 07 39 % 08 41 % 09 10 9 9 Dr. Dhimant Desai ensures BMW quality standards at the Chennai plant. 10 More than 120 highly qualified employees implement...

  • Page 211
    ... cool in "Mahindra World City". At this campus-like business park south of Chennai, 123 BMW employees assembled about 2,600 vehicles last year. To meet specific demand from the Indian retail network, parts are ordered in Germany, packed into containers at the plant in Wackersdorf and transported...

  • Page 212
    ... production of the BMW 3 Series and the new 5 Series, the X1 will ramp up in Chennai over the coming months. And as BMW dealers open up showrooms and service garages in ten more cities across the country, a separate investment of 50 million US dollars will substantially expand BMW Financial Services...

  • Page 213
    Efficient Dynamics Future Growth Customers Profitability Winning new customers by asking new questions.

  • Page 214
    ... than the BMW Group. Our engineers are already working on the next Efficient Dynamics technologies - on the future of efficient, high-performance mobility. Aerolab Drive strategy Energy management Design Vehicle architecture Lightweight construction technology Heat management Systems development

  • Page 215
    ... earned through Efficient Dynamics technologies - which already enable enhanced performance and lower emissions in more than 1.8 million BMW and MINI vehicles on the road today. This development strategy still holds tremendous potential, as illustrated by the BMW Vision EfficientDynamics concept car...

  • Page 216

  • Page 217

  • Page 218
    42

  • Page 219
    ... three Efficient Dynamics 1 1 Every detail of the BMW Vision EfficientDynamics was optimised. 2 Its design combines lightweight construction throughout with aerodynamic qualities. 2 If efficiency and dynamic performance were seen as an incentive instead of a contradiction, what would it mean...

  • Page 220
    ... in the BMW Vision EfficientDynamics - and will soon be a standard feature in many of our vehicles. How do you design vehicles that are radically different? Johannes Liebl, head of Efficient Dynamics Our development departments are home to a great many experts who are undoubtedly among the best in...

  • Page 221
    45 Topic three Efficient Dynamics 3 4 3 As BMW "energy minister", Johannes Liebl coordinates Efficient Dynamics research. 4 Holger Winkelmann (left) knows how to build with air. 5 Test bench at the new Aerodynamics Testing Centre 6 Flow optimisation for the Vision EfficientDynamics 5 6

  • Page 222
    ... to be realised at the lowest possible weight? Questions like these accompany us throughout the entire development process. They are uncomfortable, difficult questions with no easy answers. But they help us develop vehicles that offer considerably more comfort and safety for relatively few extra...

  • Page 223
    .... For instance, for the BMW Vision EfficientDynamics concept car design engineers, developers and designers worked in a development process that is at least as efficient and dynamic as the end product. Within a very short period of time this process produced a high-end vehicle in which every detail...

  • Page 224
    ... a third of the energy from fuel is currently used - so what could you do with the other two thirds? How dynamic can an electric drive potentially be? 11 12 13 14 Avoiding energy loss: thermoelectric generator in the exhaust gas system Prototype in test operation: technology test in a workshop...

  • Page 225
    ... driving style. We group technology issues such as these under the term forward-looking energy management because they help the vehicle and its driver to drive defensively and thereby save fuel. They are also referred to as forward-looking because we see a promising future in these developments...

  • Page 226
    ... hand, this example of cutting-edge technology is simply the logical continuation of our BMW Efficient Dynamics development strategy. Some of the technologies used in the BMW Vision EfficientDynamics are already being implemented in current BMW models; others will soon be ready for series production...

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    Efficient capital Future Growth Customers Profitability We increase capital by thinking outside the box.

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    ... maintain its autonomy in order to act decisively in a crisis.Through active crisis management, efficiency increases and consistent management of capital and costs, the BMW Group did just that during the recession in 2009. At the same time, it also laid the best foundation for a sustainable upturn.

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    ... Eichiner, 54, joined the BMW Group in 1987. After holding a series of executive positions in logistics, sales development and corporate planning, he was appointed to the Board of Management, where he was initially responsible for Corporate and Brand Development. In December 2008 - in the midst of...

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    ... our own financing companies in Singapore, New York and in Europe, where we are represented on the global capital markets round-the-clock, five days a week. This is one of the reasons we were able to fund our financial services business on attractive terms. During the crisis not only was access to...

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    ... four Efficient capital Then why don't you just leave financing the leasing business to others? Mr. Eichiner Because the sales financing business is an essential component in our value chain. Nowadays every other new car sold by the BMW Group is financed by us. That is a fact. But it also means...

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    ... is profitable and is financed from its own resources. Our funding requirements originate solely from our financial services business. That gives the BMW Group an entirely different risk profile than companies who are incurring operating losses and need to fund these losses through borrowed capital...

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    ... Eichiner Does that mean no area of the company will be spared? Mr. Eichiner No, we aren't using short-term cuts across the board to make those economies, but long-term strategies. We have not cancelled a single innovation programme: We are not sacrificing the future to save costs. Instead what we...

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    ... new, highly efficient and dynamic models, like the BMW X1, the 5 Series GT and the new BMW 5 Series, we will pick up speed as the recovery progresses. I am certain that the BMW Group will emerge from this crisis as one of the winners. Our profitability target for 2012 of a return on sales of eight...

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    Highlights 2009 Our highlights fuel fascination.

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    ...20, 2010 BMW 5 Series Gran Turismo Douglas Lempereur on Feb. 12, 2010 Rolls-Royce Ghost Kai Berghäuser on Feb. 3, 2010 MINI Convertible Bettina Kroiß on Jan. 22, 2010 BMW S 1000 RR Claudia Engelmann on Dec. 14, 2009 BMW IAA 2009 The IAA International Motor Show in Frankfurt is the world's leading...

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    ... 2009 "My motto is: 'Don't just dream your dreams, live them.' And the BMW Z4 is one of mine." BMW Z4 Christian Brandl Jan. 22, 2010 BMW Welt, Munich The sportiness of a roadster with the elegance of a classic car: The new edition of the popular BMW Roadster is an expression of sheer driving...

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    ...- and that includes being able to use a vehicle any way the driver wants. With its highly versatile interior and strong performance features, the BMW X1 offers maximum freedom for every lifestyle. "Understated design. A dynamic engine. The typical BMW driving experience. In other words: The perfect...

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    ... 2009 Hakan Kaya Feb. 6, 2010 BMW Welt, Munich BMW ActiveHybrid X6 "A car that combines excellent driving characteristics with excellent environmental performance - what more could you ask for?" Generates the energy that powers it: The world's first fourwheel drive hybrid, the BMW ActiveHybrid...

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    64 "Great driving experience in the driver's seat, and luxurious comfort with ambient lighting in the back seat. For such a car, I went all the way from Florida to Munich to pick it up." Douglas Lempereur Feb. 12, 2010 BMW Welt, Munich

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    65 Highlights 2009 BMW 5 Series Gran Turismo A classy sedan? An adaptable estate car? A versatile SUV? The BMW 5 Series Gran Turismo is all of those things rolled into one - and therefore in a class of its own.

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    ... the design maxims, simplicity is the hardest to deliver. In the Rolls-Royce Ghost it has been honed to perfection - and paired with state-of-the-art technologies for luxurious mobility. MINI Convertible Striking profile. High-performance engine. A genuine four-seater with maximum open-air feeling...

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    67 Highlights 2009 Bettina Kroiß Jan. 22, 2010 MINI retail outlet, Munich "This is such a cult car. It even makes driving to work fun."

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    ... Munich Speed requires control - something we have been reinventing for the motorcycle for more than 20 years. The S 1000 RR provides a good example of this: It has a sporty feel, can be safely controlled and is still pleasantly easy to drive in everyday situations. "An elegant, lean, super sports...

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    69 Highlights 2009 IAA 2009 Experiencing the joy. For the first time, visitors to the Frankfurt Motor Show were able to see the BMW Group's new vehicles in action. But experiencing the joy also means shaping one's own future - through conversations with experts, or perhaps in a more playful manner...

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    01 The pleasure of discovering the future for oneself Sept. 17, 2009 Junior Campus 02 The fascination of experiencing efficient dynamics live Sept. 16, 2009 BMW stand 03 The knowledge to create sustainable mobility Sept. 14, 2009 ZEIT Future Summit

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    73 Highlights 2009 4 7 10

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    ... Dynamics fleet and vehicle premieres, such as the BMW ActiveHybrid X6 and the BMW 5 Series Gran Turismo, driving around a several-hundred-metre circuit. 5 In the future: e-mobility MINI E style 6 In perfection: the new Rolls-Royce Ghost 7 In motion: the BMW Vision EfficientDynamics concept car...

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    ...3 4 Children tested water saving technologies and logistic concepts in the Campus lab. Several hundred children visited the Campus at the IAA. Building sustainable products in the Campus workshop A mobility concept for tomorrow - with its developers 5 6 9 Sept. 14, 2009 IAA - ZEIT Future Summit...

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    74 Speed is what defines change today - where standing still means going backwards. Every day we break new ground with our ideas. We are pioneers building our own future. We have world-class employees - a team that efficiently networks talent and knowledge. And a corporate culture where every ...

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    ... towards preserving resources BMW Group Annual Report 2009 awarded the „Blue Angel" eco-label. The paper used (Enviro Top and Nanoo Color) was produced, climate-neutrally and without optical brighteners and chlorine bleach, from recycled waste paper. All other production materials used also comply...

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    ... fleet Consumption and emissions data of BMW Group vehicles Values measured in accordance with the New European Driving Cycle (EU Directive: 80 / 1268 / EEC in the relevant applicable version). Valid for vehicles with a European country specification. Vehicles with average CO2 emissions of below...

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    ... cubic capacity 7 Consumption values for models with automatic transmission in right-hand drive vehicles vary. 8 only available in selected EU countries 9 figures not yet available 10 comes as standard with 6-gear M Sport automatic transmission 1 2 Further information and constantly updated data...

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