BMW 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 BMW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 282

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282

ANNUAL REPORT 2010

Table of contents

  • Page 1
    ANNUAL REPORT 2010

  • Page 2

  • Page 3
    FACTS AND FIGURES

  • Page 4
    ...Operations BMW Group - Capital Market Activities in 2010 Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Group Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key...

  • Page 5
    ...in terms of aesthetics, dynamics, technology and quality, borne out by the company's leading position in engineering and innovation. In addition to its strong position in the motorcycles market with the BMW and Husqvarna brands, the BMW Group also offers a successful range of financial services. The...

  • Page 6
    04 BMW Group in figures Sales volume of automobiles in thousand units 1,600 1,500 1,400 1,300 1,200 1,100 1,000 Revenues in euro billion 60 55 50 45 40 35 30 06 1,374.0 07 1,500.7 08 1,435.9 09 10 06 49.0 07 56.0 08 53.2 09 50.7 10 1,286.3 1,461.2 60.5 Profit before financial result ...

  • Page 7
    05 BMW Group in figures 2006 Sales volume - Automobiles BMW MINI Rolls-Royce Total Sales volume - Motorcycles BMW Husqvarna Total Production - Automobiles BMW MINI Rolls-Royce Total Production - Motorcycles BMW Husqvarna Total Workforce at end of year 1 BMW Group 2007 2008 2009 2010 Change in ...

  • Page 8
    06 Joachim Milberg Chairman of the Supervisory Board

  • Page 9
    ... scheduled model start-ups in 2011. Using examples from the pressing plant, body construction and assembly areas, the members of the Supervisory Board were given a demonstration of how the principles of a value-added production system (VPS) can be applied to achieve further process improvements. In...

  • Page 10
    ... report on the activities, organisational structure and strategic direction of the board portfolio "Purchasing and Supplier Network". This network was set up in 2007 as a result of Strategy Number ONE and aims to create the world's most efficient car manufacturer supply chain in terms of quality...

  • Page 11
    .... Other areas of emphasis covered by the Audit Committee were the risk management system (including additional notification requirements as part of the internal reporting process), the current risk profile and the level of risk provision. In this context, the Board of Management also reported to...

  • Page 12
    ...on the main areas of emphasis of Group internal audit activities, the results of audits performed and forthcoming plans. In line with the authority given to it by the full Supervisory Board, the Audit Committee approved the decision taken by the Board of Management to increase BMW AG's share capital...

  • Page 13
    ... for the BMW Group. The Group earnings performance in 2010 was achieved as a result of hard work on the part of the Board of Management and the workforce as a whole. Measures introduced since 2007 in conjunction with Strategy Number ONE - in particular the decisions to incorporate Efficient Dynamics...

  • Page 14
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 15
    13 GROUP MANAGEMENT REPORT 19 million) and the profit before tax totalled euro 65 million (2009: euro 11 million). BMW Group Capital expenditure and operating cash flow in euro million 8,000 Financial Services business also benefited from the economic recovery, with segment revenues rising to ...

  • Page 16
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 17
    ... euro during 2010, ending the year at yen 109 to the euro. Massive capital inflows meant that the currencies of practically all emerging market countries gained in value in 2010 after suffering losses during the financial crisis, in some cases quite significant ones. Raw materials prices continue to...

  • Page 18
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 19
    17 GROUP MANAGEMENT REPORT Used car markets generally continued to stabilise in 2010, despite remaining below pre-crisis levels in North America and the UK. In Continental Europe, the economic recovery and lower inventory levels resulted in a sharp increase in used car prices during the second half...

  • Page 20
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 21
    ...GROUP MANAGEMENT REPORT BMW remains leading premium brand Now approaching the end of its life cycle, sales of the BMW 1 Series were 9.7% down on the previous year's level with a total of 196,004 units sold in 2010. The BMW 3 Series, with a sales volume of 399,009 units, remained at a similar level...

  • Page 22
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 23
    ...,337 units sold during the two-month period since its market launch. Rolls-Royce records strong growth The production network again displayed great flexibility in 2010. The process of internationalisation proceeded with plant expansions both in China and the USA. The Group's production sites proved...

  • Page 24
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 25
    ... the year under report. Preparations for series production of the MINI Coupé and MINI Roadster also began in Oxford in 2010. Production is due to start in 2011. In the Initial Quality Survey (IQS) organised by J. D. Power, more than 1,000 US customers voted the MINI brand as best developed brand...

  • Page 26
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 27
    .... Credit financing and the lease of BMW, MINI and RollsRoyce brand cars and motorcycles to retail customers is the largest line of business. The multi-brand financing line of business involves the financing of other brands alongside BMW Group brands. The Financial Services segment also supports the...

  • Page 28
    ...retail customer financing of BMW Group Financial Services 2010 as a percentage by region 12 12 14 18 41 44 47 62 63 70 GROUP MANAGEMENT REPORT A Review of the Financial Year General Economic Environment Review of Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers...

  • Page 29
    ...-return approach and measured using Value at Risk (VaR) techniques. At a 99% confidence level for a holding period of ten days, the aggregate VaR for all financial services entities amounted to euro 58.5 million. Against a background of rapidly changing business conditions, the BMW Group employs...

  • Page 30
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 31
    ... business in each individual case. Visible progress has been achieved in the past in terms of the proportion of female employees. Between 2005 and 2010 the number of female non-tariff employees rose from 7.4% to 8.8%. The proportion of women in management positions worldwide in the BMW Group exceeds...

  • Page 32
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 33
    ...REPORT Implementing sustainable management throughout the Group Clear targets for clean production Following on from 2009, when the BMW Group's sustainability strategy underwent further comprehensive development, a number of measures and assessment criteria, derived from groupwide strategic plans...

  • Page 34
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 35
    ... have been introducing consumption- and emissions-reducing technologies step by step in all of our models as standard. Their positive impact is now coming to fruition with every car sold and not just for special models. The Efficient Dynamics technologies comprise: - optimised engine and drive train...

  • Page 36
    ...business customers in the USA, Great Britain, Germany, France, Japan and China. After well over 10 million kilometres of electromobility in daily use, we have gained a great deal of useful information that can be directly used to help develop the first fully electric production car for the BMW Group...

  • Page 37
    ...numerous cultural projects worldwide for 40 years. From the biggest street festival in Mexico City to "State Opera for Everyone" in Berlin, the BMW Group always acts in the long-term interest and with sustainability in mind. As a cooperation partner in the world of culture, the BMW Group leaves both...

  • Page 38
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 39
    37 GROUP MANAGEMENT REPORT Research for the future continued In 2010 we presented a fuel-cell-powered hybrid vehicle to the public for the first time. Based on the BMW 1 Series, this research vehicle is fitted with an innovative form of hybrid technology which uses hydrogen as a source of energy. ...

  • Page 40
    ...of purchasing and supplier network functions Regional mix of BMW Group purchase volumes 2010 in %, basis: production material Africa 12 12 14 18 41 44 47 62 63 70 GROUP MANAGEMENT REPORT A Review of the Financial Year General Economic Environment Review of Operations BMW Group - Capital Market...

  • Page 41
    ... Adherence to the high ecological and social standards of the BMW Group was again a key criterion for selecting suppliers in 2010. Our main focus of attention was on the intensive evaluation and supervision of the production locations of our suppliers worldwide. The same principles are applied for...

  • Page 42
    ... For the BMW Group and its worldwide dealer network, the sale of BMW and MINI parts, accessories and services represents an important factor in the Group's success. Sales generally performed very well in this line of business, with the German and Chinese markets recording particularly dynamic growth...

  • Page 43
    ...MANAGEMENT REPORT BMW Group - Capital Market Activities in 2010 Automobile stocks boost DAX Employee share scheme continued Against the background of the sovereign debt crisis in the euro zone and concerns about the economy in the USA, the world's stock exchanges developed inconsistently in 2010...

  • Page 44
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 45
    ... were seen in a very positive light by the capital market and duly rewarded. In conjunction with the Thomson Extel Survey - which has over 1,800 participants and is Europe's most important survey for investment professionals - the BMW Group's Investor Relations Team was named the best IR team in the...

  • Page 46
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 47
    ... the resolution passed at the Annual General Meeting on 14 May 2009, the Board of Management was authorised, up to 12 November 2010 and subject to the price limits stipulated in the resolution, to acquire shares of common and /or non-voting preferred stock via the stock exchange, up to a maximum of...

  • Page 48
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 49
    ... structure, thus ensuring stability in the way the business is managed in the long term. Cost of capital rate (before tax) in % 2010 BMW Group Specific earnings and rate of return indicators are used to manage operational performance at segment and Group level and measure performance by reporting...

  • Page 50
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 51
    ... international capital markets in 2010 also helped to improve margins generated in the Financial Services segment. The BMW Group recorded a net profit of euro 3,234 million (2009: euro 210 million) for the financial year 2010. The post-tax return on sales was 5.3% (2009: 0.4%). Earnings per share of...

  • Page 52
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 53
    ... of euro 375 million (2009: net income of euro 574 million), mainly reflecting the higher volume of new leasing business and lower Group production costs. Financial position of euro 3,380 million or 32.9% compared to the previous year. The higher net profit in 2010 accounted for euro 3,024 million...

  • Page 54
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 55
    ... million. Development costs recognised as assets during the year under report amounted to euro 951 million (- 12.5%), equivalent to a capitalisation ratio of 34.3% (2009: 44.4%). The lower level of additions to capitalised development costs in 2010 was due to cost and process efficiencies during the...

  • Page 56
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 57
    ...). The dividend payment reduced Group equity by euro 197 million. The Authorised Capital created at the Annual General Meeting held on 14 May 2009 in conjunction with the employee share scheme was partially used during the financial year under report to issue shares of preferred stock to employees...

  • Page 58
    ...Applied to Employees Providers of finance Government / public sector Shareholders Group Minority interest Net value added * 12 12 14 18 41 44 47 62 63 70 GROUP MANAGEMENT REPORT A Review of the Financial Year General Economic Environment Review of Operations BMW Group - Capital Market Activities...

  • Page 59
    ...on sales Post-tax return on sales Pre-tax return on equity Post-tax return on equity Equity ratio - Group Automobiles Financial Services Coverage of intangible assets, property, plant and equipment by equity Return on capital employed Group Automobiles Motorcycles Return on equity Financial Services...

  • Page 60
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 61
    59 GROUP MANAGEMENT REPORT BMW AG Balance Sheet at 31 December in euro million 2010 Assets Intangible assets Property, plant and equipment Investments Tangible, intangible and investment assets Inventories Trade receivables Receivables from subsidiaries Other receivables and other assets Marketable...

  • Page 62
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 63
    ...are presented here. The BMW AG financial statements for the financial year 2010 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 64
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 65
    ... Global conditions were subject to a great deal of change during the past year. Regional economic growth differences and various measures designed to revive the economy in the wake of the worldwide economic and financial crisis were significant for Group revenues and earnings. The sale of vehicles...

  • Page 66
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 67
    ...by market factors and governmental fiscal policies - as well as increasingly stringent requirements to reduce vehicle fuel consumption and emissions remain the primary challenges for our engine and product development activities. Our Efficient Dynamics concept is generating visible benefits in terms...

  • Page 68
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 69
    ... the BMW Group at the end of a lease (leases and credit financing arrangements with option of return), there is a risk that the originally calculated residual value may not be recovered when the vehicle is sold (residual value risk). The volatility of pre-owned car prices on the major sales markets...

  • Page 70
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 71
    ... involve process-specific security measures. Standard activities such as virus scanners, firewall systems, access controls at both operating system and application level, internal testing procedures and the regular backing up of data are also employed. A security network is in place Group-wide...

  • Page 72
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 73
    ... USA and China are helping us strengthen the BMW Group in competitive terms. We are therefore laying the foundation for profitable growth in the future. We will continue to pursue a policy of rigorous cost management in 2011, centred on the management of fixed costs and working capital. The strategy...

  • Page 74
    ... Operations BMW Group - Capital Market Activities Disclosures relevant for takeovers and explanatory comments Financial Analysis 47 Internal Management System 49 Earnings Performance 51 Financial Position 53 Net Assets Position 55 Subsequent Events Report 55 Value Added Statement 57 Key Performance...

  • Page 75
    ... in sales volumes, revenues and earnings. We are also working with great determination to achieve the challenging targets resulting from the BMW Group's strategic realignment. These include the profitability targets already announced for the year 2012. We continue to target a return on capital...

  • Page 76
    ... the Statement of Comprehensive Income 96 Notes to the Balance Sheet 117 Other Disclosures 133 Segment Information 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 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
    ...million 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 74...

  • 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
    ...items Gain / loss on disposal of tangible, intangible and investment assets Result from equity accounted investments Changes in working capital Change in inventories Change in trade receivables Change in trade payables 74 74 74 76 78 80 81 GROUP FINANCIAL STATEMENTS Income Statements Statement of...

  • Page 81
    ... accounted investments Changes in working capital Change in inventories Change in trade receivables Change in trade payables Change in other operating assets and liabilities Income taxes paid Interest received Cash inflow from operating activities Investment in intangible assets and property, plant...

  • Page 82
    80 BMW Group Group Statement of Changes in Equity in euro million Subscribed capital Capital reserves Revenue reserves Accumulated other equity Trans- Securities Derivative lation diffinancial ferences instruments Pension obligations Treasury shares Minority interest Total 31 December 2008...

  • Page 83
    ... Income is presented at Group level reconciling the net profit to comprehensive income for the year. In order to facilitate the sale of its products, the BMW Group provides various financial services - mainly loan and lease financing - to both retail customers and dealers. The inclusion of the...

  • Page 84
    ... Report can be downloaded from the BMW Group website at www.bmwgroup.com/ir. The Board of Management authorised the Group Financial Statements for issue on 15 February 2011. 2 Consolidated companies The BMW Group Financial Statements include, besides BMW AG, all material subsidiaries, six special...

  • Page 85
    ...: Closing rate 31.12. 2010 31.12. 2009 1.43 0.89 9.78 133.17 2010 1.33 0.86 8.97 116.29 Average rate 2009 1.39 0.89 9.52 130.37 US Dollar 1.34 0.86 8.80 108.61 British Pound Chinese Renminbi Japanese Yen 5 Accounting policies The financial statements of BMW AG and of its subsidiaries in Germany...

  • Page 86
    ... of other intangible assets relating to production) and writedowns on inventories. Cost of sales also includes freight and insurance costs relating to deliveries to dealers and agency fees on direct sales. Expenses which are directly attributable to financial services business and interest...

  • Page 87
    ... of equity taking account of fair value adjustments on acquisition. Investments in non-consolidated Group companies reported in other investments are measured at cost or, if lower, at their fair value. Participations are measured at their quoted market price or fair value. When, in individual cases...

  • Page 88
    ... account of all identifiable risks. Receivables from sales financing comprise receivables from retail customer, dealer and lease financing. Impairment losses on receivables relating to financial services business are recognised using a uniform methodology that is applied throughout the Group and...

  • Page 89
    ... from the expected return on pension plan assets are reported separately as part of the financial result. All other costs relating to allocations to pension provisions are allocated to costs by function in the income statement. Other provisions are recognised when the BMW Group has an obligation...

  • Page 90
    ... statement and assumptions changed accordingly. In addition, estimates used to measure warranty provisions were refined on the basis of current information. The positive impact of this change in estimate amounted to euro 201 million and has been recognised in cost of sales in 2010. 6 New financial...

  • Page 91
    ... to financial services business. As in the previous year, manufacturing costs do not contain any impairment losses on intangible assets and property, plant and equipment. Cost of sales is reduced by public-sector subsidies in the form of reduced taxes in euro million Research and development costs...

  • Page 92
    ... expenses Net interest result 2010 476 209 685 - 588 -124 -3 - 251 - 966 - 281 2009 379 477 856 - 532 -115 -3 - 364 -1,014 -158 The expected return on plan assets includes the expected income on assets held to secure obligations relating to pensions and pre-retirement part-time work arrangements.

  • Page 93
    ... Group. The positive sundry other financial result was largely attributable to fair value gains on stand-alone commodities derivatives. 14 Income taxes Taxes on income comprise the following: in euro million Current tax expense Deferred tax income / expense Income taxes 2010 1,430 172 1,602 2009...

  • Page 94
    ... of deferred taxes tax assets and liabilities by position at 31 December is shown below: Deferred tax assets in euro million Intangible assets Property, plant and equipment Leased products Investments Other current assets Tax loss carryforwards Provisions Liabilities Consolidations 2010 2 33 415...

  • Page 95
    ... the impact of non-recoverable withholding taxes on intra-group dividends. This line also includes write-downs recorded in the current year on investments. The line "Tax expense (+ ) / benefits (-) for prior years" mainly reflects the impact of tax field audits in Germany and abroad. The item "Other...

  • Page 96
    ...,446 2009 90,755 5,452 96,207 For information regarding the number of employees at the year-end, reference is made to pages 27 et seq. in the Group Management Report. in Mio. Euro Audit of financial statements thereof KPMG Europe LLP Other attestation services thereof KPMG Europe LLP Tax advisory...

  • Page 97
    ...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 -16 - 520 683 - 277 -130 2010 Deferred taxes 5 184...

  • Page 98
    ... 117 Other Disclosures 133 Segment Information Investments accounted for using the equity method Investments in non-consolidated subsidiaries Participations Non-current marketable securities Other investments 1 2 including the acquisition cost of property, plant and equipment in conjunction with...

  • Page 99
    ... 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 2,936 16,732 1,623 1 21,292 6,444...

  • Page 100
    ... during the year are shown in the analysis of changes in Group tangible, intangible and investment assets on pages 96 et seq. Property, plant and equipment include a total of euro 55 million (2009: euro 57 million) relating to operational buildings used by BMW AG as well as leased plant, machinery...

  • Page 101
    ... 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 pages 96 et seq. 22 Investments accounted for using the equity method and...

  • Page 102
    ... term of more than one year. 31.12. 2010 46,961 -1,596 45,365 31. 12. 2009 41,950 -1,356 40,594 Allowances for impairment on receivables from sales financing developed as follows during the year under report: 2010 in euro million Balance at 1 January Allocated / reversed Utilised Exchange rate...

  • Page 103
    ...third parties Credit card receivables Other Financial assets thereof non-current thereof current 31.12. 2010 2,781 1,566 58 262 462 5,129 1,867 3,262 31. 12. 2009 2,433 1,648 23 266 364 4,734 1,519 3,215 The change in derivative instruments mainly reflects the positive development of fair values of...

  • Page 104
    ... 133 Segment Information Allowance for impairment Net carrying amount Allowances for impairment losses on receivables relating to credit card business developed as follows during the year under report: 2010 in euro million Balance at 1 January Allocated / reversed Utilised Exchange rate impact and...

  • Page 105
    103 GROUP FINANCIAL STATEMENTS 25 Income tax assets Income tax assets can be analysed as follows: 31 December 2010 in euro million Deferred tax Current tax Income tax assets Maturity Maturity within one year later than one year - 302 302 1,393 864 2,257 Total 1,393 1,166 2,559 31 December 2009 ...

  • Page 106
    ... million due later than one year (2009: euro 40 million). 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 89 Notes to the Income...

  • Page 107
    ... conjunction with an employee share scheme. These shares are entitled to receive dividends with effect from the financial year 2011. 1,540 shares of preferred stock were bought back via the stock exchange in order to service the Company's employee share scheme. Issued share capital increased by euro...

  • Page 108
    ... as a liability in the Group Financial Statements. Accumulated other equity concern in the long-term and to provide an adequate return to shareholders. The BMW Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk profile of...

  • Page 109
    ... to pay the benefits granted to present and 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 the financial year 2010, as previously planned, BMW AG...

  • Page 110
    ... 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 2010 2009...

  • Page 111
    ... 1 1,475 1,475 - Germany The defined benefit plans of the BMW Group gave rise to an expense from pension obligations in the financial in euro million Current service cost Expense from reversing the discounting of pension obligations Past service cost Expected return on plan assets (-) Expense from...

  • Page 112
    ...30 account of costs and unplanned risks. This approach resulted in the following expected rates of return on plan assets (disclosed on the basis of weighted averages): United Kingdom 2010 5.40 2009 6.03 2010 5.51 Other 2009 6.55 2009 6.12 Germany 74 74 74 76 78 80 81 GROUP FINANCIAL STATEMENTS...

  • Page 113
    ... of plan assets is invested in debt securities in order to minimise the effect of capital market fluctuations. 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...

  • Page 114
    ... the financial year Income from the reversal of other provisions amounting to euro 168 million (2009: euro 509 million) is included in costs by function in the income statement. 33 Income tax liabilities 31 December 2010 in euro million Deferred tax Current tax Income tax liabilities Maturity...

  • Page 115
    ... of tax provisions in the period under report (2009: euro 60 million). 34 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 2010 in...

  • Page 116
    ... fixed BMW (UK) Capital plc, Bracknell variable variable variable variable variable fixed fixed fixed 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...

  • Page 117
    ...Other taxes Social security Advance payments from customers Deposits received Payables to subsidiaries Payables to other companies in which an investment is held Deferred income Other Other liabilities 560 64 773 202 58 4 3,510 2,651 7,822 31 December 2009 in euro million Maturity within one year...

  • Page 118
    ... to service contracts relates 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 and which 74 have been invested in the production plant in...

  • Page 119
    ... sale of Rover Cars and Land Rover activities. Other financial obligations ments, primarily under lease contracts for land, buildings, plant and machinery, tools, office and other facilities. The leases run for periods of one to 92 years and in some cases contain extension and /or purchase options...

  • Page 120
    ... Fair value Carrying amount Fair value Carrying amount Assets Other investments Receivables from sales financing Financial assets Derivative instruments Cash flow hedges Fair value hedges Other derivative instruments Marketable securities and investment funds Loans to third parties Credit card...

  • Page 121
    ... financing Financial assets Derivative instruments - - - 1,566 1,743 900 1,102 779 2,781 Cash flow hedges Fair value hedges Other derivative instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other Cash and cash equivalents Trade...

  • Page 122
    ... Fair value Carrying amount Fair value Carrying amount Assets Other investments Receivables from sales financing Financial assets Derivative instruments Cash flow hedges Fair value hedges Other derivative instruments Marketable securities and investment funds Loans to third parties Credit card...

  • Page 123
    ... financing Financial assets Derivative instruments - - - 1,648 1,880 619 1,080 734 2,433 Cash flow hedges Fair value hedges Other derivative instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other Cash and cash equivalents Trade...

  • Page 124
    ... level at 31 December 2010: Level hierarchy in accordance with IFRS 7 Level 1 Level 2 Level 3 1,566 900 1,102 779 921 375 714 31 December 2009 in euro million Marketable securities and investment fund shares - available-for-sale Derivative instruments (assets) Cash flow hedges Fair value...

  • Page 125
    123 GROUP FINANCIAL STATEMENTS Other investments (available-for-sale) amounting to euro 177 million (2009: euro 232 million) are measured at amortised cost since quoted market prices are not available or cannot be determined reliably. These are therefore not included in the level hierarchy shown ...

  • Page 126
    ...of the exposure that the BMW Group is proposing to enter into. Within the financial services business, the financed items (e.g. vehicles, equipment and property) in the retail customer and dealer lines of business serve as first-ranking collateral with a recoverable value. Security is also put up by...

  • Page 127
    ... for the Group's financing requirements within the framework of the target debt ratio. The BMW Group has good access to capital markets as a result of its solid financial position and a diversified refinancing strategy. This is underpinned by the longstanding longand short-term ratings issued by...

  • Page 128
    ... portion of Group revenues are generated outside the euro currency region and the procurement of production material and funding is also organised on a worldwide basis, the currency risk is an extremely important factor for Group earnings. At 31 December 2010 derivative financial instruments were...

  • Page 129
    ...) at 31 December 2010, the Group profit before tax would have been euro 50 million higher (euro 50 million lower). A further exposure relates to the residual value risk on vehicles returned to the Group at the end of finance lease contracts. The risks from financial instruments used in this context...

  • Page 130
    ... included in the consolidated financial statements as consolidated companies. Control is defined as ownership of more than one half of the voting power of BMW AG or the power to direct, by statute or agreement, the financial and operating policies of the management of the Group. In addition, the...

  • Page 131
    ... Board of BMW AG. The same applies to close members of the families of those persons. BMW Trust e.V., Munich, administers assets on a trustee basis to secure obligations relating to pensions and pre-retirement part-time work arrangements in Germany and is therefore a related party of the BMW Group...

  • Page 132
    ... Financial Services NA, LLC, Wilmington, DE BMW Manufacturing, LLC, Wilmington, DE BMW of North America, LLC, Wilmington, DE BMW US Capital, LLC, Wilmington, DE * In the case of foreign subsidiaries, based on financial statements drawn up in accordance with uniform IFRSs accounting policies. Equity...

  • Page 133
    ... and is also 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 27.66% of the issued common and preferred stock shares, of which 16.10...

  • Page 134
    ...- BMW Vertriebs GmbH & Co. oHG, Dingolfing - Rolls-Royce Motor Cars GmbH, Munich 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...

  • Page 135
    ... well as 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...

  • Page 136
    ... Motorcycles 2010 1,291 13 1,304 71 70 74 2009 1,059 10 1,069 19 52 73 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 89 Notes...

  • Page 137
    ...segment revenues Total revenues Segment result Capital expenditure on non-current assets Depreciation and amortisation on non-current assets Financial Services 31.12. 2010 5,216 31. 12. 2009 4,268 Other Entities 31.12. 2010 44,985 31. 12. 2009 40,400 Reconciliation to Group figures 31.12. 2010 48...

  • Page 138
    ... December 2010 included investments accounted for using the equity method amounting to euro 23 million (2009: euro 23 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
    ...-curInformation by region rent assets relates to property, plant and equipment, intangible assets and leased products. The reconciling item disclosed for non-current assets relates to leased products. External revenues Non-current assets 2009 11,436 10,628 4,039 16,989 1,805 5,784 - 50,681 2010 21...

  • Page 140
    ... 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 performance of the business and the position of the Group...

  • Page 141
    ...statement, statements of changes in equity and the notes to the consolidated financial statements and its report on the position of the Company and the Group for the business year from 1 January to 31 December 2010. The preparation of the consolidated financial statements and Group Management Report...

  • Page 142
    ... BMW Group is founded on transparent reporting and internal communication, a policy of corporate governance aimed at the interests of stakeholders, fair and open dealings between the Board of Management, the Supervisory Board and employees and compliance with the law. The Board of Management reports...

  • Page 143
    ... reports directly and on a regular basis to the Board of Management and Supervisory Board. The Corporate Governance Code for the BMW Group, together with the Declaration of Compliance, Articles of Incorporation and other information, can be viewed and /or downloaded from the BMW Group's website...

  • Page 144
    ... 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) Information on the Company's Governing Constitution Declaration of the Board of Management and of the Supervisory Board pursuant to § 161 AktG Members of the Board of Management Members of the Supervisory Board Information on Work...

  • Page 145
    ...1958 ) Sales and Marketing Dr.-Ing. Herbert Diess (born 1958 ) Mandates Purchasing and Supplier Network Rolls-Royce Motor Cars Limited (Chairman) Dr.-Ing. Klaus Draeger (born 1956 ) Development General Counsel: Dr. Dieter Löchelt Membership of other statutory supervisory boards Membership of...

  • Page 146
    ... 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) Information on the Company's Governing Constitution Declaration of the Board of Management and of the Supervisory Board pursuant to § 161 AktG Members of the Board of Management Members of the Supervisory Board Information on Work...

  • Page 147
    ...Chairman) (until 15. 05. 2010) secunet Security Networks AG Giesecke & Devrient GmbH TBG Limited Director of Institut für Demoskopie Allensbach Gesellschaft zum Studium der öffentlichen Meinung mbH Mandates Allianz SE Infineon Technologies AG MAN SE Dr. h. c. Robert W. Lane (born 1949) Prof. Dr...

  • Page 148
    ... of the Works Council, Munich Anton Ruf 3 (born 1953 ) Head of Development "Small Model Series" Maria Schmidt1 (born 1954 ) Member of the Works Council, Dingolfing 140 140 142 143 144 147 154 162 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) Information on the Company...

  • Page 149
    ... 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 or product line. The Board of Management and its committees...

  • Page 150
    ... 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 151
    ...the case in 2010. One meeting each year is planned to cover a number of days and is used, amongst other things, to enable an indepth exchange on strategic and technological matters. The main emphases of meetings in 2010 are described in the Report of the Supervisory Board (pages 06 et seq.). In line...

  • Page 152
    ... may call on experts and other suitably informed persons to attend meetings to give advice on specific matters. 140 142 143 144 147 154 162 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) Information on the Company's Governing Constitution Declaration of the Board of Management...

  • Page 153
    ... the Supervisory Board's resolution relating to the Company and Group Financial Statements and discusses interim reports with the Board of Management before publication. The Audit Committee also decides on the Supervisory Board's agreement to use the Authorised Capital 2009 (Article 4 point 5 of the...

  • Page 154
    ... with external auditor - preparation of Supervisory Board's resolution on Company and Group Financial Statements - discussion of interim reports with Board of Management prior to publication - decision on approval for utilisation of Authorised Capital 2009 140 Joachim Milberg1 Manfred Schoch Stefan...

  • Page 155
    ..., suppliers, creditors or other business partners. - As a general rule, the age limit for membership of the Supervisory Board should be set at 70 years. In exceptional cases, members may be allowed to remain on the Board up until the Annual General Meeting following their 73rd birthday in order to...

  • Page 156
    ... the financial year 2010 was approved by shareholders at the Annual General Meeting 2010 as part of a consultative process ("Say on Pay") with a majority vote of 97.66%. Principles of compensation 140 140 142 143 144 147 154 162 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report...

  • Page 157
    ...tax) for financial years from 2011 onwards in BMW common stock and to hold these shares for a minimum of four years. One half of the amount required to finance this investment will be provided by the Company. As part of a matching plan, the Board of Management members will, at the end of the holding...

  • Page 158
    ... either. Retired board members are entitled to use company and lease vehicles in line with the rules applicable for senior heads of departments. 140 140 142 143 144 147 154 162 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) Information on the Company's Governing Constitution...

  • Page 159
    ...for board members to invest 20 % of their total bonuses (after tax) for financial years from 1 January 2011 onwards in BMW AG common stock - one half of the amount required to finance this investment to be provided by Company. - minimum holding period of four years - at the end of the holding period...

  • Page 160
    ... year 2010 for current members of the Board of Management for the period after the end of their service relationship. This relates to the expense for allocations to pension provisions (service cost). Compensation of the individual members of the Board of Management for the financial year 2010 (2009...

  • Page 161
    ...-related compensation of euro 220 for each full euro 0.01 by which the earnings per share (EPS) of common stock reported in the Group Financial Statements for the relevant financial year (remuneration year) exceed a minimum amount of euro 2.30 (payable after the Annual General Meeting held...

  • Page 162
    ... during the financial year 2010 amounted to euro Supervisory Board members did not receive any further compensation or benefits from the BMW Group for services performed by them, in particular advisory and agency services. Market research into the premium segment for cars in Germany, for which...

  • Page 163
    ...STATEMENT ON CORPORATE GOVERNANCE Compensation of the individual members of the Supervisory Board for the financial year 2010 (2009) in euro Fixed compensation Attendance fee Variable compensation...3 Susanne Klatten Renate Köcher Robert W. Lane Horst Lischka Willibald Löw Wolfgang Mayrhuber Werner ...

  • Page 164
    ...com/ir and in its Annual Document pursuant to § 10 (1) of the German Securities Prospectus Act. During the financial year 2010, Dr. Karl-Ludwig Kley gave notice of the sale of 1,320 shares of common stock at an average selling price of euro 62.94. Shareholdings of members of the Board of Management...

  • Page 165
    ... and lawful conduct is fundamental to the success of the BMW Group. This approach is an integral part of our corporate culture and is the reason why customers, shareholders, business partners and the general public place their trust in us. The Board of Management and the employees of the BMW Group...

  • Page 166
    ... to certain groups of staff on specific com- Compliance Committee BMW AG Supervisory Board Annual Status Report BMW AG Board of Management Annual Status Report 140 142 143 144 147 154 162 163 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) Information on the Company's Governing...

  • Page 167
    ... of 2010, employees also have access on the website to an electronically supported authorisation process for invitations in connection with business partners. Compliance is also an important factor in terms of safeguarding the future of the BMW Group's workforce. With this in mind, in 2009 the Board...

  • Page 168
    ... to customers Automobiles Motorcycles3 Production Automobiles Motorcycles4 Financial Services Contract portfolio Business volume (based on balance sheet carrying amounts)5 Income Statement Revenues Gross profit margin Group 6 Profit before financial result Profit before tax Return on sales (earnings...

  • Page 169
    ...277 38.7 2,020 38,463 25.3 3,356 3,242 8.4 1,376 42.4 1,866 Revenues Gross profit margin Group 6 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 50,514 28,543 19,130 24.2 31,372...

  • Page 170
    ...The BMW Group is present in the world markets with 25 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 171
    ... di Biandronno, Italy -C Contract production Magna Steyr Fahrzeugtechnik, Austria -S Sales subsidiary markets / Locations Financial Services Argentina Australia Austria Belgium Brazil Bulgaria China Canada Czech Republic Denmark Dubai * Finland France Germany Great Britain Greece Hungary India...

  • Page 172
    ...management inside the vehicle. Equity ratio Abbreviation for "Deutscher Aktienindex", the German Stock Index. The index is based on the weighted market prices of the 30 largest German stock corporations (by stock market capitalisation). Deferred taxes The proportion of equity (= subscribed capital...

  • Page 173
    ...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 Supplier relationship management (SRM) uses focused procurement strategies to organise networked supplier relationships, optimise processes...

  • Page 174
    ... 170 172 174 175 176 OTHER INFORMATION BMW Group Ten-year Comparison BMW Group Locations Glossary Index Index of Graphs Financial Calendar Contacts Mandates of members of the Board of Management 143 Mandates of members of the Supervisory Board 144 et seq. Marketable securities 51 et seq., 81, 85...

  • Page 175
    ...154 et seq. Report of the Supervisory Board 06 et seq. Research and development 36 et seq., 41, 50, 72, 84, 89 et seq., 168 Result from equity accounted investments 90, 136 Return on sales 49 et seq., 155, 171 Revenue reserves 58, 105 et seq. Revenues 12, 49 et seq., 58, 83, 89 Risk management 62 et...

  • Page 176
    ...of BMW Group Financial Services 2010 26 Development of credit loss ratio 27 Regional mix of BMW Group purchase volumes 2010 38 Change in cash and cash equivalents 52 Balance sheet structure - Automobiles segment 54 Balance sheet structure - Group 54 BMW Group Value added 2010 56 Production and sales...

  • Page 177
    ...31 March 2011 Annual General Meeting Quarterly Report to 30 June 2011 Quarterly Report to 30 September 2011 Annual Report 2011 Annual Accounts Press Conference Financial Analysts' Meeting Quarterly Report to 31 March 2012 Annual General Meeting Quarterly Report to 30 June 2012 Quarterly Report to 30...

  • Page 178
    ...various BMW Group brands is available at www.bmw.com, www.mini.com and www.rolls-roycemotorcars.com The Annual Report 2010 as an iPad app 166 166 168 170 172 174 175 176 OTHER INFORMATION BMW Group Ten-year Comparison BMW Group Locations Glossary Index Index of Graphs Financial Calendar Contacts

  • Page 179
    NUMBER ONE A high-tech material for tomorrow's mobility FUTURE From the first BMW 5 Series to an impressive global family GROWTH Intelligent communication for individual mobility CUSTOMERS Stable performance in an age of global market ï¬,uctuations PROFITABILITY

  • Page 180
    15 38 11 58 65 43 83

  • Page 181
    37 57 58 NUMBER ONE 63 35

  • Page 182
    02 PREFACE NUMBER ONE With our corporate Strategy Number ONE, we are systematically unlocking the future - opening up access to new customers, new technologies and new markets. Number ONE stands for dynamic growth and strong profitability in equal measure.

  • Page 183
    ..., one of the things premium means is leadership in the development of sustainable mobility. We are achieving this with dedicated employees and a production network that sets standards worldwide. We define sustainable mobility with groundbreaking vehicles and mobility concepts. We are inventing the...

  • Page 184

  • Page 185
    ... Reithofer 04 MEGACITY VEHICLE Topic two Growth 09 23 41 51 61 62 80 81 82 A MODEL OF SUCCESS Topic three Customers CONNECTED DRIVE Topic four Profitability GLOBAL BALANCE HIGHLIGHTS OF 2010 Moments of sheer pleasure Auto China 2010 in Beijing Building the future 50 years of independence

  • Page 186
    04 PREFACE Norbert Reithofer Chairman of the Board of Management

  • Page 187
    ... environment, for society and for our employees at all locations around the world. 2010 was a successful year for the BMW Group - a success made possible by our customers around the world. More than 1.46 million customers purchased a BMW, MINI or Rolls-Royce vehicle, and another 110,000 bought a BMW...

  • Page 188
    ... safety concept earned a five-star rating from Europe's top crash test organisation, the Euro NCAP crash test, as well as from its American counterpart, the US NCAP crash test. Readers of the ADAC motor club magazine also named the new BMW 5 Series Sedan Germany's favourite car in early 2011.

  • Page 189
    ... Europe, Asia and the Americas in our business and sales activities. This supports our long-term positioning and makes us more resilient to market and exchange rate ï¬,uctuations. Against this background, we invested in our sites once again in 2010 - particularly in Germany, China, India and the...

  • Page 190
    ... our company. Teamwork is part of our culture. I would like to thank all of our associates worldwide for their hard work and dedication in 2010 - also on behalf of my fellow members of the Board of Management. Our thanks also extend to our entire retail network, our suppliers and our partners. 2011...

  • Page 191
    FUTURE MEGACITY VEHICLE CUSTOMERS GROWTH PROFITABILITY A high-tech material for tomorrow's mobility

  • Page 192
    ...also add to a vehicle's weight. This is the dilemma that has plagued the development of cars with electric batteries and drive trains until now. It is also the reason why the BMW Group has opted for a totally new approach. For the past ten years or so, the company has been working with carbon-fibre...

  • Page 193
    ... Leipzig When series production of the electric-powered Megacity Vehicle (MCV) ramps up in 2013, it will be the first volume-production vehicle built with a passenger compartment made of CFRP. This high-tech material is also set to open up a whole new dimension in vehicle design and manufacture.

  • Page 194
    ... Wolf -- Technology manager for CFRP and Exterior As technology manager for plastics, Johann Wolf, 50, is responsible for obtaining the materials for, and actually building, the Megacity Vehicle's passenger compartment - key elements of what make this vehicle stand out among other electric cars.

  • Page 195
    ... or steel body, where the combustion engine has simply been switched for an electric motor, are not a real solution. That is why we have opted for an entirely new concept. The Megacity Vehicle is the first electric car worldwide that is specially designed for this kind of drive technology. With its...

  • Page 196
    ... needed. These properties also make CFRP the ideal material for the body of the Megacity Vehicle, a car which will mark the beginning of a brand new chapter in sustainable automobile design and production. This may seem surprising, since the initial stages in the life of a CFRP are fairly complex...

  • Page 197
    ... is really high-tech: materials testing for CFRP production in Wackersdorf. CFRP production waste can even be reused. Here it is being prepared for lab analysis. At the Wackersdorf plant, four knitting machines the size of railway wagons produce the CFRP used as the basic material for car bodies.

  • Page 198
    16 FUTURE Megacity Vehicle 2 1 3 1 2 3 4 Analysing fibre components in the standards laboratory Fibre mats are still tested by hand. Waste carbon-fibre fabric can be fed back into the production chain. The high-tech material up close 4

  • Page 199
    ...with great difficulty. The body of the Megacity Vehicle will therefore use much fewer components than a steel body. This not only simplifies the production process, but also reduces vehicle mass. Lower weight also extends electric vehicles' potential range - which makes the use of CFRP an important...

  • Page 200
    18 FUTURE Megacity Vehicle 2 3 1

  • Page 201
    ...To accomplish this, the BMW Group has, in recent years, refined processes, systems, materials and tools to the point where an economical, high-quality volume production of CFRP car body parts is now possible. One example is the specially developed press tools used at the Landshut plant: instead of...

  • Page 202
    ... employees to work with and more ï¬,exible than conventional production processes. "We can ramp up MCV production quickly with relatively low outlay," adds Martin Arlt of the development team. Its production will use 70 percent less water and 50 percent less energy than the BMW Group's current plant...

  • Page 203
    21 1 2 3 1 2 3 Actually much too light for three people to carry: body side panel made out of carbon. One of the few jobs performed by hand: adding the final touches to finished CFRP components. Synthetic resin gives carbon-fibres all the rigidity they need.

  • Page 204
    ...radical new approach, explore unique design concepts and realise a new kind of carbuilding. Over the years and decades ahead, elements of this will be found not only in the Megacity Vehicle, but also in many other BMW Group models. The use of CFRP in volume production marks the beginning of a whole...

  • Page 205
    GROWTH A MODEL OF SUCCESS PROFITABILITY CUSTOMERS FUTURE From the first BMW 5 Series to an impressive global family

  • Page 206
    It always starts out with an idea. The idea becomes a concept, the concept becomes a totally new kind of vehicle, and the car ultimately becomes a class of its own. Time and again, the BMW Group has taken new vehicle concepts like the BMW 5 Series and diversified them to create families with a ...

  • Page 207
    THE BMW 5 SERIES SUCCESS STORY The number 5 has stood for unmistakable driving pleasure in the upper mid-range segment for almost 40 years. Over those past four decades, the 5 Series has brought driving pleasure to more than 5.5 million customers across five continents.

  • Page 208
    Touring Sedan Sedan Sedan 1970 1980 1990 1987 - 1996 3 generation rd 1981 -1988 2 generation nd 1972 - 1981 1 generation st

  • Page 209
    Gran Turismo Touring Touring Touring Long Wheelbase Sedan, China Long Wheelbase Sedan, China Sedan Sedan Sedan 2000 2010 since 2009 generation 6th 2003 - 2010 generation 5th 1995 - 2004 4 generation th

  • Page 210
    ... win customers on all continents with a constant stream of new ideas The story continues. The second generation of the 5 Series family gave rise to the epitome of the dynamic sports sedan, the BMW M5, and the very first 5 Series diesel. Third-generation highlights included a completely new design...

  • Page 211
    ...the BMW 5 Series impressed once more with its progressive design and innovative technology. From 2007 on, all versions came with Efficient Dynamics features such as Brake Energy Regeneration and active air vent control as standard, to achieve an optimum ratio between performance and fuel consumption...

  • Page 212
    30 GROWTH A model of success A Totem poles in Stanley Park, Vancouver, Canada B BMW 5 Series and admirers at the Granville Island ferry dock C Ron Yaworsky at home in the house he designed himself A Americas 49° 17' N, 123° 7' W Vancouver BMW 5 Series Sedan C

  • Page 213
    ... three generations - and each one brought unexpected improvements. The BMW 5 Series is the perfect combination of luxury, good size, excellent performance, reasonable fuel economy and the reassurance of xDrive's all-weather capabilities." Ron Yaworsky, Vancouver, Canada "Generation after generation...

  • Page 214
    ... kilometres to work and back every weekday. Trips out to the country on the weekends. Family visits once a month, with a long drive to Asturias along winding mountain roads: I need a car that is comfortable, dynamic and efficient all in one. At the end of the day, there was only one real option." Dr...

  • Page 215
    33 A B Europe 40° 25' N, 3° 42' W Madrid BMW 5 Series Sedan A Dr. Jesus Rodriguez sitting in the "Café de Oriente" near the Madrid Opera. B BMW 5 Series at Plaza Santa Ana in Madrid C Traditional advertising in a Madrid bar C

  • Page 216
    ...model of success A BMW 5 Series Long Wheelbase Sedan, China 39° 56' N, 116° 23' E C A Enthusiastic BMW 5 Series customer He Xialong B Lanterns in the Gui Jie district not far from the Forbidden City in Beijing C BMW 5 Series Long Wheelbase version and New Year's decorations over the Forbidden...

  • Page 217
    ...from a premium vehicle? Besides exclusivity, comfort and exceptional performance, the main thing is the space inside: the kind of space that makes the BMW 5 Series Long Wheelbase version so very comfortable. And that is something not only I truly appreciate, but also my business friends." He Xialong...

  • Page 218
    ...Bold performance and a relaxed way to travel." "The BMW 5 Series represents the perfect symbiosis between excellent handling and comfort. In this car, I can enjoy trips into the hills of KwaZulu-Natal as well as driving a cool professional business sedan." Abdul Tayob, Pietermaritzburg, South Africa

  • Page 219
    37 B A A Ready for the road: Abdul Tayob and his son, Mas'ood B The Tayobs' home in the Mountain Rise area of the city C Abdul Tayob with three of his four children 29° 36' S, 30° 23' E Africa Pietermaritzburg BMW 5 Series Sedan C

  • Page 220
    38 GROWTH A model of success A Australia 33° 51' S, 151° 12' E Sydney BMW 5 Series Sedan C A The Olympic swimming pool under Sydney Harbour Bridge ...B ...where Martin Carolan regularly trains before work. C Carolan's BMW 5 Series driving towards the Sydney Opera House.

  • Page 221
    ... when I saw the new 5 Series and took it for a test drive I made up my mind within five minutes to get the BMW 5 Series M Sport diesel version. My car is a real eye-catcher. It is a real pleasure to be able to drive 900 kilometres on a single tank." Martin Carolan, Sydney, Australia "It's a real...

  • Page 222
    ... of the BMW 5 Series business sedan showcases the multifaceted development skills of the world's most successful premium automobile manufacturer. Once again, the BMW Group is defining a whole new vehicle segment with its BMW 5 Series Gran Turismo - and writing the next chapter in a story full of...

  • Page 223
    CUSTOMERS CONNECTED DRIVE FUTURE GROWTH PROFITABILITY Intelligent communication for individual mobility

  • Page 224
    ...of in-car digital services as comprehensive as those offered by BMW ConnectedDrive in all series. Driving a car is safer, more efficient and more convenient than ever before, thanks to the BMW Group's portfolio of intelligent communication technologies - all of which make our vehicles increasingly...

  • Page 225
    43 INTELLIGENT MOBILITY [01] [02] [03]

  • Page 226
    ... make driving a car safer and more than ever before, thanks to the BMW Group's convenient. They will save fuel and portfolio of intelligent communication protect the climate. One thing is technologies - allhelp of which make our vehicles certain: the intelligent technologies increasingly attractive...

  • Page 227
    43 INTELLIGENT MOBILITY [01] [02] [03]

  • Page 228
    ...of in-car digital services as comprehensive as those offered by BMW ConnectedDrive in all series. Driving a car is safer, more efficient and more convenient than ever before, thanks to the BMW Group's portfolio of intelligent communication technologies - all of which make our vehicles increasingly...

  • Page 229
    .... Milestones along the way included the world's first park distance control and its first fully integrated mobile navigation system. Today, the BMW Group is once again setting the standard for intelligent networking between the driver, the vehicle and the world around them. And that is all...

  • Page 230
    ...-car telematics services in the world. Connected Drive stands for a package of intelligent technologies designed to network driver, passengers, the vehicle and the world around them for greatly enhanced safety, infotainment and convenience. An overview of current options can be found at http://bmw...

  • Page 231
    45 [01] "The Emergency Stop Assistant guides me to safety."

  • Page 232
    44 CUSTOMERS Connected Drive "It's as if the car can see. If you have a heart attack or something, the car can drive to the side of the road and park all on its own. Then it calls the ambulance." Vanessa Meyer, 9 years old, explains how the Emergency Stop Assistant works.

  • Page 233
    ... do so, the Emergency Stop Assistant automatically analyses the driving and traffic situation and calculates the optimum driving manoeuvre necessary to bring the vehicle safely to a halt. It then triggers the hazard warning lights and places an emergency call to the BMW ConnectedDrive Call Center.

  • Page 234
    ... saves time, since manual data input from the PC into the onboard system through a human-machine interface is no longer required. Driver assistance systems further enhance control and safety when driving. Model-specific options range from Adaptive Headlights to the Lane Change Warning System, Lane...

  • Page 235
    47 [02] "The Customer Support Centre knows where to find the nearest pizzeria."

  • Page 236
    ...are driving in an area you don't know very well, you can talk to the BMW Customer Support Centre. They can tell you where the next pizzeria is and things like that. And there's always someone there if you need help." Flynn Traenckner, 10 years old, explains how the BMW Customer Support Centre works.

  • Page 237
    ... off the online rate. The address is sent straight to the vehicle. The driver does not need to enter any further information and can simply follow the navigation system's directions. An added bonus is that the BMW Customer Support Centre is available round-the-clock, 365 days a year, and will...

  • Page 238
    ... run engines even more fuel-efficiently, for instance. "Connected Drive is a fully comprehensive approach designed to maximise the benefits of seamlessly connecting the driver, the vehicle and the world around them," according to Dr. Klaus Draeger, member of the Board of Management of the BMW Group...

  • Page 239
    49 [03] "The MINIMALISM Analyser helps you drive greener."

  • Page 240
    ... CUSTOMERS Connected Drive "There's an app for the iPhone that shows how green your driving is. That earns you stars. If you drive in a really environmentally friendly way, and don't use much petrol, you get lots of stars." Dominik Meyer, 11 years old, explains how the MINIMALISM Analyser works...

  • Page 241
    ... fuel consumption data and analyses it at the end of the trip to highlight the roads where the MINI was driven most efficiently. It also offers tips on how to get even better mileage. Points are earned for particularly fuel-thrifty driving and can be posted via iPhone to share with other members...

  • Page 242
    ... for the future. The sensor data and information from Connected Drive perfectly complement the fuel-saving features of the Efficient Dynamics technology package. With these and its many other applications, Connected Drive helps save both time and fuel, creates smarter traffic ï¬,ows, makes mobility...

  • Page 243
    PROFITABILITY GLOBAL BALANCE CUSTOMERS GROWTH FUTURE Stable performance in an age of global market ï¬,uctuations

  • Page 244
    ... the value creation process as independent as possible from market and exchange rate cycles, we rely on instruments such as natural hedging, besides financial hedging. From that perspective, the expansion of the BMW plant in Spartanburg in the US represents an important strategic step towards value...

  • Page 245
    ... is one of the most important sites in the BMW Group's production network. To manufacture the new BMW X3, the plant recently underwent a roughly 750-million-dollar expansion. In this way, the BMW Group is using natural hedging to provide even ï¬,exibility regarding exchange rate ï¬,uctuations.

  • Page 246
    ...000 vehicles per day, including BMW X5 and X6 models. Plant manager Josef Kerscher certainly has his work cut out. Spartanburg, South Carolina, USA, 20 January 2011 Access control at the gates to the plant 10:33 a.m. "No country has felt the recent ups and downs in the markets and whole economies...

  • Page 247
    ... building cars in Spartanburg since 1994 - which has always helped us to optimise our global value creation process. The decision to transfer production of the BMW X3, and to invest 750 million dollars in expanding our capacity from 150,000 to 240,000 vehicles per year, is another important step. We...

  • Page 248
    ... X family models manufactured at the BMW plant in Spartanburg involve a high percentage of local value creation. This includes purchasing in the NAFTA countries, the US, Canada and Mexico, as well as wage and manufacturing costs in the local currency. 70% US dollar Approx. Approx. 30% euro (and...

  • Page 249
    ... production should follow the market. But we have also seen it work the other way around: local manufacturing also helps develop a market. With the 7,000 jobs we have created here and a total investment of 4.6 billion dollars in the Spartanburg plant, we are now considered to be an American company...

  • Page 250
    58 PROFITABILITY Global balance A smile means this car passes the test. 4:05 p.m. Final vehicle inspection "It's been more than four years since I took over as manager of the Spartanburg plant. Back then, the euro was worth about 1.30 US dollars. Since, it's been up to about 1.60 and fallen ...

  • Page 251
    ...stay competitive in North America - regardless of how the dollar performs against the euro. We have increased our total purchasing volume in the NAFTA region by another 60 percent in readiness for the start of production of the BMW X3. And our purchasing office in Mexico City is working to boost the...

  • Page 252
    ... 267,160 183,328 BMW Group sales volumes in 2010 Key markets. BMW is the most popular European premium brand in the United States. The US is the BMW Group's second-largest market after Germany. Worldwide, the company sold almost 1.5 million vehicles last year. Like all natural hedging instruments...

  • Page 253
    HIGHLIGHTS OF 2010 The joy of charting a new course

  • Page 254
    MOMENTS OF SHEER PLEASURE More than 1.46 million customers became the proud owners of one of our new vehicles last year. BMW BMW BMW MINI BMW BMW 5 Series Sedan X3 5 Series Touring Countryman ActiveHybrid 7 R 1200 RT Motorcycle AUTO CHINA 2010 IN BEIJING BUILDING THE FUTURE 50 YEARS OF INDEPENDENCE

  • Page 255
    63 MOMENTS OF SHEER PLEASURE Our vehicles are as different as the people who drive them. But all of our customers share a very special moment full of joy: the moment they get to experience their vehicle for the first time.

  • Page 256
    ... to? "The perfect design of the new BMW 5 Series. Cool details like the BMW ConnectedDrive package. Knowing we made exactly the right choice." Florian Körner and Christina Middrup, 14 December 2010, BMW Welt Munich 1:55 p.m. - BMW Welt Munich: the joy of anticipation BMW 5 Series Sedan Sheer...

  • Page 257
    65 2:53 p.m. - BMW Welt Munich: the joy of driving 2:22 p.m. - BMW Welt Munich: the joy of perfection

  • Page 258
    66 HIGHLIGHTS Moments of sheer pleasure 9:55 a.m. - BMW Welt Munich: bright prospects

  • Page 259
    ... are you most looking forward to? "Reliability in all weathers. As well as the xDrive drive train - which can withstand any conditions." Reiner and Heike Haselhorst, 14 December 2010, BMW Welt Munich 11:23 a.m. - BMW Welt Munich: new beginnings BMW X3 Wherever the road takes you: With xDrive, the...

  • Page 260
    ... Moments of sheer pleasure What are you most looking forward to? "Travelling in a car that's not just elegant, but roomy enough for passengers and luggage - plus my Labrador." Ute Kleine and Klaus Trompeter, 15 December 2010, BMW Welt Munich 10:04 a.m. - BMW Welt Munich: a look of anticipation

  • Page 261
    ...:55 a.m. - BMW Welt Munich: a look inside BMW 5 Series Touring Convenient mobility means having exactly the type of vehicle the situation demands... way, the BMW 5 Series Touring is always elegant and ï¬,exible, with maximum versatility practically built in. 10:30 a.m. - BMW Welt Munich: a look ...

  • Page 262
    ... forward to? "To having a car that doesn't just carry all my gear but also makes a statement about my lifestyle as a professional sportsman: young, dynamic - always on the go." Michi Halilovic, 12 November 2010, MINI Munich 1:28 p.m. - MINI Munich: big moment 3:25 p.m. - MINI Munich: big space

  • Page 263
    71 2:05 p.m. - MINI Munich: big fun MINI Countryman The first four-door MINI is over four metres long - and yet still unmistakably MINI.

  • Page 264
    72 HIGHLIGHTS Moments of sheer pleasure 1:24 p.m. - BMW Hamburg: hands-on happiness BMW ActiveHybrid 7 The BMW ActiveHybrid 7 goes its own way - in design, driving dynamics, comfort, safety and efficiency. With its high-performance ActiveHybrid drive train, it brings luxury to the roads in its ...

  • Page 265
    ... I already know and appreciate from many years of driving BMW cars. And having the opportunity to now drive more fuel-efficiently with the innovative ActiveHybrid drive train." Bernd Schymetzki and Janine Klitz-Schymetzki, 17 December 2010, BMW Hamburg 1:10 p.m. - BMW Hamburg: shared excitement

  • Page 266
    ... - MINI Munich: First impressions MINI John Cooper Works Cabrio It's agile. It's fast. It is all about sporty driving fun with a modified 6-speed transmission and a high-performance engine. In other words, the MINI John Cooper Works Convertible is the ideal partner for anyone looking for a dynamic...

  • Page 267
    75 11:05 a.m. - MINI Munich: First-class driving fun! 10:21 a.m. - MINI Munich: First encounter

  • Page 268
    76 HIGHLIGHTS Moments of sheer pleasure Distinguished design Rolls-Royce Ghost Rolls-Royce is the best in this segment, and it's engaging, too. Everything is simple but functional, which is what modern means to me.

  • Page 269
    77 Exquisite elegance Why a Rolls-Royce? "I feel like I'm at home when I drive my Ghost." Simone Ceruti, Florence, Italy Refined ride

  • Page 270
    78 HIGHLIGHTS Moments of sheer pleasure 3:02 p.m. - BMW Motorcycle Centre Munich: all keyed up BMW R 1200 RT Motorcycle A sporty yet comfortable R 1200 RT touring bike clocks up tens of thousands of miles. But its fascination begins with the very first one.

  • Page 271
    ... to? "To a bike with a sporty design, powerful Boxer engine and optimum wind and weather protection. A bike that automatically guarantees a longer motorcycling season." Paul Sedlmaier, 26 November 2010, BMW Motorcycle Centre Munich 3:55 p.m. - BMW Motorcycle Centre Munich: all ready to go 3:28...

  • Page 272
    ... were built in collaboration with Chinese suppliers and demonstrate local technology potential. The BMW Group has also joined forces with the Chinese energy partners, State Grid and Southern Grid, and the China Automotive Technology and Research Centre ( CATARC ) to bring a ï¬,eet of MINI E cars to...

  • Page 273
    ... to the BMW Group's Board Member for Development, Klaus Draeger. 2 1 Tomorrow's mobility will be made in Leipzig. The BMW Group is transforming its Leipzig plant into Germany's first site for the production of emissions-free electric vehicles. Roughly 400 million euros will be invested in new...

  • Page 274
    ... Congress Hall in Munich 2 1 Declaration of independence. Fifty years ago, at an historic Annual General Meeting, BMW shareholders chose independence. Fifty years on, a special ceremony celebrates this momentous decision. The meaning of independence What people say about BMW BMW customer from the...

  • Page 275
    ... on the same spot in 2010. 4 BMW Chairman of the Board of Management Norbert Reithofer, Chairman of the General Works Council Manfred Schoch, Chairman of the Supervisory Board Joachim Milberg and Supervisory Board member Stefan Quandt. 4 3 BMW employee from Munich "BMW is more than an employer...

  • Page 276
    ... shapes and drives the company to this day. This was seen clearly at the gala event held at Munich's Theresienhöhe Congress Hall: The BMW Group remains true to itself by continuing to evolve, as it has done since its foundation. Apprentice at the Landshut plant " ...vehicles that are ahead of...

  • Page 277
    ... this path: developing innovative technologies, targeting new customer groups and actively shaping the future of individual mobility. This will build the foundation for long-term, profitable growth. We strive to be the best. That's what drives us, day after day. The Annual Report 2010 as an iPad...

  • Page 278

  • Page 279
    ...TOWARDS PRESERVING RESOURCES BMW Group Annual Report 2010 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 with...

  • Page 280
    VEHICLE 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 ...

  • Page 281
    ... cubic capacity 4 only available in selected EU countries 5 comes as standard with 6-gear M Sport automatic transmission Further information and constantly updated data for the vehicles is available on the Internet at www.bmw.com, www.mini.com and www.rolls-roycemotorcars.com. as of model year 2011

  • Page 282
    Published by Bayerische Motoren Werke Aktiengesellschaft 80788 Munich Germany Tel. +49 89 382-0