BMW 2010 Annual Report Download - page 14

12
12 GROUP MANAGEMENT REPORT
12 A Review of the Financial Year
14 General Economic Environment
18 Review of Operations
41 BMW Group – Capital Market
Activities
44 Disclosures relevant for takeovers
and explanatory comments
47 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 Figures
58 Comments on BMW AG
62 Internal Control System and
explanatory comments
63 Risk Management
70 Outlook
GROUP MANAGEMENT REPORT
A Review of the Financial Year
Highly successful financial year 2010 for the
BMW Group
With the global economic and financial crisis now coming
to an end, the global economy found itself well on the
road to recovery in 2010. Against this background, inter-
national
car markets also stabilised to a large extent.
Demand for premium vehicles grew strongly, particularly
in Asia and to a slightly lesser degree in the USA. The
BMW Group benefited from these developments and
strengthened its role as a leading provider in the premium
car segment with a range of new and attractive models.
The situation on international capital markets also con-
tinued to ease generally in 2010, and thus had a positive
impact on our Financial Services business.
With the economy recovering on a broad footing, we
were able to record a sharp rise in the number of cars
sold. Sales volume growth gathered even more momen-
tum during the second half of the year. In total we sold
1,461,166 BMW, MINI and Rolls-Royce cars worldwide
during the year under report (+13.6%), and thus achieved
one of the best sales volume performances in the history
of the Group.
Our Motorcycles business performed well in 2010 de-
spite continuing unfavourable market conditions. A total
of 110,113 BMW and Husqvarna brand motorcycles was
sold worldwide, 9.7% up on the previous year’s figure.
The Financial Services segment also made an important
contribution to the success of the BMW Group and
3,190,353 credit financing and lease contracts were in
place with dealers and retail customers at 31 December
2010 (+ 3.4%).
Record figures for both revenues and earnings
The sharp rise in sales volumes enabled the BMW Group
to achieve new records for Group revenues and earnings.
Revenues in 2010 amounted to euro 60,477 million, 19.3%
higher than in the previous year. Earnings performed
similarly well: the profit before financial result (EBIT) rose
steeply to euro 5,094 million (2009: euro 289 million)
and the profit before tax amounted to euro 4,836 million
(2009: euro 413 million).
Revenues in the Automobiles segment increased by al-
most a quarter to euro 54,137 million (+23.8%). Segment
EBIT turned around from a negative euro 265 million in
2009 to a positive euro 4,355 million in 2010. The seg-
ment recorded profit before tax of euro 3,887 million for
the year (2009: loss before tax of euro 588 million).
The good sales volume performance recorded by the
Motorcycles segment was also reflected in a sharp rise in
revenues in 2010. Compared to the previous year, seg-
ment revenues increased by 22.0% to euro 1,304 million.
Segment EBIT amounted to euro 71 million (2009: euro
BMW Group Revenues by region
in euro million
60,000
52,500
45,000
37,500
30,000
22,500
15,000
7,500
06 07 08 09 10
Rest of Europe 18,440 22,395 20,693 16,989 18,581
Asia / Oceania 6,200 7,353 7,523 8,495 14,776
North America 11,779 12,161 12,461 11,724 12,966
Germany 10,601 11,918 10,739 11,436 11,207
Other markets 1,979 2,191 1,781 2,037 2,947
Total 48,999 56,018 53,197 50,681 60,477
Rest of Europe
North America
Germany
Asia / Oceania
Other markets