BMW 2011 Annual Report Download - page 18

18
18 COMBINED GROUP AND COMPANY
MANAGEMENT REPORT
18 A Review of the Financial Year
20 General Economic Environment
24 Review of Operations
43 BMW Stock and Capital Market
46 Disclosures relevant for takeovers
and explanatory comments
49 Financial Analysis
49 Internal Management System
51 Earnings Performance
53 Financial Position
56 Net Assets Position
59 Subsequent Events Report
59 Value Added Statement
61 Key Performance Figures
62 Comments on BMW AG
66 Internal Control System and
explanatory comments
67 Risk Management
73 Outlook
COMBINED GROUP AND COMPANY MANAGEMENT REPORT
A Review of the Financial Year
Record-breaking year for BMW Group
The BMW Group experienced the best year of its corpo-
rate history in 2011, selling 1,668,982 BMW, MINI and
Rolls-Royce brand cars (+ 14.2 %); this was more than
ever before in an annual period. With this performance,
the BMW Group retains the pole position in the premium
segment of the world’s car markets.
Sales volumes grew dynamically for all three car brands,
each of them recording their best levels ever. Sales of
BMW brand cars alone rose by 12.8 % to 1,380,384 units.
A total of 285,060 units of the MINI brand were handed
over to their new owners (+ 21.7 %). At 3,538 units,
Rolls-Royce
set a new sales volume record, posting an
increase of 30.5 % on the previous year.
The Motorcycles segment put in another highly stable
performance despite persistently unfavourable market
conditions. In total, we handed over 113,572 BMW and
Husqvarna brand motorcycles to customers during the
year under report, 3.1 % more than in 2010.
Financial Services business also made an important con-
tribution to the success of the BMW Group. With a
portfolio of 3,592,093 contracts in place with dealers
and retail customers at the end of the year, the segment
recorded growth of 12.6 %.
New records set both for revenues and earnings
Group revenues and earnings broke all existing records
on the back of dynamic car sales volume growth and
flourishing financial services business. Revenues in
2011 totalled € 68,821 million, 13.8 % higher than in the
previous year. Earnings were also strong, with profit
before financial result (EBIT) up by 56.9 % to € 8,018
million and profit before tax up by 52.1 % to € 7,383 mil-
lion.
The Automotive segment recorded a 16.8 % increase in
revenues to € 63,229 million, with EBIT soaring to € 7,477
million (+ 71.7 %) and segment profit before tax reaching
€ 6,823 million (+ 75.5 %).
Motorcycle segment revenues grew by 10.1 % to € 1,436
million on the back of good sales volume performance.
EBIT fell by 36.6 % to € 45 million, primarily due to re-
structuring measures taken at the level of Husqvarna.
These measures also caused segment profit before tax to
drop to € 41 million (– 36.9 %).
The Financial Services segment also performed ex-
tremely well, posting a 5.4 % increase in revenues to
€ 17,510 million. In earnings terms, segment EBIT rose
by 46.8 % to € 1,763 million and segment profit before
tax by 47.4 % to € 1,790 million.
BMW Group Revenues by region
in € million
67,500
60,000
52,500
45,000
37,500
30,000
22,500
15,000
7,500
07 08 09 10 11
Rest of Europe 22,395 20,693 16,989 18,581 20,956
Asia / Oceania 7,353 7,523 8,495 14,776 19,216
North America 12,161 12,461 11,724 12,966 12,905
Germany 11,918 10,739 11,436 11,207 12,859
Other markets 2,191 1,781 2,037 2,947 2,885
Total 56,018 53,197 50,681 60,477 68,821
Rest of Europe
North America
Germany
Asia / Oceania
Other markets