BMW 2011 Annual Report Download - page 31

31 COMBINED GROUP AND COMPANY MANAGEMENT REPORT
Record figures for Financial Services segment
The financial year 2011 was an extremely successful one
for the Financial Services segment, despite the turbu-
lence on international financial markets. At the end of
the period under report, the segment was managing
a
portfolio of 3,592,093 lease and credit financing
con-
tracts with retail customers and dealers (2010: 3,190,353
contracts; + 12.6 %). This figure includes 252,870 con-
tracts of the ICL Group. The business volume of the seg-
ment
measured in balance sheet terms also grew in 2011,
rising
by 13.6 % to € 75,245 million (2010: € 66,233 mil-
lion).
The acquisition of the ICL Group – undertaken as
part
of a new strategy in the field of fleet business – was
an important aspect of this expansion (€ 3,647 million).
The Financial Services segment offers individual solu-
tions for the mobility requirements of private and busi-
ness customers alike and, with its attractive range of
products, serves as a reliable partner to the sales organi-
sation in more than 50 countries around the world. The
segment comprises the following six lines of business:
1. Lease and credit financing of BMW Group vehicles
for retail customers
2. Lease and credit financing for fleet customers / fleet
management
3. Multi-brand financing
4. Dealer financing
5. Insurance
6. Banking
Credit financing and the leasing of BMW, MINI and
Rolls-Royce brand cars and motorcycles to retail
customers represent the largest line of business. Multi-
brand business, operated under the brand name
“Alphera”, involves the financing of the BMW Group's
brands as well as vehicles of other manufacturers. The
Financial Services segment also offers fleet business
services under the brand name “Alphabet”, covering
FINANCIAL SERVICES SEGMENT
the financing of corporate car fleets and the provision
of an extensive range of services, including full fleet
management. Under these arrangements, the BMW
Group manages and finances both its own brand and
other brand vehicles. The Financial Services segment
offers inventories, real estate and equipment financing
products for dealers. The segment’s range of products
is rounded off by the provision of selected insurance
and banking services.
Dynamic growth of new business
Lease and credit financing business with retail custom-
ers once again made a significant contribution to the
segment’s success in 2011. 1,196,610 new contracts were
signed during the period under report, 10.5 % more
than in the previous year (2010: 1,083,154 contracts).
The number of new contracts of the ICL Group was
21,836. The volume of new business was greater than in
the preceding year, both for credit financing (+ 4.6 %)
and leasing (+ 25.0 %; adjusted for the ICL Group: + 18.2 %).
The proportion of new BMW Group cars
leased or
financed by the segment fell by 7.1 percentage points to
41.1 %, mainly reflecting the fact that the figures for
the Chinese market were taken into account for the first
time following the commencement of Financial Services
business in China. The proportion of leased or financed
new cars on this market is significantly lower than the
average for other markets, reflecting the difference in
Chinese consumer behaviour.
In the used car financing line of business, 301,539 new
contracts were signed in the period under report, 5.1 %
fewer than in the previous year.
The total volume of all new credit and leasing contracts
concluded with retail customers amounted to € 31,779
million at the end of 2011 and was thus 13.3 % up on one
year earlier (including ICL Group: € 411 million).
Contract portfolio of Financial Services segment
in 1,000 units
3,600
3,400
3,200
3,000
2,800
2,600
2,400
07 08 09 10 11
2,630 3,032 3,086 3,190 3,592
BMW Group new vehicles financed by
Financial Services segment
in %
50
40
30
20
10
07 08 09 10 11
Financing 17.4 20.9 24.7 24.1 20.0
Leasing 27.2 27.6 24.3 24.1 21.1