BMW 2011 Annual Report Download - page 7

7 REPORT OF THE SUPERVISORY BOARD
Ladies and Gentlemen,
The BMW Group finished the financial year 2011 with sales volume, results and profitability at record
levels and consolidated its position as market leader in the premium car segment. Despite volatile business
conditions, the BMW Group experienced the best year of its corporate history in 2011. Throughout the year,
the Supervisory Board monitored business performance with great interest, supervised the activities of the
Board of Management continuously and diligently, and assisted it in an advisory capacity in the planning of
all major undertakings. Discussions with the Board of Management were always conducted constructively
and in an atmosphere of trust.
Main emphases of the Supervisory Board’s monitoring and advisory activities In a total of five meetings,
we deliberated in particular on the BMW Group’s current performance and financial position, corporate
strategy and business plans, risk provision and risk management, the Board of Management’s compensation
system, and corporate governance issues. The Board of Management informed us regularly and promptly
of sales performance, workforce developments and other significant matters, both at scheduled meetings
and at other times as the need arose. Furthermore, the Chairman of the Board of Management informed me
personally and regularly of important business transactions and projects. As well as at scheduled meetings,
Mr Kley, the Chairman of the Audit Committee, was also in regular contact with Mr Eichiner, the Board of
Management member responsible for finance and accounting.
The Board of Management reported to us regularly on sales volume developments in the Automotive and
Motorcycles segments, new business volumes in the Financial Services segment, changes in vehicle residual
values on key markets as well as earnings and profitability during the year. We also took the opportunity at
meetings with the Board of Management to discuss current challenges such as the impact of the catastrophe
in Japan on the BMW Group’s production network. The Board of Management reported in depth on the efforts
of the BMW Task Force to guarantee the supply of parts and components to production lines. Together
with the Board of Management we also discussed the planning of production capacities as well as the in-
creasing
difficulties experienced in importing vehicles to certain markets. The Board of Management re-
ported on significant transactions for the BMW Group, such as the commencement of the BMW Peugeot
Citroën Electrification joint venture, the purchase of the Fleet Management Division from the Dutch bank
ING, the acquisition of a strategic investment in SGL Carbon SE, the intention to cooperate with
Toyota
Motor Corporation in basic research for battery cell technology and the signing of a contract with Toyota
Motor Europe SA for the supply of diesel engines from 2014 onwards. The Board of Management also reported
on the activities of the BMW Group in China, particularly on sales developments, the progress made in ex-
panding production capacities in Shenyang and the support provided to the joint venture with Brilliance in
its efforts to develop a new brand for a New Energy Vehicle.
The performance, management and organisation of the Financial Services segment was also a key item
on the agenda in 2011. In this connection the Board of Management reported to us, among other topics,
on the status and the further steps being taken in various EU countries to expand BMW Bank GmbH into
EU-Bank.