BMW 2011 Annual Report Download - page 75

75 COMBINED GROUP AND COMPANY MANAGEMENT REPORT
demonstrate the BMW Group's expertise in the field of
lightweight construction. At the same time we are also
expanding our field trials with a test fleet of more than
1,000 all-electric-powered BMW ActiveE vehicles to test
whether the mass production of electric vehicles is fea-
sible. Drive components and energy storage systems
for the series development of the BMW i 3 are also being
tested in the ActiveE.
The BMW Group remains confident, despite volatile
economic conditions, and we are therefore targeting
new all-time highs for sales volume and Group profit
before tax for the financial year 2012. These forecasts
are based on the assumption that general economic
conditions remain stable.
Automotive segment
Numerous vehicle innovations plus the success of the
existing model range give good reason to believe that
the Automotive segment will again perform well in
2012. Assuming political and macro-economic con-
ditions remain stable, we forecast sales volume growth
in the single-digit range and hence a new sales volume
record. Revenues and earnings are also expected to
develop positively in 2012. The new BMW 3 Series, which
has been available on markets worldwide since its
launch in February, is likely to provide considerable im-
petus for growth.
We forecast an EBIT margin of between 8 % and 10 % as
well as a return on capital employed (RoCE) in excess
of 26 % for the Automotive segment. Depending on
political
and economic developments, actual margins
could end up being above or below the targeted range.
The financial position of the Automotive segment is
also
set to remain strong in 2012.
Given the rise in the sales volume growth forecast for
2012, the BMW Group intends to remain the foremost
premium car manufacturer in the coming year.
Motorcycles segment
The Motorcycles segment intends to break new ground
with its move into urban mobility. The market launches
of the BMW Scooter and the Husqvarna street
motor-
cycles are expected to boost sales volumes in 2012, and
should also be reflected in revenues and earnings figures.
Financial Services segment
We expect the Financial Services segment to continue
to perform strongly in 2012. Major fluctuations on
international financial markets that impinge on the real
economy will nevertheless remain a source of uncer-
tainty
in the coming year. Should the debt crisis
become acute, we will still be in a position to limit the
impact on our performance by employing the instru-
ments we have developed and put in place to mitigate
risk.
We forecast that credit risks and residual value risks
will continue to stabilise. By contrast, the level of risk in
southern European countries particularly affected by
the debt crisis will remain high.
We intend to continue the process of expanding the
BMW
Bank in 2012. As a credit institution operating
throughout Europe, the BMW Bank is already enjoying
the benefits of greater flexibility in the areas of liquidity
and equity capital management. A further important
step for the segment will be to integrate the entities of
the ICL Group (acquired in the second half of the year)
in the BMW Group’s fleet business.
Based on the assumption that macroeconomic condi-
tions remain stable in 2012, we forecast that the Finan-
cial
Services segment’s contract portfolio will continue
to grow, benefiting both revenues and earnings. In these
circumstances, the RoE should once again be no lower
than 18 %.
Outlook for 2013
Provided that economic conditions remain stable over-
all, we forecast a further growth for the BMW Group
in 2013, with higher business volumes having a positive
impact on revenues and earnings.
New and attractive models will be added to the product
range over the course of 2012. For the Automotive
seg-
ment we forecast that revenues will be higher than
in the previous year and that in terms of rates of return,
we will once again achieve an EBIT margin of between
8 % and 10 % and a RoCE of more than 26 %. The Finan-
cial
Services segment is expected to maintain its dynamic
growth rate and generate a further increase in the con-
tract portfolio. The RoE target for the segment is
un-
changed at 18 %. Depending on political and economic
developments, margins could be above or below the tar-
geted range.