BMW 2012 Annual Report Download - page 31

31 COMBINED GROUP AND COMPANY MANAGEMENT REPORT
Financial Services segment remains on
growth course
Despite fluctuations on international capital markets,
the Financial Services segment achieved another
good performance in 2012 with its attractive range of
products and continued to grow. Overall 3,846,364
credit financing and lease contracts were in place with
dealers and retail customers at the end of the reporting
period (2011: 3,592,093 contracts; + 7.1 %). In balance
sheet terms, the segment’s business volume rose by
€ 5,729 million to € 80,974 million (2011: € 75,245 mil-
lion; + 7.6 %).
The Financial Services segment operates in more than
50 countries worldwide as partner to the sales organi-
sation,
with activities comprising 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 lease of BMW Group brand
cars and motorcycles to retail customers is the largest
line of business. The BMW Group operates its inter-
national multi-brand fleet business under the brand
name “Alphabet International”, providing mobility
solutions in 19 countries. This includes first and fore-
most the financing of corporate car requirements as
well as the comprehensive management of corporate
car fleets. Within the multi-brand financing line of
business, credit financing, leasing and other services
are marketed to retail customers under the brand
name “Alphera”. The Financial Services segment also
supports the dealer organisation by providing financ-
FINANCIAL SERVICES SEGMENT
ing for inventories, real estate and equipment. The
segment’s range of products is rounded off by the pro-
vision of insurance and banking services.
Significant growth in new business
Credit and leasing business with retail customers saw
further dynamic growth in 2012, with 1,341,296 new
contracts signed worldwide, 12.1 % more than last year
(2011: 1,196,610 contracts).
Double-digit growth rates were achieved in both lines
of financing, with lease business up by 16.3 % and credit
financing by 10.0 % compared to the previous year. Leas-
ing accounted for 33.8 % of total new business, credit
financing for 66.2 %.
The proportion of new BMW Group cars leased and
financed by the Financial Services segment was 40.4 %,
marginally lower than one year earlier (2011: 41.1 %;
– 0.7 percentage points).
In the used car financing line of business, a total of
303,490 new contracts were signed during 2012,
marginally up (+ 0.6 %) on the previous year (2011:
301,539 contracts).
The total volume of all new credit and leasing contracts
concluded with retail customers during the period
under report amounted to € 36,664 million, 15.4 % up on
the preceding year (2011: € 31,779 million).
A total of 3,534,620 retail customer contracts was in
place at 31 December 2012, 6.7 % more than one year
earlier (2011: 3,311,809 contracts). All regions con-
tributed to the increase in business volume, with the
contract portfolio rising by 9.8 % in the Europe / Middle
East region, 5.2 % in the Americas region and 1.1 % in
the EU-Bank region. The sharpest increase was recorded
in the Asia / Pacific region (+ 24.2 %).
Contract portfolio of Financial Services segment
in 1,000 units
3,800
3,600
3,400
3,200
3,000
2,800
2,600
08 09 10 11 12
3,032 3,086 3,190 3,592 3,846
BMW Group new vehicles financed by
Financial Services segment
in %
50
40
30
20
10
08 09 10 11 12
Financing 20.9 24.7 24.1 20.0 20.7
Leasing 27.6 24.3 24.1 21.1 19.7