BMW 2012 Annual Report Download - page 7

7 REPORT OF THE SUPERVISORY BOARD
Dear Shareholders and Shareholder Representatives,
Despite the persisting sovereign debt crisis in the eurozone and the volatile economic conditions prevail-
ing in several of our major markets, the BMW Group finished yet another financial year with an outstanding
overall result.
In our capacity as Supervisory Board, we closely monitored the performance of the BMW Group and
developments on specific markets throughout the financial year 2012. We duly advised the Board of Manage-
ment in matters of governance and continuously supervised its running of the business with great diligence.
In this endeavour we laid great store on an open, trusting and constructive exchange of information and
opinions.
Main emphases of the Supervisory Board’s monitoring and advisory activities We deliberated regularly
on the current performance and financial position of the BMW Group in a total of five meetings. Other areas
reported on and discussed extensively during the year were corporate strategy and planning, risk provision
and risk management, and corporate governance. We also made decisions with respect to the composition
of the Board of Management and the allocation of duties to Board of Management members. 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. In addition, the Chair-
man of the Board of Management, Dr. Reithofer, informed me directly about major business transactions and
projects. Dr. Kley, the Chairman of the Supervisory Board’s Audit Committee, regularly exchanged informa-
tion with Dr. Eichiner, the Board of Management member responsible for Finance and Financial Reporting.
In its regular reports on the financial condition of the Group, the Board of Management provided us with
detailed descriptions of sales volume performance and market developments for each of the Automotive
and Motorcycles segments as well as the performance of Financial Services, including new business volumes
and the development of vehicle residual values on key markets. The Board of Management also regularly
reported on the Group’s business activities in China, in particular on the sales situation there, the further
expansion of production capacities at the BMW Brilliance joint venture’s manufacturing sites in Dadong and
Tiexi, and on engine production at the Foresight engine plant opened in Shenyang in April 2012. Further-
more, the Board of Management reported to us regularly on current earnings, profitability and major changes
in the workforce size. Its business status reports also dealt with major current activities and projects, such
as ongoing developments in the BMW Peugeot Citroën Electrification joint venture, the status of cooperation
negotiations and agreements with Toyota in the fields of fuel cells, lightweight-construction, development of
sports cars as well as in the field of battery technology research. After presentation of reports by the Board of
Management, the two boards also discussed current challenges such as current economic developments and
the increasing degree of regulation on a number of markets.
We again gave careful consideration to matters concerning the performance, management and future
prospects of the Financial Services segment. One of the main focuses of reporting and discussion was the
segment’s financing model. The Board of Management described the current status of projects and the various
measures employed to ensure access to financial resources, including, for example, the use of asset-backed
securities and the expansion of BMW Bank GmbH in Europe.
One of the 2012 Supervisory Board meetings was held at the BMW plant in Leipzig, where we took the
opportunity to obtain information on the use of carbon-fibre-reinforced plastics (CFRP) in the BMW i family
of electrically powered vehicles and enquire into the state of preparations for production start-up later this
year. In the new pressing plant specially constructed for this work, we were treated to a practical demonstration
of how CFRP mats are processed to form CFRP components.