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ANNUAL REPORT
2013

Table of contents

  • Page 1
    annual RepoRt 2013

  • Page 2
    ...bmw gRoup in FiguRes RepoRt oF the supeRvisoRy boaRd statement oF the ChaiRman oF the boaRd oF management Combined management RepoRt General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development Report on Economic Position 24 Overall Assessment by Management...

  • Page 3
    ...2.7 2.3 7.8 Rolls-Royce Total Motorcycles segment Sales volume3 BMW 87,306 98,047 104,286 106,358 115,215 8.3 Production volume4 BMW 82,631 99,236 110,360 113,811 110,127 - 3.2 Financial Services segment New contracts with retail customers Workforce at end of year 5 BMW Group 1 1,015...

  • Page 4
    4 BMW Group in figures 2009 Financial figures in â,¬ million Capital expenditure Depreciation and amortisation Operating cash flow 1 Revenues Automotive Motorcycles Financial Services Other Entities Eliminations Profit before financial result (EBIT) Automotive Motorcycles Financial Services Other ...

  • Page 5
    ...BMW Group in figures Sales volume of automobiles* in thousand units 1,900 1,800 1,700 1,600 1,500 1,400 1,300 Revenues in â,¬ billion 75 70 65 60 55 50 45 09 10 11 12 13 09 10 11 12 13 1,286.3 * 1,461.2 1,669.0 1,845.2 1,963.8 50.7 60.5 68.8 76.8 76.1 Includes cars manufactured...

  • Page 6
    6 Joachim Milberg Chairman of the Supervisory Board

  • Page 7
    ... of the Financial Services segment, including new retail business volumes, the size of the contract portfolio with dealers and retail customers, total business volume and the development of vehicle residual values on major markets. The business status reports provided by the Board of Management also...

  • Page 8
    ... its annual review of the Group's Strategy Number ONE, including various potential risk scenarios. The Board of Management reported on the distribution of sales volume and added value, focusing in particular on the latest status of projects in China and on plans for building further production sites...

  • Page 9
    ...appropriateness of results, we reviewed the comparable trends for business performance and Board of Management compensation on a multi-year basis. We also gave general consideration to the development of the remuneration of executive managers and employees of BMW AG within Germany over the course of...

  • Page 10
    ... Long-term Business Forecast and the Annual Strategic Review, were dealt with on the basis of written and oral reports provided by Board of Management members and senior department heads. The Head of Financial Services, for instance, reported to us on segment strategy, business developments, credit...

  • Page 11
    ... BoaRd The fee proposals for the audit of the year-end Company and Group Financial Statements 2013 and the review of the six-month Interim Financial Report were deemed appropriate by the Audit Committee. Subsequent to the Annual General Meeting 2013, the Audit Committee therefore appointed KPMG AG...

  • Page 12
    ... Supervisory Board with effect from 31 March 2013, in order to take up a new management position within the BMW Group, the District Court of Munich - based on a proposal made by executive staff - appointed Dr Markus Schramm (Head of Aftersales Business Management and Mobility Services BMW Group) as...

  • Page 13
    ... with the BMW Group are key factors for its success and future prospects. We wish to express our appreciation to the members of the Board of Management and the entire workforce worldwide for their hard work and valuable contribution towards the successful financial statements for the year ended 31...

  • Page 14
    14 Norbert Reithofer Chairman of the Board of Management

  • Page 15
    ... reflect the day-to-day performance, know-how and personal commitment of our employees worldwide. All of us at the BMW Group share a passion for mobility. We identify with our Company and its products. All business areas performed well in 2013. On behalf of the Board of Management, I would like...

  • Page 16
    ... the three main economic regions of Europe, Asia and the Americas. Gains in the Americas and Asia compensated for weak markets in a number of European countries. In 2013, our two largest single markets, China and the US, accounted for around 20 and 19 %, respectively, of total Group sales, followed...

  • Page 17
    17 StateMent of the ChaiRMan of the BoaRd of ManageMent processes. Sustainable development is an investment in our future competitiveness. We have therefore set ourselves ambitious targets for 2020 in the relevant areas, namely products and services, production and value creation, and employees and...

  • Page 18
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 19
    ...Credit financing and the lease of BMW Group brand cars and motorcycles to retail customers is its largest line of business. The BMW Group's international multi-brand fleet business, operating under the brand name "Alphabet", provides fleet financing products and comprehensive management services for...

  • Page 20
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 21
    .... The most important of these additional value drivers are deliveries to customers, segment revenues and - as the key performance indicator for profitability - the operating return on sales (i.e. EBIT margin). Average carbon emissions for the fleet are also taken into account, reflecting their...

  • Page 22
    ...Automotive and Motorcycles segments (earnings before interest expense and taxes). 18 Combined management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and...

  • Page 23
    23 CoMBined ManageMent RepoRt General Information on the BMW Group Research and Development Research and development play a vital role for the BMW Group, given its broad range of products and the high number of new models. Our vehicles and services also set standards in terms of connecting car ...

  • Page 24
    ... BMW Stock and Capital Markets The BMW Group's performance in 2013 was positive overall and fully in line with our expectations. Good progress was made in terms of results of operations, financial position and net assets. This statement also takes into account events after the end of the reporting...

  • Page 25
    ... economies, such as India, Brazil and South Africa, lost a good deal of ground against the euro. The annual average exchange rate of the Russian rouble was 42.30 to the euro, making it 6 % weaker than in the previous year. Energy and commodity prices in the premium market in 2013, benefiting...

  • Page 26
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 27
    ... Sales volume Return on capital employed 1 Financial Services segment Return on equity units % increase - 115,215 (+ 8.3 %) 16.4 % > 18 20.2 BMW Group Profit before tax The BMW Group continued to chart a successful course in 2013 and - thanks to the sharp rise in the number of vehicles sold...

  • Page 28
    ...81 Internal Control System and Risk Management System Relevant for the Consolidated Financial Reporting Process 82 Disclosures Relevant for Takeovers and Explanatory Comments 85 BMW Stock and Capital Markets three brands proved their underlying strength by posting new sales volume records totalling...

  • Page 29
    ... CoMBined ManageMent RepoRt Report on Economic Position Review of Operations automotive segment Sales volume at new all-time high The BMW Group sold a total of 1,963,798* BMW, MINI and Rolls-Royce brand vehicles during the year 2013, the best sales volume performance ever achieved in the Company...

  • Page 30
    ...63 Report on Outlook, Risks and Opportunities 81 Internal Control System and Risk Management System Relevant for the Consolidated Financial Reporting Process 82 Disclosures Relevant for Takeovers and Explanatory Comments 85 BMW Stock and Capital Markets Sales volume of BMW vehicles by model variant...

  • Page 31
    ... respectively. The BMW X5, with a sales volume of 107,231 units, almost reached the previous year's high level despite the model change (- 1.2 %). The new X5 has been available to customers since November 2013. New sales volume high for MINI MINI brand cars in 2013 - analysis by model variant as...

  • Page 32
    32 Sales volume of Rolls-Royce vehicles by model variant in units 2013 18 Combined management RepoRt 18 General Information on the BMW Group 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance ...

  • Page 33
    ...BMW Group hired 700 new employees at its production plant in Leipzig in 2013, mainly to build up expertise and create capacity for its BMW i models, but also in the area of conventional carmaking. Moreover, two new pressing lines employing high-speed servo pressing technology were taken into service...

  • Page 34
    ... its tenth production anniversary during the year under report. Series production of the Rolls-Royce Wraith began at the plant in summer 2013. Flexible, standardised production system for engines introduced engines for the new Efficient Dynamics engine family deployed in BMW and MINI brand cars. At...

  • Page 35
    ... persistently difficult market conditions. In total, we sold 115,215 BMW motorcycles (2012: 106,358 units; + 8.3 %) worldwide. Motorcycle sales up in nearly all markets BMW Group - key motorcycle markets 2013 as a percentage of sales volume Germany Other USA Motorcycle sales in Europe rose to...

  • Page 36
    ... Control System and Risk Management System Relevant for the Consolidated Financial Reporting Process 82 Disclosures Relevant for Takeovers and Explanatory Comments 85 BMW Stock and Capital Markets The Financial Services segment again benefited from its attractive product range in 2013 and reported...

  • Page 37
    ... level. Average losses on residual value risks also decreased. Further information with respect to risks and opportunities related to Financial Services can be found in the section "Report on risks and opportunities". Demand for multi-brand financing increased again in 2013. In total, 181,605 new...

  • Page 38
    ...Research and Development 40 Purchasing 41 Sales and Marketing 42 Workforce 44 Sustainability 47 Results of Operations, Financial Position and Net Assets 56 Events after the End of the Reporting Period 63 Report on Outlook, Risks and Opportunities 81 Internal Control System and Risk Management System...

  • Page 39
    ... second main focus was on the traffic sign assistant, which, alongside a host of other features, informs the driver of current speed limits in traffic guidance systems or of approaching congestion. Awards for technological innovation and design Engines newly developed by the BMW Group were awarded...

  • Page 40
    ...Research and Development 40 Purchasing 41 Sales and Marketing 42 Workforce 44 Sustainability 47 Results of Operations, Financial Position and Net Assets 56 Events after the End of the Reporting Period 63 Report on Outlook, Risks and Opportunities 81 Internal Control System and Risk Management System...

  • Page 41
    ... ManageMent RepoRt sales and maRketing The worldwide sales network currently consists of some 3,250 BMW, 1,500 MINI and 120 Rolls-Royce dealerships. In China alone, more than 50 new BMW and MINI dealerships were opened in 2013. The number of dealerships in Europe was adapted to suit the current...

  • Page 42
    ...Research and Development 40 Purchasing 41 Sales and Marketing 42 Workforce 44 Sustainability 47 Results of Operations, Financial Position and Net Assets 56 Events after the End of the Reporting Period 63 Report on Outlook, Risks and Opportunities 81 Internal Control System and Risk Management System...

  • Page 43
    ... rose further during the year under report. The proportion of women in the BMW Group's workforce at 31 December 2013 stood at 17.4 % (BMW AG: 14.5 %). Particularly good progress was made regarding the number of women in management positions, with Employee attrition rate at BMW AG1 as a percentage of...

  • Page 44
    ...Research and Development 40 Purchasing 41 Sales and Marketing 42 Workforce 44 Sustainability 47 Results of Operations, Financial Position and Net Assets 56 Events after the End of the Reporting Period 63 Report on Outlook, Risks and Opportunities 81 Internal Control System and Risk Management System...

  • Page 45
    ...our cars sold in Europe (EU 27) stood at 133 grams per kilometre during the year under report. We also lead the field among German premium-segment manufacturers with carbon emissions of 139 g / km. In 2013 the BMW Group's fleet already included 39 models using less than 120 g CO2 / km. Our efficient...

  • Page 46
    ...Research and Development 40 Purchasing 41 Sales and Marketing 42 Workforce 44 Sustainability 47 Results of Operations, Financial Position and Net Assets 56 Events after the End of the Reporting Period 63 Report on Outlook, Risks and Opportunities 81 Internal Control System and Risk Management System...

  • Page 47
    ... Oceania region for 34.1 % (2012: 33.1 %) of business. Group Income Statement in â,¬ million 2013 Revenues Cost of sales Gross profit Selling and administrative expenses Other operating income Other operating expenses Profit before financial result Result from equity accounted investments Interest...

  • Page 48
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 49
    ...-for-sale marketable securities had a lower impact on the financial result. Overall, the segment profit before tax amounted to â,¬ 6,561 million (2012: â,¬ 7,170 million) and the effective tax rate was 32.8 % (2012: 34.2 %). In the Motorcycles segment, the number of BMW brand motorcycles handed...

  • Page 50
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 51
    ... of the Financial Services segment is driven primarily by cash flows relating to leased products and receivables from sales financing and totalled â,¬ 5,358 million (2012: â,¬ 4,192 million). Investing activities resulted in a cash in â,¬ million Cash and cash equivalents Marketable securities and...

  • Page 52
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 53
    ...money and capital market programmes of the BMW Group at 31 December 2013: The increase in non-current assets on the assets side of the balance sheet related primarily to property, plant and equipment (13.3 %), leased products (5.9 %), intangible assets (18. 7 %) and receivables from sales financing...

  • Page 54
    ... structure - Group Total equity and liabilities in â,¬ billion Non-current assets 18 Combined management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General...

  • Page 55
    ... ManageMent RepoRt period, leased products accounted for 18.7 % of total assets, similar to their level one year earlier (18.6 %). Adjusted for exchange rate factors, they went up by 8.1 %. Non-current receivables from sales financing accounted for 23.6 % (2012: 24.5 %) of total assets, current...

  • Page 56
    ...Internal Control System and Risk Management System Relevant for the Consolidated Financial Reporting Process 82 Disclosures Relevant for Takeovers and Explanatory Comments 85 BMW Stock and Capital Markets Overall, the earnings performance, financial position and net assets position of the BMW Group...

  • Page 57
    ... ManageMent RepoRt BMW Group value added statement 2013 in â,¬ million Work performed Revenues Financial income Other income Total output Cost of materials2 Other expenses Bought-in costs Gross value added Depreciation and amortisation Net value added Applied to Employees Providers of finance...

  • Page 58
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 59
    ...for the BMW Group and is described in the "Report on economic position" section of the Combined Management Report. BMW AG develops, manufactures and sells cars and motorcycles as well as spare parts and accessories manufactured by itself, foreign subsidiaries and external suppliers. Sales activities...

  • Page 60
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 61
    61 CoMBined ManageMent RepoRt BMW AG Income Statement in â,¬ million 2013 Revenues Cost of sales Gross profit Selling expenses Administrative expenses Research and development expenses Other operating income and expenses Result on investments Financial result Profit from ordinary activities Income ...

  • Page 62
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 63
    .... The outlook takes account of all information known up to the date on which the financial statements are authorised for issue and which could have a material impact on the course of business of the BMW Group. The expectations contained in the outlook are based on BMW Group's forecasts for 2014 and...

  • Page 64
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 65
    ..., enable the BMW Group to remain the world's foremost premium car manufacturer in 2014. We expect positive momentum to be generated by the introduction of new, attractive models and from the generally dynamic market conditions in North America and China. If the economic situation in Europe does not...

  • Page 66
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 67
    67 CoMBined ManageMent RepoRt new models will help to keep segment RoCE in line with last year's level (2013: 16.4 %). Financial Services segment in 2014 Return on equity: slight decrease expected Based on the latest forecasts, we expect the BMW Group's Financial Services business to remain on ...

  • Page 68
    68 Report on Outlook, Risks and Opportunities Risks Report Report on risks and opportunities 18 Combined management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management ...

  • Page 69
    ... the Group's results of operation, financial position and net assets. The level of risk is quantified, taking into account the probability of occurrence and risk mitigation measures. The risk management system is tested regularly by the Internal Audit. By sharing experiences with other companies on...

  • Page 70
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 71
    ... attributable to manufacturing equipment breakdowns, logistical disruptions or new vehicle production line start-ups - represent risks which the BMW Group counters with a broad range of appropriate measures. Production structures and processes are designed from the outset with a view to reducing...

  • Page 72
    ...supply risks is (in contrast to last year) classified as high, mainly due to the insufficient availability of raw materials in Asia. 18 Combined management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position...

  • Page 73
    ... Board of Management (of BMW AG) or the relevant Company management. Each entity has one or more Local Data Privacy Protection Officers. In the case of cooperation arrangements and business partner relationships, the BMW Group protects its intellectual property as well as its customer and employee...

  • Page 74
    ...on production costs. The price of crude oil, combined with exchange rate fluctuations, also has an impact on fuel prices, which, in turn, directly influence the purchasing behaviour of our customers and hence the overall demand for vehicles. The BMW Group counters this risk by developing and selling...

  • Page 75
    ... Services segment utilises a variety of rating systems in order to assess the creditworthiness of its contractual partners. Credit risks are managed at the time of the initial credit decision, based on a calculation of the present value of standard risk costs and subsequently, during the term...

  • Page 76
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 77
    ... and fixed costs. Efficiency improvement targets take account of past experience as well as the current composition of the product portfolio. Business process optimisation and strict cost control are essential to ensure good profitability and a high return on capital employed. The outlook is drawn...

  • Page 78
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 79
    ... greater added value for customers than currently expected, whilst at the same time looking for ways to boost sales volumes and achieve better selling prices. Developments in the field of digital communication are also opening up opportunities for marketing the BMW Group's various brands. Consumers...

  • Page 80
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 81
    ... control system and the risk management system, as far as they relate to individual entity and Group financial reporting processes, are described below. Information and communication Group level, thus ensuring that legal requirements and internal guidelines are complied with and that all business...

  • Page 82
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 83
    ... capital of BMW AG, the right to receive more than 50 % of the dividend or the right to direct the affairs of the Company or appoint the majority of members of the Supervisory Board. - A cooperation agreement concluded with Peugeot SA relating to the joint development and production of a new family...

  • Page 84
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 85
    ... report, when the price of BMW common stock was quoted at â,¬ 85.69 per share. The BMW Group has the best rating in the European automobile sector, thus giving it excellent access to international capital markets. Good year for stock markets on account of expansionary monetary policies Development...

  • Page 86
    ... management RepoRt 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Research and Development 24 Report on Economic Position 24 Overall Assessment by Management 24 General and Sector-specific Environment 27 Financial and Non-financial Performance Indicators 29 Review...

  • Page 87
    ... good access to international capital markets, it also benefits from attractive refinancing conditions, which are particularly helpful for the BMW Group's Financial Services business. Regular communication with capital markets continued interest shown in innovation days at the BMW plant in Leipzig...

  • Page 88
    ... - 501 - 429 7,170 - 2,453 4,717 24 4,693 Revenues Cost of sales Gross profit Selling and administrative expenses Other operating income Other operating expenses Profit / loss before financial result Result from equity accounted investments Interest and similar income Interest and similar expenses...

  • Page 89
    ...327 2012 -14,405 13,391 - 1,014 9 -75 131 - 949 - -1,672 1,684 - 12 - 937 323 - 614 - - 614 Revenues Cost of sales Gross profit Selling and administrative expenses Other operating income Other operating expenses Profit / loss before financial result Result from equity accounted investments Interest...

  • Page 90
    ... information) in â,¬ million 1.1. 2012* (adjusted) 2013 2012* Intangible assets Property, plant and equipment Leased products Investments accounted for using the equity method Other investments Receivables from sales financing Financial assets Deferred tax Other assets Non-current assets...

  • Page 91
    ... Leased products Investments accounted for using the equity method Other investments Receivables from sales financing Financial assets Deferred tax Other assets Non-current assets Inventories Trade receivables Receivables from sales financing Financial assets Current tax Other assets Cash and cash...

  • Page 92
    .../ loss on disposal of tangible and intangible assets and marketable securities Result from equity accounted investments Changes in working capital Change in inventories Change in trade receivables Change in trade payables Change in other operating assets and liabilities 88 gRoup FinanCial statements...

  • Page 93
    ... Change in leased products Change in receivables from sales financing Change in deferred taxes Other non-cash income and expense items Gain / loss on disposal of tangible and intangible assets and marketable securities Result from equity accounted investments Changes in working capital Change in...

  • Page 94
    94 BMW Group Group Statement of Changes in Equity in â,¬ million Note Subscribed capital Capital reserves Revenue reserves1, 2 1 January 2012, as originally reported Impact of application of revised IAS 19 1 January 2012 (adjusted) Dividends paid Net profit Other comprehensive income for the ...

  • Page 95
    95 gRoup finanCial StateMentS Accumulated other equity Equity attributable to shareholders 2 of BMW AG Derivative financial instruments Minority interest Total 2 Translation differences Securities - 863 - - 863 - - -128 - 128 - - 7 - 984 - 61 - - 61 - - 169 169 - - - 108 - 750 - - 750 - - ...

  • Page 96
    ... by statements of cash flows for the Automotive and Financial Services segments. This supplementary information is unaudited. In order to facilitate the sale of its products, the BMW Group provides various financial services - mainly loan and lease financing - to both retail customers and dealers...

  • Page 97
    ... Statements and the Combined Management Report can be downloaded from the BMW Group website at www.bmwgroup.com / ir. The Board of Management authorised the Group Financial Statements for issue on 20 February 2014. 2 Consolidated companies The BMW Group Financial Statements include, besides BMW AG...

  • Page 98
    ... in the Group Financial Statements at the average exchange rate for the year, and assets and liabilities are translated at the closing rate. Exchange differences arising from the translation of shareholders' equity are offset directly against accumulated other equity. Exchange differences arising...

  • Page 99
    ... using uniform accounting policies in accordance with IAS 27 (Consolidated and Separate Financial Statements). Revenues from the sale of products are recognised when the risks and rewards of ownership of the goods are transferred to the dealer or customer, provided that the amount of revenue can be...

  • Page 100
    ... Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 145 Other Disclosures 161 Segment Information Factory and office buildings...

  • Page 101
    ... and past experience. Cash flows of the Automotive and Motorcycles CGUs are discounted using a risk-adjusted pre-tax weighted average cost of capital (WACC) of 12.0 % (2012: 12.0 %). In the case of the Financial Services CGU, a sector-compatible pre-tax cost of equity capital of 13.4 % (2012: 13...

  • Page 102
    ...-market interest rate are discounted. Appropriate impairment losses are recognised to take account of all identifiable risks. Receivables from sales financing comprise receivables from retail customer, dealer and lease financing. Impairment losses on receivables relating to financial services...

  • Page 103
    ... are no quoted prices on active markets for derivative financial instruments, credit risk is taken into account as an adjustment to the fair value of the financial instrument. The BMW Group applies the option of measuring the credit risk for a group of financial assets and financial liabilities on...

  • Page 104
    ... future lease payments and disclosed under other financial liabilities. 88 gRoup FinanCial statements 88 Income Statements 88 Statement of Comprehensive Income 90 Balance Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes...

  • Page 105
    ...the Financial Services segment in 2013 was also not material. Further information is provided in note 24. The bad debt risk relating to receivables from sales financing is assessed regularly by the BMW Group. For these purposes, the main factors taken into consideration are past experience, current...

  • Page 106
    ... income from plan assets. The statement of total comprehensive income now includes the line item "Remeasurement of the net defined benefit liability for pension plans". In previous financial statements (up to the Group Financial Statements for the year ended 31 December 2012), the corresponding...

  • Page 107
    ... statement Change in Group Balance Sheet presentation 1 January 2012 in â,¬ million Total assets Total non-current assets thereof deferred taxes thereof non-current other assets1 Total current assets thereof current other assets1 Total equity thereof equity attributable to shareholders of BMW AG...

  • Page 108
    ... for pre-retirement part-time working arrangements â,¬ 4 million. 88 gRoup FinanCial statements 88 Income Statements 88 Statement of Comprehensive Income 90 Balance Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to...

  • Page 109
    ...Total assets Total non-current assets thereof deferred taxes thereof non-current other assets1 Total current assets thereof current other assets1 Total equity thereof equity attributable to shareholders of BMW AG thereof revenue reserves 2 Total non-current provisions and liabilities thereof pension...

  • Page 110
    ... benefit liability for pension plans (positive adjustment of â,¬ 136 million) and related deferred taxes (negative adjustment of â,¬ 27 million). 8 New financial reporting rules (a) Financial reporting rules applied for the first time in the financial year 2013 The following Standards, Revised...

  • Page 111
    ... price that would be received to sell an asset or paid to transfer a liability. Fair value measurement must take account of the characteristics of the asset or liability and be based on a market perspective. Similar to the approach already taken to the fair value measurement of financial instruments...

  • Page 112
    ... IASB Date of mandatory application EU Expected impact on BMW Group IAS 19 Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) 21. 11. 2013 1. 7. 2014 No Insignificant IAS 27 IAS 28 Separate Financial Statements Investments in Associates and Joint Ventures 12. 5. 2011 12...

  • Page 113
    ... accounted for as equity accounted investments - will be classified as joint operations, with the result that the BMW Group will then only account for its own share of assets, liabilities, revenues and expenses of the joint operations. If IFRS 11 were to have been applied in the financial year 2013...

  • Page 114
    ...556 76,848 An analysis of revenues by business segment and geographical region is shown in the segment information in note 49. 10 Cost of sales Cost of sales comprises: in â,¬ million Manufacturing costs Research and development expenses Warranty expenditure Cost of sales directly attributable to...

  • Page 115
    ... Group's share of earnings of the joint ventures DriveNow GmbH & Co. KG, Munich, and DriveNow Verwaltungs GmbH, Munich, is also included in the result from equity accounted investments. 14 Net interest result in â,¬ million Net interest income on the net defined benefit liability for pension plans...

  • Page 116
    ... attributable to fair value gains on interest rate and commodity derivatives. 88 gRoup FinanCial statements 88 Income Statements 88 Statement of Comprehensive Income 90 Balance Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114...

  • Page 117
    ... transfer pricing issues. Tax reductions due to tax-exempt income amounted to â,¬ 117 million (2012: â,¬ 89 million). The line "Other variances" comprises primarily reconciling items relating to the Group's share of results of equity accounted investments. The allocation of deferred tax assets and...

  • Page 118
    ... and marketable securities (recognised directly in equity), shown in the summary above in the line items "Other assets" and "Liabilities". A further â,¬ 349 million (2012*: decrease of â,¬ 528 million) related to the remeasurements of the net defined benefit liability for pension plans, shown...

  • Page 119
    119 gRoup finanCial StateMentS 17 Earnings per share 2013 Net profit for the year after minority interest Profit attributable to common stock Profit attributable to preferred stock Average number of common stock shares in circulation Average number of preferred stock shares in circulation Basic ...

  • Page 120
    ... Board of Management and share-based commitments to senior heads of department. In the case of the Employee Share Scheme, non-voting shares of preferred stock in BMW AG were granted to qualifying employees during the financial year 2013 at favourable conditions (see note 34 for the number and price...

  • Page 121
    ...net defined benefit liability for pension plans Available-for-sale securities Financial instruments used for hedging purposes Other comprehensive income for the period from equity accounted investments Exchange differences on translating foreign operations Other comprehensive income * 2013 Deferred...

  • Page 122
    ... the accounting policy for leased products as described in note 6. 3 This line includes the amendments described in note 24. 4 Including assets under construction of â,¬ 2,569 million. Analysis of changes in Group tangible, intangible and investment assets 2012 Acquisition and manufacturing cost in...

  • Page 123
    ..., factory and office equipment Advance payments made and construction in progress Property, plant and equipment Leased products3 Investments accounted for using the equity method Investments in non-consolidated subsidiaries Participations Non-current marketable securities Other investments 3,667 21...

  • Page 124
    ... in the analysis of changes in Group tangible, intangible and investment assets in note 21. Property, plant and equipment include a total of â,¬ 42 million (2012: â,¬ 46 million) relating to land and operational buildings used by BMW AG, BMW Tokyo Corp., BMW Osaka Corp., and BMW of North America LLC...

  • Page 125
    ... gRoup finanCial StateMentS 24 Leased products The BMW Group, as lessor, leases out its own products and those of other manufacturers as part of its finanin â,¬ million within one year between one and five years later than five years Minimum lease payments cial services business. Minimum lease...

  • Page 126
    ..., intangible and investment assets in note 21. If the Group's share of the at-equity result of BMW Brilliance Automotive Ltd., Shenyang, were reported as part of the Automotive segment's EBIT, the EBIT margin would increase by 0.6 percentage points to 10.0 %. 26 Receivables from sales financing...

  • Page 127
    127 gRoup finanCial StateMentS Allowances for impairment on receivables from sales financing developed as follows during the year under report: 2013 in â,¬ million Balance at 1 January Allocated / reversed Utilised Exchange rate impact and other changes Balance at 31 December Allowance for ...

  • Page 128
    ... by which the value of the investment funds exceeds obligations for part-time working arrangements (â,¬ 44 million; 2012: â,¬ 57 million) is reported under "Other financial assets". Investment funds are held to secure these obligations. These funds are managed by BMW Trust e. V., Munich, as part of...

  • Page 129
    ... include trade receivables of â,¬ 102 million (2012: â,¬ 189 million) and financial receivables of â,¬ 677 million (2012: â,¬ 549 million). They include â,¬ 253 million (2012: â,¬ 178 million) with a remaining term of more than one year. Receivables from other companies in which an investment is...

  • Page 130
    ... year under report: 2013 in â,¬ million Balance at 1 January Allocated / reversed Utilised Exchange rate impact and other changes 88 gRoup FinanCial statements 88 Income Statements 88 Statement of Comprehensive Income 90 Balance Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity...

  • Page 131
    131 gRoup finanCial StateMentS 33 Assets held for sale and liabilities in conjunction with assets held for sale In the financial year 2012 the Board of Management of BMW AG decided to realign the strategic direction of the Motorcycles segment in view of the changing nature of motorcycle markets, ...

  • Page 132
    ... the shareholders at the Annual General Meeting of BMW AG. It is therefore not recognised as a liability in the Group Financial Statements. Accumulated other equity minority interest of â,¬ 26 million in the results for the year (2012: â,¬ 26 million). Capital management disclosures The BMW Group...

  • Page 133
    ...finanCial StateMentS Equity attributable to shareholders of BMW AG increased during the financial year by 3.0 percentage points, mainly owing to the high net profit recorded for the year. In December 2013 the rating agency Standard & Poor's raised BMW AG's long-term rating by one notch from Company...

  • Page 134
    ..., in which the BMW Group has significant defined benefit plans: 88 gRoup FinanCial statements 88 Income Statements 88 Statement of Comprehensive Income 90 Balance Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to the...

  • Page 135
    ... the number of years of service or on the basis of an employee's final salary. The defined benefit plans have been closed to new entrants. With effect from 1 January 2014, new employees receive a defined contribution entitlement with minimum rate of return. The assets of the German pension plans are...

  • Page 136
    ... Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 145 Other Disclosures 161 Segment Information 1 January 2013 Expense / income Current service cost...

  • Page 137
    137 gRoup finanCial StateMentS in â,¬ million Defined benefit obligation Plan assets Total Limitation of the net defined benefit asset to the asset ceiling 3 - Net defined benefit liability 1 January 2012 Effect of first-time consolidation Expense / income Current service cost Interest ...

  • Page 138
    ... 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 145 Other Disclosures 161 Segment Information Plan assets 2013 - 5,782...

  • Page 139
    ... assumptions applied. The financial risk of longer-than-assumed life expectancy is hedged for the BMW Group's largest pension plan in the UK by means of a so-called "longevity hedge". In order to reduce currency exposures, a substantial portion of plan assets are either invested in the same currency...

  • Page 140
    ... Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 145 Other Disclosures 161 Segment Information The sensitivity...

  • Page 141
    ... social expenses comprise mainly performance-related remuneration components, early retirement part-time working arrangements and employee long-service awards. Obligations for performance-related remuneration components are normally settled in the following financial year. Provisions for obligations...

  • Page 142
    ...161 Segment Information Bonds Liabilities to banks Liabilities from customer deposits (banking) Commercial paper Asset backed financing transactions Derivative instruments Other Financial liabilities 29,852 9,484 13,018 4,577 9,411 1,790 1,375 69,507 The BMW Group uses various short-term and long...

  • Page 143
    ... paper: Issuer Issue volume in relevant currency (ISO-Code) EUR 2,127 million GBP 800 million USD 779 million BMW Malta Finance Ltd., St. Julians BMW US Capital, LLC, Wilmington, DE Weighted average maturity period (in days) 47.3 50.0 79.8 38.0 27.5 Weighted average nominal interest rate (in...

  • Page 144
    ... Total thereof due within one year 1,743 2,478 196 95 4,512 791 615 28 62 1,496 88 gRoup FinanCial statements 88 Income Statements 88 Statement of Comprehensive Income 90 Balance Sheets 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies...

  • Page 145
    ..., the BMW Group also has other financial commitments, primarily under lease contracts for land, buildings, plant and machinery, tools, office and other facilities. The leases run for periods of one to 45 years and in some cases contain extension and / or purchase in â,¬ million Nominal total of...

  • Page 146
    ... Receivables from sales financing Financial assets Derivative instruments Cash flow hedges Fair value hedges Other derivative instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other 88 gRoup FinanCial statements 88 Income Statements 88 Statement of...

  • Page 147
    ... instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other Cash and cash equivalents Trade receivables Other assets Receivables from subsidiaries Receivables from companies in which an investment is held Collateral receivables Other Total Fair value...

  • Page 148
    ... amount Assets Other investments Receivables from sales financing Financial assets Derivative instruments Cash flow hedges Fair value hedges Other derivative instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other Cash and cash equivalents Trade...

  • Page 149
    ... instruments Marketable securities and investment funds Loans to third parties Credit card receivables Other Cash and cash equivalents Trade receivables Other assets Receivables from subsidiaries Receivables from companies in which an investment is held Collateral receivables Other Total Fair value...

  • Page 150
    ... Statement of Comprehensive Income 122 Notes to the Balance Sheet 145 Other Disclosures 161 Segment Information Marketable securities, investment fund shares and collateral assets - available-for-sale Other investments - available-for-sale Derivative instruments (assets) Cash flow hedges Fair value...

  • Page 151
    151 gRoup finanCial StateMentS 31 December 2012 in â,¬ million Marketable securities, investment fund shares and collateral assets - available-for-sale Other investments - available-for-sale Derivative instruments (assets) Cash flow hedges Fair value hedges Other derivative instruments Derivative ...

  • Page 152
    ... Available-for-sale Gains and losses on sale and fair value measurement of marketable securities held for sale (including investments in subsidiaries and participations measured at cost) Net income from participations and investments Accumulated other equity Balance at 1 January Total change during...

  • Page 153
    ... value hedges. Fair value hedges are mainly used to hedge the market prices of bonds, other financial liabilities and receivables from sales financing. Bad debt risk In the case of performance relationships underlying non-derivative financial instruments, collateral will be required, information...

  • Page 154
    ... credit risk management. Every borrower's creditworthiness is tested for all credit financing and lease contracts entered into by the BMW Group. In the case of retail customers, creditworthiness is assessed using validated scoring systems integrated into the purchasing process. In the area of dealer...

  • Page 155
    ...debt structure. The BMW Group has good access to capital markets as a result of its solid financial position and a diversified refinancing strategy. This is underpinned by the longstanding long- and short-term ratings issued by Moody's and Standard & Poor's. Short-term liquidity is managed primarily...

  • Page 156
    ... Other Disclosures 161 Segment Information Currency risk for the BMW Group is concentrated on the currencies referred to above. Interest rate risk The BMW Group's financial management system involves the use of standard financial instruments such as short-term deposits, investments in variable and...

  • Page 157
    ... the residual value risk from operating leases is provided in the section on accounting policies in note 5. 43 Explanatory notes to the cash flow statements The cash flow statements show how the cash and cash equivalents of the BMW Group and of the Automotive and Financial Services segments have...

  • Page 158
    ... included in the Group Financial Statements of BMW AG as consolidated companies. Control is defined as ownership of more than one half of the voting power of BMW AG or the power to direct, by statute or agreement, the financial and operating policies of the management of the BMW Group. In addition...

  • Page 159
    ... Stock Corporation Act. It is reproduced in the Annual Report 2013 of the BMW Group and is also available to shareholders on the BMW Group website at www.bmwgroup.com / ir. 46 Shareholdings of members of the Board of Management and Supervisory Board The members of the Supervisory Board of BMW AG...

  • Page 160
    160 47 Compensation of members of the Board of Management and Supervisory Board The total compensation of the current members of the Board of Management and the Supervisory Board in â,¬ million Short-term employment benefits Post-employment benefits Compensation of BMW AG amounted to â,¬ 40.6 ...

  • Page 161
    ..., Financial Services and Other Entities. The Automotive segment develops, manufactures, assembles and sells cars and off-road vehicles, under the brands BMW, MINI and Rolls-Royce as well as spare parts and accessories. BMW and MINI brand products are sold in Germany through branches of BMW AG and...

  • Page 162
    ... 92 Cash Flow Statements 94 Group Statement of Changes in Equity 96 Notes 96 Accounting Principles and Policies 114 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 145 Other Disclosures 161 Segment Information Motorcycles 31. 12. 2013...

  • Page 163
    ...19,879 6,954 Group 2012* 76,848 - 76,848 7,803 18,537 7,780 External revenues Inter-segment revenues Total revenues Segment result Capital expenditure on non-current assets Depreciation and amortisation on non-current assets Financial Services 31. 12. 2013 8,407 31. 12. 2012* 7,633 Other Entities...

  • Page 164
    ...any investments accounted for using the equity method. The information disclosed for capital expenditure and depreciation and amortisation relates to non-current property, plant and equipment, intangible assets and leased products. Segment figures can be reconciled to the corresponding Group figures...

  • Page 165
    165 gRoup finanCial StateMentS In the case of information by geographical region, external sales are based on the location of the customer's registered office. Revenues with major customers were not material overall. The information disclosed for nonInformation by region current assets relates to ...

  • Page 166
    ... all areas of the business. Corporate culture within the BMW Group is founded on transparent reporting and internal communication, a policy of corporate governance aimed at the interests of stakeholders, fair and open dealings between the Board of Management, the Supervisory Board and employees and...

  • Page 167
    ... on the German Corporate Governance Code" in accordance with § 161 German Stock Corporation Act The Board of Management and the Supervisory Board of Bayerische Motoren Werke Aktiengesellschaft ("BMW AG") declare the following regarding the recommendations of the "Government Commission on the...

  • Page 168
    ...the Board of Management 174 Work Procedures of the Supervisory Board 179 Information on Corporate Governance Practices 180 Compliance in the BMW Group 185 Compensation Report (since 01. 04. 2013) MINI, Motorcycles, Rolls-Royce, Aftersales BMW Group Mandates Rolls-Royce Motor Cars Limited (Chairman...

  • Page 169
    ...03. 12. 2013) ThyssenKrupp AG (Deputy Chairman) (until 17. 01. 2014) DELTON AG (Chairman) AQTON SE (Chairman) DataCard Corp. 1 Employee 2 Employee 3 Employee representatives (company employees). representatives (union representatives). representative (member of senior management). Membership of...

  • Page 170
    ... of the Board of Management 169 Members of the Supervisory Board 172 Work Procedures of the Board of Management 174 Work Procedures of the Supervisory Board 179 Information on Corporate Governance Practices 180 Compliance in the BMW Group 185 Compensation Report KraussMaffei GmbH MAN Truck & Bus AG...

  • Page 171
    .... 06. 2013) Member of the Works Council, Dingolfing Dr. Markus Schramm3 (born 1963) (since 01. 04. 2013) Head of Development Aftersales Business Management and Mobility Services BMW Group Jürgen Wechsler 2 (born 1955 ) Regional Head of IG Metall Bavaria Mandates Schaeffler AG (Deputy Chairman...

  • Page 172
    ... of strategies and deals with issues of particular importance to the BMW Group. The full board also takes decisions at a basic policy level relating to the Group's automobile product strategies and product projects inasmuch as these are relevant for all brands. The Board of Management and...

  • Page 173
    ... Management member responsible for Development (who also chairs the meetings), together with the board members responsible for the following areas: Purchases and Supplier Network; Production; Sales and Marketing BMW, Sales Channels BMW Group; and MINI , Motorcycles, Rolls-Royce, Aftersales BMW Group...

  • Page 174
    ...taken of each meeting and any resolutions made are signed by the Chairman of the Supervisory Board. After its meetings, the Supervisory Board is generally provided information on new vehicle models in the form of a short presentation. 166 statement on CoRpoRate goveRnanCe (Part of Management Report...

  • Page 175
    ...Board of Management, of which he ceased to be a member in 2002. Supervisory Board members do not exercise directorships or similar positions or undertake advisory tasks for important competitors of the BMW Group. Taking into account the specific circumstances of the BMW Group and the number of board...

  • Page 176
    ... members of the Board of Management, including the acceptance of non-BMW Group supervisory board mandates. The Audit Committee deals in particular with issues relating to the supervision of the financial reporting process, the effectiveness of the internal control system, the risk management system...

  • Page 177
    ... and compliance of audit engagement, determination of areas of audit emphasis and fee agreements with external auditor - preparation of Supervisory Board's resolution on Company and Group Financial Statements - discussion of interim reports with Board of Management prior to publication - decision...

  • Page 178
    ... in the management or supervision of another medium or large-sized company. - Ideally, three members of the Supervisory Board should be figures from the worlds of business, science or research who have gained experience in areas relevant to the BMW Group, e. g. chemistry, energy supply, information...

  • Page 179
    ... results. Adaptability In order to ensure our long-term success we must adapt to new challenges with speed and flexibility. We there- The BMW Group stands by its social responsibilities. Our corporate culture combines the drive for success with a willingness to be open, trustworthy and transparent...

  • Page 180
    ... is fundamental to the success of the BMW Group. This approach is an integral part of our corporate culture and is the reason why customers, shareholders, business partners and the general public place their trust in us. The Board of Management and the employees of the BMW Group are obliged to act...

  • Page 181
    ... taken by the BMW Group Compliance Committee are drafted in concept, and implemented operationally, by the BMW Group Compliance Committee Office. The BMW Group Compliance Committee Office comprises ten employees and is allocated in organisational terms to the Chairman of the Board of Management...

  • Page 182
    ... by the BMW Group Compliance Committee Office using an electronic Case Management System. If necessary, Corporate Audit, Corporate Security, the Works Council and Legal Affairs may be called upon to assist in the investigation process. Through the group-wide reporting system, Compliance Responsibles...

  • Page 183
    ...available to employees, which help them deal with typical compliance-related matters. BMW Group employees also have access on the website to an electronically supported approval process for invitations in connection with business partners. The results of the group-wide employee survey in 2013 showed...

  • Page 184
    ... bought back via the stock exchange. Every year the Board of Management of BMW AG decides whether the scheme is to be continued. Further information is provided in notes 19 and 34 to the Group Financial Statements. The members of the Supervisory Board of BMW AG hold in total 27.62 % of the Company...

  • Page 185
    ... and lease cars as well as the payment of insurance premiums, contributions towards security systems and an annual medical check-up. Members of the Board of Management are also entitled to purchase vehicles and other services of the BMW Group at conditions that also apply in each relevant case for...

  • Page 186
    ... the event that the dividend paid on the shares of common stock is between 101 and 110 cents. If the Group net profit is below â,¬ 1 billion or if the post-tax return on sales is less than 2 %, the earnings factor for the financial year 2013 would be zero. In this case, no corporate earnings-related...

  • Page 187
    ... of the Board of Management and â,¬700,000 (2012: â,¬525,000) for the Chairman of the Board of Management. The contributions are credited, along with interest earned, to the personal savings accounts of board members in monthly amounts. The guaranteed minimum rate of return p. a. corresponds to...

  • Page 188
    ...169 Members of the Supervisory Board 172 Work Procedures of the Board of Management 174 Work Procedures of the Supervisory Board 179 Information on Corporate Governance Practices 180 Compliance in the BMW Group 185 Compensation Report Pension based on amounts credited to individual savings accounts...

  • Page 189
    ...). The final number of matching shares is determined in each case when the requirement to invest in BMW AG common stock has been fulfilled. The amount paid to former members of the Board of Management and their dependants for the financial year 2013 was â,¬ 4.7 million (2012: â,¬ 3.8 million). The...

  • Page 190
    ... Group Financial Statements for a description of the accounting treatment of the share-based compensation component. 2 Monetary value calculated on the basis of the closing price of BMW common stock in the XETRA trading system on 31 December 2013 (â,¬ 85.22) (fair value at reporting date). 3 Member...

  • Page 191
    ... of Incorporation. The compensation regulation valid for the financial year 2013 was resolved by shareholders at the Annual General Meeting on 14 May 2013 and is set out in Article 15 of BMW AG's Articles of Incorporation, which can be viewed and / or downloaded at www.bmwgroup.com\ir under the menu...

  • Page 192
    ... of Management 174 Work Procedures of the Supervisory Board 179 Information on Corporate Governance Practices 180 Compliance in the BMW Group 185 Compensation Report Supervisory Board members did not receive any further compensation or benefits from the BMW Group for advisory and agency services...

  • Page 193
    ... of the Supervisory Board who left office during the financial year 2012. 2 1 3. Other Apart from vehicle lease contracts entered into on customary market conditions, no advances or loans were granted by the Company to members of the Board of Management and the Supervisory Board, nor were any...

  • Page 194
    ... reporting principles, the Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and profit of the Group, and the Group Management Report includes a fair review of the development and performance of the business and the position of the Group...

  • Page 195
    ... for group, group statement of changes in equity and the notes to the group financial statements and its report on the position of the Company and the Group for the business year from 1 January to 31 December 2013. The preparation of the consolidated financial statements and Group Management Report...

  • Page 196
    ... otheR inFoRmation BMW Group Ten-year Comparison 2013 Sales volume Automobiles Motorcycles 2 Production volume Automobiles Motorcycles 2 Financial Services Contract portfolio Business volume (based on balance sheet carrying amounts) 3 Income Statement Revenues Gross profit margin Group 4 Profit...

  • Page 197
    ...048 31.9 2,239 44,335 23.2 3,774 3,583 8.1 1,341 37.4 2,242 Revenues Gross profit margin Group 4 Profit before financial result Profit before tax Return on sales (earnings before tax / revenues) Income taxes Effective tax rate Net profit for the year Balance Sheet 62,009 39,944 19,915 19.5 45,119...

  • Page 198
    ... markets with 28 production and assembly plants, 42 sales subsidiaries and a research and development network. -H -R Headquarters Research and Development BMW Group Research and Innovation Centre (FIZ), Munich, Germany BMW Group Research and Technology, Munich, Germany BMW Car IT, Munich, Germany...

  • Page 199
    ... -S -S -S -S -P Production Berlin plant Dingolfing plant Eisenach plant Goodwood plant, GB (headquarters of Rolls-Royce Motor Cars Limited) Hams Hall plant, GB Landshut plant Leipzig plant Munich plant Oxford plant, GB Regensburg plant Rosslyn plant, South Africa BMW Brilliance Automotive Ltd...

  • Page 200
    ... of the Automotive segment adjusted for net investment in marketable securities. Gross margin Gross profit as a percentage of revenues. 196 196 198 200 202 203 204 205 otheR inFoRmation BMW Group Ten-year Comparison BMW Group Locations Glossary Index Index of Graphs Financial Calendar Contacts

  • Page 201
    ...: Profit as a percentage of revenues. Risk management An integral component of all business processes. Following enactment of the German Law on Control and Transparency within Businesses (KonTraG), all companies listed on a stock exchange in Germany are required to set up a risk management system...

  • Page 202
    ...167 Dividend 86, 119 Dow Jones Sustainability Index World 44 E Net profit 4, 47 et seq. New financial reporting rules O 110 et seq. Earnings per share 99, 119 Efficient Dynamics 38 Employees 42 et seq. 53 et seq., 131 et seq. Equity 25, 64, 98, 155 et seq. Exchange rates F Other financial result...

  • Page 203
    ...- key automobile markets 29 BMW Group sales volume by region 29 MINI brand cars - analysis by model variant Vehicle production by plant 32 BMW Group - key motorcycle markets 35 BMW sales volume of motorcycles 35 Workforce 31 BMW Group apprentices at 31 December Employee attrition rate at BMW AG 43...

  • Page 204
    204 Financial Calendar Annual Accounts Press Conference Analyst and Investor Conference Quarterly Report to 31 March 2014 Annual General Meeting Quarterly Report to 30 June 2014 Quarterly Report to 30 September 2014 Annual Report 2014 Annual Accounts Press Conference Analyst and Investor ...

  • Page 205
    ... at www.bmwgroup.com. Investor Relations information is available directly at www.bmwgroup.com/ir. Information about the various BMW Group brands is available at www.bmw.com, www.mini.com and www.rolls-roycemotorcars.com Scan the QR code to go directly to the online Annual Report for tablets. www...

  • Page 206

  • Page 207
    ...BMW group annual Report 2013 was awarded the Blue angel eco-label. the paper used was produced, climate-neutrally and without optical brighteners and chlorine bleach, from recycled waste paper. all other production...generated through print and production were neutralised by the BMW group. to this end,...

  • Page 208
    published by Bayerische Motoren Werke aktiengesellschaft 80788 Munich germany tel. + 49 89 382-0