BMW 2013 Annual Report Download - page 36

36
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 Indicators
29 Review of Operations
29 Automotive Segment
35 Motorcycles Segment
36 Financial Services Segment
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 Relevant for the
Consolidated Financial Reporting Process
82
Disclosures Relevant for Takeovers
and Explanatory Comments
85 BMW Stock and Capital Markets
Financial Services segment achieves best figures
to date
The Financial Services segment again benefited from
its attractive product range in 2013 and reported
profitable
growth. The portfolio of leasing and credit
financing contracts in place with retail customers and
dealers grew by 7.4 % to a total of 4,130,002 contracts,
the highest figure ever reported by the segment (2012:
3,846,364 contracts). Business volume in balance sheet
terms grew by 4.2 % to stand at € 84,347 million at the
end of the reporting period (2012: € 80,974 million).
Credit financing and the lease of BMW Group brand
cars and motorcycles to retail customers is the segment’s
largest line of business. In our multi-brand line of busi-
ness, which operates under the brand name “Alphera”,
we also offer financing for vehicles of other manufac-
turers. Moreover, we support our own dealer organisa-
tion by providing financing for dealership vehicle inven-
tories, real estate and equipment. In its international
multi-brand fleet business, which operates under the
brand name “Alphabet”, the BMW Group offers a wide
range of individualised mobility solutions for corpo-
rates, ranging from vehicle financing on the one hand
through to bespoke services and full fleet manage-
ment
on the other. The segment’s range of products is
rounded off by a host of individualised insurance
products and attractive banking services.
Sharp rise in leasing and new credit business
The segment’s worldwide lease and credit financing busi-
ness
with retail customers continued to grow in 2013.
With a total of 1,471,385 new contracts, the segment set
a new record for the number of new contracts signed
in a year, surpassing the previous year’s figure by 9.7 %
(2012: 1,341,296 contracts).
Lease business and credit financing business contributed
equally to this strong growth, in both cases with an in-
FINANCIAL SERVICES SEGMENT
crease of 9.7 % over the previous year. Leasing accounted
for 33.8 % of new business, credit financing for 66.2 %.
The proportion of new BMW Group cars leased or
financed by the Financial Services segment was 44.0 %,
3.6 percentage points higher than one year earlier.
In the used car financing line of business, 315,919 new
contracts for BMW and MINI brand cars were signed
in 2013, 4.1 % more than in the previous year (2012:
303,490 contracts).
The total volume of all new credit financing and leas-
ing
contracts concluded with retail customers during
the twelve-month period amounted to € 39,241 million,
an increase of 7.0 % over the previous year (2012:
€ 36,664 million).
This surge in new business had a positive impact on the
overall size of the contract portfolio, which grew to a
total of 3,793,768 contracts at the end of the reporting
period (2012: 3,534,620 contracts; + 7.3 %). Growth
was recorded across all regions, with increases in the
Europe / Middle East region (+ 8.8 %), the Americas
region (+ 5.5 %) and for the EU Bank (+ 2.4 %). The most
significant rise was again recorded in the Asia / Pacific
region, where the contract portfolio grew by 23.6 %.
Expansion of BMW Bank successfully completed
The process of turning BMW Bank into a European finan-
cial
institution was successfully completed, following
the formal conversion of the Italian subsidiary to the
status of a BMW Bank branch. This process has entailed
various European financial services entities of the
BMW Group being integrated in BMW Bank GmbH,
either in the form of branches or as subsidiaries. As a
credit institution operating throughout Europe, the
bank is able to enjoy the benefits of greater flexibility
in the areas of liquidity and equity capital management,
thus increasing the overall stability of the segment.
BMW Group new vehicles financed by
Financial Services segment
in %
50
40
30
20
10
09 10 11 12 13
Financing 24.7 24.1 20.0 20.7 22.5
Leasing 24.3 24.1 21.1 19.7 21.5
Contract portfolio of Financial Services segment
in 1,000 units
4,200
4,000
3,800
3,600
3,400
3,200
3,000
09 10 11 12 13
3,086 3,190 3,592 3,846 4,130