BMW 2013 Annual Report Download - page 66

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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 Sector-specific
Environment
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
47 Results of Operations, Financial
Position and Net Assets
62 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
63 Outlook
68 Risks Report
77 Report on 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
The new BMW 2 Series Coupé will become available in
March 2014 and will set new standards in terms of sporti-
ness within the compact segment. The worldwide launch
of the new BMW 4 Series Convertible will also take place
in
the same month. A four-door Gran Coupé will be
added to the BMW 4 Series family from June onwards.
The BMW 2 Series Active Tourer was presented to the
public at the Geneva Motor Show. This new vehicle
concept, which is the perfect fusion of dynamism with
comfort and functionality, is the first BMW brand
model to be equipped with front-wheel drive. Within
the BMW X family, the highly successful BMW X3 is cur-
rently going through the process of model revision.
The
BMW X4 will be launched in a new segment, thus
starting a new chapter in the BMW X family’s success
story.
Following on from its launch on a number of European
markets towards the end of 2013, over the course of
the current year the fully electric-powered BMW i3 will
also become available to customers in metropolitan re-
gions in the USA, Japan and China. The BMW i8 plug-
in hybrid, which will also enter the fray in 2014 as a
new-generation sports car, combines the dynamism of a
high-performance sports model with the consumption
and emission levels of a compact car.
The new generation of the MINI will make its first ap-
pearance in showrooms from spring 2014 onwards. It
will be introduced in March 2014 with a range of three
entirely new engines, all featuring MINI’s TwinPower
Turbo Technology. In the second half of 2014, the Dutch
car manufacturer, VDL NedCar bv, Born, will begin
producing MINI models under contract and provide the
necessary capacity to further develop the MINI brand.
In December 2013 the cornerstone was laid for a new
automotive plant in Brazil. Start of production for the
BMW plant, with an annual productive capacity of up to
30,000 units, is scheduled for autumn 2014.
Carbon fleet emissions*: moderate decrease expected
Ever-stricter legislation with respect to vehicle emissions
throughout the world is creating new challenges for
the
automotive industry. Thanks to Efficient Dynamics,
the BMW Group has been able to play a pioneering role
in reducing fleet consumption and, therefore, carbon
fleet emissions. At the same time, we have continued to
develop the sporty, dynamic character of our vehicles.
Increasing the scope of electrification in our range will
reinforce our position as a key player in the pursuit to
reduce carbon emissions and fuel consumption. With
effect from 2013, our range of products has been ex-
panded by the addition of electric powertrains in BMW i
vehicles. This strategy will ensure that we continue to
meet applicable statutory threshold values in the com-
ing years. 2014 will therefore not see any let-up in our
efforts to reduce carbon emissions for the fleet as a
whole. We forecast that fleet emissions* will be reduced
moderately in 2014 (2013: 133 g CO2 / km).
Revenues: significant increase expected
Strong demand worldwide for BMW, MINI and
Rolls-Royce
brand cars will have a positive impact on
Automotive segment revenues. Accordingly, we ex-
pect revenues from automobile business to increase
significantly in the period covered by the outlook
(2013: € 70,629 million). Currency factors could have a
negative impact on revenues.
EBIT margin in target corridor between 8 and 10 % expected
Despite substantial levels of investment in new tech-
nologies, we aim to achieve an EBIT margin in the Auto-
motive segment within an unchanged target corridor
of between 8 and 10 % (2013: 9.4 %). We expect to see a
significant drop in segment RoCE, mainly reflecting the
substantial scale of investments necessary to deal with
coming challenges and pave the way for future growth.
However, the long-term target RoCE of at least 26 % for
the Automotive segment will be clearly surpassed (2013:
63.3 %).
Motorcycles segment in 2014
Deliveries to customers (motorcycles):
slight increase expected
Thanks to its attractive and extremely young model
range, we forecast a continuation of the Motorcycles
segment’s good performance, not least due to the
contribution expected from the new motorcycles (the
R nineT, S 1000 R, R 1200 RT, R 1200 GS Adventure
and K 1600 GTL Exclusive) presented at the autumn
trade fairs. Despite difficult conditions on interna-
tional
motorcycle markets, we expect that deliveries of
BMW motorcycles to customers will be slightly up on
the previous year (2013: 115,215 units).
Another major step in the expansion of the segment’s
product range will be the series introduction of the
C evolution electric scooter in 2014.
Return on capital employed in line with last year’s
level expected
With market conditions still remaining difficult, we
nevertheless forecast that the impetus provided by the
* EU-27.