BMW 2013 Annual Report Download - page 8

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and services in various markets. Future emission targets currently being mulled over by policymakers, the
various proposals put forward in this context and their likely impact on the BMW Group as a premium manu-
facturer and on the competitive situation were also discussed with the Board of Management.
We devoted considerable time to deliberating on the expectations and needs of customers with respect to
electric mobility. In this context, we gave careful consideration to the production and marketing concepts for
the BMW i3, including complementary services and measures, such as the BMW Battery Certificate or Range
Extender, both of which have been developed to meet specific customer requirements.
At one two-day meeting of the Supervisory Board, corporate and product strategies were considered, the
Long-term Business Forecast examined and time set aside for a detailed look at a range of salient technical
and marketing topics.
During the first part of the meeting we again discussed with the Board of Management the findings of
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 in Brazil, Russia
and the NAFTA region.
In conjunction with vehicle presentations, Supervisory Board members also had the opportunity to
test-
drive a number of BMW, MINI and Rolls-Royce vehicles, including the BMW i3 and BMW i8. Presenta-
tions were also made by senior department heads on selected marketing and technical topics related to
electromobility.
After concluding the Annual Strategy Review, the second part of the meeting included an in-depth dis-
cussion of the long-term business forecast drawn up by the Board of Management for the years from 2014 to
2019 and, after thorough examination and deliberation, we gave the required approval. We remain firm in
our conviction that the strategic direction set by the Board of Management for the BMW Group is robust and
sustainable.
The Board of Management reported to us on the performance and strategy of the Financial Services
segment, explaining the principal aspects of its internal management and organisation. We deliberated on
the role the segment plays within the Group, including a discussion of the impact of increasing regulation
in the financial sector.
We also thoroughly examined the Annual Budget for the financial year 2014, which was presented by the
Board of Management in November 2013. We fully support the focus being placed on growth and quality of
earnings.
We were also briefed in detail by the Board of Management on the results of regional customer surveys
relating to product quality, the perception of quality and the acceptance of concepts. The assurance and
improvement of quality processes and measures were explained to us and we were also afforded an interest-
ing insight into regional and cultural differences in customer expectations. In all cases, the Board of Manage-
ment emphasised its aspiration to maintain the highest level of quality.
The Supervisory Board and the Board of Management jointly addressed the topic of corporate governance
within the BMW Group on several occasions in 2013. Following the amendment to the variable component
of Supervisory Board compensation by the Annual General Meeting in May 2013, the remuneration structure