BMW 2014 Annual Report Download - page 26

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18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
18 Business Model
20 Management System
23 Report on Economic Position
23 General and Sector-specific
Environment
26 Overall Assessment by Management
26
Financial and Non-financial
Performance Indicators
29 Review of Operations
49 Results of Operations, Financial
Position and Net Assets
61 Comments on Financial Statements
of BMW AG
64 Events after the End of the
Reporting Period
65 Report on Outlook, Risks and
Opportunities
65 Outlook
70 Report on Risks and Opportunities
82 Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
83 Disclosures Relevant for Takeovers
and Explanatory Comments
87
BMW Stock and Capital Markets
Overall assessment by management
The 2014 financial year was a pleasing one for the BMW
Group in overall terms and in line with our expectations.
The picture was also extremely positive in terms of
results of operations, financial position and net assets.
This statement also takes into account events after the
end of the reporting period.
Financial and non-financial performance indicators
In the following section, we report on the principal finan-
cial
and non-financial performance indicators used as
the basis for managing the BMW Group and its segments.
As part of the review of operations and the financial
condition of the BMW Group, forecasts made in the pre-
vious year are compared with actual outcomes.
BMW Group
Profit before tax
The BMW Group continued to perform extremely well
in 2014 and achieved a new record Group profit before
tax of € 8,707 million (2013: € 7,8931 million; + 10.3 %).
This result reflects the steep rise in the number of vehi-
cles sold. New models (such as the BMW X4) and new
series (such as the BMW 2 and 4 Series), combined with
a high-value model mix, ensured that the pre-tax profit
continued to develop positively despite ongoing intense
competition on international car markets and consider-
able levels of investment in new technologies.
As forecast for the financial year 2014, the Group’s profit
before tax rose significantly and was therefore in line
with our expectations.
Workforce at year-end
The BMW Group’s workforce increased to 116,324 em-
ployees during the year under report (2013: 110,351
em-
ployees; + 5.4 %). This solid increase mainly reflects
strong demand for the Group’s cars and motorcycles, the
greater range of mobility services now offered and the
need for additional qualified staff in conjunction with
the development of electromobility.
As forecast for the financial year 2014, there was a solid
increase in the Group’s workforce, which was therefore
in line with our expectations.
Automotive segment
Sales volume
The BMW Group sold more cars in the year under report
than ever before. Despite a certain degree of volatility
on various markets, sales of BMW, MINI and Rolls-Royce
brand cars as a whole rose by a solid 7.9 % to 2,117,9652
units (2013: 1,963,7982 units). This growth was achieved
on the back of numerous new model launches on
international markets in 2014, thus ensuring that the
BMW Group remained the world’s market leader in the
premium segment.
All three car brands made an important contribution to
this record sales volume performance. Sales of BMW
and Rolls-Royce brand cars increased to 1,811,7192 units
(2013: 1,655,1382 units; + 9.5 %) and 4,063 units (2013:
3,630 units; + 11.9 %) respectively, in both cases setting
new records. With a sales volume of 302,183 units, the
MINI brand was in line with previous year’s high level
(2013: 305,030 units; – 0.9 %) despite the model change
in 2014.
In line with the forecast provided for the full year in the
quarterly report to 30 September 2014, the total number
of vehicles sold by the BMW Group rose by a solid
7.9 %. In the Annual Report 2013 a “significant rise” in
deliveries to customers was predicted. The main reasons
for the difference were ongoing difficult political and
business conditions prevailing on some markets (such
as Russia) and shifts in the timing of production starts.
Moreover, market developments in China did not quite
live up to expectations.
Report on Economic Position
Overall Assessment by Management
Financial and Non-financial Performance Indicators
1 Prior year figures have been adjusted in accordance with IAS 8, see note 9.
2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2013:
198,542 units, 2014:
275,891 units).