BMW 2014 Annual Report Download - page 27

27 COMBINED MANAGEMENT REPORT
1 EU-28.
2 Prior year figures have been adjusted in accordance with IAS 8, see note 9.
3 Plus an additional 1,110 Husqvarna motorcycles (until 5 March 2013).
Fleet carbon emissions1
The BMW Group is continually reducing the carbon
emissions of its fleet of vehicles by equipping them with
highly efficient engines and electrified drivetrain sys-
tems. Thanks to the rigorous deployment of Efficient
Dynamics technologies, our vehicles also set standards
in terms of dynamism and driving pleasure.
In 2014, the volume of carbon emissions produced by
our vehicle fleet sold in Europe1 decreased slightly to
130 grams CO2 / km (2013: 133 grams CO2 / km; – 2.3 %).
The scale of the decrease in fleet emissions in 2014
was
therefore not as pronounced as originally forecast,
mainly reflecting the impact of a higher-value model
mix on the one hand and the later-than-planned avail-
ability of the new MINI on the other. In the Annual
Report 2013, we had forecast a “moderate decrease” for
the financial year 2014.
Revenues
Revenues from the sale of BMW, MINI and Rolls-Royce
brand cars grew by 6.4 % to € 75,173 million (2013:
€ 70,6302 million) in line with the solid sales volume
rise. The increase was primarily attributable to the nu-
merous new models launched and the positive con-
sumer climate in major markets.
As forecast for the full year in the Quarterly Report to
30 June 2014, automobile business revenues had a solid
increase despite the dampening effect of exchange
rates
which had been mentioned in the previous year’s
annual outlook as a potentially negative factor. In the
Annual Report 2013 a “significant increase” in revenues
was predicted.
EBIT margin and return on capital employed
The EBIT margin for the Automotive segment (profit
before financial result divided by revenues) came in at
9.6 % (2013: 9.4 %) as a result of the high-value model
mix. As forecast for the financial year 2014, the EBIT
margin from automobile business was within the target
range of between 8 and 10 % and thus in line with our
expectations.
The return on capital employed (RoCE) amounted to
61.7 % (2013: 63.02 %). Contrary to our original ex-
pectations, the RoCE decreased only slightly due to
improved management of capital employed and the
increase in service contract volumes. In the Annual
Report 2013 a “significant drop” in RoCE was pre-
dicted. The rate achieved was well above the minimum
target of 26 % referred to in the forecast for 2014.
Motorcycles segment
Sales volume
In a friendlier-than-expected market environment, BMW
Motorrad achieved a solid increase of 7.2 % with a sales
volume of 123,495 units (2013: 115,2153 units). This per-
formance was therefore better than the “slight increase”
forecast in the Annual Report 2013. The forecast was
raised to “solid” in the quarterly report to 30 September
2014.
Return on capital employed
The return on capital employed (RoCE) in the Motor-
cycles segment stood at 21.8 % (2013: 16.4 %). The solid
increase in RoCE from motorcycles business reflects
higher-than-expected sales volume, the high-value
model mix and the first fruits of the segment’s strategic
realignment. In the Annual Report 2013, it was pre-
dicted that the RoCE would be on par with the previous
year.
Financial Services segment
Return on equity
The Financial Services segment generated a return on
equity (RoE) of 19.4 % in 2014 (2013: 20.02 %), reflecting
continued favourable business conditions. The RoE was
therefore at a similar level to the previous year and re-
mained above the target level of 18 %, in line with our
forecast for 2014. In the Annual Report 2013, a “slight
decrease” in RoE was predicted. The main reason for