BMW 2014 Annual Report Download - page 68

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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
emissions, the new BMW 1 Series will again be playing
a pioneering role in the introduction of newly devel-
oped BMW EfficientDynamics technologies. The seven-
seater BMW 2 Series Gran Tourer also made its world
debut in Geneva, heralding the BMW Group’s entry
into a new vehicle segment. With its generous interior
spaciousness, versatility and flexibility, the BMW 2 Se-
ries Gran Tourer is the first BMW to be launched in the
multi-purpose vehicle segment.
The BMW 6 Series Coupé, Gran Coupé and Convertible
model upgrades were presented in January and will
come onto the market in spring 2015. The new 6 Series
satisfies the most exacting requirements for luxury -
segment sporting vehicles in terms of dynamic driving
performance, comfort, technology and elegance.
The highly efficient BMW X5 xDrive40e comes onto the
market in 2015. It is the first BMW brand Sports Activity
Vehicle to combine the intelligent BMW xDrive all-wheel
drive system with a more advanced plug-in hybrid
system, and represents a further important step in the
transfer of innovative drivetrain systems from BMW i
models to the BMW Group’s core brand.
Preparations for the new BMW 7 Series are already
under way at the Dingolfing plant. Intelligent composite
construction in the new BMW 7 Series and the
imple-
mentation of carbon fibre (CFRP) technology will set new
standards in the market.
We also expect the MINI brand to generate new sales
momentum in 2015, driven, among other factors, by the
low average age of its model range (2.5 years). The new
MINI Clubman will be presented in 2015 and will excel
with a wide range of high-value details, plenty of room
for functionality and outstanding materials.
The Araquari plant in Brazil commenced production of
BMW brand vehicles in autumn 2014. The completion
of the new production site is scheduled for 2015. The
plant will have a planned annual capacity of up to
30,000 units. The BMW Group is also increasing pro-
duction capacities in the USA. After the expansion
of the Spartanburg plant has been completed, up to
450,000 vehicles per year will roll off the production
lines as from the end of 2016.
Carbon fleet emissions*: slight decrease expected
Regulations for vehicle carbon emissions are becoming
continually stricter worldwide. The BMW Group
com-
mitted itself at an early stage to meeting future legal
requirements with the aid of its innovative Efficient
Dynamics technology package. The increasing scope of
electrification in our vehicle fleet is enabling us to play
a
pioneering role in reducing both carbon emissions
and fuel consumption. At the same time, our vehicles
also set standards in terms of sporting flair and dynamic
driving pleasure.
We will continue to work hard in the current year to re-
duce carbon emissions across the entire fleet. Overall,
we expect fleet emissions to decrease slightly in 2015
(2014: 130 grams CO2 / km).
Revenues: solid increase expected
The generally positive business trend predicted for the
BMW Group is also expected to have a positive impact
on Automotive segment revenues. Accordingly, we fore-
cast solid revenue growth for the forecast period (2014:
€ 75,173 million).
EBIT margin in target range between 8 and 10 % expected
An EBIT margin within a range of between 8 and 10 %
(2014: 9.6 %) remains the target for the Automotive
segment.
We expect to see a moderate drop in segment RoCE
(2014: 61.7 %). However, the long-term target RoCE of at
least 26 % for the Automotive segment will be clearly
surpassed.
Motorcycles segment in 2015
Deliveries to customers: solid increase expected
We expect the Motorcycles segment’s upward trend to
continue, helped by a positive contribution from the
new models – R 1200 R, R 1200 RS, S 1000 RR, S 1000 XR
and F 800 R – presented at the autumn trade fairs. Within
a positive market environment, we forecast a solid
in-
crease in BMW motorcycle sales in the forecast period
(2014: 123,495 units).
* EU-28.