BMW 2014 Annual Report Download - page 69

69 COMBINED MANAGEMENT REPORT
Return on capital employed in line with last year’s level
expected
We expect the impetus provided by the new models
will help keep segment RoCE in line with last year’s
level (2014: 21.8 %).
Financial Services segment in 2015
Return on equity in line with last year’s level expected
Based on our assessment, the Financial Services segment
will continue to perform well in 2015. Despite rising
equity capital requirements worldwide, we forecast RoE
in line with last year’s level (2014: 19.4 %), thus remain-
ing ahead of the target of at least 18 %.
Overall assessment by Group management for 2015
We forecast a continuation of the upward trend in 2015
and expect to achieve profitable growth on the back
of a
range of factors, including the introduction of new
models. Despite the aforementioned challenges, Group
profit before tax is forecast to achieve a solid increase,
thus reflecting the solid growth in sales volume and
revenues anticipated by the Automotive segment. At
the same time, we expect a slight decrease in carbon
emissions from our fleet of vehicles. We aim to achieve
profitable
growth through a solid increase in the size
of the
workforce across the Group. The Automotive seg-
ment’s EBIT margin will remain within the target range
of
between 8 and 10 %. Based on the planned level of
capital expenditure, we expect a moderate decrease in
the Automobile segment’s RoCE. The Financial Services
segment’s RoE should remain in line with last year’s
level. Both performance indicators will be nevertheless
higher than their long-term targets of 26 % and 18 %
respectively. For the Motorcycles segment, we forecast
a solid increase in sales volume and RoCE in line
with
last year’s level. Depending on the political and
economic situation and the outcome of the risks and
opportunities described below, actual business per-
formance could, however, differ from our current ex-
pectations.
Principal performance indicators
2014 2015
Outlook
BMW Group
Workforce at end of year 116,324 solid increase
Profit before tax € million 8,707 solid increase
Automotive segment
Sales volume1 units 2,117,965 solid increase
Fleet emissions2 g CO2 / km 130 slight decrease
Revenues € million 75,173 solid increase
EBIT margin % 9.6 unchanged between 8 and 10
Return on capital employed % 61.7 moderate decrease
Motorcycles segment
Sales volume units 123,495 solid increase
Return on capital employed % 21.8 in line with last year’s level
Financial Services segment
Return on equity % 19.4 in line with last year’s level
1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2014:
275,891 units).
2 EU-28.