BMW 2015 Annual Report Download

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ANNUAL REPORT 2015

Table of contents

  • Page 1
    ANNUAL REPORT 2015

  • Page 2
    ... Management System Relevant for the Financial Reporting Process Disclosures Relevant for Takeovers BMW Stock and Capital Markets in 2015 GROUP FINANCIAL STATEM ENTS Income Statements for Group and Segments Statement of Comprehensive Income for Group Balance Sheets for Group and Segments Cash Flow...

  • Page 3
    ...133,615 151,004 13.0 Financial Services segment New contracts with retail customers 1 1,196,610 1,341,296 1,471,385 1,509,113 1,655,961 9.7 3 Figures exclude suspended contracts of employment, employees in the non-work phases of pre-retirement part-time arrangements and low income earners...

  • Page 4
    ...Further financial performance figures in â,¬ million Capital expenditure Depreciation and amortisation Operating cash flow Automotive segment Revenues Automotive Motorcycles Financial Services Other Entities Eliminations Profit before financial result (EBIT) Automotive Motorcycles Financial Services...

  • Page 5
    ...247.5 68.8 76.8 76.1 80.4 92.2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2011: 94,400 units, 2012: 141,165 units, 2013: 198,542 units, 2014: 275,891 units, 2015: 282,000 units). Profit before financial result in â,¬ million 9,800 8,400 7,000 5,600 4,200 2,800 1,400...

  • Page 6
    6 Norbert Reithofer - Chairman of the Supervisory Board

  • Page 7
    ..., the Board of Management provided regular reports on current sales and workforce figures. The Chairman of the Board of Management kept the Chairman of the Supervisory Board well informed, both promptly and directly, on the progress of important business projects and plans of strategic significance...

  • Page 8
    .... The main topics discussed at a two-day meeting of the Supervisory Board held during the second half of the year were business and product strategy as well as long-term corporate planning. During the first part of the meeting, the Board of Management reported on the results of the annual Number ONE...

  • Page 9
    ...Management reported to the Supervisory Board on measures to develop young talent for future strategic fields of expertise. The Supervisory Board also consulted on the consequences of legislation relating to the equal participation of women and men in management positions in Germany for the BMW Group...

  • Page 10
    ... therefore appointed KPMG AG for the relevant engagements and specified audit focus areas. The Head of Group Controlling reported to the Audit Committee on the current risk profile and on risk management processes and developments within the BMW Group. The Head of Group Financial Reporting provided...

  • Page 11
    ... Board of Management for the first time with effect from the end of the Annual General Meeting. Mr Zipse has worked for the BMW Group since 1991, most recently as head of Group Planning and Product Strategy. He took over responsibility for Production from Harald Krüger. In the financial year 2015...

  • Page 12
    ... applicable provisions. The Group and Company Financial Statements of Bayerische Motoren Werke Aktiengesellschaft for the year ended 31 December 2015 and the Combined Management Report - as authorised for issue by the Board of Management on 18 February 2016 - were audited by KPMG AG Wirtschaftspr...

  • Page 13
    ...by the Supervisory Board The financial year 2015 has again been a record year for the BMW Group. The Supervisory Board wishes to thank the members of the Board of Management and the entire staff of the BMW Group worldwide for their outstanding work and concerted performance. Munich, 9 March 2016 On...

  • Page 14
    14 Harald Krüger - Chairman of the Board of Management

  • Page 15
    ... company's strategy is and remains geared towards the long term. Successful development continued in the financial year 2015 The financial year 2015 was a successful year for the BMW Group. We achieved new all-time highs for performance indicators such as sales, Group revenues, Group profit before...

  • Page 16
    ... Efficient Dynamics technology and especially with the BMW i models, the BMW Group has irreversibly charted the course towards sustainable mobility. At the end of 2015, average emissions for our new car fleet stood at 127 grams of CO2 per kilometre. Last year, we sold close to 30,000 BMW i vehicles...

  • Page 17
    ... the long-term focus of its Strategy NUMBER ONE > NEXT, the BMW Group will continue to be an attractive investment. We want our shareholders to continue to participate in our success. For the financial year 2015, the Board of Management and the Supervisory Board will propose to the Annual General...

  • Page 18
    ... in terms of aesthetics, dynamics, technology and quality and are the culmination of concerted expertise in engineering and innovation. In addition to its strong position in the motorcycles market, the BMW Group also offers its customers a successful range of financial services. In recent years, it...

  • Page 19
    ... were opened in 2015. Products and services are sold in Germany through BMW Group branches and by independent authorised dealers. Sales outside Germany are handled primarily by subsidiary companies and by independent import companies in a number of markets. The dealership and agency network for BMW...

  • Page 20
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 21
    ... most important of these value drivers are deliveries to customers, segment revenues and - as the key performance indicator for segment profitability - the operating return on sales. Average carbon emissions for the fleet are also taken into account, reflecting their potential impact on earnings in...

  • Page 22
    ... basis of the weighted average rates for equity and debt capital, measured using standard market procedures. The pre-tax average weighted cost of capital for the BMW Group in 2015 was 12 %, unchanged from the previous year. Value management used to control projects Operations in the Automotive and...

  • Page 23
    ... and remained in recession. Currency markets The US dollar averaged an exchange rate of 1.11 to the euro in 2015 and was therefore significantly stronger than in the previous year. The different direction in monetary policy currently being pursued by the European Central Bank and the US Federal...

  • Page 24
    ... 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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 25
    ... countries witnessed an improvement in economic fundamentals in 2015, market conditions were highly unfavourable for some of the world's major emerging economies. After a slow start to the year, the US economy and employment market returned to an upward trend as from the second quarter. The rate...

  • Page 26
    ... 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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 27
    ... in the Annual Report 2014 for the financial year 2015, the total number of cars sold by the BMW Group rose by 6.1 % and was therefore in line with expectations. Fleet carbon emissions2 Despite facing strong competition on the world's automobile markets and investing heavily in new technologies as...

  • Page 28
    ... the Annual Report 2014: RoCE in line with the previous year's level). Contributing factors for the improved performance were higher sales volume, a sustained high-value model mix and the positive impact of the new brand strategy embarked upon in 2014. Financial Services segment Return on equity In...

  • Page 29
    29 COMBINED MANAGEMENT REPORT Report on Economic Position Review of Operations AUTOMOTIVE SEGMENT Solid sales volume growth The BMW Group sold 2,247,485* BMW, MINI and Rolls-Royce brand vehicles worldwide in 2015, thereby setting a new record for the fifth year in succession (2014: 2,117,965* ...

  • Page 30
    ...Segment 36 Financial Services Segment 38 Research and Development 41 Purchasing 42 Sales and Marketing 44 Workforce 45 Sustainability 49 Results of Operations, Financial Position and Net Assets 59 Comments on Financial Statements of BMW AG 62 Events after the End of the Reporting Period 63 Report on...

  • Page 31
    ... the BMW Group's production network. At the same time, the process of expanding international production sites was continued apace. The production network comprises 30 locations in 14 countries worldwide. The network set new production volume records in 2015, making a total of 2,279,503* units (2014...

  • Page 32
    ... Ltd., Shenyang. Contract production. network with the aim of ensuring a balanced distribution of value added along the production chain. In North America, the expansion of the plant in Spartanburg, USA, continues to make good progress. A new, state-of-the-art vehicle body manufacturing facility is...

  • Page 33
    ...'s innovative product strategy in the long term. The new technology and logistics centre in Bognor Regis near Goodwood was opened as planned. Moreover, Rolls-Royce Motor Cars recruited 100 new employees during the period under report. In Rosslyn (South Africa) the one-millionth BMW 3 Series vehicle...

  • Page 34
    ...Segment 36 Financial Services Segment 38 Research and Development 41 Purchasing 42 Sales and Marketing 44 Workforce 45 Sustainability 49 Results of Operations, Financial Position and Net Assets 59 Comments on Financial Statements of BMW AG 62 Events after the End of the Reporting Period 63 Report on...

  • Page 35
    ... BMW Group - key motorcycle markets 2015 as a percentage of sales volume Germany The Motorcycles segment profited from a positive market environment during the period under report, achieving a new sales volume record for the fifth year in succession. The number of BMW motorcycles sold to customers...

  • Page 36
    ... to the Berlin plant. As in the previous year, credit financing and leasing business with retail customers was an important part of the segment's success in 2015. In total, 1,655,961 new contracts were signed during the period under report, 9.7 % more than in the previous year ( 2014 : 1,509,113...

  • Page 37
    ... high. In addition to the Group's financing and leasing products, customers can select from a broad range of insurance arrangements, addressing all aspects of individual mobility. Significant growth was recorded in 2015, with the number of new insurance contracts signed up by 11 . 2 % to 1,207...

  • Page 38
    ... stable conditions prevailing on the international used car markets, sales prices for BMW and MINI brand pre-owned cars developed robustly. Average residual value losses incurred on the resale of these vehicles were marginally higher than in the previous year. Further information on the risk profile...

  • Page 39
    ...suitability for covering long distances, and short refuelling times, therefore representing a further key option in the range of BMW eDrive technologies. The BMW Group has been conducting research and development work in the field of hydrogen fuel cell electric vehicles for over 15 years. Highly and...

  • Page 40
    ...Segment 36 Financial Services Segment 38 Research and Development 41 Purchasing 42 Sales and Marketing 44 Workforce 45 Sustainability 49 Results of Operations, Financial Position and Net Assets 59 Comments on Financial Statements of BMW AG 62 Events after the End of the Reporting Period 63 Report on...

  • Page 41
    41 COMBINED MANAGEMENT REPORT PURCHASING AND SUPPLIER NETWORK Ideal balance between quality, innovation, flexibility and costs The underlying objective of the BMW Group's purchasing, quality assurance and component production functions is to achieve the ideal balance between quality, innovation, ...

  • Page 42
    ... network for BMW i currently covers some 950 locations. A total of 438 selected BMW i partners are currently offering this brand on the direct sales markets of Europe and Japan. The i models are also being offered in ten direct sales markets via new sales channels, one of which is the "Customer...

  • Page 43
    ..., while new engines deliver instant power more efficiently than ever before. The second generation of the BMW X1 was launched in October 2015. Alongside best values to date in terms of dynamics and efficiency, this highly successful model also comes with numerous optional features - a combination...

  • Page 44
    ...Segment 36 Financial Services Segment 38 Research and Development 41 Purchasing 42 Sales and Marketing 44 Workforce 45 Sustainability 49 Results of Operations, Financial Position and Net Assets 59 Comments on Financial Statements of BMW AG 62 Events after the End of the Reporting Period 63 Report on...

  • Page 45
    ... female employees at BMW AG / BMW Group in % 14 13 12 11 10 9 The BMW Group safeguards the future viability of its business model and its long-term growth through sustainable activity. In terms of sustainability, the BMW Group focuses on three broad areas: the development of products and services...

  • Page 46
    ...Segment 36 Financial Services Segment 38 Research and Development 41 Purchasing 42 Sales and Marketing 44 Workforce 45 Sustainability 49 Results of Operations, Financial Position and Net Assets 59 Comments on Financial Statements of BMW AG 62 Events after the End of the Reporting Period 63 Report on...

  • Page 47
    ... MANAGEMENT REPORT Fleet carbon emissions again reduced The development of sustainable products and services is an important aspect of the BMW Group's business model. CO2 emissions levels are continually being reduced by incorporating Efficient Dynamics technologies in all of the Group's vehicles...

  • Page 48
    ...Segment 36 Financial Services Segment 38 Research and Development 41 Purchasing 42 Sales and Marketing 44 Workforce 45 Sustainability 49 Results of Operations, Financial Position and Net Assets 59 Comments on Financial Statements of BMW AG 62 Events after the End of the Reporting Period 63 Report on...

  • Page 49
    ... Report on Economic Position Results of Operations, Financial Position and Net Assets Earnings performance Once again, the BMW Group achieved year-on-year growth in revenues, sales volume and profit before tax in the financial year 2015. The number of BMW, MINI and Rolls-Royce brand cars sold...

  • Page 50
    ...(2014: 32.5 %) of business. 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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators...

  • Page 51
    ... million in 2014 to â,¬ 664 million in 2015, mainly due to an increase in new leasing business and changes in the leased products portfolio. The previous year's figures had also benefited from elimination reversal effects. Financial position The consolidated cash flow statements for the Group and...

  • Page 52
    ... operating, investing and financing activities. Cash and cash equivalents in the cash flow statements correspond to the amount disclosed in the balance sheet. 18 COMBINED MANAGEMENT REPORT 18 General Information on the BMW Group 18 Business Model 20 Management System 23 Report on Economic Position...

  • Page 53
    ... BMW Group's Financial Services business. The overall objective of Group financing is to ensure the solvency of the BMW Group at all times. Achieving this objective is tackled in three strategic areas: 1. The ability to act at all times by assuring permanent access to strategically important capital...

  • Page 54
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 55
    ...and accounted for 3.9 % (2014: 3.5 %) of total assets. Adjusted for exchange rate factors, financial assets inNet assets creased by 21.1 %, mainly as a result of the purchase of marketable securities. Cash and cash equivalents went down by â,¬ 1,566 million to â,¬ 6 ,122 million, due to investments...

  • Page 56
    56 Balance sheet structure - Group Total equity and liabilities in â,¬ billion Non-current assets 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 27 Overall ...

  • Page 57
    ... internal financing. BMW Group value added statement 2015 in â,¬ million Work performed Revenues Financial income Other income Total output Cost of materials* Other expenses Bought-in costs Gross value added Depreciation and amortisation of total tangible, intangible and investment assets Net value...

  • Page 58
    58 BMW Group value added 2015 in % 48.3 % Other expenses Employees 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 27 Overall Assessment by Management 27 Financial...

  • Page 59
    ...the BMW Group and is essentially described in the "Report BMW AG Income Statement in â,¬ million 2015 Revenues Cost of sales Gross profit Selling expenses Administrative expenses Research and development expenses Other operating income and expenses Result on investments Financial result Profit from...

  • Page 60
    ... 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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 61
    ... REPORT BMW AG Balance Sheet at 31 December in â,¬ million 2015 Assets Intangible assets Property, plant and equipment Investments Tangible, intangible and investment assets Inventories Trade receivables Receivables from subsidiaries Other receivables and other assets Marketable securities Cash...

  • Page 62
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 63
    ... % is predicted for 2016. The low price of oil is highly likely to have a positive impact on consumer spending. In Japan, the central bank is again set to continue its "cheap money" policy in 2016 and therefore guarantee companies attractive financing conditions, which is likely to give the Japanese...

  • Page 64
    ... in the short term. It cannot be ruled out, however, that economic output in China may slow down more than currently expected. 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...

  • Page 65
    65 COMBINED MANAGEMENT REPORT year. The positive trend in the USA is expected to continue. Financial services markets The trend towards more normal rates of growth in China, together with weaker signals coming from other emerging markets, is bound to have an influence on global trade, and hence on...

  • Page 66
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 67
    ...on capital employed Motorcycles segment Sales volume Return on capital employed Financial Services segment Return on equity 1 2 units % 136,963 31.6 slight increase slight decrease % 20.2 in line with last year's level Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2015...

  • Page 68
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 69
    ... public and the speed with which information can be distributed online. With this in mind, a new concept has been developed (and validated with the aid of external experts), aimed at strengthening links between the BMW Group's risk management and its corporate communication functions. In order...

  • Page 70
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 71
    ... are currently classified by the BMW Group as insignificant. Strategic and sector risks and opportunities New regulations and rising fuel and energy prices can also influence customer behaviour. Medium- and long-term targets have already been put in place in Europe, North America, Japan, China and...

  • Page 72
    ...of laws and regulations 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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29...

  • Page 73
    ..., import restrictions or direct excise duties could lower the cost of materials for the BMW Group, also enabling products and services to be offered to customers at lower prices. Overall, strategic and sector opportunities capable of having a positive and sustainable impact on earnings are currently...

  • Page 74
    ...-year assessment period. The level of risk attached to sales and marketing risks is classified as high. Global sourcing is seen as a key area for generating opportunities within the Purchasing and Supplier Network, whereby the BMW Group benefits from efficiency improvements and access to innovative...

  • Page 75
    ... added value for customers than currently expected, whilst at the same time looking for ways to boost sales volumes and achieve better selling prices. The BMW Group keeps track of the latest developments and trends in communication technology, including the use of social media and networks, in order...

  • Page 76
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 77
    ... in exchange rates can play a significant role for Group earnings. Cash-flow-at-risk models and scenario analyses are used to measure currency risks and opportunities. Operational currency management is based on the results provided by these tools. In 2015 the Chinese renminbi, the US dollar, the...

  • Page 78
    ...in financing conditions. 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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29...

  • Page 79
    ... in market interest rates and can arise when fixed interest rate periods for assets and liabilities recognised in the balance sheet do not match. Interest rate risks in the Financial Services line of business are managed by raising refinancing funds with matching maturities and by employing interest...

  • Page 80
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 81
    ... timely manner. Information relevant for the various financial reporting processes - at BMW AG, other consolidated Group entities and for the BMW Group as a whole - is set out primarily in organisational manuals, internal and external financial reporting guidelines, accounting manuals and training...

  • Page 82
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 83
    ...stock required to be acquired by Board of Management members and certain senior department heads in conjunction with the share-based remuneration programmes (Compensation Report of the Corporate Governance section; note 19 to the Group Financial Statements). Direct or indirect investments in capital...

  • Page 84
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 85
    ... direct or indirect control of BMW AG. The term "control" is defined as the acquisition of more than 50 % of the share capital of BMW AG, the right to receive more than 50 % of the dividend or the right to direct the affairs of the Company or appoint the majority of members of the Supervisory Board...

  • Page 86
    ...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 27 Overall Assessment by Management 27 Financial and Non-financial Performance Indicators 29 Review of Operations 49...

  • Page 87
    ... MANAGEMENT REPORT BMW Stock and Capital Markets in 2015 BMW shares of common stock climbed to a new record high of â,¬ 122.60 during 2015. The BMW Group continues to have the best ratings in the European automobile sector, enabling it to benefit from excellent access to international capital...

  • Page 88
    ... stock Number of shares in 1,000 Stock exchange price in â,¬1 Year-end closing price High Low Key data per share in â,¬ Dividend Common stock Preferred stock Earnings per share of common stock 3 Earnings per share of preferred stock 4 Operating cash flow Automotive segment Equity 1 2 3 2014 2013...

  • Page 89
    ... in order to service the Employee Share Programme. Proposed dividend increase Intensive communication with capital markets Reflecting the good earnings performance, the Board of Management and the Supervisory Board will propose to the Annual General Meeting to use BMW AG's unappropriated profit of...

  • Page 90
    ... Other financial result Financial result Profit / loss before tax Income taxes 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113...

  • Page 91
    ... equity accounted investments Interest and similar income Interest and similar expenses Other financial result Financial result Profit / loss before tax Income taxes Net profit / loss Attributable to minority interest Attributable to shareholders of BMW AG Basic earnings per share of common stock...

  • Page 92
    ... Receivables from sales financing Financial assets Current tax Other assets 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113...

  • Page 93
    ... Leased products Investments accounted for using the equity method Other investments Receivables from sales financing Financial assets Deferred tax Other assets Non-current assets Inventories Trade receivables Receivables from sales financing Financial assets Current tax Other assets Cash and cash...

  • Page 94
    ... equity accounted investments Changes in working capital Change in inventories Change in trade receivables Change in trade payables Change in other operating assets and liabilities 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow...

  • Page 95
    ... term deposits Proceeds from the sale of marketable securities and from matured term deposits Cash inflow / outflow from investing activities Issue / buy-back of treasury shares Payments into equity Payment of dividend for the previous year Intragroup financing and equity transactions Interest paid...

  • Page 96
    ...and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information in â,¬ million Note Subscribed capital Capital reserves Revenue reserves 1 January 2015 Dividends paid Net profit Other...

  • Page 97
    ...December 2014 Subscribed share capital increase out of Authorised Capital Premium arising on capital increase relating to preferred stock Other changes 31 December 2014 Accumulated other equity Equity attributable to shareholders of BMW AG Derivative financial instruments Minority interest Total...

  • Page 98
    ... by statements of cash flows for the Automotive and Financial Services segments. This supplementary information is unaudited. In order to facilitate the sale of its products, the BMW Group provides various financial services - mainly loan and lease financing - to both retail customers and...

  • Page 99
    ... Management Report can be downloaded from the BMW Group website at www. bmwgroup.com / ir. The Board of Management authorised the Group Financial Statements for issue on 18 February 2016. 2 Consolidated companies The scope of the consolidated financial statements is based on the application...

  • Page 100
    ...is accounted for at cost at that date. The purchase price allocation is expected to be completed in the first quarter of 2016. 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98...

  • Page 101
    101 GROUP FINANCIAL STATEMENTS Investments accounted for using the equity method (joint ventures and associated companies) are measured at the BMW Group's share of equity, taking account of fair value adjustments. Any difference between the cost of investment and the Group's share of equity is ...

  • Page 102
    ...the contract term. Cost of sales comprises the cost of products sold and the acquisition cost of purchased goods sold. In addition to directly attributable material and production costs, it also includes statutory and non-statutory warranty expenses, research costs, non-capitalised development costs...

  • Page 103
    103 GROUP FINANCIAL STATEMENTS Development costs for vehicle and engine projects are capitalised at manufacturing cost, to the extent that attributable costs can be measured reliably and both technical feasibility and successful marketing are assured. It must also be probable that the development ...

  • Page 104
    ... not accounted for using the equity method, are reported as Other investments, measured at their fair value. If this value is not available or cannot be determined reliably, they are measured at cost. Non-current marketable securities are measured according to the category of financial asset to...

  • Page 105
    ... market prices are not available, the fair value of available-for-sale financial assets is measured using appropriate valuation techniques e. g. discounted cash flow analysis based on market information available at the balance sheet date. Available-for-sale assets include non-current investments...

  • Page 106
    ... bases of assets and liabilities and on consolidation procedures. Deferred 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113...

  • Page 107
    ... in the acquisition or manufacturing cost of inventories. Cash and cash equivalents comprise mainly cash on hand and cash at bank with an original term of up to three months. Assets held for sale and disposal groups held for sale are presented separately in the balance sheet in accordance with IFRS...

  • Page 108
    ... manufacturer warranties, the BMW Group also offers various categories of warranty 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies...

  • Page 109
    ... GROUP FINANCIAL STATEMENTS depending on the product and sales market concerned. Warranty provisions are recognised when the risks and rewards of ownership of the goods are transferred to the dealer or retail customer or when a new category of warranty is introduced. In order to determine the level...

  • Page 110
    ... Operation (Amendments to IFRS 11) 6. 5. 2014 1. 1. 2016 1. 1. 2016 Insignificant IFRS 14 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles...

  • Page 111
    ... cost or fair value. IFRS 9 harmonises the various rules contained in IAS 39 and reduces the number of valuation categories for financial instruments on the assets side of the balance sheet. The new categorisation is based partly on the entity's business model and partly on the contractual cash flow...

  • Page 112
    ...the requirement to classify leases, will remain largely unchanged. 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the...

  • Page 113
    ... 63,396 Group cost of sales include â,¬ 19 , 449 million ( 2014 : â,¬ 16,485 million) relating to Financial Services business. Manufacturing costs include impairment losses on intangible assets and property, plant and equipment totalling â,¬ 3 million (2014: â,¬ - million). Cost of sales is reduced...

  • Page 114
    ... 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 13 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 14 147 Other Disclosures 163 Segment Information...

  • Page 115
    ... result Other financial result 2015 1 - 25 - 24 - 430 - 430 - 454 2014 3 -153 - 150 - 597 - 597 - 747 The result on investments for the year under report includes impairment losses on other investments totalling â,¬ 25 million (2014: â,¬ 153 million). In the previous year, this line item was...

  • Page 116
    ...benefits (-) for prior years Other variances Actual tax expense Effective tax rate 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies...

  • Page 117
    ...of exchange rate and other factors. Deferred taxes recognised directly in equity increased in total by â,¬ 72 million (2014: â,¬ 1,429 million). Of this amount, â,¬ 520 million (2014: â,¬ 759 million) related to the fair value measurement of derivative financial instruments and marketable securities...

  • Page 118
    ... by management. 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 18 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of...

  • Page 119
    ...Board of Management and share-based commitments to senior heads of department. In the case of the Employee Share Programme, nonvoting shares of preferred stock in BMW AG were granted to qualifying employees during the financial year 2015 at favourable conditions (see note 34 for the number and price...

  • Page 120
    ...the 2015 Compensation Report, which is part of the Combined Management Report. 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113...

  • Page 121
    ... defined benefit liability for pension plans Available-for-sale securities Financial instruments used for hedging purposes Other comprehensive income from equity accounted investments Currency translation foreign operations Other comprehensive income 1,413 -170 -1,301 71 765 778 2015 Deferred taxes...

  • Page 122
    ...plant and equipment Leased products Investments accounted for using the equity method Investments in non-consolidated subsidiaries 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity...

  • Page 123
    ..., factory and office equipment Advance payments made and construction in progress Property, plant and equipment Leased products Investments accounted for using the equity method Investments in non-consolidated subsidiaries Participations Non-current marketable securities Other investments 4,181 23...

  • Page 124
    ... intangible assets is provided in note 21. 23 Property, plant and equipment 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113...

  • Page 125
    ...Revenues Scheduled depreciation Profit / loss before financial result Interest income Interest expenses Income taxes Other comprehensive income Total comprehensive income Dividends received by the Group * cases with a 50.0 % shareholding) is a car sharing provider which currently offers car-sharing...

  • Page 126
    ... Net assets Group's interest in net assets Eliminations Carrying amount 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 26 98 Accounting Principles and Policies 113...

  • Page 127
    ...one year. 31.12. 2015 71,536 -1,493 70,043 31. 12. 2014 62,539 -1,515 61,024 Allowances on receivables from sales financing - which only arise within the Financial Services segment - developed as follows: 2015 in â,¬ million Balance at 1 January Allocated (+) / reversed (-) Utilised Exchange rate...

  • Page 128
    ... Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information Financial assets Financial...

  • Page 129
    129 GROUP FINANCIAL STATEMENTS Marketable securities and investment funds relate to available-for-sale financial assets and comprise: in â,¬ million Stocks Fixed income securities Other debt securities Marketable securities and investment funds 31.12. 2015 561 4,356 344 5,261 31. 12. 2014 100 3,340...

  • Page 130
    ... claims Sundry other assets Other assets thereof non-current 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to...

  • Page 131
    ... later than one year. 31.12. 2015 2,847 - 96 2,751 31. 12. 2014 2,236 - 83 2,153 Allowances on trade receivables developed as follows during the year under report: 2015 in â,¬ million Balance at 1 January Allocated (+) / reversed (-) Utilised Exchange rate impact and other changes Balance at 31...

  • Page 132
    ...Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information At 31 December 2015...

  • Page 133
    ...Group Financial Statements. Accumulated other equity going concern in the long-term and to provide an adequate return to shareholders. The BMW Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk profile of the underlying assets...

  • Page 134
    ... for debt with a term of more than one year. BMW AG's credit90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of 35 Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the...

  • Page 135
    ...thereof assets Germany 2015 9,215 7,855 - 1,360 1,360 - 2014 9,636 7,323 - 2,313 2,313 - the UK also takes account of restrictions due to caps and floors. Based on the measurement principles contained in IAS 19, the following balance sheet carrying amounts apply to the Group's pension plans: United...

  • Page 136
    ... Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information Both employer- and employee...

  • Page 137
    ... framework conditions. The change in the net defined benefit liability for pension plans can be derived as follows: Plan assets Total Limitation of the net defined benefit asset to the asset ceiling 2 Net defined benefit liability 1 January 2015 Expense / income Current service cost Interest...

  • Page 138
    ... limitation of the net defined benefit asset to the asset ceiling 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the...

  • Page 139
    ...: Germany Defined benefit obligation in â,¬ million 1 January Expense (+) / income (-) Remeasurements Payments to external funds Employee contributions Payments on account and pension payments 31 December 2015 9,636 518 - 825 - 53 -167 9,215 2014 7,400 475 1,872 - 48 -159 9,636 Plan assets 2015...

  • Page 140
    ...Total with quoted market price Debt instruments thereof investment grade thereof non-investment grade Real estate Cash and cash equivalents Absolute return funds 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group...

  • Page 141
    ... takes account of restrictions due to caps and floors. 31 December in years Weighted duration of all pension obligations Germany 2015 20.5 The weighted duration of all pension obligations in Germany, the UK and other countries (based on present values of the defined benefit obligation) developed as...

  • Page 142
    ... for ongoing operational expenses Other obligations Other provisions 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes...

  • Page 143
    ... instruments. The BMW Group uses various short-term and long-term refinancing instruments on money and capital markets to finance its operations. This diversification enables it to obtain attractive market conditions. The main instruments used are corporate bonds, assetbacked financing transactions...

  • Page 144
    ... fixed BMW US Capital, LLC, Wilmington, DE variable variable variable variable 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies...

  • Page 145
    ... to service contracts relates to service and repair work to be provided under commitments given at the time of the sale of a vehicle (multicomponent arrangements). Grants comprise primarily public sector funds to promote regional structures which have been invested in the production plants in Brazil...

  • Page 146
    ... Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information

  • Page 147
    ..., the BMW Group also has other financial commitments, primarily under lease contracts for land, buildings, plant and machinery, tools, office and other facilities. These contracts run for periods of one to 49 years. Some of them contain extension and purchase options as well as price adjustment...

  • Page 148
    ... parties Credit card receivables Other Cash and cash equivalents 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the...

  • Page 149
    149 GROUP FINANCIAL STATEMENTS Other liabilities Availablefor-sale Carrying amount 3 Fair value option Carrying amount 3 Held for trading Carrying amount1, 3 Assets Fair value Carrying amount - - - - 402 - 26 - - - Other investments Receivables from sales financing Financial assets ...

  • Page 150
    ... and cash equivalents Trade receivables Other assets Receivables from subsidiaries 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies...

  • Page 151
    151 GROUP FINANCIAL STATEMENTS Other liabilities Availablefor-sale Carrying amount 3 Fair value option Carrying amount 3 Held for trading Carrying amount1, 3 Assets Fair value Carrying amount - - - - 408 - - - - - Other investments Receivables from sales financing Financial assets ...

  • Page 152
    ... of financial instruments The fair values shown are computed using market information available at the balance sheet date, on the basis of prices quoted by the contract partners or using ISO Code in % EUR appropriate measurement methods, e. g. discounted cash flow models. In the latter case...

  • Page 153
    153 GROUP FINANCIAL STATEMENTS 31 December 2014 in â,¬ million Marketable securities, investment fund shares and collateral assets - available-for-sale Other investments - available-for-sale / fair value option Derivative instruments (assets)* Interest rate risks Currency risks Raw materials price ...

  • Page 154
    ... Balance at 31 December available-for-sale securities accounted for as participations, for which fair value changes had previously been recognised directly in equity. No reversals of impairment losses on marketable securities were recognised directly in equity in the year under report (2014...

  • Page 155
    ... of the reporting period, will be reclassified to profit and loss in the new financial year (2014: losses of â,¬ 278 million). The BMW Group did not hold any derivative financial instruments at 31 December 2015, which had been designated as cash flow hedges to hedge against interest-rate risks. At...

  • Page 156
    ... on accounting policies (note 6). Creditworthiness testing is an important aspect of the BMW Group's credit risk management. Every borrower's creditworthiness is tested for all credit financing and lease contracts entered into by the BMW Group. In the case of retail customers, creditworthiness...

  • Page 157
    ... BMW Group has good access to capital markets as a result of its solid financial position and a diversified refinancing strategy. This is underpinned by the longstanding long- and short-term ratings issued by Moody's and Standard & Poor's. Short-term liquidity is managed primarily by issuing money...

  • Page 158
    ... in exchange rates. The impact for the principal currencies, in each case for the following financial year, is as follows: 31.12. 2015 163 48 86 99 68 31. 12. 2014 173 73 66 37 6 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow...

  • Page 159
    ...in prices across all categories of raw materials. The risk at each reporting date for the following financial year was as follows: 31.12. 2015 155 31. 12. 2014 230 43 Explanatory notes to the cash flow statements The cash flow statements show how the cash and cash equivalents of the BMW Group and...

  • Page 160
    ... line within cash flows from financing activities. Dividends received in the financial year 2015 amounted to â,¬ 1 million (2014: â,¬ 1 million). 44 Related party relationships 90 GROUP FINANCIAL STATEMENTS 90 Income Statements 90 Statement of Comprehensive Income 92 Balance Sheets 94 Cash Flow...

  • Page 161
    ... in the Annual Report 2015 of the BMW Group and is also available to shareholders on the BMW Group website at www.bmwgroup.com / ir. 46 Shareholdings of members of the Board of Management and Supervisory Board The members of the Supervisory Board of BMW AG hold in total 43.00 % (2014: 27.61...

  • Page 162
    ... in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information The total compensation of the current Board of Management members for 2015...

  • Page 163
    ... MINI brand products are sold in Germany through branches of BMW AG and by independent, authorised dealers. Sales outside Germany are handled primarily by subsidiary companies and by independent import companies in a number of markets. Rolls-Royce brand vehicles are sold in the USA, China and Russia...

  • Page 164
    ... 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information Motorcycles 31. 12. 2015...

  • Page 165
    ...,901 8,195 Group 2014 80,401 - 80,401 8,707 655 20,676 7,571 External revenues Inter-segment revenues Total revenues Segment result Result from equity accounted investments Capital expenditure on non-current assets Depreciation and amortisation on non-current assets Financial Services 31. 12. 2015...

  • Page 166
    ... Balance Sheets 94 Cash Flow Statements 96 Group Statement of Changes in Equity 98 Notes 98 Accounting Principles and Policies 113 Notes to the Income Statement 121 Notes to the Statement of Comprehensive Income 122 Notes to the Balance Sheet 147 Other Disclosures 163 Segment Information 2015 2014...

  • Page 167
    167 GROUP FINANCIAL STATEMENTS In the case of information by geographical region, external sales are based on the location of the customer's registered office. Revenues with major customers were not material overall. The information disclosed for Information by region non-current assets relates to...

  • Page 168
    ... office in Munich, Germany. It has three representative bodies: the Annual General Meeting, the Supervisory Board and the Board of Management. The duties and authorities of those bodies derive from the Stock Corporation Act and the Articles of Incorporation of BMW AG. Shareholders, as the owners...

  • Page 169
    ... supplementary use of model tables would be instrumental in making the BMW AG's Compensation Report transparent and generally understandable in accordance with generally applicable financial reporting requirements (see section 4.2.5 sentence 3 of the Code). Munich, December 2015 Bayerische Motoren...

  • Page 170
    ... Rolls-Royce, Aftersales BMW Group Mandates Purchasing and Supplier Network Rolls-Royce Motor Cars Limited (Chairman) Oliver Zipse (born 1964) Production (since 13. 05. 2015) 168 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) 168 Information on the Company's Governing Constitution...

  • Page 171
    ... Management SE Bertelsmann SE & Co. KGaA Deutsche Lufthansa Aktiengesellschaft Verizon Communications Inc. (since 05. 11. 2015) Christiane Benner 2 (born 1968) Member since 2014 Second Chairman of IG Metall Mandates Robert Bosch GmbH 1 Employee 2 Employee 3 Employee representatives (company...

  • Page 172
    ...since 2009 General Representative of IG Metall Munich Mandates 168 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) 168 Information on the Company's Governing Constitution 169 Declaration of the Board of Management and of the Supervisory Board pursuant to § 161 AktG 170 Members of the...

  • Page 173
    ... HEICO Corporation Simone Menne (born 1960) Member since 13. 05. 2015 Member of the Board of Management, Finance, of Deutsche Lufthansa Aktiengesellschaft Mandates Delvag Luftfahrtversicherungs-AG (Chairman) Deutsche Post AG LSG Lufthansa Service Holding AG (Chairman) Lufthansa Cargo AG Lufthansa...

  • Page 174
    ... in the "Corporate Governance" section of the Annual Report. The Board of Management is also responsible for ensuring that appropriate risk management and risk controlling systems are in place throughout the Group. During their period of employment for BMW AG, members of the Board of Management are...

  • Page 175
    .... The Operations Committee comprises the Board of Management member responsible for Development (who also chairs the meetings), together with the board members responsible for the following areas: Purchases and Supplier Network; Production; Sales and Marketing BMW, Sales Channels BMW Group; and...

  • Page 176
    ... each year is planned to cover a number of days and is used, among other things, to enable an in-depth exchange on strategic and technological matters. The main emphases of meetings in the period under report are described in the Report of the Supervisory Board. As a general rule, the shareholder...

  • Page 177
    ... Supervisory Board of BMW AG are also members of the management board of a listed company, they may not accept more than a total of three mandates on non-BMW Group supervisory boards of listed companies or in other bodies with comparable requirements. The Supervisory Board examines the efficiency of...

  • Page 178
    ... by employee representatives. 168 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) 168 Information on the Company's Governing Constitution 169 Declaration of the Board of Management and of the Supervisory Board pursuant to § 161 AktG 170 Members of the Board of Management 171 Members...

  • Page 179
    ... Board members) - set up in accordance with the recommendation contained in the German Corporate Governance Code, activities based on terms of reference Audit Committee - supervision of the financial reporting process, the effectiveness of the internal control system, the risk management system...

  • Page 180
    ... with customers, suppliers, creditors or other business partners. - As a general rule, the age limit for membership of the Supervisory Board should be set at 70 years. In exceptional cases, members may be allowed to remain on the Board up until the end of the Annual General Meeting following...

  • Page 181
    ...Men in Executive Positions in the Private and the Public Sector ("Act on Equal Gender Participation") was passed into German law in 2015. Under the new legislation, the Supervisory Board of BMW AG is required to set a target for the proportion of women on its Board of Management and a time limit for...

  • Page 182
    ... the financial year 2015, both in the workforce as a whole and in management positions, accompanied also by a large number of programmes, dialogues and information events. Further information on the social di- In order to ensure our long-term success we must adapt to new challenges with speed and...

  • Page 183
    ... to by their sub-suppliers. Purchasing terms and conditions and other information relating to purchasing can be found in the publicly available section of the BMW Group Partner Portal at https: / / b2b.bmw.com. We also work in close partnership with our suppliers and promote their commitment to...

  • Page 184
    ... Group BMW Group Compliance Management System Supervisory Board BMW AG Annual Report Responsible and lawful conduct is fundamental to the success of the BMW Group. It is an integral part of our corporate culture and the reason why customers, shareholders, business partners and the general public...

  • Page 185
    ... at BMW AG branches received further training as anti-money-laundering measures were upgraded. Antitrust law training was also expanded in 2013, targeting employees who come into contact with antitrustrelated issues as a result of their functions within sales and marketing, purchasing, production or...

  • Page 186
    ... Office using an electronic Case Management System. If necessary, Corporate Audit, Corporate Security, the Works Council and legal departments may be called upon to assist in the investigation process. Through the group-wide reporting system, Compliance Responsibles throughout the BMW Group report...

  • Page 187
    ... a discount of â,¬ 20.83 (2014: â,¬ 25.00) per share compared to the market price (average closing price in Xetra trading during the period from 5 to 11 November 2015: â,¬ 74.49). All employees of BMW AG and its (directly or indirectly) wholly owned German subsidiaries (if agreed to by the directors...

  • Page 188
    ... comprise mainly the use of Company and leased cars as well as the payment of insurance premiums, contributions towards security systems and an annual medical check-up. Members of the Board of Management are also entitled to purchase vehicles and other services of the BMW Group at conditions that...

  • Page 189
    ... in the event that the dividend paid on the shares of common stock is between 101 and 110 cents. If the Group net profit were below â,¬ 1 billion, or if the post-tax return on sales were less than 2 %, the earnings factor for the financial year 2015 would be zero. In this case, no corporate earnings...

  • Page 190
    ...further share of common stock or the equivalent amount in cash. Contractual agreement, main points: use of Company cars, insurance premiums, contributions towards security systems, medical check-up Retirement and surviving dependants' benefits Model a) Defined benefits (only applies to board members...

  • Page 191
    ... account arises from annual contributions paid in, plus interest earned depending on the type of investment. If a member of the Board of Management with a vested entitlement dies prior to the commencement of benefit payments, a surviving spouse or otherwise surviving children - in the latter case...

  • Page 192
    ... Total value of benefits allocated in 2 financial year 168 STATEMENT ON CORPORATE GOVERNANCE (Part of Management Report) 168 Information on the Company's Governing Constitution 169 Declaration of the Board of Management and of the Supervisory Board pursuant to § 161 AktG 170 Members of the Board...

  • Page 193
    ... value at reporting date). Member of the Board of Management until 13. 05. 2015. 3 Member of the Board of Management since 13. 05. 2015. 4 Disclosures for the previous year include amounts relating to a member of the Board of Management who left office during the financial year 2014. 5 Service cost...

  • Page 194
    ... financial year under report was resolved by shareholders at the Annual General Meeting on 14 May 2013 and is set out in Article 15 of BMW AG's Articles of Incorporation, which can be viewed and / or downloaded at www.bmwgroup.com / ir under the menu items "Facts about the BMW Group" and "Corporate...

  • Page 195
    ... 2015. 6 Figures for the previous year include the remuneration of members of the Supervisory Board who left office during the financial year 2014. 3. Other Apart from vehicle lease contracts entered into on customary market conditions, no advances and loans were granted by the Company to members...

  • Page 196
    ... the applicable reporting principles, the Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and profit of the Group, and the Group Management Report includes a fair review of the development and performance of the business and the position of...

  • Page 197
    ... income for group, the balance sheet for group, cash flow statement for group, group statement of changes in equity and the notes to the group financial statements and its report on the position of the Company and the Group for the business year from 1 January to 31 December 2015. The preparation...

  • Page 198
    ... Statement Cash and cash equivalents at balance sheet date Operating cash flow Automotive segment 4 Capital expenditure Capital expenditure ratio (capital expenditure / revenues) Personnel Workforce at year-end 5 Personnel cost per employee Dividend Dividend total Dividend per share of common stock...

  • Page 199
    ... at balance sheet date Operating cash flow Automotive segment 4 Capital expenditure Capital expenditure ratio (capital expenditure / revenues) Personnel 100,306 84,887 95,453 83,141 96,230 72,349 100,041 75,612 107,539 76,704 106,575 76,621 Workforce at year-end 5 Personnel cost per employee...

  • Page 200
    ... markets with 30 production and assembly plants, 42 sales subsidiaries and a research and development network. -H -R Headquarters Research and Development BMW Group Research and Innovation Centre (FIZ), Munich, Germany BMW Group Research and Technology, Munich, Germany BMW Car IT, Munich, Germany...

  • Page 201
    ... plant Rosslyn, South Africa BMW Group plant Spartanburg, USA BMW Group plant Steyr, Austria BMW Group plant Swindon, GB BMW Group plant Wackersdorf Rolls-Royce Manufacturing Plant, Goodwood, GB BMW Brilliance Automotive, China (joint venture - 3 plants) SGL Automotive Carbon Fibers (joint operation...

  • Page 202
    ... appropriate accounting period. Derivatives The proportion of equity (= subscribed capital, reserves, accumulated other equity and minority interest) to the balance sheet total. Free cash flow Financial products, whose measurement is derived principally from market price, market price fluctuations...

  • Page 203
    ... body, and in which BMW AG is at the same time (directly or indirectly) a shareholder - has control (directly or indirectly) over another enterprise on the basis of a control agreement or a provision in the statutes of that enterprise. Supplier relationship management Cash inflow from the operating...

  • Page 204
    ... to the Corporate Governance Code 169 Dividend 89, 118 Dow Jones Sustainability Index World 46 E Net profit 4, 49 et seq. New financial reporting rules O 109 et seq. Earnings per share 49, 102, 118 Efficient Dynamics 39 Employees 44 et seq. Equity 55 et seq., 132 et seq. Exchange rates 23 et...

  • Page 205
    ... 56 Balance sheet structure - Group 56 BMW Group value added 58 Risk management in the BMW Group 68 Production and sales volume Tangible, intangible and investment assets 103, 122 et seq. Trade payables 146 Trade receivables 60 et seq., 131 BMW Group - key automobile markets 29 BMW Group sales...

  • Page 206
    206 Financial Calendar Annual Accounts Press Conference Analyst and Investor Conference Quarterly Report to 31 March 2016 Annual General Meeting Quarterly Report to 30 June 2016 Quarterly Report to 30 September 2016 Annual Report 2016 Annual Accounts Press Conference Analyst and Investor ...

  • Page 207
    207 OTHER INFORMATION Contacts Business and Finance Press Telephone Fax E-mail Investor Relations + 49 89 382-2 45 44 + 49 89 382-2 41 18 + 49 89 382-2 44 18 [email protected] Telephone Fax E-mail The BMW Group on the Internet + 49 89 382-2 42 72 + 49 89 382-2 53 87 + 49 89 382-1 46 61 ir@...

  • Page 208

  • Page 209
    ... BMW Group Annual Report was printed on paper with the Blue Angel eco-label. The paper used was produced, climate-neutrally and without optical brighteners and chlorine bleach, from recycled waste paper. The corresponding emissions were compensated by additional climate protection measures as part...

  • Page 210
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