BMW 2015 Annual Report Download - page 36

36
18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
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
29 Automotive Segment
35 Motorcycles 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 Outlook, Risks and
Opportunities
81 Internal Control System and Risk
Management System Relevant for the
Financial Reporting Process
83
Disclosures Relevant for Takeovers
and Explanatory Comments
87 BMW Stock and Capital Markets
further markets in Asia and Latin America. The new
model initiative will also be expanded, including the ad-
dition of products that provide greater urban mobility.
Sales volume growth should also benefit from the new
premium models in the under-500 cc segment and a
significantly expanded dealership network. The market
launch of the G 310 R in the second half of 2016 will
be an initial step in this direction. This motorcycle is
designed to appeal to new markets and a younger tar-
get group and will be produced in cooperation with
the
TVS Motor Company in India.
Significant increase in motorcycle production
Overall, the BMW Group produced 151,004 motor-
cycles during the year under report (2014: 133,615 units;
+ 13.0 %). This significant rise partly reflects the growing
importance of BMW’s production plants in Brazil, where
8,555 motorcycles were assembled (2014: 5,996 units;
+ 42.7 %) and in Thailand, where production more than
doubled to reach 2,712 units (2014: 1,169 units).
In line with the new growth strategy, during the year un-
der report the decision was taken to expand the BMW
motorcycle manufacturing plant in Berlin. Moreover, a
new, state-of-the-art logistics centre is due to be con-
structed
right next to the Berlin plant.
Financial Services segment continues to grow
The Financial Services segment remained on course in
2015, delivering another good performance within a diffi-
cult
market environment. In balance sheet terms, busi-
ness volume grew by 15.4 % to stand at € 111,191 million
(2014: € 96,390 million), partly as a result of favourable
currency factors. The contract portfolio under manage-
ment at 31 December 2015 comprised 4,718,970
con-
tracts (2014: 4,359,572 contracts; + 8.2 %).
Further growth in new business
As in the previous year, credit financing and leasing busi-
ness
with retail customers was an important part of the
segment’s success in 2015. In total, 1,655,961 new con-
tracts were signed during the period under report, 9.7 %
more than in the previous year (2014: 1,509,113 con-
tracts). Leasing business registered a significant
in-
crease, growing year-on-year by 11.5 %. Credit financing
increased by 8.8 %. As a proportion of new business, leas-
ing
accounted for 35.3 % and credit financing for 64.7 %.
The proportion of new BMW Group vehicles* leased or
financed by the Financial Services segment was 46.3 %,
an increase of 4.6 percentage points over the previous
year (2014: 41.7 %).
In the BMW and MINI brand pre-owned vehicle financ-
ing and leasing lines of business, the number of new
contracts signed by the segment fell slightly (– 2.1 %) to
327,391 contracts (2014: 334,289 contracts).
FINANCIAL SERVICES SEGMENT
Contract portfolio of Financial Services segment
in 1,000 units
4,900
4,200
3,500
2,800
2,100
1,400
700
11 12 13 14 15
3,592 3,846 4,130 4,360 4,719
* The calculation only includes automobile markets, in which the Financial Services
segment is represented by a consolidated entity.