BMW 2015 Annual Report Download - page 66

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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
27 Overall Assessment by Management
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
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
63 Outlook
68 Report on 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
Automotive segment
Deliveries to customers: slight increase expected
The BMW Group forecasts successful sales volume per-
formances for all three of its brands in 2016. Apart
from aiming for evenly balanced growth in the various
regions, a sharp eye is also always kept on profitability.
Based on these forecasts, the BMW Group is set to re-
main at the forefront of the premium segment in 2016.
Assuming economic conditions remain stable, deliveries
to customers are expected to rise slightly to a new re-
cord level (2015: 2,247,4851 units).
Although the overall pace of growth may be marginally
weaker than one year earlier, the combination of attrac-
tive new models and good market conditions, particu-
larly in Europe, should nevertheless provide additional
impetus for vehicle sales. Most notably, the previous
year’s upward trend on southern European markets is
set to continue. By contrast, the situation on the Russian
car market is likely to remain tense over the forecast pe-
riod. Despite progressive normalisation on the Chinese
market, Asia as a whole is expected to provide a certain
degree of momentum for growth. Sales volume in the
USA is also forecast to rise slightly.
A good contribution to overall sales performance in 2016
is expected to come from the new models available since
mid-2015, including the new seven-seater BMW 2 Series
Gran Tourer and the model updates of the BMW 3 Series
Sedan, the 3 Series Touring and the M3. The second
generation of the extremely successful BMW X1 was
launched in October 2015. The highly efficient BMW X5
xDrive40e has been in showrooms since the end of
2015. This plug-in hybrid vehicle represents the next
step in the process of transferring innovative drivetrain
system technologies from BMW i models to the core
BMW brand. At the end of October 2015, the sixth gen-
eration of the BMW 7 Series heralded the beginning of a
new era in the luxury segment. The new MINI Clubman
has also been on the market since the end of October
2015.
Further additions to the model range will also be made
in the course of 2016. February saw the launch of the
new BMW X4 M40i. The premium small car segment
was enriched by the addition of the new version of the
MINI Convertible in early March. A luxury convertible,
the Rolls-Royce Dawn, will become available during the
first half of the year.
Carbon fleet emissions2: slight decrease expected
Regulations governing vehicle carbon emissions are be-
coming stricter all around the world. Developing highly
efficient combustion engines and increasing the scope
of electrification in its fleet of vehicles are key aspects in
the BMW Group’s constant efforts to reduce fuel con-
sumption and carbon emissions, without compromising
its excellent standards in terms of sporting flair and
dynamic driving performance. Fleet emissions are fore-
cast to improve slightly in 2016, thus continuing the
trend seen in previous years (2015: 127 grams CO2 / km).
Revenues: slight increase expected
The positive business performance predicted for the
BMW
Group will also be reflected in Automotive seg-
ment revenues. A slight increase in segment revenues
is therefore predicted for the forecast period (2015:
€ 85,536 million).
EBIT margin in target range between 8 and 10 % expected
An EBIT margin in a range between 8 and 10 % (2015:
9.2 %) remains the target for the Automotive segment.
Segment RoCE is forecast to decrease moderately (2015:
72.2 %). However, the long-term target RoCE of at least
26 % for the Automotive segment will be easily surpassed.
Motorcycles segment
Deliveries to customers: slight increase expected
The BMW Group expects the upward trend in the Motor-
cycles segment to continue. The new R NineT Scrambler
and G 310 R models unveiled
at last autumn’s trade fairs
will broaden the product portfolio and attract new cus-
tomer groups. Overall, deliveries
of BMW motorcycles to
customers are forecast to increase
slightly year-on-year
(2015: 136,963 units).
Return on capital employed: slight decrease expected
Segment RoCE is forecast to decrease slightly in 2016
(2015: 31.6 %), mainly reflecting the scheduled build-up
of inventory levels due to the Indian partner entity, TVS,
1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang
(2015:
282,000 units).
2 EU-28.