BMW 2015 Annual Report Download - page 7

7 REPORT OF THE SUPERVISORY BOARD
Dear Shareholders,
Despite the volatile conditions prevailing on various markets, the BMW Group finished the financial year
2015 with another outstanding earnings performance, reaffirming its position as market leader in the
premium segment.
The BMW Group is now headed by Harald Krüger, who became the new Chairman of the Board of
Management on 13 May 2015. With this carefully planned generational change at the top of the Board of
Management, the Supervisory Board has not only ensured personnel continuity, it has also made an
impor tant contribution to shaping the future strategy of the BMW Group.
Main emphases of the Supervisory Board’s monitoring and advisory activities The Supervisory Board
performed the duties charged to it in accordance with the law and the Articles of Incorporation with the
utmost care. Throughout the financial year 2015, the Supervisory Board closely monitored the BMW Group’s
business performance and macroeconomic developments on important markets, diligently supervised the
governance of the Board of Management and advised it on significant projects and plans.
In a total of five meetings, the Supervisory Board deliberated at great length on the current business and
financial situation of the Group. Further topics of particular focus and consultation at Supervisory Board
meetings were corporate strategy (including a whole range of key topics involving the future shape of
business), corporate forecasts and the strategy and management of the Financial Services segment. In addi-
tion, decisions were taken regarding personnel changes on the Board of Management and with respect to
corporate governance.
Furthermore, the Supervisory Board attentively monitored the BMW Group’s business performance,
both at scheduled meetings and at other times, as the need arose. In particular, 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. In addition to scheduled meetings,
Dr Friedrich Eichiner, member of the Board of Management responsible for Finance, and Dr Karl-Ludwig Kley,
the Chairman of the Supervisory Board’s Audit Committee, consulted with each other directly at other times.
In its regular reports on the financial condition of the Group, the Board of Management provided infor-
mation on sales volume developments, market competition issues relevant for the Automotive and Motorcycles
segments, and changes in the size of the workforce. The Board of Management also dealt with questions re-
garding economic developments and the prospects of the world’s key regions. On the Financial Services side
of the business, the Board of Management provided regular updates on new business with retail customers
and changes in the portfolio of contracts with dealerships and retail customers as well as the total volume of
business. In its regular reports on the financial condition of the Group, the Board of Management also
reported to the Supervisory Board on any variances from budget.
Major transactions and projects were highlighted in the Board of Management’s reports on business
developments, and deliberated on in subsequent discussions. For example, the Supervisory Board was kept
informed of the status of acquisition projects, such as the joint acquisition of the navigation data provider
HERE in conjunction with other partners as well as the purchase of a leasing company in China. Furthermore,
the Board of Management reported on the BMW Group’s compliance with emissions limits and confirmed
that no distinction is made between “dyno mode” and on-road testing when measuring the exhaust emissions
of BMW Group vehicles. Over the course of the year under report, the two boards discussed at length eco-
nomic developments and business performance in China. Other subjects of discussion were progress in the
field of electric mobility, product quality and customer satisfaction.
Furthermore, the Board of Management provided detailed information on both the ongoing status and
its plans for expanding capacities at various BMW Group production sites.