BMW 2010 Annual Report Download - page 74

72
12 GROUP MANAGEMENT REPORT
12 A Review of the Financial Year
14 General Economic Environment
18 Review of Operations
41 BMW Group – Capital Market
Activities
44 Disclosures relevant for takeovers
and explanatory comments
47 Financial Analysis
47 Internal Management System
49 Earnings Performance
51 Financial Position
53 Net Assets Position
55 Subsequent Events Report
55 Value Added Statement
57 Key Performance Figures
58 Comments on BMW AG
62 Internal Control System and
explanatory comments
63 Risk Management
70 Outlook
achieved in efficiency and profitability are opening
upnew opportunities for us. We will therefore continue
to invest in the technologies of the future and foster
ourability to innovate. The strategy includes the
con-
tinued optimisation of the combustion engine and intel-
ligent lightweight construction in conjunction with the
Efficient Dynamics technology package as well as the
development of alternative drive systems and new
mo-
bility concepts resulting from our forward-looking
“project i”. Environmental protection legislation in place
around the world provides the necessary institutional
framework conditions.
We also remain committed to the use of innovative tech-
nologies
to reduce the fuel consumption and emission
levels of combustion engines. Our Efficient Dynamics
concept combines technological innovations in the area
of lightweight construction and drive systems, improved
aero dynamics and intelligent management of energy
flows within the vehicle. Efficient Dynamics is a global
strategy
across all models. It is incorporated as a standard
feature
of all the vehicles we produce and therefore im-
pacts the whole model range.
Ongoing field trials being conducted in the USA and
Europe with more than 600 MINI E vehicles are providing
an important insight into the requirements of future se-
ries of electrically powered vehicles.
We are using the BMW ActiveE to intensify our research
into electromobility for every-day operation and ex-
tending field trials to determine the feasibility of produc-
ing electric cars on a large-series scale. With a test fleet
ofover 1,000 vehicles in the USA, Europe and China, the
BMW ActiveE will provide further useful information
regarding daily usage as from 2011. At the same time,
drive components and energy storage systems to be used
in the Megacity Vehicle (MCV) will be tested at the pre-
series stage. The knowledge thus gained will be subse-
quently incorporated directly in the series development
of the MCV.
After its launch in 2013, the MCV will be the BMW Group’s
first series-built electrically driven car. This innovative
vehicle, specifically developed for use in the world’s major
metropolitan regions, will have zero emissions and set
new standards in terms of sustainability.
The up-front expenditure incurred will also put us in good
stead to take advantage of any new medium- or long-term
opportunities that present themselves in a changing
environment. Our premium products and services will
continue to meet our customers’ needs in the best pos-
sible way.
In 2011 we aim to achieve a higher full-year Group
profit
before tax than in 2010. The forecast earnings level
represents a further key step towards achieving the tar-
gets set out in our Strategy Number ONE.
Automobiles segment
Sales volume performance in 2011 will benefit from the
impetus provided by our new and attractive models.
Sales volumes are therefore likely to grow at a faster pace
in the first half of the year than in the second. If macro-
economic conditions remain stable and demand on major
car markets continues to revive as expected, we forecast
asales volume of more than 1.5 million BMW, MINI and
Rolls-Royce brand vehicles in 2011. New record sales
levels are being targeted for all three brands.
Thanks to the competitive strength of the BMW Group, we
are confident of being able to confirm our position as the
world’s leading premium car manufacturer. The progress
being made in the areas of efficiency and profitability
also provides a sound foundation for the future success
of the business. We therefore aim to achieve an EBIT
margin of over 8% and a ROCE of more than 26% for the
Automobiles segment.
Motorcycles segment
We forecast a further sales volume increase for the Motor-
cycles segment in 2011, albeit less pronounced than the
rise seen in 2010. The new K 1600GT and K 1600GTL
models in particular and the segment’s highly attractive
model range in general will provide the basis for another
fine performance in 2011.
Financial Services segment
The Financial Services segment is set to remain in good
shape in 2011. A noticeably less tense situation on used
car markets, an improved risk profile in the credit line of
business as well as excellent liquidity and refinancing
conditions will also make a major contribution to busi-
ness performance. We will continue our strategy of ex-
panding business on a targeted basis on growth markets.
Building BMW Bank Germany into a credit institution
operating throughout Europe will make us more flexible
in terms of liquidity and equity allocation. In addition
tothe entities in Spain, Portugal and Italy which have