BMW 2013 Annual Report Download - page 28

28
18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
24 Report on Economic Position
24 Overall Assessment by Management
24 General and Sector-specific
Environment
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
40 Purchasing
41 Sales and Marketing
42 Workforce
44 Sustainability
47 Results of Operations, Financial
Position and Net Assets
56 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
Consolidated Financial Reporting Process
82
Disclosures Relevant for Takeovers
and Explanatory Comments
85 BMW Stock and Capital Markets
three brands proved their underlying strength by post-
ing new sales volume records totalling 1,655,1381 units
(2012: 1,540,085
1
units; + 7.5 %) for the BMW brand,
305,030 units (2012: 301,526 units; + 1.2 %) for the MINI
brand and 3,630 units (2012: 3,575 units; + 1.5 %) for
the Rolls-Royce brand. These sales figures enabled the
BMW Group to retain its pole position in the premium
segment worldwide. As forecast for 2013, the number of
cars sold climbed at a single-digit percentage level and
hence in line with our expectations.
Fleet carbon emissions2, 3
The BMW Group is continually reducing fleet carbon
emissions by making its drivetrain systems more effi-
cient and increasing the scope of electrification, while
still setting standards in terms of sporting flair and
dynamic driving pleasure.
The volume of carbon emissions produced by our vehi-
cle fleet sold in Europe3 continued to fall thanks to the
rigorous deployment of our Efficient Dynamics tech-
nologies, and amounted to 133 g CO2 / km (2012: 138 g
CO2 / km; – 3.6 %).
Revenues2
Revenues from the sale of BMW, MINI and Rolls-Royce
brand cars edged up by 0.6 % to € 70,629 million (2012:
€ 70,208 million), despite a challenging competitive en-
vironment. We put this development down primarily to
the expansion and rejuvenation of our model portfolio
on the one hand and generally favourable economic
conditions on the other. Revenues generated in Asia
and the Americas rose sharply, due to the good growth
rates enjoyed in these regions. By contrast, our automo-
bile business in Europe had to wrestle with challenging
conditions, under pressure from the effects of recent
crises.
EBIT margin and return on capital employed
The EBIT margin in the Automotive segment (profit be-
fore
financial result divided by revenues) came in at
9.4 % (2012: 10.8 %4). This performance was within our
forecast target corridor of 8 to 10 % and reflected strong
demand for our premium brands. The return on capital
employed (RoCE) was 63.3 % (2012: 73.7 %) and thus
well ahead of our target return of at least 26 %. Both per-
formance indicators were therefore in line with the fore-
casts expressed in the previous year’s outlook.
Motorcycles segment
Sales volume
Despite the sharp contraction seen in numerous motor-
cycle markets, the Motorcycles segment achieved a new
sales volume record in the year under report. In total,
115,215 BMW motorcycles (2012: 106,358 units; + 8.3 %)
were sold worldwide. As forecast for 2013, motorcycles
sales volume continued to rise and was therefore in line
with our expectations.
Return on capital employed2
The return on capital employed (RoCE) in the Motorcy-
cles segment improved from 1.8 % in 2012 to 16.4 % in
2013, reflecting strong demand for our premium prod-
ucts and the good progress made in general by the seg-
ment. Moreover, the previous year’s RoCE was affected
by the sale of Husqvarna Motorcycles.
Financial Services segment
Return on equity
The Financial Services segment can look back on a
highly successful year, with credit and leasing business
with retail customers remaining one of the key growth
drivers. The return on equity (RoE) of 20.2 % (2012:
21.2 %4) exceeded the target of at least 18 % and was
thus in line with expectations.
1 Includes cars manufactured by the BMW Brilliance joint venture.
2 Not included in the previous year’s outlook.
3 EU-27.
4 Prior year figures have been adjusted in accordance with the revised version of
IAS 19, see note 7.