BMW 2014 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
26 Overall Assessment by Management
26 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
44 Workforce
45 Sustainability
49 Results of Operations, Financial
Position and Net Assets
61 Comments on Financial Statements
of BMW AG
64 Events after the End of the
Reporting Period
65 Report on Outlook, Risks and
Opportunities
82 Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
83
Disclosures Relevant for Takeovers
and Explanatory Comments
87 BMW Stock and Capital Markets
Financial Services segment remains on growth course
The Financial Services segment achieved its best figures
to date in 2014, despite a difficult market environment.
4,359,572 lease and credit financing contracts were in
place with dealers and retail customers at the end of the
reporting period (2013: 4,130,002 contracts; + 5.6 %).
Business volume in balance sheet terms grew by 14.3 %
to stand at € 96,390 million (2013: € 84,347 million).
The Financial Services segment is represented in more
than 50 countries, serving the dealer organisation as a
strong and reliable partner. Credit financing and the
lease of cars and motorcycles to retail and business cus-
tomers is the segment’s largest line of business. Multi-
brand business, operated under the brand name
“Alphera”, also covers the financing of vehicles of other
manufacturers. The Financial Services segment offers
fleet business services under the brand name “Alphabet”.
It also supports the Group’s dealer organisation by
providing financing for dealership vehicle inventories,
real estate and equipment. Supplementing its lease
and credit financing business, the segment also offers
its customers selected insurance and banking services.
New business up again on previous year
Credit financing and leasing business with retail cus-
tomers once again made a significant contribution
to the segment’s success in 2014. In total, 1,509,113
new contracts were signed during the reporting period,
slightly more (+ 2.6 %) than one year earlier (2013:
1,471,385 contracts).
Leasing business grew year-on-year by 5.2 %, credit
financing by 1.2 %. As a proportion of new business,
leasing accounted for 34.7 % and credit financing for
65.3 %. The proportion of new BMW Group cars leased
or financed by the Financial Services segment was
41.7 %, 2.3 percentage points lower than in the pre-
vious
year (2013: 44.0 %).
FINANCIAL SERVICES SEGMENT
In the used car financing line of business, 334,289 new
contracts for BMW and MINI brand cars were signed
in 2014, 5.8 % more than in the previous year (2013:
315,919 contracts).
The total volume of all new credit and leasing contracts
concluded with retail customers during the twelve-
month period under report amounted to € 41,318 mil-
lion, an increase of 5.3 % (2013: € 39,241 million).
The increase in new retail customer business is reflected
in the overall contract portfolio. In total, 4,005,428
con-
tracts were in place with retail customers at 31 December
2014 (2013: 3,793,768 contracts; + 5.6 %). As in pre vious
years, growth was recorded across all regions, with
in-
creases in the Europe / Middle East / Africa region (+ 6.5 %),
the Americas region (+ 4.0 %) and for the EU Bank
(+ 0.4 %).
The most significant rise was again recorded in the
Asia / Pacific region, where the contract portfolio grew
by 20.1 %.
Further growth of fleet business
Alphabet, with its wide range of multi-brand products,
is one of the top four fleet service providers in Europe.
Alongside fleet management and financing, the broad
product range also includes full service leasing. In total,
a portfolio of 555,349 fleet vehicle contracts was being
managed at the end of the reporting period, up slightly by
3.7 % compared to one year earlier (2013: 535,528 con-
tracts).
Decrease in multi-brand financing
The volume of multi-brand financing decreased mod-
erately in 2014. Against the background of continued
profitable portfolio growth and greater competition,
the number of new contracts fell by 8.7 % to stand at
165,776 contracts (2013: 181,605 contracts). A portfolio
of 465,702 contracts (2013: 452,009 contracts; + 3.0 %)
was in place at 31 December 2014.
Contract portfolio of Financial Services segment
in 1,000 units
4,400
4,200
4,000
3,800
3,600
3,400
3,200
10 11 12 13 14
3,190 3,592 3,846 4,130 4,360
BMW Group new vehicles financed by
Financial Services segment
in %
50
40
30
20
10
10 11 12 13 14
Financing 24.1 20.0 20.7 22.5 20.8
Leasing 24.1 21.1 19.7 21.5 20.9