BMW 2015 Annual Report Download - page 27

27 COMBINED MANAGEMENT REPORT
Overall assessment of business performance
The BMW Group has every reason to be satisfied with its
performance in 2015. The overall picture was pleasing
in terms of results of operations, financial position and
net assets. Overall, management expectations for the
period were therefore met. This assessment also takes
into account events after the end of the reporting period.
Financial and non-financial performance indicators
In the following section, we report on the principal finan-
cial
and non-financial performance indicators used as
the basis for managing the BMW Group and its segments.
As part of the review of operations and the financial
condition of the BMW Group, forecasts made the
pre-
vious year for the financial year 2015 are compared with
actual outcomes in 2015.
BMW Group
Profit before tax
Despite facing strong competition on the world’s
auto-
mobile markets and investing heavily in new technologies
as well as in the expansion of its production network, the
BMW Group remained firmly on course in 2015. Profit
before tax came in at a new all-time high of € 9,224 mil-
lion (2014: € 8,707 million; + 5.9 %). In addition to gen-
erally
strong demand for the Group’s brands, earnings
also increased on the back of favourable currency fac-
tors. Good contributions to earnings also came from the
BMW X6 and X4 models launched at the end of 2014,
as well as from the BMW 2 Series with its various new
models and from the new MINI 3- and 5-door models.
As predicted in the outlook for the financial year 2015,
the Group’s profit before tax achieved a solid growth
and was therefore in line with expectations.
Workforce at year-end
At the end of 2015, the BMW Group employed a
work-
force of 122,244 people (2014: 116,324 people; + 5.1 %).
This solid increase in the workforce mainly reflects
strong
demand for the BMW Group’s brands of automo-
biles and motorcycles as well as the broader range of
mobility services now on offer. The BMW Group also
recruited skilled staff aimed at the increasingly digitali-
sation and at driving the continued development of
electric mobility.
As predicted in the outlook for the financial year 2015,
there was a solid increase in size of the BMW Group’s
workforce, which was therefore in line with expectations.
Automotive segment
Sales volume
The Automotive segment sold a record number of ve-
hicles for the fifth year in succession. Despite the in-
creasing
normalisation of the market in China and the
tense geopolitical situation worldwide, most notably
the conflict hot spots in the Middle East, sales of BMW,
MINI and Rolls-Royce brand vehicles grew by a solid
6.1 % to 2,247,485
1
units (2014: 2,117,965
1
units). The
upward trend reflects the success of numerous new
models, including the expanded range of BMW 2 Series
models launched internationally during the year under
report. The MINI 3- and 5-door models introduced in
2014 also made an important contribution. This perfor-
mance enabled the BMW Group to retain a leading posi-
tion in the premium segment worldwide.
The number of BMW brand vehicles sold during the
twelve-month period increased to 1,905,234
1
units (2014:
1,811,719
1
units; + 5.2 %). MINI recorded a significant
sales volume increase of 12.0 % during the year under
report (338,466 units; 2014: 302,183 units). Rolls-Royce
Motor Cars sold 3,785 units (2014: 4,063 units; – 6.8 %).
As predicted in the Annual Report 2014 for the
finan-
cial year 2015, the total number of cars sold by the
BMW Group rose by 6.1 % and was therefore in line
with
expectations.
Fleet carbon emissions2
The BMW Group continually strives to reduce fuel con-
sumption and carbon emissions by deploying innovative
technologies developed in conjunction with the Group’s
Efficient Dynamics strategy. The outcome of these en-
deavours is highly efficient combustion engines and
electric drive systems that set standards in terms of both
dynamic flair and driving pleasure. The volume of car-
bon emissions produced by our vehicle fleet sold in
Europe was reduced slightly to 127 grams CO
2
/ km
(2014: 130 grams CO
2
/ km; – 2.3 %) during the year un-
der report.
As predicted in the outlook for the full year 2015, carbon
fleet emissions fell slightly and were therefore in line
with forecast.
Revenues
Segment revenues rose by 13.8 % to € 85,536 million
(2014: € 75,173 million), driven by a strong sales volume
performance and favourable currency factors. The re-
vised forecast for the year from a solid increase to a
significant increase, as communicated in the Quarterly
Report to 31 March 2015, was therefore borne out. In
the Annual Report 2014, the forecast had been a solid
in-
crease in Automotive segment revenues.
Report on Economic Position
Overall Assessment by Management
Financial and Non-financial Performance Indicators
1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2014:
275,891 units, 2015: 282,000 units).
2 EU-28.