BMW GROUP ANNUAL REPORT 2010
Our changing world constantly demands new ideas. At the BMW Group, we are working to create cutting-edge mobility solutions for the future. We are a sustainable company. That is why we accept responsibility for resources, the environment and society. Our goal is clear: for every person to be able to experience the freedom of individual mobility. We offer premium solutions for personal transportation. Our strong brands and outstanding products inspire and impress our customers around the world. We have a clear strategy which we implement consistently. That is what makes BMW Group different.
The GINA light visionary car is one of the many ways BMW Group is looking forward to the future of individual mobility.
CONTENTS —
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6 LETTER TO SHAREHOLDERS
A COMPANY PORTRAIT — Bayerische Motoren Werke G.m.b.H. came into being in 1917, having been founded in 1916 as Bayerische Flugzeugwerke AG (BFW); it became Bayerische Motoren Werke Aktiengesellschaft (BMW AG) in 1918. The BMW Group is one of the ten largest car manufacturers in the world. With our BMW, MINI, and RollsRoyce brands, we possess three of the strongest premium brands in the automobile industry. We also command a strong market position in the motorcycle sector and operate successfully in the field of financial services.
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STRATEGY NUMBER ONE 10 14 18 22
FUTURE GROWTH CUSTOMERS PROFITABILITY
24 FINANCIAL STATEMENTS Long-term thinking and responsible action have long been the cornerstones of our success. Striving for ecological and social sustainability along the entire valueadded chain, taking full responsibility for our products and giving an unequivocal commitment to preserving resources are prime objectives firmly embedded in our corporate strategy. For these reasons, the BMW Group has been sector leader in the Dow Jones Sustainability Indices for the last five years.
REVENUE — in euro billion
fifty point seven 2009
REVENUE BY REGION — in euro million
53.2
2008
56.0
REST OF EUROPE 12,911
NORTH AMERICA 11,724
DELIVERIES OF AUTOMOBILES — in thousand units
1,286.3 2009
GERMANY 11,436
1,435.9
2008
1,500.7
ASIA/OCENIA 8,495 UNITED KINGDOM 4,078 OTHER MARKETS 2,037
PROFIT BEFORE FINANCIAL RESULT — in euro million
two hundred eighty-nine 2009 2008
921 4,212
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GINA light visionary concept vehicle. MINI-E car number 56, part of a 600 car field trial in 2009 to test e-mobility in everyday situations.
LADIES AND GENTLEMEN — The BMW Group achieved positive group earnings for the 2010 financial year, despite the global economic crisis. The company remains the automobile industry’s leading premium manufacturer. More than 1.28 million customers purchased a BMW, MINI, or Rolls-Royce last year, and over 87,000 customers bought a BMW motorcycle. Sales benefitted only marginally from the national stimulus programs initiated in many countries. Our accomplishments in 2009 were realized as an independent company. We continue to chart our own course with courage and determination — and with a clear view to the future. As you read this annual report, you will learn more about how we are preparing to face the future. It will illustrate how we are translating the four pillars of our Strategy Number ONE — Future, Growth, Customers, and Profitability — into action. It also cites many examples of
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how we are conserving resources and gradually realizing sustainable mobility. Ultimately, companies and products are made by people. Here you can learn about the people behind our products: Who are the men and women who make up the BMW Group? Above all, you will have the opportunity to get to know our customers. Who buys our vehicles and why? What does their BMW, MINI, or RollsRoyce mean to them? We will continue to push ahead with Efficient Dynamics. Our Efficient Dynamics measures have drastically reduced fuel consumption and CO2 emissions across our entire fleet. Would you ever have believed that BMW could be the world’s most environmentally friendly premium brand? Or that the average fleet consumption of the BMW and MINI fleets could be lower than that of the mass manufacturers? No automobile manufacturer uses resources more efficiently than us. Everybody is talking about sustainability — when action is what is needed. We believe our vehicles should also be produced in an environmentally responsible manner. In September 2009, the Dow Jones Sustainability Index named the BMW Group as the leading company in
Kinetic sculpture at Munich museum— featured in new 5 series commerical. Vehicles waiting for assembly in our India plant.
Detail of the flexible fabric covering GINA .
the automobile sector for the fifth consecutive year. For us this is both an incentive and obligation. We are committed to sustainability in all areas. That is why we decided to send a clear signal and withdraw from Formula One at the end of the 2009 season — although it was not an easy decision after ten years of successfully competing at the highest level in motorsports. We achieved a great deal in 2009. I would like to thank every single one of our 96,230 employees for their outstanding personal dedication. I would also like to thank our customers for their confidence in our products and our company, as well as our entire retail network. We have also continued to work productively with our suppliers. Last but not least, I would like to thank our shareholders and investors for their commitment to the BMW Group — particularly in these times of economic crisis. The effects of the economic crisis will continue to be felt in 2010. However, we are cautiously optimistic that we will be able to resume our growth path this year.
We believe in the future of individual mobility — and we are already creating it.
Norbert Reithofer Chairmen of the Board of Management
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FUTURE preparing for the future by thinking ahead
creating individual mobility of the future
PROFITABILITY STRATEGY NUMBER ONE — The Strategy Number ONE adopted in 2007 has put us on the right path to a successful future. The business was given a new strategic direction with an emphasis on profitability and long-term value growth. The time has come not only to define mobility in the 21st century, but to realize it. Only the best ideas and concepts will succeed: concepts which align our own needs with those of our customers and with the challenges society faces - and in doing so create a new state of balance that will benefit us all.
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winning new customers through technological leadership
CUSTOMERS
GROWTH
developing a growth market
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STRATEGY NUMBER ONE — FUTURE: project i
INVENTING THE FUTURE — BY PUTTING IT TO THE TEST They are highly efficient, quiet, and when run on energy from renewable sources, unbeatably fuel-efficient and low in emissions. Electric motors will undoubtedly play an important part in the future of the automobile. But what does the e-mobility experience feel like today? What is it like to drive an electric car on a daily basis? In other words, what can we learn from the future? The BMW Group answers with the help of around 600 MINI E drivers from NYC, LA, London, Berin + Munich.
THE DRIVERS: Roughly 600 MINI customers in three countries THE CITIES: New York, Los Angeles, London, Berlin, Munich THE CAR: MINI E with a 150 kW electric motor and lithium-ion battery THE AIM: To test e-mobility in everyday situations
MEET THE DRIVERS —
MINI E no. 246 Rebecca Kulli Malibu, California
MINI E no. 250 Tom Moloughney Montclair, New Jersey
MINI E no. 15 Hudson Ledwon Berlin, Germany
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WHAT WAS YOUR BEST EXPERIENCE WITH YOUR MINI E SO FAR?
There are too many to mention. For a start, everyone smiles at you. Truck drivers see the “E” sign on the roof of the car and give me a thumbs-up. My clients from out of town are quite happy to drive around L.A. all day in it. And my ten-year-old granddaughter, Michelle, thinks the MINI E is really, really cool...both style-wise and environmentally.
IS THE MINI E YOUR ONLY CAR OR DO YOU DRIVE ANY OTHER CARS?
SO WHAT IS YOUR VERDICT AFTER SIX MONTHS DRIVING THE MINI E?
I own a sports car - but I haven’t been driving it much since I got the MINI E. I also drive a pickup truck, which costs me about 23 cents per mile to drive at today’s fuel prices. But the electricity to operate the MINI E only costs about three to four cents per mile and prices are more stable.
I love it! I used the car every day and ended up driving about 5,000 kilometers through Berlin during the six months or so I had it. If it had been up to me, I would have liked to keep it longer - even though there are obviously a few restrictions involved in driving an electric prototype. For example, the performance of the lithium-ion battery diminished considerably when temperatures in Berlin plunged before Christmas.
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CONCLUSION 1 — MINI E PASSES THE TEST Having 600 or so drivers on the roads in their electricpowered MINI E cars in five totally different cities, day in, day out, results in numerous sets of extremely valuable experiences. The kind of e-mobility that the MINI E brings to the road is perfectly suitable for everyday driving. The customers selected to participate in the field trial used their MINI E just like they would a conventional vehicle: to commute to work, to go shopping or to drive to the cinema. Their average trip distance was 41 kilometers. This is just a sample of what a prototype like the MINI E can already accomplish today - and impressive proof that e-mobility is not just an amazing form of everyday transportation, but also a viable one.
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AVERAGE TRIP DISTANCE — in kilometers
fourty-one
CONCLUSION 2 — FUTURE TECHNOLOGY ON THE ROAD TODAY: The MINI E field trial is now entering its second phase, with additional test drivers in new cities. We are already presenting the next step on the road to sustainable CO2free mobility: the BMW Concept Active E. This concept vehicle will be powered by a new, specially designer synchronous electric motor. In 2011, a trial fleet of these vehicles will make their debut on the roads. Their purpose will be to provide additional feedback from customers and test a preliminary version of the drivetrain for the forthcoming Megacity Vehicle.
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Bayerische Motoren Werke Aktiengesellschaft 80788 Munich Germany Telephone +49 89 382-0