Interim / Quarterly Report • Aug 1, 2013
Interim / Quarterly Report
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| 2 | BMW Group |
|---|---|
| in figures |
| 5 | Interim Group Management Report |
|---|---|
| 5 | The BMW Group – |
| an Overview | |
|---|---|
| 7 | General Economic |
| Environment |
| 2nd quarter 2013 |
2nd quarter 2012 |
Change in % | ||
|---|---|---|---|---|
| Automotive segment | ||||
| Sales volume1 | ||||
| BMW | units | 422,844 | 390,516 | 8.3 |
| MINI | units | 82,644 | 83,665 | –1.2 |
| Rolls-Royce | units | 833 | 830 | 0.4 |
| Total | 506,321 | 475,011 | 6.6 | |
| Production1 | ||||
| BMW | units | 429,912 | 367,998 | 16.8 |
| MINI | units | 89,389 | 82,957 | 7.8 |
| Rolls-Royce | units | 631 | 798 | –20.9 |
| Total | 519,932 | 451,753 | 15.1 | |
| Motorcycles segment | ||||
| Sales volume2 | ||||
| BMW | units | 40,209 | 34,816 | 15.5 |
| Production3 | ||||
| BMW | units | 33,231 | 32,108 | 3.5 |
| Financial Services segment | ||||
| New contracts with retail customers | 388,290 | 346,034 | 12.2 | |
| Workforce to 30 June4 | ||||
| BMW Group | 106,870 | 102,007 | 4.8 | |
| Financial figures Operating cash flow Automotive segment |
€ million | 2,381 | 1,4175 | 68.0 |
| Revenues | € million | 19,552 | 19,202 | 1.8 |
| Automotive | € million | 18,201 | 17,366 | 4.8 |
| Motorcycles | € million | 475 | 410 | 15.9 |
| Financial Services | € million | 5,058 | 4,866 | 3.9 |
| Other Entities | € million | 2 | 2 | – |
| Eliminations | € million | –4,184 | –3,442 | –21.6 |
| Profit before financial result (EBIT) | € million | 2,068 | 2,2676 | –8.8 |
| Automotive | € million | 1,756 | 2,0186 | –13.0 |
| Motorcycles | € million | 46 | 48 | –4.2 |
| Financial Services | € million | 468 | 441 | 6.1 |
| Other Entities | € million | 7 | 14 | –50.0 |
| Eliminations | € million | –209 | –254 | 17.7 |
| Profit before tax | € million | 2,032 | 1,9766 | 2.8 |
| Automotive | € million | 1,648 | 1,7486 | –5.7 |
| Motorcycles | € million | 45 | 47 | –4.3 |
| Financial Services | € million | 467 | 431 | 8.4 |
| Other Entities | € million | 89 | –126 | – |
| Eliminations | € million | –217 | –238 | 8.8 |
| Income taxes | € million | –640 | –6996 | 8.4 |
| Net profit | € million | 1,392 | 1,2776 | 9.0 |
1 Including the BMW Brilliance joint venture.
2 Husqvarna: 2,593 motorcycles (2012).
3 Husqvarna: 3,255 motorcycles (2012).
4 Figures exclude suspended contracts of employment, employees in the non-work phases of pre-retirement part-time arrangements and low income earners.
5 Prior year figures have been adjusted in accordance with the reclassification described in the Group Financial Statements for the year ended 31 December 2012.
6 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
7 Common/preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of €0.02 per share of preferred stock are spread over the quarters of the corresponding financial year.
2
| 1 January to 30 June 2013 |
1 January to 30 June 2012 |
Change in % | ||
|---|---|---|---|---|
| Automotive segment | ||||
| Sales volume1 | ||||
| BMW | units | 804,248 | 747,064 | 7.7 |
| MINI | units | 148,798 | 151,875 | –2.0 |
| Rolls-Royce | units | 1,475 | 1,600 | –7.8 |
| Total | 954,521 | 900,539 | 6.0 | |
| Production1 | ||||
| BMW | units | 840,838 | 746,022 | 12.7 |
| MINI | units | 159,838 | 165,086 | –3.2 |
| Rolls-Royce | units | 1,418 | 1,545 | –8.2 |
| Total | 1,002,094 | 912,653 | 9.8 | |
| Motorcycles segment | ||||
| Sales volume2 | ||||
| BMW | units | 64,941 | 59,189 | 9.7 |
| Production3 | ||||
| BMW | units | 68,452 | 66,472 | 3.0 |
| Financial Services segment | ||||
| New contracts with retail customers | 728,618 | 652,018 | 11.7 | |
| Workforce to 30 June4 | ||||
| BMW Group | 106,870 | 102,007 | 4.8 | |
| Financial figures | ||||
| Operating cash flow Automotive segment | € million | 4,349 | 3,6015 | 20.8 |
| Revenues | € million | 37,098 | 37,495 | –1.1 |
| Automotive | € million | 34,108 | 33,525 | 1.7 |
| Motorcycles | € million | 911 | 858 | 6.2 |
| Financial Services | € million | 9,888 | 9,666 | 2.3 |
| Other Entities | € million | 3 | 3 | – |
| Eliminations | € million | –7,812 | –6,557 | –19.1 |
| 4,4016 | ||||
| Profit before financial result (EBIT) Automotive |
€ million € million |
4,107 3,338 |
3,8986 | –6.7 –14.4 |
| Motorcycles | € million | 97 | 85 | 14.1 |
| Financial Services | € million | 918 | 867 | 5.9 |
| Other Entities | € million | 24 | 27 | –11.1 |
| Eliminations | € million | –270 | –476 | 43.3 |
| Profit before tax | € million | 4,035 | 4,0566 | –0.5 |
| Automotive | € million | 3,164 | 3,5706 | –11.4 |
| Motorcycles | € million | 95 | 84 | 13.1 |
| Financial Services | € million | 916 | 865 | 5.9 |
| Other Entities | € million | 156 | –316 | – |
| Eliminations | € million | –296 | –432 | 31.5 |
| Income taxes | € million | –1,331 | –1,4276 2,6296 |
6.7 |
| Net profit Earnings per share7 |
€ million € |
2,704 4.10/4.11 |
3.99/4.00 | 2.9 2.8/2.8 |
1 Including the BMW Brilliance joint venture.
3
2 Husqvarna: 1,110 motorcycles (until 5 March 2013); 5,235 motorcycles (2012).
3 Husqvarna: 1,569 motorcycles (until 5 March 2013); 6,616 motorcycles (2012).
4 Figures exclude suspended contracts of employment, employees in the non-work phases of pre-retirement part-time arrangements and low income earners.
5 Prior year figures have been adjusted in accordance with the reclassification described in the Group Financial Statements for the year ended 31 December 2012.
6 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
7 Common/preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of €0.02 per share of preferred stock are spread over the quarters of the corresponding financial year.
4
26 Income Statements 26 Statement of Comprehensive Income
representatives
* Including the BMW Brilliance joint venture.
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
The BMW Group – an Overview
The BMW Group continued to chart a successful course in the second quarter of 2013, despite a volatile political and economic environment, and defended its position as world market leader in the premium segment. A total of 506,3211 BMW, MINI and Rolls-Royce brand cars was sold during the quarter, marking a new record figure (2012: 475,0111 units; +6.6%). The BMW brand in particular performed particularly strongly, setting a new second-quarter sales volume record of 422,8441 units (2012: 390,5161 units; + 8.3%). MINI sold 82,644 units, not far short of its previous year's quarter record figure of 83,665 units (– 1.2%). Rolls-Royce Motor Cars underlined its robust condition by delivering a total of 833 units in the period from April to June 2013 (2012: 830 units; +0.4%).
The first half of the financial year 2013 progressed equally successfully, with 954,5211 BMW, MINI and Rolls-Royce brand cars delivered to customers worldwide, the highest figure to date for a six-month period (2012: 900,5391 units; +6.0%). The number of BMW brand cars sold rose by 7.7% to 804,2481 units, thus surpassing the 800,000 mark for the first time in the first six-month period of a year (2012: 747,0641 units). During this period we also sold 148,798 MINI brand (2012: 151,875 units; – 2.0%) and 1,475 Rolls-Royce brand vehicles (2012: 1,600 units; –7.8%).
BMW Motorrad marked its 90th anniversary with sales volume records both for the quarter and for the first half of the year. The Motorcycles segment gained ground in the second quarter 2013 despite persisting adverse market conditions, and achieved sales volume of 40,209 BMW motorcycles worldwide (2012: 34,816 units; +15.5%). Sales for the six-month period were up by 9.7% to 64,941 units (2012: 59,189 units).
The Financial Services segment put in another excellent performance in the second quarter, reflecting the positive trend currently being enjoyed on the automotive side of the business. A total of 388,290 new lease and credit financing contracts was concluded with retail customers during the period from April to June (2012: 346,034 contracts; +12.2%). The equivalent figure for the six-month period was 728,618 contracts, 11.7% up on the previous year (2012: 652,018 contracts). At
30 June 2013, the segment was managing a portfolio of 3,986,306 lease and credit financing contracts with retail customers and dealers (2012: 3,693,474 contracts; +7.9%).
Both revenues and earnings remained at high levels during the period under report. Group revenues in the second quarter rose by 1.8 % to € 19,552 million (2012: € 19,202 million). By contrast, at € 37,098 million, sixmonth revenues were marginally down on the previous year (2012: € 37,495 million; –1.1%).
The previous year's high EBIT figures were not quite matched. The second-quarter profit before financial result amounted to € 2,068 million, 8.8% down on the previous year (2012: € 2,2672 million). The six-month performance reflects a similar picture, with the BMW Group recording an EBIT of € 4,107 million (2012: € 4,4012 million; –6.7%).
Profit before tax, however, remained at the previous year's high level. Second-quarter EBT edged up by 2.8% to € 2,032 million (2012: € 1,9762 million), while sixmonth EBT came in at € 4,035 million (2012: € 4,0562 million; –0.5%).
The Group reports second-quarter net profit of € 1,392 million (2012: € 1,2772 million; +9.0%) and sixmonth net profit of € 2,704 million (2012: € 2,6292 million; +2.9%).
The BMW Group had a worldwide workforce of 106,870 employees at the end of the second quarter 2013 (2012: 102,007 employees; +4.8%). The BMW Group continues to hire selected skilled workers in order to keep pace with increasing business volumes on the one hand and develop new technologies on the other.
The model revision of the BMW Z4 was launched in March and the new M6 Gran Coupé and BMW 3 Series
5
1 Including the BMW Brilliance joint venture.
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
5 Interim Group Management Report 6
Gran Turismo followed in June. The revised version of the BMW 5 Series has also very recently come onto the markets. The new BMW 4 Series Coupé, the new BMW X5 and the BMW i3 electric vehicle will be making their debuts during the second half of the year. The BMW Group intends to present a variety of new models at the IAA in Frankfurt later this year.
A seventh model was added to the MINI brand range in March 2013 in the form of the MINI Paceman. Rolls-Royce Motor Cars presented the world debut of the Wraith. It is the most powerful Rolls-Royce ever built. This new model will become available at the end of 2013.
In February, the Motorcycles segment saw the launch of the new F 800 GT and a number of other special models (R 1200 R, R 1200 RT and R 1200 GS Adventure) to mark BMW Motorrad's 90th anniversary. This was followed in March by the launch of the new R 1200 GS, BMW Motorrad's most successful motorcycle to date. This bike has been exceptionally well received by customers and enjoyed much acclaim in the motorcycle press, confirming the fact that it sets new standards for long-distance enduros. The new F 800 GS Adventure has been available to customers since mid-June. In autumn BMW Motorrad will present further new models at the International Motorcycle Exhibition in Milan.
General Economic Environment
7
The world's automobile markets grew by approximately 3.3% in the first half of the year compared to the same period one year earlier. Within that overall performance, the situation on the world's major markets painted an inconsistent picture. Demand in Europe and Japan dropped once again, whereas the USA experienced continued growth. In China there were even signs that the pace of growth was beginning to pick up again.
The US market performed robustly during the period under report. So far there seems to be little evidence that fiscal consolidation measures are exerting any negative influence on demand. In fact, the automotive market in the USA grew by 7.7% compared to the previous year.
By contrast, registration figures across Europe fell by approximately 6.6%, with not only the likes of Italy (–10.1%), France (–11.4%) and Spain (–4.9%) suffering significant drops. The market in Germany, too, was 7.8% down on the corresponding period last year. The only major country in Europe to buck the trend was the United Kingdom where car registrations rose by 10.0%.
The car market in Japan contracted significantly compared to the previous year (–8.1%), primarily reflecting the fact that demand one year earlier had been exceptionally high due to the catch-up effect after the tsunami in 2011.
The Chinese car market performed extremely dynamically in the first half of the year and expanded by more than one fifth (+ 20.8%), underlining its position as one of the world's largest car markets. By contrast, the trend in Russia reversed, with car registration numbers 6.0% down on the previous year. In Brazil, on the other hand, demand for cars grew at a rate of 4.8%.
The situation on international motorcycle markets eased slightly in the second quarter compared to the first three months of the year. Nevertheless, the world's 500 cc plus class motorcycle markets contracted by 7.1% over the six-month period. Some of Europe's markets showed signs of a slight recovery in the second quarter. Across the region as whole, however, markets contracted by 10.9%.
Germany (–0.8%) and the United Kingdom (–4.7%) recorded relatively moderate declines, in contrast to France (– 16.9%), Spain (– 24.5%) and Italy (– 23.5%), where the drops were again on a double-digit scale. The US motorcycle market also took a downward turn (–7.0%). New registrations were slightly higher in Brazil (+0.6%) than one year earlier. In Japan, the 500 cc plus class motorcycle market grew by 7.2%.
Europe remained in recession throughout the first half of 2013, with various issues, such as the Cyprus crisis, the process of forming a government in Italy and structural problems in a number of countries, adding to the region's economic woes. Taking account of all these factors, in the second quarter 2013 the European Central Bank (ECB) lowered its economic forecast for the euro zone for the years 2013 and 2014 and reduced its reference interest rates by a further 0.25 percentage points to a historical low of 0.5%. Expectations of an anticipated end to the USA's expansive monetary policy unsettled money and capital markets alike, triggering further fluctuations. Credit business was largely stable compared to the situation one year earlier. The situation in Southern European countries remained tense. The world's major used car markets remained generally robust during the first half of 2013. This could not, however, be said of the markets of Southern Europe where extremely weak demand exerted a negative impact on the prices of used cars.
Automotive
60 Other Information
The BMW Group continued to perform well throughout the second quarter 2013, achieving its best sales volume figure to date with a total of 506,3211 units sold (2012: 475,0111 units; +6.6%). The BMW brand set a new record for a second quarter by selling 422,8441 units (2012: 390,5161 units; +8.3%). MINI sold 82,644 units, not far short of its previous year's record performance (2012: 83,665 units; –1.2%). Rolls-Royce handed over 833 luxury vehicles to customers worldwide during the period from April to June 2013 (2012: 830 units; +0.4%).
During the first six months of 2013, a total of 954,5211 BMW, MINI and Rolls-Royce brand cars were sold (2012: 900,5391 units; + 6.0%). The number of BMW brand cars sold rose by 7.7% to 804,2481 units, thus surpassing the 800,000 mark for the first time in the first six-month period of a year (2012: 747,0641 units). During this period we also sold 148,798 MINI brand (2012: 151,875 units; –2.0%) and 1,475 Rolls-Royce brand vehicles worldwide (2012: 1,600 units; –7.8%).
Sales in the Americas region were buoyant in the second quarter, rising by 13.8% to 117,379 units. Over the six-month period, the number of cars handed over to customers in this region climbed by 9.7% to 213,867 units. The BMW Group sold 94,039 units in the USA in the second quarter (+13.3%) and 173,156 units (+8.9%) in the first half of the year.
Business continued to flourish in Asia during the period under report, with second-quarter sales up by 19.1% to 142,724 units and six-month sales up by 14.3% to 272,943 units. The BMW Group recorded strong growth in China, both for the second quarter (96,984 units; + 22.5%) and for the six-month period (183,208 units; +15.0%). Sales volume in Japan grew by 10.1% to 30,525 units in the first six months of the year.
In Europe, by contrast, the sovereign debt crisis continued to have a dampening impact on business, with sales down by 2.9% to 229,466 units for the period from April to June and by 0.1% to 436,709 units for the first six months of the year. Market conditions in Germany were extremely difficult, with sales down by 11.5% to 70,035 units in the second quarter and by 6.1% to 133,454 units over the six-month period. However, business developed positively in Great Britain (sales region),
| Automotive | ||||
|---|---|---|---|---|
| 2nd quarter 2013 |
2nd quarter 2012 |
Change in % | ||
| Sales volume1 | units | 506,321 | 475,011 | 6.6 |
| Production1 | units | 519,932 | 451,753 | 15.1 |
| Revenues | € million | 18,201 | 17,366 | 4.8 |
| Profit before financial result (EBIT) | € million | 1,756 | 2,0182 | –13.0 |
| Profit before tax | € million | 1,648 | 1,7482 | –5.7 |
| 1 January to 30 June 2013 |
1 January to 30 June 2012 |
Change in % | ||
| Sales volume1 | units | 954,521 | 900,539 | 6.0 |
| Production1 | units | 1,002,094 | 912,653 | 9.8 |
| Revenues | € million | 34,108 | 33,525 | 1.7 |
| Profit before financial result (EBIT) | € million | 3,338 | 3,8982 | –14.4 |
| Profit before tax | € million | 3,164 | 3,5702 | –11.4 |
| Workforce to 30 June | 97,549 | 92,849 | 5.1 |
1 Including the BMW Brilliance joint venture.
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
8
where second-quarter sales increased by 6.0% to 48,677 units and six-month sales by 11.3% to 94,434 units. By contrast, six-month sales figures for France (32,445 units; –6.9%) and Italy (32,375 units; –3.5%) were down on the previous year. 20,658 units were sold in Russia during the six-month period, 15.3% more than one year earlier.
9
For the first time in the company's history, the BMW brand surpassed the 800,000 threshold for units sold in the first half of a year (804,248 units; +7.7%). The BMW X1 as well as the 3, 5, 6 and 7 Series all asserted their positions as market leaders in their relevant segments.
| Sales volume of BMW vehicles by model variant* | |||
|---|---|---|---|
| in units | |||
| 1 January to 30 June 2013 |
1 January to 30 June 2012 |
Change in % | |
| BMW 1 Series | |||
| Three-door | 16,090 | 3,769 | – |
| Five-door | 79,256 | 89,490 | –11.4 |
| Coupé | 7,062 | 11,187 | –36.9 |
| Convertible | 7,295 | 9,359 | –22.1 |
| 109,703 | 113,805 | –3.6 | |
| BMW 3 Series | |||
| Sedan | 167,139 | 135,981 | 22.9 |
| Touring | 48,034 | 28,380 | 69.3 |
| Coupé | 10,952 | 15,910 | –31.2 |
| Convertible | 10,107 | 13,718 | –26.3 |
| Gran Turismo | 1,468 | – | – |
| 237,700 | 193,989 | 22.5 | |
| BMW 5 Series | |||
| Sedan | 144,461 | 137,081 | 5.4 |
| Touring | 25,132 | 29,007 | –13.4 |
| Gran Turismo | 10,240 | 11,697 | –12.5 |
| 179,833 | 177,785 | 1.2 | |
| BMW 6 Series | |||
| Coupé | 3,508 | 4,689 | –25.2 |
| Convertible | 3,193 | 4,818 | –33.7 |
| Gran Coupé | 7,311 | 839 | – |
| 14,012 | 10,346 | 35.4 | |
| BMW 7 Series | |||
| 27,100 | 30,511 | –11.2 | |
| BMW X1 | |||
| 79,061 | 64,387 | 22.8 | |
| BMW X3 | |||
| 77,959 | 74,098 | 5.2 | |
| BMW X5 | |||
| 52,651 | 52,399 | 0.5 | |
| BMW X6 | |||
| 18,965 | 20,884 | –9.2 | |
| BMW Z4 | |||
| 7,264 | 8,860 | –18.0 | |
| BMW total | 804,248 | 747,064 | 7.7 |
* Including the BMW Brilliance joint venture.
60 Other Information
During the six-month period, 109,703 units of the BMW 1 Series were handed over to customers (– 3.6%). The BMW 3 Series registered sharp growth (+22.5%) with 237,700 units sold. Sales of the BMW 5 Series during the period under report totalled 179,833 units (+ 1.2%). The revised version of the BMW 5 Series has very recently come onto the markets and is set to generate additional demand for this highly successful model in the second half of the year. Sales of the BMW 6 Series also rose sharply to 14,012 units (+ 35.4%). In total, we sold 27,100 units of the BMW 7 Series (–11.2%) and 7,264 units of the BMW Z4 (– 18.0%) during the first half of 2013.
The BMW X family again enjoyed strong demand during the six-month period. Sales of the BMW X1 rose steeply (+ 22.8%) to 79,061 units. The BMW X3, of which 77,959 units were sold, surpassed the previous year's sales volume by 5.2%, while sales of the BMW X5 edged up by 0.5% to 52,651 units. Only the BMW X6 fell short of the previous year's figure (18,965 units; –9.2%).
4,648 units of the MINI Paceman have been sold since its launch in mid-March 2013. The MINI Roadster achieved a 14.4% increase in sales, with 5,219 units sold during the first six months of the year. Sales of the MINI Countryman increased by 2.2% to 50,669 units, whereas the Hatch (62,958 units; –2.9%), the Convertible (11,553 units; – 21.2%), the Clubman (9,538 units; –19.9%) and the Coupé (4,213 units; –32.9%) all recorded lower sales volumes than one year earlier.
| Sales volume of MINI vehicles by model variant | |||
|---|---|---|---|
| in units | 1 January to 30 June 2013 |
1 January to 30 June 2012 |
Change in % |
| MINI Hatch | 62,958 | 64,864 | –2.9 |
| MINI Convertible | 11,553 | 14,669 | –21.2 |
| MINI Clubman MINI Countryman |
9,538 | 11,913 | –19.9 |
| MINI Coupé | 50,669 | 49,588 | 2.2 |
| MINI Roadster | 4,213 | 6,278 | –32.9 |
| MINI Paceman | 5,219 | 4,563 | 14.4 |
| MINI total | 4,648 148,798 |
– 151,875 |
– –2.0 |
Sales of Rolls-Royce's top model, the Phantom, rose steeply (+29.8%) during the first half of 2013 to 283 units. The Phantom Coupé (including the Drophead Coupé)
achieved a sales volume of 100 units, 1.0% up on the previous year. 1,092 customers worldwide took delivery of the Rolls-Royce Ghost (–14.9%).
| Sales volume of Rolls-Royce vehicles by model variant | |||
|---|---|---|---|
| in units | |||
| 1 January to | 1 January to | Change in % | |
| 30 June 2013 | 30 June 2012 | ||
| Rolls-Royce | |||
| Phantom (including Phantom Extended Wheelbase) | 283 | 218 | 29.8 |
| Coupé (including Drophead Coupé) | 100 | 99 | 1.0 |
| Ghost | 1,092 | 1,283 | –14.9 |
| Rolls-Royce total | 1,475 | 1,600 | –7.8 |
519,9321 BMW, MINI and Rolls-Royce brands cars were produced during the second quarter (2012: 451,7531 units; +15.1%), comprising 429,9121 BMW brand vehicles (2012: 367,9981 units; +16.8%), 89,389 MINI brand vehicles (2012: 82,957 units; +7.8%) and 631 Rolls-Royce brand vehicles (2012: 798 units; –20.9%).
During the six-month period from January to June 2013, a total of 1,002,0941 cars rolled off production lines worldwide (2012: 912,6531 units; +9.8%). This figure included 840,8381 BMW brand vehicles (2012: 746,0221 units; + 12.7%) and 159,838 MINI brand vehicles (2012: 165,086 units; –3.2%). The decrease in MINI production was caused by renovation work carried out at the Oxford plant over a period of four weeks during the first quarter. A total of 1,418 Rolls-Royce vehicles were manufactured at the Goodwood plant during the six-month period under report (2012: 1,545 units; –8.2%).
The strong sales volume performance is reflected in segment revenues. Second-quarter and six-month revenues increased by 4.8 % to € 18,201 million (2012: € 17,366 million) and by 1.7 % to € 34,108 million (2012: € 33,525 million) respectively.
Expenditure on new technologies, production and market launch costs, greater competition and higher personnel costs all had a negative impact on the segment result. EBIT amounted to € 1,756 million (2012: € 2,0182 million; – 13.0 %) for the second quarter and € 3,338 million (2012: € 3,8982 million; – 14.4%) for the six-month period. Profit before tax for the second quarter and for
the six-month period were € 1,648 million (2012: € 1,7482 million; – 5.7 %) and € 3,164 million (2012: € 3,5702 million; –11.4%) respectively.
At 30 June 2013, the Automotive segment had 97,549 employees on the payroll, 5.1% more than one year earlier (2012: 92,849 employees).
1 Including the BMW Brilliance joint venture.
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Motorcycles
The BMW Group sold a total of 40,209 BMW motorcycles worldwide during the second quarter 2013 (2012: 34,8161 units; +15.5%), while sales for the six-month period were up by 9.7% to 64,9413 units (2012: 59,1893 units). These figures represented the best quarterly and six-month sales volume performances in BMW Motorrad's 90-year history.
The six-month sales volume figure in Europe went up by 3.2% to 39,952 units, whereby unit sales developed very differently from one country to the next. Sales in Germany grew by 2.9% to 11,827 units, with increases also recorded in Great Britain (3,364 units; +4.3%) and France (6,129 units; + 0.2%). By contrast, motorcycle sales were down in Spain (2,596 units; –2.8%) and Italy (6,094 units; –6.0%).
The number of machines sold in the USA rose by 16.6% to 8,101 units. Sales in Brazil went up by 8.3% to 3,611 units. Motorcycle sales in Japan increased sharply by 35.6% to 1,795 units.
During the second quarter 2013, 33,231 BMW brand motorcycles (2012: 32,1082 units) rolled off production lines, 3.5% more than in the same quarter last year.
In the first six months of the year, we produced a total of 68,4523 BMW motorcycles (2012: 66,4724 units; +3.0%).
Helped by a good second-quarter sales volume performance, segment revenues totalling € 475 million were also well up on the previous year's figure (2012: € 410 million; +15.9 %). At € 46 million, EBIT almost matched last year's performance (2012: € 48 million; –4.2%), despite expenditure in conjunction with the new strategic direction adopted by the segment. The same also applies to segment profit before tax amounting to € 45 million (2012: € 47 million; –4.3%).
Segment revenues for the period from January to June rose by 6.2 % to € 911 million (2012: € 858 million), which also helped push up EBIT to € 97 million (2012: € 85 million; + 14.1 %). Profit before tax increased to € 95 million (2012: € 84 million; +13.1%), the best six-month result ever earned by the Motorcycles segment.
The Motorcycles segment had a worldwide workforce of 2,722 employees (–9.3%) at the end of the second quarter, with the reduction attributable to the sale of Husqvarna Motorcycles.
| Motorcycles | ||||
|---|---|---|---|---|
| 2nd quarter 2013 | 2nd quarter 2012 | Change in % | ||
| Sales volumeBMW1 | units | 40,209 | 34,816 | 15.5 |
| Production BMW2 | units | 33,231 | 32,108 | 3.5 |
| Revenues | € million | 475 | 410 | 15.9 |
| Profit before financial result (EBIT) | € million | 46 | 48 | –4.2 |
| Profit before tax | € million | 45 | 47 | –4.3 |
| 1 January to 30 June 2013 |
1 January to 30 June 2012 |
Change in % | ||
| Sales volumeBMW3 | units | 64,941 | 59,189 | 9.7 |
| Production BMW4 | units | 68,452 | 66,472 | 3.0 |
| Revenues | € million | 911 | 858 | |
| Profit before financial result (EBIT) | 6.2 | |||
| € million | 97 | 85 | 14.1 | |
| Profit before tax | € million | 95 | 84 | 13.1 |
1 Husqvarna: 2,593 motorcycles (2012).
2 Husqvarna: 3,255 motorcycles (2012).
3 Husqvarna: 1,110 motorcycles (until 5 March 2013); 5,235 motorcycles (2012).
4 Husqvarna: 1,569 Motorräder (until 5 March 2013); 6,616 motorcycles (2012).
12
Financial Services
Strong performance by Financial Services segment
The Financial Services segment continued to make good progress in the second quarter of 2013. At 30 June 2013, the segment's portfolio of leasing and credit financing contracts in place with retail customers and dealers increased to 3,986,306 (2012: 3,693,474 contracts; + 7.9%). The business volume in balance sheet terms stood at € 82,568 million at the end of the reporting period, 2.0% higher than at the end of the previous financial year (2012: € 80,974 million).
Leasing and financing business with retail customers continued to expand in the second quarter of 2013. A total of 388,290 new leasing and financing contracts was concluded with retail customers during the period from April to June, an increase of 12.2% over the same quarter last year (2012: 346,034 contracts). The number of new leasing contracts grew by 12.4%, while new credit financing grew by 12.1%. Leasing and credit financing accounted for 33.5% and 66.5% of new business respectively.
The ratio of new BMW Group cars leased or financed by the Financial Services segment for the six-month period was 44.5%, 5.8 percentage points up on the previous
year (2012: 38.7%), with the sharp rise mainly attributable to the high level of new business in the USA.
In the used car financing line of business, 156,669 new contracts for BMW and MINI brand cars were signed during the first half of 2013, 2.7% more than one year earlier (2012: 152,557 contracts).
The volume of all new leasing and financing contracts signed with retail customers amounted to € 19,599 million, 11.5% up on the previous year (2012: € 17,580 million).
The growth of new business had a positive impact on the overall size of the contract portfolio with retail customers. In total, 3,671,904 retail customer contracts were in place at the end of the reporting period (2012: 3,423,299 contracts; +7.3%). The portfolio of contracts on hand grew by 9.1 % in the Europe / Middle East region, by 6.0% in the Americas region and by 1.4% for the EU bank. The Asia / Pacific region also saw a surge in the size of the contract portfolio (+25.8%).
The BMW Group operates its international, multi-brand fleet business under the brand name "Alphabet" and is one of the leading fleet service providers in Europe.
| Financial Services | ||||
|---|---|---|---|---|
| 2nd quarter 2013 | 2nd quarter 2012 | Change in % | ||
| New contracts with retail customers | 388,290 | 346,034 | 12.2 | |
| Revenues | € million | 5,058 | 4,866 | 3.9 |
| Profit before financial result (EBIT) | € million | 468 | 441 | 6.1 |
| Profit before tax | € million | 467 | 431 | 8.4 |
| 1 January to 30 June 2013 |
1 January to 30 June 2012 |
Change in % | ||
| New contracts with retail customers | 728,618 | 652,018 | 11.7 | |
| Revenues | € million | 9,888 | 9,666 | 2.3 |
| Profit before financial result (EBIT) | € million | 918 | 867 | 5.9 |
| Profit before tax | € million | 916 | 865 | 5.9 |
| Workforce to 30 June | 6,474 | 6,031 | 7.3 | |
| 30.6.2013 | 31.12.2012 | Change in % | ||
| Business volume in balance sheet terms* | € million | 82,568 | 80,974 | 2.0 |
* Calculated on the basis of the lines Leased products and Receivables from sales financing (current and non-current) of the Financial Services segment balance sheet.
13
This line of business remained on growth course during the first half of the year. The contract portfolio increased by 5.7% to reach 517,156 fleet contracts at 30 June 2013 (2012: 489,439 contracts).
The multi-brand financing line of business expanded yet again in the second quarter, growing by 15.6% to 92,788 new contracts (2012: 80,277 contracts). At 30 June 2013, 439,890 contracts were in place, 11.0% more than one year earlier (2012: 396,231 contracts).
The total volume of dealer financing contracts at the end of the period under report amounted to € 12,451 million, an increase of 9.7% compared to the end of the second quarter last year (2012: € 11,355 million).
The BMW Group's worldwide deposit business reached a total of € 13,258 million at 30 June 2013 (2012: € 13,216 million), an increase of 0.3%.
Insurance business profited from the strong demand for Financial Services products and also continued to flourish. The number of new contracts signed during the first six months of the year rose by 8.3% to 513,648 contracts (2012: 474,324 contracts). Worldwide, a total of 2,376,842 contracts were being managed at the end of the period under report (2012: 2,107,247 contracts; +12.8%).
The segment's positive performance is reflected in segment earnings for the period under report. Secondquarter EBIT amounted to € 468 million (2012: € 441 million; +6.1%) and profit before tax for the three-month period amounted to € 467 million (2012: € 431 million; +8.4%). The profit before financial result and the profit before tax for the period from January to June 2013 amounted to € 918 million (2012: € 867 million; +5.9%) and € 916 million (2012: € 865 million; +5.9%) respectively.
At 30 June 2013, the Financial Services segment had 6,474 employees, 7.3% more than one year earlier (2012: 6,031 employees). The increase in the workforce size reflects growth in the segment's portfolio of contracts on the one hand and the higher number of employees necessary to handle projects on the other.
BMW Group – Capital Market Activities in the second quarter 2013
The negative trend that set in on stock markets in mid-March continued initially at the beginning of the second quarter 2013. Indications that the global economy is becoming more stable combined with the ongoing expansionary monetary policies being pursued by central banks, subsequently resulted in new all-time highs for a number of international stock markets. Towards the end of the second quarter, the announcement made by the US Reserve Bank of its intention to wind down its bond-buying programme over the course of the year caused a flurry of uncertainty on the markets. Rumours of a possible credit crunch in China also had the effect of chilling the stock market climate towards the end of June.
After recording its low for the year to date in April (7,459 points), the German stock index, the DAX, soared to a new all-time high in May (8,557 points) and closed on 28 June 2013 at 7,959 points. Thus, within a highly volatile climate, the index was able to add slightly to the gains made in the first quarter (+ 2.1%). Compared to the end of 2012, the DAX gained 4.6%. The Prime Automobile Performance Index gained 9.4% in value in the period from April to June 2013, thus making good the minor losses recorded in the first quarter. The sector index closed at 1,039 points at 28 June 2013, 6.5% up on its closing level at the end of 2012.
Changes in the price of BMW stock must also be seen in the context of the volatile stock market climate. After some major price fluctuations, BMW common stock closed at € 67.18, practically unchanged (–0.2%) from its price at the end of the previous quarter. Compared to its price at the end of 2012, the figure represents a decrease of 7.9%. BMW preferred stock performed somewhat better, adding to the gains made in the first quarter. At € 52.53, it finished 5.4% ahead of its market price at the end of the first quarter and 7.7% up on its closing level at the end of 2012. BMW preferred stock recorded a new all-time high of € 56.10 in May 2013.
Despite a highly volatile market environment, the BMW Group was able to refinance its operating activities on international money and capital markets at attractive conditions during the second quarter 2013. During the period from April to June 2013, the BMW Group issued a euro-benchmark bond with a volume of € 1 billion, a bond for 500 million US dollars and raised funds through private placements in various currencies with a total approximate volume of € 1.2 billion. In addition, two ABS transactions with a total approximate volume of € 1 billion were executed in Switzerland and Germany and promissory notes issued in Japan and Europe for more than € 200 million. In addition, the regular issue of commercial paper and deposit-taking represent important sources of refinancing for the BMW Group.
The value of the US dollar against the euro dropped slightly during the second quarter 2013. Based on an exchange rate of US dollar 1.30 to the euro at 30 June 2013, the US dollar was 1.5% weaker than at 30 March 2013 and 1.4% stronger than at 31 December 2012.
15
Analysis of the Interim Group Financial Statements
The BMW Group increased sales of BMW, MINI and Rolls-Royce brand cars in the first half of 2013 by 6.0% to 954,521 units compared to the corresponding period one year earlier.
The BMW Group recorded a net profit for the six-month period of € 2,704 million, € 75 million up on the previous year. The post-tax return on sales was 7.3% (2012: 7.0%). Earnings per share of common and preferred stock were € 4.10 and € 4.11 respectively (2012: € 3.99 and € 4.00 respectively).
Earnings performance for the second quarter 2013
Group revenues remained at a similarly high level to the previous year, with second-quarter revenues up by 1.8% to € 19,552 million (2012: € 19,202 million). Increased competition and higher inter-segment revenue eliminations caused by the growth of new lease business resulted in the revenues percentage rise being lower than the sales volume percentage rise. Excluding the effect of currency fluctuations, revenues increased by 3.6% compared to the previous year.
External revenues from the sale of BMW, MINI and Rolls-Royce brand cars edged up by 0.4%. Motorcycles business revenues rose by 15.6% compared to the previous year. Revenues generated with Financial Services operations grew by 5.0%. As in the previous year, revenues arising in the "Other Entities" segment amounted to € 1 million.
Group cost of sales totalled € 15,560 million (2012: € 15,174 million), 2.5% higher than in the second quarter last year. Gross profit was just € 36 million (–0.9%) lower than the previous year's high level. The gross profit margin for the second quarter slipped by 0.6 percentage points to 20.4%.
The gross profit margin recorded by the Automotive segment was 18.6% (2012: 20.3%) and that of the Motorcycles segment 19.4% (2012: 22.4%). The gross profit margin of the Financial Services segment improved from 13.7% to 14.1%.
Total research and development expenditure in the second quarter amounted to € 1,005 million (2013: € 981 million). This figure comprises research costs, non-capitalised development costs, capitalised development costs and systematic amortisation of capitalised development costs. The research and development expenditure ratio for the second quarter was 5.1% (2012: 5.1%) and the proportion of development costs recognised as assets was 30.8% (2012: 25.4%). Research and development expenses decreased by € 76 million to € 958 million. Expenditure in this area therefore remained at a high level in the second quarter, reflecting the BMW Group's continuing commitment to product and technological development. Research and development expense includes amortisation of capitalised development costs amounting to € 263 million (2012: € 302 million). As a percentage of revenues, the research and development ratio fell slightly (0.5 percentage points) to 4.9%, compared to the previous year.
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Revenues by segment in the second quarter | ||||||
|---|---|---|---|---|---|---|
| in € million | ||||||
| External revenues |
Inter-segment revenues |
Total revenues |
||||
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| Automotive | 14,429 | 14,365 | 3,772 | 3,001 | 18,201 | 17,366 |
| Motorcycles | 473 | 409 | 2 | 1 | 475 | 410 |
| Financial Services | 4,649 | 4,427 | 409 | 439 | 5,058 | 4,866 |
| Other Entities | 1 | 1 | 1 | 1 | 2 | 2 |
| Eliminations | – | – | –4,184 | –3,442 | –4,184 | –3,442 |
| Group | 19,552 | 19,202 | – | – | 19,552 | 19,202 |
| Revenues by segment in the period from 1 January to 30 June | ||||||
|---|---|---|---|---|---|---|
| in € million | ||||||
| External revenues |
Inter-segment revenues |
Total revenues |
||||
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| Automotive | 27,093 | 27,812 | 7,015 | 5,713 | 34,108 | 33,525 |
| Motorcycles | 905 | 850 | 6 | 8 | 911 | 858 |
| Financial Services | 9,099 | 8,832 | 789 | 834 | 9,888 | 9,666 |
| Other Entities | 1 | 1 | 2 | 2 | 3 | 3 |
| Eliminations | – | – | –7,812 | –6,557 | –7,812 | –6,557 |
| Group | 37,098 | 37,495 | – | – | 37,098 | 37,495 |
Selling and administrative expenses increased by 8.4% compared to the corresponding period last year. One of the factors driving up expenses in this area was the higher number of employees. This was partially compensated by lower expenses for new model launches. The ratio of selling and administrative expenses to revenues was 9.6% (2012: 9.0%) of revenues. Depreciation and amortisation on property, plant and equipment and intangible assets recorded in cost of sales and in selling and administrative expenses amounted to € 919 million (2012: € 879 million).
Other operating income and expenses gave rise to a net expense of € 49 million, an increase of € 18 million compared to the second quarter last year.
As a result of the various factors referred to above, profit before financial result for the second quarter 2013 amounted to € 2,068 million (2012: € 2,267 million).
The financial result was a net expense of € 36 million, which represented an improvement of € 255 million over the same quarter last year (2012: net expense of € 291 million). This includes the result from equity accounted investments totalling € 164 million (2012: € 105 million), comprising the Group's share of results from interests in the joint venture BMW Brilliance Automotive Ltd., Shenyang, the joint ventures with the SGL Carbon Group and the two DriveNow entities. Other financial result includes the negative impact of write-downs on available-for-sale marketable securities
| Profit before tax by segment | ||||
|---|---|---|---|---|
| in € million | ||||
| 2nd quarter 2013 |
2nd quarter 2012* |
1 January to 30 June 2013 |
1 January to 30 June 2012* |
|
| Automotive | 1,648 | 1,748 | 3,164 | 3,570 |
| Motorcycles | 45 | 47 | 95 | 84 |
| Financial Services | 467 | 431 | 916 | 865 |
| Other Entities | 89 | –12 | 156 | –31 |
| Eliminations | –217 | –238 | –296 | –432 |
| Profit before tax | 2,032 | 1,976 | 4,035 | 4,056 |
| Income taxes | –640 | –699 | –1,331 | –1,427 |
| Net profit | 1,392 | 1,277 | 2,704 | 2,629 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
18
as well as the positive impact of currency and interest rate hedging instruments. The net interest result for the second quarter deteriorated by € 108 million.
Profit before tax was € 2,032 million and thus € 56 million ahead of the previous year's level (2012: € 1,976 million). The income tax expense for the quarter decreased by € 59 million, resulting in an effective tax rate of 31.5% (2012: 35.4%).
The Group reports a net profit of € 1,392 million for the three months ended 30 June 2013 (2012: € 1,277 million).
Second-quarter earnings per share amounted to € 2.11 (2012: € 1.94) for common stock and to € 2.12 (2012: € 1.95) for preferred stock.
Earnings performance for the first half of 2013 Group revenues for the six-month period decreased by 1.1 % to € 37,098 million. The main reason for the decrease was the higher level of inter-segment revenue eliminations attributable to the growth of new lease business. Adjusted for exchange rate factors, revenues increased by 0.3%. Within Group revenues, external revenues of the Automotive segment were down by 2.6% compared to the corresponding period last year. Revenues in the Motorcycles segment rose by 6.5%. Financial Services segment revenues were 3.0% up for the six-month period. External revenues generated with other activities were at a similar level to the previous year (€ 1 million).
Group cost of sales totalled € 29,527 million, 0.6% lower than in the corresponding six-month period one year earlier (2012: € 29,703 million).
Gross profit amounted to € 7,571 million, 2.8% down on the previous year. The overall gross profit margin was 20.4% (2012: 20.8%).
The Automotive segment's gross profit margin came in at 18.4% (2012: 20.3%) and that of the Motorcycles segment at 20.2% (2012: 20.0%). The gross profit margin of the Financial Services segment went up by 0.5 percentage points to 14.0 %.
Research and development expense for the six-month period was 3.0 % lower at € 1,946 million. As a proportion of revenues, the research and development ratio decreased slightly to 5.2% (2012: 5.4%). Research and development costs include amortisation of capitalised development costs amounting to € 538 million (2012: € 603 million). Total research and development expenditure amounted to € 1,958 million (2012: € 1,843 million), corresponding to an expenditure ratio of 5.3% (2012: 4.9%) and a capitalisation ratio of 28.1% (2012: 23.9%).
Selling and administrative expenses increased by 2.9% compared to the same period last year.
Other operating income and expenses gave rise to a net expense of € 1 million, an improvement of € 26 million compared to the first half of 2012. These line items include gains and losses on the disposal of assets.
At € 4,107 million, the Group's profit before financial result (EBIT) was 6.7% down on the previous year's high level.
The financial result for the six-month period was a net expense of € 72 million, an improvement of € 273 million over the previous year. This includes the result from equity accounted investments, which improved in total by € 101 million and comprised the Group's share of results from interests in the joint venture BMW Brilliance Automotive Ltd., Shenyang, the joint ventures with the SGL Carbon Group and the two DriveNow entities. The net interest result for the six-month period deteriorated by € 94 million, partly due to lower interest income earned on fixed-term deposits. Other financial result improved by € 266 million and includes the negative impact of write-downs on available-for-sale marketable securities as well as the positive impact of currency and interest rate hedging instruments.
Profit before tax amounted to € 4,035 million (2012: € 4,056 million). The pre-tax return on sales was 10.9% (2012: 10.8%). The six-month income tax expense went down to € 1,331 million (2012: € 1,427 million), resulting in an effective tax rate of 33.0% (2012: 35.2%).
The BMW Group reports a net profit of € 2,704 million for the six-month period (2012: € 2,629 million).
In the first half of 2013, the BMW Group generated earnings per share of common stock of € 4.10 (2012: € 3.99) and earnings per share of preferred stock of € 4.11 (2012: € 4.00).
Second-quarter Automotive segment revenues increased by 4.8% due to volume factors. The profit before tax, at € 1,648 million, was € 100 million lower than the high level recorded one year earlier. Segment revenues for the six-month period increased by 1.7 % to € 34,108 million, mainly due to higher volumes. Profit before tax was € 3,164 million for the six-month period (2012: € 3,570 million).
Second-quarter revenues of the Motorcycles segment increased by 15.9%. The segment profit before tax, at € 45 million, was almost at the previous year's level (2012: € 47 million). Six-month revenues increased to € 911 million (2012: € 858 million). The profit before tax for the period improved by 13.1 % to € 95 million.
Revenues of the Financial Services segment in the second quarter rose by 3.9 % to € 5,058 million. Profit before tax amounted to € 467 million, an increase of € 36 million compared to the previous year (2012: € 431 million). Revenues for the six-month period increased by 2.3% to € 9,888 million, while segment profit before tax improved by 5.9 % to € 916 million.
The Other Entities segment reports profit before tax of € 89 million for the second quarter (2012: loss before tax of € 12 million). Profit before tax for the six-month period improved by € 187 million to € 156 million, with the turnaround primarily due to an improvement in financial result. Inter-segment eliminations during the six-month period up to the level of profit before tax
gave rise to a net expense of € 296 million (2012: net expense of € 432 million).
The consolidated cash flow statements for the Group and the Automotive and Financial Services segments show the sources and applications of cash flows for the first six-month periods of 2013 and 2012, classified into cash flows from operating, investing and financing activities. Cash and cash equivalents in the cash flow statements correspond to the amount disclosed in the balance sheet.
Cash flows from operating activities are determined indirectly, starting with Group and segment net profit for the period. By contrast, cash flows from investing and financing activities are based on actual payments and receipts.
The BMW Group uses various sources of funds for internal financing purposes. In addition to the issue of interest-bearing debt, cash funds are also allocated internally in line with business requirements, including the use of dividends and similar transactions. In this context, it is possible that cash funds may be transferred from one segment to another. Up to the first quarter 2012, these cash inflows and outflows were reported in the Cash Flow Statements of the Automotive and Financial Services segments as part of cash flows from operating activities. Due to the increasing importance of inter-segment transactions, the method of presentation was changed with effect from the second quarter 2012. Intragroup inter-segment dividends have been reported as part of cash flows from financing activities since the second quarter 2012 and similar transactions have been reported as such since the 2012 Group Financial Statements. The reclassification from operating activities to financing activities resulted in the first half of 2012 in a decrease (increase) in the operating cash flow of the Automotive segment (Financial Services segment). The previous year's figures were restated accordingly (impact in the first half of 2012: decrease of € 532 million for the Automotive segment, increase of € 165 million for the Financial Services segment).
* Prior year figures have been adjusted in accordance with the reclassification described in the Group Financial Statements for the year ended 31 December 2012.
The cash inflow from operating activities for the first six months of the year fell by € 1,339 million to € 2,253 million (2012: € 3,592 million), due mainly to rises in leased products and receivables from sales financing totalling € 2,709 million (2012: € 1,082 million) brought about by sales volume factors.
Cash outflows for investing activities totalled € 2,709 million (2012: € 1,762 million) and were thus 53.7% higher than in the corresponding six-month period last year. This surge was primarily due to a € 880 million increase in investments in intangible assets and property, plant and equipment, which totalled € 2,368 million in the first half of the year (2012: € 1,488 million). Net disbursements for marketable securities resulted in a cash outflow of € 303 million (2012: € 282 million).
Cash inflow from financing activities totalled € 113 million (2012: cash outflow of € 1,545 million). Proceeds from the issue of bonds totalled € 5,128 million (2012: € 6,023 million), compared with an outflow of € 4,127 million (2012: € 4,377 million) for the repayment of bonds. The change in other financial liabilities gave rise to a cash inflow of € 2,156 million (2012: € 1,684 million), while the change in commercial paper resulted in a cash outflow of € 1,392 million (2012: € 3,363 million). The
payment of dividends resulted in a cash outflow of € 1,652 million (2012: € 1,512 million).
Cash outflows for investing activities exceeded cash inflows from operating activities in the first half of 2013 by € 456 million. In the same period last year, cash inflows from operating activities had exceeded cash outflows for investing activities by € 1,830 million.
After adjustment for the effects of exchange-rate fluctuations and changes in the composition of the BMW Group amounting to € 38 million (2012: € 34 million), the various cash flows resulted in a decrease in cash and cash equivalents of € 305 million (2012: increase of € 319 million).
The cash flow statement for the Automotive segment shows that the cash inflow from operating activities exceeded the cash outflow for investing activities by € 1,199 million (2012: € 1,690 million). Adjusted for net investments in marketable securities amounting to € 471 million (2012: € 266 million), mainly in conjunction with strategic liquidity planning, the excess amount was € 1,670 million (2012: € 1,956 million).
Free cash flow of the Automotive segment was as follows:
| in € million | 2013 | 2012* |
|---|---|---|
| Cash inflow from operating activities | 4,349 | 3,601 |
| Cash outflow for investing activities | –3,150 | –1,911 |
| Net investment in marketable securities | 471 | 266 |
| Free cash flow Automotive segment | 1,670 | 1,956 |
* Prior year figures have been adjusted in accordance with the reclassification described in the Group Financial Statements for the year ended 31 December 2012.
The cash outflow for operating activities of the Financial Services segment is influenced primarily by cash flows relating to leased products and receivables from sales financing and totalled € 1,527 million in the first
half of 2013 (2012: € 52 million). The cash inflow from financing activities totalled € 1,777 million (2012: € 147 million).
Net financial assets of the Automotive segment comprise the following:
| in € million | 30.6.2013 | 31.12.2012 |
|---|---|---|
| Cash and cash equivalents | 6,689 | 7,484 |
| Marketable securities and investment funds | 2,649 | 2,205 |
| Intragroup net financial assets | 6,442 | 5,862 |
| Financial assets | 15,780 | 15,551 |
| Less: external financial liabilities* | –2,528 | –2,224 |
| Net financial assets Automotive segment | 13,252 | 13,327 |
* Excluding derivative financial instruments.
The balance sheet total (total assets / total equity and liabilities) increased by 1.8% compared to 31 December 2012 to stand at € 134,151 million at the end of the reporting period. Adjusted for changes in exchange rates, the balance sheet total increased by 3.1%.
The main factors behind the increase on the assets side of the balance sheet were leased products (3.5%), inventories (6.5%), current and non-current receivables from sales financing (0.8%) and intangible assets (6.3%). The main decrease on the assets side related to cash and cash equivalents (3.6%). Current assets accounted for 38.4% (31 December 2012: 38.3%) of total assets.
Leased products as well as non-current and current receivables from sales financing increased by € 853 million and € 409 million respectively as a result of increased business volumes. Adjusted for changes in exchange rates, leased products went up by 3.8% and receivables from sales financing by 3.5%.
Inventories rose during the six-month period by € 629 million to stand at € 10,354 million, reflecting the expansion of business operations.
At € 5,533 million, the carrying amount of intangible assets was € 326 million higher than at 31 December 2012. Investments included the acquisition of licenses amounting to € 379 million, which are being amortised on a straight-line basis over a period of six years.
On the equity and liabilities side of the balance sheet, the increase was due primarily to increases in equity (5.6%), deferred tax liabilities (16.9%) and trade payables (4.3%). The main decrease on the equity and liabilities side related to pension provisions (23.0%). Current liabilities accounted for 35.4% (31 December 2012: 36.7%) of total equity and liabilities.
Group equity rose by € 1,725 million to € 32,331 million, including the impact of an increase in the opening balance of revenue reserves (€ 204 million) due to the amendment to IAS 19. Equity was increased by the profit attributable to shareholders of BMWAG (€ 2,693 million) and decreased by the dividend paid by BMWAG (€ 1,640 million). Currency translation differences reduced equity by € 361 million. Group equity increased on account of remeasurements of the net liability for defined benefit pension plans, primarily as a result of the higher discount rate used in Germany (€ 935 million). Fair value measurement of derivative financial instruments had a positive impact (€ 518 million) on
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
equity, in contrast to the fair value measurement of marketable securities which had a negative impact (€ 67 million). Income and expenses relating to equity accounted investments and recognised directly in equity, net of deferred tax, decreased equity by € 41 million. Deferred taxes on items recognised directly in equity had the effect of reducing equity by € 363 million. Minority interests went up by € 51 million. The equity ratio of the BMW Group improved overall by 0.9 percentage points to 24.1%. The equity ratio of the Automotive segment was 42.4% (31 December 2012: 41.0%) and that of the Financial Services segment was 9.2% (31 December 2012: 8.6%).
The increase in deferred tax liabilities is primarily attributable to the decrease in remeasurements of the net liability for defined benefit pension plans.
The increase in trade payables was primarily attributable to the acquisition of licences.
Pension provisions went down by 23.0 % to € 2,937 million during the first half of 2013, mainly due to higher interest rates in Germany.
Overall, the earnings performance, financial position and net assets position of the BMW Group continued to develop very positively during the second quarter and six-month periods under report.
Further information on related party relationships is provided in note 31 to the Group Financial Statements.
Risk Management Outlook
As a globally operating enterprise, the BMW Group is confronted with numerous risks. A description of these risks and the Group's risk management methods is provided in the Group Management Report for the financial year ended 31 December 2012 (Annual Report, page 66 et seq.).
The euro zone remains under pressure from the effects of recent crises. Endeavours to consolidate state finances are likely to have a negative impact on economic performance in the near future, particularly in the euro zone. Any escalation of political unrest could also dampen economic prospects. In view of these circumstances, the outlook remains exposed to a number of additional uncertainties.
The situation within Europe will continue to differ from country to country. Economic performance in the euro zone as a whole is set to contract by approximately 0.5%. The German economy is expected to grow by a moderate 0.5%, while France is likely to see its gross domestic product (GDP) drop back slightly (–0.2%). The growth prospects for the economies of Italy and Spain remain bleak (–1.6%). Economic output in the United Kingdom is forecast to grow by 0.8% in 2013.
The US economy continues to recover at a modest, but stable pace. Positive momentum from the employment and property markets should help to generate growth of approximately 1.9%, similar to the previous year's level.
The outlook for the Japanese economy has improved in recent months (+1.4%). Economic performance in 2013 will greatly depend on the policies adopted by the newly elected government and exchange rate developments.
The Chinese economy is expected to grow by 7.5% in the current year. The new government has announced its intention to steer the economy towards more sustainable growth and made clear that it is willing to accept a gradual slow-down in the GDP rate in the process.
India and Brazil are expected to achieve solid growth rates of 5.8% and 2.8% respectively. Russia's GDP is set to expand by about 2.9%, roughly in line with the previous year.
The world's car markets are forecast to expand by approximately 3.1% in 2013, with growth driven primarily by demand in the USA and China.
The US market is likely to continue its recovery with a growth rate of approximately 5.6% and 15.3 million units, gradually edging back towards the long-term average of 16 to 17 million units.
Registration figures in China are expected to rise by approximately 8.5% to 14.4 million units – and therefore slightly faster than the general economic growth rate – thanks to the positive climate for consumer spending.
The overall market in Europe is expected to contract to 12.0 million units (– 4.1%). The German market will not be able to escape this negative trend and is likely to finish the year with a total of 2.9 million units (–5.9%). The United Kingdom, by contrast, is set to achieve growth of 3.0% to 2.1 million units. The forecast for France is a decrease in registrations of approximately 4.1% to 1.8 million units. The decline is likely to be even more pronounced in Italy (approximately 1.3 million units; –9.0%).
The car market in Japan is expected to shrink by 6.2% in 2013 to 4.9 million units and hence back to its normal level. The previous year's figure was influenced by the catch-up effect of strong demand in the wake of the tsunami in 2011.
The car market in Russia is expected to remain at its previous year's level of approximately 2.7 million units. Registrations in Brazil are forecast to rise by 6.7% to some 3.9 million units.
Business conditions will remain extremely difficult throughout the year for companies operating in the 500 cc plus class of the international motorcycle markets. The economic situation in Europe is expected to have a negative impact on motorcycles business in the region as a whole. The German market is forecast to remain stable over the course of the year. Outside Europe, the motorcycle markets in countries such as Brazil and Japan are expected to be up on the previous year, whereas the market in the USA is forecast to be lower than in 2012.
The biggest challenge to global economic recovery remains the European sovereign debt crisis, which remains set to continue in the foreseeable future. For this reason, we predict that financial markets will remain susceptible to fluctuation despite all the stabilising measures being taken by the world's major central banks. The Japanese central bank will continue its policy of feeding liquidity into the economy on a massive scale, with the aim of putting a decade of deflation to an end and generating moderate growth.
Economic conditions have changed little compared to the preceding quarter, with the consequence that we continue to forecast that credit risk levels in Asia and the Americas will remain stable. The situation in Europe, by contrast, remains fragile, even though we do not currently expect any significant deterioration.
Similarly, we do not expect the current stable trend for used car prices to take a turn for the worse in the second half of the year on the world's major leasing markets.
The impact of the debt crisis is likely to be felt throughout 2013 and beyond. High sovereign debt levels continue to pose a risk for the economy overall, not just in the euro zone. A possible slowdown in economic growth in China and the politically precarious situation in a number of crisis regions generate an element of uncertainty that renders it more difficult for the BMW Group to forecast future performance accurately.
We expect vehicle sales to rise to a new record level in the full year 2013. In this context, it remains an important factor for us that the global distribution of our sales is evenly balanced. Due to high levels of expenditure for new technologies and models as well as investment in the production network, Group profit before tax for 2013 should be on a similar scale to 2012.
The BMW Group has a solid financial base, thanks to strong cash flows from operating activities and its ability to refinance operations on international capital markets. We use this foundation to sharpen our leading competitive edge and focus our attention on the future as the world's foremost premium provider.
We are continuing the targeted process of expanding our product range in 2013 with numerous new and revised models. Including products already available on the markets, 2013 will see the launch of 14 new BMW, MINI and Rolls-Royce brand models in total, ensuring that our customers can select from an attractive and fresh range of models.
The new BMW 3 Series Gran Turismo has been available as the third body variant of the 3 Series family since mid-2013. The revised BMW 5 Series took to the roads at the end of July. The new BMW 4 Series Coupé, which embodies the essence of aesthetic appeal in the premium segment, will be available from September onwards. In November the new X5 (third generation) will open a fresh chapter in the success story of the bestselling vehicle in its class. Last but not least, the BMW i3 will go on sale at the end of the year as the first seriesbuilt electric vehicle made by the BMW Group for the metropolitan regions of the world. This completely newly developed premium car of the future combines an absolutely novel drivetrain system and rigorous use of CFRP. The BMW i3 simultaneously demonstrates the BMW Group's expertise in the field of lightweight construction.
MINI added the seventh member to its family of models in the form of the Paceman in March 2013, the first Sports Activity Coupé to appear in its segment (compact premium). In the same month, the Rolls-Royce Wraith celebrated its world debut at the Geneva Motor Show and will be available to purchase at the end of 2013.
We forecast a continuation of the Automotive segment's good performance over the remainder of the year. We will continue to invest in innovation, technologies of the future and the increased internationalisation of our production network over the course of the current year. Assuming that economic conditions do not deteriorate, we forecast single-digit sales volume growth for the Group and hence a renewed sales volume record for the year.
Our targets for earnings remain unchanged, namely to achieve an EBIT margin within the target corridor of between 8% and 10% and a RoCE exceeding 26%. Depending on political and economic developments,
actual results could be above or below the target corridor. The financial position of the Automotive segment is also likely to remain very strong throughout 2013.
Thanks to its attractive and extremely young model range, we forecast a further rise in motorcycle sales in 2013, with the full availability of the Scooter and the new R 1200 GS playing an important role. Increased sales volumes in 2013 should result in higher revenues and earnings, compared to the previous year, in which earnings were negatively impacted by expenses incurred in realigning the Group's Motorcycles business.
The pace of growth reported for Financial Services business in the first six months of 2013 is likely to be maintained over the remainder of the year. Assuming macroeconomic conditions remain stable, we forecast a further increase in the contract portfolio in the second half of the year. Our return-on-equity target of at least 18% remains unchanged for the full year 2013.
As expected, credit risk in Europe has remained relatively high. The initial signs of progress in overcoming the debt crisis have settled the markets. The current economic climate in Asia and the Americas means that credit risk is likely to remain low.
Used car business in these two regions is also expected to develop stably. The residual value situation in Europe is expected to worsen slightly, a development that we have already factored into our internal forecasts.
Income Statements for Group and Segments for the period from 1 April to 30 June 2013 Statement of Comprehensive Income for Group for the period from 1 April to 30 June 2013
| 5 | Interim Group |
|---|---|
| Management Report |
representatives
| in € million | ||||||
|---|---|---|---|---|---|---|
| Note | Group | Automotive1 | ||||
| 2013 | 20122 | 2013 | 20122 | |||
| Revenues | 5 | 19,552 | 19,202 | 18,201 | 17,366 | |
| Cost of sales | 6 | –15,560 | –15,174 | –14,808 | –13,845 | |
| Gross profit | 3,992 | 4,028 | 3,393 | 3,521 | ||
| Selling and administrative expenses | 7 | –1,875 | –1,730 | –1,585 | –1,445 | |
| Other operating income | 8 | 165 | 175 | 135 | 138 | |
| Other operating expenses | 8 | –214 | –206 | –187 | –196 | |
| Profit before financial result | 2,068 | 2,267 | 1,756 | 2,018 | ||
| Result from equity accounted investments | 9 | 164 | 105 | 164 | 105 | |
| Interest and similar income | 10 | 51 | 68 | 75 | 93 | |
| Interest and similar expenses | 10 | –140 | –49 | –171 | –81 | |
| Other financial result | 11 | –111 | –415 | –176 | –387 | |
| Financial result | –36 | –291 | –108 | –270 | ||
| Profit before tax | 2,032 | 1,976 | 1,648 | 1,748 | ||
| Income taxes | 12 | –640 | –699 | –545 | –618 | |
| Net profit/loss | 1,392 | 1,277 | 1,103 | 1,130 | ||
| Attributable to minority interest | 6 | 3 | 3 | 3 | ||
| Attributable to shareholders of BMW AG | 1,386 | 1,274 | 1,100 | 1,127 | ||
| Earnings per share of common stock in € | 13 | 2.11 | 1.94 | |||
| Earnings per share of preferred stock in € | 13 | 2.12 | 1.95 | |||
| Dilutive effects | 13 | – | – | |||
| Diluted earnings per share of common stock in € | 13 | 2.11 | 1.94 | |||
| Diluted earnings per share of preferred stock in € | 13 | 2.12 | 1.95 |
1 Supplementary information (not subject of the review).
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Statement of Comprehensive Income for Group for the second quarter | ||
|---|---|---|
| in € million | ||
| Note | 20131 | 20121,2 |
| Net profit | 1,392 | 1,277 |
| Remeasurement of net liability for defined benefit pension plans | 633 | –594 |
| Deferred taxes | –124 | 180 |
| Items not expected to be reclassified to the income statement in the future | 509 | –414 |
| Available-for-sale securities | –58 | 86 |
| Financial instruments used for hedging purposes | 881 | –1,204 |
| Other comprehensive income from equity accounted investments | 15 | –42 |
| Deferred taxes | –238 | 437 |
| Currency translation foreign operations | –326 | 282 |
| Items expected to be reclassified to the income statement in the future | 274 | –441 |
| Other comprehensive income for the period after tax 14 |
783 | –855 |
| Total comprehensive income | 2,175 | 422 |
| Total comprehensive income attributable to minority interests | 6 | 3 |
| Total comprehensive income attributable to shareholders of BMW AG | 2,169 | 419 |
1 Presentation adjusted in accordance with revised IAS 1.
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Eliminations1 | Other Entities1 |
Financial Services1 |
Motorcycles1 | |||||
|---|---|---|---|---|---|---|---|---|
| 2012 | 2013 | 20122 | 2013 | 20122 | 2013 | 20122 | 2013 | |
| Revenues | –3,442 | –4,184 | 2 | 2 | 4,866 | 5,058 | 410 | 475 |
| Cost of sales | 3,186 | 3,978 | – | – | –4,197 | –4,347 | –318 | –383 |
| Gross profit | –256 | –206 | 2 | 2 | 669 | 711 | 92 | 92 |
| Selling and administrative expenses | –2 | –1 | –5 | –6 | –232 | –237 | –46 | –46 |
| Other operating income | –16 | –15 | 30 | 30 | 21 | 15 | 2 | – |
| Other operating expenses | 20 | 13 | –13 | –19 | –17 | –21 | – | – |
| Profit before financial result | –254 | –209 | 14 | 7 | 441 | 468 | 48 | 46 |
| Result from equity accounted investments | – | – | – | – | – | – | – | – |
| Interest and similar income | –411 | –357 | 385 | 333 | 1 | – | – | – |
| Interest and similar expenses | 427 | 349 | –393 | –316 | –1 | –1 | –1 | –1 |
| Other financial result | – | – | –18 | 65 | –10 | – | – | – |
| Financial result | 16 | –8 | –26 | 82 | –10 | –1 | –1 | –1 |
| Profit before tax | –238 | –217 | –12 | 89 | 431 | 467 | 47 | 45 |
| Income taxes | 92 | 133 | 1 | –61 | –157 | –152 | –17 | –15 |
| Net profit/loss | –146 | –84 | –11 | 28 | 274 | 315 | 30 | 30 |
| Attributable to minority interest | – | – | – | – | – | 3 | – | – |
| Attributable to shareholders of BMW AG | –146 | –84 | –11 | 28 | 274 | 312 | 30 | 30 |
| Earnings per share of common stock in € | ||||||||
| Earnings per share of preferred stock in € | ||||||||
| Dilutive effects | ||||||||
| Diluted earnings per share of common stock in € | ||||||||
| Diluted earnings per share of preferred stock in € |
Income Statements for Group and Segments for the period from 1 January to 30 June 2013 Statement of Comprehensive Income for Group for the period from 1 January to 30 June 2013
Income Statement for Group and Segments for the period from 1 January to 30 June
| 5 | Interim Group Management Report |
|---|---|
| 5 | The BMW Group – |
representatives
| in € million | ||||||
|---|---|---|---|---|---|---|
| Note | Group | Automotive1 | ||||
| 2013 | 20122 | 2013 | 20122 | |||
| Revenues | 5 | 37,098 | 37,495 | 34,108 | 33,525 | |
| Cost of sales | 6 | –29,527 | –29,703 | –27,839 | –26,733 | |
| Gross profit | 7,571 | 7,792 | 6,269 | 6,792 | ||
| Selling and administrative expenses | 7 | –3,463 | –3,364 | –2,913 | –2,819 | |
| Other operating income | 8 | 321 | 356 | 269 | 288 | |
| Other operating expenses | 8 | –322 | –383 | –287 | –363 | |
| Profit before financial result | 4,107 | 4,401 | 3,338 | 3,898 | ||
| Result from equity accounted investments | 9 | 249 | 148 | 249 | 148 | |
| Interest and similar income | 10 | 93 | 123 | 146 | 193 | |
| Interest and similar expenses | 10 | –218 | –154 | –281 | –246 | |
| Other financial result | 11 | –196 | –462 | –288 | –423 | |
| Financial result | –72 | –345 | –174 | –328 | ||
| Profit before tax | 4,035 | 4,056 | 3,164 | 3,570 | ||
| Income taxes | 12 | –1,331 | –1,427 | –1,074 | –1,258 | |
| Net profit/loss | 2,704 | 2,629 | 2,090 | 2,312 | ||
| Attributable to minority interest | 11 | 10 | 7 | 10 | ||
| Attributable to shareholders of BMW AG | 2,693 | 2,619 | 2,083 | 2,302 | ||
| Earnings per share of common stock in € | 13 | 4.10 | 3.99 | |||
| Earnings per share of preferred stock in € | 13 | 4.11 | 4.00 | |||
| Dilutive effects | 13 | – | – | |||
| Diluted earnings per share of common stock in € | 13 | 4.10 | 3.99 | |||
| Diluted earnings per share of preferred stock in € | 13 | 4.11 | 4.00 |
1 Supplementary information (not subject of the review).
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Statement of Comprehensive Income for Group for the period from 1 January to 30 June | ||
|---|---|---|
| in € million | ||
| Note | 20131 | 20121,2 |
| Net profit | 2,704 | 2,629 |
| Remeasurement of net liability for defined benefit pension plans | 935 | –1,128 |
| Deferred taxes | –271 | 312 |
| Items not expected to be reclassified to the income statement in the future | 664 | –816 |
| Available-for-sale securities | –67 | 111 |
| Financial instruments used for hedging purposes | 518 | –317 |
| Other comprehensive income from equity accounted investments | –41 | 3 |
| Deferred taxes | –92 | 87 |
| Currency translation foreign operations | –361 | 160 |
| Items expected to be reclassified to the income statement in the future | –43 | 44 |
| Other comprehensive income for the period after tax 14 |
621 | –772 |
| Total comprehensive income | 3,325 | 1,857 |
| Total comprehensive income attributable to minority interests | 11 | 10 |
| Total comprehensive income attributable to shareholders of BMW AG | 3,314 | 1,847 |
1 Presentation adjusted in accordance with revised IAS 1.
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Eliminations1 | Other Entities1 |
Financial Services1 |
Motorcycles1 | |||||
|---|---|---|---|---|---|---|---|---|
| 2012 | 2013 | 20122 | 2013 | 20122 | 2013 | 20122 | 2013 | |
| Revenues | –6,557 | –7,812 | 3 | 3 | 9,666 | 9,888 | 858 | 911 |
| Cost of sales | 6,073 | 7,546 | – | – | –8,357 | –8,507 | –686 | –727 |
| Gross profit | –484 | –266 | 3 | 3 | 1,309 | 1,381 | 172 | 184 |
| Selling and administrative expenses | –1 | 6 | –9 | –12 | –443 | –453 | –92 | –91 |
| Other operating income | –29 | –41 | 62 | 65 | 29 | 23 | 6 | 5 |
| Other operating expenses | 38 | 31 | –29 | –32 | –28 | –33 | –1 | –1 |
| Profit before financial result | –476 | –270 | 27 | 24 | 867 | 918 | 85 | 97 |
| – Result from equity accounted investments |
– | – | – | – | – | – | – | |
| Interest and similar income | –847 | –735 | 776 | 681 | 1 | 1 | – | – |
| Interest and similar expenses | 891 | 709 | –797 | –642 | –1 | –2 | –1 | –2 |
| – Other financial result |
– | –37 | 93 | –2 | –1 | – | – | |
| Financial result | 44 | –26 | –58 | 132 | –2 | –2 | –1 | –2 |
| Profit before tax | –432 | –296 | –31 | 156 | 865 | 916 | 84 | 95 |
| Income taxes | 160 | 163 | 3 | –85 | –303 | –303 | –29 | –32 |
| Net profit/loss | –272 | –133 | –28 | 71 | 562 | 613 | 55 | 63 |
| – Attributable to minority interest |
– | – | – | – | 4 | – | – | |
| Attributable to shareholders of BMW AG | –272 | –133 | –28 | 71 | 562 | 609 | 55 | 63 |
| Earnings per share of common stock in € | ||||||||
| Earnings per share of preferred stock in € | ||||||||
| Dilutive effects | ||||||||
| Diluted earnings per share of common stock in € | ||||||||
| Diluted earnings per share of preferred stock in € |
Balance Sheets for Group and Segments to 30 June 2013
| Assets | ||||||
|---|---|---|---|---|---|---|
| Note | Group | Automotive1 | ||||
| in € million | 30.6.2013 | 31.12.20122 | 30.6.2013 | 31.12.20122 | ||
| Intangible assets | 15 | 5,533 | 5,207 | 4,986 | 4,648 | |
| Property, plant and equipment | 16 | 13,513 | 13,341 | 13,241 | 13,053 | |
| Leased products | 17 | 25,321 | 24,468 | 78 | 128 | |
| Investments accounted for using the equity method | 18 | 681 | 514 | 681 | 514 | |
| Other investments | 18 | 474 | 548 | 5,024 | 4,789 | |
| Receivables from sales financing | 19 | 32,383 | 32,309 | – | – | |
| Financial assets | 20 | 1,994 | 2,148 | 878 | 759 | |
| Deferred tax | 21 | 1,880 | 1,967 | 2,142 | 2,217 | |
| Other assets | 22 | 889 | 803 | 3,547 | 3,862 | |
| Non-current assets | 82,668 | 81,305 | 30,577 | 29,970 | ||
| Inventories | 23 | 10,354 | 9,725 | 10,021 | 9,366 | |
| Trade receivables | 2,471 | 2,543 | 2,210 | 2,305 | ||
| Receivables from sales financing | 19 | 20,940 | 20,605 | – | – | |
| Financial assets | 20 | 4,699 | 4,612 | 3,346 | 2,746 | |
| Current tax | 21 | 1,088 | 966 | 948 | 775 | |
| Other assets | 22 | 3,866 | 3,664 | 14,894 | 16,162 | |
| Cash and cash equivalents | 8,065 | 8,370 | 6,689 | 7,484 | ||
| Assets held for sale | 24 | – | 45 | – | – | |
| Current assets | 51,483 | 50,530 | 38,108 | 38,838 | ||
| Total assets | 134,151 | 131,835 | 68,685 | 68,808 |
| Equity and liabilities | ||||||
|---|---|---|---|---|---|---|
| Note | Group 31.12.20122 |
Automotive1 31.12.20122 |
||||
| in € million | 30.6.2013 | 30.6.2013 | ||||
| Subscribed capital | 25 | 656 | 656 | |||
| Capital reserves | 25 | 1,973 | 1,973 | |||
| Revenue reserves | 25 | 30,261 | 28,544 | |||
| Accumulated other equity | 25 | –717 | –674 | |||
| Equity attributable to shareholders of BMWAG | 25 | 32,173 | 30,499 | |||
| Minority interest | 25 | 158 | 107 | |||
| Equity | 32,331 | 30,606 | 29,125 | 28,202 | ||
| Pension provisions | 2,937 | 3,813 | 1,650 | 2,358 | ||
| Other provisions | 26 | 3,647 | 3,441 | 3,285 | 3,103 | |
| Deferred tax | 27 | 3,603 | 3,081 | 921 | 492 | |
| Financial liabilities | 28 | 40,707 | 39,095 | 1,798 | 1,775 | |
| Other liabilities | 29 | 3,435 | 3,404 | 3,755 | 3,394 | |
| Non-current provisions and liabilities | 54,329 | 52,834 | 11,409 | 11,122 | ||
| Other provisions | 26 | 3,020 | 3,246 | 2,433 | 2,605 | |
| Current tax | 27 | 1,225 | 1,482 | 1,024 | 1,269 | |
| Financial liabilities | 28 | 29,375 | 30,412 | 1,475 | 1,289 | |
| Trade payables | 6,709 | 6,433 | 5,958 | 5,669 | ||
| Other liabilities | 29 | 7,162 | 6,792 | 17,261 | 18,652 | |
| Liabilities in conjunction with assets held for sale | 24 | – | 30 | – | – | |
| Current provisions and liabilities | 47,491 | 48,395 | 28,151 | 29,484 | ||
| Total equity and liabilities | 134,151 | 131,835 | 68,685 | 68,808 |
1 Supplementary information (not subject of the review).
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Assets | ||||||||
|---|---|---|---|---|---|---|---|---|
| Motorcycles1 | Financial Services1 | Other Entities1 | Eliminations1 | |||||
| 30.6.2013 | 31.12.2012 | 30.6.2013 | 31.12.2012 | 30.6.2013 | 31.12.20122 | 30.6.2013 | 31.12.2012 | |
| 67 | 72 | 479 | 486 | 1 | 1 | – | – | Intangible assets |
| 236 | 242 | 36 | 46 | – | – | – | – | Property, plant and equipment |
| – | – | 29,245 | 28,060 | – | – | –4,002 | –3,720 | Leased products |
| – | – | – | – | – | – | – | – | Investments accounted for using the equity method |
| – | – | 7 | 7 | 5,930 | 5,761 | –10,487 | –10,009 | Other investments |
| – | – | 32,383 | 32,309 | – | – | – | – | Receivables from sales financing |
| – | – | 193 | 126 | 1,422 | 1,730 | –499 | –467 | Financial assets |
| – | – | 282 | 279 | 309 | 349 | –853 | –878 | Deferred tax |
| – | – | 1,395 | 1,330 | 17,962 | 16,995 | –22,015 | –21,384 | Other assets |
| 303 | 314 | 64,020 | 62,643 | 25,624 | 24,836 | –37,856 | –36,458 | Non-current assets |
| 324 | 348 | 9 | 11 | – | – | – | – | Inventories |
| 115 | 114 | 146 | 123 | – | 1 | – | – | Trade receivables |
| – | – | 20,940 | 20,605 | – | – | – | – | Receivables from sales financing |
| – | – | 692 | 813 | 998 | 1,480 | –337 | –427 | Financial assets |
| – | – | 80 | 132 | 60 | 59 | – | – | Current tax |
| – | 31 | 3,673 | 3,573 | 27,964 | 30,285 | –42,665 | –46,387 | Other assets |
| – | – | 1,372 | 797 | 4 | 89 | – | – | Cash and cash equivalents |
| – 439 |
45 538 |
– 26,912 |
– 26,054 |
– 29,026 |
– 31,914 |
– –43,002 |
– –46,814 |
Assets held for sale Current assets |
| 742 | 852 | 90,932 | 88,697 | 54,650 | 56,750 | –80,858 | –83,272 | Total assets Equity and liabilities |
| Motorcycles1 | Financial Services1 | Other Entities1 | Eliminations1 | |||||
| 30.6.2013 | 31.12.2012 | 30.6.2013 | 31.12.20122 | 30.6.2013 | 31.12.20122 | 30.6.2013 | 31.12.2012 | |
| Subscribed capital | ||||||||
| Capital reserves | ||||||||
| Revenue reserves | ||||||||
| Accumulated other equity | ||||||||
| Minority interest | ||||||||
| – | – | 8,370 | 7,633 | 9,133 | 8,466 | –14,297 | –13,695 | Equity |
| 29 | 29 | 84 | 88 | 1,174 | 1,338 | – | – | Pension provisions |
| 143 | 135 | 189 | 173 | 30 | 30 | – | – | Other provisions |
| – | – | 4,980 | 4,777 | 32 | 5 | –2,330 | –2,193 | Deferred tax |
| – | – | 13,961 | 14,174 | 25,447 | 23,613 | –499 | –467 | Financial liabilities |
| 303 | 246 | 19,935 | 19,653 | 19 | 18 | –20,577 | –19,907 | Other liabilities |
| 475 | 410 | 39,149 | 38,865 | 26,702 | 25,004 | –23,406 | –22,567 | Non-current provisions and liabilities |
| 56 | 114 | 286 | 289 | 241 | 235 | 4 | 3 | Other provisions |
| – | – | 101 | 136 | 100 | 77 | – | – | Current tax |
| – | – | 18,407 | 16,830 | 9,830 | 12,720 | –337 | –427 | Financial liabilities |
| 198 | 277 | 551 | 474 | 2 | 13 | – | – | Trade payables |
| 13 | 21 | 24,068 | 24,470 | 8,642 | 10,235 | –42,822 | –46,586 | Equity attributable to shareholders of BMWAG Other liabilities |
| – 267 |
30 442 |
– 43,413 |
– 42,199 |
– 18,815 |
– 23,280 |
– –43,155 |
– –47,010 |
Liabilities in conjunction with assets held for sale Current provisions and liabilities |
| 742 | 852 | 90,932 | 88,697 | 54,650 | 56,750 | –80,858 | –83,272 | Total equity and liabilities |
Condensed Cash Flow Statements for Group and Segments for the period from 1 January to 30 June 2013
| Group | |||
|---|---|---|---|
| in € million | 2013 | 20122 | |
| Management Report | Net profit | 2,704 | 2,629 |
| The BMW Group – | Depreciation and amortisation of tangible, intangible and investment assets | 1,910 | 1,904 |
| General Economic | Change in provisions | 34 | 12 |
| Environment Automotive |
Change in leased products and receivables from sales financing | –2,709 | –1,082 |
| Change in deferred taxes | 156 | 148 | |
| 13 Financial Services 15 BMW Group – Capital |
Changes in working capital | –339 | 817 |
| Market Activities | Other | 497 | –836 |
| 16 Financial Analysis 23 Risk Management |
Cash inflow/outflow from operating activities | 2,253 | 3,592 |
| Interim Group | Investment in intangible assets and property, plant and equipment | –2,368 | –1,488 |
| Financial Statement | Net investment in marketable securities | –303 | –282 |
| 26 Income Statements 26 Statement of |
Other | –38 | 8 |
| Comprehensive Income | Cash inflow/outflow from investing activities | –2,709 | –1,762 |
| 30 Balance Sheets Cash Flow Statements 34 Group Statement of |
Cash inflow/outflow from financing activities | 113 | –1,545 |
| Changes in Equity | Effect of exchange rate on cash and cash equivalents | –9 | 23 |
| Responsibility statement by the Company's legal |
Effect of changes in composition of Group on cash and cash equivalents | 47 | 11 |
| representatives | Change in cash and cash equivalents | –305 | 319 |
| Review report | Cash and cash equivalents as at 1January | 8,370 | 7,776 |
| Other Information | Cash and cash equivalents as at 30June | 8,065 | 8,095 |
| 60 Financial Calendar 61 Contacts |
1 Supplementary information (not subject of the review). 2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3. |
3 Prior year figures have been adjusted in accordance with the reclassification described in the Group Financial Statements for the year ended 31 December 2012.
| Automotive1 | Financial Services1 | |||
|---|---|---|---|---|
| 2013 | 20122,3 | 2013 | 20123 | |
| 2,090 | 2,312 | 613 | 562 | Net profit |
| 1,863 | 1,866 | 10 | 12 | Depreciation and amortisation of tangible, intangible and investment assets |
| 82 | 39 | 21 | –27 | Change in provisions |
| 50 | – | –3,044 | –1,474 | Change in leased products and receivables from sales financing |
| 161 | 157 | 138 | 139 | Change in deferred taxes |
| –337 | 733 | 67 | 62 | Changes in working capital |
| 440 | –1,506 | 668 | 674 | Other |
| 4,349 | 3,601 | –1,527 | –52 | Cash inflow/outflow from operating activities |
| –2,340 | –1,437 | –4 | –12 | Investment in intangible assets and property, plant and equipment |
| –471 | –266 | 168 | –14 | Net investment in marketable securities |
| –339 | –208 | 168 | 3 | Other |
| –3,150 | –1,911 | 332 | –23 | Cash inflow/outflow from investing activities |
| –2,040 | –1,186 | 1,777 | 147 | Cash inflow/outflow from financing activities |
| –1 | 15 | –7 | 7 | Effect of exchange rate on cash and cash equivalents |
| 47 | 10 | – | 1 | Effect of changes in composition of Group on cash and cash equivalents |
| –795 | 529 | 575 | 80 | Change in cash and cash equivalents |
| 7,484 | 5,829 | 797 | 1,518 | Cash and cash equivalents as at 1January |
| 6,689 | 6,358 | 1,372 | 1,598 | Cash and cash equivalents as at 30June |
Group Statement of Changes in Equity to 30 June 2013
| BMW Group in figures |
in € million | Note | Subscribed capital |
Capital reserves |
Revenue reserves1, 2 |
|---|---|---|---|---|---|
| Management Report | |||||
| 1 January 2012, as originally reported | 25 | 655 | 1,955 | 26,102 | |
| 15 BMW Group – Capital | Impact of application of revised IAS 19 | – | – | 241 | |
| 1 January 2012 (adjusted) | 25 | 655 | 1,955 | 26,343 | |
| Dividends paid | – | – | –1,508 | ||
| Net profit Other comprehensive income for the period after tax |
– – |
– – |
2,619 –816 |
||
| Comprehensive Income | Comprehensive income 30 June 2012 | – | – | 1,803 | |
| Other changes | – | – | – | ||
| 30 June 2012 (adjusted) | 25 | 655 | 1,955 | 26,638 | |
| in € million | Note | Subscribed | Capital | Revenue reserves | |
| capital | reserves | ||||
| 1 January 2013, as originally reported | 25 | 656 | 1,973 | 28,340 | |
| Impact of application of revised IAS 19 1 January 2013 (adjusted) |
25 | – 656 |
– 1,973 |
204 28,544 |
|
| Dividends paid | – | – | –1,640 | ||
| Net profit | – | – | 2,693 |
1 With effect from the first quarter of the financial year 2013, other revenue reserves and the effect of pension obligations recognised directly in equity are presented on a net basis. 2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Other comprehensive income for the period after tax – – 664 –337 –46 340 621 – 621 Other comprehensive income for the period after tax Comprehensive income 30 June 2013 – – 3,357 –337 –46 340 3,314 11 3,325 Comprehensive income 30 June 2013
Other changes – – – – – – – 40 40 Other changes 30 June 2013 25 656 1,973 30,261 –1,321 62 542 32,173 158 32,331 30 June 2013
| Total 2 | Minority interest |
Equity attributable to |
Accumulated other equity | |||
|---|---|---|---|---|---|---|
| shareholders of BMW AG2 |
||||||
| Derivative financial instruments |
Securities | Translation differences |
||||
| 1 January 2012, as originally reported | 27,103 | 65 | 27,038 | –750 | –61 | –863 |
| Impact of application of revised IAS 19 | 241 | – | 241 | – | – | – |
| 1 January 2012 (adjusted) | 27,344 | 65 | 27,279 | –750 | –61 | –863 |
| Dividends paid | –1,508 | – | –1,508 | – | – | – |
| Net profit | 2,629 | 10 | 2,619 | – | – | – |
| Other comprehensive income for the period after tax | –772 | – | –772 | –222 | 98 | 168 |
| Comprehensive income 30 June 2012 | 1,857 | 10 | 1,847 | –222 | 98 | 168 |
| Other changes | 28 | 21 | 7 | – | – | 7 |
| 30 June 2012 (adjusted) | 27,721 | 96 | 27,625 | –972 | 37 | –688 |
| Accumulated other equity | Equity | Minority | Total | |||
|---|---|---|---|---|---|---|
| attributable to shareholders of BMW AG |
interest | |||||
| Translation differences |
Securities | Derivative financial instruments |
||||
| –984 | 108 | 202 | 30,295 | 107 | 30,402 | 1 January 2013, as originally reported |
| – | – | – | 204 | – | 204 | Impact of application of revised IAS 19 |
| –984 | 108 | 202 | 30,499 | 107 | 30,606 | 1 January 2013 (adjusted) |
| – | – | – | –1,640 | – | –1,640 | Dividends paid |
| – | – | – | 2,693 | 11 | 2,704 | Net profit |
| –337 | –46 | 340 | 621 | – | 621 | Other comprehensive income for the period after tax |
| –337 | –46 | 340 | 3,314 | 11 | 3,325 | Comprehensive income 30 June 2013 |
| – | – | – | – | 40 | 40 | Other changes |
| –1,321 | 62 | 542 | 32,173 | 158 | 32,331 | 30 June 2013 |
Notes to the Group Financial Statement to 30 June 2013 Accounting Principles and Policies
The Group Financial Statements of BMWAG at 31 December 2012 were drawn up in accordance with International Financial Reporting Standards (IFRSs), as applicable in the European Union (EU) at that date. The interim Group Financial Statements (Interim Report) at 30 June 2013, which have been prepared in accordance with International Accounting Standard (IAS) 34 (Interim Financial Reporting), have been drawn up using, in all material respects, the same accounting methods as those utilised in the 2012 Group Financial Statements. The BMW Group applies the option, available under IAS 34.8, of publishing condensed group financial statements. All Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) which are mandatory at 30 June 2013 have been applied. The Interim Report also complies with German Accounting Standard No. 16 (GAS 16) – Interim Financial Reporting – issued by the German Accounting Standards Committee e. V. (GASC).
Further information regarding the Group's accounting principles and policies is contained in the Group Financial Statements at 31 December 2012.
In order to improve clarity, various items are aggregated in the income statement and balance sheet. These items are disclosed and analysed separately in the notes.
A Statement of Comprehensive Income is presented at Group level reconciling the net profit to comprehensive income for the year.
In order to provide a better insight into the net assets, financial position and performance of the BMW Group and going beyond the requirements of IFRS 8 (Operating Segments), the Interim Group Financial Statements also include balance sheets and income statements for the Automotive, Motorcycles, Financial Services and Other Entities segments. The Group Cash Flow Statement is supplemented by statements of cash flows for the Automotive and Financial Services segments.
In order to facilitate the sale of its products, the BMW Group provides various financial services – mainly loan and lease financing – to both retail customers and dealers. The inclusion of the financial services activities of the Group therefore has an impact on the Interim Group Financial Statements.
Inter-segment transactions – relating primarily to internal sales of products, the provision of funds and the
related interest – are eliminated in the "Eliminations" column. More detailed information regarding the allocation of activities of the BMW Group to segments and a description of the segments is provided in the explanatory notes to segment information in the Group Financial Statements of BMWAG for the year ended 31 December 2012.
In conjunction with the refinancing of financial services business, a significant volume of receivables arising from retail customer and dealer financing is sold. Similarly, rights and obligations relating to leases are sold. The sale of receivables is a well-established instrument used by industrial companies. These transactions usually take the form of asset-backed financing transactions involving the sale of a portfolio of receivables to a trust which, in turn, issues marketable securities to refinance the purchase price. The BMW Group continues to "service" the receivables and receives an appropriate fee for these services. In accordance with IAS 27 (Consolidated and Separate Financial Statements) and the interpretation contained in SIC-12 (Consolidation – Special Purpose Entities) such assets remain in the Group Financial Statements although they have been legally sold. Gains and losses relating to the sale of such assets are not recognised until the assets are removed from the Group balance sheet on transfer of the related significant risks and rewards. The balance sheet value of the assets sold at 30 June 2013 totalled € 10.6 billion (31 December 2012: € 9.4 billion).
In addition to credit financing and leasing contracts, the Financial Services segment also brokers insurance business via cooperation arrangements entered into with local insurance companies. These activities are not material to the BMW Group as a whole.
The Interim Group Financial Statements at 30 June 2013 have been reviewed by the Group auditors, KPMGAG Wirtschaftsprüfungsgesellschaft, Berlin.
The Group currency is the euro. All amounts are disclosed in millions of euros (€ million) unless stated otherwise.
The preparation of the Group Financial Statements requires management to make certain assumptions and judgements and to use estimations that can affect the reported amounts of assets and liabilities, revenues and expenses and contingent liabilities. All assumptions and estimates are based on factors known at the end of the reporting period. They are determined on the basis
of the most likely outcome of future business developments. Actual amounts could differ from those assumptions and estimates if business conditions develop
The BMW Group Financial Statements for the second quarter 2013 include, besides BMWAG, 24 German and 162 foreign subsidiaries. This includes four special purpose securities funds and 26 special purpose trusts, almost all of which are used for asset backed financing.
No entities were consolidated for the first time during the second quarter 2013. BMW Peugeot Citroën Electrification GmbH, Munich, which was not part of the group reporting entity at 31 December 2012, was merged with BMWAG, Munich, with retrospective effect from 1 January 2013.
No entities ceased to be consolidated companies during the second quarter 2013.
Compared to the corresponding six-month period last year, four subsidiaries, one special purpose securities fund and six special purpose trusts have been
In June 2011 the IASB published amendments to IAS 19 (Employee Benefits), in particular in relation to postretirement benefits and pensions. The revised Standard was endorsed by the EU in June 2012. The revised version of IAS 19 is mandatory for annual periods beginning on or after 1 January 2013.
As a result of the revised Standard, the BMW Group has made amendments mainly in connection with the measurement of obligations for pensions and pre-retirement part-time working arrangements.
The change in the measurement of pension obligations relates primarily to the treatment of other expected administrative costs.
The requirement to recognise past service cost immediately as expense (rather than spread such costs over the term of the obligations) also results in an adjustment to pension provisions.
The adjustments to the provision for pre-retirement part-time working arrangements result from a change in the measurement of top-up amounts, which are now required, in accordance with revised IAS 19.8, to be recognised as other long-term employee benefits.
differently to the Group's expectations at the end of the reporting period. Estimates and underlying assumptions are checked regularly.
consolidated for the first time. Six subsidiaries, three special purpose securities funds and three special purpose trusts ceased to be consolidated companies.
No entities were consolidated for the first time in the first half of 2013. BMW Peugeot Citroën Electrification GmbH, Munich, which was not part of the group reporting entity at 31 December 2012, was merged with BMWAG, Munich, with retrospective effect from 1 January 2013.
Husqvarna Motorcycles S.r.l., Cassinetta di Biandronno, and Husqvarna Motorcycles NA, LLC, Wilmington, DE, were sold during the six-month period and therefore ceased to be consolidated companies.
The changes to the composition of the Group do not have a material impact on the earnings performance, financial position or net assets of the Group.
Under the new rules, the expense for top-up amounts is required to be recognised over the period of the working phase of such arrangements and then released over the period of the work-free phase (rather than recognising the full amount as a provision at the start of the working phase).
The revised version of IAS 19 also changes the presentation of financial result in the income statement. As a result of the fact that net interest is now required to be computed on the basis of the net liability from defined benefit pension plans, the expense arising from unwinding the interest on pension obligations is now offset against interest income from plan assets. The statement of total comprehensive income now includes the line item "Remeasurement of the net liability for defined benefit pension plans". In previous financial statements (up to the Group Financial Statements for the year ended 31 December 2012), the corresponding amounts were designated as actuarial gains and losses on defined benefit pension benefits, similar obligations and plan assets.
The removal of the corridor method and other amendments to IAS 19 do not have any impact on the BMW Group.
23 Outlook
The new rules are required to be applied retrospectively. For this reason, the opening balance sheet at 1 January 2012, the prior year comparative balance sheet and the opening balance sheet at 1 January 2013 have been adjusted and made comparable.
The following tables show the impact on the opening balance sheet at 1 January 2012, on the balance sheet at 31 December 2012 as well as on the income statement and statement of comprehensive income for the first half of 2012:
| 1 January 2012 in € million |
As originally reported |
Adjustment | As reported |
|---|---|---|---|
| Total assets | 123,429 | –7 | 123,422 |
| thereof deferred taxes | 1,926 | –45 | 1,881 |
| thereof other assets (short term and long term) | 3,913 | 38 | 3,951 |
| Total provisions and liabilities (short term and long term) | 96,326 | –248 | 96,078 |
| thereof pension provisions | 2,183 | –187 | 1,996 |
| thereof other provisions (short term and long term) | 6,253 | –103 | 6,150 |
| thereof deferred taxes | 3,273 | 42 | 3,315 |
| Total equity | 27,103 | 241 | 27,344 |
| thereof equity attributable to shareholders of BMW AG | 27,038 | 241 | 27,279 |
| thereof revenue reserves | 26,102 | 241 | 26,343 |
| 31 December 2012 in € million |
As originally reported |
Adjustment | As reported |
| Total assets | 131,850 | –15 | 131,835 |
| thereof deferred taxes | 2,001 | –34 | 1,967 |
| thereof other assets (short term and long term) | 4,448 | 19 | 4,467 |
| Total provisions and liabilities (short term and long term) | 101,448 | –219 | 101,229 |
| thereof pension provisions | 3,965 | –152 | 3,813 |
| thereof other provisions (short term and long term) | 6,795 | –108 | 6,687 |
| thereof deferred taxes | 3,040 | 41 | 3,081 |
| Total equity | 30,402 | 204 | 30,606 |
| thereof equity attributable to shareholders of BMW AG | 30,295 | 204 | 30,499 |
| thereof revenue reserves | 28,340 | 204 | 28,544 |
| 1 January to 30 June 2012 in € million |
As originally reported |
Adjustment | As reported |
|---|---|---|---|
| Selling and administrative expenses | –3,363 | –1 | –3,364 |
| Profit before financial result | 4,402 | –1 | 4,401 |
| Interest and similar income | 387 | –264 | 123 |
| Interest and similar expenses | –422 | 268 | –154 |
| Financial result | –349 | 4 | –345 |
| Profit before tax | 4,053 | 3 | 4,056 |
| Income tax | –1,427 | – | –1,427 |
| Net profit | 2,626 | 3 | 2,629 |
| Profit attributable to shareholders of BMW AG | 2,616 | 3 | 2,619 |
| Earnings per share of common stock in € | 3.99 | – | 3.99 |
| Earnings per share of preferred stock in € | 4.00 | – | 4.00 |
| Diluted earnings per share of common stock in € | 3.99 | – | 3.99 |
| Diluted earnings per share of preferred stock in € | 4.00 | – | 4.00 |
| 1 January to 30 June 2012 in € million |
As originally reported |
Adjustment | As reported |
|---|---|---|---|
| Net profit | 2,626 | 3 | 2,629 |
| Remeasurement of net liability for defined benefit pension plans | –1,065 | –63 | –1,128 |
| Deferred taxes | 287 | 25 | 312 |
| Items not expected to be reclassified to the income statement in the future | –778 | –38 | –816 |
| Other comprehensive income for the period after tax | –734 | –38 | –772 |
| Total comprehensive income | 1,892 | –35 | 1,857 |
| Total comprehensive income attributable to shareholders of BMW AG | 1,882 | –35 | 1,847 |
* Presentation adjusted in accordance with revised IAS 1.
Due to the immateriality of the amounts involved, the effect of adjustments to the income statement and statement of comprehensive income is only presented for the first half of 2012 and not, additionally, for the second quarter 2012.
The adjustments resulting from revised IAS 19 do not have any cash flow impact. For this reason, there are no changes in the overall operating cash flow for the Group and the segments in the first half of 2012. There are, however, some shifts between individual reconciliation line items within operating activities.
The following tables show the impact on the balance sheet at 30 June 2013 and on the income statement and statement of comprehensive income for the six-month period then ended of applying IAS 19 in its 2008 version:
| 30 June 2013 in € million |
IAS 19 (2011) |
Adjustment | IAS 19 (2008) |
|---|---|---|---|
| Total assets | 134,151 | 15 | 134,166 |
| thereof deferred taxes | 1,880 | 31 | 1,911 |
| thereof other assets (short term and long term) | 4,755 | –16 | 4,739 |
| Total provisions and liabilities (short term and long term) | 101,820 | 203 | 102,023 |
| thereof pension provisions | 2,937 | 145 | 3,082 |
| thereof other provisions (short term and long term) | 6,667 | 95 | 6,762 |
| thereof deferred taxes | 3,603 | –37 | 3,566 |
| Total equity | 32,331 | –188 | 32,143 |
| thereof equity attributable to shareholders of BMW AG | 32,173 | –188 | 31,985 |
| thereof revenue reserves | 30,261 | –188 | 30,073 |
| 1 January to 30 June 2013 in € million |
IAS 19 (2011) |
Adjustment | IAS 19 (2008) |
|---|---|---|---|
| Selling and administrative expenses | –3,463 | –7 | –3,470 |
| Profit before financial result | 4,107 | –7 | 4,100 |
| Interest and similar income | 93 | 219 | 312 |
| Interest and similar expenses | –218 | –223 | –441 |
| Financial result | –72 | –4 | –76 |
| Profit before tax | 4,035 | –11 | 4,024 |
| Income tax | –1,331 | 5 | –1,326 |
| Net profit | 2,704 | –6 | 2,698 |
| Profit attributable to shareholders of BMW AG | 2,693 | –6 | 2,687 |
| Earnings per share of common stock in € | 4.10 | – | 4.10 |
| Earnings per share of preferred stock in € | 4.11 | – | 4.11 |
| Diluted earnings per share of common stock in € | 4.10 | – | 4.10 |
| Diluted earnings per share of preferred stock in € | 4.11 | – | 4.11 |
| 1 January to 30 June 2013 in € million |
IAS 19 (2011) |
Adjustment | IAS 19 (2008) |
|---|---|---|---|
| Net profit | 2,704 | –6 | 2,698 |
| Remeasurement of net liability for defined benefit pension plans | 935 | –7 | 928 |
| Deferred taxes | –271 | 2 | –269 |
| Items not expected to be reclassified to the income statement in the future | 664 | –5 | 659 |
| Other comprehensive income for the period after tax | 621 | –5 | 616 |
| Total comprehensive income | 3,325 | –11 | 3,314 |
| Total comprehensive income attributable to shareholders of BMW AG | 3,314 | –11 | 3,303 |
Due to the immateriality of the amounts involved, the effect of adjustments to the income statement and statement of comprehensive income is only presented for the first half of 2013 and not, additionally, for the second quarter 2013.
(a) Financial reporting rules applied for the first time in the first half of 2013 The following Standards, Revised Standards, Amendments and Interpretations were applied for the first time in the first half of 2013:
| Standard/ Interpretation | Date of issue by IASB |
Date of mandatory application IASB |
Date of mandatory application EU |
Expected impact on BMW Group |
||
|---|---|---|---|---|---|---|
| IFRS 1 | Amendments with Respect to Fixed Transition Dates and Severe Inflation |
20.12.2010 | 1.7.2011 | 1.1.2013 | None | |
| IFRS 1 | Amendments relating to Government Loans at a Below Market Rate of Interest |
13.3.2012 | 1.1.2013 | 1.1.2013 | Insignificant | |
| IFRS 7 | Notes Disclosures: Offsetting of Financial Assets and Financial Liabilities |
16.12.2011 | 1.1.2013 | 1.1.2013 | Insignificant | |
| IFRS 13 | Fair Value Measurement | 12.5.2011 | 1.1.2013 | 1.1.2013 | Significant in principle | |
| IAS 1 | Changes to Presentation of Items in Other Comprehensive Income (OCI) |
16.6.2011 | 1.7.2012 | 1.7.2012* | Significant in principle | |
| IAS 12 | Amendments to Deferred Taxes: Realisation of Underlying Assets |
20.12.2010 | 1.1.2012 | 1.1.2013 | Insignificant | |
| IAS 19 | Changes in Accounting for Employee Benefits, in particular for Termination Benefits and Pensions |
16.6.2011 | 1.1.2013 | 1.1.2013 | Significant in principle | |
| IFRIC 20 | Stripping Costs in the Production Phase of a Mine |
19.10.2011 | 1.1.2013 | 1.1.2013 | None | |
| Annual Improvements to IFRS 2009–2011 | 17.5.2012 | 1.1.2013 | 1.1.2013 | Insignificant |
* Mandatory application in annual periods beginning on or after 1 July 2012.
The following Standards, Revised Standards and Amendments issued by the IASB during previous
accounting periods, were not mandatory for the period under report and were not applied in the first half of the financial year 2013:
| Standard/ Interpretation | Date of issue by IASB |
Date of mandatory application IASB |
Date of mandatory application EU |
Expected impact on BMW Group |
||
|---|---|---|---|---|---|---|
| IFRS 9 | Financial Instruments | 12.11.2009/ 28.10.2010/ 16.12.2011 |
1.1.2015 | No | Significant in principle | |
| IFRS 10 | Consolidated Financial Statements | 12.5.2011 | 1.1.2013 | 1.1.2014 | Significant in principle | |
| IFRS 11 | Joint Arrangements | 12.5.2011 | 1.1.2013 | 1.1.2014 | Significant in principle | |
| IFRS 12 | Disclosure of Interests in Other Entities |
12.5.2011 | 1.1.2013 | 1.1.2014 | Significant in principle | |
| Changes in Transitional Regulations (IFRS 10, IFRS 11 and IFRS 12) |
28.6.2012 | 1.1.2013 | 1.1.2014 | Significant in principle | ||
| Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) |
31.10.2012 | 1.1.2014 | No | Insignificant | ||
| IAS 27 | Separate Financial Statements | 12.5.2011 | 1.1.2013 | 1.1.2014 | None | |
| IAS 28 | Investments in Associates and Joint Ventures |
12.5.2011 | 1.1.2013 | 1.1.2014 | None | |
| IAS 32 | Presentation – Offsetting of Financial Assets and Financial Liabilities |
16.12.2011 | 1.1.2014 | 1.1.2014 | Insignificant | |
| IAS 36 | Impairment of Assets – Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36) |
29.5.2013 | 1.1.2014 | No | Insignificant | |
| IAS 39 | Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39) |
27.6.2013 | 1.1.2014 | No | Insignificant | |
| IFRIC 21 | Disclosures | 20.5.2013 | 1.1.2014 | No | Insignificant |
In November 2009 the IASB issued IFRS 9 (Financial Instruments: Disclosures) as the first part of its project to change the accounting treatment for financial instruments. This Standard marks the first of three phases of the IASB project to replace the existing IAS 39 (Financial Instruments: Recognition and Measurement). The first phase deals with financial assets. IFRS 9 amends the recognition and measurement requirements for financial assets, including various hybrid contracts. It applies a uniform approach to accounting for a financial asset either at amortised cost or fair value and replaces the various rules contained in IAS 39. Under the new rules, there are now only three, instead of four, measurement categories for financial instruments recognised on the
assets side of the balance sheet. The new categorisation is based partly on the entity's business model and partly on the contractual cash flow characteristics of the financial assets.
In October 2010, additional rules for financial liabilities were added. The requirements for financial liabilities contained in IAS 39 remain unchanged with the exception of new requirements relating to an entity's own credit risk when it exercises the fair value option. IFRS 9 is mandatory for financial years beginning on or after 1 January 2015. The BMW Group will not apply IFRS 9 early. The impact of adoption of the Standard on the Group Financial Statements is currently being assessed.
In May 2011 the IASB issued three new Standards – IFRS 10 (Consolidated Financial Statements), IFRS 11 (Joint Arrangements), IFRS 12 (Disclosure of Interests in Other Entities) – as well as amendments to IAS 27 (Separate Financial Statements) and to IAS 28 (Investments in Associates and Joint Ventures) all relating to accounting for business combinations. The Standards are mandatory for the first time for annual periods beginning on or after 1 January 2013. Early adoption is permitted. The new Standards are required to be applied retrospectively. EU endorsement stipulates a later mandatory date (from 1 January 2014) due to increased implementation expense.
IFRS 10 replaces the consolidation guidelines contained in IAS 27 and SIC-12 (Consolidation – Special Purpose Entities). The requirements for separate financial statements remain unchanged in the revised version of IAS 27.
IFRS 10 introduces a uniform model which establishes control as the basis for consolidation – control of a subsidiary entity by a parent entity – and which can be applied to all entities. The control concept must therefore be applied both to parent-subsidiary relationships based on voting rights as well as to parent-subsidiary relationships arising from other contractual arrangements. Under the control concept established in IFRS 10, an investor controls another entity when it is exposed to or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
IFRS 11 supersedes IAS 31 (Interests in Joint Ventures) and SIC-13 (Jointly Controlled Entities – Non-Monetary Contributions by Ventures). This Standard sets out the requirements for accounting for joint arrangements and places the emphasis on the rights and obligations that arise from such arrangements. IFRS 11 distinguishes between two types of joint arrangements, namely joint operations and joint ventures, and therefore results in a change in the classification of joint arrangements. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. IFRS 11 requires joint operators to account for their share of assets and liabilities in the joint operation (and their share of income and expenses).
Joint venturers are required to account for their investment using the equity method. The withdrawal of IAS 31 means the removal of the option to account for joint ventures using either the proportionate consolidation or the equity method. The equity method must be applied in accordance with amended IAS 28.
IFRS 12 sets out the requirements for disclosures relating to all types on interests in other entities, including joint arrangements, associated companies, structured entities and unconsolidated entities.
The amendments to the transitional regulations in IFRS 10, IFRS 11 and IFRS 12 have the objective of making it easier for entities to apply the Standards retrospectively. The amendments also restrict the requirement to disclose comparative amounts to the immediately preceding reporting period at the date of first-time application.
The BMW Group is currently investigating the impact on the Group Financial Statements of applying IFRS 10, IFRS 11, IFRS 12, IAS 27 and IAS 28. The removal of the option for accounting for joint ventures does not have any impact since the BMW Group accounts for joint ventures using the equity method. It is currently being investigated whether any joint ventures will be required to be reclassified as joint operations as a result of the introduction of IFRS 11. The BMW Group does not intend to adopt the Standard early.
Notes to the Group Financial Statement to 30 June 2013 Notes to the Income Statement
Revenues by activity comprise the following:
| in € million | 2nd quarter 2013 |
2nd quarter 2012 |
1January to 30 June 2013 |
1January to 30 June 2012 |
|---|---|---|---|---|
| Sales of products and related goods | 14,665 | 14,543 | 27,554 | 28,243 |
| Income from lease instalments | 1,831 | 1,707 | 3,596 | 3,378 |
| Sale of products previously leased to customers | 1,663 | 1,542 | 3,226 | 3,159 |
| Interest income on loan financing | 724 | 729 | 1,437 | 1,467 |
| Other income | 669 | 681 | 1,285 | 1,248 |
| Revenues | 19,552 | 19,202 | 37,098 | 37,495 |
An analysis of revenues by segment is shown in the segment information in note 32.
Cost of sales in the second quarter includes € 4,048 million (2012: € 3,929 million) relating to financial services business. For the period from 1 January to 30 June 2013, € 7,966 million (2012: € 7,898 million) relates to financial services business.
Second-quarter cost of sales includes research and development expenses of € 958 million (2012: € 1,034 mil-
Selling expenses, comprising mainly marketing, advertising and sales personnel costs, amounted to € 1,230 million in the second quarter (2012: € 1,249 million) and to € 2,347 million (2012: € 2,485 million) in the first half of the year.
Other operating income in the second quarter totalled € 165 million (2012: € 175 million). The six-month figure amounted to € 321 million (2012: € 356 million). Secondquarter and six-month other operating expenses totalled € 214 million (2012: € 206 million) and € 322 million
The result from equity accounted investments in the second quarter was a positive amount of € 164 million (2012: € 105 million). For the first half of the year, the equivalent figure was € 249 million (2012: € 148 million). In both cases, the figure reported includes the results of the BMW Group's interests in the joint ventures
lion), comprising all research costs and development costs not recognised as assets as well as the amortisation of capitalised development costs amounting to € 263 million (2012: € 302 million). For the first half of the year, research and development expenses amounted to € 1,946 million (2012: € 2,006 million). This includes amortisation on capitalised development costs of € 538 million (2012: € 603 million).
Administrative expenses amounted to € 645 million (2012* : € 481 million) in the second quarter and to € 1,116 million (2012* : € 879 million) in the first half of the year. Administrative expenses comprise expenses for administration not attributable to development, production or sales functions.
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
(2012: € 383 million) respectively. These items principally include exchange gains and losses, gains and losses on the disposal of assets, write-downs and income / expense from the reversal of, and allocation to, provisions.
BMW Brilliance Automotive Ltd., Shenyang, SGL Automotive Carbon Fibers GmbH & Co. KG, Munich, SGL Automotive Carbon Fibers Verwaltungs GmbH, Munich, SGL Automotive Carbon Fibers LLC, Dover, DE, DriveNow GmbH & Co. KG, Munich, and DriveNow Verwaltungs GmbH, Munich.
| Financial Statement |
|---|
60 Financial Calendar 61 Contacts
| in € million | 2nd quarter 2013 |
2nd quarter 2012* |
1January to 30 June 2013 |
1January to 30 June 2012* |
|---|---|---|---|---|
| Interest and similar income | 51 | 68 | 93 | 123 |
| Interest and similar expenses | –140 | –49 | –218 | –154 |
| Net interest result | –89 | 19 | –125 | –31 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| in € million | 2nd quarter 2013 |
2nd quarter 2012 |
1January to 30 June 2013 |
1January to 30 June 2012 |
|---|---|---|---|---|
| Result on investments | –82 | –150 | –81 | –149 |
| Sundry other financial result | –29 | –265 | –115 | –313 |
| Other financial result | –111 | –415 | –196 | –462 |
The result from investments was negatively impacted by an impairment loss on investments amounting to € 85 million (2012: € 154 million).
Taxes on income comprise the following:
| in € million | 2nd quarter 2013 |
2nd quarter 2012* |
1January to 30 June 2013 |
1January to 30 June 2012* |
|---|---|---|---|---|
| Current tax expense | 651 | 700 | 1,175 | 1,279 |
| Deferred tax income/expense | –11 | –1 | 156 | 148 |
| Income taxes | 640 | 699 | 1,331 | 1,427 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
The effective tax rate for the six-month period to 30 June 2013 was 33.0% (2012: 35.2%) and corresponds to the best estimate of the weighted average annual income tax rate for the full year. This tax rate has been applied to the pre-tax profit for the six-month period.
The computation of earnings per share is based on the following figures:
| 2nd quarter 2013 |
2nd quarter 2012* |
1January to 30 June 2013 |
1January to 30 June 2012* |
||
|---|---|---|---|---|---|
| Profit attributable to the shareholders | € million | 1,386.0 | 1,273.5 | 2,692.7 | 2,618.9 |
| Profit attributable to common stock Profit attributable to preferred stock |
€ million (rounded) € million (rounded) |
1,271.5 114.5 |
1,168.9 104.6 |
2,470.6 222.1 |
2,404.4 214.5 |
| Average number of common stock shares in circulation Average number of preferred stock shares in circulation |
number number |
601,995,196 53,994,217 |
601,995,196 53,571,372 |
601,995,196 53,994,217 |
601,995,196 53,571,372 |
| Earnings per share of common stock Earnings per share of preferred stock |
€ € |
2.11 2.12 |
1.94 1.95 |
4.10 4.11 |
3.99 4.00 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Earnings per share are calculated for common and preferred stock by dividing the net profit after minority interests, as attributable to each category of stock, by the average number of shares in circulation.
In computing earnings per share of preferred stock, earnings to cover the additional dividend of € 0.02 per share of preferred stock are spread over the four quarters of the corresponding financial year. Earnings per share of preferred stock are computed on the basis of the number of preferred stock shares entitled to receive a dividend in each of the relevant financial years. As in the previous year, diluted earnings per share correspond to undiluted earnings per share.
Notes to the Group Financial Statement to 30 June 2013 Notes to the Statement of Comprehensive Income
| in € million | 2nd quarter 2013 |
2nd quarter | 1January to 20122 30 June 2013 |
1January to 30 June 20122 |
|---|---|---|---|---|
| Remeasurement of net liability for defined benefit pension plans | 633 | –594 | 935 | –1,128 |
| Deferred taxes | –124 | 180 | –271 | 312 |
| Items not expected to be reclassified to the income statement in the future |
509 | –414 | 664 | –816 |
| Available-for-sale securities | –58 | 86 | –67 | 111 |
| thereof gains / losses arising in the period under report | –50 | 27 | –42 | 55 |
| thereof reclassifications to the income statement | –8 | 59 | –25 | 56 |
| Financial instruments used for hedging purposes | 881 | –1,204 | 518 | –317 |
| thereof gains / losses arising in the period under report | 889 | –1,335 | 464 | –518 |
| thereof reclassifications to the income statement | –8 | 131 | 54 | 201 |
| Other comprehensive income from equity accounted investments | 15 | –42 | –41 | 3 |
| Deferred taxes | –238 | 437 | –92 | 87 |
| Currency translation foreign operations | –326 | 282 | –361 | 160 |
| Items expected to be reclassified to the income statement in the future |
274 | –441 | –43 | 44 |
Other comprehensive income for the period after tax 783 –855 621 –772
1 Presentation adjusted in accordance with revised IAS 1.
2 Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| in € million | 2ndquarter 2013 | 2nd quarter 2012* | ||||
|---|---|---|---|---|---|---|
| Before tax |
Deferred taxes |
After tax |
Before tax |
Deferred taxes |
After tax |
|
| Remeasurement of net liability for defined benefit pension plans | 633 | –124 | 509 | –594 | 180 | –414 |
| Available-for-sale securities | –58 | 16 | –42 | 86 | 7 | 93 |
| Financial instruments used for hedging purposes | 881 | –250 | 631 | –1,204 | 415 | –789 |
| Other comprehensive income for the period from equity accounted investments |
15 | –4 | 11 | –42 | 15 | –27 |
| Exchange differences on translating foreign operations | –326 | – | –326 | 282 | – | 282 |
| Other comprehensive income | 1,145 | –362 | 783 | –1,472 | 617 | –855 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| in € million 1January to 30 June 2013 |
1January to 30 June 2012* | |||||
|---|---|---|---|---|---|---|
| Before | Deferred | After | Before | Deferred | After | |
| tax | taxes | tax | tax | taxes | tax | |
| Remeasurement of net liability for defined benefit pension plans | 935 | –271 | 664 | –1,128 | 312 | –816 |
| Available-for-sale securities | –67 | 21 | –46 | 111 | –13 | 98 |
| Financial instruments used for hedging purposes | 518 | –129 | 389 | –317 | 99 | –218 |
| Other comprehensive income for the period from equity accounted investments |
–41 | 16 | –25 | 3 | 1 | 4 |
| Exchange differences on translating foreign operations | –361 | – | –361 | 160 | – | 160 |
| Other comprehensive income | 984 | –363 | 621 | –1,171 | 399 | –772 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Notes to the Group Financial Statement to 30 June 2013 Notes to the Balance Sheet
Intangible assets mainly comprise capitalised development costs on vehicle and engine projects as well as subsidies for tool costs, licences, purchased development projects and software. Capitalised development costs at 30 June 2013 amounted to € 4,359 million (31 December 2012: € 4,347 million). Additions to development costs in the first half of the year totalled € 550 million (2012: € 440 million). The amortisation expense for the period was € 538 million (2012: € 603 million). At 30 June 2013 other intangible assets amounted to € 805 million (31 December 2012: € 491 million). Capital expenditure for other intangible assets during the first half of the year amounted to € 408 million (2012: € 36 million). An impairment loss of € 5 million (2012: € – million) was recorded in this period. Capital expenditure for other
Capital expenditure for property, plant and equipment in the first six months of 2013 totalled € 1,420 million (2012: € 1,013 million). The depreciation expense for the
Additions / reclassifications to leased products and depreciation thereon in the first six months of 2013 amounted to € 7,482 million (2012: € 6,598 million) and € 2,561 million (2012: € 2,493 million) respectively.
Investments accounted for using the equity method comprise the Group's investments in the joint ventures BMW Brilliance Automotive Ltd., Shenyang, SGL Automotive Carbon Fibers GmbH & Co. KG, Munich, SGL Automotive Carbon Fibers Verwaltungs GmbH, Munich, SGL Automotive Carbon Fibers LLC, Dover, DE, DriveNow GmbH & Co. KG, Munich, and DriveNow Verwaltungs GmbH, Munich.
Receivables from sales financing totalling € 53,323 million (31 December 2012: € 52,914 million) relate to credit financing for retail customers and dealers and to finance leases.
intangible assets included the acquisition of licenses amounting to € 379 million, which are being amortised on a straight-line basis over a period of six years. Amortisation on other intangible assets for the six-month period totalled € 86 million (2012: € 48 million).
In addition, intangible assets include a brand-name right amounting to € 42 million (31 December 2012: € 44 million), goodwill of € 33 million (31 December 2012: € 33 million) allocated to the Automotive cash-generating unit and goodwill of € 336 million (31 December 2012: € 336 million) allocated to the Financial Services cashgenerating unit.
Intangible assets amounting to € 42 million (31 December 2012: € 44 million) are subject to restrictions on title.
same period totalled € 1,196 million (2012: € 1,100 million), while disposals amounted to € 9 million (2012: € 22 million).
Disposals totalled € 4,010 million (2012: € 3,696 million). The translation of foreign currency financial statements resulted in a net negative translation difference of € 58 million (2012: net positive translation difference of € 261 million).
Other investments relate primarily to investments in non-consolidated subsidiaries, interests in associated companies not accounted for using the equity method, participations and non-current marketable securities. Impairment losses totalling € 85 million (2012: € 154 million)were recognised on investments during the six-month period under report. The impairment losses related mainly to the investment in SGL Carbon SE, Wiesbaden, which was written down after tested for impairment.
Receivables from sales financing include € 32,383 million (31 December 2012: € 32,309 million) with a remaining term of more than one year.
Financial assets comprise:
| in € million | 30.6.2013 | 31.12.2012 |
|---|---|---|
| Derivative instruments | 2,861 | 2,992 |
| Marketable securities and investment funds | 2,918 | 2,655 |
| Loans to third parties | 33 | 44 |
| Credit card receivables | 225 | 234 |
| Other | 656 | 835 |
| Financial assets | 6,693 | 6,760 |
| thereof non-current | 1,994 | 2,148 |
| thereof current | 4,699 | 4,612 |
Income tax assets totalling € 1,088 million (31 December 2012: € 966 million) include claims amounting to € 700 million (31 December 2012: € 638 million) which are expected to be settled after more than twelve months. Some of the claims may be settled earlier than this depending on the timing of proceedings.
| in € million | 30.6.2013 | 31.12.2012* |
|---|---|---|
| Other taxes | 636 | 796 |
| Receivables from subsidiaries | 760 | 738 |
| Receivables from other companies in which an investment is held | 720 | 676 |
| Prepayments | 1,166 | 1,043 |
| Collateral receivables | 725 | 555 |
| Sundry other assets | 748 | 659 |
| Other assets | 4,755 | 4,467 |
| thereof non-current | 889 | 803 |
| thereof current | 3,866 | 3,664 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Inventories comprise the following:
| in € million | 30.6.2013 | 31.12.2012 | |
|---|---|---|---|
| Raw materials and supplies | 844 | 786 | |
| Work in progress, unbilled contracts | 850 | 827 | |
| Finished goods and goods for resale | 8,660 | 8,112 | |
| Inventories | 10,354 | 9,725 |
Financial Statement 26 Income Statements 26 Statement of
60 Financial Calendar 61 Contacts
In the financial year 2012 the Board of Management of BMWAG decided to realign its strategic direction for the Motorcycles segment in view of the changing nature of motorcycle markets, demographic developments and stricter environmental requirements. The BMW Group intends to broaden its product range, in particular in the fields of urban mobility and e-mobility, in order to open up future growth opportunities. In line with the decision to focus on the BMW Motorrad brand, and considering the declining size of the relevant markets, it was considered a sensible move to sell the Husqvarna Motorcycles brand.
Equity 25
The Group Statement of Changes in Equity is shown on pages 34 and 35.
At 30 June 2013 common stock issued by BMWAG was divided, as at the end of the previous year, into 601,995,196 shares of common stock with a par-value of € 1. Preferred stock issued by BMWAG was divided into 53,994,217 shares (31 December 2012: 53,994,217 shares) with a par-value of € 1. Unlike the common stock, no voting rights are attached to the preferred stock. All of the Company's stock is issued to bearer. Preferred stock bears an additional dividend of € 0.02 per share.
The shareholders have passed a resolution at the Annual General Meeting authorising the Board of Management, with the approval of the Supervisory Board, to increase the Company's share capital by up to € 5 million prior to 13 May 2014 in return for cash contributions and the issue of new non-voting preferred stock. Based on this authorisation, 1,798,055 shares of preferred stock have been issued to employees up to the reporting date. Authorised Capital therefore stands at € 3.2 million at 30 June 2013. The BMW Group did not hold any treasury shares at the end of the reporting period.
Capital reserves include premiums arising from the issue of shares and were unchanged from 31 December 2012 at € 1,973 million.
Revenue reserves comprise the post-acquisition and non-distributed earnings of consolidated companies. In addition, revenue reserves include both positive and negative goodwill arising on the consolidation of Group In December 2012, BMWAG, Munich, and Pierer Industrie AG, Wels, reached agreement with regard to the sale of Husqvarna Motorcycles S.r.l., Cassinetta di Biandronno, and Husqvarna Motorcycles NA, LLC, Wilmington, DE, to Pierer Industrie AG, Wels. Following approval of the transaction by the Austrian Merger Control Authorities, the Husqvarna Group was sold on 6 March 2013 and is therefore no longer included in the group reporting entity. A gain of € 4.8 million arising on deconsolidation of the Husqvarna Group is reported in other operating income within the Motorcycles segment.
companies prior to 31 December 1994. In previous years, revenue reserves were reported in the Consolidated Statement of Changes in Equity separately for pension obligations and for other revenue reserves.
Revenue reserves increased during the six-month period to stand at € 30,261 million at 30 June 2013 (31 December 2012: € 28,340 million). The opening balance of revenue reserves increased at 1 January 2013 by € 204 million as a result of the adoption of revised IAS 19. * In addition, they were increased in the first half of 2013 by the net profit for the period attributable to shareholders of BMWAG amounting to € 2,693 million (31 December 2012: € 5,096 million) and reduced by the payment of dividends on common stock (€ 1,505 million) and preferred stock (€ 135 million) for the financial year 2012 by BMWAG. Revenue reserves increased by € 664 million as a result of value adjustments recognised on the net liability for defined benefit pension plans (net of deferred tax recognised directly in equity). * Further information is provided in note 3.
Accumulated other equity Accumulated other equity comprises all amounts recognised directly in equity resulting from the translation of the financial statements of foreign operations, the effects of recognising changes in the fair value of derivative financial instruments and marketable securities directly in equity and the related deferred taxes recognised directly in equity.
Equity attributable to minority interests amounted to € 158 million (31 December 2012: € 107 million). This includes a minority interest of € 11 million in subsidiaries' results for the period (31 December 2012: € 26 million).
Other provisions, at € 6,667 million (31 December 2012* € 6,687 million) primarily include employee and socialrelated obligations as well as obligations for ongoing operational expenses.
Income tax liabilities totalling € 1,225 million (31 December 2012: € 1,482 million) include obligations amounting to € 788 million (31 December 2012: € 806 million) which are expected to be settled after more than twelve months. Some of the liabilities may be settled earlier than this depending on the timing of proceedings.
Current other provisions at 30 June 2013 amounted to € 3,020 million (31 December 2012* : € 3,246 million).
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Current tax liabilities comprise € 218 million (31 December 2012: € 438 million) for taxes payable and € 1,007 million (31 December 2012: € 1,044 million) for tax provisions.
Financial liabilities include all obligations of the BMW Group relating to financing activities. Financial liabilities comprise the following:
:
| in € million | 30.6.2013 | 31.12.2012 |
|---|---|---|
| Bonds | 30,262 | 29,852 |
| Liabilities to banks | 9,386 | 9,484 |
| Liabilities from customer deposits (banking) | 13,258 | 13,018 |
| Commercial paper | 3,210 | 4,577 |
| Asset backed financing transactions | 10,627 | 9,411 |
| Derivative instruments | 1,595 | 1,790 |
| Other | 1,744 | 1,375 |
| Financial liabilities | 70,082 | 69,507 |
| thereof non-current | 40,707 | 39,095 |
| thereof current | 29,375 | 30,412 |
Other liabilities comprise the following items:
| in € million | 30.6.2013 | 31.12.2012 |
|---|---|---|
| Other taxes | 690 | 713 |
| Social security | 82 | 76 |
| Advance payments from customers | 522 | 668 |
| Deposits received | 414 | 466 |
| Payables to subsidiaries | 87 | 236 |
| Payables to other companies in which an investment is held | 103 | 1 |
| Deferred income | 4,850 | 4,512 |
| Other | 3,849 | 3,524 |
| Other liabilities | 10,597 | 10,196 |
| thereof non-current | 3,435 | 3,404 |
| thereof current | 7,162 | 6,792 |
60 Other Information
The fair values shown are computed using market information available at the balance sheet date, on the basis of prices quoted by the contract partners or using
appropriate measurement methods e.g. discounted cash flow models. In the latter case, amounts were discounted at 30 June 2013 on the basis of the following interest rates:
| ISO Code in % |
EUR | USD | GBP | JPY |
|---|---|---|---|---|
| Interest rate for six months | 0.16 | 0.22 | 0.51 | 0.15 |
| Interest rate for one year | 0.22 | 0.26 | 0.54 | 0.20 |
| Interest rate for five years | 1.26 | 1.61 | 1.59 | 0.50 |
| Interest rate for ten years | 2.08 | 2.82 | 2.64 | 1.04 |
The interest rates derived from interest-rate structures are adjusted, where necessary, to take account of the credit quality and risk of the underlying financial instrument.
Derivative financial instruments are measured at their fair value. The fair values of derivative financial instruments are determined using measurement models, as a consequence of which there is a risk that the amounts calculated could differ from realisable market prices on disposal. Observable financial market price spreads (e. g. for liquidity risks) are taken into account in the measurement of derivative financial instruments. The methodology for collating data used in the fair values computation model was refined during the second quarter 2013, particularly in terms of the way interest rate curves are employed and the use of additional market data (tenor and currency basis spreads). This helps to minimise differences between the carrying amounts of the instruments and the amounts that can be realised on the financial markets on the disposal of those instruments. In addition, the Group's own default risk and that of counterparties is taken into account in the form of credit default swap (CDS) contracts which have appropriate terms and which can be observed on the market.
Financial instruments measured at fair value are allocated to different measurement levels in accordance with IFRS 7. This includes financial instruments that are
The following table shows the amounts allocated to each measurement level at the end of the reporting period:
| 30 June 2013 | Level hierarchy in accordance with IFRS 7 | ||||
|---|---|---|---|---|---|
| in € million | Level 1 | Level 2 | Level 3 | ||
| Marketable securities, investment fund shares and collateral assets – available-for-sale | 3,260 | – | – | ||
| Other investments – available-for-sale | 322 | – | – | ||
| Derivative instruments (assets) | |||||
| Cash flow hedges | – | 1,264 | – | ||
| Fair value hedges | – | 826 | – | ||
| Other derivative instruments | – | 771 | – | ||
| Derivative instruments (liabilities) | |||||
| Cash flow hedges | – | 529 | – | ||
| Fair value hedges | – | 523 | – | ||
| Other derivative instruments | – | 543 | – |
Notes to the Group Financial Statement to 30 June 2013 Other disclosures
| 31 December 2012 in € million |
Level 1 | Level hierarchy in accordance with IFRS 7 Level 2 |
Level 3 |
|---|---|---|---|
| Marketable securities, investment fund shares and collateral assets – available-for-sale | 2,812 | – | – |
| Other investments – available-for-sale | 391 | – | – |
| Derivative instruments (assets) | |||
| Cash flow hedges | – | 925 | – |
| Fair value hedges | – | 1,457 | – |
| Other derivative instruments | – | 610 | – |
| Derivative instruments (liabilities) | |||
| Cash flow hedges | – | 701 | – |
| Fair value hedges | – | 320 | – |
| Other derivative instruments | – | 769 | – |
As in the previous year's Group Financial Statements, there were no significant reclassifications within the level hierarchy during the first half of 2013.
In the case of financial instruments held by BMW Group which are not measured at fair value, the carrying amounts of such instruments correspond more or less to fair values. The following items are the main exceptions to this general rule:
| in € million | Fair value | 30.6.2013 Carrying amount |
Fair value | 31.12.2012 Carrying amount |
|---|---|---|---|---|
| Loans and receivables – Receivables from sales financing | 54,880 | 53,323 | 54,374 | 52,914 |
| Other liabilities – Bonds | 30,742* | 30,262 | 29,966 | 29,852 |
* Optimised system-based fair value measurement with effect from first quarter 2013.
In accordance with IAS 24 (Related Party Disclosures), related individuals or entities which have the ability to control the BMW Group or which are controlled by the BMW Group, must be disclosed unless such parties are not already included in the Group Financial Statements as consolidated companies. Control is defined as ownership of more than one half of the voting power of BMWAG or the power to direct, by statute or agreement, the financial and operating policies of the management of the Group.
In addition, the disclosure requirements of IAS 24 also cover transactions with associated companies, joint ventures and individuals that have the ability to exercise significant influence over the financial and operating policies of the BMW Group. This also includes close relatives and intermediary entities. Significant influence over the financial and operating policies of the BMW Group is presumed when a party holds 20% or more of the voting power of BMWAG. In addition, the requirements contained in IAS 24 relating to key management personnel and close members of their families or intermediary entities are also applied. In the case of the BMW Group, this applies to members of the Board of Management and Supervisory Board.
In the first half of 2013, the disclosure requirements contained in IAS 24 affect the BMW Group with regard to business relationships with non-consolidated subsidiaries, joint ventures and associated companies as well as with members of the Board of Management and Supervisory Board of BMWAG.
The BMW Group maintains normal business relationships with non-consolidated subsidiaries. Transactions with these companies are small in scale, arise in the normal course of business and are conducted on the basis of arm's length principles.
Transactions of BMW Group companies with the joint venture, BMW Brilliance Automotive Ltd., Shenyang, all arise in the normal course of business and are conducted on the basis of arm's length principles. Group companies sold goods and services to BMW Brilliance Automotive Ltd., Shenyang, during the first two quarters for an amount of € 1,716 million (2012: € 1,402 million), of which € 895 million (2012: € 754 million) was recorded in the second quarter. At 30 June 2013, receivables of Group companies from BMW Brilliance Automotive Ltd., Shenyang, totalled € 636 million (31 December 2012: € 608 million). Payables of Group companies to BMW Brilliance Automotive Ltd., Shenyang, at
30 June 2013 amounted to € 101 million (31 December 2012: € – million). Group companies received goods and services from BMW Brilliance Automotive Ltd., Shenyang, during the first half of the year for an amount of € 8 million (2012: € 6 million), of which € 4 million (2012: € 3 million) was recorded in the second quarter.
All relationships of BMW Group entities with the joint ventures SGL Automotive Carbon Fibers Verwaltungs GmbH, Munich, SGL Automotive Carbon Fibers GmbH & Co. KG, Munich, and SGL Automotive Carbon Fibers LLC, Dover, DE, arise in the normal course of business. All transactions with these entities were conducted on the basis of arm's length principles. At 30 June 2013 receivables of Group companies for loans disbursed to the joint ventures amounted to € 84 million (31 December 2012: € 68 million). Interest income earned on these loans in the first half of 2013 amounted to € 1 million (2012: € 1 million). Goods and services received by Group companies from the joint ventures during the period under report totalled € 12 million (2012: € 3 million), of which € 7 million (2012: € 2 million) was recorded in the second quarter. At 30 June 2013 payables of Group companies to the joint ventures amounted to € 2 million (31 December 2012: € 1 million).
All relationships of BMW Group entities with the joint ventures DriveNow GmbH & Co. KG, Munich, and DriveNow Verwaltungs GmbH, Munich, are conducted on the basis of arm's length principles. Transactions with these entities arise in the normal course of business and are small in scale.
Business transactions between BMW Group entities and associated companies all arise in the normal course of business and are conducted on the basis of arm's length principles.
Stefan Quandt is a shareholder and Deputy Chairman of the Supervisory Board of BMWAG. He is also the sole shareholder and Chairman of the Supervisory Board of DELTON AG, Bad Homburg v.d.H., which, via its subsidiaries, performed logistic-related services for the BMW Group during the first half of 2013. In addition, companies of the DELTON Group used vehicles provided by the BMW Group, mostly in the form of leasing contracts. Stefan Quandt is also the majority shareholder of Solarwatt GmbH, Dresden. During the second quarter 2013, BMWAG and Solarwatt GmbH, Dresden, entered into cooperation arrangements within the field of electromobility. The focus is on providing complete photovoltaic solutions for rooftop systems and carports to BMW i customers. During the first half of 2013 Solarwatt GmbH leased vehicles from the BMW Group. The service, cooperation and lease contracts referred to above are not material for the BMW Group. They all arise in the normal course of business and are conducted on the basis of arm's length principles.
Susanne Klatten is a shareholder and member of the Supervisory Board of BMWAG and also a shareholder and Deputy Chairman of the Supervisory Board of Altana AG, Wesel. Altana AG, Wesel, used vehicles provided by the BMW Group during the first half of 2013, mostly in the form of lease contracts. These contracts are not material for the BMW Group, arise in the course of ordinary activities and are made, without exception, on the basis of arm's length principles.
Apart from the transactions referred to above, companies of the BMW Group did not enter into any significant contracts with members of the Board of Management or Supervisory Board of BMWAG. The same applies to close members of the families of those persons.
BMW Trust e.V., Munich, administers assets on a trustee basis to secure obligations relating to pensions and preretirement part-time work arrangements in Germany and is therefore a related party of the BMW Group in accordance with IAS 24. This entity, which is a registered association (eingetragener Verein) under German law, does not have any assets of its own. It did not have any income or expenses during the period under report. BMWAG bears expenses on a minor scale and renders services on behalf of BMW Trust e.V., Munich.
For information on the basis used for identifying and assessing the performance of reportable segments along internal management lines, reference is made to the Group Financial Statements of BMWAG for the year ended 31 December 2012. No changes have been made
either in the accounting policies applied or in the basis used for identifying reportable segments as compared to 31 December 2012.
Segment information by operating segment for the second quarter is as follows:
| Motorcycles | |||
|---|---|---|---|
| 2013 | 2012* | 2013 | 2012 |
| 14,429 | 14,365 | 473 | 409 |
| 3,772 | 3,001 | 2 | 1 |
| 18,201 | 17,366 | 475 | 410 |
| 1,756 | 2,018 | 46 | 48 |
| 1,152 | 943 | 15 | 28 |
| 898 | 861 | 16 | 13 |
| Automotive |
Segment information by operating segment for the six-month period is as follows:
| Automotive | Motorcycles | |||
|---|---|---|---|---|
| in € million | 2013 | 2012* | 2013 | 2012 |
| External revenues | 27,093 | 27,812 | 905 | 850 |
| Inter-segment revenues | 7,015 | 5,713 | 6 | 8 |
| Total revenues | 34,108 | 33,525 | 911 | 858 |
| Segment result | 3,338 | 3,898 | 97 | 85 |
| Capital expenditure on non-current assets | 2,395 | 1,577 | 24 | 39 |
| Depreciation and amortisation on non-current assets | 1,777 | 1,715 | 34 | 26 |
| Automotive | Motorcycles | ||||
|---|---|---|---|---|---|
| in € million | 30.6.2013 | 31.12.2012* | 30.6.2013 | 31.12.2012 | |
| Segment assets | 9,981 | 10,991 | 475 | 405 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
| Automotive Motorcycles |
Financial Services |
Other Entities | Reconciliation to Group figures |
Group | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2012* 2013 2013 2012 |
2013 | 2012 | 2013 | 2012* | 2013 | 2012 | 2013 | 2012* | |
| 14,365 473 409 |
4,649 | 4,427 | 1 | 1 | – | – | 19,552 | 19,202 | External revenues |
| 1 | 409 | 439 | 1 | 1 | –4,184 | –3,442 | – | – | Inter-segment revenues |
| 410 | 5,058 | 4,866 | 2 | 2 | –4,184 | –3,442 | 19,552 | 19,202 | Total revenues |
| 48 | 467 | 431 | 89 | –12 | –326 | –509 | 2,032 | 1,976 | Segment result |
| 4,530 | 3,916 | – | – | –1,114 | –217 | 4,583 | 4,670 | Capital expenditure on non-current assets | |
| 28 13 |
1,710 | 1,458 | – | – | –811 | 126 | 1,813 | 2,458 | Depreciation and amortisation on non-current assets |
| Automotive Motorcycles |
Financial Services |
Other Entities | Reconciliation to Group figures |
Group | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2012* 2012 2013 |
2013 | 2012 | 2013 | 2012* | 2013 | 2012 | 2013 | 2012* | |
| 27,812 905 850 |
9,099 | 8,832 | 1 | 1 | – | – | 37,098 | 37,495 | External revenues |
| 5,713 6 8 |
789 | 834 | 2 | 2 | –7,812 | –6,557 | – | – | Inter-segment revenues |
| 858 | 9,888 | 9,666 | 3 | 3 | –7,812 | –6,557 | 37,098 | 37,495 | Total revenues |
| 85 | 916 | 865 | 156 | –31 | –472 | –761 | 4,035 | 4,056 | Segment result |
| 8,681 | 7,483 | – | – | –1,245 | –1,012 | 9,855 | 8,087 | Capital expenditure on non-current assets | |
| 39 26 |
3,375 | 3,007 | – | – | –806 | –504 | 4,380 | 4,244 | Depreciation and amortisation on non-current assets |
| Automotive Motorcycles |
Financial Services |
Other Entities | Reconciliation to Group figures |
Group | |
|---|---|---|---|---|---|
| 31.12.2012* in € million 30.6.2013 30.6.2013 31.12.2012 |
31.12.2012* 30.6.2013 |
30.6.2013 31.12.2012 |
31.12.2012* 30.6.2013 |
31.12.2012* 30.6.2013 |
|
| Segment assets 9,981 10,991 475 405 |
8,370 7,633 |
48,450 50,685 |
66,875 62,121 |
134,151 131,835 |
Segment assets |
| in € million | 2nd quarter 2013 |
2nd quarter 2012* |
|---|---|---|
| Reconciliation of segment result | ||
| Total for reportable segments | 2,358 | 2,485 |
| Financial result of Automotive segment and Motorcycles segment | –109 | –271 |
| Elimination of inter-segment items | –217 | –238 |
| Group profit before tax | 2,032 | 1,976 |
| Reconciliation of capital expenditure on non-current assets | ||
| Total for reportable segments | 5,697 | 4,887 |
| Elimination of inter-segment items | –1,114 | –217 |
| Total Group capital expenditure on non-current assets | 4,583 | 4,670 |
| Reconciliation of depreciation and amortisation on non-current assets | ||
| Total for reportable segments | 2,624 | 2,332 |
| Elimination of inter-segment items | –811 | 126 |
| Total Group depreciation and amortisation on non-current assets | 1,813 | 2,458 |
Segment figures for the six-month period can be reconciled to the corresponding Group figures as follows:
| in € million | 1January to 30 June 2013 |
1January to 30 June 2012* |
|---|---|---|
| Reconciliation of segment result | ||
| Total for reportable segments | 4,507 | 4,817 |
| Financial result of Automotive segment and Motorcycles segment | –176 | –329 |
| Elimination of inter-segment items | –296 | –432 |
| Group profit before tax | 4,035 | 4,056 |
| Reconciliation of capital expenditure on non-current assets | ||
| Total for reportable segments | 11,100 | 9,099 |
| Elimination of inter-segment items | –1,245 | –1,012 |
| Total Group capital expenditure on non-current assets | 9,855 | 8,087 |
| Reconciliation of depreciation and amortisation on non-current assets | ||
| Total for reportable segments | 5,186 | 4,748 |
| Elimination of inter-segment items | –806 | –504 |
| Total Group depreciation and amortisation on non-current assets | 4,380 | 4,244 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
2 BMW Group in figures
23 Outlook
| in € million | 30.6.2013 | 31.12.2012* |
|---|---|---|
| Reconciliation of segment assets | ||
| Total for reportable segments | 67,276 | 69,714 |
| Non-operating assets – Other Entities segment | 6,200 | 6,065 |
| Operating liabilities – Financial Services segment | 82,562 | 81,064 |
| Interest-bearing assets – Automotive and Motorcycles segments | 35,656 | 36,321 |
| Liabilities of Automotive and Motorcycles segments not subject to interest | 23,315 | 21,943 |
| Elimination of inter-segment items | –80,858 | –83,272 |
| Total Group assets | 134,151 | 131,835 |
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 3.
Munich, 23 July 2013
Bayerische Motoren Werke Aktiengesellschaft
The Board of Management
Dr.-Ing. Dr.-Ing. E.h. Norbert Reithofer
Milagros Caiña Carreiro-Andree Dr.-Ing. Herbert Diess
Dr.-Ing. Klaus Draeger Dr. Friedrich Eichiner
Harald Krüger Dr. Ian Robertson (HonDSc)
Peter Schwarzenbauer
"To the best of our knowledge, and in accordance with the applicable principles for interim financial reporting, the Interim Group Financial Statements give a true and fair view of the net assets, financial position and results of operation of the Group, and the Interim Group Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year."
Munich, 23 July 2013
The Board of Management
Dr.-Ing. Dr.-Ing. E.h. Norbert Reithofer
Milagros Caiña Carreiro-Andree Dr.-Ing. Herbert Diess
Dr.-Ing. Klaus Draeger Dr. Friedrich Eichiner
Harald Krüger Dr. Ian Robertson (HonDSc)
Peter Schwarzenbauer
To Bayerische Motoren Werke Aktiengesellschaft, Munich We have reviewed the condensed interim consolidated financial statements of Bayerische Motoren Werke Aktiengesellschaft, Munich – comprising the income statement for group and the statement of comprehensive income for group, the balance sheet for group, the condensed cash flow statement for group, the group statement of changes in equity and selected explanatory notes, together with the interim group management report of Bayerische Motoren Werke Aktiengesellschaft, Munich, for the period from 1 January to 30 June 2013, that are part of the semi-annual financial report according to §37w WpHG ("Wertpapierhandelsgesetz": "German Securities Trading Act"). The preparation of the condensed interim consolidated financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed interim consolidated financial statements and on the interim group management report based on our review.
We performed our review of the condensed interim consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through
critical evaluation, with a certain level of assurance, that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Munich, 31 July 2013
Wirtschaftsprüfungsgesellschaft
| Pastor | Huber-Straßer |
|---|---|
| Wirtschaftsprüfer | Wirtschaftsprüferin |
Financial Calendar
61 Contacts
| Quarterly Report to 30 September 2013 | 5 November 2013 |
|---|---|
| Annual Report 2013 | 19 March 2014 |
| Annual Accounts Press Conference | 19 March 2014 |
| Analyst and Investor Conference | 20 March 2014 |
| Quarterly Report to 31 March 2014 | 6 May 2014 |
| Annual General Meeting | 15 May 2014 |
| Quarterly Report to 30 June 2014 | 5 August 2014 |
| Quarterly Report to 30 September 2014 | 4 November 2014 |
| Business and Finance Press | |
|---|---|
| Telephone | +49 89 382-2 45 44 |
| +49 89 382-2 41 18 | |
| Fax | +49 89 382-2 44 18 |
| [email protected] | |
| Investor Relations | |
| Telephone | +49 89 382-2 42 72 |
| +49 89 382-2 53 87 | |
| Fax | +49 89 382-1 46 61 |
| [email protected] | |
Further information about the BMW Group is available online at www.bmwgroup.com. Investor Relations information is available directly at www.bmwgroup.com/ir. Information about the various BMW Group brands is available at www.bmw.com, www.mini.com and www.rolls-roycemotorcars.com.
Published by Bayerische Motoren Werke Aktiengesellschaft 80788 Munich Germany Tel. +49 89 382-0
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