Annual / Quarterly Financial Statement • Dec 31, 2011
Annual / Quarterly Financial Statement
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Financial Year 2011
in figures
| 2 BMW AG in figures |
|
|---|---|
| ------------------------ | -- |
4 Balance Sheet at 31 December
| 2011 | 2010 | Change in % |
||
|---|---|---|---|---|
| Revenues | € million | 55,007 | 45,773 | 20.2 |
| Export ratio | % | 77.3 | 76.7 | |
| Production | ||||
| Automobiles | units | 1,738,160 | 1,481,253 | 17.3 |
| Motorcycles | units | 110,360 | 99,236 | 11.2 |
| Sales volume | ||||
| Automobiles | units | 1,723,637 | 1,460,923 | 18.0 |
| Motorcycles | units | 110,145 | 97,586 | 12.9 |
| Capital expenditure | € million | 2,032 | 1,582 | 28.4 |
| Depreciation and amortisation | € million | 1,578 | 1,540 | 2.5 |
| Workforce at the end of year | 71,630 | 69,518 | 3.0 | |
| Tangible, intangible and investment assets | € million | 9,6631 | 8,2732 | 16.8 |
| Current assets, prepayments and surplus of pension and similar plan assets over liabilities |
€ million | 17,845 | 16,073 | 11.0 |
| Subscribed capital | € million | 655 | 655 | – |
| Reserves | € million | 6,059 | 5,581 | 8.6 |
| Equity | € million | 8,222 | 7,088 | 16.0 |
| as % of tangible, intangible and investment assets | % | 85.1 | 85.7 | |
| Balance sheet total | € million | 27,508 | 24,346 | 13.0 |
| Cost of materials | € million | 39,324 | 32,875 | 19.6 |
| Personnel costs | € million | 5,758 | 5,428 | 6.1 |
| Taxes | € million | 2,096 | 1,106 | 89.5 |
| Net profit | € million | 1,970 | 1,506 | 30.8 |
| Dividend | € million | 1,5083 | 852 | 77.0 |
| per share of common stock with a par value of €1 each | € | 2.303 | 1.30 | |
| per share of preferred stock with a par value of €1 each | € | 2.323 | 1.32 |
1 Including property, plant and equipment transferred in conjunction with merger with BMW Maschinenfabrik Spandau GmbH, Berlin
2 Including property, plant and equipment transferred in conjunction with merger with BMW Ingenieur-Zentrum GmbH + Co oHG, Dingolfing
3 Proposed by the Board of Management
3 BMW AG Financial Statements
The BMWAG Financial Statements and Management Report for the financial year 2011 will be submitted to the operator of the electronic version of the German Federal Gazette and can be obtained via the Company Register website. The Management Report of BMWAG is combined with the Group Management Report and published in the BMW Group Annual Report 2011.
4
Balance Sheet at 31 Dezember
| in € million | Notes | 2011 | 2010 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 1 | 161 | 141 |
| Property, plant and equipment | 1 | 6,679 | 6,257 |
| Investments | 2 | 2,823 | 1,875 |
| Tangible, intangible and investment assets | 9,663 | 8,273 | |
| Inventories | 3 | 3,755 | 3,259 |
| Trade receivables | 4 | 729 | 667 |
| Receivables from subsidiaries | 4 | 5,827 | 6,448 |
| Other receivables and other assets | 4 | 1,479 | 1,122 |
| Marketable securities | 5 | 3,028 | 2,556 |
| Cash and cash equivalents | 6 | 2,864 | 1,574 |
| Current assets | 17,682 | 15,626 | |
| Prepayments | 120 | 106 | |
| Surplus of pension and similar plan assets over liabilities | 7 | 43 | 341 |
| Total assets | 27,508 | 24,346 | |
| Equity and liabilities | |||
| Subscribed capital | 8 | 655 | 655 |
| Capital reserves | 8 | 2,035 | 2,019 |
| Revenue reserves | 9 | 4,024 | 3,562 |
| Unappropriated profit available for distribution | 1,508 | 852 | |
| Equity | 8,222 | 7,088 | |
| Registered profit-sharing certificates | 10 | 32 | 33 |
| Pension provisions | 84 | 24 | |
| Other provisions | 7,651 | 6,613 | |
| Provisions | 11 | 7,735 | 6,637 |
| Liabilities to banks | 911 | 512 | |
| Trade payables | 2,940 | 2,384 | |
| Liabilities to subsidiaries | 6,923 | 7,366 | |
| Other liabilities | 741 | 322 | |
| Liabilities | 12 | 11,515 | 10,584 |
| Deferred income | 4 | 4 | |
| Total equity and liabilities | 27,508 | 24,346 |
5
Income Statement
| in € million | Notes | 2011 | 2010 |
|---|---|---|---|
| Revenues | 13 | 55,007 | 45,773 |
| Cost of sales | – 43,320 | – 37,125 | |
| Gross profit | 11,687 | 8,648 | |
| Sales costs | – 3,381 | – 2,783 | |
| Administrative costs | –1,410 | –1,345 | |
| Research and development costs | – 3,045 | – 2,537 | |
| Other operating income and expenses |
14 15 |
670 | 567 |
| Result on investments | 16 | 181 | 152 |
| Financial result | 17 | – 665 | – 365 |
| Profit from ordinary activities | 4,037 | 2,337 | |
| Extraordinary income | 18 | 29 | 314 |
| Extraordinary expenses | 18 | – | – 39 |
| Income taxes | 19 | – 2,073 | –1,088 |
| Other taxes | – 23 | –18 | |
| Net profit | 1,970 | 1,506 | |
| Transfer to revenue reserves | 20 | – 462 | – 654 |
| Unappropriated profit available for distribution | 1,508 | 852 |
6
Notes to the Financial Statements Accounting Policies
The financial statements of BMWAG have been drawn up in accordance with the accounting provisions contained in the German Commercial Code (HGB) and law applicable to stock corporations. Figures are presented in millions of euros (€ million) unless otherwise stated.
In order to improve clarity, individual items are aggregated in the balance sheet and income statement and presented separately in the notes to the financial statements.
Purchased intangible assets are valued at acquisition cost and depreciated over their estimated useful lives using the straight-line method. Internally generated intangible assets are not capitalised.
Property, plant and equipment are stated at acquisition or at manufacturing cost, less accumulated depreciation and impairment losses. Impairment losses are recorded when the decline in value of an asset is considered to be of a lasting nature. When the reasons for impairment no longer exist, impairment losses previously recorded are reversed, at a maximum up to their amortised cost. Property, plant and equipment are generally depreciated straight-line. The reducing balance method is also applied in specific cases, whereby a switch is made to straight-line depreciation as soon as this gives rise to a higher depreciation expense. Items acquired during the year are depreciated on a time-apportioned basis. Assets with an acquisition or manufacturing cost of up to €150 are recognised directly as an expense in the year of purchase/construction. Assets with an acquisition or manufacturing cost of between €150 and €1,000 are depreciated/amortised using the straight-line method over a period of five years.
Factory and office buildings and distribution facilities which form an inseparable part of such buildings are depreciated over 8 to 33 years, residential buildings over 25 to 50 years, technical plant and machinery over 4 to 21 years and other facilities, factory and office equipment mainly over five years. For machinery used in multiple-shift operations, depreciation rates are increased to account for the additional utilisation.
Investments in subsidiaries and participations are stated at cost or, if lower, at their fair value. When the reasons for impairment no longer exist, impairment losses previously recorded are reversed, at a maximum up to the level of original cost. Loans which bear no or a belowmarket rate of interest are discounted to their present value.
The composition of and changes in long-lived assets are shown in the Analysis of Changes in Tangible, Intangible and Investment Assets.
Inventories of raw materials, supplies and goods for resale are stated at the lower of cost and net realisable value. All direct material and production costs and an appropriate proportion of material and production overheads (including production-related depreciation) are taken into account in the measurement of unfinished and finished goods and leased-out products at production cost. Write-downs are made to cover risks arising from slow-moving items or reduced saleability.
Receivables and other assets are stated at the lower of their nominal value or net realisable value.
Investments in marketable securities are measured at cost or, if lower, at their fair value at the end of the reporting period. Fair value corresponds to the market price.
In order to meet obligations relating to pensions and pre-retirement part-time working arrangements, certain assets are managed on a trustee basis by BMW Trust e.V., Munich, in conjunction with Contractual Trust Arrangements (CTA). These assets are measured at their fair value which is offset against the related obligations. A provision is recognised when obligations exceed assets. When assets exceed obligations, the surplus is reported in the balance sheet as "Surplus of pension and similar plan assets over liabilities".
Pension obligations are measured in accordance with the projected unit credit method. The calculation is based on an independent actuarial valuation which takes into account all relevant biometric factors. For reasons of consistency, provisions for obligations relating to long-service awards and pre-retirement part-time working arrangements are measured using the same methodology.
Other provisions are recognised to take account of all identified risks. Provisions are measured at their expected settlement amount. As part of the process of measuring the expected settlement amount, non-current provisions are discounted on the basis of the average interest rate relevant for their remaining terms. Estimations used to measure warranty provisions were refined on the basis of current information. The positive impact of this change in estimation amounted €147 million and has been recognised in other operating income in 2011.
Liabilities are stated at their expected settlement amount at the balance sheet date.
7
Foreign currency receivables and payables are translated using the mid-spot exchange rate applicable at transaction date. Gains arising on the translation of period-end foreign currency receivables and payables with a remaining term of less than one year are recognised with income statement effect. Unrealised losses resulting from changes in exchange rates are recognised by restating the foreign currency amount in the balance sheet to the closing rate. Financial assets and financial liabilities denominated in a foreign currency are generally hedged.
The Company uses derivative financial instruments to hedge interest rate, currency and commodity price risks arising in conjunction with operating activities. Financing requirements resulting from operating activities are also hedged. Where there is a direct hedging relationship, the derivative financial instrument and the hedged item are accounted for as a valuation unit. If there is no hedging relationship, or if the hedging relationship is deemed to be insufficient, pending losses are recognised with income statement effect.
Deferred taxes are calculated for temporary differences between the tax base and accounting carrying amounts of assets, liabilities and deferred/prepaid items. Deferred tax assets and liabilities are measured on the basis of a combined income tax rate of 30.5 % relevant for the BMWAG tax group. This combined rate covers corporation tax, municipal trade tax and solidarity surcharge. In the case of temporary differences arising on assets, liabilities and deferred/prepaid items of partnership entities, deferred taxes are measured on the basis of an income tax rate of 15.83 % which covers corporation tax and solidarity surcharge. In the year under report, the BMWAG tax group has a surplus of deferred tax assets over deferred tax liabilities, mainly as a result of temporary differences between the tax base and accounting carrying amounts of provisions for pensions and similar obligations. BMWAG, as head of the German tax group, has elected not to recognise the surplus amount of deferred tax assets.
Share-based remuneration programmes which are expected to be settled in shares are measured at their fair value at grant date. The related expense is recognised in the income statement (as personnel expense) over the vesting period, with a contra (credit) entry recorded against capital reserves. Share-based programmes expected to be settled in cash are revalued to their fair value at each balance sheet date between the grant date and the settlement date and on the settlement date itself. The expense for such programmes is recognised in the income statement (as personnel expense) over the vesting period of the entitlements and in the balance sheet as a provision. The Board of Management sharebased remuneration programme entitles BMWAG to elect whether to settle its obligations in cash or with shares of BMWAG common stock. Following the decision to settle in cash, the Board of Management sharebased programme is accounted for as a cash-settled share-based transaction. Further information regarding share-based programmes is provided in note 20 to the BMW Group Financial Statements 2011.
Notes to the Financial Statements Notes to the Balance Sheet
Additions to property, plant and equipment include assets transferred in conjunction with the merger of BMW Maschinenfabrik Spandau GmbH, Berlin, with BMWAG, Munich.
1
The carrying amount of investments was increased on the one hand by a transfer to capital reserves made at the level of BMW Leasing GmbH, Munich, amounting to €625 million and reduced on the other by the derecognition of the investment in BMW Vertriebs GmbH & Co. oHG, Dingolfing, following that entity's automatic merger with BMW Leasing GmbH and the subsequent
merger of that entity with BMW Bank GmbH, Munich, with retrospective effect from 1 January 2011. In addition, shares in SGL Carbon SE, Wiesbaden, were purchased during the financial year 2011 at an acquisition cost of €464 million. Since there was no objective evidence of a lasting loss in value, the carrying amount of the investment was not written down to its lower market value (€420 million) at the end of the reporting period.
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Raw materials and supplies | 548 | 482 |
| Work in progress, unbilled contracts | 290 | 224 |
| Finished goods and goods for resale | 2,773 | 2,390 |
| Leased products | 144 | 163 |
| 3,755 | 3,259 |
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Trade receivables | 729 | 667 |
| Receivables from subsidiaries | 5,827 | 6,448 |
| Other receivables and other assets | ||
| Receivables from other companies in which an investment is held | 366 | 243 |
| Other assets thereof due later than one year € 217 million (2010: € 235 million) |
1,113 | 879 |
| 1,479 | 1,122 | |
| 8,035 | 8,237 |
Receivables from subsidiaries relate to trade and financing receivables.
Unless stated otherwise, receivables and other assets are due within one year.
Other assets include mainly tax receivables.
Marketable securities comprise mainly money market funds and 100 % of the shares in a special investment
fund. No restrictions are attached to the daily redemption of the special investment fund.
The following table shows the acquisition cost and fair value of the different classes of items included in the special investment fund at 31 December 2011:
| Acquisition cost | Fair value | |||
|---|---|---|---|---|
| in € million | 31.12. 2011 | 31.12. 2010 | 31.12. 2011 | 31.12. 2010 |
| Fixed-income securities | 1,818 | 1,139 | 1,799 | 1,132 |
| Derivative instruments | – | – | – | – |
| Other marketable securities | 2 | 7 | 2 | 7 |
| Receivables and payables | 35 | 10 | 35 | 10 |
| Cash and cash equivalents | 19 | 10 | 19 | 10 |
| 1,874 | 1,166 | 1,855 | 1,159 |
The acquisition cost for the shares in the special investment fund totalled €1,767 million.
9
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Cash on hand, cash at bank of which with affiliated companies € 19 million (2010: € 77 million) |
2,864 | 1,574 |
and a receivable resulting from a so-called "Capitalisation Transaction" (Kapitalisierungsgeschäft).
The surplus arising on the offset of assets and liabilities relating to pre-retirement part-time work arrangements can be analysed as follows:
| in € million | 31. 12. 2011 | 31.12. 2010 |
|---|---|---|
| Acquisition cost of assets held to cover obligations relating to pre-retirement part-time work arrangements | 336 | 272 |
| Fair value of assets held to cover obligations relating to pre-retirement part-time work arrangements | 359 | 307 |
| Obligations relating to pre-retirement part-time work arrangements | 322 | 251 |
| Surplus arising on offset of assets and liabilities | 37 | 56 |
A reconciliation of the surplus (€6 million) arising on the offset of assets and liabilities relating to pension obligations is shown in note 11. In total, the surplus arising on the offset of assets and liabilities amounted to €43 million.
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Subscribed capital | 655 | 655 |
| Capital reserves | 2,035 | 2,019 |
BMWAG's issued share capital of €655 million comprises 601,995,196 shares of common stock, each with a par value of €1, and 53,571,372 shares of non-voting preferred stock, each with a par value of €1. Preferred stock bears an additional dividend of €0.02 per share. All of the Company's stock is issued to bearer.
408,140 shares of preferred stock were issued to employees at a reduced price of €26.58 per share in conjunction with an employee share scheme. These shares are entitled to receive dividends with effect from the financial year 2012. 180 shares of preferred stock were bought back via the stock exchange in order to service the Company's employee share scheme.
The issued share capital increased by €0.4 million as a result of the issue to employees of 407,960 shares of non-voting preferred stock. The Authorised Capital of BMWAG amounted at the balance sheet date to €3.6 million. The Company is authorised to issue shares of nonvoting preferred stock amounting to nominal €5.0 million prior to the end of 13 May 2014. The share premium of €15.5 million arising in 2011 was transferred to capital reserves.
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Statutory reserves | 1 | 1 |
| Other revenue reserves | ||
| Balance brought forward | 3,561 | 2,500 |
| Transfer from net profit | 462 | 654 |
| Transfer in conjunction with first-time application of BilMoG | – 4,023 |
407 3,561 |
| 4,024 | 3,562 |
Revenue reserves contain a total amount of €362 million which cannot be distributed, resulting from the measurement of certain assets at their fair value.
Up to 1989, employees were entitled to subscribe to registered profit-sharing certificates in conjunction with a wealth accumulation scheme for employees. This was
replaced by the current scheme to subscribe to preferred stock. At 31 December 2011, there were 677,509 registered profit-sharing certificates (2010: 688,000 certificates).
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Pension provisions | 84 | 24 |
| Tax provisions | 1,467 | 847 |
| Other provisions | 6,184 | 5,766 |
| 7,735 | 6,637 |
The measurement of pension obligations is based, as in previous years, on the assumptions set out in the biometric tables of Prof. Dr. Klaus Heubeck (2005 G). In addition, the following assumptions are applied:
| in % | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Discount rate | 5.14 | 5.15 |
| Future salary increases | 3.35 | 3.25 |
| Future pension increases | 2.35 | 2.25 |
The discount rate used to discount pension obligations corresponds to the average market interest rate for the past seven financial years for an assumed maturity term of 15 years, as calculated and published by the Deutsche Bundesbank.
The provision for pensions can be analysed as follows:
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Acquisition cost of assets held to cover pension obligations | 4,807 | 4,710 |
| Fair value of assets held to cover pension obligations | 5,146 | 5,177 |
| Present value of defined benefit obligations | 5,224 | 4,916 |
| Provision for pensions | 84 | 24 |
| Surplus of pension and similar plan assets over liabilities | 6 | 285 |
BMWAG provides pension benefits to its employees in various forms. The majority of current employees participate in a pension plan, the benefits of which are based on the relevant final salary of the employee. The amount by which pension plan assets exceed obligations is presented in the balance sheet line "Surplus of pension and similar plan assets over liabilities".
Rules are also in place for a pension plan covered by trust assets, in which benefits are predominantly dependent on the contributions made by the Company, investment income earned and a guarantee minimum rate of interest.
BMWAG also gives employees the opportunity to participate in a voluntary remuneration conversion plan.
The expense related to the reversal of the discounting of
pension obligations, the effect of the change in the discount rate applied as well as income and expenses resulting from the measurement of assets offset against liabilities are reported as part of the financial result. All other components of pension expense are included in the relevant income statement under costs by function.
Other provisions include obligations for warranties and personnel-related expenses as well as provisions for service contract obligations, other sales-related items, litigation and liability risks, currency and commodity transactions.
Further items includes are provisions for dealer bonuses, ancillary tax-related expenses, pending losses on onerous contracts, manufacturer's liability and the collection and recycling of end-of-life vehicles.
2 BMW AG in figures
| 31 December in € million |
2011 | 2011 Remaining term of up to one year |
2011 Remaining term of more than five years |
2010 |
|---|---|---|---|---|
| Liabilities to banks | 911 | 103 | – | 512 |
| Trade payables | 2,940 | 2,939 | – | 2,384 |
| Liabilities to subsidiaries | 6,923 | 6,923 | – | 7,366 |
| Payables to entities in which a participation is held | 25 | 25 | – | 4 |
| Other liabilities | ||||
| Advance payments received on orders | 22 | 22 | – | 20 |
| Liabilities to BMW Unterstützungsverein e. V. | 4 | – | 4 | 4 |
| Sundry other liabilities | 690 | 690 | – | 294 |
| thereof for social security | (40) | (40) | (–) | (42) |
| 716 | 712 | 4 | 318 | |
| 11,515 | 10,702 | 4 | 10,584 |
Liabilities to subsidiaries comprise trade and financing liabilities.
| in € million | 31. 12. 2011 | 31. 12. 2010 |
|---|---|---|
| Guarantees for bonds issued by | ||
| BMW Finance N. V., The Hague | 17,651 | 15,311 |
| BMW US Capital, LLC, Wilmington, DE | 4,592 | 5,444 |
| BMW Australia Finance Ltd., Melbourne, Victoria | 1,409 | 1,731 |
| BMW (UK) Capital plc, Bracknell | 1,298 | 1,978 |
| BMW Japan Finance Corp., Tokyo | 342 | 398 |
| Guarantees for bonds and notes issued by | ||
| BMW Finance N. V., The Hague | 5,762 | 4,750 |
| BMW US Capital, LLC, Wilmington, DE | 1,806 | 2,448 |
| BMW Canada Inc., Whitby | 1,003 | 601 |
| BMW Malta Finance Ltd., St. Julians | 722 | 505 |
| BMW Japan Finance Corp., Tokyo | 479 | 442 |
| BMW Financial Services (South Africa) (Pty) Ltd., Pretoria | 143 | 282 |
| Guarantees on behalf of | ||
| BMW Finance N. V., The Hague | 1,300 | 1,700 |
| BMW Canada Inc., Whitby | 107 | 142 |
| BMW (UK) Capital plc, Bracknell | 72 | 548 |
| Other of which to subsidiaries € 932 million (2010: € 875 million) |
1,053 | 999 |
| Guarantees | 37,739 | 37,279 |
Based on the information available to BMWAG at the date of the preparation of the financial statements regarding the financial condition of the principal debtors, BMWAG considers that the obligations underlying the contingent liabilities shown above can be fulfilled by the relevant principal debtors. BMWAG therefore considers
| it unlikely that it will be called upon in conjunction with these contingent liabilities. |
sicherungsfonds des Bundesverbands deutscher Banken e.V.), of which BMW Bank GmbH is a member. |
|---|---|
| The maximum liability per customer is capped at 30 % | |
| BMWAG, Munich, is liable for the full extent and amount | of the relevant equity of BMW Bank GmbH. |
| of customer deposits taken in by the subsidiary, BMW | |
| Bank GmbH, Munich, instead of the Deposit Protection | The usual commercial guarantees have been given in re |
The usual commercial guarantees have been given in relation to the sale of Rover Cars and Land Rover activities.
Fund of the Association of German Banks (Einlagen-
The present value of commitments under rental and lease agreements amounts to €2,044 million, analysed by due date as follows:
| 31. 12. 2011 |
|---|
| 717 |
| 586 |
| 741 |
Of these amounts, €1,076 million relate to subsidiaries.
Purchase commitments for capital expenditure totalled €1,335 million.
As part of BMWAG's refinancing activities, some receivables have been sold to other BMW Group entities and sale-and-lease-back transactions entered into in previous years. No significant risks and rewards remain with BMWAG in conjunction with these transactions.
Transactions with related entities are all conducted on an arm's length basis.
| Nominal volume | Net fair values | ||||
|---|---|---|---|---|---|
| in € million | 31.12. 2011 | 31.12. 2010 | 31.12. 2011 | 31.12. 2010 | |
| Currency-related contracts | |||||
| Forward currency contracts | 17,566 | 15,247 | –142 | – 21 | |
| thereof positive market values | 410 | 428 | |||
| thereof negative market values | – 552 | – 449 | |||
| Currency options | 8,075 | 350 | 79 | 25 | |
| thereof positive market values | 152 | 25 | |||
| thereof negative market values | –73 | – | |||
| Cross currency swaps | 222 | – | –7 | – | |
| thereof positive market values | 1 | – | |||
| thereof negative market values | – 8 | – | |||
| 25,863 | 15,597 | – 70 | 4 | ||
| Interest rate-related instruments | |||||
| Interest swaps | 102 | 50 | –1 | – | |
| thereof negative market values | –1 | – | |||
| Purchasing-related instruments | |||||
| Commodities | 2,892 | 1,198 | – 86 | 583 | |
| thereof positive market values | 158 | 584 | |||
| thereof negative market values | – 244 | –1 |
4 Balance Sheet at 31 December
Provisions of €288 million (2010: €45 million) were recognised to cover negative market values. €174 million of option fees of incurred in conjunction with currency option contracts are included in "Other assets" and €100 million of option fees are included in "Other liabilities".
The nominal amounts of derivative financial instruments correspond to the purchase or sale amounts or to the contracted amounts of hedged items. The fair values for currency and interest-related transactions shown are measured on the basis of market information available at the balance sheet date or using appropriate measurement techniques e.g. the discounted cash flow method.
Options are measured on the basis of quoted prices or option price models using appropriate market data.
The fair values of commodity hedging contracts are determined on the basis of current reference prices as adjusted for forward premium and discount amounts. The fair values of derivative financial instruments derived for the relevant nominal values do not take account of any offsetting change in the fair value of the hedged items.
In the latter case, amounts were discounted at 31 December 2011 on the basis of the following interest rates:
| in % | EUR | USD | GBP | JPY |
|---|---|---|---|---|
| Interest rate for six months | 0.85 | 0.37 | 0.79 | 0.23 |
| Interest rate for one year | 0.78 | 0.45 | 0.77 | 0.31 |
| Interest rate for five years | 1.75 | 1.23 | 1.57 | 0.46 |
| Interest rate for ten years | 2.45 | 2.06 | 2.35 | 1.00 |
The Company is exposed to interest rate, exchange rate and commodity price risks from underlying and forecast transactions. The related risks are hedged by derivative financial instruments.
transaction are accounted for as a valuation unit. Valuation units are also created for back-to-back derivative financial instruments entered into with subsidiaries and banks. The so-called "Valuation Freeze Method (Ein frierungs methode) has been applied.
Where there is a direct hedging relationship, the derivative financial instrument and the hedged item/forecast
| Volume hedged | Amount of risk hedged | |||
|---|---|---|---|---|
| in € million | 31. 12. 2011 | 31. 12. 2010 | 31. 12. 2011 | 31. 12. 2010 |
| Currency risk hedges | ||||
| Assets | 217 | 1,622 | 8 | 18 |
| Liabilities | 516 | 153 | – | 2 |
| Executory contracts | – 332 | – 379 | 372 | 383 |
| Interest rate hedges | ||||
| Assets | 102 | 50 | 1 | – |
| Commodity hedges | ||||
| Forecast transactions | 1,911 | 924 | 192 | 1 |
The amounts disclosed for volumes hedged refer to the carrying amounts of hedged assets and liabilities, the fair value of hedged executory contracts and the nominal amount of forecast transactions. The figures disclosed for the amount of risk hedged refer to the non-recognition of a provision for onerous contracts with negative fair values.
Since the principal features of the transactions included in a valuation unit are matched, changes in fair values or cash flows generally cancel each other. Hedging is in
place for the whole term of the hedged item. Effectiveness is ensured by the use of a critical term match.
Transactions forecast with a high degree of probability relate to future raw material purchases. Changes in prices of these raw materials have an impact on manufacturing costs of BMWAG. As part of the Company's raw material management procedures, hedging strategies are therefore developed on the basis of forecast purchasing volumes.
Notes to the Financial Statements Notes to the Income Statement
| in € million | 2011 | 2010 |
|---|---|---|
| Automobiles | 46,681 | 38,680 |
| Motorcycles | 1,008 | 875 |
| Other revenues | 7,318 | 6,218 |
| 55,007 | 45,773 | |
| Germany | 12,494 | 10,653 |
| United Kingdom | 4,061 | 3,543 |
| Rest of Europe | 12,766 | 11,217 |
| North America | 10,903 | 8,894 |
| Asia | 12,042 | 8,978 |
| Other markets | 2,741 | 2,488 |
| 55,007 | 45,773 |
Other operating income totalling €2,113 million in 2011 (2010: €1,621 million) comprise mainly realised exchange gains, income from the reversal of provisions and amounts recharged to group companies. Other operating income relating to prior periods amounted to €494 million. Gains resulting from measurement of foreign currency items using closing exchange rates totalled €63 million (2010: €7 million).
Other operating expenses in 2011 amounted to €1,443 million (2010: €1,054 million) and comprise mainly realised exchange losses as well as expenses for allocations to provisions and commission expenses relating
to intragroup financing. Measurement of foreign currency items using closing exchange rates gave rise to exchange losses totalling €37 million (2010: €15 million) in 2011.
| in € million | 2011 | 2010 |
|---|---|---|
| Income from profit and loss transfer agreements | 212 | 193 |
| Expense of assuming losses under profit and loss transfer agreements | 31 181 |
41 152 |
2 BMW AG in figures 4 Balance Sheet at 31 December 5 Income Statement
29 Responsibility Statement by the Company's Legal Representatives
30 Auditor's Report 32 BMW AG Ten-year Comparison
The financing expense for pension and long-term personnel expense-related provisions relates to the net expense after offsetting income and expenses arising in conjunction with fund assets:
| in € million | 2011 | 2010 |
|---|---|---|
| Expenses from offsetting fund assets | 139 | – |
| Income from offsetting fund assets | – | 275 |
| Expense arising on reversal of discounting pension and long-term personnel expense-related provisions | 277 | 341 |
| Financing expense for pension and long-term personnel provisions | 416 | 66 |
Extraordinary income results from the merger of BMW
The expense for income taxes relates to current tax for the year under report, allocations to provisions for the tax field audit and transfer pricing risks for 2011 and prior years.
An amount of €462 million was transferred from net profit for the year to other revenue reserves.
| in € million | 2011 | 2010 |
|---|---|---|
| Purchased raw materials and goods for resale | 38,385 | 32,222 |
| Purchased services | 939 | 653 |
| 39,324 | 32,875 |
| in € million | 2011 | 2010 |
|---|---|---|
| Wages and salaries | 4,923 | 4,631 |
| Social security, pension and welfare costs | 835 | 797 |
| thereof pension costs: € 157 million (2010: € 74 million) | 5,758 | 5,428 |
| Average workforce during the year | 2011 | 2010 |
| Head office and Munich plant | 26,695 | 25,986 |
| Dingolfing plant | 17,675 | 17,753 |
| Regensburg plant | 8,319 | 8,257 |
| Landshut plant | 2,907 | 2,876 |
| Leipzig plant | 2,609 | 2,614 |
| Berlin plant | 2,473 | 2,470 |
| Branches | 5,360 | 5,277 |
| 66,038 | 65,233 | |
| Apprentices and students gaining work experience | 4,922 | 4,693 |
| 70,960 | 69,926 |
The total fee of the external auditor is disclosed in the notes to the Group Financial Statements.
Notes to the Financial Statements Analysis of Changes in Tangible, Intangible and Investment Assets in 2011
| 2 | BMW AG in figures | Acquisition or manufacturing cost | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 4 5 6 29 |
Balance Sheet at 31 December Income Statement Notes Responsibility Statement by the Company's Legal Representatives |
in € million | 1. 1. 2011 | Merger- related additions * |
Other additions |
Reclassifi- cations |
Disposals | 31. 12. 2011 | |
| 30 32 |
Auditor's Report BMW AG Ten-year Comparison |
Intangible assets | 305 | – | 78 | – | – | 383 | |
| Land, titles to land, buildings, | |||||||||
| including buildings on third party land | 4,400 | 57 | 54 | 42 | 81 | 4,472 | |||
| Plant and machinery | 17,774 | 6 | 1,242 | 367 | 450 | 18,939 | |||
| Other facilities, factory and office equipment | 1,214 | 2 | 117 | 21 | 125 | 1,229 | |||
| Advance payments made and construction in progress | 507 | – | 541 | – 430 | 5 | 613 | |||
| Property, plant and equipment | 23,895 | 65 | 1,954 | – | 661 | 25,253 | |||
| Investments in subsidiaries | 1,872 | – | 644 | – | 161 | 2,355 | |||
| Participations | 7 | – | 465 | – | – | 472 | |||
| Other non-current loans receivable | 1 | – | – | – | – | 1 | |||
| Investments | 1,880 | – | 1,109 | – | 161 | 2,828 | |||
| Tangible, intangible and investment assets | 26,080 | 65 | 3,141 | – | 822 | 28,464 |
* Merger of BMW Maschinenfabrik Spandau GmbH, Berlin
| Depreciation and amortisation | Carrying amount | ||||||
|---|---|---|---|---|---|---|---|
| 1. 1. 2011 | Merger- related additions * |
Current year |
Disposals | 31. 12. 2011 | 31. 12. 2011 | 31. 12. 2010 | |
| 164 | – | 58 | – | 222 | 161 | 141 | Intangible assets |
| 2,065 | 32 | 117 | 78 | 2,136 | 2,336 | 2,335 | Land, titles to land, buildings, including buildings on third party land |
| 14,553 | 4 | 1,324 | 421 | 15,460 | 3,479 | 3,221 | Plant and machinery |
| 1,020 | 2 | 79 | 123 | 978 | 251 | 194 | Other facilities, factory and office equipment |
| – | – | – | – | – | 613 | 507 | Advance payments made and construction in progress |
| 17,638 | 38 | 1,520 | 622 | 18,574 | 6,679 | 6,257 | Property, plant and equipment |
| – | – | – | – | – | 2,355 | 1,872 | Investments in subsidiaries |
| 4 | – | – | – | 4 | 468 | 3 | Participations |
| 1 | – | – | – | 1 | – | – | Other non-current loans receivable |
| 5 | – | – | – | 5 | 2,823 | 1,875 | Investments |
| 17,807 | 38 | 1,578 | 622 | 18,801 | 9,663 | 8,273 | Tangible, intangible and investment assets |
Notes to the Financial Statements List of investments
4 Balance Sheet at 31 December
| Principal subsidiaries of BMW AG at 31 December 2011 |
Equity in € million |
Net result in € million |
Capital investment in % |
|---|---|---|---|
| Domestic1 | |||
| BMW INTEC Beteiligungs GmbH, Munich3 | 3,558 | – | 100 |
| BMW Bank GmbH, Munich3 | 1,657 | – | 100 |
| BMW Finanz Verwaltungs GmbH, Munich | 297 | 85 | 100 |
| BMW Hams Hall Motoren GmbH, Munich4 | 15 | – | 100 |
| BMW Fahrzeugtechnik GmbH, Eisenach3 | 11 | – | 100 |
| Rolls-Royce Motor Cars GmbH, Munich4 | 1 | – | 100 |
| BMW M GmbH Gesellschaft für individuelle Automobile, Munich3 | –5 | – | 100 |
1 In the case of German subsidiaries, based on financial statements drawn up in accordance with HGB.
2 In the case of foreign subsidiaries, based on financial statements drawn up in accordance with IFRSs.
Equity and net result are translated at the closing exchange rate.
3 Profit and Loss Transfer Agreement with BMW AG
4 Profit and Loss Transfer Agreement with a subsidiary of BMW AG
5 below € 500,000
| Principal subsidiaries of BMW AG at 31 December 2011 |
Equity in € million |
Net result in € million |
Capital investment in % |
|---|---|---|---|
| Foreign2 | |||
| BMW Österreich Holding GmbH, Steyr | 1,681 | 1,047 | 100 |
| BMW China Automotive Trading Ltd., Beijing | 1,416 | 1,394 | 100 |
| BMW Motoren GmbH, Steyr | 848 | 178 | 100 |
| BMW Russland Trading OOO, Moscow | 246 | 137 | 100 |
| BMW Austria Gesellschaft m.b.H., Salzburg | 56 | 7 | 100 |
| BMW Vertriebs GmbH, Salzburg | 88 | 17 | 100 |
| BMW Holding B. V., The Hague | 7,185 | 1,113 | 100 |
| BMW (South Africa) (Pty) Ltd., Pretoria | 671 | 141 | 100 |
| BMW Finance N. V., The Hague | 377 | 39 | 100 |
| BMW (Schweiz) AG, Dielsdorf | 274 | 16 | 100 |
| BMW Japan Corp., Tokyo | 150 | 13 | 100 |
| BMW Japan Finance Corp., Tokyo | 367 | 49 | 100 |
| BMW Italia S. p. A., Milan | 347 | –7 | 100 |
| BMW Australia Finance Ltd., Melbourne, Victoria | 261 | 49 | 100 |
| BMW Belgium Luxembourg S. A. / N. V., Bornem | 236 | 20 | 100 |
| BMW Canada Inc., Whitby | 121 | 88 | 100 |
| BMW France S. A., Montigny-le-Bretonneux | 145 | 19 | 100 |
| BMW Sverige AB, Stockholm | 46 | 16 | 100 |
| BMW Korea Co., Ltd., Seoul | 72 | 32 | 100 |
| BMW Portugal Lda., Lisbon | 34 | –10 | 100 |
| BMW Automotive (Ireland) Ltd., Dublin | 22 | 3 | 100 |
| BMW Nederland B. V., The Hague | – 3 | 10 | 100 |
| BMW Australia Ltd., Melbourne, Victoria | – 95 | 24 | 100 |
| BMW India Private Ltd., New Delhi | 76 | 12 | 100 |
| BMW (UK) Holdings Ltd., Bracknell | 444 | – 49 | 100 |
| BMW (UK) Manufacturing Ltd., Bracknell | 1,182 | 114 | 100 |
| BMW (UK) Ltd., Bracknell | 724 | 32 | 100 |
| BMW Financial Services (GB) Ltd., Hook | 481 | 128 | 100 |
| BMW (UK) Capital plc, Bracknell | 252 | 27 | 100 |
| BMW Malta Ltd., St. Julians | 1,102 | 104 | 100 |
| BMW Malta Finance Ltd., St. Julians | 922 | 59 | 100 |
| BMW Coordination Center V. o. F., Bornem | 592 | 10 | 100 |
| BMW España Finance S. L., Madrid | 490 | 1 | 100 |
| BMW Ibérica S. A., Madrid | 335 | 30 | 100 |
| BMW de Mexico, S. A. de C. V., Mexico City | 4 | – 5 | 100 |
| BMW do Brasil Ltda., São Paulo | 127 | 48 | 100 |
| BMW (US) Holding Corporation, Wilmington, DE | 1,531 | 228 | 100 |
| BMW Manufacturing, LLC, Wilmington, DE | 770 | 114 | 100 |
| BMW of North America, LLC, Wilmington, DE | 58 | 66 | 100 |
| BMW US Capital, LLC, Wilmington, DE | 307 | –11 | 100 |
| Financial Service Vehicle Trust, Wilmington, DE | 216 | 108 | 100 |
| BMW Insurance Agency, Inc., Wilmington, DE | 3 | 1 | 100 |
| BMW Bank of North America, Inc., Salt Lake City, UT | 770 | 186 | 100 |
| BMW Financial Services NA, LLC, Wilmington, DE | 922 | 408 | 100 |
Investments in large-sized corporations, in which BMW AG holds more than 5 % of the voting rights (to the extent not included above) SGL Carbon SE, Wiesbaden
Notes to the Financial Statements Members of the Board of Management
Frank-Peter Arndt (born 1956) Production
Mandates BMW Motoren GmbH (Chairman)
Dr.-Ing. Herbert Diess (born 1958) Purchasing and Supplier Network
Dr.-Ing. Klaus Draeger (born 1956) Development
Harald Krüger (born 1965) Human Resources, Industrial Relations Director
Dr. Ian Robertson (HonDSc) (born 1958) Sales and Marketing
Mandates
Rolls-Royce Motor Cars Limited (Chairman)
General Counsel: Dr. Dieter Löchelt
Membership of other statutory supervisory boards
Membership of equivalent national or foreign boards of business enterprises
Notes to the Financial Statements Members of the Supervisory Board
Prof. Dr.-Ing. Dr. h. c. Dr.-Ing. E. h. Joachim Milberg (born 1943) Chairman Former Chairman of the Board of Management of BMWAG
Chairman of the Presiding Board, Personnel Committee and Nomination Committee; member of Audit Committee and the Mediation Committee Mandates
Manfred Schoch1 (born 1955)
Deputy Chairman Chairman of the European and General Works Council Industrial Engineer
Member of the Presiding Board, Personnel Committee, Audit Committee and Mediation Committee
Stefan Quandt (born 1966) Deputy Chairman Entrepreneur
Member of the Presiding Board, Personnel Committee, Audit Committee, Nomination Committee and Mediation Committee
Mandates
Stefan Schmid1 (born 1965) Deputy Chairman Chairman of the Works Council, Dingolfing
Member of the Presiding Board, Personnel Committee, Audit Committee and Mediation Committee
Dr. jur. Karl-Ludwig Kley (born 1951) Deputy Chairman Chairman of the Executive Management of Merck KGaA
Chairman of the Audit Committee and Independent Finance Expert; member of the Presiding Board, Personnel Committee and Nomination Committee Mandates
Bertin Eichler2 (born 1952) Executive Member of the Executive Board of IG Metall Mandates
1 Employee representatives (company employees). 2 Employee representatives (union representatives).
Membership of other statutory supervisory boards
Membership of equivalent national or foreign boards of business enterprises
23
Engineer, MBA
Mandates
Chairman of the Executive Board of Helmholtz-Zentrum Potsdam Deutsches GeoForschungsZentrum – GFZ University professor
Henning Kagermann (born 1947) President of acatech – Deutsche Akademie der Technikwissenschaften e. V.
Mandates
Susanne Klatten (born 1962)
Entrepreneur
Mandates
Director of Institut für Demoskopie Allensbach Gesellschaft zum Studium der öffentlichen Meinung mbH
Former Chairman and Chief Executive Officer of Deere & Company
Mandates
General Representative of IG Metall Munich Mandates
Willibald Löw1 (born 1956) Chairman of the Works Council, Landshut
Membership of equivalent national or foreign boards of business enterprises
24
Former Chairman of the Board of Management of Deutsche Lufthansa AG
Mandates
Franz Oberländer1 (born 1952) Member of the Works Council, Munich
Anton Ruf3 (born 1953) Head of Development "Small Model Series"
Maria Schmidt1 (born 1954) Member of the Works Council, Dingolfing
Jürgen Wechsler2 (born 1955) (since 10. 02. 2011) Regional Head of IG Metall Bavaria Mandates
Schaeffler AG (Deputy Chairman)
Werner Zierer1 (born 1959) Chairman of the Works Council, Regensburg
Notes to the Financial Statements Other Disclosures
– "Susanne Klatten Beteiligungs GmbH (until 22 December 2008 operating under the name of DataCard Three GmbH) with its seat in Bad Homburg v. d. Höhe, Germany, has informed us by way of an amended and restated voluntary notification in accordance with § 21 (1) WpHG, that its voting rights in Bayerische Motoren Werke Aktien gesellschaft, after the change of its company name on 22 December 2008, exceeded as before 3 %, 5 % and 10 % and amounted to 12.55 % (75,562,421 voting rights) on 22 December 2008. All these voting rights are attributable to Susanne Klatten Beteiligungs GmbH through Susanne Klatten GmbH & Co. KG für Auto mobilwerte, Bad Homburg v. d. Höhe, Germany, and Susanne Klatten GmbH, Bad Homburg v. d. Höhe, Germany, according to § 22 (1.1) no. 1 WpHG. Reference is made to the notification of voting rights of DataCard Three GmbH dated 17 December 2008."
– "BlackRock, Inc., with its seat in New York, U.S.A., has informed us in accordance with § 21 Section 1 WpHG (Securities Trading Act) that its voting rights in Bayerische Motoren Werke Aktiengesellschaft have exceeded the threshold of 3 % of the voting rights on 20 May 2011 and amounted to 3.05 % (18,382,836 voting rights). 3.05 % (18,382,836 voting rights) were attributable to BlackRock, Inc. pursuant to § 22 Section 1 sentence 1 n°6 in connection with sentence 2 WpHG (Securities Trading Act)."
The voting power percentages disclosed above may have changed subsequent to the dates stated above, if these changes were not required to be reported to the Company. Due to the fact that the Company's shares are issued to bearer, the Company is generally only aware of changes in shareholdings if such changes are subject to mandatory notification rules. The voting rights stated above are based on mandatory notifications pursuant to §§ 21ff. WpHG; voluntary notifications at 31 December 2011 are disclosed in the Management Report.
The Declaration with respect to the Corporate Governance Code pursuant to § 161 AktG is reproduced in the Annual Report 2011 of the BMW Group and is available to shareholders on the BMW Group's website www.bmwgroup.com/ir.
For financial years beginning after 1 January 2011, BMWAG has added a share-based remuneration component to the existing compensation system for Board of Management members.
Subject to the approval of the proposed dividend at the Annual General Meeting of Shareholders, the remuneration of current members of the Board of Management for the financial year 2011 amounts to €27.3 million (2010: €18.2 million). This comprised fixed components of €4.7 million (2010: €3.7 million), variable components of €21.9 million (2010: €14.5 million) and a share-based compensation component totalling €0.7 million (2010: €– million).
The grant of the share-based remuneration component related to 11,945 shares of BMWAG common stock and a corresponding cash-based settlement, measured at the relevant market shares price prevailing on the date the contract for the share-based compensation programme was signed.
In addition, an expense of €1.0 million (2010: €0.9 million) has been granted to current members of the Board of Management for the period after the end of their employment relationship. This relates to the expense for allocations to pension provisions (service costs). Provisions for pension obligations to current members of the Board of Management stood at €17.6 million (2010: €16.1 million).
The remuneration of former members of the Board of Management and their surviving dependants amounted to €3.7 million (2010: €3.7 million).
Pension obligations to former members of the Board of Management and their dependants are fully covered by pension provisions amounting to €49.6 million (2010: €47.7 million).
The present value of pension obligations for the purposes of the Company Financial Statements is measured on the basis of an actuarial report using an interest rate of 5.14 %, compared to an interest rate of 4.75 % used in the Group Financial Statements.
The compensation of the members of the Supervisory Board for the financial year 2011 amounted to €4.5 million (2010: €3.1 million). This comprised fixed components of €1.6 million (2010: €1.6 million) and variable components of €2.9 million (2010: €1.5 million).
The compensation systems for members of the Supervisory Board do not include any stock options, value appreciation rights comparable to stock options or any other stock-based compensation components. Apart from vehicle lease contracts entered into on customary market conditions, no advances and loans were granted by the Company to members of the Board of Management and the Supervisory Board, nor were any contingent liabilities entered into on their behalf.
Further details about the remuneration system of current members of the Board of Management and of the Supervisory Board can be found in the Compensation Report included in the BMW Group Annual Report 2011. The Compensation Report is part of the Combined Company and Group Management Report.
Munich, 16 February 2012
The Board of Management
Dr.-Ing. Dr.-Ing. E. h. Norbert Reithofer
| Frank-Peter Arndt | Dr.-Ing. Herbert Diess |
|---|---|
| Dr.-Ing. Klaus Draeger | Dr. Friedrich Eichiner |
| Harald Krüger | Dr. Ian Robertson (HonDSc) |
29
Responsibility Statement by the Company's Legal Representatives
"To the best of our knowledge, and in accordance with the applicable reporting principles, we confirm that the annual financial statements of Bayerische Motoren Werke Aktien gesell schaft give a true and fair view of the assets, liabilities, financial position and profit of the Company, and the management report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal opportunities and risks associated with the expected development of the Company."
Munich, 16 February 2012
Bayerische Motoren Werke Aktiengesellschaft
The Board of Management
Dr.-Ing. Dr.-Ing. E. h. Norbert Reithofer
Frank-Peter Arndt Dr.-Ing. Herbert Diess
Dr.-Ing. Klaus Draeger Dr. Friedrich Eichiner
Harald Krüger Dr. Ian Robertson (HonDSc)
Auditor's Report (Translation)
We have audited the annual financial statements, comprising the balance sheet, the income statement and the notes to the financial statements, together with the bookkeeping system, and the combined Group and Company management report of Bayerische Motoren Werke Aktiengesellschaft for the business year from 1 January to 31 December 2011. The maintenance of the books and accounts and the preparation of the annual financial statements and management report in accordance with German commercial law are the responsibility of the Company's Board of Management. Our responsibility is to express an opinion on the annual financial statements, together with the bookkeeping system, and the management report based on our audit.
We conducted our audit of the financial statements in accordance with § 317 HGB (Handelsgesetzbuch: German Commercial Code) and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the audit such that material misstatements affecting the presentation of the net assets, financial position and results of operations in the annual financial statements in accordance with German principles of proper accounting and in the management report are detected with reasonable assurance.
Knowledge of the business activities and the economic and legal environment of the Company and evaluations of possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system relating to the accounting system and the evidence supporting the disclosures in the books and records, the annual financial statements and the management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles used and significant estimates made by the Board of Management, as well as evaluating the overall presentation of the annual financial statements and management report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the annual financial statements comply with the legal requirements and give a true and fair view of the net assets, financial position and results of operations of the Company in accordance with German principles of proper accounting. The management report is consistent with the annual financial statements and as a whole provides a suitable view of the Company's position and suitably presents the opportunities and risks of future development.
Munich, 22 February 2012
Wirtschaftsprüfungsgesellschaft
Prof. Dr. Schindler Huber-Straßer Wirtschaftsprüfer Wirtschaftsprüferin
30
32
Ten-year Comparison
4 Balance Sheet at 31 December
| 2011 | 2010 | 2009 | 2008 | |||
|---|---|---|---|---|---|---|
| Revenues | € million | 55,007 | 45,773 | 37,980 | 44,313 | |
| Change | % | 20.2 | 20.5 | 14.3 | 8.3 | |
| Export ratio | % | 77.3 | 76.7 | 73.8 | 75.6 | |
| Production | ||||||
| Automobiles | units | 1,783,160 | 1,481,253 | 1,258,417 | 1,439,918 | |
| Motorcycles1 | units | 110,360 | 99,236 | 82,631 | 104,220 | |
| Sales volume | ||||||
| Automobiles | units | 1,723,637 | 1,460,923 | 1,231,893 | 1,446,055 | |
| Motorcycles1 | units | 110,145 | 97,586 | 86,451 | 103,077 | |
| Capital expenditure | € million | 2,032 | 1,582 | 1,667 | 2,064 | |
| Depreciation and amortisation | € million | 1,578 | 1,540 | 1,505 | 1,569 | |
| Workforce at the end of year 2 | 71,630 | 69,518 | 70,223 | 71,596 | ||
| Tangible, intangible and investment assets3 | € million | 9,663 | 8,273 | 6,984 | 6,643 | |
| Current assets, prepayments and surplus of pension and similar plan assets over liabilities |
€ million | 17,845 | 16,073 | 17,663 | 16,673 | |
| Subscribed capital | € million | 655 | 655 | 655 | 654 | |
| Reserves | € million | 6,059 | 5,581 | 4,502 | 4,487 | |
| Equity | € million | 8,222 | 7,088 | 5,354 | 5,338 | |
| as % of tangible, intangible and investment assets | % | 85.1 | 85.7 | 76.7 | 80.4 | |
| Balance sheet total | € million | 27,508 | 24,346 | 24,647 | 23,316 | |
| Cost of materials | € million | 39,324 | 32,875 | 28,300 | 34,044 | |
| Personnel costs2 | € million | 5,758 | 5,428 | 5,850 | 5,125 | |
| Taxes | € million | 2,096 | 1,106 | 403 | 11 | |
| Net profit | € million | 1,970 | 1,506 | 202 | 384 | |
| Dividend | € million | 1,5084 | 852 | 197 | 197 | |
| per share of common stock | € | 2.304 | 1.30 | 0.30 | 0.30 |
1 Until 2002 including C1 production; from 2006 up to 2008 including BMW G 650 X assembly by Piaggio S. p. A.
2 From 2009 onward including personnel seconded from other group entities
3 From 2010 onward including property, plant and equipment transferred in conjunction with the merger of BMW Ingenieur-Zentrum GmbH + Co oHG, Dingolfing;
per share of preferred stock € 2.324 1.32 0.32 0.32
from 2011 onward including property, plant and equipment transferred in conjunction with the merger of BMW Maschinenfabrik Spandau GmbH, Berlin
4 Proposed by the Board of Management
5 Before buy-back of treasury shares
| 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |
|---|---|---|---|---|---|---|
| 48,310 | 42,417 | 41,801 | 40,597 | 36,881 | 35,315 | Revenues |
| 13.9 | 1.5 | 3.0 | 10.1 | 4.4 | 17.7 | Change |
| 76.1 | 74.3 | 73.0 | 72.5 | 72.8 | 72.3 | Export ratio |
| Production | ||||||
| 1,541,503 | 1,366,838 | 1,323,119 | 1,250,345 | 1,118,940 | 1,090,258 | Automobiles |
| 104,396 | 103,759 | 92,012 | 93,836 | 89,745 | 97,553 | Motorcycles1 |
| Sales volume | ||||||
| 1,551,490 | 1,358,119 | 1,334,426 | 1,241,659 | 1,117,267 | 1,082,735 | Automobiles |
| 104,076 | 102,786 | 95,343 | 91,797 | 93,625 | 102,418 | Motorcycles1 |
| 1,670 | 1,324 | 1,472 | 2,321 | 2,293 | 2,140 | Capital expenditure |
| 1,791 | 1,765 | 1,770 | 1,535 | 1,322 | 1,222 | Depreciation and amortisation |
| 76,064 | 76,156 | 76,536 | 77,252 | 75,969 | 73,283 | Workforce at the end of year 2 |
| 9,909 | 10,171 | 10,577 | 10,893 | 11,386 | 10,469 | Tangible, intangible and investment assets |
| 12,707 | 10,874 | 9,225 | 8,910 | 8,096 | 6,385 | Current assets, prepayments and surplus of pension and similar plan assets over liabilities |
| 654 | 654 | 661 | 674 | 674 | 674 | Subscribed capital |
| 4,300 | 3,809 | 4,023 | 4,516 | 4,188 | 4,171 | Reserves |
| 5,648 | 4,921 | 5,108 | 5,609 | 5,254 | 5,196 | Equity |
| 57.0 | 48.4 | 48.3 | 51.5 | 46.1 | 49.6 | as % of tangible, intangible and investment assets |
| 22,616 | 21,045 | 19,802 | 19,803 | 19,482 | 16,854 | Balance sheet total |
| 36,638 | 31,867 | 31,010 | 29,501 | 26,190 | 24,857 | Cost of materials |
| 4,797 | 5,503 | 6,128 | 5,888 | 5,398 | 4,762 | Personnel costs2 |
| 131 | 75 | – 37 | 327 | 118 | 48 | Taxes |
| 1,184 | 485 | 424 | 747 | 392 | 615 | Net profit |
| 694 | 458 | 4245 | 419 | 392 | 351 | Dividend |
| 1.06 | 0.70 | 0.64 | 0.62 | 0.58 | 0.52 | per share of common stock |
| 1.08 | 0.72 | 0.66 | 0.64 | 0.60 | 0.54 | per share of preferred stock |
Financial Calendar
| Annual Accounts Press Conference | 13 March 2012 |
|---|---|
| Analyst and Investor Conference | 14 March 2012 |
| Quarterly Report to 31 March 2012 | 3 May 2012 |
| Annual General Meeting | 16 May 2012 |
| Quarterly Report to 30 June 2012 | 1 August 2012 |
| Quarterly Report to 30 September 2012 | 6 November 2012 |
| Annual Report 2012 | 19 March 2013 |
| Annual Accounts Press Conference | 19 March 2013 |
| Analyst and Investor Conference | 20 March 2013 |
| Quarterly Report to 31 March 2013 | 2 May 2013 |
| Annual General Meeting | 14 May 2013 |
| Quarterly Report to 30 June 2013 | 1 August 2013 |
| Quarterly Report to 30 September 2013 | 5 November 2013 |
35
Contacts
| Business 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.
Bayerische Motoren Werke Aktiengesellschaft 80788 Munich Germany Tel. +49 89 382-0
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