BMW Annual Report by Jenn Chaput

BMW ANNUAL REPORT Jenn Chaput

PROJECT STATEMENT BMW Annual Report Data Visualization Background: Present the financial data portion to be used in the 2013 annual report. Target Audience: BMW as a company. Objectives: Present the financial data portion to be used in the 2013 annual report. It should be comprised of the most important data sets for the company as well as future hopes. Obstacles: The information needs to be clear but presented in a visually striking or interesting way. The data needs to match the design of the annual report. Tone: The tone should be professional but fluid to match the company's branding. http://datamob.org/datasets/show/oscar-nominated-movie-piracy-data

Inspiration

PROGRESS

350 300 250 200 150

BMW Stock and Capital Market in 2013

100 50 04 05 06 07 08 09 10 11 12 13

Income Statements for Group and Segments in € million

Note

Group

BMW stock Common stock Number of shares in 1,000 Stock exchange price in €1 Year-end closing price High Low Preferred Stock Number of shares in 1,000 Shares bought back at the reporting date Stock exchange price in €1 Year-end closing price High Low Key date per share in € Dividend Common stock Preferred stock Earnings per share of common stock3 Earnings per share of preferred stock4 Cashflow Equity 1 2 3 4 5

2013

2012

2011

2010

2009

601,995

51.76 73.52 45.04

58.85 64.80 28.65

31.80 35.94 17.61

21.61 42.73 17.04

42.35 50.73 39.81

53,571 -

53,163 -

52,665 -

52,196 363

52,196 -

36.55 45.98 32.01

38.50 41.90 21.45

23.00 24.79 11.05

13.86 36.51 13.00

36.30 47.52 33.642

2.30 2.322 7.45 7.47 10.80 41.34

1.30 1.32 4.935 4.955 12.45 36.535

0.30 0.32 0.31 0.33 7.53 30.42

0.30 0.32 0.49 0.51 6.84 30.99

1.06 1.06 4.78 4.80 9.70 33.24

Xetra closing prices Proposed by management Annual average weighted amount Stock weighted according to dividened entitlements Adjusted for effect of change in accounting policy for leased products as described in note 8

BMW Group is sector leader in the Dow Jones Sustainability Index World for the seventh year

Emphasis on sustainability and closer contacts with international investors

In September 2011 the rating agency SAM named the BMW Group as sector leader in the Dow Jones Sustain- ability Index World and Europe for the seventh time in succession. In addition to extolling the BMW Group’s clear sustainability strategy and the way it implements that strategy along the entire value-added chain, SAM’s analysts this year also highlighted the importance of personnel-related policies which focus attention on employees as the key to success. They cited, among other things, the BMW Group’s convincing remuneration sys- tems and the extensive range of training opportunities offered to employees.

The dialogue with investors and analysts interested in sustainable investments was continued in 2011. Our contacts with sustainability-oriented investors were expanded in a variety of ways, including the so-called “stakeholder dialogues” held in New York and Leipzig. Capital-market days for sustainabilityoriented investors were organised in autumn 2011 for the first time in New York and Munich, at which we presented our extensive sustainability activities as well as the BMW i3 and i8 concept vehicles.

The BMW Group is the only enterprise in the car manufacturing sector to have been represented continuously in this important group of sustainability indices since their inception in 1999. In November 2011 the BMW Group won the DuMont DWS Prize for Responsible Business Practices presented by the DuMont Group and DWS Investments. We took first place out of 104 companies selected from the main German indices. The BMW Group also qualified again for inclusion in the renowned FTSE4Good Index in 2011.

The BMW Group has strengthened its communication channels with investors and analysts. In addition to holding numerous discussions in Germany, contacts with investors were also increased internationally in a series of roadshows and conferences. In response to interest shown by Chinese investors and the growing importance of the Chinese capital market, discussions with investors were held for the first time in Hong Kong, Beijing and Shanghai. The BMW Group won further awards in 2011 for its capital market communication activities from Thomson-Extel, Institutional Investor and IR Magazine.

SUSTAINABILITY Sustainable business practices along the value-added chain

The BMW Group’s sustainability strategy applies worldwide and in all areas of the enterprise. The Sustainability Board, to which all members of the Board of Management belong, determines the BMW Group’s long-term sustainability strategy and monitors the progress made. Sustainability is defined as a corporate objective and is a component of the BMW Group’s Balanced Scorecard. Each project is assessed according to consumption of resources and emissions as well as its social and sociopolitical impact. Sustainability management also involves the continuous and systematic analysis of external conditions and the consideration of social and ecological aspects in the decision-making process. We also participate in an intensive dialogue with our stakeholders. Stakeholder dialogues held in New York and Leipzig in 2011 provided useful inputs to enable us to assess external conditions.v

Automotive (unaudited supplementary information)

Motorcycles (unaudited supplementary information)

Financial Services (unaudited supplementary information)

Other Entities (unaudited supplementary information)

Eliminations (unaudited supplementary information)

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

2013

2012

Revenues 10 Cost of sales 11 Gross Profit

68,821 -54,276 14,545

60,477 -49,545 10,932

63,229 -50,164 13,065

54,137 -44,703 9,434

1,436 -1,207 229

1,304 -1,095 209

17,510 -15,013 2,497

16,617 -14,798 1,819

5 - 5

4 - 4

-13,359 12,108 -1,251

-11,585 11,051 -534

Sales and administrative costs 12 Other operating income 13 Other operating expenses 13 Profit / loss before financial result

-6,177 782 -1,132 8,018

-5,529 766 -1,058 5,111

-5,260 528 -856 7,477

-4,778 508 -809 4,355

-176 2 -10 45

-140 3 -1 71

-719 74 -89 1,763

-589 72 -101 1,201

-27 249 -246 -19

-16 224 -256 -41

5 -71 69 -1,248

-6 -41 106 -475

Result from equity accounted investments 14 Interest and similar income 15 Interest and similar expenses 15 Other financial result 16 Financial result

162 763 -943 -617 -635

98 685 -966 -75 -258

164 680 -889 -609 -654

98 556 -871 -251 -468

- 8 -12 - -4

- 7 -13 - -6

- 5 -15 37 27

- 4 -7 16 13

-2 1,739 -1,841 -45 -149

- 1,984 -2,058 160 86

- -1,669 1,814 - 145

-1,866 1,983 117

Profit / loss before tax

7,383

4,853

6,823

3,887

1,790

1,214

-168

-1,103

-358

Income taxes 17 Net profit / loss

-2,476 4,907

-1,610 3,243

-1,832 4,991

-1,280 2,607

-12 29

-20 45

-1,053 737

-446 768

37 -131

22 67

384 -719

114 -244

Attributable to minority interest Attributable to shareholders of BMW AG 34

26 4,881

16 3,227

25 4,966

15 2,592

- 29

- 45

- 737

1 767

1 -132

- 67

- -719

-244

Earnings per share of common stock in € 18 Earnings per share of preferred stock in € 18 Dilutive effects Diluted earnings per share of common stock in € 18 Diluted earnings per share of preferred stock in € 18

7.45 7.47 - 7.45 7.47

4.93 4.95 4.93 4.95

* Adjusted for effect of change in accounting policy for leased products as described in note B

Bayerische Motoren Werke G. m. b. H. came into being in 1917, having been origianlly founded in 1916 as Bayerische Flugzeugwerke AG (BFW); it then evolved into Bayerische Motoren Werke Aktiengesellschaft (BMW AG) in 1918.

Development of BMW stock compared to stock exchange indices (index: 29 December 2003 = 100) 350 300 250 200 150

BMW Stock and Capital Market in 2013

100 50 04 05 06 07 08 09 10 11 12 13 PRIME AUTOMOBILE

Top-level ratings

BMW AG’s long-term and short-term ratings were raised by one level in July 2011 by the rating agency Moody’s from A3/P-2 to A2/P-1 with a stable outlook. In September 2011 the rating agency Standard & Poor’s confirmed BMW AG’s rating of A– /A-2 and raised the outlook from stable to positive. This resulted in BMW AG currently having the best ratings of all European car manufacturers. The improved ratings and outlook reflect the

worldwide rise in demand for our products, the successful implementation of measures in conjunction with Strategy Number ONE and the stable financial position of the BMW Group. Strong creditworthiness underlined by good ratings, a strong set of financial indicators and investor confidence all contributed to ensuring that the BMW Group continued to have excellent access to the world’s capital markets.

BMW PREFERRED STOCK

BMW COMMON STOCK

DAX

Debt crisis unnerves stock markets Stock markets around the world came under pressure in 2011 as a result of the debt crisis in the euro zone and concerns about the US economy. Unlike in 2010, the German stock index, the DAX, was not impervious to these developments in 2011 and dropped sharply over the course of 2011 against a background of high volatility. The advances made during the first six months of the year could not be sustained in the second half of the year. The 2011 stock market year came to an end with the index down by 14.7 % at 5,898 points. In May the DAX reached its high for the year at 7,600 points. The European debt crisis caused the index to tumble by some 30 % during the period from July to September. At 4,966 points, the index’s low for the year was recorded in September. The aversion of investors to financerelated securities and economy-sensitive stocks Employee share programme became particularly evident in the second half of the BMW AG has enabled its employees year, as reflected in the performance of the Prime to participate in its success for more Automobile Index. After a strong start, the sector index than 30 years. Since 1989 this lost 161 points during the period under report, participation has taken the form of an finishing the year at 688 points (– 19.0 %). The employee share programme. In total, EURO STOXX 50 performed just as weakly, dropping 408,140 shares of preferred stock 17.0 % in value to 2,317 points. were issued to employees in 2011 as

2013 2012 2011 2010 2009 601,995 601,995 601,995 601,995 601,995 51.76 58.85 31.80 21.61 42.35 73.52 64.80 35.94 42.73 50.73 45.04 28.65 17.61 17.04 39.81 53,571 53,163 52,665 52,196 52,196 - - - 363 36.55 38.50 23.00 13.86 36.30 45.98 41.90 24.79 36.51 47.52 32.01 21.45 11.05 13.00 33.642 2.302 1.30 0.30 0.30 1.06 2.322 1.32 0.32 0.32 1.06 7.45 4.935 0.31 0.49 4.78 7.47 4.955 0.33 0.51 4.80 10.80 12.45 7.53 6.84 9.70 41.34 36.535 30.42 30.99 33.24

Xetra closing prices Proposed by management 3 Annual average weighted amount 4 Stock weighted according to dividened entitlements 5 Adjusted for effect of change in accounting policy for leased products as described in note 8 1 2

BMW stocks were also affected by these negative market developments in the second half of 2011 and accordingly marked down. BMW common stock closed at € 51.76 on the last day of trading in 2011, 12.0 % lower than one year earlier. In July it had reached a new all-time high of € 73.85 and in October recorded its low for the year at € 43.49. BMW preferred stock held up a little better, losing only 5.1 % in value compared to its closing price at the end of the previous year. It finished the stock market year at € 36.55, compared to its high of € 46.05 in July.

part of this programme.

In accordance with a resolution taken by the Board of Management on 15 November 2011 and with the ap- proval of the Supervisory Board, the share capital was increased by € 407,960 from € 655,158,608 to € 655,566,568 by the issue of 407,960 new non-voting shares of preferred stock. This increase was executed on the basis of Authorised Capital 2009 in Article 4 (5) of the Articles of Incorporation. The new shares of preferred stock carry the same rights as existing shares of preferred stock and were issued to enable employees to obtain an equity participation in the Company. Shares of preferred stock were also bought back via the stock market in order to service the employee share programme.

Income Statements for Group and Segments in € million

Note

Group

Revenues 10 Cost of sales 11 Gross Profit

Automotive (unaudited supplementary information)

2013 2012 68,821 60,477 -54,276 -49,545 14,545 10,932

2013 2012 63,229 54,137 -50,164 -44,703 13,065 9,434

Sales and administrative costs 12 -6,177 -5,529 -5,260 -4,778 Other operating income 13 782 766 528 508 Other operating expenses 13 -1,132 -1,058 -856 -809 Profit / loss before financial result 8,018 5,111 7,477 4,355 Result from equity accounted investments 14 162 98 164 98 Interest and similar income 15 763 685 680 556 Interest and similar expenses 15 -943 -966 -889 -871 Other financial result 16 -617 -75 -609 -251 Financial result -635 -258 -654 -468 Profit / loss before tax

7,383

4,853

6,823

3,887

Income taxes 17 -2,476 -1,610 -1,832 -1,280 Net profit / loss 4,907 3,243 4,991 2,607 Attributable to minority interest Attributable to shareholders of BMW AG 34

26 4,881

16 3,227

7.45 7.47 - 7.45 7.47

4.93 4.95 4.93 4.95

* Adjusted for effect of change in accounting policy for leased products as described in note B

25 4,966

15 2,592

Motorcycles (unaudited supplementary information)

Financial Services (unaudited supplementary information)

2013 2012 1,436 1,304 -1,207 -1,095 229 209 -176 -140 2 3 -10 -1 45 71

Other Entities (unaudited supplementary information)

2013 2012 17,510 16,617 -15,013 -14,798 2,497 1,819 -719 -589 74 72 -89 -101 1,763 1,201

Eliminations (unaudited supplementary information)

2013 2012 5 - 5

4 - 4

2013 2012 -13,359 -11,585 12,108 11,051 -1,251 -534

-27 -16 5 -6 249 224 -71 -41 -246 -256 69 106 -19 -41 -1,248 -475

- - - - -2 - - 8 7 5 4 1,739 1,984 -1,669 -1,866 -12 -13 -15 -7 -1,841 -2,058 1,814 1,983 - - 37 16 -45 160 - -4 -6 27 13 -149 86 145 117 41

1,790

1,214

-168

-1,103

-358

-12 -20 -1,053 -446 37 22 384 114 29 45 737 768 -131 67 -719 -244 - 29

- 45

- 737

1 767

1 -132

- 67

- -719

-244

105 100 95 90 85 80 75 70 C02 EMISSIONS

SUSTAINABILITY Sustainable business practices along the value-added chain The BMW Group’s sustainability strategy applies worldwide and in all areas of the enterprise. The Sustainability Board, to which all members of the Board of Management belong, determines the BMW Group’s long-term sustainability strategy and monitors the progress made.

YEAR

96 98 99 00 01 02 03 04 05 06 07 08 09* 10 11 12 13

C02

100.0 101.0 102.4 101.0 98.6 96.7 96.7 92.9 92.9 94.8 90.0 88.6 80.0 73.3 71.4 70.0 69.0 *Measured only on EU-27 basis with effect from 2009

Sustainability is defined as a corporate objective and is a component of the BMW Group’s Balanced Scorecard. Each project is assessed according to consumption of resources and emissions as well as its social and sociopolitical impact. Sustainability management also involves the continuous and systematic analysis of external conditions and the consideration of social and ecological aspects in the decision-making process. We also participate in an intensive dialogue with our stakeholders. Stakeholder dialogues held in New York and Leipzig in 2011 provided useful inputs to enable us to assess external conditions.

Energy consumed per vehicle produced in MWH/vehicle

2009

2.78

2.80

2010

2.89

2011

2.75

2012

2013

2.46

3.00

2.80

2.60

2.40

2.20

2.00

Water consumption* per vehicle produced in m3/vehicle 2.61

2009

2010

2.56

2011

2.56

2012

2.31

2013

2.12

2.80

2.60

2.40

2.20

2.00

1.80