Financial Statements of BMW AG Financial Year 2004

Transcription

1 Financial Statements of BMW AG Financial Year 2004 Rolls-Royce Motor Cars Limited

2 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG in figures Change in % Revenues euro million 40,597 36, Export ratio % Production Automobiles units 1,250,345 1,118, Motorcycles units 93,836 89, Sales volume Automobiles units 1,241,659 1,117, Motorcycles units 91,797 93, Capital expenditure euro million 2,321 2, Depreciation and amortisation euro million 1,535 1, Workforce at year-end 77,252 75, of which wage-earners 41,741 41, of which salary-earners 29,532 28, Non-current assets euro million 10,893 11, Current assets and prepayments euro million 8,910 8, Subscribed capital euro million Reserves euro million 4,516 4, Equity euro million 5,609 5, as % of non-current assets % Long-term liabilities 1] euro million 3,849 2, Long-term equity and liabilities 2] euro million 9,458 8, as % of non-current assets % Balance sheet total euro million 19,803 19, Cost of materials euro million 29,501 26, Personnel costs euro million 5,888 5, Taxes euro million Net profit euro million Dividend euro million 419 3] per share of common stock with a par value of euro 1 each euro ] 0.58 per share of preferred stock with a par value of euro 1 each euro ] ] Registered profit-sharing certificates, pension provision, liability to BMW Unterstützungsvereins e.v., liabilities falling due later than one year 2] Equity, long-term liabilities 3] Proposed by the Board of Management 2

3 BMW AG Financial Statements The BMW AG Financial Statements and Management Report for the financial year 2004 are published in the German Federal Gazette and filed with the Trade Register of the Munich District Court. The Management Report of BMW AG is combined with the Group Management Report and published in the BMW Group Annual Report

4 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG Balance Sheet at 31 December in euro million Notes ASSETS Intangible assets [1] Property, plant and equipment 6,052 5,298 Financial assets [2] 4,774 6,021 Non-current assets 10,893 11,386 Inventories [3] 2,925 2,428 Trade receivables [4] 896 1,190 Receivables from subsidiaries [4] 1, Other receivables and other assets [4] 1,616 1,607 Marketable securities [5] 1,395 1,353 Cash and cash equivalents [6] Current assets 8,833 7,986 Prepayments ,803 19,482 EQUITY AND LIABILITIES Subscribed capital [7] Capital reserves [8] 1,971 1,971 Revenue reserves [9] 2,545 2,217 Unappropriated profit available for distribution Equity 5,609 5,254 Registered profit-sharing certificates [10] Pension provisions 3,289 2,479 Other provisions 7,002 6,777 Provisions [11] 10,291 9,256 Liabilities to banks Trade payables 1,355 1,168 Liabilities to subsidiaries 1,403 3,269 Other liabilities Liabilities [12] 3,829 4,936 Deferred income 39 19,803 19,482 4

5 BMW AG Income Statement in euro million Notes Revenues [13] 40,597 36,881 Cost of sales 34,842 31,751 Gross profit 5,755 5,130 Sales costs 2,685 2,247 Administrative costs Research and development costs 2,666 2,419 Other operating income and [14] expenses [15] Result from investments [16] Net interest expense [17] Profit from ordinary activities 1, Income taxes Other taxes 1 9 Net profit Transfer to revenue reserves [18] 328 Unappropriated profit available for distribution

6 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG Notes to the Financial Statements Analysis of Changes in non-current Assets in 2004 in euro million Acquisition and manufacturing cost Additions Reclassifi- Disposals cations Intangible assets Land, titles to land, buildings, including buildings on third party land 2, ,604 Plant and machinery 12,408 1, ,063 Other facilities, factory and office equipment 1, ,141 Advance payments made and construction in progress 1, Property, plant and equipment 16,690 2, ,226 Investment in subsidiaries 8,398 3,636 4,762 Investment in other companies Other non-current loans receivable 1 1 Financial assets 8,415 3,636 4,779 Non-current assets 25,623 2,321 4,718 23,226 6

7 Depreciation and amortisation Net book values Current year Disposals , ,142 1,462 1,048 9,388 1, ,114 3,949 3, ,039 11,392 1, ,174 6,052 5,298 2,389 2,389 4,762 6, ,394 2, ,774 6,021 14,237 1,535 3,439 12,333 10,893 11,386 7

8 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG Notes to the Financial Statements Accounting Policies and Principles 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 amortised over their estimated useful lives using the straight-line method. Property, plant and equipment are stated at acquisition or at manufacturing cost based on tax regulations, less accumulated depreciation. Depreciable items of property, plant and equipment with a useful life of more than five years are depreciated as a general rule using the reducing balance method and the highest rates permitted for tax purposes. The Company applies straight-line depreciation as soon as this gives rise to a higher depreciation expense. Expenditure on low value non-current assets is written off in full in the year of acquisition.the Company applies all special depreciation permitted under German tax legislation. 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, plant and machinery over 5 to 10 years and other facilities, factory and office equipment mainly over 5 years. For machinery used in multiple-shift operations, depreciation rates are increased to account for the additional utilisation. Investments in subsidiaries and in other companies are stated at cost or, if lower, at fair value. When the reasons for an impairment no longer exist, impairment losses previously recorded are reversed in accordance German accounting law, at a maximum up to the level of original cost. Loans which bear no or below market rate of interest are discounted to their present value. Inventories of raw materials, supplies and goods for resale are stated at the lower of cost and net realisable value. Work in progress and finished goods are stated at direct material and manufacturing cost. Write-downs are made to cover risks arising from slow-moving items or reduced saleability. Leased products are stated at direct material and manufacturing cost plus an appropriate portion of material and production overheads, and depreciated using the reducing balance method and the highest rates permitted for tax purposes. Receivables and other assets are stated at their nominal value or, if lower, at their net realisable value. Investments in marketable securities are stated at the lower of cost and net realisable value at the balance sheet date. Provisions for pensions and similar obligations are measured using the projected unit credit method in accordance with IAS 19 (Employee Benefits) applying an interest rate of 4.75%. The computation is based on assumptions set out in the biometric tables of Prof. Dr. Klaus Heubeck (RT 98).The effect of future increases in pensions and salaries and assumptions about fluctuation are taken into account. For reasons of consistency, the provision for longservice awards is measured using the same method. Other provisions are recognised to take account of all identified risks. In addition, provisions are recognised for deferred expenditure. Liabilities are stated at their repayment amount at the balance sheet date. Foreign currency assets and liabilities are translated at exchange rates prevailing on the date of the transaction. Foreign currency balance sheet items are generally hedged; any unhedged losses arising from changes in exchange rates are recognised by restating the foreign currency amount in the balance sheet to the closing rate. The Company is exposed to risks relating to changes in interest rates and exchange rates on underlying and forecast transactions. These risks are hedged by derivative financial instruments. Provisions are recognised where there is no hedge or where a hedge does not fully cover the risk. Provisions are also recognised for negative fair values of derivative financial instruments unless the hedged item and hedge contract can be treated as a valuation unit. Revenues from the sale of vehicles to car rental companies are not recognised when there is an obligation to take back the vehicles. Based on the draft financial reporting pronouncement Specific Issues relating to Transfer of Economic Ownership and Profit Realisation in accordance with HGB (IDW ERS HFA 13) dated 1 July 2004 issued by the German Institute of Public Accountants (IDW) and applied for the first time by BMW AG, vehicles remain on the balance sheet, measured at amortised cost, because, on the basis of the criteria set out in the pronouncement, economic ownership has not been transferred to the car rental companies. 8

9 BMW AG Notes to the Financial Statements Notes to the Balance Sheet [1] Intangible assets Intangible assets comprise mainly purchased software, franchises and licenses. [2] Financial assets Disposals of investments in subsidiaries relate mainly to the sale of BMW (UK) Holdings Ltd., Bracknell, to BMW Holding B.V., The Hague, and the sale of shares in BMW de Argentina S.A., Buenos Aires, and BMW do Brasil Ltda., Sao Paulo, to BMW España Finance S. L., Madrid. The list of investments of BMW AG is shown on pages 24 and 25. [3] Inventories in euro million Raw materials and supplies Work in progress, unbilled contracts Finished goods and goods for resale 2,114 1,707 Leased products ,925 2,428 [4] Receivables and other assets in euro million Trade receivables 896 1,190 Receivables from subsidiaries 1, Other receivables and other assets: Receivables from other companies in which an investment is held Other assets 1,365 1,316 thereof due later than one year: euro 76 million (2003: euro 982 million) 1,616 1,607 3,531 3,766 Other marketable securities include shares in securities funds and variable and fixed interest securities. The deferred remuneration retirement scheme comprises remuneration of employees which has been converted into pension entitlements and invested in investment funds. 9

10 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 [5] Marketable securities in euro million Other marketable securities 1,231 1,238 Deferred remuneration retirement scheme ,395 1,353 Other marketable securities include shares in securities funds and variable and fixed interest securities. The deferred remuneration retirement scheme comprises remuneration of employees which has been converted into pension entitlements and invested in investment funds. [6] Cash and cash equivalents in euro million Cash on hand and at bank [7] Subscribed capital The capital stock of BMW AG, amounting to euro million, comprises 622,227,918 shares of common stock with a par value of euro1 and 52,196,162 non-voting shares of preferred stock with a par value of euro 1. The preferred stock bears an advance profit (additional dividend) of euro 0.02 per share. All of the Company s stock is issued in the form of bearer shares. [8] Capital reserves in euro million Capital reserves Balance brought forward 1,971 1,954 Additional paid-in capital arising on capital increase 17 1,971 1,971 [9] Revenue reserves in euro million Statutory reserves 1 1 Other revenue reserves Balance brought forward 2,216 2,216 Transfer from net profit 328 2,544 2,216 2,545 2,217 10

11 [10] Registered profit-sharing certificates 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. The return of registered profit-sharing certificates by employees resulted in a decrease of the outstanding amount by euro 1.0 million. [11] Provisions in euro million Pension provisions 3,289 2,479 Taxes Other provisions 6,884 6,650 10,291 9,256 Pension provisions comprise euro 2,229 million for vested pension entitlements and euro 885 million for current pensions. A further euro 175 million relates to the deferred remuneration retirement scheme. All pension obligations of BMW AG are fully covered by provisions. Other provisions comprise mainly obligations for warranties, personnel-related expenses, dealer bonuses, outstanding invoices from suppliers, risks relating to the Land Rover disengagement, collection and recycling of end-of-life vehicles and manufacturer s liability. Provisions also relate to risks from legal disputes, guarantees and maintenance obligations. In addition, the Company also recognises provisions for maintenance expenses deferred to within the first three months of the new financial year and a provision for major overhauls. [12] Liabilities 31 December in euro million thereof due thereof due within later than one year five years Liabilities to banks Trade payables 1,355 1,346 1,168 Liabilities to subsidiaries 1,403 1,403 3,269 Other liabilities Advance payments received on orders Liabilities to BMW Unterstützungsverein e.v Sundry other liabilities thereof euro 388 million secured by the assignment of finished goods as collateral thereof for social security (101) (101) (99) ,829 3, ,936 11

12 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 Contingent liabilities at 31 December in euro million Contingent liability under bills of exchange 4 14 Guarantees for bonds issued by BMW Finance N.V., The Hague 3,285 2,199 BMW US Capital, LLC, Wilmington, Del. 3,027 2,945 BMW Coordination Center V.o.F., Bornem 1,363 1,520 BMW (UK) Capital plc, Bracknell BMW Australia Finance Ltd., Melbourne, Victoria Guarantees for bonds and notes issued by BMW US Capital, LLC, Wilmington, Del. 3,180 1,883 BMW Finance N.V., The Hague 2,618 1,513 BMW Coordination Center V.o.F., Bornem 1, BMW (UK) Capital plc, Bracknell 813 2,192 BMW Australia Finance Ltd., Melbourne, Victoria BMW Japan Finance Corp., Tokyo Guarantees on behalf of BMW (UK) Capital plc, Bracknell 870 1,161 BMW US Capital, LLC, Wilmington, Del BMW Finance N.V., The Hague Other Guarantees 19,461 16,562 thereof on behalf of affiliated companies (687) (492) Guarantee letter on behalf of BMW Bank GmbH, Munich 4,806 3,974 Joint and several liability applies in the case of investments in general partnerships. The usual commercial guarantees have been given in relation to the sale of Rover Cars and Land Rover activities. 12

13 Other financial commitments The present value of commitments under rental and lease agreements amounts to euro 1,877 million, analysed by due date as follows: in euro million later than Of these amounts, euro 1,003 million relate to subsidiaries. Purchase commitments for capital expenditure amount to euro 630 million. Derivative financial instruments The Company is exposed to interest rate and exchange rate risks from underlying transactions and forecast transactions. These risks are hedged by derivative financial instruments. At 31 December 2004, the following derivative financial instruments were in place: in euro million Nominal Net fair volume values Currency-related instruments Forward currency contracts 2, Cross currency swaps FX options , Interest rate-related instruments Interest swap 327 Purchasing-related instruments Commodities Provisions of euro 62 million were recognised to cover negative fair values. 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 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. The fair values are measured by reference to their nominal values of derivative financial instruments and do not take account of any offsetting change in the fair value of the hedged items. 13

14 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 Other disclosures Notifications pursuant to 25 (1) of the German Securities Trade Act on 9 April 2002: Johanna Quandt, Bad Homburg v.d.h., has given notice to the Board of Management pursuant to 41 (2) sentence 1 of the German Securities Trade Act (in conjunction with 21 (1), 22 (1) sentence 1 no.1 of that Act) that she holds 16.7% of the voting rights in Bayerische Motoren Werke Aktiengesellschaft, Munich on 1 April She has also given notice that 15.4% of these voting rights are attributable to her pursuant to 22 (1) sentence 1 no.1 of the German Securities Trade Act. Johanna Quandt GmbH& Co. KG für Automobilwerte, Bad Homburg v.d.h., has given notice to the Board of Management pursuant to 41 (2) sentence 1 of the German Securities Trade Act (in conjunction with 21 (1) of that Act) that it holds 15.4% of the voting rights in Bayerische Motoren Werke Aktiengesellschaft, Munich on 1 April Susanne Klatten, Bad Homburg v. d. H., has given notice to the Board of Management pursuant to 41 (2) sentence 1 of the German Securities Trade Act (in conjunction with 21 (1), 22 (1) sentence 1 no.1 of that Act) that, she holds 11.5% of the voting rights in Bayerische Motoren Werke Aktiengesellschaft, Munich on 1 April She has also given notice that 11.5% of these voting rights are attributable to her pursuant to 22 (1) sentence 1 no.1 of the German Securities Trade Act. Susanne Klatten GmbH& Co. KG für Automobilwerte, Bad Homburg v.d.h., has given notice to the Board of Management pursuant to 41 (2) sentence 1 of the German Securities Trade Act (in conjunction with 21 (1) of that Act) that it holds 11.5% of the voting rights in Bayerische Motoren Werke Aktiengesellschaft, Munich on 1 April Stefan Quandt, Bad Homburg v.d.h., has given notice to the Board of Management pursuant to 41 (2) sentence 1 of the German Securities Trade Act (in conjunction with 21 (1), 22 (1) sentence 1 no. 1 of that Act) that he holds 17.4% of the voting rights in Bayerische Motoren Werke Aktiengesellschaft, Munich on 1 April He has also given notice that 16.1% of these voting rights are attributable to him pursuant to 22 (1) sentence 1 no.1 of the German Securities Trade Act. Stefan Quandt GmbH& Co. KG für Automobilwerte, Bad Homburg v.d.h., has given notice to the Board of Management pursuant to 41 (2) sentence 1 of the German Securities Trade Act (in conjunction with 21 (1) of that Act) that it holds 16.1% of the voting rights in Bayerische Motoren Werke Aktiengesellschaft, Munich on 1 April

15 BMW AG Notes to the Financial Statements Notes to the Income Statement [13] Revenues in euro million Automobiles 34,729 31,574 Motorcycles Other revenues 5,120 4,561 40,597 36,881 Germany 11,172 10,037 United Kingdom 4,012 3,695 Rest of Europe 8,937 7,332 North America 11,114 10,523 Asia 3,624 3,782 Other regions 1,738 1,512 40,597 36,881 [14] Other operating income Other operating income, amounting to euro1,741 million in the year under report (2003: euro 1,328 million) comprises mainly income from the release of provisions, amounts charged to group companies and exchange gains. [15] Other operating expenses Other operating expenses in 2004 amounted to euro 748 million (2003: euro 455 million) and comprise mainly expenses for additions to provisions, amounts charged by group companies and exchange losses. 15

16 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 [16] Result from investments in euro million Income from investments 7 3 thereof from subsidiaries: euro 7 million (2003: euro 3 million) Income from profit and loss transfer agreements Expenses from loss transfers Impairment losses on financial assets [17] Net interest expense in euro million Other interest and similar income thereof from subsidiaries: euro 25 million (2003: euro 43 million) Interest and similar expenses thereof to subsidiaries: euro 100 million (2003: euro 86 million) [18] Transfer to revenue reserves An amount of euro 328 million has been transferred from net profit to other revenue reserves. 16

17 Cost of materials in euro million Purchased raw materials and supplies 28,736 25,540 Purchased services ,501 26,190 Personnel costs in euro million Wages and salaries 4,334 4,348 Social security, pension and welfare costs 1,554 1,050 thereof pension costs: euro 836 million (2003: euro 343 million) 5,888 5,398 Average workforce during the year Head office and Munich plant 27,545 27,485 Dingolfing plant 21,344 21,693 Regensburg plant 10,112 9,851 Landshut plant 3,271 3,259 Leipzig plant 1,033 Berlin plant 2,881 3,002 Branches 5,286 5,083 71,472 70,373 Apprentices and students gaining work experience 5,733 5,316 77,205 75,689 17

18 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG Notes to the Financial Statements Other disclosures Declaration relating to the Corporate Governance Code The Declaration of Compliance with the Corporate Governance Code pursuant to 161 of the German Stock Corporation Act is included in the BMW Group Annual Report 2004 and is also available to shareholders on the BMW Group website ( Total compensation of the Board of Management and Supervisory Board Subject to 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 2004 amounts to euro 11.9 million (2003: euro 10.7 million). This comprised a fixed component of euro 1.9 million (2003: euro 1.9 million) and a variable component of euro 10.0 million (2003: euro 8.8 million). The remuneration paid to former members of the Board of Management and their dependants amounts to euro 2.5 million (2003: euro 3.6 million). Pension obligations for former members of the Board of Management and their dependants are covered by pension provisions of euro 36.8 million (2003: euro 33.0 million). Subject to approval of the proposed dividend at the Annual General Meeting of Shareholders, the remuneration of Supervisory Board for 2004 amounts to euro 2.4 million (2003: euro 2.3 million). This comprised a fixed component of euro 0.1 million (2003: euro 0.1 million) and a variable component of euro 2.3 million (2003: euro 2.2 million). Munich, February 2005 Bayerische Motoren Werke Aktiengesellschaft Board of Management 18

19 BMW AG Auditors Report We have audited the annual financial statements, together with the bookkeeping system, and the combined group and company management report of Bayerische Motoren Werke Aktiengesellschaft, Munich, for the business year from 1 January to 31 December 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 annual financial statements in accordance with 317 HGB and the generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (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 accounting principles 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 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, the annual financial statements give a true and fair view of the net assets, financial position and results of operations of Bayerische Motoren Werke Aktiengesellschaft in accordance with German principles of proper accounting. On the whole, the management report provides a suitable understanding of the Company s position and suitably presents the risks of future development. Munich, 28 February 2005 KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft Dr. Hoyos Wirtschaftsprüfer Höfer Wirtschaftsprüfer 19

20 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 Members of the Supervisory Board Volker Doppelfeld Chairman (until ) Former Member of the Board of Management of BMW AG Bayerische Hypo- und Vereinsbank AG D.A.S. Deutsche Automobilschutz Allgem. Rechtsschutz-Versicherungs AG IWKA AG Bizerba GmbH & Co. KG Prof. Dr.-Ing. Dr. h. c. Dr.-Ing. E. h. Joachim Milberg Chairman (from ) Former Chairman of the Board of Management of BMW AG Allianz Versicherungs-AG FESTO AG MAN AG Deere & Company Leipziger Messe GmbH Ernst Rehmeier * Deputy Chairman (until ) Former Chairman of the Works Council, Dingolfing Konrad Gottinger * Deputy Chairman (from ) Member of the Works Council, Dingolfing Dr. Hans-Dietrich Winkhaus Deputy Chairman Former Chairman of the Board of Henkel KGaA Degussa-Hüls AG Deutsche Lufthansa AG ERGO Versicherungsgruppe AG Schwarz-Pharma AG (Chairman) Henkel KGaA Manfred Schoch * Deputy Chairman Chairman of the Central Works Council Stefan Quandt Deputy Chairman Industrial Engineer DELTON AG (Chairman) Dresdner Bank AG Gerling-Konzern Allgemeine Versicherungs-AG DataCard Corp. * Employee representative ** Mandates Membership of other Supervisory Boards and comparable boards with a supervisory function in Germany and abroad 20

21 Dr. phil. Karin Benz-Overhage * (until ) Former Executive Member of the Executive Board of IG Metall Thyssen Krupp Steel AG (Deputy Chairman) Bertin Eichler * (from ) Executive Member of the Executive Board of IG Metall Thyssen Krupp AG (Deputy Chairman) BHW Holding AG BauBeCon Holding AG (Deputy Chairman) BGAG Beteiligungsgesellschaft der Gewerkschaften AG (Chairman) Ulrich Eckelmann * Head of the Industry,Technology and Environment section of IG Metall Thyssen Krupp Automotive AG Werner Eisgruber * (from ) Member of the Works Council, Dingolfing Prof. Dr. Bernd Fahrholz (until ) Former Deputy Chairman of the Board of Management of Allianz AG and Former Chairman of the Board of Management of Dresdner Bank AG Fresenius Medical Care AG HeidelbergCement AG Hans Glas * (until ) Former Director of the Dingolfing plant Franz Haniel (from ) Managing Director of Giesecke& Devrient GmbH Franz Haniel& Cie. GmbH (Chairman) secunet Security Networks AG Arthur L. Kelly Managing Partner of KEL Enterprises L. P. BASF AG DataCard Corp. Deere & Company Northern Trust Corp. Robert Bosch Corp. Snap-on Inc. Susanne Klatten BSc., MBA ALTANA AG (Deputy Chairman) ALTANA Pharma AG UnternehmerTUM GmbH Willibald Löw * Chairman of the Works Council, Landshut 21

22 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 Prof. Dr. rer. nat. Drs. h.c. mult. Hubert Markl Former Chairman of Max-Planck-Gesellschaft zur Förderung der Wissenschaften e.v. Professor of Biology (retired) Münchener Rückversicherungs-Gesellschaft AG Royal Dutch Petroleum Company/Shell Sanofi-Aventis S. A. Wolfgang Mayrhuber (from ) Chairman of the Board of Management of Deutsche Lufthansa AG Eurowings Luftverkehrs AG LSG Lufthansa Service Holding AG Lufthansa Cargo AG Lufthansa Cityline GmbH (Chairman) Lufthansa Technik AG Münchener Rückversicherungs-Gesellschaft AG Thomas Cook AG HEICO Corp. Werner Neugebauer * Regional Executive Officer of IG Metall Bavaria Franz Oberländer * Member of the Works Council, Munich Anton Ruf * (from ) Director Technical Integration Dr.-Ing. Dieter Soltmann (until ) Former general partner of Spaten-Franziskaner-Bräu KGaA Bankhaus BethmannMaffei OHG Deutsche Postbank AG Löwenbräu AG (Chairman) Müller-Brot AG Münchener Tierpark Hellabrunn AG Bayerische Rundfunkwerbung GmbH Prof. Dr. Jürgen Strube Chairman of the Board of Management of BASF AG Allianz Lebensversicherungs-AG Bertelsmann AG (Deputy Chairman) Commerzbank AG Fuchs Petrolub AG (Chairman) Hapag-Lloyd AG Linde AG Werner Zierer * Chairman of the Works Council, Regensburg * Employee representative ** Mandates Membership of other Supervisory Boards and comparable boards with a supervisory function in Germany and abroad 22

23 Members of the Board of Management Dr. Helmut Panke Chairman Microsoft Corp. UBS AG Ernst Baumann Human Resources (Industrial Relations Director) Krones AG Dr. Michael Ganal Sales and Marketing BMW Brilliance Automotive Ltd. Prof. Dr.-Ing. Burkhard Göschel Development and Purchasing Stefan Krause Finance BMW Brilliance Automotive Ltd. (Deputy Chairman) Dr.-Ing. Norbert Reithofer Production BMW Brilliance Automotive Ltd. BMW Motoren GmbH (Chairman) BMW Österreich Holding GmbH (Chairman) BMW (South Africa) (Pty) Ltd. (Chairman) Executive Director: Dr. Hagen Lüderitz (until ) General Counsel: Dr. Dieter Löchelt 23

24 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG Principal Subsidiaries Principal subsidiaries of BMW AG Equity Net result Capital at 31December 2004 investment in euro million in euro million in % Domestic 1] BMW Bank GmbH, Munich 2] BMW Finanz Verwaltungs GmbH, Munich BMW INTEC Beteiligungs GmbH, Munich 2] softlab GmbH für Systementwicklung und EDV-Anwendung, Munich BMW Ingenieur-Zentrum GmbH + Co., Dingolfing BMW Maschinenfabrik Spandau GmbH, Berlin BMW Leasing GmbH, Munich 2] BMW Hams Hall Motoren GmbH, Munich 3] BMW Fahrzeugtechnik GmbH, Eisenach 2] BMW M GmbH Gesellschaft für individuelle Automobile, Munich 2] 4] 100 1] In the case of German affiliated companies, based on financial statements drawn up in accordance with HGB. 2] profit and loss transfer agreement with BMW AG 3] profit and loss transfer agreement with a subsidiary of BMW AG 4] below euro 0.5 million 5] In the case of foreign affiliated companies, based on financial statements drawn up in accordance with uniform IFRSs accounting policies. Equity and net result are translated at the closing rate. 24

25 Principal subsidiaries of BMW AG Equity Net result Capital at 31December 2004 investment in euro million in euro million in % Foreign 5] BMW Österreich Holding GmbH, Steyr 1, BMW Motoren GmbH, Steyr BMW Austria Gesellschaft m.b.h., Salzburg BMW Holding B.V., The Hague 5, BMW Japan Corp.,Tokyo BMW Japan Finance Corp.,Tokyo BMW (South Africa) (Pty) Ltd., Pretoria BMW (Schweiz) AG, Dielsdorf BMW Finance N.V., The Hague BMW Overseas Enterprises N.V., Willemstad BMW Italia S.p.A., Milan BMW France S.A., Montigny le Bretonneux BMW Australia Finance Ltd., Melbourne, Victoria BMW Belgium Luxembourg S.A./N.V., Bornem BMW Australia Ltd., Melbourne, Victoria BMW Canada Inc., Whitby BMW Sverige AB, Stockholm BMW Korea Co., Ltd., Seoul BMW Nederland B.V., The Hague BMW New Zealand Ltd., Auckland BMW (UK) Holdings Ltd., Bracknell 1, BMW (UK) Manufacturing Ltd., Bracknell BMW (GB) Ltd., Bracknell BMW Financial Services (GB) Ltd., Hook BMW (UK) Capital plc, Bracknell BMW Malta Ltd., Valletta BMW Malta Finance Ltd., Valletta BMW Coordination Center V.o.F., Bornem BMW España Finance S.L., Madrid BMW Ibérica S.A., Madrid BMW de Mexico, S.A. de C.V., Mexico City BMW (US) Holding Corporation, Wilmington, Del BMW of North America, LLC, Wilmington, Del. 1, BMW Manufacturing, LLC, Wilmington, Del BMW Financial Services NA, LLC, Wilmington, Del BMW US Capital, LLC, Wilmington, Del

26 BMW AG in figures 2 Balance Sheet at 31 December 4 Income Statement 5 Notes 6 Auditors Report 19 Members of the Supervisory Board 20 Members of the Board of Management 23 Principal Subsidiaries BMW AG 24 BMW AG 10-year Comparison 26 BMW AG 10-year Comparison Revenues euro million 14,603 16,581 Change % Export ratio % Vehicle production Automobiles units 595, ,341 Motorcycles (including C1) 1] units 52,653 48,950 Sales volume Automobiles units 589, ,642 Motorcycles (including C1) 1] units 51,930 48,659 Capital expenditure euro million Depreciation and amortisation euro million Workforce at year-end 58,932 59,420 thereof wage-earners 37,190 37,128 thereof salary-earners 18,640 18,968 Non-current assets euro million 4,310 4,698 Current assets and prepayments euro million 3,746 4,081 Subscribed capital euro million Reserves euro million 2,572 2,714 Equity euro million 3,214 3,372 as % of non-current assets % Long-term liabilities 2] euro million 1,068 1,197 Long-term equity and liabilities 3] euro million 4,282 4,569 as % of non-current assets % Balance sheet total euro million 8,056 8,779 Cost of materials euro million 9,040 10,528 Personnel costs euro million 2,857 3,144 Income taxes euro million Net profit euro million Dividend euro million per share of common stock 5] euro per share of preferred stock 5] euro ] including BMW F650 assembly at Aprilia S.p.A. from1995 to1999 2] Registered profit-sharing certificates, special untaxed reserve (only to 2002), pension provisions, liability to BMW Unterstützungsvereins e.v., liabilities falling due later than one year 3] Equity, long-term liabilities 4] Proposed by the Board of Management 5] until1998 nominal value of DM 50 per share; from1999 nominal value of euro1per share 26

27 ,340 19,828 21,770 25,276 29,993 35,315 36,881 40, , , , , ,730 1,090,258 1,118,940 1,250,345 54,933 60,152 69,316 93, ,213 97,553 89,745 93, , , , , ,521 1,082,735 1,117,267 1,241,659 55,983 58,652 68,094 88,194 98, ,418 93,625 91,797 1,046 1,004 1,104 1,215 1,610 2,140 2,293 2, ,093 1,222 1,322 1,535 60,593 62,747 63,785 66,262 69,939 73,283 75,969 77,252 37,244 38,241 37,774 38,546 40,385 41,239 41,933 41,741 19,829 20,697 21,970 23,513 24,997 26,894 28,404 29,532 5,198 5,308 4,372 8,333 9,106 10,469 11,386 10,893 4,507 5,758 6,424 7,124 6,359 6,385 8,096 8, ,844 3,840 3,846 3,867 3,890 4,171 4,188 4,516 3,553 4,732 4,786 4,849 4,913 5,196 5,254 5, ,239 1,384 1,518 1,650 1,985 2,316 2,834 3,849 4,792 6,116 6,304 6,499 6,898 7,512 8,088 9, ,705 11,066 10,796 15,457 15,465 16,854 19,482 19,803 11,734 13,174 14,418 17,355 21,341 24,857 26,190 29,501 3,198 3,516 3,722 4,002 4,596 4,762 5,398 5, ] ] ] 27

28 Financial Calendar Interim Report to 31 March May 2005 Annual General Meeting 12 May 2005 Interim Report to 30 June August 2005 Interim Report to 30 September November 2005 Contacts Business Press Telephone +49 (0) (0) Fax +49 (0) presse@bmwgroup.com Investor Relations Telephone +49 (0) (0) Fax +49 (0) ir@bmwgroup.com Further information about the BMW Group is available on the internet address