BMW Group Corporate Communications

Transcription

1 15 May 2003 Embargo: 15 May :20 a.m. CEST Check against delivery Statement by Dr. Helmut Panke,, 83rd Annual General Meeting of BMW AG, Munich, 15 May 2003 Dear Shareholders and Shareholder Representatives, Dear Associates and Guests, Ladies and Gentlemen, On behalf of the entire Board of Management, I bid you a cordial welcome to the 83rd Annual General Meeting of BMW AG. I also extend this welcome to all viewers listening in over the internet. Welcome to all of you, Ladies and Gentlemen! What issues will I address today? First, I will state why and in what way the BMW Group is consistently pursuing its premium brand strategy. Then, referring to the year of business under report, I will show you that this strategy is taking us in the right direction. Finally, I will provide an outlook indicating how the BMW Group will continue to apply and pursue this strategy in the foreseeable future. First, therefore, let me move right on to our strategy: Firma Bayerische Motoren Werke Aktiengesellschaft Postanschrift BMW AG München Telefon (+49 89) Internet

2 Seite 2 Clear position crucial to the success of a company. The factor crucial to the economic success of a company, in my view, is that the company must be aware of its strengths. This also means giving up the idea that a company can do everything with the same standard of quality. On the contrary: it is more likely that a company trying to do everything equally well will not succeed in living out and implementing its real strengths. The BMW Group knows its strengths. The BMW Group knows its strengths. To be specific, we know what we can do and we know what we cannot do and we know this from our own experience. Concentrating on authentic premium products. We know that we are always particularly successful when we offer our customers authentic premium products products with substance excelling through emotion uncompromising engineering, innovative technology, and supreme quality. In practice, this makes us successful in the management of powerful premium brands with a clear and distinct profile, genuine authenticity,

3 Seite 3 and an equally genuine heritage. BMW Group pursuing an uncompromising premium brand strategy. In this situation it is only appropriate and consistent for the BMW Group to pursue an uncompromising premium brand strategy clearly focusing on the strengths of the company. Again to be specific, we are focusing, through our brands and products, exclusively on the selected premium segments of the markets in which we operate. We play an active role wherever we are able to use our strengths in full in a competitive environment, wherever we are able to outperform others, since it is there and only there that we can be really successful. Structured brand and product portfolio with the BMW, MINI, and Rolls-Royce brands. In our premium brand strategy we are concentrating on a clearly structured portfolio of brands and products: Through the MINI brand we have established the premium standard in the small car segment. Our core BMW brand, by tradition, has always occupied the premium segments of the midrange and luxury performance markets. Since the beginning of this year, we have also been in the topmost segment of the market with Rolls-Royce as a truly outstanding brand.

4 Seite 4 BMW Group the only multi-brand car maker in the world not operating in volume segments. This makes us the only multi-brand manufacturer in the world not operating in the volume segments of the automobile market. This clear focus on premium offers a most significant advantage. From development through production all the way to marketing, we concentrate consistently on premium and do not make the slightest compromise. With our clearly profiled premium brands, our clearly structured product portfolio with genuine substance, and our strategy based on the strengths of the company, we have a perfectly balanced, harmonious corporate concept. Fiscal 2002 confirms strategic orientation. Particularly the 2002 year of business proves that we are going the right way with our strategy, our brands and our products: The year 2002 was the most successful year ever in the history of the BMW Group, showing new records in deliveries, revenues and earnings. BMW Group up in all areas of business. In the 2002 year of business the BMW Group improved in all areas of business: with our cars, with our motorcycles, and with our financial services.

5 Seite 5 Together with the invitation to today's meeting, we already sent you the figures for our 2002 year of business. Since, moreover, we have further copies of our Annual Report at your disposal here today, I will be brief in my report on the year of business under review, focusing only on the most essential key issues. First, a few comments on the Automobiles Segment. BMW Group: approximately 1.06 million cars delivered to customers ( %). Having delivered some 1.06 million BMW and MINI cars to customers worldwide, the BMW Group showed an increase in customer deliveries in the year under report by 16.7 per cent against the backdrop of a stagnating overall market. In absolute terms, in turn, our customer deliveries were up over the previous year by almost 152,000 cars. BMW brand: approximately 913,000 cars delivered to customers (+ 3.7 %). The BMW brand continued on its successful course in the year 2002, with approximately 913,000 BMW cars being delivered to customers the world over 3.7 per cent more than in the previous year. Worldwide growth by more than 32,500 BMW cars exceeds the overall increase in deliveries in 2002 of our two main German competitors together. MINI firmly established as a second cornerstone. Another major reason for the success of the BMW Group in fiscal 2002 was the firm establishment of the MINI brand as a second cornerstone of the Group in all major international markets in addition to the successful BMW brand.

6 Seite 6 MINI brand with sales exceeding 144,000 units approximately 40 % above our expectations. In 2002 we delivered more than 144,000 MINI brand cars to customers, exceeding our original expectations by approximately 40 per cent and making MINI a huge success right from the start. Indeed, MINI proves that it is by all means possible to successfully market a small car in the premium range, meaning that premium is definitely not a question of size, but rather a question of the car's concept and its position in the market. Motorcycles segment accounts for 103,000 units delivered (+8.1%); 10th record year in a row. Accounting for more than 103,000 units sold, the Motorcycles Segment continued the long succession of record years already reported. In all, we delivered some 92,600 BMW motorcycles and well over 10,400 C1s to customers, deliveries in the Motorcycles Segment thus increasing by 8.1 per cent over the 2001 year of business and making 2002 the 10th record year in a row. Financial Services Segment business volume euro 26.5 billion (+ 4.7 %). In the Financial Services Segment the volume of business was up by 4.7 per cent to euro 26.5 billion. In the year of business under review more than 36 per cent of all new BMW Group cars sold worldwide were financed or leased by Financial Services. In all, we may state that your company is continuing on a successful course in all three business segments Automobiles, Motorcycles, and Financial Services.

7 Seite 7 Reflecting this success in business, we have a growing need for employees since the increase in deliveries last year was too significant to be handled by the improvement of productivity alone. More than 5,100 new jobs created in In the 2002 year of business we therefore created more than 5,100 new jobs, 3,280 thereof in Germany alone. Like in the year 2001, this again makes us the biggest creator of new jobs in our country. An additional 370 apprenticeships. BMW AG established 370 additional apprenticeships in the year 2002, once again living up in full to our responsibility to society. At the end of 2002, almost 4,200 young people had an apprenticeship with the BMW Group. BMW Group employing some 101,400 associates worldwide at the end of Worldwide, the BMW Group had a total workforce on 31 December 2002 of approximately 101,400 associates. Adjusting for operations no longer with the Group, we had a comparable workforce of approximately 96,300 associates at the end of This marks an increase in 2002 by 5.3 per cent. Revenues and earnings of the BMW Group also marked new all-time highs in the 2002 year of business.

8 Seite 8 New record revenues of euro 42.3 billion (+ 9.9 %). BMW Group revenues were up in 2002 to a new record of approximately euro 42.3 billion, an increase by 9.9 per cent over 2001, which was already a very successful year. This percentage increase marks a peak value throughout the entire German car industry. New record in ordinary business activities: euro 3.3 billion. The Group profit of ordinary business activities amounted to a record figure of approximately euro 3.3 billion pre-tax in Subdivided by segments, our earnings are as follows: The profit from ordinary business activities in the Automobiles Segment was up over the previous year by more than 3.3 per cent to euro 2.9 billion. The profit from ordinary business activities in the BMW Motorcycles Segment, in turn, improved once again over the previous year, this time by 1.7 per cent to euro 60 million. In the Financial Services Segment the profit from ordinary business activities was up by 8.2 per cent to euro 422 million, again a new record.

9 Seite 9 Group equity euro 13.9 billion ( %). The Group's equity was up by 28.8 per cent to euro 13.9 billion, our equity ratio increasing by 4 percentage points to 25 per cent. With the overall profit from ordinary business activities in 2002 amounting to euro 3.3 billion pre-tax, we have significantly improved the Group's earnings over the previous year all the more so as special, non-recurring effects of the sale of real estate no longer required for operating purposes had a positive impact on operating results in Significant upfront expenditure on the Group's product and market offensive incurred once again in Particularly in the light of this new record result, it is most remarkable to note that in 2002 we once again made significant investments in our product and market offensive: Compared with 2001, we increased our capital expenditure by euro 333 million and spent an extra euro 448 million on research and development, as shown in our Balance Sheet and, respectively, Profit and Loss Account. In other words, capital expenditure in 2002 in these two areas was well over euro 780 million higher than in the previous year, clearly expressing our commitment to the future. Despite this substantial increase in expenditure, we have succeeded in once again improving the Group's earnings in 2002 over the previous year. Clearly, this underlines the exceptional performance of the BMW Group yet another time.

10 Seite 10 Capital expenditure financed completely out of cash flow. As in the previous years, we were able in 2002 to once again finance this capital expenditure completely out of the Group's cash flow amounting in the year under report to euro 4.4 billion and thus achieving a new record. Return on sales of 7.8 %. In consideration of our substantial expenditure on the future, the Group's return on sales pre-tax remains substantial, amounting to 7.8 per cent following 8.4 per cent in the previous year and thus ranking far above average in the car industry. Reflecting the decrease in profit taxes by 7.2 per cent versus the previous year, the Group's overall tax ratio is down in the year under report by 3.7 percentage points to 38.7 per cent net profit of euro 2.02 billion (+ 8.3 %). As a result, the net profit of the BMW Group exceeded the two-billion mark for the first time in 2002, amounting to euro 2.02 billion and outperforming the previous year's figure by 8.3 per cent. The result per share is euro 3.0 per ordinary share and euro 3.02 per preferred share, versus euro 2.78 and, respectively, euro 2.80 in the previous year.

11 Seite 11 Payment of an unchanged dividend per common and preferred share. The Board of Management and the Supervisory Board advise the Annual General Meeting to use the unappropriated profit available for distribution in BMW AG of euro 351 million for payment of an unchanged dividend of 52 euro cent per common share and 54 euro cent per preferred share, each of a nominal value of euro 1.-, on the stock capital entitled to dividends. Words of thanks to shareholders, supervisory board, associates, dealers, importers, and suppliers. At this point, Ladies and Gentlemen, speaking on behalf of the entire Board of Management, I wish to thank all Shareholders for the confidence, trust and good faith they place in the BMW Group. We see this as our commitment for the future. I also wish to most cordially thank the Supervisory Board both the representatives of shareholders and employees for our very good and constructive cooperation. The associates of the BMW Group the world over also deserve our sincere gratitude. They are the people who, through their great commitment, outstanding efforts and excellent performance, made the success of the BMW Group possible in the first place. Last but certainly not least, the 2002 record year was only made possible by the great personal commitment and motivation of our dealers and importers within the Group's worldwide sales organisation, and by our suppliers.

12 Seite 12 I therefore express my cordial thanks also to those outstanding contributors. The 2002 year of business under report, despite all the records and achievements mentioned, does not give us any reason to sit back and rest on our laurels. On the contrary, we intend to further increase our activities and success, and we are therefore implementing our strategy consistently step by step, turning the decisions taken into reality. Growth and expansion strategy. Two factors are absolutely crucial to us in this context: growth and expansion. We are growing with and through our existing model portfolio in our well-established markets. At the same time we are expanding with and through new products into new segments, creating new regional highlights in the process. Through this expansion we are setting the foundation for further growth in future. Growth with existing model series. Particularly new and updated BMW brand models set the basis for the growth we expect in the 2003 year of business: The changeover to the new BMW 5 Series this summer, a core model within our range, is of utmost significance in this context.

13 Seite 13 In all, we have sold more than 1.4 million units of the current 5 Series introduced into the market in late per cent more than our total sales of the previous model. Now we intend to continue the outstanding success of the current 5 Series with the new model. In early March we introduced updated versions of the BMW 3 Series Coupé, Convertible and Compact, that is new, important variants within this outstanding series. Last year alone, these model variants accounted together for one-fifth of all BMW brand customer sales. On 22 March we introduced the BMW Z4 here in Europe, following the launch of this new car in North America in October All of these new models are intended to generate further growth. To be specific, this means it is our objective to sell more of these cars throughout their lifecycle than with the former model. BMW motorcycles continuing on their path of ongoing growth. The Motorcycles Segment also continued on a path of ongoing growth in its 80th year. A total of four new motorcycles and model variants introduced in 2002 and 2003 represents a highly attractive addition to the model range in each respective segment of the market.

14 Seite 14 So here, too, with our motorcycles, we are consistently pursuing our premium brand strategy, where we plan in the years to come to further focus our brand profile through the introduction of new models. Expansion into new segments with new cars in In our process of expansion, we are entering the market this year with some brand-new cars, expanding into segments in which so far we were not represented. Rolls-Royce. The starting point was the launch of the new Rolls- Royce Phantom at the beginning of the year, taking the BMW Group into the supreme high-end segment. This car continues a heritage of the most demanding standard in every respect, with Rolls-Royce being acknowledged by tradition as the supreme icon in the world of motoring. Creating the Rolls-Royce Phantom, we have now established a modern interpretation of the brand living up, as we are convinced, to the demands and expectations of the most exclusive customers in every respect. Integrated within the BMW Group, Rolls-Royce Motor Cars will now be able to once again develop the full potential of a unique brand. Rolls-Royce Motor Cars Ltd. took up business activities on 1 January 2003.

15 Seite 15 We have completed the Manufacturing Plant in Goodwood/England, built up an international dealer organisation, and, at the beginning of the year, delivered the first Rolls-Royce Phantom to the first customer. BMW X3 and BMW 6 Series. The BMW brand is also expanding. Towards the end of the year, as announced, we will be introducing the new BMW X3 Sports Activity Vehicle and the new BMW 6 Series Coupé. Both of these models are taking the BMW brand into segments where, like in the case of the X3, we have never been represented before or where, as in the case of the 6 Series Coupé, we have no longer been represented in the last 15 years. Expansion of the MINI model range with the MINI One D. We are also remaining in the offensive this year with the MINI brand, continuing to expand the MINI model range in Europe with the introduction of the MINI One D, the first-ever MINI with a diesel engine. Conceived specifically for European markets, this model will further enhance the overall appeal of MINI, the MINI One D entering the Italian market in just a few days' time. The other European markets will follow either this month or at the beginning of next month, with the MINI One D entering the German market on 14 June. Significant role of BMW Financial Services. BMW Financial Services play an important role in our process of growth and expansion.

16 Seite 16 The first and foremost objective of BMW Financial Services is to loyalise those customers who already have a BMW Group vehicle and to win over new customers. All products offered by BMW Financial Serivices therefore serve these objectives either directly or indirectly. Expansion in new markets in In the current year of business, Ladies and Gentlemen, we are expanding not only in terms of our products, but also in new markets: On 1 January of this year our new subsidiary in Poland took up its business activities. In the course of the year we will be establishing another new subsidiary in Malaysia. With these two new subsidiaries we will have our own national sales companies in no less than 28 countries. China a fundamental milestone in our process of globalisation: production and sales joint venture in Shenyang. China is a fundamental milestone in our process of globalisation this year. Together with our partner Brilliance China Automotive Holdings, we have established a production and sales joint venture in Shenyang. Investment of euro 450 million in the plant by Up to the year 2005, the partners in this joint venture will be investing euro 450 million in the plant.

17 Seite 17 The joint venture is taking over selected parts of the new plant built in Shenyang by our partner, Brilliance, converting these facilities into a fully-fledged production facility reflecting the high worldwide quality standards of the BMW Group. Production scheduled to begin in late Production is scheduled to start in China towards the end of In the medium term we plan to build 30,000 BMW 3 and 5 Series a year in Shenyang, with a workforce of approximately 3,000 associates. All cars built in Shenyang are to be sold in the rapidly growing Chinese automobile market. China the fastestgrowing car market in the world. The potential of this market for the future is huge: Many experts believe that in the next 10 years the Chinese car market will be the fastest-growing car market in the world. In 2002 alone the growth rate of passenger car sales was 50 per cent over the previous year. Despite this rapid growth, the Chinese car market, measured in terms of the local population, still offers an enormous potential for the future. In the year 2002 the total number of passenger cars registered in China was approximately 6.5 million a figure which converts to five cars per 1,000 inhabitants.

18 Seite 18 The international average is 133 passenger cars per 1,000 inhabitants, meaning that the Chinese car market still has an enormous margin for upward development. Demand for premium cars in China now growing. A further point is that growing demand specifically for premium cars is now starting to develop in China: From sales of premium cars in China have almost tripled. And forecasts indicate that the substantial market growth of premium cars in China will continue in future. BMW brand with top image in China. The BMW brand already has an outstanding top image in China an advantage not to be underestimated in a market where the brand is almost everything. Given this situation, it is only logical and consistent to take the decisive step this year in our process of expansion: Recognising your opportunities, as in this case, you have to act consistently and full of determination. Which is precisely what we are doing. Deliveries doubling in Asia in the next five years. Making this move to China we are continuing to consistently pursue our long-term Asian strategy: We have already stated that we plan to double our deliveries in Asia in the next five years to 150,000 units. In the long term we plan to develop and expand the Asian region into the fourth strong pillar of our global success, together with Germany, Western Europe, and North America.

19 Seite 19 In view of the large number of new model variants and production ramp-ups now in the pipeline, we must build up new capacities not only in emerging markets like China. BMW Group investing euro 3.4 billion on expansion and development of plant structure. Last year alone, therefore, we resolved capital expenditure of euro 3.4 billion on the expansion and development of our plant network and structure, and we have already spent some of this money. And despite the process of globalisation, we are continuing to make significant investments in Germany. Biggest single item of capital expenditure: euro 1.3 billion spent on the new plant in Leipzig. The largest individual item of capital expenditure amounting to euro 1.3 billion is our new plant in Leipzig, where everything is proceeding according to plan: Last July we started construction work and the plant buildings will be largely completed by autumn Starting in spring of this year, we are installing the interior equipment and facilities step-by-step, and pilot production of the BMW 3 Series will be commencing in summer Then, in spring 2005, we will deliver the first car built in Leipzig to the market.

20 Seite 20 By the end of 2002 we had already hired 500 associates for Leipzig, more than 300 of whom are currently being trained at our plants in Bavaria. And in the course of this year, the number of associates in Leipzig will increase to approximately 1,200. Looking at the bottom line, we may sum up our activities in the 2003 year of business in very clear and simple terms: We are remaining on course and we are continuing to implement our product and market offensive step-by-step, with a clear focus and powerful determination. Last week we published our figures on the first quarter of the current 2003 year of business. Q1 2003: Car deliveries slightly up, Group revenues and profit from ordinary business beneath previous year, as planned. Whilst BMW Group car deliveries in the first quarter 2003 have increased slightly over the same period last year, Group revenues and the profit from ordinary business activities have declined versus Q Development expected as a result of model cycle. This is precisely the development we had expected due to the decrease in BMW brand deliveries in the first half of 2003 on account of our model cycles and the continuing substantial expenditure made upfront on our product and market offensive.

21 Seite 21 The development of BMW stock prices following the announcement of our figures for the first quarter shows that the money market shares our views. What are our expectations for the ongoing course of the year? BMW Group expects moderate improvement of the economic situation. With geopolitical insecurity decreasing, we once again see the ongoing economic prospects in a more positive light. Consumer sentiment is beginning to improve in major markets, but the general level of confidence among both consumers and companies alike remains low. The trend towards improvement in this area is moreover not yet reflected by specific figures in the market. In some European countries the depressed state of the labour market and the lack of far-reaching structural reforms make it unlikely that economic development will once again pick up quickly. In all, therefore, we initially expect only moderate improvement of the economic situation. It would nevertheless appear that in the second half of the year we will see increasing growth dynamics the world over. Positive effects of our product and market offensive coming to bear in the second half of the year. As indicated, the development of the BMW Group this year is driven first and foremost by our model cycle.

22 Seite 22 The positive effects of our product and market offensive will not come to bear until the second half of the year when our new models enter the market. As we already stated at our Annual Accounts Press Conference, we believe, given this situation, that the current decline in BMW brand sales will not only be set off by the end of the year, but may rather turn around into a new record figure exceeding the existing record in customer deliveries achieved in Positive development of customer deliveries expected with all brands in Assuming ongoing stabilisation of the geopolitical situation, a related decrease in economic insecurity, and a determined policy of economic and sociopolitical reforms in Germany, we maintain our plan to increase customer deliveries in 2003 of all BMW Group brands versus Aiming for same Group result in 2003 as in the previous year. Given these conditions and despite the extraordinary expenditure made upfront on our product and market offensive, with the level of expenditure remaining substantial in the Automobiles Segment also in 2003, the BMW Group seeks, looking at the entire year, to once again achieve the same overall Group result as in So much, Ladies and Gentlemen, on the current situation in this year of business.

23 Seite 23 Referring to our current product and market offensive, I wish to emphasize one message in particular: Product and market offensive: BMW Group plans to sell 1.4 million cars in Our product and market offensive is not a one-off, nonrecurring "burst" of power. We are not stepping up the pace for a short dash, but are rather shifting up to a higher gear on a permanent basis. We plan to increase customer deliveries to approximately 1.4 million units by the year But that is an interim perspective, nothing but a specific figure on a specific date. It is not our objective as such and it not the final benchmark we have set ourselves. The reason, quite simply, is that the BMW Group's product and market offensive does not have a specific terminal point determined in advance. It is an ongoing activity through which we will consistently expand and enhance the success of our company. Market launch of the BMW 6 Series Convertible and the BMW 1 Series in We have already communicated some specific steps in this process of development going beyond the 2003 year of business: Next year, for example, we will be introducing the new BMW 6 Series Convertible and the new BMW 1 Series.

24 Seite 24 MINI model range being enlarged by a four-seater convertible. There has been speculation recently about an open version of the MINI. Indeed, the MINI brand is an important pillar in our premium brand strategy in which we are continuing to make the necessary investments. I may therefore confirm that the MINI model range will be enlarged by a four-seater convertible and that we wish to win over new customers in the small open-car segment. The MINI Cabrio will be a further highlight in the MINI's story of success. We are also looking far beyond the years 2004 and 2005 with the BMW brand, with more new BMWs in the pipeline also in the years to come. Whilst I do not wish to go into any details in this respect today, let me tell you that we are keeping a very close eye on the development of the individual segments and that we are carefully considering all options to expand with and through the BMW brand into segments in which we have not been represented so far. Wherever we see an appropriate brand potential for premium products and wherever we are able ourselves to make a promising, authentic offer, we will do so. If this is not possible, in turn, our answer will always be "No". The customer will always be able to rely on one important factor with the BMW Group: We will never introduce a boring vehicle into the market.

25 Seite 25 Because when we speak of "authentic", we always mean 100 per cent solutions for our customers. And with our brands we will expand only into segments where our brands are able to show their strengths and qualities. Our future plans for expanding into new markets look similar: The prerequisite in this case is a recognisable demand for premium products, as is the case today, for example, in China. It is not sufficient to simply assume that in a few years a premium potential might develop in a specific market. Rather, we will wait in such a case until the right time has come for the BMW Group to make its move. It is our objective to establish and capitalise on all market and product potentials in the long term, focusing in the process on our strengths and all the opportunities our Company has. Target-oriented development of the BMW Group. Precisely this is why we have followed a specific, targetoriented process of development clearly borne out, for example, by our products: A few years ago we were a one-brand manufacturer with three model series. Then, by the end of last year, we developed into a company with two brands and 7 model series.

26 Seite 26 Right now we have three brands and 8 model series. Consistent Group model range by fall As the next step by autumn 2004 we will develop into a company with three brands and 10 model series. And it is quite conceivable that in a few more years we will be a company with "10 plus x" model series. As I stated before, the expansion of the BMW brand will not end with the new 6 Series and the new 1 Series. Looking at the development of our global presence in the market, we see a similar trend: At the end of 1973 we were a company with five sales subsidiaries and four production sites in Germany, plus one production location in South Africa. At the end of 1983 we were a company with 13 sales subsidiaries and 10 production sites in six countries. At the end of 2003 we will be a company with 28 sales subsidiaries and 24 production sites in 15 countries. And this does not even count our new plant in Leipzig.

27 Seite 27 Ladies and Gentlemen, No other premium manufacturer has the benefit of such an internationally oriented network in production and sales. But again, it is clear that here, too, we will continue to establish further subsidiaries and production capacities in future whenever this is appropriate to further boost the success of the company. The BMW Group set to move up to new dimensions: we will shape the future. In other words, with its activities in terms of markets and products, the BMW Group is set to move up into a new dimension in both quantity and quality we will be a company not only fulfilling the challenges of the future, but rather shaping the future ourselves. Let me emphasize that we are doing this with a clear focus, pursuing our course consistently, with a clear target orientation, and full of determination. That means we determine the time and scope of our activities ourselves. We know our strengths, we have a clear strategy, and we have clear criteria stating what must be done and when.

28 Seite 28 We will continue to act through and out of our strengths, remaining on course and not allowing ourselves to be moved in the wrong direction by shortlived trends. We will master the fast pace of growth and expansion particularly because we are able to rely on a strong corporate culture, highly motivated associates, and strong partners in both our dealer organisation and our supplier base. Ladies and Gentlemen, Allow me to briefly sum up: 1. The BMW Group is looking back at its most successful year in business ever. 2. This year we will follow along these successful lines. And: 3. Through our product and market offensive, we are now, at the same time, establishing the foundation today for the ongoing growth of our success in business tomorrow.

29 Seite 29 We are coming from a position of strength and we are on our way towards an even stronger position in future. Ladies and Gentlemen, Thank you very much for your attention.