BMW GROUP LOOKING AT FURTHER GROWTH
At this year's Annual General Meeting of BMW AG, Helmut Panke, the Chairman of the Board of Management, highlighted the current strength of the Company: "Consistently expanding its product portfolio and developing new markets, the BMW Group has grown into a new dimension. Today we are stronger than ever before in every respect. We stand on a healthy foundation and will be one of the most profitable automobile manufacturers in the world also in future."
In the 2003 year of business under report the BMW Group achieved new sales records with all its brands and maintained its high level of profitability despite significant up-front expenditure on new models. The Company has also made a good start into the current 2004 business year, with customer deliveries, revenues and earnings in the first quarter all exceeding the corresponding figures of the previous year. This upward trend in the first three months then continued in April, deliveries of 101,380 BMW, MINI and Rolls-Royce cars to customers outperforming the previous year's figure by 10.4% (previous year: 91.843). This represents an increase in deliveries as of April by 5.1% to 371,376 units (previous year: 353,431).
Focusing on these highlights, Panke set forth clear objectives for the year as a whole in his statement to shareholders: "We will achieve new records in 2004 in both sales volume and earnings. The BMW Group is therefore entering a period of growing returns generated by our ongoing product and market initiative."
Panke also took the opportunity to announce the continuation of the BMW Group's strategy of growth and expansion: "The BMW Group remains in the offensive. We see further potentials for new vehicle concepts and for winning over new markets. The BMW Group will capitalise on these potentials with a clear focus, in this way broadening the foundation for its growth perspectives."
Successful financial year 2003: new sales record achieved
The BMW Group set up a new record of 1,104,916 BMW, MINI and Rolls-Royce cars delivered to customers in the 2003 financial year. This was 4.5% above the previous year's record (2002: 1,057,344 cars).
Group revenues in 2003, at euro 41,525 million, were 2.1% lower than in the previous year as a result of the low exchange rate of the US dollar against the euro (2002: euro 42,411 million). Adjusted for fluctuations in exchange rates, the Group achieved an increase in revenue of 4.2%. At euro 3,205 million, the Group's profit from ordinary activities almost reached the previous record figure reported in 2002 (-2.8% vs. 2002: euro 3,297 million). The net profit of the BMW Group was euro 1,947 million, down 3.6% against the previous year (2002: euro 2,020 million).
At the end of 2003, the BMW Group had a worldwide workforce of 104,342 associates, 2.9% more than at the end of 2002. Three-quarters of the BMW Group's associates are based in Germany, where the workforce increased to 78,569 associates (+3.2% / 2002: 76,143 associates). The number of apprentices working for the BMW Group increased once again, with 4,306 young people currently learning a profession throughout the BMW Group, 2.5% more than at the end of the previous year.
Proposed increase in dividend
In view of the sustained high quality of earnings and the positive outlook of business, the Board of Management and the Supervisory Board have proposed an increase in dividends. Subject to approval, the unappropriated profit of BMW AG available for distribution of euro 392 million will be used to pay a dividend of euro 0.58 on each common share (2002: euro 0.52), 12% higher than in the previous year, and a dividend of euro 0.60 for each preferred share (2002: euro 0.54), 11% higher than in the previous year. Share capital entitled to receive dividends amounts to euro 673.5 million (622.2 million common shares and 51.3 million preferred shares, each with a nominal value of euro 1.-).
Good start into the year 2004
At euro 10,805 million, Group revenue in the first quarter 2004 was 4.9% higher than the same quarter of the previous year (1st quarter 2003: euro 10,297 million). The profit from ordinary activities of the Group rose by 2.5% to euro 851 million (1st quarter 2003: euro 830 million). The net profit of the BMW Group for the first quarter was 523 euro million, also 2.5% ahead of the equivalent period last year (1st quarter 2003: euro 510 million). The Group generated earnings per common and preferred share of euro 0.78 (+2.6% / 1st quarter 2003: euro 0.76).
Election of Members of the Supervisory Board of BMW AG
At the Annual General Meeting of BMW AG on 13 May 2004, the election of Members of the Supervisory Board representing the shareholders will take place in accordance with rotational requirements.
As notified after the Supervisory Board meeting on 11 March 2004, the following Members of the Supervisory Board have been proposed for re-election:
Volker Doppelfeld, Arthur L. Kelly, Susanne Klatten, Prof. Dr. rer. nat. Dr. h.c. mult. Hubert Markl, Prof. Dr.-Ing. Dr. h.c. Dr.-Ing. E.h. Joachim Milberg, Stefan Quandt, Prof. Dr. Jürgen Strube, Dr. oec. publ. Hans-Dietrich Winkhaus.
The following persons have not put themselves forward for re-election to the Supervisory Board:
Prof. Dr. Bernd Fahrholz, Dr. -Ing. Dieter Soltmann.
The following persons are proposed for election to the Supervisory Board for the first time:
Franz Markus Haniel, Member of the Board of Directors of Giesecke und Devrient GmbH, and Wolfgang Mayrhuber, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG.
The Employees' Representatives for the Supervisory Board were elected at a Delegates meeting on March 2, 2004.
In the light of the Board's rules relating to age, Volker Doppelfeld, the Chairman of the Supervisory Board of BMW AG, had already decided prior to the Annual General Meeting not to run as the Chairman of the Supervisory Board after this year's Annual General Meeting, in event of his re-election on to the Supervisory Board.
The Supervisory Board has decided by mutual agreement that it will propose the election of Prof. Dr. -Ing. Dr. h.c. Dr.-Ing. E.h. Joachim Milberg as Chairman of the Supervisory Board at the constitutive meeting of the Board in its new composition after the Annual General Meeting.