15.0
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
About This Report
ABOUT THIS REPORT
(PART OF THE COMBINED MANAGEMENT REPORT)
REPORTING CONCEPT
Integrated reporting and corporate strategy
In the BMW Group's view, a key prerequisite for a company's
profitability is that its activities are compatible with external
economic, ecological and social interests. Conversely, profit-
ability is the prerequisite for a company's ability to develop
sustainable and innovative technologies, ensure job security,
and cooperate with all its business partners along a value
chain that is striving to become increasingly sustainable.
For this reason, since the financial year 2020, the BMW Group
has kept stakeholders informed of its business performance
by reporting on an integrated basis. With the Integrated
Group Report 2021, we aim to provide a clear and compre-
hensive insight into the BMW Group and explain our activities
in a transparent, comprehensible and measurable manner.
We are well aware that integrated reporting is among the
subjects of an ongoing discussion currently taking place be-
tween stakeholders, regulators and reporting entities. The
status achieved to date is therefore still subject to constant
review and continuous improvement.
The BMW Group is keen to demonstrate to its shareholders
how economic, ecological and social issues complement
one another and are often mutually dependent, and which
general external conditions influence the company and de-
fine our potential to boost sustainability. For these reasons,
we explain the BMW Group's corporate strategy as well as the
latest developments and the way in which the business is
managed on the basis of key financial and non-financial tar-
gets. KPI Dashboard
On 8 March 2022, the Financial Statements of BMW AG
were authorised for issue by the Board of Management and
the Group Financial Statements approved for publication.
The BMW Group Report combines the management reports
of Bayerische Motoren Werke Aktiengesellschaft (BMW AG)
and the BMW Group in a Combined Management Report.
6
FRAMEWORKS APPLIED
SASB-Index
7 GRI 102-48, 102-49
In light of recent and prospective changes in non-financial
disclosure requirements, including the revision of the Non-Fi-
nancial Reporting Directive at EU level (Corporate Sustain-
ability Reporting Directive), the related development of EU
reporting standards and the establishment of the Inter-
national Sustainability Standards Board (ISSB) under the
umbrella of the IFRS Foundation, the pace of change within the
reporting environment will continue to gather momentum
and increase the extent to which non-financial and financial
disclosures need to be presented on an integrated basis.
The BMW Group is preparing itself for these new trends by
developing its internal control system to ensure that non-fi-
nancial performance indicators are monitored to the same
degree as financial performance indicators. In the year under
report, we also complied with the disclosure requirements of
the (EU Taxonomy] Regulation and expanded our reporting in
line with the requirements of the Sustainability Accounting
Standards Board.
Changes in reporting and outlook for reporting
requirements
About This Report
BMW Group Report 2021
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
Other Information
5
6
352 Contacts
4
144 Disclosures Relevant for Takeovers and Explanatory Comments
143 Internal Control System
124 Outlook, Risk and Opportunity Management
121 EU Taxonomy
BMW Group and Capital Markets
CORPORATE GOVERNANCE
31
28
The Board of Management
27
Statement of the Chairman of the Board of Management
21
157 Notes to the Group Financial Statements
Dialogue with Stakeholders
The BMW Group Report 2021 is based on the following re-
porting and accounting standards:
248 Fundamental Aspects of Corporate Governance
(Part of the Combined Management Report)
259 Independent Auditor's Report
351 Financial Calendar
346 Glossary and Explanation of Key Figures
344 BMW Group Ten-year Comparison
342 Consumption and Carbon Disclosures
341 NFS-Index
337 TCFD-Index
258 Responsibility Statement by the Company's Legal
Representatives
332 SASB-Index
6 OTHER INFORMATION
5
271 Remuneration Report
REMUNERATION REPORT
5
267 Independent Practitioner's Report
321 Further GRI Information
155 Statement of Changes in Equity for Group
Combined Management Report
German Commercial Code (HGB) (among other relevant
legislation)
The BMW Group Report 2021 contains various forward-look-
ing statements concerning future developments that are
based on the current status of the BMW Group's assumptions
and forecasts. These statements are therefore subject to a va-
riety of predictable and unpredictable risks, uncertainties and
other factors, which means that the actual outcome, including
that of the BMW Group's net assets, financial position and re-
sults of operations, its development or performance, could
differ considerably to those statements.
Editorial comments
The key figures presented in this report have been rounded
in accordance with standard commercial practise. In certain
cases, this may mean that figures do not add up exactly to
the stated total and that percentages cannot be derived from
the figures shown.
The BMW Group Report uses also the simplified term "car-
bon" or the abbreviation CO₂ instead of CO₂e. Since not only
carbon dioxide, but also other gases such as methane (CH4)
and nitrous oxide (N₂O) contribute to climate warming to a
varying extent, the impact is converted into so-called CO₂
equivalents (CO₂e).
Summarised disclosures of fuel consumption, carbon emis-
sions and electricity consumption are provided in the section
Consumption and carbon emissions data.
8
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
9
BMW Group in Figures
BMW Group Report 2021
9
STAKEHOLDERS
TO OUR
BMW Group and Capital Markets
31
Forward-looking statements
Dialogue with Stakeholders
The Board of Management
27
Statement of the Chairman of the Board of Management
21
Report of the Supervisory Board
12
28
Connection to figures in the Group Financial Statements
For each topic, an assessment was carried out to identify
figures reported in the financial statements that enable a
better understanding of the NFS, and which therefore need
to be disclosed and explained.
7 GRI 102-46, 102-49
was given to the BMW Group's own business operations,
products and services on the one hand and its business re-
lationships (for example in the supply chain) on the other. In
accordance with statutory materiality requirements, infor-
mation has been aggregated in each case with a view to pro-
viding an understanding of the BMW Group's course of busi-
ness, results of operations and financial position, while also
showing the impact of its activities on the non-financial as-
pects specified in the legislation. A stakeholder survey con-
ducted during the period under report with selected repre-
sentatives from capital markets and academia confirmed our
selection of material topics.
ADDITIONAL INFORMATION
ON THE REPORT
The Group Financial Statements of Bayerische Motoren
Werke Aktiengesellschaft for the year ended 31 December
2021 have been prepared in accordance with International
Financial Reporting Standards (IFRS) as endorsed by the
European Union (EU) and the supplementary requirements
of § 315 e HGB.
Group Financial Statements
UN Global Compact Progress Report: see references in
GRI Content Index (GRI-Index)
Task Force on Climate-related Financial Disclosures
(TCFD) (TCFD-Index)
Sustainability Accounting Standards Board (SASB)
(7 SASB-Index)
Publication and scope
Global Reporting Initiative (GRI) ( GRI-Index), option
"comprehensive"
Furthermore, the following reporting standards and trans-
parency requirements have, for the most part, been integrat-
ed in the Combined Management Report:
Guidelines on Alternative Performance Measures issued
by the European Securities and Markets Authority (ESMA)
German Corporate Governance Code
Taxonomy Regulation (Regulation (EU) 2020/852 of the
European Council and of the European Parliament on the
Establishment of a Framework to Facilitate Sustainable
Investment, and amending Regulation (EU) 2019/2088)
The Combined Management Report is also based on:
German Stock Corporation Act (AktG)
German Accounting Standards (GASS) underpinning
HGB requirements
Combined Non-Financial Statement (NFS) at Group
and Company level in accordance with § 289 b and
§ 315 b HGB. 7 NFS-Index
-
The Combined Management Report is based on the follow-
ing legal frameworks:
The BMW Group Report is published annually to coincide
with the BMW Group Annual Conference most recently
held on 17 March 2021 - and is subsequently available in
both German and English on the BMW Group website. The
7 GRI Content Index is also available on the website as a sepa-
rate document. The reporting period covers the financial
year from 1 January to 31 December 2021. The statements
made in the report relate to the BMW Group reporting entity.
Any deviations are marked accordingly. Nothing significant
has changed in the reporting period with regard to the or-
ganisational structure of the BMW Group. The BMW Group
Report 2022 will be published on 15 March 2023.
External audit
The material topics addressed in the NFS to ensure compli-
ance with § 289 c and § 315 c HGB were determined partly
on the basis of the results of the materiality analysis updated
in 2018, in line with the requirements of the Global Reporting
Initiative (GRI), and partly on the basis of the BMW Group's
own long-term targets. For these purposes, consideration
Material topics addressed in the NFS
The contents of the NFS, in accordance with § 289 b and
315 b HGB, were subjected to an audit to obtain limited
assurance and is denoted with the symbol [...]]. The chapter
7 Dialogue with stakeholders and the additional information pro-
vided in the section Additional GRI Information were also sub-
jected to a limited assurance engagement. Certain individual
parts of the NFS as well as the remainder of the Combined
Management Report were subjected to a reasonable assur-
ance engagement. Information provided in the SASB-Index is
subjected to a limited assurance review on a voluntary basis.
The TCFD-Index refers to the corresponding chapter, in which
the respective test levels are denoted.
PwC has audited the Group Financial Statements and the
Combined Management Report for the year ended 31 De-
cember 2021 and issued an unqualified audit opinion there-
upon. Further information is provided in the Independent Audi-
tor's Report and the Independent Practitioner's Report on
Non-financial Disclosures.
← = Q
Other Information
7 GRI 102-45, 102-48, GRI-Index 102-52
Remuneration Report
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
About This Report
7
The entire report of BMW AG, comprising the Combined
Management Report, the Group Financial Statements, the
disclosures on corporate governance and the additional GRI
information, has been subject to an annual independent au-
dit by PricewaterhouseCoopers GmbH Wirtschaftsprüfungs-
gesellschaft ("PwC" or "Auditor"). The external audit serves
to underpin the reliability and trustworthiness of the infor-
mation contained therein for external users. The external au-
dit supports the Supervisory Board of BMW AG in fulfilling its
auditing duties. Any links and/or disclosures that refer to
additional information outside the BMW Group Report and
the GRI Content Index are not part of the audit. The Remuner-
ation Report 2021 was prepared in accordance with the require-
ments of § 162 of the German Stock Corporation Act (AktG)
and its content audited by PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft.
Corporate Governance
Financial Performance
91
Report of the Supervisory Board
10.3
8.3
22.6
↑
Significant increase to prior year
Significant increase to prior year
Significant increase to prior year
GROUP EMPLOYEES
end of year
DELIVERIES AUTOMOTIVE SEGMENT
in units
DELIVERIES MOTORCYCLES SEGMENT
in units
SHARE OF ELECTRIFIED
VEHICLES IN DELIVERIES
in %
118,909
Slight decrease to prior year
BMW Group Report 2021
3
->
BMW Group in figures
TO THE CHAPTER
Significant increase to prior year
Significant increase compared to
prior year
13.0
↑
Significant increase to prior year
71
Solid increase to prior year
194,261
2,521,514
The diagram provides a simplified overview. Detailed explanations of the KPIs as well as an indication of the scope of the audit can be found in the respective
chapters of the report.
16,060
in %
ROE FINANCIAL SERVICES SEGMENT
its ecological and social contributions.
on the BMW Group's economic performance and
On the way to an electric and digitalised mobility
in a sustainable and circular economy. Report
BMW GROUP REPORT 2021
MOTOR CARS LTD
ROLLS-ROYCE
7 Link to the Online-Report
MINI
CIRCULAR
DIGITAL AND
ELECTRIC,
THE FUTURE IS
M
BMW
GROUP
W
To Our Stakeholders
2
To Our Stakeholders
EBIT MARGIN MOTORCYCLES SEGMENT in %
in %
EBIT MARGIN AUTOMOTIVE SEGMENT
in € million
PROFIT / LOSS BEFORE TAX
KEY PERFORMANCE INDICATORS
BMW Group Report 2021
In 2021, the BMW Group demonstrated how profitability and transformation can go hand in glove, des-
pite tough market conditions. Electric mobility is gathering pace, with delivery figures on a steep up-
ward trajectory. At the same time, the BMW Group is working on digital solutions that make life more
convenient for customers and provide access to a broad range of services. The BMW Group's vision of
a circular economy is gradually taking shape, the ultimate goal being fully sustainable mobility.
Further information is provided in the following report.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
BMW GROUP REPORT 2021
Combined Management Report
Group Financial Statements
Corporate Governance
Overview of the BMW Group
34
About this Report (Part of the Combined Management Report)
5
COMBINED MANAGEMENT REPORT
2
38
CONTENTS
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Contents
To Our Stakeholders
BMW Group Integrated Strategy
149 Income Statement for Group and Segments
12
Employees and Society
80
BMW Group in Figures
9
153 Cash Flow Statement for Group and Segments
3 GROUP FINANCIAL STATEMENTS
Production, Purchasing and Supplier Network
TO OUR STAKEHOLDERS
1
Balance Sheet for Group and Segments at 31 December 2021
151
Products and Mobility Solutions
51
67
To Our Stakeholders
BMW Group Report 2021
->
TARGET ACHIEVEMENT BY 2030
>30%
Share of women in management
positions
Share of electrified cars in total
deliveries
8-10%
TARGET ACHIEVEMENT BY 2025
22%
> 10%
EBT margin Group
FINANCIAL TARGETS
STRATEGIC TARGETS OF THE BMW GROUP
← = Q
Other Information
Remuneration Report
EBIT margin Automotive segment
4
↑
total deliveries
BMW Group Integrated Strategy
TO THE CHAPTER
> 20%
supply chain
Reduction of CO₂ emissions in the
> 50%
Share of fully electrified cars in
Reduction of CO2 emissions in the
use phase of the vehicle
Return on capital employed
Automotive segment
indication of the scope of the audit can be found in the respective chapters of the report.
The diagram provides a simplified overview of the key performance indicators (KPIs) disclosed in the report. Detailed explanations of the KPIs as well as an
80%
Reduction of CO2 emissions per
vehicle produced
> 50%
≥ 18%
Combined Management Report
150 Statement of Comprehensive Income for Group
Corporate Governance
27,567
27,705
29,598
30,044
32,867
9.4
20.3
7
5
3
5
66.7
- 17,306
- 18,875
6
- 19,443
2,748
2,368
98,282
96,855
104,210
98,990
111,239
12.4
2,284
85,742
91,682
80,853
95,476
18.1
2,272
2,173
85,846
87.2
- 14,194
39.9
1,721
3,701
14
-27
29
36
2,312
-8
431
377
808
-390
10,675
9,627
- 404
-19,857
2,172
227
9,899
8,933
7,411
4,830
13,400
7,888
2,194
6,182
2,162
9,870
207
175
194
103
4,499
7,118
6,354
2,567
Corporate Governance
Remuneration Report
Other Information
← = Q
BMW Group in Figures
FURTHER FINANCIAL PERFORMANCE FIGURES
Group Financial Statements
in € million
2018
2019
2020
2021
Change in %
Total capital expenditure¹
2017
Depreciation and amortisation
Combined Management Report
BMW Group Report 2021
Group Financial Statements
22.6
1 The 2018 figures were adjusted due to the change in accounting policy in conjunction with the adoption of IFRS 16 ( Annual Report 2019, Note 6 to the Group Financial Statements).
2 The term "employee" has been redefined with effect from the reporting year 2020 (for definition, see Glossary and explanation of key figures). The figure for 2019 was restated accordingly for comparison purposes (2019 before adjustment: 133,778 employees). For the period 2018 and earlier, the percentage of employees no
longer covered by the new definition is between 7.5 and 8.0 %.
3 The new definition of the term "employee" (see footnote 1) also has an impact on disclosures relating to the percentage of female employees. The 2019 figure was adjusted accordingly for comparison purposes (2019 before adjustment: 17.5 %).
4 Deliveries including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2017: 385,705 units, 2018: 455,581 units, 2019: 538,612 units, 2020: 602,247 units, 2021: 651,236 units).
5 Retail vehicle delivery data for 2020 and 2021 are not directly comparable to the data presented for previous years. See Retail vehicle delivery data in the section Comparison of Forecasts with Actual Outcomes for further information.
To Our Stakeholders
6 EU-27 countries including Norway and Iceland; with effect from 2021, values are calculated on a converted basis in line with WLTP (Worldwide Harmonised Light Vehicles Test Procedure). Values from 2017 to 2020 according to New European Driving Cycle (NEDC).
8 To improve year-on-year comparability, the 2020 NEDC figures were converted to WLTP after adjusting for permissible flexibilities - specifically from 99 g CO₂ / km according to NEDC (including 5 g CO2/km phase-in, 7.5 g CO2/km supercredits and 2.4 g CO2/km eco-innovations) to 135 g CO2/km according to WLTP
(excluding flexibilities). In 2020, a phase-in regulation was accepted, as was the recognition of supercredits. As of 2021, these two simplifications no longer apply for the BMW Group.
9 Flexibilities as defined in the regulatory requirements for 2021 are as follows: eco-innovation with 1.7 g CO2/km (WLTP).
10 Efficiency ratio calculated on the basis of Scope 1 and Scope 2 CO₂ emissions (i.e. a market-based method according to GHG Protocol Scope 2 guidance; mainly the use of the VDA emissions factors as well as isolated use of local emissions factors; but excluding climate-changing gases other than carbon dioxide) from vehicle pro-
duction (BMW Group manufacturing sites incl. joint venture BMW Brilliance Automotive Ltd. and motorcycles, excluding contract manufacturers), as well as BMW Group non-manufacturing sites (e.g. research centre, sales centre, offices) divided by the number of vehicles (excluding motorcycles) produced (BMW Group manufacturing
sites incl. joint venture BMW Brilliance Automotive Ltd., excluding contract manufacturers).
"From 2021, this indicator will include the carbon emissions of all other BMW Group locations in addition to the carbon emissions generated by production. The figures for 2019 (base year) and 2020 have been adjusted accordingly for comparison purposes (2019 before adjustment: 0.30 tons, 2020 before adjustment: 0.23 tons).
12 Figures from 2017 and 2018 are audited with limited assurance.
10
10
7 This is a preliminary internal calculation with a potential variation of +/- 0.5 g CO2/km, as official registration figures from the authorities are not available from all EU states. The EU Commission is not expected to publish official figures until November the following year.
3,395
Free cash flow Automotive segment
Automotive
7,112
8,013
7,784
6,222
7,518
20.8
Profit/loss from continuing operations²
4,822
6,017
6,143
6,495
5.7
4,459
2,713
5,113
Group revenues²
Group income taxes²
Other Entities
Motorcycles
Financial Services²
Other Entities
Eliminations²
Group profit/loss before financial result (EBIT)²
Automotive
Eliminations²
Motorcycles
Other Entities
Eliminations²
Group profit/loss before tax (EBT)²
Automotive
Motorcycles
Financial Services²
Financial Services²
5,222
11.2
8,717
2,325,179
2,537,504
2,486,149
2,465,021
59.9
12.7
2,521,514
29.0
10.3
2.7
4.9
7.2
9.2
77.7
- 1.5
5.6
49.8
16,060
118,909
18.8
8.4
5.7
0.33
- 14.1
115.99
99.1 (135.0)8
0.35
0.40
0.40
4.2
0.41
127.5
128.0
56.6
13.0
8.3
5.8
127.0
- 5.7
5,222
120,726
17.8
7,118
RoCE in %
EBIT margin in %
AUTOMOTIVE SEGMENT
Share of women in management positions in the BMW Group³
Workforce at year-end²
Profit/loss before tax in € million
Deliveries 4,5
GROUP
BMW GROUP IN FIGURES
BMW Group in Figures
← = Q
Other Information
Remuneration Report
16,060
KEY PERFORMANCE INDICATORS
126,016
17.2
Share of electrified vehicles in deliveries (in %)
CO₂ emissions per vehicle produced (in tons) 10, 11, 12
9,627
10,675
129,932
16.0
Change in %
2021
2020
2019
CO2 emissions EU new vehicle fleet (in g/km) 6,7
2018¹
RoE in %
FINANCIAL SERVICES SEGMENT
Deliveries
RoCE in %
EBIT margin in %
MOTORCYCLES SEGMENT
2017
9.1
134,682
17.2
8.2
7,097
-33
Profit/loss from discontinued operations
- 3,597
-1,365
- 2,140
-2,530
- 2,000
8,675
-257
910
288
383
-534
531
-235
-45
80
3,753
4,467
6,977
8.1
2,722
11,805
205
Group net profit/loss²
169
100
228
2,207
2,143
2,272
1,725
187
8,675
-96
Earnings in € per share of common stock / preferred stock²
18.1
14.8
194,261
169,272
165,566
164,153
14.8
35.9
29.4
28.4
34.0
7,064
84.4
8.3
15.0
14.4
175,162
5.3
Pre-tax return on sales 2,3 in %
1 Expenditure for capitalised development costs, other intangible assets and property, plant and equipment.
² The figures for 2018 were adjusted due to the change in accounting policy in conjunction with the adoption of IFRS 16 ( Annual Report 2019, Note 6 to the Group Financial Statements).
3 Group profit/loss before tax as a percentage of Group revenues.
13.07/13.09
10.60/10.62
4,978
44
5,022
7.47/7.49
3,857
4.5
3,857
5.73/5.75
12,463
18.77/18.79
10.9
9.9
12,463
6.8
Financial Performance
Retail vehicle delivery data*
In 2020, BMW Group reviewed and revised its policies and
procedures for the reporting of retail vehicle delivery data for
automobiles in order to further improve the reliability and
validity of its retail vehicle delivery data, in particular with re-
spect to the timing of the recognition of retail vehicle deliver-
ies (the Revised Reporting Process). BMW Group has ap-
plied the Revised Reporting Process to all markets with
effect from the year 2020. While BMW Group revised retail
vehicle delivery data for certain of its most significant mar-
kets for the years 2016 through 2019 presented in this report,
such data were not revised for BMW Group's other markets.
As a result, retail vehicle delivery data presented in this re-
port for the years 2016 through 2019 is not directly compar-
able to such data presented for the years 2020 and 2021.
Specifically, the retail vehicle delivery data for automobiles
presented in this report have been revised as follows:
When presenting total retail vehicle delivery data for auto-
mobiles other than model-by-model data, data relating to
the years 2016 through 2019 for BMW Group's 16 most sig-
nificant markets were adjusted to reflect the Revised Report-
ing Process. In the years 2016 through 2019, these 16 mar-
kets represented on average approximately 87% of
BMW Group's total retail deliveries of automobiles. For each
of the years 2016 through 2019, these revisions amounted to
less than 1% of BMW Group's total retail deliveries of
automobiles.
The retail vehicle delivery data for automobiles for
BMW Group's other markets have not been adjusted for any
period prior to 2020, nor have any retail vehicle delivery data
for motorcycles been adjusted for any period prior to 2020.
BMW Group believes the impact on BMW Group's retail ve-
hicle delivery data presented in this report of such data not
having been adjusted to reflect the Revised Reporting Pro-
cess to be immaterial.
The preparation of BMW Group's retail vehicle delivery data
involves a variety of estimates and judgments, some of
which are complex and all of which are inherently subjective,
and is subject to other uncertainties. In addition, as
BMW Group continues to enhance its policies and proce-
dures regarding retail vehicle delivery data, it may not always
be practicable for BMW Group to adjust prior-period data
(and any such adjustments would be of a de minimis nature
without any material impact on the comparability of periods).
Examples of the foregoing include:
The vast majority of deliveries of vehicles are carried out
by independent dealerships or other third parties, and
BMW Group is reliant on such third parties to correctly re-
port relevant data to BMW Group.
The definition of deliveries includes vehicles delivered in
the United States and Canada if the relevant dealers des-
ignate such vehicles as service loaner vehicles or demon-
strator vehicles.
Retail vehicle deliveries during a given reporting period do
not correlate directly to the revenue that BMW Group recog-
nizes in respect of such reporting period.
Corporate Governance
* See Glossary for the definition of deliveries.
98
Group Financial Statements
Combined Management Report
To Our Stakeholders
Retail vehicle delivery data for periods prior to 2020 in-
clude an immaterial number of pre-series vehicles that
were never intended to be sold to end users (such as ve-
hicles for use by government agencies in connection with
safety evaluations (e.g., crash tests) or for other tests).
BMW Group Report 2021
22.6 (+11.4%-points)
Other Information
between 8 and 10
significant increase
Remuneration Report
between 12 and 15
Q2: between 17 and 20
Q3: between 20 and 23
%
1 Including automobiles from the joint venture BMW Brilliance Automotive Ltd. Shenyang (2021: 651,236 units).
2 EU-27 countries including Norway and Iceland; with effect from 2021, values are calculated on a converted basis in line with WLTP (Worldwide Harmonised Light Vehicles Test Procedure).
3 Efficiency indicator calculated on the basis of Scope 1 and Scope 2 emissions (i. e. a market-based method according to GHG Protocol Scope 2 guidance; mainly use of VDA emission factors as well as occasional use of local emis-
sions factors). This excludes climate-changing gases (other than carbon dioxide) that are emitted in conjunction with vehicle production (BMW Group plants incl. BMW Brilliance Automotive Ltd. joint venture and Motorrad, excluding
partner plant and contract manufacturing) as well as other BMW Group locations not assigned to manufacturing (e.g. research centres, sales centres, office buildings) divided by the number of vehicles generated in automobile
production (BMW Group plants including the BMW Brilliance Automotive Ltd. joint venture and partner plants, excluding contract manufacturing).
"For better comparability of the previous year's values with the current year under report, the 2020 NEDC figures were converted to WLTP, making adjustments for applicable flexibilities specifically from
99 g CO2/km according to NEDC (including 5 g CO2/km phase-in, 7.5 g CO2/km supercredits and 2.4 g CO2/km eco-innovations) to 135 g CO2/km according to WLTP (excluding flexibilities). In 2020, a phase-in
scheme and the awarding of supercredits were possible. In 2021, these two exemptions were no longer available for the BMW Group.
← = Q
5 Due to the expansion of the reporting scope during the year under report, the comparative figure (in 2020 before the adjustment: 0.31 tonnes) was revised to 0.35 tonnes.
97
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
6 Unlike the other key performance indicators, the RoCE forecast for the Automotive and Motorcycles segments is based on the change in percentage points. Glossary
Other Information
- 5.0
Financial Performance
21,986
13,582
61.9
Asia
32.5
32.1
Selling and administrative expenses
44.3
-9,233
Americas
22.8
21.4
Other operating income and expenses
43
647
35.9 (+20.9 %-points)
significant increase
- 8,795
42.4
Europe
- 4.5
EARNINGS PERFORMANCE OF THE BMW GROUP
BMW GROUP CONDENSED INCOME STATEMENT
Group revenues by region were as follows:
in € million
Revenues
Cost of sales
Gross profit
2021
111,239
2020
98,990
Change in %
12.4
BMW GROUP REVENUES BY REGION
in %
2021
2020
-89,253
- 85,408
← = Q
%
Group Financial Statements
%
in 2020 Group Report
during the year
Actual
outcome in 2021
COMPARISON OF FORE-
CASTS WITH ACTUAL
OUTCOMES
The following table shows the development of key per-
formance indicators for the BMW Group as a whole as well as
for the Automotive, Motorcycles and Financial Services seg-
ments in the financial year 2021 compared to the forecasts
made in the BMW Group Report 2020. Favourable selling
price trends for new and pre-owned vehicles as well as the
partial reversal of the provision for the EU antitrust proceed-
ings resulted in the EBIT margin forecast for the Automotive
segment being adjusted during the year. Due to lower risk
provisioning expense recognised for expected residual value
and credit risks, higher profits on the resale of lease returns
and the reversal of credit risk allowances, the BMW Group
also adjusted its forecast for the return on equity (ROE) range.
The changes are shown below.
Detailed information on the BMW Group's key performance
indicators is provided below in conjunction with the analysis
of the Group's results of operations, financial position and
net assets. Changes in the key performance indicators used
for the Automotive, Motorcycles and Financial Services
segments are explained in the respective sections on the
segments.
Forecast revision
GROUP
Workforce at year-end
Share of women in management
positions in the BMW Group
AUTOMOTIVE SEGMENT
Deliveries to customers'
significant increase
slight decrease
slight increase
Profit before tax
solid increase
Forecast for 2021
The BMW Group's results of operations, financial position
and net assets are indicative of its solid financial condition.
Business developed in line with management expectations.
This assessment also takes into account events after the
end of the reporting period.
Total
+14
OVERALL ASSESSMENT
BY MANAGEMENT OF THE
FINANCIAL YEAR
Despite the global challenges driven by semiconductor com-
ponent supply shortages and the impact of the coronavirus
pandemic, the BMW Group can be satisfied with the course
of business in the financial year 2021.
96
BMW GROUP: COMPARISON OF THE FORECASTS FOR 2021 WITH ACTUAL OUTCOMES IN 2021
BMW Group Report 2021
Combined Management Report
Other regions
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
To Our Stakeholders
Share of electrified vehicles in deliveries
significant increase
Emissions new vehicle fleet²
in g/km
in tons
2,521,514 (+8.4%)
solid increase
13.0 (+ 56.6%)
significant increase
115.9 (-14.1 %)4
significant decrease
0.33 (-5.7%) 5
moderate decrease
%
%
10.3 (+7.6 %-points)
59.9 (+47.2 %-points)
significant increase
solid increase
Q2: significant increase
units
194,261 (+14.8%]
significant increase
%
units
solid increase
18.8 (+ 5.6%)
significant decrease
CO2 emissions per vehicle produced³
moderate decrease
EBIT margin
Return on capital employed (RoCE) 6
MOTORCYCLES SEGMENT
Deliveries to customers
EBIT margin
Return on capital employed (ROCE]6
FINANCIAL SERVICES SEGMENT
Return on equity (ROE)
between 6 and 8
Q2: between 7 and 9
Q3: between 9.5 and 10.5
significant increase
€ million
16,060 (+207.5 %)
significant increase
118,909 (-1.5%)
slight decrease
%
8.3 (+3.8 %-points)
2.3
27,114
Profit before financial result
Other factors influencing the increase were volume-related
cost of sales for lease returns, rising raw materials and energy
prices, and the higher proportion of electrified vehicles sold.
Furthermore, reversals of and lower additions to credit risk al-
lowances as well as the remarketing result arising on the sale
of lease returns had a positive impact on cost of sales.
In the previous year, warranty expenses were impacted by
the recognition of provisions in connection with the exhaust
gas recirculation cooler and other warranty-related items.
The reduced workforce size and changeover effects resulting
from the modernisation of the pension plan model in Germa-
ny amounting to € 562 million had a positive impact on cost
of sales and selling and administrative expenses, while higher
expenses for performance-related remuneration components
had an offsetting effect. Depreciation and amortisation on
property, plant and equipment and intangible assets recorded
in cost of sales and in selling and administrative expenses to-
talled € 6,495 million (2020: € 6,143 million).
Further information is provided in note 32 to the Group Financial Statements.
↑
= Q
100
Group cost of sales rose to € 89,253 million (2020: € 85,408 mil-
lion; +4.5%), mainly due to sales volume growth.
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
To Our Stakeholders
A substantial part of research and development expenditure
in 2021 related to new vehicle models (including the all-elec-
tric BMW iX and BMW i4 models and the new BMW 2 Series
Active Tourer) as well as the development of digital products,
automated driving and new architectures. The year-on-year
rise in research and development expenses clearly reflects
the increase in vehicle and module production start-up activ-
ities as the BMW Group continues its electric offensive.
also higher in 2021, whereby the increase was held down by
production shortfalls due to supply bottlenecks for semicon-
ductor components. However, this unfavourable impact was
more than offset by improved pricing, due to both the grow-
ing desire for individual mobility on the one hand and the
reduced worldwide availability of products triggered by those
same semiconductor component shortages on the other. In
addition, revenues were also boosted by favourable product
mix effects due to increased sales of high-revenue models.
The semiconductor scarcity was also reflected in higher sell-
ing prices on pre-owned vehicle markets, which in turn gave
rise to higher revenues from the sale of lease returns.
Increase in Group net profit in 2021
1,411
12.8
Warranty expenses
Other cost of sales
Cost of sales
2,192
2,971
Group revenues were significantly higher in the financial year
2021, reflecting the impact of coronavirus-related dealership
closures in the previous 12-month period (2021: € 111,239 mil-
lion; 2020: € 98,990 million; + 12.4%). Sales volume was
-26.2
1,345
4.2
89,253
85,408
4.5
Antitrust investigation concluded
In the Half-Year Report to 30 June 2021, information was
provided on the conclusion of the EU Commission's antitrust
proceedings in connection with allegations of colluding to
restrict competition for innovation with regard to certain ex-
haust treatment systems. In accordance with the updated
Statement of Objections received on 20 May 2021, the EU
Commission dropped most of the original charges. Remeas-
urement of the provision originally recognised in the financial
year 2019 gave rise to a positive impact on earnings of
around one billion euros in the second quarter 2021. The pro-
ceedings were concluded by settlement on 8 July 2021 and
resulted in a fine of approximately € 373 million, which was
paid in July 2021. Further information, in particular relating to
further antitrust proceedings and civil lawsuits, is provided in
note 38 to the Group Financial Statements 2021.
1,401
1,591
The net amount of other operating income and expenses im-
proved significantly, primarily due to the income arising on
the partial reversal of the provision relating to the antitrust
proceedings of the EU Commission, which was recorded in
the second quarter 2021.
in € million
The size of the workforce decreased slightly to 118,909 em-
ployees year-on-year and was therefore in line with expect-
ations (2020: 120,726 employees; -1.5%).
BMW GROUP PERFORMANCE INDICATORS RELATING TO RESEARCH AND DEVELOPMENT EXPENSES
in %
Research and development expenditure ratio¹
Capitalisation rate²
1 Research and development expenditure as a percentage of Group revenues.
² Capitalised development costs as a percentage of research and development expenditure.
2021
Income tax expense for the year increased to € 3,597 million
(2020: € 1,365 million), mainly due to the significant year-
on-year improvement in Group profit before tax. The effec-
tive tax rate for the 12-month period was 22.4% (2020:
26.1%), reflecting the partial reversal in 2021 of the risk pro-
vision in connection with the antitrust proceedings of the EU
Commission as well as the impact of fair value measurement
gains within other financial result.
2020
6.3
Change in
%-pts.
-0.1
36.5
36.6
-0.1
+44
BMW Group Report 2021
6.2
BMW GROUP RESEARCH AND DEVELOPMENT EXPENSES
As forecast most recently in the Quarterly Statement to
30 September 2021, Group profit before tax of € 16,060 mil-
lion was significantly higher than one year earlier (2020:
€ 5,222 million) and therefore in line with expectations.
5,689
Research and development expenditure
New expenditure for capitalised development costs
Amortisation
Research and development expenses
As a result of the various factors described above, profit
before financial result jumped to € 13,400 million (2020:
€ 4,830 million).
The financial result improved significantly to a net positive
amount of € 2,660 million (2020: net positive amount of
€ 392 million), influenced in particular by improvements in
the line items "Other financial result” and “Result from equity
accounted investments".
Other financial result benefited in 2021 from the continued
favourable fair value development of interest rate hedges re-
sulting from the rise in yield curves in the USA, whereas in
the previous year the downward trend in interest rates gave
The increased at-equity result from the Chinese joint venture
BMW Brilliance Automotive Ltd., Shenyang, amounting to
€ 1,727 million (2020: € 1,212 million) was another key driver
of the improved financial result.
2021
6,870
6,279
-2,506
-2,300
1,935
1,710
6,299
2020
13.2
1,710
1,935
Earnings per share of preferred stock in €
18.79
5.75
Change in
in %
2021
2020
5.73
%-points
19.8
13.7
6.1
Pre-tax return on sales¹
14.4
5.3
9.1
Gross profit margin³
Post-tax return on sales²
18.77
3,857
13,400
4,830
Group
100.0
100.0
Financial result
Profit/loss before tax
Earnings per share of common stock in €
Income taxes
392
16,060
5,222
-3,597
- 1,365
Net profit
12,463
2,660
11.2
3.9
7.3
2020
51,361
46,878
Change in %
9.6
Cost of sales relating to financial services business
26,409
-2.6
2021
thereof interest expense relating to financial services business
1,960
- 16.2
Research and development expenses
6,299
5,689
10.7
thereof amortisation of capitalised development costs
Service contracts, telematics and roadside assistance
1,643
Manufacturing costs
in € million
Financial Performance
Effective tax rate4
22.4
26.1
- 3.7
1 Group profit before tax as a percentage of Group revenues.
² Group net profit as a percentage of Group revenues.
3 Gross profit as a percentage of Group revenues.
"Income taxes as a percentage of Group revenues.
BMW GROUP COST OF SALES
99
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
2.2
rise to fair value measurement losses on interest rate hedges.
Other financial result was additionally impacted by positive
valuation effects, primarily arising on investments held by
the BMW i Ventures fund and on the investment in SGL
Carbon shares.
91
Asia
90
90
45
0
2017
2018
2019
2020
2021
2022
-Lithium hydroxide ---Lithium carbonate
Silver
― Palladium
Cobalt
STEEL PRICE TREND
Index: January 2016 = 100
200
150
50
100
50
135
2017
135
225
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
Energy and raw materials prices
The year 2021 was marked by a pronounced shortage of raw
materials, with demand outstripping supply for nearly all
commodities. Average prices for steel and aluminium rough-
ly doubled year-on-year, but fell again slightly towards the
end of the 12-month period.
Prices for precious and non-ferrous metals also followed a
similar trend. After rising sharply through to mid-2021, prices
fell again during the second half of the year, particularly for
rhodium and palladium. Lower demand from the automotive
industry also had a dampening effect on prices.
Prices of raw materials for batteries, however, rose signifi-
cantly, mainly due to the growing demand for electric ve-
hicles. Quoted prices for cobalt, for example, were up almost
twofold compared to the low for the year recorded one year
earlier. Similarly, the average price of lithium almost doubled
year-on-year.
DEVELOPMENT OF METALS PRICES
Index: December 2016 = 100
450
405
360
315
270
180
2018
2019
2020
30
20
10
0
2017
2018
2019
2020
2021
2022
- Price in US dollars
Price in euros
Source: Reuters
95
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
40
50
60
60
2021
2022
Source: Working Group for the Iron and Metal Processing Industry.
94
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
93
Other Information
Financial Performance
Whereas in the previous year, oil markets had seen negative
prices for a brief period in the wake of the coronavirus pan-
demic, crude oil prices rose massively in 2021. WTI-grade oil
was temporarily quoted at over 84 US dollars per barrel and
Brent crude at over 86 US dollars per barrel, both reaching
their highest level in seven years. Prices fell again slightly
towards the end of 2021, but were still well above prior-year
levels.
OIL PRICE TREND
Price per barrel of Brent Crude
100
90
90
80
10
70
← = Q
← = Q
Source: Reuters
Source: Reuters
Value Added Statement
109
Course of Business
117
Comments on the
Financial Statements of BMW AG
AT A GLANCE
16,060 million
Group profit before tax (up 207.5 % on the previous year)
Direct link to section
€ 9,870 million
Profit before financial result: Automotive segment
(up 356.5 % on the previous year)
7 Direct link to section
€3,753 million
Profit before tax: Financial Services segment
(up 117.6% on the previous year)
7 Direct link to section
FINANCIAL PERFORMANCE
GENERAL AND
SECTOR-SPECIFIC
ENVIRONMENT
Following the pandemic-related slump in 2020, the global
economy experienced an upswing in the year under report.
According to the provisional calculations of the International
Monetary Fund (IMF), global gross domestic product (GDP)
grew by 5.9% year-on-year in 2021. All three major regions -
Europe, the USA and China - saw an economic recovery.
The coronavirus crisis hit countries in the eurozone harder
than in other major regions. For this very reason, however,
the subsequent recovery in the worst affected European
countries was more pronounced. Overall, the economies of
the eurozone countries grew by 5.1% year-on-year. At 2.7%,
Germany's economy recorded a lower growth rate than other
European countries, mainly reflecting the impact of supply
shortfalls, particularly for semiconductor components. By
contrast, the economies of France (+6.7%), Italy (+6.3%)
and Spain (+5.0%) all grew strongly, influenced in particular
by good progress made on the vaccination front, the easing
of pandemic restrictions and the catch-up effects driven by
pent-up demand.
Despite its exit from the European Union (EU) and the im-
pact of supply bottlenecks, the economy of the United King-
dom (UK), which had experienced a particularly severe
slump in the previous year, recovered in 2021, with GDP up
by 7.0%.
107
The US economy grew by 5.7% year-on-year. The US labour
market also staged a recovery in 2021. Although the USA's
employment figures have not yet returned to pre-crisis levels,
some sectors are already seeing labour shortages.
Net Assets Position of the BMW Group
Refinancing
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
91
FINANCIAL PERFORMANCE
General and Sector-Specific Environment
95
Overall Assessment by Management of the
Financial Year
96
Comparison of Forecasts with Actual
Outcomes
98
Earnings Performance of the BMW Group
101
Financial Position of the BMW Group
103
105
China's economic growth rate rose to 8.1% in 2021, well up
on the previous year, boosted in particular by a renewed
sharp rise in exports. However, the pace of growth slowed
somewhat towards the end of the year due to weaker con-
sumer demand.
After contracting significantly in 2020, Japan's economy re-
covered slightly during the first half of 2021. Despite exten-
sive stimulus packages, however, the second half of the year
saw a drop in economic output, with the year-on-year growth
rate finishing at 1.8%.
DECENT WORK AND
90
The bandwidth of fluctuation in the US dollar/euro exchange
rate was slightly narrower in 2021 than in the previous year.
The US currency fluctuated between 1.23 and 1.12 US dollars
to the euro and weakened somewhat compared to the previ-
ous year with an average rate of 1.18 US dollars to the euro in
2021. Both the European Central Bank (ECB) and the US
Federal Reserve (Fed) left their benchmark interest rates
unchanged. Towards the end of the year, however, they
announced that bond purchases would be curtailed.
Post-Brexit, the British pound remains fairly close to the
lower value it fell to after the 2016 referendum. However, at
an average rate of 0.86 pounds to the euro, the British cur-
rency was slightly stronger than in previous years. In re-
sponse to the high inflation rate, the Bank of England (BoE)
raised the official bank rate by 15 basis points to 25 basis
points in December 2021.
In China, the rapid recovery of the domestic economy and
the sharp growth in exports in 2021 led to a continuous ap-
preciation of the Chinese renminbi. On average over the year,
the Chinese currency traded at 7.63 renminbi to the euro.
Bucking the international trend, the Chinese central bank
lowered the reserve requirement ratio for most banks by 50
basis points at the end of 2021, thereby easing its monetary
policy in order to shore up the economy.
The average exchange rate of the Japanese yen was 130 to
the euro during the year under report.
As in the previous year, the currencies of major emerging
markets weakened again in 2021 due to the impact of the
coronavirus pandemic. While the average value of the Indian
rupee fell by around 3% against the euro, the Russian rou-
ble depreciated by 5% and the Brazilian real by as much as
8% on average against the euro.
80
60
70
60
50
50
2017
2018
2019
2020
2021
Russian rouble --- US dollar
Japanese yen
- British pound
Chinese renminbi
06
100
00
110
ECONOMIC GROWTH
M
92
92
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
2022
Other Information
Financial Performance
Currency markets and international interest rate
environment
Supply chain bottlenecks, capacity constraints and higher
energy prices caused inflation to rise in the world's major
economies in 2021. Towards the end of the year, a number of
central banks announced their intention to modify their pre-
vious highly expansionary monetary policies.
EXCHANGE RATES COMPARED TO THE EURO
Index: December 2016 = 100
150
140
130
30
120
← = Q
+31
thereof China
thereof France
China
USA
COOPER
Registration figures on international motorcycle markets
developed as follows in the year under report:
The trend on international motorcycle markets in the 250 CC
plus class was predominantly positive in 2021. Worldwide,
motorcycle registrations were 14% up on one year earlier,
when pandemic-related factors had caused the markets to
contract. Markets in Europe also showed an upward trend,
with registrations up by 7% year-on-year. Among the major
motorcycle markets, positive contributions to the region's re-
covery came from Italy (+22%), Spain (+11%) and France
(+10%). By contrast, registration figures in Germany fell
sharply (-12%). Registrations in the USA rose by 15% year-
on-year. The Brazilian market also performed extremely well,
with registrations up by 32% after a decline one year earlier.
China recorded the biggest increase with growth of 44%.
International motorcycle markets
+1
+6
+1
-10
Change compared to
previous year in %
-2
thereof United Kingdom (UK)
thereof Spain
thereof Italy
thereof Germany
Europe
INTERNATIONAL AUTOMOBILE MARKETS
International automobile markets
International automobile markets recovered slightly overall
in 2021, despite the continuing supply bottlenecks reported
in many markets. Registration figures for passenger cars and
light commercial vehicles worldwide edged up by 1% to 73.4
million units.
Financial Performance
Japan
Total
+1
+3
+32
+ 15
+19
+3 INTERNATIONAL MOTORCYCLE MARKETS
+22
thereof Brazil
thereof USA
Americas
thereof Spain
thereof Italy
+ 11
+10
- 12
+7
Change compared to
previous year in %
thereof Germany
Europe
+1
-3
thereof France
1,097.4
266.8
285.0
330.5
310.6
1,101.9
296.5
164.3
451.7
233.8
236.8
242.4
379.7
472.9
457.1
1,081.6
163.2
913.6
Programmes
Americas
456.1
6.5
Germany
10.6
BMW GROUP DELIVERIES OF VEHICLES BY REGION AND MARKET 2
in 1,000 units
2021
2020
2019
2018
2017
BMW brand sets new record
The BMW brand set a new record in 2021, delivering a total
of 2,213,7901 units (2020: 2,028,8411 units; +9.1%). The core
brand's growth was mainly attributable to its youthful, at-
tractive range of models. The BMW X family in particular re-
mained extremely popular. The BMW X3 and BMW X4 model
revisions launched in 2021 made a significant contribution to
the brand's strong overall sales performance. The figure in-
cluded 37,938 units of the new BMW iX33, which means ap-
proximately every tenth BMW X3 vehicle delivered worldwide
was all-electric.
Europe
thereof Germany
thereof UK
949.1
thereof USA
59.3
307.9
59.9
UK
Total1
2,521.5
2,325.2
2,537.5
2,486.1
2,465.0
1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2019: 538,612 units; 2018: 455,581 units; 2017: 385,705 units).
2 Retail vehicle delivery data presented for 2020 and 2021 is not directly comparable to such data presented for previous years. For further information on retail vehicle delivery data, please see Comparison of
Forecasts with Actual Outcomes.
37 Consumption and carbon emissions.
The following table provides an overview of amounts utilised
at 31 December 2021 in connection with the BMW Group's
money and capital market programmes:
bond amounting to € 1.5 billion and a bond denominated in
Canadian dollars with a total value of 0.5 billion Canadian
dollar. ABS transactions with a total financing volume equiv-
alent to € 15.1 billion were executed in 2021, including both
new and rolled-over ABS transactions. During the year under
report, the BMW Group was party to ABS transactions in the
following markets: Australia, Canada, China, France, Germa-
ny, Japan, South Africa, South Korea, Switzerland, the USA
and the UK.
Financial Performance
← = Q
52.2
368.0
45.4
Other markets
375.7
355.4
358.8
Asia¹
1,067.9
986.5
930.8
871.8
847.7
thereof China¹
847.9
778.4
724.7
635.8
595.0
52.8
14.6
Remuneration Report
USA
Change in %
BMW Group PHEV
BMW Group BEV
Total
224,460
148,121
51.5
103,854
2020
44,541
328,314
192,662
70.4
COURSE OF BUSINESS
Automotive segment
BMW Group retains leadership in premium segment
Despite global challenges such as semiconductor component
supply issues and the impact of the coronavirus pandemic,
the BMW Group can be satisfied with the positive course of
business in the financial year 2021. Driven by brisk demand
and an attractive product range, automobile deliveries grew
by a solid 8.4% to a total of 2,521,514¹ BMW, MINI and Rolls-
Royce brand vehicles (2020: 2,325,1791 units), enabling the
BMW Group to extend its lead in the premium segment.
133.2
2021
DELIVERIES OF ELECTRIFIED MODELS
Financial Performance
12.4 %
Group
28.2%
Providers of finance
6.0%
Shareholders
12.6 %
Minority interest
0.3%
109
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Deliveries² of BMW brand vehicles grew by 9.1% to 2,213,7901
units (2020: 2,028,8411 units). MINI also recorded an in-
crease, with deliveries rising to 302,138 units (2020: 292,582
units; +3.3%). Rolls-Royce Motor Cars delivered a total of
5,586 units (2020: 3,756 units; +48.7%), the highest figure
recorded for the luxury marque to date.
Deliveries of electrified vehicles at record level
Electric mobility continues to gain in significance for the en-
tire sector and is a key driver of sales volume growth for the
BMW Group. The trend is reflected in the sharp rise in the
sale of electrified models offered by the BMW and MINI
brands.
With a total of 328,3143 units, deliveries jumped sharply by
70.4% in the year under report (2020: 192,662³ units). De-
mand was particularly strong for the Group's all-electric
models and delivery figures more than doubled year-on-year
to 103,8543 units (2020: 44,5413 units; +133.2%). Their
share of total delveries was 4.1% (2020: 1.9%) in the year
under report. Two additional all-electric models, the BMW iX4
and the BMW i44, went on sale towards the end of 2021, both
of which have been highly acclaimed in the trade press. By
the end of the period under report, the BMW Group had a
total of 14 electrified models on the roads. In 2022, the prod-
uct range will be expanded to include the all-electric BMW i7
luxury sedan and the BMW iX1. The increased share of deliv-
eries accounted for by electrified vehicles and the rigorous
use of Efficient Dynamics technologies enabled further pro-
gress to be made in decarbonising fleet emissions. Further
information is provided in the chapter 7 Carbon emissions and pol-
lutants.
Deliveries of BMW, MINI and Rolls-Royce brand vehicles in
Asia rose solidly to a new high of 1,067,9141 units (2020:
986,464 units; +8.3%). The sales figure for China grew by
8.9%, also resulting in a new record level of 847,9351 units
(2020: 778,412¹ units).
Europe saw a slight increase in the number of deliveries to
949,124 units (2020: 913,642 units; +3.9%). In Germany,
however, the impact of the coronavirus pandemic became
even more pronounced at the beginning of 2021, a fact re-
flected in weak sales figures during the early stages of the
year. Over the year as a whole, a total of 266,818 units were
delivered, well down on the previous year (2020: 285,019
units; -6.4%).
In the UK, sales of all three brands totalled 164,344 units
(2020: 163,174 units; +0.7%), marginally up on the previous
year's figure. France and Italy, however, both recorded
double-digit growth rates. Sales in France, for example, rose
to 76,845 units (2020: 69,880 units; +10.0%), while in Italy
the BMW Group delivered a total of 70,224 units (2020:
62,538 units; +12.3%).
Sales also recovered well in the Americas region during the
year under report, with delivery numbers rising to 451,747
units (2020:379,714 units; +19.0%). A total of 368,032 units
were delivered in the USA (2020: 307,876 units; +19.5%).
-
LARGEST AUTOMOBILE
BMW GROUP
MARKETS 2021
as a percentage of sales volume
Other
25.8
Italy
China
33.6
2.8
France
3.0
Korea
Sales volume situation in main markets:
new record set in China
3.1
Financial Performance
Other Information
in units
1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang
(2021: 651,236 units; 2020: 602,247 units).
² See 7 Glossary for definition of deliveries.
3 Includes the joint venture BMW Brilliance Automotive Ltd., Shenyang.
47 Consumption and carbon emissions.
ix
4
110
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Other Information
← = Q
Remuneration Report
-2,629
Group Financial Statements
in € million
FREE CASH FLOW AUTOMOTIVE SEGMENT
Free cash flow for the Automotive segment was as follows:
Financial Performance
← = Q
Other Information
Cash inflow (+)/outflow (-) from operating activities
Remuneration Report
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
102
971
Corporate Governance
Cash inflow (+)/ outflow (-) from investing activities
Adjustment for net investment in marketable securities and investment funds
Free cash flow Automotive segment
2021
NET FINANCIAL ASSETS AUTOMOTIVE SEGMENT
In the Automotive segment, net financial assets comprised
the following:
was partially offset by the increase in inventories resulting
from production adjustments caused by semiconductor sup-
ply bottlenecks. The increase in the net cash outflow from
investing activities was mainly attributable to the changes
described in the Group Cash Flow Statement.
The Automotive segment generated free cash flow amount-
ing to € 6,354 million in 2021. The main factor influencing the
increase in the net cash inflow from operating activities was
the year-on-year improvement in profit before tax. Within
working capital, the positive impact of higher trade payables
2,959
3,395
829
- 850
-21
6,354
Change
4,405
-2,275
- 3,933
-6,208
8,178
12,583
2020
1,501
2,472
Change in cash and cash equivalents
-447
The change in the net cash outflow from financing activities
mainly reflected the higher level of financial liabilities pay-
able to BMW Group companies in which an investment is
held as well as the lower dividend paid out for the 2020 pan-
demic year.
Substantial investments in property, plant and equipment
and intangible assets, in particular for the launch of new ve-
hicle models, resulted in a higher net cash outflow from in-
vesting activities. In the previous year, proceeds from the
sale of marketable securities and the receipt of a dividend
from BMW Brilliance Automotive Ltd., Shenyang, also had a
positive effect on the net cash flow from investing activities.
The main factors driving the higher net cash inflow from op-
erating activities were the Group's improved profit before tax
on the one hand and the overall change in working capital on
the other. Within working capital, the rise in trade payables
due to higher production volumes had a favourable effect,
while the increase in inventories in the Automotive segment
- partially compensated by a decrease in inventories in the
Financial Services segment - had an offsetting effect. Within
receivables from sales financing, amounts due from retail
customers went up on the back of higher business volumes.
On the other hand, receivables from dealership financing fell
in light of brisk demand and short standing times for ve-
hicles, and therefore had an offsetting effect. The decrease
in provisions mainly reflected the partial reversal in 2021 of
the risk provision in connection with the antitrust proceed-
ings of the EU Commission.
Cash flows from operating activities are determined indirect-
ly, starting with Group/segment profit before tax. By con-
trast, cash flows from investing and financing activities are
based on actual payments and receipts.
The consolidated cash flow statements for the Group and
the Automotive and Financial Services segments show the
sources and applications of cash flows for the financial years
2021 and 2020, classified according to operating, investing
and financing activities. Cash and cash equivalents in the
cash flow statements correspond to the amounts disclosed
in the balance sheet.
FINANCIAL POSITION OF
THE BMW GROUP
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Financial Performance
To Our Stakeholders
BMW Group Report 2021
101
BMW GROUP CASH FLOWS
in € million
in € million
2021
140
-307
Effects of exchange rate and changes in composition of Group
1,519
- 8,254
-6,735
Cash inflow (+)/ outflow (-) from financing activities
- 2,753
-3,636
-6,389
2,652
13,251
15,903
Change
2020
Cash inflow (+)/ outflow (-) from operating activities
Cash inflow (+)/outflow (-) from investing activities
31.12.2021
31.12.2020
Change
- 2,508
sector
- 350
424
74
497
2,762
3,259
Change
2020
2021
Effects of exchange rate and changes in composition of segment
Change in cash and cash equivalents
Cash inflow (+)/ outflow (-) from financing activities
Cash inflow (+)/ outflow (-) from investing activities
Cash inflow (+)/outflow (-) from operating activities
-121
in € million
-96
608
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
104
In 2021, the BMW Group issued bonds totalling approxi-
mately € 6.9 billion. The BMW Group refinanced itself by
means of 144A transactions with a total volume of 4.5 billion
US dollar on the US capital market and by means so-called
Panda bonds with a volume of 9.5 billion Chinese renminbi
on the Chinese capital market. Activities on international
capital markets were rounded off by one euro benchmark
Focused capital market management, good ratings and the
high level of acceptance enjoyed by the BMW Group on
those markets enabled it to refinance itself on the world's
debt capital markets at favourable conditions during the
period under report. In addition to bonds, the BMW Group
also issued commercial paper in 2021. As in previous years,
all issues were in high demand, not only from institutional
investors, but also from private investors in selected transac-
tions. Moreover, retail customer and dealership financing
receivables as well as rights and obligations from leasing
contracts are securitised in the form of asset-backed secur-
ities (ABS) financing arrangements. Specific banking instru-
ments, such as the customer deposits used by the Group's
own banks in Germany and the USA, are also deployed for
financing purposes. In addition, loans are taken from inter-
national banks.
Financing measures undertaken at corporate level ensure
access to liquidity for the Group's operating subsidiaries at
standard market conditions and consistent credit terms.
Funds are acquired in line with a target liability structure,
comprising a balanced mix of financing instruments. The use
of longer-term instruments to refinance the Group's Finan-
cial Services business and the maintenance of a sufficiently
high liquidity reserve serves to rule out any imminent liqui-
dity risk for the portfolio. This conservative financial ap-
proach also has a favourable effect on the Group's rating.
Further information is provided in the section "Liquidity
risks" within the chapter 7 Outlook, Risk and Opportunity Management.
3. Focus on value through the optimisation of financing
costs
2. Autonomy through the diversification of refinancing in-
struments and investors
1. The ability to act through permanent access to stra-
tegically important capital markets
A broad range of instruments on international money and
capital markets is used to refinance worldwide operations.
Funds raised are used almost exclusively to refinance the
BMW Group's Financial Services business. The overall ob-
jective of Group financing is to ensure the solvency of the
BMW Group at all times, focusing on three areas:
REFINANCING
The main factor driving up net cash inflow from operating
activities was the increase in segment profit before tax. Fur-
thermore, a reduction in dealership inventories and the as-
sociated reduction in receivables from sales financing, pri-
marily dealership financing, had a positive effect, while the
increase in retail customer financing had an offsetting im-
pact. The decrease in inventories as a consequence of strong
demand for lease returns also had a positive impact. The
change in the net cash inflow from investing activities was
attributable to the combined effect of higher outflows for in-
vestments in and lower inflows from sales of marketable
securities.
- 206
- 180
788
110
Corporate Governance
CASH FLOWS FINANCIAL SERVICES SEGMENT
Financial Performance
21,277
24,887
Financial assets
1,115
7,996
9,111
Intragroup net financing
8
3,759
3,767
Marketable securities and investment funds
2,487
9,522
12,009
Cash and cash equivalents
3,610
Cash and cash equivalents held by the Financial Services
segment changed as follows:
Less: external financial liabilities*
-2,815
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
103
*Excluding derivative financial instruments.
3,900
18,462
22,362
Net financial assets Automotive segment
290
-2,525
Government/public
Employees
40.5 %
26.2%
Adjusted for currency effects, the BMW Group's balance
sheet total was slightly higher than at 31 December 2020.
Including currency effects from the US dollar, the British
pound and the Chinese Renminbi, amongst others, the bal-
ance sheet total grew solidly compared to the previous year².
Adjusted for currency effects, property, plant and equipment
and intangible assets all went up year-on-year, driven by higher
capital expenditure, particularly in connection with the electrifi-
cation of the vehicle fleet as well as new model revisions.
Based on constant currencies, leased products were slightly
highly than one year earlier. Although the contract portfolio
under management was at a similar level compared to the
previous year, leased products in the balance sheet grew as
a consequence of volume growth as well as the higher aver-
age financing volume per vehicle, the latter brought about by
an improved product mix.
Investments accounted for using the equity method (adjust-
ed for currency effects) increased significantly over the
12-month period under report, mainly driven by the rise in the
BMW Group's at-equity valuation of the Chinese joint ven-
ture BMW Brilliance Automotive Ltd., Shenyang, in light of
that entity's higher earnings and the fact that it did not pay
out a dividend during the financial year 2021.
Receivables from sales financing (adjusted for currency ef-
fects] went down slightly compared to 31 December 2020,
primarily due to the decrease in dealership financing, mainly
in the USA, Germany, the UK and France. The currency-ad-
justed decrease in dealership financing receivables was par-
tially offset by rising retail customer financing. Overall, how-
ever, receivables from sales financing grew slightly. A total of
1,334,853 new credit financing contracts were concluded
EQUITY AND LIABILITIES
Equity
75,132
61,520
22.1
18.3
32.7
Pension provisions
1,247
3,693
-66.2
- 66.5
1.0
Proportion of
balance sheet
total in % 2021
7.0
100.0
2.6
6.9
4.0
6.9
Trade receivables
2,261
2,298
- 1.6
- 4.5
0.5
1.0
16,009
13,537
18.3
16.2
Total assets
229,527
216,658
5.9
Cash and cash equivalents
14,896
Other provisions
13,982
21,187
5.8
1.3
9.8
Total equity and liabilities
229,527
216,658
5.9
2.6
100.0
1 The adjustment for exchange rate factors is calculated by applying the relevant current exchange rates to the prior-year figures.
2 Further information is provided in note 4 to the Group Financial Statements.
106
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
22,420
Other liabilities
4.8
24.4
-0.2
-2.5
6.1
Deferred and current tax
2,379
1,256
89.4
86.0
13,954
Financial liabilities
106,376
-2.7
-6.0
45.1
Trade payables
10,932
8,644
26.5
103,463
Corporate Governance
15,928
4.4
Financial Performance
NET ASSETS POSITION OF THE BMW GROUP
BMW GROUP CONDENSED BALANCE SHEET AT 31 DECEMBER
in € million
2021
2020
Change in %
Currency-adjusted
change in %1
ASSETS
Intangible assets
12,980
12,342
5.2
4.9
Property, plant and equipment
22,390
21,850
← = Q
Other Information
Remuneration Report
Corporate Governance
in € billion
Programme volume
Amount utilised*
Euro Medium Term Notes
50.0
30.7
Australian Medium Term Notes
1.6
2.5
Commercial Paper
1.4
* Measured at the exchange rate on the trade date of the respective transaction.
The BMW Group continued to deploy robust liquidity-related
measures throughout 2021 to ensure its ability to act flexibly
and independently at all times. Thanks to the combination of
financing measures taken and the high free cash flow gener-
ated during the year, liquidity on hand totalled € 20.2 billion
at 31 December 2021 and was therefore significantly higher
than the previous year's corresponding figure of € 17.8 bil-
lion.
105
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
13.0
Inventories
0.7
44,700
Financial assets
7,515
7,752
-3.1
-4.6
3.3
Deferred and current tax
3,731
3,065
21.7
16.6
1.6
Other assets
10,243
10,326
-0.8
-3.0
38.1
- 1.0
3.7
84,277
41,995
6.4
2.9
5.7
9.8
19.5
Investments accounted for using the equity
method
5,112
3,585
42.6
Leased products
42.6
Other investments
1,241
735
68.8
61.9
0.5
Receivables from sales financing
87,417
2.2
The credit line was not being utilised at 31 December 2021.
Further information with respect to financial liabilities is
provided in notes 31, 35 and 39 to the Group Financial
Statements.
Remuneration Report
← = Q
Employees
12,286
40.5
12,244
63.0
0.3
Providers of finance
1,808
6.0
2,129
10.9
- 15.1
Government / public sector
3,758
12.4
1,229
6.3
ALLOCATION
55.8
19.3
19,459
68.8
6.7
Gross value added
42,073
36.3
31,435
31.3
33.8
Shareholders
Depreciation and amortisation of total tangible,
11,758
10.1
11,976
11.9
- 1.8
Net value added
30,315
26.2
intangible and investment assets
3,827
12.6
1,253
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
BMW GROUP VALUE ADDED 2021
To Our Stakeholders
in %
11.8 %
Depreciation and
amortisation
10.1%
Cost of materials
51.9 %
Net
value added
Other expenses
69,121
BMW Group Report 2021
* Cost of materials comprises all primary material costs incurred for vehicle production plus ancillary material costs (such as customs duties, insurance premiums and freight).
6.4
Group
8,555
28.2
2,522
13.0
Minority interest
81
108
0.3
0.4
- 1.2
Net value added
30,315
100.0
19,459
100.0
55.8
82
Other Information
63.7
- 18.9
10.5
0.8
1 Equity capital as a percentage of the balance sheet total, respectively.
2 Further information is provided in note 32 to the Group Financial Statements.
107
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
VALUE ADDED STATEMENT
The value added statement shows the value of work per-
formed by the BMW Group during the financial year, less the
value of work bought in. Depreciation and amortisation, cost
of materials, and other expenses are treated as bought-in
costs in the value added calculation. The allocation state-
ment applies value added to each of the participants in-
volved in the value added process. The bulk of the net value
added benefits the employees. The remaining proportion in
the Group is retained to finance future operations. The gross
value added amount treats depreciation and amortisation as
a component of value added which, in the allocation state-
ment, would be treated as internal financing.
Net value added by the BMW Group rose sharply in 2021 due
to the year-on-year improvement in earnings.
11.3
Financial Services segment
4.5
37.0
Financial Performance
with retail customers during the financial year 2021. The
number of contracts in place with dealerships and retail cus-
tomers fell by 2.6% to 3,929,583 contracts.
The earnings-related higher cash holdings of Group com-
panies contributed to the increase in cash and cash
equivalents.
Group equity rose to € 75,132 million, driven primarily by the
profit of € 12,382 million attributable to shareholders of
BMW AG and reduced by the dividend payout of € 1,253 million.
Adjusted for currency effects, pension obligations decreased
significantly to € 1,247 million, mainly due to actuarial gains
and the positive effects arising from the modernisation of the
pension model in Germany².
Financial liabilities decreased over the 12-month period due
to the repayment of bonds (adjusted for currency effects).
Despite the volatile situation with respect to the further
course of the coronavirus pandemic and the limited avail-
ability of semiconductor components, the BMW Group's re-
sults of operations, financial position and net assets all im-
proved during the financial year 2021.
BMW GROUP EQUITY RATIO1
BMW GROUP VALUE ADDED STATEMENT
in %
Automotive segment
31.12.2021
31. 12. 2020
Change in
%-points
32.7
28.4
4.3
41.5
Group
WORK PERFORMED
Revenues
Financial income
916
0.9
85.8
115,845
100.0
The BMW Group also has access to a syndicated credit line,
which was renegotiated in July 2017. The syndicated credit
line of € 8 billion has a term ending in July 2024 and is being
made available by a consortium of 44 international banks.
100.0
15.2
1.5
60,173
52,355
52.1
14.9
Other expenses
Bought-in costs
13,599
11.8
16,766
16.7
51.9
73,772
1,702
650
Other income
Total output
Cost of materials *
2021
in € million
2021
in %
2020
in € million
2020
0.6
in %
Change in %
111,239
96.0
98,990
98.4
12.4
2,904
2.5
100,556
To Our Stakeholders
Combined Management Report
Due to its significance in the Group and its close ties with
Group companies, expectations for BMW AG with respect to
its non-financial performance indicators correspond largely
to the BMW Group's outlook. This is described in detail in the
7 Outlook, Risk and Opportunity Management section of the Combined
Management Report.
2019
2018
2017
0
26.0
29.7
28.4
29.9
28.9
FINANCING
LEASING 20.7
20.8
21.4
21.2
22.3
46.7
|
50.5
49.8
50.1
52.2
in %
BMW GROUP NEW VEHICLES FINANCED OR
LEASED BY FINANCIAL SERVICES SEGMENT1
Financial Performance
← = Q
Other Information
2020
Remuneration Report
2021
in % per region
117
17
Eliminations gave rise to a loss before tax of € 257 million
(2020: profit before tax of € 910 million). The deterioration
here reflected the higher volume of leasing-business-related
eliminations required, primarily due to the year-on-year in-
crease in new leasing business, both in terms of sales vol-
ume and contract values.
The Other Entities segment recorded a profit before tax of
€ 531 million in the financial year under report (2020: loss
before tax of € 235 million). The turnaround was primarily
attributable to the improvement in other financial result,
which benefited from the recognition of fair value measure-
ment gains on interest rate hedges entered into with match-
ing maturities in conjunction with the refinancing of Financial
Services business in a period of rising rather than falling in-
terest rates.
Other Entities segment/Eliminations
The RoE in 2021 was therefore in line with the revised fore-
cast of between 20 and 23%. Originally, an RoE within a
range of 12 to 15% was predicted for 2021 in the BMW Group
Report 2020.
-
Return on equity (ROE) finished at 22.6%, significantly high-
er than the level recorded one year earlier (2020: 11.2%;
+11.4 percentage points). The main reason for the increase
was the improved risk profile throughout the year
in par-
ticular thanks to better remarketing outcomes and lower ex-
penses for credit risk allowances.
The Financial Services segment's profit before tax rose sig-
nificantly to € 3,753 million (2020: € 1,725 million).
At the same time, the remarketing values of those vehicles
also surged, with a corresponding positive impact on earn-
ings. Moreover, segment earnings benefited from the un-
changed low level of allowances required to be recognised
for credit risks. This contrasts with the situation one year ear-
lier, when earnings were impacted by additional risk provi-
sioning expenses for credit and residual value risks in light of
the coronavirus pandemic.
Results of operations of the Financial Services segment
Financial Services segment revenues increased to
€ 32,867 million (2020: € 30,044 million; +9.4%), driven in
particular by the higher level of revenues generated with
end-of-contract business on the back of ongoing favourable
conditions on pre-owned vehicle markets. Segment cost of
sales went up by € 791 million (2020: € 26,958 million;
+2.9%), mainly due to increased costs associated with the
sale of returned lease vehicles.
The dealership financing line of business was impacted by a
significant reduction in vehicle inventories held by dealer-
ships at the end of the year, mainly due to constraints on
new vehicle production caused by semiconductor shortages
on the one hand and the high demand for new and pre-
owned vehicles on the other. As a result, the volume of deal-
ership financing decreased significantly by 19.0% to € 13,149
million at 31 December 2021 (2020: € 16,241 million).
Dealership financing significantly lower
Under the brand name Alphabet, the Financial Services seg-
ment's fleet management business primarily offers leasing
and financing arrangements as well as specialist services to
commercial customers. At 31 December 2021, the contract
portfolio stood at 696,393 contracts (2020: 704,977 con-
tracts; -1.2%).
2 With effect from the fourth quarter 2019, the EU Bank comprises BMW Bank
GmbH and its branches in Italy, Spain and Portugal. The former subsidiary in
France was transferred for organisational purposes to the Europe / Middle East/
Africa region in conjunction with strategic realignments.
Due to adjustments in delivery figures, numbers have been adjusted retroactively,
7 Glossary.
Americas
24.5
Middle East/Africa
35.2
Europe/
18.3
EU Bank²
14.2
China
7.8
Asia/Pacific
CONTRACT PORTFOLIO RETAIL CUSTOMER FINAN-
CING OF FINANCIAL SERVICES SEGMENT 2021
Corporate Governance
Group Financial Statements
Combined Management Report
Results of operations of the Motorcycles segment
Financial Performance
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
115
15
In addition, a number of series production models were pre-
sented to the public during the year under report, including the
C 400 GT and C 400 X Scooter models in March and the
K1600 GT, K1600 GTL and K1600 B Tourer models in October.
BMW Motorrad systematically continued to pursue its elec-
tric mobility strategy throughout the year under report, in-
cluding the unveiling of the CE 04 Electric Scooter (Urban
Mobility segment) in July 2021. The launch of this new prod-
uct is scheduled for the first half of 2022.
New products unveiled: systematically embracing electrification
The BMW Group unveiled the BMW Motorrad Vision Amby at
the IAA Mobility in 2021. This completely new concept motor-
cycle has been designed as an electrified vehicle that com-
bines the typical elements of a bicycle and a motorcycle. To-
gether with the all-electric CE 02 concept vehicle, which was
presented to the public online in September, these models
provide a revealing glimpse of how the future of urban mobil-
ity could look.
7.4
China
8.3
6.5
Spain
5.7
USA
Brazil
8.3
40.2
The Motorcycles segment EBIT margin (profit before finan-
cial result as a percentage of revenues) came in at 8.3%
(2020: 4.5%; +3.8 percentage points) and thus within the
forecast target range of between 8 and 10%.
Profit before tax for the year was significantly higher at
€ 228 million (2020: € 100 million), mostly driven by favour-
able product mix effects and year-on-year sales volume
growth, the latter also partially reflecting the adverse impact
of coronavirus-related dealership closures in the previous
year.
The ROCE for the Motorcycles segment in 2021 was 35.9%
and therefore significantly higher than one year earlier (2020:
15.0%; +20.9 percentage points), mainly due to the im-
proved EBIT performance, and was therefore in line with the
revised outlook communicated in the quarterly statement to
30 September 2021.
Financial Services segment
Record segment profit before tax
To Our Stakeholders
BMW Group Report 2021
116
2 EU Bank comprises BMW Bank GmbH with its branches in Italy, Spain and
Portugal.
1 The calculation only includes automobile markets in which the Financial Services
segment is represented by a consolidated entity.
2021
2020
2019
2018
2017
|
4,926
BMW Group Report 2021
5,577
5,235
in 1,000 units
CONTRACT PORTFOLIO OF FINANCIAL
SERVICES SEGMENT WITH RETAIL CUSTOMERS
At 31 December 2021, the contract portfolio with retail cus-
tomers comprised 5,577,011 contracts and was therefore at a
similar level to one year earlier (2020: 5,591,799 contracts;
-0.3%). In regional terms, China grew at the fastest rate,
registering a 9.0% year-on-year increase. The Asia/Pacific
region finished at a similar level to the previous year (+0.3%).
By contrast, the Americas (-2.2%), the EU Bank² (-1.7%)
and the Europe/Middle East/Africa regions (-1.7%) all reg-
istered slight contract portfolio decreases.
The share of new BMW Group vehicles either leased or fi-
nanced by the Financial Services segment stood at 50.5%¹
(2020: 49.8%; +0.7 percentage points).
The total volume of new credit financing and leasing con-
tracts concluded with retail customers during the 12-month
period amounted to € 63,414 million, significantly up on the
previous year (2020: € 57,200 million; +10.9%).
Business with pre-owned vehicles also developed positively,
with the number of new contracts signed up by 1.4%. In
total, 411,520 new credit financing and leasing contracts for
pre-owned BMW and MINI brand vehicles were signed dur-
ing the year under report (2020: 405,713 contracts).
A total of 1,956,514 new credit financing and leasing contracts
were signed with retail customers during 2021 (2020:
1,845,271 contracts; +6.0%). The improved performance in
2021 reflected growth in both new credit financing business
(+7.8%) and new leasing business (+2.4%). The biggest in-
creases were registered in China and the USA. Overall, leas-
ing accounted for 31.8% and credit financing for 68.2% of
new business.
New business with retail customers moderately up on previous
year
In balance sheet terms, business volume grew slightly by 4.8%
to stand at € 139,530 million at the end of the reporting period
(2020: € 133,093 million).
ities in the Financial Services segment is provided in the
chapter Risk and opportunity management.
The financial year 2021 was a successful one for the Finan-
cial Services segment, with profit before tax up by 117.6% to
€ 3,753 million (2020: € 1,725 million). In the previous year,
additional risk provisioning expenses for credit and residual
value risks had had a negative impact on earnings. The year
under report, however, was influenced by the exceptionally
positive trend on pre-owned vehicle markets, particularly in
the USA and the UK. The upturn on the pre-owned market
caused the remarketing values of lease returns to increase
sharply. Alongside this favourable development, segment
earnings also benefited from the unchanged low level of al-
lowances that needed to be recognised for credit risks. The
credit loss ratio on the total credit portfolio fell to a historical-
ly low level of 0.18% at 31 December 2021 (2020: 0.21%),
comprising 0.11% (2020: 0.16%) for leasing business and
0.28% (2020: 0.31%) for credit financing business with re-
tail customers. Further information on risks and opportun-
5,486 5,592
To Our Stakeholders
Combined Management Report
Group Financial Statements
After deducting the expense for taxes, the Company reports
a net profit of € 4,910 million, compared to € 1,702 million in
the previous year.
The expense for income taxes related primarily to current tax
for the financial year 2021.
The financial result deteriorated by € 146 million, mainly due
to lower income from designated plan assets offset against
pension obligations.
Income from profit transfer agreements with Group com-
panies, reported in the line item Result on investments, was
similar to one year earlier.
Other operating expenses increased slightly to € 1,460 mil-
lion (2020: € 1,250 million) and, as in the previous year, com-
prised mainly expenses from financing transactions and ad-
ditions to other provisions.
Other operating income increased to € 2,199 million (2020:
€ 1,237 million), primarily due to income arising on the partial
reversal of the provision relating to EU Commission antitrust
proceedings.
chitectures. Research and development expenses rose by
19.6% year-on-year, reflecting the increase in vehicle and
module production start-up activities as the BMW Group
continues its electric offensive.
A large proportion of the research and development ex-
penses incurred in 2021 are related to new vehicle models
(including the all-electric BMW iX and BMW 14 models and
the new BMW 2 Series Active Tourer) as well as to the devel-
opment of digital products, automated driving and new ar-
Overall, selling expenses decreased slightly and general ad-
ministrative expenses increased significantly.
3,084
Gross profit rose by € 4,929 million to € 16,243 million.
Cost of sales went up by 13.4% to € 72,283 million, mostly
due to sales volume growth.
Revenues increased by € 13,486 million in 2021, primarily re-
flecting year-on-year sales volume growth. In geographical
terms, the greater part of the increase was generated
in the USA, China and Rest of Europe. Revenues totalled
€ 88,526 million (2020: € 75,040 million), of which Group
internal revenues accounted for € 60,373 million (2020:
€ 49,348 million) or 68.2% (2020: 65.8%).
Unappropriated profit available for distribution
Transfer to revenue reserves
Net profit
Other taxes
Profit after income tax
Income taxes
Financial result
Result on investments
Other operating expenses
1,253
-449
- 1,083
3,827
Subject to the shareholders' approval of the appropriation of
results at the Annual General Meeting, the unappropriated
profit available for distribution amounts to € 3,827 million
(2020: € 1,253 million). As a percentage of Group net profit,
the dividend corresponds to a payout ratio of 30.7% (2020:
32.5%), which is therefore within the forecasted target range
of 30% to 40%.
119
119
Financial and net assets position
2,342
Capital reserves
488
704
660
662
Subscribed capital
EQUITY AND LIABILITIES
2020
2021
in € million
2020
1,702
2021
ASSETS
in € million
Financial Performance
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
BMW AG BALANCE SHEET AT 31 DECEMBER
Intangible assets
Italy
-18
-214
1,720
Financial Performance
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
118
The BMW Group's results of operations, financial position
and net assets of the financial year 2021 are indicative of its
solid financial condition. Business developed in line with
management expectations. This assessment also takes into
account events after the end of the reporting period.
Despite the global challenges driven by semiconductor sup-
ply shortages and the impact of the coronavirus pandemic,
BMW AG can be satisfied with the course of business in the
financial year 2021.
At 31 December 2021, BMW AG employed a workforce of
83,308 people (31 December 2020: 84,668 people).
BMW AG develops, manufactures and sells automobiles and
motorcycles as well as spare parts and accessories manu-
factured in-house, by foreign subsidiaries and by external
suppliers, and performs services related to these products.
Sales activities are conducted primarily through branches,
subsidiaries, independent dealerships and importers. Bene-
fiting mainly from the diminishing impact of the coronavirus
pandemic, automobile deliveries increased by 187,648 units
to 2,437,591 units in the financial year 2021. This figure in-
cludes 674,995 units relating to series sets supplied to the
joint venture BMW Brilliance Automotive Ltd., Shenyang, an
increase of 76,142 units over the previous year.
Business environment and review of operations
The general and sector-specific environment of BMW AG is
essentially the same as that of the BMW Group and is de-
scribed in the ▾ Financial Performance section of the Combined
Management Report.
Differences in accounting treatments based on HGB (used
for the Company Financial Statements) and IFRS (used for
the Group Financial Statements) are mainly to be found in
connection with the capitalisation of intangible assets, the
creation of valuation units, the recognition and measure-
ment of financial instruments and provisions as well as the
recognition of deferred tax assets. Differences also arise in
the presentation of assets and liabilities and of items in the
income statement.
The key financial performance indicator for BMW AG is the
dividend payout ratio (unappropriated profit of BMW AG in
accordance with HGB in relation to net profit for the year of
the BMW Group in accordance with IFRS). The key non-fi-
nancial performance indicators are essentially identical and
concurrent with those of the BMW Group. These are de-
scribed in detail in the Financial Performance section of the
Combined Management Report.
Bayerische Motoren Werke Aktiengesellschaft (BMW AG),
based in Munich, Germany, is the parent company of the
BMW Group. The comments on the BMW Group and the Au-
tomotive segment provided in earlier sections apply to
BMW AG, unless presented differently in the following sec-
tion. The Financial Statements of BMW AG are drawn up in
accordance with the provisions of the German Commercial
Code (HGB) and the relevant supplementary provisions con-
tained in the German Stock Corporation Act (AktG).
FINANCIAL STATEMENTS
OF BMW AG
COMMENTS ON THE
Financial Performance
← = Q
Other Information
Remuneration Report
Corporate Governance
Results of operations
BMW AG INCOME STATEMENT
in € million
Revenues
4,927
- 1,068
- 280
-426
2,991
- 1,250
- 1,460
2,199
Other operating income
- 6,451
Research and development expenses
-3,243
-17
4,910
Administrative expenses
Selling expenses
2021
88,526
-72,283
16,243
1,237
-5,394
-2,747
-4,030
11,314
- 63,726
75,040
2020
Gross profit
Cost of sales
- 3,858
Other
10.2
France
324
Wraith/Dawn
828
873
-5.2
Cullinan
2,422
2,199
10.1
Rolls-Royce total
5,586
3,756
48.7
2021
2020
Change in %
Share of MINI
deliveries 2021 in %
164,270
157,040
4.6
54.4
25,120
24,875
1.0
8.3
1,909
18.6
360
427
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
LNC 3136
UCC 991
Sales growth for MINI
MINI also recorded higher sales volumes, with a total of
302,138 units delivered worldwide (2020: 292,582; +3.3%).
A key factor driving the growth was the number of electrified
vehicles sold. The all-electric MINI Cooper SE* was the
best-selling model in the MINI family, with sales almost
doubling to 34,851 units year-on-year (2020: 17,580 units;
+98.2%). Together with the MINI Countryman Plug-in Hy-
brid, it accounted for 18% of the brand's total deliveries
worldwide in 2021.
Revised models of the MINI 3-door, MINI 5-door and MINI
Convertible were also launched during the year under report.
Demand for the John Cooper Works Performance models re-
mained high.
New record for Rolls-Royce
Rolls-Royce Motor Cars can also look back on a highly suc-
cessful year, in which a record number of 5,586 ultra-luxury
vehicles were delivered to customers (2020: 3,756 units;
+48.7%). High demand for the marque worldwide was driv-
en in particular by the popularity of the Ghost* and the Cull-
inan*. The Black Badge variants, with their exclusive fea-
tures and more powerful engines, also remained extremely
sought-after.
30,385
DELIVERIES OF MINI VEHICLES BY MODEL VARIANT
MINI Hatch (3- and 5-door)
MINI Convertible
MINI Clubman
MINI Countryman
MINI total
DELIVERIES OF ROLLS-ROYCE VEHICLES BY MODEL
VARIANT *
in units
2021
2020
Change in %
Phantom
Ghost
in units
Group Financial Statements
32,958
10.0
EBIT margin²
MOTORCYCLES
Gross profit margin¹
Profit before tax for the year amounted to € 11,805 million
and was therefore significantly higher than one year earlier
(2020: € 2,722 million).
In line with expectations, the Automotive segment's RoCE
for 2021 rose sharply to 59.9% (2020: 12.7%; +47.2 percent-
age points), mainly due to the considerable year-on-year rise
in EBIT on the one hand and the lower volume of capital em-
ployed on the other, the latter attributable primarily to lower
average inventories during the financial year under report.
2021
2020
Change
in %-points
17.6
11.6
6.0
10.3
2.7
7.6
17.8
15.0
2.8
EBIT margin²
8.3
4.5
3.8
1 Gross profit as a percentage of segment revenues.
2 Profit before financial result as percentage of segment revenues.
114
BMW Group Report 2021
Gross profit margin¹
AUTOMOTIVE
in %
BMW GROUP MARGINS BY SEGMENT
82,363
77,709
6.0
27.3
302,138
292,582
3.3
100.0
⚫ 7 Consumption and carbon emissions
113
BMW Group Report 2021
To Our Stakeholders
-7.8
Combined Management Report
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
Results of operations of the Automotive segment
Automotive segment revenues amounted to € 95,476 mil-
lion (2020: € 80,853 million; +18.1%, currency-adjusted:
+18.3%) and were therefore significantly higher than one
year earlier.
Sales volume was also higher in 2021, whereby the increase
was held down by production shortfalls due to supply bottle-
necks for semiconductor components. However, this un-
favourable impact was more than offset by improved pricing
due to both the growing desire for individual mobility on the
one hand and the reduced worldwide availability of products
triggered by those same semiconductor component short-
ages on the other. Other factors with a positive impact on
segment revenues were the increased volume of high-re-
venue vehicles sold, the exceptionally strong performance of
pre-owned vehicle markets and hence better residual values
and growth in spare parts and accessories business.
Segment cost of sales rose significantly to € 78,637 million
(2020: € 71,456 million; +10.0%), whereby the year-on-year
increase was primarily attributable to sales volume growth.
Further negative factors included rises in raw materials and
energy prices, higher expenses due to the increasing propor-
tion of electrified vehicles, larger allocations to provisions for
performance-related remuneration components and higher
research and development expenses. In the previous year,
warranty expenses were impacted by the recognition of pro-
visions in connection with the exhaust gas recirculation cool-
er and other warranty-related items.
As described in the section above on the results of opera-
tions for the BMW Group as a whole, the changeover effects
arising from the modernisation of the pension model in Ger-
many had a total positive impact of € 542 million on Auto-
motive segment cost of sales and selling and administrative
expenses, while higher expenses for performance-related
remuneration components had an offsetting effect.
The net amount of other operating income and expenses im-
proved significantly, largely due to the partial reversal of the
provision for EU antitrust proceedings in the second quarter
2021, as described above.
The Automotive segment EBIT margin (profit before finan-
cial result as a percentage of revenues) came in at 10.3%
(2020: 2.7%; +7.6 percentage points). As forecast in the
quarterly statement to 30 September 2021, the EBIT margin
was within the target range of between 9.5 and 10.5% and
therefore in line with revised expectations. In the 2020 An-
nual Report, a segment EBIT margin within a target range of
between 6 and 8% was forecast.
At € 1,935 million, the Automotive segment's financial result
was significantly up on the previous year (2020: € 560 mil-
lion). As described above, the main driving factors in this re-
spect were the improved result from the at-equity accounted
Chinese joint venture BMW Brilliance Automotive Ltd., Shen-
yang, positive valuation effects recognised in other financial
result arising on investments held by the BMW i Ventures
fund and on the investment in SGL Carbon shares.
Group Financial Statements
2,239
Combined Management Report
BMW Group Report 2021
Remuneration Report
Corporate Governance
Group Financial Statements
111
1=1
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
Financial Performance
Numerous new BMW brand products
The BMW brand brought a variety of new vehicles to market in
2021. For example, at the beginning of the year, the all-electric
BMW iX31 was launched in Europe, followed in March 2021 by
the BMW 320e¹ and BMW 520e¹. These two new entry-level
models with plug-in hybrid drive systems are part of the BMW
3 Series and BMW 5 Series respectively. The BMW X3 and
BMW X4 model revisions were launched during the summer.
The second generation of the BMW 4 Series Gran Coupé
celebrated its market début in the autumn. The all-new BMW
iX and BMW i4 models were added to the all-electric vehicle
product range in November 2021. The BMW 2 Series Coupé
was launched on the North American market towards the
end of the year under report, with other markets following in
early 2022.
New milestone in BMW M success story
The BMW Group marked a new milestone in the success
story of its BMW M brand in 2021, delivering a total of
163,541 units of its high-performance models (2020:
144,231 units), 13.4% up on the previous year. The new
BMW M31 and BMW M41 as well as the BMW X5 M1 and
BMW X6 M¹ Sports Activity Vehicles all contributed signifi-
cantly to the sales growth recorded in 2021.
DELIVERIES OF BMW VEHICLES BY MODEL VARIANT 1,2
in units
2021
2020
↑
= Q
Share of BMW
Change in % deliveries 2021 in %
12.0
To mark its 50th anniversary in 2022, the BMW M brand will
continue its market offensive with the addition of new
all-electric models, starting with the BMW iX M601, which
celebrated its world première on the North American market
at the beginning of 2022. Together with the BMW 14 M501,
the BMW Group is also focusing on electric mobility in the
high-performance class.
Other Information
← = Q
Financial Performance
Motorcycles segment
Germany
13.4
as a percentage of sales volume
LARGEST MOTORCYCLE
BMW GROUP
MARKETS 2021
-
2021
2020
2019
2018
2017
0
|||||
BMW 1 Series / BMW 2 Series
194.3
165.6
164.2
175.2
BMW GROUP DELIVERIES OF MOTORCYCLES
in 1,000 units
(Roadster segment), the G 310 GS (Adventure segment) and
the R 1250 RT (Tour segment). The S 1000 R was also added
to the model range in the Roadster segment in May. Last but
not least, in September, BMW Motorrad launched the R 18 B
and the R 18 Transcontinental models in the Heritage seg-
ment – two further derivatives of the 1,800 cc boxer family.
The BMW Group brought five new motorcycle models and
three model revisions onto the market in 2021. The first of
these was the M 1000 RR the first M model from BMW
Motorrad to be powered by a high-performance in-line
four-cylinder engine - which was launched in February 2021
in the Sports segment. The same month saw the launch of
the R 18 Classic in the Heritage segment, based on the
high-capacity 1,800 cc R18 boxer engine. The launch was
followed in March 2021 by the model revisions of the G 310 R
-
New models launched in the year under report
Figures for the USA were also significantly higher than in
the previous year, with deliveries rising at a double-digit
rate to 16,030 units (2020: 12,135 units; +32.1%). The pic-
ture was similar in China, where deliveries climbed by 21.4%
to 14,309 units (2020: 11,788 units). Brazil also saw a slight
increase, with deliveries rising to 11,150 units (2020: 10,707
units; +4.1%).
In Europe, sales volume grew solidly by 8.9% to 111,126 units
in 2021 (2020: 102,026 units). Excellent sales performances
were recorded for France with 19,887 units (2020: 17,539
units; +13.4%), Italy with 16,034 units (2020: 13,918 units;
+15.2%) and Spain with 12,616 units (2020: 11,030 units;
+14.4%). Within a generally contracting market, deliveries in
Germany fell moderately to 25,972 units (2020: 27,516 units;
-5.6%).
Sales volume growth in nearly all markets
BMW Motorrad reports best sales performance to date
The Motorcycles segment had the most successful year in its
history with a total of 194,261 units delivered during the year
under report (2020: 169,272 units), 14.8% up on the previ-
ous year. Despite the ongoing impact of semiconductor
shortages and pandemic-related issues, the revised outlook
for the full year, as communicated in the quarterly statement
to 30 September 2021, was achieved within a generally fa-
vourable market environment.
169.3
To Our Stakeholders
265,964
-1.1
BMW X5/X6
240,504
206,774
16.3
10.9
BMW X7
54,957
48,693
12.9
2.5
BMW i (iX, i3 and 18)
BMW total
31,179
28,162
10.7
1.4
2,213,790
2,028,841
9.1
100.0
17 Consumption and carbon emissions data
2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2021: 651,236 units, 2020: 602,247 units).
1
12
112
18.7
19.3
347,565
414,671
BMW 3 Series / BMW 4 Series
490,969
420,295
16.8
22.2
BMW 5 Series / BMW 6 Series
326,212
322,457
1.2
14.7
BMW 7 Series / BMW 8 Series
62,628
268,915
66,728
2.8
BMW Z4
14,778
14,982
- 1.4
0.7
BMW X1/X2
311,928
304,270
2.5
14.1
BMW X3/X4
- 6.1
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesell-
schaft, Frankfurt am Main, Munich branch, has issued an
unqualified audit opinion on the financial statements of
BMW AG, of which the balance sheet and the income state-
ment are presented here. The BMW AG financial statements
for the financial year 2021 will be submitted to the operator of
the electronic version of the German Federal Gazette and
can be obtained via the Company Register website. These
financial statements are available on the BMW Group's web-
site at www.bmwgroup.com/ir.
Property, plant and equipment
12,520
Investment assets increased to € 5,067 million (2020:
€ 3,826 million) mainly due to a non-cash contribution re-
corded in capital reserves in the amount of € 957 million at
the level of BMW INTEC Beteiligungs GmbH, Munich.
Capital expenditure on intangible assets and property, plant
and equipment in the year under report totalled € 3,304 mil-
lion (2020: € 2,790 million), up by 18.4% compared to the
previous year. Depreciation and amortisation amounted to
€ 2,846 million (2020: € 2,646 million).
57,640
3,615
3,879
64,705
Total equity and liabilities
Deferred income
28,511
31,456
Liabilities
57,640
64,705
221
462
Other liabilities
1,261
1,086
Surplus of pension and similar plan assets over liabilities
Total assets
23,404
24,462
Liabilities to subsidiaries
73
72
IFRS) within a range of between 30% and 40%. Up to the
financial year 2021, the payout ratio was defined as the un-
appropriated profit of BMW AG in accordance with HGB in
relation to the Group net profit in accordance with IFRS
(2021: 30.7%).
4,785
For the financial year 2022, BMW AG expects an unchanged
dividend payout ratio (unappropriated profit of BMW AG in
accordance with HGB in relation to the Group net profit at-
tributable to shareholders of BMW AG in accordance with
BMW AG is integrated in the Group-wide risk management
system and internal control system of the BMW Group. Fur-
ther information is provided in the Internal Control System chap-
ter of the Combined Management Report.
Inventories rose to € 7,287 million (2020: € 5,748 million),
primarily due to higher levels of bought-in goods for resale,
work in progress and finished goods.
12,740
Receivables from subsidiaries increased to € 21,019 million
(2020: € 18,939 million), mainly reflecting the higher level of
intragroup trade receivables.
120
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Performance
Equity increased by € 3,762 million to € 18,927 million due to
the higher level of unappropriated profit reported, which
was, in turn, attributable to the combined effect of the previ-
ous year's lower dividend payout and the higher transfer to
other revenue reserves as well as the issue of shares of pre-
ferred stock in conjunction with the Employee Share Pro-
gramme in 2021. The equity ratio changed from 26.3% to
29.3%.
In order to secure pension obligations, cash funds totalling
€ 1,081 million were transferred to BMW Trust e. V., Munich,
in conjunction with a Contractual Trust Arrangement (CTA),
to be invested in plan assets. Plan assets are offset against
the related guaranteed obligations. The resulting surplus of
assets over liabilities is reported in the BMW AG balance
sheet on the line item Surplus of pension and similar plan
assets over liabilities.
Provisions for pensions increased from € 229 million to
€ 422 million, after offsetting of pension plan assets against
pension obligations.
Other provisions decreased slightly from € 10,093 million to
€ 9,995 million due to the utilisation and partial reversal of
the provision relating to EU Commission antitrust proceed-
ings. This was mainly offset by additions to personnel-relat-
ed provisions and provisions for statutory and non-statutory
warranty and product guarantee obligations.
Liabilities to subsidiaries increased to € 24,462 million
(2020: € 23,404 million), mainly in connection with intra-
group refinancing.
Deferred income increased by € 264 million to € 3,879 mil-
lion and included primarily amounts for services still to be
performed relating to service and maintenance contracts.
Liquidity within the BMW Group is ensured by means of a li-
quidity concept applied uniformly across the Group. This in-
volves concentrating a significant part of the Group's liquid-
ity at the level of BMW AG. An important instrument in this
context is the cash pool based at BMW AG. The liquidity pos-
ition reported by BMW AG therefore reflects the global activ-
ities of BMW AG and other Group companies.
Cash and cash equivalents increased by € 2,002 million to
€ 8,824 million, mainly due to surpluses from operating ac-
tivities. Cash outflows for investments in fixed assets had an
offsetting effect.
Risks and opportunities
BMW AG's performance is essentially dependent on the
same set of risks and opportunities that affect the
BMW Group and which are described in detail in the 7 Outlook,
Risk and Opportunity Management chapter of the Combined Man-
agement Report. As a general rule, BMW AG participates in
the risks entered into by Group companies in proportion to
the respective shareholding percentage. At the same time,
the result on investments has a significant impact on the
earnings of BMW AG.
Outlook
6,531
The increase in other receivables and other assets to
€ 4,071 million (2020: € 3,849 million) was mainly attributa-
ble to higher tax receivables. The decrease in financial mar-
ket receivables had an offsetting effect.
39,472
26
Registered profit-sharing certificates
778
758
Trade receivables
5,748
7,287
Inventories
15,165
18,927
Equity
16,834
18,511
Tangible, intangible and investment assets
1,253
Unappropriated profit available for distribution
3,826
5,067
Investments
11,013
Trade payables
Revenue reserves
12,096
27
Receivables from subsidiaries
3,827
21,019
1
101
Other receivables and other assets
Liabilities to banks
6,822
10,322
10,417
45,036
Provisions
3,336
3,077
Prepaid expenses
8,824
229
Pension provisions
Current assets
18,939
4,071
3,849
422
9,995
10,093
Marketable securities
Cash and cash equivalents
Other provisions
0
parties or the delivery of parts to cooperation partners (in-
cluding BBA) are not taken into account.
0.0
]]
Regulation (EC) No. 1126/2008. Revenues relating to the
sale of parts and components (e.g. after-sales business ex-
cluding the provision of repair services) and the supply of
production components to BBA and third parties, insurance
premiums, and interest income on deposit-taking and credit
business were not included, as these economic activities are
not classified as taxonomy-eligible.
In the case of the disclosures for capital expenditure, ref-
erence is made to 7 note 21 and 7 note 22 to the Group Finan-
cial Statements. Capital expenditure is calculated in accord-
ance with IAS 16.73 (e) (i) and (iii) (Property, Plant and
Equipment), IAS 38.118 (e) (i) (Intangible Assets) and IFRS
16.53 (h) (Leases). In accordance with the definition of cap-
ital expenditure provided in Annex I of the Delegated Regu-
lation (EU) 2021/2178, the KPI figure used for taxonomy
purposes comprises additions to intangible assets, in par-
ticular capitalised development costs, additions to property,
plant and equipment as well as right-of-use assets in ac-
cordance with IFRS 16, and leased-out products. Capital
expenditure relating to the sale of parts to external third
Other Information
To our Stakeholders
124
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Proportion (in %)
100.0
Operational expenditure comprises only non-capitalised
development costs, maintenance and refurbishment costs
for buildings, repairs to property, plant and equipment, rele-
vant IT costs in the Financial Services segment, non-capital-
ised expenses relating to short-term lease contracts with
expenditure for low value assets, and contracts with purely
variable remuneration. The KPI figure calculated for taxono-
my-purposes is not used by the BMW Group for financial re-
porting purposes. ]]
4,478
Total (in € million)
Further information on revenues is provided in note 7 to the
Group Financial Statements. Revenues are calculated in ac-
cordance with Article 2(5) of Directive 2013/34/EU. Re-
venues comprise revenue and income items recognised in
accordance with IAS 1.82(a), as amended by Commission
REVENUES
← = Q
Eligible activities
Non-eligible activities
CAPITAL EXPENDITURE
Eligible activities
Non-eligible activities
Total (in € million)
Total (in € million)
92,262
18,977
25,917
67
Proportion (in %)
99.7
0.3
OPERATIONAL EXPENDITURE
Eligible activities
Non-eligible activities
[Technical information
The proportion of total revenues, capital expenditure and op-
erational expenditure relating to eligible and non-eligible ac-
tivities are shown in each case as an aggregate percentage
for the BMW Group. Only taxonomy-eligible revenues, cap-
ital expenditure, and operational expenditure as listed for
Environmental Objective 1 ("Climate change mitigation") are
disclosed, given that taxonomy-eligible revenues, capital ex-
penditure and operational expenditure for Environmental
Objective 2 ("Climate change adaptation") are a subset of
the values for Environmental Objective 1 ("Climate change
mitigation"). This approach avoids double counting of rev-
enues, capital expenditure and operational expenditure
when determining the KPI in the numerator across multiple
economic activities.
Proportion (in %)
82.9
17.1
Outlook, Risk and Opportunity Management
Other Information
RISK AND OPPORTUNITY MANAGEMENT
Remuneration Report
← = Q
Combined Management Report
Outlook, Risk and Opportunity Management
The central bank in Japan is unlikely to change its highly ex-
pansionary monetary policy in 2022. The yen is therefore
likely to depreciate slightly against the euro.
After appreciating against the euro in 2021, the Chinese ren-
minbi is expected to lose in value slightly in the course of
2022, due to the Chinese central bank's recent decision to
ease monetary policy with a view to ensuring that the greater
demand for financing can be met.
The Russian rouble has depreciated significantly, especially
since the beginning of the military conflict with Ukraine. The
currencies of emerging market countries such as Brazil and
India are likely to remain under pressure against the US dol-
lar and the euro in 2022, mainly due to the ongoing impact of
the coronavirus pandemic.
International automobile markets
Supply bottlenecks are likely to continue having a dampen-
ing impact on automobile markets in 2022. The war in
Ukraine will significantly exacerbate the current supply bot-
tlenecks. The forecasts are generally based on the assump-
tion that the supply bottlenecks will be overcome in the sec-
ond half of 2022. Registration figures worldwide are expected
to grow at a slightly faster rate than in the previous year (ap-
proximately 77 million units; +4%). However, due to the
marked weakness of recent years, absolute registration fig-
ures remain well below normal levels.
Europe's automobile markets are expected to grow moder-
ately in 2022 (12.5 million units; +6%).
The trend is similar in the USA, with the market expected to
grow by 6% to 15.9 million units in 2022. However, this is still
below the pre-coronavirus crisis level.
In China, on the other hand, the automobile market as a
whole is expected to remain flat, reflecting the slowdown in
economic momentum. After the slight recovery in 2021, pas-
senger vehicle registrations are therefore expected to be in
the region of 21.2 million units in 2022, just 1% up on the
previous year.
The Japanese automobile market is currently predicted to
expand slightly in 2022 (4.4 million units; +2%).
Registration figures on international automobile markets are
expected to develop as follows in 2022:
INTERNATIONAL AUTOMOBILE MARKETS
Europe
[ MANDATORY EU TAXONOMY DISCLOSURES
Corporate Governance
OUTLOOK,
Group Financial Statements
BMW Group Report 2021
OUTLOOK
Both the Outlook and the Risk and Opportunity Management
sections of this report present the expected development in
2022, including the main risks and opportunities from the
perspective of the BMW Group's management. In line with
the Group's performance management, the outlook covers a
period of one year. Risks and opportunities are managed
on the basis of a two-year assessment period. Disclosures
relating to risk and opportunity management therefore ad-
dress a period of two years.
The continuous forecasting process applied within the
BMW Group ensures that it is constantly ready to take ad-
vantage of opportunities as they arise, but also to react ap-
propriately to any unexpected risks. The principal risks and
opportunities are described in detail in the Risk and Oppor-
tunity Management section. Actual outcomes may deviate
from the outlook due to unexpected events.
It is not yet possible to accurately assess the full impact of
the war in Ukraine, as the situation remains highly volatile,
making it extremely difficult to forecast macroeconomic de-
velopments and the likely performance of international auto-
mobile markets in the financial year 2022 Forecast assumptions.
Economic outlook
According to IMF projections in January, the global economy
will continue to grow in 2022, less strongly than in the previ-
ous year, and reach a level of around 4.0%. Risks definitely
persist, however, first and foremost due to the further course
of the war in Ukraine, the estimated impact of which has
been taken into account in the current economic forecasts
only rudimentarily. High inflation is likely to lead to interest
rate increases in some countries and weaken demand to
some extent. New virus variants, pandemic-related restric-
tions or prolonged supply bottlenecks could slow the pace of
economic growth. Further information on political and global
economic risks is also available in the section Risk and Oppor-
tunity Management.
In the Eurozone, GDP growth is projected to be around 3.0 %
in 2022. At 2.1%, the growth rate in Germany is expected to
be slightly lower than one year earlier and similar figures are
predicted for France (+2.8%), Italy (+3.1%) and Spain
(+4.6%).
The UK economy is projected to grow by 3.5% in 2022 de-
spite labour shortages and continued supply bottlenecks.
A growth rate of 3.2% is projected for the USA in 2022,
which is still positive, although not as strong as in the previ-
ous year. The stimulus and infrastructure packages adopted
by the US Administration are likely to provide support for the
economy.
After strong growth in the previous year, momentum in China
is expected to drop slightly in 2022. A growth rate of 5.1% is
therefore projected for the 12-month period.
After a slight recovery in the year under report, the pace of
growth in Japan is projected to increase moderately in 2022
(+2.3%).
Currency markets and international interest rate
environment
Currencies of particular importance for the international op-
erations of the BMW Group are the Chinese renminbi, the
British pound, the US dollar and the Japanese yen.
Whereas the ECB is likely to keep persevering with its expan-
sionary monetary policy in 2022, the US Federal Reserve
has announced its intention to tighten its policy in light of
high inflation and the USA's strong economic recovery and
to raise interest rates during the first half of 2022. Compared
with the previous year, the US dollar is therefore likely to ap-
preciate against the euro.
Following the gain in value of the British pound against the
euro in 2021 and the tighter monetary policy predicted in the
UK over the 12-month period, combined with moderate inter-
est rate hikes, a further slight appreciation of the currency is
expected in 2022.
125
To our Stakeholders
EU Taxonomy
Group Financial Statements
Other Information
Our understanding of sustainability
The BMW Group supports the overarching aim of the EU
Taxonomy Regulation to promote the private financing of
sustainable economic activities in order to make Europe the
world's first climate-neutral continent by 2050. As a com-
pany aspiring to establish a climate-neutral business model
across its entire value chain by 2050, we welcome initiatives
that serve this objective. For this reason, we have set our-
selves specific targets and report systematically each year
on the actual levels achieved.
In the coming years, the significant growth in electric mobility
will mean that - depending on the energy mix - the majority of
carbon emissions will be generated in particular within the up-
stream value chain rather than in the use phase. Without the
anticipated set of measures, emissions generated within the
BMW Group supply chain would already exceed direct carbon
emissions in the use phase prior to 2030. Strategy/Supplier net-
work/Carbon emissions Accordingly, the BMW Group is taking a ho-
listic approach to achieving its sustainability-related targets
and is committed to considering carbon emissions over the
entire life cycle of the vehicles it produces. Carbon Emissions and
Pollutants Currently, however, for the purpose of assessing car-
bon emissions, the EU taxonomy focuses exclusively on reduc-
ing emissions in the use phase that are attributable to locally
emissions-free drive systems, an approach which also ignores
the emissions indirectly attributable to the supply of energy.
Moreover, the taxonomy only reflects the impact of decarbon-
isation measures in production to the extent that they serve to
manufacture taxonomy-aligned products. However, increasing
the energy efficiency of paint shop processes also reduces
carbon emissions when a conventionally powered vehicle is
painted. 1]
⚫ Commission Delegated Regulation (EU) 2021/2139 dated 4 June 2021 and
Commission Delegated Regulation (EU) 2021/2178 dated 6 July 2021.
122
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
thereof Germany
thereof France
thereof Italy
thereof Spain
thereof UK
Corporate Governance
Remuneration Report
Other Information
EU Taxonomy
↑
= Q
[Explanatory comments on reporting procedures
For the reporting year 2021, the currently applicable simplifi-
cation rules only require reporting on taxonomy eligibility in
relation to the environmental objections of climate change
mitigation and climate change adaptation. Taxonomy eligi-
bility is an indicator of the environmental sustainability po-
tential of an economic activity based on the selective re-
quirements of the EU taxonomy. It does not, however, say
anything about the actual sustainability of a company's eco-
nomic activities at the present point in time. Our aspiration is
to successively make all of the BMW Group's economic ac-
tivities more sustainable.
The EU Taxonomy Regulation was published in July 2020.
The Delegated Act on the first two environmental objectives,
climate change mitigation and climate change adaptation,
and the delegated regulation on reporting requirements
(Article 8 of the EU Taxonomy Regulation) came into force at
the end of December 2021*. In addition, the EU Commission
published an initial FAQ document in December 2021 and a
second FAQ document in early February 2022 to explain ap-
plication issues relevant for the first year of reporting. On the
basis of the phased introduction of the EU taxonomy in the
Delegated Acts, in 2021 companies such as the BMW Group
are required to report the taxonomy-eligible proportion of
revenues, capital expenditures and operational expenditures
for the first two environmental objectives. From the reporting
years 2022 and 2023 onwards, the reporting requirements
are to be successively expanded to include the taxono-
my-aligned proportion of revenues, capital and operational
expenditures and to all environmental objectives.
significantly harmed, and minimum protection criteria for oc-
cupational safety and human rights must also be met.
Substantial contribution depends on the extent to which the
economic activity in question fulfils so-called technical
screening criteria. No other environmental objective may be
6) The protection and restoration of biodiversity and
ecosystems
121
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
An economic activity is taxonomy-eligible if it is described in
the Delegated Acts relating to the six environmental objec-
tives, regardless of whether that economic activity meets all
of the technical screening criteria stipulated in those Dele-
gated Acts. The BMW Group's business activities can cur-
rently be allocated to two economic activities that are de-
scribed in the Delegated Act relating to the first two
environmental objectives:
← = Q
EU TAXONOMY
[Within the framework of the EU Green Deal and the Action
Plan "Financing Sustainable Growth", the EU taxonomy is a
cornerstone of the EU's aspiration to become climate-neu-
tral by 2050. Its key objectives are to create transparency for
capital market participants and to channel capital flows to-
wards sustainable economic activities.
The EU taxonomy is a classification system that defines
economic activities as environmentally sustainable based on
predetermined criteria. Environmental sustainability is as-
certained in three steps.
Essentially, an economic activity can only be classified as
sustainable if it makes a substantial contribution to one of
the following six environmental objectives:
1) Climate change mitigation
2) Climate change adaptation
3) The sustainable use and protection of water and
marine resources
4) The transition to a circular economy
5) Pollution prevention and control
EU Taxonomy
← = Q
Economic activity 3.3 Manufacture of low carbon technol-
ogies for transport including the production of passenger
vehicles and motorcycles.
Economic activity 6.5 Transport by motorbikes, passen-
ger cars and light commercial vehicles including the pur-
chase, financing, renting, leasing and operation of pas-
senger cars and motorcycles.
to other environmental
objectives
Ensuring the minimum
safeguard criteria
+
for occupational and
human rights
]]
Economic
activity is
taxonomy-
aligned
* It should be noted that the relevant Delegated Regulation describes the economic
activity "Manufacture of low-carbon technologies for transport" differently for
Environmental Objective 1 (Climate change mitigation) and Environmental Objec-
tive 2 (Climate change adaptation). For the purposes of consistent reporting on the
taxonomy-eligibility of vehicle production, the BMW Group follows the description
given for Environmental Objective 1, given that taxonomy-eligible vehicle produc-
tion as listed for Environmental Objective 2 is a subset of taxonomy-eligible vehicle
production for Environmental Objective 1.
123
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
not cause significant harm
Economic activity does
+
environmental objectives
7 Overview of the BMW Group
Based on the descriptions of the two economic activities list-
ed for Environmental Objective 1 (Climate change mitiga-
tion), a large part of the BMW Group's business model falls
within the scope of the EU taxonomy*.
Only the sale of parts and components, such as aftersales
business excluding the provision of repair services and the
supply of production components to BMW Brilliance Auto-
motive Ltd. (BBA) as well as other third parties, and non-au-
tomotive banking and insurance services performed by the
[EXPLANATORY COMMENTS ON REPORTING PROCEDURES
Reporting in 2021
Reporting from 2022 onwards
Financial Services segment, are not described as economic
activities in the Delegated Regulation and are therefore not
taxonomy-eligible.
Accordingly, for 2021, 82.9% of revenues, 99.7% of capital
expenditure, and 100.0% of operational expenditure are
taxonomy-eligible.
7 Overview of the BMW Group
The taxonomy-aligned proportions that will need to be re-
ported in the coming years will initially be significantly lower
than these values. They will subsequently increase due to
the growing share of zero-emissions vehicles, the develop-
ment and production methods used, and potentially contri-
butions made to other environmental objectives as yet to be
defined. Due to the high level of investment in the trans-
formation of our business activities, for example in the elec-
trification of our vehicles and research into alternative drive
systems, these economic activities have the potential to be-
come taxonomy-aligned over time. Overall, we anticipate
that the proportion of taxonomy-aligned economic activities
will steadily rise as a result of the increasing electrification of
our product portfolio.
Economic activities are
described in the Delegated
Act on environmental
objectives 1 and 2
Taxonomy eligibility
+
Fulfillment of technical
screening criteria:
substantial contribution
to at least one of the
By 2025 the share of electrified automobiles in total Group
deliveries is expected to rise to at least 30%. Over the next
decade, we expect that some ten million of our all-electric
vehicles will be on the roads. Therefore, by 2030, at least
every second automobile delivered by the BMW Group will
be an all-electric model. ]]
USA
Additional major price hikes for energy and raw materi-
als, including rises triggered by the war in Ukraine and/or
the related sanctions
Japan
194,261
Slight increase
%
8.3
between 8 and 10
%
35.9
21.9
between 19 and 24
units
%
between 14 and 17
1 Deliveries including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2021: 651,236 units).
² EU-27 countries including Norway and Iceland; with effect from 2021, values are calculated on a converted basis in line with WLTP (Worldwide Harmonised Light Vehicles Test Procedure).
3 Efficiency ratio calculated on the basis of Scope 1 and Scope 2 CO₂ emissions (i.e. a market-based method according to GHG Protocol Scope 2 guidance; but excluding climate-changing gases other than carbon
dioxide from vehicle production (BMW Group manufacturing sites incl. joint venture BMW Brilliance Automotive Ltd. and motorcycles, but excluding contract manufacturers), as well as BMW Group non-manufac-
turing sites, (e.g. Research centre, Sales centre, offices) divided by the number of vehicles (excluding motorcycles) produced (BMW Group manufacturing sites incl. joint venture BMW Brilliance Automotive Ltd.,
excluding contract manufacturers).
4 New method of calculation applied with effect from 2022. Performance Management
129
BMW Group Report 2021
To our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
22.6
between 7 and 9
between 14 and 19
Slight decrease
Slight decrease
CO₂ emissions per vehicle produced³
EBIT margin
tons
0.33
%
10.3
Return on capital employed (ROCE)"
%
59.9
24.0
MOTORCYCLES SEGMENT
Deliveries to customers
EBIT margin
Return on capital employed (ROCE)4
FINANCIAL SERVICES SEGMENT
Return of Equity (RoE)
2022
Outlook
Significant increase
Significant increase
Slight increase
in line with last
year's level
Significant increase
Remuneration Report
115.9
Other Information
Outlook, Risk and Opportunity Management
Other functions such as Compliance and Human Rights and
the Internal Control System serve as key interfaces to the risk
management system. In its capacity as an independent con-
trol body, Corporate Audit reviews the risk management sys-
tem established by the Board of Management on an annual
basis.
According to Group-wide guidelines, every employee and
manager has a duty to report risks via the relevant reporting
channels. The key elements of an appropriate risk culture are
embedded in the BMW Group's core values, the BMW Group
Risk Management Policy and the BMW Group Risk Manage-
ment Guidelines as well as in the Group's overall risk strat-
egy. New information and requirements are continuously in-
corporated in the BMW Group's risk management system,
thereby ensuring its ongoing development. Training pro-
grammes and informational events are regularly conducted
throughout the BMW Group, particularly within the risk man-
agement network.
The risk management process is applicable across the entire
Group and comprises the early identification, analysis and
measurement of risks, the coordinated use of appropriate
risk management tools and the monitoring and assessment
of the measures taken.
RISK MANAGEMENT IN THE BMW GROUP
Group-wide risk management
Identifi-
cation
Analysis and
Measurement
Effectiveness
both the Board of Management and the Supervisory Board's
Audit Committee.
Practicability
Reporting/
Monitoring
Controlling
Risk Manage-
ment Steering
Committee
Supervisory
Board
Completeness
Board of
Management
Measures
Internal Control System
Group Audit
Group
Compliance
Council
Risk management is organised as a decentralised, Group-
wide network and steered by a centralised risk management
function. The various BMW Group divisions are represented
by Network Representatives. The responsibilities and tasks
of the centralised risk management function and the Net-
work Representatives are clearly documented and accepted.
Risks pertaining to BMW Brilliance are incorporated in this
Risk Report on the basis of the assessment made by the
centralised risk management function. In future, BMW Bril-
liance will also be integrated in the risk management net-
work. Significant risks reported from within the network are
firstly presented for review to the Risk Management Steering
Committee, which is chaired by Group Controlling. After they
have been reviewed, any significant risks are reported to
Organisation of Risk Management
← = Q
RISK AND OPPORTUNITY
MANAGEMENT
The BMW Group's business is exposed to a variety of uncer-
tainties and changes. Against this backdrop, it consciously
takes well-calculated risks and makes full use of any oppor-
tunities that present themselves.
The management of risks and opportunities is essential in
order to respond appropriately to any changes that occur in
political, economic, ecological, social, technological or legal
conditions. The BMW Group has put a comprehensive risk
management system in place to effectively manage these
risks as they arise.
31-9 457 423-16° X MT 5.00 H2 MIC
The aim of the risk management system is to identify, as-
sess and proactively manage any risks that could threaten
the attainment of the Group's corporate targets. As part of
that process, any individual or cumulative risks capable of
posing a threat to the profitability of the business are both
monitored and managed.
All opportunities and risks that are expected to materialise
have already been addressed in the Outlook Report. The fol-
lowing sections focus on potential future developments or
events that could result in a positive (opportunity) or a nega-
tive (risk) deviation from the outlook for the BMW Group.
As a general rule, the time horizon considered covers the
current and the following financial year. Potential short-term
effects of climate change are taken into account.
Medium to long-term risks in connection with the climate
change are described in the section Climate-related opportunities
and risks.
With effect from 11 February 2022, the BMW Brilliance Auto-
motive Ltd. (BMW Brilliance) joint venture is fully consolidat-
ed in the Group Financial Statements. If the full consolida-
tion of BMW Brilliance from that date is expected to result in
a different classification of individual risk categories, such
changes are indicated separately in this Risk Report.
Overall Risk and Opportunity Situation
The assessment of the overall risk situation is based on a
consolidated view of all significant individual risks to which
the BMW Group is exposed. The BMW Group's overall expo-
sure to risk, including the impact of integrating BMW Bril-
liance, has increased moderately compared with the previ-
ous year. A prolonged military conflict between Russia and
Ukraine and a worsening of the coronavirus pandemic could
I have a further negative impact on the global economy and
hold down sales volume. At the same time, considerable un-
certainties remain in the form of potential bottlenecks along
the entire supply chain, particularly for semiconductors.
However, if the effect of these issues were to prove less se-
vere in 2022 than currently expected, opportunities could
arise that could benefit both revenues and earnings.
The Management and the Supervisory Board do not see any
threat to the BMW Group's status as a going concern. Simi-
lar to one year earlier, the current set of risks to the
BMW Group are considered to be manageable. If these risks
- or opportunities - were to materialise, they could have an
impact on underlying key performance indicators, thus caus-
ing deviations from the outlook. Regardless of the full con-
solidation of BMW Brilliance, the BMW Group's financial re-
sources are stable and liquidity requirements are currently
covered by existing liquidity as well as the various financing
instruments available.
In addition to the risks described below, unforeseen events
could have a negative impact on business operations and
hence on the BMW Group's results of operations, financial
position and net assets as well as on its reputation.
BMW
130
BMW Group Report 2021
To our Stakeholders
Combined Management Report
Outlook, Risk and Opportunity Management
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
China
g/km
13.0
Corporate Governance
Remuneration Report
← = Q
Outlook, Risk and Opportunity Management
The outlook takes account of all information available at the
time of reporting and which could have an impact on the
overall course of business of the Group. The expectations
contained in the outlook are based on the BMW Group's
forecast for 2022 and reflect its most recent status. The ba-
sis for the preparation of and the principal assumptions used
in the forecasts – which consider the consensual opinions of
leading organisations, such as economic research institutes
and banks are set out below. The BMW Group's outlook
takes account of these assumptions.
-
The coronavirus pandemic is no longer currently expected to
have a significant impact on the results of operations, finan-
cial and net assets position of BMW AG and the Group as a
whole.
However, international demand for semiconductors is still
predicted to remain high, causing the supply situation to re-
main tight. As in the financial year 2021, the risk of supply
bottlenecks affecting the availability of the semiconductor
components required for production persists and the situa-
tion is not expected to ease before the second half of 2022.
The dual impact of an economic upturn and supply bottle-
necks caused raw materials prices to rise sharply in 2021.
The BMW Group expects the overall situation on raw mate-
rials and energy markets to remain tense in the foreseeable
future and has already taken the initial impact of the pre-
vailing situation into account in its outlook for the financial
year 2022.
Group Financial Statements
Moreover, the war in Ukraine is having a substantial effect on
that country's automotive supply industry, with supply restric-
tions resulting in production schedule adjustments and/or
interruptions at a number of BMW Group plants.
A significant tightening of sanctions against Russia or a
change in the interpretation of existing sanctions
An escalation of the conflict outside Ukraine
Regardless of these uncertainties, however, the situation re-
mains highly volatile, making it very difficult to accurately
forecast outcomes for the financial year 2022. Other possible
longer-term effects of the war in Ukraine cannot be estimat-
ed at the present time and are therefore not taken into ac-
count in the outlook.
Outlook for the BMW Group
indicators
-
- key performance
Prior to the outbreak of war in Ukraine, the BMW Group was
set to forecast slight year-on-year growth in deliveries of
BMW, MINI and Rolls-Royce brand vehicles for the Automo-
tive segment. However, due to the production schedule ad-
justments and interruptions described above that have been
triggered by the war in Ukraine, it now predicts deliveries to
remain at previous year's level.
The BMW Group expects to achieve its target of slightly cut-
ting the carbon emissions generated by its EU new vehicle
fleet, driven in particular by the significantly growing share of
electrified automobiles in total deliveries.
Without the impact of the war in Ukraine, carbon emissions
per vehicle produced would have been predicted to decline
moderately². However, in light of the likely adverse impact of
production schedule adjustments and interruptions trig-
gered by the war in Ukraine, the scale of reduction is now
only expected to be slight.
The outlook does not factor in the following:
Combined Management Report
To our Stakeholders
BMW Group Report 2021
Total
International motorcycle markets
Change
in Registrations %
+6
+6
+4
+4
+6
+12
+6
+1
+2
+4
The BMW Group expects, subject to the further development
in Ukraine, the world's motorcycle markets in the 250 cc plus
class to remain stable in 2022, with volumes generally re-
maining at the previous year's level.
The impact of the war in Ukraine, the limited availability of
vehicle components, the further course of the coronavirus
pandemic, and macroeconomic factors will continue to influ-
ence the performance of motorcycles markets in 2022.
Expected consequences for the BMW Group
Future developments on international automobile markets
have a direct impact on the BMW Group. The challenging
market environment, the supply situation for vehicle compo-
nents, the coronavirus pandemic and further developments
in the Ukraine conflict are currently the factors most likely to
have a significant impact on business performance. Flexible
coordination between the Group's sales and production net-
works will also help cushion the impact of unforeseeable de-
velopments in individual regions. Risk and Opportunity Management
Assumptions used in the outlook
Both the Outlook and the Risk and Opportunity Manage-
ment sections of this report contain forward-looking state-
ments based on the BMW Group's expectations and assess-
ments and may be influenced by unforeseeable events. As a
result, actual outcomes can deviate either positively or neg-
atively from the expectations described below, due to chang-
es in the political and economic environment as well as other
factors. Risk and Opportunity Management
The following outlook covers a forecast period of one year
and is based on the composition of the BMW Group during
that time. For this reason, the outlook also includes the im-
pact of fully consolidating BMW Brilliance Automotive Ltd.,
Shenyang, (BMW Brilliance). On 11 February 2022, the
BMW Group increased its shareholding in the BMW Bril-
liance joint venture from 50% to 75%*. The full consolida-
tion of BMW Brilliance with effect from that date has a signif-
icant impact on some of the BMW Group's key performance
indicators.
* See note [3] to the Group Financial Statements
126
Excluding the impact of the full consolidation of BMW Bril-
liance and the war in Ukraine, the Automotive segment EBIT
margin had been expected to finish within a target range of
between 8 and 10%.
CO₂ emissions EU New Vehicle Fleet²
Although, as described above, the BMW Group had been set
to forecast sales volume growth, the EBIT margin had never-
theless been expected to be lower year-on-year due to the
absence of various positive effects that had benefited the fi-
nancial year 2021, such as the partial reversal of the provi-
sion relating to the concluded antitrust proceedings, the
remeasurement gains arising on the modernisation of the
pension plan, and the highly favourable risk situation in the
leasing line of business. The full consolidation of BMW Bril-
liance would have increased segment revenues and EBIT
sharply, but due to consolidation effects, no significant im-
pact on the EBIT margin in the Automotive segment was ex-
pected for the financial year 2022 and the figure would have
been likely to remain between 8 and 10%. However, in light
of the probable adverse impact of production schedule ad-
justments and interruptions triggered by the war in Ukraine,
an EBIT margin of between 7 and 9% is now thought to be
more realistic.
1 Delivery figures already include vehicles produced by BMW Brilliance.
← = Q
Outlook, Risk and Opportunity Management
BMW GROUP KEY PERFORMANCE INDICATORS
GROUP
Profit before tax
Workforce at year-end
Share of women in management positions
in the BMW Group
AUTOMOTIVE SEGMENT
Other Information
2021
reported
€ million
16,060
118,909
%
18.8
Deliveries to customers'
units
2,521,514
Share of electrified vehicles in deliveries
%
2021
adjusted
Remuneration Report
Corporate Governance
Group Financial Statements
2 Carbon emissions per vehicle produced already take BMW Brilliance into account.
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Combined Management Report
Outlook, Risk and Opportunity Management
Corporate Governance
Remuneration Report
Other Information
← = Q
ments and interruptions triggered by the war in Ukraine, a
ROCE in a range between 14 and 19% is now considered
more likely.
Motorcycles segment deliveries are forecast to increase
slightly. The EBIT margin is predicted to finish within a range
of between 8 and 10% and, based on the revised methodol-
ogy, the segment ROCE within a range of 19 and 24%. Key
performance indicators for the Motorcycles segment will only
be marginally affected by the full consolidation of BMW Bril-
liance and are not currently expected to be substantially im-
pacted by the war in Ukraine.
The RoE in the Financial Services segment is predicted to
finish within a range of between 14 and 17%. Compared with
the financial year 2021, it has been assumed that the highly
favourable results from remarketing lease returns, combined
with an easing of the supply situation for semiconductors
during the second half of the year, will return to a normal lev-
el. The full consolidation of BMW Brilliance will not impact
the Financial Services segment, as the companies held
jointly with BMW Brilliance that are attributable to this seg-
ment have already been reported on a fully consolidated ba-
sis due to the segment's majority shareholdings in the enti-
ties concerned. Likewise, no significant impact is currently
expected from the war in Ukraine.
Excluding the impact of the full consolidation of BMW Bril-
liance, Group profit before tax would have decreased signifi-
cantly. Without the impact of the war in Ukraine, sales vol-
umes would have been expected to develop positively over
the forecast period. However, this volume growth would not
have been sufficient to compensate for the previous year's
effects, such as the partial reversal of the provision relating
to the concluded antitrust proceedings, the remeasurement
gains arising on the modernisation of the pension plan, and
the highly favourable risk situation within the credit and leas-
ing lines of business. Nonetheless, including the impact of
the full consolidation of BMW Brilliance, Group profit before
tax is set to increase significantly over the forecast period,
mainly reflecting BMW Brilliance's additional contribution to
the Automotive segment's operating profit as well as the
remeasurement of the at-equity investment previously re-
corded, with a positive effect of approximately € 7 to € 8 bil-
lion to be recognised within the financial result. These ef-
fects would more than compensate for the elimination of the
previous at-equity result of BMW Brilliance in the financial
result and the negative impact of consolidated adjustments
arising on full consolidation. Even taking into account the
negative impact of production schedule adjustments and in-
terruptions triggered by the war in Ukraine, Group profit is
expected to increase significantly.
The share of women in management functions within the
BMW Group is expected to rise slightly, irrespective of the
Group's increased stake in BMW Brilliance.
Without taking the full consolidation of BMW Brilliance into
account, the targets described above would have been
achieved with only a slight rise in the overall number of em-
ployees. However, the increase in the stake in BMW Bril-
liance and the full consolidation of that entity will cause the
number of employees to rise significantly.
The BMW Group's actual business performance may also
deviate from current expectations due to the risks and op-
portunities discussed below in the section on Risk and Oppor-
tunity Management.
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To our Stakeholders
Combined Management Report
Based on the newly adopted methodology, RoCE for the Au-
tomotive segment would have been forecast at between 19
and 24%, reflecting the lower level of earnings otherwise
expected without the increase in the stake in BMW Brilliance
and the impact of the war in Ukraine. However, the addition-
al net assets identified in conjunction with the increased
stake in BMW Brilliance plus fair value adjustments arising
on the purchase price allocation have the twin effect of in-
creasing capital employed. In combination with elimination
effects on earnings in 2022, the targeted range for ROCE
would therefore have been between 15 and 20%. However,
in light of the adverse impact of production schedule adjust-
Other Information
Group Financial Statements
ing from simple tariff increases to further import and export
restrictions on specific technologies. This could also lead to
less favourable import and export conditions for the
BMW Group.
Additional risks could result from the tightening of existing
import and export regulations, which could, in turn, lead pri-
marily to additional expenses, but also complicate the im-
port and export of vehicles and parts.
Changes in trade policies could also have a positive impact
on the BMW Group's earnings in the short to medium term.
Any reduction in tariff barriers, import restrictions or direct
excise duties could result in lower manufacturing costs or
enable products and services to be offered to customers at
more attractive prices. Additional opportunities potentially
arising from changes in legislation and regulations are clas-
sified as insignificant.
Market developments
Increasingly fierce competition among established manufac-
turers and the emergence of new competitors can have re-
percussions that are difficult to predict. Unforeseen con-
sumer preferences and changes in brand perceptions could
also give rise to both opportunities and risks. The risk amount
attached to the occurrence of market risks over the two-year
assessment period is classified as medium.
Any toughening of market competition could ramp up pres-
sure on sales volume and selling prices. For instance, the
BMW Group could be confronted with short-term supply and
demand distortions in the transition from conventionally
powered vehicles to alternative drive concepts. Customer
behaviour can also change, such as in the event of changing
social values and norms or as a consequence of governmen-
tal policies relating to vehicle usage.
Sales markets are continuously monitored in order to opti-
mally meet customer requirements and, at the same time,
capitalise on opportunities in terms of sales growth and pri-
cing. Opportunities arising over the assessment period are
classified as insignificant.
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Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
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Outlook, Risk and Opportunity Management
Risks and Opportunities Relating to Operations
Risks and opportunities relating to production and technologies
Risks relating to production processes and fields of technol-
ogy can lead to unplanned production interruptions or add-
itional costs due to vehicle recall actions. The risk amount
attached to the occurrence of such risks over the two-year
assessment period is classified as medium.
Potential causes of production downtimes include fires, nat-
ural hazards and infrastructural damage as well as machine
and tooling breakdowns. Equally significantly, however, pro-
duction could also be impaired by bottlenecks in the supply
of production materials or components, utility or media sup-
ply failures or disruptions to transportation, logistics or IT
systems, all of which could be caused by cyberattacks,
among other factors.
All production units have a variety of measures in place to
deal with potential production interruptions and downtimes,
some of which are already integrated in the planning process
and also applied at operational level with a high degree of
flexibility. These measures have an effect on both the amount
of damage and the probability of the risks occurring.
Technical fire protection, transparency with regard to poten-
tial natural hazards relevant for site selection and ongoing
operations, underpinned by other appropriate (e.g. struc-
tural) measures, a rapid response by on-site fire services
and employee training are the key strategies for preventing
or reducing any potential damage from fires and/or natural
hazards. Furthermore, policies are in place with insurance
companies of high credit standing to mitigate the impact of
any property damage caused by fire and/or natural events
that lead to significant business interruptions at either the
Group's or suppliers' premises.
Appropriate measures have been put in place to counter the
threat of targeted cyberattacks, reflecting the fact that any
such attacks could cause damage to production facilities
emissions could affect the Company's reputation.
At present, the BMW Group is seeing a continuous trend to-
wards increasingly stringent vehicle emissions regulations,
particularly for conventional drive systems, with the aim of
improving air quality, above all in conurbations. A legislative
proposal for the new Euro 7 emissions standard is being dis-
cussed within the European Union. As the technical require-
ments and the implementation timetable for the new stand-
ard are still subject to consultation, a certain element of risk
is involved. A discussion about fuel consumption and carbon
The introduction of more stringent legislation and regula-
tions, particularly regarding emissions, safety and consumer
protection as well as regional vehicle-related purchase and
usage taxes, poses a significant risk for the automobile in-
dustry. Country- and sector-specific trade barriers can also
be subject to change at short notice. Any sudden tightening
of regulations in these areas could necessitate significantly
higher investments and ongoing expenses or exert influence
on customer behaviour. The risk amount attached to the oc-
currence of the risk of disruption in product availability due to
unforeseeable short-term changes in legislation and regula-
tions is classified as high.
Strategic and Sector-Specific Risks and Opportunities
Changes in legislation and regulatory requirements
Stable
Insignificant
Significant
Decreased
Stable
1 The classified risk amount does not change as a result of the full consolidation of BMW Brilliance.
2 As shown in the section "Risk measurement", the risk amount ranges used for risk classification purposes have been updated. The change shown here relates to the classification of prior-year risks using the
updated risk amount ranges.
133
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To our Stakeholders
Group Financial Statements
Corporate Governance
and possibly result in long downtimes and substantial
losses.
Remuneration Report
← = Q
Combined Management Report
Outlook, Risk and Opportunity Management
Macroeconomic Risks and Opportunities
Economic conditions have an impact on business perform-
ance and hence on the level of earnings generated by the
BMW Group. Unforeseen disruptions in global economic re-
lations can have highly unpredictable effects. The risk
amount over the two-year assessment period is classified as
medium.
The invasion of Ukraine by Russian troops has, among other
factors, triggered supply restrictions affecting components
from Ukraine which have already led to production schedule
adjustments and interruptions at a number of BMW Group
plants. If the military conflict continues for a prolonged peri-
od, it will also have a perceptible impact on sales.
There is a risk of a further escalation of the conflict and
therefore of the sanctions imposed by Western countries on
Russia as well as possible retaliatory measures by Russia.
Any additional sanctions relating to the capital market and
the import and export of goods and raw materials will have
distinct consequences that are also likely to have a negative
impact on economies outside Russia.
Global supply shortfalls - particularly for semiconductors
continue to dampen the prospects of economic growth.
These bottlenecks could persist throughout the whole of
2022, with the resulting shortage of (upstream) products
causing the hitherto strong recovery of the global economy
to lose pace.
Mutation could result in the emergence of a highly conta-
gious coronavirus variant that could, in tum, cause severe
disease. In this case, strict containment measures could
slow down the economic recovery. The BMW Group is moni-
toring the situation on a continuous basis and taking appro-
priate measures as required.
The conflict between the USA and China is also set to re-
main a major topic of discussion. The focus is currently shift-
A further risk is seen in the very high rate of inflation current-
ly being observed in many regions. If inflation were to remain
high over an extended period, rising prices would curb de-
mand. The expected interest rate hikes by central banks will
also have a dampening effect on business.
Macroeconomic opportunities that could have a sustained
positive impact on the BMW Group's results of operation are
classified as insignificant.
Other Information
Vehicles could be damaged or destroyed by natural hazards
or other threats during transport from the Group's production
plants to its various sales regions. Premiums and deductibles
for transport insurance policies currently remain at a persis-
tently high level. Any further increase could make it econom-
ically unviable to take out insurance, as a result of which the
BMW Group would be required to bear the losses itself.
The BMW Group recognises appropriate provisions for stat-
utory and non-statutory warranty obligations. It cannot be
ruled out, however, that additional costs could arise in con-
junction with vehicle recalls that are either not covered or not
fully covered by provisions. Despitely, deploying thorough
quality assurance processes, such risks can always arise if
the materials and/or processing procedures used prove in-
sufficient, in some cases years after a product has been
launched. A high number of recalls could also have a nega-
tive impact on the BMW Group's reputation. Further infor-
mation on risks in conjunction with provisions for statutory
and non-statutory warranty obligations is provided in
note 33 to the Group Financial Statements.
The development and testing of new technologies inherently
give rise to a certain level of risk. An accident - for example
involving a vehicle in automated driving mode could have
a negative impact on the Company's reputation, regardless
of cause. Avoiding these risks is a top priority for the
BMW Group.
Russia and Ukraine could lead to a further increase in the
number of cyberattacks. Moreover, legal and regulatory re-
quirements are becoming ever stricter worldwide. Examples
include the Second Act to Increase the Security of Informa-
tion Technology Systems (German IT Security Act 2.0) and
new data protection laws in China.
In view of the higher incidence of observed attacks on
BMW Group applications and systems, the risk amount
despite extensive security measures - is classified as high.
In addition to threats in the form of cyberattacks and phys-
ical interventions, information and data can also be compro-
mised by a lack of risk awareness and inappropriate behav-
iour. The main direct consequences would be negative
effects on revenues, disruption in the production of compo-
nents and vehicles, or reputational damage.
The BMW Group places great emphasis on protecting busi-
ness information, for instance against unauthorised access
and/or misuse. Data security is an integral part of all Group
business processes and practised in accordance with the
ISO/IEC 27001 international standard. In conjunction with
risk management requirements, risks relating to information
security, data protection and IT are systematically docu-
mented, allocated appropriate measures by the departments
concerned and continuously monitored with regard to threat
level and risk mitigation. Regular analyses and controls as
well as tight security management policies ensure an appro-
priate level of security.
However, despite continuous testing and preventive security
measures, it is impossible to completely eliminate risks in
this area. All authorised persons are required to treat infor-
mation such as confidential business, customer and em-
ployee data with great care, use information systems
securely and handle risks in a transparent manner. Uniform
requirements that apply throughout the Group are
136
BMW Group Report 2021
Group Financial Statements
Corporate Governance
Remuneration Report
Information security, data protection and IT
Digitalisation and automation across all areas of the busi-
ness and all BMW Group products offer excellent opportu-
nities that are helping move the organisation forward on its
strategic path towards sustainability. At the same time, re-
quirements regarding the confidentiality, integrity and avail-
ability of information are becoming increasingly strict, with a
corresponding impact on the related use of information tech-
nology (IT). The level of threat has continuously risen in re-
cent years and the impact of the military conflict between
Other Information
Combined Management Report
Outlook, Risk and Opportunity Management
documented in a comprehensive set of rules and guidelines.
A consistently applied policy of updating such rules and reg-
ulations to current situations, coupled with regular commu-
nication, awareness-raising and training measures, form the
basis for a high level of security and risk awareness in
general.
With regard to cooperations and business partnerships, the
BMW Group protects its intellectual property as well as its
customer and employee data by issuing clearly defined in-
structions on information security and data protection. Trade
secrets and sensitive personal data are subject to particular-
ly stringent security measures.
The loss or theft of sensitive business information could also
have a negative impact on the Company's reputation.
Financial Risks and Risks relating to the use of Financial
Instruments
Currency risks and opportunities
As an internationally operating enterprise, the BMW Group
conducts business in a variety of currencies, thus giving rise
to currency risks and opportunities. A substantial portion of
Group revenues, production, other purchases and funding
occur outside the eurozone, particularly in China and the
USA. Regularly updated cash-flow-at-risk models and scen-
ario analyses are used to measure currency risks and oppor-
tunities. The risk amount associated with currency risks is
classified as low. The risk situation is more favourable than
in the previous year, as exchange rates have developed posi-
tively compared with those assumed in earlier forecasts.
Operational currency management is based on the results of
currency risk analyses. The BMW Group manages currency
risks at both strategic (medium to long term) and operational
level (short to medium term). Medium- to long-term meas-
ures include increasing production and purchase volumes in
foreign currency regions, i. e. natural hedging. Currency risks
are managed in the short to medium term and for operation-
al purposes by means of hedging on financial markets. The
principal objective is to increase planning reliability for the
BMW Group. Hedging transactions are entered into only with
financial partners of good credit standing. Depending on ex-
change rate developments, significant opportunities may
arise.
Risks and opportunities relating to raw materials prices
As a manufacturing company, the BMW Group is exposed to
purchase price risks, particularly in relation to the raw mate-
rials used in vehicle production. Changes in prices are moni-
tored via a well-defined management process, the primary
objective of which is to improve planning reliability for the
BMW Group as a whole.
← = Q
Significant
As in other areas, the BMW Group is shaping the future of its
sales organisation with a clear focus on placing the custom-
er experience at the centre of its activities. Our declared aim
is to deliver the best premium brand and customer experi-
ence in the industry. A key building block in this endeavour is
the digitalisation of the customer journey. In conjunction with
the dealership organisation, new opportunities are arising in
this context, which the BMW Group, however, classifies as
insignificant.
Risks and opportunities relating to the sales network
The BMW Group sees opportunities relating to production
processes and fields of technology primarily in the competi-
tive edge gained from mastering new and complex technol-
ogies. Given the long lead times involved in developing new
products and processes, additional opportunities are not
expected to have a significant earnings impact on the
BMW Group during the assessment period.
Risks and opportunities relating to purchasing
Purchasing risks relate primarily to supply risks caused by
the failure of a supplier as well as to threats to BMW Group-rel-
evant know-how within the supplier network. Production
problems at supplier level could lead to consequences
caused by increased expenditure for the BMW Group due to
production interruptions and a corresponding reduction in
vehicle sales. The BMW Group deploys an extensive set of
checks and proactive management measures to tackle the
challenges currently facing the automotive supply industry.
The risk amount attached to purchasing risks over the two-
year assessment period is classified as high.
Potential reasons for the failure of individual suppliers to de-
liver include IT-related risks, non-compliance with sustain-
ability or quality standards, the lack of availability of raw ma-
terials and other input materials, and the occurrence of
natural hazards and/or fires. Insufficient financial capacity
on the part of individual suppliers can also jeopardise sup-
plies to production plants. In this context, the BMW Group
ensures financial support for suppliers that are of critical im-
portance for maintaining production. Moreover, any major
deterioration of a particular country's security situation is
incorporated in the risk measurement process as a potential
reason for the failure of a value or supply chain.
Among other challenges, the military conflict between Rus-
sia and Ukraine is causing disruptions in the supply of com-
ponents produced in Ukraine. Any further escalation could
potentially affect both direct suppliers and upstream
sub-suppliers from neighbouring countries, thereby aggra-
vating the supply situation still further and curtailing the
availability of raw materials from Russia.
The growing complexity of the supplier network, particularly
in the case of sub-suppliers whose operations can only be
indirectly monitored by the BMW Group, is a further potential
cause of downtimes at supplier locations. Due to the high
level of demand on international semiconductor markets, the
135
BMW Group Report 2021
To our Stakeholders
Combined Management Report
Outlook, Risk and Opportunity Management
Group Financial Statements
In order to sell its products and services, the BMW Group op-
erates a global sales network - mainly comprising inde-
pendent dealerships, branches, subsidiaries and importers.
Any threat to the continued activities of parts of the sales
network, for example due to the impending insolvency of
large-scale dealerships, would entail risks for the
BMW Group. The risk amount attached to sales and market-
ing risks over the two-year assessment period is classified
as low.
Corporate Governance
Other Information
← = Q
BMW Group has already experienced temporary bottlenecks
in the supply of electronic components.
The ongoing tight supply situation along the entire supply
chain particularly due to bottlenecks affecting the supply of
semiconductors could continue to result in adjustments to
the production schedule. Reporting on such eventualities
could also have a negative impact on the Company's reputa-
tion. The BMW Group is monitoring the situation very closely,
assessing developments on a continual basis and ensuring
that supply chains and production plants are working to-
gether as closely as possible.
The increased threat of cyberattacks along the entire value
chain also affects supply security as well as the ability to
protect know-how relevant to the BMW Group. In order to
ensure a uniform level of IT security for all those involved
along the value and supply chain, the BMW Group impresses
on suppliers the importance of obtaining appropriate IT se-
curity certification.
When selecting its suppliers, the BMW Group not only takes
into account external requirements, such as those contained
in the German Supply Chain Due Diligence Act (Lieferketten-
sorgfaltspflichtengesetz), but also ensures that the sustain-
ability standards set internally by the Group are met.
The risks associated with the supply of raw materials are
mitigated either by reducing the use of the raw materials in
question or substituting them with alternative products.
Within the Purchasing and Supplier Network, opportunities
arise primarily in the context of global sourcing and associ-
ated efficiency improvements. Making optimal use of any
innovations developed by suppliers is a key prerequisite for
developing future-oriented mobility products and services.
Similarly, favourable location-related cost factors, particular-
ly those arising due to the close proximity of supplier struc-
tures to new and existing BMW Group production plants as
well as the introduction of innovative production technol-
ogies, could lead to lower cost of materials for the
BMW Group.
Opportunities arising over the assessment period are classi-
fied as insignificant.
Remuneration Report
Increased
Stable
Stable
Decreased
Stable
Medium
Medium
The impact of risks and opportunities is presented separate-
ly without offsetting. If no specific reference is made, oppor-
tunities and risks relate to the Automotive segment. The
scope of entities consolidated for risk reporting purposes
corresponds to the scope of consolidated entities included in
the BMW Group Financial Statements.
Monitoring Risk-Bearing Capacity
Group-wide effects and trends can be identified by aggre-
gating all significant risks at Group level using value-at-risk
models. For this purpose, the potential earnings impact of
the risks (confidence level: 99%) is aggregated, taking cor-
relation effects into account. In order to assess the risk-bear-
ing capacity of the BMW Group, the aggregated amount of
risks is compared with the risk cover amount (i. e. the equity
capital of the BMW Group recognised for accounting pur-
poses). A limit system for various risks helps monitor the
risk-bearing capacity.
Managing Reputational Risks
Quite apart from the financial consequences, risks can also
have an impact on the BMW Group's reputation. For these
purposes, the BMW Group assesses all risks with regard to
their impact on its reputation using a scoring model. More-
over, other overarching topics are monitored by means of
regular media analysis. Any significant reputational reper-
cussions are described in the following sections.
Managing Non-Financial Risks as Reported in the NFS
Alongside the maintenance of a comprehensive system of
risk management, sustainability constitutes a core strategic
principle of the BMW Group. Risks resulting from sustain-
ability issues are generally identified via the Group-wide risk
management network.
In accordance with § 289c of the German Commercial Code
(HGB) risks that could have an impact on the non-financial
aspects referred to in the relevant legislation are reviewed as
part of the reporting process. Significant risks in this context
are defined as those stemming from business activities,
business relationships and products and services provided
by the BMW Group that are highly likely to have a seriously
adverse impact. No significant non-financial risks were iden-
tified during the year under report.
132
BMW Group Report 2021
To our Stakeholders
> € 1,000 million
Combined Management Report
Corporate Governance
Remuneration Report
Other Information
← = Q
Outlook, Risk and Opportunity Management
Opportunity Management
A dynamic market environment also gives rise to opportun-
ities. Identifying these opportunities is an integral part of the
BMW Group's strategic planning process. The Group's range
of products and services is continually reviewed on the basis
of these analyses.
The continuous monitoring of key business processes and
strict cost controls are also essential factors for ensuring
high levels of profitability and return on capital employed.
The importance of opportunities for the BMW Group is clas-
sified on a qualitative basis in the categories "significant"
and "insignificant". Probable measures aimed at increasing
profitability are already incorporated in the outlook.
Risks and Opportunities
Group Financial Statements
The following table provides an overview of significant risks
and opportunities for the years 2022 and 2023 and indicates
their level of importance for the BMW Group. Overall, no risks
capable of threatening the continued existence of the
BMW Group were identified either at the balance sheet date
or at the date on which the Group Financial Statements were
drawn up.
> € 400 million
> € 200 1,000 million
131
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Outlook, Risk and Opportunity Management
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Risk Measurement
High
The BMW Group utilises standardised methods to assess
risks. All significant risks are measured using value-at-risk
models and assessed on the basis of uniform loss distribu-
tion metrics, thereby enabling better comparability of risks
for both internal and external reporting purposes. The overall
impact of the risks on the results of operations, financial and
net assets position is referred to in the following sections
uniformly as "earnings impact”.
Risks are classified according to the risk amount (average
earnings impact, taking into account the probability of occur-
rence). The earnings impact may be significantly higher if the
risk actually materialises (worst-case scenario).
In light of the continued growth of the business and the as-
sociated risks, the value limits used in the Annual Report
since 2013 have been revised.
The following ranges apply for the purpose of classifying the
risk amount:
New risk amount range
€0 200 million
Class
Low
Previous risk amount range
€0 50 million
Medium
> € 50-400 million
Risks are measured net of any risk mitigation measures that
are already taking effect (net basis).
The analysis of raw materials price risks is based on planned
purchases of raw materials and components containing
those products. Cash-flow-at-risk models and scenario
analyses are deployed to measure risks and opportunities
relating to raw materials prices. Price fluctuations for pre-
cious metals (platinum, palladium, rhodium), non-ferrous
metals (aluminium, copper), raw materials for batteries
(lead, nickel, cobalt) and, to some extent, for steel and its
basic ingredients (iron ore, coking coal) as well as energy
(gas, electricity) are hedged using financial derivatives and
supply contracts with fixed pricing arrangements.
Due to the particular features of the business model applied
for Financial Services business, risks and opportunities re-
lating to that segment are presented separately in the sec-
tion Risk management system in the Financial Services
segment.
Macroeconomic risks and opportunities
Strategic and sector-specific risks and opportunities
Changes in legislation and regulatory requirements
Market developments
Insignificant
Stable
Low
Stable
Insignificant
Stable
Information security, data protection and IT
Financial risks and opportunities
High
Increased
Insignificant
Stable
Stable
Raw materials
Liquidity
Other financial risks
Pension obligations
Legal risks
Low
Decreased
Significant
Stable
High
Low
Medium
Foreign currencies
Due to the medium- to long-term horizon involved, risks as-
sociated with climate change are presented in the section
7 Climate-related opportunities and risks.
High
Insignificant
Risks and opportunities relating to operations
Production and technology
Purchasing
Sales network
Risks
Classification
of the risk amount¹
Change compared
to prior year 2
Classification
Medium
Stable
Insignificant
Stable
Opportunities
Decreased
High
Medium
Stable
Decreased
Insignificant
Stable
Insignificant
Stable
Medium
Stable
Change compared
to prior year
Due to high demand, the prices of many raw materials have
been, and continue to be, subject to a high degree of fluctu-
ations on commodity markets. Accordingly, the risk amount
associated with raw materials prices is classified as high.
Significant opportunities could arise if raw materials prices,
contrary to current expectations, develop favourably for the
BMW Group.
To our Stakeholders
BMW Group Report 2021
Stable
Low
Stable
Significant
Stable
Insignificant
Stable
Stable
High
Medium
Classification
Change compared
to prior year 2
of the risk amount¹
Risks
to prior year
Change compared
Opportunities
Classification
Initial and continuous creditworthiness testing is an import-
ant aspect of the BMW Group's credit risk management sys-
tem. For this reason, every borrower's creditworthiness is
tested for all credit financing and leasing contracts entered
into by the BMW Group. Opportunities may arise if the man-
aged portfolio performs better over time than estimated
when the credits were granted. Changes in the creditworthi-
ness of customers arising during the credit term are covered
by risk provisioning procedures. The credit risk of individual
customers is quantified on a monthly basis and, depending
on the outcome, taken into account within the risk provision-
ing system. Macroeconomic developments are currently
subject to a higher degree of volatility. If developments are
more favourable than assumed in the outlook, credit losses
may be lower than expected, leading to a positive earnings
impact.
In the financial year 2021, the Financial Services segment
benefited among other things from a favourable risk situ-
ation and the resulting lower level of impairment allowances
required. Credit losses were at an historically low level.
Operational risks
Interest rate changes
Residual value
Credit risk
Credit and counterparty default risk arises within the Finan-
cial Services segment if a contractual partner (e.g. a cus-
tomer or dealership) becomes either unable or only partially
able to fulfil its contractual obligations, so that less income is
generated or losses are incurred. Among other consequenc-
es, the military conflict between Russia and Ukraine could
also result in credit losses. The risk amount attached to the
occurrence of unexpected credit or counterparty default risks
over the two-year assessment period is classified as medi-
um. The BMW Group classifies potential opportunities in this
area as insignificant.
Credit and counterparty risks and opportunities relating to the
Financial Services segment
Significant
Medium
Increased
1 The classified risk amount does not change as a result of the full consolidation of BMW Brilliance.
137
Organisation and processes for managing climate-related risks
Within the BMW Group, the Board of Management is directly
responsible for all matters relating to climate change includ-
ing dealing with the consequences of climate change. Ac-
Transitory risks, on the other hand, arise from the transition
to a low-carbon economy. This category of risks includes for
example new and additional legal requirements relating to
climate protection. We also see the changes resulting from
the transition to a low-carbon future as an opportunity. In-
novative products and services enable us to develop new
fields of business, help decarbonise the mobility sector and
thus boost our competitiveness at the same time.
When considering climate-related risks, the BMW Group dis-
tinguishes between physical and transitory risks. Physical
risks refer to the actual impact of climate change. Physical
risks attributable to fundamental changes in climatic condi-
tions, such as rising temperatures or changing precipitation
patterns, are referred to as chronic and generally have a
longer-term effect. We therefore monitor these risks over a
period of up to 30 years. However, extreme weather events
such as storms, floods and heatwaves are already becoming
more frequent.
[[ Numerous developments of relevance for the BMW Group
are either directly or indirectly linked to climate-related is-
sues. The BMW Group is taking action to mitigate the impact
of climate change and to adapt to changing climatic condi-
tions. It is therefore imperative to identify climate-related
risks and opportunities and to take appropriate account of
them in determining the strategic direction to be followed,
managing the business and organising a Group-wide risk
management system. Since 2019, the BMW Group has been
acting on the recommendations of the Task Force on Cli-
mate-related Financial Disclosures (TCFD) and is continu-
ously developing its reporting on the management of cli-
mate-related risks and opportunities.
Climate-Related Opportunities and Risks
Due to closer interconnection with other risk categories, such
as outsourcing risks or information security risks, the level of
the risk amount has been raised slightly from low to medium
compared to the previous year. The classification of the risk
amount has changed to medium as the pertinent threshold
of €200 million was exceeded for the first time.
Operational risks relating to the Financial Services segment
In the Financial Services segment, operational risks are de-
fined as the risk of losses arising due to the unsuitability or
failure of internal procedures (process risks), people (per-
sonnel-related risks), systems (infrastructure and IT risks)
and external events (external risks). The recording and
measurement of risk scenarios, loss events and counter-
measures in the operational risk management system pro-
vide the basis for the systematic analysis and management
of potential or materialised operational risks. Annual self-as-
sessments are also carried out.
Interest rate risks in the Financial Services segment relate to
potential losses caused by changes in market interest rates.
These can arise when fixed interest rate periods do not
match for assets and liabilities recognised in the balance
sheet. The risk amount attached to interest rate risks is clas-
sified as low. Favourable interest rate developments com-
pared to the outlook represent opportunities that the
BMW Group classifies as significant. Interest rate risks in the
Financial Services business are managed by ensuring that
fixed interest rate periods match to a large extent and
through the use of interest-rate derivatives. If the relevant
recognition criteria are fulfilled, derivatives used by the
BMW Group are accounted for as hedging relationships. Fur-
ther information on risks in conjunction with financial instru-
ments is provided in 7 note 39 to the Group Financial
Statements.
Interest rate risks and opportunities relating to the Financial
Services segment
The exceptional upturn in the pre-owned vehicle market,
particularly in the USA and the UK, combined with high lev-
els of revenue generated on lease returns sold, had a cor-
respondingly positive effect on the residual value situation
across the Financial Services segment during the financial
year 2021. This development was reflected in the lower level
of residual value risk provisioning required.
Market developments are observed throughout the contrac-
tual period and the risk assessment updated accordingly.
Residual value risk management essentially follows the
same established process, regardless of the drive system
variant.
Risks and opportunities relating to the Financial Services segment
The main categories of risk relevant for financial services
business are credit and counterparty risk, residual value risk,
interest rate risk, operational risk and liquidity risk. The
evaluation of liquidity risk for the Financial Services segment
is included in the liquidity risk category for the Group as a
whole.
Each vehicle's estimated residual value is calculated at the
beginning of the contract on the basis of historical external
and internal data. Developments on pre-owned car markets
are an important factor for the BMW Group. The BMW Group
has developed and implemented specialised methods and
processes that enable the sustainability aspects of residual
value risks to be appropriately assessed and managed.
Residual value risks and opportunities relating to the Financial
Services segment
Outlook, Risk and Opportunity Management
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To our Stakeholders
BMW Group Report 2021
140
2 As shown in the section "Risk measurement", the risk amount ranges used for risk classification purposes have been revised. The change shown here relates to the classification of prior-year risks using the
revised risk amount ranges.
Risks and opportunities arise in conjunction with leasing
contracts if the market value of a leased vehicle at the end of
the contractual term of a lease differs from the residual value
estimated at the commencement date of the lease. A re-
sidual value risk exists if the expected market value of the
vehicle at the end of the contractual term is lower than its
estimated residual value at the date the contract was entered
into. The risk amount attached to the occurrence of unex-
pected residual value risks over the two-year assessment
period is classified as high. Opportunities can arise out of a
positive deviation between the actual market value and the
original residual value forecast. The BMW Group classifies
potential residual value opportunities as significant.
The following overview provides a summary of the main risks
and opportunities in the Financial Services segment:
Stable
All risks - in the sense of unexpected losses – must be cov-
ered at all times. Based on the segment's risk appetite, this
is achieved by ensuring specified levels of risk-covering as-
sets (asset cushions) in the form of equity capital. Unexpect-
ed losses are measured using various value-at-risk models,
which are validated at regular intervals. Risks are aggregat-
ed after taking account of correlation effects. In addition to
assessing the Group's ability to bear risk, stress scenarios
are also examined. The segment's risk-bearing capacity is
regularly controlled by means of an integrated limit system
for the various risk categories.
138
Remeasurements on the liabilities and assets sides are rec-
ognised net of deferred taxes through other comprehensive
income and hence directly in equity of the BMW Group (with-
in revenue reserves). Further information on risks in conjunc-
tion with pension provisions is provided in 7 note 32 to the
Group Financial Statements.
The risk amount attached to pension obligations is classified
as medium.
The risk relating to pension obligations was substantially re-
duced by the restructuring of pension commitments in Ger-
many in 2021. Under the new arrangements, employees
were given the option to switch to the Company's defined
contribution pension plan. While the latter entails the risk as-
sociated with guaranteeing a minimum rate of return, the
overall risk is lower than that arising in connection with the
defined benefit pension plan.
The fluctuation of pension assets reflects the volatility of in-
dividual asset classes on capital markets. The broadly diver-
sified portfolio comprises investments in interest-bearing
securities, equities, real estate and other asset classes.
therefore influence the level of pension obligations. Changes
in other parameters, such as rising inflation rates and longer
life expectancy, also impact the amount as well as the dura-
tion of future pension payments. Regulatory requirements or
changes may also affect the amount of pension obligations.
Risks can arise from fluctuations in pension obligations on
the one hand and the related pension assets on the other.
Opportunities can arise if the value of pension assets on
capital markets develops favourably or if pension obligations
decrease at a more pronounced rate than the related assets.
Pension obligations are primarily measured using a discount
rate based on market yields from high-quality corporate
bonds. These yields are subject to market fluctuations and
Risks and opportunities relating to pension obligations
Future pension obligations are financed largely via external
pension funds or trust constructs that are legally separate
from the BMW Group. Externally managed funds are invest-
ed on capital markets in a broadly diversified portfolio with a
view to enabling future pension payments to be disbursed
out of pension assets. These arrangements greatly reduce
the need to fund pension payments out of ongoing
operations.
The risk amount associated with other financial risks is clas-
sified as medium. Generally speaking revaluations of invest-
ments could give rise to opportunities with a significant
earnings impact.
The BMW Group holds equity investments of varying
amounts in numerous entities, which could give rise to risks
requiring the recognition of impairment losses.
The BMW Group works together with banks to ensure that
the available liquidity is optimally invested in order to hedge
against financial market risks (particularly currency, com-
modity and interest rate risks) using derivative financial in-
Other financial risks worth mentioning include counterparty
risks as well as those arising in connection with investments
in other entities.
BMW Group Report 2021
Other financial risks
Solvency is assured at all times throughout the BMW Group
by adhering to liquidity ratios and using a broadly diversified
range of refinancing sources. Regular measurement and
monitoring ensure that cash inflows and outflows for the
various maturities and currencies offset one another. This
approach is an integral part of the BMW Group's liquidity
concept.
Based on the experience gained during the global financial
crisis, a liquidity concept has been drawn up, which is rigor-
ously adhered to and continuously developed. In the Finan-
cial Services segment, the use of the "matched funding prin-
ciple" ensures that liquidity risks are generally avoided.
The major part of the Financial Services segment's credit fi-
nancing and leasing business is refinanced on capital mar-
kets. Liquidity risks can arise in the form of rising refinancing
costs or from restricted access to funds due to the general
market situation. The risk amount associated with liquidity
risks is classified as low.
Liquidity risks
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Outlook, Risk and Opportunity Management
Due to the close interrelationships within the Group, devel-
opments that affect the BMW Group's industrial business in
the first step are also relevant for the Financial Services seg-
ment in the second step. In addition, banking supervisory
agencies around the world require sustainability risks to be
adequately addressed. Sustainability risks, such as natural
events or a change in carbon pricing, affect existing risk cat-
egories and can also have an impact in the short term.
To our Stakeholders
The liquidity position is monitored continuously and man-
aged through the Group-wide planning of financial require-
ments and funding. At present, opportunities relating to li-
quidity are not expected to have any significant earnings
impact. Further information on risks in conjunction with fi-
nancial instruments is provided in 7 note 39 to the Group Fi-
nancial Statements.
To our Stakeholders
struments and to protect payments made in advance. Coun-
terparty risk denotes the risk that the BMW Group will not
receive, or not receive in full, the payments due to it in con-
nection with the investment and hedging transactions re-
ferred to above. An enhanced value-at-risk model is em-
ployed to measure counterparty risk, taking into account the
creditworthiness (rating) of the banks and the business vol-
umes involved. Risk is managed using a limit system, which
includes daily monitoring of the extent to which limits are
being utilised at the level of the individual counterparties.
Combined Management Report
Outlook, Risk and Opportunity Management
Risk management within the Financial Services business is
built on the prevailing risk culture, the defined risk strategy,
the internal capital adequacy assessment process frame-
work and a set of rules comprising principles and guidelines.
The main tool used to manage risk within the Financial Ser-
vices segment is to ensure its risk-bearing capacity.
Risk Management System in fhe Financial Services
Segment
Alleged or actual non-compliance with the law could also
have a negative impact on the BMW Group's reputation.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Outlook, Risk and Opportunity Management
BMW Group Report 2021
139
The BMW Group recognises appropriate levels of provision
for lawsuits and risks. In addition, a part of these risks is
insured to an economically reasonable extent. Neverthe-
less, it cannot be ruled out that damages may occur in ex-
cess of the insured amounts. In accordance with Interna-
tional Financial Reporting Standards (IFRS), the required
information is not provided if the BMW Group concludes
that disclosure of the information could seriously prejudice
the outcome of the relevant legal proceedings. Further in-
formation on contingent liabilities is provided in 7 note 38 to
the Group Financial Statements.
The BMW Group is subject to tax and customs audits in
every country in which it operates, potentially resulting in
back taxes, retrospective customs duties, interest, penal-
ties and similar payments. Payments of this nature may,
for instance, result from the full or the partial non-recogni-
tion of intercompany transfer prices in the countries con-
cerned. Further substantive legal risks may also arise as a
result of changes in tax or customs legislation or due to the
way that legislation is interpreted by tax and customs au-
thorities or courts. In many cases, such changes can also
have a retrospective impact on calendar years that were
not yet subject to definitive audits. In order to minimise
procedural tax and customs risks, the BMW Group recently
set up a comprehensive Tax and Customs Control Frame-
work that is already being applied in Germany and will be
rolled out successively in other countries.
goods-related restrictions, international trading may also
involve personal, country-specific and end-use-related re-
strictions. In particular, non-compliance with applicable
EU and US export control regulations could result in signif-
icant legal consequences for the BMW Group. In light of its
strong presence in the USA and China, any intensification
of the trade dispute between the two countries could be a
potential source of additional risk exposure.
To our Stakeholders
← = Q
Corporate Governance
International movements of goods require compliance with
extensive export control regulations. In addition to
Remuneration Report
Other Information
Legal Risks
Group Financial Statements
The growing globalisation of the BMW Group's operations
as well as of business interdependencies in general, com-
bined with the variety and complexity of legal provisions -
increasingly including import and export regulations - give
rise to a greater risk of non-compliance with applicable
legislation. A Compliance Management System is in place
across the BMW Group to ensure that its representative
bodies, executives and staff members worldwide consist-
ently act in a lawful manner. Further information on com-
pliance within the BMW Group as well as on the Compli-
ance Management System is provided in the chapter
7 Compliance and human rights.
Like all entities with international operations, the
BMW Group is confronted with legal disputes and alleged
claims relating in particular to warranty and product liabil-
ity, infringements of protected rights and proceedings initi-
ated by government agencies. Any of these could, amongst
other consequences, have an adverse impact on the
Group's reputation. Proceedings of this nature are essen-
tially typical for the sector, may result as a consequence of
realigning product or purchasing strategies to changed
market conditions, or are antitrust-related. Particularly in
the US market, class action lawsuits and product liability
risks can have substantial financial consequences and
cause damage to the BMW Group's reputation. More rigor-
ous application, interpretation of, or changes to, existing
regulations could result in a greater number of recalls.
For several years, lawsuits have been filed against BMW
Bank GmbH (BMW Bank) in which consumers claim the
withdrawal of their loan and leasing contracts on the basis
of allegedly incorrect and insufficient pre-contractual infor-
mation. The focus is on loan contracts. Since 2017, BMW
Bank has won the vast majority of these lawsuits. In No-
vember 2019, the Federal Court of Justice (BGH) adopted a
decision of principle in favour of BMW Bank, confirming the
accuracy of consumer-relevant information in loan con-
tracts. In addition, in October 2020 the BGH decided in a
case in which BMW Bank was not involved that consumers
are generally obliged to pay a compensation after a suc-
cessful withdrawal. Since the beginning of 2020, several
references for a preliminary ruling on the scope of informa-
tion obligations have been filed with the European Court of
Justice (ECJ). On September 9, 2021, the ECJ decided on
the requests for preliminary ruling concerning the require-
ments on the terms and conditions in consumer credit
agreements in particular with regard to default interest and
prepayment penalty. Based on this ruling the BGH re-
quests the ECJ for another preliminary ruling whether the
concept of abuse of rights in connection with consumer
credit agreements is still applicable under certain circum-
stances. Although this is technically not a final decision,
the BGH mentioned in the reasoning part of its decision
that it does not consider BMW Bank's terms and conditions
in consumer credit agreements to completely fulfill the re-
quirements as set by the ECJ ruling. Therefore, there is a
legal risk that borrowers might withdraw consumer credit
agreements of BMW Bank with reference to the proceeding
submitted to the ECJ and the ECJ decision as of September
9, 2021. However, the right to compensation of BMW Bank
due to the car use period of the borrower is still applicable.
The possible financial impact cannot be definitively as-
sessed at this stage.
Due to the global nature of its operations, the BMW Group
is exposed to various legal risks. Legal risks may result
from non-compliance with laws or other legal require-
ments, or from legal disputes with business partners or
other market participants. If legal risks were to materialise,
they could have a high earnings impact over the two-year
assessment period. The risk amounts attached to signifi-
cant identified legal risks are classified as medium.
489
5,118
3,086
5
343
14,947
21,986
16,839
13,582
- 3
3
-613
9,397
-465
-41
9
-9,233
- 8,795
-7,580
-7,237
-264
- 240
-1,385
- 1,326
37
-3
-26
34
753
-4
4
-1,232
-271
Other operating income
133
539
52
-3
1
560
1,935
392
2,660
- 208
638
-974
5
17
479
- 186
1,170
12
Attributable to minority interest
Net profit / loss
Income taxes
Profit/loss before tax
Financial result
Other financial result
1,394
1,122
53
10
- 1,292
916
- 8
36
-390
808
Result from equity accounted investments
24
1,520
920
1,520
920
I
Interest and similar income
11
1,721
135
246
236
2
3
875
1,169
-989
Interest and similar expenses
11
-165
-458
-310
102
116
3,701
103
227
1,614
931
3
2
36
34
34
125
15
-176
Other operating expenses
10
- 1,055
-873
- 1,003
-929
-1
-2
- 68
-73
-6
-66
23
197
Profit/loss before financial result
13,400
4,830
9,870
2,162
1,702
16,060
Extreme weather events at suppliers' locations world-
wide can impact component deliveries and consequently
supplies to production plants. Under these circum-
stances, key transport routes could be blocked - with im-
plications for both the supply of components and the dis-
tribution of new vehicles.
11,805
Total comprehensive income
Other comprehensive income for the period after tax
Items that can be reclassified to the income statement in the future
Currency translation foreign operations
Deferred taxes *
Other comprehensive income from equity accounted investments
Costs of hedging
Derivative financial instruments
Items not expected to be reclassified to the income statement in the future
Marketable securities (at fair value through other comprehensive income)
Deferred taxes
Remeasurement of the net liability for defined benefit pension plans
Net profit/loss
in € million
Total comprehensive income attributable to minority interests
FOR GROUP
← = Q
Other Information
Remuneration Report
Group Financial Statements Corporate Governance
Statement of Comprehensive
Income for Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
150
5.75
18.79
14
5.73
18.77
STATEMENT OF COMPREHENSIVE INCOME
Total comprehensive income attributable to shareholders of BMW AG
* Prior year's figure adjusted.
Note
14,864
- 616
2,401
19
- 401
1,382
- 1,283
1,228
-423
163
106
-50
201
72
991
14
7
-45
-215
1,019
139
-224
-354
1,243
32
3,857
12,463
2020
2021
14
5,222
Diluted earnings per share of common stock in €
Diluted earnings per share of preferred stock in €
18.79
74
177
2,009
9,160
3,857
12,463
-232
56
62
-119
-456
- 838
-26
2,915
-51
-2,645
-1,365
-3,597
13
910
-257
-235
531
1,725
3,753
100
228
2,722
-713
1,269
412
- 173
14
5.73
18.77
14
Basic earnings per share of common stock in €
Basic earnings per share of preferred stock in €
Dilutive effects
678
- 201
- 171
412
1,202
2,844
74
177
1,992
9,150
3,775
12,382
31
Attributable to shareholders of the BMW AG
-2
67
71
17
10
82
19,392
81
678
-201
5.75
- 14,194
Restrictions affecting voting rights or the transfer of
shares
3
31
14,783
3,159
(c) Uniform payment of any other dividends on shares of
common and preferred stock, provided the shareholders
do not resolve otherwise at the Annual General Meeting
(b) Payment of an advance dividend of € 0.02 per € 1 par
value on non-voting shares of preferred stock
(a) Subsequent payment of any arrears on dividends on
non-voting shares of preferred stock in the order of
accruement
in full within one year and the arrears are not paid in the sub-
sequent year alongside the full preference amount due for
that year. With the exception of voting rights, holders of
shares of preferred stock are entitled to the same rights as
holders of shares of common stock. In addition, Article 24 of
the Articles of Incorporation confers preferential treatment to
the non-voting shares of preferred stock with regard to the
appropriation of the Company's unappropriated profit. Ac-
cordingly, the unappropriated profit is required to be appro-
priated in the following order:
The Company's shares of preferred stock are shares as de-
fined in §§ 139 et seqq. AktG, which carry a cumulative pref-
erential right in terms of the allocation of profit and for which
voting rights are excluded. These shares confer voting rights
only in exceptional cases stipulated by law, in particular if the
preference amount has either not been paid or not been paid
The rights and duties of shareholders derive from the Ger-
man Stock Corporation Act (AktG) in conjunction with the
Company's Articles of Incorporation, the full text of which is
available at ≈ www.bmwgroup.com. The right of shareholders to
have their shares evidenced is excluded in accordance with
the Articles of Incorporation. The voting power attached to
each share corresponds to its par value. Each €1 of par value
of share capital represented in a vote entitles the holder to
one vote (Article 18 no. 1 of the Articles of Incorporation).
The subscribed capital (share capital) of BMW AG amoun-
ted to € 661,399,500 at 31 December 2021 (2020:
€ 659,684,500) and, in accordance with Article 4 no. 1 of the
Articles of Incorporation is sub-divided into 601,995,196
shares of common stock (91.02 %) (2020: 601,995,196;
91.26%) and 59,404,304 shares of non-voting preferred
stock (8.98 %) (2020: 57,689,304; 8.74%), each with a par
value of € 1. The Company's shares are issued to bearer.
Composition of subscribed capital
DISCLOSURES RELEVANT FOR TAKEOVERS*
AND EXPLANATORY COMMENTS
Disclosures Relevant for Takeovers
and Explanatory Comments
82
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
144
Responsibilities for ensuring the effectiveness of ICS proce-
dures for accounting and financial reporting processes as
well as the further development of the reporting of non-fi-
nancial performance indicators are clearly defined in a role-
based model and allocated to the relevant line and process
managers. Once a year, the managers responsible report on
their assessment of the ICS in place for accounting and fi-
nancial reporting processes, based on the results of both
internal and external audits as well as continual monitoring.
The results of the assessment are gathered and document-
ed in a centralised IT system. Any weaknesses found in the
ICS are eliminated, taking into account their potential im-
pact. Both the Board of Management and the Audit Commit-
tee are informed about the effectiveness of the ICS on an
annual basis. The Board of Management and, where appro-
priate, the Supervisory Board, are promptly informed in the
event of any significant changes to the ICS.
Whenever changes are made to IT systems relating to ac-
counting and financial reporting processes, the aforemen-
tioned controls are adapted to take account of new require-
ments and/or any opportunities that have arisen due to
technical advances in information technology. Moreover, the
BMW Group deploys data analysis tools to identify and
subsequently eliminate weaknesses in its processes and/or
control systems.
things, to prevent business transactions from being recorded
incorrectly, ensure the complete recognition and accurate of
business transactions in accordance with the applicable re-
quirements, and provide the basis for checking the accuracy
of consolidation procedures.
Preventive controls serve to identify and eliminate weak-
nesses and omissions in processes. Detective controls on
the other hand are deployed to detect and correct any errors
in the results of those processes and are generally based on
the principle of the segregation of duties. All key relevant IT
systems incorporate controls that are designed, among other
Guidelines for recognising, measuring and allocating items
to accounts, along with the definitions of non-financial per-
formance indicators are available to all employees via the
BMW Group's intranet system. New financial reporting
standards are assessed at an early stage for their impact on
the BMW Group's accounting and financial reporting sys-
tems. Pertinent requirements are reviewed continuously and
revised at least once a year, or more frequently if required.
The principal features of the BMW Group's ICS are described
below.
Other Information
Basically, the aim of any internal control system is to prevent,
or reduce the probability of, potential risks from occurring.
Both the system itself and the methods applied are subject
to continuous improvement, with system effectiveness as-
sessed regularly on the basis of centralised and decentral-
ised process analyses, data analyses within the various fi-
nancial systems, and audit-related procedures.
3,241
When the Company issues non-voting shares of preferred
stock to employees in conjunction with its Employee Share
Programme, these shares are generally subject to a Com-
pany-imposed blocking period of four years, calculated from
the beginning of the calendar year in which the shares were
issued.
5 Controlled entities, of which 3% or more are attributed: Susanne Klatten Beteiligungs GmbH.
4 Controlled entities, of which 3% or more are attributed: AQTON GmbH & Co. KG für Automobilwerte.
3 Controlled entities, of which 3% or more are attributed: AQTON Verwaltung GmbH, AQTON GmbH & Co. KG für Automobilwerte.
² Controlled entities, of which 3% or more are attributed: AQTON SE, AQTON Verwaltung GmbH, AQTON GmbH & Co. KG für Automobilwerte.
1 Based on voluntary notifications provided by the listed shareholders as at 31 December 2021.
The voting percentages disclosed above may have changed
subsequent to the stated date if these changes were not re-
quired to be reported to the Company. As the Company's
shares are issued to bearer, the Company is generally only
aware of changes in shareholdings if such changes are sub-
ject to mandatory notification rules.
Susanne Klatten Beteiligungs GmbH, Bad Homburg v. d. Höhe, Germany
Susanne Klatten, Germany
AQTON GmbH & Co. KG für Automobilwerte, Bad Homburg v. d. Höhe, Germany
AQTON Verwaltung GmbH, Bad Homburg v. d. Höhe, Germany
AQTON SE, Bad Homburg v. d. Höhe, Germany
Stefan Quandt, Germany
in %
In addition to shares of common stock, the Company has
also issued non-voting shares of preferred stock. Further in-
formation can be found in the section "Composition of sub-
scribed capital".
Based on the information available to the Company, the fol-
lowing direct or indirect holdings exceeding 10% of the vot-
ing rights at the end of the reporting period were held at the
stated reporting date:¹
= Q
↑
Disclosures Relevant for Takeovers
and Explanatory Comments
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
145
* Disclosures pursuant to § 289 a, § 315 a HGB.
Contractual holding period arrangements also apply to
shares of common stock acquired by Board of Management
members and certain senior department heads in conjunc-
tion with share-based remuneration programmes. Remuner-
ation Report
Direct or indirect investments in capital exceeding 10%
of voting rights
Group-wide mandatory accounting guidelines
Controls integrated in processes and IT systems
Organisational measures incorporating the principles of
the risk-oriented segregation of duties
Process-independent monitoring measures
* Disclosures pursuant to § 289 and § 315 HGB.
Internationally acknowledged standards for internal control
systems were taken into account when designing the various
elements of the ICS deployed by the BMW Group. The sys-
tem comprises:
142
* Representative Concentration Pathways.
The global spread of electric mobility may give rise to
bottlenecks in the availability of raw materials, particular-
ly those needed to manufacture battery cells. As a result,
higher raw materials prices could also have an impact on
the BMW Group's earnings situation.
However, if the carbon price were to rise to unexpected
levels without sufficient time to plan accordingly, produc-
tion costs will be driven up, with a correspondingly nega-
tive impact on the BMW Group's sales volumes and prof-
itability. Furthermore, setting a price for carbon emissions
could result in reduced purchasing power and thus hold
down economic growth in the regions concerned.
The aim is to reduce carbon emissions across all relevant
supply chains on the basis of constructive cooperation
with suppliers. It is important to point out, however, that
the BMW Group depends on receiving accurate informa-
tion from suppliers in this regard.
[Any serious failure to comply with sustainability or qual-
ity standards could cause disruptions in the supply chain
or the inability of individual suppliers to deliver.
A significant tightening of laws and regulations in the
BMW Group's main markets (the EU, the USA and China),
particularly in terms of carbon emissions regulations
which may also result from possible legal proceedings or
court decisions and regional vehicle purchase and usage
taxes, could have an impact on the BMW Group's range
of products and services and result in higher costs
and/or lower sales volumes. Changes in legislation and regula-
tory requirements ]]
Transitory climate risks
Physical climate risks could have a negative impact on
economic growth in the regions affected, with noticeable
unfavourable macroeconomic consequences, including a
loss of income and the threat of unemployment for con-
sumers. These factors, in turn, could reduce purchasing
power in certain regions and have a negative impact on
the BMW Group's sales volumes and operating result.
Climate change is likely to cause natural disasters to oc-
cur more frequently at our locations, for example heavy
rains and heat waves, with the risk of damage to both
inventories and products. To avoid production stoppages,
we have already taken preventive measures at our pro-
duction sites and other premises, such as the installation
of sluice gates at the plant in Chennai, India.
Physical climate risks
hand, the RCP 2.6 scenario entails high transitory risks for
the BMW Group due to stricter regulatory requirements gov-
erning carbon emissions. On the other hand, fewer physical
risks would be likely to arise given the more ambitious cli-
mate protection measures. In the RCP 8.5 scenario, how-
ever, the physical risks dominate due to insufficient climate
protection measures. Based on the BMW Group's assess-
ment, the RCP 4.5 scenario is currently seen as the most
likely and roughly corresponds to the contributions currently
committed to by each country at national level.
The so-called RCP* scenarios range from a low-emissions
scenario in line with the 2°C target (RCP 2.6), a medium
scenario with global warming of 2.4-2.7°C by the year 2100
(RCP 4.5) through to a 5°C scenario (RCP 8.5). On the one
BMW Group Report 2021
In the Adaptation to Climate Change project, we identified
and assessed physical risks comprehensively for the first
time on the basis of two different time horizons (2030 and
2050) as well as various climate change scenarios. Three
warming pathways developed by the Intergovernmental
Panel on Climate Change (IPCC) were applied and, in ac-
cordance with the TCFD recommendation, the impact of
physical risks on the various stages of the value chain (in-
cluding real estate, logistics and suppliers) was examined.
Scenario analyses for identifying climate-related opportunities
and risks
As part of the environmental analysis as part of the strategy
process, the BMW Group analyses and takes account of
transitory risks from a regulatory perspective on a continu-
ous basis. During the financial year under report, the
BMW Group successfully completed its "Adaptation to Cli-
mate Change" project with the involvement of top manage-
ment. The physical climate risks were analysed and as-
sessed using an external assessment tool.
cordingly, the individual members of the Board of Manage-
ment are each charged with the task of ensuring that their
portfolios are strategically aligned with the stated objectives.
Moreover, each proposal presented to the Board of Manage-
ment is required to be assessed from a sustainability per-
spective and thus also with regard to climate-related as-
pects. Internal management within strategy
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Outlook, Risk and Opportunity Management
To our Stakeholders
BMW Group Report 2021
141
141
The BMW Group focuses on both mitigating and adapting to
the consequences of climate change.
To our Stakeholders
Combined Management Report
Outlook, Risk and Opportunity Management
Group Financial Statements
The BMW Group's ICS is based on the "Three Lines of De-
fence" model, including a clear definition of how the various
functions are required to interact with one another to man-
age risks. As an essential component of the second line of
defence, the ICS serves as a link between the operating units
(first line), internal audit (third line) and the external auditor.
The ICS for financial reporting has the task of ensuring that
the BMW Group's accounting and financial reporting pro-
cesses are both accurate and reliable. The ICS for non-finan-
cial reporting focuses primarily on the further development
of the processes used to gather data as the basis for
reporting non-financial performance indicators within the
BMW Group Report.
The Internal Control System* (ICS) is part of the BMW Group's
overall system of internal governance, and is based on a set
of measures and control activities that are integrated in pro-
cesses and organisational structures with a view to ensuring
the accuracy of external financial and non-financial report-
ing. The requirements for the design and structure of ICS
procedures incorporated in accounting and financial report-
ing processes as well as those used to generate selected
non-financial information included in the BMW Group Report
are defined on a Group-wide basis.
INTERNAL CONTROL SYSTEM
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Internal Control System
To Our Stakeholders
BMW Group Report 2021
143
By rigorously aligning its corporate strategy to meet specific
sustainability targets, the BMW Group takes appropriate ac-
count of risks and opportunities in all its investments, in-
novations and corporate decisions. ]]
By reporting comprehensively and transparently in a
manner that meets potential legal requirements at an
early stage, we are better able to ensure our access to
capital markets and obtain attractive financing condi-
tions on a long-term basis. 7 BMW Group and Capital Markets
In the best interest of a circular economy, the BMW Group
intends to gradually increase its use of secondary mater-
ials and hence reduce carbon emissions at the same
time. With this strategy, we are not only contributing to-
wards achieving our decarbonisation target in the supply
chain, but also reducing our dependence on primary ma-
terials in terms of their availability and cost. 7 Circular econ-
omy and resource efficiency
By switching to lower-carbon processes and technol-
ogies at its own production plants, the BMW Group is not
only boosting efficiency, but also cutting its costs. For ex-
ample, generating its own electricity from renewable en-
ergy sources reduces the carbon footprint and minimises
dependence on external electricity sources as well as its
exposure to price fluctuations on the energy market.
7 Renewable energy
The BMW Group can exert its influence across its global
supplier network to cut carbon emissions and work to-
wards implementing decarbonisation measures. For in-
stance, it has already entered into a contractual agree-
ment with its cell manufacturers that only green
electricity will be used to produce the fifth generation of
battery cells. Supplier network and purchases and Decarbo-
nisation
-
The BMW Group's strategic planning assumptions will
endeavour to anticipate the consequences of rising car-
bon prices in the form of taxes and levies as well as po-
tential shortfalls in emissions credits under emissions
trading schemes, taking into account the assumptions
applied in its own decision-making process and its coop-
eration with suppliers. Circular economy, resource efficiency and
renewable efficiency
The BMW Group sees the growing demand for electrified
vehicles as a major opportunity. We are leveraging this
opportunity by continuously expanding our range of elec-
trified products, while at the same time pressing ahead
with the in-house development and production of electric
drive systems, batteries and battery cell prototypes. This
approach enables us to secure key know-how in new
technologies at an early stage, gain crucial systems ex-
pertise and exploit cost advantages, which could also
provide a decisive competitive edge. 7 Production network
With its flexible vehicle architectures and production sys-
tems,
the BMW Group strives to take account of fluctuat-
ing customer demand as well as regulatory and infra-
structural differences in its markets in a swift and
adaptable manner. Production network
Climate-related opportunities
The transformation to a lower-emissions economy is fun-
damentally changing certain industries. Due to the po-
tential macroeconomic consequences, the related sus-
tainability risks are seen as a threat to the stability of
financial markets. They could also have a negative im-
pact on job security as well as the financial position of
selected industries and their employees.
Stricter requirements for carbon emitters due to regula-
tory tightening could affect the reputation of the
BMW Group and make it less attractive as a sustainable
investment.
← = Q
Other Information
Remuneration Report
Corporate Governance
Indirect share of
voting rights
25.62
16.63
-19,857
Direct share of
voting rights
9.0
Revenues
in € million
supplementary information) supplementary information)
Eliminations (unaudited
Other Entities (unaudited
Financial Services (unaudited
supplementary information)
Motorcycles (unaudited
Group supplementary information) supplementary information)
Automotive (unaudited
FOR GROUP AND SEGMENTS
INCOME STATEMENT
for Group and Segments
← = Q
Other Information
Cost of sales
Remuneration Report
Group Financial Statements
Income Statement
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
149
FINANCIAL
STATEMENTS
3
GROUP -
←三〇
Other Information
Remuneration Report
231 List of investments at 31 December 2021
228 Segment Information
Corporate Governance
201 Other Disclosures
Gross profit
Note
5
30,044
-26,958
-27,749
- 1,941
32,867
2,284
2,748
-2,259
80,853
- 71,456
- 78,637
- 85,408
- 89,253
8
95,476
Selling and administrative expenses
98,990
7
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
111,239
178 Notes to the Balance Sheet
176 Notes to the Statement of Comprehensive Income
169 Notes to the Income Statement
Framework agreements are in place with financial insti-
tutions and banks (ISDA Master Agreements) with re-
spect to trading activities with derivative financial instru-
ments. These agreements include an extraordinary right
of termination that triggers actions in the event that the
creditworthiness of the party involved is materially weak-
er following a direct or indirect acquisition of beneficially
BMW AG acts as guarantor for all obligations arising from
the joint venture agreement relating to BMW Brilliance
Automotive Ltd. in China. This agreement grants an ex-
traordinary right of termination to either joint venture
partner in the event of a change in control at either one of
the parties, or if more than 25% of the shares of the oth-
er party are acquired by a third party - either directly or
indirectly or if the other party is merged with another
legal entity. Termination of the joint venture agreement
may lead to the dissolution of the joint venture, with an
optional purchase right for BMW (or the partner) to ac-
quire the shares of the other partner or to the liquidation
of the joint venture company.
A cooperation agreement concluded with Peugeot SA re-
lating to small (1- to 1.6-litre) petrol engines entitles each
of the cooperation partners to give extraordinary notifica-
tion of termination in the event of a competitor acquiring
control over the other contractual party and if any con-
cerns of the other contractual party regarding the impact
of the change of control on the cooperation arrange-
ments are not resolved during the subsequent discussion
process.
one or more parties jointly acquire direct or indirect con-
trol of BMW AG. The term "control" is defined as the ac-
quisition of more than 50% of the share capital of
BMW AG, the right to receive more than 50% of the divi-
dend, or the right to direct the affairs of the Company or
appoint the majority of members of the Supervisory
Board.
An agreement concluded with an international consor-
tium of banks relating to a syndicated credit line, which
was not being utilised at the balance sheet date, entitles
the lending banks to give extraordinary notice to termin-
ate the credit line, such that all outstanding amounts, in-
cluding interest, would fall due with immediate effect if
Significant agreements of the Company taking effect in
the event of a change in control following a takeover bid
BMW AG is party to the following major agreements, which
contain provisions that would apply in the event of a change
in control or the acquisition of control as a result of a take-
over bid:
In accordance with Article 4 no. 5 of the Articles of Incorpor-
ation, the Board of Management is authorised, with the ap-
proval of the Supervisory Board, to increase by means of
cash contributions BMW AG's share capital during the period
up to and including 15 May 2024 by up to € 1,722,600 for the
purposes of an Employee Share Programme by issuing new
non-voting shares of preferred stock, which carry the same
rights as existing non-voting shares of preferred stock (Au-
thorised Capital 2019). The subscription rights of existing
shareholders are excluded. No conditional capital was in
place at the reporting date.
Authorisations of the Board of Management, in particu-
lar with respect to the issuing or buying back of shares
The Board of Management is authorised to buy back shares
and sell repurchased shares in situations specified in § 71
AktG, for example to avert serious and imminent damage to
the Company and/or to offer shares to persons either cur-
rently or previously employed by BMW AG or one of its affili-
ated companies.
Disclosures Relevant for Takeovers
and Explanatory Comments
← = Q
Other Information
Remuneration Report
Corporate Governance
owned equity capital which confers the power to elect a
majority of the Supervisory Board of a contractual party
or any other ownership interest that enables the acquirer
to exercise control over a contractual party or which con-
stitutes a merger or a transfer of net assets.
Group Financial Statements
To Our Stakeholders
BMW Group Report 2021
146
Amendments to the Articles of Incorporation must comply
with §§ 179 et seqq. AktG. Amendments must be decided
upon by the shareholders at the Annual General Meeting
(§ 119 (1) no. 6, § 179 (1) AktG). The Supervisory Board is au-
thorised to approve amendments to the Articles of Incorpor-
ation that only affect its wording (Article 14 no. 3 of the Ar-
ticles of Incorporation). Resolutions are passed at the
Annual General Meeting by a simple majority of votes cast
unless otherwise explicitly required by binding provisions of
law or, if a majority of share capital is required, by a simple
majority of share capital represented in the vote (Article 20
no. 1 of the Articles of Incorporation).
The appointment or removal of members of the Board of
Management is based on the rules contained in §§ 84 et
seq. AktG in conjunction with § 31 of the German Co-Deter-
mination Act (MitbestG).
Statutory regulations and provisions contained in the
Articles of Incorporation governing the appointment and
removal of members of the Board of Management and
changes to the Articles of Incorporation
Control of voting rights when employees participate in
capital and do not directly exercise their control rights
Like all other shareholders, employees exercise their control
rights pertaining to shares they have acquired in conjunction
with the Employee Share Programme and/or the share-
based remuneration programme directly on the basis of rele-
vant legal provisions and the Company's Articles of
Incorporation.
Shares with special rights that confer control rights
There are no shares with special rights that confer control
rights.
20.7
20.75
0.2
16.6
16.64
Combined Management Report
BMW AG and Mercedes-Benz Group AG have entered
into a Joint Venture Agreement relating to mobility ser-
vices, which includes the areas of car sharing, ride hailing
and charging, and entitles both Mercedes-Benz Group
AG and BMW AG (hereafter referred to as "principals") to
initiate a bidding procedure in the event that (i) the other
principal receives notice in accordance with § 33 of the
German Securities Trading Act (WpHG) that - including
shares attributed pursuant to § 34 WpHG - a sharehold-
ing of more than 50% has been attained or, in accord-
ance with § 20 AktG of the German Stock Corporation Act
(AktG) that a shareholding of more than 50% has been
attained or (ii) a shareholder or a third party - including
shares attributed pursuant to § 30 WPHG - holds more
than 50% of the voting rights or shares in the other prin-
cipal, or (iii) the other principal has concluded a control
agreement as a dependent company. The outcome of
such a bidding procedure is that the joint venture will go
to the principal making the highest bid.
Several supply and development contracts between
BMW AG and various industrial customers, all relating to
the sale of components for drivetrain systems, grant an
extraordinary right of termination to the relevant indus-
trial customer in specified cases of a change in control at
BMW AG (for example BMW AG merges with a third party
or is taken over by a third party; an automobile manufac-
turer acquires more than 50% of the voting rights or
share capital of BMW AG).
147
157 Accounting Principles and Policies
157 Notes to the Group Financial Statements
155 Statement of Changes in Equity for Group
153 Cash Flow Statement for Group and Segments
Balance Sheet for Group and Segments at 31 December 2021
151
150 Statement of Comprehensive Income for Group
149 Income Statement for Group and Segments
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
148
The BMW Group has not concluded any compensation
agreements with members of the Board of Management or
with employees for situations involving a takeover offer.
Compensation agreements with members of the Board
of Management or with employees in the event of a
takeover bid
-
BMW AG has entered into an agreement with Great Wall
Motor Company Limited to establish the joint venture
Spotlight Automotive Ltd. in China. The agreement
grants an extraordinary right of termination to either joint
venture partner in the event that - either directly or indi-
rectly more than 25% of the shares of the other party
are acquired by a third party or the other party is merged
with another legal entity. The termination of the joint ven-
ture agreement may result in the sale of the shares to the
other joint venture partner or in the liquidation of the joint
venture entity.
The development collaboration agreement between
BMW AG, FCA US LLC and FCA Italy S.p.A. relating to
the development of technologies used in conjunction
with automated vehicles, may be terminated by any of
the contractual parties if certain competitors in the tech-
nology sector acquire and subsequently hold at least
30% of the voting shares of one of the other contractual
parties.
The development collaboration agreement between
BMW AG, Intel Corporation and Mobileye Vision Technol-
ogies Ltd., relating to the development of technologies
used in automated vehicles, may be terminated by any of
the contractual parties if a competitor of one of the par-
ties acquires and subsequently holds at least 30% of the
voting shares of one of the contractual parties.
BMW AG is party to the shareholder agreement relating
to There Holding B. V., which is the majority shareholder
of the HERE Group. In accordance with the shareholder
agreement, each contractual party is required to offer its
directly or indirectly held shares in There Holding B. V. for
sale to the other shareholders in the event of a change in
control. A change in control of BMW AG arises if a person
takes over or loses control of BMW AG, with control de-
fined as (i) holding or having control over more than 50%
of the voting rights, (ii) the possibility to control more than
50% of voting rights exercisable at Annual General
Meetings on all or nearly all matters, or (iii) the right to
determine the majority of members of the Board of Man-
agement or the Supervisory Board. Furthermore, a
change in control occurs if competitors of the HERE
Group, or certain potential competitors of the HERE
Group from the technology sector, acquire at least 25%
of BMW AG. If none of the other shareholders acquire
these shares, the other shareholders are entitled to re-
solve that There Holding B. V. be dissolved.
Disclosures Relevant for Takeovers
and Explanatory Comments
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
0.2
81
← = Q
Revenue
reserves
700
747
921
34
Current tax
46
4
388
537
460
109
6,960
6,175
7,494
6,748
33
Other provisions
- 49,307
100
- 46,214
140
81
378
378
7,365
9,650
8,644
10,932
37
Trade payables
192
15,418
24,428
897
1,462
38,986
41,121
35
Financial liabilities
18
25,178
894
-15
-3,571
-18
-42,065
-45,654
41,202
17,730
18,909
2
2,087
2,247
67,390
62,342
Other liabilities
35
88
2,812
3,426
697
1,515
509
1,458
13
Financial liabilities
- 3,078
36
5,095
78
47,588
1,011
49,015
41,873
63,243
62,525
705
667
19,519
18,518
5,676
83,175
Non-current provisions and liabilities
475
42,506
40,003
522
524
7,270
6,739
77,929
Deferred tax
Other liabilities
16,744
Change in provisions
Change in trade payables
Change in trade receivables
Change in inventories
Changes in working capital
Change in receivables from sales financing
Change in leased products
Result from equity accounted investments
Automotive
Other non-cash income and expense items
Other interest and similar income/expenses¹
Interest received¹
Income taxes paid
Profit/loss before tax
in € million
FOR GROUP AND SEGMENTS
CASH FLOW STATEMENT
← = Q
Depreciation and amortisation of tangible and intangible assets
Other Information
Financial Services
2021
16,060
220
163
130
- 1,513
- 1,423
-382
- 1,805
- 1,605
Group (unaudited supplementary information) (unaudited supplementary information)
-3,217
3,753
2,722
11,805
2020
2021
2020
2021
2020
5,222
1,725
36
Remuneration Report
Group Financial Statements
Cash Flow Statement for Group
and Segments
-187
12,959
9
10
892
42,169
68,819
73,588
797
727
50,589
-48
52,504
76,466
Current provisions and liabilities
47,666
319
240
34,830
34,517
16,092
71,963
Corporate Governance
Total equity and liabilities
216,658
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
153
.148,919
-152,215
- 83,071
- 88,809
229,527
- 83,023
21,797
34,829
105,233
22,943
38,456
105,593
147,617
153,437
1,502
1,394
111,225
121,318
-88,622
283
146
74
260
521
- 6,389
-3,636
- 6,208
-3,933
74
424
1,679
103
103
28
- 1,277
- 1,671
- 1,277
- 1,671
- 1,545
-901
28
-2,511
37
302
Other Entities
Financial Services
Motorcycles
Automotive
Group
in € million
AND SEGMENTS AT 31 DECEMBER 2021
BALANCE SHEET FOR GROUP
2,200
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Balance Sheet for Group and Segments
at 31 December 2021
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
151
- 91
Other Information
Eliminations
(unaudited supplementary (unaudited supplementary (unaudited supplementary (unaudited supplementary (unaudited supplementary
information)
information)
-2,438
-275
164,478
- 143
130
-96
110
Effect of changes in composition of Group on cash and cash equivalents
- 40
43
Change in cash and cash equivalents
180
Cash and cash equivalents as at 1 January
1,501
2,487
445
608
788
13,537
12,036
9,522
2,472
-217
224,916
-307
-2,629
401
-447
-27
218,348
- 18
153,823
-232,089
- 171,532
-659
-2,508
-982
-156,657
1,829
-6,735
718
1,049
2,782
- 8,254
-3,745
-3,973
-219,488
152
information)
information)
15,555
17,324
41,117
50,296
61,520
75,132
Equity
629
25,264
766
60,891
74,366
31
Equity attributable to shareholders of BMW AG
- 1,518
-325
31
Accumulated other equity
Minority interest
59,550
Pension provisions
1,247
110
6,268
6,944
6,488
7,206
33
Other provisions
- 16,541
32
-17,752
108
49
35
109
31
3,197
1,073
3,693
21,389
338
information)
71,705
Revenue reserves
22
Leased products
Property, plant and equipment
Intangible assets
ASSETS
2020
2021
2020
21
2021
2021
2020
2021
2020
2021
2020
2021
Note
2020
31
12,980
12,438
2,199
2,325
31
Capital reserves
660
661
31
21,371
12,342
21,885
22,390
22
1
377
374
155
167
11,809
21,850
9,077
2
78
36,252
Financial assets
26
5,800
5,108
4,925
4,152
542
35,705
612
Current tax
27
1,529
606
300
342
Other assets
28
520
8,941
36,252
25
14,896
14,868
13,391
656
687
404
818
Trade receivables
35,705
30
2,298
2,076
1,979
91
219
94
100
Receivables from sales financing
2,261
15,928
9,110
33,747
63,133
759
913
45,724
46,661
520
58,775
Total assets
229,527 216,658
69,770
121,318
1,394
1,502
153,437
147,617
105,593
392
200
52,625
1,147
54,364
105,233
-187
-48
111,225
35,592
81,807
Current assets
3
N│I
83
64
1,146
2
5,425
5,952
86,173
56,589
16,009
13,537
12,009
9,522
9
5
3,471
2,863
Cash and cash equivalents
-88,668
29
- 65,655
21
20
6,899
6,938
-11,740
25
51,712
48,025
4,711
I
48,082
-96
- 10,934
-57
Financial assets
26
1,715
2,644
577
51,808
559
6,061
1,241
67
78
23
44,700
41,995
52,017
48,759
-7,317
735
-6,764
24
24
5,112
3,585
5,112
3,585
Other investments
Receivables from sales financing
Investments accounted for using the equity method
Inventories
I
161
2,929
38,882
Non-current assets
143,354
134,851
51,548
48,092
635
2,649
589
100,956
46,818
131
41,860
50,869
- 1,873
-1,418
-42,316
-46,467
-63,360
107,713
159
33
2,861
997
1,939
-18
- 15
Deferred tax
13
2,202
2,459
30
3,418
618
550
39
Other assets
28
1,302
1,216
2,057
3,196
3
-83,216
152
1,047
-26
- 1,425
754
129
87
1,122
- 1,440
- 1,432
1,115
-34
-11
-1,454
1,810
- 1,526
1,799
1
6
- 1,256
191
Subscribed capital
12,583
FOR GROUP AND SEGMENTS
CASH FLOW STATEMENT
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Cash Flow Statement for Group
and Segments
Combined Management Report
13,251
To Our Stakeholders
154
15,903
- 1,192
Cash inflow/outflow from operating activities
Change in other operating assets and liabilities
2,762
3,259
8,178
BMW Group Report 2021
Automotive
-16
119
- 920
- 1,520
6
94
-470
99
-713
46
- 1,520
35
6,341
6,139
6,495
1
1
152
115
104
5,974
160
- 920
- 1,016
-43
438
422
- 1,032
370
-563
-76
433
-1,282
-841
- 996
1,355
4,184
926
4,192
965
-311
- 1,602
762
- 88,855 - 83,264
-152,215 - 148,919
Financial Services
in € million
2020
2021
2020
2021
2020
2021
2020
2021
2021
2020
2020
EQUITY AND LIABILITIES
- 185
- 829
-16
-925
-271
1,327
2021
260
Note
information)
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Balance Sheet for Group and Segments
at 31 December 2021
Corporate Governance
Remuneration Report
Other Information
← = Q
in € million
BALANCE SHEET FOR GROUP
Group
Automotive
Motorcycles
Financial Services
Other Entities
Eliminations
(unaudited supplementary (unaudited supplementary (unaudited supplementary (unaudited supplementary (unaudited supplementary
information)
information)
information)
information)
AND SEGMENTS AT 31 DECEMBER 2021
Group (unaudited supplementary information) (unaudited supplementary information)
1,328
-1
2020
- 6,619
2021
Effect of exchange rate on cash and cash equivalents
Cash inflow/outflow from financing activities
Change in other financial liabilities
Repayment of non-current financial liabilities
Proceeds from issue of non-current financial liabilities
- 6,150
Interest paid¹
Payment of dividends for the previous year
Payments into equity
Cash inflow/outflow from investing activities
Proceeds from the sale of marketable securities and investment funds
Investments in marketable securities and investment funds
Proceeds from the disposal of investment assets and other business units²
Proceeds from subsidies for intangible assets and property, plant and equipment
Proceeds from the disposal of intangible assets and property, plant and equipment
Expenditure for investment assets
Total investment in intangible assets and property, plant and equipment
Intragroup financing and equity transactions
263
2021
-6,439
- 5,990
- 199
- 132
- 176
-158
1
34
39
34
2020
40
11
45
43
53
54
-14
2020
2021
-12
8
2,863
-367
Cash and cash equivalents as at 31 December
As the BMW Group already held 50% of the shares in BMW
Brilliance prior to the acquisition, the transaction constitutes
a business combination achieved in stages (step acquisi-
tion).
In this context, the Group's 50% shareholding in BMW Bril-
liance at the acquisition date will be measured at fair value,
159
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
which has been provisionally calculated at € 11 to 12 billion.
The expected remeasurement gain of € 7 to 8 billion will be
recognised in the financial year 2022 on the line item "Result
on investments" within the financial result.
The fair values of the assets acquired and liabilities assumed
at the acquisition date are currently in the process of being
measured. The balance sheet values at 31 December 2021
are included in 7 note 24. The remeasurement of acquired
assets and liabilities will give rise primarily to the recognition
of reacquired rights and dealership relationships as intangi-
ble assets. Other fair value adjustments will also be recog-
nised, mainly for property, plant and equipment and invento-
ries. Due to the proximity of the acquisition date and the date
on which these financial statements were authorised for
issue, further information is not yet available for disclosure
and will be provided in the BMW Group's next quarterly
statement. Adjustments to the fair value may also arise over
the course of the financial year 2022 as the fair value meas-
urement process is finalised.
Following the business combination, minority interests in the
equity capital of BMW Automotive Finance (China) Co. Ltd.
and in Herald International Financial Leasing Co., Ltd. will
change to 10.5% in each case. As the two entities are
already included in the Group Financial Statements as sub-
sidiaries, the change will be recognised through Group equity
without any impact on profit or loss.
04 Foreign currency translation and measurement
The financial statements of consolidated companies which
are presented in a foreign currency are translated using the
modified closing rate method. Under this method, assets
and liabilities are translated at the closing exchange rate,
whilst income and expenses are translated at the average
exchange rate. Differences arising on foreign currency trans-
lation are presented in "Accumulated other equity".
In the single entity accounts of BMW AG and its subsidiaries,
foreign currency receivables and payables are measured on
initial recognition using the exchange rate prevailing at the
date of first-time recognition. Advance payments to suppli-
ers or from customers in a foreign currency that result in the
addition of non-monetary assets or liabilities are recorded at
1 Euro =
US Dollar
British Pound
Chinese Renminbi
Russian Rouble
Korean Won
the exchange rate prevailing at the date of payment. At the
end of the reporting period, foreign currency receivables and
payables are measured using the closing exchange rate. The
resulting unrealised gains and losses, as well as realised
gains and losses arising on settlement, are recognised in the
income statement, in line with the underlying substance of
the transaction. Non-monetary balance sheet items denom-
inated in foreign currencies are rolled forward on the basis of
historical exchange rates.
Cash and cash equivalents acquired totalled approximately
€ 8.7 billion.
The exchange rates of currencies which have a material
impact on the Group Financial Statements were as follows:
The consideration paid for the additional 25% stake totals
€ 3.7 billion, including hedging effects, and has been settled
entirely in cash.
The strategic objective of the acquisition is to further
strengthen the BMW Group's long-term collaboration with a
partner in China, to expand production capacities at the
existing locations in Shenyang and to systematically increase
the local production of further models including New Energy
Vehicles.
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
(joint) control, the BMW Group undertakes a new assess-
ment.
An entity is deemed to be controlled if BMW AG - either
directly or indirectly has power over it, is exposed or has
rights to variable returns from it and has the ability to influ-
ence those returns.
-
An entity is classified as an associated company if BMW AG
either directly or indirectly – has the ability to exercise sig-
nificant influence over the entity's operating and financial
policies. As a general rule, the Group is assumed to have
significant influence if it holds 20% or more of the entity's
voting power.
Joint operations and joint ventures are forms of joint arrange-
ments. Such an arrangement exists when a BMW Group
entity jointly carries out activities with a third party on the
basis of a contractual agreement.
In the case of a joint operation, the parties that have joint
control of the arrangement have rights to the assets, and
obligations for the liabilities, relating to the arrangement.
Assets, liabilities, revenues and expenses of a joint opera-
tion are recognised proportionately in the Group Financial
Statements on the basis of the BMW Group entity's rights
and obligations (proportionate consolidation). The impact of
joint operations on the Group Financial Statements are of
minor significance.
The BMW Group's largest joint operation is Spotlight Auto-
motive Limited (Spotlight), which has been operated jointly
with the Chinese automobile manufacturer Great Wall Motor
Company Limited (Great Wall) since 2019, jointly developing
and manufacturing electric vehicles in China. The BMW Group
and Great Wall each hold 50% of the joint operation's equity.
In addition to electric MINI vehicles, Spotlight will in future
also develop and produce electric vehicles for Great Wall.
In the case of a joint venture, the parties which have joint
control only have rights to the net assets of the arrangement.
Associated companies and joint ventures are accounted for
using the equity method, with measurement on initial recog-
nition based on acquisition cost.
On 30. September 2021, the BMW Group signed an agree-
ment with the Huachen Group to acquire all of the shares of
Brilliance Automobile Manufacturing Co, Ltd., a Huachen
Group subsidiary. The acquisition includes land usage rights
as well as buildings and production facilities of a Huachen
Group vehicle plant at the Shenyang site. The transaction is
expected to be completed in the first half of 2022 after all the
necessary regulatory approvals have been obtained.
The other changes to the Group reporting entity do not have
a material impact on the results of operations, financial posi-
tion and net assets of the Group.
03 Increased shareholding in BMW Brilliance
Automotive Ltd.
On 11 February 2022, via the Group company BMW Holding
B. V., the BMW Group increased its shareholding in the joint
venture BMW Brilliance Automotive Ltd. (BMW Brilliance)
from 50% to 75% with the acquisition of a further 25% of
BMW Brilliance's shares. On 11 October 2018, the BMW Group
signed an agreement with its joint venture partner, a wholly
owned subsidiary of Brilliance China Automotive Holdings
Ltd. (CBA), to acquire these shares. The agreement was
approved at the CBA shareholders' meeting on 18 January
2019.
The previous joint venture requirement came to an end with
effect from 1 January 2022. The amended joint venture
agreement came into force and the formal transfer of shares
was completed on 11 February 2022, following the issuance
of an amended "business license". Since that date, the
BMW Group has held a 75% majority of the voting rights, as
a result of which it now has control over BMW Brilliance.
BMW Brilliance will therefore be fully consolidated as a sub-
sidiary in the BMW Group Financial Statements with effect
from 11 February 2022. The contractual term of the joint ven-
ture, which previously ran until 2028, has been extended to
2040.
BMW Brilliance manufactures BMW brand models primarily
for the Chinese market at its two vehicle production plants as
well as petrol engines and high-voltage batteries at a sepa-
rate facility.
Since the acquisition took place prior to the date on which
the financial statements were approved for publication, this
report contains disclosures relating to the business combi-
nation, even though BMW Brilliance will not be fully consoli-
dated until the financial year 2022.
BMW Group Report 2021
Closing rate
31.12.2021
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Argentina has fulfilled the definition of a hyperinflationary
economy since 1 July 2018. Since that date, IAS 29 (Financial
Reporting in Hyperinflationary Economies) has therefore
been applied for the BMW subsidiary in Argentina. The price
indices published by the Federación Argentina de Consejos
Profesionales de Ciencias Económicas (FACPCE) are used
to adjust non-monetary assets and liabilities and items in
the income statement. The resulting effects are not material
for the BMW Group.
05 Financial reporting rules
a Financial reporting standards applied for the first time in the
financial year 2021:
Standard/Interpretation
Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16
Interest Rate Benchmark
Reform Phase 2
-
In August 2020, the IASB published the Amendment Stand-
ard Interest Rate Benchmark Reform (IBOR) – Phase 2. The
amendments contain a number of reliefs to mitigate the
impact on the accounting treatment of hedge relationships,
financial instruments and lease liabilities resulting from the
reform of interest rate benchmarks.
The BMW Group is impacted by the reform of interest rate
benchmarks primarily in the area of financial liabilities and
related interest rate hedges. For a significant proportion of
these instruments, the previous benchmark interest rate was
replaced by an alternative interest rate in 2021.
The adoption of the rules contained in the amended Stand-
ard means that the existing hedging relationships can be
continued and the contractual changes arising due to the
interest rate benchmark reform do not therefore have any
direct impact on profit or loss.
Further explanatory comments on the impact of the interest
rate benchmark reform are provided in 7 note 39.
The adoption of other financial reporting Standards or
Revised Standards in the financial year 2021 did not have
any significant impact on the BMW Group Financial State-
ments.
Date of issue by IASB Mandatory application IASB Mandatory application EU
27.08.2020
01.01.2021
01.01.2021
Combined Management Report
Average rate
To Our Stakeholders
160
31.12.2020
2021
2020
1.14
1.23
1.18
1.14
0.84
0.90
0.86
0.89
7.22
8.00
7.63
7.87
85.23
90.54
87.18
82.71
1,351.64
1,329.79
1,353.58
1,345.42
BMW Group Report 2021
158
When assessing whether an investment gives rise to a con-
trolled entity, an associated company, a joint operation or a
joint venture, the BMW Group considers contractual arrange-
ments and other circumstances, as well as the structure and
legal form of the entity. Discretionary decisions may also be
required. If indications exist of a change in the judgement of
All consolidated subsidiaries have the same year-end as
BMW AG with the exception of BMW India Private Ltd. and
BMW India Financial Services Private Ltd., whose year-ends
are 31 March in accordance with local legal requirements.
Interim financial statements are prepared as at 31 December
for the two companies with divergent reporting dates.
187
-616
-616
3,560
- 1,396
5
803
187
3,159
82
3,241
- 1,646
- 1,646
- 25
- 1,671
1
1
1
38
38
38
- 31
50
803
-4
5
-215
Translation
differences
Marketable
securities
Derivative
financial
instruments
Costs of
hedging
Equity
attributable to
shareholders
of BMW AG
Minority
interest
Total
31
659
2,161
57,667
- 760
29
15
-447
59,324
583
59,907
3,775
reserves
3,775
82
3,857
- 1,396
15
-11
4
Approval for the publication of the Group Financial State-
ments was granted by the Board of Management on 8 March
2022.
02 Group reporting entity and consolidation principles
The BMW Group Financial Statements include BMW AG and
all material subsidiaries over which BMW AG - either directly
or indirectly exercises control. This also includes 59 struc-
tured entities, consisting of asset-backed financing arrange-
ments and special purpose funds.
-
In relation to fully consolidated companies, the following
changes took place in the Group reporting entity in the finan-
cial year 2021:
Included at
31 December 2020
Germany
Foreign
Total
21
185
206
Included for the first time in 2021
No longer included in 2021
16
16
1
16
17
Included at
31 December 2021
20
185
205
In order to provide a better insight into the results of opera-
tions, financial position and net assets of the BMW Group,
and going beyond the requirements of IFRS 8 (Operating
Segments), the Group Financial Statements also include an
income statement and a balance sheet for the Automotive,
Motorcycles, Financial Services and Other Entities seg-
ments. The Group Cash Flow Statement is supplemented by
a statement of cash flows for the Automotive and Financial
Services segments. Inter-segment transactions relate pri-
marily to internal sales of products, the provision of funds for
Group companies and the related interest. A description of
the nature of the business and the major operating activities
of the BMW Group's segments is provided in note 45
("Explanatory notes to segment information").
The income statement for the BMW Group and segments is
presented using the cost of sales method.
Key figures presented in the report have been rounded in
accordance with standard commercial practise. In certain
cases, this may mean that values do not add up exactly to
the stated total and that percentages cannot be derived from
the values shown.
The Group currency is the euro. All amounts are disclosed in
millions of euros (£ million) unless stated otherwise.
31
660
2,199
59,550
- 2,156
34
868
-264
60,891
629
61,520
b Financial reporting pronouncements issued by the IASB, but
not yet applied
157
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
2,075
ACCOUNTING PRINCIPLES AND POLICIES
01 Basis of preparation
The consolidated financial statements of Bayerische
Motoren Werke Aktiengesellschaft (BMW Group Financial
Statements or Group Financial Statements) at 31 December
2021 were drawn up in accordance with International Finan-
cial Reporting Standards (IFRS), as endorsed by the Euro-
pean Union (EU), and the supplementary requirements of
§ 315 e (1) of the German Commercial Code (HGB). The
Group Financial Statements and Combined Management
Report will be submitted electronically to the operator of the
Federal Gazette and are accessible via the website of the
Company Register. Bayerische Motoren Werke Aktienge-
sellschaft (BMW AG), which has its seat in Germany, Munich,
Petuelring 130, is registered in the Commercial Register of
the District Court of Munich under the number HRB 42243.
BMW AG manufactures automobiles and motorcycles in the
premium segment.
BMW Group Report 2021
In May 2017, the IASB published IFRS 17 Insurance Con-
tracts. The Standard replaces IFRS 4 and contains new rules
relating to recognition, measurement, presentation and dis-
closure requirements for insurance contracts. The new rules
are mandatory for financial years beginning on or after 1 Jan-
uary 2023. In a Group-wide project, the BMW Group is cur-
rently examining the impact of adopting IFRS 17 for existing
agreements and, where applicable, the impact on financial
reporting.
NOTES TO THE GROUP FINANCIAL STATEMENTS
Similarly, other financial reporting standards issued by the
IASB and not yet applied are not expected to have any sig-
nificant impact on the BMW Group Financial Statements.
Subscribed
capital
Capital
reserves
Revenue
reserves
31
660
2,199
59,550
Translation
differences
-2,156
Marketable
securities
Derivative
financial
instruments
Costs of
hedging
Equity
attributable to
shareholders
of BMW AG
Minority
interest
Total
34
868
-264
60,891
629
61,520
12,382
12,382
81
12,463
1,019
1,718
-32
Note
Accumulated other equity
31 December 2021
Other changes
Based on current assessments, the application of the new
rules is not expected to have a material impact on the Group
Financial Statements of the BMW Group. Early adoption of
IFRS 17 is not planned.
16,009
13,537
12,009
9,522
3,471
2,863
1 With the exception of interest for lease liabilities, interest relating to financial services business is classified as revenues/cost of sales.
2 Includes dividends received from investment assets amounting to € - million (2020: € 1.020 million).
The reconciliation of liabilities from financing activities is presented in 7 Note [35].
155
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Statement of Changes
in Equity for Group
-317
Corporate Governance
Other Information
← = Q
STATEMENT OF CHANGES
IN EQUITY FOR GROUP
in € million
1 January 2021
Net profit
Other comprehensive income for the period after tax
Comprehensive income at 31 December 2021
Dividend payments
Subscribed share capital increase out of
Authorised Capital
Premium arising on capital increase relating to
preferred stock
Remuneration Report
13
438
-182
14,783
13
-317
-32
1,718
13,401
2,401
← = Q
STATEMENT OF CHANGES
IN EQUITY FOR GROUP
in € million
1 January 2020
Net profit
81
Other comprehensive income for the period after tax
Dividend payments
Subscribed share capital increase out of
Authorised Capital
Premium arising on capital increase relating to
preferred stock
Other changes *
31 December 2020
* Prior year's figures adjusted.
Accumulated other equity
Note
Subscribed
capital
Capital
Revenues from customer contracts include in particular rev-
enues from the sale of products (primarily new and pre-
owned vehicles and related products) as well as revenues
from services. Revenue is recognised when control is trans-
ferred to the dealership or retail customer. In the case of
sales of products, this is usually at the point in time when the
risks and rewards of ownership are transferred. Revenues
are stated net of settlement discount, bonuses and rebates
as well as interest and residual value subsidies. The consid-
eration arising from these sales usually falls due for payment
immediately or within 30 days. In exceptional cases, a longer
payment may also be agreed. In the case of services, control
is transferred over time. Consideration for the rendering of
services to customers usually falls due for payment at the
beginning of a contract and is therefore deferred as a con-
tract liability. The deferred amount is released over the ser-
vice period and recognised as revenue in the income state-
ment. As a rule, amounts are released on the basis of the
expected expense trend, as this best reflects the perfor-
mance of the service. If the sale of products includes a deter-
minable amount for services (multiple-component con-
tracts), the related revenues are deferred and recognised as
income in the same way. Variable consideration compo-
nents, such as bonuses, are measured at the expected
value, and in the case of multi-component contracts, allo-
cated to all performance obligations unless directly attribut-
able to the sale of a vehicle.
Comprehensive income at 31 December 2020
14,864
-1,253
-1,253
Group Financial Statements
Statement of Changes
in Equity for Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
156
75,132
766
74,366
-251
362
2
- 438
71,705
2,325
661
31
- 102
80
Other Information
- 189
7
126
126
126
1
1
1
-1,277
-24
Corporate Governance
06 Accounting policies, assumptions, judgements and
estimations
Remuneration Report
2,401
Remuneration Report
Corporate Governance
Remuneration Report
Other Information
← = Q
The calculation of the amount of the provision requires
assumptions to be made with regard to discount rates, pen-
sion trends, employee fluctuation and the life expectancy of
employees, among other things. Discount rates are deter-
mined by reference to market yields at the end of the report-
ing period on high quality fixed-interest corporate bonds.
In the financial year 2021, as part of a modernisation of the
pension plan model in Germany, the previous pension enti-
tlement trend (Festbetragstrend) was converted - with the
exception of one remaining component – into a career trend.
Net interest expense on the net defined benefit liability or
net interest income on the net defined benefit assets are
presented separately within the financial result.
All other costs relating to allocations to pension provisions
are allocated to costs by function in the income statement.
Group Financial Statements
Notes to the Group
Financial Statements
Past service cost arises where a BMW Group company intro-
duces a defined benefit plan or changes the benefits paya-
ble under an existing plan. This cost is recognised immedi-
ately in the income statement.
Remeasurement of the net liability can result from changes
in the present value of the defined benefit obligation, the fair
value of the plan assets or the asset ceiling. Remeasure-
ment can result, amongst others, from changes in financial
and demographic parameters, as well as changes following
the portfolio development. Remeasurements are recognised
immediately through other comprehensive income and ulti-
mately in equity (within revenue reserves).
Other provisions are recognised when the BMW Group has
a present legal or factual obligation towards a third party
arising from past events, the settlement of which is proba-
ble, and when the amount of the obligation can be reliably
estimated. Provisions with a remaining period of more than
one year are measured at their net present value.
The measurement of provisions for statutory and non-stat-
utory warranty obligations (statutory, contractual and
voluntary) involves estimations. In addition to manufacturer
warranties prescribed by law, the BMW Group offers various
further standard (assurance-type) warranties depending on
the product and sales market. No provisions are recognised
for additionally offered service packages that are treated as
separate performance obligations.
Provisions for statutory and non-statutory warranties are
recognised at the point in time when control over the goods
is transferred to the dealership or retail customer or when it
is decided to introduce new warranty measures. With respect
to the level of the provision, estimations are made in particu-
lar based on past experience of damage claims and pro-
cesses. Future potential repair costs and price increases per
product and market are also taken into account. Provisions
for warranties for all companies of the BMW Group are
adjusted regularly to take account of new information, with
the impact of any changes recognised in the income state-
ment. Further information is provided in 7 note 33. Similar esti-
mates are also made in conjunction with the measurement
of expected reimbursement claims.
The recognition and measurements of provisions for litiga-
tion and liability risks necessitates making assumptions in
order to determine the probability of liability, the amount of
claim and the duration of the legal dispute. The assumptions
made, especially the assumption about the outcome of legal
proceedings, are subject to a high degree of uncertainty. The
appropriateness of assumptions is regularly reviewed, based
on assessments undertaken both by management and
external experts, such as lawyers. If new developments arise
in the future that result in a different assessment, provisions
are adjusted accordingly.
If the recognition criteria relevant for provisions are not ful-
filled and the outflow of resources on fulfilment is not unlikely,
the potential obligation is disclosed as a contingent liability.
Related party disclosures comprise information on associ-
ated companies, joint ventures and non-consolidated sub-
sidiaries as well as individuals which have the ability to exer-
cise a controlling or significant influence over the financial
and operating policies of the BMW Group. This includes all
persons in key positions of the Company, as well as close
members of their families or intermediary entities.
In the case of the BMW Group, this also applies to members
of the Board of Management and the Supervisory Board.
Details relating to these individuals and entities are pro-
vided in note 40 and in the list of investments disclosed in
7 note 46.
Similarly, gains and losses arising on the settlement of a
defined benefit plan are recognised immediately in the
income statement.
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
Group Financial Statements Corporate Governance
Notes to the Group
Financial Statements
Remuneration Report
Other Information
← = Q
hedging relationship. Changes in the fair value of this compo-
nent are recorded as costs of hedging on a separate line
within accumulated other equity. Amounts recorded in accu-
mulated other equity are included in the carrying amount of
inventories on initial recognition.
Ineffectiveness arising on cash flow hedges is recognised
directly in cost of sales, whereas the impact of prematurely ter-
minated hedging relationships is recognised in other operating
income and expenses.
Deferred income taxes are recognised for all temporary differ-
ences between the tax and accounting bases of assets and
liabilities, including differences arising on consolidation proce-
dures, as well as on unused tax losses and unused tax credits,
when it is probable that they can be utilised. Deferred tax assets
and liabilities are measured at the tax rates that are expected to
apply to the period when the asset is realised or the liability
settled, based on tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date.
The recoverability of deferred tax assets is assessed at each
balance sheet date on the basis of planned taxable income in
future financial years. If with a probability of more than 50 per-
cent future tax benefits will not be realised, either in part or in
total, a valuation allowance is recognised on the deferred tax
assets. The calculation of deferred tax assets requires assump-
tions to be made with regard to the level of future taxable
income and the timing of recovery of deferred tax assets.
These assumptions take account of forecast operating results,
future legislative changes in connection with climate change
and the impact on earnings of the reversal of taxable tempo-
rary differences. Since future business developments cannot
be predicted with certainty and to some extent cannot be
influenced by the BMW Group, the measurement of deferred
tax assets is subject to uncertainty.
Deferred tax liabilities on taxable temporary differences aris-
ing from investments in subsidiaries, branches and associ-
ated companies as well as interests in joint arrangements are
not recognised if the Group is able to control the timing of the
reversal and it is probable that the temporary difference will
not reverse in the foreseeable future. This is particularly the
case if it is intended that profits will not be distributed, but
rather will be used to maintain the substance and expand the
volume of business of the entities concerned.
Current income taxes are calculated within the BMW Group
on the basis of tax legislation applicable in the relevant coun-
tries. To the extent that judgement was necessary to deter-
mine the treatment and amount of tax items presented in the
financial statements, there is in principle a possibility that
local tax authorities may take a different position.
As a general rule, each income tax treatment is considered
independently when accounting for uncertainties in income
taxes. If it is not considered probable that an income tax
treatment will be accepted by the local tax authorities, the
BMW Group uses the most likely amount of the tax treatment
when determining taxable profit and the tax base.
Inventories of raw materials, supplies and goods for resale
are stated at the lower of average acquisition cost and net
realisable value.
Work in progress and finished goods are stated at the lower
of manufacturing cost and net realisable value. Manufactur-
ing cost comprises all costs which are directly attributable to
the manufacturing process as well as an appropriate propor-
tion of production-related overheads. This includes produc-
tion-related depreciation and amortisation and an appropri-
ate proportion of administrative and social costs. Financing
costs are not included in the acquisition or manufacturing
cost of inventories.
Inventories also include vehicles held for sale in the financial
services business, measured at their amortised cost or lower
net realisable value.
Cash and cash equivalents comprise mainly cash on hand
and cash at bank with an original term of up to three months.
With the exception of money market funds, cash and cash
equivalents are measured at amortised cost.
Financial liabilities, with the exception of lease liabilities,
are measured on first-time recognition at their fair value. For
these purposes, transaction costs are taken into account
except in the case of financial liabilities allocated to the cat-
egory "measured at fair value through profit or loss". Subse-
quent to initial recognition, liabilities are - with the exception
of derivative financial instruments - measured at amortised
cost using the effective interest method.
Provisions for pensions are measured using the projected
unit credit method. Under this method, not only obligations
relating to known vested benefits at the reporting date are
recognised, but also the effect of future expected increases
in pensions and salaries. The calculation is based on inde-
pendent actuarial valuations which take into account the rel-
evant biometric factors.
In the case of funded plans, the pension obligation is offset
against plan assets measured at their fair value. If the plan
assets exceed the pension obligation, the surplus is tested
for recoverability.
In the event that the BMW Group has a right of reimburse-
ment or a right to reduce future contributions, it reports an
asset (within Other financial assets), measured on the basis
of the present value of the future economic benefits attached
to the plan assets. For funded plans, in cases where the obli-
gation exceeds plan assets, a liability is recognised under
pension provisions.
167
Share-based remuneration programmes which are
expected to be settled in shares are measured at their fair
value at grant date. The related expense is recognised as
personnel expense in the income statement over the vesting
period and offset against capital reserves.
Corporate Governance
Share-based remuneration programmes expected to be set-
tled in cash are revalued to their fair value at each balance
sheet date between the grant date and the settlement date
and on the settlement date itself. The expense is recognised
as personnel expense in the income statement over the
vesting period and presented in the balance sheet as a pro-
vision.
BMW Group Report 2021
3,701
and finance leases
Interest income on loan financing
11,345
11,322
11,526
Group Financial Statements
Notes to the Group
13,780
to customers
Sales of products previously leased
3,677
2020
67,548
Sales of products and related goods
2021
in € million
Revenues by activity comprise the following:
07 Revenues
Financial Statements
NOTES TO THE INCOME STATEMENT
← = Q
Other Information
77,042
Revenues from service contracts,
telematics and roadside assistance
2,766
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
The share-based remuneration programme for Board of
Management members and senior heads of department
entitles BMW AG to elect whether to settle its commitments
in cash or with shares of BMW AG common stock. Based on
the decision to settle in cash, the share-based remuneration
programmes for Board of Management members and senior
heads of department are accounted for as cash-settled,
share-based remuneration programmes. Further informa-
tion on share-based remuneration programmes is provided
in 7 note 41.
169
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
from lease instalments and interest income on loan financ-
ing and finance leases are allocated to the Financial Ser-
vices segment.
Revenues from the sale of products and related goods are
generated primarily in the Automotive segment and, to a
lesser extent, in the Motorcycles segment. Revenues from
the sales of products previously leased to customers, income
An analysis of revenues by segment is shown in the explan-
atory comments on segment information provided in 7 note 45.
Revenues recognised from contracts with customers in
accordance with IFRS 15 totalled € 95,795 million (2020:
€ 83,814 million).
2,763
2,335
98,990
111,239
Revenues
2,424
Other income
168
Income from lease instalments
With the exception of receivables from operating leases and
trade receivables, the BMW Group applies the general
approach described in IFRS 9 to determine impairment of
financial assets. Under the general approach, loss allow-
ances are measured on initial recognition on the basis of the
expected 12-month credit loss (stage 1). If the credit loss risk
at the end of the reporting period has increased significantly
since initial recognition, the impairment allowance is meas-
ured on the basis of lifetime expected credit losses (stage 2
Sundry other income relates mainly to the Automotive seg-
ment and the Financial Services segment.
- 157
-474
Expense for additions to provisions
- 286
-204
Exchange losses
916
1,702
Other operating income
Selling and administrative expenses relate mainly to expenses
for marketing and communication, personnel and IT.
09 Selling and administrative expenses
282
Expense for impairment losses and
write-downs
285
5,689
6,299
Research and development expenses
30
13
Gains on the disposal of assets
1,710
1,935
Amortisation
164
10
Income from the reversal of impairment
losses and write-downs
Sundry operating income
-7
in € million
2021
In the opinion of the EU Commission, the carmakers con-
cerned within the framework of what was actually legiti-
mate technical cooperation in the development of SCR tech-
nology (SCR: selective catalytic reduction) created an
undue degree of transparency with regard to the sizes of
their AdBlue tanks, the range that can be achieved with a full
tank and the assumed average AdBlue consumption,
thereby violating EU competition law. The amount of the pro-
vision exceeding the fine was reversed with income state-
ment effect in the year under report. The fine was paid in July
2021, thereby concluding the EU Commission's proceedings.
-
In 2019, a provision of approximately € 1.4 billion was recog-
nised in connection with EU Commission anti-trust proceed-
ings which resulted in an increase in other operating
expenses in the financial year 2019 (see also note 10 to the
BMW Group Financial Statements for the financial year
2019). In this antitrust investigation, the EU Commission had
alleged that five German car manufacturers colluded with
the aim of restricting competition for innovation with regards
to certain exhaust treatment systems for petrol- and die-
sel-driven passenger vehicles. The investigation was solely
concerned with possible infringements of competition law.
There were no allegations that the BMW Group conducted a
deliberate and unlawful manipulation of the emissions con-
trol system. On the basis of BMW AG's detailed submissions,
the EU Commission dropped most of its charges. The pro-
ceedings were settled on 8 July 2021, and a fine amounting
to approximately € 373 million was issued.
The expense for additions to provisions includes litigation
and other legal risks. Income from the reversal of provisions
includes income arising on the reassessment of risks from
legal disputes.
Impairment losses recognised on receivables from contracts
with customers amounted to € 7 million (2020: € 47 million).
Income from the reversal of and expenses for the recognition
of impairment allowances and write-downs relate mainly to
impairment allowances on receivables.
8,795
9,233
expenses
43
647
Other operating income and expenses
Total selling and administrative
-47
- 117
- 266
- 873
-1,055
Other operating expenses
3,495
3,909
Administrative expenses
-272
Sundry operating expenses
5,300
5,324
Selling expenses
-98
Loss on the disposal of assets
2020
-2,300
Combined Management Report
-2,506
New expenditure for capitalised develop-
1,345
1,401
2,971
2,192
1,411
1,591
Expenses for service contracts,
telematics and roadside assistance
Warranty expenditure
Other cost of sales
Cost of sales
5,689
6,299
1,960
1,643
to financial services business
Research and development expenses
89,253
thereof: interest expense relating
26,409
Cost of sales relating to financial
services business
46,878
51,361
Manufacturing costs
2020
2021
in € million
08 Cost of sales
Cost of sales comprises:
Interest income on loan financing and finance leases
includes interest calculated on the basis of the effective
interest method totalling € 3,379 million (2020: € 3,424 mil-
lion). This interest income is not reported separately in the
income statement as it is not significant compared to total
Group revenues.
The services included in vehicle sale contracts that will be
recognised as revenues in subsequent years represent only
an insignificant portion of expected revenues. Accordingly,
use has been made of the practical expedient contained in
IFRS 15, permitting an entity not to disclose information on a
quantitative basis due to the short-term nature of items and
the lack of informational value of such disclosures.
The major part of revenues expected to arise from the
Group's order book at the end of the reporting period relates
to the sale of vehicles. Revenues resulting from those sales
will be recognised in the next financial year.
27,114
85,408
Cost of sales is reduced by public-sector subsidies in the
form of reduced taxes on assets and reduced consump-
tion-based taxes amounting to € 118 million (2020:
€ 105 million).
Impairment losses recognised in the income statement 2021
in connection with receivables from sales financing
amounted to € 103 million (2020: € 646 million). In view of
the fact that the impairment losses are of minor importance
114
1,162
Income from the reversal of provisions
6,279
6,870
Research and development expenditure
326
232
Exchange gains
2020
2021
in € million
2020
2021
in € million
10 Other operating income and expenses
Other operating income and expenses comprise the follow-
ing items:
Research and development expenses are as follows:
compared to total Group cost of sales, they have not been
disclosed separately in the income statement.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
170
ment costs
To Our Stakeholders
The useful life of the plant and equipment is reviewed regu-
larly and extended or shortened as necessary, based on the
assumptions used for long-term corporate planning pur-
poses and product-related decisions, as described above.
For machinery used in multiple-shift operations, deprecia-
tion rates are increased to account for the additional utilisa-
tion. If there is any indication of impairment of property, plant
and equipment, an impairment test is performed as
described above for intangible assets.
166
As part of the process of assessing recoverability, it is gener-
ally necessary to apply estimations and assumptions in
particular regarding future cash inflows and outflows and the
length of the forecast period - which could differ from actual
amounts. Actual amounts may differ from the assumptions
and estimations used if business conditions develop differ-
ently to expectations.
The BMW Group determines the value in use on the basis of
a present value computation. Cash flows used for this calcu-
lation are derived from long-term forecasts approved by
management. These long-term forecasts are based on
detailed forecasts drawn up at an operational level, covering
a planning period of six years. For the purposes of calculat-
ing cash flows beyond the planning period, a perpetual
annuity return is assumed which does not take growth into
account. Forecasting assumptions are continually adjusted
to current information and regularly compared with external
sources. The assumptions used take account in particular of
expectations of the profitability of the product portfolio,
future market share development, macroeconomic develop-
ments (such as currency, interest rate and raw materials
prices) as well as the legal environment and past experi-
ence. Assumptions also take into account the impact of cli-
mate change and the influence of other sustainability factors
on business performance and the product portfolio, for
example as a result of changes in demand patterns, regula-
tory requirements or changes in production conditions.
BMW Group Report 2021
Amounts are discounted on the basis of a market-related
cost of capital rate. Impairment tests are performed for
accounting and financial reporting purposes for the Automo-
tive and Motorcycles cash-generating units using a risk-ad-
justed pre-tax cost of capital (WACC). In the case of the
Financial Services cash-generating unit, a pre-tax cost of
equity capital is used, as is customary in the sector. The fol-
lowing discount factors were applied:
in %
Automotive
Motorcycles
Financial Services
2021
2020
10.1
10.2
10.2
-
13.0
The risk-adjusted discount rate, calculated using a CAPM
model, also takes into account specific peer-group informa-
tion relating to beta-factors, capital structure data and bor-
rowing costs. In conjunction with the impairment tests for
cash-generating units, sensitivity analyses are performed for
the main assumptions in order to rule out that possible
changes to the assumptions used to determine the recover-
able amount would result in the requirement to recognise an
impairment loss. Even in the case of a 10% deterioration in
the individual measurement assumptions, the need to rec-
ognise an impairment loss did not arise.
All items of property, plant and equipment are measured at
acquisition or manufacturing cost less accumulated depreci-
ation and accumulated impairment losses.
The cost of internally constructed plant and equipment com-
prises all costs which are directly attributable to the manu-
facturing process as well as an appropriate proportion of
production-related overheads. This includes production-re-
lated depreciation and amortisation as well as an appropri-
ate proportion of administrative and social costs. Financing
costs are not included in acquisition or manufacturing cost
unless they are directly attributable to the asset. The carry-
ing amount of items of depreciable property, plant and
equipment is written down according to scheduled usage-
based depreciation as a general rule on a straight-line
basis over the useful lives of the assets. Depreciation is
recorded as an expense in the income statement.
-
163
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
The following useful lives are applied throughout the
BMW Group:
13.2
in years
of the recoverable amount, but no higher than the amortised
acquisition or manufacturing cost. Impairment losses on
goodwill are not reversed.
← = Q
161
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements Corporate Governance
Notes to the Group
Financial Statements
Remuneration Report
Other Information
← = Q
Revenues from the sale of products, for which repurchase
arrangements are in place, are not recognised immediately
in full. Instead, revenues are either recognised proportion-
ately or the difference between the sales and repurchase
price is recognised in instalments over the term of the con-
tract depending on the nature of the agreement. In the case
of vehicles sold to a dealership that are expected to be repur-
chased in a subsequent period as part of leasing operations,
revenues are not recognised at Group level at the time of the
sale of the vehicle. Instead, assets and liabilities relating to
the right of return vehicles are recognised.
Revenues from leases of own-manufactured vehicles are
recognised at Group level in accordance with the require-
ments for manufacturer or dealer leases. In the case of oper-
ating leases, revenues from lease payments are recognised
on a straight-line basis over the lease term.
Finance leases, on the other hand, are accounted for as a
sale. At the lease commencement date, revenues are recog-
nised at the amount of the fair value of the leased asset and
reduced by any unguaranteed residual value of vehicles that
are expected to be returned to the Group at the end of the
lease term. In addition, initial direct costs are recognised as
cost of sales at the lease commencement date.
Revenues also include interest income from financial ser-
vices. Interest income arising on finance leases as well as on
retail customer and dealership financing is recognised using
the effective interest method and reported as interest income
on credit financing within revenues.
Public sector grants are not recognised until there is rea-
sonable assurance that the conditions attaching to them
have been complied with and the grants will be received. The
resulting income is recognised in cost of sales over the peri-
ods in which the costs occur that they are intended to com-
pensate.
Earnings per share are calculated as follows: Basic earn-
ings per share are calculated for common and preferred
stock by dividing the net profit for the year after minority
interests and attributable to each category of stock, by the
average number of outstanding shares. Net profit for the
year is accordingly allocated to the different categories of
stock. The portion of the net profit that is not being distrib-
uted is allocated to each category of stock based on the
number of outstanding shares. Profits available for distribu-
tion are determined directly on the basis of the dividend pro-
posals or resolutions for common and preferred stock.
Diluted earnings per share are calculated and separately
disclosed in accordance with IAS 33.
Financial Statements
Intangible assets are measured on initial recognition at
acquisition or manufacturing cost. Subsequently, intangible
assets with finite useful lives are amortised on a straight-line
basis over their useful lives of between three and 20 years.
Impairment losses are recognised where necessary. Intangi-
ble assets with indefinite useful lives are tested annually for
impairment. Internally generated intangible assets mainly
comprise development costs for vehicle, module and archi-
tecture projects.
Goodwill arises when the cost of acquiring a business
exceeds the Group's share of the net fair value of the assets,
liabilities and contingent liabilities identified during the
acquisition.
Intangible assets also include emission allowances and
similar rights arising from programmes aimed at reducing
carbon or other climate-damaging emissions (for example
in conjunction with the EU Emissions Trading System or
vehicle-related emissions regulations in the USA or China).
These allowances and rights are carried at cost and, in the
event that they are allocated free of charge, recorded at a
value of zero. Amounts are derecognised at the date of the
return, sale or expiry of the allowances or rights. In parallel to
the recognition of these allowances and rights as assets,
provisions are recognised in accordance with IAS 37 corre-
sponding to the amount of obligations expected to arise in
conjunction with the related emission regulations. Provisions
are measured on the basis of the expected value of the
allowances or rights that are to be returned.
If there is any indication of impairment of intangible assets,
or if an annual impairment test is required (i. e. intangible
assets with an indefinite useful life, intangible assets during
the development phase and goodwill), an impairment test is
performed. Each individual asset is tested separately unless
the cash flows generated by the asset are not sufficiently
independent from the cash flows generated by other assets
or other groups of assets. In these cases, impairment is
tested at the level of a cash-generating unit, which is the
norm for the BMW Group.
For the purpose of the impairment test, the carrying amount
of an asset (or a cash-generating unit) is compared with the
recoverable amount. The first step of the impairment test is
to determine the value in use. If the value in use is lower than
the carrying amount, the next step is to determine the fair
value less costs to sell and compare the amount so deter-
mined with the asset's carrying amount. If the fair value is
lower than the carrying amount, an impairment loss is rec-
ognised, reducing the carrying amount to the higher of the
asset's value in use or fair value less costs to sell.
If the reason for a previously recognised impairment loss no
longer exists, the impairment loss is reversed up to the level
162
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
Other Information
Development costs are capitalised if all of the criteria spec-
ified by IAS 38 are met. They are measured on the basis of
direct costs and directly attributable overhead costs. Pro-
ject-related capitalised development costs are amortised on
a straight-line basis following the start of production over the
estimated product life (usually five to twelve years).
Factory and office buildings, residential buildings, fixed
installations in buildings and outside facilities
10.1
Other facilities, factory and office equipment
The market values of financial instruments measured at fair
value are determined on the basis of market information
available at the balance sheet date, such as quoted prices or
using appropriate measurement methods, in particular the
discounted cash flow method.
Input factors available on the market, such as ratings and
probabilities of default, are used to calculate valuation allow-
ances for cash and cash equivalents, financial receivables,
receivables from subsidiaries and receivables from compa-
nies in which an investment is held. In the case of marketa-
ble securities and investment funds, the BMW Group usually
applies the option not to allocate financial assets with a low
default risk to different stages. Accordingly, assets with an
investment grade rating are always allocated to stage 1.
Derivative financial instruments are used within the
BMW Group for hedging purposes in order to reduce cur-
rency, interest rate, fair value and market price risks. Deriva-
tive financial instruments are recognised as of the trade
date, measured at their fair value. Depending on their market
value at measurement date, these financial instruments are
reported in the balance sheet as financial assets or financial
liabilities.
Fair values are determined on the basis of valuation models.
Observable market price, tenor and currency basis spreads
are taken into account in the measurement of derivative
financial instruments. Furthermore, the Group's own credit
risk and that of counterparties is taken into account on the
basis of credit default swap values for market contracts with
matching terms.
Plant and machinery
The BMW Group applies the option to recognise the credit
risks arising from the fair values of a group of derivative
financial assets and liabilities on the basis of their total net
amount. Portfolio-based valuation adjustments (credit valu-
ation adjustments and debit valuation adjustments) to the
individual derivative financial assets and financial liabilities
are allocated using the relative fair value approach (net
method).
Where hedge accounting is applied, changes in fair value of
derivative financial instruments are presented as part of
other financial result in the income statement or within other
comprehensive income as a component of accumulated
other equity, depending on whether the hedging relationship
is classified as a fair value hedge or a cash flow hedge.
Fair value hedges are mainly used to hedge interest rate
risks relating to financial liabilities. The currency basis is not
designated as part of the hedging relationship in the case of
cross currency interest rate hedges accounted for as fair
value hedges. Accordingly, changes in the market value of
such components are recorded as costs of hedging within
accumulated other equity. Amounts accumulated in equity
are reclassified to other financial result within the income
statement over the term of the hedging relationship.
In addition, for selected fixed-interest assets, a portion of the
interest rate risk is hedged on a portfolio basis in accordance
with IAS 39. The designated hedged items (underlying
transactions) are reported in the balance sheet as receiva-
bles from sales financing or financial liabilities. Interest rate
risks are hedged on the basis of the present value of net
cash flows relating to fixed-income assets (on the asset
side) less cash flows relating to variable-rate financing (on
the liabilities side). The net cash flow determined in this way
is hedged by purchasing corresponding interest rate swaps
that have the effect of reducing the interest rate risk. Hedge
relationships are terminated and redesignated on a monthly
basis at the end of each reporting period, thereby taking
account of the constantly changing content of each portfolio.
Fair value hedge ineffectiveness is generally recognised in
other financial result.
-
-
The time values of option transactions and the interest com-
ponent including the currency basis of forward currency
contracts are not designated as part of the hedging relation-
ship in the case of currency hedges accounted for as cash
flow hedges. Changes in the fair value of such components
are recorded as costs of hedging on a separate line within
accumulated other equity. Amounts recorded in accumulated
other equity from currency hedges are reclassified to cost of
sales when the related hedged item is recognised in profit or
loss.
In the case of raw materials hedges that are accounted for as
cash flow hedges, the hedging instruments are designated in
full as part of the hedging relationship. As an exception to this
general rule, the interest component of raw materials deriva-
tive instruments redesignated in conjunction with the first-
time application IFRS 9 was not designated as part of the
Items reported under other investments within the scope of
IFRS 9 are measured at fair value through profit or loss.
Investments in subsidiaries, joint arrangements and associ-
ated companies that are not material to the BMW Group are
also included in other investments.
Receivables from sales financing are measured as a gen-
eral rule at amortised cost using the effective interest rate
method.
Receivables from sales financing also include finance lease
receivables which are measured at the amount of the net
investment in the lease. This balance sheet line item also
includes operating lease receivables due at the end of the
reporting period, while the related vehicles are reported as
leased products.
Loss allowances relating to the balance sheet item "Receiv-
ables from sales financing" are determined primarily on the
basis of past experience with credit losses, current data on
overdue receivables, rating classes and scoring information.
The BMW Group derecognises financial assets when it has
no reasonable expectation of recovery. This may be the case,
for instance, if the debtor is deemed not to have sufficient
assets or other sources of income to service the debt.
regardless of whether the general or simplified approach is
applied. In the case of stage 3 assets, interest income is cal-
culated on the asset's carrying amount less any impairment
loss.
← = Q
Other Information
Remuneration Report
Corporate Governance
The BMW Group does not make use of the option to meas-
ure equity instruments at fair value through other compre-
hensive income or debt instruments at fair value through
profit or loss.
Group Financial Statements
Notes to the Group
Financial Statements
To Our Stakeholders
BMW Group Report 2021
165
As a general rule, the BMW Group assumes that a receivable
is in default if it is more than 90 days overdue or if there are
objective indications of insolvency, such as the opening of
insolvency proceedings. Credit-impaired assets are identi-
fied as such on the basis of this definition of default. In the
case of credit-impaired assets which had not been credit-im-
paired at the time they were acquired or originated, an
impairment allowance is recognised at an amount equal to
lifetime expected credit losses (stage 3). This is the case
-
The BMW Group applies the simplified approach described
in IFRS 9 to operating lease and trade receivables, whereby
the amount of the loss allowance is measured subsequent to
the initial recognition of the receivable on the basis of life-
time expected credit losses (stage 2 – simplified approach).
For the purposes of allocating at item to stage 2, it is irrele-
vant whether the credit risk of the assets concerned has
increased significantly since initial recognition.
general approach). The measurement of the change in
default risk is based on a comparison of the default risk at
the date of initial recognition and at the end of the reporting
period. The default risk at the end of each reporting period is
determined on the basis of credit checks, current key perfor-
mance indicators and any overdue payments.
Combined Management Report
Forward-looking information (for instance forecasts of key
performance indicators) is also taken into account if, based
on past experience, such indicators show a substantive cor-
relation to actual credit losses.
Loss allowances on trade receivables are determined pri-
marily on the basis of information relating to overdue
amounts. Furthermore, both positive and negative economic
scenarios are used alongside the latest forecasts of key per-
formance indicators when determining the level of valuation
allowances. These scenarios are based on local analyses
and take into account, for example, anticipated political and
economic developments as well as sustainability risks in the
markets concerned.
Assumptions and estimations are required regarding future
residual values, since these represent a significant part of
future cash inflows. Relevant factors to be considered include
the trend in market prices and demand on the pre-owned
automobile market. The expected change in the drive-sys-
tem mix going forward, which is subject to continuous anal-
ysis, is also taken into account. The BMW Group has devel-
oped and implemented methods and processes that enable
the sustainability aspects of residual value risks, particularly
climate-related factors, to be appropriately assessed and
managed. Potential regulatory changes are also taken into
account. For example, upward or downward adjustments
can be made to residual values on the basis of a range of
scenario analyses. The assumptions are based on internally
available historical data and current market data as well as
on forecasts of external institutions. Furthermore, assump-
tions are regularly validated by comparison with external
data. Certain types of contracts require a high degree of
judgement when deciding whether they give rise to operat-
ing leases or finance receivables.
The BMW Group has not applied the exemptions available to
lessees to account for COVID-19-related rent concessions
(amendments to IFRS 16 dated 28 May 2020 and 31 March
2021).
Group products recognised by BMW Group entities as
leased products under operating leases are measured at
manufacturing cost and all other leased products at acquisi-
tion cost, in each case including initial direct costs. All leased
products are depreciated over the period of the lease using
the straight-line method down to their expected residual
value.
Where the recoverable amount of a lease exceeds the
asset's carrying amount, changes in residual value expecta-
tions are recognised by adjusting scheduled depreciation
prospectively over the remaining term of the lease. If the
recoverable amount is lower than the asset's carrying
amount, an impairment loss is recognised for the shortfall. A
test is carried out at each balance sheet date to determine
whether an impairment loss recognised in prior years no
longer exists or has decreased. In such cases, the carrying
amount of the asset is increased to the recoverable amount,
at a maximum up to the amount of the asset's amortised
cost.
164
BMW Group Report 2021
To Our Stakeholders
Determining which items are to be counted as lease pay-
ments including the issue of the lease term underlying
those payments and which discount rate to apply involves
using estimates and assumptions that may differ from actual
outcomes.
Combined Management Report
Group Financial Statements Corporate Governance
Notes to the Group
Financial Statements
Remuneration Report
Other Information
← = Q
As lessee, the BMW Group makes use of the application
exemptions available for short-term leases and leases of
low-value assets.
-
With the exception of lease receivables, financial assets are
measured on initial recognition at their fair value. Financial
assets include in particular other investments, receivables
from sales financing, marketable securities and investment
funds, derivative financial assets, trade receivables and cash
and cash equivalents. As a general rule, initial recognition
takes place as soon as the BMW Group becomes a party to
a contract; in the case of standard purchases or sales of
non-derivative financial assets, initial recognition takes
place at the settlement date.
Depending on the business model and the structure of con-
tractual cash flows, financial assets are classified as meas-
ured at amortised cost, at fair value through comprehensive
income or at fair value through profit or loss. The category
"measured at fair value through comprehensive income" at
the BMW Group comprises mainly marketable securities and
investment funds used for liquidity management purposes.
Selected marketable securities and investment funds, money
market funds within cash and cash equivalents as well as
convertible bonds are recognised at fair value through profit
or loss, as their contractual cash flows do not solely repre-
sent payments of principal and interest.
-
into account, given that collateral received in the context of
alternative financing arrangements is not relevant within the
BMW Group.
IFRS 16 requires that lease payments are discounted as a
general rule using the interest rate implicit in the lease. How-
ever, since the interest rate in leases entered into by the
BMW Group cannot readily be determined, amounts are dis-
counted on the basis of the incremental borrowing rate,
comprising the risk-free interest rate in the relevant currency
for matching maturities plus a premium for the credit risk.
Specific risks attached to an asset are generally not taken
The lease payments to be taken into account to measure the
right-of-use asset and the lease liability comprise fixed pay-
ments, variable lease payments that depend on an index or
an interest rate as well as amounts expected to be payable
under residual value guarantees. If it is reasonably certain
that a purchase or lease extension option will be exercised,
the relevant payments are also included. Payments for peri-
ods for which the lessee has an option to terminate a lease
unilaterally are only included in the lease payments if it is
reasonably certain that the termination option will not be
exercised. For the purposes of assessing options, the
BMW Group takes account of all facts and circumstances
that create an economic incentive to exercise or not to exer-
cise the option.
The lease liability is measured on initial recognition at the
present value of the future lease payments. Subsequent to
initial recognition, the carrying amount of the lease liability is
increased to reflect interest on the lease liability and reduced,
without income statement impact, by the lease payments
made. Lease liabilities are reported within financial liabili-
ties, while interest expense is reported as part of net interest
result. In the cash flow statement, both the repayment por-
tion and the interest portion of lease payments are shown as
cash outflows from financing activities.
ance sheet within the relevant line items for property, plant
and equipment. The depreciation expense on right-of-use
assets is reported in the income statement in cost of sales
as well as in selling and administrative expenses.
In the case of leased items of property, plant and equip-
ment, a right-of-use asset and a liability for the outstanding
lease payments are recognised with effect from the date on
which the leased asset becomes available for use by the
BMW Group. The cost of the right-of-use asset is the sum of
the amount at which lease liability is initially measured, any
lease payments made at or before the lease commence-
ment date, any initial direct costs incurred by the lessee and
the estimated costs of dismantling, removing or restoring the
leased asset. Lease incentives granted by the lessor are
deducted. Right-of-use assets are depreciated on a straight-
line basis over the shorter of the useful life of the leased
asset and the expected lease term. If ownership of the
leased asset is automatically transferred at the end of the
lease term or the exercise of a purchase option is reflected in
the lease payments, the right-of-use asset is depreciated on
a straight-line basis over the expected useful life of the
leased asset. Right-of-use assets are reported in the bal-
3 to 21
2 to 25
8 to 50
Investments accounted for using the equity method are
measured provided no impairment has been recognised -
at cost of investment adjusted for the Group's share of earn-
ings and changes in equity capital. If there is any indication
that an investment is impaired, an impairment test is per-
formed on the basis of the discounted cash flow method. An
indicator exists, for example, in the event of a serious short-
fall compared to budget, the loss of an active market or if
funds are required to avoid insolvency.
-71
26.1 %
22.4%
Effective tax rate
Valuation allowances on tax loss carryforwards
1,365
3,597
Actual tax expense
25
-15
17
Other variances
Eliminations
-54
Liabilities
Valuation allowances on capital losses
Variances due to different tax rates
-596
-397
Leased products
Tax increases (+)/ tax reductions (-)
Other investments
due to:
Sundry other assets
Tax-exempt income
-597
Effects from tax rate changes
- 97
Non-deductible expenses
314
398
Capital Losses
Equity accounted
-370
-210
Provisions
Tax expense (+) / benefits (-) for prior
years
61
Tax loss carryforwards
Netting
1,061
Net
1
1
886
1,013
4,646
3,966
476
490
348
6,070
6,655
29
33
4,303
3,717
601
852
6
5
3,203
4,493
The tax reductions due to tax-exempt income related pri-
Imarily to the partial release of the provision for the EU anti-
trust proceedings as well as to the tax-exempt impact of the
mark-to-market valuation of participations.
Tax benefits for prior years resulted primarily from adjust-
ments to income tax receivables and provisions for prior
years, among other things due to transfer pricing issues in
connection with unconcluded and ongoing transfer pricing
proceedings.
Deferred tax assets
Deferred tax liabilities
2021
2020
2021
2020
Deferred taxes
4
3,494
3,354
74
49
665
673
300
282
17
Property, plant and equipment
The tax expense was reduced by € 28 million (2020: € 4 mil-
lion) as a result of utilising tax loss carryforwards, for which
deferred assets had not previously been recognised and in
conjunction with previously unrecognised tax credits and
temporary differences.
4,946
The tax expense resulting from the change in the valuation
allowance on deferred tax assets relating to tax losses avail-
able for carryforward and temporary differences amounted
to € 3 million (2020: € 10 million).
3,936
Taxes on income of the BMW group comprise the following:
13 Income taxes
Sundry other financial result benefited in 2021 from the favour-
able fair value development of interest rate hedges resulting
from the rise in yield curves in the USA, whereas in the previ-
ous year, the downward trend in interest rates gave rise to fair
value measurement losses on interest rate hedges.
Sundry other financial result comprises mainly income and
expenses arising on the measurement of stand-alone deriv-
atives and fair value hedge relationships, as well as income
and expenses from the measurement and sale of marketa-
ble securities and shares in investment funds.
Deferred taxes are determined on the basis of tax rates
which are currently applicable or expected to apply in the rel-
evant national jurisdictions when the amounts are recov-
ered. After taking account of an average municipal trade tax
multiplier rate (Hebesatz) of 428.0 (2020: 428.0), the under-
lying income tax rate for Germany was as follows:
- 342
Net interest result
2020
2021
in € million
- 458
-165
-30
Interest and similar expenses
Current tax expense
2,023
- 450
1,668
differences
thereof relating to temporary
15.0
15.0
2,512
Corporate tax rate
- 658
1,085
2020
2021
in %
Deferred tax expense (+)/ deferred tax
income (-)
12 Other financial result
Solidarity surcharge
-1
- 225
2020
2021
in € million
Net interest result
11
← = Q
Other interest and similar income
Other Information
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
171
Remuneration Report
thereof subsidiaries:
135
thereof from subsidiaries:
-214
Other interest and similar expenses
-34
-22
benefit liability for pension plans
Net interest expense on the net defined
116
- 199
Net interest impact on other long-term
provisions
116
135
Interest and similar income
8
12
71
1,608
5.5
in € million
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
172
Remuneration Report
- 186
Other financial result
Deferred taxes for non-German entities are calculated on the
basis of the relevant country-specific tax rates. These ranged
in the financial year 2021 between 9.0% and 40.0% (2020:
between 9.0% and 40.0%).
-234
586
Sundry other financial result
-234
1,170
586
Other Information
Financial Statements
Expected tax expense
Intangible assets
30.8%
30.8%
Tax rate applicable in Germany
in € million
← = Q
5,222
Profit before tax
2020
2021
in € million
The allocation of deferred tax assets and liabilities to bal-
ance sheet line items at 31 December is shown in the fol-
lowing table:
The difference between the expected tax expense based on
the underlying tax rate for Germany and actual tax expense
is explained in the following reconciliation:
16,060
5.5
cial instruments
48
135
612
and participations
15.8
15.8
surcharge
Income taxes
- 208
wards and tax credits
Income from investments in subsidiaries
Corporate tax rate including solidarity
thereof relating to tax loss carryfor-
2020
2021
-583
Income (+) and expenses (-) from finan-
3,597
Municipal trade tax rate
584
Result on investments
- 87
-28
subsidiaries and participations
Expenses from investments in
1,365
30.8
German income tax rate
12
14
thereof from subsidiaries:
15.0
15.0
30.8
3,721
Corporate Governance
1,766
51
131
19
927
907
2,344
2
249
335
45
2,211
3,251
262
73
2
25
36
69
1,009
60,991
Property, plant and equipment
1,619
1,8842
1,884
20
5
1,407
23
1,619
Advance payments made and construction
in progress
70
62
-1,160
4,723
4
thereof right-of-use assets from leases
31,574
2,311
2
3,180
468
30,239
10,165
41,739
864
2,292
634
40,299
Plant and machinery
2,312
2,350
121
10,060
58
71
1,826
67
3,138
Other facilities, factory and office
equipment
40
thereof right-of-use assets from leases
131
19
15
18
145
38
125
14
2,229
-2
63,760
-39
-434
-17
444
1,020
46
32
75
963
216
253
87
2
85
28
340
988
Non-current marketable securities
735
1,241
119
-39
-434
-15
519
529
65
55
122
39
1,264
Other investments
1,360
2,961
19
11
301
8,125
53,847
16,463
18,465
1,725
5,263
50,120
22,390 21,850
41,370
2,766
4,358
637
39,141
Leased products
47
4,542
44,700 41,995
301
Participations
subsidiaries
Investments in non-consolidated
3,585
5,112
9,147
240
5,352
209
1,736
3,825
equity method
Investments accounted for using the
240
1 Including € 434 million recognised through the income statement
1,134
433
-332
2,401
- 61
2,462
* Prior year's figures adjusted.
Other comprehensive income
- 284
- 1,283
1,228
1,228
51
-55
106
85
- 1,283
135
-616
Gains or losses realised on derivative financial instruments
which have been reclassified to acquisition costs for invento-
ries are not recognised through other comprehensive income
after tax.
Depreciation, amortisation and impairment losses
Acquisition and manufacturing cost
Reclassifi-
Translation
20 Analysis of changes in Group tangible, intangible and investment assets 2021
NOTES TO THE BALANCE SHEET
← = Q
Other comprehensive income relating to equity accounted
investments is reported in the Group Statement of Changes
in Equity within currency translation differences with a posi-
tive amount of € 490 million (2020: negative amount of
€ 113 million), within derivative financial instruments with a
negative amount of € 368 million (2020: positive amount of
€ 118 million) and within costs of hedging with a negative
amount of € 37 million (2020: positive amount of € 46 mil-
lion).
Other Information
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
178
Remuneration Report
Carrying amount
-50
141
Marketable securities (at fair value through other comprehensive income)
Derivative financial instruments *
-215
After tax
Deferred taxes
139
- 354
1,019
-45
-224
Before tax
After tax
Deferred taxes
Before tax
Remeasurement of the net liability for defined benefit pension plans
in € million
1,243
Other comprehensive income from equity accounted investments
Currency translation foreign operations
13
7
- 60
201
50
-22
72
Costs of hedging *
-32
685
991
51
37
14
5
-2
- 306
115
in € million
cations Disposals 31.12.2021
789
285
15,935
buildings on third party land
Land, titles to land, buildings, including
12,342
221
12,980
251
2,137
12
6,769
21,647
307
8,667
2
344
6,691
20
796
3,363
220
416
59
16,886
3,108
9,244
9,434
7,452
206
843
124
thereof right-of-use assets from leases
1.1.2021 differences Additions
2,795
19,111
5
385
1
384
Goodwill
Disposals 31.12.2021 31.12.2021 31.12.2020
7,714 11,573 11,007
5
190
Translation
1.1.2021 differences
5,969
19,287
195
2,506
16,976
Development costs
Current Reclassifi- Value ad-
year cations justments¹
1,935
46
380
Other intangible assets
Intangible assets
956
1,027
948
61
202
379
12
1,975
112
2
289
45
1,751
795
2020
2 Including assets under construction of € 1,354 million.
BMW Group Report 2021
3,825
1,054
1,440
Participations
subsidiaries
Investments in non-consolidated
240
3,439
Investments accounted for using the
41,995 42,609
8,125
4,741
5,833
- 300
equity method
7,333
292
72
10
501
963
97
84
-24
-11
1,000
216
85
-3
88
301
52
204
.57
50,120
17,820
1,6192
1,619
- 1,294
941
- 19
1,991
1,991
Advance payments made and construction
in progress
70
51
16
1,025
927
2,211
73
15,712
Property, plant and equipment
- 1,264
- 1,930
49,942
Leased products
21,850 23,245
39,141
1,830
60,673
-2
- 705
37,428
60,991
2,067
-2
3,651
4,250
206
10
519
10,123
31.12.2021
The at-equity loss reported for YOUR NOW for 2021
amounted to € 171 million (2020: loss of € 349 million). On
29 March 2021 YOUR NOW Holding GmbH signed an agree-
ment with the bp Group for the latter to acquire a 33.3%
stake in Digital Charging Solutions GmbH (DCS) (Charge-
Now). The transaction was completed on 1 October 2021. In
addition, on 8 March 2021, YOUR NOW Holding GmbH
signed an agreement to sell PARK NOW Group to EasyPark
Group. Following receipt of regulatory approval, the transac-
tion was completed on 27 May 2021. The impact of the two
transactions is not material.
YOUR NOW
31.12.2020
The BMW Group acquired a further 25% of the shares in the
BMW Brilliance joint venture on 11 February 2022. The trans-
action is described in detail in note 3.
between one and two years
between two and three years
between three and four years
between four and five years
later than five years
Minimum lease payments
well as petrol engines and high-voltage batteries at a sepa-
rate facility.
in € million
Minimum lease payments of non-cancellable operating
leases amounting to € 23,026 million (2020: € 20,872 mil-
lion) fall due as follows:
23 Leased products
property rental agreements concerned often contain exten-
sion and termination options.
Right-of-use assets arising from leases of land and buildings
relate primarily to logistics and office premises and, to a
lesser extent, to selling and production premises. In order to
secure these premises and, in the interests of flexibility, the
As in the previous year, no financing costs were recognised
as a cost component of property, plant and equipment in
2021.
within one year
No impairment losses were recognised in 2021, as in the
previous year.
7,052
9,285
6,327
3,416
In collaboration with Mercedes-Benz Group AG, the Ford
Motor Company, the Volkswagen Group, Kia Motors Corpo-
ration and Hyundai Motor Corporation, the BMW Group
operates the joint venture IONITY, whereby each of the par-
ties has an equal shareholding. IONITY's business model
envisages the construction and operation of high-perfor-
mance charging stations for battery-powered vehicles in
Europe. On 1 November 2021, IONITY Holding GmbH & Co.
KG signed a contract with GRP III HPC Lux S.à.r.l. (Black-
rock) for the provision of financing amounting to € 500 mil-
lion to expand the charging network. The existing share-
holders are also investing an additional € 200 million in the
business. The transaction is due to be completed in the first
half of 2022.
IONITY
BMW Brilliance produces BMW brand models primarily for
the Chinese market at its two vehicle production plants as
BMW Brilliance
24 Investments accounted for using the equity method
Investments accounted for using the equity method com-
prise the joint venture BMW Brilliance Automotive Ltd. (BMW
Brilliance), Shenyang, the joint venture YOUR NOW Holding
GmbH, Munich, the joint venture IONITY Holding GmbH &
Co. KG (IONITY), Munich, and interests in the associated
company THERE Holding B.V. (THERE), Rijswijk, and the
associated company Solid Power Inc., Wilmington, Delaware.
Impairment losses amounting to € 338 million (2020:
€ 312 million) were recognised on leased products in 2021 as
a consequence of changes in residual value expectations.
Income from the reversal of impairment losses amounted to
€ 111 million (2020: € 110 million).
3,812
20,872
35
35
275
302
1,534
1,702
23,026
444
22 Property, plant and equipment (including right-of-
use assets arising from leasing)
As in the previous year, there was no requirement to recog-
nise impairment losses or reversals of impairment losses on
intangible assets in 2021.
- 57
7
589
1,264
149
156
10
-35
Other investments
Non-current marketable securities
3,199
3,585
240
499
1,292
As in the previous year, no financing costs were recognised
as a cost component of intangible assets in 2021.
529
703
Other intangible assets include a brand-name right amount-
ing to € 43 million (2020: € 40 million) which is allocated to
the Automotive segment and is not subject to scheduled
amortisation since its useful life is deemed to be indefinite.
The asset is subject to a limited right of ownership. Intangi-
ble assets also include goodwill of € 33 million (2020:
€ 33 million) allocated to the Automotive cash-generating
unit (CGU) and goodwill of € 347 million (2020: € 346 mil-
lion) allocated to the Financial Services CGU. The changes in
these items compared to the previous year are exclusively
currency-related.
Intangible assets mainly comprise capitalised development
costs on vehicle, module and architecture projects as well as
subsidies for tool costs, licences, purchased development
projects, emission allowances, software and purchased cus-
tomer lists.
21 Intangible assets
← = Q
Other Information
Remuneration Report
735
Corporate Governance
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
180
2 Including assets under construction of € 1,297 million.
1 Including € 57 million recognised through the income statement
Group Financial Statements
Notes to the Group
Financial Statements
179
37
- 1
906
956
795
543
2
183
Intangible assets
-16
1,751
545
2
271
-52
2,075
1,169
Other intangible assets
17,851
2,571
15,449
buildings on third party land
Land, titles to land, buildings, including
11,729
12,342
6,769
-53
1,232
1,893
-16
6,122
19,111
1,260
2
2
- 380
380
5
1.1.2020 differences Additions
in € million
Carrying amount
Depreciation, amortisation and impairment losses
Acquisition and manufacturing cost
Reclassifi-
Translation
Development costs
Analysis of changes in Group tangible, intangible and investment assets 2020
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
← = Q
379
15,391
cations Disposals 31.12.2020
715 16,976
5
384
- 1
385
Goodwill
5,969 11,007 10,443
2,300
689
4,948
Disposals 31.12.2020 31.12.2020 31.12.2019
cations justments¹
Reclassifi- Value ad-
Current
year
Translation
1.1.2020 differences
1,710
34
621
293
40
18
2
15
1
6
76
58
8
1
82
thereof right-of-use assets from leases
10,884
10,060
31
30,239
Other facilities, factory and office
equipment
- 100
31
121
20
41
-4
104
3,172
thereof right-of-use assets from leases
-59
2,147
3,138
226
44
248
333
538
1,500
3,071
219
12
280
-72
3,107
thereof right-of-use assets from leases
3,108
9,345
6,691
124
846
- 135
6,104
15,935
9,244
2
426
452
-511
29,177
40,299
1,548
710
1,841
-14
-765
Plant and machinery
2,681
2,312
796
73
5
40,061
2021
235
← = Q
12,244
Average number of employees
118,626
122,874
thereof at proportionately-
consolidated entities
304
139
Most of the expenses for leases of low-value assets and
short-term leases relate to low-value assets.
The BMW Group is party to leases at the end of the reporting
period which have not yet commenced. These leases could
give rise to future cash outflows amounting to € 530 million
(2020: € 225 million).
Total cash outflows for leases in 2021 amounted to
€ 600 million (2020: € 653 million).
12,286
Information on right-of-use assets, lease liabilities as well as
further explanatory comments are provided in 7 note 6
(Accounting policies, assumptions, judgements and estima-
tions), note 20 (Analysis of changes in Group tangible, intan-
gible and investment assets 2021), note 22 (Property, plant
and equipment (including right-of-use assets arising from
leasing) and note 35 (Financial liabilities).
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
As lessor
in € million
2021
175
2020
Personnel expenses
2021
1.90
Interest expense arising on the
Е
5.82*
1.92
measurement of lease liabilities
-48
-55
Earnings per share of preferred stock are computed on the
basis of the number of preferred stock shares entitled to
receive a dividend in each of the relevant financial years. As
in the previous year, diluted earnings per share correspond
to basic earnings per share.
15 Personnel expenses
The income statement includes personnel expenses as fol-
lows:
2020
in € million
Personnel expenses include € 223 million (2020: 602 mil-
lion) of costs relating to workforce measures.
The decrease in pension and welfare expenses was mainly
attributable to positive changeover effects resulting from the
modernisation of the pension plan model in Germany
amounting to € 562 million. The total pension expense for
defined contribution plans of the BMW Group amounted to
€ 160 million (2020: € 150 million). Employer contributions
paid to state pension insurance schemes totalled € 654 mil-
lion (2020: € 634 million).
The average number of employees during the year was:
2021
10,598
Pension and welfare expenses
720
2020
10,081
1,252
Social insurance expenses
968
911
Wages and salaries
Income from variable lease payments for
operating leases
109
148
2020
2021
2020
16
14
5
4
2
1
2
0
2021
0
0
0
1
3
1
0
19
18
8
4
176
0
thereof: PwC GmbH
PwC International
Fee expense
Income from variable lease payments for
finance leases
13
17
Financial income on the net investment in
finance leases
964
890
Selling profit on the sale of vehicles
previously leased to retail customers under
finance leases
1,557
1,167
Variable lease payments are based on distance driven. The
agreements have, in part, extension and purchase options.
17 Fee expense for the Group auditor
The fee expense pursuant to § 314 (1) no. 9 HGB recognised
in the financial year 2021 for the Group auditor and the PwC
network of audit firms amounted to € 19 million (2020:
€ 18 million) and consists of the following:
Services provided during the financial year 2021 by the Group
auditor PricewaterhouseCoopers GmbH Wirtschaftsprü-
fungsgesellschaft, Frankfurt am Main, Munich branch, on
behalf of BMW AG and subsidiaries under its control relate to
the audit of the financial statements, other attestation ser-
vices, tax advisory services and other services.
The audit of financial statements comprises mainly the audit
of the Group Financial Statements and the separate finan-
cial statements of BMW AG and its subsidiaries, and all work
related thereto, including the review of the Interim Group
Financial Statements.
Other attestation services include mainly project-related
audits, comfort letters and statutorily prescribed, contractu-
ally agreed or voluntarily commissioned attestation work.
Tax advisory services include primarily services related to
transfer pricing and tax compliance.
Other services mainly include consulting services relating to
production processes.
18 Government grants and government assistance
Income from asset-related and performance-related grants,
amounting to € 94 million (2020: € 67 million) and € 152 mil-
lion (2020: € 210 million) respectively, was recognised in the
income statement in 2021.
These amounts relate mainly to public sector grants aimed
at the promotion of regional structures as well as to subsi-
dies received for plant expansions.
in € million
Audit of financial statements
Other attestation services
Tax advisory services
Other services
5.80*
Е
-13
- 14
Loss carryforwards amounting to € 3,834 million (2020:
€ 1,129 million) can be used indefinitely, while € 304 million
(2020: € 439 million) expire after more than 3 years.
Capital losses available for carryforward in the United King-
dom which do not relate to ongoing operations increased to
€ 1,959 million (2020: € 1,832 million) due to currency fac-
tors. As in previous years, deferred tax assets recognised on
these tax losses - which increased to € 490 million due to a
tax rate change in the UK (2020: € 348 million) - were fully
written down since they can only be utilised against future
capital gains.
Deferred tax assets and deferred tax liabilities are netted for
each relevant tax entity if they relate to the same tax author-
ities.
Deferred taxes recognised directly in equity amounted to
€ 1,733 million (2020: € 1,710 million).
in € million
Deferred taxes at 1 January (assets (+)/ liabilities (-))
Deferred tax expense (-)/ income (+) recognised through income statement
Change in deferred taxes recognised directly in equity
thereof relating to fair value gains and losses on financial instruments and marketable securities recognised
directly in equity
thereof relating to the remeasurements of net liabilities for defined benefit pension plans
thereof from currency translation
Exchange rate impact and other changes
Deferred taxes at 31 December (assets (+)/ liabilities (-))
For entities with tax losses available for carryforward, a net
surplus of deferred tax assets over deferred tax liabilities is
reported amounting to € 2,487 million (2020: € 392 million).
The basis for the recognition of deferred taxes is the
BMW Group business model or management's assessment
that there is material evidence that the entities will generate
future taxable profit, against which deductible temporary dif-
ferences can be offset. The increase in tax loss carryfor-
wards was mainly attributable to the exercise of a tax option
by the BMW Group's US companies. Furthermore, it is
assumed that tax start-up losses relating to the San Luis
Potosí plant in Mexico, opened in 2019, can be utilised by
offset against planned future profits.
Taxable temporary differences relating to investments in
subsidiaries, associated companies and joint ventures
amount to € 25,526 million (2020: € 22,174 million). No
deferred taxes are recognised on these taxable temporary
differences because the BMW Group is able to determine the
timing of the reversal of the temporary differences and it is
probable that the temporary differences will not reverse in
the foreseeable future, in particular in view of the fact that
there is no intention to distribute the profits, but rather to use
them to maintain their substance and reinvest in the compa-
nies concerned. No computation was made of the potential
impact of income taxes on the grounds of proportionality.
Deferred tax liabilities on expected dividends amount to
€ 79 million (2020: € 76 million) and relate primarily to divi-
dends from foreign subsidiaries and joint ventures.
2020
1,950
1,562
- 1,085
658
23
- 305
247
-443
-250
161
2021
Tax loss carryforwards relating to Germany and foreign
operations amounted to € 4,138 million (2020: € 1,568 mil-
lion). This includes one tax-loss carryforward amounting to
€ 413 million (2020: € 406 million), on which a valuation
allowance of € 140 million (2020: € 138 million) was recog-
nised on the related deferred tax asset.
← = Q
Other Information
17,129
16,284
15,755
13,848
- 140
- 138
-490
- 348
- 14,297
- 13,339
- 14,297
- 13,339
2,202
2,459
1,458
509
744
1,950
173
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
26
BMW Group Report 2021
-23
744
€ million
1,083.8
326.9
in € million
2021
2020
number
601,995,196
601,995,196
number
57,686,234
3,448.1
56,867,180
-74
- 91
€
18.77
5.73
Expenses relating to variable lease
payments not included in the measurement
Е
18.79
Deferred taxes on components of other comprehensive
income are as follows:
of lease liabilities
Expenses for leases of low-value assets
and short-term leases
11,298.4
€ million
In terms of accounting for leases as a lessee, the following
amounts are included in the income statement:
35
1,950
The tax returns of BMW Group entities are checked regularly
by German and foreign tax authorities. Taking account of
numerous factors - including interpretations, commentaries
and legal decisions relating to the various tax jurisdictions as
well as past experience – adequate provision has been
made, to the extent identifiable and probable, for potential
future tax obligations.
174
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Remuneration Report
Other Information
← = Q
14 Earnings per share
Net profit attributable to the shareholders of BMW AG
Profit attributable to common stock
Profit attributable to preferred stock
Average number of common stock shares in circulation
Average number of preferred stock shares in circulation
Basic / diluted earnings per share of common stock
Basic / diluted earnings per share of preferred stock
Dividend per share of common stock
Dividend per share of preferred stock
* Proposal by the Board of Management
16 Leases
2021
€ million
12,382.2
2020
3,775.0
As lessee
-144
To Our Stakeholders
5.75
1,243
Derivative financial instruments
thereof gains/losses arising in the period under report
thereof reclassifications to the income statement
Costs of hedging
thereof gains/losses arising in the period under report
thereof reclassifications to the income statement
-7
-13
14
991
25
1,636
-11
-645
72
-287
-437
359
638
Other comprehensive income from equity accounted investments
Deferred taxes*
-50
106
163
thereof reclassifications to the income statement
20
-38
thereof gains/losses arising in the period under report
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
NOTES TO THE STATEMENT
OF COMPREHENSIVE INCOME
19 Disclosures relating to the statement of comprehen-
sive income
Other comprehensive income for the period after tax com-
prises the following:
in € million
-423
2021
Remeasurement of the net liability for defined benefit pension plans
- 354
Deferred taxes
-224
139
Items not expected to be reclassified to the income statement in the future
1,019
- 215
Marketable securities (at fair value through other comprehensive income)
-45
7
2020
Currency translation foreign operations
201
-1,283
1,228
Other Information
Remuneration Report
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
Corporate Governance
* Prior year's figure adjusted.
-616
2,401
Other comprehensive income for the period after tax
-401
1,382
177
Items that can be reclassified to the income statement in the future
1,247
-82
due between four and five years
669
558
7,752
7,515
Expected reimbursement claims
1,165
1,112
Financial assets
1,187
711
-25,011
24,989
21
27
-6
-717
1,246
- 5
5
675
- 680
-90
90
-22
1,046
1,715
44
thereof assets
Sundry other assets
5,809
6,001
due between one and two years
454
295
Prepaid expenses
364
397
Collateral assets
5,108
5,800
thereof current
6,426
6,625
due within one year
2,644
546
694
Receivables from subsidiaries
thereof non-current
22,754
1,200
24,413
Gross investment in finance leases
48
due later than five years
thereof pension provisions
The capital structure is managed in order to meet needs
arising from changes in economic conditions and the risks of
the underlying assets.
Translation differences and other changes
22
- 235
257
411
411
Past service cost
Interest expense (+)/income (-)
3,680
3
Net defined
benefit liability
Effect of limitation
of the net defined
benefit asset to the
asset ceiling
Total
3,677
-527
-22,910
Plan assets
benefit obligation
Defined
Current service cost
EXPENSE / INCOME
1 January 2021
in € million
The change in the net defined benefit liability for pension
plans can be derived as follows:
← = Q
Other Information
Remuneration Report
Corporate Governance
26,587
-527
411
22
Pensions and other benefits paid
Employee contributions
- 1,082
- 1,082
- 1,082
Transfers to fund
1,157
1,157
Changes in the limitation of the net defined benefit asset to the asset ceiling
97
-616
-1,341
-652
-1,341
-616
97
97
Gains (-) or losses (+) arising from experience adjustments
-616
Gains (-) or losses (+) arising from changes in demographic assumptions
-1,341
1,581
Gains (-) or losses (+) arising from changes in financial assumptions
-652
-652
Gains (-) or losses (+) on plan assets, excluding amounts included in interest income
REMEASUREMENTS
Gains (-) or losses (+) arising from settlements
-527
31 December 2021
Group Financial Statements
Notes to the Group
Financial Statements
1,950
199
-65
Other changes
-31
-46
10
Changes in risk parameters
- 143
-131
-11
31
-1
-9
-55
11
34
Derecognition and origination of receivables
129
170
-1
-37
Write-off of receivables
-3
-4
Impairment allowances at 31 December 2021
-6
1
Reclassification to Stage 1
1,099
517
12
209
361
Impairment allowances at 1 January 2020
3
Total
General
in € million
Stage 3
Stage 2
Stage 1
567
35
550
447
Simplified
- 4
Reclassification to Stage 3
-25
-67
-35
Total
in accordance with IFRS 9, which only arise within the Finan-
cial Services segment, developed as follows:
Impairment allowances on receivables from sales financing
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
1,599
Combined Management Report
BMW Group Report 2021
184
379
-37
-35
- 830
- 337
216
- 125
To Our Stakeholders
119
In connection with the coronavirus pandemic, allowances for
expected credit losses were increased in 2020 to take
account of the negative impact on retail customer and deal-
ership business, to the extent not covered by the
BMW Group's standard loss provisioning models (post-
model adjustments) and their level reviewed on a regular
basis. Although the level of expected credit losses decreased
significantly during 2021, a large proportion of the additional
allowance recorded one year earlier was retained due to
ongoing uncertainty about the further course of the pan-
demic.
The estimated fair value of vehicles held as collateral for
credit-impaired receivables at the end of the reporting period
totalled € 569 million (2020: € 517 million). The carrying
amount of assets held as collateral and taken back as a
result of payment default amounted to € 21 million (2020:
€ 33 million).
159
-15
Reclassification to Stage 2
-34
-7
-31
4
Reclassification to Stage 1
1,639
Impairment allowances include € 102 million (2020:
€ 95 million) on credit-impaired receivables relating to
finance leases.
643
474
483
Impairment allowances at 1 January 2021
Simplified
General
in € million
Stage 3
Stage 2
Stage 1
39
-9
Reclassification to Stage 2
- 15
4,226
4,243
Marketable securities and investment funds
6,970
7,147
due within one year
31.12.2020
31.12.2021
in € million
Return right assets for future leased
31.12.2020
in € million
31.12.2020
31.12.2021
in € million
Other assets comprise:
28 Other assets
Financial assets comprise:
26 Financial assets
Financial Statements
31.12.2021
Finance leases are analysed as follows:
due between one and two years
6,293
216
Other
3,695
4,435
due between three and four years
2,048
2,190
Receivables from companies in which an
investment is held
71
6,528
58
5,190
5,590
due between two and three years
3,256
2,998
Derivative instruments
3,041
2,405
products
Loans to third parties
← = Q
Other Information
Remuneration Report
-90
-1
-14
-1
Write-off of receivables
1
-33
1
21
- 106
12
160
195
-1
-30
-4
Reclassification to Stage 3
123
-15
153
Derecognition and origination of receivables
Changes in risk parameters
60
66
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
185
1,639
643
39
474
483
Impairment allowances at 31 December 2020
195
24
27
75
69
Other changes
176
49
1
Other taxes
Combined Management Report
Carrying amounts
BMW Group Report 2021
15,045
15,535
8,844
9,944
1,100
1,108
24,989
26,587
Fair value of plan assets
14,105
12,451
9,968
9,589
938
870
31.12.2020
31.12.2021
31.12.2020
31.12.2021
Remuneration Report
Other Information
← = Q
Financial Statements
Based on the measurement principles contained in IAS 19,
the following balance sheet carrying amounts apply to the
Group's pension plans:
Germany
25,011
United Kingdom
Total
in € million
Present value of defined benefit obligations
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Other
Corporate Governance
22,910
1,184
57,689,304
2021
56,867,304 601,995,196
2021
2020
Preferred stock
In addition, 3.070 previously issued shares of preferred stock
were acquired and re-issued to employees.
Issued share capital increased by € 1.7 million as a result of
the issue to employees of 1,715,000 new shares of non-vot-
ing preferred stock. BMW AG is authorised up to 15 May 2024
to issue 5 million shares of non-voting preferred stock
amounting to nominal € 5.0 million. At the end of the report-
ing period, 1.7 million of these amounting to nominal
€ 1.7 million remained available for issue.
In 2021, a total of 1,718,070 shares of preferred stock was
sold to employees at a reduced price of € 60.78 per share in
conjunction with an Employee Share Programme. These
shares are entitled to receive dividends for the first time with
effect from the financial year 2022.
All Company stock is issued to bearer and each share has a
par value of € 1.00. Preferred stock, to which no voting rights
are attached, bear an additional dividend of € 0.02 per
share.
Less: shares repurchased and re-issued
Shares issued / in circulation at 31 December
Shares issued in conjunction with Employee Share Programme
Shares issued in circulation at 1 January
Number of shares issued
31 Equity
1,718,070
3,070
59,404,304
822,124
124
Capital reserves
3
Capital management disclosures
Accumulated other equity comprises amounts recognised
directly in equity resulting from the translation of the finan-
cial statements of foreign subsidiaries, changes in the fair
value of derivative financial instruments and marketable
securities, costs of hedging recognised directly in equity as
well the related deferred taxes.
Accumulated other equity
The proposed distribution was not recognised as a liability in
the Group Financial Statements.
Distribution of a dividend of € 5.80 per share of common
stock (€ 3,491 million)
Distribution of a dividend of € 5.82 per share of preferred
stock (€ 336 million)
Effect of limiting net defined benefit asset to asset ceiling
―
Revenue reserves comprise the non-distributed earnings of
companies consolidated in the Group Financial Statements.
In addition, remeasurements of the net defined benefit obli-
gation for pension plans are also presented in revenue
reserves.
Revenue reserves
Capital reserves include premiums arising from the issue of
shares and totalled € 2,325 million (2020: € 2,199 million).
The change amounting to € 126 million related to the share
capital increase in conjunction with the issue of shares of
preferred stock to employees.
57,689,304 601,995,196 601,995,196
601,995,196
2020
Common stock
It is proposed that the unappropriated profit of BMW AG for
the financial year 2021 amounting to € 3,827 million be uti-
lised as follows:
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
Other
Proportion of total capital
41.8%
36.4%
Non-current financial liabilities
62,342
67,390
in %
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Current financial liabilities
United Kingdom
Germany
60,891
74,366
The BMW Group is not subject to any unified external mini-
mum equity capital requirements. Within the Financial Ser-
vices segment, however, there are a number of individual
entities which are subject to equity capital requirements of
relevant regulatory banking authorities.
In order to manage its capital structure, the BMW Group
uses various instruments, including the amount of dividends
paid to shareholders and share buybacks. Moreover, the
BMW Group actively manages debt capital, carrying out
funding activities with a target debt structure in mind. A key
aspect in the selection of financial instruments is the objec-
tive to achieve matching maturities for the Group's financing
requirements. In order to reduce non-systematic risk, the
BMW Group uses a variety of financial instruments available
on the world's capital markets to achieve diversification.
188
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
41,121
Corporate Governance
Other Information
← = Q
The capital structure at the end of the reporting period was
as follows:
in € million
Equity attributable to shareholders of
BMW AG
31.12.2021 31.12.2020
The assumptions stated below, which depend on the eco-
nomic situation in the relevant country, are used to measure
the defined benefit obligation of each pension plan. The fol-
lowing weighted average values have been used for Ger-
many, the UK and other countries:
Remuneration Report
38,986
Discount rate
1.04
19.8
15.4
15.9
Total capital
177,829
167,267
Mortality Table 2018 G issued by Prof. K. Heubeck (with invalidity rates reduced by 70%)
S3PA Tables and CMI_2020 model with improvement factor of 1.25%
17.8
Equity attributable to shareholders of BMW AG increased
during the financial year by 22.1%, primarily reflecting the
increase in revenue reserves.
In the case of defined benefit plans, the BMW Group is
required to pay the benefits it has granted to present and
past employees. Defined benefit plans may be covered by
provisions or pension assets. In Germany, pension obliga-
tions of the BMW Group are mostly covered by assets trans-
ferred to BMW Trust e. V., Munich, in conjunction with a Con-
tractual Trust Arrangement (CTA) (funded plan). Funded
plans also exist in the UK, the USA, Switzerland, Belgium
and Japan. In the meantime, most of the defined benefit
plans have been closed to new entrants.
The following mortality tables are applied in countries, in
which the BMW Group has significant defined benefit plans:
Germany
United Kingdom
In addition, the career trend component, which is plan-de-
pendent and lies within a range of 0.25% to 0.50%, is now
part of the measurement of pension obligations in Germany
(2020: pension entitlement trend of 2.0%).
189
BMW Group Report 2021
32 Pension provisions
Financial Statements
21.6
Weighted duration of all pension obligations in years
0.55
1.83
1.19
2.27
1.88
Total financial liabilities
103,463
17.5
106,376
2.10
1.33
2.36
2.19
Proportion of total capital
58.2%
63.6%
Pension level trend
← = Q
Other Information
Remuneration Report
1,903
Unrealised interest income
22,510
Net investment in finance leases without
loss allowances
45
42
due later than five years
503
604
due between four and five years
3,395
4,080
due between three and four years
4,770
5,158
Loss allowances
351
20,948
1,806
BMW Group Report 2021
186
20,693
22,159
Net investment in finance leases
9,110
8,941
due between two and three years
1,216
10,326
10,243
Other assets
Collateral assets comprise mainly customary collateral
(banking deposits) arising on the sale of asset-backed
financing instruments.
thereof non-current
thereof current
27 Income tax assets
Income tax assets totalling € 1,529 million (2020: € 606 mil-
lion) include claims amounting to € 19 million (2020:
€ 43 million), which are expected to be settled after more
than one year. Claims may be settled earlier than this
depending on the timing of the underlying proceedings. The
increase in income tax assets was mainly attributable to the
exercise of a tax option by the BMW Group's US companies.
255
1,302
2,729
3
1,187
-46
-29
-13
- 82
- 13
The most significant of the BMW Group's pension plans are
described below.
Germany
-7
Both employer- and employee-funded benefit plans exist in
Germany. Benefits paid in conjunction with these plans
comprise old-age retirement pensions as well as invalidity
and surviving dependants' benefits. The level of ongoing
pension payments is adjusted in accordance with §16 of the
Company Pensions Act (Betriebsrentengesetz).
In the case of defined benefit plans involving the payment of
a pension, the amount of benefits to be paid is determined
by multiplying a fixed amount by the number of years of ser-
vice.
The assets of the German pension plans are invested by
BMW Trust e. V., Munich, in accordance with a CTA. The rep-
resentative bodies of this entity are the Board of Directors
and the Members' General Meeting. BMW Trust e. V., Munich,
currently has seven members and three members of the
Board of Directors elected by the Members' General Meet-
ing. The Board of Directors is responsible for investments,
drawing up and deciding on investment guidelines as well as
monitoring compliance with those guidelines. The members
of the association can be employees, employee representa-
tives, senior executives and members of the Board of Man-
agement of BMW AG. An ordinary Members' General Meet-
ing takes place once every calendar year, and deals with a
range of matters, including receiving and approving the
association's annual report, ratifying the activities of the
Board of Directors and adopting changes to the associa-
tion's statutes.
United Kingdom
Defined benefit plans exist in the United Kingdom which are
closed for all plan participants. Vested benefits remain in
place. New benefits are covered by contributions made to a
defined contribution plan.
The defined benefit pension plans are administered by BMW
Pension Trustees Limited, Farnborough, and BMW (UK)
Trustees Limited, Farnborough, both trustee companies
which act independently of the BMW Group. BMW (UK) Trus-
tees Limited, Farnborough, is represented by ten trustees
and BMW Pension Trustees Limited, Farnborough, by five
trustees. A minimum of one third of the trustees must be
elected by plan participants. The trustees represent the
interests of plan participants and decide on investment
strategies. Funding contributions to the funds are deter-
mined in agreement with the BMW Group.
190
The defined benefit plans have been closed to new entrants
since 2014. Defined contribution plans with a minimum rate
of return, comprising employer- and employee-funded com-
ponents, continue to exist. The fact that the plan involves a
minimum rate of return means that the defined contribution
entitlements are classified in accordance with IAS 19 as
defined benefit plans. In the financial year 2021, employees
in the defined benefit plan were given the option to switch to
the defined contribution plan.
To Our Stakeholders
3,693
254
3
The BMW Group's objectives with regard to capital manage-
ment are to safeguard over the long-term the Group's ability
to continue as a going concern and to provide an adequate
return to shareholders.
940
3,084
60
355
165
1,247
241
3,680
thereof pension provisions
thereof assets
947
3,084
106
355
194
1,165
To Our Stakeholders
Combined Management Report
Corporate Governance
72
47
2020
2021
Balance at 1 January
Allocated
in € million
Impairment allowances on trade receivables in accordance
with IFRS 9 developed as follows:
At 31 December 2021 work in progress included unfinished
vehicles still held in inventories due to production programme
changes necessitated by semiconductor component short-
ages.
At 31 December 2021, the carrying amounts of inventories
expected to be realised after more than twelve months
amount to € 405 million (2020: € 359 million).
The expense recorded in conjunction with inventories during
the financial year 2021 amounted € 54,484 million (2020:
€ 48,128 million).
Out of the total amount recognised for inventories at
31 December 2021, inventories measured at net realisable
value amounted to € 1,457 million (2020: € 899 million).
Write-downs to net realisable value in the financial year 2021
amounted to € 41 million (2020: € 59 million), while rever-
sals of write-downs amounted to € 5 million (2020: € 2 mil-
lion).
14,896
15,928
503
389
8
16
-20
- 36
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
187
In the case of trade receivables, collateral is generally held in
the form of vehicle documents and bank guarantees so that
the risk of bad debt loss is very limited. Expenses for impair-
ment losses and income from the reversal of impairment
losses is not significant for the BMW Group and is therefore
not reported separately in the income statement.
Advance payments to suppliers
Inventories
Reversed
32
-4
1
Exchange rate impact and other changes
Balance at 31 December
-1
-4
Utilised
47
2,298
2,261
Net carrying amount
9,683
Finished goods and goods for resale
31.12.2020
31.12.2021
in € million
31.12.2020
31.12.2021
10,542
in € million
30 Trade receivables
Financial Statements
Inventories comprise the following:
29 Inventories
← = Q
Other Information
Remuneration Report
Trade receivables comprise the following:
Group Financial Statements
Notes to the Group
Gross carrying amount
2,345
818
404
services business
Vehicles held for sale in the financial
-23
-14
Allowances for impairment of stage 3
2,293
1,660
Raw materials and supplies
-24
-18
Allowances for impairment of stage 2 -
simplified approach
1,373
3,175
Work in progress, unbilled contracts
2,277
3,770
1,214
10
10,809
Current financial liabilities, provisions and liabilities
13
16
113
84
87
1,546
2,027
Non-current financial liabilities, provisions and liabilities
244
209
1,226
897
1,214
1,090
7,388
11,176
17
19
341
444
24
2
5,137
8,493
55
8,217
213
373
111
897
1,214
1,090
7,388
11,176
Carrying amount
Eliminations
Group's interest in net assets
Net assets
55
127
486
297
49
87
12,836
Provisions and liabilities
299
336
1,712
1,194
-81
1,177
17,151
24,012
Assets
RECONCILIATION OF AGGREGATED FINANCIAL INFORMATION
42
9,763
767
528
24
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
182
-26
-26
-26
2020
181
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Other Information
← = Q
THERE
Together with AUDI AG, Mercedes-Benz Group AG and other
companies, the BMW Group holds shares in THERE. HERE
International B.V. (HERE) is an associated company of
THERE. HERE's digital maps are laying the foundations for
the next generation of mobility and location-based services,
providing the basis for new assistance systems and, ulti-
mately, fully automated driving.
Solid Power
In May 2021, the BMW Group, together with the Ford Motor
Company and Volta Energy Technologies, participated in an
investment round relating to Solid Power, an industry-lead-
ing producer of solid-state batteries for electric vehicles. In
this context, some existing joint development partnerships
with Solid Power have also been expanded with a view to
securing the supply of solid-state batteries for future gener-
ations of electric vehicles. The investment meets the criteria
of an associated company and is accounted for using the
equity method.
in € million
Disclosures relating to the Income Statement
Profit/loss after tax
thereof from continuing operations
thereof from discontinued operations
Other comprehensive income
Total comprehensive income
2021
Remuneration Report
1,226
Corporate Governance
Other Information
2
9,859
15,062
244
287
945
666
1,190
1,175
7,292
8,950
31.12.2020
31.12.2020 31.12.2021
Remuneration Report
31.12.2021
31.12.2020 31.12.2021
31.12.2021
Equity
thereof cash and cash equivalents
Current assets
Non-current assets
DISCLOSURES RELATING TO THE BALANCE SHEET
in € million
YOUR NOW
THERE
BMW Brilliance
Financial information relating to equity accounted invest-
ments is summarised in the following tables (from a 100%
perspective):
← = Q
31.12.2020
209
IONITY
5,588
5
38
4
9
80
185
-43
-39
- 693
- 309
-1
-1
3,174
2
4,457
26
127
263
707
729
8
30
234
248
23,913
28,001
2020
2021
19
2020
3
1
199
-
-37
-35
-701
-536
206
- 108
2,560
3,596
-37
-35
- 749
2
-337
-108
169
-17
244
-48
2,560
3,596
- 8
-6
6
8
822
1,150
206
2021
174
2021
Revenues
DISCLOSURES RELATING TO THE INCOME STATEMENT
in € million
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
298
335
424
Scheduled depreciation
591
- 1,283
- 1,084
4,305
2,610
298
335
424
591
42
49
183
2020
BMW Group Report 2021
49
Profit/loss before financial result
42
Interest expense
2021
2020
Interest income
IONITY
YOUR NOW
THERE
BMW Brilliance
* Figure includes operating leases
87,417
Receivables from sales financing
20,693
22,159
Finance lease receivables
63,584
84,277
65,258
Profit/loss after tax
thereof from continuing operations
thereof from discontinued operations
3,694
Total comprehensive income
Group dividend income
Other comprehensive income
25 Receivables from sales financing
Receivables from sales financing comprise the following:
in € million
31.12.2021 31.12.2020
Credit financing for retail customers and
dealerships*
Income taxes
Remuneration Report
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Other Information
The Supervisory Board performed the duties incumbent upon it with the utmost dili-
gence in the financial year 2021.
Report of the Supervisory Board
Focus of Supervisory Board activities during the past financial year
In its regular reports on the BMW Group's position, the Board of Management kept
us well informed regarding current developments and performance, including an
in-depth presentation of current sales trends based on figures analysed by market,
model and drive system for both the BMW Group and its competitors, with a sharp fo-
cus on electrified models and developments on the Chinese market. The reports also
contained regular updates on the performance and risk profile of the Financial Ser-
vices segment as well as the development of key performance indicators and liquidity
for the BMW Group as a whole, highlighting deviations from the original forecast and
presenting a range of scenarios for future potential developments. Updates on the
current status of semiconductor supply issues were also provided at every meeting.
Based on in-depth reports presented by the Board of Management, we continuously
and diligently monitored the quality of management in the BMW Group and advised
the Board of Management on matters relating to the strategic development and
leadership of the BMW Group. We focused in particular on the technological trans-
formation of the BMW Group's drive system technology. At each of its five meetings
(including two two-day meetings), the Supervisory Board held detailed discussions
with the Board of Management on the BMW Group's current position. The Board of
Management also kept the Supervisory Board informed of any matters of significance
outside the framework of formal meetings whenever necessary. I also discussed key
current matters personally with the Chairman of the Board of Management between
meetings on an ongoing basis, as did the Chairman of the Audit Committee with the
Board of Management member responsible for Finance.
Within the Supervisory Board and its committees, dialogues were always conduct-
ed in an open and constructive spirit, both internally and together with members of
the Board of Management. Members of the Supervisory Board and its committees
had adequate opportunity to prepare in advance for the topics to be discussed at
meetings with the aid of well-documented information provided to them. Moreover,
shareholder representatives and employee representatives generally prepared for
meetings in separate preliminary discussions.
BMW Group Report 2021
← = Q
13
To Our Stakeholders
Norbert Reithofer
The monitoring of corporate strategy remained high on the Supervisory Board's
agenda. The Board of Management provided a comprehensive account of its
strategy with a particular focus on sustainability, including detailed key objectives,
regionally differentiated approaches and specific strategies for each of the Group's
divisions. It also briefed us on the state of progress in terms of electrification, digital-
isation, sustainability and circularity and explained the customer-centric, future-ori-
ented strategy adopted for the BMW brand. Against the backdrop of stricter carbon
emissions regulations across all major markets, the Board of Management provided
us with details of the BMW Group's ambitious decarbonisation targets up to the
year 2030. The latest aspects of vehicle digitalisation, ranging from digital operating
systems and driver assistance technologies to personalised digital experiences, were
also thoroughly explained to us in a presentation, which also focused on differing
customer expectations in various markets as well as the importance of digital fea-
tures as a key purchasing criterion, particularly in the strategically important market
of China. We also held a detailed discussion on the technological challenges posed
for vehicle, environment and drivers when developing automated driving beyond Lev-
el 3. A Supervisory Board member with in-depth expertise in this field provided us
with additional insight into the future of automated driving as well as the importance
of agile software integration in BMW Group vehicles. At each meeting, the Board of
Management reported on its strategy-related work as well as on the current status of
implementation.
6 Figures from 2017 and 2018 are audited with limited assurance.
12
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Chairman of the
Supervisory Board
Corporate Governance
Other Information
← = Q
Report of the Supervisory Board
REPORT OF THE
SUPERVISORY BOARD
DEAR SHAREHOLDERS,
The year 2021 was a particularly challenging one for the BMW Group, with semicon-
ductor supply issues and the ongoing coronavirus pandemic making the business
environment more volatile and calling for even greater flexibility from company and
workforce alike. However, the prudent leadership of the Board of Management and
the tremendous hard work of our employees helped make 2021 a highly successful
financial year for the BMW Group. With a new record of over 2.5 million BMW brand
vehicles delivered, we are now the leading manufacturer in the premium segment
worldwide. With great resolve, the Board of Management continued to develop the
key strategies that will shape the future of the BMW Group and create the ideal
conditions for an attractive product portfolio precisely tailored to meet the needs
of our customers as we move forward. The fact that we are on the right track with
our strategy was amply borne out by the enthusiastic media response to the BMW i
Vision Circular at the IAA Mobility in Munich and the presentation of the BMW iX and
BMW 14 models. Even in these uncertain times we therefore look to 2022 with confi-
dence and will remain firmly focused on our mission of moving people with products
that evoke emotions.
Remuneration Report
It also kept us well informed about current topics of significance, including the
establishing of QUATAC, a consortium promoting the use of quantum computing in
industrial settings, the successful presentation of the BMW Group at the IAA Mobility
in Munich, the highly encouraging results of the employee survey, the BMW Group's
participation in the start-up company Solid Power, which specialises in solid-state
battery cells, and the expansion of the IONITY network for premium charging sta-
tions using 100% green power.
BMW Group Report 2021
14
The new remuneration system, which gives the Supervisory Board greater influence
on corporate strategy implementation was also the focus of one-on-one discussions
with investor representatives ahead of the Annual General Meeting 2021. Other
topics discussed on these occasions included corporate-governance-related issues,
such as succession planning for future appointments to the Supervisory Board.
The Supervisory Board exhaustively examined the long-term business plan for the
period up to 2027, the framework for which and the ambitious long-term targets con-
tained therein were presented by the Board of Management. Despite the prevailing
volatile and uncertain conditions, the Board of Management reaffirmed the key target
of achieving continuous growth, with a clear focus on the Group's planned sales of
all-electric models. The long-term business plan also included financial planning
and various potential scenarios, each involving their own opportunities and risks.
Following this thorough examination, the Supervisory Board approved the long-term
business plan for the BMW Group.
In December, the Board of Management presented the budget for the financial year
2022, including HR planning. After detailed deliberations with the Board of Manage-
ment on this subject, the Supervisory Board also gave its approval to this document.
We reviewed our contribution to ensuring good corporate governance within the
BMW Group and implemented changes concerning individual aspects. For example,
in order to ensure compliance with the Act on Strengthening Financial Market Integ-
rity, a number of changes were made to the Supervisory Board's rules of procedure,
a copy of which is published on the BMW website. Based on a self-assessment, we
concluded that the composition of the Supervisory Board at 31 December 2021 was
in line with the targets stipulated in the diversity concept, the competency profile and
other composition targets. An overview showing each individual Supervisory Board
member's areas of expertise is provided in the Statement of Corporate Governance
on the BMW Group website.
In December, the Board of Management and the Supervisory Board issued their Dec-
laration of Compliance with the German Corporate Governance Code. We will comply
with the recommendations of the Code as amended on 16 December 2019, again
without exception.
The members of the Supervisory Board jointly attended various training events in
2021. In July, for instance, we took the opportunity to familiarise ourselves thoroughly
with battery cell technology. After an introductory presentation by the Board of Man-
agement covering various related topics, we visited the BMW Group Battery Cell Com-
petence Centre in Munich, where we had the opportunity to listen to an internationally
renowned researcher giving a talk on lithium-ion batteries, followed by a discussion of
the future of battery cell technology. In the newly constructed part of the Research and
Innovation Centre in Munich, we were given a guided tour to gain an insight into the
various new working environments. Partly with the Wirecard case in mind, coopera-
tion between supervisory boards, audit committees and auditors was the subject of a
workshop conducted by representatives of the BMW Group's auditors PwC.
The Board of Management and the Supervisory Board also visited the BMW and
MINI Driving Academy in Maisach together, in order to take an in-depth look at how
the Group's product portfolio can be best aligned to meet differing customer needs.
The members of the Supervisory Board were given the opportunity to test-drive the
full range of vehicle types, comprising all-electric, plug-in hybrid and conventionally
powered vehicles as well as the BMW iX5 Hydrogen, which is powered by hydrogen
fuel cell technology. A particular highlight was the unveiling of the new BMW 7 Series,
the only model in its segment to offer customers a choice between an internal com-
bustion engine and an all-electric drive system in the form of the BMW i7. Apart from
BMW, MINI and Rolls-Royce brand vehicles and a joint venture product, we also took
test drives in various competitor vehicles. Design presentations covering the BMW,
MINI, Rolls-Royce and BMW Motorrad brands as well as the BMW i Vision Circular
allowed us to take a fascinating look into the future.
New members of the Supervisory Board were given the opportunity to participate in
an onboarding programme comprising several modules, during which senior execu-
tives provided useful insights into key business areas and planning processes used
at the BMW Group as well as on key topics currently relevant for Supervisory Board
work.
16
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Report of the Supervisory Board
Throughout the entire year, personal conversations with members of the Supervisory
Board enabled me to gather feedback concerning the work of the Supervisory Board.
At the end of 2021, we also assessed the effectiveness of our work at both Supervis-
ory Board and committee level by means of a questionnaire and concluded that there
was a high level of satisfaction with the work of the Supervisory Board. The feedback
we received on the organisation of our meetings as well as the topics covered in
meetings, training sessions and onboarding events was unanimously favourable. The
constructive and trusting cooperation prevailing both within the Supervisory Board
itself and in its work with the Board of Management was also commended. Proposals
put forward for improving individual aspects of Supervisory Board work and dealing
with certain topics in greater depth will be followed up in the coming financial year.
The Supervisory Board is careful to avoid potential conflicts of interest in its delib-
erations and decisions. Therefore, as a precautionary measure, I did not take part in
the Supervisory Board's deliberations and resolution and the preparation of the Audit
Committee's recommendation to the Supervisory Board on whether claims should be
asserted against former members of the Board of Management in connection with
the EU Commission's antitrust proceedings against German automakers. I left the
room whenever these matters came up for discussion. No other potential conflicts of
interest were identified or reported.
Description of Presiding Board activities and committee work
The Supervisory Board has established a Presiding Board and four committees. In
our capacity as chairmen, the Chairman of the Audit Committee, Dr. Bock, and myself
reported in detail on the work of the Presiding Committee and the committees at each
of the subsequent Supervisory Board meetings. You can read more about the duties,
the composition and the working methods of the Presiding Board and various other
Supervisory Board committees in the Statement of Corporate Governance on the
BMW website.
The Audit Committee held five meetings and three conference calls during the year
under report.
the corporate strategy. Detailed information on Board of Management remuneration
is provided in the Remuneration Report.
On the basis of a thorough examination, we considered the impact of changes in
legislation and regulations on the BMW Group, in particular the Act on Corporate
Due Diligence in Supply Chains, the Act on Strengthening Financial Market Integrity
(FISG) and the new European exhaust emissions standard (Euro 7).
Report of the Supervisory Board
Other Information
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Report of the Supervisory Board
We also spent considerable time deliberating on the antitrust proceedings instigated
by the EU Commission in connection with the former working groups of several Ger-
man automobile manufacturers. In this context, we consulted with external attorneys
and an antitrust advisor engaged directly by the Supervisory Board. We were kept
well informed about the latest status of the proceedings at all times. In May 2021, af-
ter the EU Commission significantly scaled down its charges in terms of content and
timing, the BMW Group was able to reverse approximately € 1 billion of the € 1.4 bil-
lion provision recognised in 2019. After the proceedings were concluded in July 2021
with the payment of a fine amounting to around € 373 million, the Supervisory Board
carefully considered the question of potential personal responsibility on the part
of former Board of Management members and any duty of the Supervisory Board
to act. The Supervisory Board also obtained advice on this issue from an attorney,
whose written findings were also explained to us personally at the relevant meeting.
Based on this report and taking into account the supplementary explanations pro-
vided by the antitrust advisor, also regarding the legal particularities of the antitrust
proceedings, the Supervisory Board decided - after thorough discussion and on the
recommendation of the Audit Committee – not to assert any claims against former
members of the Board of Management of BMW AG in this context.
The Supervisory Board also deliberated at length on key issues arising within the
Board of Management's various key areas of responsibility. We were given an insight
into working methods and working environments at the BMW Group currently being
developed in conjunction with the "Connected Works" project.
The Board of Management familiarised us with the NEUE KLASSE, which will herald
the third phase of the BMW Group's transformation to electric mobility from 2025
onwards and set new standards in terms of digitalisation, electrification and sus-
tainability in vehicles. We took a detailed look at the key features of the New Cluster
Vehicle Architecture (NCVA), which is specifically geared towards all-electric vehicles.
Furthermore, the Board of Management elucidated potential applications of artificial
intelligence (AI) in production planning processes. The Financial Services segment
was also included in our deliberations, particularly in light of positive developments in
terms of its risk profile and the pre-owned vehicle market. Key topics relating to the
Group's corporate finance system were also discussed. Regarding sales markets we
focused in particular on Asia as a whole.
The Board of Management reported on the current status of the diversity concepts
developed by the Group and the extent to which targets have been achieved regard-
ing the proportion of women employed at various levels.
We also addressed the topic of compliance within the BMW Group in depth, including
the current status and ongoing developments. The Chief Compliance Officer pre-
sented the annual report on compliance, including compliance targets and a number
of other selected topics, focusing in particular on measures and processes aimed at
improving the Group's compliance management system on a continuous basis.
In light of the coronavirus pandemic and the accompanying restrictions on events
involving large numbers of people, in March 2021 we agreed on a plan to hold the
Annual General Meeting 2021 on a virtual basis. For the same reason, in December
2021, we approved the plan to hold the Annual General Meeting 2022 again in a
virtual format.
Strategic cooperations were again a key topic at Supervisory Board meetings in 2021,
including in particular the positioning of the BMW Group in the vital Chinese market
going forward and the future structure of the BMW Brilliance Automotive joint ven-
ture. We also deliberated on the intended acquisition of shares in Brilliance Automo-
tive Manufacturing. The Board of Management updated us regularly on the strategic
positioning and status at the various YOUR NOW companies.
The new remuneration system resolved by the Supervisory Board for the members
of the Board of Management during the previous financial year came into effect on
1 January 2021 and was approved by shareholders at the Annual General Meeting
2021 with a majority of 91.6% of valid votes. The Supervisory Board reviewed both
the targeted and the expected level of Board of Management remuneration for the
financial year 2021 in light of the BMW Group's business performance and also the
multi-year remuneration trend of its senior executives and employees in Germany.
Based on a comparative study conducted by an external remuneration consultant
and subsequent oral advice, we concluded that the remuneration of Board of Man-
agement members is appropriate. In December 2021, following thorough preparation
by the Personnel Committee, we adopted the variable remuneration component tar-
gets applicable to Board of Management members for the financial year 2022, taking
into account the budget for the financial year 2022, the long-term business plan and
15
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
← = Q
The Presiding Board held four meetings during the financial year 2021. Together
with the Board of Management and senior heads of department, we prepared the
detailed agenda of Supervisory Board meetings (unless a committee was responsible
for doing so) and made suggestions for topics to be reported on at Supervisory Board
meetings.
2,123,947
1 Training for BMW Group employees and temporary staff at consolidated companies worldwide. Data are collated on the basis of direct inputs of participants and, to a small extent, by extrapolation. Data also include e-learning formats.
² Delivery figures presented for 2020 and 2021 are not directly comparable to those of previous years. See sales figures for deliveries in the section Comparison of Forecasts with Actual Outcomes for further information.
3 Deliveries including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2017: 385,705 units, 2018: 455,581 units, 2019: 538,612 units, 2020: 602,247 units, 2021: 651,236 units).
"Production volume including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2017: 396,749 units, 2018: 491,872 units, 2019: 536,509 units, 2020: 602,935 units, 2021: 700,777 units).
2018
2019
2020
2021
Change in %
349
373
370
2017
279
39.4
2,089,854
371,729
3,438
2,465,021
2,117,854
364,101
4,194
2,486,149
2,184,939
347,465
5,100
2,537,504
2,028,841
292,582
3,756
2,325,179
2,213,790
9.1
389
BMW4
Production by brand
Total 3
The meetings held in February and March 2021 focused on preparing the Superviso-
ry Board meeting at which the financial statements for the financial year 2020 were
discussed and examined. After obtaining the auditor's Declaration of Independence,
the Audit Committee recommended to the Supervisory Board that Pricewaterhouse-
Coopers GmbH Wirtschaftsprüfungsgesellschaft ("PwC") be proposed for election as
auditor at the 2021 Annual General Meeting. There were no indications of conflicts of
interest, grounds for exclusion or lack of independence on the part of the auditor.
11
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
BMW Group in Figures
OTHER NON-FINANCIAL PERFORMANCE FIGURES
GROUP
Spending on employee training and development (in million €)1
AUTOMOTIVE SEGMENT
Deliveries by brand²
BMW3
MINI
Rolls-Royce
3.3
5,586
48.7
2,521,514
2.10
- 0.9
MOTORCYCLES SEGMENT
Production volume
BMW
185,682
162,687
187,116
168,104
187,500
11.5
FINANCIAL SERVICES SEGMENT
New contracts with retail customer
1,828,604
1,908,640
2,003,782
1,845,271
1,956,514
6.0
2.12
5 Efficiency ratio calculated on the basis of energy consumption, adjusted for CHP losses, of vehicle production (BMW Group manufacturing sites incl. joint venture BMW Brilliance Automotive Ltd., excluding motorcycles and contract manufacturers) divided by the total number of vehicles produced (BMW Group
manufacturing sites incl. joint venture BMW Brilliance Automotive Ltd., excluding motorcycles and contract manufacturing).
2.04
2.17
8.4
2,168,496
MINI
Rolls-Royce
378,486
3,308
Total 4
2,505,741
368,685
4,353
2,541,534
2,205,841
352,729
5,455
2,564,025
1,980,740
271,121
3,776
2,255,637
2,166,644
9.4
288,713
6.5
5,912
56.6
2,461,269
9.1
Energy consumption per vehicle produced (in MWh] 5,6
2.12
After thorough deliberation, the Audit Committee concluded that PwC's fee proposal
for the audit of the Company and Group Financial Statements and the integrated
BMW Group Report 2021 as well as for the review of the Half-Year Report 2021 was
appropriate in light of the growing scope of tasks and issued the corresponding
contracts to PwC following their election at the Annual General Meeting in May 2021.
The Audit Committee also specified supplementary audit focus areas and approved
the scope of non-audit services to be provided by PwC and subsequently received
regular reports on the relevant matters. The Audit Committee discussed the quality of
the audit in detail on several occasions at its meetings. In particular, it requested the
relevant department to report on the Group's perception of the audits of the financial
statements for the financial year 2020 as well as on the results of the survey con-
ducted within the Group in this context. Based on this report, the auditor's description
of the quality assurance measures undertaken and the Audit Committee's own expe-
rience with the auditor, the audit was found to be of good quality.
302,138
17
3
100
Simone Menne¹
1
1
100
Dr. Dominique Mohabeer
5
5
100
Brigitte Rödig
4
3
75
Anke Schäferkordt
5
5
100
Prof. Dr. Christoph Schmidt²
4
4
3
100
Willibald Löw4
1
5
5
100
Johann Horn³
3
3
100
Prof. Dr. Reinhard Hüttl¹
1
1
100
Susanne Klatten
7
7
100
Jens Köhler5
2
2
100
Horst Lischka¹
1
100
Dr. Vishal Sikka
5
5
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Report of the Supervisory Board
Based on a thorough examination conducted by the Audit Committee and the Super-
visory Board, we concurred with the results of the external audit. In accordance with
the final result of this examination, no objections were raised. The Group and Com-
pany Financial Statements of Bayerische Motoren Werke Aktiengesellschaft for the
financial year 2021 drawn by the Board of Management were subsequently approved
at our meeting held on 10 March 2022. The Company Financial Statements for the
year ended 31 December 2021 have therefore been adopted.
We also examined the proposal of the Board of Management to use the unappro-
priated profit to pay a dividend of € 5.80 per share of common stock and € 5.82 per
share of non-voting preferred stock, in each case on shares entitled to receive a divi-
dend. We consider the proposal appropriate and have therefore given it our approval.
For the financial year 2021, the Supervisory Board and the Board of Management
have prepared the Remuneration Report for the first time in accordance with §162
AktG (ARUG II / Act Implementing the Second EU Shareholder Rights Directive). At
the request of the Audit Committee, PwC reviewed the content of the Remuneration
Report, reported to both the Audit Committee and the Supervisory Board on the
results of the review, and confirmed that the Remuneration Report complies in all
material respects with the financial reporting provisions contained in §162 AktG.
The Audit Committee and the Supervisory Board also considered at length the com-
bined Non-financial (Group) Statement for the year ended 31 December 2021, which
was drawn up by the Board of Management as part of the integrated BMW Group
Report. Following an in-depth explanation of the statement by the Board of Man-
agement, representatives of the external auditor presented key findings of their audit
and answered additional questions posed by the members of the Supervisory Board.
Based on the "limited assurance" audit performed by PwC on those parts of the
Management Report that were not subject to a reasonable assurance engagement,
PWC issued an unqualified opinion, signed for the sixth time by Andreas Fell and for
the second time by Nicolette Behncke. The Supervisory Board acknowledged and
approved the combined Non-financial (Group) Statement drawn up by the Board of
Management.
Expression of appreciation by the Supervisory Board
We would like to express our thanks and appreciation to the members of the Board
of Management and all employees of the BMW Group worldwide for their outstand-
ing performance in the financial year 2021. With their unbending commitment, even
under adverse conditions, and a fine collective performance, they have taken the
BMW Group to the top of the global premium segment over the past 12-month period
and additionally enhanced the Group's profile as a guarantor of first-class individual
and sustainable mobility.
We are confident that the Board of Management and the Group's entire workforce,
with their courage and confidence, will write the next chapter of the BMW Group's
unique success story in 2022.
Munich, March 2022
On behalf of the Supervisory Board
Yours
ла
Norbert Reithofer
Chairman of the Supervisory Board
The Board of Management presented the combined Non-financial Statement of
BMW AG and the BMW Group for the financial year 2020 to us. Subsequently, the
representatives of PwC reported to us orally on the results of their "limited assur-
ance" audit. We have engaged PwC again to conduct a "limited assurance" audit of
the Non-financial (Group) Statement for the financial year 2021, to the extent that
it relates to parts of the management report that are not subject to a “reasonable
assurance" audit. Going beyond the formal review required by law, the Audit Commit-
tee also engaged PwC to perform additional review procedures on the content of the
Remuneration Report for the financial year 2021.
To Our Stakeholders
BMW Group Report 2021
20
20
100
Dr. Thomas Wittig
5
5
100
5
5
100
Werner Zierer
1 Member of the Supervisory Board until 12 May 2021.
Dr.-Ing. Heinrich Hiesinger
2 Member of the Supervisory Board since 12 May 2021.
4 Member of the Supervisory Board until 16 July 2021.
6 Member of the Supervisory Board until 1 October 2021.
7 Member of the Supervisory Board since 8 October 2021.
8 Member of the Supervisory Board until 31 December 2021.
(Wirtschaftsprüfer) as independent auditor responsible for the performance of the
engagement.
At its meeting held on 24 February 2022, the Audit Committee initially considered in
detail the preliminary version of the Company and Group Financial Statements, the
Combined Management Report (including the Combined Non-financial (Group) State-
ment), the Statement of Corporate Governance, the draft versions of the auditor's
reports and the Board of Management's proposal for the appropriation of profit.
Immediately after authorising their issue, the Board of Management submitted the
Company and Group Financial Statements for the financial year 2021 and the Com-
bined Management Report (including the Combined Non-financial (Group) State-
ment), the Statement of Corporate Governance and the proposal for the appropri-
ation of profit to the Supervisory Board. The auditor's long-form audit reports were
also made available to the Supervisory Board in a prompt manner.
At its meeting on 9 March 2022, the Audit Committee diligently examined and de-
liberated on these documents before they were considered in detail at the plenary
session of the Supervisory Board on 10 March 2022.
At the two respective meetings, the Board of Management provided the Audit Com-
mittee and the Supervisory Board with detailed explanations of the financial reports
presented. The representatives of the external auditor present at the meetings
reported on the main findings of their audit and answered additional questions put
by members of the Audit Committee and the Supervisory Board. The focus of these
meetings was on key audit matters as well as the related audit procedures, which
were discussed at length by the Audit Committee and the Supervisory Board.
The representatives of the external auditor confirmed that the risk management
system established by the Board of Management is capable of identifying at an early
stage any developments that might threaten the Company's going-concern status.
They also confirmed that that no material weaknesses in the internal control system
and risk management system were identified with regard to the financial reporting
process. Similarly, in the course of their audit work they did not identify any facts
inconsistent with the contents of the Declaration of Compliance pursuant to § 161 of
the German Stock Corporation Act (AktG) issued by the Board of Management and
the Supervisory Board.
3 Member of the Supervisory Board since 14 May 2021.
100
5 Member of the Supervisory Board since 3 August 2021.
4
Corporate Governance
Remuneration Report
Other Information
← = Q
Report of the Supervisory Board
The Supervisory Board appointed Dr.-Ing. Joachim Post as his successor with effect
from 1 January 2022. Dr. Post has worked for the BMW Group since 2002, most
recently as head of the "Product Line Midsize Class BMW" unit. He was previously
the manager responsible for the BMW Group's vehicle strategy and, as the head of
various BMW model lines, was responsible for promoting the electrification of the
vehicle fleet.
The Supervisory Board extended the mandates of four Board of Management mem-
bers during the year under report.
Composition of the Supervisory Board, the Presiding Board and the Supervisory
Board's committees
The shareholder representatives Dr. Karl-Ludwig Kley, Prof. Reinhard Hüttl and
Simone Menne left the Supervisory Board with effect from the end of the Annual
General Meeting 2021. We would like to thank them for their constructive input and
faithful cooperation during their periods of office, which stretched over many years in
some cases. Our special thanks go to Dr. Kley: as a member of the Presiding Board
and various committees, but especially as Chairman of the Audit Committee, he drew
on his many years of broad business experience to make valuable contributions and
provided invaluable impetus for the BMW Group in corporate discussions.
The Annual General Meeting elected Dr. Marc Bitzer, Rachel Empey and Prof. Dr. Dr.
h.c. Christoph M. Schmidt as new members. Ms. Empey and Dr. Bitzer both have
extensive experience and expertise in capital markets and customer requirements.
Ms. Empey also has specialised knowledge in financial services and IT, Dr. Bitzer in
the fields of technologies and supply chains. Prof. Schmidt has extensive expertise in
the areas of science, sustainability and resources. With their broad range of exper-
tise, the three newly elected members complement the composition of the Supervi-
sory Board in an excellent manner.
The employee representatives Horst Lischka, Willibald Löw, Brigitte Rödig and
Verena zu Dohna left the Supervisory Board at their own request during the financial
year 2021. We wish to thank them for their constructive work and faithful cooperation
during their periods of office, in some cases stretching over many years. Our spe-
cial thanks go to Mr. Löw, who has been loyally connected with the BMW Group for
decades as an employee, Chairman of the Works Council at the Landshut site, and
member of the Supervisory Board. By court order, and to replace members of the Su-
pervisory Board for their respective remaining terms of office, Johann Horn, District
Manager of IG Metall Bavaria, was appointed in May 2021, Jens Köhler, Chairman
of the Works Council at the Leipzig site, in August 2021, Bernhard Ebner, Chairman
of the Works Council at the Landshut site, in October 2021 and Sibylle Wankel, First
Authorized Representative of IG Metall Munich, in January 2022.
Dr. Kurt Bock, member of the Supervisory Board since 2018 and Chairman of the
Audit Committee since 2020, was elected to succeed Dr. Kley as a member of the
Presiding Committee and the Personnel and Nomination Committees. An overview of
the composition of the Supervisory Board and its committees is provided both in this
report (Corporate Governance) and in the separate Statement on Corporate Governance,
which is available on the BMW Group website together with the curricula vitae of
Supervisory Board members.
Disclosure of attendance at meetings by individual members
The attendance rate at Supervisory Board meetings was around 99%, and 100% for
the meetings and conference calls held by the various committees and the Presid-
ing Board. The meetings were all held on a face-to-face basis. In individual cases,
however, members participated virtually due to the coronavirus pandemic. The table
below shows attendance by individual members:
Examination of financial statements and the profit distribution proposal
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft ("PwC") was ap-
pointed as external auditor for the financial year 2021. PwC conducted a review of the
condensed interim Group Financial Statements and the Interim Group Management
Report for the six-month period ended 30 June 2021 and presented its findings to
both the Audit Committee and the Supervisory Board in separate executive sessions.
No issues were identified that might indicate that the condensed Interim Group Fi-
nancial Statements and Interim Group Management Report had not been prepared in
accordance with the applicable provisions in all material respects.
PwC audited the Company and Group Financial Statements for the financial year
2021 authorised for issue by the Board of Management on 8 March 2022 and is-
sued an unqualified audit opinion, signed for the third consecutive financial year by
Petra Justenhoven as independent auditor (Wirtschaftsprüferin) and Andreas Fell
19
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Group Financial Statements
Combined Management Report
BMW Group Report 2021
BMW Group Report 2021
To Our Stakeholders
4
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Report of the Supervisory Board
The Quarterly Statements were presented by the Board of Management and dis-
cussed with the Audit Committee prior to their publication. Representatives of the
external auditors were present when the Half-Year Financial Report was discussed
at the beginning of August 2021. In conjunction with the implementation of the
requirements of the Act on Strengthening Financial Market Integrity, an executive
session was also held with the external auditor without the members of the Board of
Management being present.
The Audit Committee again dealt extensively with the topic of compliance within
the BMW Group during the year under report. The Chief Compliance Officer of the
BMW Group presented the annual report on compliance, including compliance targets
and a number of other selected topics, focusing in particular on measures and pro-
cesses aimed at improving the Group's compliance management system on a contin-
uous basis. The Head of Corporate Quality also reported on the subject of technical
compliance. We also received a report on the status of tax and customs compliance
management from the relevant head of department.
The Audit Committee was kept informed of major legal disputes and proceedings.
During the first two quarters of 2021, the Committee spent considerable time dealing
with the antitrust proceedings instigated by the EU Commission in connection with
the former working groups of several German automobile manufacturers, carefully
monitoring the progress of proceedings based on various inputs, including direct
reports drawn up by a lawyer appointed to represent the BMW Group. After the pro-
ceedings were concluded, with the assistance of the consultant attorney and based
on his detailed report, the Audit Committee drew up a recommendation to the Super-
visory Board on the question of whether to assert claims against former members of
the Board of Management.
The Audit Committee also received reports on the further development of the internal
control system and the main findings of the internal audits performed by Corporate
Audit, as well as details of advance audit planning. The BMW Group's risk profile and
risk management system were discussed on a number of occasions.
In its report on the audit of over-the-counter derivatives entered into by BMW AG
during the financial year 2020, the external auditor confirmed to the Audit Committee
the effectiveness of the system in place at BMW AG in complying with the regulatory
requirements of the European Market Infrastructure Regulation.
The Audit Committee concurred with the decision of the Board of Management to
raise the Company's share capital in accordance with Article 4 (5) of the Articles of
Incorporation (Authorised Capital 2019) by € 1,715,000 and issue a corresponding
number of new non-voting bearer shares of preferred stock in conjunction with the
Employee Share Programme.
At its four meetings, the Personnel Committee focused primarily on succession
planning for the Board of Management, preparing personnel-related decisions and
dealing with Board of Management remuneration issues. The Committee reviewed
the appropriateness of Board of Management remuneration for the financial years
2020 and 2021 and considered all relevant developments during that period, includ-
ing the impact of the coronavirus pandemic, when determining the corporate earn-
ings and performance factors applicable for Board of Management remuneration in
2020 and 2021. In addition, the Committee deliberated on targets for the financial
year 2022. The Personnel Committee also prepared reappointments, performed the
groundwork for the Supervisory Board to appoint a Board of Management member
responsible for the Purchasing and Supplier Network, and granted approval for one
member of the Board of Management to assume a mandate outside the Group. A
resolution to approve loans granted by and transactions concluded by BMW Bank
GmbH with members of the representative bodies of BMW AG was renewed, and
updated contracts of Board of Management members were prepared.
The Nomination Committee convened twice during the financial year 2021. Taking
into account the German Corporate Governance Code (GCGC) and the composition
requirements adopted by the Supervisory Board, the Nomination Committee ad-
dressed the issue of the composition of the Supervisory Board regarding shareholder
representatives.
The Mediation Committee, which is prescribed by law, did not need to convene
during the financial year 2021.
Dr.-Ing. Andreas Wendt, Board of Management member for the Purchasing and
Supplier Network, retired on 31 December 2021. We would like to thank Dr. Wendt for
his many years of loyal and dedicated work for BMW AG, most recently for guiding the
BMW Group successfully through the ongoing semiconductor shortage.
18
To Our Stakeholders
Corporate Governance
Composition of the Board of Management
Other Information
100
Dr. Kurt Bock
20
20
100
Christiane Benner
5
5
100
Dr. Marc Bitzer²
4
4
Verena zu Dohna³
5
5
100
Bernhard Ebner
1
Remuneration Report
1
Rachel Empey²
100
100
4
4
100
Meetings
Member of the Supervisory Board
Dr. Karl-Ludwig Kley¹
Attendance
Attendance in %
Report of the Supervisory Board
Dr.-Ing. Norbert Reithofer
23
100
Manfred Schoch
← = Q
23
21
100
Stefan Quandt
23
23
21
100
21
21
Stefan Schmid
Other provisions
* Prior year's figures adjusted.
1,603
56
-214
- 1,108
1,448
13,982
Other obligations for ongoing operational expenses
1,333
1,111
1,421
2,196
-1,334
2,083
14
352
2,582
-23
- 1,299
2,589
-40
Other obligations
3,666
41
1,219
-9
-994
3,317
7,127
3.178
- 5,621
- 1.288
19
Obligations for personnel and social expenses
1.405
- 19
2.496
1,731
6,131
- 124
- 2.354
158
-277
5.550
within one year
31.12.2020
Reversed
Utilised
- 1,800
13,954
6,748
in € million
Statutory and voluntary warranty obligations, product guarantees
Obligations for personnel and social expenses
-86
Other obligations
Other provisions
1.1.2020
Translation
differences
Additions
Reversal of
discounting
thereof due
Other obligations for ongoing operational expenses
1,798
Average life expectancy
-212
Pension entitlement trend
0.8
218
3
increase of 0.25 %
- 4.1
- 1,081
-3.6
-910
decrease of 1 year
4.1
1,078
3.6
896
decrease of 0.25 %
increase of 1 year
- 721
-2.3
- 586
decrease of 0.25 %
Pension level trend
2.9
766
2.4
610
increase of 0.25 %
17.2
4,585
-31
13.2
- 2.7
-3
-210
- 0.8
within one year
31.12.2021
Reversed
Utilised
-2,220
-54
2,714
241
6,131
Statutory and voluntary warranty obligations, product guarantees
thereof due
Reversal of
discounting
Additions
Translation
differences
1.1.2021*
in € million
Other provisions changed during the year as follows:
33 Other provisions
increase of 0.10 %
63
Career trend
-62
196
BMW Group Report 2021
6,600
To Our Stakeholders
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Statements
Combined Management Report
2,582
2,511
3.271
Other
Commercial paper
Derivative instruments
3,311
838
1,181
492
2,420
814
1,131
475
Lease liabilities
9,037
1,300
1,146
3,159
9,079
975
3,186
4,918
Liabilities to banks
16,466
22
3,709
12,735
16,702
20
3,507
13,175
Liabilities from customer deposits (banking)
4,578
581
148
1,875
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
198
Similarly, potential future cash outflows amounting to
€ 1,262 million (2020: € 1,252 million) (undiscounted) have
not been taken into account in the measurement of lease
liabilities as it is not reasonably certain that the leases will be
renewed (or not terminated). These cash outflows relate to
periods of up to 62 years (2020: up to 74 years). The decrease
in the period under report was due to a contractual adjust-
ment.
Planned future cash outflows from variable lease payments,
which are not taken into account in the measurement of
lease liabilities, are expected to amount to € 48 million
(2020: € 57 million).
106,376
14,619
52,771
38,986
103,463
12,716
49,626
41,121
Financial liabilities
1,180
399
593
517
38
1,148
1,374
1,374
18,819
550
736
75
342
1,153
533
248
550
11,956
6,863
19,362
To Our Stakeholders
BMW Group Report 2021
197
34 Income tax liabilities
Current income tax liabilities totalling € 921 million (2020:
€ 747 million) include € 44 million (2020: € 40 million) which
are expected to be settled after more than twelve months.
Liabilities may be settled earlier than this depending on the
timing of the underlying proceedings.
Other obligations for ongoing operational expenses include
in particular expected payments for bonuses and other price
deductions.
The provisions for other obligations cover numerous specific
risks and uncertain obligations, in particular for litigation and
liability risks. Further information on the reversal of the pro-
vision relating to EU Commission antitrust proceedings is
provided in note 10.
pre-retirement part-time working arrangements and
long-service awards.
Provisions for obligations for personnel and social expenses
comprise mainly obligations relating to performance-related
remuneration components, workforce measures as well as
Depending on when claims occur, it is possible that the
BMW Group may be called upon to fulfil the warranty or
guarantee obligations over the whole period of the warranty
or guarantee. Warranty provisions include amounts recog-
nised in connection with the exhaust gas recirculation cooler.
Expected reimbursement claims at 31 December 2021
amounted to € 1,112 million (2020: € 1,046 million) and are
disclosed within other assets (see note 28].
7,494
13,982
-663
- 5.549
186
7.232
-433
13.209
-43
1.361
9
- 508
-337
3,753
Combined Management Report
2,794
-94
1.288
- 1.399
- 171
1,516
1,486
1.892
1,483
Group Financial Statements
Remuneration Report
12,471
6,891
56,665
12,022
32,001
12,642
51,498
10,417
28,675
12,406
Total
than five years
Maturity later
Maturity between
one and five years
Maturity within
one year
Total
than five years
Other Information
← = Q
Notes to the Group
35 Financial liabilities
Financial liabilities of the BMW Group comprise the follow-
ing:
Financial Statements
Corporate Governance
31.12.2021
in € million
Bonds
Asset-backed financing transactions
Maturity within
one year
Maturity between
one and five years
Maturity later
31.12.2020
-13.2
244
in %
19
20
19
20
Real estate funds
2,916
3,151
7
7
624
704
2,285
2,440
thereof non-investment grade
Money market funds
thereof mixed funds (funds without a rating)
12,332
625
653
6,316
6,377
5,041
5,302
thereof investment grade
2,588
15,483 14,898
632
660
6,940
7,081
7,326
11,982
157
85
37
thereof investment grade
1,453
1,451
1
5
673
646
779
800
Debt instruments
17,726
19,226
733
806
7,373
7,580
9,620
2
194
87
Absolute return funds
Other
223
7,742
128
4
6
227
134
Total with quoted market price
10,840
I
328
Debt instruments
74
BMW Group Report 2021
192
-13
3,693
3,680
3
3,677
-22,910
-36
-36
582
- 618
26,587
-6
-6
To Our Stakeholders
639
- 84
84
- 524
-524
-524
1
1
-144
-144
- 239
- 239
- 239
- 144
2,726
Group Financial Statements
Notes to the Group
Financial Statements
-645
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
85
348
342
2,166
2,875
31.12.2021 31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020
Equity instruments
in € million
Total
Other
United Kingdom
Financial Statements
Germany
Plan assets in Germany, the UK and other countries com-
prised the following:
Depending on the cash flow profile and risk structure of the
pension obligations involved, plan assets relating to defined
benefit plans are invested in a diversified portfolio.
← = Q
Other Information
Remuneration Report
Other Information
← = Q
In conjunction with a measure aimed at modernising the
pension model in Germany, employees were given the choice
of remaining in the previous defined benefit plan or switch-
ing to the defined contribution plan. The fixed amounts to
which employees were previously entitled in the defined
benefit plan remain unchanged going forward and therefore
this is one factor which results in a plan amendment in
accordance with IAS 19. The previous pension entitlement
trend (Festbetragstrend) was converted – with the exception
of one remaining component - into a career trend. Further-
more, an employee switching to the defined contribution
plan received an entitlement deemed to be equivalent in
legal terms to their previous rights.
This gave rise to an overall positive impact of € 562 million
on past service cost, which was recognised in the income
statement, primarily in the form of reductions to cost of sales
as well as to selling and administrative expenses.
Actuarial gains arising in the financial year 2021 resulted in a
surplus of plan assets over liabilities for one of the pension
plans in the United Kingdom. However, because there is no
right of reimbursement or right to reduce future contributions
to the fund, the amount of plan assets recognised has been
limited to the amount of the obligations.
3,302
In the previous financial year, employment contract termina-
tion agreements were agreed with employees, resulting in
the persons concerned leaving the BMW Group with vested
pension benefits. Past service cost resulted mainly from dif-
fering assumptions used to calculate statutory pension enti-
tlements on the one hand and for the ongoing accounting for
active employees on the other.
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
193
-3,514
324
324
57.8
49.6
6.4
7.4
Former employees with vested benefits
29.9
32.2
42.2
50.4
27.4
30.6
Pensioners
62.9
59.9
7.9
-
62.0
Current employees
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
in %
Other
United Kingdom
Germany
The defined benefit obligation relates to current employees,
pensioners and former employees with vested benefits as
follows:
The BMW Group is exposed to risks arising both from
defined benefit plans and defined contribution plans with a
minimum return guarantee. The discount rates used to cal-
culate pension obligations are subject to market fluctuations
and therefore influence the level of the obligations. Further-
more, changes in other actuarial parameters, such as
expected rates of inflation, also have an impact on pension
obligations. In order to reduce currency exposures, a sub-
stantial portion of plan assets is either invested in the same
currency as the underlying plan or hedged by means of cur-
rency derivatives. As part of the internal reporting proce-
dures and for internal management purposes, financial risks
relating to the pension plans are reported using a value-at-
risk approach by reference to the pension deficit. The invest-
ment strategy is also subject to regular review together with
external consultants, with the aim of ensuring that invest-
ments are structured to match the timing of pension pay-
ments and the expected development of pension obliga-
tions. In this way, fluctuations in pension funding shortfalls
are reduced.
66.2
7.2
Defined benefit obligation
100.0
in € million
in %
-10.6
-2,650
increase of 0.75 %
decrease of 0.75 %
Discount rate
in € million
31.12.2020
31.12.2021
Change in defined benefit obligation
In the UK, the sensitivity analysis for the pension level trend
also takes account of restrictions due to caps and floors.
It is only possible to aggregate sensitivities to a limited
extent. Since the change in obligation follows a non-linear
pattern, estimates made on the basis of the specified sensi-
tivities are only possible with this restriction. The calculation
of sensitivities using ranges other than those specified could
result in a disproportional change in the defined benefit obli-
gation.
-
The sensitivity analysis provided below shows the extent to
which changes in individual factors – independently of each
other could influence the defined benefit obligation at the
end of the reporting period.
-
Financial Statements
← = Q
Other Information
100.0
100.0
100.0
100.0
100.0
↑
Other Information
= Q
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
195
328
Remuneration Report
Group Financial Statements
Notes to the Group
Financial Statements
643
742
645
709
Absolute return funds
159
56
1
159
55
Cash and cash equivalents
1,084
1,280
656
10
786
494
Real estate
1
5
1
5
thereof non-investment grade
1,128
1,118
673
646
455
472
thereof mixed funds (funds without a rating)
428
23
1,461
1,311
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
194
In the financial year 2021, disbursements out of the
plan assets are expected to exceed the employer's contribu-
tions to plan assets by € 225 million. Plan assets of the
BMW Group include own transferable financial instruments
amounting to € 2 million (2020: € 1 million).
22,910
25,011
870
938
9,589
9,968
12,451
14,105
Total plan assets
5,184
5,785
137
Other
1,207
820
214
116
113
Corporate Governance
1,537
Total without quoted market price
3,265
2,831
2,388
2,216
132
1,177
Corporate Governance
decrease of 0.10 %
Other Information
JPY 10,000 million
fixed
Other
0.5
6.8
CHF 600 million
fixed
3.3
3.0
10.0
fixed
1.4
4.1
GBP 1,550 million
fixed
0.0
2.0
GBP 200 million
NOK 1,000 million
0.2
fixed
CAD 800 million
31.12.2020
31.12.2021
Bonuses and sales aides
Deferred income
Contract liabilities
in € million
Other liabilities comprise the following items:
36 Other liabilities
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
200
1.4
3.3
variable
BMW International Investment B. V.
0.8
8.7
2.5
5.6
USD 1,750 million
fixed
2.7
6.1
HKD 1,759 million
fixed
0.6
5.6
JPY 13,400 million
fixed
3.4
2.6
CNY 17,000 million
fixed
0.8
6.9
EUR 22,900 million
fixed
5,955
NOK 750 million
2.3
EUR 1,500 million
fixed
3.0
6.7
USD 15,400 million
fixed
0.4
3.4
USD 2,138 million
variable
BMW US Capital, LLC
3.2
10.0
AUD 273 million
fixed
0.9
6.0
GBP 600 million
fixed
4.0
fixed
5,485
3,546
31 December 2020
thereof pension provisions
thereof assets
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Translation differences and other changes
Defined
Plan assets
24,652
-21,340
Total
3,312
488
488
337
- 303
benefit obligation
Pensions and other benefits paid
Employee contributions
Transfers to fund
2,726
Remuneration Report
191
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
in € million
1 January 2020
EXPENSE / INCOME
Current service cost
Interest expense (+)/income (-)
Past service cost
Gains (-) or losses (+) arising from settlements
REMEASUREMENTS
Gains (-) or losses (+) on plan assets, excluding amounts included in interest income
Gains (-) or losses (+) arising from changes in financial assumptions
Gains (-) or losses (+) arising from changes in demographic assumptions
Gains (-) or losses (+) arising from experience adjustments
Changes in the limitation of the net defined benefit asset to the asset ceiling
34
-54
- 54
Effect of limitation
of the net defined
benefit asset to the
asset ceiling
Other liabilities
Sundry
Social security
Other advance payments received for orders
Payables to subsidiaries
1,019
895
Deposits received
1,484
1,143
Other taxes
814
2,367
Payables to other companies in which an investment is held
3,926
3,108
Refund liabilities for future leased products
2,911
3,123
180
3,820
180
139
Net defined
benefit liability
2
3,314
488
34
- 54
-1,880
- 1,880
-1,880
As in the previous year, trade payables are due within one
year.
37 Trade payables
Grants comprise mainly public sector funds to promote
regional structures and which have been invested in the pro-
duction plants in Brazil, China, Germany, Mexico, Austria
and South Africa amongst others. The grants are partly sub-
ject to holding periods for the assets concerned of up to five
years and/or minimum employment figures or minimum
production figures. Grant income is recognised in the income
statement over the useful lives of the assets to which it
relates.
Deferred income includes down payments received on
leases with customers as well as deferred grants.
Contract liabilities relate to obligations for service and repair
work as well as telematics services and roadside assistance
agreed to be part of the sale of a vehicle (in some cases mul-
ti-component arrangements). An amount of € 3,035 million
(2020: € 2,604 million) was released from contract liabilities
in the financial year and recognised as revenues from con-
tracts with customers.
21,187
1,550
1,546
22,420
133
123
160
0.9
2,726
USD 500 million
103,347
325
- 846
3,672
724
-10
- 18
- 5,344
105,540
Changes due to
Liabilities relating to financing activities
Other (excluding interest payable)
2,188
153
1,295
740
Financial liabilities towards companies in which an investment is held
1,374
43
752
the acquisition or
in € million
Bonds
-648
-82
19,549
56,665
12
766
- 1,972
- 4,306
62,165
31.12.2020
Other changes
in fair values
of companies exchange rate factors
Changes
Changes due to
disposal
Cash inflows/
outflows
1. 1. 2020
Asset-backed financing transactions
781
550
Commercial paper
2,420
Other changes
in fair values
-787
1,647
- 6,021
56,665
of companies exchange rate factors
outflows
1.1.2021
Bonds
in € million
Changes
Changes due to
disposal
Cash inflows /
the acquisition or
Changes due to
← = Q
3.0
Liabilities related to financing activities can be reconciled as
follows:
31.12.2021
18,819
-6
18,819
331
42
-464
2,511
Lease liabilities
9,079
-59
458
-357
9,037
Liabilities to banks
16,702
465
-229
16,466
Liabilities from customer deposits (banking)
19,362
874
-331
51,498
Liabilities from customer deposits (banking)
Asset-backed financing transactions
2,329
maturity period nominal interest
currency
(ISO Code)
Issuer
(in %)
Weighted
average
Weighted
average
in relevant
nominal interest rate
(in days)
maturity period
(in years)
Interest
Issuer
Issue volume
Weighted average
Weighted average
Issue volume
The following details apply to commercial paper:
Financial Statements
in relevant currency
(ISO Code)
rate (in %)
BMW Finance N. V.
variable
0.5
4.0
14,657
variable
SEK 1,500 million
variable
-0.6
EUR 300 million
BMW Finance N. V.
2.3
3.0
NOK 1,730 million
variable
0.1
16
BMW US Capital, LLC USD 1,220 million
0.0
2.2
EUR 2,000 million
Bonds comprise:
← = Q
26
Remuneration Report
550
-40
-2,025
2,615
Commercial paper
2,511
173
-63
- 494
2,895
Lease liabilities
9,037
21
Liabilities to banks
-2,172
- 520
11,436
Other Information
16,466
Financial liabilities towards companies in which an investment is held
296
- 248
-48
Combined Management Report
Corporate Governance
492
To Our Stakeholders
BMW Group Report 2021
199
105,540
185
787
- 3,573
Group Financial Statements
Notes to the Group
114,477
Liabilities relating to financing activities
752
-34
740
-78
Other (excluding interest payable)
- 6,336
864
31.12.2020
The EU Commission's antitrust proceedings (see note 10 for
additional information) was settled on 8 July 2021. In relation
to these allegations, numerous class action lawsuits have
been brought in the USA and Canada as well as several pri-
vate lawsuits in South Korea. In the USA, the customer class
actions were withdrawn and the dealer class action was dis-
missed.
The class action lawsuits in Canada and the private lawsuits
in South Korea remain at an early stage. Further civil law-
suits based on the allegations are possible going forward.
In addition, the Chinese State Administration for Market
Regulation opened antitrust proceedings against BMW AG
in March 2019, followed by the Korea Fair Trade Commission
in May 2020 and the Turkish Competition Authority in July
2020.
With respect to the Korean investigation, BMW AG recog-
nised a provision during the financial year. The Turkish anti-
trust authority issued its decision in January 2022, abstain-
ing from issuing a fine. Possible risks for the BMW Group in
connection with the antitrust proceedings in China cannot be
currently foreseen, either in terms of their outcome nor the
amounts involved. Further disclosures pursuant to IAS 37.86
cannot be provided at present.
On 22 January 2020, the U.S. Securities and Exchange Com-
mission (SEC) opened an investigation into possible viola-
tions of U.S. securities laws by the BMW Group relating to
disclosures regarding the BMW Group's unit sales of new
vehicles. This matter was settled with the SEC, without admit-
ting or denying the allegations, and the BMW Group con-
sented to the entry of an Order finding violations of the U.S.
Securities Act and agreed to pay a penalty of US $18 million.
Certain BMW Group entities and their officers are defendants
in private securities litigation following the SEC Order. Possi-
ble risks for the BMW Group cannot be quantified at present.
Further disclosures pursuant to IAS 37.86 cannot be provided
at present.
future recall actions going forward. Further disclosures pur-
suant to IAS 37.86 cannot be provided at the present time.
Other financial commitments
In addition to liabilities, provisions and contingent liabilities,
the following commitments exist for the BMW Group at the
end of the reporting period:
in € million
Purchase commitments for property,
plant and equipment
The BMW Group determines its best estimate of contingent
liabilities based on the information available at the date of
preparing the Group Financial Statements. This assessment
may change over time and is adjusted regularly on the basis
of new information and circumstances. A part of the risks is
covered by insurance.
31.12.2021
Regulatory authorities have ordered the BMW Group to recall
various vehicle models in conjunction with airbags supplied
by the Takata group of companies. Provision for the costs
involved has been recognised within warranty provisions. In
addition to the risks already covered by warranty provisions,
further BMW Group vehicles may possibly be affected by
Purchase commitments for
intangible assets
105
1,292
in € million
Investment subsidies
Litigation
Guarantees
Other
Contingent liabilities
31.12.2021
Other contingent liabilities mainly comprise risks relating to
taxes and customs duties.
31.12.2020
77
131
77
43
1,202
1,067
1,466
56
3,350
Financial assets
2,190
31.12.2021
At amortised cost
At fair value through
other comprehensive
income
At fair value
through profit or loss
Not allocated to an
IFRS 9 category
At amortised cost
At fair value through
other comprehensive
income
Financial Statements
At fair value
through profit or loss
947
294
22,622
63,104
1,596
The following contingent liabilities existed at the balance
sheet date:
1,012
64,795
Fair value hedges
Cash flow hedges
Derivative instruments
2,787
202
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
Other Information
← = Q
39 Financial instruments
The carrying amounts of financial instruments are assigned
to IFRS 9 categories in the following table:
in € million
ASSETS
Other investments
Receivables from sales financing
3,264
Contingent liabilities
517
38 Contingent liabilities and other financial
General
Simplified
Total
Expected
credit loss
79,639
1,071
374
credit loss
81,084
76,356
1,633
367
78,356
406
3,310
2,671
377
44
Total
General
Other derivative instruments
Receivables from sales financing are allocated to internally
defined rating categories based on credit risk.
The classification into creditworthiness levels is based on
default probabilities. The related gross carrying amounts in
accordance with IFRS 9 are allocated as follows:
in € million
Gross carrying amount of financial assets with good credit ratings
Gross carrying amount of financial assets with medium credit ratings
Gross carrying amount of financial assets with poor credit ratings
Total
Further disclosures relating to credit risk - in particular with
regard to the amounts of impairment losses recognised -
are provided in the explanatory notes to the relevant catego-
ries of receivables in notes 25 and 730.
Financial Statements
Simplified
31.12.2021
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Expected
31.12.2020
6,025
3,778
1,653
80,252
4,223
422
1,019
85,916
1,639
201
1,599
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
OTHER DISCLOSURES
To Our Stakeholders
89,016
1,054
431
38
5,469
431
71
769
13
1,054
1,907
705
118
937
17
1,019
2,091
802
83,020
4,511
commitments
390
Financial
instruments
20
397
Options on
unquoted equity
Unquoted equity
instruments
31 December 2021
Level transfer
Currency translation differences
Gains (+)/losses (-) recognised in the income
statement
Convertible bonds
22
Gains (+)/losses (-) recognised in accumulated
other equity
Additions
1 January 2021
in € million
The balance sheet carrying amount of Level 3 financial
instruments developed as follows:
← = Q
Other Information
Remuneration Report
Disposals
Corporate Governance
instruments
3
-4
100
417
Level 3
← = Q
23
724
Derivative
instruments
-49
32
488
-30
-220
24
76
-5
52
-254
Group Financial Statements
Notes to the Group
Financial Statements
To Our Stakeholders
Unquoted equity instruments
31.12.2020
Fair value
31.12.2021
Fair value
in € million
Financial instruments measured at fair value using input fac-
tors not based on observable market prices are allocated to
Level 3. The fair values of these financial instruments are
shown in the following table:
← = Q
Other Information
724
Remuneration Report
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
206
6
52
171
Group Financial Statements Corporate Governance
Notes to the Group
Financial Statements
Combined Management Report
397
23
BMW Group Report 2021
207
For selected derivatives, a complete set of data relevant for
valuation purposes is not available due to their limited mar-
ket maturity. In order to model forward curves, data are col-
lated and updated on the basis of regular bank and trader
inquiries. The valuation methodology applied is in line with
the general valuation principles for derivatives used within
the treasury management system of the BMW Group.
Changes in fair values resulting from shifts in forward curves
within a range of +/-10% are not material for the
BMW Group.
The exercise price for share options in such companies is
generally low, verging towards zero. Consequently, financing
rounds have a direct impact on the fair value of the options.
In this respect, the valuation of options and assessment of
their impact on sensitivity is similar to the approach taken to
unquoted equity instruments, as described above.
Mandatory conversions are usually structured in such a way
that the number of shares to be received depends on the
future share price. Due to the generally short maturities, the
instruments are subject to only insignificant fluctuations in
value. Irrespective of this fact, impairment tests are per-
formed at regular intervals.
The convertible bonds that have been classified to Level 3
are primarily used as instruments in advance of future
financing rounds relating to private equity investments. Val-
uations are therefore performed in accordance with the IPEV
guidelines.
In addition, equity instruments that are held outside the pri-
vate equity fund are measured using the income approach.
This involves discounting cash flows on the basis of current
business cases using the weighted average cost of capital to
determine the fair value of the financial instrument. Changes
in fair values determined in connection with adjustments to
significant input factors are not material for the BMW Group.
Convertible bonds
ment.
As part of the process of analysing valuations, the external
fund manager reviews the investment-specific milestones,
including an analysis of financial, technical and liquidity-spe-
cific performance indicators. Based on this analysis, it is
considered whether the price of the most recent financing
round is acceptable as a reasonable market valuation, in
particular for early-stage or growth-phase investments. Key
performance indicators used for the purpose of milestone
analysis are highly dependent on the business model under-
lying the investment. Typical technical key performance indi-
cators relate to licenses and patents held, the stage of tech-
nology development such as evidence of feasibility and
prototypes, market entries, customer and user growth and
appointments to key management positions. Key financial
performance indicators used are revenues, EBITDA and the
corresponding growth rate and/or development of specific
contribution margins. Key liquidity-specific performance
indicators are cash on hand, cash burn rates and prospects
for future financing rounds.
-
Financial instruments allocated to Level 3 relate mainly to
investments in a private-equity fund. The valuation of
unlisted equity instruments is determined primarily using the
market-based approach. In particular, the financing rounds
that take place within the private equity sector - usually on a
regular basis at intervals of approximately 12 to 24 months
represent a significant input factor for these purposes. In
addition, the investment advisor provides the external fund
manager with relevant, investment-specific information on
an ongoing basis (at least quarterly). The latter subsequently
assesses the underlying individual companies in accordance
with the guidelines for International Private Equity and Ven-
ture Capital Valuations (IPEV).
3
-5
67
Options on unquoted equity instruments
Derivative instruments
22
Since the pricing from the financing rounds is considered to
be the decisive input factor for the valuation, increases or
decreases in valuation give rise to a similar change in the
equity instrument that is recognised in the income state-
75
75
1
21,173
851
1,992
413
115
3,245
866
258
49
199
12,622
915
2,298
546
Receivables from companies in which an
investment is held
22
2,190
477
31.12.2020
3,238
985
Loans to third parties
35
23
Other
Cash and cash equivalents
Not allocated to an
IFRS 9 category
Trade receivables
15,983
26
46
2,261
Other assets
Receivables from subsidiaries
694
216
2,048
Collateral assets
295
Remuneration Report
Other Information
← = Q
in € million
LIABILITIES
Financial liabilities
instruments
Corporate Governance
in € million
Unquoted equity
Options on
814
67
-49
34
491
unquoted equity
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
454
Remaining other assets
1,547
5,517
1,504
5,774
Total
88,036
3,238
2,371
31,041
82,939
3,245
2,693
30,048
203
BMW Group Report 2021
Marketable securities and investment funds
Other Information
3,256
Corporate Governance
22,622
23,116
21,173
20
20
116
115
24,675
53,022
58,136
56,665
19,602
19,362
18,818
18,819
16,732
51,498
16,702
63,104
64,795
-
Receivables from sales financing - finance and operating leases
Financial assets - Marketable securities and investment funds
Financial liabilities
Bonds
Asset-backed financing transactions
Liabilities from customer deposits (banking)
65,326
Liabilities to banks
31.12.2020
Carrying
Fair value
amount
Fair value
Carrying
amount
67,158
31.12.2021
16,599
16,466
9,177
Level hierarchy in accordance with IFRS 13
Remuneration Report
Level 1
Level 2
Level 3
Level 1
Level 2
Level hierarchy in accordance with IFRS 13
Level 3
3,675
548
3,608
503
Other investments
223
724
Marketable securities, investment funds and collateral
assets
In the previous year, an amount of € 275 million relating to
marketable securities, investment funds and collateral was
reclassified from Level 1 to Level 2, in view of the fact that the
fair values of the marketable securities concerned were
derived on the basis of comparable instruments in the form
of a theoretical price. Furthermore, money market funds
amounting to € 915 million were reclassified from Level 2 to
Level 1 due to the fact that corresponding market or stock
exchange prices became available.
At 31 December 2021, equity instruments amounting to
€ 49 million were reclassified from Level 3 to Level 1, due to
the fact that quoted market prices became available for the
instruments concerned for the first time.
As a general rule, any transfers between fair-value hierarchy
levels are made at the end of the relevant reporting period.
9,079
9,209
9,037
205
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Disclosures relating to financial instruments measured at fair
value
The carrying amounts of financial instruments measured at
fair value are allocated to the measurement levels pursuant
to IFRS 13 as described below:
31.12.2021
31.12.2020
397
Receivables from sales financing credit financing
in € million
For all other financial instruments not listed here that are
measured at amortised cost, the carrying amount corre-
sponds to the fair value. For this reason, they are not pre-
sented separately.
In the case of financial liabilities, own credit risk is taken into
account based on credit default swaps available on the mar-
ket, so that the fair values of these items are also allocated
to Level 2.
Other derivative instruments
1,006
56,665
9,037
16,466
550
18,819
Fair value hedges
Lease liabilities
Trade payables
1,153
10,932
250
619
2,420
1,180
8,644
Other liabilities
Other
Cash flow hedges
Derivative instruments
19,362
Financial Statements
31.12.2021
At fair value through
other comprehensive
At amortised cost
income
At fair value
through profit or loss
Not allocated to an
IFRS 9 category
At amortised cost
Bonds
51,498
Liabilities to banks
9,079
Liabilities from customer deposits (banking)
16,702
Commercial paper
1,374
Asset-backed financing transactions
Payables to subsidiaries
80
180
Payables to other companies in which an
788
18,443
204
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
15,572
Corporate Governance
Other Information
← = Q
Disclosures relating to financial instruments measured at
amortised cost
The following table shows the fair values and carrying
amounts of financial assets and liabilities that are measured
at amortised cost and whose carrying amounts differ from
their fair value.
The fair values are generally determined using the dis-
counted cash flow method, taking into account the relevant
risk of default. For the purposes of fair value measurement
using the discounted cash flow method, expected future
cash flows are discounted on the basis of up-to-date interest
curves observable on the market.
The fair values of receivables from sales financing are meas-
ured using the discounted cash flow method, taking into
account customer-specific credit risk. In view of the fact that
these allowances are calculated in part on the basis of inter-
nal information, receivables from sales financing are allo-
cated to Level 3 in the level hierarchy in accordance with
IFRS 13. The fair values of the financial assets shown in the
table exist with financial institutions and are also measured
using the discounted cash flow method, taking into account
the risk of default. Given that these financial institutions all
have excellent credit ratings, the risk of default is low and
can be observed on the market. The fair values of these
items are therefore allocated to Level 2.
Remuneration Report
2,511
788
248
investment is held
2,367
814
Remaining other liabilities *
4,856
Total
117,503
619
15,017
18,693
4,621
116,976
* Prior year's figures adjusted.
31.12.2020
At fair value through
other comprehensive
income
At fair value
through profit or loss
Not allocated to an
IFRS 9 category
112
180
Cash equivalents
in € million
915
Total interest income arising on financial assets measured at
amortised cost relates mainly to the interest income earned
on credit financing and reported within revenues. Total inter-
est expenses arising on financial instruments measured at
amortised cost amounted to € 1.6 billion (2020: € 1.8 billion).
in € million
2021
2020
Financial instruments measured at fair value through other comprehensive income
-45
7
Net gains and losses arising on financial liabilities measured
at amortised cost comprise mainly exchange rate gains/
losses as well as fair value gains/losses on hedged items in
designated hedging relationships that are recognised in the
income statement.
Financial instruments measured at fair value through profit or loss
310
Financial assets measured at amortised cost
803
- 1,050
Financial liabilities measured at amortised cost
818
-350
-35
209
Net gains and losses arising on financial assets measured at
amortised cost comprise mainly exchange rate gains / losses
and impairment losses/reversals.
Net gains and losses arising on financial instruments meas-
ured at fair value through other comprehensive income
mainly relate to changes in the fair value of marketable secu-
rities. Further details are provided in the disclosures relating
to the statement of comprehensive income ( note 19). Total
interest income arising on financial assets measured at fair
value through other comprehensive income amounted to
€ 31 million (2020: € 37 million) and total interest expense to
€ 18 million (2020: € 30 million).
31.12.2021
Reported on
Reported on
equity and
assets side liabilities side
Reported on
assets side
2,998
1,875
Net gains and losses arising on financial instruments meas-
ured at fair value through profit and loss mainly include
results from the fair value measurement of stand-alone
derivatives, marketable securities and shares in investment
funds, as well as other financial assets.
1,148
-1,118
757
- 790
2,466
26
31.12.2020
Reported on
equity and
liabilities side
358
-1,118
1,880
The following table shows the net gains and losses arising
on financial instruments in accordance with IFRS 9:
BMW Group Report 2021
Combined Management Report
2,002
120
229
12
31
14
23
2,113
34
2,293
2,345
210
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
60
To Our Stakeholders
31.12.2020
More than 90 days overdue
Total
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Credit risk
The BMW Group is exposed to counterparty credit risks if
contractual partners, for example a retail customer or a deal-
ership, are unable or only partially able to meet their contrac-
tual obligations. Information on the management of credit
risk for receivables from financial services is provided in the
Combined Management Report (see section Outlook, Risk
and Opportunity Management).
31.12.2021
Notwithstanding the existence of collateral accepted, the
carrying amount of financial assets (with the exception of
derivative financial instruments) generally represents the
maximum credit risk. In addition, the credit risk is increased
by additional unutilised loan commitments in the dealership
financing line of business. Total dealership financing credit
risk at the end of the reporting period therefore amounted to
€ 31,508 million (2020: € 30,682 million).
In the case of trade receivables, customers are regularly
assessed with regard to their credit risk. Depending on con-
tractual status, necessary measures, such as dunning pro-
cedures, are initiated in good time.
The credit risk relating to cash deposits and derivative finan-
cial instruments is minimised by the fact that the Group only
enters into such contracts with parties of first-class credit
standing.
Within the financial services business, items financed for
retail customers and dealerships (such as vehicles, facilities
and property) serve as first-ranking collateral with a recover-
able value. Security is also put up by customers in the form
of collateral asset pledges, asset assignment and first-rank-
ing mortgages, supplemented where appropriate by warran-
ties and guarantees. Items previously held as collateral that
are subsequently acquired relate mainly to vehicles. As a
rule, these assets can be converted into cash at short notice
through the dealership organisation. Creditworthiness test-
ing is an important aspect of the BMW Group's credit risk
management. Every borrower's creditworthiness is tested
for all credit financing and lease contracts entered into by the
BMW Group. In the case of retail customer financing, credit-
worthiness is assessed using validated scoring systems
integrated in the purchasing process. In the area of dealer-
ship financing, creditworthiness is assessed by means of
ongoing credit monitoring and an internal rating system that
takes account not only of the material credit standing of the
borrower, but also of qualitative factors, such as past reliabil-
ity in business relations.
The credit risk on trade receivables is assessed mainly on
the basis of information relating to overdue amounts. The
gross carrying amounts of these receivables are allocated in
accordance with IFRS 9 to overdue ranges used for manage-
ment purposes as follows:
in € million
Not overdue
1-30 days overdue
31-60 days overdue
61-90 days overdue
In the case of all relationships underlying non-derivative
financial instruments, in order to minimise the credit risk and
depending on the nature and amount of exposure, collateral
is required, credit information and references obtained or
historical data based on the existing business relationship,
in particular payment behaviour, reviewed.
Gains and losses on financial instruments
- 790
Gross amount of derivatives which can be offset in case of insolvency
Net amount after offsetting
2,344
335
Non-derivative financial assets and liabilities are only offset
if a legally enforceable right currently exists and it is actually
intended to offset the relevant amounts. No financial assets
and liabilities have been netted in the BMW Group due to the
fact that the necessary requirements for netting have not
been met.
1
3
919
Convertible bonds
101
instruments
Financial
instruments
Level 3
1 January 2020
355
14
5
374
Additions
Derivative
instruments
Raw material market price risks
1,045
Currency risks
Loans to third parties
Derivative instruments (assets)
23
223
Interest rate risks
Currency risks
Raw material market price risks
Other risks
Derivative instruments (liabilities)
Interest rate risks
1,373
466
I
1,092
67
40
729
73
17
573
Disposals
417
Gains and losses recognised in the income statement are
reported within the line item "Other financial result". Gains
and losses recognised in the income statement in the finan-
cial year 2021 included an unrealised net positive amount of
€ 352 million (2020: € 84 million).
208
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
- 5
Corporate Governance
Other Information
← = Q
Financial Statements
Offsetting of financial instruments
90
in € million
Balance sheet amounts as reported
Remuneration Report
3
Derivative financial instruments of the BMW Group are sub-
ject to legally enforceable master netting agreements or
similar contracts. However, receivables and payables relat-
ing to derivative financial instruments are not netted due to
non-fulfilment of the stipulated criteria. Offsetting would
have the following impact on the carrying amounts of deriv-
atives:
397
22
- 87
-7
2
-94
Gains (+)/losses (-) recognised in accumulated
other equity
-7
-7
-2
Currency translation differences
31 December 2020
85
85
- 29
-2
Gains (+)/losses (-) recognised in the income
statement
- 31
DELTON Health AG (formerly DELTON AG)
Supplies and services received
Receivables at 31 December
Payables at 31 December
in € thousand
2021
2020
2020
2020
2021
2021
2020
Supplies and services performed
1,821
2021
Seen from the perspective of BMW Group entities, the vol-
ume of transactions with the above-mentioned entities was
as follows:
219
Other Information
The Board of Management and the Supervisory Board of
the BMW Group
1,950
Associated companies, joint ventures, non-consolidated
subsidiaries, BMW Trust e. V. and BMW Foundation Her-
bert Quandt
Transactions of Group entities with related parties were car-
ried out, without exception, in the normal course of business
of each of the parties concerned and conducted at market
conditions, i. e. conditions that are also granted to other
third-party manufacturers.
During the year under report, members of the Board of Man-
agement and the Supervisory Board concluded vehicle pur-
chase contracts and related service contracts as well as
vehicle rental, vehicle leasing and vehicle financing contracts
with BMW Group entities at market conditions.
Stefan Quandt, Germany, is a shareholder and Deputy Chair-
man of the Supervisory Board of BMW AG. He is also the
sole shareholder and Chairman of the Supervisory Boards of
DELTON Health AG, Bad Homburg v.d.H., and DELTON
Technology SE, Bad Homburg v.d.H., as well as the sole
shareholder of DELTON Logistics S.à.r.I., Grevenmacher,
which via its subsidiaries, performed logistic-related ser-
vices for the BMW Group during the financial year 2021. In
addition, the DELTON companies held by Stefan Quandt
acquired vehicles from the BMW Group by way of leasing.
Stefan Quandt, Germany, is also the indirect majority share-
holder of SOLARWATT GmbH, Dresden. Cooperation
arrangements are in place between BMW Group and
SOLARWATT GmbH, Dresden, within the field of electric
mobility. The focus of this collaboration is on the provision of
complete photovoltaic solutions for rooftop systems and car-
ports to BMW i customers. In addition, SOLARWATT GmbH
purchases battery cells and related components for home
battery storage applications as part of a supply project. In
addition to the deliveries of goods described above, SOLAR-
WATT GmbH, Dresden, also purchased vehicles from the
BMW Group by way of leasing during the financial year 2021.
Susanne Klatten, Germany, is a shareholder and member of
the Supervisory Board of BMW AG and also a shareholder
and Deputy Chairwoman of the Supervisory Board of
ALTANA AG, Wesel. In 2021, ALTANA AG, Wesel, acquired
vehicles from the BMW Group, mainly by way of leasing.
Susanne Klatten, Germany, is also the sole shareholder and
Chairwoman of the Supervisory Board of UnternehmerTUM
GmbH, Garching. In 2021, the BMW Group bought in services
from UnternehmerTUM GmbH, Garching, mainly in the form
of consultancy and workshop services.
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
← = Q
1
Financial Statements
1,090
The following table shows key information on hedged items
for each risk category as well as the balances of designated
components within accumulated other equity:
Interest rate risks
Fair Value Hedges
Raw material price risks
Currency risks
Cash Flow Hedges
in € million
in € million
Financial Statements
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
The following table provides information on the nominal
amounts, carrying amounts and fair value changes of con-
tracts designated as hedging instruments:
Combined Management Report
Cash Flow Hedges
Raw material price risks
31.12.2020
Liabilities
Assets
Nominal
amounts
Change in
fair value of
designated
components
Liabilities
Currency risks
Assets
Carrying amounts
31.12.2021
Carrying amounts
The accumulated amount of hedge-related fair value adjust-
ments is a negative amount of € 9 million (2020: positive
amount of € 10 million) for assets and a positive amount of
€ 577 million (2020: positive amount of € 1,680 million) for
liabilities.
Interest rate risks
Fair Value Hedges
Nominal
amounts
Change in
fair value of
designated
components
To Our Stakeholders
216
1,792
1,449
Raw material price risks
12,373
28,213
8,082
Nominal amounts of
Interest rate risks
4,530
11,939
Currency risks
Nickel (EUR/t)
Maturity
later than
five years
one year and five years
Palladium (EUR/oz)
Platinum (EUR/oz)
BMW Group Report 2021
hedging instruments
34,535
Information on average interest hedge rates is not provided,
since interest rate derivatives designated as hedging instru-
ments are used exclusively to hedge items in fair value
hedges. The hedge rates therefore correspond in each case
to current market interest rate level. Most of the hedges used
701
676
1,350
1,822
11,188
21,470
14,475
5,389
1,573
1,730
31.12.2020
31.12.2021
12,373
4,568
in € million
33,666
905
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
217
-720
58,714
Group Financial Statements
Notes to the Group
8,483
532
-1,169
-467
1,141
56,985
10,611
1,057
510
- 820
Corporate Governance
Other Information
547
-806
Change of designated
components in other
comprehensive income
Stefan Quandt and Susanne Klatten, as well as compa-
nies controlled by them
mulated other equity changed as follows:
Designated components and costs of hedging within accu-
Remuneration Report
Interest rate risks
Raw material price risks
Currency risks
Cash Flow Hedges
in € million
Hedge relationships give rise to following effects:
← = Q
Fair Value Hedges
437
-274
Terminated
hedge
relationships
250
1,012
57,920
466
58
574
-1,138
1,169
277
16,469
3,241
-795
820
101
1,159
5,111
54
795
59,774
248
Continuing
hedge
relationships
Change in
value of
Liabilities hedged items
Assets
Terminated
hedge
relationships
Continuing
hedge
relationships
Change in
value of
Liabilities hedged items
1,992
Assets
Carrying amounts
Balances in accumulated
other equity
Carrying amounts
31.12.2020
31.12.2021
723
Balances in accumulated
other equity
DELTON Logistics S.à r.l.
Maturity
between one
Maturity
220
804
2,345
2,045
2,158
155
BMW Group Report 2021
1,030
2020
2021
2020
2021
2020
2021
9,701
2020
To Our Stakeholders
Group Financial Statements
Notes to the Group
Financial Statements
2021
Supplies and services received
Supplies and services performed
For disclosures relating to key management personnel,
please see note 43 and the Remuneration Report.
The BMW Foundation Herbert Quandt, Munich, is an inde-
pendent corporate foundation and due to the BMW Group's
significant influence, qualifies as a related party according to
IAS 24. The BMW Group made donations to the BMW Foun-
dation Herbert Quandt during the financial year 2021 total-
ling € 5.9 million (2020: € 6.4 million). No other significant
transactions arose.
BMW Trust e. V., Munich, administers assets on a trustee
basis to secure obligations relating to pensions in Germany
and is therefore a related party of the BMW Group in accord-
ance with IAS 24. This entity has no assets of its own. It had
no income or expenses during the period under report.
BMW AG bears expenses on an immaterial scale and per-
forms services for BMW Trust e. V., Munich.
Combined Management Report
Business relationships with non-consolidated companies
are small in scale.
in € million
In total, the following amounts of goods and services were
supplied to or received from other joint ventures and associ-
ated companies:
← = Q
Other Information
Remuneration Report
Corporate Governance
Other joint ventures and associated companies
27
2021
11,500
Receivables at 31 December
2,572
ALTANA AG
287
1,574
3,362
5
2,425
65
1,369
2,363
8,827
SOLARWATT GmbH
19,068
19,450
1,235
49
Payables at 31 December
251
37
Supplies and services received
Supplies and services performed
For the most part, this involves the sale of vehicle compo-
nents to BMW Brilliance Automotive Ltd. for further process-
ing. BMW Brilliance Automotive Ltd. also provides services
and vehicles to BMW Group entities.
BMW Brilliance Automotive Ltd.
in € million
A significant proportion of the BMW Group's transactions
with related parties relates to the joint venture BMW Bril-
liance Automotive Ltd.
UnternehmerTUM GmbH
510
80
49
243
315
273
1,310
809
337
within
2020
32
Nominal amounts of
2,442
2,669
Raw material price risks
11,251
25,145
hedging instruments
9,474
11,996
21,670
Currency risks
Maturity
later than
five years
Maturity Maturity
within between one
one year and five years
in € million
Interest rate risks
31.12.2021
33,813
11,251
Copper (EUR/t)
31.12.2020
Aluminium (EUR/t)
Raw material price risks
in this context relate to variable yield curves relating to the
euro, US dollar and British pound currency areas.
A cash-flow-at-risk approach to risk management involves
making use of portfolio effects. No JPY-denominated hedg-
ing transactions were in hedging relationships at the end of
the year under report (2020: no USD-denominated hedging
transactions).
39,583
1,334.86
124.20
0.87
1,341.73
1.23
8.05
7.99
31.12.2020
31.12.2021
0.87
2021
EUR/JPY
EUR/GBP
31.12.2021 31.12.2020
9
2020
15
8
2021
597
2020
5
64
2021
2020
Receivables at 31 December
70
Payables at 31 December
EUR/KRW
310
BMW Group Report 2021
EUR/USD
EUR/CNY
Currency risks
The following table shows the most significant average
hedging rates of hedging transactions used by the
BMW Group:
The nominal amounts of hedging instruments were as
follows:
The following disclosures on hedging measures include
derivatives of fully consolidated companies that are desig-
nated as a hedging instrument. The amounts shown in the
table are stated before deferred taxes and take account of
additional effects arising from the application of the modified
closing rate method.
215
Disclosures on hedging measures
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
← = Q
The following individuals and entities are related parties in
accordance with IAS 24:
With gross settlement
← = Q
Bonds
13,266
30,071
10,821
54,158
13,456
33,224
NON-DERIVATIVE FINANCIAL LIABILITIES
11,930
Asset-backed financing transactions
6,964
12,622
19,586
7,067
12,369
19,436
58,610
Liabilities to banks
Total
Maturity between
one year one and five years
Corporate Governance
Remuneration Report
Other Information
← = Q
Notes to the Group
Liquidity risk
The following table shows the maturity structure of expected
contractual cash flows (undiscounted) for financial liabilities:
Maturity later
than five years
in € million
31.12.2021
31.12.2020
Maturity within Maturity between
one year one and five years
Maturity later
than five years
Maturity within
Total
Financial Statements
5,130
3,350
1,027
1,167
990
2,640
512
1,227
1,028
2,767
483
Commercial paper
1,374
550
550
Other financial liabilities
321
116
301
1,374
Lease liabilities
8,644
8,644
9,507
5,295
3,317
1,388
10,000
Liabilities from customer deposits (banking)
13,211
3,574
20
16,805
12,808
3,781
22
16,611
Trade payables
10,932
10,932
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
84
- 104
7
-7
for terminated hedge relationships
3
557
-29
-512
355
-4
for continuing hedge relationships
Reclassification to profit or loss
1
466
5
-3
Reclassification to acquisition costs for inventories
-273
72
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
218
The nominal amount of hedging instruments that continue
to be directly affected by the reform of the benchmark inter-
est rates and USD LIBOR totals € 7,257 million.
510
- 2
- 299
532
1,057
15
-244
-274
Closing balance at 31 December
6
-443
738
1,170
20
Currency risks Interest rate risk
2020
2021
3
2
- 5
198
Raw material price risk
554
509
Change in costs of
hedging in other
comprehensive income
2020
3
17
Hedge ineffectiveness
recognised in income
statement
2021
211
Hedge ineffectiveness
recognised in income
statement
Currency risks Interest rate risk
Raw material price risk
Designated
-307
-795
Change in fair value during the reporting period
5
1
-4
Designated
component Costs of hedging
component Costs of hedging Costs of hedging
-497
-22
Designated
Designated
component Costs of hedging
510
-2
- 299
532
component Costs of hedging Costs of hedging
Opening balance at 1 January
in € million
820
120
288
357
Corporate Governance
Remuneration Report
Other Information
← = Q
Interest rate risk
Interest rate risks arise when funds are borrowed and
invested with differing fixed-rate periods or differing terms.
At the BMW Group, all items subject to, or bearing, interest
are exposed to interest rate risk and can therefore affect
both the assets and liabilities side of the balance sheet.
The fair value of the Group's interest rate portfolios was as
follows at the end of the reporting period:
Group Financial Statements
Notes to the Group
Financial Statements
in € million
31.12.2021
31.12.2020
63,835
58,545
Interest rate risk is managed through the use of interest rate
derivatives. As part of the implementation of the risk man-
agement strategy, interest rate risks are monitored and
managed at regular intervals. The interest rate contracts
used for hedging purposes comprise mainly swaps, which, if
hedge accounting is applied, are accounted for as fair value
hedges. The economic relationship between the hedged
item and the hedging instrument is based on the fact that
the main parameters of the hedged item and the related
hedging instrument, for example start date, term and cur-
rency, are the same. Items are hedged on the basis of a con-
stant ratio of one to one between hedging instrument and
risk exposure.
In view of the fact that own credit risk is excluded from the
hedging relationship, ineffectiveness is expected to be low.
For selected fixed-interest assets, part of the interest rate
risk is hedged on a portfolio basis.
Fair values of interest rate portfolios
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
in € million
Currency exposure
Currency exposures include short positions amounting to
€ 2,715 million (2020: € 5,222 million). In addition, a cur-
rency risk exposure existed at the reporting date on the pur-
chase price payable arising in connection with the increase
in the BMW Group's stake in the BMW Brilliance joint ven-
ture for a euro-equivalent amount of € 3,857 million. The
transaction was completed in February 2022. Further infor-
mation is provided in a note 3 Increased shareholding in BMW
Brilliance Automotive Ltd.
This exposure is compared to all hedges that are in place.
The net cash flow surplus represents an uncovered risk posi-
tion. The cash-flow-at-risk approach involves showing the
impact of potential exchange rate fluctuations on operating
cash flows on the basis of probability distributions. Volatili-
ties and correlations serve as the main input factors to deter-
mine the relevant probability distributions.
The potential negative impact on earnings is calculated at
the reporting date for each currency for the following finan-
cial year on the basis of current market prices and exposures
with a confidence level of 95%. The risk mitigating effect of
correlations between the various currencies is taken into
account when the risks are aggregated.
The following table shows the potential negative impact for
the BMW Group for the following year resulting from unfa-
vourable changes in exchange rates, measured on the basis
of the cash-flow-at-risk approach.
31.12.2021
31.12.2020
38,134
33,975
in € million
Cash flow at risk
31.12.2021
31.12.2020
564
531
213
In this case, swaps are used as the hedging instrument.
Hedge relationships are terminated and redesignated on a
monthly basis at the end of each reporting period, thereby
taking account of the constantly changing content of each
portfolio.
The BMW Group measures currency risk using a cash-flow-
at-risk model. The analysis of currency risk is based on fore-
cast foreign currency transactions which could result in
exposures to surpluses of foreign currency cash inflows and
cash outflows. At the end of the reporting period, the overall
currency exposure – in each case for the following year and
determined by aggregating the individual currency expo-
sures based on their absolute amount - was as follows:
In light of the reform and replacement of certain benchmark
interest rates, some of the BMW Group's hedging relation-
ships have been redesignated to take account of alternative
benchmark interest rates.
The BMW Group's fair value hedges affected by the reform
are mainly based on the benchmark interest rates relating to
the British pound (GBP), the US dollar (USD) and the Japan
yen (JPY). Fair value hedges for which GBP LIBOR and JPY
LIBOR were previously designated as the hedged risk were
converted during the financial year 2021, with GBP LIBOR
replaced by the SONIA benchmark interest rate and JPY
LIBOR replaced by the TONA benchmark interest rate. The
BMW Group continues to see the economic link and has
therefore continued to account the pertinent items as fair
value hedges. The notional amount of financial derivatives
The economic relationship between the hedged item and
the hedging instrument is based essentially on the fact that
they have the same basis and term. The BMW Group desig-
nates only the commodity price index-linked raw material
surcharge, which is specified in the purchase contracts of
vehicle components, as a hedged item. The proportion of the
hedged risk component as a percentage of the total fair
value depends on the specific types of vehicle component
involved. Other price components contained in the contract
are not designated as being part of the hedge relationship
as no effective hedging instruments exist for these compo-
nents.
The starting point for analysing raw materials price risk is to
identify planned purchases of raw materials or components
containing raw materials, the so-called "exposure". At each
reporting date, the exposure for the following financial year
amounted to:
in € million
Raw material price exposures
The following table shows the potential negative impact for
the BMW Group resulting from fluctuations in prices across
all categories of raw materials, measured on the basis of the
cash-flow-at-risk approach. The risk at each reporting date
for the following financial year was as follows:
31.12.2021
31.12.2020
Causes of hedge ineffectiveness are seen potentially only for
counterparty credit risk. However, in view of the processes
that have been established for credit risk management, inef-
fectiveness is not expected to arise.
in € million
4,204
Cash flow at risk
This exposure is compared to all hedges that are in place.
The net cash flow surplus represents an uncovered risk posi-
tion.
The cash-flow-at-risk approach involves showing the impact
of potential raw materials market price fluctuations on oper-
ating cash flows on the basis of probability distributions. Vol-
atilities and correlations serve as input factors to assess the
relevant probability distributions.
The potential negative impact on earnings is calculated at
the reporting date for each raw materials category for the
following financial year on the basis of current market prices
and exposure with a confidence level of 95%. The risk miti-
gating effect of correlations between the various categories
of raw materials is taken into account when the risks are
aggregated.
Remuneration Report
Other Information
6,872
The BMW Group is exposed to market price risks on raw
materials. In order to hedge these risks, the Group mainly
uses forward commodity contracts. As part of the implemen-
tation of the risk management strategy, the extent to which
risk exposures should be hedged is decided at regular inter-
vals and the corresponding hedging ratio defined. Items are
hedged on the basis of a constant ratio of one to one
between hedging instrument and risk exposure.
Raw materials price risk
← = Q
that have been transferred with effect from 31 December
2021 to an alternative benchmark interest rate in accordance
with the IBOR Fallbacks Protocol totals € 6,890 million
(mainly GBP LIBOR € 4,229 million and JPY LIBOR
€ 2,279 million).
In the case of USD LIBOR and CAD CDOR, uncertainty
remains as to the exact timing and nature of the changes.
The notional amount of financial derivatives not yet con-
verted to an alternative interest rate at 31 December 2021 is
€ 12,522 million (USD LIBOR € 12,522 million). The nominal
amount of non-derivative financial liabilities not yet con-
verted to an alternative interest rate is € 700 million (thereof
USD LIBOR € 387 million and CAD CDOR € 313 million).
The BMW Group applies a value-at-risk approach through-
out the Group for internal reporting purposes and to manage
interest rate risk. This approach is based on a historical sim-
ulation in which the potential future fair value losses of the
interest rate portfolios are compared across the Group with
expected amounts on the basis of a holding period of 250
days and a confidence level of 99.98 %. The risk mitigating
effect of correlations between the various portfolios is taken
into account when the risks are aggregated.
In the following table the potential volumes of fair value fluc-
tuations measured on the basis of the value-at-risk
approach are compared with the expected value for the
interest-rate-sensitive exposures of the BMW Group:
in € million
Value at risk
31.12.2021 31.12.2020
1,237
1,160
214
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
The transition to the newly created or revised benchmark
interest rates is being managed, monitored and assessed
with regard to risk management implications as part of a
multidisciplinary project. The tasks of the conversion project
includes the continual monitoring of regulatory develop-
ments, the initiation of necessary changes to systems, pro-
cesses, risk and measurement models as well as the clarifi-
cation of the associated accounting and financial reporting
implications. The uncertainty triggered by the benchmark
interest rate reform, in the meantime relating primarily to the
USD and CAD, is expected to be eliminated during the finan-
cial
year 2022.
40 Related party relationships
Causes of hedge ineffectiveness are seen potentially only for
counterparty credit risk. However, in view of the processes
that have been established for credit risk management, inef-
fectiveness is not expected to arise.
As part of the implementation of the risk management strat-
egy, the extent to which risk exposures should be hedged is
decided at regular intervals.
631
21,085
-27,866
-14,180
- 157
-42,203
- 14,478
5,544
-5,296
-20,391
219
216
88
523
380
144
- 617
14,910
44,583
166
765
DERIVATIVE FINANCIAL LIABILITIES
1,434
937
9
2,380
432
248
14
694
Cash outflows
Cash inflows
With net settlement
Cash outflows
Total financial liabilities
29,300
15,117
28
The economic relationship between the hedged item and
the hedging instrument is based essentially on the fact that
they are denominated in the same currency and have the
same maturities. Items are hedged on the basis of a con-
stant ratio of one to one between hedging instrument and
risk exposure.
552
216
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
The resulting funding requirements are covered by a variety
of instruments placed on the world's financial markets, with
the aim to minimise risk by matching maturities with financ-
ing requirements and in alignment with a dynamic target
debt structure.
As a further reduction of risk, a syndicated credit line totalling
€ 8 billion (2020: € 8 billion) from a consortium of interna-
tional banks is available to the BMW Group. Intra-group
cash flow fluctuations are balanced out by the use of daily
cash pooling arrangements.
Combined Management Report
Further information is provided in the Combined Manage-
ment Report.
The principal market risks to which the BMW Group is
exposed are currency risk, interest rate risk and raw materi-
als market price risk.
Protection against such risks is provided in the first instance
though natural hedging which arises when the values of
non-derivative financial instruments have matching maturi-
ties and amounts (netting). Derivative financial instruments
are used to reduce the risk remaining after netting.
Currency, interest rate and raw materials market price risks
of the BMW Group are managed at a corporate level.
Further information is provided in the "Outlook, Risk and
Opportunity Management" section of the Combined Man-
agement Report.
Currency risk
As an enterprise with worldwide operations, the BMW Group
conducts business in a variety of currencies, from which cur-
rency risks arise. In order to hedge currency risks, the
BMW Group holds, as at 31 December 2021, derivative finan-
cial instruments mostly in the form of forward currency con-
tracts and currency swaps.
Market risks
To Our Stakeholders
BMW Group Report 2021
212
88
523
380
144
28
552
53,334
52,053
13,256
118,643
49,264
54,598
14,767
118,629
The cash flows from non-derivative liabilities comprise prin-
cipal repayments and the related interest. The amounts dis-
closed for derivative instruments comprise only cash flows
relating to derivatives that have a negative fair value at the
balance sheet date. In the case of derivatives with a negative
fair value, an overall positive cash flow can arise due to the
various yield curves used. At 31 December 2021 credit com-
mitments available at short notice to dealerships which had
not been called upon at the end of the reporting period
amounted to € 18,334 million (2020: € 14,367 million).
Solvency is assured at all times by managing and monitoring
the liquidity situation on the basis of a rolling cash flow fore-
cast.
219
Change of designated
components in other
comprehensive income
55
Change in costs of
hedging in other
comprehensive income
No further shares were granted to active current members of
the Board of Management during the financial year under
report (2020: 7,001 shares). In the previous year, the fair
value of the shares granted amounted to € 0.5 million.
-Relevant period is the vesting year
― Primarily qualitative, non-financial criteria, expressed in terms of a performance factor aimed at measuring the Board member's contribution to sustainable and long-term performance
and corporate orientation
- Formula: 50% of target amount x performance factor
― € 1.050 million (Chairman of the Board of Management)
― € 0.575 million (from second period of office or fourth year of mandate)
- € 0.475 million (first period of office)
― Base amount p. a. (50% of target bonus amount):
- Assessment period one year
― € 1.890 million (Chairman of the Board of Management)
― € 1.035 million (from second period of office or fourth year of mandate)
- Maximum amount of earnings component p.a.:
- Earnings factor may not exceed 1.8
― The earnings factor is 1.5 in case of a profit attributable to shareholders of BMW AG amounting to € 6.9 billion and a Group post-tax return on sales of 7.3%
―The earnings factor is 0 in case of a profit attributable to shareholders of BMW AG below € 3.0 billion or a Group post-tax return on sales of below 3.0%
― Additional trend analysis over at least three financial years
- Composition of performance factor:
- 50% cross-divisional targets with ESG criteria
-40% other cross-divisional targets
To Our Stakeholders
BMW Group Report 2021
226
― Performance component of bonus motivates the pursuit of non-financial strategic targets and is therefore beneficial for the long-term development of the BMW Group
― Earnings component of bonus rewards attainment of financial targets and is beneficial for earnings-related aspects of business strategy
― € 1.890 million (Chairman of the Board of Management)
― The earnings factor is 1.0 in case of a profit attributable to shareholders of BMW AG amounting to € 5.3 billion and a Group post-tax return on sales of 5.6%
― € 1.035 million (from second period of office or fourth year of mandate)
- Maximum amount of performance component p. a.:
- Performance factor may not exceed 1.8
― Measurement parameters and target values are determined before the start of the financial year
- Criteria for the other cross-divisional targets include in particular: market position compared to competitors, innovation performance (economic), development of the BMW Group's
reputation based on non-ESG-related aspects (e. g. perception on capital markets, brand strength), customer orientation
― Criteria for the cross-divisional targets with ESG criteria include in particular: innovation performance (environmental, e. g. reduction of carbon emissions), development of the
BMW Group's reputation based on ESG aspects (e. g. corporate culture, promotion of integrity and compliance), adaptability, attractiveness as an employer, leadership performance
-10% individual targets
- € 0.855 million (first period of office)
Combined Management Report
-Profit attributable to shareholders of BMW AG and Group post-tax return on sales in grant year
- Formula: 50% of target amount x performance factor
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
225
Remuneration Report
― Payment after the Annual General Meeting at which the Company Financial Statements are presented for the relevant financial year
— € 2.10 million (Chairman of the Board of Management)
- € 1.15 million (from second period of office or fourth year of mandate)
- € 0.95 million (first period of office)
— Target amount p. a. (at 100 % target achievement):
(sum of earnings component and performance
component)
Bonus
― Capped at 180% of target amount
― Earnings factor is derived from a predefined allocation based on the parameters
Other Information
= Q
― € 1.050 million (Chairman of the Board of Management)
― € 0.575 million (from second period of office or fourth year of mandate)
- € 0.475 million (first period of office)
― Base amount p. a. (50% of target bonus amount):
Assessment period one year
Parameters/measurement base, applicable amounts
↑
Remuneration linked to corporate strategy
Performance component
(at 100 % target achievement corresponds to
50% of target amount)
Earnings component
Bonus
VARIABLE REMUNERATION COMPONENTS
(SHORT-TERM BENEFITS)
COMPONENT
(at 100% target achievement corresponds to
50% of target amount)
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
- At least two strategic focus targets derived from the strategic plan
- Weighting of the strategic focus targets is decided before the start of the financial year
- Formula in event of two strategic focus targets with equal weighting p. a.:
25% of target amount for personal investment cash amount x factor for strategic focus target 1 + 25% of target amount for personal investment cash amount x factor for strategic
focus target 2
― Minimum, target and maximum values are defined before the start of the financial year
- Factor for each strategic focus target may not exceed 1.8
- Maximum amount of strategic focus target component p. a.:
- € 0.990 million (first period of office)
― € 1.152 million (from second period of office or fourth year of mandate)
― € 2.115 million (Chairman of the Board of Management)
― personal investment cash amount is 50 % dependent on key performance indicator RoCE and is therefore directly linked to a key measure of corporate strategy and reflects BMW AG's
aspiration to generate a significant premium on the cost of capital
―The remaining 50% of the personal investment cash amount is beneficial for the attainment of strategic focus targets and therefore contributes to the BMW Group's operational suc-
cess in strategically important areas
-Commitment to purchase shares of BMW AG common stock and four-years holding requirement is beneficial for the long-term development of the BMW Group
227
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
The war in Ukraine had no impact on the Consolidated
Financial Statements for the year ended 31 December 2021.
Any potential effects on the BMW Group's business perfor-
mance are being monitored on an ongoing basis. Due to the
current situation, local production in Russia as well as the
export of automobiles and motorcycles to the Russian mar-
ket have been discontinued for the foreseeable future. The
war in Ukraine is having a substantial negative effect on the
country's automotive suppliers. The resulting supply restric-
tions have led to production schedule adjustments and
interruptions at a number of BMW Group plants, which in
turn is likely to have a negative impact on automobile sales
figures. For this reason, the corresponding key performance
indicators reported by the Automotive segment are now
forecast to be down on the previous year. The war in Ukraine
is not currently expected to have a significant impact on the
business performance of the Motorcycles and Financial Ser-
vices segments.
44 Events after the end of the reporting period
On 11 February 2022, the BMW Group acquired a further 25%
of the shares in the previous joint venture BMW Brilliance
Automotive Ltd. Further information is provided in 7 note 3
Increased shareholding in BMW Brilliance Automotive Ltd.
― Agreement entitling the BMW Group to reclaim variable remuneration already paid out in the event of specified incidences of non-compliance, incorrect calculation bases or incorrect
financial statements
― Amounts may also be clawed back in principle after a member has left the Board
Agreement to withhold variable remuneration in the event of specified serious compliance violations or (withholding amounts provisionally) in the event of reasonable suspicions of such
― Amounts may also be withheld in principle after a member has left the Board
Parameters/measurement base, applicable amounts
Clawback
― € 1.175 million (Chairman of the Board of Management)
Malus
COMPONENT
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
MALUS AND CLAWBACK RULES
― € 0.64 million (from second period of office or fourth year of mandate)
- € 0.55 million (first period of office)
― Target amount strategic focus target component p. a. (50% of target amount of personal investment cash amount):
- Target amount p. a. (at 100 % target achievement):
― Assessment period of five years in total (one year for determining the personal investment cash amount, four years holding requirement)
Requirement for Board of Management members to invest an earmarked cash amount (personal investment cash amount), net of tax and deductions, in shares of BMW common stock
- Requirement for Board of Management members to hold the acquired shares of BMW common stock for at least four years (share ownership)
Parameters/measurement base, applicable amounts
Remuneration linked to corporate strategy
Strategic focus target component (at 100 %
target achievement corresponds to 50% of
target amount)
- € 1.10 million (first period of office)
RoCE component (at 100 % target achievement
corresponds to 50% of target amount)
Personal investment cash amount
SHARE-BASED REMUNERATION
(SHORT-TERM BENEFITS)
COMPONENT
= Q
↑
Other Information
Basis of computation
Base remuneration has the effect of discouraging unduly high levels of risk being taken to achieve short-term targets, thus contributing to the long-term development of the Company
- Fixed remuneration components are a prerequisite for competitive levels of remuneration to attract and retain Board of Management members with the right qualifications
― € 1.28 million (from second period of office or fourth year of mandate)
-50% of target amount depends on ROCE achieved in the Automotive segment (ROCE component)
― € 2.115 million (Chairman of the Board of Management)
· € 1.152 million (from second period of office or fourth year of mandate)
- € 0.990 million (first period of office)
- Maximum amount of RoCE component p. a.:
― ROCE factor may not exceed 1.8
Minimum, target and maximum values for ROCE are defined before the start of the financial year
― € 2.35 million (Chairman of the Board of Management)
- ROCE factor is derived from the ROCE achieved in the Automotive segment for the grant year
― € 1.175 million (Chairman of the Board of Management)
― € 0.264 million (from second period of office or fourth year of mandate)
- € 0.55 million (first period of office)
- Target amount RoCE component p. a. (50% of target amount of the personal investment cash amount):
― Payment after the Annual General Meeting at which the Company Financial Statements are presented for the relevant financial year
- 50% of the target amount depends on the achievement of predefined strategic focus targets (strategic focus target component)
- Capped at 180 % of target amount
― Formula: 50% of target amount x RoCE factor
Current estimates and assumptions for the financial year
2022, to the extent already known, have been taken into
account and described in the outlook. However, the outlook
does not factor in a significant tightening of sanctions
against Russia and/or an escalation of the conflict outside
Ukraine. Similarly, additional major price hikes for energy
and raw materials, including rises triggered by the war in
Ukraine and/or the related sanctions, have not been taken
into account.
Chairman of the Board of Management: € 700,000
Pension contribution p. a.:
The fair value of the programmes for senior heads of depart-
ment at the date of grant of the share-based remuneration
components was € 1,317,984 (2020: € 987,759), based on a
total of 18,341 shares (2020: 13,444 shares) of BMW AG
common stock or a corresponding cash-based settlement
measured at the relevant market share price prevailing on
the grant date.
The previous year's value includes the fair value of the pro-
grammes at grant date as well as the shares granted to
members of the Board of Management.
42 Declaration with respect to the
Corporate Governance Code
The Board of Management and the Supervisory Board of
Bayerische Motoren Werke Aktiengesellschaft have issued
the prescribed Declaration of Compliance pursuant to § 161
of the German Stock Corporation Act. It is included in the
Corporate Governance Statement, which is on BMW Group
website at www.bmwgroup.com/entsprechenserklaerung.
223
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
43 Remuneration of members of the Board of
Management and Supervisory Board
The total remuneration of the current members of the Board
of Management and the Supervisory Board of BMW AG
expensed for the financial year 2021 in accordance with IFRS
comprised the following:
in € million
2021
Share-based remuneration component
0.6
1.1
tion of board activity
Benefits in conjunction with the termina-
3.9
The total expense recognised in 2021 for the share-based
remuneration component of current and former Board of
Management members and senior heads of department
was € 2,743,398 (2020: € 1,820,265).
8.5
16.9
35.3
Short-term benefits
Board of Management
Compensation to members of the
2020
Other long-term benefits
The total carrying amount of the provision for the share-
based remuneration component of current and former Board
of Management members and senior heads of department
at 31 December 2021 was € 8,347,245 (2020: € 6,383,766).
The cash-settlement obligation for the share-based remu-
neration component is measured at its fair value at the bal-
ance sheet date (based on the closing price of BMW AG
common stock in Xetra trading at 31 December 2021).
The remuneration system for Board of Management mem-
bers no longer provides for a matching component for finan-
cial years from 2021 onwards.
In the financial year under report, 1,718,070 (2020: 822,124)
shares of preferred stock were acquired by employees. This
figure includes 1,715,000 (2020: 822,000) shares out of
Authorised Capital 2019, with the remainder bought back via
the stock exchange. Every year the Board of Management of
BMW AG decides whether the scheme is to be continued.
In connection with the Employee Share Programme Share
Programme, non-voting shares of preferred stock in BMW AG
were granted in 2021 to qualifying employees at favourable
conditions (see note 31 Equity for the number and price of
issued shares). Participants in the programme were entitled
in 2021 to acquire packages of 10, 20, 30, 40 or 90 shares of
preferred stock (2020: 8, 18 or 28) with a discount in each
case of € 13.50 (2020: € 11.50) per share compared to the
market price (average closing price in Xetra trading in the
period from 28 October to 3 November 2021: € 74.28). The
programme was open to employees who have been in an
employment relationship with BMW AG or a wholly-owned
BMW AG subsidiary in Germany, provided that the manage-
ment of the subsidiary concerned has decided to participate
in the programme. At the date of the announcement of the
programme, there was a requirement for the employment
relationship to have existed without interruption for at least
one year and for it to continue until the transfer of the shares
of preferred stock. Shares of preferred stock acquired in con-
junction with the Employee Share Programme are subject to
a vesting period of four years, starting from 1 January of the
year in which the shares were acquired.
Employee Share Programme
The BMW Group provides three share-based programmes:
one for eligible employees, one for senior heads of depart-
ment and one for members of the Board of Management.
41 Share-based remuneration
← = Q
In the financial year 2021, the BMW Group recorded a per-
sonnel expense of € 23 million (2020: € 9 million) for the
Employee Share Programme, corresponding to the differ-
ence between the market price and the reduced price of the
shares of preferred stock purchased by employees.
Other Information
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
221
Remuneration Report
0.5
Programme for senior heads of department and members of the
Board of Management
With effect from the financial year 2021, the members of the
Board of Management receive an earmarked cash amount
(personal investment cash amount), net of taxes and deduc-
tions to be invested in BMW AG common stock. The personal
investment cash amount is paid after the end of the Annual
General Meeting, at which the separate financial statements
of BMW AG for the relevant financial year are presented. The
shares of common stock are purchased immediately after
the personal investment cash amount has been paid out,
and, with effect from the date of purchase, are subject to a
holding period of four years. The target amount for the per-
sonal investment cash amount comprises a ROCE compo-
nent (50%) and a strategic focus targets component (50%).
The RoCE component is determined on the basis of a RoCE
factor that depends on the RoCE achieved in the Automotive
segment in the grant year. The strategic focus targets com-
The share-based remuneration component is measured at
its fair value at each balance sheet date between grant and
settlement date, and on the settlement date. The amounts
are recognised as personnel expense on a straight-line basis
over the vesting period and reported in the balance sheet as
a provision.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
The share-based remuneration programme in place in 2021
for qualifying departmental heads is aimed at rewarding a
long-term, entrepreneurial approach to running the business
on a sustainable basis. Under the terms of the programme,
participants give a commitment to invest an amount equiva-
lent to 26% of their performance-based bonus in BMW com-
mon stock and to hold the shares so acquired for a minimum
of four years. In return for the investment requirement,
BMW AG pays 100% of the investment amount as a net
subsidy. Once the four-year holding period requirement has
been fulfilled, the participants receive - for each three com-
mon stock shares held and at the Company's option - one
additional share of common stock or the cash equivalent, to
be decided at BMW AG's discretion.
Combined Management Report
BMW Group Report 2021
222
The members of the Board of Management in office at the
end of the reporting period hold 58,560 shares of BMW
common stock based on holding requirements arising from
share-based remuneration for the financial years 2017 to
2020 (2020: 44,037).
In the event of death or invalidity, special rules apply for early
payment of share-based remuneration components based
on the target amounts. Insofar the service contract is prema-
turely terminated and the Company has an extraordinary
right of termination, or if the Board member resigns without
the Company's agreement, entitlements to amounts as yet
unpaid relating to share-based remuneration are forfeited.
Up to and including 2020, the members of the Board of
Management received an earmarked cash amount (invest-
ment component) amounting to 45% of the gross amount of
the bonus, which, net of taxes and deductions, was required
to be invested in BMW common stock, also subject to a four-
year holding period, after which the member of the Board of
Management received, at BMW AG's discretion, one addi-
tional share of common stock for every three shares held or,
alternatively, the equivalent value in cash (matching compo-
nent).
ponent is determined on the basis of at least two strategic
focus targets that are required to be defined before the start
of the financial year. Minimum, target and maximum values
are defined and factors stipulated for the Automotive seg-
ment's RoCE as well as for each strategic focus target. After
the end of the financial year, the relevant factors are deter-
mined on the basis of target achievement.
To Our Stakeholders
0.6
Compensation to members of the
Supervisory Board
FIXED REMUNERATION COMPONENTS
REMUNERATION BOARD OF MANAGEMENT AND SUPERVISORY BOARD
COMPONENT
and the Supervisory Board is structured as follows:
The remuneration of members of the Board of Management
Financial Statements
← = Q
(SHORT-TERM BENEFITS)
Other Information
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
224
Remuneration Report
No loans or advances were granted to members of the Board
of Management and the Supervisory Board by BMW AG or
its subsidiaries in the financial year 2021, nor were any con-
tingent liabilities entered into in their favour. During the year
under report, members of the Board of Management and the
Supervisory Board concluded vehicle leasing contracts and
related service contracts (service and repair) with BMW Group
entities at market conditions.
Base remuneration
Fringe benefits
Benefits based on amounts credited to individual savings accounts for contributions paid and interest earned, various forms of disbursement
The Supervisory Board may award payments to compensate for loss of salary from a previous employment relationship and to cover relocation costs in the case of new entrants.
Defined contribution system with a guaranteed minimum return
Contractual agreement, main points: non-cash benefits from the use of company cars and the BMW chauffeur service, insurance premiums, contributions towards security systems, em-
ployee discounts
― Monthly payment on time-apportioned basis
- € 1.95 million p. a.
Chairman of the Board of Management:
Parameters/measurement base, applicable amounts
― € 1.05 million p. a. (from second period of office or fourth year of mandate)
Member of the Board of Management:
Bonus
VARIABLE REMUNERATION COMPONENTS
(SHORT-TERM BENEFITS)
Remuneration linked to corporate strategy
Retirement benefits
(other long-term benefits)
Compensation payments
― € 0.90 million p. a. (first period of office)
Member of the Board of Management: € 400,000
* If a Supervisory Board member performs several additional remuneration-relevant functions, their re-
muneration is measured only on the basis of the function that is remunerated with the highest amount.
300,000
Supervisory Board members who perform remuneration-rel-
evant functions, such as the Chairman or Deputy Chairman
of the Supervisory Board, as well as chairs and members of
committees (provided the committee has met on at least
three days of the financial year) receive higher remuneration
due to the additional requirements.
In accordance with the Articles of Incorporation, each mem-
ber of the Supervisory Board of BMW AG who does not per-
form any additional remuneration-relevant functions receives
a fixed remuneration of € 200,000 p. a. plus an attendance
fee of € 2,000 per plenary meeting in addition to the reim-
bursement of reasonable expenses.
The remuneration arrangements applicable for members of
the Supervisory Board do not include any stock options,
value appreciation rights comparable to stock options or any
other share-based remuneration components.
Pension obligations to former members of the Board of Man-
agement and their surviving dependants, also determined in
accordance with IAS 19, amounted to € 114.3 million (2020:
€ 118.8 million).
Pension obligations to current members of the Board of
Management are covered by provisions amounting to
€ 18.9 million (2020: € 14.7 million), determined in accord-
ance with IAS 19.
The total remuneration of former members of the Board of
Management and their dependants amounted to € 14.2 mil-
lion (2020: € 13.1 million).
REMUNERATION SUPERVISORY BOARD*
The expense recognised for the current members of the
Board of Management for the share-based remuneration
arrangements in place up to and including 2020 amounted
to € 0.5 million (2020: € 0.6 million). At 31 December 2021,
the provision for the share-based remuneration component
amounted to € 1.6 million (2020: € 1.6 million).
27.6
50.9
5.6
5.5
Total expense
Current compensation
For the financial years 2018 up to and including the financial
year 2020, variable cash remuneration was supplemented
by a multi-year and future-oriented Performance Cash Plan
(PCP). The PCP assessment period comprises three years,
the grant year and the two subsequent years. The PCP is
paid out after the end of the three-year assessment period.
Chairman of another committee
Member of the Audit Committee
Member of another committee
Factor Amount in € p. a.
1.00
1.50
400,000
2.00
400,000
2.00
450,000
Member of the Supervisory Board
2.25
400,000
2.00
600,000
3.00
Chairman of the Supervisory Board
Deputy Chairman of the Supervisory Board
200,000
Chairman of the Audit Committee
Apart from this, no other events have occurred since the end
of the financial year which could have a major impact on the
results of operations, financial position and net assets of
BMW AG and the BMW Group.
- € 0.855 million (first period of office)
BMW Group Report 2021
Non-operating assets - Motorcycles
910
-257
Elimination of inter-segment items
35,769
36,910
40
not subject to interest
- 3
1
Financial result of Motorcycles segment
130,241
59,677
66,942
Non-operating assets - Automotive
Liabilities of Automotive segment
560
39
16,060
32,434
Total for reportable segments
132,062
136,113
Information by
Total liabilities - Financial Services
segment
Group profit before tax
non-current assets
Non-current assets
External revenues
782
735
Liabilities of Motorcycles segment not
subject to interest
5,222
Reconciliation of capital expenditure on
30,333
1,935
133,326
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
Other Information
230
Group
to Group figures
96,201
98,226
97,917
31. 12. 2020 31.12.2021
15,555
31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020
86,417 229,527 216,658
5,112
3,585
Financial result of Automotive segment
← = Q
The information disclosed for capital expenditure and depre-
ciation and amortisation relates to non-current property,
plant and equipment, intangible assets and leased products.
Reconciliation of segment assets
Total for reportable segments
3,755
14,381
Total for reportable segments
Reconciliation of segment result
31.12.2021 31.12.2020
The Other Entities' segment result includes interest and sim-
ilar income amounting to € 875 million (2020: € 1,169 mil-
lion) and interest and similar expenses amounting to
€ 974 million (2020: € 1,232 million).
in € million
2021
in € million
In the information by region, external revenues are based on
the location of the customer. The information disclosed for
non-current assets relates to property, plant and equipment,
intangible assets and leased products. Eliminations dis-
closed for non-current assets relate to leased products.
The reconciliation of segment figures to the corresponding
total Group figures shows the inter-segment items. Reve-
nues with other segments result mainly from the sale of
vehicles, for which the Financial Services segment has con-
cluded a financing or lease contract. Eliminations of
inter-segment items in the reconciliation to the Group profit
before tax, capital expenditure and depreciation and amorti-
sation mainly result from the sale of vehicles in the Automo-
tive segment, which are subsequently accounted for as
leased products in the Financial Services segment. In the
reconciliation of segment assets to Group assets, elimina-
tions relate mainly to intragroup financing balances.
Financial Statements
The total of the segment figures can be reconciled to the cor-
responding Group figures as follows:
2020
17,324
Non-operating assets - Other Entities
segment
2021
2,130
2,562
Other regions
18,151
17,027
Total for reportable segments
328
3,192
3,379
3,821
Rest of the Americas
tion on non-current assets
1,821
2,315
3,222
10,433
354
-5,269
* Prior year's figures adjusted
76,187
80,070
98,990
111,239
Group
Elimination of inter-segment items
11,976
on non-current assets
Total Group depreciation and amortisation
- 6,764
-7,317
Eliminations
- 6,175
11,758
region in E million
Germany
10,875
Reconciliation of depreciation and amortisa-
2021
41,202
308
21,315
25,333
China
7,007
- 148,919
-152,215
2020*
40,254
213
Elimination of inter-segment items
-6,451
Elimination of inter-segment items
7,676
13,638
14,206
2020
- 6,291
Rest of Asia
Total Group capital expenditure on
21,522
17,630
19,134
30,258
32,920
228
216,658
USA
229,527
24,042
25,983
non-current assets
19,487
20,878
17,837
Total Group assets
681
Rest of Europe
15,779
3,585
2021
2020
2021
2020
2021
2020
2020
2021
in € million
Group
Reconciliation
to Group figures
Other Entities
Financial Services
Motorcycles
External revenues
Automotive
2021
2021
12,747
18,303
Inter-segment revenues
98,990
111,239
1
2020
1
31,304
2,293
2,761
68,106
77,173
2020
28,590
-13
The result of the Financial Services segment was negatively
impacted by impairment losses totalling € 390 million (2020:
€ 362 million) recognised on leased products. Income from
the reversal of impairment losses on leased products
amounted to € 134 million (2020: € 126 million).
Segment information by operating segment is as follows:
Activities relating to the development, manufacture, assem-
bly and sale of motorcycles as well as spare parts and acces-
sories are reported in the Motorcycles segment.
Within the Automotive segment, the BMW Group develops,
manufactures, assembles and sells automobiles powered
with all-electric drive systems, plug-in hybrid systems and
highly efficient combustion engines, as well as spare parts,
accessories and mobility services under the BMW, MINI and
Rolls-Royce brands. BMW and MINI brand products are sold
in Germany through branches of BMW AG and by independ-
ent, authorised dealers. Sales outside Germany are handled
mainly by subsidiary companies and by independent import
companies in some markets. Rolls-Royce brand vehicles are
sold in selected markets via subsidiary companies and else-
where by independent, authorised dealers.
The activities of the BMW Group are broken down into the
operating segments Automotive, Motorcycles, Financial Ser-
vices and Other Entities.
For the purposes of presenting segment information, the
activities of the BMW Group are divided into operating seg-
ments in accordance with IFRS 8. The segmentation follows
the internal management and reporting system and takes
account of the organisational structure of the BMW Group
based on the various products and services of the reportable
segments.
45 Explanatory notes to segment information
Information on reportable segments
SEGMENT INFORMATION
Automobile leasing, retail and dealership financing, mul-
ti-brand fleet business, customer deposit business and
insurance activities are the main activities allocated to the
Financial Services segment.
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
619
Other Information
Write-downs on inventories to their net realisable value
amounting to € 41 million (2020: € 59 million) were recog-
nised by the Automotive segment in the financial year 2021.
The reversal of impairment losses had a positive impact of
€ 5 million (2020: € 2 million) on the segment result of the
Automotive segment.
Holding and Group financing companies are reported in the
Other Entities segment. This segment also includes the
operating companies BMW (UK) Investments Ltd. and
Bavaria Lloyd Reisebüro GmbH, which are not allocated to
one of the other segments.
Segment information is prepared as a general rule in con-
formity with the accounting policies adopted for preparing
and presenting the Group Financial Statements. Exceptions
to this general principle include the treatment of inter-seg-
ment warranties, the earnings impact of which is allocated to
the Automotive and Financial Services segments on the
basis used internally to manage the business. In addition,
intragroup repurchase agreements between the Automotive
and Financial Services segments pursuant to IFRS 15,
impairment allowances on intragroup receivables and
changes in the value of consolidated other investments pur-
suant to IFRS 9 are also excluded. Intragroup leasing
arrangements are not reflected in the internal management
and reporting system on an IFRS 16 basis and therefore, in
The success of the Other Entities segment is assessed on
the basis of profit or loss before tax. The corresponding
measure of segment assets used to manage the Other Enti-
ties segment is total assets less asset-side income tax items
and intragroup investments.
The success of the Financial Services segment is measured
on the basis of return on equity (RoE). Profit before tax there-
fore represents the relevant measure of segment earnings.
The measure of segment assets in the Financial Services
segment corresponds to net assets, defined as total assets
less total liabilities.
← = Q
Other Information
Remuneration Report
Corporate Governance
Internal management and reporting
Group Financial Statements
Notes to the Group
Financial Statements
To Our Stakeholders
BMW Group Report 2021
229
The Automotive and Motorcycles segments are managed on
the basis of return on capital employed (ROCE). The relevant
measure of segment results used is therefore profit before
financial result. Capital employed is the corresponding meas-
ure of segment assets used to determine how to allocate
resources and comprises all current and non-current opera-
tional assets after deduction of liabilities used operationally
which are generally not subject to interest (e. g. trade payables).
The role of "chief operating decision maker" with respect to
resource allocation and performance assessment of the
reportable segment is embodied in the full Board of Man-
agement. For this purpose, different measures of segment
performance as well as segment assets are taken into
account in the operating segments.
accordance with IFRS 8, do not give rise to any changes in
the presentation of segment information. Inter-segment
receivables and payables, provisions, income, expenses and
profits are eliminated upon consolidation. Inter-segment
revenues are based on market prices. Centralised cost com-
ponents are included in the respective segments, without
resulting in cash settlement.
Combined Management Report
- 9
With effect from the reporting year 2022, a simplified defini-
tion of capital employed will be applied to make the RoCE
calculation more comprehensible and transparent for users.
Further information is provided in the section "Managing
operational performance at segment level" within the Com-
bined Management Report.
1,454
-6,451
-5,269
12,054
10,567
119
119
5,978
- 6,291
6,341
24,146
24,936
146
169
6,041
7,329
Depreciation and amortisation on non-current assets
Capital expenditure on non-current assets
25,983
-6,175
17,466
5,112
1,563
31. 12. 2020 31.12.2021
31. 12. 2020 31.12.2021
31.12.2021
Other Entities
24,042
Financial Services
Automotive
Reconciliation
Investments accounted for using the equity method
Segment assets
11,976
11,758
Motorcycles
920
in € million
920
- 19,857
3
5
30,044
32,867
2,284
-14,194 111,239
80,853
Total revenues
- 14,194
- 19,857
1,520
4
2
95,476
98,990
2,748
9,870
16,060
1,467
1,679
Segment result
- 235
5,222
531
3,753
Result from equity accounted investments
103
227
2,162
1,725
1,520
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Equity in € million
100
Bavarian Sky UK 4 plc, London 11
Bavarian Sky S. A., Compartment German Auto Leases 5, Luxembourg 11
Bavarian Sky S. A., Compartment German Auto Leases 6, Luxembourg
Bavarian Sky S. A., Compartment German Auto Loans 10, Luxembourg 11
Bavarian Sky S. A., Compartment German Auto Loans 9, Luxembourg 11
Bavarian Sky UK 3 plc, London 11
Profit / loss in € million Capital investment in %
0
11
0
Bavarian Sky S. A., Compartment B, Luxembourg 11
0
0
Bavarian Sky FTC, Compartment French Auto Leases 4, Paris 11
Bavarian Sky S. A., Compartment A, Luxembourg 11
Profit / loss in € million Capital investment in %
Companies
= Q
↑
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
235
0
100
Equity in € million
Group Financial Statements
Notes to the Group
Triumph Motor Company Ltd., Farnborough
← = Q
Other Information
Remuneration Report
Corporate Governance
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
234
100
100
Financial Statements
100
100
100
100
100
100
100
100
0
100
100
100
Bavarian Sky Europe S. A. Compartment A, Luxembourg 11
Companies
BMW France S. A., Montigny-le-Bretonneux
The British Motor Corporation Ltd., Birmingham
Swindon Pressings Ltd., Farnborough
Riley Motors Ltd., Farnborough
Park Lane Ltd., Farnborough
Oy BMW Suomi AB, Helsinki
BMW Vertriebs GmbH, Salzburg
BMW Slovenská republika s. r.o., Bratislava
BMW Slovenia distribucija motornih vozil d. o.o., Ljubljana
BMW Services Ltd., Farnborough
BMW Romeania S. R.L., Bucharest
BMW Financial Services Scandinavia AB, Sollentuna
BMW Renting (Portugal) Lda., Porto Salvo
BMW Northern Europe AB, Stockholm
BMW Norge AS, Fornebu
BMW Nederland B. V., The Hague
BMW Malta Ltd., Floriana
BMW Madrid S. L., Madrid
BMW Italia S. p.A., San Donato Milanese
BMW Italia Retail S. r.I., Rome
BMW International Investment B. V., The Hague
BMW Iberica S. A., Madrid
BMW Hungary Kft., Vecsés ⁹
BMW Portugal Lda., Porto Salvo
0
BMW Receivables Ltd. Partnership, Richmond Hill, Ontario
0
Equity in € million
BMW Canada Auto Trust 2019-1, Richmond Hill, Ontario 11
BMW Canada Auto Trust 2020-1, Richmond Hill, Ontario¹
BMW 2020- A Lease Conduit, Wilmington, Delaware 11
BMW 2021- A Lease Conduit, Wilmington, Delaware 11
BMW Canada 2018-A, Richmond Hill, Ontario 11
SB Acquisitions LLC, Wilmington, Delaware
Rolls-Royce Motor Cars NA LLC, Wilmington, Delaware
BMW US Capital LLC, Wilmington, Delaware
BMW SLP, S. A. de C. V., Villa de Reyes
BMW Receivables 2 Inc., Richmond Hill, Ontario
BMW Receivables 1 Inc., Richmond Hill, Ontario
BMW of Manhattan Inc., Wilmington, Delaware
Profit / loss in € million Capital investment in %
BMW Manufacturing LP, Woodcliff Lake, New Jersey
BMW Leasing do Brasil S. A., São Paulo
BMW Insurance Agency Inc., Wilmington, Delaware
BMW FS Securities LLC, Wilmington, Delaware
BMW FS Receivables Corporation, Wilmington, Delaware
BMW FS Funding Corporation, Wilmington, Delaware
BMW Financial Services NA LLC, Wilmington, Delaware
BMW Financial Services de Mexico S. A. de C. V. SOFOM, Mexico City
BMW Financeira S. A. Credito, Financiamento e Investimento, São Paulo
BMW Facility Partners LLC, Wilmington, Delaware
BMW Extended Service Corporation, Wilmington, Delaware
BMW Manufacturing Indústria de Motos da Amazônia Ltda., Manaus
BMW do Brasil Ltda., Araquari
100
100
☐
| |
0
0
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Companies
Financial Statements
← = Q
698
Financial Services Vehicle Trust, Wilmington, Delaware
100
948
BMW of North America LLC, Wilmington, Delaware
100
202
1,473
100
389
405
2,042
The Americas 10
0
0
0
0
Bavarian Sky UK D Ltd., London"
Bavarian Sky UK C Ltd., London 11
Bavarian Sky UK B Ltd., London 11
Bavarian Sky UK A Ltd., London 11
0
BMW Manufacturing Co. LLC, Wilmington, Delaware
BMW Bank of North America Inc., Salt Lake City, Utah
100
BMW Canada Inc., Richmond Hill, Ontario
663
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
236
100
100
100
100
I
BMW de Mexico S. A. de C. V., Mexico City
BMW de Argentina S. A., Buenos Aires
BMW Consolidation Services Co. LLC, Wilmington, Delaware
BMW Auto Leasing LLC, Wilmington, Delaware
100
BMW Acquisitions Ltda., São Paulo
100
BMW (US) Holding Corp., Wilmington, Delaware
100
324
0
100
549
100
Equity in € million
Europe
FOREIGN²
Companies
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
Profit / loss in € million Capital investment in %
To Our Stakeholders
232
51
100
100
100
100
100
100
100
100
BMW Group Report 2021
100
BMW Holding B. V., The Hague
2,049
BMW Hellas Trade of Cars A. E., Kifissia
100
8
879
BMW (Schweiz) AG, Dielsdorf
100
192
937
BMW Motoren GmbH, Steyr
100
17,535
488
BMW Financial Services (GB) Ltd., Farnborough
100
1,167
3,286
BMW Österreich Holding GmbH, Steyr
100
2,185
4,055
BMW International Holding B. V., The Hague
100
1,116
806
100
100
BMW High Power Charging Beteiligungs GmbH, Munich 4,6
BMW Hams Hall Motoren GmbH, Munich 4,5,6
BMW Finanz Verwaltungs GmbH, Munich
BMW Anlagen Verwaltungs GmbH, Munich 3,6
BMW Vertriebszentren Verwaltungs GmbH, Munich
Parkhaus Oberwiesenfeld GmbH, Munich
Alphabet Fuhrparkmanagement GmbH, Munich 4
Alphabet International GmbH, Munich 4,5,6
Bavaria Wirtschaftsagentur GmbH, Munich 3,5,6
BMW Fahrzeugtechnik GmbH, Eisenach 3,5,6
Munich 3
BMW Beteiligungs GmbH & Co. KG, Munich 6
BMW INTEC Beteiligungs GmbH, Munich 3,6
BMW Bank GmbH,
DOMESTIC 1, 10
46 List of investments at 31 December 2021
The List of Investments of BMW AG pursuant to § 285 and
§ 313 HGB is presented below. Disclosures for equity and
earnings and for investments are not made if they are of "mi-
nor significance" for the results of operations, financial posi-
tion and net assets of BMW AG pursuant to § 286 (3) sen-
tence 1 no. 1 HGB and § 313 (3) sentence 4 HGB. It is also
shown in the list which subsidiaries apply the exemptions
available in § 264 (3) and § 264 b HGB with regard to the
publication of annual financial statements and the drawing
up of a management report and/or notes to the financial
statements (footnotes 5 and 6). The Group Financial State-
ments of BMW AG serve as exempting consolidated finan-
cial statements for these companies.
Companies
AFFILIATED COMPANIES (SUBSIDIARIES) OF BMW AG AT 31 DECEMBER 2021
AT 31 DECEMBER 2021
BMW M GmbH Gesellschaft für individuelle Automobile, Munich 3,5,6
LIST OF INVESTMENTS
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
231
0
Financial Statements
100
BMW Vermögensverwaltungs GmbH, Munich
LARGUS Grundstücks-Verwaltungsgesellschaft mbH, Munich
27
106
100
4
173
100
179
100
3
213
Bürohaus Petuelring GmbH, Munich
100
2,075
100
4,515
100
1,494
8,390
Profit / loss in € million Capital investment in %
Equity in € million
BAVARIA-LLOYD Reisebüro GmbH, Munich
Rolls-Royce Motor Cars GmbH, Munich 4,5,6
251
5
100
BMW i Ventures SCS SICAV-RAIF, Senningerberg
BMW (UK) Manufacturing Ltd., Farnborough
BMW (UK) Investments Ltd., Farnborough
BMW (UK) Capital plc, Farnborough
BLMC Ltd., Farnborough
BiV Carry II SCS, Senningerberg⁹
BiV Carry ISCS, Senningerberg
Bavaria Reinsurance Malta Ltd., Floriana
Alphabet Polska Fleet Management Sp. z o. o., Warsaw
Alphabet Nederland B. V., Breda
Alphabet Luxembourg S. A., Leudelange
BMW Austria GmbH, Salzburg
Companies
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
233
100
Financial Statements
100
BMW Austria Leasing GmbH, Salzburg
BMW Bank 000, Moscow
100
100
100
100
100
100
100
100
100
100
BMW Automotive (Ireland) Ltd., Dublin
Profit / loss in € million Capital investment in %
BMW Financial Services Belgium S. A./ N. V., Bornem
BMW Financial Services Denmark A/S, Copenhagen
BMW Financial Services Polska Sp. z o. o., Warsaw
BMW Financial Services B. V., The Hague
BMW Financial Services (Ireland) DAC, Dublin
BMW España Finance S. L., Madrid
BMW Distribution S. A.S., Vélizy-Villacoublay
BMW Danmark A/S, Copenhagen
BMW Czech Republic s. r.o., Prague
BMW Central Medical Trustees Ltd., Farnborough
BMW Bulgaria EOOD, Sofia
BMW Belgium Luxembourg S. A./ N. V., Bornem
Equity in € million
100
I
100
97
251
ALPHABET (GB) Ltd., Farnborough
BMW (UK) Ltd., Farnborough
BMW Austria Bank GmbH, Salzburg
BMW Finance S. N.C., Guyancourt
BMW Finance N. V., The Hague
100
313
315
100
BMW Russland Trading 000, Moscow
779
316
BMW (UK) Holdings Ltd., Farnborough
100
19
417
Alphabet España Fleet Management S. A.U., Madrid
100
387
515
100
251
46
100
100
Alphabet Italia S. p.A., Trento
Alphabet Fuhrparkmanagement (Schweiz) AG, Dielsdorf
Alphabet France Fleet Management S. A.S., Saint-Quentin-en-Yvelines
Alphabet Belgium Long Term Rental NV, Aartselaar
Alphabet Austria Fuhrparkmanagement GmbH, Salzburg
100
19
118
100
92
132
BMW Finanzdienstleistungen (Schweiz) AG, Dielsdorf
Rolls-Royce Motor Cars Ltd., Farnborough
100
189
181
100
82
198
100
8
203
100
0
100
237
← = Q
Companies
Bavarian Sky China Leasing 2021-1, Tianjin
11
Bavarian Sky Korea 2021-1, Seoul 11
Oceania
BMW Australia Finance Ltd., Mulgrave
BMW Australia Ltd., Melbourne
BMW Financial Services New Zealand Ltd., Auckland
BMW Melbourne Pty. Ltd., Melbourne
BMW New Zealand Ltd., Auckland
BMW Sydney Pty. Ltd., Sydney
Bavarian Sky Australia Trust A, Mulgrave 11
BMW Australia Trust 2011-2, Mulgrave 11
Equity in € million
Profit / loss in € million Capital investment in %
0
0
100
100
100
100
100
100
0
Other Information
0
Remuneration Report
Group Financial Statements
Notes to the Group
Financial Statements
100
100
51
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
239
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Corporate Governance
100
240
To Our Stakeholders
BMW Financial Services Czech Republic s. r.o., Prague
BMW Financial Services Slovakia s. r.o., Bratislava
BMW Group Benefit Trust Ltd., Farnborough
BMW Manufacturing Hungary Kft., Debrecen
BMW Manufacturing Russland 000, Kaliningrad
BMW Mobility Development Center s. r.o., Prague
BMW Motorsport Ltd., Farnborough
BMW Poland sp. z o. o., Warsaw
BMW Russland Automotive 000, Kaliningrad
John Cooper Garages Ltd., Farnborough
John Cooper Works Ltd., Farnborough
000 BMW Leasing, Moscow
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
0
BMW Drivers Club Ltd., Farnborough
BMW Group Report 2021
BMW China Capital B. V., The Hague
BMW (UK) Pensions Services Ltd., Hams Hall
Combined Management Report
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
Other Information
← = Q
Financial Statements
BMW AG'S NON-CONSOLIDATED COMPANIES AT 31 DECEMBER 2021
Companies
DOMESTIC'
Alphabet Fleetservices GmbH, Munich 4
Automag GmbH, Munich
BMW Car IT GmbH, Munich'
BMW i Ventures GmbH, Munich
IDEALworks GmbH, Munich
Equity in € million
Profit / loss in € million Capital investment in %
100
100
100
100
100
Europe
Alphabet Insurance Services Polska Sp. z o. o., Warsaw
BMW (GB) Ltd., Farnborough
BMW Car Club Ltd., Farnborough
100
FOREIGN7
100
306
58
BMW China Investment Ltd., Beijing⁹
559
559
100
BMW Japan Finance Corp., Tokyo
527
66
100
BMW Financial Services Korea Co. Ltd., Seoul
279
71
100
BMW Korea Co. Ltd., Seoul
269
119
100
Herald International Financial Leasing Co. Ltd., Tianjin
210
51
58
BMW Japan Corp., Tokyo
128
100
2,561
100
BMW Automotive Finance (China) Co. Ltd., Beijing
0
BMW Group Report 2021
100
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
Remuneration Report
Other Information
Companies
BMW Canada Auto Trust 2021-1, Richmond Hill, Ontario 11
BMW Vehicle Lease Trust 2021-2, Wilmington, Delaware11
BMW Vehicle Lease Trust 2021-1, Wilmington, Delaware 11
BMW Vehicle Owner Trust 2019-A, Wilmington, Delaware¹¹
BMW Vehicle Owner Trust 2020-A, Wilmington, Delaware¹¹
↑
= Q
Equity in € million
Profit / loss in € million Capital investment in %
0
0
0
0
0
Africa
BMW Financial Services (South Africa) (Pty) Ltd., Midrand
BMW (South Africa) (Pty) Ltd., Pretoria
13
100
100
SuperDrive Investments (RF) Ltd., Cape Town¹¹
Asia
BMW Manufacturing (Thailand) Co. Ltd., Rayong
104
94
BMW India Financial Services Private Ltd., Gurgaon
BMW India Private Ltd., Gurgaon
BMW Lease (Malaysia) Sdn Bhd, Kuala Lumpur
BMW Leasing (Thailand) Co. Ltd., Bangkok
BMW Tokyo Corp., Tokyo
PT BMW Indonesia, Jakarta
BMW Malaysia Sdn Bhd, Kuala Lumpur
2017-3 ABL, Tokyo 11
2018-1 ABL, Tokyo 11
2018-2 ABL, Tokyo 11
2018-3 ABL, Tokyo 11
2019-1 ABL, Tokyo 11
2019-2 ABL, Tokyo 11
BMW Holding Malaysia Sdn Bhd, Kuala Lumpur
2019-3 ABL, Tokyo 11
2021-2 ABL, Tokyo 11
Bavarian Sky China 2019-2, Beijing 11
Bavarian Sky China 2019-3, Beijing 11
Bavarian Sky China 2020-1, Beijing 11
Bavarian Sky China 2020-2, Beijing
Bavarian Sky China 2021-1, Beijing
11
Bavarian Sky China 2021-2, Beijing 11
Bavarian Sky China 2021-3, Beijing 11
Bavarian Sky China Leasing 2020-1, Tianjin 11
Equity in € million
116
Profit / loss in € million Capital investment in %
100
2021-1 ABL, Tokyo 11
Companies
2020-1 ABL, Tokyo 11
BMW Asia Technology Centre Sdn Bhd, Kuala Lumpur
100
BMW Asia Pte. Ltd., Singapore
I
100
100
BMW China Automotive Trading Ltd., Beijing
BMW China Services Ltd., Beijing
100
Financial Statements
100
BMW Asia Pacific Capital Pte Ltd., Singapore
BMW Credit (Malaysia) Sdn Bhd, Kuala Lumpur
BMW (Thailand) Co. Ltd., Bangkok
238
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
100
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
Other Information
← = Q
100
100
242
100
100
100
100
BMW Group Report 2021
BMW Automobile Distributors (Pty) Ltd., Midrand
BPF Midrand Property Holdings (Pty) Ltd., Midrand
Multisource Properties (Pty) Ltd., Midrand
Combined Management Report
Group Financial Statements
Notes to the Group
Corporate Governance
Remuneration Report
100
Other Information
← = Q
To Our Stakeholders
100
BMW Insurance Services Korea Co. Ltd., Seoul
100
Asia
Africa
Companies
BMW Finance (United Arab Emirates) Ltd., Dubai
BMW Financial Services Singapore Pte Ltd., Singapore
BMW Hong Kong Services Ltd., Hong Kong
BMW India Foundation, Gurgaon
BMW India Leasing Private Ltd., Gurgaon
100
BMW Middle East Retail Competency Centre DWC-LLC, Dubai
BMW Parts Manufacturing (Thailand) Co., Ltd., Rayong Province
BMW Technology Office Israel Ltd., Tel Aviv
100
100
100
100
100
BMW Mobility Services Ltd., Sichuan Tianfu New Area (Chengdu Section)
Financial Statements
Representatives
THEPSATRI Co. Ltd., Bangkok
CORPORATE
267 Independent Practitioner's Report
259 Independent Auditor's Report
258 Responsibility Statement by the Company's Legal
256 Overview of Supervisory Board Committees and their
Composition
255 Outgoing Members of the Supervisory Board
252 Current Members of the Supervisory Board
251 Outgoing Members of the Board of Management
251 Current Members of the Board of Management
250 Declaration of Compliance
250 Shareholders and Annual General Meeting
249 Supervisory Board
100
248 Information on the Company's Governing Constitution
248 Board of Management
GOVERNANCE
248
BMW Group Report 2021
To Our Stakeholders
major proceedings. The Supervisory Board is not, however,
authorised to undertake management measures itself.
BMW Financial Services Hong Kong Ltd., Hong Kong
Equity in € million
Profit / loss in € million Capital investment in %
INFORMATION ON THE
Governance).
The Board of Management and the Supervisory Board re-
port below on the main features of corporate governance.
A detailed report on corporate governance can be found in
the Statement on Corporate Governance, available at
www.bmwgroup.com/statement on corporate governance (Corporate
Herald Hezhong (Beijing) Automotive Trading Co. Ltd., Beijing
Good corporate governance acting in accordance with
the principles of responsible management aimed at cre-
ation of value on a sustainable basis - is an essential re-
quirement for the BMW Group, embracing all areas of the
business. Transparent reporting and corporate communi-
cation, corporate governance that is aligned with the inter-
ests of all stakeholders, cooperation based on trust be-
tween the Board of Management, Supervisory Board and
employees, and compliance with applicable law are essen-
tial cornerstones of the corporate culture within the
BMW Group.
FUNDAMENTAL ASPECTS OF CORPORATE GOVERNANCE
(PART OF THE COMBINED MANAGEMENT REPORT)
← = Q
Other Information
Remuneration Report
Corporate Governance
Fundamental Aspects of
Corporate Governance
Group Financial Statements
Combined Management Report
-
100
The composition of the Presiding Board and the committees
is based on legal requirements, the Articles of Incorporation,
the rules of procedure and corporate governance principles,
particularly taking into account the professional expertise of
their members.
100
BMW AG ensures that the Supervisory Board and its com-
mittees are appropriately equipped to carry out their duties.
This includes providing a central Supervisory Board office to
support the chairpersons in their coordination work.
Taking into account the specific circumstances of the
BMW Group and the number of Board members, the Super-
visory Board has set up a Presiding Board and four commit-
tees, namely the Personnel Committee, the Audit Commit-
tee, the Nomination Committee and the Mediation
Committee. These serve to raise the effectiveness of the Su-
pervisory Board's work and facilitate the handling of com-
plex issues.
The Supervisory Board has stated specific targets for its
composition, agreed to a diversity concept and determined a
competency profile. Members of the Supervisory Board are
responsible for undertaking any training required for the per-
formance of their duties, appropriately assisted by the
Company.
the Chairman. The findings and conclusions resulting from
this self-assessment process are subsequently discussed in
plenary.
The Supervisory Board regularly assesses the effectiveness
of its activities and the activities carried out by its commit-
tees by means of a questionnaire as well as discussions with
The members of the Supervisory Board are required to re-
port any conflicts of interest immediately to the Chairman of
the Supervisory Board. The Supervisory Board reports on
the handling of such conflicts of interest to the Annual Gen-
eral Meeting. Conflicts of interest requiring to be disclosed
include, in particular, conflicts of interest that may result from
a directorship function or advisory role with clients, suppli-
ers, lenders or other business partners. If a Supervisory
Board member has significant and non-temporary conflicts
of interest, this will lead to the termination of the mandate.
Members of the Supervisory Board of BMW AG are obliged
to act in the best interest of the enterprise as a whole. They
may not pursue personal interests in their decisions or take
advantage of business opportunities intended for the benefit
of the Company.
reasons.
BMW AG's Supervisory Board is composed of ten share-
holder representatives (elected by the Annual General Meet-
ing) and ten employee representatives (elected in accord-
ance with the Co-Determination Act). The ten Supervisory
Board members representing employees comprise seven
Company employees, including one executive staff repre-
sentative, and three members elected following nomination
by unions. The Supervisory Board is charged with the task of
advising and supervising the Board of Management in its
management of BMW AG. It is involved in decisions of fun-
damental importance for BMW AG. The Supervisory Board
appoints the members of the Board of Management and
decides upon the level of remuneration they receive. The
Supervisory Board can revoke appointments for important
SUPERVISORY BOARD
Governance).
More information about the composition of the Board of
Management, and how it operates and its individual commit-
tees is provided in the Statement on Corporate Governance
at www.bmwgroup.com/statement on corporate governance (Corporate
The Board of Management has issued terms of procedure for
itself. The allocation of areas of responsibility and business
segments among the members of the Board of Management
is set out in the Board's Schedule of Responsibilities.
Deliberations are held and decisions taken by the Board of
Management as a collegiate body at full. Board meetings as
well as at "Product and Customer Board Meetings". The
Board of Management also deliberates and makes decisions
at meetings of its three committees "Customer", "Oper-
ations" and "Senior Executives". The overall framework for
developing business strategies, the use of resources, the im-
plementation of strategies and matters of particular impor-
tance to BMW AG are decided upon at Board of Management
meetings.
Members of the Board of Management are required to act in
the enterprise's best interests and may not pursue personal
interests in their decisions or take advantage of business op-
portunities intended for the benefit of the Company. Individual
members of the Board of Management of BMW AG are re-
quired to disclose any conflicts of interest to the Supervisory
Board without delay, and to inform the other members of the
Board of Management accordingly.
More information about the composition of the Supervisory
Board, and how it operates and its individual committees, is
provided in the Statement on Corporate Governance at
7 www.bmwgroup.com/statement on corporate governance.
7 GRI-Index: 102-23
250
BMW Group Report 2021
The Board of Management and the Supervisory Board of
BMW AG issue an annual Declaration of Compliance pursu-
ant to §161 of the German Stock Corporation Act (AktG) with
regard to recommendations of the Government Commission
on the German Corporate Governance Code as officially pub-
lished and valid at the date of the declaration. The current
and previous Declarations of Compliance of BMW AG are
available online at www.bmwgroup.com/compliance declaration. In
the Declaration of Compliance issued in December 2021, the
Board of Management and the Supervisory Board declared
that BMW Group would continue to comply with all recom-
mendations of the German Corporate Governance Code
(version dated 16 December 2019) going forward.
248 Fundamental Aspects of Corporate Governance
(Part of the Combined Management Report)
structions to Company representatives or by postal vote
(both in writing and online).
Due to the Covid-19 pandemic, the 2021 Annual General
Meeting was held as a virtual meeting, i. e. without share-
holders and proxies being physically present with the excep-
tion of the Company representatives bound by instructions
issued by shareholders. The Company enabled shareholders
in this situation to exercise their voting rights by issuing in-
Shareholders may exercise their voting rights at the Annual
General Meeting either in person, by proxy, or via a repre-
sentative designated by BMW AG. Voting rights may also be
exercised via postal vote.
Moreover, the remuneration systems for members of the
Board of Management and the Supervisory Board are pre-
sented to the Annual General Meeting for approval whenever
they undergo significant changes, but at least every four
years. They were last presented at the 2021 Annual General
Meeting. From the 2022 Annual General Meeting onwards,
the Annual General Meeting will also vote on whether to ap-
prove the Remuneration Report.
The shareholders of BMW AG exercise their rights at the An-
nual General Meeting. The Annual General Meeting decides
in particular on the utilisation of unappropriated profit, the
ratification of the activities of the members of the Board of
Management and of the Supervisory Board, the appoint-
ment of the external auditor, changes to the Articles of Incor-
poration and certain capital-related measures, as well as
electing the shareholders' representatives to the Supervis-
ory Board.
all provisions of law and internal regulations are complied
with. You can find more details about compliance at
BMW Group in the section Compliance and human rights at
BMW Group. The Board of Management is responsible for
ensuring that appropriate risk management, risk controlling
and compliance management systems are in place through-
out the Company.
ANNUAL GENERAL
MEETING
← = Q
Other Information
Remuneration Report
Corporate Governance
Fundamental Aspects of
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
SHAREHOLDERS AND
100
← = Q
Remuneration Report
Equity in € million
Profit / loss in € million Capital investment in %
The Americas
217-07 Northern Boulevard Corporation, Wilmington, Delaware
BMW Experience Centre Inc., Richmond Hill, Ontario
BMW i Ventures Inc., Wilmington, Delaware
BMW i Ventures LLC, Wilmington, Delaware
BMW Mobility Services LLC, Wilmington, Delaware
BMW Operations Corp., Wilmington, Delaware
BMW Shared Services LLC, Wilmington, Delaware
BMW Technology Corp., Wilmington, Delaware
Designworks/USA Inc., Newbury Park, California
MINI Business Innovation LLC, Wilmington, Delaware
Toluca Planta de Automoviles S. A. de C. V., Mexico City
Urban X Accelerator SPV LLC, Wilmington, Delaware
100
100
100
100
100
100
100
100
Companies
← = Q
Other Information
Remuneration Report
Corporate Governance
Fundamental Aspects of
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
249
In accordance with §7 of the Articles of Association, the
Board of Management of BMW AG comprises two or more
persons; other than that, the number of members of the
Board of Management is determined by the Supervisory
Board. At 31 December 2021, the Board of Management
comprised seven members. The Board of Management de-
cides on the principal guidelines for managing the enter-
prise, determines and agrees upon the strategic orientation
with the Supervisory Board, and ensures its implementation.
The Board of Management is responsible for ensuring that
Other Information
The Board of Management manages the enterprise under its
own responsibility, acting in the best interests of the enter-
prise with the aim of achieving sustainable creation of value.
The interests of shareholders, employees and other stake-
holders are also taken into account in the pursuit of this aim.
7 GRI 102-43
The close interaction between the Board of Management
and the Supervisory Board in the interests of the enterprise
as described above is also known as a "two-tier board
structure".
241
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Notes to the Group
Financial Statements
Corporate Governance
BOARD OF MANAGEMENT
← = Q
Spotlight Automotive Ltd., Zhangjiagang 8
Remuneration Report
50
50
50
7
30
- 108
1,090
BMW Albatha Finance PSC, Dubai
Bavarian & Co Co. Ltd., Incheon
FOREIGN
PDB - Partnership for Dummy Technology and Biomechanics GbR, Gaimersheim
The Retail Performance Company GmbH, Munich
Encory GmbH, Unterschleißheim
DOMESTIC
Not equity accounted or proportionately consolidated entities
20
FOREIGN
20
244
Equity in € million Profit loss in € million Capital investment in %
Critical TechWorks S. A., Porto
BMW AVTOTOR Holding B. V., Amsterdam
BMW ArcherMind Information Technology Co. Ltd., Nanjing
BMW Albatha Leasing LLC, Dubai
Companies
Financial Statements
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
40
Joint operations - proportionately consolidated entities
Solid Power, Inc., Wilmington, Delaware
THERE Holding B. V., Amsterdam 8
Financial Statements
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
243
51
70
100
DECLARATION OF
COMPLIANCE
100
BMW AG'S ASSOCIATED COMPANIES, JOINT VENTURES AND JOINT OPERATIONS AT 31 DECEMBER 2021
Companies
Joint ventures - equity accounted
DOMESTIC
FOREIGN
Associated companies - equity accounted
50
3,596
11,176
BMW Brilliance Automotive Ltd., Shenyang 8
FOREIGN
40
20
209
50
-337
897
Equity in € million Profit / loss in € million Capital investment in %
IONITY Holding GmbH & Co. KG, Munich 8
YOUR NOW Holding GmbH, Munich 8
-35
50
50
50
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
246
3
18
9
10
6
17
10
22
16
Remuneration Report
Other Information
← = Q
Munich, 8 March 2022
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
247
Frank Weber
3
Dr.-Ing. Joachim Post
Pieter Nota
Dr.-Ing. Milan Nedeljković
Ilka Horstmeier
Oliver Zipse
The Board of Management
Aktiengesellschaft
Bayerische Motoren Werke
Dr. Nicolas Peter
Other Information
5
10 Deconsolidation in the financial year 2021: BMW Verwaltungs GmbH (merger), BMW Leasing de Mexico S. A. de C. V. (merger).
IVM Industrie-Verband Motorrad GmbH & Co. Dienstleistungs KG, Essen
Hubject GmbH, Berlin
GSB Sonderabfall-Entsorgung Bayern GmbH, Baar-Ebenhausen
Deutsches Forschungszentrum für Künstliche Intelligenz GmbH, Kaiserslautern
DOMESTIC
Companies
BMW AG'S PARTICIPATIONS AT 31 DECEMBER 2021
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Notes to the Group
Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
245
Joblinge gemeinnützige AG Berlin, Berlin
Joblinge gemeinnützige AG Leipzig, Leipzig
Joblinge gemeinnützige AG Munich, Munich
Mobimeo GmbH, Berlin
9 First-time consolidation.
The amounts shown for entities accounted for using the equity method and for proportionately consolidated entities correspond to the annual financial statements drawn up in accordance with uniform IFRS rules.
Equity not denominated in euro is translated into euro using the closing exchange rate at the balance sheet date, earnings are translated using the average rate.
7 These entities are neither consolidated nor accounted for using the equity method due to their overall immateriality for the Group Financial Statements.
6 Exemption from publication of financial statements applied in accordance with § 264 (3) and § 264b HBG.
5 Exemption from drawing up a management report applied in accordance with § 264 (3) and § 264b HBG.
4 Profit and Loss Transfer Agreement with a subsidiary of BMW AG.
3 Profit and Loss Transfer Agreement with BMW AG.
11 Control on basis of economic dependence.
2 The amounts shown for the foreign affiliated companies correspond to the annual IFRS statements drawn up in accordance with uniform IFRS rules. Equity and earnings not denominated in euro are translated in
euro using the closing exchange rate at the balance sheet date.
Equity in € million Profit / loss in € million Capital investment in %
= Q
↑
Northvolt AB, Stockholm
FOREIGN
SGL Carbon SE, Wiesbaden
Racer Benchmark Group GmbH, Landsberg am Lech
1 The amounts shown for the German affiliated companies correspond to the annual financial statements drawn up in accordance with German accounting rules (HGB).
Further information on corporate management and govern-
ance, including the Declaration of Compliance pursuant to
§161 of the German Stock Corporation Act, can be found in
the Statement on Corporate Governance (§ 289f and § 315d
HGB) at www.bmwgroup.com/statement on corporate governance.
BMW Philippines Corp., Manila
The designation BMW Group comprises Bayerische Motor-
en Werke Aktiengesellschaft (BMW AG) and its Group en-
tities. BMW AG is a stock corporation (Aktiengesellschaft)
within the meaning of the German Stock Corporation Act
(Aktiengesetz) and has its registered office in Munich, Ger-
many. It has three representative bodies, namely the Annual
General Meeting, the Supervisory Board and the Board of
Management. The duties and authorities of those bodies de-
rive from the Stock Corporation Act and the Articles of Incor-
poration of BMW AG. Shareholders, as the owners of the
business, exercise their rights at the Annual General Meet-
ing. The Board of Management is fully responsible for man-
aging the enterprise and is monitored and advised by the
Supervisory Board. The Supervisory Board appoints the
members of the Board of Management and can, at any time,
revoke an appointment for good cause. The Board of Man-
agement informs the Supervisory Board and reports to it
regularly, promptly and comprehensively, in line with the
principles of conscientious and faithful accountability and in
accordance with the law and the reporting duties determined
by the Supervisory Board. The Board of Management re-
quires the approval of the Supervisory Board for certain
COMPANY'S GOVERNING
CONSTITUTION
Mandates
Siemens Aktiengesellschaft
Henkel Management AG*
Henkel AG & Co. KGaA (Shareholders' Committee)
MANFRED SCHOCH (b. 1955)
Member since 1988, elected until the AGM 2024
Deputy Chairman of the Supervisory Board
Chairman of the European and General Works Council
Industrial Engineer
Mandates
DELTON Health AG ***, Chairman
DELTON Technology SE***, Chairman
Frankfurter Allgemeine Zeitung GmbH*
AQTON SE***, Chairman
SOLARWATT GmbH ***
-
Entrust Corp.*.**
** Note: Mr Quandt is the sole shareholder of DELTON Health AG, DELTON Technology SE and AQTON
SE. Mr Quandt holds majority interests in Entrust Corp. and SOLARWATT GmbH.
Mandates
FUCHS PETROLUB SE, Chairman (until 3 May 2022)
CHRISTIANE BENNER² (b. 1968)
Member since 2014, elected until the AGM 2024
Deputy Chair of IG Metall
Chairman of the Supervisory Board of BASF SE
Deputy Chairman of the Supervisory Board
(since 12 May 2021)
Member since 2018, elected until the AGM 2023
DR. RER. POL. KURT BOCK (b. 1958)
OF THE BOARD OF
MANAGEMENT
DR.-ING. ANDREAS WENDT (b. 1958)
Purchasing and Supplier Network
(until 31 December 2021)
General Counsel:
DR. ANDREAS LIEPE
252
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Fundamental Aspects of
Corporate Governance
Remuneration Report
Other Information
← = Q
CURRENT MEMBERS OF
THE SUPERVISORY BOARD
DR.-ING. DR.-ING. E. H. NORBERT REITHOFER (b. 1956)
Member since 2015, elected until the AGM 2025
Chairman of the Supervisory Board
Former Chairman of the Board of Management of BMW AG
STEFAN QUANDT (b. 1966)
Member since 1997, elected until the AGM 2024
Deputy Chairman of the Supervisory Board
Entrepreneur
1 Employees of the enterprise.
2 Union representative.
3 Executive employee of the enterprise.
Not listed on the stock exchange.
Member since 8 October 2021, appointed until the AGM
2024
Chairman of the Works Council, Landshut
JOHANN HORN² (b. 1958)
Member since 14 May 2021, appointed until the AGM 2024
Head of Bavaria Region, IG Metall
Mandates
EDAG Engineering GmbH* (until 28 May 2021)
Siemens Healthcare GmbH*
ANKE SCHÄFERKORDT (b. 1962)
Member since 2020, elected until the AGM 2025
Member of supervisory boards
Mandates
BASF SE (until 29 April 2022)
Serviceplan Group Management SE*
Wayfair Inc.
RACHEL EMPEY (b. 1976)
Member since 12 May 2021, elected until the AGM 2025
Member of the Board of Management of Fresenius Man-
agement SE (finance division)
SUSANNE KLATTEN (b. 1962)
Member since 1997, elected until the AGM 2024
Entrepreneur
Mandates
Fresenius Kabi AG***, Deputy Chairwoman
Fresenius Medical Care Management AG****
DR.-ING. HEINRICH HIESINGER (b. 1960)
Member since 2017, elected until the AGM 2022
Chairman of the Supervisory Board of ZF
Friedrichshafen AG
BERNHARD EBNER¹ (b. 1978)
OUTGOING MEMBERS
← = Q
Remuneration Report
"Group mandate.
- Memberships of other statutory supervisory boards.
- Memberships of comparable boards of business enterprises in Germany and abroad.
Mandates
Continental AG, Deputy Chairwoman
STEFAN SCHMID1 (b. 1965)
Member since 2007, elected until the AGM 2024
Deputy Chairman of the Supervisory Board
Chairman of the Works Council, Dingolfing
DR. MARC BITZER (b. 1965)
Member since 12 May 2021, elected until the AGM 2025
Chairman and Chief Executive Officer of Whirlpool
Corporation
Mandates
Whirlpool Corp. **, Chairman
Simex Trading AG*
253
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Fundamental Aspects of
Corporate Governance
Other Information
-Memberships of comparable boards of business enterprises in Germany and abroad.
- Memberships of other statutory supervisory boards.
**Group mandate.
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
260
We conducted our audit of the consolidated financial state-
ments and of the group management report in accordance
with § 317 HGB and the EU Audit Regulation (No. 537/2014,
referred to subsequently as “EU Audit Regulation”) in compli-
ance with German Generally Accepted Standards for Finan-
cial Statement Audits promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany]
(IDW). Our responsibilities under those requirements and
principles are further described in the "Auditor's Responsibil-
ities for the Audit of the Consolidated Financial Statements
Basis for the Audit Opinions
Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare
that our audit has not led to any reservations relating to the
legal compliance of the consolidated financial statements
and of the group management report.
the accompanying group management report as a whole
provides an appropriate view of the Group's position. In
all material respects, this group management report is
consistent with the consolidated financial statements,
complies with German legal requirements and appropri-
ately presents the opportunities and risks of future devel-
opment. Our audit opinion on the group management
report does not cover the content of those parts of the
group management report listed in the "Other Informa-
tion" section of our auditor's report.
financial performance for the financial year from Janu-
ary 1 to December 31, 2021, and
the accompanying consolidated financial statements
comply, in all material respects, with the IFRSS as adopt-
ed by the EU, and the additional requirements of German
commercial law pursuant to § [Article] 315e Abs. [para-
graph] 1 HGB [Handelsgesetzbuch: German Commercial
Code] and, in compliance with these requirements, give a
true and fair view of the assets, liabilities, and financial
position of the Group as at December 31, 2021, and of its
In our opinion, on the basis of the knowledge obtained in the
audit,
We have audited the consolidated financial statements of
Bayerische Motoren Werke Aktiengesellschaft, Munich, and
its subsidiaries (the Group), which comprise the Balance
Sheet for Group at 31 December 2021, and the Income State-
ment for Group, Statement of Comprehensive Income for
Group, Cash Flow Statement for Group and Statement of
changes in Equity for Group for the financial year from 1 Jan-
uary to 31 December 2021, and Notes to the Group Financial
Statements, including a summary of significant accounting
policies. In addition, we have audited the combined man-
agement report of Bayerische Motoren Werke Aktienge-
sellschaft, which is combined with the Company's manage-
ment report, for the financial year from 1 January to 31
December 2021. In accordance with the German legal re-
quirements, we have not audited the content of those parts
of the group management report listed in the "Other Infor-
mation" section of our auditor's report.
Audit Opinions
Consolidated Financial Statements and
of the Group Management Report
Report on the Audit of the
To Bayerische Motoren Werke
Aktiengesellschaft, Munich
← = Q
Other Information
Corporate Governance
Independent Auditor's Report
Remuneration Report
Remuneration Report
← = Q
3 The Company's disclosures on the applied "Accounting
policies, assumptions, judgments and estimations" are
contained in the notes to the consolidated financial
statements under note 6 and on leased products are
contained under note 23.
Based on our audit procedures, we were able to satisfy
ourselves that the methods and processes for determin-
ing the expected residual values of leased products un-
derlying the valuation are appropriate and the assump-
tions and parameters included in the forecast model for
the residual value are appropriate as a whole.
2 As part of our audit we obtained an understanding of the
development of operating leases, the underlying residu-
al value risks as well as the business processes for the
identification, management, monitoring and measure-
ment of residual value risks, among other things by in-
quiries and inspection of documents related to the inter-
nal calculation methods. Furthermore, we evaluated the
appropriateness and effectiveness of the internal control
system, particularly regarding the determination of ex-
pected residual values. This included the evaluation of
the propriety of the relevant IT systems as well as the
implemented interfaces therein by our IT-specialists. In
addition, we evaluated the appropriateness of the fore-
casting methods, the model assumptions as well as the
parameters used for the measurement of the residual
values based on the validations carried out by the
BMW Group. For this purpose, we inquired with the
BMW Group's experts responsible for the management
and monitoring of residual value risks and inspected the
internal analysis on residual value developments and re-
sidual value forecasts as well as the validation results.
We examined the mathematically correctness of the
forecast values using the key calculation steps.
Against this background and due to the resulting signifi-
cant uncertainties with regard to estimates in the context
of measuring the residual values of the leased products,
this matter was of particular significance in the context of
our audit.
The BMW Group leases vehicles to end customers under
operating leases (leased products). At the balance sheet
date, the figure reported under the "leased products" line
item for operating leases was EUR 44,700 million (ap-
proximately 19.5% of total assets). Leased products are
measured at cost, which is depreciated on a straight-line
basis over the lease term to the expected residual value
(recoverable amount). A key estimated value for subse-
quent measurement of leased products is the expected
residual value at the end of the lease term. The
BMW Group uses internally available data on historical
empirical values, current market data and market esti-
mates as well as forecasts by external market research
institutes. The estimation of future residual values is
subject to judgment due to the large number of assump-
tions to be made by the executive directors and the
amount of data included in the determination.
1 Measurement of leased products
Hereinafter we present the key audit matters:
3 Reference to further information
2 Audit approach and findings
1 Matter and issue
Our presentation of these key audit matters has been struc-
tured in each case as follows:
4 Presentation of the acquisition of BMW Brilliance
Automotive Ltd., Shenyang, China, after the
balance sheet date in the notes
3 Valuation of provisions for statutory and
non-statutory warranty obligations and product
guarantees
2 Valuation of receivables from sales financing
1 Measurement of leased products
In our view, the matters of most significance in our audit were
as follows:
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the con-
solidated financial statements for the financial year from Jan-
uary 1 to December 31, 2021. These matters were addressed
in the context of our audit of the consolidated financial state-
ments as a whole, and in forming our audit opinion thereon;
we do not provide a separate audit opinion on these matters.
Key Audit Matters in the Audit of the Consolidated Fi-
nancial Statements
and of the Group Management Report" section of our audi-
tor's report. We are independent of the group entities in ac-
cordance with the requirements of European law and Ger-
man commercial and professional law, and we have fulfilled
our other German professional responsibilities in accordance
with these requirements. In addition, in accordance with Arti-
cle 10 (2) point (f) of the EU Audit Regulation, we declare that
we have not provided non-audit services prohibited under
Article 5 (1) of the EU Audit Regulation. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions on the consolidated
financial statements and on the group management report.
Other Information
Mandates
Independent Auditor's Report
Corporate Governance
OLIVER ZIPSE (b. 1964)
Chairman
ILKA HORSTMEIER (b. 1969)
Human Resources, Labour Relations Director
DR. NICOLAS PETER (b. 1962)
Finance
Mandates
―
BMW Brilliance Automotive Ltd. ****,
Chairman (until 10 February 2022 Deputy Chairman)
DR.-ING. MILAN NEDELJKOVIĆ (b. 1969)
Production
DR.-ING. JOACHIM POST (b. 1971)
Purchasing and Supplier Network (since 1 January 2022)
Mandates
BMW (South Africa) (Pty) Ltd. ****, Chairman
BMW Motoren GmbH ***, Chairman
FRANK WEBER (b. 1966)
Development
PIETER NOTA (b. 1964)
Customer, Brands, Sales
Mandates
Rolls-Royce Motor Cars Limited ****, Chairman
Not listed on the stock exchange.
OF THE BOARD OF
MANAGEMENT
INDEPENDENT AUDITOR'S REPORT
CURRENT MEMBERS
Other Information
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
259
Frank Weber
Dr.-Ing. Joachim Post
Dr. Nicolas Peter
Pieter Nota
Dr.-Ing. Milan Nedeljković
Ilka Horstmeier
The Board of Management
251
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Fundamental Aspects of
Corporate Governance
Remuneration Report
← = Q
-
Bayerische Motoren Werke
Aktiengesellschaft
SGL Carbon SE, Chairwoman
SprinD GmbH*
OVERVIEW OF SUPERVISORY BOARD COMMITTEES AND THEIR COMPOSITION
Principal duties, basis for activities
PRESIDING BOARD
– Preparing Supervisory Board meetings where the subject matter to be discussed does not fall within the remit of a committee
- Activities based on rules of procedure
PERSONNEL COMMITTEE
― Preparing decisions relating to the appointment (and revocation of appointment) of members of the Board of Management,
remuneration, and the regular review of the Board of Management's remuneration system
― Concluding, amending and revoking employment contracts (in conjunction with the resolutions taken by the Supervisory Board
regarding the remuneration of the Board of Management) and other contracts with members of the Board of Management
― Taking decisions relating to the approval of ancillary activities of Board of Management members, including the assumption of
non-BMW Group supervisory board mandates, as well as the approval of transactions requiring Supervisory Board approval by
law (e. g. loans to Board of Management or Supervisory Board members)
- Activities based on rules of procedure
Members
Norbert Reithofer¹, Manfred Schoch, Stefan Quandt, Stefan Schmid, Karl-Ludwig Kley (until 12 May
2021), Kurt Bock (since 12 May 2021)
Norbert Reithofer 1, Manfred Schoch, Stefan Quandt, Stefan Schmid, Karl-Ludwig Kley (until 12 May
2021), Kurt Bock (since 12 May 2021)
AUDIT COMMITTEE
― Auditing the accounts and supervising the financial reporting process
- Preparing the Supervisory Board's resolution on Company and Group Financial Statements and discussing interim reports and
notifications with the Board of Management prior to publication
- Supervising the external audit, in particular selecting the auditor and ensuring the independence and quality of the external
audit and any additional work performed by the external auditor
- Preparing the proposal for the election of the external auditor at the Annual General Meeting,
― Engaging and signing the fee agreement with the external auditor as well as determining areas of audit emphasis
← = Q
- Preparing the Supervisory Board's audit of the non-financial reporting, preparing the selection of the auditor for non-financial
reporting, and engaging the auditor
Other Information
Corporate Governance
Fundamental Aspects of
Corporate Governance
Member from 2019 to 31 December 2021
Head of Industrial Relations Regulations and
Co-determination Policy at the Executive Board of
IG Metall (In-house) Counsel
Mandates
ABB AG
WILLIBALD LÖW¹ (b. 1956)
Member from 1999 to 16 July 2021
Member of the Works Council, Landshut (Chairman until 13
July 2021)
1 Employees of the enterprise.
2 Union representative.
3 Executive employee of the enterprise.
Not listed on the stock exchange.
"Group mandate.
-Memberships of other statutory supervisory boards.
Memberships of comparable boards of business enterprises in Germany and abroad.
256
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Remuneration Report
- Supervising the effectiveness of the internal control system, the risk management system and the internal audit system as well as
the performance of Supervisory Board duties in connection with audits pursuant to § 32 of the German Securities Trading Act (WpHG)
― Supervising compliance as well as analysing and supervising any needs for action related to possible violations of duties by members
of the Board of Management in preparation of a resolution at the Supervisory Board
-― Making decisions on approval for utilisation of the Authorised Capital 2019 and determinations concerning the form of share
certificates and dividend coupons
― Submitting a proposal to the Supervisory Board if a resolution to appoint a member of the Board of Management has not been
carried by the necessary two-thirds majority of Supervisory Board members' votes
- Established as required by law
Norbert Reithofer, Manfred Schoch, Stefan Quandt, Stefan Schmid
(In accordance with statutory requirements, the Mediation Committee comprises the Chairman and Dep-
uty Chairman of the Supervisory Board and one member each selected by shareholder representatives
and employee representatives.)
⚫ Chair.
258
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Responsibility Statement by the
Company's Legal Representatives
Remuneration Report
Other Information
← = Q
RESPONSIBILITY STATEMENT BY THE
COMPANY'S LEGAL REPRESENTATIVES
Statement pursuant to § 117 No.1 of the 1, AktG Trading Act
(WpHG) in conjunction with § 297 (2) sentence 4 and § 315
(1) sentence 5 of the German Commercial Code (HGB)
"To the best of our knowledge, and in accordance with the
applicable reporting principles, the Group Financial State-
ments give a true and fair view of the assets, liabilities, finan-
cial position and results of operations of the Group, and the
Group Management Report includes a fair review of the
development and performance of the business and position
of the Group, together with a description of the principal
opportunities and risks associated with the expected devel-
opment of the Group."
ALTANA AG ****, Deputy Chairwoman
Munich, 8 March 2022
MEDIATION COMMITTEE
(In line with the recommendation of the German Corporate Governance Code, the Nomination Committee
comprises only shareholder representatives.)
Norbert Reithofer*, Kurt Bock (since 12 May 2021), Susanne Klatten, Karl-Ludwig Kley (until 12 May
2021), Stefan Quandt
Members
- Amendments to Articles of Incorporation only affecting wording
― Established in accordance with recommendation in the German Corporate Governance Code, activities based on
rules of procedure
Kurt Bock 1,2, Norbert Reithofer 3³, Manfred Schoch, Stefan Quandt, Stefan Schmid
1 Chair.
2 Special knowledge and experience according to recommendation D.4 of the DCGK
and expertise in accounting and auditing within the meaning of § 100 (5) AktG.
3 Expertise in auditing within the meaning of § 100 (5) AktG.
257
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VERENA ZU DOHNA² (b. 1975)
To Our Stakeholders
Group Financial Statements
Corporate Governance
Fundamental Aspects of
Corporate Governance
Remuneration Report
Other Information
← = Q
Principal duties, basis for activities
NOMINATION COMMITTEE
- Identifying suitable candidates as shareholder representatives on the Supervisory Board to be put forward for inclusion in the
Supervisory Board's proposals for election at the Annual General Meeting
― Established in accordance with recommendation in the German Corporate Governance Code, activities based on terms of proce-
dure
Combined Management Report
Member from 2013 to 1 October 2021
Member of the Works Council, Dingolfing
Oliver Zipse
Johnson Controls International plc
Russell Reynolds Associates Inc.*
- Memberships of other statutory supervisory boards.
-Memberships of comparable boards of business enterprises in Germany and abroad.
254
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To Our Stakeholders
Combined Management Report
Group Financial Statements
SIBYLLE WANKEL² (b. 1964)
Member since 4 January 2022, appointed until the
AGM 2024
1. Authorised Representative and Head of IG Metall's
Munich Office
Mandates
KraussMaffei Group GmbH*, Deputy Chairwoman (since
31 May 2021)
DR. THOMAS WITTIG³ (b. 1960)
Member since 2019, elected until the AGM 2024
Senior Vice President Financial Services
Mandates
BMW Bank GmbH ****, Chairman
BMW Automotive Finance (China) Co. Ltd.***,
Chairman
"Group mandate.
WERNER ZIERER¹ (b. 1959)
Not listed on the stock exchange.
2 Union representative.
BRIGITTE RÖDIG¹ (b. 1963)
PROF. DR. DR. H. C. CHRISTOPH M. SCHMIDT (b. 1962)
Member since 12 May 2021, elected until the AGM 2025
President of the RWI - Leibniz Institute for Economic
Research, University Professor
Mandates
Basalt-Actien-Gesellschaft*
Thyssen Vermögensverwaltung GmbH*
Mandates
Deutsche Post AG
Fresenius Management SE*
ZF Friedrichshafen AG*
(Chairman since 1 January 2022)
JENS KÖHLER¹ (b. 1964)
Member since 3 August 2021, appointed until the
AGM 2024
Chairman of the Works Council, Leipzig
DR. VISHAL SIKKA (b. 1967)
Member since 2019, elected until the AGM 2024
CEO & Founder, Vianai Systems, Inc.
UnternehmerTUM GmbH*, Chairwoman
Mandates
Oracle Corporation
1 Employees of the enterprise.
3 Executive employee of the enterprise.
Member since 2001, elected until the AGM 2024
DR. DOMINIQUE MOHABEER¹ (b. 1963)
Member since 2012, elected until the AGM 2024
Member of the Works Council, Munich
31 October 2021)
Chairman of the Supervisory Boards of E.ON SE and
Deutsche Lufthansa Aktiengesellschaft
Mandates
E.ON SE, Chairman
Deutsche Lufthansa Aktiengesellschaft, Chairman
PROF. DR. DR. H. C. REINHARD HÜTTL (b. 1957)
Member from 2008 to 12 May 2021
Scientific Director and Managing Partner of EUREF Energy
Innovation GmbH
HORST LISCHKA² (b. 1963)
Member from 2009 to 12 May 2021
Former Secretary to the Executive Board of IG Metall
Mandates
KraussMaffei Group GmbH *,
Deputy Chairman (until 10 May 2021)
MAN Truck & Bus SE*
SIMONE MENNE (b. 1960)
Member from 2015 to 12 May 2021
Member of supervisory boards
-
Member of the Works Council, Regensburg (Chairman until
Deutsche Post AG
Henkel AG & Co. KGaA
Mandates
Deputy Chairman of the Supervisory Board (until 12 May
2021)
DR. JUR. KARL-LUDWIG KLEY (b. 1951)
Member from 2008 to 12 May 2021
-
OUTGOING MEMBERS
2 Union representative.
3 Executive employee of the enterprise.
OF THE SUPERVISORY
BOARD
1 Employees of the enterprise.
Not listed on the stock exchange.
"Group mandate.
-Memberships of comparable boards of business enterprises in Germany and abroad.
Corporate Governance
Fundamental Aspects of
Corporate Governance
Remuneration Report
Other Information
- Memberships of other statutory supervisory boards.
255
BMW Group Report 2021
To Our Stakeholders
← = Q
Combined Management Report
Group Financial Statements
Corporate Governance
Fundamental Aspects of
Corporate Governance
Other Information
← = Q
Remuneration Report
Corporate Governance
Independent Practitioner's Report
The executive directors of the Company are responsible for
the preparation of the Combined Non-financial Statement in
accordance with §§ (Articles) 315c in conjunction with 289c
to 289e HGB ("Handelsgesetzbuch": "German Commercial
Code") and Article 8 of REGULATION (EU) 2020/852 OF
THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of
18. June 2020 on establishing a framework to facilitate sus-
tainable investment and amending Regulation (EU)
2019/2088 (hereinafter the "EU Taxonomy Regulation") and
the Delegated Acts adopted thereunder, as well as for mak-
ing their own interpretation of the wording and terms con-
tained in the EU Taxonomy Regulation and the Delegated
Acts adopted thereunder, as set out in section "EU-Taxon-
omy" of the Combined Non-financial Statement and the
Sustainability Disclosures in accordance with the principles
stated in the Sustainability Reporting Standards of the
Global Reporting Initiative (hereinafter the "GRI-Criteria”).
Responsibility of the Executive Directors
Not subject to our assurance engagement are the external
sources of documentation or expert opinions mentioned in
the Integrated Group Report.
To BMW AG, Munich
We have performed a limited assurance engagement on the
disclosures in the "BMW Group Report 2021" of BMW AG,
Munich, (hereinafter the "Company") for the period from 1
January to 31 December 2021 (hereinafter the “Integrated
Group Report") denoted with "[... ]]" of the Combined
Non-financial Statement, which is integrated into the com-
bined management report (hereinafter the "Disclosures on
Non-financial Reporting") contained in the Integrated Group
Report, as well as the sustainability disclosures contained in
the sections "Dialog with stakeholders" and "Further GRI
information" of the Integrated Group Report (hereinafter
referred to as "Sustainability Disclosures"). Our engagement
in this context relates solely to the disclosures denoted with
the symbol "[...]" and the disclosures in the sections "Dia-
log with stakeholders" and "Further GRI information".
Independent Practitioner's Report on a Limited As-
surance Engagement on Disclosures on Non-financial
Reporting and Sustainability Discloures¹
INDEPENDENT PRACTITIONER'S REPORT
This responsibility includes the selection and application of
appropriate methods of non-financial reporting and sustain-
ability reporting as well as making assumptions and esti-
mates related to individual non-financial disclosures and
sustainability disclosures of the Group that are reasonable in
the circumstances. Furthermore, the executive directors are
responsible for such internal control as the executive direc-
tors consider necessary to enable the preparation of an Inte-
grated Group Report that is free from material misstatement
whether due to fraud or error.
"
The EU Taxonomy Regulation and the Delegated Acts issued
thereunder contain wording and terms that are still subject
to considerable interpretation uncertainties and for which
clarifications have not yet been published in every case.
Therefore, the executive directors have disclosed their inter-
pretation of the EU Taxonomy Regulation and the Delegated
Acts adopted thereunder in section "EU-Taxonomy" of the
Combined Non-financial Statement. They are responsible for
the defensibility of this interpretation. Due to the immanent
risk that indeterminate legal terms may be interpreted differ-
ently, the legal conformity of the interpretation is subject to
uncertainties.
Other Information
268
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Independent Practitioner's Report
Remuneration Report
← = Q
Independence and Quality Control of the Audit Firm
We have complied with the German professional provisions
regarding independence as well as other ethical require-
ments.
Our audit firm applies the national legal requirements and
professional standards in particular the Professional Code
for German Public Auditors and German Chartered Auditors
("Berufssatzung für Wirtschaftsprüfer und vereidigte Buch-
prüfer": "BS WP/vBP") as well as the Standard on Quality
Control 1 published by the Institut der Wirtschaftsprüfer
(Institute of Public Auditors in Germany; IDW): Requirements
to quality control for audit firms (IDW Qualitätssicherungs-
standard 1: Anforderungen an die Qualitätssicherung in der
Wirtschaftsprüferpraxis - IDW QS 1) - and accordingly main-
tains a comprehensive system of quality control including
documented policies and procedures regarding compliance
with ethical requirements, professional standards and appli-
cable legal and regulatory requirements.
Responsibility of the Assurance Practitioner
← = Q
1 PricewaterhouseCoopers GmbH has performed a limited assurance engagement on
the German version of the,,BMW Group Report 2021" and issued an independent
practitioner's report in German language, which is authoritative. The following text
is a translation of the independent practitioner's report
Other Information
Combined Management Report
Group Financial Statements
Evaluate whether the tagging of the ESEF documents
with Inline XBRL technology (iXBRL) in accordance with
the requirements of Articles 4 and 6 of the Delegated
Regulation (EU) 2019/815, in the version in force at the
date of the consolidated financial statements, enables
an appropriate and complete machine-readable XBRL
copy of the XHTML rendering.
Further Information pursuant to Article 10 of the EU
Audit Regulation
We were elected as group auditor by the annual general
meeting on May 12, 2021. We were engaged by the supervi-
sory board on June 24, 2021. We have been the group auditor
of Bayerische Motoren Werke Aktiengesellschaft, Munich,
without interruption since the financial year 2019.
We declare that the audit opinions expressed in this audi-
tor's report are consistent with the additional report to the
audit committee pursuant to Article 11 of the EU Audit Regu-
lation (long-form audit report).
REFERENCE TO AN OTHER MATTER - USE OF THE
AUDITOR'S REPORT
Our auditor's report must always be read together with the
audited consolidated financial statements and the audited
group management report as well as the assured ESEF
documents. The consolidated financial statements and the
group management report converted to the ESEF format -
including the versions to be published in the Federal Ga-
zette are merely electronic renderings of the audited con-
solidated financial statements and the audited group
management report and do not take their place. In particu-
lar, the "Report on the Assurance on the Electronic Render-
ing of the Consolidated Financial Statements and the Group
266
BMW Group Report 2021
To Our Stakeholders
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
Remuneration Report
← = Q
Management Report Prepared for Publication Purposes in
Accordance with § 317 Abs. 3a HGB" and our assurance
opinion contained therein are to be used solely together
with the assured ESEF documents made available in elec-
tronic form.
GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE
ENGAGEMENT
The German Public Auditor responsible for the engagement
is Andreas Fell.
Munich, March 9, 2022
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
(sgd. Petra Justenhoven)
Wirtschaftsprüferin
(German Public Auditor)
(sgd. Andreas Fell)
Wirtschaftsprüfer
(German Public Auditor)
267
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Independent Auditor's Report
Our responsibility is to express a conclusion with limited
assurance on the Disclosures on Non-financial Reporting
denoted with the symbol "[[ ... ]]" of the Combined Non-fi-
nancial Statement and the Sustainability Disclosures in the
sections "Dialog with stakeholders" and "Further GRI infor-
mation" of the Integrated Group Report based on the assur-
ance engagement we have performed.
271 I.
the Disclosures on Non-financial Reporting denoted with
the symbol "[[ ... ]]" of the Company's Combined Non-fi-
nancial Statement, contained in the Integrated Group
Report, other than the external sources of documentation
or expert opinions mentioned in the disclosures denoted
with the symbol "[[ ... ]]" in the Combined Non-financial
Statement, are not prepared, in all material respects, in
accordance with §§ 315c in conjunction with 289c to
289e HGB and the EU Taxonomy Regulation and the
Delegated Acts issued thereunder as well as the inter-
pretation by the executive directors disclosed in section
"EU-Taxonomy" of the Combined Non-financial State-
ment, or
Nicolette Behncke
Wirtschaftsprüferin
[German public auditor] [German public auditor]
270
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
consolidated financial statements and to the audited
group management report.
Review of the past financial year from a remuneration
perspective
272 II.
Remuneration of the members of the Board of
Management
Wirtschaftsprüfer
310 III.
314 IV.
Comparison of change in remuneration and earnings
pursuant to § 162 (1) Sentence 2 No. 2 of the German
Stock Corporation Act (AktG)
Other considerations
Remuneration Report
Other Information
← = Q
318 V.
318 VI.
Outlook for the 2022 financial year
319 VII. Auditor's Report
REMUNERATION
REPORT
5
Remuneration of the members of the Supervisory Board
We conducted our assurance engagement in accordance
with International Standard on Assurance Engagements
(ISAE) 3000 (Revised): Assurance Engagements other than
Audits or Reviews of Historical Financial Information, issued
by the IAASB. This Standard requires that we plan and per-
form the assurance engagement to obtain limited assurance
about whether any matters have come to our attention that
cause us to believe that
Andreas Fell
Munich, 9 March 2022
the Sustainability Disclosures in the sections "Dialog
with stakeholders" and "Further GRI information" of the
Company's Integrated Group Report have not been pre-
pared, in all material aspects, in accordance with the rel-
evant GRI-Criteria.
In a limited assurance engagement the procedures per-
formed are less extensive than in a reasonable assurance
engagement, and accordingly a substantially lower level of
assurance is obtained. The selection of the assurance proce-
dures is subject to the professional judgement of the assur-
ance practitioner.
In the course of our assurance engagement, we have,
amongst other things, performed the following assurance
procedures and other activities:
Obtaining an understanding of the structure of the sus-
tainability organization and of the stakeholder engage-
ment
- Inquiries of personnel involved in the preparation of the
Integrated Group Report regarding the preparation pro-
cess, the internal control system relating to this process
and selected disclosures in the Integrated Group Report
Identification of the likely risks of material misstatement
of the Integrated Group Report
Testing of processes for the collection, control, analysis
and aggregation of selected data from various Group
sites on a sample basis
Analytical evaluation of selected disclosures in the Inte-
grated Group Report
Evaluation of the process to identify taxonomy-eligible
economic activities and the corresponding disclosures in
the Combined Non-financial Statement
Inquiries on the relevance of climate-risks
Evaluation of the presentation of the disclosures
In determining the disclosures in accordance with Article 8 of
the EU Taxonomy Regulation, the executive directors are
required to interpret undefined legal terms. Due to the imma-
nent risk that undefined legal terms may be interpreted dif-
ferently, the legal conformity of their interpretation and,
accordingly, our assurance engagement thereon are subject
to uncertainties.
269
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Corporate Governance
Independent Practitioner's Report
Remuneration Report
Other Information
← = Q
Assurance Opinion
Based on the assurance procedures performed and evi-
dence obtained, nothing has come to our attention that
causes us to believe that
the Disclosures on Non-financial Reporting denoted with
the symbol "[[ ... ]]" of the Company's Combined Non-fi-
nancial Statement for the period from 1 January to 31
December 2021, which is integrated into the combined
management report contained in the Integrated Group
Report, have not been prepared, in all material aspects,
in accordance with the requirements of §§ 315c in con-
junction with 289c to 289e HGB relevant to these disclo-
sures and the EU Taxonomy Regulation and the Dele-
gated Acts issued thereunder as well as the interpretation
by the executive directors disclosed in section "EU-Tax-
onomy" of the Non-financial Statement, or
the Sustainability Disclosures in the sections "Dialog
with stakeholders" and "Further GRI information" of the
Company's Integrated Group Report for the period from 1
January to 31 December 2021 have not been prepared, in
all material aspects, in accordance with the relevant
GRI-Criteria.
We do not express an assurance opinion on the external
sources of documentation or expert opinions mentioned in
the Disclosures on Non-financial Reporting denoted with the
symbol "[[ ]]" of the Company's Combined Non-financial
Statement.
Restriction of Use
We draw attention to the fact that the assurance engage-
ment was conducted for the Company's purposes and that
the report is intended solely to inform the Company about
the result of the assurance engagement. Consequently, it
may not be suitable for any other purpose than the afore-
mentioned. Accordingly, the report is not intended to be used
by third parties for making (financial) decisions based on it.
Our responsibility is to the Company. We do not accept any
responsibility to third parties. Our assurance opinion is not
modified in this respect.
To Our Stakeholders
Evaluate whether the ESEF documents provide an
XHTML rendering with content equivalent to the audited
To Our Stakeholders
Obtain an understanding of internal control relevant to
the assurance work on the ESEF documents in order to
design assurance procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
assurance opinion on the effectiveness of these controls.
4 Presentation of the acquisition of BMW Brilliance
Automotive Ltd., Shenyang, China, after the balance
sheet date in the notes
The BMW Group held so far 50% of shares in BMW Bril-
liance Automotive Ltd., Shenyang, China. On October 11,
2018, a purchase agreement was concluded for the ac-
quisition of a further 25% of the shares in BMW Brilliance
Automotive Ltd. Shenyang, China. The acquisition was
subject to the removal of the joint venture obligation for
automotive production in China, which occurred in Jan-
uary 2022. The closing of the transaction was on Feb-
ruary 11, 2022. The acquisition date therefore falls with-
in the preparation phase of the consolidated financial
statements for financial year 2021. The previously held
shares will be measured at fair value as at the acquisi-
tion date, which will result in an appreciation effect
amounting to EUR 7.0 billion to EUR 8.0 billion in the
financial year 2022. Due to the gain of control after the
balance sheet date but prior to the approval of the pub-
lication of the consolidated financial statements for
financial year 2021, disclosures in the notes to the
financial statements are already required for the busi-
ness combination (a as is the case for acquisitions
during the reporting period) in accordance with IFRS 3
and IAS 10.
2 As part of our audit of the presentation of the acquisition
of BMW Brilliance Automotive Ltd. Shenyang, China, we
first inspected the contractual agreements and, based
on this, evaluated the acquisition date, with the involve-
ment of our specialists in international accounting. Fur-
thermore, we examined the determination of the appre-
ciation effect. In view of the special features of
determining the fair values in the context of the prelimi-
nary purchase price allocation, our valuation specialists
assisted us in the process. Together, we examined the
appreciation effect and, by using checklists, evaluated
the completeness and accuracy of the disclosures in the
notes to the consolidated financial statements required
under IFRS 3 and IAS 10.
Overall, we were able to satisfy ourselves that, taking into
consideration the information available, the acquisition is
properly presented in the notes to the consolidated fi-
nancial statements and that the estimates and assump-
tions made by the executive directors are appropriate
overall for the presentation of the acquisition.
3 The Company's disclosures relating to the acquisition
are contained in the notes to the consolidated financial
statements under note 3 "Increase of share in BMW Bril-
liance Automotive Ltd.".
Other Information
The executive directors are responsible for the other infor-
mation. The other information comprises the following
non-audited parts of the group management report:
the "Corporate Governance" section of the group man-
agement report
the disclosures marked with "[[ ... ]]" of the non-financial
statement pursuant to § 289b Abs. 1 HGB and § 315b
Abs. 1 HGB
The other information comprises further
the statement on corporate governance pursuant to
§ 289f HGB and § 315d HGB
the remuneration report pursuant to § 162 AktG [Aktien-
gesetz: German Stock Corporation Act], for which the
supervisory board is also responsible
=
-
all remaining parts of the annual report excluding
cross-references to external information with the excep-
tion of the audited consolidated financial statements, the
audited group management report and our auditor's report
Our audit opinions on the consolidated financial statements
and on the group management report do not cover the other
information, and consequently we do not express an audit
opinion or any other form of assurance conclusion thereon.
263
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Independent Auditor's Report
Remuneration Report
Other Information
← = Q
In connection with our audit, our responsibility is to read the
other information mentioned above and, in so doing, to con-
sider whether the other information
3 The Company's disclosures on the applied "Accounting
policies, assumptions, judgments and estimations" are
contained in the notes to the consolidated financial
statements under note 6 and on "Other provisions" are
contained under note 33.
In our view, the method for the valuation of provisions for
statutory and non-statutory warranty obligations as well
as product guarantees is overall appropriate. Taking into
consideration the information available, we believe that,
overall, the measurement parameters and assumptions
used by the executive directors are appropriate.
(comprising parts and labor input) as well as the expect-
ed assertion of claims from statutory and non-statutory
warranties.
← = Q
261
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Combined Management Report
Group Financial Statements
Corporate Governance
Independent Auditor's Report
Remuneration Report
Other Information
← = Q
2 Valuation of receivables from sales financing
1 The BMW Group offers end customers, dealerships and
importers various financing models for vehicles. In this
context, current and non-current receivables from sales
financing totaling EUR 87,417 million are reported in the
consolidated statement of financial position as at the
balance sheet date (approximately 38.1% of total as-
sets). Impairment losses amounting to EUR 1,599 mil-
lion were recognized on these receivables as at the bal-
ance sheet date. In order to determine the amount of the
necessary valuation allowances to be recognized with
respect to receivables from sales financing, the
BMW Group, among others, evaluates the creditworthi-
ness of the dealers, importers and end customers, as
well as any loss ratios, and risk provisioning parameters
are derived based on historical default probabilities and
loss ratios.
The determination of the valuation allowances by the
executive directors is subject to a significant degree of
judgment due to several value-influencing factors such
as the estimation of creditworthiness, the determina-
tion of probabilities of default and loss ratios and was
therefore of particular significance in the context of our
audit.
2 As part of our audit we obtained a comprehensive un-
derstanding of the development of receivables from
sales financing, the associated default-related risks as
well as the business processes for the identification,
management, monitoring and measurement of default
risks, among other things by inquiries and inspection of
documents on the internal calculation methods. Fur-
thermore, we evaluated the appropriateness and effec-
tiveness of the internal control system regarding the
determination of the impairment loss to recognize. In
this context, we also evaluated the relevant IT systems
and internal processes. The evaluation included an as-
—
sessment by our IT-specialists of the appropriateness
of the systems concerned and associated interfaces to
ensure the completeness of data as well as the audit of
automated controls for data processing. As part of our
audit we assessed in particular the appropriateness of
the risk classification procedures as well as the risk
provisioning parameters used. For this purpose, we
analyzed in particular the validations of parameters
that are regularly conducted by the Company. To as-
sess the default risk, we also used targeted sampling of
individual cases to examine whether the attributes for
assignment to the respective risk categories were suit-
ably available and the impairment losses had been cal-
culated using the parameters defined for these risk cat-
egories.
3 The Company's disclosures on the applied "Accounting
policies, assumptions, judgments and estimations" are
contained in the notes to the consolidated financial
statements under note 6 and on "receivables from sales
financing" are contained under note 25.
3 Valuation of provisions for statutory and non-statu-
tory warranty obligations and product guarantees
Provisions for statutory and non-statutory warranty ob-
ligations as well as product guarantees are included in
the consolidated financial statements of BMW Group as
a material amount in other provisions. The obligations
amounted to EUR 6,600 million (approximately 2.9% of
total assets) as at December 31, 2021. BMW Group is re-
sponsible for the legally required warranty and product
guarantees in the respective sales market. In order to
estimate the liabilities arising from statutory and
non-statutory warranty obligations and product guar-
antees for vehicles sold, information on the type and
volume of damages arising and on remedial measures
is recorded and analyzed at vehicle model level. The ex-
pected amount of obligations is extrapolated from costs
of the past and recognized as a provision in the corre-
sponding amount, if the criteria of IAS 37 have been
met. For specific or anticipated individual circumstanc-
es, for example recalls, additional provisions are recog-
nized provided they have not already been taken into
account.
The determination of provisions is associated with una-
voidable estimation uncertainties and is subject to a high
risk of change, depending on factors such as notification
of detected defects as well as claims made by vehicle
owners. Against this background, this matter was of par-
ticular significance during our audit.
In order to assess the appropriateness of the valuation
method used for the determination of the provisions for
statutory and non-statutory warranty obligations as well
as product guarantees including the assumptions and
parameters, we primarily obtained an understanding of
the process for determining the assumptions and pa-
rameters through discussions with the responsible em-
ployees of the BMW Group. We also evaluated the ap-
propriateness as well as effectiveness of controls for
determining the assumptions and parameters. With the
involvement of our IT specialists, we checked the IT sys-
tems used regarding their compliance. We compared the
expenses for claims and technical actions with actual
costs incurred in order to draw conclusions on the fore-
cast accuracy. Based on a targeted sample of vehicle
models, the mathematically correctness of the valuation
model used across the Group was examined. We exam-
ined and evaluated the assumptions used by the
BMW Group concerning the extent to which the past val-
ues were representative of the expected susceptibility of
damage, the expected value of damage per vehicle
262
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Independent Auditor's Report
Remuneration Report
Other Information
In our view, the assumptions and parameters used in the
measurement of receivables from sales financing were
appropriate overall.
Evaluate the technical validity of the ESEF documents,
i.e., whether the electronic file containing the ESEF doc-
uments meets the requirements of the Delegated Regu-
lation (EU) 2019/815 in the version in force at the date of
the consolidated financial statements on the technical
specification for this electronic file.
is materially inconsistent with the consolidated financial
statements, with the group management report disclo-
sures audited in terms of content or with our knowledge
obtained in the audit, or
Responsibilities of the Executive Directors and the Su-
pervisory Board for the Consolidated Financial State-
ments and the Group Management Report
We also provide those charged with governance with a
statement that we have complied with the relevant inde-
pendence requirements, and communicate with them all re-
lationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
the related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the consolidated financial state-
ments of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about
the matter.
REQUIREMENTS
Report on the Assurance on the Electronic Rendering of
the Consolidated Financial Statements and the Group
Management Report Prepared for Publication Purposes
in Accordance with § 317 Abs. 3a HGB
Assurance Opinion
We have performed assurance work in accordance with
§ 317 Abs. 3a HGB to obtain reasonable assurance as to
whether the rendering of the consolidated financial state-
ments and the group management report (hereinafter the
"ESEF documents") contained in the electronic file BMW_
AG_KA+KLB_ESEF-2021-12-31.zip and prepared for publi-
cation purposes complies in all material respects with the
requirements of § 328 Abs. 1 HGB for the electronic report-
ing format ("ESEF format"). In accordance with German
legal requirements, this assurance work extends only to
the conversion of the information contained in the consoli-
dated financial statements and the group management re-
port into the ESEF format and therefore relates neither to
the information contained within these renderings nor to
any other information contained in the electronic file identi-
fied above.
In our opinion, the rendering of the consolidated financial
statements and the group management report contained in
the electronic file identified above and prepared for publica-
tion purposes complies in all material respects with the re-
quirements of § 328 Abs. 1 HGB for the electronic reporting
format. Beyond this assurance opinion and our audit opin-
ion on the accompanying consolidated financial statements
and the accompanying group management report for the
financial year from January 1 to December 31, 2021 con-
265
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Independent Auditor's Report
Remuneration Report
Other Information
← = Q
tained in the "Report on the Audit of the Consolidated
Financial Statements and on the Group Management Re-
port" above, we do not express any assurance opinion on
the information contained within these renderings or on the
other information contained in the electronic file identified
above.
Basis for the Assurance Opinion
We conducted our assurance work on the rendering of the
consolidated financial statements and the group manage-
ment report contained in the electronic file identified above
in accordance with § 317 Abs. 3a HGB and the IDW Assur-
ance Standard: Assurance Work on the Electronic Render-
ing of Financial Statements and Management Reports,
Prepared for Publication Purposes in Accordance with
§ 317 Abs. 3a HGB (IDW ASS 410 (10.2021)) and the Inter-
national Standard on Assurance Engagements 3000 (Re-
vised). Our responsibility in accordance therewith is further
described in the "Group Auditor's Responsibilities for the
Assurance Work on the ESEF Documents" section. Our au-
dit firm applies the IDW Standard on Quality Management
1: Requirements for Quality Management in the Audit Firm
(IDW QS 1).
Responsibilities of the Executive Directors and the Su-
pervisory Board for the ESEF Documents
The executive directors of the Company are responsible for
the preparation of the ESEF documents including the elec-
tronic renderings of the consolidated financial statements
and the group management report in accordance with § 328
Abs. 1 Satz 4 Nr. [number] 1 HGB and for the tagging of the
consolidated financial statements in accordance with § 328
Abs. 1 Satz 4 Nr. 2 HGB.
In addition, the executive directors of the Company are re-
sponsible for such internal control as they have considered
necessary to enable the preparation of ESEF documents
that are free from material non-compliance with the require-
ments of § 328 Abs. 1 HGB for the electronic reporting for-
mat, whether due to fraud or error.
The supervisory board is responsible for overseeing the pro-
cess for preparing the ESEF documents as part of the finan-
cial reporting process.
Group Auditor's Responsibilities for the Assurance Work
on the ESEF Documents
Our objective is to obtain reasonable assurance about
whether the ESEF documents are free from material
non-compliance with the requirements of § 328 Abs. 1 HGB,
whether due to fraud or error. We exercise professional judg-
ment and maintain professional skepticism throughout the
assurance work. We also:
Identify and assess the risks of material non-compliance
with the requirements of § 328 Abs. 1 HGB, whether due
to fraud or error, design and perform assurance proce-
dures responsive to those risks, and obtain assurance
evidence that is sufficient and appropriate to provide a
basis for our assurance opinion.
We communicate with those charged with governance re-
garding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any sig-
nificant deficiencies in internal control that we identify during
our audit.
used as a basis. There is a substantial unavoidable risk
that future events will differ materially from the prospec-
tive information.
on the prospective information and on the assumptions REGULATORY
OTHER LEGAL AND
The executive directors are responsible for the preparation of
the consolidated financial statements that comply, in all ma-
terial respects,
with IFRSS as adopted by the EU and the ad-
ditional requirements of German commercial law pursuant to
§ 315e Abs. 1 HGB and that the consolidated financial state-
ments, in compliance with these requirements, give a true
and fair view of the assets, liabilities, financial position, and
financial performance of the Group. In addition the executive
directors are responsible for such internal control as they
have determined necessary to enable the preparation of
consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the exec-
utive directors are responsible for assessing the Group's
ability to continue as a going concern. They also have the
responsibility for disclosing, as applicable, matters related to
going concern. In addition, they are responsible for financial
reporting based on the going concern basis of accounting
unless there is an intention to liquidate the Group or to cease
operations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the
preparation of the group management report that, as a
whole, provides an appropriate view of the Group's position
and is, in all material respects, consistent with the consoli-
dated financial statements, complies with German legal re-
quirements, and appropriately presents the opportunities
and risks of future development. In addition, the executive
directors are responsible for such arrangements and meas-
ures (systems) as they have considered necessary to enable
the preparation of a group management report that is in ac-
cordance with the applicable German legal requirements,
and to be able to provide sufficient appropriate evidence for
the assertions in the group management report.
The supervisory board is responsible for overseeing the
Group's financial reporting process for the preparation of the
consolidated financial statements and of the group manage-
ment report.
Auditor's Responsibilities for the Audit of the Consoli-
dated Financial Statements and of the Group Manage-
ment Report
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or
error, and whether the group management report as a whole
provides an appropriate view of the Group's position and, in
all material respects, is consistent with the consolidated fi-
nancial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropri-
ately presents the opportunities and risks of future develop-
ment, as well as to issue an auditor's report that includes our
audit opinions on the consolidated financial statements and
on the group management report.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with
§ 317 HGB and the EU Audit Regulation and in compliance
with German Generally Accepted Standards for Financial
Statement Audits promulgated by the Institut der Wirtschaft-
sprüfer (IDW) will always detect a material misstatement.
Misstatements can arise from fraud or error and are con-
sidered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements and this group management report.
We exercise professional judgment and maintain profession-
al skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of
the consolidated financial statements and of the group
management report, whether due to fraud or error, design
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropri-
ate to provide a basis for our audit opinions. The risk of
not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
Obtain an understanding of internal control relevant to
the audit of the consolidated financial statements and of
arrangements and measures (systems) relevant to the
audit of the group management report in order to design
audit procedures that are appropriate in the circumstanc-
es, but not for the purpose of expressing an audit opinion
on the effectiveness of these systems.
Evaluate the appropriateness of accounting policies used
by the executive directors and the reasonableness of es-
timates made by the executive directors and related dis-
closures.
otherwise appears to be materially misstated.
Conclude on the appropriateness of the executive direc-
tors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a materi-
al uncertainty exists related to events or conditions that
may cast significant doubt on the Group's ability to con-
tinue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Corporate Governance
Independent Auditor's Report
Remuneration Report
Other Information
← = Q
the auditor's report to the related disclosures in the con-
solidated financial statements and in the group manage-
ment report or, if such disclosures are inadequate, to
modify our respective audit opinions. Our conclusions are
based on the audit evidence obtained up to the date of
our auditor's report. However, future events or conditions
may cause the Group to cease to be able to continue as
a going concern.
Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements present the underlying transactions and
events in a manner that the consolidated financial state-
ments give a true and fair view of the assets, liabilities,
financial position and financial performance of the Group
in compliance with IFRSS as adopted by the EU and the
additional requirements of German commercial law pur-
suant to § 315e Abs. 1 HGB.
Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business activ-
ities within the Group to express audit opinions on the
consolidated financial statements and on the group
management report. We are responsible for the direction,
supervision and performance of the group audit. We re-
main solely responsible for our audit opinions.
Evaluate the consistency of the group management re-
port with the consolidated financial statements, its con-
formity with German law, and the view of the Group's
position it provides.
Perform audit procedures on the prospective information
presented by the executive directors in the group man-
agement report. On the basis of sufficient appropriate
audit evidence we evaluate, in particular, the significant
assumptions used by the executive directors as a basis
for the prospective information and evaluate the proper
derivation of the prospective information from these as-
sumptions. We do not express a separate audit opinion
264
Due to the estimates made by the executive directors in
determining the appreciation effect on the previously
held shares and the associated uncertainties as well as
the significance of this matter for an assessment of the
future net assets and liabilities, financial position and fi-
nancial performance of the Group, this matter was of par-
ticular significance during our audit.
273
To Our Stakeholders
(-)
Performance component of bonus 2021
475,000
14
(-)
(-)
(-)
575,000
PERFORMANCE CASH PLAN
Variable
PCP 2020-2022
(-)
850,000
25
15
15
575,000
(-)
8
(-)
255,000
8
(-)
595,000
18
(-)
(-)
595,000
18
Earnings component of bonus 2021
475,000
14
(-)
Τ
850,000
26
remuneration
12
(-)
62,790
2
(-)
62,790
2
550,000
16
(-)
(-)
640,000
16
550,000
16
382,500
255,000
(-)
11
SHARE-BASED PAYMENT
Cash remuneration component
(investment component) 2020 for holding obligation 2021-2025
Share-based remuneration component
(matching component) 2020 for holding obligation 2021-20253
Personal cash investment amount 20214
RoCE component
Strategic focus target component
Total
Target total remuneration
1 Remuneration system as of financial year 2021.
2 Remuneration system applicable until financial year 2020.
(-)
(-)
382,500
(-)
(-)
(-)
Performance component of bonus 2020
271
FY 20211
FY 20202
FY 20211
in €
in %
BMW Group Report 2021
in €
in €
in %
in €
FY 2020²
in %
Fixed remuneration (basic remuneration)
900,000
in %
The remuneration system observes the principle of con-
sistency between the remuneration systems in the com-
pany: The remuneration systems for the Board of Man-
agement, executives and employees of BMW AG are all
designed in a similar way.
Combined Management Report
Group Financial Statements
310 III. Remuneration of the members of the
Supervisory Board
306 10. Remuneration granted and owed to
former members of the Board of Manage-
ment pursuant to § 162 of the German Stock
Corporation Act (AktG)
295 9. Remuneration granted and owed to mem-
bers of the Board of Management pursuant
to § 162 of the German Stock Corporation
Act (AktG)
295 8. Regulations in the event of death, inva-
lidity and post-contractual non-competition
clause
295 7. Malus and clawback provisions
294 6. Retirement benefits
272 1. Principles of the remuneration system
and the contribution of remuneration to
the promotion of the company's business
strategy and its long-term development
274 2. Overview of remuneration system from
the financial year 2021 onwards
277 3. Determination and review of the remuner-
ation system and individual remuneration
284 4. Remuneration for the 2021 financial year
294 5. Shareholding rules
Board of Management
272 II. Remuneration of the members of the
271 I. Review of the past financial year from a
remuneration perspective
REMUNERATION REPORT
← = Q
Other Information
Remuneration Report
Corporate Governance
27
800,000
24
1,050,000
10
350,000
11
Total
1,343,237
40
1,251,973
37
1,468,525
38
1,168,408
35
BONUS
Earnings component of bonus 2020
(-)
400,000
CC
10
12
27
800,000
24
Fixed
remuneration
Fringe benefits (other remuneration)
43,237
1
101,973
3
18,525
0.5
18,408
1
Contribution to the company pension scheme
400,000
350,000
310 1. Articles of Incorporation and procedure
310 2. Principles and elements of remuneration
310 3. Remuneration granted and owed to
(-)
16
18
(-)
C C
127,500
8
297,500
700,000
18
575,000
15
(-)
(-)
475,000
14
Earnings component of bonus 2021
(-)
Performance component of bonus 2020
(-)
Total
1,472,746
38
1,324,231
35
1,397,833
41
603,593
36
BONUS
Earnings component of bonus 2020
(-)
(-)
300,000
8
(-)
(-)
Performance component of bonus 2021
575,000
Strategic focus target component
Total
Target total remuneration
1 Remuneration system as of financial year 2021.
2 Remuneration system applicable until financial year 2020.
(-)
950,000
25
に
450,000
12
(-)
(-)
68,802
2
RoCE component
10
Personal cash investment amount 20214
Share-based remuneration component
15
(-)
(-)
475,000
14
(-)
(-)
PERFORMANCE CASH PLAN
Variable
PCP 2020-2022
remuneration
SHARE-BASED PAYMENT
Cash remuneration component
(investment component) 2020 for holding obligation 2021-2025
(-)
(matching component) 2020 for holding obligation 2021-20253
640,000
175,000
400,000
3 Provisional monetary value calculated as of 2 January 2021 in accordance with German Accounting Standard 17, as amended. The final number of matching shares and/or the final cash
value will only be determined when the investment obligation is fulfilled in shares of common stock of the company.
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
280
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
100
Group Financial Statements
Remuneration Report
Other Information
← = Q
TARGET REMUNERATION FOR THE FINANCIAL YEAR 2021 (2020)
NICOLAS PETER
Finance
since 1 January 2017
Corporate Governance
3,313,698
65
2,145,290
(-)
(-)
2,050,000
60
2,145,290
63
2,430,000
3,393,237
100
3,397,263
100
3,898,525
100
68
62
FRANK WEBER
Development
since 1 July 2020
FY 20211
FY 2020²
Fixed
remuneration
Fringe benefits (other remuneration)
22,746
1
24,231
1
97,833
3
28,593
2
Contribution to the company pension scheme
400,000
10
350,000
9
24
12
400,000
900,000
FY 20211
FY 2020²
in €
in %
in €
in %
in €
in %
in €
in %
Fixed remuneration (basic remuneration)
1,050,000
27
950,000
25
26
I
members of the Supervisory Board pursuant
to § 162 of the German Stock Corporation
Act (AktG)
318 V. Other considerations
OLIVER ZIPSE
Chairman of the Board of Management since 16 August 2019
Member of the Board of Management since 13 May 2015
ILKA HORSTMEIER
Human Resources, Labour Relations Director
since 1 November 2019
FY 20211
TARGET REMUNERATION FOR THE FINANCIAL YEAR 2021 (2020)
FY 20202
in %
in €
in %
in €
FY 20211
in %
Fixed
remuneration
in €
← = Q
Other Information
Remuneration Report
in %
Fringe benefits
1-4%
Contributions to
retirement
benefit plans
7-12%
Basic
remuneration
25-30%
Share-based
payment
31-36%
Variable
remuneration
58-66%
Bonus
27-30%
Excluding a possible payment to new members of the Board of Management to compensate for salary
losses from a previous employment relationship and/or to cover relocation costs.
278
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Fixed remuneration (basic remuneration)
Fringe benefits (other remuneration)
1,950,000
27
1,800,000
400,000
12
350,000
10
Total
2,669,355
37
2,366,256
35
1,347,633
40
1,237,374
37
BONUS
Earnings component of bonus 2020
Performance component of bonus 2020
Earnings component of bonus 2021
7
BOARD OF MANAGEMENT
500,000
700,000
27
900,000
26
in €
800,000
FY 20202
in %
24
19,355
0.3
66,256
1
47,633
1
87,374
3
Contribution to the company pension scheme
10
(-)
REMUNERATION FOR MEMBERS OF THE
a) Target remuneration for the 2021 financial year
The following tables show the individual target remuneration
of the members of the Board of Management and the rela-
tive share of the respective remuneration component in the
total target remuneration.
Strategic focus target component (at 100%
target achievement corresponds to 50% of
target amount]
Remuneration linked to corporate strategy
Parameters/measurement base, applicable amounts
- Target amount RoCE component p. a. (50% of target amount of the personal investment cash amount):
- € 0.55 million (first period of office)
― € 0.264 million (from second period of office or fourth year of mandate)
RoCE component (at 100% target achievement
corresponds to 50% of target amount)
― € 1.175 million (Chairman of the Board of Management)
― ROCE factor is derived from the RoCE achieved in the Automotive segment for the vesting year
― Minimum, target and maximum values for ROCE are defined before the start of the financial year
- ROCE factor may not exceed 1.8
- Maximum amount of RoCE component p. a.:
- € 0.990 million (first period of office)
― € 1.152 million (from second period of office or fourth year of mandate)
- Formula: 50% of target amount x ROCE factor
VARIABLE REMUNERATION COMPONENTS
Share-based remuneration
COMPONENT
← = Q
― € 2.35 million (Chairman of the Board of Management)
- 50% of target amount depends on ROCE achieved in the Automotive segment (ROCE component)
- 50% of the target amount depends on the achievement of predefined strategic focus targets (strategic focus target component)
- Capped at 180% of target amount
― Payment after the Annual General Meeting at which the Company Financial Statements are presented for the relevant vesting year
1 See below for the set targets for the 2021 financial year (Variable remuneration for the 2021 financial year).
>
276
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
― € 2.115 million (Chairman of the Board of Management)
— Target amount strategic focus target component p. a. (50% of target amount of personal investment cash amount):
- € 0.55 million (first period of office)
€ 0.64 million (from second period of office or fourth year of mandate)
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
3.
Determination and review of the remuneration system and
individual remuneration
Determining the system and structure of Board of Manage-
ment remuneration, and reviewing it regularly, is a task of the
full Supervisory Board, as is determining the individual level
of remuneration of members of the Board of Management.
The Personnel Committee of the Supervisory Board assumes
a preparatory function in the determination and review of the
remuneration system as a whole, and of the individual remu-
neration paid to members of the Board of Management.
The Supervisory Board reviews the remuneration system
annually to ensure it is appropriate in terms of structure, tar-
get and maximum remuneration, as well as actual remuner-
ation. The Supervisory Board also takes remuneration stud-
ies into account when assessing the market conformity of
the target and maximum remuneration, as well as when
assessing actual remuneration in horizontal terms. Due to
the size and structure of the BMW Group, DAX companies
are used as a comparison group and the remuneration data
from this group is compared with the remuneration paid to
members of the Board of Management at BMW AG. Verti-
cally, the Supervisory Board compares the remuneration of
members of the Board of Management with the remunera-
tion of senior executives and with the average remuneration
of employees employed by BMW AG in Germany in areas
inside and outside the scope of collective bargaining agree-
ments, including in terms of how they have changed over a
period of several years. Recommendations from independ-
ent external remuneration experts, as well as suggestions
from investor and analyst circles, may also be included in the
deliberations. For the 2021 financial year, the review has
shown that the target and maximum remuneration as well as
actual remuneration are appropriate.
-
In accordance with the remuneration system, the Supervi-
sory Board acting on the proposal of the Personnel Com-
mittee sets specific target remuneration for each individual
member of the Board of Management for the upcoming
financial year, as well as the performance criteria associated
with the variable remuneration components provided for in
the remuneration system.
The total target remuneration is composed of the fixed remu-
neration and the variable remuneration. Within the variable
remuneration, the proportion of share-based remuneration
as long-term variable remuneration exceeds the share of the
bonus as short-term variable remuneration. The share of the
individual remuneration components is within the ranges
specified by the remuneration system.
277
OVERVIEW OF TOTAL TARGET
― Amounts may also be clawed back in principle after a member has left the Board
- Agreement to withhold variable remuneration in the event of specified serious compliance violations or (withholding amounts provisionally) in the event of reasonable suspicions of such
― Amounts may also be withheld in principle after a member has left the Board
― € 1.175 million (Chairman of the Board of Management)
- At least two strategic focus targets derived from the strategic plan
― Weighting of the strategic focus targets is decided before the start of the financial year
- Formula in event of two strategic focus targets with equal weighting p. a.:
25% of target amount for personal investment cash amount x factor for strategic focus target 1 + 25% of target amount for personal investment cash amount x factor for strategic
focus target 2
― Minimum, target and maximum values are defined before the start of the financial year
― Factor for each strategic focus target may not exceed 1.8
Maximum amount of strategic focus target component p. a.:
- € 0.990 million (first period of office)
― € 1.152 million (from second period of office or fourth year of mandate)
― € 2.115 million (Chairman of the Board of Management)
― personal investment cash amount is 50% dependent on key performance indicator RoCE and is therefore directly linked to a key measure of corporate strategy and reflects BMW AG's
aspiration to generate a significant premium on the cost of capital
―The remaining 50% of the personal investment cash amount is beneficial for the attainment of strategic focus targets and therefore contributes to the BMW Group's operational suc-
cess in strategically important areas
― Commitment to purchase shares of BMW AG common stock and four-years holding requirement is beneficial for the long-term development of the BMW Group
Malus and clawback rules
Malus
Clawback
― Agreement entitling the BMW Group to reclaim variable remuneration already paid out in the event of specified incidences of serious non-compliance, incorrect calculation bases or
incorrect financial statements
314 IV. Comparison of change in remuneration
and earnings pursuant to § 162 (1)
Sentence 2 No. 2 of the German Stock
Corporation Act (AktG)
(-)
8
279
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
Remuneration Report
← = Q
TARGET REMUNERATION FOR THE FINANCIAL YEAR 2021 (2020)
MILAN NEDELJKOVIĆ
Production
since 1 October 2019
PIETER NOTA
Customer, Brands, Sales
Other Information
3 Provisional monetary value calculated as of 2 January 2021 in accordance with German Accounting Standard 17, as amended. The final number of matching shares and/or the final cash
value will only be determined when the investment obligation is fulfilled in shares of common stock of the company.
100
63
(-)
(-)
4,450,000
63
4,333,873
65
2,050,000
60
7,119,355
100
6,700,129
100
3,397,633
100
2,145,290
3,382,664
since 1 January 2018
The remuneration system takes into account both the
performance of the entire Board of Management and the
achievement of individual targets.
The remuneration system ensures that both positive and
negative developments are appropriately reflected in the
remuneration ("pay for performance").
The total remuneration of the members of the Board of
Management is commensurate with their tasks and per-
formance as well as the company's situation.
To Our Stakeholders
BMW Group Report 2021
272
1 Due to rounding, it is possible that individual figures in this report may not add up
exactly to the totals provided, and that the percentages presented here may not be
an exact reflection of the absolute values to which they relate.
Under the leadership of the Board of Management, the
BMW Group's management continued to steer the company
in a prudent fashion through the volatile and challenging
environment that characterised last year. For example, the
production, sales and purchasing networks successfully
managed the challenges associated with the coronavirus
pandemic and supply bottlenecks, demonstrating genuine
flexibility in the process. As a result, the impact of Covid-19
was limited over the past financial year.
Despite the challenges posed by supply shortages and the
ongoing coronavirus pandemic, 2021 was a very successful
financial year for the BMW Group, with solid sales growth for
its BMW, MINI and Rolls-Royce brands. The BMW brand set
a new sales record and took over the top position in the
global premium segment. In 2021, the BMW Group also con-
sistently pushed ahead with the expansion of its range of
electrified models, increasing the share of electrified vehicles
sold by the BMW and MINI brands by more than 70 per cent
compared to 2020. The launch of the BMW iX and the BMW
14 also marked the entry of two products at the forefront of
innovation to the market.
effect from 1 January 2021. The Annual General Meeting
approved it on 12 May 2021 with a majority of 91.60% of the
valid votes cast.
The Supervisory Board adopted the current remuneration
system for the members of the Board of Management with
Review of the past financial year from a remunera-
tion perspective
I.
The auditing firm PricewaterhouseCoopers GmbH has
audited the remuneration report beyond the requirements of
§162 (3) Sentences 1 and 2 AktG.
In order to facilitate understanding, the basic features of the
remuneration systems applicable to the members of the
Board of Management and the members of the Supervisory
Board, as applied in the 2021 financial year, are also set out
below. In view of the fact that individual members of the Board
of Management also received remuneration components from
earlier remuneration systems during the 2021 financial year
(specifically the remuneration systems for the 2016 financial
year and for 2019 financial year) elements of these systems
are also explained to the extent necessary for comprehension.
The Board of Management and the Supervisory Board have
prepared this Remuneration Report in accordance with the
requirements of § 162 of the German Stock Corporation Act
(AktG). As a result of the implementation of the second EU
Shareholder Rights Directive via §162 AktG, the reporting
standard applicable to Bayerische Motoren Werke Aktienge-
sellschaft (BMW AG) has changed as of the reporting year
2021. The report shows and explains the remuneration
granted and owed to the individual current and former mem-
bers of the Board of Management and the Supervisory
Board of BMW AG in the financial year 2021.1
REMUNERATION REPORT
318 VI. Outlook for the 2022 financial year
319 VII. Auditor's Report
Combined Management Report
16
Group Financial Statements
Remuneration Report
ment.
The remuneration structure is geared towards the sus-
tainable and long-term development of the company.
Therefore, variable remuneration components are pre-
dominantly granted on the basis of a multi-year assess-
The remuneration system in place since the 2021 financial
year is easy to understand and clearly structured. It complies
with the provisions of the German Stock Corporation Act
(AktG) and the recommendations and suggestions of the
German Corporate Governance Code. The Supervisory
Board has applied the following principles in designing the
remuneration system for the Board of Management:
Principles of the remuneration system and the contribution
of remuneration to the promotion of the company's business
strategy and its long-term development
1.
II. Remuneration of the members of the Board of
Management
In the 2021 financial year, there were several changes to the
composition of the Supervisory Board, meaning that the
Supervisory Board remuneration for individual Supervisory
Board members had to be calculated pro rata temporis. With
effect from the end of the 2021 Annual General Meeting, Dr.
Kley resigned from the Supervisory Board and the Personnel
Committee, which, among other things, is responsible for
preparing decisions in connection with Board of Manage-
ment remuneration. The Supervisory Board elected Dr. Bock
as his successor on the Personnel Committee, with effect
from 12 May 2021.
The remuneration system for the members of the Supervi-
sory Board is set out in Article 15 of the Articles of Incorpora-
tion. It was confirmed by the Annual General Meeting on 12
May 2021 with a majority of 99.40% of the valid votes cast,
and implemented for the 2021 financial year in accordance
with the provisions of the Articles of Incorporation.
The composition of the Board of Management did not
change during the year. For Dr. Wendt, the target remunera-
tion applicable to Members of the Board of Management
from the second mandate period onwards was applied at
the beginning of his second mandate period, from 1 October
2021 onwards.
If necessary, and in the interest of the long-term success of
BMW AG, the Supervisory Board may temporarily deviate
from the remuneration system - as provided for in § 87a (2)
Sentence 2 AktG. In accordance with G.11 of the German Cor-
porate Governance Code dated 16 December 2019, the
Supervisory Board has also reserved the right to make
adjustments if extraordinary developments occur, such as
significant acquisitions and disposals, or changes in
accounting standards or tax regulations that have a signifi-
cant impact. After due examination, the Supervisory Board
did not make use of these options for the 2021 financial year.
Thanks to its strong overall performance, the Board of Man-
agement exceeded both the financial and non-financial tar-
gets for short-term variable remuneration (bonuses) 7 "Bonus
for the 2021 financial year". The financial target regarding long-
term variable remuneration (share-based remuneration)
was also exceeded with regard to the return on capital
employed (ROCE) in the Automotive segment. The Board of
Management achieved (or nearly achieved) the ambitious
non-financial strategic focus targets for long-term variable
remuneration. At 115.9 g/km, fleet carbon emissions came
in under the EU legal limit of 125.8 g/km "Share-based remuner-
ation for the 2021 financial year".
In December 2020, the Supervisory Board set ambitious tar-
gets linked to the variable remuneration of the members of
the Board of Management for the 2021 financial year. Of the
total variable target remuneration available, approximately
38% is linked to environmental, social or governance (ESG)
targets. It set targets for fleet carbon emissions in the EU
and sales targets for electrified vehicles in the 2021 financial
year as strategic focus targets for long-term variable remu-
neration (share-based remuneration). In doing so, it attached
particular significance to the strategic importance of acceler-
ating market penetration for electrified vehicles and sustain-
ability targets in determining remuneration.
At the same time, the Board of Management of the
BMW Group worked very constructively and intensively on
the core strategic course for the future, in order to create the
conditions for an attractive and future-oriented product port-
folio, and to achieve a significant improvement in profitabil-
ity. The strategic decisions taken in this regard focused in
particular on strategic issues related to electrification.
← = Q
Other Information
Corporate Governance
540,000
550,000
(-)
Performance component of bonus 2021
1,050,000
15
(-)
(-)
475,000
(-)
14
PERFORMANCE CASH PLAN
Variable
PCP 2020-2022
remuneration
SHARE-BASED PAYMENT
Cash remuneration component
CC
(-)
14
475,000
(-)
(-)
1,260,000
19
(-)
CC
255,000
8
(-)
595,000
18
1,050,000
15
(-)
(-)
(investment component) 2020 for holding obligation 2021-2025
Share-based remuneration component
(matching component) 2020 for holding obligation 2021-20253
Personal cash investment amount 20214
11
(-)
123,873
2
(-)
62,790
2
1,175,000
17
(-)
(-)
550,000
16
1,175,000
17
382,500
(-)
(-)
12
RoCE component
Strategic focus target component
Total
Target total remuneration
1 Remuneration system as of financial year 2021.
2 Remuneration system applicable until financial year 2020.
(-)
1,600,000
24
Τ
850,000
25
(-)
(-)
810,000
(-)
I
425,000
25
- € 2.10 million (Chairman of the Board of Management)
― € 1.15 million (from second period of office or fourth year of mandate)
- € 0.95 million (first period of office)
- Target amount p. a. (at 100% target achievement):
(at 100% target achievement corresponds to
50% of target amount)
Earnings component
(sum of earnings component and performance
component)
Bonus
Bonus
― Base remuneration has the effect of discouraging unduly high levels of risk being to achieve short-term targets, thus contributing to the long-term development of the Company
- Fixed remuneration components are a prerequisite for competitive levels of remuneration to attract and retain Board of Management members with the right qualifications
Chairman of the Board of Management: € 700,000
Member of the Board of Management: € 400,000
Pension contribution p. a.:
Benefits based on amounts credited to individual savings accounts for contributions paid and interest earned, various forms of disbursement
Contractual agreement, main points: non-cash benefits from the use of company cars and the BMW chauffeur service, insurance premiums, contributions towards security systems, employee discounts
The Supervisory Board may award payments to compensate for loss of salary from a previous employment relationship and to cover relocation costs in the case of new entrants.
Defined contribution system with a guaranteed minimum return
― Capped at 180% of target amount
― Payment after the Annual General Meeting at which the Company Financial Statements are presented for the relevant financial year
- Assessment period one year
― Base amount p. a. (50% of target bonus amount):
To Our Stakeholders
BMW Group Report 2021
275
>
- € 1.890 million (Chairman of the Board of Management)
― € 1.035 million (from second period of office or fourth year of mandate)
- € 0.855 million (first period of office)
- Monthly payment on a pro rata basis
- Maximum amount of earnings component p. a.:
―The earnings factor is 1.0 in case of a profit attributable to shareholders of BMW AG amounting to € 5.3 billion and a Group post-tax return on sales of 5.6%
― Profit attributable to shareholders of BMW AG and Group post-tax return on sales in grant year
― Earnings factor is derived from a predefined allocation based on the parameters
- Formula: 50% of target amount x performance factor
― € 1.050 million (Chairman of the Board of Management)
€ 0.575 million (from second period of office or fourth year of mandate)
- € 0.475 million (first period of office)
— The earnings factor is 1.5 in case of a profit attributable to shareholders of BMW AG amounting to € 6.9 billion and a Group post-tax return on sales of 7.3%
― The earnings factor is 0 in case of a profit attributable to shareholders of BMW AG below € 3.0 billion or a Group post-tax return on sales of below 3.0%
-Earnings factor may not exceed 1.8
- € 1.95 million p.a.
Chairman of the Board of Management:
― € 1.05 million p.a. (from second period of office or fourth year of mandate)
274
The amount of the variable share-based remuneration
also depends on the fulfilment of financial and non-fi-
nancial objectives derived from the business strategy,
since 50% of the target cash amount earmarked for
share purchases is linked to a financial key indicator
(ROCE in the Automotive segment), and 50% is linked to
strategic focus targets. The obligation to use the net
amount to purchase shares of common stock in the com-
pany and to hold these shares for at least four years also
motivates the members of the Board of Management to
strive to ensure the long-term positive development of
the company, as this in turn promotes sustainable posi-
tive developments in the price of BMW shares.
do not have to be directly reflected in the key financial
indicators for a given vesting year.
The variable bonus is divided into two parts, which influ-
ence behaviour in different ways. The earnings-related
component of the bonus rewards recipients for achieving
the company's financial targets in the vesting year, and
promotes the earnings-related parts of the business
strategy. In contrast, the performance component of the
bonus is based on non-financial performance criteria,
which are also derived from the business strategy. In this
respect, the performance component of the bonus also
offers particular incentives to encourage individuals con-
sistently to pursue the goals of the business strategy for
the long-term development of the company. These goals
The fixed basic remuneration counteracts the temptation
to take disproportionately high risks in order to achieve
short-term goals, and thus contributes to the long-term
development of the company.
The BMW Group aims to be the most successful and sus-
tainable premium provider of individual mobility. The busi-
ness strategy focuses on the customer and the provision of
sustainable individual mobility in the premium segment, tak-
ing into account high profitability, in order to secure the com-
pany's independence in the future. The remuneration sys-
tem contributes to the implementation of the business
strategy and the sustainable and long-term development of
the company. It also takes into account the concerns of the
company's important stakeholders (in particular, sharehold-
ers, customers, and employees). The incentive effects of the
various remuneration components have a complementary
effect.
The total remuneration is in line with market practice
both in terms of amount and structure, and takes into
account the size, complexity and economic situation of
the company.
BMW Group Report 2021
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
― € 1.28 million (from second period of office or fourth year of mandate)
Other Information
Combined Management Report
To Our Stakeholders
Group Financial Statements
€ 0.90 million p.a. (first period of office)
Member of the Board of Management:
Parameters/measurement base, applicable amounts
VARIABLE REMUNERATION COMPONENTS
Remuneration linked to corporate strategy
Compensation payments
Retirement benefits
Fringe benefits
Combined Management Report
Base remuneration
The table below shows an overview of the remuneration system applicable from the financial year 2021 onwards.
COMPONENT
Overview of remuneration system from the financial year 2021 onwards
2.
← = Q
Other Information
Remuneration Report
Corporate Governance
FIXED REMUNERATION COMPONENTS
Group Financial Statements
- € 1.10 million (first period of office)
Remuneration Report
2,430,000
62
2,468,802
65
2,050,000
59
1,072,610
64
3,902,746
100
3,793,033
100
3,447,833
100
1,676,203
(-)
(-)
16
550,000
Corporate Governance
191,250
11
(-)
31,360
2
640,000
100
16
(-)
550,000
16
640,000
16
(-)
(-)
(-)
3 Provisional monetary value calculated as of 2 January 2021 in accordance with German Accounting Standard 17, as amended. The final number of matching shares and/or the final cash
value will only be determined when the investment obligation is fulfilled in shares of common stock of the company.
(-)
— Target amount p. a. (at 100% target achievement):
- € 1.050 million (Chairman of the Board of Management)
― € 0.575 million (from second period of office or fourth year of mandate)
- € 0.475 million (first period of office)
- Base amount p. a. (50% of target bonus amount):
Assessment period one year
Parameters/measurement base, applicable amounts
Basis of computation
- Formula: 50% of target amount x performance factor
Share-based remuneration
Personal investment cash amount
Performance component
Bonus
VARIABLE REMUNERATION COMPONENTS
COMPONENT
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
Other Information
← = Q
(at 100% target achievement corresponds to
50% of target amount)
― Primarily qualitative, non-financial criteria, expressed in terms of a performance factor aimed at measuring the Board members contribution to sustainable and long-term performance
and corporate orientation
Remuneration linked to corporate strategy
- Additional trend analysis over at least three financial years
- Performance component of bonus motivates the pursuit of non-financial strategic targets and is therefore beneficial for the long-term development of the BMW Group
- Requirement for Board of Management members to invest an earmarked cash amount (personal cash investment amount), net of tax and deductions, in shares of BMW common stock
― Requirement for Board of Management members to hold the acquired shares of common stock for at least four years (share ownership guideline)
- Relevant period is the vesting year
― Assessment period of five years in total (one year for determining the personal cash investment amount, four years holding requirement)
― Earnings component of bonus rewards attainment of financial targets and is beneficial for earnings-related aspects of business strategy
― € 1.890 million (Chairman of the Board of Management)
- € 0.855 million (first period of office)
- Maximum amount of performance component p. a.:
― € 1.035 million (from second period of office or fourth year of mandate)
-10% individual targets
― Measurement parameters and target values are determined before the start of the financial year
― Criteria for the other cross-divisional targets include in particular: market position compared to competitors, innovation performance (economic), development of the BMW Group's
reputation based on non-ESG-related aspects (e.g. perception on capital markets, brand strength), customer orientation
― Criteria for the cross-divisional targets with ESG criteria include in particular: innovation performance (environmental, e.g. reduction of carbon emissions), development of the BMW
Group's reputation based on ESG aspects (e.g. corporate culture, promotion of integrity and compliance), adaptability, attractiveness as an employer, leadership performance
- Composition of performance factor:1
- 50% cross-divisional targets with ESG criteria
― Performance factor may not exceed 1.8
-40% other cross-divisional targets
1,050,000
18,525
1,068,525
1,050,000
18,525
1,068,525
900,000
43,237
943,237
1,969,355
947,633
947,633
1,969,355
Earnings component of bonus
900,000
43,237
943,237
1,890,000
0
855,000
0
855,000
0
1,035,000
Performance component of bonus
1,890,000
0
855,000
47,633
0
0
47,633
BONUS
19,355
855,000
In addition to the maximum limits for the individual compo-
nents of overall remuneration, the Supervisory Board also set
minimum thresholds that had to be exceeded in order for a tar-
get to be achieved. If these minimum thresholds are not
reached, the relevant component of the variable remuneration
is not paid.
MAXIMUM AND MINIMUM REMUNERATION FOR THE FINANCIAL YEAR 2021
OLIVER ZIPSE
Chairman of the Board of Management
since 16 August 2019
Member of the Board of Management
since 13 May 2015
in €
Fixed
Fixed remuneration (basic remuneration]
Fringe benefits
remuneration
Total
ILKA HORSTMEIER
Human Resources,
Labour Relations Director
Member of the Board of Management
since 1 November 2019
MILAN NEDELJKOVIĆ
Production
Board of the Board of Management
since 1 October 2019
19,355
PIETER NOTA
Customer, Brands, Sales
Member of the Board of Management
Max
Min
1,950,000
1,950,000
Max
900,000
Min
Max
Min
Max.
Min.
900,000
since 1 January 2018
0
947,633
Variable
4,374,000
0
Total fixed and variable remuneration
9,979,355
1,969,355
4,637,633
The total fixed maximum remuneration is less than the sum of
the maximum amounts for the individual components.
4,633,237
Pension expense²
Maximum remuneration ³ / Minimum remuneration
702,274
9,850,000
0
702,274
401,765
401,466
2,671,629
4,925,000
1,349,398
4,925,000
943,237
401,466
1,344,703
5,442,525
402,852
5,500,000
1,068,525
402,852
1,471,377
1 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
2 The pension contribution and any service cost in excess of this contribution represent the cost to the Company. This amount is not paid out to the relevant member of the Board of Management.
3 Maximum remuneration within the meaning of § 87 a (1) Sentence 2 no. 1 German Stock Corporation Act (AktG). This total upper limit is lower than the sum of the maximum amounts from the individual components.
Any special payments to compensate for loss of salary from a previous employment relationship and/or to cover relocation costs for new appointments are also covered by the maximum remuneration.
401,765
1,035,000
3,690,000
3,690,000
SHARE-BASED REMUNERATION
remuneration
(PERSONAL CASH INVESTMENT AMOUNT) 1
RoCE component
2,115,000
0
990,000
0
990,000
0
1,152,000
0
0
2,115,000
0
990,000
0
990,000
0
1,152,000
0
Total
8,010,000
0
Strategic focus target component
to cover relocation costs for new appointments are also cov-
ered by the maximum remuneration.
2
The Supervisory Board has set upper limits on the remunera-
tion of Members of the Board of Management for the 2021
financial year (vesting year) in two ways: It has set maximum
limits in terms of the amount paid for all variable remuneration
components and, additionally, for the total remuneration of the
Board of Management members in each case. Both compo-
nents of the bonus and both components of the share-based
remuneration (the personal cash investment amount) are lim-
ited to a maximum of 180% of the respective target amount.
Contribution to the company pension scheme
400,000
11
350,000
10
Total
1,397,803
39
1,206,319
36
BONUS
2
Earnings component of bonus 2020
255,000
8
Performance component of bonus 2020
Earnings component of bonus 2021
(-)
(-)
595,000
18
500,000
14
(-)
Performance component of bonus 2021
(-)
500,000
56,319
60,303
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
TARGET REMUNERATION FOR THE FINANCIAL YEAR 2021 (2020)
ANDREAS WENDT
Purchasing and Supplier Network
2
from 1 October 2018 until 31 December 2021
FY 2020²
in €
in %
in €
in %
Fixed
remuneration
Fixed remuneration (basic remuneration)
Fringe benefits (other remuneration)
937,500
26
800,000
24
FY 20211
14
(-)
PERFORMANCE CASH PLAN
16
(-)
(-)
2,145,000
61
2,145,290
64
3,542,803
100
3,351,609
100
572,500
3 Provisional monetary value calculated as of 2 January 2021 in accordance with German Accounting Standard 17, as amended. The final number of matching shares and/or the final cash
value will only be determined when the investment obligation is fulfilled in shares of common stock of the company.
282
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
b)
Maximum and minimum remuneration for the financial year
2021
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
(-)
16
572,500
Variable
PCP 2020-2022
(-)
850,000
25
remuneration
SHARE-BASED PAYMENT
Cash remuneration component
(investment component) 2020 for holding obligation 2021-2025
(-)
(-)
382,500
11
Share-based remuneration component
(matching component) 2020 for holding obligation 2021-20253
(-)
62,790
283
Personal cash investment amount 20214
RoCE component
Strategic focus target component
Total
Target total remuneration
1 Remuneration system as of financial year 2021.
2 Remuneration system applicable until financial year 2020.
The maximum remuneration of the Members of the Board of
Management for the vesting year 2021, as determined in
accordance with § 87a (1) Sentence 2 No. 1 AktG includes, as
fixed components, the basic remuneration for 2021, other fixed
remuneration for 2021, the pension contribution, and any ser-
vice cost in excess of that contribution for 2021. The maximum
remuneration includes the bonus for the vesting year 2021 and
the share-based remuneration as variable components for the
vesting year 2021. Any special payments to compensate for
loss of salary from a previous employment relationship and/or
BMW Group Report 2021
Max
Combined Management Report
The amount of the basic remuneration depends on the indi-
vidual's respective function on the Board of Management
and the duration of their tenure on the Board of Manage-
ment or their appointment period, as applicable.
The fringe benefits include, in particular, insurance benefits,
non-cash benefits from vehicle use and use of telephones
and computers, health care, employee discounts and subsi-
dies for safety equipment. In addition, the Supervisory Board
can approve payments to newly appointed members of the
Board of Management in order to compensate them for loss
of salary from a previous employment relationship and/or to
cover relocation costs. No such approvals were issued in the
2021 financial year.
b) Variable remuneration for the 2021 financial year
The variable remuneration for the 2021 financial year con-
sists of the bonus and the share-based remuneration. The
bonus consists of the earnings and performance compo-
nents, and the share-based remuneration (personal cash
investment amount) consists of the RoCE component and
the strategic focus targets component. The performance cri-
teria for the variable remuneration paid to members of the
Board of Management are based on the Group's key strate-
gic financial and non-financial targets and performance indi-
cators, and sustainably promote the Group's development.
When determining specific target values, the Supervisory
Board takes into account, in particular, long-term corporate
planning and business development planning for the follow-
ing year. These plans are prepared by the Board of Manage-
ment and submitted to the Supervisory Board for approval.
For details of the strategic relevance of the individual remu-
neration components, see also above Overview of remuneration
system.
285
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
OVERVIEW OF VARIABLE TARGET REMUNERATION
OVERVIEW OF THE COMPOSITION OF THE BONUS
Bonus
Performance
component¹
Bonus
Earnings
component¹
1 Each represents approx. 23-24% of variable target remuneration.
² Each represents approx. 26-27% of variable target remuneration.
Share-based
payment
RoCE component²
EARNINGS COMPONENT
Share-based
997,803
60,303
937,500
997,833
OVERVIEW OF FIXED REMUNERATION FOR THE 2021 FINANCIAL YEAR (IN €)
Oliver Zipse
Ilka Horstmeier
Milan Nedeljković
Pieter Nota
Nicolas Peter
Frank Weber
Andreas Wendt
remuneration) Total fixed remuneration
19,355
1,969,355
947,633
943,237
Fringe benefits (other
Base salary
payment
1,950,000
47,633
900,000
43,237
1,050,000
18,525
1,068,525
1,050,000
22,746
1,072,746
900,000
97,833
900,000
Strategic
focus target
component²
PERFORMANCE COMPONENT
50% OF TARGET AMOUNT
3.0
5.3
minimum value
target value
1 Simplified depiction
2 Earnings factor 2021
1.800²
Profit attributable to
shareholders in € billion
11.0
maximum value
286
minimum value
BMW Group Report 2021
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Targets set and extent of achievement - earnings component of
the bonus for the 2021 financial year
The targets set and the extent to which they have been
achieved, as well as the specific amounts associated with
the earnings component of the bonus for the 2021 financial
year, are shown in the following tables. In the financial year
2021, BMW AG's share of profit attributable to shareholders
was € 12.4 billion, and the Group post-tax return on sales
was 11.2%. Both key indicators exceeded the maximum val-
ues defined for the assessment of the earnings component,
so the earnings factor has been capped at the maximum
value of 1.800 (corresponding to a target achievement of
180%, the highest possible percentage).
Performance component of the bonus
The performance component of the bonus rewards the
achievement of certain non-financial targets. Before the
beginning of the financial year, the Supervisory Board sets
these targets in the form of various non-financial perfor-
mance criteria and associated metrics. The performance cri-
teria are derived primarily from the corporate strategy, long-
term corporate planning and the business development
planning done for the following year. The targets are divided
into individual targets for the individual members of the Board
of Management (departmental targets) and collective targets
for the entire Board of Management (interdepartmental tar-
gets). The Supervisory Board has discretion in weighting the
performance criteria. Approximately 10% of the target
amount for the performance bonus is intended to be allo-
TARGETS SET AND ACHIEVED EARNINGS COMPONENT OF BONUS FOR THE FINANCIAL YEAR 2021
To Our Stakeholders
a) Fixed remuneration for the 2021 financial year
Each member of the Board of Management receives a fixed
basic remuneration, which is paid monthly on a pro rata
basis. The fixed basic remuneration ensures a minimum
income appropriate to the tasks and responsibilities of a
member of the Board of Management. It counteracts the
temptation to take disproportionately high risks in order to
achieve short-term goals, and thus contributes to the com-
pany's long-term development.
3.0
1.000
EARNINGS FACTOR
50% OF TARGET AMOUNT
PERFORMANCE FACTOR
BONUS
(MAX. 180% OF
TARGET AMOUNT)
x
-
Earnings factor is derived from an allocation matrix based on
the parameters "profit attributable to shareholders of BMW AG"
and "Group post-tax return on sales" in the vesting year.
- Earnings factor may not exceed 1.8.
- Performance factor consists of
-50% cross-divisional targets with ESG criteria,
-40% other cross-divisional targets,
-10% individual departmental targets.
- Performance factor may not exceed 1.8.
0.135
(1) Bonus for the 2021 financial year
Overview
Earnings component of the bonus
The earnings component of the bonus rewards the perfor-
mance of the business in the vesting year, as measured by
the financial indicators "Profit attributable to shareholders of
BMW AG" and "Group post-tax return on sales". For this pur-
pose, the Supervisory Board adopts an allocation matrix
before the start of the vesting year, from which an earnings
factor is derived based on the values achieved.
For both indicators, the Supervisory Board defines a mini-
mum value, a target value and a maximum value before the
start of the vesting year. If one of the minimum values is not
reached, the earnings factor is zero (corresponding to a tar-
get achievement of 0%). If both target values are reached,
the earnings factor is 1.000 (corresponding to a target
achievement of 100 %). As of the achievement of both max-
imum values, the earnings factor is 1.800 (corresponding to
a target achievement of 180%, the highest possible per-
centage). For intermediate values, the earnings factor is
derived from the matrix.
EARNINGS COMPONENT OF THE BONUS: ALLOCATION MATRIX¹
Group post-tax return
on sales in %
9.0
maximum value
5.6
target value
The bonus consists of an earnings component and a perfor-
mance component. If 100% of the target is achieved, the
share of the bonus attached to each component is 50% of
the individual target amount of the bonus. The bonus amount
is capped at 180% of the individual target amount. The
bonus is paid following the Annual General Meeting at which
the annual financial statements for the vesting year are pre-
sented.
Remuneration for the 2021 financial year
Following a proposal by the Personnel Committee, the
Supervisory Board determined in December 2020 the target
remuneration for the members of the Board of Management
for the 2021 financial year, as well as the performance crite-
ria for the variable remuneration components provided for in
the remuneration system. In March 2022, at the suggestion
of the Personnel Committee, the Supervisory Board set or
confirmed the amount of the variable remuneration compo-
nents due to the members of the Board of Management for
the 2021 financial year after reviewing and assessing the
extent to which the targets had been achieved.
4.
component is subject to the overall cap set for the vesting
year 2016, which was complied with for the members of the
Board of Management in office at that time.
ANDREAS WENDT
Purchasing and Supplier Network
Member of the Board of Management
from 1 October 2018 to
31 December 2021
Max
Min
Max
Min
Min
1,050,000
1,050,000
900,000
FRANK WEBER
Development
Member of the Board of Management
since 1 July 2020
900,000
937,500
22,746
1,072,746
22,746
97,833
97,833
60,303
60,303
1,072,746
997,833
997,833
997,803
937,500
997,803
Member of the Board of Management
since 1 January 2017
NICOLAS PETER
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
MAXIMUM AND MINIMUM REMUNERATION FOR THE FINANCIAL YEAR 2021
in €
Fixed remuneration (basic remuneration)
Fixed
Fringe benefits
remuneration
Finance
Total
Earnings component of bonus
Performance component of bonus
Variable
SHARE-BASED REMUNERATION
remuneration (PERSONAL CASH INVESTMENT AMOUNT) 1
RoCE component
Strategic focus target component
Total
Total fixed and variable remuneration
Pension expense²
Maximum remuneration ³ / Minimum remuneration
BONUS
To Our Stakeholders
1,035,000
855,000
4,687,833
997,833
401,099
401,099
402,075
5,500,000
1,473,845
4,925,000
402,075
1,399,908
4,858,803
401,099
5,068,750
997,803
401,099
1,398,902
1,072,746
1 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
2 The pension contribution and any service cost in excess of this contribution represent the cost to the Company. This amount is not paid out to the relevant member of the Board of Management.
3 Maximum remuneration within the meaning of § 87 a (1) Sentence 2 no. 1 German Stock Corporation Act (AktG). This total upper limit is lower than the sum of the maximum amounts from the individual components.
Any special payments to compensate for loss of salary from a previous employment relationship and/or to cover relocation costs for new appointments are also covered by the maximum remuneration.
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
The maximum limits for each individual element of the varia-
ble remuneration in the 2021 vesting year and the stipulated
maximum remuneration limits were complied with in all
cases Remuneration granted and owed.
The remuneration granted and owed pursuant to § 162 Ger-
man Stock Corporation Act (AktG) for financial year 2021
7 Remuneration granted and owed includes a payout from the Per-
formance Cash Plan 2019-2021 for members of the Board of
Management who were in office back in the 2019 financial
year. This variable component of the remuneration system
applicable for the financial years 2018 to 2020 falls under
the overall caps set by the Supervisory Board for the vesting
year 2019. A final assessment of compliance with the overall
caps set for the 2019 vesting year will only be possible when
the matching component of the share-based remuneration
for the 2019 vesting year is paid out after the expiry of the
four-year shareholding period in the 2024 financial year.
The remuneration granted and owed for the 2021 financial
year pursuant to § 162 AktG Remuneration granted and owed also
includes the payment of the matching component of the
share-based remuneration for the 2016 vesting year to the
members of the Board of Management who were in office in
that financial year. This payment was made in May 2021,
after the expiry of the four-year shareholding period. This
284
0
5,446,746
3,861,000
0
900,000
0
1,035,000
0
855,000
0
900,000
0
1,152,000
0
0
990,000
1,030,500
0
1,152,000
0
990,000
1,030,500
0
4,374,000
0
3,690,000
0
0
0
OVERVIEW OF DEPARTMENTAL TARGETS FOR THE PERFORMANCE COMPONENT OF THE BONUS FOR FINANCIAL YEAR 2021
281
10%
113.1%
Pieter Nota
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
50%
107.0%
40 %
102.5 %
1.06
575,000
609,500
10%
113.1%
Nicolas Peter
Frank Weber
Andreas Wendt
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
40%
107.0%
50%
116.3%
10%
609,500
503,500
575,000
102.5 %
40 %
107.0%
50%
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
1.06
102.5 %
475,000
102.5 %
Oliver Zipse
Targets
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
Weighting
50%
Average target
achievement
Performance factor
Proportionate target
bonus amount in €
Performance component
of bonus in €
107.0%
40 %
102.5 %
1.06
1,050,000
1,113,000
10%
118.1%
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
40 %
107.0%
50%
Interdepartmental targets - ESG
Interdepartmental targets - Other
Departmental targets
Milan Nedeljković
113.8%
1.06
10%
475,000
1.06
102.5 %
40 %
107.0%
50%
503,500
1.06
475,000
503,500
Personal cash investment
amount
(Cap: 180% of the target
amount)
Overall target achievement
Weighting
Target
50%
ROCE
50%
Strategic Focus
targets
Payment amount
Performance period: 1 year
Taxes
FY
n+1
Acquisition of shares¹
(amounting to 100 % of the
payment amount)
Total performance period: 5 years
1 Simplified depiction. Payment, acquisition of shares and the start of the four-year holding period occur following the Annual General Meeting at which the annual financial statements for the
vesting year are presented.
Freely available
shares
Performance period: 4 years
n+5
n+4
n+3
values determined for the individual strategic focus targets
using this calculation are added together. If two strategic
focus targets are set, each strategic focus target accounts
for 25% of the individual target amount, unless the Supervi-
sory Board decides on a different weighting. If more than
two strategic focus targets are set, the Supervisory Board
determines the weighting of each target.
n+2
FY
FY
FY
при
Share performance over 4 years
هلر
FY
FY
Target amount
OVERVIEW OF SHARE-BASED REMUNERATION
tive long-term capital market performance. Due to the sub-
stantial investment and the fixed holding period associated
with these shares, members of the Board of Management
participate in the long-term positive (and negative) develop-
ment of the company, as reflected in the share price, even
after their departure.
cash investment amounts (less taxes and duties) in BMW
shares of common stock, and to hold these shares for a
period of at least four years (Share Ownership Guideline).
The obligation to purchase BMW shares of common stock
and the multi-year holding period strengthens the entrepre-
neurial long-term orientation of the Board of Management.
Implementing the corporate strategy sustainably by taking
appropriate decisions also creates lasting value for the
shareholders, and thus regularly provides the basis for posi-
(2) Share-based remuneration for the 2021 financial year
As part of the share-based remuneration as a variable long-
term component of remuneration, the members of the Board
of Management receive a cash payment earmarked for
investment in BMW shares of common stock (the "personal
cash investment amount"). This amount depends on the
achievement of certain financial and non-financial targets in
the past financial year (vesting year). The members of the
Board of Management are obliged to invest their personal
115.6%
10%
530,000
290
500,000
102.5 %
40%
107.0%
50%
115.6%
10%
1.06
OVERVIEW OF TARGET ACHIEVEMENT FOR THE PERFORMANCE COMPONENT OF THE BONUS FOR FINANCIAL YEAR 2021
BMW Group Report 2021
Combined Management Report
strategic focus target, and assigns a factor to each of these
values. If the minimum value is not reached, the factor for
that target is 0. If the target value is reached, the factor for
that target is 1.00. As of the achievement of the maximum
value, the factor for that target is 1.80. The strategic focus
targets component of the personal cash investment amount
is determined in a two-step process. In the first step, the fac-
tor for the vesting year achieved for the relevant strategic
focus target is multiplied by the share of the individual target
amount attributable to this target. In the second step, the
The Supervisory Board sets at least two strategic focus tar-
gets before the start of the vesting year. It derives these tar-
gets from the corporate strategy and corporate planning. It
then sets a minimum, target and maximum value for each
Strategic focus targets component of the personal cash invest-
ment amount
RoCE component of the personal cash investment amount
Before the beginning of the relevant vesting year, the Super-
visory Board sets minimum, target and maximum values for
the ROCE in the Automotive segment in the vesting year on
the basis of corporate planning, and assigns a RoCE factor
to each of these values. If the minimum value is not reached,
the RoCE factor is 0. If the target value is reached, the RoCE
factor is 1.00. As of the achievement of the maximum value,
the ROCE factor is 1.80. The RoCE component of the per-
sonal investment cash amount is determined by multiplying
the ROCE factor for the vesting year by 50% of the individual
target amount.
Target amount for the personal cash investment amount
The target amounts for the individual members of the Board
of Management for the 2021 financial year are presented in
the table "Overview of share-based remuneration for the
2021 financial year", below.
RoCE component + strategic focus targets component
To Our Stakeholders
Personal cash investment amount =
Personal cash investment amount
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
The personal cash investment amount is paid out after the
Annual General Meeting at which the annual financial state-
ments for the vesting year are presented. The size of this
amount depends on the target amount, the RoCE achieved
in the Automotive segment and the degree to which certain
strategic focus targets were achieved in the vesting year. The
personal cash investment amount is limited to a maximum
of 180% of the target amount and is calculated as follows:
← = Q
Ilka Horstmeier
Remuneration Report
Plan sales and prices, realise potential in our sales markets
Prepare and successfully deliver launches of new products
Expand the digital marketing and sales concepts
Expand the internal control system (ICS) with regard to sales management and reporting
Ensure reliable communication with capital markets
Prepare the first Integrated Annual Report and further develop the ICS for non-financial key indicators
Manage financial risk and secure Group financing during and after the Covid-19 pandemic
Coordinate the delivery of Performance NEXT financial targets
Develop attractive and exciting vehicle models
Ensure planned new products are handed over to production on time
Develop new vehicle architecture
Continue to develop automated driving and hydrogen technology
Ensure production flexibility for vehicle components
Maintain an efficient and flexible supplier network during the Covid-19 pandemic
Meet quality requirements and cost targets in the supplier network
Establish a CO₂ management system in the supply chain
1 Collective assessment of the Board of Management as a team. 2 Individual assessment for each member of the Board of Management.
Weighting
Other Information
40%
10%
Target
value
value
Performance criteria
Minimum
Target
← = Q
Reduce carbon emissions in production
Other Information
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
289
Remuneration Report
Achieve quality targets in production
Deliver dynamic alignment of the production structure in line with strategic factors
Ensure the production network is managed effectively
Customer orientation (product, customer service quality)
Innovation performance (economic)
Expand market position
Leadership performance (employee satisfaction)
Employer attractiveness
Develop the Company's reputation e.g. (corporate culture, promoting integrity and ensuring compliance)
Transformability (investment in training and further education, sustainability)
Development of reputation (e.g. awareness in the capital market, brand strength)
Innovation performance (environmental)
Oliver Zipse
All members of the Board
of Management²
Joint departmental targets
Entire Board of Management¹
Interdepartmental other
non-financial targets
Interdepartmental ESG targets
Target set
Maximum
Contribution to meeting growth and profitability targets
Achievement of departmental diversity targets
Preventive activities in ensuring compliance
Promote the strategic development of real estate management
Implement the diversity strategy
Andreas Wendt
Frank Weber
Nicolas Peter
Specific departmental targets
Leadership performance in the department
Pieter Nota
Ilka Horstmeier
Staff restructuring and qualification
Promote employer attractiveness
Continue to develop the Compliance Management System
Present and promote new products
Positioning with regard to proposed legislation
Coordination of the work of the Board of Management
Milan Nedeljković
value
50%
Earnings
factor
cated to the departmental targets. Departmental targets can
be department-specific targets or contributions to shared tar-
gets measured individually for each department. The remain-
der of the target amount for the performance bonus (amount-
ing to approximately 90%) should be associated with
interdepartmental, non-financial targets. In this regard,
around 50% of the target amount should be connected to the
achievement of non-financial targets relating to environmen-
tal, social and governance (i.e., ESG targets).
Targets set and extent of achievement - performance component
of the bonus for the financial year 2021
The targets set by the Supervisory Board for the 2021 vesting
year as part of the performance component of the bonus, the
weighting of the relevant criteria and the individual target
achievement are summarised in the tables below.
In order to determine the extent to which targets were
achieved in 2021, the Supervisory Board assessed the
departmental targets, on the one hand, and the interdepart-
mental targets, on the other hand, within a target achieve-
ment corridor with a partial performance factor between 0
(corresponding to a target being 0% achieved) and 1.80
(corresponding to a target being 180% achieved, the high-
est possible percentage). The performance factor for the
bonus was determined from the two partial performance
factors, with a weighting of 10% for the departmental tar-
gets and 90% for the interdepartmental targets. With regard
to the interdepartmental targets, 50% of the weighting is for
non-financial environmental, social and governance (ESG)
targets, and 40% is for other non-financial targets.
In order to determine the extent to which targets were
achieved, the Supervisory Board assessed the leadership
performance of the individual members of the Board of Man-
agement and the overall performance of the Board of Man-
agement as a whole. With regard to the departmental tar-
gets, the Supervisory Board assessed the individual
performance of each member of the Board of Management.
287
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
With regard to the interdepartmental targets, the Supervi-
sory Board deliberately considered the Board of Manage-
ment as a team and assessed the performance of all the
members of the Board of Management as a whole. The
Supervisory Board's decision-making process is based on a
detailed, documented analysis of performance as measured
against all the agreed criteria, as well as in-depth discus-
sions at Personnel Committee and full Supervisory Board
level. As a basis for its assessment, the Supervisory Board
was guided, in particular, by the quantitative and qualitative
metrics defined in the corporate planning that had been
done before the beginning of the financial year. These met-
rics include, for example, key indicators such as vehicle
sales, segment shares and the share of sales for electrified
vehicles, as well as other metrics for assessing sustainability
performance, R&D rate, the quality of the customer experi-
ence compared to the competition, investments in training
and further education, targets for diversity in the workforce
and the results of employee surveys. The results of compar-
ative studies and calculations were also used to assess indi-
vidual metrics. In addition to a review of performance in
2021, the Supervisory Board carried out a trend review cov-
ering several financial years. In doing so, it assessed the
effects of decisions, measures and the overall course set in
previous financial years on the financial year 2021 and, by
way of a forecast, also estimated the significance of the per-
formance in 2021 for the future development of the company.
Actual achievement
value
in %
COMPONENT OF THE BONUS FOR THE FINANCIAL
YEAR 2021
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
288
1,890,000
855,000
855,000
1,035,000
1,035,000
855,000
900,000
Interdepartmental
ESG targets²
1 Individual assessment for each member of the Board of Management.
2 Collective assessment of the Board of Management as a team.
targets²
non-financial
interdepartmental
40%
Other
10%
Departmental
targets¹
50%
Nicolas Peter
OVERVIEW OF TARGETS OF THE PERFORMANCE
500,000
Member of the Board of Management
OVERVIEW OF EARNINGS COMPONENT OF THE BONUS FOR THE FINANCIAL YEAR 2021
11.2
9.0
5.6
3.0
Oliver Zipse
1,800
12.4
11.0
5.3
3.0
Profit attributable to shareholders of BMW AG in € billion
Pieter Nota
180%
Ilka Horstmeier
Group post-tax return on sales in %
Milan Nedeljković
Andreas Wendt
475,000
Frank Weber
575,000
575,000
475,000
475,000
1.800
1,050,000
Earnings factor
amount in €
Earnings component
Proportionate target bonus
of bonus in €
The BMW Group will continue developing its own dialogue
options on an ongoing basis. We also intend to broaden the
scope of internal dialogue with employees in 2022 (Employ-
ees and society). In addition, we plan to participate in a variety
of public discussion formats going forward.
7 GRI 102-40, 102-43
dialogue
in
Group
BMW
Surveys (including a corporate reputation study), social media, trade fairs, mass media
Moreover, plans are in place for the coming year to expand
the scope of recording the carbon emissions associated with
our investments, with the primary aim of reliably assessing
and transparently documenting the compatibility of our in-
vestments with the climate goals enshrined in the Paris
Agreement. To the extent possible, our aim is to take account
of non-liquid investments in the Group's reporting on sus-
tainability, or at least for all such investments to be reviewed
from a sustainability perspective.
← = Q
The BMW Group will continue to interact closely with its
stakeholders in 2022.
Outlook
STAKEHOLDER GROUPS AND FORMS OF DIALOGUE
Dialogue with Stakeholders
Remuneration Report
Other Information
Customers
The continual dialogue with investors and financial analysts
on sustainability-related topics will be continued. Apart from
direct dialogue, the BMW Group's participation in (virtual)
SRI/ESG roadshows and conferences is again planned.
Dialogue with employees and managers, employee surveys, idea management,
internal media
Media
Dialogue in the context of industry initiatives, joint events, training courses,
presentations, supplier risk assessments
Corporate Governance
Civil society and NGOs
Local stakeholders
Academia
Political
decision makers
and associations
Networks
Dialogue, conferences and technology workshops with investors and analysts
Suppliers
Business partners
Face-to-face meetings / dialogue, responding to enquiries
Discussions with local residents, plant tours, press engagements
Dialogue within the context of press trips, press releases, information events
on new products, test drives, trade fairs
Visiting universities and colleges, talks, discussions, dialogue events with students
Available to answer questions from policymakers and provide information to political
decision makers on relevant topics from the company's perspective
Participation of Company experts in committees and working groups, memberships
of initiatives and associations
Dialogue with sales organisations and coordinating units of importers
Employees
Capital market
Group Financial Statements
BMW Group Report 2021
To Our Stakeholders
into cutting-edge
the ground up and
how to transform
existing plants
both competence
development from
"We have mastered
Statement of the Chairman of
the Board of Management
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
locations for
electromobility."
BMW Group Report 2021
Your Company operates at the intersection of conflicting forces, where conditions are
not only demanding, but also highly complex. The situation is becoming more and
more differentiated from one region of the world to another, with a highly dynamic
rate of change. In this context, it is more important than ever to anticipate require-
ments in the early stages, plan for various scenarios and manage risks effectively.
-
Staying flexible and pivoting quickly.
success.
The BMW brand is back on top of the global premium segment - and we intend
to keep it that way. BMW and Rolls-Royce achieved new all-time highs, as well as
BMW Motorrad. Global market share is also an important currency in our industry. As
a premium manufacturer, we increased our share of the global market to 3.4% during
the coronavirus pandemic – and with a further increase in profitability. Sales in key
individual markets and regions – China, Europe and the US grew significantly in
some cases. Our Financial Services Segment also made a major contribution to our
-
Looking forward confidently even in uncertain times. This characterises your Com-
pany. Our products are in high demand: More than 2.52 million customers took
delivery of a BMW Group vehicle in 2021 - 8.4% more than the previous year. This
number includes almost 330,000 electrified vehicles – an increase of 70 %.
Confident even in uncertain times.
We never stand still – because we are constantly refining our business model. This
strengthens our resilience, building on a solid foundation created by profitability and
sustainable action. We believe the two go hand in hand and are mutually dependent.
Change makes us resilient.
In production, well-designed individual steps ultimately contribute to overall sustain-
ability as well: as promised, production at all our locations has been carbon neutral
on balance since 2021. Our electric motors no longer require rare earths. We use
only green power to produce batteries for our electrified vehicles - as do our battery
cell suppliers. Our batteries are also almost fully recyclable. All of this is relevant for
ramping up electromobility. After all, this year, every one of our plants in Germany will
already be producing electric vehicles.
We deliver on our promises - and can back them up. In 2021, your Company once
again met the European Union's CO₂ targets – even clearly outperforming the legal
requirements by approximately 10 g/km. You can rest assured that we will also meet
our CO, requirements for 2030.
24
-
Dealing with the effects of the coronavirus pandemic demanded a lot of us in 2021.
In typical BMW tradition, and in the spirit of Herbert Quandt, the Company and its
employee representatives once again found flexible solutions. The vaccination cam-
paign we launched together is a good example of this. For our locations in Germany,
we have made the BMW pension scheme even more attractive and increased the
level of benefits. At the plant in Leipzig, work hours have been brought into line with
our Bavarian locations. This shows our sense of community at BMW in difficult times.
Transformation takes place not just on greenfield sites or around the confe-
rence table - but on the ground at our plants.
MINI and Rolls-Royce will be exclusively all-electric from the early 2030s onwards,
while all BMW Motorrad's urban models will be released with e-drives only from
2030. BMW M GmbH has also unveiled its first fully electric model, the BMW iX M60.
the end of Phase II of our transformation - we aim to increase the total
share of our electrified vehicles, that means battery-electric and plug-in hybrids,
to more than 30%. By 2030 - the end of Phase III - more than 50% of our global
deliveries to customers should be fully electric. We are gearing up the Company and
our supply chains for this exponential growth in electromobility.
By 2025
We already aim to at least double our sales of battery-electric vehicles this year com-
pared to 2021.
Our new BMW iX and BMW i4 models are already winning over customers with their
innovations and an electric range of up to 600 kilometres. With the BMW iX, we are
also the first premium manufacturer to introduce the 5G mobile telecommunications
standard in a production vehicle that is available worldwide. Both models are among
the eight fully electric vehicle models we will have on the roads this year; by 2023,
there will be a dozen.
E-mobility shifts into sport mode.
_
New BMW 7 Series: the only luxury sedan to offer drivetrain variety.
All of us at BMW are looking forward to the market launch of the new BMW 7 Series
this year: progressive, digital and innovative, it is also the only luxury sedan to offer
customers a choice of drivetrain variants. By the way, the most powerful variant - the
BMW i7 - is fully electric. In April, we will present it in New York, Munich and Beijing,
representing the major regions of the world.
Our intelligent vehicle architectures enable us to offer different drivetrain variants
efficiently. This benefits customers and the climate alike. We serve markets according
to their individual circumstances and pace of change. In the mid-term, this will also
include hydrogen fuel cell technology - because hydrogen makes it possible to store
sustainably produced energy and release it just as quickly as conventional fuels.
Your Company is leveraging the opportunities and potential of global auto-
motive markets.
The NEUE KLASSE is our exclusively fully electric product range, which will usher
in Phase III of our transformation towards emissions-free mobility. It will be built on
our New Cluster Architecture (NCAR), with the three core forward-looking elements:
“electric”, “digital” and “circular”. This will be the next milestone in BMW history for
future products, technologies and new ways of working. The NEUE KLASSE makes a
significant contribution to sustainability, by relying on the concept of circularity.
NEUE KLASSE for a new age.
We also responded extremely flexibly to semiconductor supply bottlenecks. This is a
stress test we have withstood together. All business units are working hand in hand
to minimise the impact and adjust production to the situation. Our stable and trust-
based relationships with suppliers have proved especially valuable in this respect. We
can expect, and are preparing for, the global supply situation for vehicle components
to remain difficult in 2022.
Statement of the Chairman of
the Board of Management
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To Our Stakeholders
BMW Group Report 2021
25
In 2022, as a sort of counterpart to our main plant in Munich, we will also be laying
the foundation stone for our newest plant in Hungary. The first vehicles for the NEUE
KLASSE will come off the production line in Debrecen in 2025.
Our main plant in Munich will be 100 years old this year. To mark the centenary, we
are smoothly transitioning to 100% electric during ongoing production. With its new
vehicle assembly, the plant will be capable of producing only fully electric models
from 2026 onwards in line with demand. In parallel, we are also working on emis-
sions-free transport logistics. That is what transformation looks like on the ground.
We have mastered both competence development from the ground up and how to
transform existing plants into cutting-edge locations for electromobility. Examples of
this are our two "bookends": our oldest plant, Munich, and our future plant in Hungary.
We are expanding our production network globally and in a targeted manner. For
instance in China: in Shenyang, we will be opening a new plant in Tiexi this year and
expanding the plant in Dadong.
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Building credibility by keeping promises.
Since most of our CO₂ emissions today are produced during the use phase, we have
raised the bar in this area: By 2030, we will reduce CO2 emissions by more than 50%
from 2019 levels. Our targets apply worldwide, including the extra 10% from the
SBTi framework added to fuel consumption figures and including CO₂ emissions from
fuel production and electricity generation. This will in turn also reduce our life cycle
carbon footprint – from the ore mine to kilometres driven on the road – by more than
40%.
We are the first German automotive manufacturer to join the "Business Ambition for
1.5° C" campaign launched by the Science-Based Targets initiative (SBTI).
This means our road to climate neutrality follows a scientifically validated and trans-
parent path.
Statement of the Chairman of
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22
Board of Management
Chairman of the
the Board of Management
Oliver Zipse
BMW Group: The Impact Company.
OF MANAGEMENT
STATEMENT OF THE
CHAIRMAN OF THE BOARD
the Board of Management
Statement of the Chairman of
←三〇
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To Our Stakeholders
We make a difference.
DEAR SHAREHOLDERS,
LADIES AND GENTLEMEN:
A company needs to know what it stands for.
_
We have announced clearly defined targets for 2030 that show how we will continue
to lower CO₂ emissions. As our shareholders, you know that your Company always
takes a holistic approach. We are therefore substantially reducing our environmen-
tal footprint in a measurable way throughout the entire value chain - during the use
phase, in production and in the upstream supply chain. Here, we are adopting a ten-
year perspective because this is a manageable time frame, in which we can take
responsibility for measures ourselves. We do not believe in empty promises. We are
able to report at any given time on how we are performing in all three sustainability
scopes.
Holistic sustainability based on concrete targets.
This is a complex task, and we will continue to learn. Our second Integrated Report
for the financial year 2021 reflects this learning process. The "Integrated Strategy of
the BMW Group" section provides a qualified insight into how strategy and our man-
agement of the Company are intertwined.
Statement of the Chairman of
the Board of Management
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23
23
itself with the BMW i
Vision Circular."
future topic of
circularity for
"BMW has clearly
defined the next big
This is a new step for us - consistent and irreversible. Integrated reporting is a pro-
cess that involves and challenges the whole Company. It requires integrated thinking:
what is the impact of a decision as a whole – from both a business and an
environmental perspective, in the short term, mid-term and in the long term?
We lead the way in the German automotive industry with our integrated reporting of
the Company's financial and non-financial performance.
Your Company presents its second Integrated Report.
That is our internal compass. It guides us - even now, through the many changes we
must navigate as a BMW Group team - with focus and self-assurance. Transform-
ation is part of our DNA - and we all aspire to lead the way. We presented our most
recent example of this last year at the IAA Mobility in Munich: the BMW i Vision Cir-
cular, a car that moves body, heart and mind. With this extraordinary Vision Vehicle,
BMW has clearly defined the next big future topic of "circularity" for itself. Imagine
what we could achieve if we begin thinking consequently about circularity at both
business and macroeconomic levels - and across industries.
The BMW Group exists because we move body, heart and mind.
We want to make a difference. To create the values our customers ask for. To gener-
ate meaningful added value. That is part of our responsibility - because our society
depends on people's mobility and benefits from it.
Your Company has held its own in the marketplace for over 100 years. Yet, far more
important than that is staying resolutely focused on the future – with the support and
backing of a motivated team, shareholders and stakeholders. All of you want to know
why the BMW Group should continue to exist 100 years from now.
-
That is what enables it to stay the course, to rely on its own strengths, to withstand
the headwinds and to constantly reinvent itself. This applies in particular, and in its
own unique way, to the current transformation.
Merging the digital and the physical experience.
Combined Management Report
The modern car is not only one of the most complex items we use as consumers; it is
also becoming a true digital device. It should therefore come as no surprise that digi-
tal business models will account for a growing share of value creation. This applies, in
particular, to the Chinese market, with its many young, technophile customers.
Your Company has around 10,000 IT and software specialists working on research
and development for vehicle digitalisation at ten locations in Europe, Asia and the
Americas. We are collaborating in the regions with major tech players, who are also
our competitors.
Consistency between supply-side and demand-side de-
carbonisation policies
Realistic relationship between emissions targets and
emissions measurement methods
· Support for new efficiency-enhancing technologies
Continued development of the regulatory framework for
automated driving and digital networks
Emissions limits without excluding individual drive tech-
nologies and vehicle concepts
Responsible leadership
Sustainable financing and the EU taxonomy
21
Social responsibility for employees
Circularity and circular design, the use of secondary ma-
terials, particularly in relation to battery recycling
The Paris Climate Agreement and climate neutrality of
the BMW Group by 2050
The BMW Group's interaction with stakeholders includes top-
ics brought to its attention by stakeholders as well as those in
which it proactively engages in dialogue. This combination
gives rise to a comprehensive range of interlinked topics:
7 GRI 102-44
Ensuring a sufficient supply of critical raw materials
BMW Group Xchange
Material topics in 2021
The BMW Group operates on a global scale in a highly inter-
connected world. Its business activities have a major impact
on the environment in which it operates and can have both a
direct and an indirect bearing on the interests of a wide var-
iety of stakeholders. Conversely, societal trends and devel-
opments can influence many aspects of the Group's busi-
ness activities. Against this backdrop, the BMW Group
maintains a continuous dialogue with its stakeholders world-
wide.
Stakeholder engagement
DIALOGUE WITH STAKEHOLDERS
Dialogue with Stakeholders
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To Our Stakeholders
BMW Group Report 2021
Our commitment to stakeholder engagement is set out in the
7 BMW Group Stakeholder Engagement Policy, which outlines both the
dialogue objectives and the criteria for identifying and priori-
tising stakeholders. A variety of suitable dialogue formats
and forms of communication are described in internal guide-
lines. Key topics and formats are summarised below
7 GRI 102-42, 102-43, 102-46.
28
The BMW Group Xchange encompasses all the well-estab-
lished forms of events organised by the Group, such as the
BMW Group Dialogues, the rad°hub and the FUTURE
FORUM, providing the appropriate platforms to encourage
an intensive dialogue with a variety of target groups.
BMW Group Dialogues are usually held in the BMW Group's
key sales regions of North America, Europe and Asia on an
annual basis. The results of these stakeholder dialogues are
documented and incorporated in the Group's strategic
considerations GRI-Index: 102-21.
BMW Group Report 2021
30
The volume of non-liquid pension plan assets invested in our
various impact funds continues to grow according to sched-
ule. The investments made to date in this area relate not
only to climate protection, but also to other Sustainable De-
velopment Goals (SDGs) set by the UN. In 2021, the focus of
investment was on making cities more sustainable and ad-
dressing the consequences of climate change.
In addition, standard benchmarks for measuring the invest-
ment performance of liquid assets were revised again in
2021 with the aid of ESG-oriented indices.
We currently record carbon emissions associated with all our
equity investments and a significant proportion of our
fixed-income assets. The relevant emissions data are includ-
ed in the TCFD Report relating to our UK pension plan, which
is required to be prepared annually in line with legislation that
came into force in 2021 for larger-scale UK pension schemes.
Since 2019, sustainability criteria have also been a major
factor for the BMW Group's pension fund investment strate-
gy. The current focus is on measuring the carbon footprint of
significant parts of these assets on the one hand and the
risks attached to their future performance on the other. The
BMW Group aims to achieve carbon neutrality with respect
to its pension plan assets by 2050 at the latest.
Against the background of the Paris Climate Agreement, pol-
icymakers in Europe are also increasingly addressing the is-
sues of climate protection and sustainability. For example,
the EU Action Plan for Sustainable Finance aims to direct
capital flows towards sustainable economic activities. A key
element of the EU Action Plan is the introduction of a stand-
ardised system to classify what is sustainable and what is
not.EU Taxonomy
cesses.
Financial market presence with sustainability credentials
Regular, in-depth communication with the capital market
has always been given a high priority within the BMW Group.
In the meantime, sustainability has become a decisive cri-
terion on financial markets. Furthermore, investors and fi-
nancial analysts alike are increasingly considering environ-
mental, social and governance (ESG) aspects in their
investment recommendations and decision-making pro-
In the interest of transparency, the BMW Group always dis-
closes the most important association memberships on its
website BMW Group List of Memberships.
At the beginning of 2021, the BMW Group assumed the
presidency of ACEA, the Association of European Automo-
bile Manufacturers (Association des Constructeurs Eu-
ropéens d'Automobiles). In December 2021, it was confirmed
that the BMW Group will continue to chair the association for
a further year (2022).
7 BMW Group Lobbying Policy
7 BMW Group Dialogues are one of the main formats for interact-
ing with stakeholders and have been held regularly since
2011. Major topics covered in recent years have included
electric mobility, corporate citizenship, urban mobility, envir-
onmental and social standards within the supply chain, and
circularity, i. e. the transformation from a linear to a circular
economy with increasingly closed material cycles Resource
efficiency, circular economy and renewable energy.
Apart from its own activities in the area of public policy de-
velopment, the BMW Group is a member of numerous asso-
ciations in various countries. Membership is voluntary in the
majority of cases, although there are some situations in
which it is necessary to join associations in order to comply
with legal requirements.
Participation in public policy development and work in
associations
Dialogue with Stakeholders
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To Our Stakeholders
BMW Group Report 2021
29
29
The BMW Group maintains an active, open and transparent
dialogue with representatives of politics, trade unions, asso-
ciations and non-governmental organisations (NGOs). The
aim is to play a constructive and transparent role in helping
shape the general political framework regarding the Group's
business activities.
THE BOARD OF MANAGEMENT
Member of the Board of Management,
Customer, Brands, Sales
Human Resources, Labour Relations Director
"We see transform-
ation as an oppor-
tunity. As a global
Impact Company,
Chairman of the Board of Management
Oliver Zipse
V.fiume
Yours
Together, we will continue to make a difference in the future, as a global Impact
Company that creates values and generates added value. We hope you will continue
to support us on our BMW way.
I would like to say a sincere thank you for the financial year 2021: to you, our share-
holders, all our customers, our retail organisation and suppliers - and, above all, to
our 118,909 associates. The feedback we received in our Employee Survey clear-
ly reflected back to us that the team stands behind the Company. Our associates
believe BMW has found the right balance between stability and disruption. We see
transformation as an opportunity.
Many people benefit from our success: you, our shareholders, our global team and
society. This year, we will be hiring new staff, both worldwide and at our home base
in Germany - something a company only does when it is full of confidence.
In February 2022, the BMW Group increased its share in the joint venture BMW
Brilliance Automotive Ltd. (BBA) to a 75% majority stake. With full consolidation of
BBA in the BMW Group Financial Statements, we are taking your Company into the
next dimension as a global company. The Chinese market is a driving force for digital
trends. This move will bring us even closer to customers there and enable us to keep
our finger on the pulse.
Your Company is financially and economically stronger than ever. This allows us to
operate independently and invest in our own future. This is certainly something we
can continue to build on.
Dear Shareholders,
the Board of Management
we will continue to
make a difference in
the future."
Statement of the Chairman of
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BMW Group Report 2021
26
26
By 2025, a quarter of our sales will probably be conducted online. That is why our
Sales and Marketing is seamlessly integrating all customer touchpoints, online and
offline. We are implementing future-oriented sales structures in conjunction with our
retailers. That is our culture at BMW.
Focused on the customer and their mobility experience.
At the CES tech show in Las Vegas in January 2022, our BMW iX Flow, featuring E
Ink, received rave reviews from the media and on social media. This unique technol-
ogy allows the exterior to change colour.
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27
27
BMW Group Report 2021
Member of the Board of Management,
Member of the Board of Management,
Finance
Nicolas Peter
Ilka Horstmeier
Chairman of the Board of Management
Member of the Board of Management,
Purchasing and Supplier Network
Joachim Post
Oliver Zipse
Member of the Board of Management,
Development
Frank Weber
MOTOR CARS LTD
ROLLS-ROYCE
MINI
M
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Group Financial Statements
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Pieter Nota
Production
Member of the Board of Management,
Milan Nedeljković
The Board of Management
BMW
GROUP
To Our Stakeholders
Over-the-air updates: BMW has the largest fleet.
Environmental and social standards and respect for human
rights in the supply chain, particularly regarding the pro-
curement of raw materials for electric mobility applications
(-)
Combined Management Report
Payment after AGM 2022,
Acquisition of BMW shares
Present value of own investment 2021
Four-year holding period for
acquired BMW shares
Disbursement after AGM 2022
Bonus 2021
2016
2017
2018
2019
2020
11 May 2021
Basic remuneration and fringe benefits
Contribution to company pension scheme -
1 Simplified depiction.
2022
2026
2 Payment of 2016 cash remuneration component (investment component) in 2017, immediately following the acquisition of BMW shares of common stock subject to holding requirements for 2017-2021.
a) Variable remuneration for the 2021 financial year
The variable remuneration for the 2021 financial year and the
extent to which targets were achieved are set out above in
7 Variable remuneration for the 2021 financial year.
b) Performance Cash Plan 2019-2021
The remuneration system applicable for the financial years
2018-2020 provided for the Performance Cash Plan (PCP)
as a long-term variable cash remuneration component.
For the purposes of calculating the Performance Cash Plan,
a fixed target amount is multiplied by a multi-year target
achievement factor (PCP factor) after the end of a three-year
assessment period. The target amount for a member of the
Board of Management's Performance Cash Plan (100%) in
the first appointment period is € 0.85 million p.a.; from the
second appointment period or the fourth year of mandate
onwards it is € 0.95 million p. a. For the Chairman of the
Board of Management, the target amount is € 1.6 million
p. a. For all members of the Board of Management, the max-
imum payout amount is limited to 180% of the target amount
of the Performance Cash Plan p. a.
PCP entitlements are paid in cash. The bonus is paid out
after the end of the Annual General Meeting, at which the
separate financial statements of BMW AG for the third year of
the evaluation period (consisting of the vesting year and the
following two years) are presented.
297
Payment after AGM 2022
BMW Group Report 2021
Disbursement matching component 2016
Performance Cash Plan 2019-2021
1 Disclosures for the previous year include amounts relating to members of the Board of Management
who left office during the financial year 2020.
accrual of entitlement (e.g. the expiry of assessment peri-
ods or the non-occurrence of forfeiture conditions) have
occurred.
296
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
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Thus, in addition to the fixed remuneration components, the
following variable remuneration components are reported as
remuneration granted for the 2021 financial year within the
meaning of $162 of the German Stock Corporation Act
(AktG):
Bonus for the 2021 financial year (to be paid out in 2022)
Share-based remuneration (personal cash investment
amount) for the 2021 financial year (to be paid out in
2022)
Performance Cash Plan 2019-2021, due to the expiry of
the three-year assessment period in the 2021 financial
year (payments for the vesting year 2019 to be paid out in
2022)
Share-based remuneration component (matching com-
ponent) for the vesting year 2016, due to the expiry of the
four-year holding period in the financial year 2021(paid
out in 2021)
Thus, the remuneration granted and owed includes all remu-
neration components earned through the activities of the
members of the Board of Management in the 2021 financial
year. In addition, it includes remuneration components
already earned as a result of activity in previous financial
years, but for which the respective member of the Board of
Management's payment entitlement only arose due to the
occurrence of conditions or at the end of the 2021 financial
year.
In addition to the amount of remuneration, the relative share
of the relevant remuneration component in the total remu-
neration granted and owed is also shown. For the sake of
clarity, the service cost for the company pension scheme is
also shown, although this service cost is not classified as
remuneration within the meaning of § 162 AktG.
OVERVIEW OF REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 WITH PAYOUT PROFILE 1
Share-based remuneration 2016
▼ 2
Four-year holding period for acquired BMW shares
(assessment period 2019-2021)
Total1
To Our Stakeholders
Group Financial Statements
Status of compliance in each Board member's
area of responsibility
Individual contribution to profitability
Forecast trend in business development
Value between 0.9 and 1.1
1 The PCP factor for Mr Krüger is 1.081. This differs from the PCP factor mentioned above, since a value of
1.0 was agreed for the earnings factor of the 2019 financial year.
298
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
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margin for the Automotive segment and ROCE for the Auto-
motive segment, as well as the return on equity for the
Financial Services segment. For the financial years 2020
and 2021, the Supervisory Board has taken into account the
impact of the coronavirus pandemic and the semiconductor
crisis on these key indicators. It was not necessary to change
the assessments relating to individual contributions to profit-
ability or the status of compliance within Board members'
areas of responsibility.
c)
Share-based remuneration component (matching compo-
nent) 2016
Share-based remuneration components have been included
in the remuneration of members of the BMW AG Board of
Management since 2011. In the financial year 2021, the
matching component of the share-based remuneration of
the vesting year 2016 was paid out.
Under the share-based remuneration programme for the
financial year 2016, the members of the Board of Manage-
ment were each required to invest an amount equal to 20%
of the total bonuses they received from the company as
additional cash remuneration for the financial year 2016,
which were paid exclusive of taxes and social security contri-
butions (the investment component) in shares of the compa-
ny's common stock. In principle, the members of the Board
of Management must hold these shares of common stock for
at least four years. Under a matching plan, the member of
the Board of Management receives from the company - at
the company's discretion - either an additional share of
common stock or the equivalent in cash (share-based remu-
neration component/matching component) for every three
shares of common stock held after the four-year holding
period.
The investment component for the 2016 financial year was
paid out immediately after the 2017 Annual General Meeting
on 11 May 2017, and the shares of common stock were
acquired on 12 May 2017. Therefore, the holding period for the
acquired shares of common stock expired on 11 May 2021.
The company settled the matching component in cash, and
paid out the equivalent value of the matching shares.
d)
Presentation of remuneration granted and owed
The following tables show the remuneration granted and
owed to the members of the Board of Management.
EARNINGS COMPONENTS: ALLOCATION TABLE FOR CALCULATING EARNINGS FACTOR FOR 2019-20211
Trend in business development
Combined Management Report
-
PCP FACTOR
Corporate Governance
Remuneration Report
Other Information
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In order to determine the PCP factor, a multi-year profit factor
is multiplied by a multi-year performance factor. The maxi-
mum amount that can be paid to a Board member is capped
at 180% of the PCP target amount p. a.
In order to determine the multi-year earnings factor, an earn-
ings factor is calculated for each year of the three-year eval-
uation period and an average is then calculated for the eval-
uation period. The earnings factor for the individual year of
the assessment period is determined on the basis of the
Group's consolidated net profit and the consolidated return
on sales after tax for the assessment year concerned, and
can amount to a maximum of 1.800. The underlying meas-
urement values are determined in advance for a period of
three financial years, and may not be changed retrospec-
tively.
In addition to the multi-year earnings factor, the Supervisory
Board also sets a multi-year performance factor after the end
of the evaluation period. To this end, the Supervisory Board
takes account in particular of the development of the busi-
ness during the evaluation period, the forecast trend in the
development of the business, the Board member's individual
contribution to profitability and the status of compliance
within the Board member's area of responsibility. The mul-
ti-year performance factor can be between 0.9 and 1.1.
The members of the Board of Management in office as at
1 January 2018 received an advance payment from the Per-
formance Cash Plan 2019-2021 in 2020. The advance pay-
ment amounted to € 0.5 million for a Board of Management
member in their first appointment period, and € 0.6 million
from the second appointment period or the fourth year of
appointment. For the Chairman of the Board of Manage-
ment, the advance payment was € 0.9 million. At the end of
the assessment period, the advance payments will be set off
or refunded, depending on the actual entitlement arising.
The Performance Cash Plan 2019-2021 was approved for
the performance of the Members of the Board of Manage-
ment in the 2019 financial year. As at the balance sheet date
of the reporting year, the three-year assessment period of
this remuneration component, which was subject to certain
forfeiture provisions, had expired.
In the 2021 financial year, a consolidated net profit of € 12.5
billion and a consolidated return on sales after tax of 11.2%
were achieved. For both indicators, the defined maximum
values were thus exceeded, meaning that the earnings factor
was capped at the maximum value of 1.800 (corresponding
to a target being 180% achieved, the maximum possible
percentage). Based on the earnings factors for the individual
years of the assessment period (financial year 2019: 0.798,
financial year 2020: 0.444, financial year 2021: 1.800), the
multi-year performance factor is 1.014. The multi-year perfor-
PERFORMANCE CASH PLAN OVERVIEW
TARGET AMOUNT
PCP FACTOR OVERVIEW
MULTI-YEAR EARNINGS FACTOR
Average earnings factor
Based on Group net profit and
Group post-tax return on sales
Value between 0 and 1.8
-
PCP FACTOR
mance factor for all members of the Board of Management
holding office for the 2019 financial year is 1.0, resulting in a
PCP factor of 1.014 for the 2019-2021 Performance Cash
Plan¹.
In determining the multi-year performance factor for the
members of the Board of Management in office for the 2019
financial year, the Supervisory Board assessed, in particular,
the trend in the development of the business over the assess-
ment period, the forecast trend in the development of the
business, the individual contribution made by each Board
member to earnings, and the status of compliance in the
individual Board member's area of responsibility. In assess-
ing the development of the business over the assessment
period and the forecast trend, the Supervisory Board
assessed, in particular, the development of certain key indi-
cators - such as the change in the number of deliveries, EBIT
CASH PAYMENT
- Cash payment at end of evaluation period
- Capped at 180 % of target amount
_
MULTI-YEAR PERFORMANCE FACTOR
Measurement based on
multi-year performance factor:
=
Group post-tax return
Group Financial Statements
291
(59,341)³
The retirement benefits system provides for annual contribu-
tions by the company with a guaranteed minimum interest
rate equal to the maximum interest rate specified in the
German actuarial reserve regulation (Deckungsrückstel-
lungsverordnung). Commitments to pay annual contribu-
tions to the company pension scheme are linked to the term
of appointment as a member of the Board of Management.
Pension entitlements become vested when the employment
relationship has existed for one year. If a mandate is termi-
nated, the defined contribution system provides, in the case
of death or invalidity, for amounts accumulated on individual
pension accounts to be paid out as a one-off amount or in
instalments.
As regards pension commitments, retired members of the
Board of Management are entitled to retirement benefits at
the age of 62 at the earliest. The amount of the benefits to
be paid is determined on the basis of the amount accrued in
each Board member's individual pension savings account.
This figure is in turn based on the annual contributions and
an annual interest rate depending on the form of investment.
The payment is made as a lump sum or in annual instal-
ments at the discretion of the member of the Board of Man-
agement. For entitlements arising before 2016, there is an
option to receive payment as a lifelong pension or in a com-
bined form. In the event of the death of a member of the
Board of Management entitled to benefits before the occur-
Pieter Nota
Nicolas Peter
Frank Weber
Andreas Wendt
Total
1 Includes only shares of BMW common stock acquired using the cash remuneration component of the share-based remuneration programme for members of the Board of Management, for which the four-year holding
period has not yet expired.
2 Payment of the 2020 cash remuneration component (investment component) in May 2021 with subsequent acquisition of reported BMW shares of common stock, for which the four-year holding period until 2025 applies.
3 Disclosures for the previous year on the share portfolio as at 31 December include shares held by a member of the Board of Management who left office during the financial year 2020.
rence of the insured event, a surviving spouse or registered
partner is entitled to a survivor's benefit; otherwise, surviv-
ing children are entitled to a survivor's benefit depending on
their age and level of education. In the event of death or
invalidity, a minimum benefit in the amount of the potential
annual pension contributions that could have been made up
to the age of 60 is approved. This benefit cannot exceed ten
years of contributions.
Members of the Board of Management who retire immedi-
ately after their service on the Board, or who are deemed to
be in an equivalent position, are entitled to acquire vehicles
and other BMW Group products and services at conditions
that also apply to BMW pensioners and to lease BMW Group
vehicles in accordance with the guidelines applicable to sen-
ior heads of departments. Retired Chairmen of the Board of
Management also have the option of using the BMW car ser-
vice, subject to availability and at a charge.
For members of the Board of Management in office in the
financial year 2021, expenses for post-employment benefits
of € 3.1 million (2020: € 2.6 million) were incurred. These
295
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
benefits correspond to allocations to pension provisions in
accordance with IAS 19.
(1,997)
7. Malus and clawback provisions
(22,418)
58,560
13,614
(6,736)
(4,374)
(-)
(11,110)
0
1,142
1,142
(-)
(-)
(-)
(-)
5,684
2,285
(-)
7,969
(988)
(4,696)
(-)
(5,684)
44,037
17,294
2,771
(23,616)
Target achievement
The remuneration system applied since 2021 provides for the
possibility of withholding variable remuneration (malus) and
reclaiming variable remuneration already paid out (claw-
back) under certain conditions. The rules allow the Supervi-
sory Board to withhold or reclaim variable remuneration in
the event of certain serious compliance-related violations
(compliance malus and/or compliance clawback). These
provisions can also be applied where variable remuneration
components linked to the achievement of certain targets
have been paid out on the basis of incorrect calculation
bases or incorrect financial statements. Remuneration can
also be withheld or reclaimed after an individual's departure
from the Board of Management.
8. Regulations in the event of death, invalidity and post-con-
tractual non-competition clause
1,632,365
(354,680)
(1,157,145)
Nicolas Peter
401,099
3,731,163
(351,746)
(3,134,163)
Frank Weber
402,075
1,100,507
(175,000)
(655,460)
Andreas Wendt
401,099
3,379,883
(351,746)
(2,863,441)
3,112,630
18,883,016
(2,615,352)
(18,289,989)
BMW Group Report 2021
402,852
The Supervisory Board has not identified any reason to with-
hold or reclaim variable remuneration components in the
2021 financial year.
Pieter Nota
(352,121)
In the event of death or invalidity, special regulations apply
regarding the early maturity of Performance Cash Plans and
share-based remuneration components (matching compo-
nents) based on target amounts. Where the contract of
employment is terminated prematurely and the company
has an extraordinary right of termination, or if the Board
member resigns without the company's agreement, entitle-
ments to amounts as yet unpaid relating to performance
cash plans and share-based remuneration (matching com-
ponents) are forfeited. The other variable remuneration com-
ponents (bonus, personal cash investment amount) are set-
tled on the basis of the target amounts.
A one-year post-contractual non-competition clause has
been agreed with the Board members under specified
circumstances against payment of a remuneration
amount. Contracts of employment provide for the pay-
ment of a monthly waiting allowance in the amount of
the applicable monthly basic remuneration for the dura-
tion of the post-contractual non-competition clause. In
accordance with the recommendation of the German
Corporate Governance Code dated 16 December 2019,
any severance payment is offset against the non-com-
petition clause remuneration amount. The same applies
to other income from third parties, except remuneration
for Supervisory Board appointments approved during the
term of office. The company may unilaterally waive the
requirement to comply with the post-contractual
non-competition clause.
9.
Remuneration granted and owed to members of the Board of
Management pursuant to § 162 of the German Stock Corpora-
tion Act (AktG)
The following tables ("Presentation of remuneration granted and
owed") show the fixed and variable remuneration granted and
owed to the members of the Board of Management in the
reporting year in accordance with § 162 AktG.
The tables include all amounts received by the individual
members of the Board of Management in the reporting
period (“remuneration granted”) and all remuneration legally
due but not yet received ("remuneration owed").
In addition to actual amounts received, "remuneration
granted" in the reporting year is also assumed if the activity
on which the remuneration component is based has been
fully performed by the member of the Board of Management
as of the balance sheet date, and if all conditions for the
PENSION ENTITLEMENTS
in €
Oliver Zipse
Ilka Horstmeier
Service cost in
accordance with
IFRS for the
financial year 2021
Cash value of entitle-
ments to pension benefits
in accordance with IFRS
as at 31 December 2021
4,644,382
(3,701,016)
702,274
(502,626)
401,765
1,953,670
(352,433)
(1,391,936)
Milan Nedeljković
401,466
2,441,046
(1,830,168)
on sales in %
9.0
(Upper limit)
712,9008
13
Variable
remuneration
Cash remuneration component (investment component) 2020 for holding
obligation 2021-2025
(-)
(-)
(-)
759,942
(-)
14
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
(-)
(-)
(-)
(-)
33,423
1
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-20214
76,941
1
Personal cash investment amount 20215
RoCE component
(-)
2,115,000
6
(-)
1,866,256
35
(-)
(-)
239,760
(-)
4
(-)
(-)
(-)
1,449,000
(-)
27
1,890,000
(-)
22
(-)
1,113,000
13
(-)
(-)
277,584⁹
5
498,4498
23
24
1,089,813
100
1 Remuneration system from financial year 2021.
2 Remuneration system applicable until financial year 2020.
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
4 The number of shares purchased in 2017 with the 2016 cash remuneration component (investment component) amounted to 2,771 (purchased on 12 May 2017 at a price of €87.50). The 2016 matching component was paid out in cash in May 2021. The number of mathematical matching shares for calculating
the equivalent value in cash amounts to 923 (holding period expired on 11 May 2021). Reference price for calculating the equivalent value of the matching shares: € 83.36.
5 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
6 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount is not paid out.
7 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 9,850,000; the remuneration for the vesting year 2021 including service cost is € 8,879,442, which is below the maximum remuneration.
8 An advance payment in the amount of € 712,900 was paid out from the PCP 2019-2021 in 2020.
9 An advance payment in the amount of € 566,666 was paid out from the PCP 2018-2020 in 2019.
^
300
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
ILKA HORSTMEIER
Human Resources, Labour Relations Director
5,338,865
502,626
5,841,491
Strategic focus target component
100
Total amount received incl. service cost?
12
(-)
Total variable remuneration Vesting year 2021 or earlier vesting years
6,207,813
575,390
71 or 7
2,448,702
1,023,907
(-)
46 or 19
Total variable remuneration
6,783,203
77
3,472,609
65
Remuneration for vesting year 2021 or earlier vesting years
8,177,168
575,390
93 or 7
4,314,958
1,023,907
81 or 19
Remuneration according to § 162 German Stock Corporation Act (AktG)
Service cost
8,752,558
702,274
9,454,832
1,969,355
1
(-)
1 The advance payment was paid out in 2020.
9.0
11.0
(Upper limit)
1,211,349
Remuneration
(payment amount
PCP 2019-2021)
Total amount PCP
Target amount
1,194,624
PCP factor
2019-2021
1.014
Advance payment¹
712,900
498,449
141,667
1.014
143,650
143,650
212,500
1.014
215,475
(-)
215,475
850,000
1.014
Andreas Wendt
861,900
Frank Weber
Ilka Horstmeier
Milan Nedeljković
Nicolas Peter
8.0
7.3
5.6
4.8
0.7982
0.4443
3.9
0.135
3.0
ཥཊྛོ
(Lower limit)
3.0
(Lower limit)
3.9
5.0 5.3
1.8004
1.637
1.500
1.000
6.9
Group net profit after tax
(in € billion)
1Simplified depiction 2Earnings factor 2019 3 Earnings factor 2020 "Earnings factor 2021
PERFORMANCE CASH PLAN 2019-2021
in €
Oliver Zipse
Pieter Nota
500,000
361,900
850,000
Performance component of bonus 2021
PERFORMANCE CASH PLAN
PCP 2018-2020
PCP 2019-2021
SHARE-BASED PAYMENT
Vesting year 2021
Earlier vesting years
in €1
in €3
FY 2021
as a % of total
remuneration
Vesting year 2020
in €2
Earlier vesting years
in €3
FY 2020
as a % of total
remuneration
1,950,000
(-)
19,355
(-)
22
0.2
1,800,000
(-)
34
66,256
Earnings component of bonus 2020
Performance component of bonus 2020
Earnings component of bonus 2021
Fringe benefits (other remuneration)
Total
BONUS
Fixed remuneration
Fixed
remuneration
1.014
861,900
500,000
361,900
(-)
(-)
(-)
850,000
1.014
(-)
861,900
(-)
861,900
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
OLIVER ZIPSE
Chairman of the Board of Management since 16 August 2019
Member of the Board of Management since 13 May 2015
299
2,504
Dr. Wendt left the Board of Management on 31 December
2021. For the period from 1 January 2022 to 31 December
2022, the waiting allowance contractually owed to him
amounts to approximately € 1.1 million. A provision was
made for this.
(8,650)
(-)
855,000
33
(-)
684,250
(-)
(-)
(-)
6
(-)
113,220
(-)
(-)
4
43
887,374
24
947,633
(-)
87,374
1
(-)
47,633
39
(-)
FY 2020
as a % of total
remuneration
in €³
Earlier vesting years
22
Vesting year 2020
in €²
800,000
(-)
503,500
(-)
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-2021
Т
(-)
(-)
(-)
(-)
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
18
(-)
358,862
(-)
(-)
(-)
4
143,650
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
13
(-)
(-)
(-)
23
as a % of total
remuneration
11,110
Remuneration Report
Other Information
← = Q
The following tables provide an overview of the targets set
and extent of achievement of share-based remuneration for
the 2021 financial year.
TARGETS SET AND TARGET ACHIEVEMENT OF SHARE-BASED REMUNERATION FOR FY 2021
Minimum
Performance criteria
Weighting
value
Target
value
Maximum
value
Actual
Value
Target
achievement
Factor
RoCE in the Automotive
RoCE component
Component-
Strategic focus targets
segment (in %)
Reduction of fleet
CO2 emissions (in g/km)
Sales of all-electric vehicles
(BEV) in units
Sales of plug-in hybrid
vehicles (PHEV) in units
50%
10.00
16.00
45.00
59.90
180%
Group Financial Statements
900,000
Combined Management Report
BMW Group Report 2021
Earlier vesting years
in €3
Vesting year 2021
in € 1
FY 2021
remuneration Cash remuneration component (investment component) 2020 for holding
obligation 2021-2025
SHARE-BASED PAYMENT
Variable
PCP 2019-2021
PCP 2018-2020
PERFORMANCE CASH PLAN
Performance component of bonus 2021
Earnings component of bonus 2021
Performance component of bonus 2020
Earnings component of bonus 2020
Fringe benefits (other remuneration)
Total
BONUS
Fixed remuneration
Fixed
remuneration
Member of the Board of Management since 1 November 2019
50%
0%
Actual value 2021
224,460
180,000
minimum value
241,000
target value
400,000
maximum value
→ Target achievement: 86%
PHEV sales in units
293
To Our Stakeholders
(-)
I
Personal cash investment amount 20214
Target achievement
100%
50%
0%
100
maximum value
Actual value 2021
115.9
114
target value
125
minimum value
CO₂g/km
→ Target achievement: 91 %
1 According to the WLTP test procedure. With effect from September 2018, all vehicles in the EU must be approved in accordance with the new WLTP
testing cycle. However, the European Commission did not switch the calculation of fleet carbon emissions to WLTP until 2021. Therefore, up to and
including 2020, a recalculation of the WLTP fleet emissions to NEDC values was necessary for reporting purposes.
Target achievement
292
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
With regard to reducing fleet carbon emissions according to
WLTP, the Supervisory Board set the following values in CO₂
g/km under WLTP for fleet consumption in Europe as thresh-
old values relevant to remuneration for the vesting year 2021:
Minimum value: 125 CO₂ g/km, Target value: 114 CO₂ g/km,
Maximum value: 100 CO₂ g/km. The actual value for the 2021
financial year was 115.9 CO₂ g/km, so the target was 91%
achieved. The CO2 fleet value achieved (after setting an ambi-
tious original target), thus is below the legal limit of 125.8 CO₂
g/km by 9.9 CO₂ g/km in 2021.
For sales of all-electric vehicles (BEV), the Supervisory
Board set the following reference values in units for the vest-
ing year 2021: Minimum value: 75,000 units, Target value:
To Our Stakeholders
101,000 units, Maximum value: 170,000 units. The actual
value for the 2021 financial year was 103,854 units, so the
target was 103% achieved.
For sales of plug-in hybrid vehicles (PHEV), the Supervisory
Board set the following reference values in units for the 2021
vesting year: Minimum value: 180,000 units, Target value:
241,000 units, Maximum value: 400,000 units. The actual
value for the 2021 financial year was 224,460 units, so the
target was 86% achieved.
→ Target achievement: 180 %
The personal investment cash amount for the vesting year
2021 will be paid out after the Annual General Meeting 2022,
at which the Financial Statements of BMW AG for the finan-
cial year 2021 will be presented.
ROCE in the Automotive segment in %
target value
Corporate Governance
Remuneration Report
Other Information
← = Q
Targets set and extent of achievement for the ROCE component
for the 2021 financial year
ROCE in the Automotive segment for the financial year 2021
is defined as segment profit before financial result, divided
by the average capital employed in the segment. The Super-
visory Board has determined the following values for the
vesting year 2021: Minimum value: 10%, Target value: 16%,
Maximum value: 45%. The RoCE achieved for the 2021
financial year was 59.9%, meaning that the maximum value
set for the purposes of assessing the value of the RoCE com-
ponent was exceeded and the RoCE factor for the calculation
of the personal cash investment amount is 1.80 (its maxi-
mum value). The target was set by the Supervisory Board in
December 2020 on the basis of long-term corporate plan-
ning. RoCE for the Automotive segment increased signifi-
cantly in the 2021 financial year, to 59.9% (2020:
12.7%/+47.2 percentage points). This was driven in large
part by increasing EBIT compared to the previous year. A
reduction in capital employed, and specifically the reduction
in average inventory during the financial year, was another
contributing factor. This was due, in particular, to the rapid
recovery of operational business from the consequences of
the coronavirus pandemic and the positive price effects for
new and pre-owned vehicles caused by the shortage of sup-
ply due to the tense supply situation for semiconductors.
Targets set and extent of achievement for the strategic focus
targets component for the 2021 financial year
In December 2020, the Supervisory Board set the following
strategic focus targets for the vesting year 2021, in accord-
ance with the remuneration system:
―
Reduce CO2 fleet emissions in the EU according to WLTP;
weighting in relation to personal cash investment
amount: 25%.
Sales of all-electric vehicles (Battery Electric Vehicles,
BEV); weighting in relation to personal cash investment
amount: 12.5%.
Sales of plug-in hybrid vehicles (PHEV); weighting in
relation to personal cash investment amount: 12.5%.
TARGETS SET AND EXTENT OF ACHIEVEMENT ROCE
200%
180%
150%
100%
50%
0%
TARGETS SET AND EXTENT OF ACHIEVEMENT REDUCTION OF FLEET CARBON
EMISSIONS (EU)¹
200%
Actual value 2021
59.9
180%
150%
10
16
minimum value
45
maximum value
TARGETS SET AND EXTENT OF ACHIEVEMENT BEV SALES
200%
180%
150%
143,650
3,806,258
Remuneration for vesting year 2021 or earlier vesting years
57
1,156,332
76
3,002,275
Total variable remuneration
57
(-)
1,156,332
72 or 4
(-)
(-)
(-)
13
(-)
143,650
2,858,625
Total variable remuneration Vesting year 2021 or earlier vesting years
510,125
Strategic focus target component
(-)
(-)
(-)
25
990,000
RoCE component
96 or 4
2,043,706
(-)
100
100%
Actual value 2021
103,854
50%
0%
75,000
minimum value
101,000
target value
170,000
maximum value
BEV sales in units
→ Target achievement: 103 %
Target achievement
TARGETS SET AND EXTENT OF ACHIEVEMENT PHEV SALES
200%
180%
150%
1.80
100%
1 Remuneration system from financial year 2021.
6 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 4,925,000; the remuneration for the vesting year 2021 including service cost is € 4,208,023, which is below the maximum remuneration.
5 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount was not paid out in the financial year.
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
>
100
2,043,706
352,433
2,396,139
100
3,949,908
401,765
4,351,673
Total amount received incl. service cost 6
Service cost 5
Remuneration according to § 162 German Stock Corporation Act (AktG)
2 Remuneration system applicable until financial year 2020.
25%
Corporate Governance
114
160,000
164,800
160,000
137,600
1,745,600
Frank Weber
550,000
990,000
275,000
250,250
137,500
141,625
137,500
118,250
1,500,125
Andreas Wendt
572,500
1,030,500
286,250
260,488
143,125
147,419
143,125
291,200
320,000
1,152,000
640,000
Milan Nedeljković
550,000
990,000
275,000
250,250
137,500
141,625
137,500
118,250
1,500,125
Pieter Nota
123,088
125
1,152,000
320,000 0.91
291,200
160,000
1.03
164,800
160,000
0.86
137,600
1,745,600
Nicolas Peter
1.80
1,500,125
1,561,494
BMW Group Report 2021
(16,637)
782
2,285
3,067
(-)
(782)
(-)
(782)
1,174
2,285
(-)
3,459
(-)
(1,174)
(-)
(1,174)
8,650
2,285
(-)
10,935
(3,954)
(4,696)
(-)
(1,997)
(6,696)
(11,938)
18,374
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
6.
Retirement benefits
Milan Nedeljković
5.
294
Shareholding rules
The share-based remuneration (investment component) for
the vesting year 2020 was paid out in 2021, immediately
after which the BMW shares of common stock were acquired.
SHARES OF BMW COMMON STOCK HELD BY INDIVIDUAL MEMBERS OF THE BOARD OF MANAGEMENT SUBJECT
TO HOLDING REQUIREMENTS IN CONNECTION WITH SHARE-BASED REMUNERATION FOR THE FINANCIAL YEARS
2017-20201
Oliver Zipse
Ilka Horstmeier
End of the holding
Share portfolio as at
1 January 2021
Additions in the
financial year²
period in the Share portfolio as at
financial year
31 December 2021
16,637
4,508
2,771
The members of the Board of Management in office as at 31
December 2021 hold a total of 58,560 BMW shares of com-
mon stock which they are required to hold in accordance with
the terms of the share-based remuneration programmes for
the financial years 2017-2020.
118,250
640,000
CO₂ in €
focus target
Proportionate
target amount
Factor -
Strategic
Component
Personal cash
Strategic
focus targets
focus target
BEV in €
in €
(PHEV)
PHEV in €
investment
amount
in €
focus targets
(BEV)
Oliver Zipse
170,000
Ilka Horstmeier
550,000
2,115,000
990,000
587,500
534,625
293,750
302,563
293,750
252,625
3,204,813
275,000
250,250
1,175,000
137,500
in €
(CO2)
12.50%
180,000
241,000
400,000
224,460
86%
0.86
OVERVIEW OF SHARE-BASED REMUNERATION FOR THE 2021 FINANCIAL YEAR
RoCE component
Component - Strategic focus target (CO2)
Component Strategic focus target (BEV)
Component Strategic focus target (PHEV)
Total
103,854
Proportionate
target amount
of Management
in €
RoCE factor
RoCE -
component
in €
Proportionate
target amount
in €
Factor -
Strategic
Component
Strategic
focus targets
focus target
Proportionate
target amount
Factor -
Strategic
Component
Strategic
Member of the Board
141,625
137,500
101,000
1.03
100
115.9
103 %
0.91
75,000
91%
12.50%
(-)
Personal cash investment amount 20214
Τ
Т
(-)
(-)
(-)
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-2021
(-)
(-)
(-)
13
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
RoCE component
179,431
I
(-)
Cash remuneration component (investment component) 2020 for holding
obligation 2021-2025
remuneration
Variable
(-)
(-)
(-)
(-)
18
(-)
(-)
26
(-)
3,856,458
Remuneration for vesting year 2021 or earlier vesting years
57
578,166
74
2,858,625
Total variable remuneration
57
(-)
578,166
74
(-)
2,858,625
Total variable remuneration Vesting year 2021 or earlier vesting years
(-)
(-)
(-)
13
(-)
(-)
(-)
235
(-)
Strategic focus target component
990,000
510,125
Fringe benefits (other remuneration)
Total
503,500
Fixed remuneration
21
997,803
3
(-)
56,319
1
(-)
60,303
36
(-)
FY 2020
as a % of total
remuneration
in €3
in €2
800,000
19
(-)
937,500
Earlier vesting years
Vesting year 2020
as a % of total
remuneration
in €3
in €1
Earlier vesting years
Vesting year 2021
FY 2021
Performance component of bonus 2021
Earnings component of bonus 2021
Performance component of bonus 2020
Earnings component of bonus 2020
Fixed
remuneration
BONUS
Member of the Board of Management from 1 October 2018 until 31 December 2021
ANDREAS WENDT
1,006,759
(-)
100
Remuneration according to § 162 German Stock Corporation Act (AktG)
3,856,458
100
Service cost 5
Total amount received incl. service cost 6
402,075
4,258,533
1,006,759
175,000
1,181,759
100
1 Remuneration system from financial year 2021.
2 Remuneration system applicable until financial year 2020.
>
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
5 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount was not paid out in the financial year.
6 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 4,925,000; the remuneration for the vesting year 2021 including service cost is € 4,258,533, which is below the maximum remuneration.
100
305
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
Purchasing and Supplier Network
(-)
Personal cash investment amount 20214
22
Total variable remuneration
3,752,000
78
2,143,240
69
Remuneration for vesting year 2021 or earlier vesting years
4,462,846
361,900
93 or 8
2,334,621
782,850
75 or 25
Remuneration according to § 162 German Stock Corporation Act (AktG)
Service cost 5
Total amount received incl. service cost 6
4,824,746
401,099
5,225,845
100
3,117,471
351,746
3,469,217
100
1 Remuneration system from financial year 2021.
2 Remuneration system applicable until financial year 2020.
>
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
5 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount was not paid out in the financial year.
6 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 5,500,000; the remuneration for the vesting year 2021 including service cost is € 4,863,945, which is below the maximum remuneration.
7 An advance payment in the amount of € 500,000 was paid out from the PCP 2019-2021 in 2020.
(-)
44 or 25
8 An advance payment in the amount of € 500,000 was paid out from the PCP 2018-2020 in 2019.
782,850
(-)
(-)
422,190
(-)
14
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
(-)
(-)
(-)
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-2021
(-)
(-)
(-)
856,319
RoCE component
1,152,000
(-)
24
Strategic focus target component
593,600
(-)
12
Total variable remuneration Vesting year 2021 or earlier vesting years
3,390,100
361,900
70 or 8
(-)
(-)
1,360,390
(-)
(-)
(-)
304
To Our Stakeholders
in €3
FY 2020
as a % of total
remuneration
(-)
40
97,833
(-)
3
28,593
(-)
3
997,833
26
428,593
43
(-)
(-)
(-)
56,610
(-)
6
(-)
(-)
(-)
342,125
(-)
34
855,000
Earlier vesting years
BMW Group Report 2021
Vesting year 2020
in €²
400,000
(-)
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
FRANK WEBER
Development, Member of the Board of Management since 1 July 2020
Fixed remuneration
Fixed
remuneration
Fringe benefits (other remuneration)
Total
BONUS
Earnings component of bonus 2020
Performance component of bonus 2020
Earnings component of bonus 2021
Performance component of bonus 2021
PERFORMANCE CASH PLAN
PCP 2018-2020
PCP 2019-2021
SHARE-BASED PAYMENT
FY 2021
Vesting year 2021
Earlier vesting years
in €¹
900,000
in €³
as a % of total
remuneration
23
39
(-)
(-)
983,566
(-)
(-)
11
153,966³
(-)
Total remuneration according to § 162 German Stock Corporation Act (AktG)
Total remuneration for financial years 2021 or earlier vesting years
Total
ance/Pensions (Partial) capital payments
Waiting allow- Pensions
Waiting allowance
remuneration 2016 for holding obligation 2017-2021
Total
Share-based remuneration component (matching component)
Variable
(-)
27,241
2
40,156
(-)
11
27,241
72
2
11
Performance Cash Plan 2019-2021
(-)
829,6002
61
(-)
40,156
(-)
(-)
360,000
323,691
89
387,241
983,566
1,370,807
100
26
363,847
363,847
100
Fixed Fringe benefits (other remuneration)
remuneration Total
Performance Cash Plan 2019-2021
Variable
Share-based remuneration component (matching component)
(-)
remuneration Total
360,000
(-)
(-)
26
(-)
(-)
(-)
(-)
(-)
(-)
(-)
323,691
(-)
89
(-)
(-)
(-)
(-)
remuneration 2016 for holding obligation 2017-2021
Fixed Fringe benefits (other remuneration)
years in €¹
285,000
59
440,241
10
76,9415
(-)
49
3
3
as a % of total
remuneration
363,3004
20,629
years in €¹
(-)
20,629
in €
Earlier vesting
5 The number of shares purchased in 2017 with the 2016 cash remuneration component (investment
component) amounted to 2,771 (purchased on 12 May 2017 at a price of € 87.50). The 2016 matching
component was paid out in cash in May 2021. The number of mathematical matching shares for the
purposes of calculating the equivalent value in cash amounts to 923 (holding period expired on 11 May
2021). Reference price for calculating the equivalent value of the matching shares: € 83.36).
Performance Cash Plan 2019-2021
Share-based remuneration component (matching component)
remuneration 2016 for holding obligation 2017-2021
Total
Waiting allowance
Waiting allow-
(-)
Pensions
Total
Total remuneration for financial years 2021 or earlier vesting years
Total remuneration according to § 162 German Stock Corporation Act (AktG)
1 Remuneration for prior vesting years is due if, as of the balance sheet date, the activity underlying the
remuneration component has been fully performed, and all conditions for the entitlement are met.
2 The number of shares purchased in 2017 with the 2016 cash remuneration component (investment
component) amounted to 2,603 (purchased on 12 May 2017 at a price of € 87.50). The 2016 matching
component was paid out in cash in May 2021. The number of mathematical matching shares for calcu-
lating the equivalent value in cash amounts to 867 (holding period expired on 11 May 2021). Reference
price for calculating the equivalent value of the matching shares: € 83.36).
3 The number of shares purchased in 2017 with the 2016 cash remuneration component (investment
component) amounted to 3,470 (purchased on 12 May 2017 at a price of € 87.50). The 2016 matching
component was paid out in cash in May 2021. The number of mathematical matching shares for calcu-
lating the equivalent value in cash amounts to 1,156 (holding period expired on 11 May 2021). Reference
price for calculating the equivalent value of the matching shares: € 83.36).
"The target amount of the 2019-2021 Performance Cash Plan is € 950,000. An advance payment of
€ 600,000 was made from the PCP 2019-2021 in 2020.
ance/Pensions (Partial) capital payments
38
(-)
(-)
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021
HARALD KRÜGER
Chairman of the Board of Management until 15 August 2019
Financial year 2021
NORBERT REITHOFER
Chairman of the Board of Management until 13 May 2015
Chairman of the Supervisory Board since 13 May 2015
Other Information
Earlier vesting
years in €¹
as a % of total
remuneration
Financial year 2021
Earlier vesting
as a % of total
in €
in €
remuneration
Remuneration Report
Group Financial Statements
(-)
(-)
(-)
285,000
38
305,629
Corporate Governance
440,241
100
>
308
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
745,870
Variable
Total
Waiting allow- Pensions
The regulation governing remuneration for the Supervisory
Board applicable to the reporting year was adopted by the
Annual General Meeting on 14 May 2020. It is set out in Arti-
cle 15 of the Articles of Incorporation, and specifies both the
remuneration system to be used and the precise framework
for calculating the remuneration due to the members of the
Supervisory Board. The regulation was confirmed by the
Annual General Meeting on 12 May 2021 with a majority of
99.40% of the valid votes cast.
1. Articles of Incorporation and procedure
III. Remuneration of the members of the Supervisory Board
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
310
3 The number of shares acquired in 2017 with the cash remuneration component (investment component)
2016 amounted to 3,346. The 2016 matching component was paid out in cash in May 2021. The number
of mathematical matching shares for the calculating the equivalent value in cash amounts to 1,115 (hold-
ing period expired on 11 May 2021). Reference price for calculating the equivalent value of the matching
shares: € 83.36).
2 The target amount of the PCP 2019-2021 is € 791,667. An advance payment of € 500,000 was made
from the PCP 2019-2021 in 2020.
1 Remuneration for prior vesting years is due if, as of the balance sheet date, the activity underlying the
remuneration component has been fully performed, and all conditions for the entitlement are met.
100
3,297,170
12
(-)
(-)
(-)
(-)
2,882,022
2.
(-)
2,882,022
87
Total remuneration for financial years 2021 or earlier vesting years
2,901,473
395,696
Total remuneration according to § 162 German Stock Corporation Act (AktG)
87
Principles and elements of remuneration
With effect from the 2020 financial year, remuneration for
members of the Supervisory Board has been structured as
purely fixed remuneration, and complies with Suggestion
G.18 of the German Corporate Governance Code as amended
on 16 December 2019. This strengthens the independence of
the Supervisory Board in advising and monitoring the Board
of Management. The structure and amount of the fixed
remuneration ensure that highly qualified individuals can
continue to be proposed to the Annual General Meeting for
membership of the Supervisory Board. This strengthens its
advisory and supervisory function, which contributes to the
company's sustainable and long-term development.
In accordance with the Articles of Incorporation, each mem-
ber of the Supervisory Board of BMW AG who does not exer-
cise any additional function relevant to remuneration
receives in addition to the reimbursement of reasonable
expenses – fixed remuneration of € 200,000 p.a.
2.00
400,000
2.25
450,000
Chairman of another committee 2
Member of the Audit Committee 2
Member of another committee 2
2.00
600,000
400,000
400,000
1.50
300,000
Chairman of the Audit
Committee 22
1 If a Supervisory Board member performs several additional remuneration-relevant functions, their
remuneration remuneration is measured only on the basis of the function that is remunerated with the
highest amount.
2 Provided the relevant committee convened for meetings on at least three days during the financial year.
3 Plus attendance fee of €2,000 per plenary session.
2.00
395,696
3.00
200,000
The latest version of the GCCC, dated 16 December 2019,
recommends that exercising the functions of the chair and
deputy chair of Supervisory Board should also be considered
when determining the level of remuneration, along with any
committees an individual chairs or sits on (Suggestion G.17).
This is to take account of the extra time commitment associ-
ated with these positions. In view of the particular demands
placed on the members and, in particular, on the Chairman
of the Audit Committee and the increased scope of the Audit
Committee's tasks, a higher level of remuneration is pro-
vided for work on this committee than for work on other com-
mittees. Accordingly, the Articles of Incorporation of BMW
AG stipulate that the Chairman of the Supervisory Board
shall receive three times the amount and each Deputy Chair-
man twice the amount of remuneration paid to a Supervisory
Board member, excluding amounts relating to additional
remuneration-relevant functions. The Chair of the Audit
Committee receives two-and-a-quarter times the amount,
the Chair of other Supervisory Board committees twice the
amount, each member of the Audit Committee twice the
amount, and each member of another committee one-and-
a-half times the amount of the remuneration paid to a Super-
visory Board member, provided the relevant committee con-
vened on at least three days during the financial year. If a
member of the Supervisory Board exercises more than one
of the functions referred to above, their remuneration is
measured only on the basis of the function receiving the
highest amount.
In the event of changes in the composition of the Supervi-
sory Board during the year, or if additional remuneration-rel-
evant functions are performed, remuneration is determined
on a proportionate basis.
In addition, each member of the Supervisory Board receives
an attendance fee of € 2,000 per meeting for each meeting
of the Supervisory Board (plenary) in which he or she partic-
ipates. This also applies to participation by telephone or
video link. If they attend more than one meeting on the same
day, the meetings are not remunerated separately.
In accordance with the provisions of the Articles of Incorpo-
ration, the remuneration and the attendance fee are only
paid after the end of the respective financial year. Further-
more, the company reimburses each member of the Super-
visory Board for their reasonable expenses. In order to be
able to perform his duties, the Chairman of the Supervisory
Board is provided with secretariat and chauffeur services.
Chairman of the Supervisory Board
3.
The following table shows the remuneration granted and
owed to the members of the Supervisory Board in the 2021
financial year pursuant to § 162 (1) Sentence 1 AktG. The
activities on which the remuneration for the 2021 financial
year is based were performed fully as at the balance sheet
date). Therefore, the remuneration for the Supervisory Board
activity is classified as granted for the 2021 financial year,
even if the payment of the Supervisory Board remuneration
(including the attendance fee) was only made after the end
of the 2021 financial year, in accordance with Article 15 of the
Articles of Incorporation.
Supervisory Board members did not receive any further
remuneration or benefits from the BMW Group for advisory
or agency services personally rendered.
OVERVIEW OF REMUNERATION 1
Deputy Chairman of the
Supervisory Board
Factor Amount in € p. a. ³
Member of the Supervisory Board
1.00
Remuneration granted and owed to members of the Super-
visory Board pursuant to § 162 of the German Stock
Corporation Act (AktG)
Waiting allowance
3
(-)
1 Remuneration for prior vesting years is due if, as of the balance sheet date, the activity underlying the
remuneration component has been fully performed, and all conditions for the entitlement are met.
100
309,002
96,364
212,638
62
(-)
(-)
191,038
62
191,038
(-)
(-)
(-)
31
96,364
31
96,3644
ance/Pensions (Partial) capital payments
Total
Total remuneration for financial years 2021 or earlier vesting years
Total remuneration according to § 162 German Stock Corporation Act (AktG)
IAN ROBERTSON
Member of the Board of Management until 31 December 2017
Financial year 2021
2 The target amount of the 2019-2021 Performance Cash Plan is € 1,600,000. The PCP factor is 1.081.
This differs from the PCP factor mentioned above, since a value of 1.0 was agreed for the earnings
factor of the 2019 financial year. An advance payment of € 900,000 was made from the PCP 2019-
2021 in 2020.
in €
21,600
Earlier vesting
years in €1
as a % of total
remuneration
7
7
(-)
21,600
3 The number of shares purchased in 2017 with the 2016 cash remuneration component (investment
component) amounted to 5,542 (purchased on 12 May 2017 at a price of € 87.50). The 2016 matching
component was paid out in cash in May 2021. The number of mathematical matching shares for the
purposes of calculating the equivalent value in cash amounts to 1,847 (holding period expired on 11 May
2021). Reference price for calculating the equivalent value of the matching shares: € 83.36).
"The number of shares purchased in 2017 with the 2016 cash remuneration component (investment
component) amounted to 3,470 (purchased on 12 May 2017 at a price of € 87.50). The 2016 matching
component was paid out in cash in May 2021. The number of mathematical matching shares for calcu-
lating the equivalent value in cash amounts to 1,156 (holding period expired on 11 May 2021). Reference
price for calculating the equivalent value of the matching shares: € 83.36).
309
BMW Group Report 2021
(-)
302,750²
as a % of total
remuneration
1
1
9
Performance Cash Plan 2019-2021
Variable
Total
remuneration 2016 for holding obligation 2017-2021
Waiting allowance
Waiting allow- Pensions
ance/Pensions (Partial) capital payments
Total
Share-based remuneration component (matching component)
92,9463
19,451
19,451
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
years in €¹
(-)
← = Q
PETER SCHWARZENBAUER
Member of the Board of Management until 31 October 2019
Financial year 2021
Earlier vesting
in €
Fixed Fringe benefits (other remuneration)
remuneration Total
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021
remuneration Total
Fixed Fringe benefits (other remuneration)
Member of the Board of Management until 30 June 2020
Financial year 2021
FRANK-PETER ARNDT
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021
For individual former members of the Board of Management,
the remuneration granted and owed also includes the Per-
formance Cash Plan 2019-2021 and/or the share-based
remuneration component (matching component) 2016. In
this regard, please refer to the statements on remuneration
granted and owed for the active members of the Board of
Management.
The following tables show the fixed and variable remunera-
tion granted and owed to former members of the Board of
Management who have definitively terminated their service
within the last 10 financial years, in accordance with § 162
AktG.
10. Remuneration granted and owed to former members of the
Board of Management pursuant to § 162 of the German Stock
Corporation Act (AktG)
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
306
6 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 5,068,750; the remuneration for the vesting year 2021 including service cost is € 4,390,396, which is below the maximum remuneration.
5 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount was not paid out in the financial year.
4 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
82 or 18
2,012,651
195,713
91 or 9
Remuneration according to § 162 German Stock Corporation Act (AktG)
Service cost 5
Member of the Board of Management until 31 March 2013
Financial year 2021
Total amount received incl. service cost 6
100
2,208,364
351,746
2,560,110
100
1 Remuneration system from financial year 2021.
2 Remuneration system applicable until financial year 2020.
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
4,851,197
401,099
5,252,296
Earlier vesting
in €
years in €1
(-)
(-)
216,814
(-)
88
(-)
(-)
(-)
216,814
88
246,942
(-)
246,942
100
(-)
861,900
(-)
Total
as a % of total
remuneration
Fixed
Fringe benefits (other remuneration)
remuneration Total
30,128
30,128
12
12
Performance Cash Plan 2019-2021
(-)
(-)
(-)
Variable
Share-based remuneration component (matching component)
remuneration 2016 for holding obligation 2017-2021
(-)
(-)
(-)
(-)
Waiting allowance
3,989,297
61
remuneration Cash remuneration component (investment component) 2020 for holding
Variable
SHARE-BASED PAYMENT
PCP 2018-2020
PERFORMANCE CASH PLAN
(-)
(-)
(-)
18
861,900
(-)
9
195,713
(-)
(-)
(-)
11
113,220
(-)
5
(-)
(-)
684,250
obligation 2021-2025
(-)
900,000
(-)
19
(-)
(-)
530,000
31
(-)
(-)
(-)
530,994
11
Total variable remuneration Vesting year 2021 or earlier vesting years
2,991,494
861,900
62 or 18
Strategic focus target component
(-)
1,156,332
195,713
(-)
52 or 9
Total variable remuneration
3,853,394
79
1,352,045
(-)
Remuneration for vesting year 2021 or earlier vesting years
(-)
1,030,500
358,862
(-)
16
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
(-)
(-)
21
(-)
(-)
(-)
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-2021
(-)
Personal cash investment amount 20214
RoCE component
(-)
Waiting allow- Pensions
ance/Pensions
(Partial) capital payments
Total
72,2732
(-)
Total remuneration according to § 162 German Stock Corporation Act (AktG)
Total remuneration for financial years 2021 or earlier vesting years
Total
ance/Pensions (Partial) capital payments
Waiting allow- Pensions
Waiting allowance
remuneration 2016 for holding obligation 2017-2021
Total
Share-based remuneration component (matching component)
Variable
(-)
(-)
(-)
(-)
(-)
as a % of total
remuneration
Fixed
Fringe benefits (other remuneration)
27,604
7
27,335
19
7
27,604
7
27,335
7
Performance Cash Plan 2019-2021
(-)
remuneration Total
(-)
96,3643
24
(-)
(-)
(-)
74
272,727
(-)
69
(-)
307,588
379,861
100
300,062
396,427
96,364
100
KLAUS FRÖHLICH
72,273
years in €¹
(-)
279,984
(-)
72,273
19
96,364
24
(-)
(-)
69
(-)
(-)
(-)
279,984
(-)
74
272,727
(-)
in €
Earlier vesting
Member of the Board of Management until 31 December 2016
Share-based remuneration component (matching component)
remuneration 2016 for holding obligation 2017-2021
(-)
96,3643
12
1 Remuneration for prior vesting years is due if, as of the balance sheet date, the activity underlying the
remuneration component has been fully performed, and all conditions for the entitlement are met.
2 The target amount of the 2019-2021 Performance Cash Plan is € 950,000. An advance payment of
€ 600,000 was made from the PCP 2019-2021 in 2020.
Variable
3 The number of shares purchased in 2017 with the 2016 cash remuneration component (investment
component) amounted to 3,470 (purchased on 12 May 2017 at a price of € 87.50). The 2016 matching
component was paid out in cash in May 2021. The number of mathematical matching shares for calcu-
lating the equivalent value in cash amounts to 1,156 (holding period expired on 11 May 2021). Reference
price for calculating the equivalent value of the matching shares: € 83.36).
Total
Total remuneration for financial years 2021 or earlier vesting years
Total remuneration according to § 162 German Stock Corporation Act (AktG)
Total
Waiting allowance
Waiting allow-
ance/Pensions (Partial) capital payments
Pensions
47
4
Total remuneration for financial years 2021 or earlier vesting years
Total remuneration according to § 162 German Stock Corporation Act (AktG)
^
in €
MILAGROS CAIÑA CARREIRO-ANDREE
Member of the Board of Management until 31 October 2019
Financial year 2021
Earlier vesting
4
years in €¹
32,950
32,950
Performance Cash Plan 2019-2021
(-)
363,300²
as a % of total
remuneration
Fixed Fringe benefits (other remuneration)
remuneration Total
(-)
459,664
285,000
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021
Combined Management Report
KLAUS DRAEGER
Earlier vesting
in €
years in €1
as a % of total
remuneration
Financial year 2021
FRIEDRICH EICHINER
Member of the Board of Management until 30 September 2016
Financial year 2021
59
To Our Stakeholders
307
(-)
37
(-)
(-)
(-)
(-)
BMW Group Report 2021
(-)
285,000
37
317,950
459,664
777,615
100
(-)
Cash remuneration component (investment component) 2020 for holding
obligation 2021-2025
PCP 2019-2021
Variable
56
Total variable remuneration
3,074,100
77
1,156,332
56
Remuneration for vesting year 2021 or earlier vesting years
3,801,862
(-)
215,475
2,058,305
(-)
100
Remuneration according to § 162 German Stock Corporation Act (AktG)
Service cost 5
Total amount received incl. service cost 6
4,017,337
401,466
4,418,803
100
95 or 5
2,058,305
352,121
2,396,139
1,156,332
(-)
(-)
(-)
Τ
Personal cash investment amount 20214
RoCE component
990,000
25
(-)
71 or 5
(-)
Strategic focus target component
510,125
Total variable remuneration Vesting year 2021 or earlier vesting years
2,858,625
(-)
215,475
13
(-)
(-)
(-)
(-)
100
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
Earnings component of bonus 2021
Performance component of bonus 2021
PERFORMANCE CASH PLAN
PCP 2018-2020
PCP 2019-2021
SHARE-BASED PAYMENT
Vesting year 2021
Earlier vesting years
Performance component of bonus 2020
in €¹
1,050,000
FY 2021
as a % of total
remuneration
Vesting year 2020
in €2
Earlier vesting years
in €3
FY 2020
as a % of total
remuneration
(-)
22
800,000
in €³
>
Earnings component of bonus 2020
Fringe benefits (other remuneration)
Total
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
5 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount was not paid out in the financial year.
6 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 4,925,000; the remuneration for the vesting year 2021 including service cost is € 4,208,023, which is below the maximum remuneration.
1 Remuneration system from financial year 2021.
² Remuneration system applicable until financial year 2020.
302
BMW Group Report 2021
To Our Stakeholders
BONUS
Combined Management Report
Corporate Governance
Remuneration Report
Other Information
← = Q
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
PIETER NOTA
Customer, Brands, Sales, Member of the Board of Management since 1 January 2018
Fixed remuneration
Fixed
remuneration
Group Financial Statements
(-)
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-2021
(-)
PCP 2018-2020
PCP 2019-2021
SHARE-BASED PAYMENT
Vesting year 2021
Earlier vesting years
in €¹
900,000
in €³
FY 2021
as a % of total
remuneration
PERFORMANCE CASH PLAN
(-)
Vesting year 2020
in €²
800,000
Earlier vesting years
in €3
FY 2020
as a % of total
remuneration
(-)
39
43,237
(-)
22
1
Performance component of bonus 2021
Performance component of bonus 2020
remuneration
301
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Earnings component of bonus 2021
Other Information
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
MILAN NEDELJKOVIĆ
Produktion, Member of the Board of Management since 1 October 2019
Fixed remuneration
Fixed
remuneration
Fringe benefits (other remuneration)
Total
BONUS
Earnings component of bonus 2020
← = Q
(-)
101,973
5
(-)
215,475
5
(-)
(-)
Variable
remuneration
Cash remuneration component (investment component) 2020 for holding
obligation 2021-2025
(-)
(-)
(-)
358,862
(-)
17
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
(-)
(-)
(-)
(-)
(-)
(-)
503,500
943,237
23
901,973
44
(-)
(-)
(-)
113,220
13
(-)
(-)
(-)
(-)
684,250
(-)
855,000
21
(-)
6
29
33
(-)
(-)
Fixed
remuneration
Fringe benefits (other remuneration)
Total
BONUS
Earnings component of bonus 2020
Performance component of bonus 2020
Earnings component of bonus 2021
Performance component of bonus 2021
Fixed remuneration
PERFORMANCE CASH PLAN
PCP 2019-2021
SHARE-BASED PAYMENT
Vesting year 2021
in €¹
1,050,000
Earlier vesting years
in €³
FY 2021
as a % of total
remuneration
(-)
22
PCP 2018-2020
Vesting year 2020
in €2
950,000
Finance, Member of the Board of Management since 1 January 2017
← = Q
100
1 Remuneration system from financial year 2021.
² Remuneration system applicable until financial year 2020.
>
3 Remuneration for prior vesting years if, as of the balance sheet date, the activity underlying the remuneration component has been fully performed, and all conditions for the entitlement are met.
" Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
5 The pension expense in accordance with IAS 19 reflects the expense recognised by the BMW Group; this amount was not paid out in the financial year.
6 Corresponds to the previous disclosure of amounts received in accordance with the model tables in the version of the German Corporate Governance Code dated 7 February 2017. For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the
vesting year are to be taken into account. The defined maximum remuneration for the vesting year 2021 is € 5,500,000; the remuneration for the vesting year 2021 including service cost is € 4,861,477, which is below the maximum remuneration.
REMUNERATION GRANTED AND OWED IN FINANCIAL YEAR 2021 (2020)
NICOLAS PETER
7 An advance payment in the amount of € 500,000 was paid out from the PCP 2019-2021 in 2020.
303
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
8 An advance payment in the amount of € 500,000 was paid out from the PCP 2018-2020 in 2019.
2,757,590
354,680
3,112,270
Earlier vesting years
FY 2020
as a % of total
remuneration
26
1,035,000
21
(-)
(-)
609,500
13
(-)
(-)
(-)
(-)
361,900
8
(-)
282,8508
500,0007
9
18,525
16
(-)
in €3
805,000
(-)
(-)
30
22,746
(-)
0.5
24,231
(-)
1,072,746
(-)
22
31
(-)
(-)
(-)
133,200
(-)
4
(-)
974,231
100
1
Total amount received incl. service cost 6
(-)
609,500
13
(-)
(-)
(-)
282,8508
10
(-)
(-)
8
(-)
500,0007
18
Variable
remuneration
Cash remuneration component (investment component) 2020 for holding
obligation 2021-2025
(-)
361,900
21
1,035,000
25
0.4
18,408
4,820,525
402,852
5,223,377
(-)
1
1,068,525
22
818,408
30
(-)
(-)
(-)
113,220
(-)
4
(-)
(-)
(-)
(-)
(-)
358,862
684,250
13
70 or 8
(-)
1,156,332
(-)
782,850
(-)
42 or 28
Total variable remuneration
3,752,000
78
12
70
4,458,625
361,900
92 or 8
1,974,740
782,850
(-)
72 or 28
Service cost 5
Remuneration for vesting year 2021 or earlier vesting years
(-)
361,900
1,939,182
Total variable remuneration Vesting year 2021 or earlier vesting years
Share-based remuneration component (matching component) 2015 for holding
obligation 2016-2020
(-)
(-)
3,390,100
(-)
Share-based remuneration component (matching component) 2016 for holding
obligation 2017-2021
(-)
(-)
(-)
Personal cash investment amount 20214
Remuneration according to § 162 German Stock Corporation Act (AktG)
RoCE component
Strategic focus target component
(-)
(-)
593,600
24
1,152,000
(-)
(210,000)
(95)
(100)
(10,000)
100
75,118
3
2,000
97
73,118
(200,000)
(10,000)
(5)
(5)
(95)
(200,000)
(100)
100
114,602
6,000
95
108,602
(5)
(210,000)
5
644,731
(100)
(100)
5,311,827
(5,292,822)
(10,000)
(1,468,548)
(4)
(60,000)
(96)
(1,408,548)
100
3
20,000
97
624,731
(100)
(210,000)
(5)
(10,000)
(95)
(200,000)
100
156,538
4
6,000
96
150,538
(210,000)
(95)
Brigitte Rödig 1,4
100
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
146,237
total remuneration
attendance fee
fixed remuneration
Total current and former members of the Supervisory Board
Total former members of the Supervisory Board
Simone Menne²
as a % of total
remuneration
Willibald Löw 1,3
Reinhard Hüttl2
Karl-Ludwig Kley (Deputy Chairman)²
FORMER MEMBERS OF THE SUPERVISORY BOARD
COMPENSATION PAID AND OWED TO SUPERVISORY BOARD MEMBERS ACCORDING
TO § 162 OF THE GERMAN STOCK CORPORATION ACT (AKTG) IN FISCAL YEAR 2021 (2020)
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
96
Combined Management Report
Horst Lischka 1,2
99
2,000
1
75,118
3
2,000
97
73,118
(100)
(200,000)
(5)
(10,000)
(95)
(190,000)
100
75,118
3
2,000
97
73,118
(100)
(428,548)
(2)
(10,000)
(98)
(418,548)
100
148,237
(200,000)
196,000
since November 2019
5,507,827
since May 2015,
Oliver Zipse²
III. REMUNERATION OF THE BOARD OF MANAGEMENT IN €¹
14%
99,169
-3%
86,715
- 4%
89,353
3%
93,522
Chairman since 16 August 2019
90,771
II. AVERAGE REMUNERATION OF EMPLOYEES IN €
I. CHANGES IN EARNINGS
187 %
11.2
- 19%
3.9
- 34%
192 %
228%
4,978
12,382
- 23%
3,775
Employees of BMW AG
Ilka Horstmeier
Milan Nedeljkovic
since October 2019
To Our Stakeholders
2,435,932
4,182,138
(-)
2,487,689
(-)
(-)
537,696
(-)
(-)
(-)
45%
3,923,856
384,435
(-)
(-)
- 34%
2,710,234
4,115,640
from October 2018 until December 2021
since July 2020
Frank Weber
Andreas Wendt
since January 2017
Nicolas Peter³
since January 2018
Pieter Nota3
- 31 %
4,915
4.8
- 17%
7.3
The presentation of average employee remuneration is
based on the average remuneration of all employees of
BMW AG on a full-time equivalent basis. In the 2021 financial
year, this was 78,144 people. As of 31 December 2021, BMW
Group employed 118,909 people worldwide. The compo-
nents of the average employee remuneration presented are
generally in line with the remuneration granted and owed to
the members of the Board of Management and the Supervi-
sory Board according to § 162 (1) Sentence 1 AktG.
The change in earnings is presented on the basis of BMW
AG's net profit for the year in accordance with the German
Commercial Code (HGB). In addition, the changes in the key
indicators "earnings attributable to shareholders of BMW
AG" and "Group post-tax return on sales" are reported, as
these key indicators are relevant to the calculation of the var-
iable remuneration of the members of the Board of Manage-
ment (earnings component of the bonus).
For the members of the Board of Management and the
Supervisory Board, the remuneration granted and owed in
the relevant financial year is presented within the meaning of
§ 162 (1) Sentence 1 AktG. The remuneration granted and
owed to former members of the Board of Management
includes any variable remuneration from previous vesting
years and any remuneration from any contracts of employ-
ment that remained valid beyond the end of their mandate,
as well as retirement benefit plans (pension payments, pay-
ments from the capital account), other remuneration and any
waiting allowances paid.
Pursuant to § 162 (1) Sentence 2 No. 2 AktG, the following
table shows the change in earnings, the annual change in
the remuneration of the members of the Board of Manage-
ment and the Supervisory Board, and the annual change in
the average remuneration of the employees on a full-time
equivalent basis over the last five financial years.
IV. Comparison of change in remuneration and earnings
pursuant to § 162 (1) Sentence 2 No. 2 of the German
Stock Corporation Act (AktG)
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
314
^
"Member of the Supervisory Board until 1 October 2021.
3 Member of the Supervisory Board until 16 July 2021.
2 Member of the Supervisory Board until 14 May 2021.
1 These employee representatives have declared that they will transfer their remuneration to the Hans Böckler Foundation in accordance with the guidelines of the German Federation of Trade Unions.
(100)
(5,488,822)
(4)
(196,000)
(96)
100
315
4
BMW Group Report 2021
Combined Management Report
8.8
Group post-tax return on sales (in %)
- 17%
7,117
- 19%
1,702
-25%
2,107
- 12 %
2,801
3,197
8,589
Profit attributable to shareholders of BMW AG (in € million)
Net income of BMW AG according to the German Commercial Code (HGB) (in € million)
Change in %
2021
2020 Change in %
2019 Change in %
2018 Change in %
2017
COMPARISON OF CHANGES IN EARNINGS AND REMUNERATION FOR EMPLOYEES, THE BOARD OF MANAGEMENT AND THE SUPERVISORY BOARD
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
To Our Stakeholders
BMW Group Report 2021
(-)
4 Member of the Supervisory Board since 12 May 2021.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
312
4 Member of the Supervisory Board until 31 December 2021.
>
COMPENSATION PAID AND OWED TO SUPERVISORY BOARD MEMBERS ACCORDING
TO § 162 OF THE GERMAN STOCK CORPORATION ACT (AKTG) IN FISCAL YEAR 2021 (2020)
3 Member of the Supervisory Board since 8 October 2021.
1 These employee representatives have declared that they will transfer their remuneration to the Hans Böckler Foundation in accordance with the guidelines of the German Federation of Trade Unions.
(100)
(210,000)
(5)
(10,000)
(95)
(200,000)
100
210,000
5
10,000
2 Member of the Supervisory Board since 12 May 2021.
MEMBERS OF THE SUPERVISORY BOARD IN OFFICE AS OF DECEMBER 31, 2021
fixed remuneration
attendance fee
5
10,000
95
200,000
Susanne Klatten
(-)
(-)
(-)
(-)
(-)
(-)
100
132,344
5
6,000
95
126,344
Johann Horn 1,2
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
total remuneration
95
210,000
200,000
(-)
(95)
(200,000)
100
210,000
5
10,000
95
200,000
Verena zu Dohna 1,4
(-)
(-)
(10,000)
(-)
(-)
100
135,419
6
8,000
94
127,419
Marc Bitzer²
(100)
(210,000)
(5)
(-)
(5)
(210,000)
(100)
(-)
(-)
(-)
(-)
(-)
100
135,419
6
8,000
94
127,419
Rachel Empey²
(-)
(-)
(-)
(-)
(-)
(-)
100
48,237
4
2,000
96
46,237
Bernhard Ebner 1,3
Heinrich Hiesinger
313
100
(95)
(100)
(210,000)
(5)
(10,000)
(95)
(200,000)
100
210,000
5
10,000
95
Werner Zierer¹
200,000
(100)
(208,000)
(4)
(8,000)
(96)
(200,000)
100
210,000
5
10,000
95
Thomas Wittig
200,000
95
10,000
3 Member of the Supervisory Board since 3 August 2021.
2 Member of the Supervisory Board since 14 May 2021.
1 These employee representatives have declared that they will transfer their remuneration to the Hans Böckler Foundation in accordance with the guidelines of the German Federation of Trade Unions.
(100)
(4,020,274)
(3)
(136,000)
(97)
(3,884,274)
100
4,863,096
4
176,000
96
4,687,096
Total acting members of the Supervisory Board
(100)
(210,000)
(5)
(10,000)
(95)
(200,000)
100
210,000
5
200,000
(200,000)
Vishal Sikka
(-)
100
210,000
5
10,000
95
200,000
Dominique Mohabeer¹
(-)
(-)
(-)
(-)
(200,000)
(-)
100
86,258
5
4,000
95
82,258
Jens Köhler 1,3
(100)
(210,000)
(5)
(10,000)
(-)
(95)
(10,000)
(5)
(-)
(-)
(-)
100
135,419
6
8,000
94
127,419
Christoph Schmidt 4
(100)
(134,344)
[6])
(8,000)
(94)
(126,344)
100
210,000
5
10,000
95
200,000
Anke Schäferkordt
(100)
(210,000)
(-)
(-)
612,359
218,000
2,651,143
2,660,349
0%
51% 210,000
-5% 210,000
210,000
0%
220,000
0%
220,000
220,000
since November 2001
Werner Zierer¹
210,000
0%
(-)
(-)
since May 2019
Thomas Wittig
1%
210,000
49 %
208,000
(-)
139,532
(-)
(-)
139,532
FORMER MEMBERS OF THE SUPERVISORY BOARD IN €
Karl-Ludwig Kley³
from May 2008 to May 2021, Deputy Chairman
0%
220,000
220,000
from May 2009 to May 2021
Horst Lischka¹
- 62%
75,118
0%
200,000
0%
200,000
5%
200,000
189,780
from May 2009 to May 2021
Reinhard Hüttl
- 65%
148,237
0%
428,548
0%
428,000
0%
430,000
430,000
(-)
220,000
since May 2019
(-)
(-)
86,258
(-)
(-)
(-)
(-)
since August 2021
Jens Köhler¹
0%
210,000
-5%
Dominique Mohabeer¹
(-)
(-)
(-)
210,000
1 %
220,000
- 1%
218,000
220,000
since May 1997
Susanne Klatten
(-)
(-)
132,344
since June 2012
220,000
220,000
135,419
(-)
(-)
(-)
(-)
since May 2021
Christoph Schmidt
56%
210,000
(-)
134,344
(-)
(-)
(-)
(-)
(-)
since May 2020
Anke Schäferkordt
0%
210,000
-5%
210,000
0%
220,000
0%
Vishal Sikka
0%
210,000
-5%
In our opinion, based on the findings of our audit, the remu-
neration report for the financial year from January 1 to
December 31, 2021, including the related disclosures, com-
plies in all material respects with the accounting provisions
of § 162 AktG.
Audit Opinion
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our audit opinion.
In making those risk assessments, the auditor considers
internal control relevant to the preparation of the remunera-
tion report including the related disclosures. The objective of
this is to plan and perform audit procedures that are appro-
priate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company's
internal control. An audit also includes evaluating the appro-
priateness of accounting policies used and the reasonable-
ness of accounting estimates made by the executive direc-
tors and the supervisory board, as well as evaluating the
overall presentation of remuneration report including the
related disclosures.
An audit involves performing procedures to obtain audit evi-
dence about the amounts including the related disclosures
stated in the remuneration report. The procedures selected
depend on the auditor's judgment. This includes the assess-
ment of the risks of material misstatement of the remunera-
tion report including the related disclosures, whether due to
fraud or error.
Our responsibility is to express an opinion on this remunera-
tion report, including the related disclosures, based on our
audit. We conducted our audit in accordance with German
generally accepted standards for the audit of financial state-
ments promulgated by the Institut der Wirtschaftsprüfer (Insti-
tute of Public Auditors in Germany) (IDW). Those standards
require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about
whether the remuneration report, including the related disclo-
sures, is free from material misstatement.
Auditor's Responsibilities
The executive directors and the supervisory board of Bayer-
ische Motoren Werke Aktiengesellschaft are responsible for
the preparation of the remuneration report, including the
related disclosures, that complies with the requirements of
§ 162 AktG. The executive directors and the supervisory
board are also responsible for such internal control as they
determine is necessary to enable the preparation of a remu-
neration report, including the related disclosures, that is free
from material misstatement, whether due to fraud or error.
Board
Responsibilities of the Executive Directors and the Supervisory
We have audited the remuneration report of Bayerische
Motoren Werke Aktiengesellschaft, Munich, for the financial
year from January 1 to December 31, 2021 including the related
disclosures, which was prepared to comply with § [Arti-
cle] 162 AktG [Aktiengesetz: German Stock Corporation Act].
Reference to an Other Matter - Formal Audit of the Remuneration
Report according to § 162 AktG
To Bayerische Motoren Werke Aktiengesellschaft, Munich
Remuneration Report pursuant to § 162 AktG for the Finan-
cial Year from January 1 to December 31, 2021
To Bayerische Motoren Werke Aktiengesellschaft Munich
VII. Auditor's Report
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
Auditor's Report
The audit of the content of the remuneration report described
in this auditor's report includes the formal audit of the remu-
neration report required by § 162 Abs. [paragraph] 3 AktG,
including the issuance of a report on this audit. As we
express an unqualified audit opinion on the content of the
remuneration report, this audit opinion includes that the
information required by § 162 Abs. 1 and 2 AktG has been
disclosed in all material respects in the remuneration report.
Restriction on use
6
INFORMATION
OTHER
← = Q
Other Information
Remuneration Report
352 Contacts
351 Financial Calendar
344 BMW Group Ten-year Comparison
346 Glossary and Explanation of Key Figures
342 Consumption and Carbon Disclosures
341 NFS-Index
337 TCFD-Index
332 SASB-Index
321 Further GRI Information
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
320
Andreas Fell
Wirtschaftsprüfer
Petra Justenhoven
Wirtschaftsprüferin
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Munich, March 9, 2022
We issue this auditor's report on the basis of the engage-
ment agreed with Bayerische Motoren Werke Aktienge-
sellschaft. The audit has been performed only for purposes
of the company and the auditor's report is solely intended to
inform the company as to the results of the audit. Our
responsibility for the audit and for our auditor's report is only
towards the company in accordance with this engagement.
The auditor's report is not intended for any third parties to
base any (financial) decisions thereon. We do not assume
any responsibility, duty of care or liability towards third par-
ties; no third parties are included in the scope of protection of
the underlying engagement. Section 334 BGB [Bürgerliches
Gesetzbuch: German Civil Code], according to which objec-
tions arising from a contract may also be raised against third
parties, is not waived.
319
Chairman of the Board
of Management
Oliver Zipse
For the Board of
Management
0%
1 %
220,000
220,000
0%
220,000
220,000
0%
218,000
218,000
from May 2015 to May 2021
from July 2013 to October 2021
Brigitte Rödig¹
Simone Menne
- 45%
114,602
- 5%
210,000
0%
220,000
0%
220,000
220,000
from May 1999 to July 2021
Willibald Löw¹
- 64%
75,118
210,000
210,000
(-)
-5%
- 64%
Dr.-Ing. Dr.-Ing. E.h.
Norbert Reithofer
Chairman of the
Supervisory Board
For the Supervisory Board
Bayerische Motoren Werke Aktiengesellschaft
There are no plans to change the remuneration system for
members of the Supervisory Board for the 2022 financial
year,
sum of intangible assets, property, plant and equipment and
net working capital. This simplified definition aims to make
this indicator more transparent and easier to understand. In
addition, the capital employed items taken into account
reflect the focus of operational segment management. The
new definition leads to an increase in capital employed com-
pared to the previous definition. The strategic target value for
the ROCE in the Automotive segment according to the new
definition will therefore be 18 % from the financial year 2022
onwards (previous year: 40 %). In terms of content, this
amounts to an even more ambitious objective compared to
the previous measurement of return on capital.
Under this system, 50 % of the share-based remuneration
as a long-term component of the variable remuneration
depends on the RoCE achieved in the Automotive segment
in the relevant vesting year. For the financial year 2021, the
RoCE is defined as the segment profit before financial result,
divided by the average capital employed in the segment. The
definition of this key indicator has been adjusted for the
financial year 2022. Previously, "capital employed" com-
prised the sum of all current and non-current operating
assets, adjusted for deductible capital. The deductible capi-
tal corresponded to the capital shares that were available to
the operational business, largely without interest. This
included, for example, trade payables and other provisions.
In future, the definition of capital employed will include the
In principle, the current remuneration system for members of
the Board of Management will apply unchanged for the 2022
financial year.
VI. Outlook for the 2022 financial year
The company maintains a financial loss liability insurance
policy for company directors. The insurance provides cover
for legal liability claims and protects the private assets of
members of BMW AG's corporate entities if a claim is made
against them for financial loss in the course of exercising
their function as a corporate entity. A deductible is provided
for members of the Board of Management that complies
with the requirements of the German Stock Corporation Act
(AktG).
BMW AG did not grant any loans to members of the Board of
Management or the Supervisory Board in the financial year
2021, nor did it enter into any contingent liabilities in their
favour. In the year under review, members of the Board of
Management and the Supervisory Board concluded con-
tracts with BMW Group companies for vehicle leasing and
vehicle services (maintenance and repair work) at arm's
length conditions.
V. Other considerations
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
318
3 Chairman of the Audit Committee until 2020 Annual General Meeting.
1 In line with the guidelines of the Deutscher Gewerkschaftsbund, these employee representatives have requested that their remuneration be paid into the Hans Bockler-Stiftung.
-25%
156,538
- 5%
75,118
- 42%
(-)
(-)
since May 2021
- 69%
until December 2017
1 %
- 64%
1,370,807
363,847
- 21%
-10%
- 1%
until May 2015, Chairman of the Supervisory Board since May 2015
- 34%
10%
Peter Schwarzenbauer6
-36%
- 69%
745,870
- 23%
10%
-30%
2%
-32%
396,427
62%
- 8%
- 73%
379,861
until August 2019
until October 2019
- 39%
- 83%
-2%
2021
2020 Change in %
2019 Change in %
2018 Change in %
2017
IV. REMUNERATION OF THE SUPERVISORY BOARD IN €
COMPARISON OF CHANGES IN EARNINGS AND REMUNERATION FOR EMPLOYEES, THE BOARD OF MANAGEMENT AND THE SUPERVISORY BOARD
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
317
6 For the financial years 2019 and 2020, the calculation of remuneration also included the advances paid in the amounts of € 600,000 and € 500,000 from the Performance Cash Plan 2018-2020 and 2019-2021, which were paid out in 2019 and 2020, respectively..
"For the financial years 2019 and 2020, the calculation of remuneration also took into account the advances in the amount of € 900,000 each from the Performance Cash Plan 2018-2020 and 2019-2021, which were paid out in 2019 and 2020, respectively.
5 Mr Krüger's contract of employment ran until 30 April 2020.
2 For the financial years 2019 and 2020, the calculation of remuneration also took into account the advances in the amount of € 600,000 each from the Performance Cash Plan 2018-2020 and 2019-2021, which were paid out in 2019 and 2020, respectively.
3 Ms Caiña Carreiro-Andree's contract of employment ran until 30 June 2020.
1 The reported remuneration for the years 2017-2020 has been recalculated in accordance with the requirements of § 162 German Stock Corporation Act (AktG).
149 %
3,297,170
7%
309,002
10%
- 54%
2%
Change in %
- 8%
- 68%
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
316
>
2 For the financial years 2019 and 2020, the calculation of remuneration also included the advances paid in the amounts of € 566,667 and € 712,000 from the Performance Cash Plans 2018-2020 and 2019-2021, which were paid out in 2019 and 2020, respectively.
3 For the financial years 2019 and 2020, the calculation of remuneration also included the advances in the amount of € 500,000 each from the Performance Cash Plans 2018-2020 and 2019-2021, which were paid out in 2019 and 2020, respectively.
1 The reported remuneration for the years 2017-2020 has been recalculated in accordance with the requirements of § 162 German Stock Corporation Act (AktG).
120%
283 %
3,856,458
4,851,197
- 1%
Group Financial Statements
55%
4% 4,820,525
17% 4,824,746
(-)
95%
4,017,337
93%
3,949,908
64%
8,752,558
36%
432 %
283 %
5,338,865
2,043,706
2,058,305
2,757,590
9% 3,117,471
(-) 1,006,759
265 % 2,208,364
(-) 2,233,062
7%
75%
Corporate Governance
Remuneration Report
Other Information
777,615
-25%
8%
- 39%
1 %
246,942
4%
0%
- 28%
until June 2020
until October 2019
until September 2016
until December 2016
until March 2013
lan Robertson
Norbert Reithofer
Harald Krüger 4,5
Klaus Fröhlich²
Klaus Draeger
Friedrich Eichiner
Frank-Peter Arndt
Milagros Caiña
Carreiro-Andree 2,3
FORMER MEMBERS OF THE BOARD OF MANAGEMENT IN €1
Change in 2021 on
2020 in %
2021
Change in 2020 on
2019 in %
Change in 2018 on
2017 in %
COMPARISON OF CHANGES IN EARNINGS AND REMUNERATION FOR EMPLOYEES, THE BOARD OF MANAGEMENT AND THE SUPERVISORY BOARD
Change in 2019 on
2018 in %
← = Q
- 1%
Norbert Reithofer
since 2015, Chairman
640,000
51%
210,000
(-)
139,532
(-)
(-)
(-)
(-)
135,419
(-)
(-)
210,000
(-)
(-)
(-)
(-)
0%
210,000
-5%
210,000
1 %
220,000
1 %
(10,000)
(-)
0%
(-)
(-)
Johann Horn¹
0%
210,000
-5%
210,000
0%
220,000
57%
220,000
140,355
since May 2017
Heinrich Hiesinger
(-)
(-) 135,419
(-)
(-)
(-)
(-)
(-)
(-)
(-)
48,237
(-)
(-)
(-)
216,000
since 2014
since May 2021
since May 2019
since October 2021
since May 2021
Verena zu Dohna
Bernhard Ebner¹
430,000
0%
430,000
430,000
since 1997, Deputy Chairman
0%
410,000
-5%
410,000
0%
430,000
0%
430,000
430,000
since 1988, Deputy Chairman
Stefan Quandt
Manfred Schoch¹
0%
610,000
-5%
610,000
0%
640,000
0%
640,000
0%
(-)
410,000
410,000
Marc Bitzer
Christiane Benner¹
Rachel Empey
25%
460,000
67 %
367,930
58%
220,000
(-)
138,968
since May 2018, Deputy Chairman and Chairman of the Audit
Committee
Kurt Bock2
0%
410,000
- 5%
410,000
0%
430,000
0%
428,000
430,000
since 2007, Deputy Chairman
Stefan Schmid¹
0%
-5%
(95)
2 Dr. Bock was elected Chairman of the Audit Committee after the 2020 Annual General Meeting.
100
2
610,000
100
(600,000)
(98)
(10,000)
(2)
(610,000)
(100)
Manfred Schoch (Deputy Chairman)¹
400,000
98
10,000
2
410,000
100
(400,000)
(98)
(10,000)
10,000
98
600,000
Norbert Reithofer (Chairman)
(200,000)
311
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
(2)
← = Q
MEMBERS OF THE SUPERVISORY BOARD IN OFFICE AS OF DECEMBER 31, 2021
fixed remuneration
attendance fee
total remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
COMPENSATION PAID AND OWED TO SUPERVISORY BOARD MEMBERS ACCORDING
TO § 162 OF THE GERMAN STOCK CORPORATION ACT (AKTG) IN FISCAL YEAR 2021 (2020)
(410,000)
as a % of total
remuneration
Stefan Quandt (Deputy Chairman)
(100)
Kurt Bock (Deputy Chairman, Chairman of the Audit Committee)
450,000
98
10,000
2
460,000
100
(97)
(410,000)
(10,000)
(367,930)
(100)
Christiane Benner¹
200,000
95
10,000
5
(100)
210,000
(3)
(2)
(357,930)
(98)
400,000
98
(10,000)
10,000
2
410,000
100
(98)
(10,000)
(2)
(410,000)
(400,000)
100
Stefan Schmid (Deputy Chairman)¹
400,000
98
10,000
2
410,000
(100)
(400,000)
412,451
425,796
164,957
498,299
164,957
508,318
224,819
205,320
294,724
498,299
258,380
9,368
3,206,948
3,093,542
3,117,505
3,005,902
2,669,457
2,624,557
8,908
3,660
192,911
7,760
3,517,068
192,911
2,344
84,166
2,205
4 The decrease was mainly due to the pandemic-related interruption of production at most BMW Group plants.
² Due to an extention in the reporting scope in the year under report, figures from 2019 and 2020 have been adjusted to enable better comparison. Figures for 2017 and 2018 are therefore not directly comparable.
3 Upper calorific value.
1 Energy consumption generated by vehicle production (BMW Group plants including the BMW Brilliance Automotive Ltd. joint venture and motorcycle, excluding partner plants and contract manufacturing)
and by other BMW Group locations not directly related to production (e.g. research centres, sales centres, office buildings).
2,316
2,316
1,703
1,703
1,091
381
Solar (photovoltaics)
177,564
1,211
56
1,501
68
220
220
67,038
65,065
65,065
68,560
68,560
86,787
1,161
2,888
5,169,266
33,322
125,450
1,021,955
114,072
979,887
5,329,550
4,946,865
4,946,865
114,072
653,673
1,001,199
120,583
5,226,227
5,226,227
120,583
627,825
530,3993
394,555
Non-manufacturing areas
89,300
95,493
Motorcycle production
324
5,362,618
Vehicle production
TOTAL ENERGY CONSUMPTION BY SEGMENT
6,476,955
6,040,824
5,714,610
6,348,009
TOTAL ENERGY CONSUMPTION BY SOURCE
Electricity
2,588,409
2,513,308
1,113
33,688
1,123
1,072
1,095
4,450
Wood pellets
of which CHP losses
Biogas (landfill gas)
of which CHP losses
Natural gas
Heating oil
31,882
Community cooling
274,484
266,112
2,453,215
2,320,314
2,154,8994
2,653,855
367,040
358,992
395,609
408,735
Community heating
2,439,675
284,763
BMW Group Report 2021
51,741
1,878,9104
Combined Management Report
14.2
33.6
17.1
37.5
20.1
31.1
17.6
31.7
17.2
Rail in %
Road in %
51.1
77.2
52.0
74.7
47.8
73.0
50.3
75.0
52.9
75.8
Sea in %
g CO₂e
27.2
6.3
2.5
6.5
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
325
1 Use and modelling of emissions factors primarily in accordance with DIN EN 16258 as well as figures from CleanCargo and JEC5; in some cases, extrapolations have been used for individual months.
2 Figures relate to automobile production (BMW Group including the BMW Brilliance Automotive Ltd. joint venture and partner plants, excluding Rolls-Royce and contract manufacturing) and spare parts deliveries to parts distribution centres.
3 Figures relate to automobile production (BMW Group including the BMW Brilliance Automotive Ltd. joint venture, contract production and parts for partner plants) and spare parts deliveries to distribution centres in markets worldwide as well as to dealerships in certain markets.
" Scope expanded to include the Greer packaging plant (South Carolina, USA) to supply production and distribute Rolls-Royce vehicles. The figures for 2021 are therefore not directly comparable with previous years.
5 The CO₂e emission values for 2020 are not directly comparable with those of previous years, as the analysis has been expanded to include the local data of suppliers, who are in the production supply for certain plants and in the vehicle transportation to dealers in certain markets as well as the additional volume of part deliveries.
17.9
1.0
10.6
0.5
12.2
tkm
0.6
0.9
12.9
0.7
Air in %
3.8
7.6
3.8
7.7
2.6
6.3
2.3
16.3
To Our Stakeholders
g CO₂e
g CO₂e
23,244
820,226
13,623
472,290
15,634
577,077
589,730
537,928
14,491
14,545
CO₂e emissions in t
Transport volume in million tkm
SPARE PARTS DELIVERY)
INBOUND² (MATERIAL PROVISION OF THE PLANTS AND
2021
2020
2019
2018
2017
TRANSPORT LOGISTICS: CARRIERS AND CO2 EMISSIONS 1
Further GRI Information
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
OUTBOUND³ (DISTRIBUTION OF VEHICLES AND SPARE PARTS)
Transport volume in million tkm
25,881
25,777
tkm
9 Соге
tkm
g CO₂e
tkm
PERCENTAGE SHARE OF CARRIERS IN TOTAL (INBOUND AND OUT-
BOUND) IN TERMS OF TRANSPORT VOLUME AND CO2 EMISSION
5,974,625
37,245
1,322,8595
1,570,397
42,123
1,563,919
tkm
40,268
40,426
CO₂e emissions in t
Transport volume in million tkm
TOTAL (INBOUND AND OUTBOUND)
28,497
1,058,685
23,622
850,569
993,320
974,189
959,147
CO₂e emissions in t
26,489
1,497,075
5,788,965
Utilisation phase ³,9
2021
2020 old
65,828,005
133,552,843
2019
2019 old
75,987,119
74,213,402
72,850,724
2018
2017
Total emission²
in t CO₂/CO₂e
BMW GROUP CO₂ FOOTPRINT¹
PRODUCTION, PURCHASING AND SUPPLIER NETWORK
FURTHER GRI INFORMATION
Further GRI Information
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
321
2020
2021
118,491,889
122,539,929
66,442
72,554
72,554
85,667
85,667
88,272
88,782
company-owned planes
company vehicles 7,8
699,713
631,3049
678,967
604,620
14.1
568,538
550,494
487,249
529,728
BMW Group locations 3,4,5
642,885
678,403
642,259
581,703
625,072
Total emission
SCOPE 1: DIRECT GREENHOUSE GAS EMISSION
586,638
6,562
21.1
Tariff
1,207
1,314
1,700
1,884
1,938
Voluntarily left company
- 20 Brazil
(termination or suspension of employment contract by employee)
809
873
1,029
2,6012
1,749²
- 31 Mexico
Dismissed by employer
61
60
65
50
33
1 Figures refer to employees with permanent contracts.
37 Other countries
2 Increase mainly due to a set of personnel measures.
Part-time retirement, retirement, death
3,720
4,535
2,794
10.6
7.1
10.8
Further GRI Information
↑
SHARE OF WOMEN IN THE WORKFORCE BY
COUNTRY WITH PRODUCTION SITE(S)
in %
TOTAL NUMBER OF EMPLOYEES LEAVING BMW AG, BY REASON FOR LEAVING¹
-7 India
Number
2017
27
2018
2020
2021
-17 Germany
-17 UK
- 25 USA
15 Austria (incl. sales region Eastern Europe)
-22 South Africa
33 Thailand
Total
2,077
2,247
2019
5,852,666
6,182
6,098
1 Due to the broader definition of Scope 1 and Scope 2 emissions generated by BMW Group locations in the year under report and adjustments to the methodology for calculating use-phase emissions, the years 2019 (base year) and 2020 have been adjusted for comparison purposes. For these reasons, a direct comparison with
2017 and 2018 figures is not possible.
1,316,438
1,150,857
1,150,857
1,878,9105
29,765
139,999
18,534,765
99,805,490
98,782,354
46,200,385
110,899,066
1,269,018
16,234,959
16,234,959
18,505,921
18,505,921
53,421,006
1,269,018
52,759,567
1,252,835
51,887,708
1,234,346
Disposal 8
Corporate Governance
17,221,109
16,786,192
Upstream chain 8
121,705,368
117,682,832
1,322,859
25,217
166,586
166,586
146,298
2 Includes all refuelling of function-relabel vehicles within Germany and at major international locations (e.g. test sites in the USA, Sweden and France). All refuellings of company vehicles in Germany and, since November 2021, throughout Europe are also included. The latter include both business and private trips, except refuel-
ling paid for privately by employees.
3 Emissions from company cars (Scope 1) are also included on a pro-rata basis under employee commuting and use phase (both Scope 3). A system-related delimitation is not currently possible.
" Includes both upstream and downstream transportation. Use and modelling of emissions factors primarily in accordance with DIN EN 16258 as well as figures from CleanCargo and JEC5; in some cases, extrapolations have been used for individual months.
5 Scope expanded to include the Greer packaging plant (South Carolina, USA) to supply production and distribute Rolls-Royce vehicles. The figures for 2021 are therefore not directly comparable with previous years.
2020
2020 old
2019
2019 old
2018
2017
Total energy consumption
TOTAL ENERGY CONSUMPTION
in MWh
ENERGY CONSUMPTION 1,2,3
Further GRI Information
65,100,863
1,322,859
25,2172
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
323
9 Use-phase emissions are based on global average fleet emissions. For definition, see glossary carbon emissions of new vehicle fleet worldwide, including upstream emissions. The calculation is based on an average mileage of 200,000 km.
8 Based on life cycle assessments in accordance with ISO 14040/44 of representative vehicles of the product lines using the LCA tool GaBi provided by the company Thinkstep (including the climate-impacting gases CO₂, CH 4, N₂O, SF 6, NF 3). Corresponding to the CO₂e emissions, the life cycle assessments show the energy consump-
tion (lower calorific value): around 86,095,113 MWh in the category "Bought-in goods and services" and around 600,049 MWh in the category "Waste disposal".
7 The figures from 2020 onwards are not directly comparable with previous years due to the improved data basis. In some cases, figures have been extrapolated based on surveys conducted at major national and international BMW Group locations.
6 Includes air travel, train travel and rental cars.
Other Information
6,098
129,646
75,042,286
1,570,397
129,646
146,298
>>>
9 Biomethane certificates amounting to 164,000 MWh are taken into account in this indicator. This share has reduced carbon emissions by 30,024 metric tonnes.
8 Emissions from company cars (Scope 1) are also included on a pro-rata basis under employee commuting and use phase (both Scope 3). A system-related delimitation is not currently possible.
7 Includes all refuelling of function-relabel vehicles within Germany and at major international locations (e.g. test sites in the USA, Sweden and France). All refuellings of company vehicles in Germany and, since November 2021, throughout Europe are also included. The latter include both business and private trips, except refuel-
ling paid for privately by employees.
6 Scope 2 emissions calculated using the market-based method in accordance with the GHG Protocol Scope 2 guidance; mainly the use of VDA emissions factors and in some cases the use of local emissions factors; alternative calculation using the location-based method: 1,404,348 t CO₂.
4 From 2021, this indicator also includes the carbon emissions generated by other BMW Group locations as well as those relating to production. For comparison purposes, the figures for 2019 (base year) and 2020 have been adjusted accordingly. The figures for 2017 and 2018 are therefore not directly comparable.
5 Calculation of Scope 1 and Scope 2 emissions, using the operational control approach in accordance with the GHG Protocol. Leased office space without the direct influence of the BMW Group on energy supply is therefore not included.
3 Carbon emissions (disregarding climate-impacting gases apart from carbon dioxide) generated by vehicle production (BMW Group plants including the BMW Brilliance Automotive Ltd. joint venture and motorcycle production, but excluding partner plants and contract manufacturing) and by other BMW Group locations not directly
related to production (e.g. research centres, sales centres, office buildings).
1 Due to the broader definition of Scope 1 and Scope 2 emissions generated by BMW Group locations in the year under report and adjustments to the methodology for calculating use-phase emissions, the years 2019 (base year) and 2020 have been adjusted for comparison purposes. For these reasons, a direct comparison with
2017 and 2018 figures is not possible.
2 The emissions listed account for approximately 90% of the BMW Group's total Scope 1 to Scope 3 emissions.
134,849
134,849
130,090
130,090
84,257
84,257
354,095
354,095
302,574
302,574
538,622
538,622
510,911
510,911
Electricity/heat purchased by BMW Group locations 3,4,5,6
Total emission
Scope 2: INDIRECT GREENHOUSE GAS EMISSION
1,967
1,793
1,793
(master craftsmen)
^
322
BMW Group Report 2021
136,608
73,093,077
1,563,919
159,039
71,714,741
1,497,075
169,233
140,187
Employees' commuter traffic 3,7
Business trips 6
Logistics4
Total emissions
SCOPE 3: INDIRECT GREENHOUSE GAS EMISSIONS
2021
2020
2020 old
132,520,346
1,570,397
2019
2018
2017
← = Q
Further GRI Information
BMW GROUP CO₂ FOOTPRINT¹
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
2019 old
Remuneration Report
2019
Further GRI Information
100
100
China (plant)
83
84
85
85
86
UK
100
100
100
100
100
Germany¹
2021
2020
2019
2018
2017
in %
SHARE OF EMPLOYEES REPRESENTED BY A TRADE UNION OR FALLING UNDER COLLECTIVE AGREEMENTS
Further GRI Information
100
100
100
Austria¹
SHARE OF EMPLOYEES PER COUNTRY WITH
PRODUCTION LOCATION(S)
ALTERNATIVE WAYS OF WORKING AT BMW AG1
1 Excluding executives and contractors. 7 GRI 102-41
100
100
100
Mexico¹
0
0
0
70
← = Q
63
20
0
USA (no collective agreements exist)
62
53
South Africa
100
100
100
100
100
59
Number of employees
Other Information
Corporate Governance
120.75
126.04
134.73
129.92
150
Number of employees in thousands
EMPLOYEES IN GERMANY AND ABROAD¹
1 The term "employee" has been redefined with effect from the reporting year 2020 (for definition, see Glossary).
For the period 2018 and earlier, the percentage of employees no longer covered by the new definition is between 7.5% and 8.0%
2 Around 30,5% of these are women employed at BMW AG. For system-related reasons, this data is only collected for BMW AG.
3 Permanent and fixed-term employees.
6,846
6,433
6,318
6,299
5,553
Employees in part-time employment³
2,503
2,892
3,489
4,638
4,685
97
103
110
119
118.96
120
20
Employees
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
329
6 Of whom 38.0 % are tariff-bound production employees of the BMW Group
5 Of whom 37.9 % are tariff-bound production employees of the BMW Group
4 Of whom 38.2 % are tariff-bound production employees of the BMW Group
3 Of whom 35.3% are tariff-bound production employees of the BMW Group
² Of whom 35.7% are tariff-bound production employees of the BMW Group
1 The term "employee" has been redefined with effect from the reporting year 2020 (for definition,
see Glossary). For the period 2018 and earlier, the percentage of employees no longer covered by the
new definition is between 7.5 und 8.0 %.
Remuneration Report
2021
2019
2018
2017
0
30
in Germany
Employees
60
90
90
abroad
2020
117
China 2,059
Part-time workers²
USA 12,171
of which fixed-term 142
Austria¹ 3,934
of which fixed-term 426
877 Brazil
4 Statistical population not including apprentices, interns, thesis students working at the company and doctoral candidates.
3 Only workers in administrative positions who engaged in teleworking.
² Of which 3,716 were female (62%). For systemic reasons, this number is only calculated for BMW AG.
For the period 2018 and earlier, the percentage of employees no longer covered by the new definition is between 7.5% and 8.0 %.
1 The term "employee" has been redefined with effect from the reporting year 2020 (for definition, see Glossary).
5.4
5.2
4.9
4.1
3.9
4,211
4,158
4,082
3,675
3,389
in % of total number of employees
Parental leave
0.6
of which fixed-term 0
UK 6,475
of which fixed-term 100
1 Including the Eastern Europe sales region.
"Meister"
30.7
14.1
16.7
Non-tariff employees
2021
2020
2019
Employee category
ACADEMY, BY EMPLOYEE CATEGORY
AVERAGE TRAINING HOURS AT THE BMW AG
0.8
Other Information
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
330
of which fixed-term 727
79,647 Germany
of which fixed-term 299
of which fixed-term 0
6,696 Other countries
of which fixed-term 2
3,033 Mexico
Remuneration Report
Number of employees
0.9
in % of total number of employees
43,309
36,208
34,339
31,754
Teleworking position³
Thailand 561
7.7
7.0
6.6
5.6
5.2
in % of total number of employees
of which fixed-term 756
5,951
5,568
5,440
5,000
4,572
2021
2020
2019
2018
2017
41,180
in % of total number of employees
63.3
66.1
464
653
764
648
567
Sabbaticals
South Africa 2,894
4.8
6.0
6.6
6.1
0.7
5.3
of which fixed-term 12
3,736
4,747
5,474
5,508
4,690
Number of employees who use "Vollzeit Select"
of which fixed-term 39
India 562
84.3
87.2
70.8
in % of total number of employees"
Other Information
8,466
8,684
2020
2019
2018
2017
Total waste
in t
WASTE FOR DISPOSAL PER VEHICLE
PRODUCED¹
WASTE 1
Further GRI Information
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
326
= Q
↑
1 Water consumed by automobile production (BMW Group plants, including the BMW Brilliance Automotive Ltd. joint venture, excluding partner plants and contract manufacturing).
0.3
0.0
2021
in kg
785,209
789,817
0
0.70
0.81
0.85
0.93
1.03
in kg
SOLVENT EMISSIONS PER VEHICLE PRODUCED 1
1 Waste generated by automobile production (BMW Group plants, including the BMW Brilliance Automotive Ltd. joint venture, excluding partner plants and contract manufacturing).
2 Includes both recycling and thermal utilisation.
6,650
7,168
14.6
9,749
9,031
Waste for disposal
822,848
768,292
771,162
779,911
776,179
Materials for recycling 2
829,498
775,459
780,911
9,906
2017
13.6
85.1
1.0
2.15
2.25
2.22
2.32
2.39
in m³
PROCESS WASTEWATER PER VEHICLE
PRODUCED¹
50.3 Steel and iron
-1.9 Duromers
Others 10.0
(e.g. tyres and seals) 3.7
Elastomers
(e.g. aluminium) 20.0
Non-ferrous metals
Textiles 1.2
resins 12.6
Thermoplastic
Naturwerkst.) 0.3
M.O.N. (modif. organ.
in %
BMW GROUP VEHICLES 1,2
AVERAGE DISTRIBUTION OF MATERIALS IN
2017
2018
2019
2020
4,924,477
2021
1111
4,722,310
2020
87.4
5,417,428
90.4
88.0
5,425,073
5,073,220
12.6
2017
of which rainwater in %
of which surface water in %
of which groundwater in %
of which drinking water in %
Water consumption
in m³
WATER CONSUMPTION1
1 Efficiency indicator calculated from the amount of water consumed by automobile production (BMW
Group plants, including the BMW Brilliance Automotive Ltd. joint venture, excluding partner plants and
contract manufacturing) divided by the number of automobiles produced (BMW Group plants, including
the BMW Brilliance Automotive Ltd. joint venture and partner plants, excluding contract manufacturing).
2 At approximately 2.46 million vehicles, the number produced (BMW Group plants, including the BMW
Brilliance Automotive Ltd. joint venture, partner plants and contract production) increased in the year
under report compared with the previous year (2020: approximately 2.26 million). Based on an average
weight of BMW Group vehicles of approximately 1.8 tonnes, the total weight of input materials is
around 4.3 million tonnes. To calculate the individual material flows, the total weight is multiplied by
the average distribution of the materials in BMW Group vehicles.
1 Calculation based on unit-adjusted averages for the BMW 1 Series, 2 Series, 3 Series, 4 Series,
5 Series, 6 Series, 7 Series, 8 Series, X1, X2, X3, X4, X5, X6, X7, Rolls-Royce, MINI, MINI Countryman
and the BEV vehicles iX, iX3, 14, 13, MINI E as well as the PHEV variants.
2021
2018
8,473
2018
2020
EMPLOYEES AT END OF YEAR'
EMPLOYEES AND SOCIETY
Further GRI Information
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
328
co co
8
8
2
2
9
3
2
9
0
0
2017
2018
2019
2020
8,860
8,645
3,418
3,474
3,503
3,709
3,506
106,928
108,676
113,719
121,994
0
117,664
120,726
126,016
134,682
129,932
Employees with fixed-term contract²
Other
Financial Services
Motorcycles
Automotive
BMW Group
2021
118,909
2019
0
1 Basis: Industry-specific sustainability questionnaire.
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
327
← = Q
Further GRI Information
1 Efficiency indicator calculated from the waste generated in automobile production (BMW Group plants,
including the BMW Brilliance Automotive Ltd. joint venture, excluding partner plants and contract ma-
nufacturing) divided by the number of vehicles produced (BMW Group plants, including the BMW Brilli-
ance Automotive Ltd. joint venture and partner plants, excluding contract manufacturing).
2021
2020
2019
2018
2017
0
2.90
3.33
4.09
|
3.86
4.27
Efficiency indicator calculated from the solvent emissions (VOC) generated in automobile production
(BMW Group plants, including the BMW Brilliance Automotive Ltd. joint venture, excluding partner
plants and contract manufacturing) divided by the number of automobiles produced (BMW Group
plants, including the BMW Brilliance Automotive Ltd. joint venture and partner plants, excluding
contract manufacturing).
2021
Other Information
SUSTAINABILITY ASSESSMENT OF RELEVANT SUPPLIER LOCATIONS
2018
2019
of which number of notifications that were clarified during the reporting year
Number of notifications of potential violations of our sustainability principles received
through our supply chain reporting channels
Number of existing supplier relationships that had to be terminated prematurely due to
serious sustainability violations
81
108
153
193
196
313
105
89
2 Includes on-site visits and remote audits.
Number of audits and assessments conducted by or on behalf of the BMW Group²
Number of supplier locations not awarded contracts because they fail to meet the
BMW Group's sustainability or other requirements¹
64 %
62 %
48 %
Number of identified sustainability deficits at potential and existing supplier locations
from an ESG perspective
98%
98 %
95 %
97%
Proportion of audited suppliers of production-related material with a contract volume
greater than € 2 million¹
2021
2020
61 %
0.6
= Q
52 China
A. Responsibility of the Board of
Management for climate-related risks
and opportunities
]]
^
333
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
[C
Topic
Accounting Metric
Product Safety
Number of vehicles recalled
Category
Quantitative
Unit of Measure
Code
Number
TR-AU-250a.3
Labour Practices
*The survey period runs from November of the previous year through to November of
the reporting year, as to allow for a processing time after the receipt of complaints.
100 %* of the security-related complaints were
reviewed.
In its report on NCAP programmes, the BMW Group
focuses on markets in the EU (including the UK), China,
the USA and South Korea. Further information on new
car assessment programmes is provided in the section on
effective safety systems.
-66% Korean New Car Assessment Programme (KNCAP)
Number
TR-AU-000.A
Number of vehicles sold
Quantitative
Number
TR-AU-000.B
Product Safety
Percentage of vehicle models rated by
NCAP programmes with an overall 5-star
safety rating, by region
Quantitative
Percentage (%)
Percentage of active workforce covered
under collective bargaining agreements
TR-AU-250a.1
Quantitative
Number,
Percentage (%)
TR-AU-250a.2
Response Comment
2,461,269* (Automobiles)
187,500 (Motorcycles)
* Production including the joint venture BMW Brilliance Automotive Ltd., Shen-
yang (2017: 396,749 automobiles, 2018: 491,872 automobiles, 2019: 536,509
automobiles, 2020: 602,935 automobiles, 2021: 700,777 automobiles).
2,521,514* (Automobiles)
194,261 (Motorcycles)
*Deliveries including joint venture BMW Brilliance Automotive Ltd., Shenyang
(2017: 385,705 automobiles, 2018: 455,581 automobiles, 2019: 538,612
automobiles, 2020: 602,247 automobiles, 2021: 651,236 automobiles).
- 100% - European New Car Assessment Programme
(Euro NCAP)
- 87% China New Car Assessment Programme (C-NCAP)
― 60 % - U. S. National Highway Traffic Safety Admin-
istration's (NHTSA) New Car Assessment Programme
(NCAP)
Number of safety-related defect
complaints, percentage investigated
Quantitative
Percentage (%)
TR-AU-310a.1
Corporate Governance
Remuneration Report
Other Information
[C
Topic
Accounting Metric
Category
Unit of Measure
Code
Fuel Economy & Use-phase Emissions
Group Financial Statements
Sales-weighted average passenger fleet
fuel economy, by region
Mpg, L/km, gCO₂/km,
km/L
TR-AU-410a.1
Number of (1) zero-emission vehicles
(ZEV), (2) hybrid vehicles and (3) plug-in
hybrid vehicles sold
Quantitative
Number
TR-AU-410a.2
SASB-Index
↑
= Q
Response Comment
Quantitative
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
(1) Number of work stoppages and
(2) total days idle
Quantitative
Number, Days idle
TR-AU-310a.2
SASB-Index
Response Comment
In reporting year 2021, safety and compliance-relat-
ed technical recall actions took place for 1,920,977
vehicles. These were voluntary and were carried out in
coordination with relevant authorities. The main tech-
nical recall actions related to the exhaust gas recircula-
tion cooler and Takata airbags. For further information
regarding quality management see 7 Product safety as
part of quality management.
Germany: 100 %
UK: 83%
China (Plant): 100%
Austria²: 100 %
South Africa: 70%
USA: no collective agreements in place
Mexico: 100 %
Based on the availability of data, the BMW Group focuses
on the aforementioned countries for the purposes of
reporting on this accounting metric.
* Excluding senior management and contractors.
Strike action is usually taken to reinforce pay rise
demands.
At BMW AG, strike action was taken in 2021 at the Leip-
zig plant. In this case, a series of five 24-hour strikes
was called by IG Metall as part of its campaign to secure
a so-called “equalization allowance" to compensate the
difference in contractual weekly working hours between
the collective bargaining areas in eastern and western
Germany. Due to the fact that the strikes took place
during the semiconductor supply crisis, the impact the
BMW Group cannot be quantified directly. Following
the conclusion of a collective bargaining framework
agreement on the harmonisation of working hours, the
BMW Group entered into corresponding discussions with
the Works Council.
At the BMW Group's international plants, strike action
resulted in operational disruptions at the Rosslyn site in
South Africa. Strikes were held on 13 days, spread over
four time-blocks, with the focus primarily on pay rise de-
mands. Lost production was compensated by additional
shifts. The number of employees involved in the strike
action was not recorded by the BMW Group.
]]
334
Code
Unit of Measure
Category
Quantitative
Number of vehicles manufactured
86.9
87.5
89.8
89.5
Other 7.6
Transport 8.3
Cleaning 1.9
3.1 Driving
USA
Austria
South Africa
87.7
86.3
88.3
89.1
88.3
82.8
85.6
82.3
78.7
79.1
Secondary
Testing 2.8
activities 12.8
87.4
99.8
99.7
99.7
331
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Further GRI Information
SHARE OF LOCAL EMPLOYEES IN MANAGEMENT POSITIONS AT MAJOR COMPANY LOCATIONS 1
MAIN ACCIDENT FACTORS¹
in %
2017
2018
2019
2020
2021
6.7 Processing
Germany
UK
99.4
99.5
- 23.9 Walking
Global carbon emissions of the new vehicle fleet,
including emissions generated by upstream supply chain
(normalised based on WLTP):
83.0
82.7
60.0
1 The accident severity rate in the reporting year was 66.1 lost days (due to occupational accidents)
per 1 million hours worked (2020: 53.4).
Mexico 3
48.4
62.9
67.8
1 "Local" refers to managers with local contracts. People deployed to work at the location who do not have a local employment contract are not included.
These are reflected in the difference to 100 in each case.
2 Including employees of the joint venture BMW Brilliance Automotive Ltd., Shenyang, which is not consolidated in the BMW Group.
3 Start of production 06/2019.
SASB-Index
57.8
332
To Our Stakeholders
Combined Management Report
Group Financial Statements
Remuneration Report
Other Information
← = Q
SASB-INDEX
[C
Topic
Activity Metric
Accounting Metric
BMW Group Report 2021
57.1
56.8
56.8
85.9
85.4
Assembly/
dismantling 16.3
India
70.0
74.4
82.1
68.4
78.4
16.6 Handling
parts
Brazil
76.1
77.6
78.2
84.9
85.1
China2
76.5
76.7
73.7
78.8
82.2
Thailand
82.8
197.9 g CO2/km¹
Corporate Governance
USA (USC): 140.9 g CO2/km (volume-weighted fleet car-
bon emissions, based on passenger cars and light trucks)
CN (WLTC): 163.0 g CO2/km²
Outlook, Risk and Opportunity Management
7 Organisation of Risk Management
BMW Group Report 2021
C. Integrating processes for identifying,
assessing and managing climate-related
risks within the Group's general risk
management system
B. Group processes for managing
climate-related risks
A. Group processes for identifying and
assessing climate-related risks
Risk Management
[C
← = Q
Other Information
Remuneration Report
7 Climate-Related Opportunities and Risks
Corporate Governance
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
339
TCFD-Index
>
]]
C 3.1, C3.1a
C2.3, C2.3a, C 2.4, C2.4a, C3.1, C3.3
C2.1, C2.3, C2.3a, C2.4, C2.4a, C 2.2a
Group Financial Statements
BMW Group Integrated Strategy
7 Environmental Analysis and Megatrends
Outlook, Risk and Opportunity Management
7 Organisation of Risk Management
7 Climate-Related Opportunities and Risks
BMW Group Integrated Strategy
7 Environmental Analysis and Megatrends
Strategy Process
B. Disclosure of Scope 1, Scope 2 and
Scope 3 greenhouse gas (GHG) emissions
A. Key sustainability indicators the Group
uses to assess climate-related risks and
opportunities
BMW Group Report 2021
Key Sustainability Indicators and Targets
(C
TCFD-Index
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
340
>
]]
C2.2
C 2.2, C2.2a
C2.2, C2.2a, C 2.1
CDP questionnaire 2021
7 Climate-Related Opportunities and Risks
Outlook, Risk and Opportunity Management
7 Organisation of Risk Management
CDP questionnaire 2021
C. Targets according to which the Group
addresses climate-related opportunities
and risks
Strategy Process
Outlook, Risk and Opportunity Management
338
TCFD-Index
>
]]
C 1.2, C 1.2a
C1.1a, C 1.1b
CDP questionnaire 2021
7 Performance Indicators
7 Strategy Process
BMW Group Integrated Strategy
BMW Group Report 2021
7 Climate-Related Opportunities and Risks
Outlook, Risk and Opportunity Management
7 Corporate Governance
- Performance Management
7 Performance Indicators
BMW Group Integrated Strategy
Strategy Process
7 Climate-Related Opportunities and Risks
7 Organisation of Risk Management
Outlook, Risk and Opportunity Management
BMW Group Report 2021
EU (WLTP): 115.9 g CO2/km²,3
7 Organisation of Risk Management
To Our Stakeholders
Combined Management Report
Group Financial Statements
* Reducing Carbon Emissions in the Supply Chain
7 Carbon Emissions at BMW Group Locations
Production, Purchasing and Supplier Network
- Electric Mobility
7 Carbon Emissions and Pollutants
Products and Mobility Solutions
7 Strategy Process
7 Climate change and CO₂ reduction
7 Environmental Analysis and Megatrends
BMW Group Integrated Strategy
Outlook, Risk and Opportunity Management
― Climate-Related Opportunities and Risks
7 Environmental Analysis and Megatrends
Strategy Process
Outlook, Risk and Opportunity Management
7 Climate-Related Opportunities and Risks
BMW Group Integrated Strategy
BMW Group Report 2021
C. Resilience of the BMW Group's
strategy
B. The impact of climate-related risks and
opportunities on the Group's business
activities and its strategic and financial
corporate planning
A. Climate-related risks and
opportunities
Strategy
[C
← = Q
Other Information
Remuneration Report
Corporate Governance
7 Climate-Related Opportunities and Risks
BMW Group Integrated Strategy
BMW Group Integrated Strategy
B. The role of management in assessing
and managing climate-related risks and
opportunities
7 Performance Indicators
Description of the management of
Discussion and Analysis
n/a
TR-AU-440a.1
risks associated with the use of critical
materials
SASB-Index
↑
= Q
Response Comment
In line with its corporate strategy, the BMW Group is
pursuing a clear course of decarbonisation. Against a
backdrop of increasing electrification, it is particularly
important to consider carbon emissions over the entire
life cycle of a vehicle. In this context, the BMW Group
has set itself decarbonisation targets by 2030 (base
year 2019) during the use phase, in the upstream supply
chain and in production. These targets were notified
to the SBTI and validated (Decarbonisation targets across
the value chain). The BMW Group is also taking measures
to mitigate and adapt to climate change. It is there-
fore imperative to identify climate-related risks and
opportunities and to take appropriate account of them
in determining the strategic direction to be followed,
managing the business and organising a Group-wide
risk management system. For further information, see
7 Climate-related opportunities and risks.
Material Sourcing
The BMW Group also has a set of rigorous measures in
place to reduce pollutant emissions generated by its ve-
hicles, such as nitrogen oxides (NOx), carbon monoxide
(CO) and particulate matter (PM) (pollutant emissions).
In order to meet the respective due diligence require-
ments in terms of environmental and social standards,
we rely on systematic risk analyses as well as preven-
tion, empowerment and remediation measures. Moreover,
the BMW Group enshrines its obligatory sustainability
standards in all its supply contracts. Sourcing the raw
materials required to produce battery cells, such as
lithium and cobalt, is generally a highly challenging task.
In order to establish traceability and transparency across
the supply chain for both of these raw materials and to
minimise the identified risks, the BMW Group sources
them directly from the producers and makes them avail-
able to its own suppliers in order to produce the current
generation of battery cells. Detailed information on the
approach taken by the BMW Group is provided in the
section Taking ecological and social responsibility.
Close cooperation with our suppliers in a spirit of part-
nership was one of the factors that enabled us, for ex-
ample, to cushion the effects of the global semiconductor
shortage to a large extent. In order to secure long-term
supplies in this area, the BMW Group concluded a direct
agreement with semiconductor suppliers for the first
time at the end of 2021. The agreement enables the
BMW Group to secure the supply of several million semi-
conductors per year. Global network and local procurement
336
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Topic
]]>>>
Discussion of strategy for managing fleet Discussion and Analysis n/a
fuel economy, and emissions risks and
opportunities
Code
Unit of Measure
7 Dashboard
The BMW Group focuses on the core markets of Europe,
China, and the USA, which account for more than 80 %
of BMW Group sales. Further information is provided the
sections Decarbonisation during the use phase meets legal re-
quirements and Fleet emissions in the USA, China and worldwide.
1The figures are determined using a new calculation method, which was
applied retroactively back to the year 2019 (2019 before adjustment:
140 g/km; 2020 before adjustment: 133 g/km). For definition, see
7 Glossary: Carbon emissions of the new vehicle fleet worldwide, including
upstream emissions.
2 This is a preliminary internal calculation with a potential variation of +/-
0.5 g CO2/km, as official registration figures have not been provided by the
authorities of all EU states. Official values published by the EU Commission
are not expected to be made available until the following year.
3 Flexibilities defined in the regulatory requirements for 2021: eco-innovations
at 1.7 g CO2/km (WLTP).
"Average volume-weighted fleet emissions including regulatory credit
factors of 8.83 g CO₂/ km (off cycle technologies, NEV multiplier, phase-in)
according to WLTC (Worldwide Harmonized Test Cycle) under China-specific
test road conditions.
(1) Emission free vehicles (BEV): 103,854*
(2) The BMW Group portfolio includes BEVs (1) and
PHEVS (2). Based on BMW Group definitions, 48V
vehicles are not classified as hybrid vehicles see
7 Electrified vehicles.
(3) Plug-in hybrid electric vehicles (PHEV): 224,460*
*Including the joint venture BMW Brilliance Automotive Ltd., Shenyang
]]
^
335
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
[C
Topic
Fuel Economy & Use-phase Emissions
Accounting Metric
Category
Materials Efficiency & Recycling
Accounting Metric
TR-AU-410a.3
Total amount of waste from manufactur-
ing, percentage recycled
TCFD-INDEX
[c
Governance
]]
C4.1, C4.1b, C4.2
C6.1, C6.3, C6.5
CDP questionnaire 2021
C4.2
7 Circular Economy, Resource Efficiency and Renewable Energy
Production, Purchasing and Supplier Network
Products and Mobility Solutions
← = Q
7 Performance Indicators
BMW Group Integrated Strategy
Other GRI Information (Table BMW Group CO₂ Footprint)
― Circular Economy, Resource Efficiency and Renewable Energy
Production, Purchasing and Supplier Network
7 Carbon Emissions and Pollutants
Products and Mobility Solutions
7 Performance Indicators
Category
Other GRI Information (Table BMW Group CO₂ Footprint)
BMW Group Integrated Strategy
Strategy Process
Other Information
7 Carbon Emissions and Pollutants
Average recyclability of vehicles sold
Quantitative
Remuneration Report
Unit of Measure
Metric tons (t),
percentage (%)
Metric tons (t),
percentage (%)
Code
TR-AU-440b.1
TR-AU-440b.2
Quantitative
Percentage (%) by sales-
weighted metric tons (t)
TR-AU-440b.3
Weight of end-of-life material recovered,
percentage recycled
Response Comment
SASB-Index
Total amount of waste: 829,498 t.; 93.4 % of this was
recycled and 5.8 % thermally utilised.
At the Recycling and Dismantling Centre in Munich,
8,543 vehicles (including motorcycles) were taken back
and recycled during the reporting year. This is equivalent
to a total vehicle scrap weight of 12,799 t. In relation to
the entire vehicle, at least 85% of materials are recycled
and, including thermal utilisation, at least 95% as
stipulated by legal requirements (European End-of-Life
Vehicles Directive ELV 2000/53/EC).
All BMW Group vehicles sold since 2008 meet the
currently applicable worldwide requirements for the
recycling of end-of-life vehicles, components and mate-
rials. Vehicles are already currently required to be 95%
recyclable (based on vehicle weight). Together with its
national sales organisations, the BMW Group has already
introduced take-back systems for end-of-life vehicles
in 30 countries and offers eco-friendly vehicle recycling
at more than 2,800 take-back points. From product
development to recycling.
The BMW Group not only wants to make vehicle more
recyclable, it is also looking to reduce the use of primary
raw materials in the automotive value chain and increase
the proportion of secondary raw materials. Circularity
as a strategic priority.
TCFD-Index
337
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Quantitative
← = Q
ed figures are increased by 10% to account for possible dis-
crepancies between cycle values and real emissions, as re-
quired by the Science Based Targets Initiative. This indicator
also includes the upstream emissions for the respective en-
ergy sources (fossil fuels and electricity used for charging), in
line with the well-to-wheel approach. This covers the entire
causal chain behind vehicle motion, i. e. from the generation
and supply of power to its conversion into drivetrain energy.
This approach also includes the environmental impacts as-
sociated with the supply of energy. For example, to calculate
the volume of emissions resulting from upstream electricity
(drivetrain energy supply), the BMW Group uses the energy
report published by the International Energy Agency (IEA) as
a basis in order to assess the emissions associated with the
electricity mix in its core markets.
Cash flow
Liquid funds generated (cash inflows) or used (cash out-
flows) during a reporting period.
Capitalisation rate
Similar to "value at risk” (see definition below).
Cash flow hedge
Hedges against exposures to the variability in forecasted
cash flows, particularly in connection with exchange rate
fluctuations.
Glossary and Explanation of Key Figures
Commercial paper
Cash flow at risk
Other Information
porting period. New registrations for these purposes com-
prise all newly registered vehicles of a given manufacturer in
the EU, including Norway and Iceland, during the calendar
year, plus any individual vehicle-specific carbon emissions
determined in accordance with the WLTP type test proce-
dure. The BMW Group's fleet carbon emissions figure for
2021, as measured internally, includes legally permitted off-
setting of eco-innovations.
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
347
This indicator documents the progress made by the
BMW Group in its strategic objective of reducing carbon
emissions during the utilisation phase including upstream
emissions (drivetrain energy supply) by an average rate of
more than 50% per kilometre driven by 2030 (base year
2019). For the purpose of this calculation, the volume-weight-
ed average fleet carbon emissions are calculated for the core
markets EU (27 EU countries incl. Norway and Iceland; plus
UK) (driving cycle: Worldwide Harmonized Light Vehicles
Test Procedure; basis: production volume), USA (driving cy-
cle: United States Combined; basis: production volume) and
China (driving cycle: Worldwide Harmonized Test Cycle, sub-
ject to China-specific framework conditions for testing; ba-
sis: import volumes/local production volumes; incl. joint
venture BMW Brilliance Automotive Ltd.) before deduction of
legally permitted offsetting factors (e.g. supercredits and
eco-innovations) and then standardised according to the
WLTP (European) driving cycle. These core markets account
for more than 80% of the BMW Group's sales. The calculat-
Carbon emissions of the new vehicle fleet worldwide,
including upstream emissions
Carbon emissions of the new vehicle fleet in the EU
The average carbon emissions of a manufacturer's fleet are
calculated on the basis of the weighted average of carbon
emissions across all vehicles newly registered during the re-
Capitalised development costs as a percentage of research
and development expenditure.
Short-term debt instruments with a term of less than one
year which are usually issued at a discount to their face val-
Remuneration Report
ue.
BMW Group Report 2021
Credit default swap (CDS)
Investments in property, plant and equipment and other in-
tangible assets (excluding capitalised development costs)
as a percentage of Group revenues.
Group Financial Statements
Combined Management Report
To Our Stakeholders
348
The process of combining separate financial statements of
Group entities into Group Financial Statements, depicting
Consolidation
The BMW Group uses the terms Battery Electric Vehicle
(BEV) to denote fully electric vehicles and Plug-in Hybrid Ve-
hicle (PHEV) to denote vehicles that can be charged and
also driven on a fully electric basis.
Electrified vehicles
The effective tax rate is calculated by dividing the income tax
expense by the Group profit before tax.
Effective tax rate
EBIT plus financial result.
EBT
nues.
Profit loss before financial result as a percentage of reve-
EBIT margin
Abbreviation for "Earnings Before Interest and Taxes", equiv-
alent in the BMW Group income statement to "Profit / loss
before financial result". This is comprised of revenues less
cost of sales, selling and administrative expenses and the
net amount of other operating income and expenses.
EBIT
Basic earnings per share are calculated for common and
preferred stock by dividing the net profit after minority inter-
ests, as attributable to each category of stock, by the aver-
age number of shares in circulation. Earnings per share of
preferred stock are computed on the basis of the number of
preferred stock shares entitled to receive a dividend in each
of the relevant financial years.
Earnings per share (EPS)
E
A new or used vehicle will be recorded as a delivery once
handed over to the end user. End users also include lease-
holders under lease contracts with BMW Financial Services
and in the US and Canada - dealers when they designate
a vehicle as a service loaner or demonstrator vehicle. In the
case of used vehicles, end users may include dealers and
other third parties when they purchase a vehicle at auction or
directly from the BMW Group. Vehicles designated for the
end user and suffering total loss in transit will also be record-
ed as deliveries. Deliveries may be made by BMW AG, one of
its international subsidiaries, a BMW Group retail outlet, or
independent dealers. The vast majority of deliveries - and
hence the reporting to BMW Group of deliveries - are made
by independent dealers. In the US and Canada, the period
start and end dates for the reporting of deliveries may imma-
terially deviate from the beginning and, respectively, end of
calendar years or calendar quarters and instead follow in-
dustry-standard reporting calendars.
Deliveries
D
Financial swap agreements, under which creditors of securi-
ties (usually bonds) pay premiums to the seller of the CDS to
hedge against the risk that the issuer of the bond will default.
As with credit default insurance agreements, the party re-
ceiving the premiums gives a commitment to compensate
the bond creditor in the event of default.
the financial position, net assets and results of operations of
the Group as a single economic entity.
Capital expenditure ratio
Dividend per share of common stock / preferred stock
The sum of the balance sheet line items "Leased products"
and "Receivables from sales financing" (current and non-cur-
rent), as reported in the balance sheet for the Financial Ser-
vices segment.
1,640
1,707
2.60/2.62
2.90/2.92
3.20/3.22
3.50/3.52
4.00/4.02
3.50/3.52
2.50/2.52
1.90/1.92
1,904
2,102
2,300
2,630
2,303
1,646
1,253
3,8275
5.80/5.825
€
Corporate Governance
Dividend total
89,161
89,869
105,876
110,351
116,324
92,337
2.50/2.52
1 The 2018 figures were adjusted due to the change in accounting policy in conjunction with the adoption of IFRS 16 (see Annual Report 2019, note 6 to the Group Financial Statements).
In addition, prior year figures were adjusted due to changes in the presentation of selected items that are of minor importance overall.
2 Retail vehicle delivery data presented for 2020 and 2021 is not directly comparable to such data presented for previous years. For further information on retail vehicle delivery data, please see Comparison of Forecasts with Actual Outcomes.
3 Excluding Husqvarna, deliveries up to 2013: 59,776 units; production up to 2013: 59,426 units.
"Since the reporting year 2020, a new definition for workforce size has been applied ( Glossary). To enable better comparability, the value for 2019 was adjusted accordingly (2019 before adjustment: 133,778 employees).
Business volume in balance sheet terms
A securitised debt instrument in which the issuer certifies its
obligation to repay the nominal amount at the end of a fixed
term and to pay a fixed or variable rate of interest.
Bond
tended sick leave or on sabbatical were also included in this
definition.
Since 2020, all people with active temporary or permanent
employment contracts (as of 31 December in the year in
question) with the BMW Group (includes all of the consoli-
dated and non-consolidated companies in which the
BMW Group holds more than 50% of the shares) have been
considered employees of the BMW Group. This excludes ap-
prentices, interns, temporary staff (working students), tem-
porary employees, dormant/inactive employment contracts
due to maternity leave, sabbaticals, parental leave, long-
term illness (as defined in the country in question), those in
inactive early retirement phase, and employees accompany-
ing their partner abroad. Up to 2019, temporary staff, post-
graduate students, interns, apprentices, and people on ex-
BMW Group employees
B
A form of corporate financing involving the sale of receiva-
bles to a financing company.
Asset-backed financing transactions
The number of people on multi-year vocational training
courses at a BMW Group company (includes all of the con-
solidated and non-consolidated companies in which the
BMW Group holds more than 50% of the shares), with these
training courses consisting of practical and theory sections.
Apprentices
A
C
EXPLANATION OF KEY FIGURES
Glossary and Explanation of Key Figures
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
346
5 Proposal by management.
For the timeframe including and prior to 2018, the share of the employees that are no longer reflected in reporting is about 7.5-8 %.
GLOSSARY AND
Remuneration Report
Outlook
Glossary and Explanation of Key Figures
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
350
The engineering, IT and process expertise required for the
(pre-)development of hardware and software for all
BMW Group products and services is combined at the
Group's international research and development locations.
Research and development locations
Research and development expenditure ratio
Research and development expenditure as a percentage of
Group revenues.
The sum of research and non-capitalised development cost
and capitalised development cost (not including the associ-
ated scheduled amortisation).
Research and development expenditure
R
nues.
Group profit loss before tax as a percentage of Group reve-
Pre-tax return on sales
Group net profit as a percentage of Group revenues.
Post-tax return on sales
The number of people with active employment contracts
who are absent from work on grounds of illness for an ex-
tended period of time (as defined in the country in question
- in Germany, this means an absence of more than 42 calen-
dar days with a given illness).
People on extended sick leave
Ratio of unappropriated profit of BMW AG in accordance with
HGB to net profit for the year of the BMW Group in accord-
ance with IFRS.
Payout ratio
The number of employees (see definition of "Employees”),
distinguishing between employees who have contractually
stipulated weekly working hours as prescribed by law, in a
collective wage agreement or by the company in question
(full time) and employees with a contractually stipulated re-
duction in their number of weekly working hours, which are
thus less than the respective number of full-time working
hours (part time).
>= 10.0 %-pts.
[-0.9%-pts. / +0.9%-pts.]
[+1.0%-pts. / +4.9%-pts.]
[-1.0%-pts. / -4.9 %-pts.]
[+5.0%-pts. / +9.9 %-pts.]
[-5.0%-pts. - 9.9 %-pts.]
>= 10.0%-pts.
Other Information
Part time, full time
Glossary and Explanation of Key Figures
Return on capital employed (ROCE)
122,244
97,136
A measure of the potential maximum loss in value of an item
during a set time period, based on a specified probability.
Value at risk
V
Expenditure for further education includes all costs incurred
by the BMW Group's consolidated companies in connection
with ongoing and advanced training. This includes prepara-
tion and implementation costs, opportunity costs and in-
vestments made in order to provide such training. Costs also
include notional depreciation, measured on the basis of as-
set inventory lists.
The number of apprentices undergoing training within the
BMW Group includes those employed at domestic and inter-
national plants in a total of seven countries as well as those
working in corporate functions, at Group plants in Germany
and international sales companies as well as in the Financial
Services segment.
Expenditure for training comprises all costs incurred in the
year under report for vocational training within the
BMW Group in a total of seven countries, including personnel
costs for trainers and apprentices as well as other costs and
investments related to vocational training.
Training and further education
The number of people employed on an hourly basis as tem-
porary staff at a BMW Group company (includes all of the
consolidated and non-consolidated companies in which the
BMW Group holds more than 50% of the shares) while stud-
ying for a degree.
Temporary staff/working students
The number of people employed by the BMW Group (in-
cludes all of the consolidated and non-consolidated compa-
nies in which the BMW Group holds more than 50% of the
shares) whom the BMW Group has actively hired from a
temporary employment agency as temporary employees.
T
Scope 1 emissions are generated within a company through
the combustion of fossil fuels, Scope 2 refers to the indirect
emissions caused by the consumption of electricity and heat
from externally generated sources of energy. Scope 3 emis-
sions are generated in the upstream and downstream stag-
es of the value chain, both in the supply chain (upstream]
and in the subsequent use of products and services (down-
stream).
The carbon emissions generated by a company are recorded
in various categories. The Greenhouse Gas Protocol, a part-
nership between the World Resources Institute (WRI) and
the World Business Council for Sustainable Development
(WBCSD), distinguishes between Scope 1, Scope 2 and
Scope 3 emissions, based on their various sources. Whereas
Scope 1 to Scope 3 carbon emissions
The number of people with active employment contracts
who are absent from work for at least one month and for not
more than six months due to an employee-funded leave of
absence ("sabbatical").
Sabbatical
S
equity capital at the end of the last five quarters - attribut-
able to the Financial Services segment.
-
RoE in the Financial Services segment is calculated as seg-
ment profit before taxes, divided by the average amount of
-
Return on equity (ROE)
ROCE in the Automotive and Motorcycles segments is meas-
ured on the basis of relevant segment profit before financial
result and the average amount of capital employed
at the
end of the last five quarters in the segment concerned.
Capital employed corresponds to the sum of all current and
non-current operational assets, less liabilities that generally
do not incur interest.
-
← = Q
Other Information
Slight decrease
Solid increase
Moderate decrease
Significant increase
Significant decrease
P
Liquidity
L
The number of people obtaining voluntary or mandatory
work experience at a BMW Group company (includes all of
the consolidated and non-consolidated companies in which
the BMW Group holds more than 50% of the shares) while
studying for a degree.
Interns
I
Gross profit as a percentage of Group revenues.
Gross profit margin
Goodwill corresponds to the consideration paid to acquire an
entity, less the fair value of the separate assets acquired and
liabilities assumed. The buyer is willing to pay the additional
amount in return for future expected earnings.
Goodwill
G
Free cash flow is derived from cash flows from operating and
investing activities. The cash flows from investing activities
from the purchase and sale of marketable securities and in-
vestment funds is not included. Cash flows from the pur-
chase and sale of shares and the dividend payout from in-
vestments accounted for using the equity method are
included in the cash flows from investing activities.
Free cash flow
A hedge against exposures to fluctuations in the fair value of
a balance sheet item.
Fair value hedge
The amount at the measurement date for which an asset
could be exchanged, or a liability settled, between knowl-
edgeable, willing parties in an arm's length transaction.
Fair value
F
Expenditure on training and further education
Expenditure on training comprises all costs incurred in the
reporting year for vocational training within the consolidated
and non-consolidated, wholly owned subsidiaries of the
BMW Group, including personnel costs for trainers and ap-
prentices as well as other costs and investments related to
vocational training. The volume of expenditure for further ed-
ucation is calculated for all consolidated and non-consoli-
dated wholly owned subsidiaries of the BMW Group. This
includes preparation and implementation costs, opportunity
costs and investments made in order to provide such further
education. These costs also include notional depreciation,
measured on the basis of inventory lists.
Equity capital as a percentage of the balance sheet total.
Equity ratio
The number of people with temporary or permanent employ-
ment contracts who have opted for retirement via partial re-
tirement working arrangements and who are in the non-ac-
tive phase of this model (i. e. the second part, following the
active phase in this model).
Employees in the non-work phase of partial retirement
working arrangements
The number of employees includes BMW AG and all compa-
nies in which it holds a majority interest, irrespective of
whether they are consolidated in the Group Financial State-
ments. The figure does not include employees in dormant
employment relationships, those in the non-work phase of
partial retirement working arrangements and low-wage
earners. With effect from the financial year 2020, the defini-
tion also includes employees with permanent and fixed-term
contracts. Up to 2019, it also included temporary staff, post-
graduate students, interns, apprentices, those on extended
sick leave and sabbaticals.
Employees
← = Q
Cash and cash equivalents as well as marketable securities
and investment funds.
At previous year's level
Slight increase
M
Management positions are positions at functional levels I to
IV below the Board of Management level.
Unlike the other key performance indicators, the RoCE fore-
cast for the Automotive and Motorcycles segments is based
on the change in percentage points:
[-0.9% +0.9%]
[+1.0% / +4.9%]
[-1.0% / -4.9%]
[+5.0% / +9.9%]
[-5.0% / 9.9%]
>10.0%
>=-10.0%
Slight decrease
Solid increase
Moderate decrease
Significant increase
Significant decrease
At previous year's level
Slight increase
The BMW Group uses the following terminology and ranges
when forecasting key performance indicators:
This entails compensating for carbon emissions which can-
not be avoided by reducing emissions elsewhere (avoid-
ance) or else by absorbing them by means of so-called car-
bon sinks (carbon removals). In its activities, the BMW Group
stresses the avoidance of carbon emissions over compensa-
tion. Unavoidable carbon emissions are neutralised in ac-
counting terms by means of offsetting. Offsetting involves
purchasing certificates on the voluntary carbon market and
thus goes beyond the carbon offsetting approach which is
implemented via the European Union Emissions Trading
System (ETS). Criteria such as additionality, permanence,
additional social benefits (e.g. will the avoidance of open
fires in enclosed spaces provide health benefits), certifica-
tion, transparency and the avoidance of double counting
contribute to the quality of the certificates used and thus to
the effectiveness of offsetting.
Offsetting
0
courses.
education worldwide. This data is collected by directly regis-
tering participants and, to a lesser extent, via qualified ex-
trapolation. It comprises the overall number of participants
on training and qualification courses, including e-learning
← = Q
Glossary and Explanation of Key Figures
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
349
The number of employees of the BMW Group (includes all
consolidated and non-consolidated companies in which the
BMW Group is the sole shareholder) participating in further
Number of training participants
N
The number of people with active employment contracts
who are absent from work, as permitted by law, before and
after the birth of a child (maternity protection) or due to par-
enthood, as provided for by law in the country in question
(parental leave).
Maternity protection, parental leave
Management positions
Temporary employee
Contractually stipulated weekly hours of work.
134,682
101,178
416-521
493-590
19.1 16.1
22.5 18.0
BMW i4 eDrive40
BMW i4 M50
BMW
Figures according to WLTP
BMW 520e
in kWh/100 km
(combined/weighted
combined) max/min
CO₂ emissions
in g/km
(combined/weighted
combined) max/min
in l/100km
(combined weighted
combined) max/min
Fuel consumption
in kWh/100 km
(combined weighted
combined) max/min
Figures according to NEDC
Electricity power
consumption
CO₂ emissions
in g/km
(combined/weighted
combined) max/min
Fuel consumption
in l/100km
(combined weighted
combined) max/min
Electricity power
consumption
Electric range
(combined weighted
combined)
1.8 1.3
18.2-16.3
53-61
18.3-16.2
41 - 30
1.8 1.3
BMW 530e
15.6-15.0
46-42
41-30
15.1-14.5
1.9-1.7
2.0-1.8
51-57
18.4-17.0
43-35
1.9 1.5
BMW 520e Touring
53-61
43-39
Model
As of February 2022
Consumption and Carbon Disclosures
10.8
231-227
10.2 10.0
BMW M3
15.8-14.7
49-43
2.2 1.9
248
48-57
48-35
2.1-1.6
BMW 330e xDrive Touring
15.6-14.5
44-38
1.9 1.7
52-61
19.3 17.3
BMW X3 xDrive30e
2.6-2.0
59-45
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
343
230-226
10.1 9.9
BMW M4
453-461
18.9 18.5
BMW iX3
42-50
20.5-18.9
1.9 -1.7
18.3-16.2
43-39
BMW 530e xDrive
20.1 18.8
57-47
2.5 2.1
BMW 745Le xDrive
2.2 -2.1
48-55
18.9 17.9
45-52
49-41
BMW 745e
550 - 631
502-561
24.5-21.9
23.0 19.8
372-425
22.5 19.3
BMW iX M60
2.1 1.8
BMW iX xDrive50
2.6-2.5
16.9-16.6
17.8-17.5
2.1 1.7
MINI Cooper SE Countryman ALL4
170-158
7.5-6.9
MINI Cooper S Countryman ALL4
17.6 -15.2
MINI Cooper SE
51-47
59-56
MINI
51-49
2.2-2.2
47-54
19.1 - 18.1
50-42
2.2 1.8
BMW 745Le
17.1 -16.5
BMW iX xDrive40
25.2-23.5
47-37
301
BMW 545e xDrive
16.1-15.4
46-42
2.0 1.8
51-57
18.6-17.1
44-35
2.2-1.6
1.9 1.5
16.5-15.9
49-46
2.1 2.0
47-55
19.4-17.4
49-35
2.2-1.6
BMW 530e Touring
51-37
19.2-17.2
47-57
13.1
2.1-1.6
77-88
27.7 24.3
39-27
305-299
13.4 13.1
BMW X6M
303
13.3
307-303
1.7 1.2
13.6-13.3
BMW X5 xDrive45e
BMW X5M
16.3-15.8
53-49
2.3-2.2
14.9-13.8
42-31
1.9-1.4
BMW 330e Touring
7 Purchasing and Supplier Network
7 Compliance and Human Rights
7 Corporate Citizenship
7 Purchasing and Supplier Network
7 Product Safety and Data Protection
7 Environmental Analysis and Megatrends
7 BMW Group Integrated Strategy
7 Compliance and Human Rights
7 Diversity
7 Employer Attractiveness and Employee Development
7 Employees and Society
7 Performance indicators
How does the BMW Group ensure cooperation?
-
7 BMW Group Integrated Strategy
Production, Purchasing and Supplier Network
7 Health and Performance
7 Products and Mobility Solutions
7 EU Taxonomy
* Regulation (EU) 2020/852 of the European Parliament and of the Council of 18
June 2020 on the establishment of a framework to facilitate sustainable invest-
ment, and amending Regulation (EU) 2019/2088 (Text with EEA relevance).
Fuel consumption
in l/100km
(combined weighted
combined) max/min
As of February 2022
official figures are only based on WLTP. In the vehicles, different figures
than those published here may apply for the assessment of taxes and
other vehicle-related duties which are also based on CO2 emissions. For
further details of the official fuel consumption figures and official spe-
cific CO2 emissions of new cars, please refer to the "Manual on fuel con-
sumption, CO₂ emissions and power consumption of new cars", available
at www.dat.de/co2
The figures for fuel consumption, CO₂ emissions and power consumption
are calculated based on the measurement methods stipulated in the cur-
rent version of Regulation (EU) 715/2007. This information is based on a
vehicle with basic equipment in Germany; ranges take into account differ-
ences in wheel and tyre size selected as well as optional equipment and can
change based on configuration. The figures have been calculated based on
the new WLTP test cycle and adapted to NEDC for comparison purposes.
For vehicles that were newly type approved on or after January 1, 2021,
FIGURES FOR FUEL CONSUMPTION, CO2-EMISSIONS AND POWER CONSUMPTION
CONSUMPTION AND
CARBON DISCLOSURES
Consumption and Carbon Disclosures
NFS-Index
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
342
Other Information
7 Performance Indicators
7 Environmental Analysis and Megatrends
7 BMW Group Integrated Strategy
Environmental matters
Connection to figures in financial statements
Risks
Integration of top management
Business model
Mandatory disclosure pursuant to section 289 c - e HGB
NFS-INDEX
Employee matters
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
341
Other Information
Social matters
Respect for human rights
Combatting corruption and bribery
7 Employer Attractiveness and Employee Development
7 Compliance and Human Rights
About this Report
Risk and Opportunity Management
7 Environmental Analysis and Megatrends
7 Managing sustainability
7 Performance Indicators
7 Strategy Process
7 BMW Group Integrated Strategy
7 BMW Group Integrated Strategy
7 Business Model and Segments
BMW Group Report 2021
Operational expenditures that are taxonomy eligible
Capital expenditures that are taxonomy eligible
Revenues that are taxonomy eligible
EU Taxonomy Regulation*
Mandatory disclosure requirement according to Art. 8 of the
CO2 emissions
in g/km
(combined/weighted
combined) max/min
Electricity power
consumption
in kWh/100 km
(combined/weighted
combined) max/min
49-35
2.2-1.5
BMW 320e xDrive Touring
15.3 14.3
44-38
1.9 1.7
50-59
19.5-17.3
18.6 -16.7
1.9-1.4
BMW 320e Touring
14.8 - 14.2
41-35
1.8-1.5
52-61
18.1 -16.1
44-32
46-57
2.1 1.9
49-43
15.9-15.2
45-40
2.0-1.7
51-60
18.6-16.5
43-31
1.9 1.4
14.8-13.9
41-35
1.8 1.5
52-60
18.4-16.5
41-30
1.8 1.3
BMW 330e xDrive
BMW 330e
16.4-16.0
41-30
47-39
1.8 1.3
43
47-52
15.7-15.0
44-39
2.1 1.7
BMW 230e xDrive Active Tourer (preliminary figures)
BMW 225xe Active Tourer (model year 2021)
BMW X1 xDrive25e
2.1-1.9
BMW
combined) max/min
in kWh/100 km
(combined/weighted
Figures according to NEDC
Electricity power
consumption
CO2 emissions
in g/km
(combined weighted
combined) max/min
Fuel consumption
in l/100km
(combined weighted
combined) max/min
Electric range
(combined weighted
combined)
Figures according to WLTP
Model
48-43
1.7-1.5
39-35
1.9
51-53
15.2 -14.9
42-38
1.8-1.7
BMW 320e (automatic transmission)
BMW X2 xDrive25e
up to 90
20.0 17.9
30-22
1.4 1.1
13.5-13.5
14.3 13.8
41-41
1.8-1.8
69-80
15.0-14.4
13.7
15.9 14.8
ROLLS-ROYCE
Rolls-Royce Black Badge Ghost
%
Capital expenditure ratio (capital expenditure / revenues)
4,151
4,967
4,601
3,826
3,731
4.5
4,688
5,650
3,922
5,012
€ million
Capital expenditure (excluding capitalised development costs)
50,530
52,184
5,029
56,844
4.0
5.2
37,437
42,764
47,363
54,107
57,829
59,907
61,520
5.4
75,132
Equity
5.4
6.5
5.7
4.2
4.0
4.8
€ million
61,831
66,864
81,305
2019
2020
2021
BMW Group Ten-year Comparison
← = Q
Other Information
Remuneration Report
20181
Corporate Governance
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
345
5 Proposal by management.
For the timeframe including and prior to 2018, the share of the employees that are no longer reflected in reporting is about 7.5-8 %.
"Since the reporting year 2020, a new definition for workforce size has been applied ( Glossary). To enable better comparability, the value for 2019 was adjusted accordingly (2019 before adjustment: 133,778 employees).
Group Financial Statements
2017
2016
2015
86,193
97,959
110,343
121,671
121,964
73,542
137,404 124,202
84,736
90,630
134,851
81,807
143,354
86,173
€ million
€ million
Current assets
Non-current assets
BALANCE SHEET
2012
2013
2014
35,600
30,606
Equity ratio
Non-current provisions and liabilities
10,979
12,036
2,567
3,395
6,354
€ million
Free cash flow Automotive segment
13,537
9,039
16,009
Cash and cash equivalents at balance sheet date
CASH FLOW STATEMENT
131,835
138,377
154,803
172,174
188,535
€ million
7,880
6,122
7,688
126,016
98,901
120,726
99,647
118,909
103,569
€
DIVIDEND
Personnel cost per employee 4
Workforce at year-end 4
PERSONNEL
3,809
3,003
3,481
5,404
5,792
4,459
2,713
8,370
7,671
195,506
² Retail vehicle delivery data presented for 2020 and 2021 is not directly comparable to such data presented for previous years. For further information on retail vehicle delivery data, please see Comparison of Forecasts with Actual Outcomes.
3 Excluding Husqvarna, deliveries up to 2013: 59,776 units; production up to 2013: 59,426 units.
208,938
216,658
79,698
85,502
83,175
77,929
€ million
23.2
25.7
69,634
24.2
25.1
27.7
27.7
26.3
28.4
32.7
%
24.8
73,183
63,819
58,288
229,527
€ million
Balance sheet total
48,395
51,134
59,078
65,591
67,989
71,765
71,411
82,625
71,963
76,466
€ million
Current provisions and liabilities
52,834
51,643
228,034
129,932
100,760
1 The 2018 figures were adjusted due to the change in accounting policy in conjunction with the adoption of IFRS 16 (see Annual Report 2019, note 6 to the Group Financial Statements).
In addition, prior year figures were adjusted due to changes in the presentation of selected items that are of minor importance overall.
5,329
2,486,149 2,465,021
165,566 164,153
2,521,514 2,325,179 2,537,504
194,261 169,272 175,162
units
units
2012
2013
2014
2015
2,349,962 2,259,733 2,117,965 1,963,798 1,845,186
145,032 136,963 123,495 115,215 106,358
2016
20181
2019
2020
2021
INCOME STATEMENT
Business volume (based on balance sheet carrying amounts)
Contract portfolio
2017
FINANCIAL SERVICES
units 2,461,269 2,255,637 2,564,025 2,541,534
units 187,500 168,104 187,116 162,687
1,861,826
113,811
76,848
76,059
80,401
92,175
94,163
98,282
96,855
2,505,741 2,359,756 2,279,503 2,165,566 2,006,366
185,682 145,555 151,004 133,615 110,127
104,210
111,239
€ million
Revenues
5,380,785 5,114,906 4,718,970 4,359,572 4,130,002 3,846,364
124,719 123,394 111,191 96,390 84,347 80,974
5,973,682 5,708,032
142,834 133,147
contracts 5,859,890 5,981,928
139,530 133,093
€ million
98,990
Motorcycles 3
Automobiles
PRODUCTION VOLUME
14.8 14.1
149-142
48-44
6.5-6.2
2.1-1.9
16.9-14.9
* Figures are preliminary and rely on an outlook based on the WLTP type test procedure.
381-367
16.9-16.2
15.8
15.2
Rolls-Royce Dawn
16.3 -15.8
Rolls-Royce Wraith
377-368
16.5 16.1
Rolls-Royce Cullinan
359
15.8
369-357
359
348
16.0-15.9
Motorcycles 3
Automobiles 2
DELIVERIES
BMW GROUP TEN-YEAR COMPARISON
BMW Group Ten-year Comparison
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
344
372 - 367
16.3-16.1
365-363
Gross profit margin
Earnings before financial result
%
19.8
Effective tax rate
2,692
2,564
2,890
2,828
2,755
2,000
%
2,530
1,365
3,597
€ million
Income taxes
10.2
10.4
10.8
2,140
22.4
26.1
30.1
5,817
6,396
6,910
8,675
7,064
5,022
3,857
12,463
€ million
Net profit for the year
34.5
32.5
33.2
30.7
28.5
18.7
26.3
10.0
5,111
10.3
9.9
9,386
9,899
8,933
7,411
4,830
13,400
€ million
9,593
20.2
21.2
19.7
19.9
20.3
19.0
17.3
13.7
20.1
9,118
7,978
8,275
6.8
5.3
14.4
%
Return on sales (earnings before tax revenues)
7,803
7,893
8,707
9,224
9,665
10,675
9,627
7,118
5,222
16,060
€ million
Earnings before tax
10.9
124,729
99,575
€ million
Working hours/working times
W
7 www.bmw-motorrad.com
3 August 2022
Half-Year Report to 30 June 2022
3 November 2022
Quarterly Statement to 30 September 2022
2023
15 March 2023
BMW Group Report 2022
BMW Group Annual Conference. Media Day
Annual General Meeting
16 March 2023
BMW Group Annual Conference. Analyst and Investor Day
4 May 2023
Quarterly Statement to 31 March 2023
11 May 2023
Annual General Meeting
15 March 2023
11 May 2022
5 May 2022
3 August 2023
WWW.BMWGROUP.COM
351
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Quarterly Statement to 31 March 2022
Remuneration Report
Financial Calendar
FINANCIAL CALENDAR
2022
16 March 2022
BMW Group Annual Conference. Media Day
17 March 2022
BMW Group Annual Conference. Analyst and Investor Day
← = Q
Half-Year Report to 30 June 2023
Other Information
Quarterly Statement to 30 September 2023
Investor Relations information is available directly at:
7www.bmwgroup.com/ir
PUBLISHED BY
Bayerische Motoren Werke
Aktiengesellschaft
80788 Munich
Germany
Telephone +49 89 382-0
INVESTOR RELATIONS
presse@bmwgroup.com
Telephone +49 89 382-2 53 87
Fax
E-mail
ir@bmwgroup.com
7 www.bmw.com
www.mini.com
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3 November 2023
Information about the various BMW Group brands is
available at:
E-mail
+49 89 382-1 46 61
+49 89 382-2 44 18
352
7 www.bmwgroup.com
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Corporate Governance
Remuneration Report
Other Information
← = Q
Group Financial Statements
CONTACTS
Fax
BUSINESS AND FINANCE PRESS
Telephone +49 89 382-2 45 44
THE BMW GROUP ON THE INTERNET
Further information about the BMW Group is available
online at:
Contacts
+49 89 382-2 41 18
To Our Stakeholders
BMW Group Technology Office USA, Mountain View, USA
BMW Group Engineering and Emission Test Center, Oxnard, USA
BMW Group ConnectedDrive Lab China, Shanghai, China,
and BMW Group Designworks Studio Shanghai, China
18
BMW Group Engineering Japan, Tokyo, Japan
BMW Group Engineering USA, Woodcliff Lake, USA
BMW Group IT Technology Office, Greenville, USA
BMW Group IT Technology Office, Singapore
BMW Group IT DevOps Hub, Rosslyn, South Africa
BMW do Brasil, Araquari, Brazil
BMW Group Engineering China, Beijing, China
BMW Group Technology Office Tel Aviv, Tel Aviv, Israel
BMW Group R&D Center Seoul, Seoul, South Korea
37
BMW Group Designworks, Newbury Park, USA
BMW Group - Report 2021
BMW Group Technology Office, Shanghai, China
▲ Research and development network outside Europe
BMW Brilliance Automotive, China (joint venture - 3 plants)
Partner plant, Cairo, Egypt
Partner plant, Jakarta, Indonesia
Partner plant, Hosur, India
Partner plant, Chongqing, China
Partner plants outside Europe
☑
BMW Group plant Spartanburg, USA
BMW Group plant San Luis Potosí, Mexico
BMW Group plant Rosslyn, South Africa
BMW Group plant Araquari, Brazil
BMW Group plant Chennai, India
BMW Group plant Manaus, Brazil
BMW Group plant Rayong, Thailand
Combined Management Report
Overview of the BMW Group
■ Production outside Europe
Partner plant, Kulim, Malaysia
Group Financial Statements
13 Slovenia *
Remuneration Report
☐
20 Hungary*
19 Slovakia
18 Austria
■ Production in Europe
BMW Group plant Berlin
BMW Group plant Dingolfing
10
15
Sales locations only.
15 Portugal
7 UK
14 Spain
6 The Netherlands
5 Finland
Corporate Governance
12 Italy
11 Switzerland
3 Denmark
2 Norway
17 Poland
9 Belgium/Luxembourg
16 Czech Republic
8 Ireland
1 Germany
Financial Services
• Sales subsidiaries and
LOCATIONS IN EUROPE
← = Q
Other Information
4 Sweden
0.15
BMW Group - Report 2021
and development locations
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Overview of the BMW Group
To Our Stakeholders
21 Romania *
36
2 Including cooperation partners
17 Consumption and carbon emissions data
The BMW Group operates on a worldwide basis. The
BMW Group's largest automobile and motorcycle markets
are located in Europe, particularly in Germany and the
United Kingdom (UK) as well as in China and the USA.
Global overview
LOCATIONS
Financing dealership vehicle fleets serves to support the
dealership organisation and rounds off the segment's range
of services. Financial Services segment
Other Information
clude assisting customers to manage their fleets on a sus-
tainable and climate-friendly basis.
The BMW Group is a leading provider of financial services in
the automotive sector. It offers these services in more than
50 countries worldwide via companies and cooperation ar-
rangements with local financial service providers and im-
porters. The Financial Services segment's main line of busi-
ness comprises credit financing and the leasing of
BMW Group brand automobiles and motorcycles to retail
customers. Customers can also select from an attractive ar-
ray of insurance and banking products.
Financial Services segment
As in all other areas, the BMW Group focuses rigorously on
the premium segment with its Motorcycles segment and its
model range of motorcycles and scooters in the Sport, Tour,
Roadster, Heritage, Adventure and Urban Mobility catego-
ries. BMW Motorrad also offers a broad range of equipment
options to enhance riding safety and comfort as well as per-
sonalised configurations. The Motorcycles segment's sales
network is organised similarly to that of the Automotive seg-
ment. Currently, BMW motorcycles are sold by more than
1,200 dealerships and importers in over 90 countries world-
wide. Motorcycles segment
Motorcycles segment
Its comprehensive range of products enables the BMW Group
to meet the diverse expectations and needs of its customers
worldwide. The global sales network of the BMW Group's
automobile business currently comprises more than 3,500
BMW, 1,600 MINI and over 150 Rolls-Royce dealerships.
7 Automotive segment
Royce Motor Cars specialises in providing bespoke customer
specifications and offers the utmost in terms of quality and
service.
With a tradition stretching back well over a century, Rolls-
Royce is the ultimate marque in the ultra-luxury class. Rolls-
The MINI brand promises driving pleasure in the premium
compact segment and, alongside models powered by effi-
cient combustion engines, it also offers plug-in hybrid and
all-electric models. The all-electric MINI Cooper SE¹ was the
best-selling model in the MINI family in the year under
report.
covers several automobile classes, ranging from the pre-
mium compact class, the premium mid-size class and
through to the ultra-luxury class. Alongside its state-of-the-
art plug-in hybrids and vehicles powered by highly efficient
combustion engines, the BMW brand also includes all-elec-
tric models manufactured under the BMW i sub-brand, such
as the BMW iX and the BMW i4 launched in 2021, as well as
modern plug-in hybrid models and high-performance vehi-
cles belonging to the BMW M sub-brand.
← = Q
Other Information
Remuneration Report
Corporate Governance
Operating under the brand name Alphabet, the BMW Group's
international multi-brand fleet business provides financing
and comprehensive management services for corporate car
fleets in more than 20 countries.2 These services also in-
*Sales locations
← = Q
• Sales subsidiaries and
Countries with research
13
Production and assembly plants
31
Sales subsidiaries and Financial
Services locations worldwide
41
10
☐
☐
19 New Zealand
18 Australia
17 Indonesia *
13 Japan
LOCATIONS WORLDWIDE
12 South Korea
10 India
9 Russia
16 Singapore
15 Malaysia
14 Thailand
7 Argentina *
8 South Africa
5 United Arab Emirates
6 Brazil
4 Mexico
3 USA
2 Canada
1 Headquarters
Financial Services
11 China
22 Bulgaria *
Performance Indicators
20
BMW Group Report 2021
40
40
* 7 Consumption and carbon emissions data.
The BMW Group regards the strategy process as a continu-
ous task. The assumptions underpinning our strategies are
regularly reviewed, based on the findings from our analysis of
environmental and external factors. The Board of Manage-
ment sets the strategic direction for this process, regularly
addressing strategic issues for the BMW Group and assess-
ing the impact of external factors. The BMW Group's corpo-
rate strategy is the starting point for business departments to
systematically align their own strategy with the Company's
strategic goals and define the concrete measures that must
be implemented in order to achieve them. This process takes
place via a planning and management system with a built-in
feedback loop.
STRATEGY PROCESS
M&BX 524E
Concrete requirements and regulations for autonomous driv-
ing are likely to be in place in individual countries and re-
gions by 2025. The aim of all regulators is assumably to au-
thorise autonomous driving systems in the medium term
7 Products and mobility solutions.
Alongside digitalisation, development of automated/autono-
mous driving remains a key expectation for the future of mo-
bility. Due to the importance of this topic for the automotive
industry and the complexity of the technologies and exper-
tise involved, extensive funding is being channelled into de-
velopment in this area worldwide.
Automated/autonomous driving
In addition to the new possibilities digitalisation can offer
customers, further potential lies in networking mobile value
creation. To create a virtual platform and meet future chal-
lenges, the BMW Group founded the Catena-X Automotive
Network, together with other manufacturers, system suppli-
ers and technology partners Production, purchasing and supplier
network.
In addition to the topics already referred to, the combination
of digitalisation and connectivity is another important mega-
trend for the BMW Group. The modern vehicle is already one
of the most complex and software-intensive items owned by
consumers. Vehicles are increasingly viewed as digital ob-
jects, with corresponding functions expected. Customers de-
mand products that are seamlessly and perfectly integrated
into their familiar living environment. It is therefore safe to
assume that digital business models will generate a growing
percentage of added value in the future. China, in particular,
is setting new standards for digitalisation. Customer desires
are increasingly influenced by the world of consumer elec-
tronics and are an important factor in purchasing decisions
7 Innovation and customer orientation.
Digitalisation and connectivity
In the transport sector, a swift transition to electromobility is
an important prerequisite on the road to climate neutrality.
By 2030, the BMW Group will be capable of offering a com-
plete array of electric vehicles in terms of both product diver-
sity and range. Growing demand is additionally strength-
ened by the benefits of lower running costs and framework
conditions such as government subsidies Electromobility.
Electromobility and drive technologies
The US government has also proposed more ambitious cli-
mate-protection goals that aim to halve greenhouse gas
emissions by 2030 from 2005 levels. China is relying on fleet
limits and a growing percentage of zero-emissions vehicles.
The European Union (EU) sees itself as a global leader in
achieving these climate goals. Within the EU, the Sustain-
able Finance Framework aims to classify a company's busi-
ness activities according to sustainability criteria.
We see the consequences of climate change as a major
challenge for the future. As governments around the world
work to translate the goals of the Paris Climate Agreement
into national laws, investors are increasingly evaluating
companies and their business models according to ESG cri-
teria BMW Group and capital market.
Climate change and CO₂ reduction
Around the world, the conditions for individual mobility in
cities and their surrounding suburban areas are developing
very differently in some cases and depend above all on the
location of these conurbations, their population density
and the focus of emissions policy in the respective urban
regions. Mobility concepts and services.
especially in urban areas, but will mainly be used as a sup-
plementary option 7 Mobility concepts and services.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
BMW Group Integrated Strategy
To Our Stakeholders
Combined Management Report
BMW Group Integrated Strategy
Group Financial Statements
Corporate Governance
Direction is the second strategic element, after position. The
BMW Group offers exciting products for current and future
generations and secures its independence as a company by
maintaining a high level of profitability. The BMW Group is
shaping the future of sustainable mobility with its passion
and strong capacity for innovation. Thanks to its exciting
products, the Company is able to achieve maximum custom-
er satisfaction and brand strength, and thus grow its market
share.
What drives the BMW Group?
-
Direction
Sustainability is built into individual market strategies
across our global sales organisation. Centralised measures
are combined with local activities in the markets to imple-
ment a holistic programme. Best practices in the fields of
environmental protection, social sustainability, corporate
citizenship and governance are also shared within an es-
tablished international sustainability network.
solutions.
developed. Plug-in hybrid (PHEV) concepts also provide a
good alternative in these circumstances. Products and mobility
Direction
Collaboration
Strategic
approach
Position
To leverage the potential for lowering CO₂ emissions during
the use phase, in particular, the BMW Group is actively
working on numerous projects and initiatives to improve the
framework conditions for electromobility. However, while
the ambitious goals of the Paris Climate Agreement are de-
signed to tackle climate change in the transport sector, they
I can only be achieved through a combination of all modern
drive technologies in addition to electromobility that are
closely aligned with customer needs and different mobility
requirements around the world. Modern combustion-en-
gine technology continues to make a meaningful contribu-
tion to the effective reduction of CO2 emissions worldwide.
For this reason, the BMW Group offers those customers
who choose not to buy an electrified vehicle - because of
their mobility needs or because the prerequisites are not
met vehicles with modern, efficient internal combustion
engines that rely on technology that is continuously further
Performance indicators.
To Our Stakeholders
Control parameters such as life cycle CO₂ emissions and sec-
ondary raw material quotas are already important perfor-
mance indicators during the development phase of our vehi-
cle projects
2. In production, a reduction of 80 % for every vehicle
produced
1. In the use phase of the vehicle, an average reduction
of more than 50 % for every kilometre driven
―
The BMW Group is committed to first-class individual mobil-
ity and contributes to sustainable development. It aims to
find the right balance between business, the environment
and society. The BMW Group combines driving pleasure and
responsibility without compromise and, together with its
partners, leads the industry in environmental, social and in-
tegrity standards. The Company is committed to the Paris
Climate Agreement and providing a verifiable track record of
continuous improvement. To achieve this and reduce the im-
pact on the environment as a whole, the BMW Group is pro-
moting as well the reduction of CO2 emissions throughout
the whole product life cycle as the principles of the circular
economy from the supply chain, to production, the use
phase and the recycling of its products. For this reason,
BMW has also laid out ambitious targets to reduce CO2 emis-
sions by 2030 (reference year 2019), understood as follows:
What does the BMW Group stand for?
Position -
The BMW Group strategy comprises four elements: position, di-
rection, strategic approach and collaboration. These formulate
the various aspects of our aspirations and are combined in a
"strategy arrow" that serves as a symbol for our forward-looking
approach. This strategic framework provides a fixed point of ref-
erence for all decisions of Company-wide significance.
The BMW Group's corporate strategy, referred to as the
"BMW Group strategy", forms the core of our integrated ap-
proach. It defines the framework for decision-making and lays
the foundation for the Company to maintain a consistent focus
on profitability, growth and sustainability, even in an increas-
ingly dynamic environment.
Corporate strategy
The strategy is integrated into annual longer-range corpor-
ate planning, with implementation monitored by a target
system that is comprised of aspects finance, customers, pro-
cesses, learning and development. Performance indicators.
← = Q
Other Information
Remuneration Report
3. In the supply chain, a reduction of more than 20 %
Measurable science-based targets, initially up until 2030,
have been firmly established across the Company, laying the
foundation for the reduction of our CO2 emissions. We have
joined the Science-Based Targets Initiative (SBTI) for this
purpose. This will enable us to guarantee transparency and
comparability in the validation and measurement of our tar-
gets and, at the same time, ensure they are in line with the
latest scientific findings CO₂ and emissions.
23 Greece
BMW Group Report 2021
Individual mobility appears likely to remain a fundamental
human need for the foreseeable future, although vehicle
ownership depends to a large extent on income, household
size and location (urban/suburban). Mobility services, so-
called on-demand mobility (ODM), will remain relevant,
To Our Stakeholders
BMW Group Report 2021
38
CIRCULAR
Rolls-Royce Motor Cars Ltd., Goodwood, UK
BMW France, S. A. S., Montigny, France
Critical TechWorks S.A., Porto, Portugal
BMW Group Diesel Competence Centre, Steyr, Austria
Technology Center, Landshut, Germany
BMW Group Lightweight Construction and
BMW Group Designworks, Munich, Germany
BMW Group Autonomous Driving Campus,
Unterschleißheim, Germany
BMW Car IT, Munich, Germany
BMW Group Research and Innovation Centre (FIZ),
Munich, Germany
▲ Research and development network in Europe
Partner plant, Kaliningrad, Russia
Partner plant, Graz, Austria
Partner plant, Born, the Netherlands
Partner plants in Europe
Rolls-Royce Manufacturing Plant, Goodwood, UK
BMW Group plant Swindon, UK
BMW Group plant Munich
BMW Group plant Regensburg
BMW Group plant Wackersdorf
BMW Group plant Steyr, Austria
BMW Group plant Hams Hall, UK
BMW Group plant Oxford, UK
BMW Group plant Leipzig
BMW Group plant Landshut
BMW Group plant Eisenach
23
☐
Combined Management Report
BMW Group Integrated Strategy
Group Financial Statements
Corporate Governance
Remuneration Report
Mobility patterns
The most important megatrends with long-term implications
for the BMW Group's business model are currently climate
change and the reduction of carbon dioxide (CO2) emissions,
electromobility, digitalisation and connectivity - including
automated and autonomous driving, as well as mobility pat-
terns within society. GRI 102-46
A company's success depends to a large extent on its ability
to recognise changes in its environment early on, plan for
different scenarios, effectively manage risks and take advan-
tage of opportunities that may arise from such changes
(Risks and opportunities.) To this end, we continuously monitor
the business environment in our key regions, using available
data to analyse in detail the trends and developments that
could affect our business in the future. Regular Dialogue with
stakeholders within the framework of the BMW Group Xchange
formats rounds out the picture from the analysis of external
and environmental factors.
AND MEGATRENDS
ENVIRONMENTAL ANALYSIS
of the automotive industry and essentially comprises the in-
tegrated and continuous strategy process, the target system
and Corporate management.
The BMW Group strategy is developed from an analysis of
the global megatrends that are crucial to the transformation
7 Compliance and Human rights.
The BMW Group's integrated strategy is based on funda-
mental elements, like the integrity of our actions.
We constantly refine our corporate strategy and align our
strategic targets with these external factors and their dy-
namic rate of change as important input parameters.
Diverging social expectations in the face of climate change
Megatrends such as electrification and connectivity
A capital market focused on profitability and growth
Sustainability
Global competition
39
The BMW Group operates at the intersection of challenging,
increasingly complex and differentiated conditions around
the world. This includes:
Environmental Analysis and Megatrends
BMW GROUP INTEGRATED STRATEGY
ELECTRIC
Compliance and Human Rights
48
44 Performance Management
Group Financial Statements
43
Strategy Process
39
38
← = Q
Other Information
BMW GROUP INTEGRATED STRATEGY
Combined Management Report
Overview of the BMW Group
10 France
BMW Group Report 2021
82.00
High
74.64
62.10
55.05
55.20
73.30
Year-end closing price
Stock exchange price in €1
55,605
56,127
56,867
57,689
57.60
59,404
PREFERRED STOCK
77.71
69.86
58.70
37.66
68.34
90.83
96.26
77.75
76.68
95.89
86.83
70.70
Number of shares in 1,000
73.14
67.85
78.89
18.79
Earnings per share of preferred stock"
13.07
10.605
7.47
5.73
18.77
Earnings per share of common stock³
4.02
3.52
2.50
1.92
5.822
85.50
Preferred stock
3.50
2.50
1.90
5.802
Common stock
Dividend
KEY DATA PER SHARE IN €
67.29
60.70
47.54
32.50
51.60
Low
4.00
5.75
72.23
High
Short-term debt
A
A2
and Poor's
Moody's
Standard
Company rating
Long-term debt
With its above-average ratings, the BMW Group enjoys good
access to international capital markets and is thus able to
benefit from highly attractive refinancing conditions.
despite the challenging economic environment. Moreover,
both agencies explicitly highlight the fact that BMW AG con-
tinues to implement its policy of decarbonisation, thereby
enabling it to undercut the targets set by the EU for 2020.
tations that the BMW Group will continue performing well, SUSTAINABILITY RATINGS
GOOD PLACEMENT IN
In addition to the general recovery in the automotive indus-
try, the upgraded outlook reflects the rating agencies' expec-
In this context, Moody's raised its outlook for BMW AG from
"negative" to "stable" on 26 March 2021. At the same time,
the long-term rating of A2 and the short-term rating of P-1
were both confirmed. On 5 August 2021, Standard & Poor's
(S&P) adjusted its outlook for BMW AG from "negative" to
"stable" and confirmed its long-term and short-term ratings
of A and A-1 respectively.
P-1
The persisting impact of the coronavirus pandemic and the
challenges posed by the ongoing transformation of the auto-
motive industry caused rating agencies to reassess their rat-
ings for the automotive sector in 2020, resulting in the ratings
and outlooks of numerous companies being downgraded.
However, in light of the generally improved situation, upward
adjustments were made over the course of 2021.
RATINGS REMAIN AT
HIGH LEVEL
BMW GROUP AND CAPITAL MARKETS
BMW Group and Capital Markets
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
31
To Our Stakeholders
The BMW Group continues to enjoy the best ratings on the
capital market of Europe's automobile manufacturers.
88.49
A-1
stable
601,995
601,995
601,995
601,995
601,995
2017
2018
2019
2020
2021
Low
COMMON STOCK
The Board of Management and the Supervisory Board will
propose to the Annual General Meeting that the unappropri-
ated profit of BMW AG amounting to € 3,827 million (2020:
€ 1,253 million) be used to pay a dividend of € 5.80 per
share of common stock (2020: € 1.90) and a dividend of
€ 5.82 per share of preferred stock (2020: € 1.92). The pay-
out ratio for 2021 therefore stands at 30.7% (2020: 32.5%).
Outlook
BMW AG STOCK
BMW Group and Capital Markets
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
32
32
The BMW Group has maintained a good ranking in presti-
gious sustainability ratings in 2021. For instance, the
BMW Group is represented in the MSCI ESG, Sustainalytics
and ISS ESG indexes and is well positioned in its sector in all
three. Due to its transparent reporting of carbon emissions,
the BMW Group is again in the top grouping (A List) of the
CDP rating list.
stable
DIVIDEND TO RISE
SIGNIFICANTLY
7.49
Number of shares in 1,000
Stock exchange price in €1
Year-end closing price
13.09
121 EU Taxonomy
117 Comments on the Financial Statements of BMW AG
109 Course of Business
107 Value Added Statement
105 Net Assets Position of the BMW Group
103 Refinancing
Purchasing and Supplier Network
74
Circular Economy, Resource Efficiency and Renewable Energy
70
Production Network
67
Production, Purchasing and Supplier Network
124 Outlook, Risk and Opportunity Management
67
65
Mobility Concepts and Services
62
Electric Mobility
59
Carbon Emissions and Pollutants
56
Innovation and Customer Orientation
51
101 Financial Position of the BMW Group
Products and Mobility Solutions
51
Earnings Performance of the BMW Group
Product Safety and Data Protection
98
124 Outlook
144 Disclosures Relevant for Takeovers and Explanatory Comments
35
10.625
M.NW 5143
M.ST 9056
27 Consumption and carbon emissions data
1 The change took place outside of the financial period under report.
The BMW Group manufactures BMW, MINI and Rolls-Royce
brand vehicles. The BMW brand caters to a broad variety of
customer requirements. Its wide-ranging model portfolio
Automotive segment
The BMW Group develops, manufactures and sells innova-
tive premium automobiles and motorcycles on a worldwide
basis. It also offers a broad range of financial and mobility
services. The Group is structured into operating segments,
namely the Automotive, the Motorcycles and the Financial
Services segments.
Business model
AND SEGMENTS
BUSINESS MODEL
Bayerische Motoren Werke Aktiengesellschaft (BMW AG),
based in Munich, Germany, is the parent company of the
BMW Group, which comprises BMW AG itself and all sub-
sidiaries over which BMW AG has either direct or indirect
control. List of Investments. BMW AG is also responsible for
managing performance throughout the Group, which is
sub-divided into the Automotive, Motorcycles and Financial Services
operating segments Presentation of segments. The Group's Other
Entities segment primarily comprises holding companies
and Group financing companies. The structure of the
BMW Group changed significantly at the beginning of the
financial year 2022 due to the BMW Group's majority ac-
quisition of the joint venture BMW Brilliance Automotive
Ltd. (BBA). Further information on the consolidation of
BMW Brilliance Automotive is provided in the 7 Notes to the
Group Financial Statements.
129 Risk and Opportunity Management
The BMW Group successfully manufactures automobiles
and motorcycles for the premium and luxury segments on a
global basis. With BMW, MINI and Rolls-Royce, the
BMW Group owns three of the best-known brands in the au-
tomotive industry worldwide. It also occupies a strong mar-
ket position in the premium motorcycles segment. At 31 De-
cember 2021, the BMW Group employed a workforce of
118,909 people worldwide.
OVERVIEW OF THE BMW GROUP
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Overview of the BMW Group
To Our Stakeholders
BMW Group Report 2021
34
REPORT
MANAGEMENT
COMBINED
ORGANISATIONAL
STRUCTURE
Compliance and Human Rights
143 Internal Control System
Comparison of Forecasts with Actual Outcomes
Overview of the BMW Group
34
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
33
5 The 2018 figures were adjusted due to the change in accounting policy in conjunction with the adoption of IFRS 16 (see Annual Report 2019, Note 6 to the Group Financial Statements).
3 Weighted average number of shares for the year.
80
2 Proposed by management.
82.95
88.265
90.92
93.26
113.60
Equity
6.78
4.12
3.90
5.15
48
9.61
Free cash flow Automotive segment
1 Xetra closing prices.
Employees and Society
4 Stock weighted according to dividend entitlements.
Organisational Structure
96
Performance Management
44
34
Overall Assessment by Management of the Financial Year
95
Performance Indicators
43
General and Sector-Specific Environment
91
39
Financial Performance
91
Environmental Analysis and Megatrends
38
Strategy Process
Corporate Citizenship
89
BMW Group Integrated Strategy
38
80 Employer Attractiveness and Employee Development
Diversity
86
Locations
34
35
Health and Performance
83
Business Model and Segments
To Our Stakeholders
46
BMW Group Report 2021
46
Profit before
financial result
Combined Management Report
BMW Group Integrated Strategy
Other Information
Corporate Governance
Remuneration Report
The Motorcycles segment is largely managed according to
the same logic applied to the Automotive segment. The prin-
cipal key performance indicator is the return on capital em-
ployed (ROCE). The new definition of capital employed
adopted by the Automotive segment will also be applied by
the Motorcycles segment, beginning with the 2022 reporting
period. As in the Automotive segment, the new strategic
ROCE target set for the Motorcycles segment is 18%.
← = Q
Motorcycles segment
12.7
ROCE Motorcycles
Group Financial Statements
59.9
Return on capital employed
16,486
RETURN ON CAPITAL EMPLOYED (AUTOMOTIVE SEGMENT)
Automotive
Average capital employed
Furthermore, the Automotive segment manages its compli-
ance with fleet carbon emissions requirements in regulated
markets. In this context, it also reports on the share of elec-
trified vehicles in total deliveries performance indicators. As
compliance with regulatory requirements is a significant fac-
tor in the BMW Group's success, business decisions relating
to vehicle projects also take targets for fleet carbon emis-
sions into account. Managing sustainability
Profit before financial result
in € million
Average capital employed
in € million
in %
2021
2020
2021
2020
2021
2020
9,870
2,162
17,026
The main value drivers include the number of deliveries as
well as the operating return on sales (corresponding to the
EBIT margin: segment profit/loss before financial result as a
percentage of segment revenues) as the key performance
indicator for segment profitability.
in %
The performance of the Financial Services segment is meas-
ured on the basis of the return on equity (ROE), a key perfor-
mance indicator commonly used in the banking sector. With-
in the BMW Group, RoE is defined as segment profit/loss
before tax, divided by the average amount of equity capital
in the Financial Services segment. The target is a return on
equity of at least 14%.
2020
15.0
RETURN ON EQUITY (FINANCIAL SERVICES SEGMENT)
Profit before tax
in € million
Average equity capital
in € million
2021
35.9
Return on equity
2020
2021
2020
2020
mance. These value drivers are the number of vehicle deliv-
eries and the operating return on sales (EBIT margin: seg-
ment profit before financial result as a percentage of segment
revenues) as the key performance indicator for segment
profitability.
2021
2021
687
632
2020
Profit before tax
RoE
Financial Services
Average equity capital
RETURN ON CAPITAL EMPLOYED (MOTORCYCLES SEGMENT)
Profit before financial result
in € million
Average capital employed
in € million
Return on capital employed
in %
Motorcycles
2021
227
2020
103
2021
Financial Services segment
CIVILIZATIONS
Profit before financial result as a percentage of segment
revenues (EBIT margin)
EQUALITY
Combined Management Report
BMW Group Integrated Strategy
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
To Our Stakeholders
PERFORMANCE
MANAGEMENT
The BMW Group's performance management system is
based on a multi layered structure. Operational performance
BMW GROUP
-
VALUE DRIVERS
is managed primarily at segment level. In order to manage
long-term corporate performance and assess strategic is-
sues, additional key performance figures are taken into ac-
count within the management system at Group level. In this
context, the value added serves as one of several indicators
to measure the contribution made to enterprise value during
the financial year. This aspiration to add value is measured
at both Group and segment level by means of the key finan-
cial and non-financial performance indicators (value drivers).
The link between value added and the relevant value drivers
is presented in a simplified form below.
Managing sustainability
The BMW Group's performance management system fol-
lows a value-based approach that focuses on profitability,
consistent growth, value enhancement for capital providers,
sustainability, climate protection and job security. Capital is
considered to be employed profitably when the amount of
profit generated on a sustained basis exceeds the cost of
equity and debt capital. This strategy also secures the de-
sired degree of corporate autonomy in the long term.
BMW Group Report 2021
44
44
The following summarises the strategic targets and key per-
formance indicators defined in DRS 20, which also form the
basis for Performance Management. GRI-Index: 102-19
Financial Services
Group
Group profit before tax (Group EBT)
Number of employees at the end of the year
Share of women in management positions
Automotive segment
Profit before financial result as a percentage of segment
revenues (EBIT margin)
Return on capital employed (ROCE) in %
Deliveries (in units)
Share of electrified cars in total deliveries (in %)
CO2 emissions EU new vehicle fleet (in g CO2/km)
CO₂ emissions per vehicle produced (in tons)
Motorcycles segment
-
Return on capital employed (ROCE) in %
Deliveries (in units)
Financial Services segment
Return on equity (ROE) in %
* 7 Consumption and carbon emissions data
M.VE 291E
The BMW Group's long-term corporate strategies are deter-
mined by the Board of Management. Responsibility for im-
plementing the Group's sustainability goals therefore lies
UN ALLIANCE OF
Profit
Value added
← = Q
Managing operational performance at segment level
At segment level, operational performance is managed us-
ing an aggregated approach based on returns on capital.
Depending on the business model, the segments are meas-
ured on the basis of return on total capital or return on equity.
Return on capital employed (ROCE) is used for the Automo-
tive and Motorcycles segments and return on equity (ROE)
for the Financial Services segment. These indicators com-
bine a wide range of relevant economic information, such as
profitability (return on sales) and capital efficiency (capital
turnover) to measure segment performance and the devel-
opment of enterprise value.
Automotive segment
The most comprehensive key performance indicator used for
the Automotive segment is RoCE, which is measured on the
basis of segment profit/loss before financial result and the
average capital employed in the segment. It provides infor-
mation on the profitability of capital employed and business
operations. Value driver analyses are used to interpret the
causes of a change in RoCE and derive suitable measures to
influence its development.
Up to and including the reporting year 2021, capital em-
ployed has been defined as the sum of all current and
non-current operational assets less liabilities that were
available to the operational business and generally did not
incur interest (e.g. trade payables and other provisions).
With effect from the reporting year 2022, a simplified defi-
nition of capital employed will be applied to make the calcu-
lation of RoCE more comprehensible and transparent. More-
over, the capital employed figures reflect the focus of the
operating segment management. In future, capital employed
will be calculated as the sum of intangible assets, property,
plant and equipment and net working capital, the latter com-
prising inventories and trade receivables less trade pay-
ables. The new definition results in a higher level of capital
Other Information
employed than previously reported. We also expect the
amount of capital employed to increase in light of the acqui-
sition of further shares in BMW Brilliance Automotive Ltd.
and the resulting full consolidation of that entity in the finan-
cial year 2022, whereby the increase will arise primarily due
to the capitalisation of reacquired rights in conjunction with
the purchase price allocation. The RoCE will be impacted
temporarily by the higher capital base as well as the related
amortisation expense expected to be recorded.
ROCE Automotive
Profit before
financial result
Average capital employed
Due to the special significance of ROCE for the BMW Group,
the Automotive segment is also managed on the basis of a
number of additional key performance indicators that have a
significant impact on RoCE and hence on segment perfor-
DUNAOC
GENDER
The new strategic target for RoCE is 18% (target under the
previous definition: 40%). In substance, the new target is
even more ambitious than that previously used to measure
the return on capital employed. Value is enhanced for
BMW AG shareholders when the RoCE exceeds the cost of
capital.
Remuneration Report
Corporate Governance
Group Financial Statements
Return on capital
(ROCE or RoE)
Capital turnover
Capital employed
Cost of capital
Average weighted
cost of capital rate
Expenses
Revenues
with the full Board. All topics submitted to the Board of Man-
agement for decision-making must also be evaluated from
the point of view of sustainability, thereby ensuring that sus-
tainability issues are systematically integrated in deci-
sion-making processes.
As part of the procedures for managing sustainability on an
integrated basis at corporate level, a Group target system
has been created, which has been implemented for each of
the Board members' areas of responsibility. The BMW Group
has set itself the target of decarbonising its vehicle fleet by
an average of 40% overall over the entire life cycle by 2030,
based on the reference year 2019. In this context, specific
targets have been set for the vehicle's use phase, production
and the supply chain (7 Position) including emissions reduc-
tion targets across the entire value chain (carbon emissions and
pollutants). Additionally, specific carbon targets have been set
for each vehicle project.
An integrated approach to target management ensures that
the BMW Group's vehicle projects make a positive contribu-
tion towards achieving the sustainability targets that have
been set. By 2030, the BMW Group intends to drastically
broaden the scope of recycling, while further increasing the
proportion of secondary raw materials used to manufacture
its automobiles. With this point in mind, the BMW Group es-
tablished the so-called "Secondary First" approach during
the year under report. Non-financial performance indicators
such as carbon emissions and secondary raw materials quo-
tas are therefore key performance indicators for all new vehi-
cle projects. The overall result is a cohesive management
model across all aspects of the business. 7 GRI-Index: 102-19
45
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
BMW Group Integrated Strategy
Return on sales
3,753
50
16,586
The Supply Chain Due Diligence Law will take effect on
1 January 2023 in Germany; the adjustments it requires for
the human rights compliance programme have been a key
focus for Group Compliance during the reporting period. It
should be noted that the Board of Management decided in
December 2021 to appoint a Human Rights Officer and
assign this role to the head of Group Compliance. Concen-
trating relevant expertise in this new function will also
contribute to the strategic alignment of the Company in the
social dimension of sustainability. Other priorities arose in
49
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
BMW Group Integrated Strategy
Group Financial Statements
DETECT
Corporate Governance
Other Information
← = Q
the context of export controls from heightened trade rela-
tions between the US and China and in connection with
efforts to prevent money laundering, due in part to the in-
crease in legislative initiatives to tighten multinational
anti-money-laundering requirements.
A further priority was developing and implementing more ex-
tensive preventive measures in response to the antitrust
proceedings brought by the European Commission and con-
cluded in July 2021, concerning restriction of competition in
innovation in certain emissions control systems1.
Note 10 to the Group Financial Statements GRI-Index: 205-3
Increasingly strict national legislation to protect personal
data, and the higher risks associated with this, shaped com-
pliance measures regarding data privacy.
Remuneration Report
laundering
Anti-money-
control
RESPOND
Data
protection
Human
rights
PREVENT
Technical
compliance
Corruption
prevention
Fraud
prevention
Antitrust
compliance
Export
In response to the rapid pace of transformation in the auto-
motive industry, activities in the field of technical compliance
were also significantly expanded during the period under
report.
THREE-STAGE APPROACH TO COMPLIANCE
MANAGEMENT SYSTEM AND COMPLIANCE TOPICS
Company-wide compliance network
Specialist departments are supported in their work by the
central Group Compliance function, as well as a Group-wide
network of business unit and division compliance functions,
supplemented by around 80 local Compliance Officers
(heads of local compliance functions) at BMW AG's inter-
national subsidiaries. Local Compliance Officers are tasked
with implementing the CMS and compliance programmes for
Other Information
← = Q
law. So-called Compliance Spot Checks were also carried
out in 2021, with a focus on possible corruption risks. Cor-
porate Audit also conducts audits focused on compliance
requirements.
All control checks are geared towards reducing compliance
risks for the BMW Group. Any infringements are immediately
remedied, with an emphasis on minimising the risk of repeat
offenses and strengthening the understanding of compli-
ance within the Company. Where incidences of non-compli-
ance can be traced to an individual, such persons will be
appropriately sanctioned, in accordance with the processes
defined for this purpose.
Regular compliance reporting to the Board of Management and
Supervisory Board
The Board of Management and Supervisory Board of
BMW AG, the Audit Committee and other executive commit-
tees are informed on a regular basis and, if necessary, im-
mediately by the Chief Compliance Officer. In 2021, the con-
tent reported to committees was focused and the frequency
of reports increased – for example, at least twice a year for
the Board of Management.
Remuneration Report
-
Internationally recognised guidelines for environmental and
social compliance set the benchmark for the BMW Group's
entire value chain. This applies, in particular, to the Guide-
lines for Multinational Companies issued by the Organisa-
tion for Economic Cooperation and Development (OECD),
the UN Guiding Principles on Business and Human Rights,
the Ten Principles of the UN Global Compact, the content of
the ICC Business Charter for Sustainable Development, and
the United Nations Environment Programme's (UNEP) Dec-
laration on Cleaner Production. The BMW Group concen-
trates on topics and action areas where it can exert its influ-
ence as a company. With the participation of employee
representatives, these (supra) national requirements were
incorporated into internal company rules and principles
through the Joint Declaration on Human Rights and Working Conditions in
the BMW Group of 2005 (updated in 2010), clarified in the
7 BMW Group Code on Human Rights and Working Conditions of 2018 and
integrated with the human rights compliance programme.
In addition to the Company's international purchasing terms
and conditions, BMW Group dealer and importer contracts
include requirements relating to compliance and human
rights. Human rights issues also play an important role in
the Company's choice of locations and major investment
decisions. 1] GRI-Index: 412-3
Compliance management in the Financial Services
segment
The financial services business entails specific risks, due to
the nature of its products and processes. The focus of com-
pliance management is therefore anti-money-laundering,
compliance with financial sanctions, information and privacy
protection, fraud prevention, legislative and regulatory moni-
toring, consumer protection and implementing the require-
ments of the Financial Supervisory Authorities. To manage
risk in these areas, the Financial Services segment has
established its own Compliance and Governance depart-
ment, which works closely with the central Group Compli-
ance function as a decentralised unit. Based on an annual
trend analysis it identifies the possible need for adjustments
and defines resulting measures. Implementation by the
BMW Group's financial services companies worldwide is
continuously reviewed and reported to the management of
the Financial Services segment on a quarterly basis.
In the BMW Group's Financial Services segment, compli-
ance is incorporated into the target management process.
Integration of specific targets into strategic steering under-
lines the importance of this topic and helps to monitor the
implementation. A management system also supports the
process of identifying risks arising from non-compliance with
internal and external regulations at an early stage.
Once approved by the Board of Management and Super-
visory Board, the target figures in the strategic target system
form the planning basis for the current reporting year and the
target agreements for BMW Group managers. Remuneration
report GRI-Index: 102-35. Companies subject to the provisions of
German Accounting Standard No. 20 (DRS 20) must define
the Company's most effective performance indicators for
corporate management during the external reporting period
(key performance indicators).
[Global implementation of labour standards and human
rights
Corporate Governance
Group Financial Statements
Combined Management Report
BMW Group Integrated Strategy
relevant topics within their area of responsibility. Business
unit and division compliance functions also perform the task
of identifying and implementing specific compliance meas-
ures in their area of activity.
Expanded training activities
The BMW Group continuously refines the Group Compliance
training opportunities for specific target groups. For exam-
ple, during the year under review, we redesigned our Group-
wide mandatory Compliance Essentials online training to
create a user-oriented approach with focused content and a
high level of interactivity. This training formed part of the
mandatory training programme and included human rights
topics in the year under report. > GRI-Index: 412-2
In addition to imparting knowledge, online and classroom
training options, including practical case studies, play an im-
portant part in strengthening the compliance culture and un-
derstanding of compliant behaviour at the Company. Online
training must be completed every two years by relevant tar-
get groups. The training modules include exercises and test
questions relating to the BMW Group Legal Compliance
Code and corruption prevention, as well as other topics. So
far, more than 69,000 employees worldwide have com-
pleted the Compliance Essentials training, and over 36,000
employees completed online antitrust compliance training.
Department-specific training modules supplement the ex-
tensive options - for instance, in the areas of antitrust law or
human rights. GRI-Index: 205-1
Digitalisation supports compliance
BMW Group employees have used IT-based systems for
swift and efficient documentation, assessment and approval
of compliance-relevant matters for years. Examples include
IT-supported processes to monitor money laundering, sanc-
tion lists and exchange activities with competitors as well as
to conduct background checks on the reliability of business
partners and verify, approve and document the legal admis-
sibility of benefits in kind. Measures are implemented to
avoid compliance risks on the basis of this evaluation.
Reporting system for detecting possible non-compliance with the
law and compliance controls
Any employee with questions or concerns relating to compli-
ance can discuss these matters with their managers and
with the relevant departments within the BMW Group: spe-
cifically, with Group Compliance, Legal Affairs and Corporate
Audit. The BMW Group Compliance Contact serves as a fur-
ther point of contact and provides non-employees with a
process for reporting compliance concerns. Our employees
worldwide can also submit information relating to possible
infringements of the law at the Company in several lan-
guages via the BMW Group SpeakUP Line. In 2021, an
ombudsperson for suppliers was dedicated. Verification of
effectiveness
The BMW Group protects information providers in two ways.
If they prefer, individuals may provide information without
disclosing their identity. Policy also stipulates that no one
providing information should face retaliatory action. All com-
pliance-related queries and concerns are documented and
processed using an electronic Case Management System. If
necessary, Corporate Audit, Corporate Security, the legal de-
partments or the Works Council may be called upon to assist
in processing the case. GRI-Index: 102-34
CMS monitoring/controls
Observance and implementation of compliance regulations
and processes are subject to regular audits. The BMW Group
CMS provides differentiated monitoring levels for this pur-
pose. Compliance Officers are those primarily responsible
for performing direct checks in their area of responsibility.
Further measures integrated into business processes to help
reduce risk generally form part of the ▾ Internal Control System.
The central Group Compliance function refined its audit ap-
proach in 2021, with the aim of increasing audit frequency by
introducing risk-based compliance audits without cause.
These compliance audits are currently focused on antitrust
50
BMW Group Report 2021
To Our Stakeholders
Business departments at the BMW Group are responsible
for lawful conduct during the performance of their assigned
tasks. This means they are also responsible for identifying
and evaluating any compliance risks that arise in the course
of their daily business. Monitoring and reducing these risks
also falls under their scope of duties. More than 230 man-
agers group-wide perform these tasks. These Compliance
Officers form part of the Compliance Organisation.
1,725
Further development of the CMS is also taking place against
the backdrop of external factors, such as global legal devel-
opments and the evolution of compliance at other compa-
nies. To this end, the BMW Group is involved in various asso-
ciations and interest groups and has been an active
corporate member of the German Institute for Compliance
(DICO) for many years, at the Board level and through its
leadership of the working group "Human Rights/CSR".
Further development of the CMS
in %
Automotive
=
(cost of capital rate x
capital employed)
Motorcycles
Financial Services
earnings amount -
cost of capital
earnings amount -
VALUE ADDED GROUP
BMW Group
Earnings amount Cost of capital (equity + debt capital)
2021
2020
12.0
12.0
in € million
=
Value added
Group
In order to determine the internal rate of return, risk-adjusted
cost of capital rates are based on the average of actual rates
in recent years. In light of the long-term nature of product
and investment decisions, the following internal rates of re-
turn are used in conjunction with segment management:
15,343
22.6
11.2
47
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
BMW Group Integrated Strategy
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Strategic management at Group level
Strategic management and the measurement of its financial
impact are coordinated primarily at Group level in conjunc-
tion with the long-term corporate plan. One of the key perfor-
mance indicators used in this context is Group profit/loss
before tax, which provides a comprehensive measure of the
Group's overall corporate performance after consolidation
effects and enables a transparent comparison over time.
Other key performance indicators at Group level are the size
of the workforce at the year-end and the share of women in
management functions. By 2025, the BMW Group aims to
increase the share of women in management functions to
22%.
The information provided by these key performance indica-
tors at Group level is complemented by the two financial per-
formance indicators of pre-tax return on sales and value
added. Value added, as a highly aggregated performance
indicator, also provides an insight into capital efficiency and
the (opportunity) cost of capital required to generate Group
profit. A positive value added means that a return on invest-
ment above the cost of capital has been achieved.
Capital employed comprises the amount of Group equity and
pension provisions as well as the financial liabilities of the
Automotive and Motorcycles segments employed on aver-
age at the end of each of the last five quarters. The earnings
amount corresponds to Group profit/loss before tax, adjust-
ed for interest expense incurred in conjunction with the pen-
sion provision and on the financial liabilities of the Automo-
tive and Motorcycles segments (profit/loss before interest
expense and tax). The cost of capital is the minimum rate of
return expected by capital providers in return for the capital
employed. Since capital employed comprises an equity cap-
ital (e.g. share capital) and a debt capital element (e.g.
bonds), the overall cost of capital is determined on the basis
of the weighted average rates for equity and debt capital,
measured using standard market procedures. The pre-tax
average weighted cost of capital for the BMW Group in 2021
was 12%, unchanged from the previous year.
12.0
During the reporting period, the organisation and content of
the CMS were refined according to defined strategic focus
topics. The objective is to further strengthen the culture of
compliance and integrity at the Company, with the declared
aim of avoiding Company-related violations of the law.
12.0
13.4
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
COMPLIANCE AND
HUMAN RIGHTS
Combined Management Report
BMW Group Integrated Strategy
Compliance means much more to the BMW Group than just
complying with applicable laws and Company rules: it is part
of our identity and our living culture of integrity and creates a
binding framework for all our business activities worldwide.
As such, compliance lays the foundation for the long-term
success of the Company, builds trust in our products and
brands, and shapes the public image of the BMW Group.
Compliance is the managerial responsibility of the Board of
Management of BMW AG and is primarily executed by creat-
ing an appropriate regulatory and supervisory framework, as
well as through regular and ad hoc compliance reporting, ac-
companied by clear and unambiguous compliance commu-
nications. This approach is based on the core belief that
compliance with applicable laws and related internal regula-
tions is the personal responsibility of each individual em-
ployee. As role models, BMW Group managers are also
tasked with anchoring compliance culture in their respective
area of responsibility and ensuring compliance requirements
and processes are implemented accordingly. 7 GRI-Index 102-16
During the reporting period, the Board of Management of
BMW AG significantly refined the compliance organisation
and created a new Chief Compliance Officer role, which took
effect on 1 January 2021 and which serves as head of the
Group Compliance. In addition to being responsible for the
Compliance Management System (CMS), the Chief Compli-
ance Officer manages the Group Compliance division and
briefs the Board of Management and Supervisory Board of
BMW AG on development and implementation of the CMS at
regular intervals. Furthermore, compliance has been an-
chored by the Board of Management in the Company's en-
hanced understanding of leadership.
Compliance Management System (CMS)
The BMW Group's Company-wide CMS is based on the Pre-
vent, Detect, Respond Model, which defines specific preven-
tion, monitoring, control and response measures, on the ba-
sis of clearly assigned roles and responsibilities.
The CMS is tailored to the Company's specific risk situation.
It addresses all relevant compliance topics, including fraud
prevention, export control, anti-money laundering, antitrust
compliance, corruption prevention and human rights as well
as data privacy and technical compliance. These last two topics are
the responsibility of the respective specialist departments.
An effective and efficient compliance organisation is funda-
mental to reducing sanction and liability risks, as well as
risks arising from other (non-) financial disadvantages, such
as reputational risks.
Compliance as a corporate function
To Our Stakeholders
BMW Group Report 2021
48
Value added Group
2021
2020
2021
2020
2021
16,289
5,464
8,938
8,061
7,351
2020
-2,597
Value-based management for project decisions
Operational business in the Automotive and Motorcycles
segments is largely shaped by the life-cycle-dependent
character of investment projects that have a substantial in-
fluence on future performance. Project-related decisions are
therefore a crucial element of financial management in the
BMW Group. Project decisions are based on calculations de-
rived from the expected cash flows of each individual project.
Calculations are made for the complete term of a project, in-
corporating future years in which the project is expected to
generate cash flows. Project decisions are taken on the ba-
sis of net present value and the internal rate of return calcu-
lated for the project. The net present value indicates the ex-
tent to which the project will be able to generate future net
cash inflows over and above the cost of capital. A project
with a positive net present value enhances future value add-
ed and therefore results in an increase in enterprise value.
The project's internal rate of return measures the average
return on the capital employed in the project. For all project
decisions, the project criteria and long-term impact on peri-
odic results are measured and incorporated in the long-term
Group plan. This approach enables an analysis of the impact
of project decisions on periodic earnings and rates of return
for each year during the term of the project.
Board of Management remuneration
Performance criteria for the short- and long-term variable
remuneration of the Board of Management are also based
on the main strategic financial and non-financial targets
and key performance indicators and contribute towards the
BMW Group's long-term development. Non-financial key
performance indicators used in this context include the
number of vehicles delivered, the share of women in man-
agement functions, carbon emissions and sales of electri-
fied vehicles. Financial key performance indicators that
have an impact on variable remuneration include the return
on capital employed for the Automotive segment as well as
other key financial performance indicators monitored at
Group level. Remuneration Report
46
13.4
Long-range corporate planning for the Company as a whole
and its segments is geared towards the structure of the
BMW Group target system. In this way, the targets set out in
the planning are regularly compared with the BMW Group's
strategic goals. Department strategies are also aligned with
the corporate strategy.
The automotive industry is heavily involved in global supply
chains. In a collaborative global value creation process such
as this, there is a risk that human rights may not be respect-
ed throughout the supply chain. Respect for human rights
has been incorporated into the BMW Group Supplier Sustainability
Policy. To fulfil our environmental and social responsibility, we imple-
ment a multistage due diligence process in our Purchasing
and Supplier Network division.
PERFORMANCE
INDICATORS
42
42
7 Consumption and carbon emissions data
To make this transformation possible, the BMW Group is
pushing ahead, both by restructuring existing plants and by
further developing employee competences (Employees and
Society). The restructuring of BMW Group Plant Munich pro-
vides a clear example of how the BMW Group can success-
fully and smoothly transform a full plant, including produc-
tion of internal combustion engines, to 100% electromobility
during ongoing production by 2026. Production, Purchasing and
Supplier network.
By 2023, in the middle of the second phase, we will already
have at least one fully electric model on the roads in virtually
all key model series from the compact segment to the
ultra-luxury class. In this context, we are investing additional
funds and plan to increase electrified vehicles' share total
deliveries to over 30% by 2025. The trend towards electro-
mobility will also continue to progress dynamically beyond
the year 2025. By 2030, the BMW Group plans to increase
the share of fully electric automobiles in its total deliveries to
more than 50%. Performance indicators.
The current, second phase of the transformation began in
2020 with our all-electric model offensive, led by the MINI
Cooper SE* and the BMW iX3*, and followed in late 2021
with the BMW i4 and BMW iX. Since 2013, the BMW Group
has delivered a total of more than 1 million electrified vehi-
cles to customers. From 2022 onwards, alongside the BMW
X3/iX3, additional models will be available with a choice of
fully electric or plug-in hybrid drivetrain, or with a state-of-
the-art internal combustion engine - for example, in the next
generation of luxury BMW 7 Series and BMW 5 Series se-
dans and the BMW X1. Going forward, the BMW Group will
continue to meet specific customer needs in individual mar-
kets and segments with a broad range of state-of-the-art
drive systems. Innovations and customer orientation.
We recognised the importance of electromobility early on
and began our transformation in this direction accordingly. In
the initial phase, the BMW Group introduced electrification
into standard production with the launch of the fully electric
BMW i3 in 2013. In 2014, the BMW Group launched the BMW
18, with ground breaking technology and a futuristic design.
The launch of the My BMW app in July 2020 has given BMW
a direct channel to its customers and provided them with a
direct link not only to their BMW dealership, but also to the
BMW brand as a whole. Customers can use the app to make
service appointments, request information on the condition
of their vehicle, or receive the latest news on BMW brand
products and services. The topic of battery charging has also
been fully integrated in this digital ecosystem. The My BMW
app can also be used to plan trips and display suitable
charging points along the route. The same applies, of course,
to the MINI brand with the MINI app.
The BMW Group is making customer experience the focus of
all its marketing and sales activities. The aim is to offer the
industry's best premium customer experience and to seam-
lessly integrate all customer touchpoints, online and offline.
The BMW Group is focused on its customers worldwide and
on meeting their different requirements. It does so by un-
derstanding the needs of its current and future customers
and exceeding their expectations. It combines ground
breaking technologies, emotional products and individual
customer care to create a unique overall experience. Creat-
ing the best customer experience, both physically and digi-
tally, as well as personalised, reliable communication, is of
primary importance to us.
Where is the BMW Group heading?
BMW Group Report 2021
Strategic approach -
The focus on profitability is a very important aspect of the
BMW Group's corporate management system. All measures
and initiatives are aimed at further developing the BMW
Group's strong economic base, so it can continue to operate
independently and invest in the future.
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Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
BMW Group Integrated Strategy
To Our Stakeholders
BMW Group Report 2021
41
Once strategic targets have been derived from the findings
of the environmental analysis and the ongoing strategy process
within the Company, the BMW Group target system trans-
lates the strategy into a clear system for measuring perfor-
mance. The target system is therefore a key instrument for
anchoring strategy throughout the Company. For corporate
management purposes, the strategic targets are backed by
effective performance indicators.
To underline the importance of the BMW Group's economic
performance capabilities, our ambitious financial targets are
tied to the following strategic key performance indicators:
EBIT margin in the Automotive segment (between 8 and
10%), RoCE in the Automotive segment (at least 18%) and
Group EBT margin (more than 10%) Performance indicators.
To Our Stakeholders
As part of our focus on efficiency, we regularly assess ways
to utilise synergies and efficiencies across the Company in
an effort to reduce the complexity that arises from increas-
ingly strict and heterogeneous regulatory requirements.
Faster, digitalised processes within lean structures are fun-
damental to systematically leveraging efficiencies. In vehicle
development, for instance, we see considerable potential for
reducing process time through digitalisation. In addition to
this, distinguishing the BMW Group from its competitors, we
are also taking advantage of the expanded possibilities of
digitalisation for customer contact, with integrated product
and service offerings, functional upgrades and customer
support. The BMW Group is also bolstering its portfolio with
attractive new models especially in highly profitable
segments.
Group Financial Statements
Combined Management Report
BMW Group Integrated Strategy
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
BMW Group Integrated Strategy
BMW Group Report 2021
43
* Consumption and carbon emissions data
We are constantly expanding our collaborations to secure
access to new technologies and increase value creation
setting cooperation goals and defining strategic fields of co-
operation with our partners based on the strategic frame-
work.
vey confirm high internal acceptance of the BMW Group's strat-
egy and sustainability activities, as well as employees' willingness
to play their part Employees and Society. BMW Group employees
not only work closely together within the Company, but also with
external partners. The stable relationships that have grown over
time in our partner networks are based on the same values as
those at the BMW Group. This has been especially evident during
the pandemic years of 2020 and 2021. Even when confronted
with the challenges of global lockdowns and the shortage of
semiconductor components, our supply chains have held up well
and our retail network showed its strength. This is the only way
we can maximise our effectiveness and, together, lead the Com-
pany to success.
To Our Stakeholders
In addition to delivering product substance, we also offer our
customers a 360° approach to electrification, by creating an
appropriate charging ecosystem - because charging is a
trailblazer for electromobility. As well as offering charging
options at home and at work, we also provide public charg-
ing through BMW Charging and MINI Charging Mobility con-
cepts and services.
Our ambitious strategic objectives can only be achieved if all
employees work together. Diversity is an important compo-
nent of our competitiveness Employees and society. The diver-
sity metric defines the share of women in management po-
sitions as a key performance indicator and a strategic target
variable. The aim is to increase the share of women in man-
agement positions at the BMW Group to 22% by 2025 7 Per-
formance indicators.
How does the BMW Group
ensure cooperation?
In the Financial Services Segment, the strategic approach is
geared towards making the product range available to all
customer groups across all channels Financial Services segment.
BMW Motorrad is continuing to evolve in the direction of
electromobility. The "Vision Amby" Vision Vehicle and the
fully-electric Concept CE 02 provide a glimpse of the future of
urban mobility. In the urban mobility segment, the CE 04
electric scooter is a trailblazer for BMW Motorrad's electro-
mobility strategy 7 Motorcycles segment.
BMW M is also currently working on various forms of electri-
fication and already launched a performance car with a fully
electrified drive train, the BMW i4 M50*, in 2021. At the same
time, MINI's transition to an all-electric brand underlines its
urban identity. Rolls-Royce, the world's leading luxury brand,
will also focus on electromobility in the future Automotive
segment.
The third phase of the transformation will begin in 2025 with
our global fully electric product line-up, the Neue Klasse.
Production of vehicles for the Neue Klasse will get underway
at the newly constructed BMW Group Plant Debrecen and
then expanded to BMW Group Plant Munich from 2026 on-
wards. The Neue Klasse sets the standard for digitalisation,
electrification and sustainability. It will be characterised by a
New Cluster Architecture (NCAR) geared exclusively towards
battery electric vehicles (BEVs), a completely redefined tech
stack autonomous driving and a newly developed high-per-
formance electric drivetrain generation. The Neue Klasse
also makes a significant contribution to sustainability, by re-
lying on the concept of circularity Circular design.
The BMW iX is the first BMW Group vehicle to offer automated
driving and parking functions from a new technology kit that
will enable continuous improvement and expansion of driver
assistance functions and highly automated driving in the mid-
term (Level 3). These functions will continue to be rolled out
and used in the next-generation BMW 7 Series and BMW 5
Series, for instance. Moreover, with the launch of the BMW iX,
the BMW Group became the first premium manufacturer to in-
clude the 5G mobile communications standard in a series pro-
duction vehicle on a worldwide basis. In terms of mobility, this
means comprehensive expansion of data-based services in
the fields of entertainment and infotainment, automated and
assisted driving and, above all, road safety.
← = Q
Other Information
Remuneration Report
To anchor strategy within the Company, it is critical to keep em-
ployees and managers informed, to strengthen their creativity
and to encourage them to actively participate in the implementa-
tion and achievement of goals. The results of the Employee Sur-
Corporate Governance
Remuneration Report
← = Q
"Based on the well-to-wheel method, which in addition to the tank-to-wheel
approach also takes into account the generation and supply of fuel and thus the
entire impact chain relating to the driving of vehicles.
With the even more ambitious target of reducing carbon
emissions during the use phase by more than 50%, the
overall view over the complete life cycle¹ of a vehicle by 2030
results in an average carbon emissions reduction of at least
40%. By 2050, we intend to achieve net zero in terms of our
carbon emissions across the entire value chain. As of the
year under report, we made the remaining carbon emissions
generated at our own plants and locations completely car-
bon-neutral through the use of voluntary offsetting certifi-
cates. Compensation of site-related carbon emissions
Corporate Governance
Group Financial Statements
5 Categories included under Scope 3 downstream: Use phase Carbon footprint.
6 For comparison purposes, the figures for 2019 (base year) and 2020 have been
adjusted accordingly.
To Our Stakeholders
BMW Group Report 2021
57
57
[ THE BMW GROUP'S CARBON FOOTPRINT
(ABRIDGED VERSION)³
Combined Management Report
Products and Mobility Solutions
in t CO₂ / CO₂e
Decarbonisation during the use phase meets legal
requirements
Scope 1
Scope 2
Scope 32
For definition, Glossary: Carbon emissions Scope 1 to Scope 3
2021
122,539,929
699,713
134,849
121,705,368
2020
118,491,889
678,967
130,090
117,682,832
For a detailed version, see 7 Carbon footprint of the BMW Group in "Further GRI information" ]]
M.VE 2918
[ Following the overall drop in carbon emissions one year
earlier due to the coronavirus pandemic, the figure rose
again by around 3% to approximately 123 million tonnes in
the year under report, mainly driven by renewed growth in
production volume. Nonetheless, carbon emissions are 8%
down overall compared to the base year 2019, mainly due to
lower average fleet emissions worldwide. 1]
The carbon emissions generated during the use phase are
the subject of numerous regulatory requirements and also a
key parameter in our life cycle assessment. With the early
serial introduction of electrified vehicles since 2013 and the
fleet-wide use of innovative Efficient Dynamics technologies since
2007, we have continuously and permanently reduced both
vehicle fuel consumption and emissions. These two param-
eters form the basis for us for again meeting mandatory car-
bon emissions and fuel consumption requirements in the
year under report. SASB-Index
3 Categories included under Scope 3 upstream according to the Greenhouse Gas
Protocol: 1. Bought-in goods and services and 4. Transport and distribution.
Carbon footprint
TOTAL EMISSIONS
2 Figure rounded for simplification purposes. The target validated in conjunction with
the SBTi is 22%.
The BMW Group is a founding partner of the IONITY joint
venture, the aim of which is to establish a high-performance,
high-power charging network for electric vehicles right
across Europe. The joint venture represents a vital step to-
wards ensuring that electric mobility also becomes a con-
venient means of transport for long-distance travel, thus es-
tablishing it firmly on the market. The founding partners, i. e.
the BMW Group, Daimler AG, the Ford Motor Company and
the Volkswagen Group together with Audi and Porsche, all
participated in equal measure. In 2019, the Hyundai Motor
Group with its Hyundai and Kia brands joined as an addi-
tional partner. In the year under report, the existing partners
signed the inclusion of Blackrock as a further investor (clos-
ing after approval through anti-trust authorities). The move
will enable IONITY to further invest in consolidating and ex-
panding the fast charging network. Expanding charging infra-
structure and enabling faster charging
Carbon reduction during the use phase (Scope 3 down-
stream) by an average of at least 50% per kilometre
driven. Thus we again significantly raised the original tar-
get of more than 40% that we had set ourselves. The
main reason for this is the dynamic growth in demand for
our electrified vehicles. Electric mobility, 7 Automotive segment
The adjusted target of 50% has been submitted and
successfully validated by SBTi in february 2022.
BMW Brilliance Automotive Ltd. (BBA) is a joint venture
founded in 2003 and owned equally by the BMW Group and
Brilliance China Automotive Holdings Ltd. (CBA). BMW Bril-
liance Automotive manufactures BMW brand models at an
engine plant and two automobile plants in Shenyang, China
(Liaoning Province). In February 2022, the BMW Group ac-
quired a further 25% of the shares in the BMW Brilliance
joint venture. Further information on the consolidation of
BMW Brilliance Automotive is available in the Notes to the
Group Notes to the Financial Statement.
Spotlight Automotive Limited (Spotlight), a joint venture be-
tween the BMW Group and the Chinese manufacturer Great
Wall Motors, will produce all-electric MINIs as well as electric
vehicles for Great Wall Motors. Established in December
2019, the joint venture also includes the collaborative devel-
opment of battery electric vehicles. The construction of a
production plant in Zhangjiagang (Jiangsu Province) is
meanwhile in the advanced stages. With this collaboration,
the BMW Group is stepping up its commitment in China and
significantly increasing its production capacities.
Since the BMW Group, Daimler and Audi acquired the HERE
mapping service in 2015, the three partners have been work-
ing on developing high-precision digital maps that can be
linked to real-time vehicle data. The maps form the basis for
the next generation of location-related services, thereby
marking another key step in the evolution of individual mobil-
ity as well as building a solid foundation for developing new
assistance systems. HERE remains accessible as an inde-
pendent platform for the automotive industry as well as for
other partners. During the year under report, the location
data and technology platform had nine direct and indirect
shareholders, i. e. Audi, Bosch, the BMW Group, Continental,
Intel, Mitsubishi, Daimler, Nippon Telegraph and Telephone,
and Pioneer.
EU carbon emissions targets achieved
Under the brand name YOUR NOW, the BMW Group and
Daimler Mobility AG offer innovative, customer-friendly solu-
tions for business partners, cities, towns and municipalities
that are looking to make their mobility more efficient and
sustainable. The cooperation includes the joint ventures
FREE NOW (ride-sharing and multimodality), REACH NOW
(on-demand mobility and multimodality), SHARE NOW
(car sharing) and CHARGE NOW (charging). In 2021, the en-
ergy company bp also joined to become the third partner in
Digital Charging Solutions GmbH (DCS), which operates the
CHARGE NOW brand. Innovative mobility services on offer
In 2021, the BMW Group, together with the Ford Motor Com-
pany, Volta Energy Technologies and other investors, invest-
ed in Solid Power, Inc., one of the industry's leading develop-
ers of solid-state battery cells with high energy density that
can also be used to power electric vehicles. This investment
and the subsequent IPO provided Solid Power, Inc. with the
financial resources to secure its research and development
activities for the years to come.
Moreover, the BMW Group and Solid Power, Inc. have ex-
tended the development agreement that has been in place
since 2016; the BMW Group intends to purchase solid-state
battery cells from Solid Power, Inc. for use in a prototype
within the first half of the current decade.
Information on the overall scope of the BMW Group's re-
search and development activities is provided in the section.
7 Earnings performance
56
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Products and Mobility Solutions
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
CARBON EMISSIONS AND
POLLUTANTS
[ Mitigating the impact of climate change is one of the great-
est challenges of our time and requires a massive effort, not
only on the part of society as a whole, but also from policy-
makers and the business community. The BMW Group is
also involved in these endeavours. By 2050, we intend to
achieve the target of net zero in terms of our emissions
across the entire value chain. With this aim in mind, in 2020
the BMW Group set itself ambitious, science-based targets
for the year 2030, which have been validated by the Science
Based Targets initiative (SBTI). We intend to achieve these
targets by further reducing the carbon footprint and pollutant
emissions of our vehicles, as we have done in the past.
Decarbonising across the entire life cycle
The BMW Group is pursuing a clear strategy of decarbonisa-
tion across the entire life cycle of its vehicles and has defined
specific targets in order to do so. With this holistic approach,
we are moving forward on a path in line with the climate pro-
tection targets designed to limit global warming enshrined in
the Paris Climate Agreement.
Holistic management system
The BMW Group intends to leverage its holistic manage-
ment system to substantially improve its carbon footprint
from one vehicle generation to the next across the entire
life cycle. In view of the increasing electrification, it is par-
ticularly important to be aware that although the trend
reduces carbon emissions during the use phase. It in-
creases them at the same time in the supply chain. The
reason for this lies primarily in the carbon-intensive com-
ponents needed to power electric mobility, such as
high-voltage batteries in particular. With this point in
mind, the BMW Group defines specific decarbonisation
targets for all its vehicles right from the outset. The targets
encompass the supply chain, production and the subse-
quent use of the vehicle by the customer. Our system for
7 measuring performance enables us to ensure that these tar-
gets are implemented both rigorously and consistently
throughout the entire Group. The strategy allows us to
take our decarbonisation targets into account right from
the product development stage as well as market-related
requirements for our vehicle fleet at the same time. We
manage the implementation of our targets and the as-
sessment of progress during the development process
with the help of a carbon footprint based on ISO stand-
ards 14040 and 14044.
Decarbonisation targets across the value chain
Measurable, science-based targets that initially extend to
2030 form the basis for our decarbonisation strategy and for
this reason we have joined the SBTi. The use of sci-
ence-based targets makes the measurability of our targets
transparent and at the same time ensures that they are in
line with the latest scientific findings. ]]
We have set ourselves the following decarbonisation targets¹
to be achieved by 2030 (base year 2019). These targets were
notified to the SBTI and validated in 2020.
An average of 80% carbon reduction at our own produc-
tion sites and locations (Scope 1 and 2) per vehicle pro-
duced. Decarbonisation at BMW Group locations From 2021,
carbon emissions in accordance with Scope 1 and 2 include
not only production-specific emissions, but also those
generated at locations not directly related to production.6
An average of at least 20 %² carbon reduction in the sup-
ply chain (Scope 3 upstream³) per vehicle produced. This
data also provides us with a scientifically tested and con-
firmed target for reducing carbon emissions in the supply
chain. Reducing carbon emissions in the supply chain
1 Scope 3 emissions generated by the upstream value chain, logistics services and
well-to-tank emissions are stated in carbon equivalents. When measuring Scope 1
and Scope 2 emissions and the further Scope 3 emissions, climate-impacting
gases apart from carbon dioxide have been ignored.
As from 2021, average fleet CO₂ emissions in the EU4 must
be reported according to the new WLTP5 type test cycle. In
the year under report they totalled 115.9 g CO2/km, taking
regulatory requirements into account. We have thus signifi-
cantly reduced fleet carbon emissions compared with the
previous year (2020: 135 g CO₂/km 6,7). We were significantly
below the limit of 125.8 g CO2/km applicable for the
BMW Group by 9.9 g CO2/km. The reduction is therefore in
line with the trend seen in previous decades, driven by the
increasing electrification of our vehicle fleet and continuous
improvements in the efficiency of our internal combustion
engines. On this basis, we continue to work unabated to fur-
ther reduce greenhouse gas emissions going forward.
7 GRI-Index: 305-5
The BMW Group expects state-of-the-art, highly efficient
combustion engines to continue playing a vital role. As part
of our Efficient Dynamics approach, we will therefore con-
tinue to work on further reducing the fuel consumption of
conventional drive systems in the coming years, thereby in-
creasing their efficiency. 7 SASB-Index
In line with the targets set at the Paris Climate Agreement, the
BMW Group wants to make its contribution to limiting global
warming. We are demonstrating this commitment with our me-
dium- and long-term plans for decarbonisation. To emphasise
our intention, during the year under report we became the first
German automotive manufacturer to join the Business Ambi-
tion for 1.5°C initiative of the SBTi. The campaign brings together
companies that have set themselves the target of net zero emis-
sions in line with the SBTI and are thus following a long-term
1.5 degree pathway. By joining the initiative, the BMW Group is
also part of the international Race to Zero campaign organised
by the United Nations. With this move, we also want to motivate
other companies to take ambitious steps to protect the climate.
Combined Management Report
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Other Information
← = Q
[Pollutant emissions
Since the early 1990s, the BMW Group has significantly re-
duced the level of regulated pollutant emissions generated
by its vehicles, such as nitrogen oxides (NOx), carbon mon-
oxide (CO) and particulate matter (PM), by deploying new
technologies and continually improving existing ones. Be-
tween 1992 and 2021, in Europe alone we reduced the rele-
vant exhaust emissions of our new fleet of diesel cars in line
with Euro 1 to Euro 6d exhaust standards by more than 90%
compared to the level recorded prior to their introduction.
Measures aimed at minimising air pollution have made a
significant contribution to these achievements. All
BMW Group vehicles offered for sale during the year under
report meet the current Euro 6d emissions standard in the
European Union as well as similar regulations in Switzer-
land, Norway, the United Kingdom and Iceland.
Nitrogen oxide levels are a crucial factor determining the
quality of air in towns and cities. With this point in mind,
since mid-2018 the BMW Group has been using a highly ef-
fective combination of a NOx storage catalytic converter
(NSC) and a selective catalytic reduction (SCR) system with
urea injection (AdBlue) in all diesel-powered BMW vehicles
as well as in the larger MINI diesel models. The efficiency of
exhaust gas after-treatment has been additionally boosted
by the use of an improved oxidation catalytic converter com-
bined with a two-stage SCR system. The new technology
has been available since 2020 with the revised generation of
six-cylinder diesel engines and is due to be rolled out across
the entire product range during the coming years. There
have already been noticeable reductions in NOx pollution
levels in German cities over the past few years, partially driv-
en by the ongoing renewal of the vehicle fleets of all automo-
tive manufacturers. ]]
7 GRI-Index: 305-7
ELECTRIC MOBILITY
[Electric mobility is one of the key topics shaping the future
of the BMW Group in terms of sustainable mobility. The in-
creasing number of electrified models and continuously
growing sales volume figures place the BMW Group firmly
among the leading providers of premium electric mobility
worldwide. We see electrification from a holistic point of view
and consider it essential to promote electric mobility by put-
ting in place the necessary charging infrastructure as well as
customer-friendly charging solutions. Accordingly, we are
continuously expanding our range of products and providing
a comprehensive range of charging products and services.
Driving electric mobility forward
To Our Stakeholders
Our electrified vehicles are making an essential contribution
to driving down fleet emissions and thus to meeting our am-
bitious strategic decarbonisation targets right across the value
chain. For this reason, we are systematically continuing to
electrify our model range as a vital ingredient of our product
strategy.
The BMW Group has always focused its business on the
needs of its customers, and our product portfolio amply re-
flects this enduring ambition. Leveraging the benefits of
scalable, modular design and the Group's flexible production
systems, customers can now choose between fully electric ve-
hicles, plug-in hybrids and efficient conventionally powered
models. A prime example of the freedom of choice our cus-
tomers enjoy is the BMW X3, which is the first model series
to be available as a plug-in hybrid*, a combustion engine
version (both diesel and petrol), and as a BMW iX3* with an
all-electric drive system.
By the year 2030, at least half
of the BMW Group's vehicle
deliveries worldwide are set to
be fully electric models.
By offering parallel drive technologies, we are creating a
smooth transition to the future of electric mobility, while sim-
ultaneously making the best possible use of our existing re-
sources. At the same time, we are systematically continuing
to electrify our product range, driven by the dual forces of
growing customer demand and regulatory requirements. ]]
By 2025, the proportion of electrified automobiles in total
Group deliveries is projected to rise to at least 30%. By the
year 2030, at least half of the BMW Group's vehicle deliver-
ies worldwide are set to be fully electric models. Moreover,
we intend to put some ten million fully electric vehicles on
the road during the next ten years. [t By the early 2030s, the
BMW Group plans to offer only all-electric vehicles to its
MINI and Rolls-Royce customers. The fact that we are sys-
tematically electrifying both brands has to do with their typ-
ical user profiles, as MINIs are predominantly used for urban
driving, while Rolls-Royce cars are mainly used for shorter
distances. 1]
7 Consumption and carbon emissions data.
60
60
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
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Drive system diversity
BMW Group Report 2021
59
4 The well-to-wheel method takes into account the entire impact chain relating to
the movement of vehicles. The method covers everything from the generation and
provision of fuel to its conversion into energy and thus also takes into account the
environmental impact of producing the required fuel. For example, the BMW Group
takes the IEA Energy Report as the basis for calculating emissions in the upstream
value chain (Provision of electrical energy).
1 Excluding carbon emissions relating to disposal.
2 Scope 3 in this case includes emissions from logistics, business travel, employee
commuting, upstream supply chain, use phase and waste disposal.
3 Due to the broader extent of reporting on Scope 1 and Scope 2 emissions at BMW
Group locations and the changed method for calculating Scope 3 downstream
emissions in the use phase, the previous year's figures have been adjusted to
enable better comparison.
" EU-27 countries including Norway and Iceland.
5 WLTP stands for the new Worldwide harmonized Light vehicles Test Procedure.
Since 2021, the EU Commission has used this procedure as the basis for calculating
fleet carbon emissions.
6 This is a preliminary internal calculation with a potential variation of
+/- 0.5 g CO2/km, as official registration figures have not been provided by the
authorities of all EU states. The EU Commission is not expected to publish official
figures until November 2022.
7 To improve comparability of the previous year's figures with those of the current
year under report, the 2020 NEDC figures have been converted to WLTP after ad-
justment for the applicable flexibilities - specifically, from 99 g CO2/km according
to NEDC (incl. 5 g CO2/km phase-in, 7.5 g CO2/km supercredits and 2.4 g CO₂/km
eco-innovations) to 135 g CO2/km according to WLTP (excluding flexibilities). In
2020, a phase-in regulation was accepted, as was the recognition of supercredits.
As of 2021, these two simplifications no longer apply for the BMW Group.
87 Consumption and carbon emissions data
8
58
BMW Group Report 2021
To Our Stakeholders
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← = Q
Fleet emissions in the USA, China and worldwide
In the USA, average fleet emissions¹ for model year (MY]
2021 were calculated at 134.0 g CO2/km for passenger cars
(MY 2020: 155.7 g CO2/km) and 150.1 g CO2/km for light
trucks (MY 2020: 185.6 g CO2/km). Volume-weighted fleet
carbon emissions in the USA averaged 140.9 g CO2/km (MY
2020: 166.8 g CO2/km) (BMW internal calculation). In the
2021 reporting year, legally permissible imputation factors¹
were included for the first time. For this reason, direct com-
parability with the previous year is not possible. In China, av-
erage fleet carbon emissions² were 163.0 g CO2/km accord-
ing to the new WLTC test cycle introduced in the year under
report (2020: 151.1 g CO2/km NEDC). Due to the change
of cycle, a direct comparison with the previous year is not
possible.
The BMW Group's global carbon fleet emissions³ averaged
197.9 g CO2/km³ in the year under report (2020: 212.4g
CO2/km). The figure represents a reduction of 9.4% com-
pared with the 2019 baseline. When calculating these emis-
sions, the BMW Group takes into account the average fleet
carbon emissions in the EU, the USA and China and stand-
ardises them according to WLTP. Accounting for more than
80% of BMW Group deliveries overall, these three core mar-
kets and regions are a reliable basis for calculating fleet car-
bon emissions worldwide. In line with the SBTI, we add 10%
to the figures calculated to cover any possible differences
between the figures according to WLTP and actual emis-
sions. The figure also includes the upstream supply chain
emissions generated by energy sources (fossil fuels and
electricity) in accordance with the well-to-wheel approach.4
7 GRI-Index: 305-5
[Legal framework
The BMW Group has the clear ambition not only to comply
with statutory carbon emissions limits worldwide, but also
to significantly undercut them wherever possible. At the
same time, we support the development of harmonised reg-
ulations both nationally and internationally. Comparable
regulations in major markets create reliable, predictable
framework conditions that make a key contribution to com-
batting climate change and improving air quality. We ad-
dress the opportunities and risks associated with increas-
ingly strict carbon emissions regulations as part of our
7 climate-related risks. TCFD-Index
The BMW Group supports the proposal published by the EU
Commission in the year under report for implementing the
EU's 2030 climate protection target. The associated goals of
Fit for 55 largely coincide with those of the BMW Group.
Moreover, we are closely monitoring regulatory develop-
ments in the USA. In 2020, the BMW Group entered into a
voluntary agreement with the US state of California to reduce
its fleet emissions. The bilateral agreement is applicable for
all new BMW Group vehicle registrations in every state of the
USA. In 2021, the US government announced plans to intro-
duce tougher fleet fuel consumption targets at national level.
The BMW Group also intends to comply with these future
requirements. The US federal requirements regarding Green-
house Gas Emissions (GHG) generated by vehicle fleets and
the Corporate Average Fuel Economy (CAFE) regulations are
applicable in this case.
Designing conventional drive systems for greater
efficiency and lower emissions
← = Q
Technological improvements
The BMW Group has been implementing its Efficient Dy-
namics package of technological measures across its entire
fleet since 2007. The package comprises a range of coordi-
nated measures designed to reduce fuel consumption. We
will continue to pursue this strategy with innovative ap-
proaches to the use of internal combustion engines, aerody-
namics and lightweight construction. The broader use of 48-
volt technology is a key component in this regard. 48-volt
recuperation systems gather the energy recovered during
braking to supply the vehicle's electrical system and gener-
ate additional power, which reduces fuel consumption and
therefore carbon emissions. In the EU, apart from our
all-electric and plug-in hybrid models, we are also offering a
wide range of new models featuring a 48-volt recuperation
system. As from 2022, our modular motors will be fitted with
the second, even more efficient generation of 48-volt tech-
nology. The continued further development of energy man-
agement technologies in our vehicles, supplemented by oth-
er measures such as switching to highly efficient tyres,
should ensure even greater efficiency and optimise fuel con-
sumption. 1]
1 Average volume-weighted fleet emissions including regulatory credit factors (EV
multipliers, credits advanced technologies) of 21.6 g CO2/km according to USC
(United States Combined).
2 Average volume-weighted fleet emissions including regulatory credit factors of
8.83 g CO2/km (off-cycle technologies, NEV multiplier, phase-in) according to
WLTC (Worldwide Harmonized Test Cycle under China-specific test road conditions).
3 The figures are determined using a new calculation method, which was applied
retroactively to the year 2019 (2019 prior to adjustment: 140 g/km; 2020 prior to
adjustment: 133 g/km). For the defintion see Glossary Carbon emissions of the
new vehicle fleet worldwide incl. upstream emissions.
JOINING THE INITIATIVE BUSINESS AMBITION
FOR 1.5°C
Other Information
Corporate Governance
Corporate Governance
The BMW Group and its brands are well-known for their
emotive, forward-thinking design. In the course of the re-
porting year we also focused on another key facet of our
work: circular design. At the IAA Mobility in September 2021,
design geared to promoting sustainability and driven by the
circular economy concept 7 Circularity as a Strategic priority found its
expression in the BMW i Vision Circular. The design of this vision
vehicle has been optimised for closed material loops and
shows what a vehicle can look like that is not only made of
100% recycled materials, but is, in fact, itself fully recyclable.
Efficient urban mobility is another strategic focus reflected in
the vision and concept vehicles that the BMW Group pre-
sented in 2021. The Group also demonstrated its ability to
develop innovative solutions with design studies such as the
7 BMW Motorrad Vision AMBY and the BMW i Vision AMBY two-wheel-
ers. Powered by smart speed and drive system controls, they
can be used both on the road and on cycle paths. The 7 MINI
Vision Urbanaut shows a facet of the automobile that goes far
beyond its core purpose as a means of mobility and can be
used in a highly flexible manner. 1]
7 SASB-Index
[100 %
recycled and recyclable. This design study points
to what is conceivable as we move forward. ]]
3 GOOD HEALTH
AND WELL-BEING
W
QINDUSTRY INNOVATION
CLIMATE
ANDINFRASTRUCTURE
ACTION
52
Circular design - a topic shaping the future
BMW Group Report 2021
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[Digitalisation - an opportunity for innovation and
customer orientation
We view digital technologies as an excellent opportunity to
further improve our existing processes, come up with new
solutions, and engage seamlessly with our customers. For
example, in many markets vehicles can be demonstrated live
on a screen shared with a customer or configured online to-
gether with a member of our sales team. A complete online
sales process has already been successfully implemented in
some of our markets, with others to follow in the foreseeable
future.
Furthermore, digitalisation is a vital key to keeping our ve-
hicles "fresh" throughout their entire life cycle. Since the
launch of Operating System 7 in 2018, remote software up-
grades have become a reality for BMW automobiles.
Remote software upgrades also provide BMW owners with
the option to tap into new digital business models such as
"functions on demand". Customers can either purchase
additional functions or simply order them for a specific
amount of time. The response to these offers has already
been highly positive. 7 Online Report
In autumn 2021, with the launch of the new, all-electric BMW
iX, the BMW Group simultaneously introduced its new BMW
Operating System 8 as well as a new display and control
system. The principal design focus was on clarity and
straightforward, intuitive usability. The large BMW curved
display enables drivers to customise the content of their dis-
play via a touchscreen. Buttons and switches have been re-
duced to a necessary minimum.
Digitalisation also enables innovations, simplifications and
advances outside the vehicle. The My BMW app and the
MINI app for smartphones have been available since 2020.
They provide a connection from wherever the user is located
to the vehicle - or to the service partner if required. Both
apps were equipped with additional new features during the
To Our Stakeholders
[[An innovation only differs from a mere idea or an invention
when successfully applied to create new products, services
or processes. In this particular sense, innovation within the
BMW Group is inextricably linked with the concept of cus-
tomer orientation. During the year under report, innovations
again led to processes being optimised, products improved,
and new technologies introduced that make everyday life
easier for our customers. We see the future as electric, digital
and circular.
CUSTOMER ORIENTATION
INNOVATION AND
51
BMW Group Report 2021
To Our Stakeholders
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Corporate Governance
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PRODUCTS AND MOBILITY SOLUTIONS
51
Innovation and Customer Orientation
56
Carbon Emissions and Pollutants
59
Electric Mobility
62
Mobility Concepts and Services
65
Product Safety and Data Protection
PRODUCTS AND MOBILITY SOLUTIONS
AT A GLANCE
> 40%
decrease in carbon emissions on average per
vehicle over its entire life cycle compared with
2019 that is our target by 2030.
Decarbonisation targets
328,314
electrified vehicles delivered by the BMW Group
in 2021 more than twice as many as in 2019.
7 Broader offering
"> 250,000
charging points available to customers in Europe
with the BMW and MINI Charging Cards.
7 Range of reliable charging services ]]
period under report. For example, the My BMW app now also
includes a digital tyre diagnosis feature that uses artificial
intelligence to assess the condition of the vehicle's tyres.
The MINI app now enables users to access a broader range
of services, including booking appointments and paying for
services contactlessly. In an optionally available service
video, they can find out about the vehicle check or opt for a
variety of services. Innovative digital solutions are also de-
ployed in other areas of the BMW Group, such as in
production or development scenarios. When it comes to
maintaining production systems, we are switching to what is
known as a predictive maintenance strategy. With the help of
sensors, cloud-based data analysis and artificial intelli-
gence, the system assesses when a particular piece of
equipment needs to be serviced in order to prevent unneces-
sary production downtime. The technology allows mainten-
ance to be planned and components to be replaced before
they actually break down.
Remuneration Report
REMOTE SOFTWARE UPGRADES
MPZ 1869
To Our Stakeholders
Combined Management Report
Products and Mobility Solutions
Group Financial Statements
Other Information
Remuneration Report
Other Information
← = Q
[The BMW iX5 Hydrogen is powered by fuel cells that stem
from the Group's development cooperation with the Toyota
Motor Corporation. However, the fuel cell stack and the over-
all drive system are being developed in-house by the
BMW Group. The collaborative project, which began in 2013,
aims to optimise the everyday suitability of fuel cell technol-
ogy and its use in each company's own production vehicles.
In order to build up an efficient hydrogen-based economy
and promote the production of green Hydrogen, the
BMW Group supports initiatives right across Europe.
Inspiration and cooperation
Good ideas often come into being when different partners
decide to work together. Accordingly, we focus on cooper-
ations in which the strengths of the BMW Group comple-
ment those of established partners and innovation drivers
such as start-ups. Using this approach, we are constantly
developing the innovative strength of the BMW Group.
Regional BMW Group Technology Offices are in search of
promising business partners worldwide in fields of innova-
tion such as sensor technology, artificial intelligence, bat-
tery technology, smart materials, natural user interfaces
and smart logistics. To maintain this network, the
BMW Group also holds an intensive dialogue with selected
colleges and universities. For example, numerous Group
employees also lecture at universities and higher education
institutions and a great many students come to the
BMW Group each year to complete an internship or write a
scientific thesis, enabling us to ensure the transfer of
knowledge between theory and practice and help train
highly qualified junior staff. 1]
QUANTUM COMPUTING
BMW Group Report 2021
The BMW Group clearly sees quantum computing as a groundbreak-
ing technology of the future that has considerable potential for use in
a broad range of applications, such as for researching materials, in
the field of battery cell chemistry, or to power the future of automated
driving with quantum machine learning. However, it is still a long way
from achieving technological maturity and that's why it is particularly
important for us to provide the best possible support for cutting-edge
research and its transfer to industrial applications.
Worldwide culture of innovation
The Munich Research and Innovation Centre (FIZ) is the
main hub of the BMW Group's international network of re-
search and development locations. After the initial construc-
tion phase, the extension was first occupied in autumn 2020,
the new driving simulation centre was also put into oper-
ation during the year under report. In five of a total of 14 sim-
ulators and usability labs, LED walls are deployed to create
a virtual environment for development purposes, to enable
more realistic representations than previous projection
systems.
The global dialogue with start-ups is another important
means for us to bring new impulses into the Company. The
dialogue is based on three key pillars: BMW i Ventures through
which we invest in technology start-ups, the Accelerator
URBAN-X start-up, which was initiated by the MINI brand and
In June 2021, the BMW Group and the Technical University of Munich
(TUM) jointly announced the establishment of the endowed chair for
Quantum Algorithms and Applications. The move was followed in
November 2021 by an agreement with RWTH Aachen University also
aimed at supporting research into quantum computing. Both of these
collaborations are intended to build a bridge between basic research
and industrial application.
In July 2021, the BMW Group launched the BMW Group Quantum Com-
puting Challenge crowd innovation initiative in collaboration with
Amazon Web Services Inc. Researchers, start-ups and companies
alike are called upon to develop innovative quantum algorithms that
serve as solutions to one of four industrial challenges that were an-
nounced. The winners will be invited to implement the selected pilot
projects together with the BMW Group as their customer.
focuses on life in the city, and the BMW Startup Garage, which
represents the third and final pillar. In May, the BMW Group
opened a so-called "incubation site" in Shanghai in cooper-
ation with Alibaba Cloud. This joint innovation base aims to
help Chinese tech start-ups scale their innovations.
Cooperations and partnerships
In order to maintain its long-term success, the BMW Group
enters into targeted cooperations and partnerships, not only
with companies from the automotive industry, but with tech-
nology leaders from other sectors as well. The aim of co-
operating with external partners is to pool our common ex-
pertise and implement innovations as swiftly as possible.
Some of the BMW Group's major collaborations and invest-
ments are listed below:
55
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Products and Mobility Solutions
Group Financial Statements
The BMW Group is one of ten German companies that formed the
Quantum Technology and Application Consortium (QUTAC) in June
2021. The aim of the consortium is to continue developing the existing
fundamentals of quantum computing to create truly usable industrial
applications.
54
** Consumption and carbon emissions data
MHEV 5057 E
Liptond
Drive technologies of the future
The BMW Group also focuses on the needs and wishes of its
customers worldwide when developing its drive technolo-
gies. For this reason, we are constantly enhancing our exist-
ing drive technologies in the interests of efficiency, decar-
bonisation and resource conservation. At the same time, of
course, the BMW Group is researching new drive technolo-
gies with the aim of preparing them for series production. 1]
REMOTE SOFTWARE UPGR
Some 30 BMW models are currently upgradeable, which means
that suitable vehicles can receive the latest software upgrades
"over the air". These remote software upgrades provide BMW
vehicles with improvements as well as new digital products and
services and keep the software up to date.
The BMW Group has already offered automated remote soft-
ware upgrades to more than four million of its vehicles, and cus-
tomers have successfully installed them more than 2.3 million
times. Read more in our online special. Online Report
53
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Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
[Electric-powered future with the Neue Klasse
The BMW Group sees the transformation to all-electric, con-
nected, sustainable mobility as an opportunity and has de-
veloped a clear road map that consists of three phases. In
the first phase, the Group began pioneering e-mobility as
early as 2007 with project i, enhancing the technology and
then developing electrified vehicles for series production. In
the second phase, which is currently underway, we are intro-
ducing electrification to the product portfolio with a new
model initiative Broader offering based on smart vehicle archi-
tectures and our highly flexible 7 production network, which is
capable of manufacturing the full range of vehicles from
all-electric to combustion engine drive systems on the same
production line. By the peak of the second transformation
phase at the end of 2025, the share of electrified cars in the
BMW Group's total deliveries is scheduled to rise to at least
30%.
From 2025, the third phase will begin with the Neue Klasse,
which will be characterised by three key aspects: a com-
pletely redefined IT and software architecture, a new genera-
tion of electric drive systems and batteries, and a new level of
sustainability across the entire vehicle life cycle. Contributing
factors include:
the all-electric drive system
the use of carbon-free energy in ever larger parts of the
supply chain
the increasing use of secondary materials
closed-loop systems for essential production materials
This high technological standard will be integrated in a com-
plete vehicle architecture exclusively geared towards electric
drive systems. 1]
[[Additionally bolstering battery expertise
Powerful, sustainable energy storage systems and the de-
velopment of new, innovative battery cells are key elements
for powering future generations of all-electric vehicles. For
the Neue Klasse, we are working on significantly increasing
the energy density of the cells, while at the same time cutting
material and production costs. Battery recyclability is an-
other key consideration that will impact the development of
all our future generations of battery cells. Moreover, the
BMW Group is already conducting intensive research into
solid-state battery technology, which shows great promise
for the future.
Hydrogen fuel cell technology
During the year under report we began testing the BMW iX5
Hydrogen with its hydrogen fuel cell drive in everyday driving
scenarios in Europe. The aim is to test the interaction be-
HYDROGEN
CONCEPT PROTECTION VRS
HYDROGEN
tween the carbon-free drive system, the chassis technology
and the electronic systems under realistic conditions. The
BMW iX5 Hydrogen uses hydrogen as a fuel and converts it
into electricity via a fuel cell, making the BMW iX5 Hydrogen
a fully electrically powered vehicle. A pilot series of this mod-
el will be produced at the end of 2022 in order to gain further
practical experience in a broadly based field trial.
Hydrogen fuel cell technology has the potential to become a
sustainable alternative to battery electric drive systems. The
technology really comes into its own when comprehensive
electric charging infrastructure is not available and there are
also a broad number of applications for this technology on
long-distance journeys or in larger classes of vehicle. De-
pending on market requirements and other general condi-
tions, the BMW Group intends to offer a production vehicle of
this type in the second half of the decade. ]]
XDrive
← = Q
Other Information
The BMW Group's range of electrified products consists of
purely battery electric vehicles (BEV¹) and plug-in hybrid
models (PHEV²).
[Broader offering
"Range calculated on the basis of the new WLTP test cycle (Worldwide Harmonized
Light Vehicles Test Procedure). The actual range achievable depends on a variety
of factors, including personal driving style, route characteristics, the outside tem-
perature, heating, air conditioning, preheating and precooling. Provisional figure
5 Vehicle delivery figures presented for the year 2020 are not directly comparable
with those of previous years. See sales figures for deliveries in the section "Com-
parison of Forecasts with Actual Outcomes" for further information.
67 Consumption and carbon emissions data.
3 All performance and body variants are counted as basic models. Specifically, these
are the following: BMW 225xe*, BMW 320e*, BMW 320e Touring*, BMW 330e*,
BMW 330e Touring*, BMW 520e*, BMW 530e*, BMW 530e Touring*, BMW 545e*,
BMW 545e Touring*, BMW X1 xDrive25e*, BMW X1 xDrive25Le* (China only), BMW
X2 xDrive 25e*, BMW X3 xDrive30e*, BMW X5 xDrive 45e*, BMW 745e/Le/Le
xDrive* and MINI Cooper SE Countryman ALL4*.
1 Battery electric vehicle.
2 Plug-in hybrid electric vehicle.
Expanding charging infrastructure and enabling faster
charging
We are also driving hydrogen fuel cell technology forward at
a higher level. For example, we are involved in worldwide or-
ganisations and associations, such as the 7 Hydrogen Council.
As an associated partner of H2 Mobility Deutschland GmbH, the
BMW Group supports the establishing of infrastructure re-
quired for hydrogen-powered vehicles. In this context, the
BMW Group welcomes the call in the EU's Fit for 55 legisla-
tive package to establish a basic infrastructure of 700-bar
hydrogen refuelling stations.
Our customer-oriented technological diversity approach also
includes the further development of fuel cell technology, for
which we see considerable potential, depending on the seg-
ment. We see electric drive systems that use hydrogen as an
energy storage system as a complementary addition to bat-
tery electric mobility and as an opportunity to reduce carbon
emissions at an even faster rate. In this context, we present-
ed the BMW X5 Hydrogen at the IAA Mobility 2021.
An expanded, customer-friendly charging infrastructure will
pave the way for the rapid and widespread use of electric
mobility. For this reason, the BMW Group is committed to
creating standardised framework conditions and services
that enable easy charging. 1]
For these reasons, the MINI Cooper SE6 is designed for ur-
ban driving and has a range of more than 200 kilometres
(WLTP4), in line with customer requirements. The new BMW
iX and i4 models are designed for covering long distances of
around 600 kilometres (WLTP4) on just one charge. In view
of the customer and usage profiles of both vehicles, we con-
sider these ranges to be optimal. Fully electric vehicles will
be capable of achieving ranges of more than 600 kilometres
(WLTP4), depending on vehicle size and type, as the use of
electric mobility continues to become more widespread.
The BMW Group assesses the increase in electric vehicle
ranges from various points of view. We are not aiming to pro-
vide the technically greatest possible range across all vehicle
segments as a matter of pure principle. It is far more important
to adapt the range to suit the intended use of each individual
vehicle. At the same time, we also need to consider the eco-
logical impact, as a longer range means larger and therefore
heavier high-voltage batteries. This relationship has a direct
effect on resource consumption, the environmental footprint
of the respective supply chain, and vehicle weight, which in
turn has a significant influence on the overall consumption of
a given vehicle.
[[Increasing range to suit customer needs
share of electrified vehicles to total BMW Group deliveries
reached 13.0%.
In 2021, the BMW Group delivered a total of 328,314 all-elec-
tric and plug-in hybrid vehicles (2020: 192,6625] to custom-
ers, around 104,000 of them with all-electric drive systems,
thus surpassing our self-imposed target of more than doub-
ling our sales of electrified vehicles compared with the 2019
figure (146,158 units). Therefore, at the end of 2021, more
than one million BMW Group vehicles with fully electric or
plug-in hybrid drive systems were on the road worldwide
(Automotive segment). In the year under report, the percentage
During the year under report, the BMW Group also added
further engine variants to its PHEV model range with the
BMW 320e6 and the BMW 520e6. Including these innov-
ations, we are currently offering 17 plug-in hybrid basic mod-
els in a total of 83 markets worldwide. With innovations
such as the BMW eDrive Zone, extensive charging options and
increased ranges, we are enabling drivers of plug-in hybrids
to travel electrically as often and over as long a distance as
possible. The BMW 2 Series Active Tourer compact plug-in
hybrid model will be launched in 2022 and capable of trav-
elling up to 80 kilometres (WLTP4) purely on its own battery
power. 1]
Hydrogen
Apart from the established all-electric BMW i3, MINI Cooper
SE6 and BMW iX36 models already available, two key inno-
vation drivers were added during the year under report - the
BMW X6 and the BMW i46. Over the next two years, the
all-electric versions of the BMW 7 Series, the BMW X1, the
high-volume 5 Series and the MINI Countryman are set to
follow, as will the all-electric Rolls-Royce Spectre. From
2025, we will be rigorously taking the core BMW brand into
a new all-electric dimension with the 7 Neue Klasse.
66
The BMW Group provides its customers with extensive infor-
mation on the correct use of its products and services. Infor-
mation on safety, the proper use of its vehicles, and health
protection is available in the integrated operating instruc-
tions in printed form, online, or via an app. The information is
supplemented by notes and background tips on services,
accessories and the vehicle's various components. ]]
Customer awareness and empowerment
The BMW Group endeavours to meet legal requirements re-
garding the use and handling of pollutants at every stage of
the value chain. Right from the design stage, the BMW Group
is careful to exclude any substances of concern from its ve-
hicles to the greatest extent possible. In doing so, we use the
7 Global Automotive Declarable Substance List (GADSL) as a guide. At
[ All BMW Group vehicles are
subject to stringent quality,
safety and legal compliance
tests, right from the develop-
ment stage through to
production. 1]
SASB-Index
BMW Group Report 2021
the same time, we are working to reduce emissions in the
vehicle interior to an absolute minimum. All BMW, MINI and
Rolls-Royce vehicles are equipped with passenger compart-
ment air filters as standard, reliably filtering out pollutants
and particles such as dust or pollen from the outside air. In
2020, the BMW Group fitted passenger compartment air fil-
ters with nanofibre filter technology, which keeps certain micro-
bial particles and allergens from entering the vehicle's interior.
Since 2021, we have been gradually introducing this technol-
ogy in a range of other BMW Group models.
To Our Stakeholders
Data protection - an essential task
Group Financial Statements
Corporate Governance
Remuneration Report
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[With its BMW and MINI Driving Experience, the BMW Group offers
product experiences and safety training with BMW, MINI and
BMW Motorrad brand vehicles in 25 countries. The Driving
Experience teaches participants safe vehicle handling and
prepares them for any dangerous situations that may occur
on the road. In 2021, more than 100,000 customers world-
wide took part in these training courses.
Pollutants management
The BMW Group views data protection as one of the most
important tasks in these times of increasing digitalisation.
For this reason, the strictest data protection requirements
are taken into account at an early stage when developing
features and services. Via an individually configurable data
protection menu, we provide our customers with transpar-
ency, informational self-determination and ultimately data
sovereignty.
Customer data protection
Combined Management Report
Products and Mobility Solutions
We work continuously on improving vehicle safety. The
7 European New Car Assessment Programme (Euro NCAP), a vehicle
crash safety assessment scheme, confirms the effective-
ness of the safety measures installed in our vehicles. In the
2021 Euro-NCAP-Rating, the BMW iX received the highest
rating, just like numerous models did in past years, such as
the BMW 4 Series Coupé and BMW 4 Series Convertible,
thus demonstrating the Group's premium-level standards in
terms of vehicle safety.
← = Q
Effective safety systems
With its BMW eDrive Zone technology, the BMW Group is
demonstrating how vehicle connectivity can help make urban
mobility more sustainable. Plug-in hybrids equipped with the
appropriate module can automatically switch to all-electric
driving when entering a defined zone, making it easier for cus-
tomers to drive emissions-free as often as possible, provided
their vehicles are charged with green electricity. BMW eDrive
Zone technology is already available in over 138 towns and
cities across Europe.
Safety of automated and smart systems
The BMW Group gives the safety of its automated systems
the highest priority. For that reason, we support the develop-
ment of an industry-wide ISO standard for highly and fully
automated driving functions. In 2019, the BMW Group, to-
gether with 11 leading companies in the field of automated
driving, published the white paper Safety First for Automated
Driving, which was translated into an ISO Technical Report in
2020. The work is currently being continued in a worldwide
ISO working group and scheduled to be published as an ISO
Technical Specification in 2023 with the aim of defining uni-
form technical standards for safe automated driving.
Artificial intelligence (AI) has been used in BMW driver
assistance systems since 2018. It helps to detect dangerous
situations, such as other vehicles swerving into traffic, at an
early stage so that the driver can react accordingly. The Al's
learning is controlled and safeguarded throughout the pro-
cess. Here, too, the Group is working to achieve the inter-
national harmonisation of Al standards and helped initiate the
development of the new ISO Safety and Artificial Intelligence
standard in 2021. In this context, as a founding member of the
European GAIA-X project, we are committed to establishing a
protected, high-performance data infrastructure as the basis for
safe, efficient traffic management. ]]
$138
European towns and cities are compatible with
BMW eDrive Zone technology. ]]
* Munich test site, pilot test of automated driving in urban traffic.
65
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Products and Mobility Solutions
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
At the BMW Group, data and information protection is based
on the relevant laws and standards, particularly the EU Gen-
eral Data Protection Regulation and the ISO/IEC 27001 in-
ternational security standard. The personal data of custom-
ers are only collected, processed or used to the extent
legally permitted and with the consent of the data subject.
However, should customers have any queries or complaints
regarding the protection of their personal data, they are wel-
come to contact the Customer Interaction Centre or the data
protection officer in their respective markets.
PRODUCT SAFETY AND
DATA PROTECTION
[We aspire to deliver the highest standards of quality and
safety for all BMW Group vehicles. In all measures, the safety
of people is key. In its manufacturing processes, the
BMW Group avoids the use of any substances that pose a
health risk. The active and passive safety systems built into
our vehicles ensure greater safety on the road. In our driving
safety training courses, we instruct customers on all aspects
of safety and show them how to recognise and react appro-
priately to dangerous situations. Responsibility towards our
customers also includes the responsible handling of their
data. In this respect we focus on transparency, informational
self-determination, data sovereignty and data security.
Product safety as part of quality management
The BMW Group operates a comprehensive system of qual-
ity management, as we want to ensure that our products are
of high quality, safe and compliant with the law. All
BMW Group vehicles are therefore subject to stringent test-
ing from the development stage right through to production.
However, our quality management system goes further and
also includes the use of our vehicles after they have been
delivered to our customers; if any deviations from the quality
standard are observed, they are rigorously followed up. The
BMW Group also informs the relevant authorities without
delay if required to do so by market-specific regulations. This
is especially true for safety-related aspects. If a safety risk is
detected, the BMW Group implements any technical meas-
ures required in close coordination with the responsible au-
thorities. Corresponding committees, processes and organ-
isations are in place for this purpose, which are controlled by
the Product Support, Technical Actions and Warranty Costs
department. In the reporting year 2021, safety- and compli-
ance-related technical actions affected 1,920,977 vehicles.
These actions were all of a voluntary nature and carried out
in coordination with the respective authorities. The main
technical actions related to exhaust gas recirculation issues
and Takata-airbags. GRI-Index: 416-1, 7 SASB-Index
State-of-the-art safety systems play a major role in reducing
the risk of accidents and injuries (active safety) and largely
mitigate the consequences of a possible accident (passive
safety). Safety begins with key factors such as optimal chas-
sis tuning, highly effective braking systems and stable pas-
senger compartments, but also includes airbags as standard
and digital driver assistance systems such as active cruise
control, collision warning, lane guidance and emergency
braking assistants. They also promote greater safety for all
road users. The connectivity and automation of vehicles also
provides a growing number of opportunities to improve safe-
ty. The BMW iX sets new standards in this regard, thanks in
part to its advanced front collision warning system with brak-
ing intervention, which comes as standard.
[In 2021, more than 100,000
customers worldwide took part
in BMW and MINI Driving
Experience training courses. 1]
AND RENEWABLE ENERGY
The BMW Group collaborates closely with the relevant data
protection supervisory authorities particularly regarding
fundamental data protection issues, such as those relating
to the increasing connectivity of our vehicles.
3 Contract manufacturing.
2 BMW Brilliance Automotive Ltd., Shenyang joint venture.
venture (2021: 700,777 units; 2020: 602,935 units).
1 Includes vehicles produced by the BMW Brilliance Automotive Ltd., Shenyang joint
9.1
2,255,637
2,461,269
Total
11.3
70
26,256
Partner plants
52.6
35,747
54,547
Graz (Magna Steyr)³
- 16.3
125,666
105,214
25.2
29,220
70
BMW Group Report 2021
To Our Stakeholders
From product development to recycling
We are working hard to further integrate the principle of cir-
cularity in all our processes. However, the availability of
high-quality secondary raw materials is currently limited and
in some cases insufficient to meet demand. Depending on
material requirements, adequate amounts of secondary ma-
terial are not yet available for every application. As part of its
efforts to meet these challenges, the BMW Group is working
together with its partners to form closed material loops in the
automotive industry. In collaboration with BASF and the
ALBA Group, we are currently testing improved methods of
recycling automotive plastics as part of a pilot project.
7 Online-Report
The responsible and efficient use of resources is of great im-
portance to the BMW Group, which takes a targeted ap-
proach to the circular economy concept based on the four
principles Re:think, Re:duce, Re:use and Re:cycle.
Circularity as a strategic priority
Since 2019, we have been
building up relevant knowledge
in this field at the Battery Cell
Competence Centre in Munich.
[[ Circularity is one of our key strategic priorities. The in-
creased use of secondary raw materials is a cornerstone of
the BMW Group's long-term decarbonisation strategy. We
also see the circular economy concept as an important factor
in our efforts to significantly mitigate the social and environ-
mental impacts of mining and processing primary raw ma-
terials. The use of secondary materials also has economic
benefits, as it conserves primary raw materials. Circularity
calls for a holistic strategic approach, beginning at the product
design stage and encouraging the increased use of second-
ary raw materials in our supply chain as well as the recycling
of BMW Group vehicles at the end of their life cycle. At the
same time, in our own production cycles we are systematically
pursuing the strategy of conserving resources, improving
energy efficiency and continuously cutting emissions.
With the all-electric BMW iX, which was launched in 2021, we
are also offering state-of-the-art driver assistance systems.
The BMW iX is the first BMW Group vehicle to feature auto-
mated driving and parking functions from a new modular tech-
nology toolkit that will be deployed across the entire product
portfolio from next year.
CIRCULAR ECONOMY,
RESOURCE EFFICIENCY
The approval process for the planned pilot plant in Parsdorf
near Munich for near-series battery cell production came
closer to completion during the year under report. The
BMW Group intends to further optimise the production of
battery cells at the Parsdorf plant in terms of quality, perfor-
mance and costs. Since 2019, we have been pooling our
knowledge at the Battery Cell Competence Centre in Munich.
The entire value chain of battery cell technology is concen-
trated at the Centre, including research and development,
the composition and design of the battery cell and industrial
producibility.
Developing expertise for battery cell production
* BMW Group production sites, including contract manufacturing at Magna Steyr
Fahrzeugteile (Austria), VDL Nedcar (the Netherlands) and Inokom Kulim (Malaysia).
The Dingolfing plant now plays a leading role as a compe-
tence centre for electric drive systems, producing battery
modules, high-voltage batteries and fifth-generation electric
motors, which are also produced at the Landshut plant. The
BMW Group plants in Spartanburg (USA) and Shenyang
(China) also make high-voltage batteries. The Leipzig plant
began manufacturing battery modules and other battery
components during the year under report. The Regensburg
plant also began producing battery components during the
same period. In Thailand, the BMW Group collaborates with
a partner that makes high-voltage batteries for electrified ve-
hicles that are produced locally.
Component production for electrified vehicles
By the end of 2022, every production plant in Germany shall
have the capacity to manufacture at least one all-electric
model. From the middle of the decade, the 7 Neue Klasse will
also feature a cluster architecture consistently geared to pro-
ducing electric drive systems. The new architecture will be
deployed for the first time at the Group's new plant in Debre-
cen, Hungary, as well as at the Munich plant, and will be
gradually transferred to the BMW Group's global production
network in the coming years.
The BMW Group already manufactures automobiles with
all-electric or plug-in hybrid drive systems at 13 locations*
across its worldwide production network. All-electric mod-
els are already part of the production programme in Dingolf-
ing, Leipzig, Munich, Oxford and Shenyang, including the
BMW iX produced in Dingolfing and the BMW i4, which has
been manufactured at the Munich plant since the year
under report.
Restructuring production for electric mobility
Other Information
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Production, Purchasing and Supplier Network
Combined Management Report
At the same time, we continuously strive to maintain our
high level of data protection and regularly check all applica-
tions that process customer data to ensure that they comply
with all current and appropriate IT security measures. In the
course of this process, we specifically search for any possible
weak points and eliminate them with teams of IT specialists.
We implement any new insights into mandatory corporate
standards as the need arises.
Since 2021, the Munich-based research project TEMPUS*, in
which the BMW Group is participating, has been following up
questions relating to technical feasibility. The project also aims
to assess the acceptance of automated traffic systems among
the general public.
To Our Stakeholders
← = Q
1 Disclosure in CO₂ equivalents.
2 The entire value chain was taken into account and standard consumption levels as
well as the European electricity mix were used as a basis.
37 Consumption and carbon emissions data.
62
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Products and Mobility Solutions
Group Financial Statements
For this reason, the BMW Group sees it as particularly im-
portant to produce components such as the electric motor,
high-voltage storage systems, and battery cells in a more
sustainable manner. Reducing carbon emissions in the supply chain.
Other methods of mitigating the environmental impact in-
clude recycling and reusing the high-voltage storage units
installed in our BEV and PHEV models. The BMW Group al-
ready offers all customers that use its battery-powered vehi-
cles to take back their high-voltage batteries free of charge
at the end of their life cycle. ]]
Corporate Governance
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MOBILITY CONCEPTS
AND SERVICES
[The BMW Group aims to make mobility more sustainable
and cities more pleasant places to live in. With these aims in
mind, we are cooperating with cities around the world and
are involved in overarching platforms for mobility, thus mak-
ing our contribution to reducing both traffic density and the
associated negative impacts. Via BMW Group subsidiaries,
we also offer a range of innovative urban mobility services,
which include car sharing, driving and charging services, and
a digital, multimodal platform that allows users to conveni-
ently order, combine and use various modes of transport via
their smartphones. To make these services more sustain-
able, the YOUR NOW companies FREE NOW and SHARE
NOW are gradually electrifying their fleets of vehicles. In
addition, the BMW Group is driving forward the connectivity
and automation of its vehicles as key elements towards en-
suring eco-friendly, safe and free-flowing traffic in cities.
Shaping the future of mobility
The BMW Group is currently working together with the three
German cities of Munich, Berlin and Hamburg, and at inter-
national level with Rotterdam, Los Angeles and Beijing, on
cooperative research and implementation projects.
In Munich, for example, the BMW Group is currently working
with partners from the local business community to develop
a new model of collaboration between policymakers, stake-
holders and the private sector, building on 25 years of in-
volvement in the so-called Inzell-Initiative. The focus is on
creating strategic measures for developing sustainable
transportation in the region.
In the German capital, the BMW Group is involved in the
7 New Mobility Berlin project, which addresses people's chan-
ging mobility needs and the shortage of space in a growing
city. Against this backdrop, the project aims to make public
street space more flexible to use. The project is looking to
create shared spaces to provide mobility stations for car
sharing or rental bicycles, for example.
Remuneration Report
The environmental impact of a battery vehicle is predomi-
nantly caused in the upstream value chain, where the pur-
chasing of raw materials to manufacture battery cells and
the carbon-intensive production of the batteries themselves
leave a significant footprint.
> Cooperations and partnerships ]]
[ At European level, in collaboration with the joint venture
7 IONITY, the BMW Group is further expanding a comprehen-
sive, high-performance, fast-charging network along major road
routes. Depending on the vehicle, charging is particularly fast
with capacities of up to 350 kW. All IONITY charging points are
publicly accessible, regardless of vehicle brand, and designed in
accordance with the European Combined Charging System (CCS)
standard. A ubiquitous high-power charging network is key to
achieving sufficient market penetration and ultimately the suc-
cess of electric mobility. All 6,600 IONITY charging points are
powered by 100% green electricity.
The efficient use of resources needs to be considered right
from the outset, not only during the design process, but also
later at the product development stage, and is therefore an
essential requirement. The BMW Group aims to design its
vehicles so that as many material cycles as possible are
closed. We summarise this principle under the concept of
circular design. With the BMW i Vision Circular, we have
shown that we are taking a critical look at the trend towards
increasingly complex composites of materials and analys-
ing new approaches to using compounds of (mono)mater-
ials (Innovations). ]]
61
BMW Group Report 2021
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Products and Mobility Solutions
Group Financial Statements
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← = Q
[Range of reliable charging services
With BMW Charging and MINI Charging, the BMW Group
offers a comprehensive range of charging solutions that
make electrified vehicles more convenient to use in a variety
of situations. These include charging products and services
that benefit customers on the road, at home and at work.
Customers can use their BMW and MINI charging cards to take
advantage of public charging services, providing them with
straightforward, transparent access to one of the world's larg-
est charging networks with over 250,000 charging points
across Europe, of which 48,000 are located in Germany alone,
and also include fast-charging stations with a capacity of over
150 kilowatts (kW). The IONITY European high-power charging
service can also be accessed via BMW Charging and MINI
Charging. In 2021, the BMW Group introduced a standardised
tariff structure for public charging in 22 European countries.
With the Connected Charging application, available both within
the vehicle and as a smartphone app, we also enable MINI and
BMW drivers to charge their vehicles in a predictive, convenient
and cost-efficient manner. The service provides drivers with
comprehensive information at any time, including the remain-
ing range of their vehicle and the availability of charging points.
Apart from the public charging services they offer, BMW
Charging and MINI Charging provide a standard charging
solution in the form of the Flexible Fast Charger and other
charging products designed for home use. BMW also offers
charging solutions for corporate customers in collaboration
with partners. The BMW Group itself operates one of the
largest company charging networks in Germany. Employee mobility
In addition to the BMW Charging and MINI Charging ser-
vices, we offer green electricity tariffs and attractive solar
power services for the home in certain countries, and plans
are being put in place to expand this offering to other markets.
Improving framework conditions
The BMW Group still sees a need for political action in order
to better promote electric mobility in many countries and
cities. EU market research data highlight the close correlation
between the density of charging infrastructure and the sale
of electrified vehicles - both at the level of member states
and in a comparison of various regions.
We support political initiatives in favour of sector coupling,
with the aim of forming smart connections between the mo-
bility and the energy sectors. The BMW Group is also con-
ducting its own targeted research and development work in
this area. For example, as part of a pilot project in California,
USA, customers can already use the 7 BMW Charge Forward
service to synchronise their charging behaviour with grid
capacity utilisation and the use of renewable forms of energy
(Collaboration with cities). The further expansion of this tech-
nology is planned.
Another project aimed at promoting sector coupling is so-
called Bidirectional Charging Management (BDL), which is funded by
Germany's Federal Ministry for Economic Affairs and Ener-
gy. BDL transforms electric vehicles into mobile energy stor-
age devices and thus into a part of the energy system in that
their batteries are not only able to store electricity, but also
simultaneously feed it into the operator's power grid in the
opposite direction.
Recording electric mobility over the entire life cycle
Electrified vehicles need to be as eco-friendly as possible,
not only during their use phase, but also in terms of their
overall footprint, including the supply chain. 7 Holistic manage-
ment system. In the BMW Group's case, for instance, this was
confirmed by the environmental report on the BMW iX3³:
Over its life cycle, the all-electric vehicle emits around 40%
fewer carbon emissions' than the BMW X3 30i reference
vehicle. If the battery is charged using renewable energy
only, carbon emissions are even around 67% lower.
IONITY EUROPEAN FAST-CHARGING NETWORK
In the National Platform for the Future of Mobility, which was set up
by the previous federal government, the BMW Group chaired
the working group on digitalisation for the mobility sector.
The group developed measures to make mobility more cli-
mate-neutral, efficient, convenient and cost-effective for the
future.
[ Digital connectivity and automation
Automated features and digitally connected vehicles can
help reduce emissions, the risk of accidents and traffic con-
gestion. Since 2017, the Group has been pooling the devel-
opment of assistance and automation functions at the Au-
tonomous Driving Campus, located just north of Munich. It
also operates research facilities in both China and the USA,
the BMW Group's two largest markets in terms of traffic-re-
lated as well as traffic law specifics, the very beginning. In
order to develop new technologies to maturity for series pro-
duction and expand our testing capacities, we are currently
building a new test site in the Czech Republic.
cooperation
The importance of cooperation between cities and energy
suppliers was meaningfully demonstrated in the 7 BMW
Charge Forward project in California. The project enabled us to
demonstrate that intelligently controlled charging coordinat-
ed to suit the availability of renewable energy is more envi-
ronmentally friendly, more energy-efficient and more cost-ef-
fective for the customer.
Full range
radar
(300 m).
M&DI 270E
Surround
view cameras.
O
Ultrasonic
sensors.
Short range
radars.
view camera.
Sensor-setup for driving
49
64
BMW Group Report 2021
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Combined Management Report
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Sensor-setup for parking
Surround
Front
camera (8 Mpi).
public charging points in 30 countries. ]]
Range of innovative mobility services
Together with Daimler Mobility AG, the BMW Group offers
mobility services via the joint venture YOUR NOW, which was
established in 2019. The YOUR NOW range of services in-
cludes car sharing and the use of e-scooters, e-bikes and
e-kick scooters (multimodality) as well as driving and char-
ging services and provides customers with access to the
charging infrastructure as well as to alternative means of
transportation apart from their own cars. At the same time,
they are promoting the expansion of public charging points
with their increasingly electrified range of vehicles. All YOUR
NOW subsidiaries continued to consistently develop their
activities throughout 2021 against a backdrop of pandem-
ic-related restrictions.
As Europe's largest multimodal mobility platform, FREE
NOW combines various forms of mobility in one single app.
With this strategy, the service brings registered users in
European and Latin American cities to their destination
quickly and in line with their individual needs. Apart from taxi
cabs and private ride services, e-scooters and e-kick scooters,
SHARE NOW vehicles have also been bookable via the FREE
NOW app since mid-2021. At the same time, FREE NOW is
systematically promoting the electrification of the fleet it uses.
FREE NOW intends to grow its share of electrically powered
trips to 50% by 2025 and go all-electric by 2030.
SHARE NOW is one of the pioneers in the field of car sharing
and offers vehicles for on-demand rental. In 2021, the mobil-
ity brand launched its first connection between two metro-
politan areas with the route between Rotterdam and
Amsterdam. Furthermore, SHARE NOW systematically con-
tinued to electrify its vehicle fleet during the year under re-
port and more than a quarter of its vehicles are meanwhile
powered by electricity. ]]
63
BMW Group Report 2021
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Combined Management Report
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Group Financial Statements
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← = Q
[The joint venture also includes Digital Charging Solutions
(DCS) GmbH, one of the leading developers of digital char-
ging services for car manufacturers and fleet operators in
Europe. Under the CHARGE NOW brand, DCS offers com-
prehensive access to public charging points. As a so-called
white-label solution, business customers can offer their end
customers made-to-measure access to a network of more
than 360,000 public charging points from a variety of oper-
ators in 30 countries. The BMW Group utilises the DCS offer-
ing by giving its customers access to the public charging ser-
vices provided by BMW Charging and MINI Charging at competitive
tariff rates in both Europe and Japan. The addition of the
energy company bp as DCS's third partner will make a sig-
nificant contribution towards further expanding the available
charging network.
In 2021, the YOUR NOW holding company sold its digital
parking services, which were offered under the PARK NOW
brand, among others, to the Swedish company EasyPark. 1]
AUTOMATED AND AUTONOMOUS DRIVING
At the end of 2021, the all-electric BMW iX was the first BMW Group
vehicle to offer automated driving and parking features from a new
technology kit that will also be deployed in the upcoming BMW 7
Series. With the introduction of completely new software and state-
of-the-art sensor technology - including the use of an 8-megapixel
camera for the first time in the automotive sector - customers can
now choose from around 40 driver assistance features designed to
make their driving experience more pleasant, convenient and ulti-
mately safer.
Around 1,200 engineers are working on developing and testing new,
automated driver assistance functions to achieve these aims. Around
half of these employees are highly qualified software developers. Ar-
tificial intelligence (AI) is a key technology for enabling automated
and autonomous driving. A large number of Al-based applications
are currently in use and being tested under everyday conditions.
Automated driver assistance functions are being rigorously devel-
oped at more than 12 locations worldwide (including test sites) in
order to allow for local circumstances such as regulatory, road and
climatic conditions. Regionally differing customer requirements also
play a key role.
The recently opened Driving Simulation Centre in Munich is unique
worldwide. Visitors can virtually test driver assistance systems and
automated driving functions that realistically simulate the product
requirements of the future.
[[The DCS offering includes
360,000
In October 2021, the BMW Group extended its
with the City of Rotterdam, which has been ongoing since
2018, for a further six years. One successful example of this
collaboration is the BMW eDrive Zone technology, which was
launched in 2020. BMW eDrive Zone technology
365,466
← = Q
311,137
Country
Brazil
Berlin
Chennai
Araquari
Location
BMW GROUP VEHICLE PLANTS
The BMW Group aims to strike a good balance between pro-
duction and deliveries in the various regions of the world
where it operates. While 20 of its 31 locations are BMW Group
plants, three belong to the BMW Brilliance Automotive Ltd.
joint venture in Shenyang (China), which is currently being
enlarged to create additional production capacity. Further in-
formation on the consolidation of BMW Brilliance Automo-
tive Ltd. is provided in the 7 Notes to the Group Financial Statements.
Eight production sites are operated by Group partners or
contract manufacturers.
Production sites in key markets
← = Q
Other Information
Production programme 2021
Remuneration Report
7.8
To Our Stakeholders
BMW Group Report 2021
68
69
* BMW Group production sites, including contract manufacturing at Magna Steyr
Fahrzeugteile (Austria), VDL Nedcar (the Netherlands) and Inokom Kulim (Malaysia).
The restructuring of its plant in Munich amply demonstrates
how the BMW Group is transforming itself going forward. Since
the launch of the all-electric BMW i4 in November 2021, the
BMW Group's main plant has been manufacturing vehicles with
all types of drive system on the same production line. From 2023,
at least half of all vehicles produced at the Munich plant will be
powered by an electrified drive system and the majority of these
will be all-electric models.
MUNICH
TRANSFORMING THE MAIN PLANT IN
Corporate Governance
The BMW Group production network comprises 31 locations
in 15 countries. The same high standards of quality, safety
and sustainability apply at all Group locations* worldwide.
Our state-of-the-art production facilities enable us to manu-
facture all-electric, plug-in hybrids and conventionally pow-
ered automobiles all on one line. Electric mobility is playing
an increasingly key role in this regard. For example, at the
end of 2021, electrified vehicles already accounted for some
26% of the total number produced at the BMW Group plant in
Munich.
Electrification portfolio
BMW 3 Series, BMW X1, BMW X3, BMW X4, BMW X5
BMW motorcycles
The BMW Group also awards contracts to external partners
(contract manufacturers) to produce its automobiles and
motorcycles in series. During the period under report, Magna
Steyr Fahrzeugtechnik produced both the BMW 5 Series Se-
dan and the BMW Z4 in Graz (Austria). VDL Nedcar in Born
(the Netherlands) manufactures the MINI Convertible, the
MINI Countryman and the BMW X1. BMW motorcycles are
also produced by the TVS Motor Company in Hosur (India)
and by Loncin Motor Company in Chongqing (China).
PHEV
BMW 2 Series, BMW 3 Series, BMW 5 Series, BMW 7
Series, BMW X1, BMW X3, BMW X5, BMW X7
BMW motorcycles
BEV
BEV, PHEV
BMW 3 Series, BMW 4 Series, BMW i4, BMW M
MINI, MINI Clubman, MINI Cooper SE*
United Kingdom
Thailand
Rayong
Oxford
Germany
India
BEV, PHEV
BMW 2 Series, BMW 3 Series, BMW 5 Series, BMW 6
Series, BMW 7 Series, BMW X1, BMW X3, BMW X4,
BMW X5, BMW X7, MINI Countryman
BMW 3 Series, BMW 4 Series, BMW 5 Series, BMW 6
Series, BMW 7 Series, BMW 8 Series, BMW M; BMW IX
BMW 1 Series, BMW 2 Series, BMW i3, BMW M
BMW motorcycles
Brazil
Germany
Munich
The BMW Group's automotive partner plants in Jakarta (In-
donesia), Cairo (Egypt), Kaliningrad (Russia) and Kulim (Ma-
laysia) mainly produce BMW and MINI brand models for their
respective regional markets.
Germany
Leipzig
Manaus
Germany
Dingolfing
BEV
BEV, PHEV
The BMW Group production network
Electrification, digitalisation, efficiency and sustainability
are the key factors shaping the future of the BMW Group's
production system and the main guiding principles in the
restructuring of its global production network. As production
of the all-electric BMW iX and BMW 14 models began in
2021, we rigorously attuned our vehicle assembly systems
to suit the requirements of electric mobility. At the same
time, we are benefiting from the high flexibility of our pro-
duction system. During the year under report, this agility en-
abled us to respond both swiftly and specifically to major
challenges such as the tense semiconductor supply situ-
ation and the ongoing coronavirus pandemic, despite which
we still managed to significantly increase production vol-
ume year-on-year.
PRODUCTION NETWORK
Production Network
SUPPLIER NETWORK
PRODUCTION, PURCHASING AND
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Production, Purchasing and Supplier Network
Combined Management Report
67
To Our Stakeholders
67
[ BMW CarData provides BMW
and MINI customers with
transparency and sovereignty
over any data transferred to
authorised third parties. 1]
DINNER WITH
FRIENDS AT 7PM
CALENDAR LOCATIONS
NAVIGATION IS
NOW SET TO
ISLA TAPAS
NAVIGATION
The secure transmission of data to third parties was imple-
mented with the introduction of BMW CarData in Germany
and Europe (2017) and in the USA (2020). CarData provides
BMW and MINI customers with complete transparency and
sovereignty over any data transferred to authorised third par-
ties, allowing them to decide independently at any time which
data they release to service providers such as workshops, in-
surance companies or fleet managers in order to receive indi-
vidual service offers. 1]
The BMW Group's responsibility for its products includes the
secure transfer of vehicle data to third parties. For this rea-
son, BMW Group vehicles are not directly connected to the
Internet, but communicate directly and exclusively with the
BMW Connected Drive back end via a highly secure connec-
tion in a virtual private network. This strategy enables us to
minimise the risk of unauthorised third parties gaining ac-
cess to either the vehicle or the driver's personal data. The
point of access to the Internet is controlled via a gateway. We
see this Extended Vehicle Approach in accordance with ISO
20078 as the best solution to ensure an outstanding level of
data security and protection and to meet statutory cyber-
security requirements (e. g. UN R155).
Securely connected
BMW Group Report 2021
70
Circular Economy, Resource Efficiency and
Renewable Energy
74
SUPPLIER NETWORK
PRODUCTION, PURCHASING AND
QO
AND PRODUCTION
CONSUMPTION
RESPONSIBLE
M
ECONOMIC GROWTH
ANDINFRASTRUCTURE
QINDUSTRY INNOVATION
DECENT WORK AND
is a network-based system for exchanging
information and data that creates greater
transparency in the supply chain.
* Highlight box ]]
"Catena-X
7 Preference for secondary raw materials ]]
share of secondary raw materials in our vehicles -
and that figure is set to increase.
"Up to 30%
* Carbon emissions at BMW Group locations
decrease in carbon emissions on average per
vehicle produced compared with 2019 - that is
our target by 2030.
80%
AT A GLANCE
Purchasing and Supplier Network
Regensburg
Rosslyn
Combined Management Report Group Financial Statements
Production, Purchasing and Supplier Network
Rolls-Royce Manufacturing Plant, Goodwood
-4.7
200,968
191,604
- 8.3
199,991
183,485
5.5
231,970
244,734
186,883
Change in %
20.0
433,810
2020
2021
Born (VDL Nedcar)³
Dadong (BBA)²
Tiexi (BBA)²
San Luis Potosí
Goodwood
Araquari
361,365
175,984
6.2
151,154
335,311
23.3
56,081
69,149
56.6
3,776
5,912
20.3
San Luis Potosí
Spartanburg
10,104
36.0
6,228
8,472
- 4.4
25,752
24,624
21.3
50,760
61,580
5.1
143,758
Chennai
Rayong
8,400
Munich
China
China
Country
Tiexi (Shenyang)
Dadong (Shenyang)
Location
BMW BRILLIANCE AUTOMOTIVE JOINT VENTURE (VEHICLE PLANTS)
** Additional information on consumption and carbon emissions data.
BEV from 2023
Rolls-Royce Cullinan, Dawn, Ghost, Phantom, Wraith
United Kingdom
PHEV
BMW X3, BMW X4, BMW X5, BMW X6, BMW X7,
BMW M
PHEV
BMW 2 Series, BMW 3 Series
Mexico
USA
South Africa
PHEV
BMW 1 Series, BMW 2 Series, BMW X1, BMW X2
Germany
Rosslyn
Production programme 2021
Electrification
BMW X3
BMW 1 Series, BMW 3 Series, BMW X1, BMW X2
Oxford
Leipzig
BMW 5 Series, BMW X3; BMW iX3*
Dingolfing
Regensburg
in units
BMW GROUP AUTOMOBILE PRODUCTION BY PLANT
The coronavirus pandemic had a lower impact on BMW Group
production volumes than one year earlier. However, the limit-
ed availability of semiconductor components led to adjust-
ments in the production programme. Despite these chal-
lenges, the BMW Group achieved significant year-on-year
growth during the reporting period with a production volume
of 2,461,2691 BMW, MINI and Rolls-Royce brand vehicles
(2020: 2,255,6371 units; +9.1%), comprising 2,166,6441
BMW (2020:1,980,740¹ units; +9.4%), 288,713 MINI (2020:
271,121 units; +6.5%) and a record number of 5,912 Rolls-
Royce (2020: 3,776 units; +56.6%) brand vehicles. In the
reporting year 2021, the number of electrified vehicles pro-
duced grew by 51% to 341,097 units (2020: 225,604 units).
With 187,500 units produced (2020: 168,104 units), BMW
Motorrad recorded growth of 11.5 % year-on-year.
Significant growth in production volume
The BMW Group's production network also includes engine
plants in Hams Hall (UK), Munich (Germany), Steyr (Austria)
and Shenyang (China), as well as component plants in Ei-
senach, Landshut and Wackersdorf (Germany) and Swindon
(UK). By 2024, the BMW Group intends to concentrate its
production in Europe of combustion engines at the Steyr and
Hams Hall plants.
← = Q
Spartanburg
Remuneration Report
Other Information
BMW Group Report 2021
BEV, PHEV
69
Combined Management Report
Production, Purchasing and Supplier Network
Group Financial Statements
Corporate Governance
To Our Stakeholders
PHEV
systems are also currently being tested in the painting pro-
cess and gradually introduced throughout the Group's pro-
duction network. Specific water consumption in production was
improved slightly to 2.15 m³ (2020: 2.25 m³) per vehicle pro-
duced during the year under report.
The BMW Group pursues the aim of continuously reducing
the amount of water used in its production processes. Ac-
cordingly, its production plants optimise their circulation sys-
tems, for example by treating wastewater and putting
water-saving processes in place. One example is the dry
separation system used in the paint shop. Other closed-loop
painting process and can be reduced through the use of new painting technologies.
3 VOC (volatile organic compounds) emissions are mostly generated during the
To Our Stakeholders
² Related to the total weight of the waste.
1 In accordance with the BMW Group's environmental management system, each
operator is required to describe the environmental impacts in the aspects register
and identify measures for improvement (e. g. long-term targets).
← = Q
A certified environmental management system in accord-
ance with ISO 14001 is implemented at every BMW Group
production site. A total of five competence centres, i. e. Emis-
sions, Water, Waste, Qualification and the Environmental
Management System, coordinate environmental protection
measures throughout the BMW Group worldwide. According-
ly, any ecological improvements that have proven to be effec-
tive at one location are implemented at other locations to the
extent possible. Continuous training and the exchange of ex-
periences among employees ensure the transfer of know-
ledge and the Group-wide application of the latest findings.
In the year under report, our environmental management
system again made a major contribution to ensuring that
there were no significant environmental incidents involving
the payment of fines throughout the production network.
[ Controlling resource consumption is an integral part of en-
vironmental management in the BMW Group's global pro-
duction network and managed by a dedicated steering com-
mittee for the international environmental protection network.
Each facility, area and building is assigned to an internal op-
erator, who is responsible not only for the technical systems
and the smooth running of processes and procedures, but
also for their environmental impacts'.
Other Information
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Group Financial Statements
Waste
Combined Management Report
Production, Purchasing and Supplier Network
Water
In its efforts to reduce the volume of waste it generates, the
BMW Group deploys coordinated recycling and treatment
concepts adapted to the waste streams in its various plants,
to regionally applicable regulations and to locally existing
waste disposal structures. In 2021, 99.2%² of the waste
generated by production processes was either recycled or
recovered. During the year under report, the volume of waste for
disposal per vehicle produced decreased to 2.90 kg, 12.9% lower
than the 2020 figure. We aim to maintain this high recycling
and recovery rate within the BMW Group as we increasingly
transition to electric mobility. We are therefore integrating
the newly generated waste streams in our recycling and
treatment systems. SASB-Index
The BMW Group invests systematically in the energy effi-
ciency of its global production network, enabling it to cut the
energy consumption of machines to a minimum, such as
those deployed to generate the required processing heat in
its paint shops. The limited availability of semiconductor
components compelled the BMW Group to make adjust-
ments to its production programme during the year under
The BMW Group reduced its emissions of volatile organic
compounds (VOC³) per vehicle produced by 13.6% to 0.70
kg during the period under report. The year-on-year improve-
ment was mainly due to the use of solvent-free cleaning
agents and the new thermal afterburners deployed in the
paint shops at the Group's plants in Shenyang (China) (* Sol-
vents per vehicle produced). Due to the progress made in the use
of solvent-free substances and the optimisation of our paint
shops, we expect to see a further reduction in emissions lev-
els going forward. GRI-Index: 305-71]
← = Q
BMW Group Report 2021
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Corporate Governance
Group Financial Statements
Production, Purchasing and Supplier Network
Combined Management Report
Solvents
To Our Stakeholders
73
It is vitally important to use energy in an efficient, responsible
manner in order to conserve resources. The BMW Group
has processes in place throughout the organisation to plan
and implement energy management measures with the aim
of continuously optimising its use. Clear roles are assigned
with corresponding responsibilities, targets and reporting
obligations to the central strategy departments, the regional
controlling bodies and the various production plants at local
level. ]]
Energy management and efficiency
The remaining emissions are largely due to the use of nat-
ural gas. Here we face the challenge of replacing natural gas
with non-fossil energy sources such as biogas, hydrogen or
renewable electricity. The "heat transition" required to do so
is made more complicated by the physical availability of al-
ternative energy sources, the technical retrofitting of plants,
and political framework conditions.
opportunities to further reduce these emissions lie. As in the
past, we are focusing on additional energy efficiency meas-
ures, the increasing generation of our own electricity from
renewable sources, the purchasing of green electricity from
supply contracts, and the use of certificates of origin.
An 80% average reduction of
carbon emissions per vehicle
produced by 2030.
Carbon emissions at BMW Group locations
Compared with the base year 2019, the BMW Group intends
to reduce the average amount of carbon emissions per ve-
hicle produced by a further 80% by 2030. [[ Production
accounts for biggest share of the 7 Scope 1 and Scope 2 emissions
generated by the BMW Group and this is where the greatest
BMW Group Report 2021
72
Preference for secondary materials
1 Based on vehicle weight, calculated on the basis of actual supplier feedback,
studies and expert assessments.
In this context, the BMW Group regards end-of-life vehicles
as a source of secondary materials. We therefore promote
the recovery of end-of-life vehicles, components and mater-
ials in order to reintegrate them in the raw materials cycle.
Together with its national sales organisations, the
BMW Group has already introduced take-back systems for
end-of-life vehicles in 30 countries and offers eco-friendly
vehicle recycling at more than 2,800 take-back points. All
BMW Group vehicles sold since 2008 meet the currently ap-
plicable worldwide requirements for the recycling of end-of-
life vehicles, components and materials. Vehicles are already
currently required to be 95% recyclable (based on vehicle
weight). GRI-Index: 301-3 SASB-Index
7 Average distribution of materials in BMW Group vehicles
[At the end of a product's life cycle, it needs to be possible
to increasingly separate and recycle key groups of materials
at a high degree of purity so that they can be reused in the
automotive industry in so-called closed loops. The strategy
reduces the need for primary materials and thus the neces-
sity to source potentially critical raw materials.
Re:cycle our circular economy
principles.
-
Re:think, Re:duce, Re:use,
← = Q
The BMW Group not only wants to create the basic condi-
tions for recycling vehicles, it is also looking to reduce the
use of primary raw materials in the automotive value chain.
This means closing loops in the production chain, i.e. by re-
turning production remnants to the material supplier or re-
covering materials at the end of a product's life cycle. In
doing so, we take special care to avoid downcycling these
materials into inferior secondary materials. By 2030, the
BMW Group aims to take the recycling process to a new
level, while at the same time further increasing the proportion
of secondary materials it uses to manufacture its vehicles. To
Other Information
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Group Financial Statements
Production, Purchasing and Supplier Network
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
71
ENERGY CONSUMPTION PER VEHICLE PRODUCED 1,2
Remuneration Report
achieve this aim, the BMW Group established the "Second-
ary First" approach during the year under report, which gen-
erally gives preference to the use of secondary materials
when stipulating specifications for products, materials and
suppliers. This principle can only be deviated from in justi-
fied exceptional cases.
Currently, an average of up to 30% of the components
used in vehicle manufacture across Europe originate from
recycled and reused materials. However, the percentage of
material recycled differs considerably, depending on the
group. While the recycled proportion of many plastics, for
example, is in the single-digit percentage range, secondary
cast aluminium is already used at a rate of over 50% in cer-
tain components.
The use of secondary raw materials also significantly re-
duces carbon emissions compared with primary materials –
for example around 80% of aluminium and up to 70% of
steel² are recycled. At the same time, this strategy reduces
the amount of natural resources and critical raw materials
that need to be extracted. The circularity principle also helps
to more effectively mitigate risks that can be associated with
the extraction of primary raw materials from market-
related or even political availability risks to those relating to
environmental and social standards.
Resource management at every location
The BMW Group wants to lead the way by keeping resource
consumption and carbon emissions in its production pro-
cesses to an absolute minimum. Apart from carbon emissions,
the other relevant variables are energy and water consump-
tion, waste for disposal, the use of solvents and the reduction
of solvent emissions (VOC). ]]
With this point in mind, through BMW i Ventures we have
been investing in the US start-up Lilac Solutions since 2021.
Lilac is pursuing the goal of extracting lithium from the brine
of saltwater deposits using ion exchangers, deploying a far
more eco-friendly method that conserves resources more
effectively than conventional processes. Since the year un-
der report, our investments through BMW i Ventures have
additionally focused on an innovative process developed by
the US start-up Boston Metal for producing steel without
generating carbon emissions. We have also entered into an
agreement with the Swedish start-up H2 Green Steel to pur-
chase hydrogen steel produced using green electricity.
13,9%
be
RE:CYCLE
1,4%
8,6%
WIEDERVER-
54,2%
IM AKTUELLEN BMW 3ER
MATERIALVERTEILUNG
RECYCLING
WERTUNG
The BMW Group invests, partly through its own venture capital
fund, in key technologies that can make a decisive contribu-
tion to achieving carbon neutrality and conserving resources.
Investments in resource-friendly technologies
In general, any secondary raw materials used have to meet
the same strict requirements as primary materials in terms
of quality, safety and reliability. Therefore, the market avail-
ability of these high-quality materials needs to increase sig-
nificantly. In order to improve the structural framework condi-
tions required to achieve this aim, both cross-industry
approaches and political initiatives are necessary.
7 SASB-Index
-
2 Based on the Gabi database.
in MWh
In 2014, we extended our standards to include a multistage
due diligence process. Since then, the process has included
the procurement of production materials for vehicle models
as well as risk-based, non-production-related goods and
services. Every supplier who has a direct business relation-
ship with the BMW Group is obliged to sign these require-
ments for its manufacturing and delivery locations and pass
them on contractually to its respective sub-suppliers. Specific
2.12
7 Raw Material Outlook Platform. The platform currently contains
risk profiles for ten raw materials.
[[ Alongside the required prevention measures, the BMW Group
has been offering training courses aimed at buyers, internal
process partners and suppliers since 2012. To raise awareness
of social and environmental standards in the supply chain, we
explain interdependencies and clearly describe what we expect
of the companies we work together with. Moreover, together
with partner companies, in selected cases we are breaking new
ground with the aim of taking action at the very beginning of the
supply chain. Further GRI information GRI-Index: 412-21]
TRAINING FOR THE SUPPLY CHAIN
At the instigation of the BMW Group and with the support of
other automotive manufacturers in the Drive Sustainability
initiative, in 2017 an analysis of the 37 most important raw
materials was conducted at the European business network
CSR Europe. Since then, the resulting Material Change Report
has served as the basis for potential improvements and the
development of both BMW-Group-specific and common
solutions for the automotive and electronics industries. In
2021, further improvements were made to the report on the
Standardisation and cooperation
Any information received regarding potential breaches of
the BMW Group's sustainability standards in the supplier
network is processed by the internal Human Rights Contact
Supply Chain function, where tips can be submitted anony-
mously by telephone or email. In addition, suppliers and
their employees have the option of reporting potential hu-
man rights or environmental violations to our Compliance
Ombudsman for the supplier network. Whistle-blower systems
to uncover possible violations of the law and compliance controls. A human
rights officer was appointed for the first time during the year
under report. Compliance and human rights
In the automotive supply chain, which is particularly complex
by industry standards, traceability right back to the raw ma-
terial extraction stage can be significantly improved with
new digital tools. The BMW Group is committed to driving
improvements within the framework of initiatives such as the
Catena-X Automotive Network - and is working with partner
companies to standardise data and information flows in the
automotive value chain in order to comply with antitrust-re-
lated and legal requirements. Together with partners at Cat-
ena-X and the WBCSD, we are working on solutions to
measure actual carbon emissions data in the supply chain and make
it comparable, with the aim of effectively reducing carbon
emissions in our supply chain. 1]
Since September 2021, we have supplemented our preven-
tion and remediation review methods with the standard-
ised use of RBA Voices, a grievance mechanism for em-
ployees of the companies we audit. RBA Voices will be
applied to all high-risk suppliers that are part of the RBA's
audit programme and do not yet have their own grievance
mechanism.
In addition to the preventive measures mentioned above, the
BMW Group conducts audits of environmental and social
Checking effectiveness
[By signing a contract with the BMW Group, the supplier un-
dertakes to implement and apply the preventive measures
prior to the start of production or by an agreed target date.
The supplier undertakes to demand compliance with these
agreements from his subcontractors and to follow them up.
All BMW Group supplier contracts include resource efficiency
requirements and demand compliance with the principles of
the UN Global Compact and the International Labour Organ-
isation (ILO). For this reason, the BMW Group has set itself
the goal of ensuring compliance with these commitments.
7 GRI-Index: 308-2, 412-2, 414-2
[ We require suppliers with more than 100
employees to have externally audited and
certified environmental protection man-
agement systems in place. 1]
← = Q
Other Information
standards at supplier locations in high-risk regions or for
high-risk product groups. For this reason, we are members of
the Responsible Business Alliance (RBA) and the German
Association of the Automotive Industry (VDA). Together with
other automotive manufacturers and suppliers in the VDA,
we have developed the Responsible Supply Chain Initiative
(RSCI), an assessment programme newly established for this
purpose that we will implement as of 2022.
Remuneration Report
18
BMW Group Report 2021
The BMW Group also keeps a close eye on raw materials
that are classified as so-called "conflict minerals". These in-
clude ores whose mining and trade are frequently associ-
ated with violations of environmental and social standards.
By using standardised applications such as the Conflict Min-
erals Reporting Template (CMRT) of the Responsible Miner-
als Initiative (RMI), the BMW Group ensures the traceability
of the raw materials it uses, right from the direct supplier to
the certified smelter. SASB-Index
Further measures that serve to meet our due diligence require-
ments include reducing or eliminating the use of so-called
high-risk primary raw materials. For example, we have re-
duced the use of cobalt in the cathodes of our current gener-
ation of battery cells to less than 10%. Our latest generation of
electric motors is made without the need for any rare earths.
makes them available to its own suppliers in order to produce
the current generation of battery cells. The strategy allows us
to fully document both the origin and the path of the lithium
and cobalt we use, while creating transparency regarding
mining methods at the same time.
[[ As part of the Catena-X Automotive Network initiative, the
BMW Group is working to establish an open, scalable, decentral-
ised network for the secure exchange of information and data
across companies in the automotive value chain. The network
is based on an industry consortium funded by the Federal Min-
istry for Economic Affairs and Energy (BMWK)* consisting of
national and international partners from the automotive value
chain. Continuously connected data chains will make it possible
to create completely digital images of automobiles and the core
processes of automotive value creation, so-called digital twins.
New business processes and services can be either made pos-
sible or collaboratively enhanced, based on these digital twins.
By using the European GAIA-X and International Data Spaces
Frameworks as the architectural basis for the Catena-X network,
the companies involved have already agreed on the essential in-
frastructural principles for project implementation.]]
ALLIANCE FOR CROSS-COMPANY,
DECENTRALISED DATA EXCHANGE
[[Rigorous reduction and traceability of critical raw materials
Due to the complexity of multilayered, dynamic, globalised
value chains and customer-supplier relationships, it is a major
challenge to ensure sustainability standards right from the
raw materials extraction stage. We have a clear aspiration to
comply with environmental and human rights standards at
every level of our supply chains. Sourcing the raw materials
required to produce battery cells, such as lithium and cobalt, is
generally a highly challenging task. In order to establish trace-
ability and transparency across the supply chain for both of
these raw materials and to minimise the identified risks, the
BMW Group sources them directly from the producers, and
78
Production, Purchasing and Supplier Network
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Corporate Governance
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To Our Stakeholders
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Corporate Governance
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To Our Stakeholders
BMW Group Report 2021
← = Q
76
2 The audits conducted worldwide were in accordance with the standards of the Responsible
Business Alliance (RBA) and the United States Environmental Protection Agency (EPA).
1 Direct and indirect procurement; without BMW Brilliance Automotive Ltd., Shenyang joint
venture.
accordance with ISO 45001. Our suppliers are also trained as part
of the certification process. Moreover, if we identify high-risk
suppliers, we conduct additional audits at the supplier's premises
with the help of our own assessors and external auditors. In the
year under report, we reviewed approximately 200 potential and
active supplier locations via this method². Auditing, however, was
hampered by pandemic-related travel restrictions and is thus be-
low the level of the previous year (2020:313). 1]
Our sustainability programme has fulfilled key due diligence re-
quirements since 2014. For example, as a preventive measure, the
BMW Group requires its suppliers to draw up a guideline on work-
ing conditions and human rights. Since 2019, we only commission
suppliers with more than 500 employees if they have a certified
occupational health and safety management system in place in
[[ In 2021, the German Bundestag passed the Supply Chain Due
Diligence Act, in which the BMW Group actively participated
through its involvement in the National Action Plan "Business
and Human Rights". We very much welcome the regulation that
has now been adopted and are also advocating for Europe-wide
directives that ensure fair competitive conditions.
Eastern Europe
18.3%
76
[ Obligatory sustainability standards
apply to all BMW Group suppliers
and are incorporated in the supply
contracts. 1]
The respective demands placed on us and our suppliers are
integrated throughout the Group by means of the following
internal standards:
The BMW Group Code of Conduct on Human Rights and Working
Conditions explains how we promote human rights and
good working conditions and implement the core working
standards of the International Labour Organisation (ILO).
BMW Group Report 2021
77
* Direct suppliers are tier-1 suppliers of the BMW Group. Indirect suppliers operate
downstream in the value chain between tier-1 suppliers and raw materials suppliers.
During the year under report, the BMW Group identified sus-
tainability deficits at 61% of its suppliers (2020: 64%) and
agreed on corrective preventive measures. The measures
related to subcontractor management, reporting, control
mechanisms and mission statements. 1]
and the potential risks. Direct suppliers with more than 50
employees are required to implement preventive measures
such as guidelines regarding child labour, freedom of associ-
ation, and collective bargaining as well as occupational safe-
ty and environmental protection. We require suppliers with
more than 100 employees to communicate our sustainability
standards to their suppliers and have a control mechanism
in place in the form of externally audited and certified envi-
ronmental management systems. If a supplier employs more
than 500 people, we require, among other things, the publi-
cation of a sustainability report, a code of conduct, and ex-
ternally audited and certified occupational safety and envi-
ronmental protection management systems as additional
control mechanisms.
In 2014, we agreed upon preventive measures with our direct
suppliers concerning working conditions, occupational
health and safety, human rights and the environment. The
extent of these measures is based on the size of the supplier
Preventive and remedial measures
7 GRI-Index: 308-1, 412-1, 412-3, 414-1
Our aim is to check compliance with our sustainability stand-
ards in the intermediate stages of the value chain on an ad
hoc basis. The audit is partially conducted via the supply
chain mapping of suppliers for whom an indirect risk has
been identified. Moreover, the BMW Group develops
raw-material-specific sustainability strategies and derives
so-called empowerment activities and pilot projects from
them to both ensure and improve compliance with environ-
mental and social standards.
Another component when assessing the potential negative
impacts of business activities is the Drive Sustainability
questionnaire, which is subject to continuous improvement.
In this context, both direct and indirect suppliers are required
to provide information on their sustainability performance
and the preventive and remedial measures they have imple-
mented. The information provided is checked for accuracy
and completeness by an independent third party. The infor-
mation is obtained from new suppliers as part of the contract
awarding process. Existing business relationships are audit-
ed and updated on a continual basis. Further GRI information. In
order to minimise the risks, we pay close attention to imple-
menting preventive measures. Further information is availa-
ble 7 online.
databases and standardised risk maps, and includes all sup-
plier locations that have already been awarded orders as well
as all potential supplier locations. Since 2020, the risk filter
has also included risk databases and standardised risk maps
provided by the Responsible Business Alliance (RBA). This
view of risks is supplemented by commodity-group-specific
assessments provided by our internal purchasing experts.
The BMW Group has been using a risk filter to identify human
rights risks at the locations of direct and indirect suppliers*
since 2012. In a dynamic, location-specific risk analysis, it
draws on various country- and commodity-group-specific risk
The BMW Group monitors and assesses human rights risks
and impacts in its supplier network, both in its existing busi-
ness relationships and whenever it enters a new market or
field of business. The BMW Group Due Diligence Programme
within the Purchasing and Supplier Network consists of vari-
ous coordinated procedures, measures and standardised
applications that are integrated in business processes such
as procurement.
Risk analyses on ecological and social responsibility
The BMW Group Supplier Sustainability Policy summarises the
BMW Group's principles governing the global supplier
network in accordance with internationally acknowl-
edged standards and guidelines. We regularly update the
risks we have identified in our supplier network.
Mitigating risks through industry initiatives and partnerships
Apart from eliminating, substituting or reducing the use of
risk-related primary raw materials, we rely on close cooper-
ation with our partners in the supplier network. Our aim is to
continue reducing the potential negative impacts of our busi-
ness activities in our raw materials supply chains.
[t Traceability of conflict minerals
back to the certified mine. ]]
We also expect our direct suppliers to demand minimum
standards in their chain of upstream suppliers, which has
been done for all the 37 raw materials we analysed. The
BMW Group even goes one step further in this regard be-
cause, as a precautionary measure, we are committed to
not using minerals such as cobalt that are extracted from
the deep sea. Together with other companies, we have de-
clared this in a 7 moratorium. ]]
CONFLICT MINERAL TUNGSTEN:
CLOSING MATERIAL CYCLES
invested in vocational and further training of BMW
Group employees in 2021.
€ 389 million
AT A GLANCE
EMPLOYEES AND SOCIETY
Corporate Citizenship
89
Direct link to section
Diversity
Health and Performance
83
Development
Employer Attractiveness and Employee
80
EMPLOYEES AND SOCIETY
86
18.8%
of management positions at BMW Group held by
women at the end of 2021. By 2025, the share is
expected to rise to 22%.
Direct link to section
2.17
* With effect from the reporting year 2020, a new definition of the term "employee"
is applied (see the Glossary for the definition). For the periods 2018 and older,
the percentage of employees no longer reported was between 7.5% and 8.0 %.
Strategic personnel planning serves as a tool for identifying
the need to readjust personnel and competence structures
at an early stage. The BMW Group uses this information as
the basis for making targeted improvements in the fields of
vocational and further training, personnel development, HR
marketing, recruiting and training programmes for future tal-
ents. 7 GRI-Index: Employee development, vocational and further training
to the Group Financial Statements, no. 15. At the same time, we
stepped up our recruitment efforts in 2021 with a view to en-
suring the continued availability of all the required expertise
within the workforce to ensure the planned future growth of
the BMW Group. 7 GRI-Index: 102-8
At 31 December 2021, the BMW Group employed a total of
118,909 people worldwide*, slightly below the headcount at
the end of the previous year (2020: 120,726; -1.5%). Further
GRI information This reduction was achieved through a combi-
nation of natural employee fluctuation and voluntary agree-
ments in line with planned workforce restructuring meas-
ures. For this purpose, appropriate provisions were made
which were taken into account in personnel expenses. Notes
The BMW Group's attractiveness as an employer
[The personal commitment and technical expertise of our
employees are crucial to the success of the BMW Group.
With a broad range of interesting and future-oriented jobs at
attractive conditions, we offer our employees secure pros-
pects and the opportunity to develop personally as well as
help shape the BMW Group's future. The objectives of our
Human Resources (HR) strategy have been defined with a
view to attracting skilled employees, optimising their deploy-
ment and providing them with opportunities to develop their
potential, thereby ensuring that all their skills and expertise
are available to meet the future needs of the BMW Group.
The success of this approach is borne out by the results of
employee satisfaction surveys and the outstanding positions
consistently achieved in employer rankings. 1]
EMPLOYER ATTRACTIVE-
NESS AND EMPLOYEE
DEVELOPMENT
M
ECONOMIC GROWTH
8 DECENT WORK AND
7 Direct link to section ]]
jects and other activities in conjunction with its
corporate citizenship responsibilities.
spent by the BMW Group in 2021 on social pro-
"€ 35 million
← = Q
Germany
38.4%
Other Information
Corporate Governance
Reducing carbon emissions in the supply chain
With the growing demand for electrified vehicles, the need for
suitable components and parts in production is also increas-
ing and with it the volume of carbon emissions they gener-
ate. If no countermeasures are taken, the supply chain foot-
print of an all-electric vehicle could be nearly twice that of a
conventional combustion engine model, practically eroding
part of the benefit of electric driving during the use phase. ]]
The BMW Group is reversing this trend and also intends to
reduce the volume of carbon emissions generated in the sup-
ply chain by at least 20% per vehicle by 2030 compared to
the base year 2019. [ To achieve this aim, we have been es-
tablishing decarbonisation as well as other measures among
our suppliers as an award criterion since 2020. Within this
-
[The BMW Group is actively involved in multi-stakeholder
initiatives such as the Initiative for Responsible Mining Assurance
(IRMA), the Aluminium Stewardship Initiative (ASI), the Global Plat-
form for Sustainable Natural Rubber (GPSNR) and the > Responsible
Mica Initiative (RMI) with the aim of establishing and further de-
veloping certification systems for suppliers. We therefore re-
quire certification in accordance with these standards for
prioritised raw materials in our supplier network. Online
← = Q
Other Information
Remuneration Report
TYRES MADE OF FSC-CERTIFIED NATURAL
RUBBER
Corporate Governance
Combined Management Report
Production, Purchasing and Supplier Network
To Our Stakeholders
BMW Group Report 2021
79
* Since the end of 2021: Federal Ministry for Economic Affairs and Climate Protection (BMWK).
[[ The circular economy concept is a key method for ensuring the
responsible use of raw materials and resources. For example,
since the year under report, the BMW Group has been reducing
the amount of the primary raw tungsten it requires by introducing
a closed material cycle. To achieve this aim, we collect discarded
drill and screw inserts in our German and Austrian plants, recycle
them, and have new tools manufactured from the secondary
raw material obtained. Apart from reducing our consumption of
primary raw materials, the strategy also cuts carbon emissions.
7 SASB-Index ]]
Group Financial Statements
[I In 2021, the BMW Group introduced the use of FSC-certified
tyres on a first vehicle model - the BMW X5 xDrive45e plug-in
hybrid² FSC-certified tyres made of natural rubber, making
the BMW Group the first automotive manufacturer in the world
to equip its vehicles with tyres based on sustainable, certified
natural rubber and rayon - a wood-based material used to re-
inforce tyres. ]]
framework, we bindingly agreed corresponding measures for
429 contracts awarded in the course of 2021.
One of the most effective ways of decarbonising the supply
chain is the use of green electricity. For this reason, in 2020,
we entered into contractual agreements with battery cell
manufacturers to use only energy generated from renewable
sources to produce the current generation of battery cells. In
2021, the BMW Group also introduced green electricity as a
mandatory criterion for awarding new contracts in its supply
chain and has already concluded green electricity agree-
ments in the awarding of 427 orders, particularly with up-
stream suppliers of energy-intensive products.
Group Financial Statements
Combined Management Report
Employees and Society
To Our Stakeholders
BMW Group Report 2021
80
27 Consumption and carbon emissions data.
1 Average per vehicle produced; figure rounded for simplification purposes. The
target validated in conjunction with the SBTi is 22%.
7 GRI-Index: 308-1, 308-2, 414-21]
The BMW Group has integrated the assessments of the CDP
Supply Chain Programme in its key purchasing processes.
The results are used in supplier discussions, in strategic
management discussions and in the overall supplier strat-
egies to point out potential for improvement. They also form a
basis for determining the group of bidders in purchasing
strategies when awarding contracts. The BMW Group uses
the CDP's assessment to support and further encourage its
own suppliers to implement the Paris Climate Agreement.
Suppliers who have participated for some time generally at-
tain a significantly improved CDP rating.
Supply Chain Programme increased from 218 to 250 sup-
pliers, which covers 80% (2020: 79%) of the BMW Group's
production-relevant purchasing volume. Some 34% of sup-
pliers (2020: 29%) had at least a 2-degree-compliant target
system in place and 38% (2020: 35%) of suppliers received
at least a B rating. As in previous years, in 2021 the average
CDP rating among the BMW Group's participating suppliers
was a score of C.
at least 20% by 2030 (base
year 2019).
We aim to reduce carbon
emissions in the supply chain by
Carbon Disclosure Project (CDP) for supplier empowerment
Through its participation in the CDP Supply Chain Pro-
gramme, the BMW Group has been motivating its suppliers
to operate sustainably since 2014 and, for example, to use
renewable energy in their production processes. The core of
the programme is an annual report, which includes a variety
of climate-related aspects such as decarbonisation and in-
creasing the percentage of renewable energy used. The
BMW Group strongly encourages its suppliers to set targets
in line with the Paris Climate Agreement in their efforts to
help limit global warming. Together with the BMW Group's
specified target for decarbonising the supply chain, this led
to a further significant increase in supplier commitment.
For example, year-on-year, supplier participation in the CDP
These measures have already enabled the Group to reach
agreements that cut carbon emissions² by well over 20 million
tonnes during the period from 2021 to 2030. For example, car-
bon emissions generated in the supply chain to produce bat-
tery cells for the BMW iX have been reduced by up to 1.5 t CO₂
per vehicle, simply by agreeing to use green electricity to man-
ufacture them. The implementation of the strategic target was
incorporated in the necessary areas across the Group in 2021
and will be measured and reported in future by using the key
parameter of carbon emissions per vehicle produced.
-
Remuneration Report
Other
1.3%
Group Financial Statements
The main reason for the drop in relative carbon emissions
per vehicle produced was improved energy efficiency on the
back of higher production volumes following the pandem-
ic-related restrictions. From mid-2021, however, supply
bottlenecks for semiconductor components and the necessary
adjustments to the production programme dampened the
positive trend. As a result, absolute carbon emissions³ at
BMW Group locations increased to 766,153 t of CO₂ (2020:
734,710 t of CO2) due to the overall increase in energy con-
sumption relating to higher production volumes. In the previ-
ous year, consumption and production volumes were signifi-
cantly lower due to pandemic-related restrictions. In the first
half of 2021, the cold weather in Germany also led to greater
energy requirements for heating and thus to an increase in
carbon emissions. GRI-Index: 305-1, 305-2, 305-3, 305-5
BMW Group Report 2021
75
[t Global network and local procurement
Global purchasing, the management of international suppli-
er relationships, in-house component production and the
efficient management of challenges within the supplier net-
work are key factors in ensuring stable supplies to our pro-
duction sites. At the same time, Purchasing ensures the fu-
ture viability of the BMW Group by rigorously aligning the
supplier network with strategic future topics such as digital-
isation and electric mobility, while securing the required pur-
chasing volume. 1]
The BMW Group's supplier network comprises over 32,000
direct supplier locations worldwide, with whom we maintain
direct supplier relationships. Our rigorous partner selection
process is based on the criteria of quality, innovation, flexi-
bility, cost and sustainability. To meet the respective due dili-
gence requirements in terms of environmental and social
standards, we rely on systematic risk analyses as well as
prevention, empowerment and remediation measures. We
also use standardised online assessments and audits that
are integrated in our business processes. Moreover, the
BMW Group enshrines its obligatory sustainability standards
in all its supply contracts. 1] We have set ourselves the goal of
reducing carbon emissions in the supply chain by at least
20% by 2030 (base year 2019), while simultaneously in-
creasing the use of secondary materials.
PURCHASING AND
SUPPLIER NETWORK
Since the beginning of 2021, in cooperation with transport
service providers, the BMW Group has been using low-car-
bon liquefied natural gas (LNG) on certain European trans-
port routes to cover its production requirements. Depending
on availability, we are gradually increasing the biogenic con-
tent of the LNG fuel we use. At the same time, we are in-
creasing the volume of products transported by rail: around
half of the vehicles produced leave our plants by rail.
[Carbon emissions relating to transport logistics
As part of the Green Transport Logistics project, the
BMW Group is aiming to make transport logistics cli-
mate-neutral, both within the production network and for ve-
hicle deliveries. The carbon footprint and the use of car-
bon-efficient energy and modes of transport play a significant
role in this regard. We are therefore making a major contribu-
tion to transforming the transport sector, pursuing a techno-
logically open, innovative approach across all modes of
transport. In order to ensure sufficient supplies between our
plants, however, we were compelled to increase the year-on-
year use of air freight during the reporting year due to issues
relating to the supply of semiconductors.
2021
2020
2019
0
0.33
0.35
0.40
in t
To Our Stakeholders
CO2 EMISSIONS PER VEHICLE PRODUCED 1,2
Combined Management Report
Corporate Governance
IMPLEMENTATION OF THE SUPPLY CHAIN DUE DILIGENCE ACT
North America
20.1%
Rest of Western
Europe
15%
6.9%
Asia/Australia
in € billion
REGIONAL DISTRIBUTION OF BMW GROUP
PURCHASE VOLUMES¹
Management system and mission statement
The BMW Group is committed to respecting internationally
recognised human rights and is guided, among other things,
by the UN Guiding Principles on Business and Human
Rights, the OECD Due Diligence Guidance for Responsible
Business, and the German government's National Action
Plan as well as the Supply Chain Due Diligence Act derived
from it Worldwide Implementation of Labour Standards and Human
Rights.
Further GRI information GRI-Index: 308-1, 414-1 SASB-Index
requirements are set out in the BMW Group Supplier Sustainability
Policy, the order documents and the contract documents.
These requirements must be implemented prior to the start
of production or by the agreed target date.
Taking ecological and social responsibility
The BMW Group sees itself as a pioneer in terms of corpo-
rate due diligence in its supplier network. Back in 2008, we
defined a comprehensive draft of preventive measures, in-
cluding contractual obligations to comply with environmental
and social standards, and stipulated them for the first time
when selecting suppliers for the BMW i3. We have also de-
fined and implemented raw-material-specific sustainability
requirements for certain components.
[t The department Purchasing and Supplier Network is re-
sponsible for the worldwide procurement and quality assur-
ance of production materials, raw materials, capital goods
and services as well as the production of vehicle components
manufactured in-house. The BMW Group follows the princi-
ple of sourcing vehicle components as closely as possible to
its production sites. Efficient teams are in place in all major
purchasing markets in order to identify risks swiftly and re-
spond flexibly and at short notice to changing market situa-
tions. Close cooperation with our suppliers in a spirit of part-
nership was one of the factors that enabled us, for example,
to cushion the effects of the global semiconductor shortage
to a large extent. In order to secure long-term supplies in this
area, the BMW Group concluded a direct agreement with
semiconductor suppliers for the first time at the end of 2021.
The agreement enables the BMW Group to secure the supply
of several million semiconductors per year. Overall, however,
the supply situation for semiconductor components will again
remain tight in 2022.
← = Q
Other Information
Remuneration Report
Group Financial Statements
Production, Purchasing and Supplier Network
"Figure rounded for simplification purposes. The target percentage validated in
conjunction with the SBTi is 22%.
3 As of 2021, this figure also includes the carbon emissions of all other BMW Group
locations in addition to those generated by production processes. For comparison
purposes, the figure for 2020 has been adjusted accordingly (2020 before adjustment:
652,795).
2 As of 2021, this figure also includes the carbon emissions of all other BMW Group
locations in addition to those generated by production processes. For comparison
purposes, the figure for 2020 has been adjusted accordingly (2019 before adjust-
ment: 0.30 t; 2020 before adjustment: 0.23 t).
Energy consumption in detail
7 GRI-Index: 302-1, 302-3, 302-4
report, which also negatively impacted energy consumption
per vehicle at some of its plants. For this reason, absolute
consumption³ within the BMW Group increased to 6,476,955
MWh during the year under report (2020: 6,040,824 MWh).
However, at 2.10 MWh per vehicle produced, specific energy
consumption in the BMW Group's vehicle production fell by
0.9% in 2021 compared to 2020. This fact is attributable to
various energy efficiency measures as well as improved pro-
duction capacity utilisation.
At present, however, the BMW Group is unable to entirely
cover its electricity requirements by producing its own re-
newable energy, and therefore purchases additional power
from renewable and predominantly local or regional sources.
We cover an increasing proportion of our electricity require-
ments through so-called Power Purchase Agreements
(PPAs), i. e. direct purchases from defined renewable energy
generation plants, such as the regional green electricity
bought in to manufacture the BMW iX and the BMW i4.
The BMW Group is committed to the use of renewable ener-
gy at all its locations. Worldwide, all BMW Group production
sites and the vast majority of its other locations procure
their electricity from renewable self-generation plants, direct
supply contracts for green electricity, and electricity of certi-
fied origin. We also made additional use of biogas certifi-
cates in the year under report. Moreover, we are increasing
the amount of renewable energy generated at our own sites.
Additions made during the reporting year included large-
scale photovoltaic installations at our plant in Araquari, Bra-
zil, which generate some of the electricity required for pro-
duction at the site.
Renewable energy
2021
2020
2019
2018
2017
0
|
2.10
2.12
|
COMPENSATION OF SITE-RELATED CARBON EMISSIONS
1 Efficiency indicator calculated from the absolute energy consumption (adjusted for CHP
losses) of automobile production (BMW Group plants incl. BMW Brilliance Automotive Ltd.
joint venture, excluding partner plants and contract manufacturing) divided by the number
of units produced in automobile production (BMW Group plants incl. BMW Brilliance
Automotive Ltd. joint venture and partner plants, excluding contract manufacturing).
2 Figures for 2017 and 2018 figures were subjected to a limited assurance review.
3 As of 2021, this figure also includes energy consumption at further BMW Group loca-
Efficiency indicator calculated from the absolute energy consumption (adjusted
for CHP losses) of automobile production (BMW Group plants incl. BMW Brilliance
Automotive Ltd. joint venture, excluding partner plants and contract manufacturing)
divided by the number of vehicles produced in automobile production (BMW Group
plants incl. BMW Brilliance Automotive Ltd. joint venture and partner plants, exclud-
ing contract manufacturing).
Carbon emissions at BMW Group locations
Year-on-year, the carbon emissions per vehicle 12 generated
at BMW Group locations fell by 5.7% to 0.33 t of CO₂ (2020:
0.35 t of CO₂), i. e. a reduction of 17.5% compared with the
2019 base year.
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Total
Combined Management Report
Production, Purchasing and Supplier Network
BMW Group Report 2021
74
cation process, projects are required to demonstrate, for exam-
ple, the permanence of the decarbonisation impact they achieve.
Another vital criterion is additionality, i. e. proof that the project
in question would not have come about without financing via
carbon offsetting certificates. Furthermore, for the post-Kyoto
phase of the carbon offsetting market, we emphasise the import-
ance of ensuring that there is no double counting of the emissions
saved alongside the nationally determined contributions of the
affected countries named in the Paris Climate Agreement. We
also ensure that the projects additionally generate a social ben-
efit. 7 GRI-Index: 305-51]
[[ The carbon emissions generated within its own production
network are already below the 1.5°C path calculated for the
BMW Group. Since the year under report, the BMW Group has
been making the remaining carbon footprint generated by its
plants and other locations carbon-neutral on the energy bal-
ance sheet, including company cars and business trips, through
the use of voluntary offsetting certificates. Via this method, we
are demonstrably offsetting the associated carbon emissions by
supporting external projects. In collaboration with experienced
partners such as atmosfair and First Climate, we support climate
protection projects that meet strict criteria. As part of the certifi-
5 To the extent recordable in the carbon footpring; market-based-method according to
GHG-Protocol.
for 2020 has been adjusted accordingly (2020 prior to adjustment: 5,714,610 MWh).
"Including BMW Brilliance Automotive Ltd., Shenyang.
tions as well as energy consumption in production. For comparison purposes, the figure
To Our Stakeholders
€ 64.1 billion
2.04
34,646
17.2
19.3
17.2
19.5
17.8
19.7
18.8
0
2017
2018
2019
Group Financial Statements
2020
2021
Management positions
Entire workforce
by 2025, namely to 22% for the BMW Group and 20% for
BMW AG. By 2025, we aim to increase the share of women
in the BMW Group workforce as a whole to between 20 and
22% and to between 17 to 19% for the BMW AG.
The share of women in management functions¹ within the
BMW Group has been rising steadily for many years. Global-
ly, the share of female managers in the BMW Group stood at
18.8% at the end of 2021 (2020: 17.8%). At BMW AG, the
number of women in management functions has more than
doubled between 2011 and the present day. Expressed as a
percentage, the share of female managers at BMW AG was
17.5% at the end of the period under report (2020:16.2%).
The share of women in the BMW Group workforce as a whole
reached 19.7% (2020: 19.5%). At BMW AG, women ac-
counted for 16.0% of the total workforce (2020: 15.9%)
Further GRI Information.
2017
Management positions
2018
2019
2020
2021
Entire workforce
16.0
[The BMW Group is also aware of the need to achieve a
high percentage of women in our future talents programmes.
The aim is to ensure that the share of women in the total
workforce and in management functions continues to rise in
the future. The share of women participating in the trainee
programme (Global Leader Development Programme) in-
creased to around 47% in 2021 (2020: 42%). By contrast,
the percentage in student proportion programmes (Fastlane,
Speed Up) fell slightly to around 32% (2020: 33%). 1]
19.9
16.0
17.5
Corporate Governance
Combined Management Report
Employees and Society
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
BMW AG regularly compares the monthly salary levels and
variable remuneration of women and men employed by the
Company. The respective degree of employment and func-
tional level are also taken into account. The objective of the
audit is to ensure that the remuneration structures result in
fair pay. There were no significant differences in the overall
remuneration package between the genders within BMW AG
in the year under review. GRI-Index: 405-21]
Increasing the share of women
The BMW Group is working continuously to increase the
share of women in the workforce as a whole and in manage-
ment functions in particular. This remains a challenging task
in that it is still the case that more men go through the pro-
cess of vocational training, particularly in technical fields,
and are therefore in the majority on the labour market.
The BMW Group has set targets for the percentage share of
women at all levels of the Company. We have raised our tar-
gets for the percentage of women in management functions
Share of women in manage-
ment functions in the
BMW Group at 18.8 %.
PERCENTAGE OF WOMEN IN MANAGEMENT
POSITIONS AND IN THE TOTAL WORKFORCE AT
BMW AG²
in %
PERCENTAGE OF WOMEN IN MANAGEMENT
POSITIONS AND IN THE TOTAL WORKFORCE OF THE
BMW GROUP²
in %
16.1
14.0
16.5
15.1
15.7
15.5
15.9
16.2
19.3
33,229 33,631
1 Regarding the term "management function" please see the Glossary.
2 The new definition of the term "employee" is provided in the Glossary.
BMW Group Report 2021
90
3 The BMW Group's corporate citizenship activities are divided into three main
areas: donations (comprising cash and non-cash contributions), community in-
vestments (including expenditure on our own project initiatives and partnerships
as well as corporate volunteering) and commercial activities (covering activity
and event sponsoring undertaken to promote culture, sports and sustainability).
Commercial activities also include cause-related marketing.
"In the form of cash and non-cash contributions.
2 Of which approximately €900,000 was called upon in 2021.
1 The number of people supported by projects is provided by the award winners
at the end of each year. It is calculated based on combined data from media and
sources. The figure reported relates only to the people who benefit directly from
the projects concerned.
lasting contribution towards more equal opportunity. The
BMW Group bases its funding approach on the specific
needs and requirements at each location. During the year
under report, the BMW Group supported a range of educa-
tional projects for example in China, India, South Korea,
Russia and the USA. Further information is provided and ad-
ditional projects described on the website 7 BMW Group Cor-
porate Citizenship. ]]
Science /
Education
57.8%
Politics
0.1%
€ 16.6 million
Total
Remuneration Report
Society /
Community
9.6%
Culture
1.4%
Sports
6.2%
Environment /
Sustainability
in € million
[[DONATIONS WORLDWIDE
2021
2020
2019
2018
2017
0
90
89
BMW Group Report 2021
Combined Management Report
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Employees and Society
CORPORATE CITIZENSHIP
[As a corporation with a multinational workforce and loca-
tions on six continents, we are very much a part of society.
For this reason, our ecological, economic and social respon-
sibility extends beyond our core business. The main focus of
our corporate citizen activities at our international locations
is to make a contribution towards achieving better living con-
ditions, educational opportunities and greater intercultural
understanding. Through a broad range of activities, we also
contribute towards the attainment of the UN's Sustainable
Development Goals.
BUILDING BRIDGES BETWEEN CULTURES
[[ As an enterprise with global operations and a highly diverse
workforce, we have a keen interest in encouraging tolerance
and understanding between various nations, cultures and reli-
gions. Together with the United Nations Alliance of Civilisations
(UNAOC), since 2011 we have regularly presented the Intercul-
tural Innovation Award. The Award is given in recognition of pro-
jects that seek constructive solutions to intercultural tensions
and conflict.
The BMW Group's target is to reach a total of six million people
by 2025 with the award-winning projects. By the end of 2021,
the award-winning projects will already have benefited around
5.7 million people (2020: 5.1 million people).' The BMW Group
therefore considers it is well on the way to exceeding the target
it has set itself. ]]
Our aspiration
The BMW Group aspires to address concrete needs and
achieve a long-term impact by means of its corporate citi-
zenship activities. We therefore focus primarily on projects
where our expertise can be best leveraged to make a pur-
poseful contribution. In the event of a crisis, we also provide
fast and unbureaucratic assistance. During the year under
report, for instance, the BMW Group made € 1.5 million
available for rescue services in connection with the flood dis-
aster in Germany.²
The BMW Group's expenditure on corporate citizenship ac-
tivities in 2021 totalled € 34.6 million (2020: € 33.6 million).
These include social projects, communication activities,
sponsorship of cultural and sporting events, and donations
of various kinds.
Improving prospects for life with educational projects
At its various locations, the BMW Group develops education-
al projects that facilitate young people's first steps into the
labour market and, in this way, offer them better prospects
for life. With its programmes from primary school level
through to higher education, the BMW Group is making a
[[TOTAL EXPENDITURE ON CORPORATE
CITIZENSHIP BY TYPE OF ACTIVITY3
in € thousand
Commercial Activities →
Community Investment →
Donations/
payments in kind →
37,242
33,436
To Our Stakeholders
24.9%
2020
← = Q
We encourage young talented people within the BMW Group
to use their know-how to set up their own projects to help
solve the social and ecological challenges of our day. In the
"Innovation for Impact" accelerator programme, we support
young employees who are making a valuable contribution
with innovative technologies.
Promoting innovation
The BMW Group actively involves its employees in its social
engagement activities. Over the past ten years, particularly
dedicated charitable work has been recognised with the
BMW Group Award for Social Engagement. In 2021, the
BMW Group honoured four employees for their social en-
gagement, in one case even with a special prize sponsored
by the Doppelfeld Foundation. The BMW Group Awards for
social engagement are each endowed with € 10,000 and di-
rectly benefit the projects concerned.
Awards for social engagement
-
A great number of BMW Group employees around the world
are committed to social and environmental issues in a va-
riety of ways. This includes, above all, supporting education-
al projects and campaigns for the benefit of the communities
at the locations where we have operations. In order to make
it easier for employees to become involved in such activities,
the BMW Group launched a so-called Social Week in 2021,
comprising a lecture series as well as introductory events. In
addition, the creation of a Social Marketplace provides em-
ployees with a digital platform on which they are able to ob-
tain information about charitable projects and exchange
ideas with like-minded people. Environment-related initia-
tives such as collecting plastic waste, planting trees or
growing vegetables - are also a recurring feature of the pro-
jects pursued by our employees.
[Strengthening employee engagement
2018
2017
0
23.1
Illi
16.0
26.0
26.6
27.1
Number of hours
[AVERAGE HOURS OF FURTHER TRAINING1
The scale of the training initiative is reflected in the signifi-
cant increase in the number of participants compared with
the previous year. Training measures undertaken across the
BMW Group in 2021 involved a total of 1.1 million participants
(2020: 770,000). Each member of the BMW Group work-
force received an average of 23.1 hours of training during the
year under report (2020: 16.0 hours). Further GRI Information. ]]
In total, the BMW Group invested € 388.6 million (2020:
€ 279.0 million) in training and further education in the fi-
nancial year 2021. The total expense for the years 2020 and
2021 therefore exceeds half a billion euros. GRI-Index: 404-2
In 2021, the BMW Group launched the largest training initia-
tive in its history, aimed at promoting and maintaining the
ability of its workforce to perform with the requisite expertise
and ensuring the Group's long-term competitiveness. Apart
from electric mobility and digitalisation, the BMW Group is
also focusing on a number of future-oriented fields, such as
electrics and electronics, data analytics, innovative produc-
tion technologies and new working methods.
Largest training initiative in the BMW Group's history
locations.
necessitated by electrification with substantial levels of in-
vestment at its various
Inspiring Responsible Leadership -
the BMW Foundation Herbert Quandt
The BMW Foundation Herbert Quandt2 is an independent corpor-
ate foundation and, as an important partner, contributes
with its activities to the social responsibility aspirations of
the BMW Group. At the same time, the Foundation encour-
ages leaders worldwide to take action as "Responsible
Leaders" and is committed to help shape a peaceful, just
and sustainable future. The Foundation strives to promote
the UN Sustainable Development Goals. These goals also
play a key role in the Foundation's grants, collaborations and
investments, with social and sustainability-related impacts
taken into account in every investment decision. Detailed in-
formation on this process is provided in the latest Impact In-
vesting Report. Significant activities during the year under re-
port included the 7 RESPOND Accelerator programme, the Equity,
Diversity, and Belonging Week and a Responsible Leaders Lab on
the topic of Reshaping Mobility to Serve Citizens' Needs. 1]
CREATING A FORUM FOR YOUNG TALENT
ACROSS THE WORLD
[[The mission statement of the 7 One Young World network is to
meet global challenges together, while creating lasting, global
connections. This guiding principle brings together young people
from all over the world who are committed to social responsibility.
The BMW Group has been sending a delegation to the One Young
World Summit since 2016. In 2021, around 60 young employees
from the BMW Group took part in the event. ]]
[With our accelerator programme,
2021
INVESTMENT IN TRAINING AND FURTHER
EDUCATION²
in € million
389
373
370
349
279
illil
200
2017
The transformation of the automotive industry entails nu-
merous far-reaching changes. The BMW Group takes a for-
ward-looking approach to the related challenges for the
workforce structure, equally considering social, economic
and technological developments. Against this backdrop, we
strive continuously to ensure our employees have the neces-
sary skill sets, for both the present and the future. The
BMW Group is combining the transformation of expertise
2018
2020
2021
]]
1 Further training of BMW Group employees in consolidated and non-consolidated
100% subsidiaries worldwide. Data are collated on the basis of direct inputs of
participants and, to a small extent, by extrapolation. Data also include e-learn-
ing formats.
2 Vocational and further training comprises the in-house training of all BMW Group
apprentices (Glossary [Apprentices]) as well as the further training of BMW
Group employees and temporary staff at consolidated companies worldwide.
83
2 The BMW Foundation Herbert Quandt is a corporate foundation of BMW AG. The
Foundation implements its programme with the income earned on endowment
assets or received in the form of regular financial contributions from the bene-
factor. In accordance with its statutes, the independent foundation is advised
by a board of trustees, on which the Chairman of the Supervisory Board and
one member each of the Supervisory Board and the Board of Management of
BMW AG are represented.
1 Designation until 2020: BMW Group Award for Social Commitment.
engagement on the part of our
employees. 1]
[The BMW Group Award honours
particularly dedicated social
we support young employees who
are making a valuable social or
ecological contribution with innova-
tive technologies. 1]
2019
Other Information
Developing expertise for the future
Our employees represent a crucial stakeholder group for the
BMW Group. As such, we actively involve them in our cor-
porate strategy development. The internal dialogues on the
topic of sustainability, first introduced in 2020, have become
one of the main platforms used to achieve this end. At the
two dialogue events held in 2021, we provided information
and findings on sustainability topics such as decarbonisa-
tion and the social dimension of sustainability. Dialogue with
the stakeholders
2021
[Attractive employment conditions
2020
2019
2018
2017
0
4.71
5.51
2.78
2.64
3.39
as a percentage of workforce
EMPLOYEE ATTRITION RATE1
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Employees and Society
To Our Stakeholders
2019
Employees and Society
As a key factor for the BMW Group's attractiveness as an
employer, we aim to ensure that, based on their overall re-
muneration package, our employees earn above average for
the respective labour markets. To confirm this, we conduct
remuneration studies each year on a worldwide basis. The
total salary package consists of a monthly remuneration
and a variable component dependent on the BMW Group's
overall performance. We also offer additional benefits such
as Company pension schemes and an attractive range of
mobility benefits, which can differ from country to country.
7 GRI-Index: 102-35, 102-38, 102-39, 401-2, SASB-Index
The BMW Group confirmed its
position as the most popular
automotive manufacturer in
the latest ranking of the
World's Most Attractive
Employers 2021.
Employees have varying needs when it comes to organising
their work and their working hours. For this reason, the
BMW Group offers a great deal of individual personal scope
in the form of working time arrangements, including flexible
working hours, remote working, additional holidays in return
for a corresponding reduction in salary, sabbaticals, and
temporary or permanent part-time solutions. Further GRI infor-
mation During the reporting year, under the title Connected-
Works, we continued to develop a process that was started
back in 2013 to implement a diverse range of options for em-
ployees to work within a spatially flexible, autonomous and
needs-oriented environment.]]
Employee involvement
[ Despite the good progress, however, employees also
identified a number of potential areas for optimising busi-
ness processes. The results of the survey will form the ba-
sis for concrete measures that are scheduled for implemen-
tation by mid-2022. GRI-Index: 102-43
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Employees and Society
To Our Stakeholders
BMW Group Report 2021
82
The BMW Group's ideas management system as a further
opportunity for employee involvement encourages employ-
ees to contribute ideas on matters that do not fall within their
normal remit. Employee ideas that generate a positive finan-
cial effect for the BMW Group are rewarded with the pay-
ment of a bonus. In 2021, 4,810 ideas were submitted (2020:
5,980), more than a quarter of which were directly related to
sustainability - similar to one year earlier. A total of 1,318
ideas were implemented during the year under report (2020:
1,561), resulting in first-year benefits totalling € 30.4 million
(2020: €18.2 million). GRI-Index: 102-42
3 E-roaming enables electric vehicles to be charged irrespective of the provider.
1 BMW AG; departures of employees with permanent employment contracts.
At the same time, we encourage our employees to use alterna-
tive means of transport such as bicycles, including BMW Lease-
Rad arrangements. The Munich location is also served by a net-
work of Group-owned shuttle buses -30% of which are already
fully electric - that operate between the Group's various sites.
The BMW Group also subsidises the use of public transport with
the BMW JobTicket in Munich. ]]
[[The BMW Group offers its employees a variety of eco-friend-
ly mobility and commuting solutions. The creation of one of
Germany's largest corporate charging networks marks a spe-
cial milestone. The network of some 5,000 charging points at
numerous locations in Germany is available to charge not only
company and fleet vehicles, but employees' private electric ve-
hicles, too. More than 1,000 e-roaming³ charging points are also
available for use by the general public. All charging points are
powered entirely by renewable electricity sources.
EMPLOYEE MOBILITY
To Our Stakeholders
cant progress was evident in all areas surveyed. For in-
stance, the BMW Group's corporate strategy received a
very high level of approval from the workforce. Particularly
noteworthy was the fact that 84% of participants were
convinced by the strategy of integrating sustainability and
setting ambitious targets in this respect. They also sig-
nalled a high level of willingness and motivation to play an
active role in this process, with some 82% of respondents
concluding that they are optimistic about the future of the
BMW Group. 1]
[The survey conducted in autumn 2021 showed a signifi-
cant improvement in the HPO-I compared with two years
earlier. At the same time, the participation rate rose to a
record high, with some 100,000 employees or 79% of the
total workforce² taking part in the survey. Moreover, signifi-
The Group-wide survey of the workforce conducted every
two years enables employees to assess the organisation's
performance on a regular basis and from their own perspec-
tive. The assessment is performed with the aid of the High-
Performance Index (HPOI).
Results of the employee survey
Highly regarded employer ratings once again ranked the
BMW Group as one of the world's most attractive employers.
In 2021, for instance, the BMW Group was again the world's
top-ranked automotive manufacturer in the current ranking of
the World's Most Attractive Employers 2021 as rated by Universum, a
well-known study provider. Among aspiring engineers, the
BMW Group ranked third worldwide, directly after Google and
Microsoft. For IT students, the BMW Group is the only auto-
motive company among the world's top 10 employers, mostly
in competition with prestigious technology enterprises. The
BMW Group again achieved the top spot in the Trendence
Professionals Barometer for Germany in 2021.
Employer rankings and awards
2 All BMW Group employees on fixed contracts at 1 August 2021.
BMW Group Report 2021
Occupational safety along the value chain
88
Securing future talents
The BMW Group covers its recruiting requirements with the
help of future talents programmes, either with an academic
emphasis or through qualified vocational training. Trainees
are currently preparing for their future occupations within the
BMW Group in 30 skilled trades and 18 dual study pro-
grammes at 19 training locations around the world. The total
number of apprentices, dual study students and participants
in future talents programmes* remained at the high level of
4,517 in the year under report (2020: 4,672; -3.3%). In Ger-
many, some 1,200 young people began an apprenticeship or
a dual study programme in 2021 (2020: 1,200). A similar
number of apprenticeships and study places has been an-
nounced for the coming year. BMW AG continues to offer its
apprentices and dual study students permanent employ-
ment at the BMW Group's plants and headquarters after
they have completed their vocational training.
[Focus on future-oriented fields
Electrification, automation and connectivity as well as artifi-
cial intelligence (AI) are shaping and influencing apprentice-
ship and future talents training programmes offered by the
BMW Group. The relevant programme contents are therefore
updated annually to ensure that our expertise needs for the
future are adequately covered. In the year under report, for
instance, training for all vocational fields was expanded to
include fundamental aspects of cloud computing, 3D print-
ing and data analytics. At the same time, further vocational
profiles were added in 2021, such as IT specialist for data
and process analysis.
HEALTH AND
PERFORMANCE
The health and performance of employees are key factors in
the success of the BMW Group. We are therefore committed
not only to maintaining the status quo, but also to conscious-
ly encouraging improvement. Despite the coronavirus pan-
demic and the challenges it has posed, we continued to
make good progress in terms of the various health manage-
ment and occupational safety measures in place throughout
the BMW Group. Overall, for example, the accident frequency
rate decreased.
Centralised health and occupational safety management
Health and occupational safety activities within the
BMW Group are combined in the Work Environment, Health,
Group Safety and Group Data Protection unit and allocated
to the Board of Management's Human Resources and Social
Affairs area of responsibility. The managers in the various
specialist departments are responsible for all related pro-
cesses, supported and advised by the centralised health
management and occupational safety teams. ]]
* Includes SpeedUp (an undergraduate programme) and Fastlane (a master's
programme).
84
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
Employees and Society
[Health management on a holistic basis
The BMW Group bundles all measures aimed at promoting
the health and performance of its workforce within its Health
Initiative programme. Current health-related topics such as
nutrition, exercise and fitness as well as behavioural ergo-
nomics, cancer prevention or mental resilience are ad-
dressed in action days, dialogue events and training courses,
with the aim of raising employee awareness for these impor-
tant issues.
Global approach
The BMW Group places great emphasis of ensuring that all
employees have access to its in-house health services. In
Germany, these services focus on providing acute care for
employees and temporary workers during working hours. In
certain countries, however, the Group's health service also
takes on primary care tasks, such as at the sites in Thailand,
India or Mexico. The BMW Group's Company doctors also
advise employees on individual preventive measures if re-
quested to do so, and help them adapt their work environ-
MEASURES ADOPTED IN LIGHT OF THE
CORONAVIRUS PANDEMIC
2021
2020
2019
2018
An important prerequisite for ensuring that its occupational
safety and health procedures work well at all locations is the
provision of regular training to employees. Responsibility for
the training measures implemented in this field lies with the
Training Competence Centre, which comprises staff from the
occupational safety, ergonomics, environmental protection
and health management departments. The seminar curricu-
lum is drawn up in collaboration with safety specialists,
Company doctors and the BMW Group Academy. The spe-
cialised departments can also be called on to provide solu-
tions to help meet short-term needs.
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Employees and Society
Group Financial Statements
Corporate Governance
Remuneration Report
Other Information
← = Q
[Key role for managers in the transformation process
BMW Group managers have a key role to play in shaping the
ongoing transformation process. For this reason, the
BMW Group promotes personalities who have the right atti-
tude and willingness to perform, joint leadership skills and a
high degree of identification with the organisation. We en-
courage leadership skills by means of strategically aligned
management training programmes based on a uniform un-
derstanding of leadership. Apart from careers in manage-
ment, the BMW Group also offers the so-called "Expert
Career", which does not generally involve disciplinary re-
sponsibility for other employees. It focuses instead on tech-
nical, project-related or corporate topics as well as other
tasks driving the transformation process.
[[ The SARS-CoV-2 occupational health and safety regulations
applicable for Germany and the Works Agreement concluded in
2020 continued to apply in 2021. A Group-wide "Corona Manual",
which is updated regularly, provides guidelines for implementing
infection control measures. In addition to protection and hygiene
concepts, the emphasis of the prevention efforts made during
the year under report was on the vaccination of employees. The
BMW Group's health service teams carried out Covid-19 vacci-
nations at numerous international plant locations. In Germany
alone, the BMW Group carried out almost 50,000 vaccinations
in 2021. 1]
Recruiting and promoting new staff
[The recruitment and promotion
of future talents is increasingly
focused on the future-oriented
topics of electrification,
automation and artificial
intelligence. 1]
APPRENTICES AND PARTICIPANTS IN YOUNG
TALENT PROGRAMMES¹
Number
4,964
4,801
4,750
4,672
4,517
iliii
4,000
2017
Through its comprehensive range of apprenticeships, the
BMW Group creates a broad range of attractive employment
prospects for young people. Promoting future talents also
plays a key role in building up expertise within the Group. 1]
[The BMW Group requires its
suppliers to comply with
internationally recognised
occupational health and safety
requirements. 1]
[[ SICKNESS RATE¹
4.9
← = Q
[[ACCIDENT FREQUENCY RATE¹
3.6
3.5
3.5
3.2
2.8
|||||
0
2017
2018
2019
2020
[ Accident frequency
2021
The measures implemented by the BMW Group are also
helping in accident prevention terms. The accident frequency
rate dropped further to 2.8 accidents per million hours
worked (2020: 3.2). There were no fatal accidents during the
year under report (2020: one) 7 Further GRI information. The
stated goal is to have occupational health and safety stand-
ards in place throughout the Group. The success of the
plants of our joint venture BMW Brilliance Automotive Ltd.,
Shenyang, China, in this respect with their very low acci-
dent frequency rate – is a good example. 7 GRI-Index: 403-9
Recognising and avoiding risks
-
The BMW Group conducts comprehensive risk and stress
analyses in order to identify potential work-related risks in
both production and office workplaces. Pilot work continues
on the so-called Digital Workplace Stress Management sys-
tem which is used to assess ergonomic aspects of work-
places on a fully automated basis. With this project, the
BMW Group is going beyond current legal requirements and
setting the benchmark for the automotive industry. The
range of risk assessments was expanded to include a mobile
workplace analysis in view of the increased scale of working
from home.
The BMW Group uses various management systems to as-
sess the methods and tools deployed across the Group. The
results of the assessments are subsequently used to en-
hance internal norms. As part of co-determination arrange-
ments, the Works Council and, if necessary, the representa-
tives of severely disabled employees and HR management
are involved.
The BMW Group ensures the quality of its processes by
means of annual internal audits. Audits and certifications of
sites are conducted by external service providers. All neces-
sary audits were again successfully performed in 2021, re-
sulting, for example, in the elimination of defects identified in
plant and equipment. 7 GRI-Index: 403-2
Regular training for employees
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
4.6
3.7
3.4
3.4
سال
2.0
2017
2018
2019
2020
2021
in %
ment to ensure that their health and performance are main-
tained in the long term. GRI-Index: 403-3, 403-6
]]
Occupational safety and ergonomics at Group sites
Preventive measures such as safe and ergonomically fa-
vourable workplaces are well-established aspects of the
BMW Group's approach to health protection. The right to
health and safety in the workplace is also a key feature firm-
ly embedded in the BMW Group's Code on Human Rights and Working
Conditions, which includes a commitment to comply with cur-
rently applicable occupational health and safety legislation
worldwide. Furthermore, uniform standards applying to all
sites are constantly improved, and help to ensure that health
and safety requirements are consistent throughout the
Group.
[ 99.72% of employees at BMW Group
plants work at a site covered by an
international occupational health and
safety management system certified to
either ISO 45001 or OHRIS level. 1]
Certified occupational health and safety management system
In addition to international cooperation arrangements, occu-
pational health and safety activities throughout BMW Group
are coordinated on a global basis in line with a corresponding
management system that is certified to ISO 45001 or OHRIS2
level at 28 out of 31 plants. This means that 70,459 (2020:
69,092) or 99.72% (2020: 99.7%) of permanent employees
and 14,772 or 98.98% of temporary employees³ at BMW Group
plants work at a site covered by an international occupational
health and safety management system. It is the stated aim of
the BMW Group to obtain certification to one of these inter-
national standards for all of its plants by 2025. The only plants
for which this remains to be done are the Manaus plant (Bra-
zil), the partner plant in Kaliningrad (Russia) and the contract
manufacturing facility in Born (the Netherlands). Employer and
employee representatives work together at nearly all locations
to bring about a continual improvement in health and safety
standards. GRI-Index: 403-1, 403-41]
1 BMW AG; number of hours of absence due to paid sick leave divided by the con-
tractually agreed number of working hours; up to 2018, absence due to unpaid was
also taken into account. Figures up to 2018 are not comparable.
2 Occupational Health and Risk Management System.
3 Figures excluding temporary employees included in the management system.
85
BMW Group Report 2021
To Our Stakeholders
Combined Management Report
Employees and Society
One of the parameters the BMW Group uses to quantify the
success of its health management measures is the sickness
rate. At 3.4%, the sickness rate at BMW AG was at the same
level to one year earlier (2020: 3.4%). The Group continu-
ously strives to improve this figure. 7 GRI-Index: 403-10
88
It is extremely important for the BMW Group that external
partners and their employees also find a safe work environ-
ment at our locations and take advantage of the available
safety measures. For this purpose, cooperation with con-
tractual parties is regulated in a separate contractor declar-
ation, enabling potential hazards to be identified and appro-
priate protective measures to be taken on this basis. On
large-scale construction sites of the BMW Group, all employ-
ees of partner companies are given safety briefings by
BMW Group experts. In the case of smaller contracts, the
contractor is responsible for performing this duty. The de-
partment responsible for placing the order monitors compli-
ance with the occupational health and safety regulations,
supported by the relevant occupational health and safety
unit as required.
-
The BMW Group sees demographic change as both a chal-
lenge and an opportunity. Since 2019, as part of the Senior
Expert Programme, retired employees have been passing on
their knowledge and experience to their younger colleagues.
Conversely, within the Reverse Mentoring Programme or-
ganised by the BMW Group, older employees benefit from
the new knowledge of the younger generation. We train our
managers to recognise and leverage the opportunities that
mixed-age teams offer. GRI-Index: 404-2
Age and experience
People from over 110 countries work successfully together at
the BMW Group. Further GRI Information A broad range of op-
portunities for personnel development, qualification and fur-
ther training helps to promote intercultural understanding. For
example, the BMW Group deliberately gears the Global
Leader Development Programme towards international par-
ticipants. As in the previous year, new employees from eight
countries took part in the programme. Moreover, the
BMW Group uses various dialogue formats to ensure an un-
prejudiced working environment in a spirit of mutual respect.
[Cultural background
]]
21.4
63.4
15.2
female
31.9
59.2
8.8
male
28.6
63.6
7.8
indirect²
33.1
53.6
13.3
direct¹
30.3
59.9
Physical and mental abilities
In line with its core values, the BMW Group is convinced of
the need to offer an inclusive and barrier-free working envi-
ronment for employees with physical or mental disabilities.
This begins with providing training opportunities for severe-
ly disabled young people and continues by designing work-
places that meet their needs. We have reaffirmed this as-
piration in 2021 by joining the international initiative The
Valuable 500. Furthermore, in the year under report BMW AG
awarded contracts amounting to around € 24.2 million
(2020: € 25 million) to workshops staffed by people with
severe restrictions.
[[SHARE OF EMPLOYEES WITH SEVERE
DISABILITIES AT BMW AG³
in %
"The figure for 2021 comprises all orders completed and billed by 31 December
2021.
ments in accordance with the German Social Code (SGB IX).
3 The share of employees with severe disabilities is based on the statutory require-
2 All employees without clock control.
1 Clock-controlled and production employees.
]]
2021
2020
2019
2018
2017
9.8
4.0
work successfully together at
the BMW Group. 1]
[t People from over 110 countries
In 2021, the BMW Group systematically implemented the
measures decided upon in 2020 aimed at promoting women
in the workforce. One focus was placed on future talents and
executive management training programmes. Increasing the
share of women at all levels. In the Inspired Lead leadership pro-
gramme, for example, gender diversity is taken into account
in both the selection of participants and the learning content.
The option of filling management functions in tandem (joint
leadership) was also well received by employees in the first
year after the programme was introduced. In 2021, our
measures relating to the promotion of women were evaluat-
ed externally on the basis of the Women's Career Index. This
assessment confirmed the effectiveness of the measures
taken and the progress we have made.
Gender
The focus we place on sexual orientation and identity is a
clear reflection of diversity in action within the BMW Group.
An open-minded, unprejudiced and respectful working envi-
ronment is a prerequisite for LGBT+ employees to be able
to contribute their full potential. For this reason, the
BMW Group uses a range of informational events and dia-
logue formats to raise awareness of LGBT+ issues among
employees and managers. We are supported in the imple-
mentation of measures by the internal network BMW Group
PRIDE. We also send a clear signal to the outside world: in
2021, for instance, we joined the PROUT EMPLOYER net-
work of the Prout at Work Foundation and signed the UN Stand-
ards of Conduct for Business for Tackling Discrimination
against LGBTI people.
Sexual orientation and identity
6.5
6.6
|
6.4
6.3
6.5
|||||
In order to improve occupational safety at the upstream
stages of the value chain, too, the BMW Group requires its
suppliers via the agreed purchasing terms and conditions
to comply with internationally recognised occupational
health and safety requirements.² GRI-Index: 403-71]
2021 total
59.9
Diversity-promoting concepts have also been developed in
relation to the composition of the Board of Management and
Supervisory Board. Information on the stipulated diversity
criteria and their implementation is provided in the Corporate
Governance Statement. GRI-Index: Diversity and equal opportunity
Using a variety of training events, presentations and dia-
logue formats, we endeavour to sensitize employees and
managers to the positive contribution that diversity can
make to the business. The BMW Group also promotes diver-
sity and equal opportunity in its recruiting and personnel de-
velopment strategies.
specialist departments, the HR department or the Works
Council if they have any pertinent concerns. The BMW Group
SpeakUP Line is a telephone service available in over 30
languages that gives employees worldwide the opportunity
to report possible violations both anonymously and confi-
dentially (Whistleblower Systems for Detecting Possible Legal Violations
and Compliance Controls). GRI-Index: 406-1
[ A diverse workforce brings with it different
perspectives, experiences and competen-
cies – making the BMW Group more
innovative and competitive. ]]
The BMW Group places great emphasis on an unprejudiced,
appreciative and inclusive working environment for all its
employees. Key principles such as protection against dis-
crimination, equal treatment of all employees and respect at
all times are firmly embedded in the BMW Legal Compliance Code
and the BMW Group Code of Human Rights and Working Conditions. All
employees can contact their line managers, the relevant
Embedding diversity
[ The BMW Group sees diversity as a strength. A diverse
workforce brings with it different perspectives, experiences
and competencies – and can therefore make us more in-
novative and competitive as a company. For this reason, we
encourage a working environment that actively incorporates
different perspectives. We embrace diversity in all its facets
on the basis of our diversity concept. Our guiding principle is
to create “a sense of community" in which people can work
together in a spirit characterised by appreciation, mutual un-
derstanding, openness and fairness.
-
DIVERSITY
← = Q
Other Information
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
Employees and Society
To Our Stakeholders
BMW Group Report 2021
86
2 Management systems in accordance with ISO 45001 and derived from the Interna-
tional Labour Organization (ILO) or UNGC (United Nations Global Compact).
1 Number of occupational accidents with at least one day of absence from work per
one million hours worked.
worked. ]]
[12.8 accidents per million hours
81
Group-wide initiatives
The BMW Group is committed to raising awareness for di-
versity throughout the organisation. In this context, for in-
stance, we organise an annual Diversity Week, which in 2021
involved 170 activities aimed at motivating employees world-
wide to address the issue of diversity. The international com-
munication campaign Driven by Diversity was also launched
at the same time. The aim of the internal campaign is to
make the diverse identities, ways of thinking and experi-
ences of our employees visible and to embed diversity even
deeper in the corporate culture of the BMW Group and in the
mindset of its employees.
Employee engagement
Employee initiatives play a key role in ensuring that diversity
is actively practised. For example, two teams from the future
talents programme took part in the Germany-wide Diversity
Challenge of the Diversity Charter during the year under report.
One of the teams was awarded first place for developing a
diversity app.
10.4
2020 total
59.2
11.6
2019 total
30-50
years old
<30
years old
in %
[ BMW AG EMPLOYEES ACCORDING TO AGE GROUP,
DIVIDED INTO FUNCTIONS AND GENDER
> 50
years old
29.2
Employees and Society
29.7
← = Q
Remuneration Report
Corporate Governance
Group Financial Statements
Combined Management Report
To Our Stakeholders
BMW Group Report 2021
87
*Abbreviation for all sexual orientations and forms of identity.
The BMW Group takes an holistic approach to the subject of
diversity, focusing primarily on five key dimensions, namely
cultural background; age and experience; sexual orientation
and identity; physical and mental ability; and gender. The
two departments, HR Policy and Strategy and HR Oper-
ations, working together with the relevant disciplinary line
managers, are responsible for implementing the measures
decided upon. 1]
Promoting diversity
Many other employees are involved in internal networks that
have been set up, including a number of women's networks
at various locations and the BMW Group PRIDE group, which
campaigns across borders for the interests of the LGBT+*
community. Sexual Orientation and Identity The dialogue generat-
ed by the aforementioned internal networks creates further
momentum for the BMW Group's commitment to support
diversity.
Other Information
BMW Group Report 2021