BMW Group revenues for 2005 rise to new high level

Revenues up by 5.2% to euro 46,656 million/ Earnings forecast confirmed/
Sales volume expected to increase again in 2006 Munich. The BMW Group
has grown faster than the market as a whole and faster than all
relevant competitors in the financial year 2005 and has achieved new
record figures for sales volume and revenues. Group revenues rose by
5.2% to euro 46,656 million (2004: euro 44,335 million). Revenues of
the Automobile segment increased by 7.8% to euro 45,861 million (2004:
euro 42,544 million). The Motorcycles segment recorded revenues of euro
1,223 million (+18.9%; 2004: euro 1,029 million). Revenues of the
Financial Services segment increased by 14.4% to euro 9,408 million
(2004: euro 8,226 million). With 1,327,992 BMW, MINI and Rolls-Royce
brand cars sold in 2005, the BMW Group beat the sales volume record set
in the previous year by 9.9% (2004: 1,208,732 cars). Earnings
forecast 2005 In the light of this positive performance, Helmut Panke,
Chairman of BMW AG's Board of Management, confirms the earnings
forecast for 2005: "The adverse external factors - unfavourable
exchange rates, high raw material prices and intense competition -
which we reported from the very beginning of the year have been largely
offset by increased sales volume and internal efficiency improvement
measures. For the financial year 2005, we will therefore achieve
approximately the previous year's high earnings level." Sales
volume outlook for 2006 The BMW Group will continue to pursue its
successful product initiative in the future. Thanks to the strong range
of brands and products, further growth potential is forecast for the
current year: "We expect the BMW Group to remain on growth course
in the financial year 2006. Our aim is to increase sales volume yet
again and once again set a new record", Panke stated. Capital
expenditure remains at a high level Capital expenditure in 2005, at euro
3,993 million, remained at a high level, decreasing by 8.1% (2004: euro
4,347 million). Capitalised development costs recognised as assets in
accordance with IAS increased to euro 1,396 million (+24.5%; 2004: euro
1,121 million). A total of euro 2,597 million (-19.5%; 2004: euro
3,226 million) was invested in property, plant and equipment and in
intangible assets. Workforce remains constant At the end of 2005, the
BMW Group had a worldwide workforce of 105,798 employees, similar to
the high level one year earlier (-0.2%; 31 December 2004: 105,972
employees). The number of trainee positions, at 4,464, remained the
same as at the end of the previous year. Production volume increased
As a result of the higher level of sales volume, the BMW Group also
achieved new record figures in production volume terms: in total,
1,323,119 BMW, MINI and Rolls-Royce brand cars were manufactured, an
increase of 5.8% (2004: 1,250,345 units). More than 50,000 BMW 3 Series
cars were manufactured at the new Leipzig plant between March 2005,
when series production commenced, and the end of the year.
Automobiles: all brands achieve new sales volume highs The sales volume
of all brands reached record levels in 2005. The BMW Group is therefore
the most successful supplier of premium cars in the world. With its
core model series (the 3, 5 and 7 Series), the BMW brand was the
frontrunner in 2005 in each of the relevant segments. 1,126,768 BMW
brand cars were sold in 2005, surpassing the previous year's level
(1,023,583) by 10.1%. "This growth reflects the strength of the BMW
brand product portfolio and highlights the underlying strength of our
worldwide sales organisation", commented Mr. Panke. With a total
of 149,493 units sold, the BMW 1 Series enjoyed extremely high demand
in its first full year of production (2004: 39,247 units). The BMW
Group's best-selling car, with 229,932 units sold, was the new 3 Series
Limousine, which was introduced onto the market in March 2005 and
accounted for 17% of the total sales volume for 2005. In total, 434,342
units of the BMW 3 Series were sold worldwide in 2005. This means that
the previous year's sales volume was almost matched (-3.4%; 2004:
449,732 units) despite the model changes of the two best-selling
models, the 3 Series Limousine and the 3 Series Touring. With 228,389
units sold in 2005, the BMW 5 Series also came close to achieving the
previous year's high level (-0.5%; 2004: 229,598 units). The number of
BMW 6 Series cars sold rose by 10.9% to 23,340 units, well above the
previous year's level (2004: 21,040 units). In the luxury class, a
total of 50,062 BMW 7 Series cars were delivered to customers (2004:
47,689 units), an increase of 5.0%. The BMW X3 recorded strong growth:
the number of Sports Activity Vehicles delivered rose by 20.0% to
110,719 (2004: 92,248) units. The BMW X5, in its sixth year since
market launch, also remained much sought after, and with 101,537
vehicles sold, almost achieved the previous year's high level
(-3.3%/104,988 units). In total, almost 535,000 BMW X5 vehicles have
been sold since market launch in December 1999. The sales volume of the
Z4 in 2005, at 28,808 units, was below the previous year's level
(-25.1%; 38,483 units). The BMW Group presented the revised model of
this Roadster in January at the Detroit Auto Show. The new Z4
Coupé will come onto the market at the middle of 2006. For the
first time, more that 200,000 MINI brand cars were sold in a single
year, with the number of cars delivered increasing by 8.7% to 200,428
(2004: 184,357) units. The product mix of the closed version of the
MINI and of the MINI Convertible increased in value again compared to
the previous year. The brand's top model, the MINI Cooper S, recorded
the most pronounced growth, with sales volume rising by 25.8% to 56,916
(2004: 45,246) units or 28.4% of the total sales volume of the MINI.
The MINI Cooper remained the most popular model with a sales volume of
89,079 units (+1.4%; 2004: 87,875 units) or 44.4% of the total sales
volume of the MINI. 54,433 or 27.2% of customers opted for the starter
model, Mini One (+6.2%; 2004: 51,236 units). The Rolls-Royce brand
confirmed its position at the top of the absolute luxury class. 796
Phantoms were delivered to customers, slightly more than the 792 sold
in the previous year. Motorcycles sales volume also increases
significantly The Motorcycles segment was also able to achieve growth on
the back of its new models: the sales volume for the full year rose by
5.6% to 97,474 (2004: 92,266) units. Financial Services still on
growth course The BMW Group expanded its activities in the Financial
Services segment and remained on growth course in 2005. The volume of
new retail customer contracts rose by 13.2% to euro 23,507 million, and
hence reached a new record level (2004: euro 20,759 million). At 41.1%,
the proportion of new BMW and MINI cars financed by the Financial
Services segment in 2005 was marginally lower than in the previous year
(2004: 42.0%).