87 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Financial Performance COMMENTS ON THE FINANCIAL STATEMENTS OF BMW AG 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 Automotive segment provided in earlier sections apply to BMW AG, unless presented differently in the following section. The Financial Statements of BMW AG are drawn up in accordance with the provisions of the German Commercial Code (HGB) and the relevant supplemen- tary requirements contained in the German Stock Corporation Act (AktG). The key financial performance indicator for BMW AG is the divi- dend payout ratio. This corresponds to the unappropriated profit of BMW AG in accordance with HGB in relation to the profit at- tributable to shareholders of BMW AG, based on the BMW Group’s net profit for the year. The key non-financial per- formance indicators are identical and concurrent with those of the BMW Group. These are described in detail in the ↗ Comparison of Forecasts with actual Outcomes section of the Combined Manage- ment Report. Differences in accounting treatments based on HGB (used for the Company Financial Statements) and the International Finan- cial Reporting Standards (IFRS) as adopted by the European Un- ion (used for the Group Financial Statements) are mainly to be found in connection with the capitalisation of intangible assets, the measurement of property, plant and equipment and invento- ries, the creation of valuation units, the recognition and measure- ment of financial instruments and provisions as well as the recognition of deferred tax. Differences also arise in the presen- tation of assets and liabilities and of items in the income state- ment. Business environment and review of operations The general and sector-specific environment of BMW AG is the same as that of the BMW Group and is described in the ↗ General and Sector-specific Environment section of the Combined Manage- ment Report. BMW AG develops, manufactures and sells automobiles and motorcycles as well as spare parts and accessories manufac- tured in house, by foreign subsidiaries and by external suppliers, and performs services related to these products. Sales activities are carried out primarily through branches, subsidiaries, inde- pendent dealerships, agents and importers. Automobile deliver- ies decreased by 73,330 units to 2,547,590 units in the finan- cial year 2024. This figure includes 586,016 units relating to se- ries sets supplied to BMW Brilliance Automotive Ltd., Shenyang, a decrease of 106,251 units compared with the previous year. As at 31 December 2024, BMW AG had 87,823 employees, plus 5,942 apprentices, interns and thesis students (31 Decem- ber 2023: 85,168 employees, plus 5,733 apprentices, interns and thesis students). The BMW Group had a strong first half of 2024 in line with ex- pectations. Business then slowed over the remainder of the year due to delivery stops and recalls linked to the Integrated Brake System (IBS) provided by a supplier, as well as ongoing muted demand in China. Maintaining a consistent focus on technology openness allows the BMW Group to develop innovative drive technologies and to respond in a flexible manner to market developments. BMW AG believes it is well-positioned on the basis of its robust strategy, balanced product range and continuous investment in research and development. BMW AG’s solid financial condition is reflected in the results of operations, financial position and net assets reported for the fi- nancial year 2024. Business developed in line with manage- ment’s adjusted expectations. This assessment also takes into account events after the end of the reporting period.