The principal objective of these management processes
is to increase planning reliability for the BMW Group.
Price risks and opportunities relating to precious metals
(platinum, palladium, rhodium) and non-ferrous
metals (aluminium, copper, lead) and, to some extent,
to steel and steel ingredients (iron ore, coke/coal) and
energy (gas, electricity) are hedged using financial
derivatives and/or supply contracts with fixed pricing
arrangements.
If risks relating to raw materials were to materialise,
they could have a medium earnings impact over the
two-year assessment period. A high level of risk is attached
to risks relating to raw materials.
Conversely, significant opportunities can arise if
prices of raw materials develop favourably for the
BMW Group.