Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Day (October 2012)
35 slides from Bayerische Motoren Werke's investor day presentation, Oct 19, 2012
Slide 1: BMW Group in China
BMW GROUP IN CHINA DR. CHRISTOPH STARK PRESIDENT & CEO BMW GROUP REGION CHINA OCTOBER 19, 2012
Slide 2: Contents
CONTENTS. – Market review – The BMW business model – Outlook BMW Group in China, Dr. Stark, Oct 19, 2012 Page 2
Slide 3: Economic development supported by growing urbanization in China
ECONOMIC DEVELOPMENT HAS BEEN SUPPORTED BY GROWING URBANIZATION IN CHINA. China cities – brief introduction (2010) 9 cities population > 10 million 89 cities population 5-10 million 176 cities population 1-5 million 350 million people will be added to China’s urban population by 2025 (more than the
Slide 4: China GDP growth is cooling down
CHINA GDP GROWTH IS COOLING DOWN. China GDP growth (2010~2012 YTD) (%) 11,9 10,3 9,6 9,8 9,7 9,5 9,1 8,9 8,1 7,6 7,4 Sustained Growth? ~7.5% 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12 Q2 12 Q3 BMW Group in China, Dr. Stark, Oct 19, 2012 Source: National Bureau of Statistics of China Page 4
Slide 5: All city tiers show continued growth, especially lower tiers
ALL CITY TIERS SHOW CONTINUED GROWTH WITH ESPECIALLY STRONG DEVELOPMENT IN THE LOWER CITY TIERS. GDP growth and GDP per capita of different city tiers in 2007 and 2011 GDP growth 22% Tier 4 20% Tier 5 2007 Tier 2 Tier 3 Tier 1 18% Tier 5 Tier 4 16% Tier 3 2011 Tier 2 Tier 1 14% 12% 0 10,000 20,000 3
Slide 6: Car density differs between regions and city tiers in China
CAR DENSITY DIFFERS BETWEEN REGIONS AND CITY TIERS IN CHINA. PV Ownership per 1000 people in 2011 PV Ownership per 1000 people by city tier in 2011 (Units) (Units) 480 418 126 94 China national 54 average:44 28 20 > 150 units Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 EU US 50~150 units 30~50 units < 30unit
Slide 7: PV market growth slowed, continued strong plus segment growth
PV MARKET GROWTH SLOWED, BUT CONTINUED STRONG PLUS SEGMENT GROWTH. PV Market Growth Plus Segment Growth (‘000 Units) PV sales (‘000 Units) Plus segment sales +12% +37% 12,110 966 CAGR: +31% CAGR: +42% 10,859 707 8,284 5,382 417 4,825 306 246 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 BMW Grou
Slide 8: Chinese customers are getting wealthier and willing to spend on luxury
CHINESE CUSTOMERS ARE GETTING WEALTHIER AND ARE WILLING TO SPEND – ON LUXURY. Population with assets valued over 1 Ranking of luxury goods consumption Million Dollars in China (Unit: ‘000) +10% +6% 960 1. Japan 875 825 2.China 3. US 4. … China to overtake Japan as the world's top luxury 2009 2010 20
Slide 9: BMW & MINI outperforming the premium segment's growth
BMW & MINI HAVE SUCCESSFULLY DEVELOPED OVER THE YEARS, OUTPERFORMING THE PREMIUM SEGMENT’S GROWTH. BMW Group Sales Development (2007-2011) ( ‘000 Units) BMW MINI 237 233 Premium segment CAGR: 41% – We will sell the 1 millionth 169 CAGR: +46% BMW in 2012 Q4 – We surpassed 2011 FY in September 2012 91
Slide 10: 2012 YTD September market status
2012 YTD SEPTEMBER MARKET STATUS. BMW GROUP HAS OUTPERFORMED THE PREMIUM SEGMENT. Total passenger car market Premium segment BMW+MINI ‘000 Units +34% +8% +27% 237 9,432 894 8,735 704 178 220 166 12 17 2011 YTD Sep 2012 YTD Sep 2011 YTD Sep 2012 YTD Sep 2011 YTD Sep 2012 YTD Sep BMW Group in China, D
Slide 11: Contents
CONTENTS. – Market review – The BMW business model – Outlook BMW Group in China, Dr. Stark, Oct 19, 2012 Page 11
Slide 12: BMW in China. Our growth path
BMW IN CHINA. OUR GROWTH PATH. BMW China milestones 1994 2005 2006 2010 2012 Opening BMW Opening E-office Opening International Business commencement New Designworks studio Rep. Office Purchasing Office Auto Finance 2003 2005 2006 2009 2010 2012 2012 Start of JV Establishment Opening BMW Plant Phase
Slide 13: Multiple entities, one face to the customer
MULTIPLE ENTITIES, ONE FACE TO THE CUSTOMER. Customer / Point of Sales/ Market Dealers BMW Brilliance BMW China BMW Automotive Automotive Ltd. Automotive Trading Finance Ltd. Ltd. BMW Group in China, Dr. Stark, Oct 19, 2012 Page 13
Slide 14: BMW product lineup
BMW PRODUCT LINEUP. MOST BMW GROUP PRODUCTS ARE ALREADY OFFERED IN CHINA. Locally-produced Imported BMW Group in China, Dr. Stark, Oct 19, 2012 Page 14
Slide 15: MINI product lineup
WOW! MINI in China 2010! mini Product Lineup. Exciting MINI products in China. BMW Group in China, Dr. Stark, Oct 19, 2012 Page 15
Slide 16: Localized product lineup. Significant product updates
LOCALIZED PRODUCT LINEUP. SIGNIFICANT PRODUCT UPDATES. International Engine of the Year Awards 2012 Best 1.8-2.0L Engine THE 2013 5 SERIES LONG WHEELBASE BMW Group in China, Dr. Stark, Oct 19, 2012 Page 16
Slide 17: Localized product lineup. Excellence of all-new 3 Series
LOCALIZED PRODUCT LINEUP. EXCELLENCE OF ALL-NEW 3 SERIES. Launched on July 13th, 2012 Standard wheelbase - The genuine sports sedan Sport Line Extended wheelbase - The luxurious sports sedan Luxury Line Modern Line – Space and Functionality. – BMW EfficientDynamics. – BMW ConnectedDrive. – Driving D
Slide 18: Localized product lineup. Significant product updates
LOCALIZED PRODUCT LINEUP. SIGNIFICANT PRODUCT UPDATES. – BMW is the pioneer of this segment: X1 launched at the end of 2009 – Sales of locally-produced model since March 3, 2012 – BMW is ready to launch the new X1 in late 2012 Media Feedback: – BMW X1 is equipped with the new and advanced BMW techno
Slide 19: Product updated. 7 Series LCI
PRODUCT UPDATED. 7 SERIES LCI. – Elegant and sophisticated appearance – Interior: sheer luxury and best-in-class noise insulation – Pneumatic suspension with new chassis – Even more efficient and powerful – BMW ConnectedDrive BMW Group in China, Dr. Stark, Oct 19, 2012 Page 19
Slide 20: New iDrive with touch pad and new ConnectedDrive features
THE NEW IDRIVE WITH TOUCH PAD AND NEW CONNECTEDDRIVE FEATURES. New iDrive with touch pad and next generation navigation system New Navigation Professional with Real Time Traffic Info (RTTI) via integrated phone module New Internet based functions BMW Online Baidu Map search POI Send to car BMW Group
Slide 21: Understanding the diverse customer base
UNDERSTANDING THE DIVERSE CUSTOMER BASE. Young, self- Directors/ Traditional Directors Young made company managers in company owners of (multi-) national professionals, owners SOE companies executives – In 2011, BMW’s conquest rate is the highest in the market – The average age of BMW customers is 3
Slide 22: Competing with substance. Best quality to customers
COMPETING WITH SUBSTANCE. PRESENTING THE BEST QUALITY TO CUSTOMERS. “Customer journey” starting from handover Car usage training after purchase Intensive CRM training & coaching for Keep long-term relationship with “customer-facing staff” customers by regular follow-up BMW Group in China, Dr. Stark,
Slide 23: BMW China's 5S concept won positive feedback from the media
BMW CHINA’S 5S CONCEPT WON POSITIVE FEEDBACK FROM THE MEDIA. – Beijing Xingdebao, as the 1st brand new 5S dealership, opened in June and is the 1st LEED GOLD project in the worldwide BMW dealer network – The concept of 5S is well-perceived by dealers and media, and additional 5S dealerships will be
Slide 24: Consistent experiential marketing activities since 2005
CONSISTENT EXPERIENTIAL MARKETING ACTIVITIES STARTING 2005 AND CONTINUING INTO THE FUTURE. 40,000 DIRECT PARTICIPANTS IN 2011. 2010 2011 2009 2008 2007 Warm Heart Fund 2006 Mission 3 2005 Culture Journey Destination X Children Traffic Education BMW Group in China, Dr. Stark, Oct 19, 2012 Page 24
Slide 25: BMW Warm Heart Fund continues to build on its successes
BMW WARM HEART FUND CONTINUES TO BUILD ON ITS SUCCESSES. BMW China Corporate Social Contribution Cultural Promotion: Environmental Protection: – BMW China Culture Journey – BMW Green Tree Program Educational Support: Social Care: – BMW Children’s Traffic Safety Education, BMW JOY – Emergency Relief
Slide 26: BMW leads AMS China Best Cars 2012 survey
BMW LEADS AMS CHINA BEST CARS 2012 SURVEY. – Best Cars Brand: BMW is NO.1 in 4 main categories out of 13: – Advanced Technology – Environmental Friendly Cars – Good Looks/ Styling – Overall, I Like This Brand – Best Cars 2012: 5 series and Clubman are category winners Best Domestic Upper Mid-sized C
Slide 27: Focus on quality and a healthy business model in the Chinese market
FOCUS ON QUALITY AND A HEALTHY BUSINESS MODEL IN THE CHINESE MARKET. Products Customer Orientation Brand-building Localization Partners People Continuously outperforming the Premium segment in terms of volume while maintaining price leadership against our competitors BMW Group in China, Dr. Stark, O
Slide 28: Contents
CONTENTS. – Market review – The BMW business model – Outlook BMW Group in China, Dr. Stark, Oct 19, 2012 Page 28
Slide 29: Buoyant outlook on China despite short-term consolidation
BUOYANT OUTLOOK ON CHINA DESPITE SHORT-TERM CONSOLIDATION. China is accelerating the transformation of the pattern of economic development and heading to make economic development more sustainable and efficient China GDP growth Risks to China’s growth – Global economy is not picking up and export 7.
Slide 30: Continued momentum for the premium segment
CONTINUED MOMENTUM FOR THE PREMIUM SEGMENT. Premium segment development Premium segment: Global Insight forecast (units) (‘000 units) 120,000 Premium segment Premium segment CAGR: +19% 100,000 1,981 80,000 933 60,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2011 2015E 2011 2012 BM
Slide 31: New Tiexi plant and engine plant: expanded capacity
THE NEW TIEXI PLANT AND ENGINE PLANT – EXPANDED CAPACITY UTILIZING WORLD-CLASS TECHNOLOGY. New Tiexi Manufacturing Plant – “Cleanest” production within BMW Group (Benchmark comparison 2011) – Till the end of 2013 the capacity in Tiexi will increase to 200,000 vehicles per year New Engine Plant – The
Slide 32: BMW well-positioned to meet future regulations via fuel-saving technologies
BMW IS WELL-POSITIONED TO MEET FUTURE REGULATIONS THROUGH ADVANCED FUEL-SAVING TECHNOLOGIES. With BMW EfficientDynamics, Active Hybrid and BMW i, we are in a good position to meet future emissions and fuel consumption regulations in China. EfficientDynamics BMW i Active Hybrid BMW Group in China, Dr
Slide 33: Future mobility engineered today
FUTURE MOBILITY ENGINEERED TODAY. PERSISTENT PURSUIT OF SUSTAINABLE DRIVING. 1st Premium brand to launch E-Vehicle in China Proactive national marketing communication 360º BMW i Launch Preparation Active relationship with Chinese Government Pioneering sustainable dealerships – 5S concept BMW Group i
Slide 34: BMW continues to invest in multiple drivers for balanced profit growth
BMW CONTINUES TO INVEST IN MULTIPLE DRIVERS FOR BALANCED PROFIT GROWTH. – Aftersales – Used Car Business – Financial Services BMW sees long-term growth opportunities and will continue to invest BMW Group in China, Dr. Stark, Oct 19, 2012 Page 34
Slide 35: The proven BMW model will ensure our continuing bright future
THE PROVEN “BMW MODEL” WILL ENSURE OUR CONTINUING BRIGHT FUTURE. BMW Group in China, D.Kirchert, May 22nd 2011 Page 35