Slide 1: Analyst and Investor Conference
ANALYST AND INVESTOR CONFERENCE HARALD KRÜGER CHAIRMAN OF THE BOARD OF MANAGEMENT OF BMW AG
Slide 2: Agenda
AGENDA. Introductory remarks. 2016 Financial Statements and Outlook for 2017. Key decisions within Strategy NUMBER ONE > NEXT. First new products in our model offensive.
Slide 3: Agenda: Introductory remarks
AGENDA. Introductory remarks: What is important to me? Where is the BMW Group heading?
Slide 4: Agenda: 2016 Financial Statements and Outlook for 2017
AGENDA. 2016 Financial Statements and Outlook for 2017.
Slide 5: Key results for the financial year 2016
BMW GROUP. KEY RESULTS FOR THE FINANCIAL YEAR 2016. in million € Group revenues 94,163 + 2.2 % Group earnings before tax 9,665 + 4.8 % Group net profit 6,910 + 8.0 % EBIT margin Automotive 8.9 %
Slide 6: Annual Accounts Press Conference
ANNUAL ACCOUNTS PRESS CONFERENCE DR. NICOLAS PETER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE
Slide 7: Group EBT margin above 10% since 2011
BMW GROUP. GROUP EBT MARGIN ABOVE 10% SINCE 2011. EBT margin (in %) 10.7 10.8 10.4 10.3 10.2 10.0 8.0 2010 2011 2012 2013 2014 2015 2016
Slide 8: Positive business development despite challenging conditions
POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGING POLITICAL AND ECONOMIC CONDITIONS. In m€ 2016 2015 Change in % Automotive deliveries (units) 2,367,603 2,247,485 + 5.3 Revenues – Group 94,163 92,175 + 2.2 Earnings before tax – Group 9,665 9,224 + 4.8 EBT margin (in %) – Group 10.3 10.0 - Net profit
Slide 9: High investments impacted earnings in 4th quarter 2016
AS ANTICIPATED HIGH INVESTMENTS HAVE IMPACTED EARNINGS IN THE 4TH QUARTER 2016. In m€ 2016 2015 Change in % Automotive deliveries (units) 620,965 602,675 + 3.0 Revenues – Group 24,934 24,978 - 0.2 Earnings before tax – Group 1,924 2,110 - 8.8 EBT margin (in %) – Group 7.7 8.4 - Net profit – Group 1,
Slide 10: Capital expenditure of €3.7 billion; capex ratio on target
CAPITAL EXPENDITURE OF € 3.7 BILLION. CAPEX RATIO ON TARGET AT <5%. Capex ratio BMW Group* 5.7% Target: < 5% 4.2% 4.0% Capital expenditure* (in m€) 4,601 3,826 3,731 2014 2015 2016 *excluding capitalised development costs
Slide 11: R&D expenditure of €5.2 billion; R&D ratio 5.5%
R&D EXPENDITURE OF € 5.2 BILLION. R&D RATIO AT 5.5% IN TARGET RANGE. R&D ratio (HGB) BMW Group 6.3% 5.7% 5.6% 5.5% Target range: 5 – 5.5% 5.1% 2012 2013 2014 2015 2016
Slide 12: Dividend increase of €0.30 proposed; payout ratio 33.3%
DIVIDEND INCREASE OF € 0.30 PROPOSED. PAYOUT RATIO OF 33.3%. Dividend per common share Total dividend payout (in €) (in m€) 3.50 2,300 3.20 2,102 2015 2016 2015 2016
Slide 13: Automotive segment: EBIT margin in target range
AUTOMOTIVE SEGMENT. EBIT MARGIN IN TARGET RANGE OF 8-10% AS FORECAST. In m€ 2016 2015 Change in % Deliveries (units) 2,367,603 2,247,485 + 5.3 Revenues 86,424 85,536 + 1.0 Earnings before interest and tax (EBIT) 7,695 7,836 - 1.8 EBIT margin (in %) 8.9 9.2 - Earnings before tax (EBT) 7,916 7,523 + 5
Slide 14: Automotive segment: 2015 to 2016 EBIT bridge
AUTOMOTIVE SEGMENT: 2015 TO 2016 EBIT BRIDGE. In m€ + 200 Net effect from exchange rates/commodities 7,836 + 89 Volume/Mix/Market 7,695 - 70 Other operating income and expenses - 143 Depreciation - 217 Other cost changes EBIT margin EBIT margin 9.2% 8.9% 2015 2016
Slide 15: Automotive segment free cashflow above target
AUTOMOTIVE SEGMENT FREE CASHFLOW SIGNIFICANTLY ABOVE TARGET OF > € 3 BILLION. In m€ 5,792 5,404 Target: > € 3 bn 2015 2016
Slide 16: Strong group liquidity position supports financial flexibility
STRONG GROUP LIQUIDITY POSITION SUPPORTS FINANCIAL FLEXIBILITY. In m€ 13,167 11,383 5,287 5,261 Marketable securities Cash and cash 7,880 equivalents 6,122 2015 2016
Slide 17: Financial Services segment: successful financial year 2016
FINANCIAL SERVICES SEGMENT. SUCCESSFUL FINANCIAL YEAR 2016. In m€ 2016 2015 Change in % New customer contracts (units) 1,811,157 1,655,961 + 9.4 Total volume of new customer 55,327 50,606 + 9.3 contracts Earnings before tax (EBT) 2,166 1,975 + 9.7 Return on equity (in %) 21.2 20.2 - Penetration rate
Slide 18: Stable risk situation; credit loss ratio improved
STABLE RISK SITUATION UNCHANGED FROM THE PREVIOUS YEAR. CREDIT LOSS RATIO IMPROVED AT 0.32%. Credit loss ratio per year (in %) 0.67 0.51 0.48 0.46 0.50 0.37 0.32 2010 2011 2012 2013 2014 2015 2016
Slide 19: Motorcycles segment: increase in deliveries, revenues and earnings
MOTORCYCLES SEGMENT. INCREASE IN DELIVERIES, REVENUES AND EARNINGS. In m€ 2016 2015 Change in % Deliveries (units) 145,032 136,963 + 5.9 Revenues 2,069 1,990 + 4.0 Earnings before interest and tax (EBIT) 187 182 + 2.7 EBIT margin (in %) 9.0 9.1 - Earnings before tax (EBT) 185 179 + 3.4
Slide 20: Growing financial services business increases profit eliminations
GROWING FINANCIAL SERVICES BUSINESS INCREASES INTERCOMPANY PROFIT ELIMINATIONS. In m€ 2016 2015 Change in % Automobiles 7,916 7,523 + 5.2 Motorcycles 185 179 + 3.4 Financial Services 2,166 1,975 + 9.7 Other Entities 170 211 - 19.4 Eliminations - 772 - 664 - 16.3 BMW Group 9,665 9,224 + 4.8
Slide 21: Outlook for 2017: positive business development expected
OUTLOOK FOR 2017: POSITIVE BUSINESS DEVELOPMENT EXPECTED. BMW Group Slight increase in EBT compared with previous year Automotive Segment Slight increase in deliveries and revenues compared with previous year EBIT margin in the target range of 8-10% Financial Services Segment Return on Equity of at
Slide 22: Vision vehicles provide a glimpse into the future
BMW GROUP. VISION VEHICLES PROVIDE A GLIMPSE INTO THE FUTURE.
Slide 23: ACES are a core element of Strategy NUMBER ONE > NEXT
BMW GROUP. ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. AUTONOMOUS CONNECTED ELECTRIFIED CUSTOMER FOCUS SHARED / SERVICES
Slide 24: Agenda: Key decisions within Strategy NUMBER ONE > NEXT
AGENDA. Key decisions within Strategy NUMBER ONE > NEXT.
Slide 25: Balanced global sales by regions in 2016
BMW GROUP. BALANCED GLOBAL SALES BY REGIONS IN 2016. Europe 1,092,155 Americas 460,398 Asia 747,291 Rest of World 67,759
Slide 26: Europe, China and USA: pillars of our production network
BMW GROUP. EUROPE, CHINA AND USA – THE PILLARS OF OUR PRODUCTION NETWORK. Hams Hall Berlin Leipzig Oxford Dingolfing Munich Swindon Eisenach Regensburg Goodwood Landshut Wackersdorf Dadong Kaliningrad Tiexi New Engine Plant Moses Lake Born Steyr Graz Spartanburg Cairo Chennai Rayong Kulim Manaus Jak
Slide 27: Strategy NUMBER ONE > NEXT
BMW GROUP. STRATEGY NUMBER ONE > NEXT. VISION COMPETITIVE We are NUMBER ONE. ADVANTAGE We inspire people on the move: STRATEGIC We shape tomorrow’s individual APPROACHES premium mobility. > Brands & Design > Products > Technologies > Customer Experience & Services > Digitalisation > Profitability CU
Slide 28: Priority action areas: drivetrains, autonomous driving, services
BMW GROUP. PRIORITY ACTION AREAS: DRIVETRAINS. AUTONOMOUS DRIVING. SERVICES. Autonomous driving & connectivity Electrification Services Strategic Partnerships
Slide 29: Consistent reduction of our CO2 fleet emissions
BMW GROUP. CONSISTENT REDUCTION OF OUR CO2 FLEET EMISSIONS. - 40% since1995 CO2 emissions 124 EU fleet emissions BMW Group g/km end of 2016
Slide 30: Electrification success story
BMW GROUP. ELECTRIFICATION SUCCESS STORY. BEV BMW i3 MINI BEV BMW X3 BEV BMW iNEXT PHEV BMW i8 BMW 225xe BMW 330e BMW 530e BMW 740e/Le iPerformance iPerformance iPerformance iPerformance MINI Cooper S E BMW X1 xDrive 25Le BMW X5 xDrive40e BMW i8 Roadster Countryman ALL4 iPerformance (China only) iPe
Slide 31: BMW i3 (94Ah) and BMW C evolution with extended range
BMW GROUP. BMW i3 (94Ah) AND BMW C EVOLUTION WITH EXTENDED RANGE.
Slide 32: Drivetrain mix
BMW GROUP. DRIVETRAIN MIX. BEV / Plug-in-Hybrid Fuel Cell Combustion engine
Slide 33: Further development of vehicle architectures
BMW GROUP. FURTHER DEVELOPMENT OF VEHICLE ARCHITECTURES.
Slide 34: BMW iNEXT as spearhead of innovation
BMW GROUP. BMW iNEXT AS SPEARHEAD OF INNOVATION. Connectivity purpose-built lightweight design Interior of the future Autonomous driving BMW iNEXT new sportiness electrification Highly Artificial automated intelligence driving sustainability
Slide 35: Car as a living space
BMW GROUP. CAR AS A LIVING SPACE.
Slide 36: BMW i Inside Future with HoloActive Touch
BMW GROUP. « BMW i INSIDE FUTURE » WITH HOLOACTIVE TOUCH.
Slide 37: Rapid progress in autonomous driving
BMW GROUP. RAPID PROGRESS IN AUTONOMOUS DRIVING. 0 1 2 3 4 5 Driver Feet off Hands off Eyes off Mind off Passenger Partially Highly Fully No assistance Assisted Autonomous automated automated automated Human Transfer of responsibility Machine
Slide 38: Individual mobility as attractive area for future activity
BMW GROUP. INDIVIDUAL MOBILITY AS ATTRACTIVE AREA FOR FUTURE ACTIVITY. Mobility Services Charging Parking Digital Services Fleet Services Financial After-sales Services
Slide 39: In-house expertise paired with strong partnerships
BMW GROUP. IN-HOUSE EXPERTISE PAIRED WITH STRONG PARTNERSHIPS. BMW Companion BMW ConnectedDrive A C AUTONOMOUS CONNECTED HPC OEMs E S ELECTRIFIED SERVICES BMW i Now Family BMW iPerformance
Slide 40: Expanding our mobility services
BMW GROUP. EXPANDING OUR MOBILITY SERVICES.
Slide 41: Goal: 100 million customers in 2025
BMW GROUP. GOAL: 100 MILLION CUSTOMERS IN 2025. Traditional vehicle Traditional vehicle business business + services + vehicle-independent services 100 million 30 million customers 2016 worldwide 2025
Slide 42: Employer attractiveness: top automotive manufacturer worldwide
BMW GROUP. EMPLOYER ATTRACTIVENESS: TOP AUTOMOTIVE MANUFACTURER WORLDWIDE. Most respected global study: students surveyed in 2016 Engineers / IT worldwide Top automotive manufacturer Only automobile manufacturer in top 10 4th place overall Engineers / IT Europe Top automotive manufacturer 4th place
Slide 43: Agenda: First new products in our model offensive
AGENDA. First new products in our model offensive.
Slide 44: The new BMW 5 Series
BMW GROUP. THE NEW BMW 5 SERIES.
Slide 45: The BMW X2 Concept
BMW GROUP. THE BMW X2 CONCEPT.
Slide 46: The new BMW X3
BMW GROUP. THE NEW BMW X3.
Slide 47: The new MINI Countryman
BMW GROUP. THE NEW MINI COUNTRYMAN.
Slide 48: Rolls-Royce Wraith and Ghost Black Badge
BMW GROUP. ROLLS-ROYCE WRAITH AND GHOST BLACK BADGE.
Slide 49: BMW Motorrad model offensive
BMW GROUP. BMW MOTORRAD MODEL OFFENSIVE.
Slide 50: Four strong premium brands
BMW GROUP. FOUR STRONG PREMIUM BRANDS.
Slide 51: Analyst and Investor Conference
ANALYST AND INVESTOR CONFERENCE
Slide 52: Disclaimer
DISCLAIMER. This document contains forward-looking statements that reflect BMW Group’s current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forwa