Slide 1: Analyst and Investor Conference. 19 March 2020
ANALYST AND INVESTOR CONFERENCE. 19 MARCH 2020.
Slide 2: Agenda
AGENDA. DR. NICOLAS PETER. OLIVER ZIPSE. Q&A. Financial Strength Statements 2019. through Flexibility.
Slide 3: Dr. Nicolas Peter: Financial Statements 2019
DR. NICOLAS PETER. MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG. FINANCE. FINANCIAL STATEMENTS 2019
Slide 4: Improving our performance quarter by quarter
IMPROVING OUR PERFORMANCE QUARTER BY QUARTER. 2019 AUTOMOTIVE EBIT in m€ 1,825 1,515 1,469 -310 Q1 Q2 Q3 Q4
Slide 5: 4th quarter revenues. Strongest quarter in our history
4TH QUARTER REVENUES. STRONGEST QUARTER IN OUR HISTORY. CHANGE in m€ Q4 2018* Q4 2019 [%] Deliveries [units] 656,823 665,803 +1.4 Revenues Group 24,482 29,366 +19.9 Earnings before tax Group [EBT] 1,800 2,055 +14.2 EBIT margin Automotive Segment [in %] 6.3 6.8 +0.5 * Prior year’s figures adjusted du
Slide 6: Strong Group EBT despite antitrust provision
STRONG GROUP EBT DESPITE ANTITRUST PROVISION. in m€ 2018* 2019 CHANGE [%] Deliveries 2,483,292 2,538,367 +2.2% [units] Revenues 96,855 104,210 +7.6% Group Earnings 9,627 7,118 -26.1% before tax Group [EBT] * Prior year’s figures adjusted due to a change in accounting policy in connection with the ad
Slide 7: Our innovative strength. Targeted focused investments
OUR INNOVATIVE STRENGTH. TARGETED FOCUSED INVESTMENTS. Capital expenditure* in m€ 5.2% 5.4% 4.8% 5,650 5,029 4,688 2017 2018 2019 * Excl. capitalised development costs.
Slide 8: Gearing our company towards the future
GEARING OUR COMPANY TOWARDS THE FUTURE. R&D ratio (HGB) 7.1% BMW Group 6.2% 6.2% 6,890 R&D 6,419 expenditure 6,108 (HGB) in m€ 2017 2018 2019
Slide 9: Payout ratio rises to 32.8%
PAYOUT RATIO RISES TO 32.8%. Dividend per Total dividend common share payout in m€ in m€ 2,303 3.50 2.50 1,646 PAYOUT-RATIO. 32.8% 32.0% 2018 2019 2018 2019
Slide 10: Automotive segment benefits from strong mix
AUTOMOTIVE SEGMENT BENEFITS FROM STRONG MIX. CHANGE in m€ 2018 2019 [%] Deliveries [units] 2,483,292 2,538,367 +2.2 Revenues 85,846 91,682 +6.8 Earnings before interest and tax [EBIT] 6,182 4,499 -27.2 EBIT margin [in %] 7.2 4.9 -2.3
Slide 11: EBIT bridge in the Automotive segment
EBIT BRIDGE IN THE AUTOMOTIVE SEGMENT. EBIT in bn€ 6.2 +1.8 Volume/Mix/Market 4.5 Other cost changes -0.4 and costs for future technologies Net effect from currencies 4.9% -0.7 and commodities 7.2% -0.9 Depreciation Other operating -1.5 income and expenses 2018 2019
Slide 12: Performance>NEXT. Focus on profitability and free cash flow
PERFORMANCE>NEXT. FOCUS ON PROFITABILITY AND FREE CASH FLOW. PROFITABILITY. FREE CASH FLOW. SALES. CAPITAL EXPENDITURE. INDIRECT SPEND. WORKING CAPITAL. MATERIAL COST. …
Slide 13: Solid free cash flow in Automotive segment at 2.57 billion euros
SOLID FREE CASH FLOW IN AUTOMOTIVE SEGMENT AT 2.57 BILLION EUROS. Free Total capital cash flow expenditure in m€ in m€ 2,713 2,567 8,013 7,784 2018 2019 2018 2019
Slide 14: High liquidity. Strong foundation for our business
HIGH LIQUIDITY. STRONG FOUNDATION FOR OUR BUSINESS. Liquidity in m€ 17,427 16,295 5,391 Marketable 5,316 securities Cash and cash 10,979 12,036 equivalents 2018 2019
Slide 15: Financial Services segment with strong performance
FINANCIAL SERVICES SEGMENT WITH STRONG PERFORMANCE. CHANGE in m€ 2018* 2019 [%] Contracts with new customer [units] 1,908,640 2,003,782 +5.0 Total volume of new customer contracts 55,817 61,353 +9.9 Earnings before tax [EBT] 2,143 2,272 +6.0 Return on equity [in %] 14.8 15.0 +0.2 Penetration rate [i
Slide 16: Motorcycles segment with 9th consecutive sales record
MOTORCYCLES SEGMENT WITH 9TH CONSECUTIVE SALES RECORD. CHANGE in m€ 2018 2019 [%] Deliveries [units] 165,566 175,162 +5.8 Revenues 2,173 2,368 +9.0 Earnings before interest and tax [EBIT] 175 194 +10.9 EBIT margin [in %] 8.1 8.2 +0.1 Earnings before tax [EBT] 169 187 +10.7
Slide 17: Combined result of Other Entities segment/Eliminations
COMBINED RESULT OF OTHER ENTITIES SEGMENT/ELIMINATIONS. CHANGE in m€ 2018* 2019 [%] Automotive 6,977 4,467 -36.0 Motorcycles 169 187 +10.7 Financial Services 2,143 2,272 +6.0 Other Entities/Eliminations 338 192 -43.2 Group EBT 9,627 7,118 -26.1 * Prior year’s figures adjusted due to a change in acco
Slide 18: Solidifying our financial strength
SOLIDIFYING OUR FINANCIAL STRENGTH. GROWTH IN THE RIGHT SEGMENTS. CLEAR PRIORITIES TO STRENGTHEN OUR CORE BUSINESS. EMISSIONS-FREE MOBILITY IN THE FOCUS.
Slide 19: Outlook 2020. Transparency in uncertain times
OUTLOOK 2020. TRANSPARENCY IN UNCERTAIN TIMES. GROUP EARNINGS DELIVERIES. DELIVERIES. RETURN ON EQUITY. BEFORE TAX. Significant decrease. Slight decrease. Slight decrease. Significant decrease. EBIT-MARGIN EBIT-MARGIN SIZE OF WORKFORCE between 2 and 4%. between 6 and 8%. at year-end on par with prev
Slide 20: Oliver Zipse: Strength through Flexibility
OLIVER ZIPSE. CHAIRMAN OF THE BOARD OF MANAGEMENT OF BMW AG. STRENGTH THROUGH FLEXIBILITY.
Slide 21: 30 bn. euros investment in R&D
30 BN. EUROS INVESTMENT IN R&D. STRONG FOCUS ON SUSTAINABLE MOBILITY. 30 BN. EUROS UNTIL 2025
Slide 22: Challenges. Manifold and simultaneous
CHALLENGES. MANIFOLD AND SIMULTANEOUS. REGULATION. COMPETITION. CLIMATE CHANGE. URBANISATION. DIGITALISATION. NEXT-LEVEL INNOVATION.
Slide 23: Dynamic strategy. An ongoing task
DYNAMIC STRATEGY. AN ONGOING TASK. POSITION. WHAT do we stand for? DIRECTION. WHAT drives us? STRATEGIC APPROACH. WHERE do we want to go? COOPERATION HOW do we achieve our goals?
Slide 24: What do we stand for? Position
WHAT do we stand for? POSITION. We take on business, environmental and societal challenges. We take responsibility for the mobility of tomorrow with a compelling offering and through sustainable management.
Slide 25: The world's leading premium car company. New all-time highs
THE WORLD’S LEADING PREMIUM CAR COMPANY. NEW ALL-TIME HIGHS. 2,185,793 175,162 347,474 5,100 +3.3% +5.8% -4.6% +21.6%
Slide 26: Leading provider of electrified cars. Over 146,000 units sold in 2019
LEADING PROVIDER OF ELECTRIFIED CARS. OVER 146,000 UNITS SOLD IN 2019. SALES. 146,160 ELECTRIFIED CARS. 2019 142,386 2018 103,103 2017 61,873 2016 END OF 2019 32,732 2015 >500,000 ON THE ROAD. 17,805 2014
Slide 27: Sustainable urban mobility for everyone. MINI Electric
SUSTAINABLE URBAN MOBILITY FOR EVERYONE. MINI ELECTRIC.
Slide 28: Architectures. Modular, scalable, intelligent
ARCHITECTURES. MODULAR, SCALABLE, INTELLIGENT. ONE INTELLIGENT ARCHITECTURE FOR ALL DRIVE TRAINS. COMBUSTION ENGINES. PLUG-IN HYBRID. BATTERY-ELECTRIC.
Slide 29: Our workforce. High level of investment in future skills
OUR WORKFORCE. HIGH LEVEL OF INVESTMENT IN FUTURE SKILLS. SPENDING ON TRAINING AND DEVELOPMENT. in m€ 373 370 335 350 352 349 282 288 246 OVER 46,000 EMPLOYEES 179 ALREADY TRAINED IN E-MOBILITY. 143 2,000 EMPLOYEES IN THE PRODUCTION OF ELECTRIC POWERTRAIN COMPONENTS IN THE MEDIUM TERM. 115,000 EMPLO
Slide 30: One of the biggest IT employers in Germany
ONE OF THE BIGGEST IT EMPLOYERS IN GERMANY. EXPANDING OUR DIGITAL EXPERTISE. IT AT THE BMW GROUP. 7,200 EMPLOYEES IN IT AND SOFTWARE DEVELOPMENT. 5,300 EMPLOYEES IN DATA ANALYTICS. JOINT VENTURE “CRITICAL TECHWORKS”. DEVELOPING GROUND-BREAKING ON- AND OFFBOARD APPLICATIONS. OVER 600 EMPLOYEES AT LOC
Slide 31: Profitability. Highest long-term rating of all European OEMs
PROFITABILITY. HIGHEST LONG-TERM RATING OF ALL EUROPEAN OEMS. AAA S&P Global Ratings. RATING A+ AND A1. B- MOODY’s. B3 Aaa
Slide 32: Production network
PRODUCTION NETWORK. GLOBAL FLEXIBILITY Hams Hall Oxford Berlin Dingolfing Leipzig Munich AND EFFICIENCY. Swindon Eisenach Regensburg Goodwood Landshut Wackersdorf Kaliningrad Debrecen Shenyang Born Tiexi Dadong Spartanburg Steyr Graz Cairo San Luis Potosí Chennai Rayong Kulim Manaus Jakarta BMW GROU
Slide 33: End-to-end battery cell competence
END-TO-END BATTERY CELL COMPETENCE. LEADING EXPERTISE AND RESPONSIBILITY. LONG-TERM SUPPLY CONTRACTS WITH CATL AND SAMSUNG SDI. FULL RESOURCE TRANSPARENCY THROUGH DIRECT SOURCING OF COBALT AND LITHIUM. NEW BATTERY CELL COMPETENCE CENTRE MAPS THE ENTIRE VALUE CHAIN OF BATTERY CELL TECHNOLOGY. DOUBLIN
Slide 34: System integration. Mastering complexity
SYSTEM INTEGRATION. MASTERING COMPLEXITY. DESIGN. MANAGING MILLIONS OF CUSTOMERS SAFETY. IN SALES, FINANCIAL SERVICES AND AFTERSALES. PRODUCING 11,000 CARS PER DAY. 4,800 DEALERS IN 160 COUNTRIES. 4,500 SUPPLIER LOCATIONS. IN COMPLIANCE THOUSANDS OF WITH REGULATION. PARTS PER VEHICLE. ELECTRIFIED AN
Slide 35: Power of choice. Variety of drive trains for the BMW X3
POWER OF CHOICE. VARIETY OF DRIVE TRAINS FOR THE BMW X3. BMW X3. PETROL & DIESEL. BMW X3 xDRIVE 30e. BMW iX3.
Slide 36: E-mobility without compromise. BMW Concept i4
E-MOBILITY WITHOUT COMPROMISE. BMW CONCEPT i4. BMW i4 (2021). UP TO 600 KM RANGE (BASED ON WLTP). UP TO 530 HP. 5TH GENERATION BMW eDRIVE WITHOUT ANY RARE EARTHS. BUILT IN MUNICH.
Slide 37: More than a milestone. BMW iNEXT
MORE THAN A MILESTONE. BMW iNEXT. BMW iNEXT (2021). FULLY-ELECTRIC SAV. ENABLED FOR HIGHLY- AUTOMATED DRIVING (LEVEL 3) ON HIGHWAYS. BUILT IN DINGOLFING.
Slide 38: Electrified vehicles. One million on the road by end of 2021
ELECTRIFIED VEHICLES. ONE MILLION ON THE ROAD BY THE END OF 2021. ROADMAP EUROPEAN NEW VEHICLE FLEET. 2030 50% ELECTRIFIED. 2025 33% ELECTRIFIED. 2021 25% ELECTRIFIED.
Slide 39: BMW is market leader for electrified vehicles in Germany
BMW IS MARKET LEADER FOR ELECTRIFIED VEHICLES IN GERMANY. BEV & PHEV SEGMENT SHARE 2019. 77.2% EU-28 PLUS NORWAY. BMW GROUP ALL OEMs Ø 8.6% Ø 3.5% BEV & PHEV MARKET SHARE 2019. GERMANY. BMW 21% 19.4% 12.1% 10.1% 10.1% 8.2% 7.5% 7.8% 6.6% MINI 4.8% 5.2% 3% GER UK IT FR ESP BEL NET SWE AUS NOR OTHERS
Slide 40: New plug-in-hybrid models
NEW PLUG-IN-HYBRID MODELS. BMW 3 SERIES TOURING, BMW X2, BMW X1. BMW 3 SERIES TOURING. BMW X2 & BMW X1.
Slide 41: BMW eDrive Zones
BMW eDRIVE ZONES. ACTIVE IN SIX COUNTRIES – NORTHERN EUROPE TO FOLLOW IN SUMMER. SINCE MARCH. FROM JULY ON. AUSTRIA. SWEDEN. GERMANY. NORWAY. FRANCE. UNITED KINGDOM. BELGIUM. NETHERLANDS. SWITZERLAND.
Slide 42: BMW eDrive Zones
BMW eDRIVE ZONES. ALREADY ACTIVE IN OVER 80 EUROPEAN CITIES. GERMANY. ALL 60 CITIES WITH “GREEN ZONES“. FRANCE. PARIS, LYON, MARSEILLE, BORDEAUX, STRASBOURG. NETHERLANDS. AMSTERDAM, ROTTERDAM, UTRECHT, THE HAGUE. BELGIUM. BRUSSELS, ANTWERP, BRUGES, GENT. AUSTRIA. VIENNA, SALZBURG, INNSBRUCK, LINZ, G
Slide 43: Efficient Dynamics. Our success story will continue
EFFICIENT DYNAMICS. OUR SUCCESS STORY WILL CONTINUE. EFFICIENT DYNAMICS. MILESTONES. 2007 2013 2019 AUTOMATIC START/ BMW i3: FULLY ELECTRIC 48 VOLT MILD STOP FUNCTION. SERIES-PRODUCTION CAR. HYBRID TECHNOLOGY. 2007 FUTURE. 2010 2016 2020 HIGH-PRECISION 3rd GENERATION AIR 5th GENERATION BMW INJECTION
Slide 44: Roll-out 48-volt mild hybrid technology
ROLL-OUT 48-VOLT MILD HYBRID TECHNOLOGY. STARTING WITH HIGH VOLUME MODELS. BMW X3. BMW 3 SERIES.
Slide 45: We will reach our EU targets for 2020/2021
WE WILL REACH OUR EU TARGETS FOR 2020/2021. WE TAKE CLIMATE PROTECTION SERIOUSLY. CO2-EMISSIONS. New passenger vehicles [g CO2 / km]. 210 190 170 150 -17 % 2019 – 2020 130 2006 – 2008 110 -20 % 90
Slide 46: Effective sustainability. We take action today
EFFECTIVE SUSTAINABILITY. WE TAKE ACTION TODAY FOR FUTURE GENERATIONS. SUSTAINABLE PRODUCTION. VEHICLE EMISSIONS. − Benchmark reduction − Certified CO2 footprint for PHEVs. of water use per vehicle. − CO2 emissions EU fleet: − CO2-emissions: -25% vs. 2018. -50% by end of 2020 (vs. 1995). − External
Slide 47: We are a digital company
WE ARE A DIGITAL COMPANY. INTEGRATED SOLUTIONS ACROSS ALL BUSINESS UNITS. GLOBALLY OPERATING INTEGRATED BUSINESS AND IT TEAMS. Technology and data-driven Ongoing efficiency improvement optimisation across the in a data-driven company. entire value chain. Innovative strength through Reduction of time
Slide 48: Your Now. Part of the solution in over 1,300 cities worldwide
YOUR NOW. PART OF THE SOLUTION IN OVER 1,300 CITIES WORLDWIDE. 588 MIO. TRANSACTIONS. >90 MIO. REGISTERED CUSTOMERS. 3.8 BN. GMV RUN RATE.
Slide 49: Model offensive. We are going after the competition
MODEL OFFENSIVE. WE ARE GOING AFTER THE COMPETITION – IN ALL SEGMENTS. BMW X6 M & BMW X5 M. BMW 2 SERIES BMW M8 GRAN COUPÉ. GRAN COUPÉ.
Slide 50: Consumption and emission data
CONSUMPTION AND EMISSION DATA. MINI Cooper SE. BMW X3 xDrive30e. Fuel consumption in l/100km (combined): 0; Power consumption in kWh/100 km (combined): Fuel consumption in l/100 km (combined): 2.4 – 2.1; Power consumption in kWh/100 km (combined): 16.8 – 14.8; CO2-emissions in g/km (combined): 0. 17
Slide 51: Analyst and Investor Conference. March 2020
ANALYST AND INVESTOR CONFERENCE. 19 MARCH 2020.