Slide 1: Analyst and Investor Conference
March 19, 2015 ANALYST AND INVESTOR CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE
Slide 2: Earnings and profitability targets for 2014 fulfilled
EARNINGS AND PROFITABILITY TARGETS FOR 2014 FULFILLED
Slide 3: Group EBT margin of 10.8%
GROUP EBT MARGIN OF 10.8% EBT margin BMW Group (in %) 12% 10.7 10.4 10.8 10.2 10% 8.8 8.0 8% 6% 4% 0.7 0.8 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014
Slide 4: BMW Group – 2014 financial year: figures for previous year exceeded
BMW GROUP – 2014 FINANCIAL YEAR: FIGURES FOR PREVIOUS YEAR EXCEEDED In € million 2014 2013* Change in % Sales (units) 2,117,965 1,963,798 + 7.9 Revenues – Group 80,401 76,059 + 5.7 Earnings before tax – Group 8,707 7,893 + 10.3 (EBT) EBT margin (in %) 10.8 10.4 - Net profit – Group 5,817 5,329 + 9.2
Slide 5: 4th quarter 2014 best-ever for retail sales
4TH QUARTER 2014 BEST-EVER FOR RETAIL SALES In € million Q4 2014 Q4 2013* Change in % Sales (units) 588,085 527,620 + 11.5 Revenues – Group 22,661 20,210 + 12.1 Earnings before tax – Group 1,868 1,869 - 0.1 (EBT) EBT margin (in %) 8.2 9.2 - Net profit – Group 1,270 1,295 - 1.9 EBIT margin Automotive
Slide 6: Capital expenditure of € 6.1 billion, production expansion
CAPITAL EXPENDITURE OF € 6.1 BILLION PRODUCTION EXPANSION IN AMERICAS, ASIA, EUROPE Plant Spartanburg, USA
Slide 7: Capex ratio 2014 closer to target
CAPEX RATIO 2014 CLOSER TO TARGET Capex ratio BMW Group [%] 10.0% 9.0% 8.8% 7.9% 7.6% 8.0% 7.6% 7.0% Target: < 7.0% 6.8% 6.8% 6.0% 5.0% 5.4% 5.4% 4.0% 2007 2008 2009 2010 2011 2012 2013 2014
Slide 8: R&D expenditure of € 4.57 billion, R&D ratio just outside target range
R&D EXPENDITURE OF € 4.57 BILLION R&D RATIO JUST OUTSIDE TARGET RANGE R&D Ratio (HGB) BMW Group 7.0% 6.5% 6.3% 6.0% 5.6% 5.7% 5.5% 5.4% Target range: 5 – 5.5% 5.0% 5.1% 4.8% 4.9% 4.5% 4.6% 4.0% 2007 2008 2009 2010 2011 2012 2013 2014
Slide 9: Dividend increase of € 0.30 proposed, pay-out ratio of 33%
DIVIDEND INCREASE OF € 0.30 PROPOSED PAY-OUT RATIO OF 33% Dividend per common share (in €) Dividend payment (in € million) 3.00 2.90 2,100 2.60 1,904 2.50 1,800 1,707 1,500 2.00 1,200 1.50 900 1.00 600 0.50 300 0.00 0 2013 2014 2013 2014
Slide 10: Automotive segment – 2014 financial year: segment profitability higher
AUTOMOTIVE SEGMENT – 2014 FINANCIAL YEAR: SEGMENT PROFITABILITY HIGHER In € million 2014 2013* Change in % Sales (units) 2,117,965 1,963,798 + 7.9 Revenues 75,173 70,630 + 6.4 Earnings before interest and tax 7,244 6,649 + 8.9 (EBIT) EBIT margin (in %) 9.6 9.4 - Earnings before tax (EBT) 6,886 6,561
Slide 11: Automotive segment: 2013 to 2014 EBIT walk
AUTOMOTIVE SEGMENT: 2013 TO 2014 EBIT WALK In € million +1,674 - 423 - 663 - 19 + 26 7,244 6,649 EBIT Net expense Other Volume/ Mix/ Depreciation Other changes EBIT from exchange operating Market 2013* rates/ income and 2014 EBIT margin commodities expenses EBIT margin 9.4%* 9.6% * Previous year fig
Slide 12: Automotive segment free cash flow: target of > € 3 billion exceeded
AUTOMOTIVE SEGMENT FREE CASH FLOW: TARGET OF > € 3 BILLION EXCEEDED In € million 5,000 4,000 3,481 3,003 3,000 Target: > 3 bn. € 2,000 1,000 0 2013* 2014 * Previous year figures adjusted
Slide 13: Strong liquidity position secures financial flexibility
STRONG LIQUIDITY POSITION SECURES FINANCIAL FLEXIBILITY In € billion 12 11.660 10.724 10 3.060 3.972 8 Securities 6 Cash & cash 4 equivalents 7.664 7.688 2 0 2013 2014
Slide 14: Financial Services segment: new highs in 2014
FINANCIAL SERVICES SEGMENT: NEW HIGHS IN 2014 In € million 2014 2013* Change in % New customer contracts (units) 1,509,113 1,471,385 + 2.6 Total volume of new customer 41,318 39,241 + 5.3 contracts Earnings before tax (EBT) 1,723 1,619 + 6.4 Return on equity (in %) 19.4 20.0 - Penetration rate (in %
Slide 15: Positive business development at Alphabet and Financial Services business areas
POSITIVE BUSINESS DEVELOPMENT AT ALPHABET AND FINANCIAL SERVICES BUSINESS AREAS
Slide 16: Financial Services segment: new highs in 2014
FINANCIAL SERVICES SEGMENT: NEW HIGHS IN 2014 In € million 2014 2013* Change in % New customer contracts (units) 1,509,113 1,471,385 + 2.6 Total volume of new customer 41,318 39,241 + 5.3 contracts Earnings before tax (EBT) 1,723 1,619 + 6.4 Return on equity (in %) 19.4 20.0 - Penetration rate (in %
Slide 17: Risk situation similar to previous year, global expansion of risk management
RISK SITUATION SIMILAR TO PREVIOUS YEAR GLOBAL EXPANSION OF RISK MANAGEMENT
Slide 18: BMW Motorrad: sales gains in Europe and the Americas
BMW MOTORRAD: SALES GAINS IN EUROPE AND THE AMERICAS DELIVERIES INCREASED BY 7.2% TO 123,495 UNITS
Slide 19: Successful financial year for BMW Motorrad, strong increase in earnings
SUCCESSFUL FINANCIAL YEAR FOR BMW MOTORRAD STRONG INCREASE IN EARNINGS In € million 2014 2013 Change in % Sales (units) 123,495 115,215 + 7.2 Revenues 1,679 1,504 + 11.6 Earnings before interest and tax 112 79 + 41.8 (EBIT) EBIT margin (in %) 6.7 5.3 - Earnings before tax (EBT) 107 76 + 40.8
Slide 20: Five new models for launch in 2015
FIVE NEW MODELS FOR LAUNCH IN 2015 BMW R 1200 R BMW F 800 R BMW R 1200 RS BMW S 1000 RR BMW S 1000 XR
Slide 21: Positive effects from leasing portfolio and leasing mix improve earnings in eliminations
POSITIVE EFFECTS FROM THE LEASING PORTFOLIO AND LEASING MIX IMPROVE EARNINGS IN THE ELIMINATIONS In € million 2014 2013* Change in % Automobiles 6,886 6,561 + 5.0 Motorcycles 107 76 + 40.8 Financial Services 1,723 1,619 + 6.4 Other Entities 154 164 - 6.1 Eliminations - 163 -527 + 69.1 BMW Group 8,70
Slide 22: Outlook for 2015 – positive business development despite challenges
OUTLOOK FOR 2015 – POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGES BMW Group Solid increase of BMW Group EBT compared with previous year Automotive Segment Solid rise in vehicle deliveries and revenues compared with previous year EBIT margin in target range of 8-10% Segment Financial Services Retur
Slide 23: Attractive portfolio and financial strength – the basis for further growth
ATTRACTIVE PORTFOLIO AND FINANCIAL STRENGTH – THE BASIS FOR FURTHER GROWTH
Slide 24: Analyst and Investor Conference
March 19, 2015 ANALYST AND INVESTOR CONFERENCE