Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Day (July 2019)
20 slides from Bayerische Motoren Werke's investor day presentation, Jul 3, 2019
Slide 1: BMW Brilliance Automotive Bankers Day
BMW BMW BRILLIANCE BRILLIANCE AUTOMOTIVE AUTOMOTIVE PRE-ALIGNMENT FOR 13TH AC MEETING, MARCH 19TH, 2019. LTD. LTD. BANKERS DAY. BBA | July 3rd,2019
Slide 2: BBA a highly successful automotive JV
BBA a highly successful automotive JV Securing high returns to both Shareholders BMW Group Brilliance Auto Group Four brands, one vision and The leading enterprise of Liaoning an uncompromising focus on “premium”. automobile industry. China Senior Management Forum | 21.05.2018 Seite 2
Slide 3: BBA's Legal & Corporate Structure
BMW Group China Brilliance Auto. BMW N.V. Holding, Netherlands China Brilliance Automotive, Hongkong 50% 50% BBA’s Legal & Corporate Structure BBA is not consolidated in BMW Group’s P&L AFC HIL LingYue BMW Automotive Herald International Digital Information Finance (China) Financial Leasing Technolo
Slide 4: The business scope of BMW-Brilliance Automotive
THE BUSINESS SCOPE OF BMW-BRILLIANCE AUTOMOTIVE - A FULLY FLEDGED CAR BUSINESS. R&D CUSTOMER & COMPETENCE SERVICES PRODUCTS AND NEV SOCIAL PRODUCTION DEVELOPMENT RESPONSIBILITY
Slide 5: BBA - A highly profitable joint venture and growth engine
BBA - A HIGHLY PROFITABLE JOINT VENTURE AND GROWTH ENGINE. Profit before Tax (PbT) Production Volume 492,000+ 2016 2017 2018 2016 2017 2018 Seite 5
Slide 6: BBA Business KPIs - not consolidated in the BMW Group
Revenue [bn. CNY] 138 113 97 95 98 76 + 81% 2013 2018 BBA Business Tax Payment [bn. CNY] 31 KPI’s - not 20 24 20 22 24 + 54% consolidated in the BMW Group 2013 2018 Employment [k headcount] 18.9 16.6 16.3 16.7 15.3 13.1 + 45% 2013 2018
Slide 7: Profitability enables a complete internal funding of BMW-Brilliance
PROFITABILITY ENABLES A COMPLETE INTERNAL FUNDING OF BMW-BRILLIANCE. Cash Ending Balance All operations and all investments are FINANCED INTERNALLY 2013 2014 2015 2016 2017 2018 DIVIDENDS could be INCREASED
Slide 8: BBA is using financing and hedging innovations
BBA IS USING FINANCING AND HEDGING INNOVATIONS - COMMODITY FUTURES BECOME MORE AND MORE IMPORTANT. BBA adopts Currency Hedging against exchange rate fluctuations BBA applies BMW Raw Material Hedging to reduce commodity market volatility Allows to minimize foreign exchange risks and a fair sharing of
Slide 9: Our success model
OUR SUCCESS MODEL - COMBINING HIGH MANAGERIAL- AND OPERATIONAL COMPETENCE WITH A CLEAR FOCUS ON COST COMPETITIVENESS. BMW Revenue Cost Advantages Strength in Shenyang Productivity Growth at BBA State-of-the-Art Technology Highest Quality Standards
Slide 10: Our BMW-Brilliance's cost productivity
OUR BMW-BRILLIANCE’S COST PRODUCTIVITY ... BBA is improving cost productivity significantly year by year Employee Productivity is improving significantly year-by-year (Fix Cost per Unit) (Wholesale Units per Employee) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 … ALLOWS US TO COMPENS
Slide 11: Shenyang is highly cost competitive
SHENYANG IS HIGHLY COST COMPETITIVE. Labor Cost Differences - 50% - 75% Germany UK Japan Shanghai Beijing Shenyang BBA is capitalizing on the cost advantage of Liaoning and Shenyang This secures significant savings vs. Germany But this also secures significant savings vs. Beijing and Shanghai
Slide 12: High quality is the critical success factor
HIGH-QUALITY IS THE CRITICAL SUCCESS FACTOR FOR PREMIUM VEHICLES SUCCESS IN CHINA. A BMW produced in Shenyang has the same quality as a BMW produced in Munich, Dingolfing or Spartanburg. ALL QUALITY NUMBERS PROVE THIS. Seite 12
Slide 13: State-of-the-art technology in Shenyang enables outstanding profitability
PERFORMING STATE-OF-THE-ART-TECHNOLOGY IN SHENYANG ENABLES OUTSTANDING PROFITABILITY. STATE-OF-THE ART-TECHNOLOGY *) SIGNIFICANT COST ADVANTAGE + HIGH PRODUCTIVITY + HIGH QUALITY SECURES BUSINESS SUCCESS FOR BMW-BRILLIANCE. *) We are the first automotive plants globally to use 5G technology as an en
Slide 14: 56 bn. CNY invested since 2009
Plant Tiexi Plant Dadong 56 BN. CNY INVESTED SINCE 2009 AND ANOTHER 25+ BN. CNY WILL BE INVESTED UNTIL 2022. Powertrain Plant, HVB Center R&D Center China Senior Management Forum | 21.05.2018
Slide 15: Plant Dadong
PRODUCTION VOLUME [in ‘000 units] PLANT DADONG 143 144 192 127 The forerunner of innovative manufacturing technology and visionary industry 4.0 applications. 2015 2016 2017 2018 Area: 1,051,000 m2 SoP: 2003 Extension: 2007 Employees: 6.000 142,995 48,893
Slide 16: Plant Tiexi
PRODUCTION VOLUME [in ‘000 units] PLANT TIEXI 269 300 One of the most advanced and 145 162 sustainable premium car manufacturers in the world. 2015 2016 2017 2018 Area: 2,070,000 m2 SoP: 2011 Employees: 8.000 42,467 9,460 102,915 144,930 61
Slide 17: Powertrain Plant
PRODUCTION VOLUME [in ‘000 units] POWERTRAIN 505 390 PLANT 239 250 Latest BMW engines and high-voltage batteries for BBA’s 2015 2016 2017 2018 locally-produced vehicles. Area: 900,000 m2 SoP: 2016 Employees: 2.030 110,665 380,825 13,525
Slide 18: Localization
And we understand LOCALIZATION as pre-requisite for our future growth. Largest R&D Footprint Development of local partners Qualifying the entire outside Germany to become world-class local value chain.
Slide 19: Deepening our roots in China
DEEPENING OUR ROOTS IN CHINA - BBA’S NEXT PHASE OF HIGH- QUALITY DEVELOPMENT HAS ALREADY STARTED. BBA’s Joint Venture contract extended SIGNIFICANT INVESTMENTS UNTIL 2040. in new and existing plants .
Slide 20: Thank you!
THANK YOU! PTT