Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (December 2015)
143 slides from Bayerische Motoren Werke's investor presentation, December 2015
Slide 1: Investor Presentation December 2015
December 2015 INVESTOR PRESENTATION.
Slide 2: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 3: The BMW Group reached a new retail sales record in Q3 2015
THE BMW GROUP REACHED A NEW RETAIL SALES RECORD IN Q3 2015. 545,062 +6.9 % 463,739 +7.1 % 80,488 +6.4 % 835 -6.3 % 33,993 +16.3 % BMW Group Investor Presentation, December 2015 Page 3
Slide 4: BMW Group achieves a strong third quarter
BMW GROUP ACHIEVES A STRONG THIRD QUARTER. Revenues - BMW Group Change in % Q3-2015: € 22,345 mn Q3-2014: €19,600 mn +14.0 Profit before tax - BMW Group Q3-2015: € 2,263 mn Q3-2014: € 2,006 mn +12.8 PBT margin: 10.1% PBT margin: 10.2% -0.1 pp Deliveries to Customers (in units) - Automobiles Q3-2015:
Slide 5: BMW Group posts solid 9 months 2015 results
BMW GROUP POSTS SOLID 9 MONTHS 2015 RESULTS. Revenues - BMW Group Change in % 9M-2015: € 67,197 mn 9M-2014: € 57,740 mn +16.4 Profit before tax - BMW Group 9M-2015: € 7,114 mn 9M-2014: € 6,819 mn +4.3 PBT margin: 10.6% PBT margin: 11.8% -1.2 pp Deliveries to Customers (in units) - Automobiles 9M-201
Slide 6: Outlook 2015 – positive business development despite challenges
OUTLOOK 2015 – POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGES. BMW Group Solid increase of BMW Group EBT compared to previous year. Automotive Segment Solid increase in vehicle deliveries compared to previous year. Significant increase in revenues compared to previous year. EBIT margin in target r
Slide 7: BMW Group Automotive: balanced sales distribution and solid YTD growth
BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID YTD 11/15 GROWTH +6.9%. Americas Europe Mainland Asia (w/o China) China and Rest of World +9.7% +8.0% +5.3% +2.4% Growth rate 22% 21% 13% Share of 45% global sales Source: Data for individual regions include BMW and MINI vehicles only, YTD
Slide 8: The automotive industry will undergo massive changes during the upcoming 10 years
THE AUTOMOTIVE INDUSTRY WILL UNDERGO MASSIVE CHANGES DURING THE UPCOMING 10 YEARS. SUSTAINABILITY DIGITALIZATION CARS ARE POWERED BY CARS ARE DRIVING ALMOST UTILIZATION CONCEPTS LIKE CAR- ELECTRICITY ACCIDENT-FREE SHARING ARE WIDELY AVAILABLE CO2 SUSTAINABILITY HAS GAINED HUMAN-MACHINE-INTERFACE CAR
Slide 9: Chances for BMW Group for further growth
CHANCES FOR BMW GROUP FOR FURTHER GROWTH. INNOVATIVE SERVICES E-MOBILITY CONNECTED CARS NEW PRODUCTS BMW Group Investor Presentation, December 2015 Page 9
Slide 10: Strategy Number One – managing the technological change
STRATEGY NUMBER ONE – MANAGING THE TECHNOLOGICAL CHANGE TO REMAIN FUTURE PROOF. Evolution Revolution Efficient combustion engines Alternative drive trains Innovative technologies Mobility services BMW Group Investor Presentation, December 2015 Page 10
Slide 11: Innovative technologies and services to meet changing customer demands
INNOVATIVE TECHNOLOGIES AND SERVICES TO MEET CHANGING CUSTOMER DEMANDS. Vehicle automation New BMW ConnectedDrive Store Touch Command Connected Mobility iDrive Controller Fully automated parking BMW Group Investor Presentation, December 2015 Page 11
Slide 12: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 13: Strategy Number One addresses the main challenges
BMW GROUP STRATEGY NUMBER ONE ADDRESSES THE MAIN CHALLENGES & BUILDS THE BASIS FOR FUTURE SUCCESS. Vision Competitive Advantage Access to Growth Shaping the Future Profitability Technologies and Customers Values and Basic Principles BMW Group Investor Presentation, December 2015 Page 13
Slide 14: Strategic objective
STRATEGIC OBJECTIVE. We want to be the leading provider of premium products and premium services for individual mobility. BMW Group Investor Presentation, December 2015 Page 14
Slide 15: Definition of premium
DEFINITION OF PREMIUM. A Premium Product is a product or service that promises a stronger satisfaction of needs by special characteristics – and thereby creates a higher desirability which is used to realize a higher sales price in the market. BMW Group Investor Presentation, December 2015 Page 15
Slide 16: The way ahead – Number One
THE WAY AHEAD – NUMBER ONE. Number ONE defines our vision for the year 2020. our mid-term targets for the year 2016. our internal milestones. Our vision is targeted towards creating value and securing future success. We are driven by our goal to increase profitability. BMW Group Investor Prese
Slide 17: Technological change – turning a challenge into an opportunity
TECHNOLOGICAL CHANGE – TURNING A CHALLENGE INTO AN OPPORTUNITY. Growth, REVOLUTION technological Alternative drive trains progress Mobility services EVOLUTION Technological change Efficient combustion engines Innovative technologies In times of technological change we have to improve our existing te
Slide 18: Targets 2016
TARGETS 2016. BMW Group 2014 2016 R&D ratio (cash R&D, %) 5.7 5.0 – 5.5 Capex ratio (%) 7.6 <7.0 Payout ratio (%) 32.7 30.0 – 40.0 Automotive Segment Retail unit sales (‘000 units) 2,118 > 2,000 Return on Capital Employed (%) 61.7 > 26.0 Return on Sales (EBIT, %) 9.6 8.0 – 10.0 Free cash flow (euro
Slide 19: Managing volume growth, innovation and profitability through efficient R&D
MANAGING VOLUME GROWTH, INNOVATION AND PROFITABILITY THROUGH COST-CONSCIOUS, EFFICIENT R&D. Standardisation • E-mobility • New materials • New technologies Profitability • Strong growth of Innovation product portfolio • Seizing new opportunities Broader R&D spectrum BMW Group Investor Presentation,
Slide 20: The modular strategy is the enabler for model range expansion
THE MODULAR STRATEGY IS THE ENABLER FOR THE EXPANSION OF THE BMW GROUP MODEL RANGE. Architectures Modular product Modular system Underbody Modular front seat Front seat attachment e.g.: Common elements e.g.: Front seat e.g.: Standardised attachments Structure seat installation Head restraint
Slide 21: Common architecture, not platforms
COMMON ARCHITECTURE, NOT PLATFORMS. IN PREMIUM VEHICLES DIFFERENTIATION IS KEY. BMW architecture = 3 core areas – drivetrain, front wall and fuel/energy space. Engine compartment Drivetrain Rear BMW architectures allow maximum differentiation between models in terms of design and dimensions and acco
Slide 22: New EfficientDynamics engine family – high commonality
THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY– HIGH LEVELS OF COMMONALITY BETWEEN AND WITHIN DIESEL AND GASOLINE ENGINES. Cylinders (inline) -3 -4 -6 Common parts shared within gasoline or diesel engines Gasoline is approx. 60%. >60 % Between the gasoline and 30-40 % diesel engines there is a 40% shar
Slide 23: Future Retail as holistic approach to enhance retail experience
FUTURE RETAIL AS BMW GROUP’S HOLISTIC APPROACH TO ENHANCE RETAIL EXPERIENCE. “MyBMW” eRetail Showroom Product Genius Layout / furniture Stationary Formats Tools PoS.Digital (e.g. Brand Store) Customer Test Drives Treatment Retail HR Mystery Integrated Stock Shopping Dealer Support Optimization BMW G
Slide 24: Impressions of an enhanced point of sale
IMPRESSIONS OF AN ENHANCED POINT OF SALE. ROLLED OUT TO 40 MARKETS BY END OF 2014. BMW Group Investor Presentation, December 2015 Page 24
Slide 25: Stationary formats – from vision to reality
STATIONARY FORMATS – FROM VISION TO REALITY. EXAMPLES OF NEW CONCEPTS. Current Stationary Formats Brand Store Brand Experience Center Pop Up Stores City Sales Outlet PoC Brussels PoC Incheon PoC UK PoC Rome • Location: Brussels, Belgium. • Location: Incheon, Korea. • Location: UK. • Location: Rome,
Slide 26: Group piloting end-to-end online buying experience: eRetail in UK
GROUP PILOTING END-TO-END ONLINE BUYING EXPERIENCE: eRETAIL IN UK. Complete product range incl. BtO and BtS vehicles. Multi-channel experience covering online, CIC, Dealer. Personal consultation 7 days a week from 08:00 to 22:00 via live chat, eMail or phone. 9 Dealers in our pilot market UK
Slide 27: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 28: BMW i3 – Exterieur
A REVOLUTION. PURPOSE BUILT. BMW i3 – EXTERIEUR. BMW Group Investor Presentation, December 2015 Page 28
Slide 29: BMW i3 – Interieur
A REVOLUTION. PURPOSE BUILT. BMW i3 – INTERIEUR. BMW Group Investor Presentation, December 2015 Page 29
Slide 30: BMW i3 – Interieur
A REVOLUTION. PURPOSE BUILT. BMW i3 – INTERIEUR. BMW Group Investor Presentation, December 2015 Page 30
Slide 31: BMW i3 – Profile & specifications
A REVOLUTION. PURPOSE BUILT. BMW i3 – PROFILE & SPECIFICATIONS. MSRP starts at 34,950 EUR* Weight (DIN) 1,195kg Turning circle 9.86m Output 170hp/250Nm Battery capacity 22kWh 0-60km/h (37mph) in 3.7s 0-100km/h (62mph) in 7.2s Top speed (cut-off) at 150km/h (93mph) Charging times from < 30min at 50 k
Slide 32: The world's most progressive sports car: the BMW i8
THE WORLD’S MOST PROGRESSIVE SPORTS CAR: THE BMW i8. BMW Group Investor Presentation, December 2015 Page 32
Slide 33: The BMW i8 represents the pinnacle of EfficientDynamics
THE BMW i8 REPRESENTS THE REVOLUTIONARY AND FORWARD-THINKING PINNACLE OF EFFICIENT DYNAMICS. MSRP starts at 126,000 EUR* Weight (DIN) 1,485kg Output 362hp/320Nm 0-100km/h (62mph) in 4.4s Top speed (cut-off) 250km/h (155mph) Electric driving range 37km (23miles) @ NEDC Fuel consumption 2.1l/100km (11
Slide 34: Strategic objectives of BMW i derived from Strategy Number One
STRATEGIC OBJECTIVES OF BMW i DERIVED FROM CORPORATE STRATEGY NUMBER ONE. Number ONE Technologies/ Generate growth Shaping the future customers Growth New target groups. Pioneering Sharpen BMW image New products and technologies and as sustainable brand. services. design. Differentiation f
Slide 35: Over 32 million electric kilometers with real users
OVER 32 MILLION ELECTRIC KILOMETERS WITH REAL USERS OF THE MINI E AND BMW ActiveE LEADING UP TO BMW i. MINI E (2009-2012) BMW ActiveE (2011-2014) BMW i3 and BMW i8 16 million kilometers 16 million kilometers ~600 vehicles ~1,000 vehicles High satisfaction of mobility needs. Adequate vehicle. BMW i i
Slide 36: BMW i product strategy. Redefining the automotive value chain
BMW i PRODUCT STRATEGY. REDEFINING THE AUTOMOTIVE VALUE CHAIN. New Vehicle New Materials Production Concept New Electric Concepts and Recycling of the Future Drivetrain INTEGRATED APPROACH OF BMW i New Processes Employees Pioneering Design New Customers BMW Group Investor Presentation, December 2015
Slide 37: BMW i will provide flexible mobility
BMW i WILL PROVIDE FLEXIBLE MOBILITY. ASSISTANCE SERVICES HOME CHARGING “Provide assurance” “Convenient charging at home” 360° ELECTRIC. FLEXIBLE MOBILITY PUBLIC CHARGING “A new mobile lifestyle” “On the road” BMW Group Investor Presentation, December 2015 Page 37
Slide 38: Sustainable production for BMW i3 and i8
SUSTAINABLE PRODUCTION FOR BMW i3 AND i8. BENCHMARK IN THE AUTOMOTIVE INDUSTRY. -50 % energy consumption 100% renewable energy -70% water consumption More than 50% less Global Warming Potential (CO2e) across its entire product life cycle if electricity origins from renewable sources BMW Group Invest
Slide 39: New production concept. No press shop
NEW PRODUCTION CONCEPT. NO PRESS SHOP. PAINTING OF THE EXTERIOR PLASTIC PARTS ONLY. Conventional vehicle production Press shop Body shop Paint shop Assembly BMW i production Total production processing time reduced by ~50% ~50% less storage space requirements Externally sourced parts Number of
Slide 40: Carbon fiber production – core competence within BMW Group
CF-Textiles Joi Carbon Fibers CARBON FIBER PRODUCTION – CORE COMPETENCE WITHIN BMW GROUP. Recycling Preforms Mitsubishi Rayon Co. Ltd. (MRC), Otake/Japan BMW GROUP Stacking • (Steam) Cracking BMW • Ammoxidation Acrylonitrile JV MSP*, CFRP- Otake/Japan • Polymerisation / Spinning Components Tailoring
Slide 41: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 42: Combined BRIKT sales are within the top 5 markets for BMW Group
COMBINED BRIKT SALES ARE WITHIN THE TOP 5 MARKETS FOR BMW GROUP YTD 2015. in 1,000 units 450 425 BMW MINI 400 365 350 300 265 250 207 200 150 125 100 70 65 61 44 42 39 50 0 Mainland USA Germany* UK BRIKT** France Italy Japan Belgium Nordics*** Canada China *Germany: Registrations; **BRIKT: Brazil, R
Slide 43: BRIKT markets BMW and MINI retail development
BRIKT MARKETS BMW AND MINI RETAIL DEVELOPMENT YTD 2015. Retail development in BRIKT Retail development in Brazil Retail development in Russia 160 20 50 140 131 135 18 17 17 45 45 120 110 120 125 16 15 15 15 40 14 40 37 100 99 35 33 12 10 30 80 70 10 10 30 27 25 60 8 19 22 40 45 6 20 17 6 40 15 4 3 2
Slide 44: Premium segment share of total market 2014
PREMIUM SEGMENT SHARE OF TOTAL MARKET 2014. in % 35 30.0 30 25.1 25 20.6 20 15 12.5 11.8 11.3 11.2 World Average: 10.3% 10 8.2 7.9 6.0 5 4.4 2.6 0 Germany United Italy France USA S. Korea Turkey Russia China Japan Brazil India Kingdom Source: Global Insight 04/2015. Premium definition: Premium inclu
Slide 45: Global premium segment sales expected to grow to 9 mn units by 2020
GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW TO 9 MN UNITS BY 2020. 10,000 Premium Segment: CAGR 2014-2020: +4.0% 9,000 Total Growth 2014-2020: 27% Rest of World, CAGR +4.2% 8,000 BRIKT*, CAGR +6.5% 7,000 China, CAGR +6.0% 6,000 5,000 Japan, CAGR -0.6% 4,000 Region (‘000 units) 2014 2020
Slide 46: BMW and MINI retail development in Mainland China
BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA, YTD 2015. Share of JV Sales 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 500 +16.7 % +2.4% in ‘000 units 456.0 450 +19.7 % 415.2 425.3 JV sales Import 390.7 400 350 +40.3 % 326.4 275.9 300 258.9 198.5 252.5 +37.6 % 250 232.6 141.2 200 +86.7 % 169.0 9
Slide 47: BMW and MINI retail mix in Mainland China
BMW AND MINI RETAIL MIX IN MAINLAND CHINA IN FIRST TEN MONTHS 2015. 3 series: 22.8% X1: 9.0% 4 series: 1.1% X3: 6.4% 2 series: 2.6% Z4: 0.1% 1 series: 3.0% X4: 2.6% MINI: 6.4% 7 series: 2.9% 6 series: 0.1% 5 series: 34.5% X6: 1.5% X5: 7.0% Source: BMW & MINI Retail data, YTD November, 2015 BMW Group
Slide 48: BMW and MINI dealer outlets in operation in China
477 BMW AND 110 MINI DEALER OUTLETS IN OPERATION BY SEPTEMBER 30, 2015. Outlet BMW MINI East 103 24 North 89 26 South 111 24 Southeast 74 15 4S/5S* West 100 21 Showroom Total 477 110 Service UCC * 4S: sales, service, spare parts, survey, BMW Group Investor Presentation, December 2015 5S: sales, serv
Slide 49: BMW Brilliance Automotive – a success story
BMW BRILLIANCE AUTOMOTIVE – A SUCCESS STORY WITH GROWING REVENUE AND EARNINGS CONTRIBUTION. BBA retail sales in 1,000 units 300 276 250 203 211 199 200 141 150 BBA‘s contribution to BMW Group‘s at-equity 100 94 result (in EUR million) 700 658 44 54 31 35 598 50 600 0 500 411 423 400 280 BMW Group re
Slide 50: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 51: Three authentic premium brands
THREE AUTHENTIC PREMIUM BRANDS. Sheer driving The world’s most exciting The pinnacle of pleasure premium small car brand automobile luxury BMW Group Investor Presentation, December 2015 Page 51
Slide 52: Deliveries to customers 2015 YTD
DELIVERIES TO CUSTOMERS 2015 YTD. Deliveries of automobiles (in units) November 2015 YTD November 2014 YTD Change in % Total BMW 1,728,553 1,633,765 +5.8 1 series 165,070 173,520 +48.5 2 series (incl. Active Tourer) 140,461 32,291 3 series (incl. GT) 409,064 435,925 +1.1 4 series 137,283 104,680 5 s
Slide 53: Major markets deliveries to customers 2015 YTD
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS 2015 YTD. Deliveries of automobiles (in units) November 2015 YTD November 2014 YTD Change in % Mainland China 425,266 415,209 +2.4 USA 364,903 347,709 +4.9 Germany1) 228,214 220,213 +3.6 United Kingdom 207,079 183,235 +13.0 BRIKT2) 125,025
Slide 54: Deliveries to customers FY-2014
DELIVERIES TO CUSTOMERS FY-2014. Deliveries of automobiles (in units) FY-2014 FY-2013 Change in % Total BMW 1,811,719 1,655,138 9.5 1 series 190,033 213,611 8.2 2 series 41,038 - 3 series (incl. GT) 480,214 500,643 16.4 4 series 119,580 14,763 5 series (incl. GT) 373,053 366,992 1.7 6 series 23,988
Slide 55: Major markets deliveries to customers FY-2014
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS FY-2014. Deliveries of automobiles (in units) FY-2014 FY-2013 Change in % Mainland China 455,979 390,713 16.7 USA 395,850 375,782 5.3 Germany1) 273,433 268,838 1.7 United Kingdom 204,749 188,837 8.4 BRIKT2) 134,901 131,447 2.6 France 67,449
Slide 56: Regional retail mix YTD November 2015
REGIONAL RETAIL MIX YTD NOVEMBER 2015. Rest of the World: 17.7% Mainland China: 20.9% Germany1): 11.2% Japan: 3.0% Canada: 1.9% Belgium: 2.2% Nordics: 2.1% France: 3.4% USA: 18.0% Italy: 3.2% UK: 10.2% BRIKT2): 6.2% 1)Registrations 2)BRIKT: Brazil, Russia , India, South Korea and Turkey Source: BMW
Slide 57: BMW retail by model 2014 (2013)
BMW RETAIL BY MODEL 2014 (2013). Total BMW Group sales: 2,117,965 (1,963,798) units. 30,244 10,802 1,811,719 147,381 (12,866) 17,793 (1,655,138) BMW brand share: 1,811,719 (1,655,138) units (107,231) (36,688) or 85.5% (84.3%) of total sales. 150,915 (157,303) 21,688 156,471 (161,353) 48,519 373,053
Slide 58: MINI retail by model 2014 (2013)
MINI RETAIL BY MODEL 2014 (2013). Total BMW Group sales: 2,117,965 (1,963,798) units. 234,175 (216,538) MINI brand share: 305,030 (301,526) units or 14.3% (15.5%) of total sales. 15,567 302,183 3,816 5,101 (14,687) (305,030) 106,995 (8,436) (9,315) (101,897) 13,326 17,327 (21,030) 140,051 (21,167) (
Slide 59: BMW Group retail sales increased on average by 6.3% since 2003
BMW GROUP RETAIL SALES INCREASED ON AVERAGE BY 6.3% SINCE 2003. 2,200 in 1,000 units BMW MINI Rolls-Royce +7.9% 2,000 +6.4% +10.6% 2,118 +7.1% 1,800 +14.2% 1,964 1,600 1,845 1,836 +9.2% -4.3% +13.6% 1,669 1,400 +3.5% +9.9% 1,500 -10.4% +9.4% 1,436 1,461 1,200 1,374 +4.5% 1,328 1,286 1,209 1,000 1,10
Slide 60: BMW Group brand and product overview
BMW GROUP BRAND AND PRODUCT OVERVIEW. announced Sedan Wagon Hatch Coupe Convert. Roadster New Seg. SAV Luxury PlusPlus Phantom Coupe Convert. PlusPlus Ghost Wraith Dawn 6 Series / Plus 7 Series i8 6 Series 6 Series X7 Base Upper Plus 5 Series 5 Series GT X5, X6 Medium Base Lower Plus 3 Series 3 Seri
Slide 61: Product roadmap 2015
PRODUCT ROADMAP 2015. Q1 Q2 Q3 Q4 6 Series & M6 6 Series & M6 6 Series & M6 7 Series Convertible LCI* Coupé LCI* Gran Coupé LCI* Luxury X5 M X5 xDrive40e Upper Medium X6 M 3 Series derivatives LCI Lower Medium MINI Clubman 2 Series Convertible MINI John Cooper Works Compact/ 1 Series 5-door & 3-door
Slide 62: New product 2015. BMW 2 Series Gran Tourer
NEW PRODUCT 2015. BMW 2 SERIES GRAN TOURER. Launch 06/2015 BMW Group Investor Presentation, December 2015 Page 62
Slide 63: New products 2015. BMW X1
NEW PRODUCTS 2015. BMW X1. Launch 10/2015 BMW Group Investor Presentation, December 2015 Page 63
Slide 64: New product 2015. BMW 7 Series
NEW PRODUCT 2015. BMW 7 SERIES. Launch 10/2015 BMW Group Investor Presentation, December 2015 Page 64
Slide 65: The all-new BMW 7 Series. Product highlights
THE ALL-NEW BMW 7 SERIES. PRODUCT HIGHLIGHTS. REMOTE CONTROL PARKING BMW GESTURE CONTROL BMW TOUCH COMMAND CARBON CORE BMW LASERLIGHT DRIVING ASSISTANT SYSTEMS BMW Group Investor Presentation, December 2015 Page 65
Slide 66: New product 2015. MINI Clubman
NEW PRODUCT 2015. MINI CLUBMAN. Launch 10/2015 BMW Group Investor Presentation, December 2015 Page 66
Slide 67: New product 2015. X5 eDrive
NEW PRODUCT 2015. X5 eDRIVE. Launch 10/2015 BMW Group Investor Presentation, December 2015 Page 67
Slide 68: New product 2016. M2 Coupé
NEW PRODUCT 2016. M2 COUPÉ. BMW Group Investor Presentation, December 2015 Page 68
Slide 69: New product 2016. MINI Convertible
NEW PRODUCT 2016. MINI CONVERTIBLE. BMW Group Investor Presentation, December 2015 Page 69
Slide 70: Future product. BMW Concept Compact Sedan China
FUTURE PRODUCT. BMW CONCEPT COMPACT SEDAN CHINA. BMW Group Investor Presentation, December 2015 Page 70
Slide 71: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 72: BMW Motorrad strategy to foster sustainable, profitable growth
BMW MOTORRAD STRATEGY TO FOSTER SUSTAINABLE, PROFITABLE GROWTH. BMW Group Investor Presentation, December 2015 Page 72
Slide 73: BMW Motorrad segments
BMW MOTORRAD SEGMENTS. ADVENTURE TOUR SPORT ROADSTER HERITAGE URBAN MOBILITY BMW Group Investor Presentation, December 2015 Page 73
Slide 74: Successful 9M-2015 for BMW Motorrad
SUCCESSFUL 9M-2015 FOR BMW MOTORRAD WITH STRONG INCREASE IN EARNINGS. In € million 9M-2015 9M-2014 Change in % Sales (units) 112,411 100,217 +12.2 Revenues 1,643 1,370 +19.9 Earnings before interests and taxes 273 146 +87.0 (EBIT) EBIT margin 16.6% 10.7% +5.9 pp Earnings before taxes (EBT) 271 143 +
Slide 75: BMW motorcycles retail sales 1990 – 9M-2015
BMW MOTORCYCLES RETAIL SALES 1990 – 9M-2015. 140 in 1,000 units in 1,000 units 123.5 120 115.2 112.4 102.5 101.7 104.3 106.4 100.1 98.0 100.2 100 97.5 92.6 93.0 92.3 87.3 84.7 80 74.6 60 50.2 40 31.3 20 0 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M- 9M- 20
Slide 76: Development of market share
DEVELOPMENT OF MARKET SHARE . in 1,000 units Total market>500cc BMW Market Share 1,600 16.0% 1,400 14.0% 1,200 12.0% 1,000 10.0% 800 8.0% 600 6.0% 400 4.0% 200 2.0% 0 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 BMW Group Investor Presentation, December 2015 Page 76
Slide 77: Most important markets for BMW motorcycles in 2014
MOST IMPORTANT MARKETS FOR BMW MOTORCYCLES IN 2014. Germany Other markets United States France Spain United Kingdom Italy Brazil Germany 17.6% Brazil 6.1% United States 12.4% United Kingdom 5.5% France 9.4% Spain 5.0% Italy 8.5% Other markets 35.5% BMW Group Investor Presentation, December 2015 Page
Slide 78: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 79: Global presence in 54 countries with 7,686 employees
GLOBAL PRESENCE IN 54 COUNTRIES WITH 7,686 EMPLOYEES. BMW Financial Services MINI Financial Services As per September 30, 2015 BMW Group Investor Presentation, December 2015 Page 79
Slide 80: Financial Services segment performed impressively during first 9 months
THE FINANCIAL SERVICES SEGMENT PERFORMED IMPRESSIVELY DURING THE FIRST 9 MONTHS. 9M-2015 9M-2014 Change in % New contracts with retail customers 1,222,165 1,111,700 +9.9 Revenues in € million 17,833 15,266 +16.8 Earnings before interests and taxes 1,523 1,380 +10.4 (EBIT) in € million Earnings befor
Slide 81: Shifting customer behavior from outright purchase towards flexible usage
SHIFTING CUSTOMER BEHAVIOR FROM OUTRIGHT PURCHASE TOWARDS FLEXIBLE USAGE OFFERINGS. Past (1950) Status Quo (2010) Future (2050) Loan & Lease Outright Purchase + Packages + Usage Offerings Urbanization Urbanization Urbanization 29% 51% 69% “The Ultimate Drive” Connected & Intermodal Mobility Flexible
Slide 82: BMW Group acquires Chinese leasing company Herald International
BMW GROUP ACQUIRES CHINESE LEASING COMPANY HERALD INTERNATIONAL FINANCIAL LEASING CO., LTD. Increasing importance of the emerging leasing business in China Herald has an established leasing platform and licenses Herald senior management with more than 20 years leasing experience Broad geographic bas
Slide 83: Profit before tax (PBT) Financial Services
PROFIT BEFORE TAX (PBT) FINANCIAL SERVICES. 2,000 in euro million 3) 1,790 1,723 1,750 5) 4) 1,619 1,561 1,517 439 1,500 124 2) 1,437 1,214 1,351 1,250 122 1,000 1,092 743 750 685 605 515 422 452 500 387 345 365 250 0 -250 -292 1) -500 1) FY-08 EBT includes a negative effect of EUR 1,057 million fro
Slide 84: Return on equity (ROE) Financial Services
RETURN ON EQUITY (ROE) FINANCIAL SERVICES. 35% in % 3) 29.4% 30% 26.1% 2) 25% 7.2% 2.6% 4) 5) 21.2% 20.0% 23.5% 19.4% 20% 18.1% 22.2% 1.7% 19.6% 15% 9.2% 10% 5% 0% 2007 2008 2009 2010 2011 2012 2013 2014 -5% -7.3% 1) -10% 1) FY-08 RoE includes a negative PBT effect of EUR 1,057 million from addition
Slide 85: Penetration rate retail business
PENETRATION RATE RETAIL BUSINESS. 55% Financing Leasing 50% 48.5% 49.0% 48.2% 46.1% 45% 44.6% 44.0% 42.0% 42.4% 41.1% 41.1% 41.7% 40.4% 40% 38.3% 36.1% 24.3% 34.5% 35.0% 24.1% 35% 27.6% 21.9% 21.5% 22.5% 27.2% 21.1% 19.7% 20.9% 30% 25.2% 19.1% 24.0% 17.2% 18.3% 25% 20.9% 20% 15% 24.7% 24.1% 24.2% 22
Slide 86: Development of credit loss ratio
DEVELOPMENT OF CREDIT LOSS RATIO. 0.9% 0.84% 0.8% 0.7% 0.67% 0.6% 0.54% 0.59% 0.49% 0.48% 0.50% 0.5% 0.46% 0.46% 0.46% 0.4% 0.41% 0.41% 0.35% 0.37% 0.3% BMW Group Investor Presentation, December 2015 Page 86
Slide 87: Residual value development in the USA
70 75 80 85 90 95 100 105 110 115 120 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 BMW Group Investor Presentation, December 2015 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Source: Manheim Used Vehicle Index, mix and mileage adjusted. Jul-09 Oct-09 Jan-10 Apr-10 BMW brand used car index (t
Slide 88: Strategic future of Financial Services
STRATEGIC FUTURE OF FINANCIAL SERVICES. EXTENSION OF “EU BANK” INTEGRATION OF ING CAR LEASE STRATEGIC FOCUS AREAS Volume in bn. EUR Before Vor dertransaction Afterdertransaction Transaktion Nach Transaktion End Endeof 2013 2012 # Company Unternehmen Company Unternehmen Company Unternehmen 2,2 21
Slide 89: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 90: Acquisition of mapping and location service HERE
ACQUISITION OF MAPPING AND LOCATION SERVICE ‘HERE’. HIGH-DEFINITION MAPS ARE THE BASIS FOR FUTURE MOBILITY. HERE provides high-definition maps and thus the basis for new driving assistance systems up to highly- automated driving. Map The combination with real-time vehicle data optimizes traffic secu
Slide 91: Center of Competence Urban Mobility
“CENTER OF COMPETENCE URBAN MOBILITY”: MOBILE SUSTAINABLITY GENERATION IMPLEMENTING SUSTAINABLE URBAN MOBILITY – TOGETHER WITH ALL STAKEHOLDERS. Residents & their needs BMW i electric cars Cities (eCar) infrastructure BMW Group Investor Presentation, December 2015 Page 91
Slide 92: BMW mobility services portfolio aiming at new customer groups
BMW MOBILITY SERVICES PORTFOLIO AIMING AT NEW CUSTOMER GROUPS. Information and Securing Flexible Use Parking intermodal innovation routing and acceleration DriveNow Park@myHouse MyCityWay BMW i Ventures Alphacity ParkNow BMW Group Investor Presentation, December 2015 Page 92
Slide 93: DriveNow. Premium free floating car sharing service
DriveNow. PREMIUM, FREE FLOATING CAR SHARING SERVICE FROM BMW GROUP & SIXT. 500,000+ customers in 9 cities DriveNow Customers are BMW Group’s youngest & most modern target group BMW Group Investor Presentation, December 2015 4,000+ cars Page 93
Slide 94: DriveNow provides flexible mobility and addresses new target groups
DriveNow PROVIDES FLEXIBLE MOBILITY AND ADDRESSES NEW TARGET GROUPS. 1 2 3 4 5 Become a Choose Spontaneous use Start driving Parking club member your car DriveNow provides easy to use, hassle-free and flexible mobility services at premium level One Way ability. DriveNow allows the customer to drop
Slide 95: DriveNow also opens the way for e-mobility and the BMW i3
DriveNow ALSO OPENS THE WAY FOR E-MOBILITY AND THE BMW i3. Introducing 3,000+ customers to E-Mobility/ month i3 intregration in fleets in 2015 100,000+ ActiveE customer drives BMW Group Investor Presentation, December 2015 Page 95
Slide 96: DriveNow bridges the gap between young car users and premium car buyers
DriveNow BRIDGES THE GAP BETWEEN YOUNG CAR USERS AND PREMIUM CAR BUYERS. More young people between moving out DriveNow customers are 10 years younger than MINI and family creation do not own a car. customers. 100% Car demand Premium upper class Anteil Personen in Haushalten mit Pkw persons with a ca
Slide 97: BMW i Ventures
BMW i VENTURES. “BEST OF BOTH WORLDS” – GAIN ACCESS TO NEW TECHNOLOGIES AND CUSTOMER GROUPS. 45 incubator workspaces 1,000 + mobility services startups screened Quarterly meet ups with around100 guests from ventures scene BMW Group Investor Presentation, December 2015 Page 97
Slide 98: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 99: BMW Group global production network
BMW GROUP GLOBAL PRODUCTION NETWORK. Kaliningrad Hams Hall Berlin Swindon Oxford Born Eisenach Leipzig Goodwood (2014) Wackersdorf Regensburg Landshut Dingolfing Munich Steyr Graz Moses Lake Shenyang (Tiexi, Dadong) Spartanburg Cairo San Luis Potosí (2019) Chennai Rayong Kulim Manaus Jakarta Vehicle
Slide 100: Automobile production by plant in 2014
AUTOMOBILE PRODUCTION BY PLANT IN 2014. Munich Dingolfing Assembly Plants Born Regensburg Graz2 Oxford Leipzig Tiexi1 Rosslyn Dadong1 Spartanburg in 1,000 units Dingolfing, Germany Goodwood, UK 369.0 4.5 Production of BMW 3, 5, 6, 7 Series Production of Rolls-Royce Spartanburg, USA Tiexi1, China 349
Slide 101: Automobile production by assembly plant in 2014
AUTOMOBILE PRODUCTION BY ASSEMBLY PLANT IN 2014. Chennai Jakarta Cairo Rayong Kaliningrad Kulim In units Cairo, Egypt Kaliningrad, Russia 2,316 24,240 3, 5 & 7 series, X1, X3 3,5 & 7 series, X1, X3, X5, X6 Jakarta, Indonesia Kulim, Malaysia 2,112 7,356 3 & 5 series, X1, X3 MINI Countryman,1,3 & 5 se
Slide 102: The BMW Group's clean production philosophy
THE BMW GROUP’S CLEAN PRODUCTION PHILOSOPHY. MORE THAN CLASSICAL ENVIRONMENTAL MANAGEMENT. Certified environmental management systems (ISO 14001/EMAS) at all sites worldwide Reducing water usage Saving energy and Reducing Solvent Avoiding or recycling and process reducing CO2 Emissions waste wastewa
Slide 103: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 104: Sustainability at the BMW Group
SUSTAINABILITY AT THE BMW GROUP. 1973 TOP RATINGS Dow Jones Sustainability Indexes: First environmental manager in the automotive industry. BMW Group is the only automobile manufacturer that has been 2000 continuously listed in the TOP 3 since 1999. Executive Board resolution “Sustainability is th
Slide 105: Our aspiration: sustainability leadership
OUR ASPIRATION: SUSTAINABILITY LEADERSHIP. FOR US, IT IS NOT SUFFICIENT TO FULFILL THE REQUIREMENTS. WE ARE TAKING THE LEAD. OUR GOAL: Being the most sustainable and successful premium provider, the BMW Group shapes the individual mobility of the future, thus creating an added value for customers, c
Slide 106: Anchoring & managing sustainability
ANCHORING & MANAGING SUSTAINABILITY. INTEGRATION OF SUSTAINABILITY IN THE BMW GROUP’S STRUCTURES AND PROCESSES Sustainability Board BSC BMW Group Comprises the entire Board of Management Perspektive / Strategische Stoßrichtung Finanzen Anspruch Messgröße (Langfristige Steuerung) Total Shareholder
Slide 107: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 108: CO2 legislation in major markets
CO2 LEGISLATION IN MAJOR MARKETS. USA EU 28 China Japan New vehicle fleet 2008 339g/mi (212g/km) n. a. approx. -12% -26% 2015 14.2km/l (166g/km)** 2016 250g/mi (156g/km) 154g/km 6.9l/100km (164g/km) -12% 16.3km/l (146g/km) 2015 approx. 2021 -22% -36% -30% 2015 2020 2020 -52% 120g/km 5.0l/100km* (119
Slide 109: Current discussion of diesel engines
CURRENT DISCUSSION OF DIESEL ENGINES. The BMW Group does not manipulate or rig any emissions tests. We observe the legal requirements in each country and fulfill all local testing requirements. Our exhaust treatment systems are active whether rolling on the test bench or driving on the road. Clear,
Slide 110: Significance of diesel engines for BMW Group
SIGNIFICANCE OF DIESEL ENGINES FOR BMW GROUP. Share of diesel vehicles sold by BMW in 2014 90% 80% 80% 73% 70% 60% 50% 40% 38% 30% 20% 10% 6% 0% Europe Germany US BMW total worldwide BMW Group Investor Presentation, December 2015 Page 110
Slide 111: Future CO2 targets can only be achieved with new drivetrain technologies
FUTURE CO2 TARGETS CAN ONLY BE ACHIEVED WITH THE HELP OF NEW DRIVETRAIN TECHNOLOGIES. Today Tomorrow Lower CO2 emissions Zero emissions Improved combustion engines Aerodynamics Lightweight construction Auto Start-Stop function Hybrid Brake energy regeneration Plug-in hybrid Electro-mobility Fuel cel
Slide 112: EfficientDynamics – our way to reduce CO2
EFFICIENT DYNAMICS – OUR WAY TO REDUCE CO2. Electric power steering ECO PRO Modus Auto Start Stop function Gear shift indicator Aeroblade BMW Group Efficient Dynamics engine Intelligent family for petrol and diesel engines lightweight design BMW TwinPower Turbo Technology Active air flap control Act
Slide 113: New EfficientDynamics engine – scalability of basic design
NEW BMW EFFICIENTDYNAMICS ENGINE - SCALABILITY OF BASIC DESIGN OF ENGINE FAMILY ALLOWS BROADER APPLICATION ACROSS VEHICLE PROJECTS AND TECHNOLOGIES. New Engine Family Vehicles Technologies BMW Group Investor Presentation, December 2015 Page 113
Slide 114: New EfficientDynamics engine family – modular strategy
THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY – MODULAR STRATEGY. Combustion Chamber: • Optimal size, roundabout 500 ccm • Central injector • Minimized friction Different aspects for Gasoline/Diesel: • Cylinder head elements • Combustion process Approximate range of torque and power per cylinder: • Ga
Slide 115: Transferring BMW i technology to core brand vehicles
WE ARE TRANSFERRING BMW i TECHNOLOGY TO OUR CORE BRAND VEHICLES. BMW X5 xDrive40e BMW 330e BMW 225xe ~ 230kW / 313 hp / 450Nm ~ 185 kW / 252 hp / 420 Nm ~165 kW / 224 hp / 385 Nm ~ 3.4 ltr/100km / 78 g CO2/km ~ 2.1 ltr/100km / 49 gCO2/km ~2.1 ltr/100 km / 49 gCO2/km 0-100 km/h 6.8 s 0-100 km/h 6.1 s
Slide 116: The BMW Group 120g fleet
THE BMW GROUP 120G FLEET. Already 86 BMW Group models come with a maximum 120 g CO2/km.1 BMW 116d 3-Door BMW 116d 3-Door 2 BMW 118d 3-Door BMW 120d 3-Door BMW 116d 5-Door BMW 116d 5-Door 2 BMW 118d 5-Door BMW 120d 5-Door 85 kW / 116 hp 85 kW / 116 hp 110 kW / 150 hp 140 kW / 190 hp 85 kW / 116 hp 85
Slide 117: History of hydrogen / fuel cell cars
EFFICIENT DYNAMICS. HISTORY OF HYDROGEN / FUEL CELL CARS. 1984 BMW 745i 1990 BMW 735iL 1998 BMW 728h 2001 BMW 745h 2004 BMW Hydrogen 7 2006 BMW H2R 2015 BMW 5 series GT BMW Group Investor Presentation, December 2015 Page 117
Slide 118: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 119: BMW Group achieves a strong third quarter
BMW GROUP ACHIEVES A STRONG THIRD QUARTER. Revenues - BMW Group Change in % Q3-2015: € 22,345 mn Q3-2014: €19,600 mn +14.0 Profit before tax - BMW Group Q3-2015: € 2,263 mn Q3-2014: € 2,006 mn +12.8 PBT margin: 10.1% PBT margin: 10.2% +0.1 pp Deliveries to Customers (in units) - Automobiles Q3-2015:
Slide 120: BMW Group posts solid 9 months 2015 results
BMW GROUP POSTS SOLID 9 MONTHS 2015 RESULTS. Revenues - BMW Group Change in % 9M-2015: € 67,197 mn 9M-2014: € 57,740 mn +16.4 Profit before tax - BMW Group 9M-2015: € 7,114 mn 9M-2014: € 6,819 mn +4.3 PBT margin: 10.6% PBT margin: 11.8% -1.2 pp Deliveries to Customers (in units) - Automobiles 9M-201
Slide 121: BMW Group achieved a strong FY2014 result
BMW GROUP ACHIEVED A STRONG FY2014 RESULT. Revenues - BMW Group Change in % FY2014: € 80,401 mn FY2013: € 76,059 mn +5.7 Profit before tax - BMW Group FY2014: € 8,707 mn FY2013: € 7,893 mn +10.3 PBT margin: 10.8% PBT margin: 10.4% +0.4 pp Deliveries to Customers (in units) - Automobiles FY2014: 2,11
Slide 122: Value orientation
VALUE ORIENTATION. Automotive: Motorcycles: Financial Services: Return on Capital Return on Capital Return on Equity Employed Employed Vehicle projects: Vehicle projects: Finance & lease Model return based on Model return based on portfolio: DCF DCF Cash flows BMW Group Investor Presentation, Decemb
Slide 123: Effects on Automotive segment's earnings in 2014
EFFECTS ON AUTOMOTIVE SEGMENT’S EARNINGS IN 2014. +1.674 -423 -663 Depreciation Other cost in euro million -19 +26 changes Net effects Other operating Volume/ FX/ income & Mix/Market Raw material expenses 6.649 7.244 EBIT FY-2013* EBIT FY-2014 EBIT margin 9.4% EBIT margin 9.6% BMW Group Investor Pre
Slide 124: EBIT margin development Automotive segment
EBIT MARGIN DEVELOPMENT AUTOMOTIVE SEGMENT. TARGET PROFITABILITY OF 8-10%. 13 in % 11.8 12 10.8 11 9.6 10 9.0 9.4 8.8 Target 9.0 9 8.1 7.9 corridor 8.0 7.8 8 7 6.7 6.4 6.4 6 5 4 3 2 1.4 1 0 -1 -0.6 -2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014 9M- 2015 *) 2012 figure
Slide 125: Dividend development and payout ratio
DIVIDEND DEVELOPMENT AND PAYOUT RATIO. TARGET PAYOUT RATIO OF 30-40%. 2,000 100.0% Total payout (in € million, LHS) 93.8% 1,904 90.0% Payout ratio* (RHS) 1,707 80.0% 1,640 1,500 1,508 70.0% 59.7% 60.0% 1,000 50.0% 852 40.0% 32.1% 32.0% 32.7% 694 30.0% 15.9% 30.7% 500 20.1% 18.7% 17.4% 18.7% 26.3% 22
Slide 126: Net interest-bearing assets Automotive segment
NET INTEREST-BEARING ASSETS AUTOMOTIVE SEGMENT. 31.12.2014 + 5,306 -3,478 Euro million +3,277 Financial liabilities 14,223 + 3,366 Internal net financial receivables from Internal net financial + 5,752 receivables from Other Entities Marketable Segment Financial Services securities Segment Cash and
Slide 127: Operating cash flow and free cash flow Automotive segment
OPERATING CASH FLOW AND FREE CASH FLOW AUTOMOTIVE SEGMENT. 12,000 in euro million 9,964 * 10,000 9,167 9,423 8,150 8,110 8,000 6,000 4,921 4,471 4,471 4,000 3,809 3,481 3,166 3,003 * 2,000 1,456 197 0 2008 2009 2010 2011 2012 2013 2014 Cash inflow from operating activities Free Cash Flow before net
Slide 128: Capital expenditure. Strategic target capex ratio below 7%
CAPITAL EXPENDITURE. STRATEGIC TARGET CAPEX RATIO: BELOW 7%. 7,000 12% in euro million 6,687 1,744 6,100 6,000 1,499 10% 8.8% 5,240 8.8% 4,267 5,000 1,089 4,204 7.6% 7.6% 8% 4,313 7.9% 3,471 4,000 1,536 1,333 1,224 3,263 3,692 6.8% 6.8% 5.4% 5.4% 6% 1,087 5.9% 3,000 951 5.6% 5.4% 5.4% 972 5.2% 4.8%
Slide 129: Research & development costs
RESEARCH & DEVELOPMENT COSTS. STRATEGIC TARGET (CASH) R&D RATIO: 5%-5.5%. 8% 47.9% 50% 44.4% 42.4% 42.8% 7% 36.4% 40% 6.5% 34.3% 6% 32.8% 6.3% 5.6% 28.8% 5.7% 27.6% 30% 5% 5.2% 5.2% 5.3% 5.4% 5.2% 5.1% 5.1% 5.1% 4.8% 4.9% 5.2% 5.1% 5.4% 4.6% 4% 20% 3% 10% 2% 1% 0% 2006 2007 2008 2009 2010 2011 2012
Slide 130: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 131: Central corporate finance strategy supports the entire automotive value chain
THE CENTRAL CORPORATE FINANCE STRATEGY SUPPORTS THE ENTIRE AUTOMOTIVE VALUE CHAIN. Research & Sales & Financial Production Development Marketing Services The main target of the Group funding strategy is ensuring BMW Group‘s solvency, also in times of crisis. Financial Flexibility Ensure sustainable
Slide 132: Corporate finance capabilities
CORPORATE FINANCE CAPABILITIES. Categories of available instruments over the spectrum of maturities: <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ CP (EMTN) PPs Bonds ABCP ABS - Term Retail Institutional Customer Deposits / Brokered CDs Bank Loans CP (EMTN) Private Placements Retail Institutional Attract
Slide 133: Broad investor base
BROAD INVESTOR BASE. Euro Capital Markets EUR Commercial Paper South Korea French Commercial Paper KRW Domestic Bond USA Great Britain EUR (EMTN) PPs USD ABS USD Commercial Paper GBP (EMTN) PPs EUR Benchmark Bonds USD US PP GBP Bonds USD Eurodollar Japan USD ABS GBP ABS AUD Euroaussie NOK (EMTN) Bon
Slide 134: Development of BMW Group liquidity
DEVELOPMENT OF BMW GROUP LIQUIDITY. Cash & cash equivalents Marketable securities & investment funds 14 in euro billion 12.0 11.7 12 11.3 10.9 10.8 11.0 11.0 11.0 11.0 10.7 10.7 10.7 10.6 10.1 2.7 10 9.4 2.6 2.7 2.9 3.1 4.0 9.0 2.7 3.0 3.0 3.1 3.2 3.1 2.3 8.2 1.6 1.6 5.1 8 0.7 6 4.4 9.3 4 8.1 8.5 8.
Slide 135: Development of 5-year CDS
DEVELOPMENT OF 5-YEAR CDS. 500 bps 400 300 200 100 0 Source: Reuters Credit Views as of December 9, 2015 BMW Group Investor Presentation, December 2015 Page 135
Slide 136: Bond and private placement maturities
BOND AND PRIVATE PLACEMENT MATURITIES. 12,000 in euro million Issuance Maturities 10,000 8,000 6,000 4,000 2,000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Status as of September 30, 2015; Maturities based on nominal values excluding derivatives. BMW Group Investor
Slide 137: Financial debt as of September 30, 2015
FINANCIAL DEBT AS OF SEPTEMBER 30, 2015. EUR 82.5 bn* Debt Maturity** Structured finance 3.3% Bank Loans ≤1 year 8.4% Customer deposits 9.7% 46.0% 0.7% Fed Funds (46.5%***) EMTNs/ 49.8% 54.0% Bonds/ 5.8% (53.5%***) Brokered CD’s SSDs 5.6% Commercial Paper 16.2% ABS > 1 year 0.5% Others *Adjusted, ex
Slide 138: Funding activity in 2014 & 2015
FUNDING ACTIVITY IN 2014 & 2015. German Loan Term ABS, August 2014, EUR 1.0bn Brazil Dealer Floorplan Conduit, August 2014, BRL 200m South Africa Loan Term ABS, September 2014, ZAR 950m USA Loan Term ABS, October 2014, USD 1.0bn ABS USA Lease Term ABS, January 2015, USD 1.0bn Canada Leas
Slide 139: Content
CONTENT. 1 BMW IR AT A GLANCE 8 MOBILITY SERVICES 2 CORPORATE STRATEGY 9 PRODUCTION NETWORK 3 BMW i 10 SUSTAINABILITY 4 GROWTH MARKETS 11 EFFICIENT DYNAMICS 5 AUTOMOTIVE 12 FINANCIALS 6 MOTORCYCLES 13 FUNDING 7 FINANCIAL SERVICES 14 CONTACTS & CALENDAR
Slide 140: BMW Group Investor Relations – Contacts
BMW GROUP INVESTOR RELATIONS – CONTACTS. Torsten Schüssler Bernd Daser Patrick Neumayer Head of Investor Relations Debt & Equity IR Equity IR +49-89-382-25387 +49-89-382-31684 +49-89-382-24272 torsten.schuessler@bmw.de bernd.daser@bmw.de patrick.neumayer@bmw.de Andreas Stöffler Ziye Zhou Equity IR D
Slide 141: BMW Group Investor Relations – Financial calendar
BMW GROUP INVESTOR RELATIONS – FINANCIAL CALENDAR 2015. 16.03.2016 Annual Account Press Conference 2016 16.03.2016 Annual Report 2015 17.03.2016 Analyst and Investor Conference 2016 03.05.2016 Quarterly Report to March 2016 12.05.2016 Annual General Meeting 2016 02.08.2016 Quarterly Report to June 2
Slide 142: BMW Investor Relations on the road 2015
BMW INVESTOR RELATIONS ON THE ROAD 2015. 11.11.2015 CFO Roadshow London 19.11.2015 Barclays Automotive Conference New York 20.11.2015 IR Roadshow Boston 19.-20.11.2015 Société Générale ESG/SRI Conference Paris 25.11.2015 CFO Roadshow Frankfurt 02.12.2015 Société Générale Premium Review Conference Pa
Slide 143: 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