Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (March 2015)
37 slides from Bayerische Motoren Werke's investor presentation, Mar 26, 2015
Slide 1: BMW Group Driven for Growth in America
March 26, 2015 BMW GROUP DRIVEN FOR GROWTH IN AMERICA. LUDWIG WILLISCH PRESIDENT AND CEO, BMW OF NORTH AMERICA, HEAD OF REGION AMERICAS.
Slide 2: The BMW Group in the U.S.
THE BMW GROUP IN THE U.S. 1. Business Review. 2. Strength of Brand and Product Strategy. 3. Economic and Market Perspective. 4. Future Retail Strategy – Driving Customer Delight.
Slide 3: A Clear Mission
THE BMW GROUP IN THE U.S. A CLEAR MISSION. "The BMW Group is the world's leading provider of premium products and premium services for individual mobility."
Slide 4: BMW Group Americas Footprint Expanding in Region
BMW GROUP AMERICAS FOOTPRINT EXPANDING IN REGION. BMW SGL Joint Venture BMW Canada NSC Carbon Fiber Plant – WA BMW Americas HQ – NJ BMW Manufacturing – SC BMW Manufacturing – MX (Future Site) BMW MX/LatAm RO BMW do Brazil NSC BMW Manufacturing – Brazil BMW de Argentina NSC
Slide 5: 2014 Premium Leader Worldwide – Best Year Ever in Americas
2014 PREMIUM LEADER WORLDWIDE – 10 YEARS IN A ROW. BEST YEAR EVER, PREMIUM LEADER IN AMERICAS. – Global – 2.1 Million + vehicles sold worldwide – new Global Sales Record. – US – best year ever for BMW, Premium Leader 3rd time in 4 years. – Canada – best year ever for BMW, 24th consecutive year of gr
Slide 6: A Strong and Lasting Commitment to the United States
THE BMW GROUP. A STRONG AND LASTING COMMITMENT TO THE UNITED STATES. Page 6
Slide 7: A Strong and Lasting BMW Group Commitment to America
BMW GROUP. A STRONG Today AND there are over 25 LASTING COMMITMENT BMW Group company TO the locations across AMERICA. U.S. as well as a network of over 640 dealers representing all four brands: Page 7
Slide 8: Retail Network Footprint of 642 Stores
THE BMW GROUP IN THE U.S. RETAIL NETWORK FOOTPRINT OF 642 STORES. U.S. Retail Network (as of March, 2015) – 339 BMW dealers – 35 Rolls-Royce dealers – 122 MINI dealers – 146 BMW Motorrad dealers
Slide 9: BMW of North America Founded in 1975
THE BMW GROUP IN THE U.S. BMW OF NORTH AMERICA FOUNDED IN 1975. Back then, BMW was headquartered in Montvale NJ. Only four models in model line-up – total sales of 19,000 units. – BMW 2002 – BMW 530i – BMW Bavaria – BMW 3.0 CS Page 9
Slide 10: Historic Sales Development – BMW Brand
THE BMW GROUP IN THE U.S. HISTORIC SALES DEVELOPMENT – BMW BRAND. Product driven growth. 63,000 to 340,000 units, 1990 – 2014. Doubled BMW Brand U.S. Sales from 1999 to 2014. 400000 350000 300000 250000 200000 150000 100000 50000 0 Page 10
Slide 11: Historic MINI Sales Development in the U.S.
HISTORIC MINI SALES DEVELOPMENT IN THE U.S. MINI establishes premium small car segment in U.S. Growth driven by expansion of model portfolio. 610,000 cars sold in US since brand introduced in 2002. 70000 60000 50000 40000 30000 20000 10000 0 Page 11
Slide 12: Historic Sales Development: Motorrad
THE BMW GROUP IN THE U.S. HISTORIC SALES DEVELOPMENT: MOTORRAD. Sales growth, from 3,200 to over 15,500 units per year since BMW NA began selling motorcycles in U.S. in 1981. 18000 16000 14000 2014 12000 10000 8000 6000 4000 2000 0 1981 1984 1994 2004 2014 1981 Page 12
Slide 13: The BMW Group in the U.S.
THE BMW GROUP IN THE U.S. 1. Business Review. 2. Strength of Brand and Product Strategy. 3. Economic and Market Perspective. 4. Future Retail Strategy – Driving Customer Delight.
Slide 14: Success Built on Three Key Elements
THE BMW GROUP. SUCCESS BUILT ON THREE KEY ELEMENTS. Success of the BMW Group Satisfied Authentic and Exceptional Customers Desirable Products Brands
Slide 15: BMW the World's Most Valuable Premium Automobile Brand
BMW THE WORLD’S MOST VALUABLE PREMIUM AUTOMOBILE BRAND. AND AHEAD OF OTHER BLUE-CHIP BRANDS – AS RATED BY FORBES.
Slide 16: BMW i3. How Do You Know You Did Something Right?
BMW i3. HOW DO YOU KNOW YOU DID SOMETHING RIGHT?
Slide 17: Electric Segment – February 2015
ELECTRIC SEGMENT – FEBRUARY 2015. SEGMENT SALES THROUGH FEBRUARY UP 8% VS LAST YEAR. 4,000 140.0% -15.3% -29.0% February '14 February '15 120.0% 100.0% 3,000 80.0% 0.0% -42.0% 60.0% 2,000 40.0% 2,268 0.0% 0.4% 2% 25.0% 0.0% 20.0% 2,200 121% 1,759 0% 0.0% 1,235 Year-to-Date Sales. * Tesla S sales est
Slide 18: BMW i in the U.S. Market. Born Electric
BMW i IN THE U.S. MARKET. “BORN ELECTRIC”. The U.S. will be the world’s largest BMW i market • Start of sales i3 in April 2014, 6,092 cars sold in 2014 • Start of sales i8 in August 2014, 555 cars sold in 2014 • i3 price at $41,350 (MSRP)*, i8 price at $135,700 (MSRP)* California alone will represen
Slide 19: Sedans & SAVs Dominate Premium Segment
SEDANS & SAVS DOMINATE PREMIUM SEGMENT. 1.65 MN SOLD IN 2014 NOT INCLUDING SMALL PREMIUM COMPACT CLASS. „Trucks“ Sedan Wagon Hatch Coupe Cabrio Roadster 4 Dr. Coupe SAT SUV SAV Luxury PlusPlus 1,939 4,963 2,216 1,597 Luxury Plus 61,197 11,220 6,350 5,395 4,781 50,546 39,427 Upper Medium 231,995 2,32
Slide 20: BMW SAVs – Almost 1 Million X Vehicles Sold in the US
BMW SAVS – ALMOST 1 MILLION X VEHICLES SOLD IN THE US SINCE THE FIRST X5 WAS INTRODUCED IN 1999. 1999 – BMW X5 TODAY – BMW X3, X4, X5, X6, X5 M, X6M Proudly built in the USA
Slide 21: The BMW Group in the U.S.
THE BMW GROUP IN THE U.S. 1. Business Review. 2. Strength of Brand and Product Strategy. 3. Economic and Market Perspective. 4. Future Retail Strategy – Driving Customer Delight.
Slide 22: The World Is Getting More Complex
THE WORLD IS GETTING MORE COMPLEX. POLITICAL UNCERTAINTIES HAVE IMPACT ON ECONOMY IN THE US.
Slide 23: U.S. Continues to See Positive Economic Outlook
U.S. CONTINUES TO SEE POSITIVE ECONOMIC OUTLOOK. REAL GDP GROWTH EXPECTED TO REBOUND OVER REST OF 2015. Real GDP Growth Forecast Consumer Confidence 110 +23 pts. over 12 months 103.8 5.0 4.5 4.6 100 -7 pts. 93.4 3.5 96.4 3.1 3.0 90 2.9 89.0 2.7 2.4 81.8 80.7 2.2 1.8 80 73.1 78.3 70 68.0 72.0 Q1: 13
Slide 24: Strong Luxury Retail Spending in the U.S.
STRONG LUXURY RETAIL SPENDING IN THE U.S. – TOPS GLOBAL LIST.
Slide 25: U.S. Light Vehicle Market – December 2014 YTD Sales
U.S. LIGHT VEHICLE MARKET – DECEMBER 2014 YTD SALES. 16 MILLION + MARKET – PREMIUM SEGMENT STRONGER THAN INDUSTRY. U.S. Industry Light Vehicle Sales Premium Segment Sales December 2013 December 2014 December 2013 December 2014 20,000,000 2,000,000 5.9% 6.8% 15,000,000 1,500,000 1,656,877 16,522,000
Slide 26: U.S. Importance for Global Car Market
U.S. IMPORTANCE FOR GLOBAL CAR MARKET. CARS & LIGHT-TRUCKS – PREMIUM SEGMENT KEY CONTRIBUTOR. US Share of US Share of US Share of Total Market Premium Segment Luxury ++ and Luxury + subsegment 16.5 m. 1.66 m. 0.19 m. 21% 19% 37% 81% 79% 63%
Slide 27: 56% of Premium Segment Sales in Only 6 States
56% OF PREMIUM SEGMENT SALES DONE IN ONLY 6 STATES: CA, FL, NY, TX, NJ AND PA – CA IS NUMBER ONE PREMIUM MARKET IN US. Act. 2012 CARB States #17 WA #44 #45 ME MT #51 #29 ND VT OR #24 #29 OR MN #3 #3 NHMA #46 ID #26 NY NY CT #49 #50 SD WI #8 8.8% 8.8% WY MI RI #5 #37 #6 #6 PA PA MD NJ 6.3% #28 #41 IA
Slide 28: U.S. Market Climate Characteristics. AWD Importance
U.S. MARKET CLIMATE CHARACTERISTICS. “AWD” IMPORTANCE IN PREMIUM SEGMENT. North of the snowbelt: 80% of all Premium vehicles come with AWD 2014 Premium Sales North: 759,216 Snowbelt 2014 Premium Sales South: 802,213 South of the snowbelt: AWD Penetration: Only 29% of all Premium vehicles come with (
Slide 29: The BMW Group in the U.S.
THE BMW GROUP IN THE U.S. 1. Business Review. 2. Strength of Brand and Product Strategy. 3. Economic and Market Perspective. 4. Future Retail Strategy – Driving Customer Delight.
Slide 30: Changing Expectations of New Generation of Retail Customers
CHANGING EXPECTATIONS OF NEW GENERATION OF RETAIL CUSTOMERS REQUIRES NEW WAYS OF SATISFYING AND DELIGHTING THEM.
Slide 31: Changing Expectations of New Generation of Retail Customer
CHANGING EXPECTATIONS OF NEW GENERATION OF RETAIL CUSTOMER. Today’s customer better informed Expect knowledgeable staff Prefer to stay at home Want their time valued Expect higher price transparency Inviting, no-pressure environment Less loyal, and willing to walk
Slide 32: Fewer Showroom Visits, More Internet Traffic
CHANGING EXPECTATIONS OF NEW GENERATION OF RETAIL CUSTOMER. FEWER SHOWROOM VISITS, MORE INTERNET TRAFFIC. 2003 2014 Nr. of dealer visits per annum Internet use before car purchase (%) Readiness to buy a car online (%) Readiness to buy parts online (%) Readiness to buy options online (%)
Slide 33: BMW Future Retail – Holistic Approach to Premium Retail Experience
BMW FUTURE RETAIL IN THE U.S. – HOLISTIC APPROACH TO PREMIUM RETAIL EXPERIENCE. – Focus on providing Premium Customer Experience at every touch-point to satisfy a new generation of customers, and exceed their expectations. – Be well-prepared for the continued expansion of the BMW product line-up tha
Slide 34: BMW Genius Delivers Pressure-Free Product Consultation
BMW FUTURE RETAIL IN THE U.S. BMW GENIUS DELIVERS PRESSURE-FREE PRODUCT CONSULTATION. –BMW Geniuses stand for pressure-free, knowlegble, enthusiastic product consultation at dealership. –They are available to offer their knowledge and assistance before and after the sale. –Latest technology leverage
Slide 35: BMW Future Retail – Modern, New Facilities
BMW FUTURE RETAIL IN THE U.S. – MODERN, NEW FACILITIES.
Slide 36: BMW Future Retail – Holistic Approach to New Retail Experience
BMW FUTURE RETAIL IN THE U.S. – HOLISTIC APPROACH TO NEW RETAIL EXPERIENCE. –BMW Genius: 500 BMW Geniuses at dealers – 750 by close of year. –BMW Pop-Up Store: Pilot launched, South Coast Plaza Mall, Orange County, CA, 100,000 visitors, driving leads and sales. –New Technologies: 316 Virtual Product
Slide 37: The BMW Group and the Historic Strength of the US Market
THE BMW GROUP IN THE U.S. As a global company, the BMW Group has been supported by the historic influence, scale and strength of the US market. Our future success will be driven by the continued investment in, and commitment to the United States.