Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (September 2019)
55 slides from Bayerische Motoren Werke's investor presentation, September 2019
Slide 1: BMW Group Investor Presentation September 2019
BMW GROUP INVESTOR PRESENTATION September 2019
Slide 2: Strategy Number One NEXT: We are Number ONE
STRATEGY NUMBER ONE NEXT. We are Number ONE. We inspire people on the move: We shape tomorrow’s individual premium mobility. Brands & Design Products Technologies Customer Experience & Services Digitalization Profitability BMW Group Investor Presentation, September 2019 Page 2
Slide 3: ACES are a core element of Strategy Number One > NEXT
ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. AUTONOMOUS CONNECTED ELECTRIFIED SHARED / SERVICES BMW Group Investor Presentation, September 2019 Page 3
Slide 4: BMW Group's electrification pathway
BMW GROUP’S ELECTRIFICATION PATHWAY. Roll-out BMW i Performance LCI BMW i3, new BMW i3s Upgrade BMW i3 MINI PHEV BMW iNext BMW Vision i4 MINI Electric BMW M Vision Building-up expertise BMW iX3 Technology innovation Project i I. PIONEERING II. ELECTRIFICATION OF CORE PORTFOLI
Slide 5: Our future is electric: ambitious targets for electrified vehicle sales
OUR FUTURE IS ELECTRIC. AMBITIOUS TARGETS FOR SALES OF ELECTRIFIED VEHICLES. ELECTRIFIED DOUBLE 2019 ELECTRIFIED 30% ELECTRIFIED VEHICLE SALES VEHICLE SALES VEHICLES By 2021 GROWTH RATE P.A. 500,000 Until 2025 142,600 2018 BY THE END 103,000 OF 2019 ON 2017 THE ROAD 62,000 2016 32,000 2015 17,800 20
Slide 6: At least 25 electrified models by 2023
OUR CLEAR ROADMAP: AT LEAST 25 ELECTRIFIED MODELS BY 2023, INCLUDING AT LEAST 13 FULLY ELECTRIC CARS. Fully electric BMW i3 94 Ah / 33 kWh BMW Vision i4* BMW iX3* BMW i3 BMW i3, BMW i3s BMW i3, BMW i3s MINI Electric 60 Ah / 22 kWh 94 Ah / 33 kWh 120 Ah / 42 kWh BMW iNEXT* 2013 2014 2015 2016 2017 20
Slide 7: The all-electric MINI Cooper SE, MINI Countryman Plug-in Hybrid
THE ALL-ELECTRIC MINI COOPER SE. MINI COUNTRYMAN PLUG-IN HYBRID. BMW Group Investor Presentation, September 2019 Page 7
Slide 8: The BMW Concept iX3
THE BMW CONCEPT iX3. ELECTRIC MOBILITY ARRIVES AT THE CORE OF BMW. BMW Group Investor Presentation, September 2019 Page 8
Slide 9: The BMW i Vision Dynamics will be built as i4 in Munich
THE BMW i VISION DYNAMICS WILL BE BUILT AS i4 IN MUNICH. A NEW FORM OF ELECTRIFYING DRIVING PLEASURE. BMW Group Investor Presentation, September 2019 Page 9
Slide 10: The BMW Vision iNEXT
THE BMW VISION iNEXT. FUTURE FOCUSED. iNEXT– THE BUILDING BLOCKS FOR THE FUTURE. BMW Group Investor Presentation, September 2019 Page 10
Slide 11: The BMW M Vision
THE BMW M VISION. A STATEMENT FOR THE DRIVER. BMW Group Investor Presentation, September 2019 Page 11
Slide 12: BMW i: from born electric to one platform serves all
BMW i. FROM “BORN ELECTRIC” TO “ONE PLATFORM SERVES ALL”. FLEXIBLE VEHICLE ARCHITECTURE TO ENSURE QUICK RESPONSE TO DEMAND. 2013 FROM “Born electric” 2021 ON One platform fits all powertrain derivatives… Combustion engine Plug-In-Hybrid Pure electric BMW Group Investor Presentation, September 2019 S
Slide 13: What will drive acceptance and profitability of e-mobility
WHAT WILL DRIVE THE ACCEPTANCE AND THE PROFITABILITY OF E-MOBILITY GOING FORWARD… + ACCEPTANCE OF EVS Regulation favors E-Mobility with purchasing or tax incentives or non cash benefits like parking, commuter lanes,.. + PROFITABILITY OF EVS Utilization of the pricing potential of BEV/PHEVs Optimizat
Slide 14: From assisted functions to full automation
THE DEVELOPMENT OF TODAY’S ASSISTED FUNCTIONS TO FULL AUTOMATION EQUALS A TECHNOLOGICAL QUANTUM LEAP. PILOT FLEET 2021 SOP 2021 130 Already in series production -Basis for HAD & FAD- HIGHWAY URBAN L0 L1 L2 L3 L4 L5 HANDS ON HANDS ON HANDS TEMP. OFF HANDS OFF HANDS OFF HANDS OFF EYES ON EYES ON EYES
Slide 15: New BMW 5 Series driver assistance systems
THE NEW BMW 5 SERIES DRIVER ASSISTANCE SYSTEMS PROVIDE COMFORT AND SAFETY AT THE HIGHEST LEVEL. Crossing traffic Lateral parking aid Distance information Top View Remote warning rear / front Night Vision Lane departure warning Lane keeping assistant with active side collision protection Active cruis
Slide 16: Automated driving at the BMW Group
AUTOMATED DRIVING AT THE BMW GROUP. BMW Group Investor Presentation, September 2019 Page 16
Slide 17: Autonomous driving requires cooperation with leading tech companies
AUTONOMOUS DRIVING REQUIRES TO COOPERATE WITH LEADING COMPANIES WITHIN THE TECH INDUSTRY. – Sensors: camera, radar, LIDAR – Centimeter precision – Ultra low latency – Worldwide regulation – Object fusion – Real-time capable – Ultra high reliability – Unified homologation – Road model – Highly availa
Slide 18: Autonomous driving: BMW Group's transformation into a tech company
AUTONOMOUS DRIVING. BMW GROUP’S TRANSFORMATION INTO A TECH COMPANY. NEW AUTONOMOUS DRIVING CAMPUS Next steps towards fully- automated driving, from software development to road testing. Agile teams, short distances and short decision-making processes. Room for 1,800 employees. NEW DRIVING SIMU
Slide 19: BMW Group and Daimler AG are joining forces
BMW GROUP AND DAIMLER AG ARE JOINING FORCES – OUR CURRENT OFFERINGS SUPPLEMENT EACH OTHER PERFECTLY TO ENSURE PERSONAL FREEDOM FOR OUR CUSTOMERS. BMW Group Investor Presentation, September 2019 Page 19
Slide 20: The joint venture mobility powerhouse
YOUR NOW JOINT VENTURE. THE "MOBILITY POWERHOUSE" WITH A SIGNIFICANT END CUSTOMER BASE AND COVERAGE WORLDWIDE. Overall H1 2019 >4 30.4 7.5 33.4* 0.02 >75 Customers** in millions 18.2 122.0 16.4 111.9* 0.12 268.6 Interactions in millions 31 130 22 >1,200* n/a >1,200 Cities** GMV RR*** in billions € 3
Slide 21: Strong product momentum and mix improvement
A STRONG PRODUCT MOMENTUM AND THE MIX IMPROVEMENT WILL FOSTER GROWTH AND PROFITABILITY. … BMW i8 Roadster BMW 8 Series BMW Z4 Rolls Royce Cullinan BMW 3 Series MINI Cooper SE BMW X2 BMW X5 BMW X6 BMW X7 … BMW Group Investor Presentation, September 2019 Page 21
Slide 22: Fresh line-up of the X family
VERY ATTRACTIVE AND FRESH LINE UP OF THE X FAMILY SUPPORTS GROWTH AND PRODUCT MIX. BMW X1 BMW X2 BMW X3 BMW X4 BMW X5 BMW X6 BMW X7 BMW Group Investor Presentation, September 2019 Page 22
Slide 23: The BMW Z4
THE BMW Z4. FREEDOM ON FOUR WHEELS. BMW Group Investor Presentation, September 2019 Page 23
Slide 24: The new BMW 3 Series Sedan
THE NEW BMW 3 SERIES SEDAN. SPORTY DRIVING PLEASURE, NEW DESIGN LANGUAGE, AND TRAILBLAZING DRIVER ASSISTANCE TECHNOLOGY. BMW Group Investor Presentation, September 2019 Page 24
Slide 25: The BMW X7
THE BMW X7. FUSION OF DRIVING PLEASURE AND LUXURY. BMW Group Investor Presentation, September 2019 Page 25
Slide 26: BMW 8 Series Coupé, Convertible and Gran Coupé
BMW 8 SERIES COUPÉ , CONVERTIBLE AND GRAN COUPÉ. THE PINNACLE OF SPORTS PERFORMANCE AND EXCLUSIVITY. BMW Group Investor Presentation, September 2019 Page 6 Page 26
Slide 27: The new Rolls-Royce Cullinan
THE NEW ROLLS-ROYCE CULLINAN – EFFORTLESS EVERYWHERE. LUXURY, PERFORMANCE AND USABILITY NOT SEEN BEFORE IN THE SUV MARKET. BMW Group Investor Presentation, September 2019 Page 27
Slide 28: Global premium segment sales expected to grow at CAGR of 1.8%
GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW AT A CAGR OF 1.8% TO 11.8 MN UNITS BY 2031. 12,000 Rest of World, CAGR +3.2% 10,000 BRIKT*, CAGR +3.9% 8,000 China, CAGR +3.4% Region (‘000 units) 2019 2031 Chg. 6,000 World 9,481,097 11,799,772 24% Japan, CAGR -1.7% Rest of World 643,713 941,
Slide 29: Premium segment share of total market 2019
PREMIUM SEGMENT SHARE OF TOTAL MARKET 2019. 30% 27% 25% 25% 20% 15% 13% 12% 11% 11% World Average: 10.0% 11% 10% 10% 10% 10% 9% 7% 7% 6% 5% 0% Germany United Spain SouthKorea Italy USA SouthAfrica Canada Australia China France Russia Turkey Japan Kingdom BMW Group Investor Presentation, September 20
Slide 30: BMW Group sales at last year's high level through July 2019
BMW GROUP SALES AT LAST YEAR’S HIGH LEVEL THROUGH JULY 2019. 1,436,382 +0.9% 1,233,075 +1.6% 200,379 -3.5% 2,928 +42.3% 109,280 +7.3% BMW Group Investor Presentation, September 2019 Sales figures YTD-07/2019 Page 30
Slide 31: Automotive: balanced sales distribution YTD-07/2019
BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND YTD-07/2019 AT LAST YEAR‘S HIGH LEVEL WITH A TOTAL OF 1,436,382 VEHICLES (+0.9%). Asia (w/o China) Americas Europe Mainland China & Rest of World* -2.1% +16.6% -1.7% -15.1% 18% 44% 28% 11% 255,451 units 625,463 units 404,023 units 151,445 units S
Slide 32: Automotive major markets: deliveries to customers YTD-07/2019
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD-07/2019. Deliveries of automobiles YTD-07/2019 YTD-07/2018 Change in % Europe 625,463 638,664 -2.1 thereof Germany 192,392 179,795 +7.0 Great Britain 132,304 135,494 -2.4 Americas 255,451 259,954 -1.7 thereof USA 199,865 202,300 -1.2 As
Slide 33: BMW and MINI retail sales development in Mainland China
BMW AND MINI RETAIL SALES DEVELOPMENT IN MAINLAND CHINA YTD-07/2019. Share of JV Sales (through BMW Brilliance Automotive) 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 65% 72% 71% 75% +7.7% +15.1% 640.0 in ‘000 units +11.4% 594.4 +1.7% Import JV Sales +16.7 % 516.4 +19.7 % 463.7 456.0 +16.6% +40.3 % 390.
Slide 34: Growth in China despite market normalization
GROWTH IN CHINA DESPITE MARKET NORMALIZATION. GROWTH OF DEALER NETWORK AND FURTHER LOCALIZATION. 6 MODELS IN LOCAL PRODUCTION & MORE TO COME 5 SERIES X1 BMW and MINI outlets in China (as of 31 December 2018) 3 SERIES 2 SERIES ACTIVE TOURER Outlet BMW MINI North 112 27 East 118 30 1 SERIES SEDAN X3 S
Slide 35: Automobile production by plant in 2018
AUTOMOBILE PRODUCTION BY PLANT IN 2018. 0% Munich, Germany BMW 3, 4 series 157,799 3% 6% 8% Dingolfing, Germany BMW 3, 4, 5, 6, 7, 8 series 328,862 2% 13% Regensburg, Germany BMW 1, 2, 3, 4 series, X1, X2 319,592 Leipzig, Germany BMW 1, 2 series, i3, i8 244,248 9% Rosslyn, South Africa BMW 3 series,
Slide 36: BMW Motorrad: wider range than ever before
BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. URBAN ADVENTURE TOUR SPORT ROADSTER HERITAGE MOBILITY BMW Group Investor Presentation, September 2019 Page 36
Slide 37: BMW Motorrad Vision DC Roadster
BMW MOTORRAD VISION DC ROADSTER. THE ELECTRICAL AWAKENING OF THE BOXER ENGINE. BMW Group Investor Presentation, September 2019 Page 37
Slide 38: BMW Group Financial Services at a glance
BMW GROUP FINANCIAL SERVICES AT A GLANCE. Global Presence as of 12/2018 Business Lines as of 12/2018 Global Operations in 60 Countries Retail Finance Dealer Finance € 96.1 bn € 20.4 bn ~ 4.9 Million Serviced Retail Contracts Fleet Business Multi Make Financing EU Bank 21% € 13.0 bn € 6.6 bn Americas
Slide 39: Financial Services contribution to Group profit
SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Earnings before Tax (EBT) Financial Services [in mn €] 2,207 2,166 2,161 SF 19% 1,975 3) 1,790 1,723 4) 1,561 1,619 2) 1,214 743 365 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1) -292 1) FY-08 EBT includes a negativ
Slide 40: Financial Services: credit loss ratio
BMW GROUP FINANCIAL SERVICES. SOLID DEVELOPMENT OF CREDIT LOSS RATIO. Credit loss ratio* [in %] 0.84 0.67 0.59 0.49 0.50 0.48 0.46 0.46 0.41 0.37 0.34 0.32 0.25 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 * Definition Credit Loss Ratio : credit losses in relation to the average
Slide 41: BMW Group Financial Year 2018 key financials
BMW GROUP FINANCIAL YEAR 2018. KEY FINANCIALS UNDERLINE BMW GROUP’S STRONG OPERATING PERFORMANCE. FY-2018 FY-2017 FY-2017 BMW Group Change in % reported adjusted* reported Earnings before tax – Group (in m€) 9,815 10,675 10,655 -8.1 EBT margin (in %) – Group 10.1 10.9 10.8 -0.8 pp Payout Ratio (in %
Slide 42: BMW Group Q2-2019
BMW GROUP Q2-2019. IN A HISTORICALLY TOUGH ENVIRONMENT THE BMW GROUP REACHED ITS TARGETS. Q2-2019 Q2-2018 Q2-2018 BMW Group reported adjusted* reported Change in % Earnings before tax – Group (in m€) 2,053 2,866 2,873 -28,4 EBT margin (in %) – Group 8.0 11.5 11.5 -3.5 pp Automotive Segment Automotiv
Slide 43: BMW Group H1-2019
BMW GROUP H1-2019. A PROVISION RECOGNITION*, HIGH VOLATILITY AND COMPETITIVE MARKETS AS WELL AS INVESTMENTS IN FUTURE IMPACTED H1- 2019 RESULT. H1-2019 H1-2018 H1-2018 BMW Group reported adjusted** reported Change in % Earnings before tax – Group (in m€) 2,815 6,005 6,038 -53.1 EBT margin (in %) – G
Slide 44: Automotive segment EBIT margin
AUTOMOTIVE SEGMENT EBIT MARGIN. CORE BUSINESS REMAINS ON TRACK FOR SUCCESS. EBIT margin [in %] 11.8 10.8 9.4 9.6 9.2 9.2 8.9 8.0 7.2 2010 2011 2012 2013* 2014 2015 2016 2017** 2018 * 2013 figures have been adjusted in accordance with IAS 8 ** adjusted value for 2017 in accordance with IFRS 15 BMW Gr
Slide 45: Free cash flow in Automotive segment remains strong
FREE CASH FLOW IN AUTOMOTIVE SEGMENT REMAINS STRONG, DESPITE SIGNIFICANTLY HIGHER INVESTMENTS. Free Cash Flow (Automotive)* [in m€] 5,792 5,404 4,471 4,459 3,809 3,481 3,166 Long-term 3,003 target: 2,713 2,277 > 3 billion 1,456 1,156 197 2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 2
Slide 46: R&D expenditure and R&D ratio
THE BMW GROUP IS COMMITTED TO PLAYING A KEY ROLE IN TOMORROW’S MOBILITY AND IS INVESTING SUBSTANTIAL AMOUNTS IN NEW TECHNOLOGIES. R&D Expenditure* R&D Ratio** [in m€, HGB] [in %, HGB] 8,000 7.1 7,000 6.3 6.2 6.5 6,890 6,000 5.7 Long-term 5.6 5.5 6,108 target ratio: 5.6 5.1 5,000 5.4 4.9 4,792 5%-5.5
Slide 47: Tight management of capital expenditure
TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO. BMW Group Capital Expenditure* Capex Ratio** [in6,000 m€] [in %] 10 9 4,967 5,029 5,000 4,601 4,688 8 4,151 7 4,000 3,826 3,731 2,980 6.5 Long-term 6 2,933 2,777 5.7 4.8 target ratio: 3,000 5.7 2,720 5.4 <5% 5 5.6 4.0 5.2 5.2 2,383 2,3
Slide 48: Performance > NEXT: important decisions being implemented
PERFORMANCE > NEXT. IMPORTANT DECISIONS ALREADY BEING IMPLEMENTED. CUSTOMER VEHICLE PROCESS COOPERATIONS AND SALES AND STRUCTURE Improvement in sales Complexity and product Optimization of indirect Project-based cooperations for performance and variety reduction while purchasing and material cost op
Slide 49: Outlook 2019
OUTLOOK 2019. SETTING HIGH STANDARDS IN CHALLENGING ENVIRONMENT. AUTOMOTIVE MOTORCYCLES FINANCIAL BMW SERVICES GROUP Slight increase Solid increase Return on Equity Significant decrease in Group in deliveries. in deliveries. on par with previous year's earnings before tax. level. EBIT-margin between
Slide 50: Finance strategy covers the entire automotive value chain
BMW GROUP’S FINANCE STRATEGY COVERS THE ENTIRE AUTOMOTIVE VALUE CHAIN. BMW GROUP CORPORATE FINANCE STRATEGY REFLECTS THE INDUSTRIAL NATURE OF THE BUSINESS AND IS FOCUSED ON THE ENTIRE AUTOMOTIVE VALUE CHAIN. Automotive value chain Research & Development Production Sales & Marketing Financial Service
Slide 51: Diversified funding mix
DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of FY 2018 Commercial Derivative Other paper instruments 2% 1% <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ 2% CP (EMTN) PPs Bonds Liabilities from Banks loans customer de
Slide 52: BMW Group Investor Relations contacts
BMW GROUP INVESTOR RELATIONS. CONTACTS. Torsten Schüssler Mariam Kremer Patrick Neumayer Head of Investor Relations Debt & Equity IR Debt & Equity IR +49-89-382-25387 +49-89-382-96136 +49-89-382-24272 torsten.schuessler@bmw.de mariam.kremer@bmw.de patrick.neumayer@bmwna.com Tanja Seiler Andreas Stöf
Slide 53: Financial calendar 2019/2020
BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2019/2020. 06.11.2019 Quarterly Statement to 30 September 2019 18.03.2020 Annual Accounts Press Conference 19.03.2020 Analyst and Investor Conference 06.05.2020 Quarterly Statement to 31 March 2020 14.05.2020 Annual General Meeting 05.08.2020 Quarterl
Slide 54: Investor Relations on the road H2-2019
BMW GROUP INVESTOR RELATIONS. ON THE ROAD H2-2019. Los Angeles, 04./05.09.2019 CFO Roadshow US West Coast San Francisco 10./11.09.2019 dbAccess IAA Cars Conference 2019 Frankfurt 10.11.2019 BMW Group Analyst and Investor Evening Event at the IAA Frankfurt 23./25.09.2019 Goldman Sachs / Berenberg Ger
Slide 55: 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