Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (December 2017)
51 slides from Bayerische Motoren Werke's investor presentation, December 2017
Slide 1: BMW Group Investor Presentation December 2017
BMW GROUP INVESTOR PRESENTATION December 2017
Slide 2: Vision, Competitive Advantage, Strategic Approach, Corporate Culture
VISION COMPETITIVE ADVANTAGE STRATEGIC APPROACH CORPORATE CULTURE BMW Group Investor Presentation, December 2017 Page 2
Slide 3: 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. BMW Group Investor Presentation, December 2017 Page 3
Slide 4: ACES are a core element of Strategy Number ONE > NEXT
ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. AUTONOMOUS CONNECTED ELECTRIFIED CUSTOMER FOCUS SHARED / SERVICES BMW Group Investor Presentation, December 2017 Page 4
Slide 5: BMW Group's electrification pathway
BMW GROUP’S ELECTRIFICATION PATHWAY. BMW iNext Roll-out BMW i Performance Upgrade BMW i3 LCI BMW i3, new BMW i3s BMW i Vision Dynamics MINI Electric (PHEV) MINI BEV BMW X3 BEV Building-up expertise Technology innovation Project i I. PIONEERING II. ELECTRIFICATION OF CORE PORTFO
Slide 6: BMW i: from born electric to one platform serves all
BMW i. FROM “BORN ELECTRIC” TO “ONE PLATFORM SERVES ALL”. 2013 FROM “Born electric” 2021 ON One platform fits all powertrain derivatives… Combustion engine Plug-In-Hybrid Pure electric BMW Group Investor Presentation, December 2017 Page 6
Slide 7: 25 electrified models by 2025, including 12 fully electric cars
OUR CLEAR ROADMAP: 25 ELECTRIFIED MODELS BY 2025, INCLUDING 12 FULLY ELECTRIC CARS. Fully electric BMW i Vision Dynamics BMW X3 BEV BMW i3 BMW i3 BMW i3s MINI BEV** BMW iNext 60 Ah / 22 kWh 94 Ah / 33 kWh 94 Ah / 33.2 kWh 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 BMW i8 BMW 53
Slide 8: More than 200,000 electrified vehicles sold by November 2017
MORE THAN 200,000 ELECTRIFIED BMW GROUP VEHICLES SOLD BY NOVEMBER 2017. WELL ON TRACK FOR 100,000 ELECTRIFIED VEHICLES IN 2017. 530e iPerformance BMW X1 i3 94 Ah xDrive25Le iPerformance MINI Cooper S 250,000 i3 accumulated i8 accumulated BMW & MINI PHEV accumulated (China) E Countryman 225xe iPerfor
Slide 9: The new BMW 5 Series driver assistance
THE NEW BMW 5 SERIES DRIVER ASSISTANCE PROVIDES 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 cruise contr
Slide 10: Next steps: highly and fully autonomous driving
THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS DRIVING. 0 1 2 3 4 5 Driver Feet off Hands off Eyes off Mind off Passenger Partially Highly Fully No assistance Assisted Autonomous automated automated automated Human Transfer of responsibility Machine BMW Group Investor Presentation, December 2017 Pag
Slide 11: Architecture for automated driving
ARCHITECTURE FOR AUTOMATED DRIVING. END-TO-END WITH ALL KEY-TECHNOLOGIES. E/E ARCHITECTURE BACKEND BACKEND SECURITY* CD FAS MS Backend Backend Backend SENSORS ENVIRONMENT MODEL VEHICLE SECURITY HD-MAP OBJECTS AND FREE SPACE MOTION CONTROL FAD DRIVING FUNCTION ARTIFICIAL INTELLIGENCE TRAJECTORY PLANN
Slide 12: HD-map, sensors, AI and motion control in automated driving
HD-MAP, SENSORS, AI/ENVIRONMENT MODEL AND MOTION CONTROL PLAY A KEY ROLE IN THE ARCHITECTURE OF AUTOMATED DRIVING. AI / ENVIRONMENT VEHICLE HD-MAP BACKEND SENSORS MODEL INTEGRATION centimeter precision camera object fusion motion control real-time capable radar free space detection s
Slide 13: Expanding our mobility services
EXPANDING OUR MOBILITY SERVICES. BMW Group Investor Presentation, December 2017 Page 13
Slide 14: Global premium segment sales expected to grow at 2.1% CAGR
GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW AT A CAGR OF 2.1% TO 9.97 MN UNITS BY 2022. 12,000 10,000 Rest of World, CAGR +4.2% BRIKT*, CAGR +7.1% 8,000 China, CAGR +3.2% 6,000 Japan, CAGR +2.2% Region (‘000 units) 2017 2022 Change World 8,781 9,972 14% North America, CAGR +1.9% 4,000 R
Slide 15: Largest model offensive in company history
THE LARGEST MODEL OFFENSIVE IN THE COMPANY’S HISTORY. 40 AUTOMOBILE LAUNCHES IN 2017 AND 2018 & ATTRACTIVE MOTORCYCLE LAUNCHES. BMW M760Li BMW 5 Series MINI BMW 4 Series BMW 1 Series BMW 2 Series Countryman BMW 6 Series BMW X3 BMW M5 BMW X2 BMW i3s Rolls-Royce Gran Turismo Phantom BMW Group Investor
Slide 16: Keeping the momentum rolling in 2018
… AND WE WILL KEEP THE MOMENTUM ROLLING IN 2018. BMW i8 BMW BMW X7 BMW Z4 BMW K1600 BMW M8 … Roadster 8 Series Grand America BMW Group Investor Presentation, December 2017 Page 16
Slide 17: The BMW i Vision Dynamics
THE BMW i VISION DYNAMICS. A NEW FORM OF ELECTRIFYING DRIVING PLEASURE. BMW i Vision Dynamics Drive Pure Electric Range 600 km (WLTP cycle) Acceleration 4.0 sec (0-100 km/h) Top speed 200 km/h The BMW i Vision Dynamics exudes modernity, progressiveness and an appealing technical aesthetic from every
Slide 18: MINI Electric Concept
MINI ELECTRIC CONCEPT. ICONIC DESIGN AND URBAN DRIVING FUN WITH ZERO EMISSIONS. BMW Group Investor Presentation, December 2017 Page 18
Slide 19: The new BMW i3 and i3S
THE NEW BMW i3 AND i3S. OUTSTANDING DRIVING DYNAMICS & EMISSION-FREE FUN AT THE WHEEL. BMW Group Investor Presentation, December 2017 Page 19
Slide 20: Seventh generation of BMW 5 Series
SEVENTH GENERATION OF BMW 5 SERIES. SPORTINESS AND EVERYDAY USABILITY. BMW Group Investor Presentation, December 2017 Page 20
Slide 21: BMW Concept 8 Series
BMW CONCEPT 8 SERIES. THE PINNACLE OF SPORTS PERFORMANCE AND EXCLUSIVITY. BMW Group Investor Presentation, December 2017 Page 21
Slide 22: The BMW Concept Z4
THE BMW CONCEPT Z4. FREEDOM ON FOUR WHEELS. BMW Group Investor Presentation, December 2017 Page 22
Slide 23: The new Rolls-Royce Phantom
THE NEW ROLLS-ROYCE PHANTOM. PURSUIT OF PERFECTION, VISIONARY ENGINEERING & AESTHETIC ACUITY. BMW Group Investor Presentation, December 2017 Page 23
Slide 24: Further expansion of the X-portfolio planned until 2020
KEEPING THE LEAD. FURTHER EXPANSION OF THE X-PORTFOLIO PLANNED UNTIL 2020. BMW X1 BMW X2 BMW X3 BMW X4 BMW X5 BMW X6 BMW X7* BMW Group Investor Presentation, December 2017 *Concept Car Page 24
Slide 25: BMW Concept X7 iPerformance
BMW CONCEPT X7 iPERFORMANCE. STRIKING EXTERIOR COMBINED WITH EXCEPTIONALLY EFFICIENT & DYNAMIC PLUG-IN HYBRID POWERTRAIN. BMW Group Investor Presentation, December 2017 Page 25
Slide 26: BMW Group sales continue to grow through November 2017
BMW GROUP SALES CONTINUE TO GROW THROUGH NOVEMBER 2017. 2,229,497 +3.6% 1,892,365 +3.7% 334,205 +3.0% 2,927 -16.0% 152,322 +11.7% BMW Group Investor Presentation, December 2017 Sales figures November 2017 Page 26
Slide 27: Automotive: balanced sales distribution and YTD growth of 3.6%
BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID YTD 11/2017 GROWTH OF +3.6% TO A NEW RECORD OF 2,229,497 VEHICLES. Asia (w/o China) Americas Europe Mainland China & Rest of World +0.5% +14.7% -2.6% +4.7% 18% 45% 24% 13% 402,033 units 998,005 units 542,362 units 287,097 units BMW Group In
Slide 28: Automotive major markets: deliveries YTD November 2017
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD NOVEMBER 2017. Deliveries of automobiles YTD 11/2017 YTD 11/2016 Change in % Europe 998,005 992,602 0.5 thereof Germany 1) 281,713 281,886 -0.1 Great Britain 220,126 228,720 -3.8 Americas 402,033 412,873 -2.6 thereof USA 313,926 327,711
Slide 29: BMW and MINI retail development in Mainland China
BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA YTD NOV. 2017. Share of JV Sales 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 61% 65% +11.3% +14.7% +1.7% 516.4 542.4 +16.7 % 463.7 472.7 456.0 in ‘000 units +19.7 % 390.7 Import JV Sales +40.3 % 316.2 350.4 326.4 275.9 282.0 290.0 198.5 +37.6 % 232.6
Slide 30: Robust growth in China despite market normalization
ROBUST GROWTH IN CHINA DESPITE MARKET NORMALIZATION. GROWTH OF DEALER NETWORK AND FURTHER LOCALIZATION. 5 MODELS IN LOCAL PRODUCTION & MORE TO COME 3 SERIES 5 SERIES BMW and MINI outlets in China (as of 30 September 2017) X1 (SINCE 2012 ) 2 SERIES ACTIVE TOURER (SINCE 2016) Outlet BMW MINI North 103
Slide 31: 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, December 2017 Page 31
Slide 32: BMW Group Financial Services at a glance
BMW GROUP FINANCIAL SERVICES AT A GLANCE. Global Presence as of 09/2017 Business Lines as of 09/2017 Global Operations in 58 Countries Retail Finance Dealer Finance € 87.9 bn € 17.8 bn ~ 4.9 Million Serviced Retail Contracts Fleet Business Multi Make Financing 29% 27% EU Bank € 12.1 bn € 7.9 bn Amer
Slide 33: Financial Services contribution to BMW Group profit
SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Earnings before Tax (EBT) Financial Services [in mn €] 2,166 SF 19% 1,975 3) 1,790 1,793 1,723 4) 1,619 1,641 1,561 439 124 2) 1,214 122 743 365 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M-2016 9M-2017 -292 1) 1) FY-08 EBT
Slide 34: Financial Services: development of 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 0.32 0.30 0.30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M-2016 9M-2017 * Definition Credit Loss Ratio : credit losses in relation to the av
Slide 35: BMW Group Financial Year 2016
BMW GROUP FINANCIAL YEAR 2016. POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGING POLITICAL AND ECONOMIC CONDITIONS. BMW Group FY-2016 FY-2015 Change in % Earnings before tax – Group (in m€) 9,665 9,224 +4.8 EBT margin (in %) – Group 10.3 10.0 +0.3 pp Automotive Segment Automotive sales (units) 2,367
Slide 36: BMW Group Q3-2017
BMW GROUP Q3-2017. SUBSTANTIAL UPFRONT EXPENDITURE FOR TOMORROW’S MOBILITY DAMPENED EARNINGS IN THE 3RD QUARTER. BMW Group Q3-2017 Q3-2016 Change in % Earnings before tax – Group (in m€) 2,422 2,575 -5.9 EBT margin (in %) – Group 10.3 11.0 -0.7 pp Automotive Segment Automotive sales (units) 590,415
Slide 37: BMW Group 9M-2017
BMW GROUP 9M-2017. STRONG RESULTS IN THE FIRST 9 MONTHS OF 2017. BMW GROUP ON COURSE FOR SUCCESSFUL FINANCIAL YEAR. BMW Group 9M-2017 9M-2016 Change in % Earnings before tax – Group (in m€) 8,482 7,741 +9.6 EBT margin (in %) – Group 11.7 11.2 +0.5 pp Automotive Segment Automotive sales (units) 1,811
Slide 38: Automotive EBIT margin within or above 8-10% target range
EBIT MARGIN IN THE AUTOMOTIVE SEGMENT WITHIN OR ABOVE TARGET RANGE OF 8-10% SINCE 2010. EBIT margin development automotive segment [in %] 15.0 14.4 14.0 13.0 11.9 11.9 12.0 11.6 11.6 11.7 11.0 10.5 10.2 9.9 10.0 9.6 9.6 9.7 9.4 9.5 9.6 9.4 9.5 9.0 9.1 9.5 9.1 9.0 9.6 Target corridor: 9.0 8.4 8.5 8.3
Slide 39: Automotive segment: 2015 to 2016 EBIT development
AUTOMOTIVE SEGMENT. 2015 TO 2016 EBIT DEVELOPMENT. In m€ +200 -70 +89 -143 -217 7,836 7,695 EBIT Net effect from Other Volume/ Depreciation Other changes EBIT exchange rates/ operating Mix/ 2015 commodities income and Market 2016 EBIT margin expenses EBIT margin 9.2% 8.9% BMW Group Investor Presenta
Slide 40: Solid free cash flow development in Automotive segment
SOLID FREE CASH FLOW DEVELOPMENT IN THE AUTOMOTIVE SEGMENT. Free Cash Flow (Automotive)* [in m€] 5,792 5,404 4,471 3,809 3,481 3,415 3,166 3,003 2,703 Target: 2,277 > 3 billion 1,456 1,156 197 * Definition: Free cash flow corresponds to the cash inflow from operating activities of the Automobiles se
Slide 41: Investing in new technologies: R&D expenditure and 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] 6,000 10 5,169 5,164 9 5,000 4,792 4,566 8 6.5 3,952 4,058 7 4,000 6.3 5.6 3,373 5.7 5.6 5.5 5.6 3,208 5.4 3,332 6 4
Slide 42: Tight management of capital expenditure
TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO. BMW Group Capital Expenditure* Capex Ratio** [in m€] [in %] 6,000 10 9 4,967 5,000 4,601 8 4,151 7 4,000 3,826 3,731 2,980 6.5 6 2,933 2,817 2,777 2,383 5.7 Target ratio: 3,000 2,720 5.4 5 2,312 <5% 5.7 5.2 5.6 4 4.0 4.2 4.0 1,970 2,00
Slide 43: Outlook for 2017
OUTLOOK FOR 2017. POSITIVE BUSINESS DEVELOPMENT EXPECTED DESPITE CHALLENGES. BMW Group Solid increase in EBT compared with previous year Automotive Segment Slight increase in deliveries compared with previous year Slight increase in revenues compared with previous year EBIT margin in the target rang
Slide 44: Financial targets 2020
FINANCIAL TARGETS 2020: SUSTAINABLE GROWTH AND SOLID PROFITABILITY DESPITE CHALLENGES. BMW Group 2016 2020 EBT margin 10.3% >10% Investment ratio* 4.0% <5.0% Research and development ratio 5.5% 5.0 - 5.5% Payout ratio 33.3% 30 - 40% Automotive Segment EBIT margin 8.9% 8 -10% Free Cashflow 5.8 bn € >
Slide 45: Maintaining Automotive EBIT margin in 8-10% corridor
MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR OF 8-10% DESPITE ONGOING CHALLENGES. Market and Regulatory Future costs competitive Volatility requirements environment 10 % FOCUS & Ongoing efficiency PERFORMANCE measures to compensate the cost burden 8% Expansion & optimization Retail sales g
Slide 46: Finance strategy covers 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 47: Diversified funding mix
DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of 30.09.2017 Derivative Other <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ Commercial instruments 1% paper 1% 3% CP (EMTN) PPs Bonds Banks loans Liabilities from ABCP ABS
Slide 48: BMW Group Investor Relations contacts
BMW GROUP INVESTOR RELATIONS. CONTACTS. Torsten Schüssler Bernd Daser Mariam Kremer Head of Investor Relations Debt & Equity IR Debt & Equity IR +49-89-382-25387 +49-89-382-31684 +49-89-382-96136 torsten.schuessler@bmw.de bernd.daser@bmw.de mariam.kremer@bmw.de Patrick Neumayer Tanja Seiler Andreas
Slide 49: Investor Relations: on the road Q1-2018
BMW GROUP INVESTOR RELATIONS. ON THE ROAD Q1-2018. 08./09.01.2018 Commerzbank German Investment Seminar 2018 New York City 16./17.01.2018 German Corporate Conference (KeplerCheuvreux) Frankfurt 05.02.2018 HSBC SRI Conference Frankfurt http://www.bmwgroup.com/ir BMW Group Investor Presentation, Decem
Slide 50: Financial calendar 2017 & 2018
BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2017 & 2018. 21.03.2018 Annual Accounts Press Conference 22.03.2018 Analyst and Investor Conference 04.05.2018 Quarterly Report to 31 March 2018 17.05.2018 Annual General Meeting 2018 02.08.2018 Quarterly Report to 30 June 2018 07.11.2018 Quarterly Re
Slide 51: 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