Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Day (2024)
22 slides from Bayerische Motoren Werke's investor day presentation, 2024
Slide 1: Financial Steering – Walter Mertl
FINANCIAL STEERING WALTER MERTL -1-
Slide 2: Overview
OVERVIEW. This presentation provides an overview of how the BMW Group financially steers the business to balance the interest of multiple stakeholders, generate value and deliver compelling returns to shareholders. It explains the long range planning process and the approach to integrated projec
Slide 3: The Interests of Multiple Stakeholders
THE INTERESTS OF MULTIPLE STAKEHOLDERS 55-70bn Market Cap € 22.6mn BMW Group 95.6bn car park (=customers) € Book Equity 88bn Debt € 5,300 Dealers A | A2 Credit Rating 2,500 Tier-1 suppliers 155,000 Employees -3-
Slide 4: Internal steering focuses on target setting and ensuring target achievement
INTERNAL STEERING FOCUSES ON TARGET SETTING AS WELL AS ENSURING THE TARGET ACHIEVEMENT. BMW GROUP INTERNAL STEERING Corporate Planning & Steering Process Strategy Provide Provide Target Setting Target Setting Target Setting Development assumptions Assumptions BUDGET / STRATEGY- LONG RANGE FORECASTS
Slide 5: BMW Group is mainly driven by its products & projects
BMW GROUP IS MAINLY DRIVEN BY ITS PRODUCTS & PROJECTS: Focus: Segment Automotive PERIODICAL LONG-TERM PLANNING Converting periodical PROJECT CONTROLLING & DECISIONS targets to project scenarios INTEGRATED BUSINESS PLANNING WITH CHANGING FOCUS Converting project results to periodical perspectives RoC
Slide 6: WACC & ROCE underpin the project & periodical assessment
WEIGHTED AVERAGE COST OF CAPITAL (WACC) & ROCE UNDERPIN THE PROJECT & PERIODICAL ASSESSMENT OF THE INDUSTRIAL BUSINESS RESPECTIVELY. Weighted Average Cost of Capital (WACC) Return on Capital Employed (ROCE) Segment Automotive (+ Motorrad) Segment Automotive (+ Motorrad) Expense FY-2023: 119,296m € A
Slide 7: Auto ROCE consistently exceeding average cost of capital (WACC)
CONTRIBUTING VALUE WITH AUTO RETURN ON CAPITAL EMPLOYED (ROCE) CONSISTENTLY EXCEEDING AVERAGE COST OF CAPITAL (WACC). VALUE CREATION ▪ Steer the value contribution of the industrial business 26% 25% 26% ROCE Auto* ▪ Connecting the periodic 24% 24% 24% and project view demonstrates strength 20% and c
Slide 8: Steering approach resulted in volume & BEV growth while maintaining auto margin
OUR STEERING APPROACH HAS RESULTED IN VOLUME & BEV GROWTH WHILE MAINTAINING AUTO MARGIN IN TARGET CORRIDOR OF 8-10%. AUTO REVENUE RETAIL SALES / BEV SHARE Share m€ Thd. in % units 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 SEGMENT AU
Slide 9: Connecting the dots
CONNECTING THE DOTS: NEW CAR FINANCIAL SERVICES including Insurance and Services USED CAR CUSTOMER SUPPORT -9-
Slide 10: BMW Group comprises three key segments
BMW GROUP COMPRISES THREE KEY SEGMENTS WHICH ARE REFLECTED IN THE REPORTING STRUCTURE. AUTOMOTIVE/MOTORCYCLE OTHER ENTITIES FINANCIAL SERVICES ▪ BMW, MINI and Rolls Royce brands ▪ Includes Holding Companies ▪ Credit financing and leasing, dealer support, insurance and banking services ▪ Includes all
Slide 11: Segment reporting: focus on Financial Services and Treasury Centers
BMW GROUP SEGMENT REPORTING. FOCUS ON FINANCIAL SERVICES AND TREASURY CENTERS. AUTOMOTIVE/MOTORCYCLE OTHER ENTITIES FINANCIAL SERVICES ▪ BMW, MINI and Rolls Royce brands ▪ Includes Holding Companies ▪ Credit financing and leasing, dealer support, insurance and banking services ▪ Includes all sales c
Slide 12: Automotive liquidity and capital market financing contribute to funding needs
AUTOMOTIVE LIQUIDITY AND CAPITAL MARKET FINANCING ACTIVITIES CONTRIBUTE TO THE FUNDING NEEDS OF THE FINANCIAL SERVICES BUSINESS. OTHER ENTITIES FINANCIAL SERVICES ▪ Debt is raised by treasury companies in Segment Other Entities. This is lent internally to Financial Services entities ▪ The holding co
Slide 13: Matched funding ensures no intrinsic liquidity risks
MATCHED FUNDING ENSURES THAT NO INTRINSIC LIQUIDITY RISKS DERIVE FROM FINANCIAL SERVICES REFINANCING. BMW GROUP ASSET / LIABILITY MATURITY PROFILE Duration ▪ Financial Liabilities: ▪ SF asset portfolio: “BMW was able to maintain strong leverage metrics […] which continue to compare favourably with t
Slide 14: Segment reporting: focus on Segment Automotive and holding companies
BMW GROUP SEGMENT REPORTING. FOCUS ON SEGMENT AUTOMOTIVE AND HOLDING COMPANIES. AUTOMOTIVE/MOTORCYCLE OTHER ENTITIES FINANCIAL SERVICES ▪ BMW, MINI and Rolls Royce brands ▪ Includes Holding Companies ▪ Credit financing and leasing, dealer support, insurance and banking services ▪ Includes all sales
Slide 15: New comprehensive Net Financial Assets Automotive definition
THE NEW COMPREHENSIVE NET FINANCIAL ASSETS AUTOMOTIVE DEFINITION BETTER REFLECTS THE IMPACT OF INTRAGROUP DISTRIBUTION. AUTOMOTIVE/MOTORCYCLE OTHER ENTITIES FINANCIAL SERVICES NFA NEW: NFA Segment Automotive Automotive Core Business Dividends Holding Companies Treasury Centers Int. Refinancing Strat
Slide 16: Currently reported Net Financial Assets limited to Segment Automotive
CURRENTLY REPORTED NET FINANCIAL ASSETS ARE LIMITED TO SEGMENT AUTOMOTIVE. DEVELOPMENT NET FINANCIAL ASSETS SEGMENT AUTOMOTIVE Net Financial Assets Segment Automotive show a downward trend for structural reasons 24.6 22.4 19.8 19.5 18.5 17.6 17 18 2017 2018 2019 2020 2021 2022 2023 Q1 24 BBA Full Co
Slide 17: New Net Financial Assets Automotive comprise Segment Auto & holding companies
THE NEW COMPREHENSIVE NET FINANCIAL ASSETS AUTOMOTIVE COMPRISE NFA SEGMENT AUTO & HOLDING COMPANIES WITHIN OTHER ENTITIES SEGMENT. DEVELOPMENT NET FINANCIAL ASSETS AUTOMOTIVE NFA Automotive is reflective of 46,2 46,8 retained earnings generated in 45,5 the core business and 21.6 28.5 28.8 remained s
Slide 18: Net Financial Assets reported more comprehensively with Half-Year Report 2024
WITH THE HALF-YEAR REPORT 2024, THE NET FINANCIAL ASSETS FOR THE AUTOMOTIVE BUSINESS ARE REPORTED MORE COMPREHENSIVELY. PROPOSED LANGUAGE FOR THE “With the half-year report 2024, the net financial The holding companies receive dividends from their COMBINED MANAGEMENT REPORT assets for the automotive
Slide 19: Integrated steering approach puts value creation at the center
OUR INTEGRATED STEERING APPROACH PUTS VALUE CREATION AT THE CENTER OF OUR DECISIONS AND ACTIONS. 1 KPIs Growth, Premium Market Share 9.2% 10.3% 8.6% 9.8% 7.2% EBIT Margin: 8-10% 4.9% Profitable 2.7% Profitable Growth Growth Automotive + Motorrad Seg. Auto & Group EBT Margin: >10% 2017 2019 2021 2023
Slide 20: Reliable dividend policy and shareholder returns supported by free cashflow
WE FOCUS ON RELIABLE DIVIDEND POLICY AND SHARE-HOLDER RETURNS, THAT ARE SUPPORTED BY FREE CASHFLOW GENERATION. 92% Share Buyback Payout Ratio Auto FCF1 70% Dividend BMW AG SH Consistent Dividend Policy 1.278 Reliable and transparent dividend policy Target payout ratio at 30-40% of Group net inco
Slide 21: Key Messages
KEY MESSAGES. Clear focus on value creation that is integral in how we steer the company and make all decisions. Strong balance sheet … … as a solid … allows us to balance … provides the foundation for all our the interests of all confidence to distribute business activities – stakeholders Auto FCF
Slide 22: Consumption and Emission Data
CONSUMPTION AND EMISSION DATA. BMW i5 eDrive40. BMW i5 M60 xDrive. Energy consumption in kWh/100km WLTP (combined): 16.3 Energy consumption in kWh/100km WLTP (combined): 20.5 CO2-emissions in g/km: 0 CO2-emissions in g/km: 0 CO2-Class: A CO2-Class: A BMW 530e xDrive Limousine. Energy consumption in