Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (December 2018)
52 slides from Bayerische Motoren Werke's investor presentation, December 2018
Slide 1: BMW Group Investor Presentation December 2018
BMW BMW GROUP GROUP INVESTOR PRESENTATION INVESTOR PRESENTATION December 2018
Slide 2: 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 2018 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, December 2018 Page 3
Slide 4: 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) BMW i4 MINI BEV BMW iX3 Building-up expertise Technology innovation Project i I. PIONEERING II. ELECTRIFICATION OF CORE P
Slide 5: Our future is electric
OUR FUTURE IS ELECTRIC. AMBITIOUS TARGETS FOR SALES OF ELECTRIFIED VEHICLES. >140,000 2018 500,000 103,000 2017 BY THE END OF 2019 ON THE ROAD 62,000 2016 32,000 ELECTRIFIED VEHICLES 2015 17,800 YTD-11/2018 2014 125,365 ELECTRIFIED 311 VEHICLES SOLD 2013 BMW Group Investor Presentation, December 201
Slide 6: 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 i4 BMW iX3** BMW i3 BMW i3 BMW i3s BMW i3/i3s MINI BEV** BMW iNEXT 60 Ah / 22 kWh 94 Ah / 33 kWh 94 Ah / 33 kWh 120Ah / 42 kWh 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 7: MINI Electric Concept. MINI Countryman Plug-in Hybrid.
MINI ELECTRIC CONCEPT. MINI COUNTRYMAN PLUG-IN HYBRID. BMW Group Investor Presentation, December 2018 Page 7
Slide 8: The BMW Concept iX3
THE BMW CONCEPT iX3. ELECTRIC MOBILITY ARRIVES AT THE CORE OF BMW. BMW Group Investor Presentation, December 2018 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, December 2018 Page 9
Slide 10: The BMW Vision iNEXT. Future focused.
THE BMW VISION iNEXT. FUTURE FOCUSED. iNEXT– THE BUILDING BLOCKS FOR THE FUTURE. BMW Group Investor Presentation, December 2018 Page 10
Slide 11: 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, December 2018 Sc
Slide 12: 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 13: 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 14: 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 15: Automated driving at the BMW Group
AUTOMATED DRIVING AT THE BMW GROUP. BMW Group Investor Presentation, December 2018 Page 15
Slide 16: Autonomous driving requires cooperation with tech industry leaders
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 17: 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 18: Mobility services
MOBILITY SERVICES. Options for strategic development. 100 million active customers by 2025. DriveNow ChargeNow A complete, all-inclusive ecosystem for our customers. Agreement with Daimler AG to form Mobility Services Joint Venture.* ParkNow ReachNow *Subject to approval by relevant authorit
Slide 19: 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 BEV* BMW X2 BMW X5 BMW X6** BMW X7 … *MINI Battery Electric Vehicle Concept BMW Group Investor Presentation, December 2018 Page 19 **Ne
Slide 20: Model offensive. Strong growth in the X family.
MODEL OFFENSIVE. STRONG GROWTH IN THE X FAMILY. BMW X2 BMW X3 BMW X4 BMW X5 BMW X6 BMW X7 BMW Group Investor Presentation, November December 2018 Page Page20 20
Slide 21: The BMW Z4
THE BMW Z4. FREEDOM ON FOUR WHEELS. BMW Group Investor Presentation, December 2018 Page 21
Slide 22: 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, December 2018 Page 22
Slide 23: The BMW X7
THE BMW X7. FUSION OF DRIVING PLEASURE AND LUXURY. BMW Group Investor Presentation, December 2018 Page 23
Slide 24: BMW 8 Series Coupé & Convertible
BMW 8 SERIES COUPÉ & CONVERTIBLE. THE PINNACLE OF SPORTS PERFORMANCE AND EXCLUSIVITY. BMW Group Investor Presentation, December 2018 Page 24
Slide 25: BMW Concept M8 Gran Coupé
BMW CONCEPT M8 GRAN COUPÉ. A NEW INTERPRETATION OF LUXURY FOR THE BMW BRAND. BMW Group Investor Presentation, December 2018 Page 25
Slide 26: 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, December 2018 Page 26
Slide 27: Global premium segment sales expected to grow at 2.0% CAGR
GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW AT A CAGR OF 2.0% TO 11.6 MN UNITS BY 2031. 12,000 Rest of World, CAGR +3.1% 10,000 BRIKT*, CAGR +4.6% 8,000 China, CAGR +3.6% 6,000 Region (‘000 units) 2017 2031 Chg. Japan, CAGR +0.1% World 8,757,739 11,591,267 32% Rest of World 639,974 984,
Slide 28: Premium segment share of total market 2018
PREMIUM SEGMENT SHARE OF TOTAL MARKET 2018. 30% 26% 25% 25% 20% 15% 13% 12% 12% World Average: 9.6% 11% 10% 10% 10% 9% 9% 10% 7% 7% 5% 5% 0% Germany United Spain SouthKorea Italy USA SouthAfrica Canada Australia China France Russia Turkey Japan Kingdom BMW Group Investor Presentation, December 2018
Slide 29: BMW Group sales continue to grow through November 2018
BMW GROUP SALES CONTINUE TO GROW THROUGH NOVEMBER 2018. 2,258,159 +1.3% 1,926,631 +1.8% 328,099 -1.8% 3,429 +17.2% 152,181 -0.1% Sales figures YTD 11/2018 BMW Group Investor Presentation, December 2018 Page 29
Slide 30: Balanced sales distribution and YTD-11/2018 growth
BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SLIGHT YTD-11/2018 GROWTH OF +1.3% TO A NEW RECORD OF 2,258,159 VEHICLES. Asia (w/o China) Americas Europe Mainland China & Rest of World* +0.2% +6.4% +2.3% -6.0% 18% 44% 26% 12% 411,149 units 1,000,086 units 577,058 units 269,866 units YTD 11/20
Slide 31: BMW Group Automotive major markets deliveries
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD-11/2018. Deliveries of automobiles YTD-11/2018 YTD-11/2017 Change in % Europe 1,000,086 998,007 0.2 thereof Germany 289,393 282,009 2.6 Great Britain 216,129 220,128 -1.8 Americas 411,149 402,033 2.3 thereof USA 317,544 313,926 1.2 Asia
Slide 32: BMW and MINI retail sales in Mainland China
BMW AND MINI RETAIL SALES DEVELOPMENT IN MAINLAND CHINA YTD 11/2018. Share of JV Sales (through BMW Brilliance Automotive) 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 65% 65% 72% +15.1% +6.4% 594.4 +11.4% 577.1 in ‘000 units 542.4 Import JV Sales +1.7% 516.4 +16.7 % 456.0 463.7 +19.7 % 390.7 384.1 +
Slide 33: Growth in China despite market normalization
GROWTH IN CHINA DESPITE MARKET NORMALIZATION. GROWTH OF DEALER NETWORK AND FURTHER LOCALIZATION. 6 MODELS IN LOCAL PRODUCTION 5 SERIES X1 BMW and MINI outlets in China (as of 31 December 2017) 3 SERIES 2 SERIES ACTIVE TOURER Outlet BMW MINI North 105 31 East 114 26 Southeast 95 19 West 142 31 South
Slide 34: Automobile production by plant in 2017
AUTOMOBILE PRODUCTION BY PLANT IN 2017. 0% 3% 7% Munich, Germany BMW 3, 4 series 196,455 8% Dingolfing, Germany BMW 3, 4, 5, 6, 7 series 376,580 2% Regensburg, Germany BMW 1, 2, 3, 4 series, X1, X2 338,259 15% Leipzig, Germany BMW 1, 2 series, i3, i8 246,043 9% Rosslyn, South Africa BMW 3 series, X3
Slide 35: 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 2018 Page 35
Slide 36: BMW Group Financial Services at a glance
BMW GROUP FINANCIAL SERVICES AT A GLANCE. Global Presence as of 12/2017 Business Lines as of 12/2017 Global Operations in 58 Countries Retail Finance Dealer Finance € 88.8 bn € 19.2 bn ~ 4.9 Million Serviced Retail Contracts Fleet Business Multi Make Financing EU Bank 21% € 12.4 bn € 6.7 bn Americas
Slide 37: Contribution of Financial Services to BMW Group profit
SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Earnings before Tax (EBT) Financial Services [in mn €] 2,207 2,166 SF 19% 1,975 3) 1,790 1,723 1,561 4) 1,619 439 124 2) 1,214 122 743 365 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -292 1) 1) FY-08 EBT includes a negati
Slide 38: Financial Services: solid 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 0.34 0.32 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * Definition Credit Loss Ratio : credit losses in relation to the average serviced p
Slide 39: BMW Group Financial Year 2017 key financials
BMW GROUP FINANCIAL YEAR 2017. KEY FINANCIALS UNDERLINE BMW GROUP’S STRONG OPERATING PERFORMANCE. FY-2017 FY-2017 FY-2016 BMW Group Change in % adjusted* reported reported Earnings before tax – Group (in m€) 10,675 10,655 9,665 +10.2 EBT margin (in %) – Group 10.9 10.8 10.3 +0.5 pp Payout Ratio (in
Slide 40: BMW Group Q3-2018 results
BMW GROUP Q3-2018. HIGH VOLATILITY AND COMPETITIVE MARKETS AS WELL AS INVESTMENTS IN FUTURE IMPACTED Q3-2018 RESULT. BMW Group Q3-2018 Q3-2017* Change in % Earnings before tax – Group (in m€) 1,845 2,503 -26.3 EBT margin (in %) – Group 7.5 10.6 -3.1 pp Automotive Segment Automotive sales (units) 592
Slide 41: BMW Group 9M-2018 results
BMW GROUP 9M-2018. DESPITE DIFFICULT MARKET ENVIRONMENT AND HIGH INVESTMENTS IN THE FUTURE THE BMW GROUP MAINTAINED ITS COURSE. BMW Group 9M-2018 9M-2017* Change in % Earnings before tax – Group (in m€) 7,883 8,741 -9.8 EBT margin (in %) – Group 10.9 11.9 -1.0 pp Automotive Segment Automotive sales
Slide 42: 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 2010 2011 2012 2013* 2014 2015 2016 2017** * 2013 figures have been adjusted in accordance with IAS 8 ** adjusted value for 2017 in accordance with IFRS 15 BMW Group Inves
Slide 43: 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 3,003 FY-Target: 2,703 > 3 billion 2,277 2,042 1,456 1,156 197 2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 20
Slide 44: Investing substantial amounts in new technologies (R&D)
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] 7,000 6.3 6.2 6.5 6,000 5.7 6.1 5.6 5.5 6,108 5.5 Target ratio: 5.6 5.1 5,000 5.4 4.9 4,792 5%-5.5 % 4.8 5,164 4,454
Slide 45: 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 4,688 8 4,151 7 4,000 3,826 3,731 2,980 6.5 6 2,933 2,777 5.7 4.8 2,817 2,889 Target ratio: 3,000 2,720 5.4 5 5.7 5.6 4.0 <5% 5.2 2,383 2,312 4 4.
Slide 46: Outlook for 2018
OUTLOOK FOR 2018. BMW GROUP AUTOMOTIVE MOTORCYCLES FINANCIAL SERVICES Moderate decrease of Deliveries slightly higher Slight increase in deliveries Return on equity of at least pre-tax earnings than the previous year compared to the previous 14%, slight decrease compared to the previous year year* R
Slide 47: 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 48: Diversified funding mix
DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of 30.09.2018 Derivative Other Commercial <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ instruments 1% paper 2% 1% CP (EMTN) PPs Bonds Liabilities from Banks loans customer
Slide 49: 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 50: Financial calendar 2018 & 2019
BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2018 & 2019. 20.03.2019 Annual Accounts Press Conference 21.03.2019 Analyst and Investor Conference 07.05.2019 Quarterly Report to 31 March 2019 16.05.2019 Annual General Meeting 01.08.2019 Quarterly Report to 30 June 2019 BMW Group Investor Presentat
Slide 51: Investor Relations on the road Q1-2019
BMW GROUP INVESTOR RELATIONS. ON THE ROAD Q1-2019. 15.-16.01.2019 Commerzbank German Investment Seminar 2019 New York City 22.-23.01.2019 German Corporate Conference (KeplerCheuvreux) Frankfurt BMW Group Investor Presentation, December 2018 Page 51
Slide 52: 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