Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (January 2017)
45 slides from Bayerische Motoren Werke's investor presentation, January 2017
Slide 1: BMW Group Investor Presentation
BMW GROUP INVESTOR PRESENTATION January 2017
Slide 2: Vision, Competitive Advantage, Strategic Approach, Corporate Culture
VISION COMPETITIVE ADVANTAGE STRATEGIC APPROACH CORPORATE CULTURE BMW Group Investor Presentation, January 2017 Page 2
Slide 3: Strategy Number One Next
STRATEGY NUMBER ONE NEXT. We are Number ONE. We inspire people on the move: We shape tomorrow‘s individual premium mobility. We are leading the BMW Group into a new era: We leverage innovative technologies, digitalization and sustainability to deliver unique customer experiences. We unite excitement
Slide 4: Mobility of the Future: Automated, Zero-Emission Vehicles and Mobility Services
MOBILITY OF THE FUTURE: HIGHLY AUTOMATED, ZERO-EMISSION VEHICLES COMBINED WITH INNOVATIVE MOBILITY SERVICES. E-MOBILITY AUTONOMOUS DRIVING MOBILITY SERVICES BMW Group Investor Presentation, January 2017 Page 4
Slide 5: BMW Group's Electrification Pathway
BMW GROUP’S ELECTRIFICATION PATHWAY. SCALABILITY AND FLEXIBILITY ELECTRIFICATION OF CORE PORTFOLIO MINI BEV BMW X3 BEV Roll-out i Performance PIONEERING Upgrade BMW i3 Building-up expertise Technology innovation Project i BMW Group Investor Presentation, January 2017 Page 5
Slide 6: BMW iPerformance and BMW i – Balancing the Product Portfolio
BMW iPERFORMANCE AND BMW i – BALANCING THE PRODUCT PORTFOLIO. DYNAMIC EFFICIENT BMW brand framework for product portfolio M Core Models M Performance Core Models PHEVs BEVs High Performance Electrified Visionary Performance Champions Efficiency Mobility Champions The interplay of BMW M and BMW i enh
Slide 7: More Than 100,000 Electrified BMW Vehicles Sold by FY 2016
MORE THAN 100,000 ELECTRIFIED BMW VEHICLES SOLD BY FY 2016. i3 94 Ah 120,000 740e / 740 Le iPerformance 225e 100,000 iPerformance 330e 80,000 iPerformance 60,000 X5 xDrive40e iPerformance 530Le* 40,000 i8 i3 60 Ah 20,000 0 * Only available in China BMW Group Investor Presentation, January 2017 Page
Slide 8: Significant Number of Electrified Models Already on the Street
SIGNIFICANT NUMBER OF ELECTRIFIED MODELS ARE ALREADY ON THE STREET. MINI BMW X3 BMW BATTERY BMW i3 60 Ah BMW i3 94 Ah BEV BEV iNEXT ELECTRIC VEHICLES 2013 2014 2015 2016 2017 2018 2019 2020 2021 BMW 225xe BMW X1 xDrive25Le BMW i8 Roadster BMW i8 BMW 530Le* iPerformance iPerformance* PLUG-IN HYBRIDS
Slide 9: Automated Driving
AUTOMATED DRIVING. CHANGING FRAMEWORK LEADS TO NEW DEFINITION OF FUTURE MOBILITY. BMW Group Investor Presentation, January 2017 Page 9
Slide 10: Next Steps Are Highly and Fully Autonomous Driving
THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS DRIVING. Human Transition of responsibility Machine TODAY Awareness for General awareness Early take over warning systems Traffic control such as cruise (e.g. congestion control/ speed No take over request No driver assistant) assistant Take over reques
Slide 11: Mastering Basic Technologies for Highly Automated Driving
MASTERING THE BASIC TECHNOLOGIES IS THE FIRST STEP FOR HIGHLY AUTOMATED DRIVING. Sensor systems Artificial Intelligence Regulatory requirements Intelligent autonomous vehicle Digital maps / HERE Digital reality model BMW Group Investor Presentation, January 2017 Page 11
Slide 12: Leveraging Potential of Digitalization and Connectivity
LEVERAGING POTENTIAL OF DIGITALIZATION AND CONNECTIVITY. BMW Connected Mobility Cloud BMW Group Investor Presentation, January 2017 Page 12
Slide 13: DriveNow Premium Free Floating Car Sharing
DRIVE NOW. PREMIUM, FREE FLOATING CAR SHARING SERVICE FROM BMW GROUP. DriveNow Customers are BMW Group´s 750,000 customers youngest & most modern in 11 cities target group 5,000+ cars in the fleets BMW Group Investor Presentation, January 2017 Page 13
Slide 14: ReachNow Car Sharing Experience
CAR SHARING EXPERIENCE ON A NEW LEVEL. REACH NOW TO INTRODUCE UNIQUE FEATURES TO THE CUSTOMERS. New features, as piloted from end 2016: Seattle – Launch in April 2016 in Ride: Car with driver Fleet Solutions: Individualized CarSharing offering Followed by Portland and Brooklyn (NY) Reserve: For long
Slide 15: ChargeNow and ParkNow
PREMIUM MOBILITY SERVICES CHARGENOW AND PARKNOW MAKE CHARGING AND PARKING EASIER THAN EVER. 65,000+ charging points On- and off-street parking in 29 countries car integration starting with all new BMW 5 Series Cashless Time & cost Launched efficient in 2016 in Austria, France & Germany BMW Group Inv
Slide 16: Financial Targets 2020
FINANCIAL TARGETS 2020. SUSTAINABLE GROWTH AND SOLID PROFITABILITY DESPITE CHALLENGES. BMW Group 2015 2020 EBT margin (from 2017) 10.0% >10% Investment ratio* 4.2% <5.0% Research and development ratio 5.6% 5.0 - 5.5% Payout ratio 32.9% 30 - 40% Automotive Segment EBIT margin 9.2% 8 -10% Free Cashflo
Slide 17: 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 % Ongoing efficiency measures to compensate the cost burden 8% Expansion & optimization Retail sales growth New technologi
Slide 18: Global Premium Segment Sales Expected to Grow to 9.0 Mn Units by 2020
GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW TO 9.0 MN UNITS BY 2020. 10,000 9,000 Rest of World, CAGR +4.6% 8,000 BRIKT*, CAGR +5.2% 7,000 6,000 China, CAGR +5.5% 5,000 Japan, CAGR +0.4% 4,000 Region (‘000 units) 2015 2020 Chg. North America, CAGR +2.3% World 7,749 9,012 16% 3,000 Rest
Slide 19: More Than 70% of Annual Sales Volume Renewed Until 2020
MORE THAN 70% OF EXPECTED ANNUAL SALES VOLUME WILL BE RENEWED UNTIL 2020. LUXURY BMW M760Li BMW i8 BMW X7 Roadster BMW 5 series family BMW X3 SMALL/ MINI BMW 1series BMW X2 COMPACT Countryman sedan (China) 2017 2018 2019 2020 BMW Group Investor Presentation, January 2017 Schematic illustration of fu
Slide 20: Strengthening Profitability by Sales Growth and Product Expansion
STRENGTHENING PROFITABILITY BY SALES GROWTH AND PRODUCT EXPANSION. HIGH PERFORMANCE CARS LUXURY SEGMENT X-PORTFOLIO BMW Group Investor Presentation, January 2017 Page 20
Slide 21: BMW M Automobiles
BMW M AUTOMOBILES ARE THE VERY SPORTY AND DYNAMIC END OF OUR MODEL RANGE. AN EXAMPLE: BRAND SHAPER BMW M4 GTS M AUTOMOBILES BMW M2 Coupé M PERFORMANCE BMW M240i Coupé AUTOMOBILES BMW 420i Coupé with CORE BRAND MODEL M sport package WITH M SPORT PACKAGE TOP MODEL BMW 228i Coupé CORE BRAND BMW Group I
Slide 22: Sixth Generation of BMW 7 Series
SIXTH GENERATION OF BMW 7 SERIES. THE NEW BENCHMARK IN THE LUXURY SEGMENT. BMW Group Investor Presentation, January 2017 Page 22
Slide 23: Further Expansion of the X-Portfolio 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, January 2017 *Concept Car Page 23
Slide 24: Intelligent and Innovative Production
INTELLIGENT AND INNOVATIVE PRODUCTION. DIGITALIZATION CREATES NEW OPPORTUNITIES. Data and Analytics Smart Logistics Innovative Automation Additive Manufacturing 16 14 12 10 8 6 4 2 140 0 4 6 135 8 10 12 130 14 16 125 18 Internet-of-Things Autonomous Transport Systems Collaborative Robot Systems Lami
Slide 25: BMW Group Sales Continue to Grow Through FY 2016
BMW GROUP SALES CONTINUE TO GROW THROUGH FY 2016. 2,367,603 +5.3% 2,003,359 +5.2% 360,233 +6.4% 4,011 +6.0% 145,032 +5.9% BMW Group Investor Presentation, January 2017 Page 25
Slide 26: Automotive: Balanced Sales Distribution and FY 2016 Growth
BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID FY 2016 GROWTH OF +5.3%. Asia (w/o China) Americas Europe Mainland China & Rest of World +9.2% +11.3% -7.2% +4.0% 19% 46% 22% 13% 458,982 units 1,091,192 units 516,355 units 301,074 units BMW Group Investor Presentation, January 2017 Rolls
Slide 27: Automotive Major Markets: Deliveries FY 2016
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS FY 2016. Deliveries of automobiles YTD 2016 YTD 2015 Change in % Europe 1,091,192 999,669 9.2 thereof Germany 1) 308,145 290,522 6.1 Great Britain 251,788 230,652 9.2 France 84,257 77,577 8.6 Italy 83,750 71,173 17.7 Americas 458,982 494,62
Slide 28: BMW and MINI Retail Development in Mainland China
BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA FY 2016. Share of JV Sales 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 61% +1.7% +11.3% 516.4 +16.7 % 463.7 in ‘000 units 456.0 +19.7 % 390.7 Import JV Sales +40.3 % 316.2 326.4 275.9 282.0 198.5 +37.6 % 232.6 141.2 +86.7 % 169.0 94.4 +37.5 % 53.7 +2
Slide 29: Deliveries to Customers by Series or Brand FY 2016
DELIVERIES TO CUSTOMERS BY SERIES OR BRAND FY 2016. Deliveries of automobiles YTD 2016 YTD 2015 Change in % 1 Series 176,032 182,158 -3.4 2 Series 196,183 157,144 24.8 3 Series 411,844 444,338 -7.3 4 Series 133,272 152,390 -12.5 5 Series 331,410 347,096 -4.5 6 Series 13,400 20,962 -36.1 7 Series 61,
Slide 30: BMW Motorrad. Wider Range Than Ever Before
BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. URBAN ADVENTURE TOUR SPORT ROADSTER HERITAGE MOBILITY NEW SINCE 2014 NEW SINCE 2012 BMW Group Investor Presentation, January 2017 Page 30
Slide 31: BMW Group Financial Services at a Glance
BMW GROUP FINANCIAL SERVICES AT A GLANCE. Global Presence as of 09/2016 Business Lines af of 09/2016 Global Operations in 57 Countries Retail Finance Dealer Finance € 83.4 bn € 17.0 bn ~ 4.6 Million Serviced Retail Contracts Fleet Business Multi Make Financing € 11.3 bn € 7.9 bn 28% EU Bank 30% Amer
Slide 32: Financial Services Contribution to Group Profit
SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Profit before Tax (PBT) Financial Services [in mn €] 1,975 SF 3) 19% 1,790 1,723 4) 1,619 1,641 1,561 1,517 439 124 2) 1,214 122 743 685 365 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9M-2015 9M-2016 -292 1) 1) FY-08 EBT incl
Slide 33: 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 0.35 0.30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9M-2015 9M-2016 * Definition Credit Loss Ratio : credit losses in relation to the average serv
Slide 34: Profitable Growth in the Third Quarter 2016
THE BMW GROUP CONTINUED TO CHART A COURSE OF PROFITABLE GROWTH IN THE THIRD QUARTER 2016. BMW Group Q3-2016 Q3-2015 Change in % Earnings before tax – Group (in m€) 2,575 2,263 +13.8 EBT margin (in %) – Group 11.0 10.1 +0.9 pp Automotive Segment Automotive sales (units) 583,499 545,062 +7.1 Earnings
Slide 35: Best-Ever Figures for First Nine Months of 2016
BMW GROUP POSTS BEST-EVER FIGURES FOR THE FIRST NINE MONTHS OF 2016. BMW Group 9M-2016 9M-2015 Change in % Earnings before tax – Group (in m€) 7,741 7,114 +8.8 EBT margin (in %) – Group 11.2 10.6 +0.6 pp Automotive Segment Automotive sales (units) 1,746,638 1,644,810 +6.2 Earnings before interest an
Slide 36: 26th Consecutive Quarter Automotive EBIT Margin Within Target
26TH CONSECUTIVE QUARTER TO ACHIEVE AUTOMOTIVE SEGMENT EBIT MARGIN WITHIN TARGET RANGE OF 8 TO 10% OR HIGHER. EBIT margin development automotive segment [in %] 14.4 11.9 11.9 11.7 11.6 11.6 10.2 10.5 9.9 9.6 9.6 9.5 9.5 9.6 9.4 9.5 9.4 9.0 9.1 9.1 Target corridor: 9.6 8.4 8.5 9.2 8.2 8-10 % 8.1 BMW
Slide 37: Solid Free Cash Flow in the Automotive Segment
SOLID FREE CASH FLOW DEVELOPMENT IN THE AUTOMOTIVE SEGMENT. Free Cash Flow (Automotive)* [in m€] 5,404 4,471 3,809 3,481 3,376 3,415 3,166 3,003 Target: > 3 billion 2,277 1,456 n.a. 197 2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 9M-2015 9M-2016 * Definition: Free cash flow corresponds t
Slide 38: Ongoing R&D Projects to Make BMW Group Future Proof
ONGOING RESEARCH & DEVELOPMENT PROJECTS TO MAKE BMW GROUP FUTURE PROOF. R&D Costs* R&D Ratio** [in m€, HGB] [in %, HGB] 6,000 10 9 5,000 8 6.5 6.3 7 4,000 5.6 5.7 5.6 5.5 5.4 4.8 6 4.9 5.1 Target ratio: 4.8 4.6 3,000 5 5-5.5 % 5,169 4.793 4,566 4 2,000 3,952 3,686 3 3,208 3,144 3,373 3,332 2,864 2,7
Slide 39: 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 5,000 8 6.5 7 4,000 5.7 5.6 5.7 5.2 5.4 6 Target ratio: 4.7 3,000 4.2 5 <5% 3.8 4.0 4,967 3.5 4 4,601 2.8 2,000 4,151 3,826 3 2,777 2,933 2,980 2,720 2,383 2,312 2,
Slide 40: Outlook for 2016
OUTLOOK FOR 2016. POSITIVE BUSINESS DEVELOPMENT EXPECTED DESPITE CHALLENGES. BMW Group Slight increase in EBT compared with previous year Automotive Segment Slight increase in deliveries and revenues compared with the previous year EBIT margin in the target range of 8-10% Financial Services Segment
Slide 41: 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 42: Diversified Funding Mix
DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of 30.09.2016 Others Structured Financing 1% 2% <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ Fed Funds 1% CP (EMTN) PPs Bonds Bank Loans SSD 10% 2% Banks loans ABCP ABS Br
Slide 43: Investor Relations Contacts
BMW GROUP INVESTOR RELATIONS. CONTACTS. Torsten Schüssler Bernd Daser Patrick Neumayer Head of Investor Relations Debt & Equity IR Debt & Equity IR Americas +49-89-382-25387 +49-89-382-31684 +1-201-307-4210 torsten.schuessler@bmw.de bernd.daser@bmw.de patrick.neumayer@bmwna.com Tanja Seiler Andreas
Slide 44: Financial Calendar 2017
BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2017. 21.03.2017 Annual Accounts Press Conference 2017 22.03.2017 Analyst and Investor Conference 2017 04.05.2017 Quarterly Report to 31 March 2017 11.05.2017 Annual General Meeting 2017 03.08.2017 Quarterly Report to 30 June 2017 07.11.2017 Quarterly
Slide 45: 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