BMW GROUP INVESTOR PRESENTATION. January 2017

Transcription

1 BMW GROUP INVESTOR PRESENTATION January 2017

2 VISION COMPETITIVE ADVANTAGE STRATEGIC APPROACH CORPORATE CULTURE BMW Group Investor Presentation, January 2017 Page 2

3 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, responsibility and success: We have the most emotional products and attractive services. We create the future: We combine operational excellence and fresh thinking. BMW Group Investor Presentation, January 2017 Page 3

4 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

5 BMW GROUP S ELECTRIFICATION PATHWAY. SCALABILITY AND FLEXIBILITY PIONEERING ELECTRIFICATION OF CORE PORTFOLIO Roll-out i Performance Upgrade BMW i3 MINI BEV BMW X3 BEV Building-up expertise Technology innovation Project i BMW Group Investor Presentation, January 2017 Page 5

6 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 Performance Champions Electrified Efficiency Champions Visionary Mobility The interplay of BMW M and BMW i enhances competitive differentiation (representation of the scope of the BMW brand). BMW Group Investor Presentation, January 2017 Page 6

7 MORE THAN 100,000 ELECTRIFIED BMW VEHICLES SOLD BY FY i3 94 Ah 120, ,000 80, e iperformance 330e iperformance 740e / 740 Le iperformance 60, Le* X5 xdrive40e iperformance 40,000 20,000 i3 60 Ah i8 0 * Only available in China BMW Group Investor Presentation, January 2017 Page 7 Figures represent cumulative sales of BEV and PHEV vehicles

8 SIGNIFICANT NUMBER OF ELECTRIFIED MODELS ARE ALREADY ON THE STREET. BATTERY ELECTRIC VEHICLES BMW i3 60 Ah BMW i3 94 Ah MINI BEV BMW X3 BEV BMW inext PLUG-IN HYBRIDS BMW i8 BMW 530Le* BMW 225xe iperformance BMW X1 xdrive25le iperformance* BMW i8 Roadster BMW X5 xdrive40e iperformance BMW 330e iperformance BMW 5 Series iperformance BMW 740e iperformance MINI Cooper S E Countryman ALL4 BMW Group Investor Presentation, January 2017 * Only available in China Page 8

9 AUTOMATED DRIVING. CHANGING FRAMEWORK LEADS TO NEW DEFINITION OF FUTURE MOBILITY. BMW Group Investor Presentation, January 2017 Page 9

10 THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS DRIVING. Human Transition of responsibility Machine No active assistance system Early warning systems such as cruise control/ speed assistant ( Feet-off ) Traffic control (e.g. congestion assistant) ( Hands-off ) TODAY Awareness for take over Take over request ( Eyes-off ) General awareness No take over request ( Mind-off ) No driver 0 Driver Only 1 Assistance 2 Semi-Automation 3 High-Automation 4 Full-Automation 5 Autonomous BMW Group Investor Presentation, January 2017 Page 10

11 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

12 LEVERAGING POTENTIAL OF DIGITALIZATION AND CONNECTIVITY. BMW Connected Mobility Cloud BMW Group Investor Presentation, January 2017 Page 12

13 DRIVE NOW. PREMIUM, FREE FLOATING CAR SHARING SERVICE FROM BMW GROUP. DriveNow Customers are BMW Group s youngest & most modern target group 750,000 customers in 11 cities 5,000+ cars in the fleets BMW Group Investor Presentation, January 2017 Page 13

14 CAR SHARING EXPERIENCE ON A NEW LEVEL. REACH NOW TO INTRODUCE UNIQUE FEATURES TO THE CUSTOMERS. Launch in April 2016 in Seattle Followed by Portland and Brooklyn (NY) 32,000+ members New features, as piloted from end 2016: Ride: Car with driver Reserve: For long period use of vehicles and delivery of car Fleet Solutions: Individualized CarSharing offering for residential areas Share: Renting out your own car kilometers BMW Group Investor Presentation, January 2017 Page 14

15 PREMIUM MOBILITY SERVICES CHARGENOW AND PARKNOW MAKE CHARGING AND PARKING EASIER THAN EVER. 65,000+ charging points in 29 countries On- and off-street parking car integration starting with all new BMW 5 Series Time & cost efficient Launched in 2016 in Austria, France & Germany Cashless BMW Group Investor Presentation, January 2017 Page 15

16 FINANCIAL TARGETS SUSTAINABLE GROWTH AND SOLID PROFITABILITY DESPITE CHALLENGES. BMW Group EBT margin (from 2017) Investment ratio* Research and development ratio Payout ratio Automotive Segment EBIT margin Free Cashflow Motorcycles Segment Sales volume EBIT margin (from 2017) Financial Services Segment Return on Equity % 4.2% 5.6% 32.9% 9.2% 5.4 bn 136,963 units 9.1% 20.2% 2020 >10% <5.0% % 30-40% 8-10% >3 bn > 200,000 units 8-10% >18% * Investments in property, plant and equipment and other intangible assets (without capitalized development costs). BMW Group Investor Presentation, January 2017 Page 16

17 MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR OF 8-10% DESPITE ONGOING CHALLENGES. Future costs Regulatory requirements Market and competitive environment Volatility 10 % 8 % Ongoing efficiency measures to compensate the cost burden Expansion & optimization Retail sales growth product portfolio Autos and Motorcycles New technologies/ equipment options Reduction of material costs Benefits from digitalization Efficiency measures BMW Group Investor Presentation, January 2017 Page 17

18 GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW TO 9.0 MN UNITS BY ,000 9,000 8,000 7,000 6,000 5,000 Rest of World, CAGR +4.6% BRIKT*, CAGR +5.2% China, CAGR +5.5% Japan, CAGR +0.4% 4,000 3,000 2,000 1,000 0 Region ( 000 units) Chg. World 7,749 9,012 16% Res t of World % BRIKT* % China (Mainland) 1,793 2,345 31% Japan % North America 1,944 2,173 12% Western Europe 2,707 2,894 7% North America, CAGR +2.3% Western Europe, CAGR +1.3% BMW Group Investor Presentation, January 2017 Source: Global Insight 04/2016 *BRIKT refers to Brazil, Russia, India, South Korea and Turkey Page 18

19 MORE THAN 70% OF EXPECTED ANNUAL SALES VOLUME WILL BE RENEWED UNTIL LUXURY BMW M760Li BMW i8 Roadster BMW X7 BMW 5 series family BMW X3 SMALL/ COMPACT MINI Countryman BMW 1series sedan (China) BMW X BMW Group Investor Presentation, January 2017 Schematic illustration of future launch dates Page 19

20 STRENGTHENING PROFITABILITY BY SALES GROWTH AND PRODUCT EXPANSION. HIGH PERFORMANCE CARS LUXURY SEGMENT X-PORTFOLIO BMW Group Investor Presentation, January 2017 Page 20

21 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 AUTOMOBILES BMW M240i Coupé CORE BRAND MODEL WITH M SPORT PACKAGE BMW 420i Coupé with M sport package TOP MODEL CORE BRAND BMW 228i Coupé BMW Group Investor Presentation, January 2017 Page 21

22 SIXTH GENERATION OF BMW 7 SERIES. THE NEW BENCHMARK IN THE LUXURY SEGMENT. BMW Group Investor Presentation, January 2017 Page 22

23 KEEPING THE LEAD. FURTHER EXPANSION OF THE X-PORTFOLIO PLANNED UNTIL BMW X1 BMW X2* BMW X3 BMW X4 BMW X5 BMW X6 BMW X7 BMW Group Investor Presentation, January 2017 *Concept Car Page 23

24 INTELLIGENT AND INNOVATIVE PRODUCTION. DIGITALIZATION CREATES NEW OPPORTUNITIES. Data and Analytics Smart Logistics Innovative Automation Additive Manufacturing Internet-of-Things Architecture Autonomous Transport Systems Collaborative Robot Systems Laminate or Metal Data Management for Planning and Control Global Supply Chain Visibility and Control Context-sensitive Worker Support Systems Serial Production and Rapid Prototyping Cyber Security Integrated Supplier Networks Reorganization of Work New Individualization BMW Group Investor Presentation, January 2017 Page 24

25 BMW GROUP SALES CONTINUE TO GROW THROUGH FY ,367, % 2,003, % 360, % 4, % 145, % BMW Group Investor Presentation, January 2017 Page 25

26 BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID FY 2016 GROWTH OF +5.3%. Americas Europe Mainland China Asia (w/o China) & Rest of World +9.2% -7.2% +11.3% +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 Royce is included in Rest of World, YTD Dezember2016 (figures may not add to 100% due to rounding) Page 26

27 BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS FY Deliveries of automobiles YTD 2016 YTD 2015 Change in % Europe 1,091, , thereof Germany 1) 308, , Great Britain 251, , France 84,257 77, Italy 83,750 71, Americas 458, , thereof USA 365, , Asia 745, , thereof China Mainland 516, , thereof BBA retail sales 316, , Japan 74,935 69, Rest of the World (incl. RR) 2) 71,645 69, Total 2,367,603 2,247, ) BMW Group Investor Presentation, January 2017 Registrations 2) Rolls-Royce sales are included in Rest of the World Page 27

28 BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA FY Share of JV Sales 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 61% in 000 units % % +11.3% % Import JV Sales % % % % % % BMW Group Investor Presentation, January 2017 Page 28

29 DELIVERIES TO CUSTOMERS BY SERIES OR BRAND FY Deliveries of automobiles YTD 2016 YTD 2015 Change in % 1 Series 176, , Series 196, , Series 411, , Series 133, , Series 331, , Series 13,400 20, Series 61,514 36, X1 220, , X3 157, , X4 58,055 55, X5 166, , X6 43,323 46, Z4 5,432 7, BMW i 29,280 29, BMW Total 2,003,359 1,905, MINI 360, , Rolls Royce 4,011 3, BMW Group Total 2,367,603 2,247, BMW Group Investor Presentation, January 2017 Page 29

30 BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. ADVENTURE TOUR SPORT ROADSTER HERITAGE URBAN MOBILITY NEW SINCE 2014 NEW SINCE 2012 BMW Group Investor Presentation, January 2017 Page 30

31 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 83.4 bn Dealer Finance 17.0 bn ~ 4.6 Million Serviced Retail Contracts EU Bank 30% 28% Americas Fleet Business 11.3 bn Multi Make Financing 7.9 bn Asia, Pacific 17% 25% EMEA Insurance 3.4 mn contracts Banking 9.6 bn BMW Group Investor Presentation, January 2017 Page 31

32 SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Profit before Tax (PBT) Financial Services [in mn ] SF 19% 1, ) 1, ) 1,619 1,723 1,975 1,517 1,641 1,214 2) M M ) 1) FY-08 EBT includes a negative effect of EUR 1,057 million from additional credit and residual value risk provisions. BMW Group Investor Presentation, January ) FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business. 3) FY-11 EBT includes a positive effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better than expected off-lease business. Page 32 4) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business.

33 BMW GROUP FINANCIAL SERVICES. SOLID DEVELOPMENT OF CREDIT LOSS RATIO. Credit loss ratio* [in %] M M-2016 BMW Group Investor Presentation, January 2017 * Definition Credit Loss Ratio : credit losses in relation to the average serviced portfolio. Credit losses: all write offs, meaning the lost receivable including accumulated interest and other costs less utilized collateral. Income related to the recovery process after write off is also taken into consideration. Page 33

34 THE BMW GROUP CONTINUED TO CHART A COURSE OF PROFITABLE GROWTH IN THE THIRD QUARTER BMW Group Q Q Change in % Earnings before tax Group (in m ) 2,575 2, EBT margin (in %) Group pp Automotive Segment Automotive sales (units) 583, , Earnings before interest and tax (EBIT) (in m ) 1,837 1, EBIT margin (in %) pp Net financial assets (m ) 16,715 14, Motorcycles Segment Sales (units) 35,290 33, Earnings before interest and tax (EBIT) (in m ) EBIT margin (in %) pp Financial Services Earnings before tax (EBT) (in m ) Penetration rate (in %)* pp Credit loss ratio (in %)* pp BMW Group Investor Presentation, January 2017 *As of 30 September 2015/2016 Page 34

35 BMW GROUP POSTS BEST-EVER FIGURES FOR THE FIRST NINE MONTHS OF BMW Group 9M M-2015 Change in % Earnings before tax Group (in m ) 7,741 7, EBT margin (in %) Group pp Automotive Segment Automotive sales (units) 1,746,638 1,644, Earnings before interest and tax (EBIT) (in m ) 5,778 5, EBIT margin (in %) pp Net financial assets (m ) 16,715 14, Motorcycles Segment Sales (units) 116, , Earnings before interest and tax (EBIT) (in m ) EBIT margin (in %) pp Financial Services Earnings before tax (EBT) (in m ) 1,641 1, Penetration rate (in %) pp Credit loss ratio (in %) pp BMW Group Investor Presentation, January 2017 Page 35

36 26TH CONSECUTIVE QUARTER TO ACHIEVE AUTOMOTIVE SEGMENT EBIT MARGIN WITHIN TARGET RANGE OF 8 TO 10% OR HIGHER. EBIT margin development automotive segment [in %] Target corridor: 8-10 % 8.1 BMW Group Investor Presentation, January 2017 Page 36

37 SOLID FREE CASH FLOW DEVELOPMENT IN THE AUTOMOTIVE SEGMENT. Free Cash Flow (Automotive) * [in m ] 5,404 4,471 2,277 3,166 3,809 3,003 3,481 3,376 3,415 Target: > 3 billion 1,456 n.a ** ** ** M M-2016 * Definition: Free cash flow corresponds to the cash inflow from operating activities of the Automobiles segment less the cash outflow for investing activities of the Automobiles segment adjusted for net BMW Group Investor Presentation, January 2017 investment in marketable securities and term deposits as reported, 2007 & 2008 calculated according to above definition from reported figures. No cash flow reporting on segment level in Page 37 ** 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8.

38 ONGOING RESEARCH & DEVELOPMENT PROJECTS TO MAKE BMW GROUP FUTURE PROOF. R&D Costs * [in m, HGB] R&D Ratio ** [in %, HGB] 6, , ,000 3,000 2,000 1, ,208 3,144 2, ,448 2, ,373 3, ,566 5, , , Target ratio: % *** M M BMW Group Investor Presentation, January 2017 HGB: German Commercial Code * R&D Expenditure: Research and development expenses plus capitalized research and development cost minus amortization of capitalized development costs. ** R&D Ratio: R&D expenditure divided by Group revenues. *** 2013 figures have been adjusted in accordance with IAS 8. Page 38

39 TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO. BMW Group Capital Expenditure * [in m ] Capex Ratio ** [in %] 6, , ,000 3,000 2,000 1, ,777 2,933 2, ,383 2,312 2, , , , , , , Target ratio: <5% *** M M BMW Group Investor Presentation, January 2017 * Capital Expenditure: additions to property, plant and equipment and other intangible assets (definition has been changed in 2016). ** Capital expenditure ratio: Capital expenditure divided by Group revenues. *** 2013 figures have been adjusted in accordance with IAS 8. Page 39

40 OUTLOOK FOR 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 Return on equity of at least 18%, on par with previous year Motorcycles Segment Solid increase in deliveries compared with the previous year BMW Group Investor Presentation, January 2017 Page 40

41 BMW GROUP S FINANCE STRATEGY COVERS THE ENTIRE AUTOMOTIVE VALUE CHAIN. BMW GROUP CORPORATE FINANCE STRATEGY REFLECTS THE INDUSTRIAL NATURE OFTHE BUSINESS AND IS FOCUSED ON THE ENTIRE AUTOMOTIVE VALUE CHAIN. Automotive value chain Research & Development Production Sales & Marketing Financial Services BMW Group Investor Presentation, January 2017 Page 41

42 DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ CP (EMTN) PPs Bonds Banks loans Others 1% Structured Financing 2% Bank Loans 10% Fed Funds 1% SSD 2% ABCP Customers deposits Fed Funds ABS BCD s Public Bonds 40% 91.2 bn * Brokered CD's 5% Customer Deposits BMW Bank 9% Industry-typical instruments Bank-typical instruments ABS 16% PP's 11% CP 3% BMW Group Investor Presentation, January 2017 *Adjusted, excluding currency and interest rate derivatives. Page 42

43 BMW GROUP INVESTOR RELATIONS. CONTACTS. Torsten Schüssler Head of Investor Relations Bernd Daser Debt & Equity IR Patrick Neumayer Debt & Equity IR Americas Tanja Seiler Equity & SRI IR Andreas Stöffler Equity IR Ziye Zhou Debt & Equity IR IR Contact BMW Group Investor Relations Petuelring Munich BMW Group Investor Presentation, January 2017 Page 43

44 BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR Annual Accounts Press Conference Analyst and Investor Conference Quarterly Report to 31 March Annual General Meeting Quarterly Report to 30 June Quarterly Report to 30 September BMW Group Investor Presentation, January 2017 Page 44

45 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 forward-looking statements. These statements are subject to many risks and uncertainties or may be affected by factors outside BMW Group s control, including adverse developments in global economic conditions resulting in a decline in demand in BMW Group s key markets, including China, North America and Europe; a deterioration in credit and financial markets; a shift in consumer preferences affecting demand for BMW Group s products; changes in the prices of fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; the effective implementation of BMW Group s strategic goals and targets; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; and other risks and uncertainties, including those described under the heading Report on Risks and Opportunities in BMW Group s most recent Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of BMW Group s forward-looking statements prove to be incorrect, actual results may be materially different from those BMW Group expresses or implies by such statements. BMW Group does not intend or assume any obligation to update these forward-looking statements. BMW Group Investor Presentation, January 2017 Page 45