BMW GROUP INVESTOR PRESENTATION. June 2016

Transcription

1 BMW GROUP INVESTOR PRESENTATION June 2016

2 STRATEGY NUMBER ONE > NEXT BMW Group Investor Presentation, June 2016 Page 2

3 FORWARD-LOOKING STRATEGIES LEADING TO A SUCCESSFUL CORPORATE DEVELOPMENT SINCE / 2003 Premium brand strategy Strategy Number ONE 2007 BMW Group Investor Presentation, June 2016 Page 3

4 VISION We are Number ONE. We inspire people on the move: We shape tomorrow s individual premium mobility. COMPETITIVE ADVANTAGE We unite excitement, responsibility and success: We have the most emotional products and attractive services. > Products > Technologies > Brands & Design > Customer Experience & Services > Digitalization > Profitability STRATEGIC APPROACH We are leading the BMW Group into a new era: We leverage innovative technologies, digitalization and sustainability to deliver unique customer experiences. CORPORATE CULTURE We create the future: We combine operational excellence and fresh thinking. BMW Group Investor Presentation, June 2016 Page 4

5 LEADERSHIP DRIVEN BY ASPIRATIONAL BRAND PORTFOLIO AND HIGHLY EMOTIONAL PRODUCTS. BRANDS & DESIGN Premium Brands Design Luxury Compact/Small Dynamic Target group Now Efficient BMW Group Investor Presentation, June 2016 Page 5

6 ATTRACTIVE PREMIUM BRANDS PROVIDE THE BASIS FOR A FURTHER EXPANSION OF THE PRODUCT PORTFOLIO. BRANDS & DESIGN BMW Group Investor Presentation, June 2016 Page 6

7 SIXTH GENERATION OF BMW 7 SERIES: THE NEW BENCHMARK IN THE LUXURY SEGMENT. PRODUCTS Page 7

8 KEEPING THE LEAD FURTHER EXPANSION OF THE X-PORTFOLIO PLANNED UNTIL PRODUCTS BMW X1 BMW X3 BMW X4 BMW X5 BMW X6 BMW X7 BMW Group Investor Presentation, June 2016 Page 8

9 BMW M AUTOMOBILES ARE THE VERY SPORTY AND DYNAMIC END OF OUR MODEL RANGE. PRODUCTS AN EXAMPLE: BRAND SHAPER BMW M4 GTS M AUTOMOBILES BMW M2 Coupé M PERFORMANCE AUTOMOBILES BMW M235i 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, June 2016 Page 9

10 iperformance AND BMW i BALANCING THE PRODUCT PORTFOLIO. PRODUCTS 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, June 2016 Page 10

11 SEVEN ELECTRIFIED BMW MODELS: FURTHER MODELS TO COME. PRODUCTS BMW i3 BMW i8 BMW 225xe iperformance BMW X5 xdrive40e iperformance BMW 330e iperformance BMW 530Le BMW 740e iperformance BMW Group Investor Presentation, June 2016 Page 11

12 FURTHER EXPANSION OF THE BMW i PORTFOLIO. PRODUCTS i NEXT Beginning ofthe next decade Continuous development of the BMW i3 with regard to range and design BMW Group Investor Presentation, June 2016 Page 12

13 PROJECT i 2.0: THE BMW i NEXT IS THE FUTURE OF MOBILITY. TECHNOLOGIES Lightweight construction Interior of the future Connectivity Sustainability BMW i NEXT Purpose-built Autonomous driving New sportiness Highly automated driving Electrification Artificial Intelligence BMW Group Investor Presentation, June 2016 Page 13

14 ENSURING OUR POSITION AS TECHNOLOGY LEADER. TECHNOLOGIES Technology and innovation leader Future focus: Powertrain technologies Future focus: Digitalization Efficient Dynamics NEXT Hydrogen Connectivity Artificial Intelligence Autonomous driving BMW Group Investor Presentation, June 2016 Page 14

15 THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS DRIVING. TECHNOLOGIES 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, June 2016 Page 15

16 MASTERING THE BASIC TECHNOLOGIES IS THE FIRST STEP FOR HIGHLY AUTOMATED DRIVING. TECHNOLOGIES Sensor systems Artificial Intelligence Regulatory requirements Intelligent autonomous vehicle Digital maps / HERE Digital reality model BMW Group Investor Presentation, June 2016 Page 16

17 LEVERAGING POTENTIAL OF DIGITALIZATION AND CONNECTIVITY. CUSTOMER EXPERIENCE & SERVICES BMW Connected Mobility Cloud BMW Group Investor Presentation, June 2016 Page 17

18 INTELLIGENT AND INNOVATIVE PRODUCTION - DIGITIZATION CREATES NEW POTENTIAL. DIGITALIZATION 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, June 2016 Page 18

19 BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. PRODUCTS ADVENTURE TOUR SPORT ROADSTER HERITAGE URBAN MOBILITY NEW SINCE 2014 NEW SINCE 2012 BMW Group Investor Presentation, June 2016 Page 19

20 MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR OF 8-10% DESPITE ONGOING CHALLENGES. PROFITABILITY 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, June 2016 Page 20

21 FINANCIAL TARGETS 2020: SUSTAINABLE GROWTH AND SOLID PROFITABILITY DESPITE CHALLENGES. PROFITABILITY 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, June 2016 Page 21

22 BMW GROUP BUSINESS UPDATE BMW Group Investor Presentation, June 2016 Page 22

23 SOLID START INTO THE NEW BUSINESS YEAR. BMW GROUP SALES FIGURES YTD MAY , % 797, % 136, % 1, % 65, % BMW Group Investor Presentation, June 2016 Page 23

24 BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID YTD MAY 2016 GROWTH OF +5.0%. Americas Europe Mainland China Asia (w/o) China & Rest of World +10.3% -7.9% +6.3% +6.6% 19% 46% 22% 13% 180,099 units 432,545 units 202,344 units 120,300 units BMW Group Investor Presentation, June 2016 Rolls Royce is included in Rest of World, YTD May 2016 (figures may not add to 100% due to rounding) Page 24

25 DELIVERIES TO CUSTOMERS BY SERIES YTD MAY Deliveries of automobiles YTD 2016 YTD 2015 Change in % 1 Series 68,966 68, Series incl. Active Tourer 76,230 49, Series incl. GT 173, , Series 55,435 62, Series incl. GT 139, , Series 5,595 9, Series 19,149 16, X1 77,126 48, X3 61,996 54, X4 24,415 23, X5 66,055 68, X6 18,031 17, Z4 2,248 3, BMW i 9,168 10, BMW Total 797, , MINI 136, , Rolls Royce 1,214 1, BMW Group Total 935, , BMW Group Investor Presentation, June 2016 Page 25

26 BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD MAY Deliveries of automobiles YTD 2016 YTD 2015 Change in % Europe 432, , thereof Germany 1) 125, , Great Britain 92,837 85, France 35,002 31, Italy 33,584 29, Americas 180, , thereof USA 144, , Asia 293, , thereof China Mainland 202, , thereof BBA retail sales 127, , Japan 28,200 26, Rest of the World 2) 29,456 27, Total 935, , ) BMW Group Investor Presentation, June 2016 Registrations 2) Rolls-Royce sales are included in Rest of the World Page 26

27 BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA YTD MAY Share of JV Sales 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 62% 63% in 000 units % % % Import JV Sales % % % % % % % YTD 2015 YTD 2016 BMW Group Investor Presentation, June 2016 Source: BMW Group Retail data, YTD May 2016 Page 27

28 PREMIUM SEGMENT SHARE OF TOTAL MARKET in % World Average: 8.9% Germany United Kingdom Italy USA Turkey France S. Korea Russia China Japan Brazil India BMW Group Investor Presentation, June 2016 Source: Global Insight 12/2015 Page 28

29 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, June 2016 Source: Global Insight 04/2016 *BRIKT refers to Brazil, Russia, India, South Korea and Turkey Page 29

30 BMW GROUP Q1-2016: GOOD START IN THE FIRST THREE MONTHS OF 2016, WITH A RECORD FIRST-QUARTER SALES VOLUME PERFORMANCE. BMW Group Q Q Change in % Earnings before tax Group (in m ) 2,368 2, EBT margin (in %) Group Automotive Segment Automotive sales (units) 557, , Earnings before interest and tax (EBIT) (in m ) 1,763 1, EBIT margin (in %) Net financial assets (m ) 17,511 15, Motorcycles Segment Sales (units) 33,788 31, Earnings before interest and tax (EBIT) (in m ) EBIT margin (in %) Financial Services Earnings before tax (EBT) (in m ) Penetration rate (in %) Credit loss ratio (in %) BMW Group Investor Presentation, June 2016 Page 30

31 EBIT MARGIN DEVELOPMENT AUTOMOTIVE SEGMENT. TARGET PROFITABILITY OF 8-10%. EBIT margin development automotive segment [in %] Target corridor: 8-10 % * Q1-2015Q BMW Group Investor Presentation, June 2016 * 2013 figures have been adjusted in accordance with IAS 8. Page 31

32 FREE CASH FLOW AUTOMOTIVE SEGMENT. TARGET OF >3BN EURO ANNUALLY. Free Cash Flow (Automotive) * [in m ] 5,404 4,471 2,277 3,166 3,809 3,003 3,481 Target: > 3 billion 1,456 1,060 n.a ** ** ** Q Q * 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, June 2016 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 ** 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8. Page 32

33 CAPITAL EXPENDITURE BMW GROUP. TARGET RATIO BELOW 5% OF GROUP REVENUES. 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% *** Q Q BMW Group Investor Presentation, June 2016 * 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 33

34 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 Return on equity of at least 18%, on par with previous year Motorcycles Segment Slight increase in deliveries compared with the previous year BMW Group Investor Presentation, June 2016 Page 34

35 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, June 2016 Page 35

36 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 1.6% Structured Financing 3.1% Bank Loans 8.1% SSD 2.4% Fed Funds 0.5% ABCP Customers deposits Fed Funds ABS BCD s Public Bonds 34.8% 86.5 bn * Brokered CD's 5.7% Customer Deposits BMW Bank 9.7% Industry-typical instruments Bank-typical instruments PP's 12.7% CP 6.2% ABS 15.3% BMW Group Investor Presentation, June 2016 *Adjusted, excluding currency and interest rate derivatives. Page 36

37 BMW GROUP INVESTOR RELATIONS. CONTACTS. Torsten Schüssler Head of Investor Relations Bernd Daser Debt & Equity IR Patrick Neumayer Debt & Equity IR USA 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, June 2016 Page 37

38 BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2016 & Quarterly Report to June Quarterly Report to September Annual Accounts Press Conference Analyst and Investor Conference Quarterly Report to March Annual General Meeting Quarterly Report to June BMW Group Investor Presentation, June 2016 Page 38

39 BMW GROUP INVESTOR RELATIONS. ON THE ROAD H J. P. Morgan European Automotive Conference London 08./ Unicredit Auto Credit Conference London db Access German, Swiss & Austrian Conference Berlin J. P. Morgan Global China Summit Beijing Roadshow Chicago, Toronto & Montreal DB ADAS Conference, London Roadshow Edinburgh Bank of America Merrill Lynch Future Mobility Conference, London BMW Group Investor Presentation, June 2016 Page 39

40 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, June 2016 Page 40