BMW GROUP INVESTOR PRESENTATION
MAY 2020
BMW Group Investor Presentation, May 2020 Page 1 DYNAMIC STRATEGY. AN ONGOING TASK.
POSITION. WHAT do we stand for? DIRECTION. WHAT drives us?
STRATEGIC APPROACH. WHERE do we want to go?
COOPERATION HOW do we achieve our goals?
BMW Group Investor Presentation, May 2020 Page 2 BMW GROUP STRATEGY.
WHAT do we stand for? WHERE do we want to go? POSITION. STRATEGIC APPROACH.
We take on business, environmental We focus on our customers and and societal challenges. fulfil their diverse needs worldwide.
HOW do we achieve WHAT drives us? our goals? DIRECTION COOPERATION.
We offer inspiring premium We deliver top performance. products for individual mobility. Each of us makes a contribution, Today and for future generations. based on our values.
BMW Group Investor Presentation, May 2020 Page 3 POWER OF CHOICE. OUR CUSTOMERS DECIDE WHAT IS RIGHT FOR THEIR NEEDS.
BMW X3. PETROL & DIESEL. BMW X3 xDRIVE 30e. BMW iX3.
VARIETY OF DRIVE TRAINS IN THE BMW X3.
BMW Group Investor Presentation, May 2020 Page 4 BMW i. FROM “BORN ELECTRIC”. TO “ONE PLATFORM SERVES ALL”.
2013 FROM ONE PLATFORM “BORN ELECTRIC”. 2021 ON. FITS ALL POWERTRAIN DERIVATIVES …
COMBUSTION ENGINE. PLUG-IN HYBRID. PURE ELECTRIC.
BMW Group Investor Presentation, May 2020 Schematic illustration. Page 5 OUR CLEAR ROADMAP. AT LEAST 25 ELECTRIFIED MODELS BY 2023 INCLUDING AT LEAST 13 FULLY ELECTRIC CARS. BY THE END OF 2020 THE BMW GOUP WILL HAVE AT LEAST 12 PHEVS BASIC MODELS AVAILABLE.
FULLY ELECTRIC. BMW i3 94 Ah/33 kWh BMW i4* BMW iX3*
BMW i3 BMW i3, BMW i3s BMW i3, BMW i3s 60 Ah / 22 kWh 94 Ah/33 kWh 120 Ah/42 kWh MINI Electric BMW iNEXT*
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
BMW i8 Coupe BMW X5 BMW 740e, BMW i8 Roadster BMW 745e, BMW X1 xDrive BMW 330e BMW X1 xDrive25e xDrive40e Le, Le xDrive 25Le (CN only) Le, Le xDrive
BMW 530e BMW 530e, xDrive BMW 330e xDrive Touring BMW 530 BMW 330e BMW i8 Coupé BMW 225xe Le China
BMW 225xe MINI Cooper S E BMW 530Le BMW X3 xDrive30e BMW X5 BMW X2 xDrive25e Countryman ALL4 (CN only) xDrive45e PLUG-IN HYBRID.
BMW X1 xDrive 25Le (CN only)
BMW Group Investor Presentation, May 2020 Schematic illustration of future launch dates. | *Vision/Concept cars. Page 6 E-MOBILITY WITHOUT COMPROMISE. BMW CONCEPT I4.
BMW i4 (2021).
UP TO 600 KM RANGE (BASED ON WLTP).
UP TO 530 HP.
5TH GENERATION BMW eDRIVE WITHOUT ANY RARE EARTHS.
BUILT IN MUNICH.
BMW Group Investor Presentation, May 2020 Page 7 LEADING PROVIDER OF ELECTRIFIED CARS. MORE THAN 146,000 UNITS SOLD IN 2019. ONE MILLION ON THE ROAD BY THE END OF 2021.
END OF 2021 1 MILLION SALES. ON THE ROAD. 146,160 ELECTRIFIED CARS. 2019 END OF 2019
142,386 2018 500,000 ON THE ROAD.
103,103 2017 EV (BEV + PHEV) SALES YTD Q1 2020: 30,692 (+13.9%)
61,873 2016
32,732 2015
17,805 2014
BMW Group Investor Presentation, May 2020 Page 8 ELECTRIFIED VEHICLES. ONE MILLION ON THE ROAD GLOBALLY BY THE END OF 2021.
ROADMAP EUROPEAN NEW VEHICLE FLEET.
2030 50% ELECTRIFIED.
2025 33% ELECTRIFIED. EUROPEAN SALES YTD MARCH. 2021 23% INCREASE ON PREVIOUS YEAR. 25% ELECTRIFIED. 10% ELECTRIFIED.
BMW Group Investor Presentation, May 2020 Page 9 BMW IS THE MARKET LEADER FOR ELECTRIFIED VEHICLES IN GERMANY.
BEV & PHEV SEGMENT SHARE 2019. EU-28 PLUS NORWAY. 77.2%
BMW GROUP ALL OEMs Ø 8.6% Ø 3.5% BEV & PHEV MARKET SHARE 2019. GERMANY.
BMW 21% 19.4% 12.1% 10.1% 10.1% 8.2% 7.5% 7.8% 6.6% MINI 3% 4.8% 5.2%
GER UK IT FR ESP BEL NET SWE AUS NOR OTHERS
OTHER END OF 2019. OVER 330,000 BMW GROUP PLUG-IN-HYBRID MODELS ON THE ROAD. OEMs
BMW Group Investor Presentation, May 2020 Page 10 WHAT WILL DRIVE ACCEPTANCE AND PROFITABILITY OF E-MOBILITY GOING FORWARD …
ACCEPTANCE PROFITABILITY OF EVs. Regulation favors OF EVs. Utilization of the pricing E-Mobility. potential of BEV/PHEVs.
Optimization of the Charging Infrastructure.
Diverse Product offering Improvement in Increase in volume/sales Production Efficiency. Smart and Efficient, covering different drivetrains, due to BMW i and Increase of charging prices and segments. iPerformance Rollout. points.
Driving Range Extension Decrease in Battery with new storage topologies Costs due to new and motor configurations. innovations and scalability. Material Costs Reduction due to higher supply and higher volume. TIME OUTLOOK. TIME OUTLOOK.
BMW Group Investor Presentation, May 2020 Page 11 SUSTAINABILITY. HOLISTIC APPROACH.
SUSTAINABLE PRODUCTION. VEHICLE EMISSIONS. External electricity sourcing CO2-emissions EU-fleet: 100% renewable. -50% by end of 2020 (vs. 1995). CO2-emissions: -60% since 2006. 12 electrified models on offer, >500,000 xEVs delivered to customers. HOLISTIC SUSTAINABILITY APPROACH. IN THE SUPPLY CHAIN. CONSISTENT RECYCLING. Direct sourcing of Cobalt/Lithium. All vehicles 95% recyclable. No rare earth materials in electric Up to 20% of plastics in vehicles motors (Gen5). are made from recycled material.
BMW Group Investor Presentation, May 2020 Page 12 SUSTAINABILITY IS FULLY INTEGRATED IN THE BMW GROUP AND LEADS TO TOP RATINGS.
TOP RATINGS.
DOW JONES MSCI ESG. CARBON FTSE4GOOD. ISS ESG. SUSTAINALYTICS. SUSTAINABILITY BMW’s A-rating DISCLOSURE Listed in the Corporate ESG Overall ESG Score: INDICES. remains unchanged PROJECT. FTSE4Good Index. Performance: Prime. Leader. The BMW Group is since August, 2017. In 2019, the BMW the only company in Group was ranked in the the automotive industry category Leadership continuously listed on with a A- rating. the index since the very beginning.
MILESTONES. 1973 2000 2009 TODAY
First environmental manager Executive Board resolution Establishment of Sustain- Sustainability is fully in the automotive industry. “Sustainability is a guiding ability Circle and Board. integrated across the whole principle of the BMW Group’s Corporate sustainability is value chain and part of corporate strategy.” declared as corporate target. divisional targets.
BMW Group Investor Presentation, May 2020 Page 13 EFFICIENT DYNAMICS. ACTIVE CLIMATE PROTECTION SINCE 2007.
EFFICIENT DYNAMICS. MILESTONES.
2007 2013 2019 AUTOMATIC START/ BMW i3: FULLY ELECTRIC 48 VOLT MILD STOP FUNCTION. SERIES-PRODUCTION CAR. HYBRID TECHNOLOGY.
2007 FUTURE. 2010 2016 2020 HIGH-PRECISION 3rd GENERATION AIR 5th GENERATION BMW INJECTION. FLAP CONTROL IN BMW eDRIVE TECHNOLOGY 7 SERIES . IN BMW iX3.
BMW Group Investor Presentation, May 2020 Page 14 CO2 COMPLIANCE. WE WILL REACH OUR EU TARGETS FOR 2020 AND 2021.
CO2-EMISSIONS. New passenger cars [g CO2 / km].
210 190 170 -17% 2019 – 2020 150 2006 – 2008 -20% 130 110 90
BMW Group Investor Presentation, May 2020 Page 15 BMW CONSIDERS THE TOTAL VALUE CHAIN OF BATTERY CELL. FROM CRADLE TO GRAVE.
RAW MATERIALS CELL DESIGN AND BATTERY RECYCLING. AND REFINING. PRODUCTION. “2ND LIFE”.
Optimized performance/ Environmental Cell/module/ Cell/module/pack design costs based on BMW Group and social standards. pack design. to foster recyclability. application. Development of recycling Raw material optimized Securing production Application on processes with ability for chemistry design. capacity. BMW Group sites. to close material loops.
Use of recycled Reduction Business Models Securing recycling raw materials. CO2 footprint. to secure markets. capacities.
Securing raw material supply.
BMW Group Investor Presentation, May 2020 Page 16 BMW VALUE CHAIN CHARGING. A HOLISTIC APPROACH.
MULTIPLE MSP-PARTNER MULTIPLE CPO-PARTNER
CHOICE
MARKET
SELECTED ENVIRONMENT
CUSTOMER BMW GROUP DCS HUBJECT IONITY EXT. PARTNER
BMW as initiator of a Fleet-, Workplace neutral eRoaming Access public BMW as selective and Dealership- platform. Basis for BMW as direct provider for the services: charging initator of charging Charging including
RATIONAL Direct customer interface infrastructure and transnational and infrastructure due to energy-management as Integration of BMW-Customers in our eco- payment functionality as provider-agnostic high dependency on important enabler for e- system. important enabler of e- access and services infrastructure. mobility – via flexible mobility. within public charging cooperations
infrastructure STRATEGIC BMW AS HOLISTIC INITATOR OF SERVICES THROUGHOUT THE ENTIRE VALUE CHAIN OF CHARGING TO GAIN AN EXCELLENT CUSTOMER EXPERIENCE.
MSP: Mobility Service Provider (e.g. ChargeNow) BMW Group Investor Presentation, May 2020 CPO: Charge-Point-Operator (e.g. Ionity) Page 17 DCS: Digital Charging Solutions GmbH SYSTEM INTEGRATION. MASTERING COMPLEXITY.
DESIGN. MANAGING MILLIONS OF CUSTOMERS SAFETY. IN SALES, FINANCIAL SERVICES AND AFTERSALES. PRODUCING 11,000 CARS PER DAY. 4,800 DEALERS IN 160 COUNTRIES. 4,500 SUPPLIER LOCATIONS. IN COMPLIANCE THOUSANDS WITH REGULATION. OF PARTS PER VEHICLE. ELECTRIFIED AND HIGH QUALITY AND PRECISION. EFFICIENT CONVENTIONAL ENGINES.
CUSTOMIZABLE. AUTOMATED DRIVING. FLEXIBLE FOR CUSTOMER DEMAND. DIGITAL SERVICES AND INTERFACES. COMPETITIVE PRICING. ECO-FRIENDLY IN PROFITABLE. PRODUCTION AND OPERATION.
BMW Group Investor Presentation, May 2020 Page 18 DIGITAL SOLUTIONS. INNOVATIVE AND EFFECTIVE USE CASES.
CAR. PRODUCTION. REMOTE SERVICE ARTIFICIAL UPGRADE. INTELLIGENCE APPLICATIONS.
QUANTUM COMPUTING RESEARCH. PURCHASING. FINANCIAL MATERIALS SIMULATION. RETRACEABILITY SERVICES. PROCESS OPTIMIZATION. BY BLOCKCHAIN. 100% DIGITAL MACHINE LEARNING. PROCESSES.
BMW Group Investor Presentation, May 2020 Page 19 YOUR NOW JOINT VENTURE. THE "MOBILITY POWERHOUSE" WITH A SIGNIFICANT END CUSTOMER BASE AND COVERAGE WORLDWIDE.
588 MIO. TRANSACTIONS.
>90 MIO. CUSTOMERS.
3.8 BN. GMV RUN RATE.
GMV RR*** & & in billions € n/a
YTD Q1 2020
CUSTOMERS** 2.7 45.4 10.0 39.8* 0.06 98.0 in millions
5.6 77.6 7.1 57.2* 0.14 148 INTERACTIONS in millions 16 151 19 >1,000* n/a >1,000 CITIES**
* For U.S. entity of PARK NOW, March 2020 figures estimated BMW Group Investor Presentation, May 2020 ** Partially, customer data summation w/o consideration of possible redundancies. Page 20 *** Due to current uncertain situation not applicable to estimate FY 2020 value. THE ROAD TO AUTONOMOUS DRIVING.
200,000 1,800 23,000 m2 240,000,000 QUANTITY? TB OF DATA. EXPERT DEVELOPERS. IS THE AREA. TEST KILOMETERS. NO, QUALITY.
ON THE ROAD WITH AUTONOMOUS DRIVING. THE BMW PERSONAL COPILOT TECHNOLOGY.
BY YOUR SIDE, WHEN YOU DECIDE.
INTELLIGENT DRIVING. INTELLIGENT PARKING. INTELLIGENT SAFETY.
BMW Group Investor Presentation, May 2020 Page 21 THE BMW GROUP USES INDUSTRY & CROSS-INDUSTRY COOPERATION TO PREPARE ITSELF FOR FUTURE TECHNOLOGIES AND BUSINESS OPPORTUNITIES.
ELECTRIFICATION AUTONOMOUS DRIVING DIGITAL & MOBILITY SERVICES AND CELL TECH
YOUR NOW Joint Venture. * *
Hydrogen & FuelCell
BMW Group Investor Presentation, May 2020 * Partnerships with suppliers Page 22 VERY ATTRACTIVE AND FRESH LINE UP OF THE X FAMILY SUPPORTS GROWTH AND PRODUCT MIX.
BMW X1 BMW X2 BMW X3 BMW X4
BMW X5 BMW X6 BMW X7
BMW Group Investor Presentation, May 2020 Page 23 PREMIUM SEGMENT SHARE OF TOTAL MARKET 2020.
30% 27% 26%
25%
20%
15% 14% World 12% 12% 12% Average: 11% 10% 10% 10.8%. 10% 9% 9% 8% 7% 5% 5%
0% Germany United Spain South Italy USA South Canada Australia China France Russia Turkey Japan Kingdom Korea Africa
BMW Group Investor Presentation, May 2020 Source: Global Insight 02/2020. Page 24 THE WORLD’S LEADING PREMIUM CAR COMPANY. BMW, ROLLS-ROYCE AND BMW MOTORRAD POST NEW ALL-TIME HIGHS IN 2019.
2,185,793 175,162 347,474 5,100 +3.3% +5.8% -4.6% +21.6%
BMW Group Investor Presentation, May 2020 Page 25 BMW, ROLLS-ROYCE AND BMW MOTORRAD DELIVERIES IN Q1 2020. DECREASE DUE TO CORONAVIRUS PANDEMIC.
411,809 34,774 64,449 853 -20.1% -9.9% -23.4% -27.2%
BMW Group Investor Presentation, May 2020 Page 26 BMW GROUP AUTOMOTIVE. SIGNIFICANT DECREASE IN DELIVERIES IN Q1 2020 DUE TO CORONAVIRUS PANDEMIC.
AMERICAS EUROPE MAINLAND CHINA REST OF WORLD**
-18.3%
-30.9% -17.6% -7.1%
17% 46% 24% 12%
81,791 units 220,812 units 116,452 units 58,056 units
Delivery figures have been adjusted retrospectively going back to 2015. The basis for the adjustments is a change in the Sales figures Q1 2020. Figures may not add to 100% due to rounding. BMW Group Investor Presentation, May 2020 methodology used to collate data for the BMW Group’s most important markets (China, USA, Germany, UK, Italy and **includes Rolls Royce sales Japan). The retrospective adjustment enables better comparability. Page 27 BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS Q1 2020.
Deliveries of automobiles* Q1 2020 Q1 2019 Change in %
Europe 220,812 270,393 -18.3% thereof Germany 67,882 74,632 -9.0% Great Britain 44,408 62,254 -28.7% Americas 81,791 99,320 -17.6% thereof USA 64,692 78,299 -17.4% Asia 162,604 216,932 -25.0% thereof China Mainland 116,452 168,433 -30.9% thereof BBA retail sales 87,443 128,653 -32.0% Rest of the World** 51,709 57,899 -10.7%
Total 477,111 600,614 -20.6%
*Some delivery figures have been adjusted retrospectively going back to 2015. The basis for the adjustments is a change in the methodology used to collate data for the BMW Group’s most important markets (China, USA, Germany, UK, Italy and Japan). The retrospective adjustment enables better comparability. BMW Group Investor Presentation, May 2020 **includes Rolls Royce sales Page 28 GROWTH IN CHINA DESPITE MARKET NORMALIZATION. 6 MODELS IN LOCAL PRODUCTION & MORE TO COME XEV SHARE IN CHINA 5 SERIES X1
4.3% 3 SERIES 1 SERIES SEDAN
X3 X2 3.6%
NEW MODEL
FY-2019 FY-2018
BMW Group Investor Presentation, May 2020 Page 29 BMW AND MINI RETAIL SALES DEVELOPMENT IN MAINLAND CHINA 2007 – 2019.
Share of JV Sales (through BMW Brilliance Automotive). 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 65% 72% 74%
[in m€] +14.0% 724.7 +7.0% +15.1% 635.8 594.4 +11.4%
+16.7 % +1.7% 516.4 456.0 463.7 +19.7 % 538.6 390.7 +40.3 % 384.1 455.6 326.4 316.2 +37.6 % 275.9 282.0 198.5 232.6 141.2 +86.7 %
169.0 94.4 +37.5 % +27.5 % 53.7 90.5 192.2 200.2 210.3 51.6 65.8 185.3 180.1 181.7 180.2 186.1 43.7 115.3 138.2 30.6 35.2 21.0 30.7 46.8 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
BMW Group Investor Presentation, May 2020 Import JV Sales in ‘000 units Sales figures FY19. Figures may not add to 100% due to rounding. Page 30 GLOBAL PRODUCTION NETWORK OFFERING HIGH FLEXIBILITY.
Hams Hall Berlin Leipzig PRODUCTION Oxford Dingolfing Munich Swindon Eisenach Regensburg NETWORK. Goodwood Landshut Wackersdorf HIGH FLEXIBILITY.
Kaliningrad Shenyang Born Tiexi Dadong Spartanburg Steyr Graz Cairo
San Luis Potosí Chennai Rayong Kulim Manaus Jakarta BMW GROUP PLANT. ASSEMBLY PLANTS. Rosslyn JOINT VENTURES. Araquari CONTRACT PRODUCTION PLANTS.
BMW Group Investor Presentation, May 2020 Page 31 AUTOMOBILE PRODUCTION BY PLANT IN 2019.
0% Munich, Germany BMW 3, 4 series 221,077
4% 8% Dingolfing, Germany BMW 3, 4, 5, 6, 7, 8 series 284,907 7% Regensburg, Germany BMW 1, 2, 3, 4 series, X1, X2 255,804 2% 11% Leipzig, Germany BMW 1, 2 series, i3, i8 230,284 9% Rosslyn, South Africa BMW 3 series, X3 69,463 Spartanburg, USA BMW X3, X4, X5, X6, X7 411,620 10% Dadong, China* BMW 5 series, X3 286,268 10% Tiexi, China* BMW 1, 2, 3 series , X1, X2 250,241 Oxford, UK MINI Hatch, MINI Clubman 222,340 9% Graz, Austria (Magna Steyr)** BMW 5 series 52,231 11% 3% Born, Netherlands (VDL Nedcar)** MINI Hatch, MINI Cabrio, MINI, Countryman, BMW X1 174,097 16% Goodwood, UK Rolls-Royce 5,455 Assembly plants 100,238
Sum 2,564,025
*Joint venture BMW Brilliance Automotive Ltd., Shenyang BMW Group Investor Presentation, May 2020 ** Contract production Page 32 AUTOMOTIVE SEGMENT EBIT MARGIN.
EBIT margin. [in %]
11.8 10.8
9.4 9.6 9.2 8.9 9.2 8.0 7.2
4.9
2010 2011 2012 2013* 2014 2015 2016 2017** 2018 2019
BMW Group Investor Presentation, May 2020 * 2013 figures have been adjusted in accordance with IAS 8. | ** Adjusted value for 2017 in accordance with IFRS 15. Page 33 BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE.
ADVENTURE TOUR SPORT ROADSTER HERITAGE URBAN MOBILITY
BMW Group Investor Presentation, May 2020 Page 34 FINANCIAL SERVICES AT A GLANCE. BUSINESS LINES (PORTFOLIO SIZE). CONSUMER DEALER MULTIMAKE FINANCE FINANCE FINANCE
Global operations in ~60 countries. ~5.5 million € 104.0 BN. € 21.2 BN. € 6.8 BN. serviced retail contracts. FLEET INSURANCE BANKING CHINA BUSINESS EU BANK APAC W/O CHINA 12% 19% 8% 4.0 MN. 26% 36% € 13.9 BN. CONTRACTS € 10.8 BN. AMERICAS EMEA
BMW Group Investor Presentation, May 2020 Page 35 SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT.
Earnings before Tax (EBT) Financial Services. [in m€]
*** 439 124 ****
122** 2,272 2,166 2,207 2,143 1,975 1,619 1,723 1,351 1,437 1,092 743 365
* 2007 -292 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
* FY-08 EBT includes a negative effect of EUR 1,057 million from additional credit and residual value risk provisions. | ** FY-10 EBT includes a positive effect of EUR 122 million BMW Group Investor Presentation, May 2020 from better than expected off-lease business. | *** FY-11 EBT includes a positive effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better Page 36 than expected off-lease business. | **** FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business. BMW GROUP FINANCIAL SERVICES. SOLID DEVELOPMENT OF CREDIT LOSS RATIO.
Credit loss ratio.* [in %]
0.84
0.67 0.59
0.49 0.48 0.50 0.46 0.46 0.41 0.37 0.32 0.34 0.25 0.26
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
* Definition Credit Loss Ratio : credit losses in relation to the average serviced portfolio. BMW Group Investor Presentation, May 2020 Credit losses: all write offs, meaning the lost receivable including accumulated interest and other costs less utilized collateral. Page 37 Income related to the recovery process after write off is also taken into consideration. BMW GROUP FY-2019 KEY FINANCIALS. BMW Group FY-2019 FY-2018* Change in % Earnings before tax (EBT) – Group (in m€) 7,118 9,627 -26.1 EBT margin (in %) – Group 6.8 9.9 -3.1% points Payout Ratio (in %) – Group 32.8 32.0 +0.8 % points Automotive Segment Sales (units) 2,538,367 2,483,292 +2.2 Earnings before interest and tax (EBIT) (in m€) 4,499 6,182 -27.2 EBIT margin (in %) 4.9 7.2 -2.3% points Net financial assets (m€)* 17,577 19,488 -10.9 Motorcycles Segment Sales (units) 175,162 165,566 +5.8
Earnings before interest and tax (EBIT) (in m€) 194 175 +10.9
EBIT margin (in %) 8.2 8.1 +0.1 % points
Financial Services Earnings before tax (EBT) (in m€) 2,272 2,143 +6.0 Return on Equity (in %) 15.0 14.8 +0.2 % points Penetration rate (in %) 52.2 50.1 +2.1 % points Credit loss ratio (in %) 0.26 0.25 +0.01 % points
*Prior year’s figures adjusted due to a change in accounting policy in connection with the adoption of IFRS 16; see note 6 to the Group Financial Statements. BMW Group Investor Presentation, May 2020 Page 38 In addition, figures for the prior year have been adjusted due to changes in presentation of selected items, which are not material overall. BMW GROUP Q1-2020 KEY FINANCIALS. BMW Group Q1-2020 Q1-2019 Change in % Earnings before tax – Group (in m€) 798 762 4.7 EBT margin (in %) – Group 3.4 3.4 0.0 % points
Automotive Segment Sales (units) 477,111 600,614 -20.6 Earnings before interest and tax (EBIT) (in m€) 229 -310 . EBIT margin (in %) 1.3 -1.6 .
Motorcycles Segment Sales (units) 34,774 38,606 -9.9
Earnings before interest and tax (EBIT) (in m€) 72 89 -19.1
EBIT margin (in %) 12.9 15.2 -2.3% points Financial Services Earnings before tax (EBT) (in m€) 484 627 -22.8
BMW Group Investor Presentation, May 2020 Page 39 THE BMW GROUP IS COMMITTED TO PLAYING A KEY ROLE IN TOMORROW’S MOBILITY.
R&D Expenditure.* R&D Ratio.** [in m€, HGB] [in %, HGB]
8,000 7.1 7,000 6.5 6.3 6.2 6.2 6,000 5.6 5.7 5.6 5.4 5.5 Long-term 5.1 target ratio: 4.8 4.9 5,000 4.6 5% – 5.5%.
4,000 6,890 6,419 3,000 6,108 5,169 5,164 4,792 4,566 2,000 3,952 3,208 3,373 3,144 2,864 2,448 2,773 1,000
0 2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 2018 2019
HGB: German Commercial Code. | R&D Expenditure: Research and development expenses plus capitalized research and development cost minus amortization of BMW Group Investor Presentation, May 2020 Page 40 capitalized development costs. | ** R&D Ratio: R&D expenditure divided by Group revenues. | *** 2013 figures have been adjusted in accordance with IAS 8. TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO.
BMW Group Capital Expenditure.* Capex Ratio.** [in m€] [in %]
6.5 5.2 5.7 5.7 5.4 5.6 5.4 4.8 Long-term target 5.2 ratio: <5%. 4.7 4.2 4.0 4.0 3.8
5,650 4,967 5,029 4,601 4,688 4,151 3,826 3,731 2,980 2,777 2,933 2,720 2,383 2,312
2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 2017 2018 2019****
* 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. BMW Group Investor Presentation, May 2020 Page 41 *** 2013 figures have been adjusted in accordance with IAS 8. ****Capital expenditure – mainly for property, plant and equipment – rose to 5.65 billion euros in 2019. This reflects the recognition of right-of-use assets in the balance sheet for the first time, according to IFRS 16. FREE CASH FLOW IN AUTOMOTIVE SEGMENT REMAINS STRONG, DESPITE SIGNIFICANTLY HIGHER INVESTMENTS.
Free Cash Flow (Automotive).* [in m€]
Long-term target: >3 billion. 5,792 5,404 4,471 4,459 3,809 3,481 3,166 3,003 2,713 2,277 2,567 1,456 1,156 197
2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 2017 2018 2019
*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 BMW Group Investor Presentation, May 2020 adjusted for net investment in marketable securities and term deposits. 2009 – 2015 as reported, 2007 & 2008 calculated according to above definition from reported figures. No cash Page 42 flow reporting on segment level in 2006. | ** 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8. PERFORMANCE > NEXT. IMPORTANT DECISIONS ALREADY BEING IMPLEMENTED.
CUSTOMER AND PROCESS AND SALES VEHICLE STRUCTURE COOPERATIONS
Improvement in sales Complexity and product variety Optimization of indirect Project-based cooperations performance and optimization reduction while maintaining purchasing and material cost for opening up new of customer interface based customer benefit. reduction. opportunities. on data analytics. Accelerate the R&D process. Cross-functional optimization Using industry & cross- of structures and processes. industry cooperation to develop future technologies.
BMW Group Investor Presentation, May 2020 Page 43 OUTLOOK 2020.
AUTOMOTIVE MOTORCYCLES FINANCIAL SERVICES BMW GROUP Significant decrease Significant decrease Moderate decrease in Significant decrease in Profit in deliveries* in deliveries Return on Equity before tax EBIT-margin between 0 EBIT-margin between Slight decease in workforce and 3% 3 and 5% at year-end Significant decrease in Fleet emissions**
Prior to the coronavirus outbreak, the company's planning envisaged the Automotive segment posting a slight increase in sales. The spread of the coronavirus slowed the BMW Group's worldwide vehicle sales. We now expect global sales in 2020 to be much lower than last year. In light of the negative effects of the pandemic and the assessment that deliveries in all markets would return to normal levels after a few weeks, we had published an EBIT margin target of 2% to 4% for the year as a whole by mid-March 2020. Other than assumed by mid-March 2020, we do now expect that the economic environment will only begin to stabilize in the third quarter of the year. Accordingly, we are expanding our guidance for the financial year and are expecting an EBIT margin of between 0 and 3%,with the first half of the year being affected more than H2. *Including the joint venture BMW Brilliance Automotive Ltd., Shenyang ** EU-28
BMW Group Investor Presentation, May 2020 Page 43 DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK - TYPICAL FINANCING INSTRUMENTS. FUNDING INSTRUMENTS FINANCIAL DEBT AS OF FY 2019
Commercial paper Other <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ 2.4% 0.6%
CP (EMTN) PPs Bonds
Liabilities from Banks loans customer deposits ABCP ABS 13.2%
Customers deposits Liabilities to banks 10.3% Fed Bonds Brokered Certificate of Deposits Funds 56.0%
Industry-typical Bank-typical ABS instruments instruments 17.6%
BMW Group continues to target a well diversified debt structure Sum: €111,1 bn.
BMW Group Investor Presentation, May 2020 Page 45 FOCUS ON LIQUIDITY AND FUNDING. IN A CHALLENGING ENVIRONMENT.
. Solid level of BMW Group Gross Liquidity with EUR 18.8 bn.* . Automotive Segment reporting Net Financial Assets of EUR 14.5 bn.* . Enhanced strong focus on Working Capital management and prioritised CAPEX planning. . Refinancing strategy continues to target a well-diversified debt structure across various regions and instruments. Banking entities within the BMW Group also enable Central Bank access. . Best rated European OEM and second best rated globally.** . Financial Services business with maturity matched funding profile. . Access to an untapped syndicated credit line of EUR 8 bn with a term up to July 2024. Made available by a large consortium of international banks.
BMW Group Investor Presentation, May 2020 * Figures as of March 31st 2020 **S&P A neg./ Moody‘s A2 watch neg. Page 46 CORPORATE FINANCE ENSURES SOLVENCY AT ANY TIME. MANAGING RISK ALONG THE ENTIRE VALUE CHAIN.
RESEARCH & SUPPLY SALES & FINANCIAL PRODUCTION DEVELOPMENT CHAIN MARKETING SERVICES
Currencies Liquidity Financial Risk Commodities Asset-Management Funding Interest Rates Sustainability & Governance
Solvent Increasing planning Yield oriented Strategic Independent security Risk optimized Direction Flexible Reducing earnings risk Chances Value Oriented Maintaining opportunities
Operational Minimum Liquidity Concept Selective Approach Asset-Liability-Studies Target Debt Structure Relative Value Liability-driven investment Implementation Financing Follows Markets Natural Hedging Lifecycle concept
BMW Group Investor Presentation, May 2020 Page 47 GLOBAL MARKETS ACCESS. TREASURY ORGANIZATION ENSURES 24 HOUR MARKET COVERAGE.
50 bn. EMTN Program Financial and Panda Bond Stand Alone Bonds 5 bn. EUR & 2 bn. French CP Program Asset Backed Securities Asset Backed Securities Asset Backed Securities BMW Bank Group of Treasury Center China Institutions Europe Beijing Treasury Center Europa Munich Den Haag BMW Group Treasury 144A / RegS Bonds Stand Alone Bonds Munich Asset Backed Securities 7 bn. USD CP Program Asset Backed Securities
Asset Backed Securities BMW Bank North America Salt Lake City Stand Alone Bonds 15 bn. IRS CP Program Treasury Center Asia Singapore 2.5 bn. AMTN Program Treasury Center Amerika Asset Backed Securities Woodcliff Lake Stand Alone Bonds Asset Backed Securities
BMW Group Investor Presentation, May 2020 Page 48 CONSUMPTION AND EMISSION DATA.
BMW Group Investor Presentation, May 2020 Page 49 BMW GROUP INVESTOR RELATIONS. CONTACTS.
Veronika Rösler Mariam Kremer Patrick Neumayer Head of Investor Relations Equity & Debt IR Equity & Debt IR
+49-89-382-25387 +49-89-382-96136 +49-89-382-24272 veronika.roesler@bmw.de [email protected] [email protected]
Tanja Seiler Andreas Stöffler Mirjam Wipfler Equity & SRI IR Equity IR & Annual General Equity IR Meeting (AGM)
+49-89-382-75161 +49-89-382-17944 +49-89-382-76974 [email protected] [email protected] [email protected]
IR Contact http://www.bmwgroup.com/ir BMW Group Investor Relations [email protected] Petuelring 130 80788 Munich
BMW Group Investor Presentation, May 2020 Page 50 BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2020.
06.05.2020 Quarterly Statement to 31 March 2020
14.05.2020 Annual General Meeting
05.08.2020 Quarterly Report to 30 June 2020
04.11.2020 Quarterly Report to 30 September 2020
BMW Group Investor Presentation, May 2020 Page 51 BMW GROUP INVESTOR RELATIONS. ON THE ROAD AND ONLINE H1-2020.
06.04.2020 Germany CFO Virtual Roadshow Germany
07./08.04.2020 USA CFO Virtual Roadshow USA
04.06.2020 Berlin dbAccess Conference
23.06.2020 London JP Morgan Auto Conference
BMW Group Investor Presentation, May 2020 Page 52 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, May 2020 Page 53