Quarterly Report 30 September 2018
Total Page:16
File Type:pdf, Size:1020Kb
QUARTERLY REPORT 30 September 2018 CONTENTS 1 BMW GROUP AT A GLANCE Page 4 BMW Group in Figures Page 10 BMW AG Stock and Capital Markets 2 INTERIM GROUP MANAGEMENT REPORT Page 13 Report on Economic Position Page 13 General Economic Environment Page 15 Automotive Segment Page 20 Motorcycles Segment Page 21 Financial Services Segment Page 23 Results of Operations, Financial Position and Net Assets Page 33 Report on Outlook, Risks and Opportunities Page 33 Outlook Page 40 Risks and Opportunities 3 INTERIM GROUP FINANCIAL STATEMENTS Page 42 Income Statement Page 42 Statement of Comprehensive Income Page 46 Balance Sheet Page 48 Cash Flow Statement Page 50 Statement of Changes in Equity Page 52 Notes to the Group Financial Statements Page 52 Accounting Principles and Policies Page 65 Notes to the Income Statement Page 68 Notes to the Statement of Comprehensive Income Page 70 Notes to the Balance Sheet Page 74 Other Disclosures Page 80 Segment Information 4 OTHER INFORMATION Page 85 Financial Calendar Page 86 Contacts BMW GROUP AT A GLANCE Page 4 BMW Group in Figures Page 10 BMW AG Stock and Capital Markets 1 4 BMW Group BMW GROUP IN FIGURES at a Glance BMW Group in Figures Key performance indicators reported during the year • 01 3rd quarter 2018 3rd quarter 2017 Change in % GROUP Profit before tax 1 € million 1,845 2,503 – 26.3 Workforce 2 (at 30 September 2018 / 31 December 2017) 133,475 129,932 2.7 AUTOMOTIVE SEGMENT Deliveries 3 units 592,303 590,415 0.3 Revenues 1 € million 21,111 20,433 3.3 EBIT margin 1, 4 % (change in %pts) 4.4 8.6 – 4.2 MOTORCYCLES SEGMENT Deliveries units 39,818 39,429 1.0 EBIT margin 1, 4 % (change in %pts) 6.9 10.4 – 3.5 1 Prior year figures adjusted due to first-time application of IFRS 15, see note 5 to the Interim Group Financial Statements. 2 Figures exclude suspended contracts of employment, employees in the non-work phases of pre-retirement part-time arrangements and low income earners. 3 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2018: 113,582 units, 2017: 93,641 units). 4 Profit before financial result as percentage of segment revenues. 5 BMW Group at a Glance BMW Group in Figures Further performance figures • 02 3rd quarter 2018 3rd quarter 2017 Change in % AUTOMOTIVE SEGMENT Deliveries BMW 1 units 506,920 499,467 1.5 MINI units 84,505 90,180 – 6.3 Rolls-Royce units 878 768 14.3 Total 1 592,303 590,415 0.3 Production volume BMW 2 units 535,828 526,092 1.9 MINI units 80,335 87,730 – 8.4 Rolls-Royce units 919 709 29.6 Total 2 617,082 614,531 0.4 MOTORCYCLES SEGMENT Production volume units 37,172 41,443 – 10.3 FINANCIAL SERVICES SEGMENT New contracts with retail customers 490,347 435,026 12.7 Free cash flow Automotive segment € million 98 668 – 85.3 Group revenues 3 € million 24,743 23,633 4.7 Automotive 3 € million 21,111 20,433 3.3 Motorcycles 3 € million 476 512 – 7.0 Financial Services € million 7,333 6,679 9.8 Other Entities € million 1 1 – Eliminations 3 € million – 4,178 – 3,992 – 4.7 Group profit before financial result (EBIT) 3 € million 1,745 2,384 – 26.8 Automotive 3 € million 930 1,758 – 47.1 Motorcycles 3 € million 33 53 – 37.7 Financial Services € million 527 607 – 13.2 Other Entities € million 6 – 12 – Eliminations 3 € million 249 – 22 – Group profit before tax (EBT) 3 € million 1,845 2,503 – 26.3 Automotive 3 € million 1,003 1,886 – 46.8 Motorcycles 3 € million 31 53 – 41.5 Financial Services € million 548 609 – 10.0 Other Entities € million 27 11 – Eliminations 3 € million 236 – 56 – Group income taxes 3 € million – 425 – 657 35.3 Profit from continuing operations € million 1,420 1,846 – 23.1 Loss from discontinued operations € million – 15 – – Group net profit 3 € million 1,405 1,846 – 23.9 Earnings per share 3, 4 € 2.09 / 2.09 2.76 / 2.76 – 24.3 / – 24.3 Group pre-tax return on sales 3, 5 % (change in %pts) 7.5 10.6 – 3.1 1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2018: 113,582 units, 2017: 93,641 units). 2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2018: 142,381 units, 2017: 114,394 units). 3 Prior year figures adjusted due to first-time application of IFRS 15, see note 5 to the Interim Group Financial Statements. 4 Common / preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of € 0.02 per share of preferred stock are spread over the quarters of the corresponding financial year. 5 Group profit before tax as a percentage of Group revenues. 6 BMW Group BMW GROUP IN FIGURES at a Glance BMW Group in Figures Key performance indicators reported during the year • 03 1 January to 1 January to 30 September 30 September 2018 2017 Change in % GROUP Profit before tax 1 € million 7,883 8,741 – 9.8 Workforce 2 (at 30 September 2018 / 31 December 2017) 133,475 129,932 2.7 AUTOMOTIVE SEGMENT Deliveries 3 units 1,834,810 1,811,234 1.3 Revenues 1 € million 62,629 62,599 – EBIT margin 1, 4 % (change in %pts) 7.6 9.4 – 1.8 MOTORCYCLES SEGMENT Deliveries units 126,793 127,818 – 0.8 EBIT margin 1, 4 % (change in %pts) 12.5 15.4 – 2.9 1 Prior year figures adjusted due to first-time application of IFRS 15, see note 5 to the Interim Group Financial Statements. 2 Figures exclude suspended contracts of employment, employees in the non-work phases of pre-retirement part-time arrangements and low income earners. 3 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2018: 328,800 units, 2017: 280,607 units). 4 Profit before financial result as percentage of segment revenues. 7 BMW Group at a Glance BMW Group in Figures Further performance figures • 04 1 January to 1 January to 30 September 30 September 2018 2017 Change in % AUTOMOTIVE SEGMENT Deliveries BMW 1 units 1,566,216 1,537,497 1.9 MINI units 265,935 271,394 – 2.0 Rolls-Royce units 2,659 2,343 13.5 Total 1 1,834,810 1,811,234 1.3 Production volume BMW 2 units 1,647,240 1,593,058 3.4 MINI units 283,116 281,591 0.5 Rolls-Royce units 3,040 2,346 29.6 Total 2 1,933,396 1,876,995 3.0 MOTORCYCLES SEGMENT Production volume units 125,180 146,995 – 14.8 FINANCIAL SERVICES SEGMENT New contracts with retail customers 1,422,558 1,369,263 3.9 Free cash flow Automotive segment € million 2,042 2,703 – 24.5 Group revenues 3 € million 72,460 73,324 – 1.2 Automotive 3 € million 62,629 62,599 – Motorcycles 3 € million 1,658 1,827 – 9.3 Financial Services € million 21,148 20,769 1.8 Other Entities € million 4 4 – Eliminations 3 € million – 12,979 – 11,875 – 9.3 Group profit before financial result (EBIT) 3 € million 7,224 8,137 – 11.2 Automotive 3 € million 4,730 5,879 – 19.5 Motorcycles 3 € million 208 282 – 26.2 Financial Services € million 1,703 1,799 – 5.3 Other Entities € million 22 0 – Eliminations 3 € million 561 177 – Group profit before tax (EBT) 3 € million 7,883 8,741 – 9.8 Automotive 3 € million 5,346 6,562 – 18.5 Motorcycles 3 € million 205 281 – 27.0 Financial Services € million 1,714 1,793 – 4.4 Other Entities € million 105 30 – Eliminations 3 € million 513 75 – Group income taxes 3 € million – 2,073 – 2,404 13.8 Profit from continuing operations € million 5,810 6,337 – 8.3 Loss from discontinued operations € million – 22 – – Group net profit 3 € million 5,788 6,337 – 8.7 Earnings per share 3, 4 € 8.69 / 8.70 9.55 / 9.56 – 9.0 / – 9.0 Group pre-tax return on sales 3, 5 % (change in %pts) 10.9 11.9 – 1.0 1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2018: 328,800 units, 2017: 280,607 units). 2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2018: 353,355 units, 2017: 297,992 units). 3 Prior year figures adjusted due to first-time application of IFRS 15, see note 5 to the Interim Group Financial Statements. 4 Common / preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of € 0.02 per share of preferred stock are spread over the quarters of the corresponding financial year. 5 Group profit before tax as a percentage of Group revenues. 8 BMW Group BMW Group automobile deliveries increased Earnings performance dampened by at a Glance Despite the high political and economic uncertainties numerous factors BMW Group triggered by trade conflicts, regulatory requirements Numerous factors had a dampening effect on the in Figures and the uncertain outcome of the Brexit negotiations, BMW Group’s earnings performance during the three- the BMW Group achieved new record figures for auto- month period under report. Earnings were adversely mobile deliveries in both the third quarter of 2018 and impacted by currency translation effects and changes the first nine months of the year. During the period in raw materials prices. In the third quarter, higher from July to September 2018, a total of 592,303 1 BMW, allocations to provisions for goodwill and warranty MINI and Rolls-Royce brand cars (+ 0.3 %) were hand- measures also had an impact.