Q1-2014_BMW-Group

BMWGroupInvestorPresentation,May2014Page1INVESTORPRESENTATIONMay2014BMWGroupInvestorPresentation,May2014Page2FIRSTQUARTER2013RESULTS.*)PrioryearfigureshavebeenadjustedinaccordancewiththeIFRS10,IFRS11andIFRS12.ineuromillionQ1-2014Q1-2013*Changein%Retailsales(units)487,024448,2008.7Grouprevenues18,23517,546+3.9Automotive16,55915,907+4.1FinancialServices4,8904,830+1.2PenetrationRate(in%)40.544.2-Groupprofitbeforefinancialresult(EBIT)2,0902,0382.6Automotive1,5801,580-EBITMarginAutomotive(in%)9.59.9-FinancialServices4654503.3Groupprofitbeforetax(PBT)2,1662,0038.1Groupnetprofit1,4621,31211.4Earningspershare(ineuro)2.22/2.221.99/1.9911.6/11.6Freecashflow(Automotive)932624+49.4Research&DevelopmentCosts(HGB)9939534.2%ofRevenues5.45.4-CapitalExpenditure1,2401,218+1.8%ofRevenues6.86.9-BMWGroupInvestorPresentation,May2014Page3GUIDANCE2014.BMWGroupSignificantlyhigherpre-taxprofitthaninpreviousyear.AutomotivesegmentSignificantriseinvehicledeliveriesandinrevenuescomparedwithpreviousyear.Currencyfactorscouldhaveanegativeimpactonrevenues.EBITmarginwithintargetrangeof8-10%.SignificantdropinReturnonCapitalEmployed,butoverlong-termtargetofatleast26%.FinancialServicessegmentReturnonequityofatleast18%,butslightdecreasecomparedwithpreviousyear.MotorcyclesegmentSlightriseindeliveriescomparedwithpreviousyear.BMWGroupInvestorPresentation,May2014Page4CONTENT.1CorporateStrategy3GrowthMarkets4Automotive5Motorcycles6FinancialServices7MobilityServices9Sustainability10EfficientDynamics11Financials12Funding2BMWi8ProductionNetworkBMWGroupInvestorPresentation,May2014Page5BMWGROUP.STRATEGYNUMBERONE.Page5BMWGroupInvestorPresentation,May2014BMWGroupInvestorPresentation,May2014Page6STRATEGICOBJECTIVE.Wewanttobetheleadingproviderofpremiumproductsandpremiumservicesforindividualmobility.Page6BMWGroupInvestorPresentation,May2014BMWGroupInvestorPresentation,May2014Page7THEWAYAHEAD–NUMBERONE.NumberONEdefinesourvisionfortheyear2020.ourmid-termtargetsfortheyear2016.ourinternalmilestones.Ourvisionistargetedtowardscreatingvalueandsecuringfuturesuccess.Wearedrivenbyourgoaltoincreaseprofitability.Page7BMWGroupInvestorPresentation,May2014BMWGroupInvestorPresentation,May2014Page8STRATEGYNUMBERONE–MANAGINGTHETECHNOLOGICALCHANGETOREMAINFUTUREPROOF.EvolutionEfficientcombustionenginesInnovativetechnologiesRevolutionAlternativedrivetrainsMobilityservicesBMWGroupInvestorPresentation,May2014Page9TECHNOLOGICALCHANGE–TURNINGACHALLENGEINTOANOPPORTUNITY.InternalCombustionEngineE-MobilityHybridsIntimesoftechnologicalchangewehavetoimproveourexistingtechnologiesandinvestheavilyinnewtechnologiestoremainfutureproof.timeGrowth,technologicalprogressTechnologicalchangeREVOLUTIONAlternativedrivetrainsMobilityservicesEVOLUTIONEfficientcombustionenginesInnovativetechnologiesBMWGroupInvestorPresentation,May2014Page10i3/i8FutureRetailNewproductsCFRPModulararchitectures&powertrains2013/2014:Increasingcapex+additionalupfrontinvestmentsCAPEXFORESTABLISHEDPROJECTSBUTALSOSIGNIFICANTUPFRONTINVESTMENTSNEEDEDTOSECUREBMWGROUP’SFUTURE.BMWGroupInvestorPresentation,May2014Page11TARGETS2016.BMWGroup20132016R&Dratio(cashR&D,%)6.35.0–5.5Capexratio(%)8.87.0Payoutratio(%)32.030.0–40.0AutomotiveSegmentRetailunitsales(‘000units)1,9642,000ReturnonCapitalEmployed(%)63.326.0ReturnonSales(EBIT,%)9.48.0–10.0Freecashflow(euromillion)2,4993,000SegmentFinancialServicesReturnonEquity(%)20.218.0BMWGroupInvestorPresentation,May2014Page12R&DRATIOTARGETFOR2014:BRINGTHERATIOINTHEDIRECTIONOFTHESTRATEGICCORRIDOR.R&DRatio:R&DExpenditure(HGB)/GroupRevenues7.0%201320022003200420052006200720112008200920105.1%5.8%6.2%6.7%6.5%5.6%5.4%6.4%6.5%5.0%4.5%6.0%4.0%4.8%4.6%4.9%5.5%6.3%2012BMWGroupInvestorPresentation,May2014Page132002CAPEXRATIOTARGETFOR2014:BRINGTHERATIOCLOSERTOTHE7%TARGET.CapexRatio:TotalCapex/GroupRevenues10.0%8.0%6.0%9.0%5.0%6.8%9.5%10.2%9.8%8.6%8.8%2013StrategicTarget:7.0%7.6%20032004200520062007201120087.9%20096.8%20105.4%5.4%7.0%8.8%2012BMWGroupInvestorPresentation,May2014Page14MANAGINGVOLUMEGROWTH,INNOVATIONANDPROFITABILITYTHROUGHCOST-CONSCIOUS,EFFICIENTR&D.•E-mobility•Newmaterials•Newtechnologies•Stronggrowthofproductportfolio•SeizingnewopportunitiesProfitabilityStandardisationInnovationBroaderR&DspectrumBMWGroupInvestorPresentation,May2014Page15WithoutaModularStrategy,athree-foldincreaseinmodelnumberswoulddrivecostsandresourcesspirallingalongtheprocesschain.TheModularStrategyenablesshorterdevelopmentcyclesandenhancedflexibilityinourplants.201520202005OURGOAL:TOMANAGEATHREE-TIMESLARGERPORTFOLIOWITHRESOURCESTHATHAVENOTINCREASEDPROPORTIONATELY.BMWGroupInvestorPresentation,May2014Page16THEMODULARSTRATEGYISTHEENABLERFORTHEEXPANSIONOFTHEBMWGROUPMODELRANGE.ModularfrontseatCommonelementse.g.:StructureHeadrestraintModularproductFrontseatattachmente.g.:StandardisedseatinstallationprocessModularsystemUnderbodye.g.:FrontseatattachmentsArchitecturesLowerinvestmentcostsLowerfixedcostsLowermanufacturingcostsShorterdevelopmenttimeShortertimetomarketLowerdevelopmentcostsBMWGroupInvestorPresentation,May2014Pag