ANALYST AND INVESTOR CONFERENCE - BMW Group€¦ · Presentation by Member of the Board of...

ANALYST AND INVESTOR CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE

March 20, 2014

BMW GROUP SUCCESSFUL IN 2013 FUTUREPROOFING ENHANCED

GROUP MARGIN AT 10.4%

EBT Margin BMW Group (in %)

0%

2%

4%

6%

8%

10%

12%

2013 2011 2009 2010 2012

10.4 10.7

0.8

8.0 10.2

BMW GROUP – 2013 FINANCIAL YEAR: GUIDANCE FULFILLED

In million € 2013 2012* Change in %

Automotive sales (units) 1,963,798 1,845,186 + 6.4

Group revenues 76,058 76,848 - 1.0

Group profit before tax (EBT) 7,913 7,803 + 1.4

Return on sales (EBT) (in %) 10.4 10.2 -

Group net profit 5,340 5,111 + 4.5

* Previous year adjusted

4TH QUARTER 2013: EBIT MARGIN FOR AUTOMOTIVE SEGMENT HIGHER THAN EXPECTED

In million € 2013 2012* Change in %

Automotive sales (units) 527,620 509,684 + 3.5

Group revenues 20,210 20,536 - 1.6

Group profit before tax (EBT) 1,889 1,760 + 7.3

Return on sales (EBT) (in %) 9.3 8.6 -

Group net profit 1,306 1,193 + 9.5

EBIT margin Automotive Segment (in %) 9.2 10.5 -

* Previous year adjusted

CAPEX RATIO ABOVE TARGET AS PLANNED BASIS FOR FURTHER GROWTH PROVIDED

Capex ratio for the BMW Group

Target: < 7.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2006 2007 2008 2009 2010 2011 2012 2013

8.8%

7.6% 7.9%

6.8% 6.8%

5.4% 5.4%

8.8%

EXPANSION OF GLOBAL PRODUCTION NETWORK

R&D EXPENDITURE AT €4.8 BN

R&D ratio (HGB) BMW Group

Target range: 5 – 5.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

2006 2007 2008 2009 2010 2011 2012 2013

6.5%

5.6%

5.4%

4.8%

4.6%

4.9% 5.1%

6.3%

2.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2012

2.60

2013

PROPOSED DIVIDEND TO INCREASE PAYOUT RATIO OF 32%

Dividend per common stock in € Total dividend payout in million €

0

300

600

900

1200

1500

1800

2012

1,707

2013

1,640

AUTOMOTIVE SEGMENT – 2013 FINANCIAL YEAR: EBIT MARGIN WELL WITHIN TARGET RANGE

In million € 2013 2012* Change in %

Sales (units) 1,963,798 1,845,186 + 6.4

Revenues 70,629 70,208 + 0.6

Profit before interest and tax (EBIT) 6,657 7,599 - 12.4

EBIT margin (in %) 9.4 10.8 -

Profit before tax (EBT) 6,561 7,170 - 8.5

* Previous year adjusted

AUTOMOTIVE SEGMENT: RECONCILIATION OF EBIT 2013 FROM PREVIOUS YEAR

In million €

EBIT

2012*

Net expense

from exchange

rates/

commodities

Other operating

income and

expenditure

Volume/ Mix/ Market

Depreciation Other changes EBIT 2013

7,599

6,657

- 214 + 133 - 167

- 218

- 476

EBIT margin

10.8%*

EBIT margin

9.4%

* Previous year adjusted

FREE CASH FLOW IN AUTOMOTIVE SEGMENT LOWER THAN IN PREVIOUS YEAR OWING TO INVESTMENTS

In million €

0

1,000

2,000

3,000

4,000

5,000

2,499

2013

3,809

2012* * Previous year adjusted

STABLE LIQUIDITY AS PER END OF 2013 FINANCIAL FLEXIBILITY ASSURED

In billion €

0

2

4

6

8

10

12

10.724

7.664

3.060

2013

11.025

8.370

2.655

2012

Securities

Cash & cash equivalents

FINANCIAL SERVICES SEGMENT: 2013 KEY FINANCIALS

In million € 2013 2012 Change in %

New customer contracts (units) 1,471,385 1,341,296 + 9.7

On-balance sheet business volume 84,347 80,974 + 4.2

Profit before tax (EBT) 1,639 1,561 + 5.0

Return on equity (in %) 20.2 21.2 -

Penetration rate (in %) 44.0 40.4 -

BMW GROUP WITH BEST RATING AMONG EUROPEAN AUTOMOTIVE MANUFACTURERS

Standard & Poor's Moody's

Short-term Rating A-1 P-1

Long-term Rating A+ A2

Outlook Stable Stable

POSITIVE BUSINESS DEVELOPMENT AT ALPHABET EXPANSION OF BMW BANK COMPLETED IN 2013

0.41 0.37 0.41

0.46

0.59

0.84

0.67

0.49

2004 2005 2006 2007 2008 2009 2010 2011

0.48

2012

0.46

2013

WORLDWIDE CREDIT LOSS RATE LOWER AND AT PRE-CRISIS LEVEL

In %

0

0.2

0.4

0.6

0.8

1.0

FURTHER GROWTH PLANNED FOR FINANCIAL SERVICES

BMW MOTORRAD – 2013 BUSINESS FIGURES: MAJOR INCREASE IN PROFIT

In million € 2013 2012 Change in %

Sales (units) 115,215 106,358 + 8.3

Sales revenues 1,504 1,490 + 0.9

Profit before interest and tax (EBIT) 79 9 -

EBIT-Margin (in %) 5.3 0.6 -

Profit before tax (EBT) 76 6 -

ENTRY INTO URBAN E-MOBILITY PRODUCT INITIATIVE TO CONTINUE IN 2014

SEGMENT ELIMINATIONS: IMPROVEMENT DUE TO INTRA-GROUP ELIMINATIONS

In million € 2013 2012 Change in %

Revenues - 15,955 - 14,405 - 10.8

Profit before tax (EBT) - 527 - 937 + 43.8

OUTLOOK FOR 2014 – SUCCESS TO CONTINUE IF BUSINESS CONDITIONS REMAIN STABLE

BMW Group

Significantly higher pre-tax profit than in previous year.

Automotive segment

Significant rise in vehicle deliveries and in revenues compared with previous year.

Currency factors could have a negative impact on revenues.

EBIT margin within target range of 8-10%.

Significant drop in Return on Capital Employed, but above long-term target of at least 26%.

Financial Services segment

Return on equity of at least 18%, but slight decrease compared with previous year.

Motorcycles segment

Slight rise in deliveries compared with previous year.

ATTRACTIVE PORTFOLIO AND FINANCIAL STRENGTH FORM THE BASIS FOR FURTHER GROWTH

ANALYST AND INVESTOR CONFERENCE

March 20, 2014