ANALYST AND INVESTOR CONFERENCE
March 19, 2015
DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE
EARNINGS AND PROFITABILITY TARGETS FOR 2014 FULFILLED
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
2014
10.8
2008
0.7
2007
8.8
GROUP EBT MARGIN OF 10.8%
In € million 2014 2013* Change in %
Sales (units) 2,117,965 1,963,798 + 7.9
Revenues – Group 80,401 76,059 + 5.7
Earnings before tax – Group
(EBT) 8,707 7,893 + 10.3
EBT margin (in %) 10.8 10.4 -
Net profit – Group 5,817 5,329 + 9.2
* Previous year figures adjusted
BMW GROUP – 2014 FINANCIAL YEAR: FIGURES FOR PREVIOUS YEAR EXCEEDED
In € million Q4 2014 Q4 2013* Change in %
Sales (units) 588,085 527,620 + 11.5
Revenues – Group 22,661 20,210 + 12.1
Earnings before tax – Group
(EBT) 1,868 1,869 - 0.1
EBT margin (in %) 8.2 9.2 -
Net profit – Group 1,270 1,295 - 1.9
EBIT margin Automotive Segm.
(in %) 8.2 9.1 -
* Previous year figures adjusted
4TH QUARTER 2014 BEST-EVER FOR RETAIL SALES
Plant Spartanburg, USA
CAPITAL EXPENDITURE OF € 6.1 BILLION PRODUCTION EXPANSION IN AMERICAS, ASIA, EUROPE
Capex ratio BMW Group [%]
Target: < 7.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2007 2008 2009 2010 2011 2012 2013
7.6% 7.9%
6.8% 6.8%
5.4% 5.4%
8.8%
2014
7.6%
CAPEX RATIO 2014 CLOSER TO TARGET
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%
2007 2008 2009 2010 2011 2012 2013
5.6%
5.4%
4.8% 4.6%
4.9% 5.1%
6.3%
2014
5.7%
R&D EXPENDITURE OF € 4.57 BILLION R&D RATIO JUST OUTSIDE TARGET RANGE
Dividend per common share (in €) Dividend payment (in € million)
0.00
2013 2014
2.60
0.50
1.00
1.50
2.00
2.50
3.00 2.90
0
2013 2014
300
600
900
1,200
1,500
1,800 1,707
2,100 1,904
DIVIDEND INCREASE OF € 0.30 PROPOSED PAY-OUT RATIO OF 33%
* Previous year figures adjusted
In € million 2014 2013* Change in %
Sales (units) 2,117,965 1,963,798 + 7.9
Revenues 75,173 70,630 + 6.4
Earnings before interest and tax
(EBIT) 7,244 6,649 + 8.9
EBIT margin (in %) 9.6 9.4 -
Earnings before tax (EBT) 6,886 6,561 + 5.0
AUTOMOTIVE SEGMENT – 2014 FINANCIAL YEAR: SEGMENT PROFITABILITY HIGHER
* Previous year figures adjusted
In € million
EBIT
2013*
Net expense
from exchange
rates/
commodities
Other
operating
income and
expenses
Volume/ Mix/
Market
Depreciation Other changes EBIT
2014
6,649
7,244 - 19 + 26
+1,674 - 423
- 663
EBIT margin
9.4%*
EBIT margin
9.6%
AUTOMOTIVE SEGMENT: 2013 TO 2014 EBIT WALK
* Previous year figures adjusted
In € million
0
1,000
2,000
3,000
4,000
5,000
2014 2013*
3,481 3,003
Target: > 3 bn. €
AUTOMOTIVE SEGMENT FREE CASH FLOW: TARGET OF > € 3 BILLION EXCEEDED
In € billion
0
2
4
6
8
10
12
Cash & cash
equivalents
Securities
2014 2013
11.660
7.688
3.972
10.724
7.664
3.060
STRONG LIQUIDITY POSITION SECURES FINANCIAL FLEXIBILITY
In € million 2014 2013* Change in %
New customer contracts (units) 1,509,113 1,471,385 + 2.6
Total volume of new customer
contracts 41,318 39,241 + 5.3
Earnings before tax (EBT) 1,723 1,619 + 6.4
Return on equity (in %) 19.4 20.0 -
Penetration rate (in %) 41.7 44.0 -
* Previous year figures adjusted
FINANCIAL SERVICES SEGMENT: NEW HIGHS IN 2014
POSITIVE BUSINESS DEVELOPMENT AT ALPHABET AND FINANCIAL SERVICES BUSINESS AREAS
In € million 2014 2013* Change in %
New customer contracts (units) 1,509,113 1,471,385 + 2.6
Total volume of new customer
contracts 41,318 39,241 + 5.3
Earnings before tax (EBT) 1,723 1,619 + 6.4
Return on equity (in %) 19.4 20.0 -
Penetration rate (in %) 41.7 44.0 -
* Previous year figures adjusted
FINANCIAL SERVICES SEGMENT: NEW HIGHS IN 2014
RISK SITUATION SIMILAR TO PREVIOUS YEAR GLOBAL EXPANSION OF RISK MANAGEMENT
BMW MOTORRAD: SALES GAINS IN EUROPE AND THE AMERICAS DELIVERIES INCREASED BY 7.2% TO 123,495 UNITS
In € million 2014 2013 Change in %
Sales (units) 123,495 115,215 + 7.2
Revenues 1,679 1,504 + 11.6
Earnings before interest and tax
(EBIT) 112 79 + 41.8
EBIT margin (in %) 6.7 5.3 -
Earnings before tax (EBT) 107 76 + 40.8
SUCCESSFUL FINANCIAL YEAR FOR BMW MOTORRAD STRONG INCREASE IN EARNINGS
BMW R 1200 RS BMW S 1000 XR
BMW R 1200 R BMW F 800 R
BMW S 1000 RR
FIVE NEW MODELS FOR LAUNCH IN 2015
In € million 2014 2013* Change in %
Automobiles 6,886 6,561 + 5.0
Motorcycles 107 76 + 40.8
Financial Services 1,723 1,619 + 6.4
Other Entities 154 164 - 6.1
Eliminations - 163 -527 + 69.1
BMW Group 8,707 7,893 + 10.3
* Previous year figures adjusted
POSITIVE EFFECTS FROM THE LEASING PORTFOLIO AND LEASING MIX IMPROVE EARNINGS IN THE ELIMINATIONS
BMW Group
Solid increase of BMW Group EBT compared with previous year
Automotive Segment
Solid rise in vehicle deliveries and revenues compared with previous year
EBIT margin in target range of 8-10%
Segment Financial Services
Return on equity of at least 18%, on par with previous year
Segment Motorcycles
Solid rise in deliveries compared with previous year
OUTLOOK FOR 2015 – POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGES
ATTRACTIVE PORTFOLIO AND FINANCIAL STRENGTH – THE BASIS FOR FURTHER GROWTH
ANALYST AND INVESTOR CONFERENCE
March 19, 2015