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ANNUAL ACCOUNTS PRESS CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE
19 March 2013
BMW GROUP GREW DYNAMICALLY IN TERMS OF SALES, REVENUES AND PROFIT
STRATEGY NUMBER ONE PROFITABILITY INCREASED AS PLANNED
STRATEGY NUMBER ONE IMPLEMENTED SUCCESSFULLY BMW GROUP DELIVERS ON 2012 MILESTONE TARGETS
BMW Group Strategy target Guidance ACTUAL
R&D ratio 5.0-5.5% 5.0-5.5% 5.1%
Investment ratio <7.0% <7.0% 6.8%
Payout rate (dividend) increase 30-40% 32.0%
Automotive Segment Strategy target Guidance ACTUAL
Automotive sales (in k units) >1,800 >1,700 1,845
EBIT margin 8-10% 8-10% 10.9%
RoCE >26% >26% 75.0%
Free cash flow (in million €) >2,000 >3,000 3,809
Financial Services Segment Strategy target Guidance ACTUAL
Return on equity >18% >18% 21.2%
STRATEGY NUMBER ONE REMAINS OUR CRITICAL SUCCESS FACTOR
2012 INVESTMENT RATIO WITHIN TARGET RANGE FOCUS ON FURTHER GROWTH
Investment ratio BMW Group
Target: < 7.0%
8.8%
7.6% 7.9%
6.8%
5.4% 5.4%
6.8%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2006 2007 2008 2009 2010 2011 2012
2012 R&D RATIO WITHIN TARGET RANGE STRENGTHENING OUR COMPETITIVE POSITION
R&D ratio (HGB) BMW Group
Target: 5 - 5.5%
6.5%
5.6%
5.4%
4.8%
4.6%
4.9%
5.1%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
2006 2007 2008 2009 2010 2011 2012
HIGHEST PROPOSED DIVIDEND PAYOUT RATIO OF 32%
Dividend per common stock in € Total dividend in million €
1,508 1,640
0
300
600
900
1200
1500
1800
2011 2012
2.30 2.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2011 2012
4TH QUARTER 2012 QUANTITY AND QUALITY IMPROVED OVER Q4 2011
In million € 2012 2011 Change in %
Sales (units) 509,684 436,398 +16.8
Group revenues 20,536 18,349 +11.9
Group pre-tax result 1,779 1,339 + 32.9
Net profit 1,207 879 +37.3
Return on sales (EBT) (in %) 8.7 7.3 -
EBIT margin Automotive (in %) 10.6 9.2 -
AUTOMOTIVE SEGMENT – 2012 FINANCIAL YEAR EBIT MARGIN ABOVE TARGET RANGE
In million € 2012 2011 Change in %
Sales (units) 1,845,186 1,668,982 + 10.6
Revenues 70,208 63,229 + 11.0
Earnings before interest and tax (EBIT) 7,624 7,477 + 2.0
Earnings before tax (EBT) 7,195 6,823 + 5.5
EBIT margin (in %) 10.9 11.8 -
AUTOMOTIVE SEGMENT RECONCILIATION OF EBIT 2012 FROM PREVIOUS YEAR
In million €
7,477 7.477 8.503 8.609 9.046 8.524 8.439
7.624 7,624
+1,026 +106 +437 +131
-653 -85
-815
EBIT
2011
Balance from
exchange
rates/
commodities
Other
operating
income and
expenditure
Volume/ Mix/Market
Depreciation HR cost Residual
values
Effects from
Strategy Number ONE
EBIT
2012
FREE CASH FLOW IN THE AUTOMOTIVE SEGMENT ABOVE PREVIOUS YEAR
* Previous year adjusted
In million €
0
1,000
2,000
3,000
4,000
5,000
3,809
2012
3,166*
2011
STABLE LIQUIDITY AS PER END OF 2012 GOOD ACCESS TO CAPITAL MARKET GUARANTEED
In billion €
0
2
4
6
8
10
12
10.1
7.8
2.3
11.0
8.3
2.7
2011 2012
Cash & Cash equivalents
Securities
FINANCIAL SERVICES SEGMENT 2012 KEY FINANCIALS
In million € 2012 2011 Change in %
New retail-customer contracts (units) 1,341,296 1,196,610 +12.1
Sales revenues 19,550 17,510 + 11.7
Earnings before tax (EBT) 1,561 1,790 - 12.8
On-balance sheet business volume 80,974 75,245 + 7.6
Return on equity (in %) 21.2 29.4 -
Penetration rate (in %) 40.4 41.1 -
POSITIVE BUSINESS DEVELOPMENT OF BMW BANK AND ALPHABET INTERNATIONAL
WORLDWIDE CREDIT LOSS RATE SLIGHTLY LOWER
0.42 0.37 0.41
0.46
0.59
0.84
0.67
0.49 0.48
0,0
0,2
0,4
0,6
0,8
1,0
2004 2005 2006 2007 2008 2009 2010 2011 2012
In %
1.0
0.8
0.6
0.4
0.2
0.0
FURTHER DEVELOPMENT PLANNED FOR FINANCIAL SERVICES
MOTORCYCLES SEGMENT REALIGNMENT IMPACTS PROFIT
In million € 2012 2011 Change in %
Sales (in units) 117,109 113,572 + 3.1
Sales revenues 1,490 1,436 + 3.8
Earnings before tax (EBT) 6 41 - 85.4
MAXISCOOTERS C 650 GT AND C 600 SPORT NEW SEGMENT OF TWO-WHEELED VEHICLES
BMW MOTORRAD EXPANSION OF MODEL PORTFOLIO
SEGMENT ELIMINATIONS BETTER MARGINS IN LEASING PORTFOLIO
In million € 2012 2011 Change in %
Revenues -14,405 -13,359 + 7.8
Earnings before tax (EBT) -937 -1,103 + 15.0
OUTLOOK 2013 DEPENDING ON STABLE ECONOMIC CONDITIONS
BMW Group
• Group pre-tax profit on a similar scale to that reported in 2012.
Automotive Segment
• Sales growth in the one-digit percentage range – higher than the overall premium segment growth.
• EBIT margin within target range of 8-10%.
• Return on Capital Employed of at least 26%.
Segment Financial Services
• Return on equity of at least 18%.
Segment Motorcycles
• Further expansion of the BMW Motorrad product portfolio – sales growth should lead to increased
revenues and earnings.