ANNUAL ACCOUNTS PRESS CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF - - PowerPoint PPT Presentation

ANNUAL ACCOUNTS PRESS CONFERENCE

March 18, 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

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

• perating

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

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

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

ANNUAL ACCOUNTS PRESS CONFERENCE

March 18, 2015