Investor Presentation of BMW Group 2009
Upcoming SlideShare
Loading in...5
×
 

Investor Presentation of BMW Group 2009

on

  • 6,827 views

 

Statistics

Views

Total Views
6,827
Views on SlideShare
6,784
Embed Views
43

Actions

Likes
3
Downloads
321
Comments
0

2 Embeds 43

http://www.slideshare.net 39
http://www.e-presentations.us 4

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Investor Presentation of BMW Group 2009 Investor Presentation of BMW Group 2009 Presentation Transcript

    • BMW Group BMW Group Investor Presentation September 2009 Page 1 Investor Presentation September 2009
    • BMW Group Investor Presentation September 2009 BMW Group. Key figures H1-2009. Page 2 2009 2008 Change Euro million 1 Jan. - 30 June 1 Jan. – 30June in % Revenues 24,480 27,837 -12.1 Loss / profit before financial result (EBIT) 114 1,252 -90.9 Automobiles -282 1,014 - Motorcycles 54 92 -41.3 Financial Services 145 118 22.9 Other entities 38 124 -69.4 Eliminations 159 -96 - Loss / profit before tax -47 1,243 - Net loss / net profit -31 994 - EPS in Euro (common / preferred) -0.05/-0.04 1.52/1.53 -/- Operating Cash flow (Automobiles) 2,109 2,383 -11.5 Equity 20,162 22,019 -8.4
    • BMW Group Update. BMW Group Investor Presentation September 2009 Successful financial management in H1-2009. Page 3 Proactive, foresighted financial management: Net current assets and other items*: reduced by EUR 1,607 million Free cash flow*: EUR 516 million Net interest bearing assets*: EUR 10,041 million Group liquidity: EUR 11,989 million *Automobiles Segment
    • BMW Group Update. BMW Group Investor Presentation September 2009 Outlook and action for 2009. Page 4 Focused cost management is the top priority. Increased efforts to reduce material costs (more than EUR 4 billion) until 2012. EUR 500 million cost savings from headcount reduction from 2009 onwards. Optimization of capital employed. Reduction of capital expenditure without sacrificing investment in the future. Continuation of strict working capital and free cash flow management. Resolute pursuit of strategy Number ONE.
    • BMW Group Investor Presentation September 2009 BMW Group Update. Page 5 Targets and guidance. Due to the considerable uncertainty about how the global economy will develop from here, it is currently impossible to make stable forecasts for the year 2009. We expect the entire industry’s global auto sales to drop by 10 to 20 % in 2009 and pick up over the course of 2010. We are assuming that we will be unable to match last year´s sales figure. But we want to assert or expand our segment share in the single markets. We remain committed to achieving our profitability and FCF targets for 2012!
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 6 Core elements of our corporate strategy. Strategic Realignment Premium Brand Strategy: Process management: Focus on premium Flexibility in production segments in the automobile and Component exchange motorcycle market Networking Sustainability & Efficient Dynamics Financial Strategy
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 7 Strategic objective. The BMW Group is the leading provider of premium products and premium services for individual mobility.
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 8 The way ahead – Number ONE. Number ONE defines our vision for the year 2020. our mid-term targets for the year 2012. our internal milestones. Our vision is targeted towards creating value and securing future success. We are driven by our goal to increase profitability.
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 9 Targets 2012. Group 2006 2012 Auto Sales (‘000 units) 1,374 - Motorcycle Sales (‘000 units) 100 1501) R&D ratio (%) 6.5 5.0 – 5.5 Capex ratio (%) 8.8 <7.0 Dividend (euro, common/prefered) 0.70/0.72 substantial increase Automobiles Segment RoCE (%) 21.7 >26 Return on Sales (EBIT, %) 6.4 8 – 10 Free Cash Flow (euro million) 9562) >2,000 1) Projected growth until 2012 includes Husqvarna brand sales 2) Free Cash Flow from Industrial Operations
    • BMW Group Strategy. BMW Group Investor Presentation September 2009 Improvement of R&D ratio. Page 10 7.0% 6.7% 6.5% 6.4% 6.5% 6.2% 6.0% 5.8% 5.6% 5.5% 5.4% 5.0% 4.5% 4.9% 4.0% 2001 2002 2003 2004 2005 2006 2007 2008 2012 R&D ratio: R&D Expenditure (HGB) / Revenues
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Improvement of capex ratio. Page 11 11.0% 10.2% 10.0% 9.8% 9.0% 9.5% 8.8% 9.1% 8.0% 8.6% 7.9% 7.0% 7.6% 6.0% Target: <7% 2001 2002 2003 2004 2005 2006 2007 2008 2012 Capex ratio: Total Capex / Revenues
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 12 Reduction of material costs. Cost of sales The material costs represent ~€ 44bn* the biggest cost pool. We want to achieve significant cost reductions in Material costs the supply chain. ~€ 24bn* We will not only negotiate harder but we will work close together with the suppliers to ensure sustainable cost reductions. We will implement the efficiency-enhancement measures in all future product and technology *2008 figures projects.
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 13 Efficiency improvements. 7,000 6,000 5,000 4,000 Expenses / fixed costs / R&D 3,000 2,000 1,000 Cost of materials / purchasing 0 2008 2009 2010 2011 2012 Cost of materials/purchasing: >€4bn or at least 2/3 of the total potential Expenses/fixed costs/R&D: €2bn or 1/3 of the total potential
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 14 Natural hedging. +30% 200k 260k Oxford +60% +47% 30k 44k 150k 240k Spartanburg Shenyang Significant increase in purchasing volume in the NAFTA region (based on 13% of total purchasing in 2008).
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 15 Core elements of our corporate strategy. Strategic Realignment Premium Brand Strategy: Process management: Focus on premium Flexibility in production segments in the automobile and Component exchange motorcycle market Networking Sustainability Financial Strategy
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 16 Three authentic premium brands. The world’s most Sheer driving The pinnacle of exciting premium pleasure automobile luxury small car brand
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 17 Growth with new models. Expansion of BMW X model series with BMW X6 and X1 BMW 5 series Gran Turismo Rolls-Royce Phantom Coupe Expansion of Rolls-Royce range with smaller model MINI Crossover Concept Project i
    • BMW Group Automobiles. BMW Group Investor Presentation September 2009 Priority on growth markets. Page 18 Eastern Europe USA Russia India China
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Deliveries to customers through July 2009. Page 19 Deliveries of automobiles in units 2009 ytd. 2008 ytd. Change in % Total BMW 604,190 744,025 -18.8 1 series 128,822 137,570 -6.4 3 series 226,803 298,568 -24.0 5 series 99,631 124,830 -20.2 6 series 5,625 11,210 -49.8 7 series 25,112 23,175 8.4 X3 32,498 54,113 -39.9 X5 50,698 72,699 -30.3 X6 23,561 8,696 170.9 Z4 11,440 13,164 -13.1 Total MINI 120,813 146,040 -17.3 Total Rolls-Royce 374 597 -37.4 BMW Group 725,377 890,662 -18.6
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Premium segment sales vs. BMW Group retail Page 20 sales development (month on month). 2008 2009 BMW Group retail sales Premium Segment sales (estimates)
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Deliveries to customers 2008. Page 21 Deliveries of automobiles in units 2008 2007 Change in % Total BMW 1,202,239 1,276,793 -5.8% 1 series 225,095 165,803 35.8% 3 series 474,208 555,219 -14.6% 5 series 202,287 230,845 -12.4% 6 series 16,299 19,626 -17.0% 7 series 38,836 44,421 -12.6% X3 84,440 111,879 -24.5% X5 116,489 120,617 -3.4% X6 26,580 0 - Z4 18,005 28,383 -36.6% Total MINI 232,425 222,875 4.3% Total Rolls-Royce 1,212 1,010 20.0% BMW Group 1,435,876 1,500,678 -4.3%
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 22 BMW and MINI retail by model 2008 (2007). Total BMW Group sales: 1,435,476 (1,500,678) units. BMW brand share: 1,202,239 (1,276,793) units or 83.8% (85.1%) of total sales. MINI brand share: 232,425 (222,875) units or 16.2% (14.9%) of total sales. MINI retail by model 2008 (2007). 225,095 27,488 (35,720) (165,803) 61,934 (77,124) 29,581 232,425 (21,764) (222,875) 474,208 43,132 (48,245) (555,219) 23,208 (35,108) 1,202,239 47,082 (4,914) (1,276,793) Total MINIOne, One D Cooper Cooper D Cooper S Convert. Clubman 100% 11.8% 26.6% 12.7% 16.8% 10.0% 20.3% 202,287 (100%) (16.0%) (34.6%) (9.8%) (21.6%) (15.8%) (2.2%) (230,845) 16,299 38,836 (19,626) 84,440 (44,421) (111,879) 116,489 (120,617) 26,580 18,005 (28,383) Total BMW 1 Series 3 Series 5 Series 6 Series 7 Series X3 X5 X6 Z4 100% 18.7% 39.4% 16.8% 1.4% 3.2% 7.0% 9.7% 2.2% 1.5% (100%) (13.0%) (43.5%) (18.1%) (1.5%) (3.5%) (8.8%) (9.4%) (2.2%)
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 23 Brand and product overview. Sedan Wagon Hatch Coupe Convert. Roadster New Seg. SAV Luxury PlusPlus Phantom Coupe Convert. PlusPlus Plus 7 Series 6 Series 6 Series Base Upper Plus 5 Series 5 Series GT X5, X6 Medium Base Lower Plus 3 Series 3 Series 3 Series 3 Series Z4 X3 Z4 Medium Base Compact Plus 1 Series 1 Series 1 Series X1 Base Small Plus MINI MINI MINI Base New products to be launched until 2012
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 24 Current models – lifecycle overview. 2004 2005 2006 2007 2008 2009 2010 - 2012 Phantom Drophead Rolls Royce Phantom Coupé Ghost Coupé X5 NG X6 X6 Active Hybrid X Models X3 LCI X1 X3 NG LCI Z4 NG Coupe 7 Series LCI Sedan NG Active Hybrid Coupe 6 Series LCI NG Convert. 5 Series Touring LCI GT NG LCI Sedan Coupe M3 Coupe 3 Series Sedan/Touring NG Touring Convert. M3 Sedan, Convert. LCI Coupe 1 Series 5 door hatch NG 3 door hatch Convert. Cooper / Cooper S Clubman Crossover MINI One / Cooper D MINI E Convertible *LCI: Lifecycle Impulse
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 25 Model renewal rate. Cumulated Model Renewal Rate (as % of total expected annual sales volume) 70% 3.5 >60% 60% 3.3 years 3.0 Ø age of product portfolio 50% 2.5 (sales & mix adjusted) 2.6 years 40% 40% 2.0 30% 1.5 20% 20% 1.0 10% 10% 0.5 3% 0% 0.0 2008 2009 2010 2011 2012
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 26 Product overview MINI. MINI Hatch. MINI Convertible. Launch 03/2009 MINI Clubman.
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 27 New product 2008. BMW 7 series
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 28 New product 2009. BMW Z4 Launch 05/2009
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 29 New product 2009. BMW X1 Launch 10/2009
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 30 New product 2009. BMW 5 series Gran Turismo Launch 10/2009
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 31 BMW Advanced Diesel with Blue Performance. US market introduction: December 2008 X5 Xdrive 35d Emission Standard LEVII / Bin5 265 hp, 0-60 mph < 7.4s Fuel consumption > 27 mpg (USC) 335d Emission Standard LEVII / Bin5 265 hp, 0-60 mph < 6.2s Fuel consumption > 33 mpg (USC)
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 32 BMW Active Hybrid. US Market introduction: End of 2009 (EU: 04/2010) X6 Active Hybrid Full (Two-Mode) Hybrid system Emission Standard ULEVII / EU5 System Power: 485 hp, 0-60 mph: 5.6s Consumption: 9.9l/100km (28.5mpg) (-20% compared to base X6 xdrive 50i) 7 series Active Hybrid Mild Hybrid system Emission Standard ULEVII / EU5 System Power: 465 hp, 0-60 mph: 4.9s Consumption 9.4l/100km (29.1mpg) (-15% compared to base 750li)
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 33 The worldwide premium segment is expected to grow to 8.2mn units p.a. in 2022. 9,000 Premium Segment: CAGR 2008-2022: 2.5% Total Growth 2008-2022: 41% 8,000 CAGR +7.3% 7,000 6,000 CAGR +4.2% 5,000 4,000 3,000 Region (‘000 units) 2008 2022 Chg. CAGR +2.0% World 5,836 8,220 41% 2,000 China* 342 914 167% Asia, Pacific & Africa 526 932 77% 1,000 Americas 1,921 2,519 31% CAGR +2.0% Europe (ex Germany) 2,086 2,737 31% Germany 954 1,107 16% CAGR +1.1% 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Global Insight *China includes Mainland China, Hong Kong and Taiwan
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 34 Premium segment growth in emerging markets. Source: Global Insight, in ‘000 units 1,000 167.3% 2008 Sales Sales Forecast by 2022 900 914 800 700 572 600 500 400 342 65.6% 300 264 200 105 98.2% 184 85.0% 159 91 151 70 19.3% 91.0% 100 93 82 44.2% 694.2% 188.8% 181.8% 72 72 62 61 22 27 20 38 32 8 9 7 0 China1) Russia GCC2) New EU Latin South Korea Ukraine India Malaysia Thailand Countries3) America4) 1) China includes Mainland China, Hong Kong and Taiwan 2) GCC: Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates 3) New EU Countries: Bulgaria, Estonia, Latvia, Lithuania, Poland, Rumania, Slovakia, Slovenia, Czech Republic, Hungary 4) Latin America: Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Puerto Rico, Uruguay, Venezuela
    • BMW Group Investor Presentation September 2009 BMW Group Automobiles. Page 35 Premium segment share of total market. 35% 30% 25% 20% Germany United Kingdom 15% 10% World Average: 9.3% Italy USA France 5% Russia China Japan RoW 0% Premium Segment Share of Total Market 2008
    • BMW Group Investor Presentation September 2009 BMW Group Motorcycles. Product overview. Page 36 ENDURO TOUR SPORT URBAN Price (€) 20,000 HP2 Sport K 1300 GT HP2 Megamoto R 1200 RT K 1300 S R 1200 GS Adventure K 1300 R R 1200 GS R 1200 R F 800 GS 10,000 2 Cyl. F 800 R G 450 X F 800 ST G 650 X G 650 X F 800 S Moto F 650 GS (2 Cyl.) Challenge G 650 GS (1 Cyl.) G 650 X Country
    • BMW Group Investor Presentation September 2009 BMW Group Motorcycles. Page 37 Retail unit sales 1990– 2012. 160,000 units 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2012* * Projected growth until 2012 includes Husqvarna brand sales.
    • BMW Group Investor Presentation September 2009 BMW Group Financial Services. Page 38 Global presence in 54 countries with 4,000 employees. BMW Financial Services MINI Financial Services
    • BMW Group Investor Presentation September 2009 BMW Group Financial Services. Page 39 Leasing has multiple benefits for the BMW Group. Loyalty Rates (2) 61.6 months (1) Cash buyers 62.7% 36.2 months (1) Leasing 75.2% Year 1 Year 12 (1) average ownership cycle in Germany; (2)German market, 2006 data Average level of optional equipment in Germany (Example, in EUR): 0 2,000 4,000 6,000 8,000 10,000 12,000 Leasing 9,838 Cash buyer 7,115 + 38 % Basis: German market, 9.000 customers, all model lines, 2006 data
    • BMW Group Investor Presentation September 2009 BMW Group Financial Services. Page 40 Profit before Tax (PbT) Financial Services. 800 743 in million Euro 685 605 600 515 452 422 387 400 345 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 -200 -292 -400
    • BMW Group Financial Services. BMW Group Investor Presentation September 2009 Additional risk provisions in 2008. Page 41 Total: EUR 1,968 million Automobiles Financial Segment: Services EUR 911 million segment: EUR residual values 1,057 million EUR 363 million credit losses EUR 694 million residual values
    • BMW Group Investor Presentation September 2009 BMW Group Financial Services. Page 42 Penetration rate retail business. 48.5% 46.4% 47.0% 44.6% 42.0% 42.4% 41.1% 38.3% 34.5% 35.0% 36.1%
    • BMW Group Financial Services. BMW Group Investor Presentation September 2009 Development of credit loss rates. Page 43 0.80% 0.74% 0.75% 0.70% 0.65% 0.60% 0.59% 0.54% 0.55% 0.50% 0.46% 0.46% 0.45% 0.41% 0.41% 0.40% 0.37% 0.35% 2002 2003 2004 2005 2006 2007 2008 H1-2009
    • BMW Group Investor Presentation September 2009 BMW Group Financial Services. Page 44 Resale value development in the USA. 58 % 3 year old retention 36 months residual value (ALG) 56 % 55 % 54 % 54 % 54 % 53 % 52 % 52 % 52 % 52 % 51 % 51 % 50 % 55 % 55 % 57 % 54 % 55 % 54 % 52 % 46 % 98/01 99/02 00/03 01/04 02/05 03/06 04/07 05/08 06/09 BMW received The Automotive Leasing Guide (ALG) Residual Value Award in 2004, 2005 and 2006 for “the highest predicted resale value of any luxury brand”. BMW was named “Best Brand” in Kelley Blue Book’s 2005 and 2006 “Best Resale Value Awards”. 2009 BMW X5 awarded by Kelley Blue Book for “Best resale value in the Luxury Crossover Segment”.
    • BMW Group Investor Presentation September 2009 BMW Group Financial Services. Page 45 Residual value development in the USA. BMW brand vs. all luxury brands BMW brand All luxury brands Source: Manheim Used Vehicle Value Index, mix and mileage adjusted
    • BMW Group Financial Services. BMW Group Investor Presentation September 2009 Development of CPO retail in the USA. Page 46 120 in 1,000 units 104.5 100 89.8 80.4 80 73.2 71.1 65.7 60.6 60 44.7 40 39.9 28.3 20 16.8 0 6.1 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 47 Core elements of our corporate strategy. Strategic Realignment Premium Brand Strategy: Process management: Focus on premium Flexibility in production segments in the automobile and Component exchange motorcycle market Networking Sustainability & Efficient Dynamics Financial Strategy
    • BMW Group Investor Presentation September 2009 BMW Group Global Production Network. Page 48 Automobile production by plant in 2008. 1 Joint venture in 1,000 units 2 Contract production Regensburg, Germany 274.0 Leipzig, Germany 150.0 Production of BMW 1, 3 Series, Z4 Production of BMW 1, 3 Series Dingolfing, Germany 241.3 Rosslyn, South Africa 48.0 Production of BMW 5, 6, 7 Series Production of BMW 3 Series Oxford, UK 235.0 Goodwood, UK 1.4 Production of MINI Production of Rolls-Royce Munich, Germany 202.9 Shenyang1, China 33.7 Production of BMW 3 Series Production of BMW 3, 5 Series Spartanburg, USA Steyr2, Austria Production of BMW X5, X6 170.7 Contract Production of BMW X3 82.9
    • BMW Group Investor Presentation September 2009 BMW Group Global Production Network. Page 49 Adjustment of production volume. Q-on-Q development of production and retail sales. Q3-08 Q4-08 Q1-09 Q2-09 (vs. Q3-07) (vs. Q4-07) (vs. Q1-08) (vs. Q2-08) Q1-08 Q2-08 (vs. Q1-07) (vs. Q2-07)
    • BMW Group Global Production Network. BMW Group Investor Presentation September 2009 Page 50 Work time accounts for high volume flexibility. Volume [units p.a.] +300 hours Market demand Work time account flexibility -300 hours 0
    • BMW Group Investor Presentation September 2009 BMW Group Global Production Network. Page 51 Continuous growth. - Product design suitable - Strict economic steering of for production processes product and production projects - Specific investments only for sustainable capacity - Permanent benchmarking increases (e.g. Oxford plant) process with competitors Development of cost productivity Old target until 2006: Improvement of 5% p.a. New target: Improvement of 7-8% p.a. Change in performance Cost productivity = (in %) Change in costs (incl. depreciation)
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 52 Core elements of our corporate strategy. Strategic Realignment Premium Brand Strategy: Process management: Focus on premium Flexibility in production segments in the automobile and Component exchange motorcycle market Networking Sustainability & Efficient Dynamics Financial Strategy
    • BMW Group Investor Presentation September 2009 The BMW Group’s understanding. Page 53 Anchoring of the topic in the BMW Group. Executive Board Resolution in 2000: „The BMW Group will continue to pursue sustainable development as principle of corporate strategy.“ „Sustainability throughout the value added chain is inseparable from our corporate self-image. That is why we choose to take responsibility. Because of our convictions, but also our self-interest, now and in the future.“ Dr. Norbert Reithofer, Chairman of the Board of Management of the BMW AG, in the Sustainable Value Report 2007/2008 Strategy Number ONE (09/2007). BMW Group assumes responsibility: For its products Clean Mobility: zero-emissions driving As an industrial Responsible use of natural resources enterprise As an active Corporate Citizenship activities corporate citizen Within the company Basic principles
    • BMW Group Investor Presentation September 2009 The BMW Group’s understanding. Page 54 Commitments and guidelines. The BMW Group’s understanding of Corporate Sustainability: - For us, corporate sustainability means making a lasting, positive contribution to the economic success of the company. This is the basis for exercising ecological and social responsibility. - For us, an awareness of our social responsibilities is inseparable from our corporate self-image. The BMW Group complies with: - The Global Compact and its ten principles - The Cleaner Production Declaration of the UN Environmental Programme (UNEP) In addition, the BMW Group is guided by: - The agreements of the International Labour Organisation (ILO) - The OECD guidelines for multinational companies - The Business Charter for Sustainable Development of the International Chamber of Commerce (ICC)
    • Sustainability actions of the BMW Group are BMW Group Investor Presentation September 2009 honored externally. Page 55 BMW Group is the industry leader. Sustainability oriented ratings and financial indices are growing in number and importance. The BMW Group is among the top companies represented in these sustainability indices: - Dow Jones Sustainability Indexes/Dow Jones STOXX Sustainability Indexes: Business Leader since 2005. The BMW Group is the only automotive company continuously listed since the establishment of this most important sustainability index in 1999. - Listed in FTSE4Good/FTSE4Good Environmental Index - Listed in Merrill Lynch ML Carbon Leaders Europe Index - 3rd Place in "DAX 30 Nachhaltigkeitsrating" by Scoris in 2007 - Oekom: Corporate Responsibility Rating Oekom 2006 Status Prime - ÖKO-Trend certificate for outstanding corporate responsibility (most points in the automotive industry)
    • BMW EfficientDynamics. BMW Group Investor Presentation September 2009 Page 56 The vision of the BMW Group. hydrogen / electric future tomorrow – Further ICE improvements – Active Hybrid – Clean Diesel – Predictive energy management – Thermoelectric generator today – ICE Improvements – Brake Energy Regeneration – Active Aerodynamics – Electric steering – Electric water pump 2008 > 2020
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 57 Efficiency increases powertrain. 4 valve, BMW BMW High Energy Mgmnt. BMW BMW Bi-Vanos VALVETRONIC Precision Injection Hybrid Vehicles CleanEnergy Intelligent management of energy flows - 12 % - 20 % -3 to - 15 % 100 % CO2 free
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 58 Tailor-made energy management packages. Energy management: ICE improvements: Electric water pump High Precision Injection / Electric steering Common Rail high pressure fuel injection Decoupled A/C compressor Pressure controlled fuel pump Brake Energy Regeneration Auto Start Stop function Gear shift display Power Steering Driving Resistance: Aerodynamics Cooling air flap system Brake air flap system Tyres with reduced rolling resistance Light weight contruction
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 59 Exceeding even today‘s hybrid concepts... 14 Hybrid #2 BMW Hybrid 13 EU test cycle Fuel consumption [ltr/100 km] 12 Customer BMW X3 3.0 sd driving profile* 11 10 9 8 7 BMW X3 3.0 d 6 BMW 120d Hybrid #1 BMW 118d 5 MINI Cooper D 4 5.5 6.5 7.5 8.5 9.5 10.5 11.5 Acceleration 0-100 km/h [s] * = measured by at least one German motoring magazine
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 60 The product portfolio. Customer-oriented, sustainable strategy. BMW EfficientDynamics measures applied: Some restrictions may apply, depending on individual car 1 Series 3 Series 5 Series 6 Series 7 Series X3 X5 X6 Z4 MINI configuration High Precision Injection in lean-burn mode High Precision Injection 1.) with Twin Turbo Technology VALVETRONIC Technology 2.) Variable Twin Turbo Diesel Technology 3rd Generation Piezo Common Rail Diesel Technology Brake Energy Regeneration Auto Start-Stop Function Active Aerodynamics Tires with low Rolling Friction Electric Waterpump Electric Steering Shifting point indicator 1.) Direct injection with Twin Scroll Turbo 2.) System comparable to VALVETRONIC
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 61 MY 2010: The BMW Group 140 g fleet… 32 BMW Group models have a maximum of 140 g CO2/km. Fuel consumption according to new EU test cycle in l/100km. CO2 emissions in g/km.
    • BMW EfficientDynamics. BMW Group Investor Presentation September 2009 ACEA voluntary commitment exceeded. Page 62 240 220 BMW Group, 1995 - 2008: > - 25% 200 180 160 156 140 ACEA, 1995 - 2008: approx. -16% EU fleet emissions (g CO2/km) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 BMW Group ACEA Competitors
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 63 A competitive advantage not only at the fuel pump… 14 of the 27 EU member countries already have a CO2-based registration or annual tax in place. EU-Countries with a CO2 based registration or annual tax CO2 based annual tax was introduced in Germany at July 1st, 2009
    • BMW EfficientDynamics. BMW Group Investor Presentation September 2009 CO2 emissions of new cars registered in Page 64 Germany in 2008. Source: Federal Motor Transport Authority (KBA)
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 65 BMW 7 series Active Hybrid. (1) High efficient BMW V8 gasoline engine (330kW / 650Nm) with High Precision Injection and TwinPower Turbo. (2) Electric motor (15kW / 210Nm). (3) 8-speed automatic transmission. (4) High voltage electronics (120Volts). (5) Lithium-Ion battery (120Volts / 800Wh).
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 66 BMW X6 Active Hybrid. (1) High efficient BMW V8 gasoline engine (300kW / 600Nm) with High Precision Injection and TwinPower Turbo. (2) Two-mode ActiveHybrid transmission (2 electric motors max. 67kW / 780Nm each, planetary gearbox, power split, 7 speeds). (3) High Voltage Electronics (max. 425Volts). (4) High performance Ni-MH battery (312Volts / 2.4kWh).
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics. Page 67 BMW Group prepares for technical field trials with electric vehicles. Number of units: In total 550 units will be offered in LA, the greater NYC region, Munich, Berlin and London Power: 150kw Range: up to 240km or 150 miles Basis: MINI hatch Start: December 2008 Lease terms: 850 USD per month, contract ends after 12 month Target: to gain detailed knowledge of how mobility can be achieved efficiently using pure electrically powered vehicles
    • BMW Group Investor Presentation September 2009 BMW Efficient Dynamics. Page 68 Next steps (examples). New turbocharged ICE generations Thermoelectric Generator Solar roof Predictive Energy Management
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics – Next Steps. Page 69 Thermoelectric Generator. Technology transfer from deep space Heat Source exploration to the automotive (Exhaust) industry. Electrode Thermo- Direct conversion of thermal into electric electrical energy. Material p n Up to 5% lower fuel consumption. Heat Sink Ready for series production in (Coolant) ~ 5 years. U Application: Power Generation for Deep Space Exploration
    • BMW Group Investor Presentation September 2009 BMW EfficientDynamics – Next Steps. Page 70 Predictive Energy Management. Brake Energy Predictive Energy Regeneration ACC Management Merging all Heat- Navigation management available sensor Auto Start Camera information Stop Function Light/Rain Sensor Prediction of Green Routing / upcoming Driver assistence situations PDC Aerodynamics Optimized DSC vehicle conditioning Air conditioning DME … …
    • BMW Group Investor Presentation September 2009 BMW Group Strategy. Page 71 Core elements of our corporate strategy. Strategic Realignment Premium Brand Strategy: Process management: Focus on premium Flexibility in production segments in the automobile and Component exchange motorcycle market Networking Sustainability & Efficient Dynamics Financial Strategy
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Value orientation. Page 72 Automobiles: Motorcycles: Financial Services: Return on Capital Return on Capital Return on Equity Employed Employed Vehicle projects: Vehicle projects: Finance & lease Model return based Model return based portfolio: on DCF on DCF Cash flows
    • BMW Group Financial Strategy. BMW Group Investor Presentation September 2009 Effects on Automobiles segment earnings. Page 73 EUR million Currency 3.450 Raw – 387 materials Depreci- ation & Efficiency amorti- Volume/ enhance- Personnel – 196 zation mix/ ments reduction – 16 market Other -452 changes Risk provi- – 153 -1.446 sions 690 -911 + 801 2007 Profit before financial result (EBIT) 2008 6.4% EBIT margin 1.4%
    • BMW Group Financial Strategy. BMW Group Investor Presentation September 2009 Net interest-bearing assets Automobiles Page 74 segment. 31.12.2008 in € Mil. +4,684 -4,769 + 3,501 + 5,073 + 557 Internal net Financial financial liabilities Marketable Internal net Receivables from 9,046 financial securities Receivables from Other Entities Financial Services Segment Cash and cash Segment Net interest- equivalents bearing assets 30.06.2009 in € Mil. +2,192 -3,997 + 4,198 Internal net + 7,086 + 562 financial Financial Marketable Internal net Receivables from liabilities securities financial Other Entities 10,041 Receivables from Segment Financial Services Segment Cash and cash Net interest- equivalents bearing assets
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Page 75 Operating cash flow and free cash flow. 7,000 6,340 6,246 in million Euro 6,157 6,184 6,000 5,373 4,970 5,000 4,471 3,717 4,000 3,000 2,291 2,042 2,147 2,000 956 1,000 124 0 -81 Industrial Operations sub-group Automotive Segment -1,000 2003 2004 2005 2006 2007 2007 2008 Cash inflow from operating activities Free cash flow
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Page 76 Capital expenditure. 6,000 12.0% EUR million 9.8% 5,000 10.0% 3,993 4,313 4,347 8.8% 4,267 8.6% 7.6% 4,204 1,121 7.9% 1,536 1,333 4,000 1,224 8.0% 1,396 3,000 3,226 6.0% 2,934 2,865 2,777 2,597 2,000 4.0% 1,000 2.0% 0 0.0% 2004 2005 2006 2007 2008 Capitalized development costs Capital expenditure in property, plant equipment and intangible assets Capital expenditure ratio
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Page 77 Research & Development costs. 8% 47.9% 50% 44.8% 42.4% 42.8% 45% 7% 39.8% 6.7% 6.5% 6.4% 40% 6% 35% 5.6% 5.3% 5.3% 5.4% 5.3% 5.2% 5.2% 30% 5% 25% 4% 20% 3% 15% 10% 2% 5% 1% 0% 2004 2005 2006 2007 2008 R&D Costs (IFRS) / Revenues in % R&D Costs (HGB )/ Revenues in % Capitalisation Ratio in million Euro 2004 2005 2006 2007 2008 Research & Development Costs (IFRS) 2,334 2,464 2,544 2,920 2,825 Research & Development Costs (HGB) 2,818 3,115 3,208 3,144 2,864
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Page 78 Spot & equilibrium rate euro / US dollar. 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 Jan 00 Jul 00 Jan 01 Jul 01 Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Spot rate Equilibrium rate
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Page 79 Spot & equilibrium rate euro / GB pound. 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 Jan 00Jul 00 Jan 01Jul 01 Jan 02Jul 02 Jan 03Jul 03 Jan 04 Jul 04 Jan 05Jul 05 Jan 06Jul 06 Jan 07Jul 07 Jan 08Jul 08 Jan 09Jul 09 Spot rate Equilibrium rate
    • BMW Group Investor Presentation September 2009 BMW Group Financial Strategy. Page 80 Spot & equilibrium rate euro / JP yen. 170 160 150 140 130 120 110 100 90 Jan 00 Jul 00 Jan 01 Jul 01 Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Spot rate Equilibrium rate
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 81 Global funding objectives. Financial Ensure sustainable access to international financial markets. Explore and maintain presence and competence in all strategic Flexibility important capital markets worldwide. Financial Ensure independence from individual lenders, banks and financial Instruments. Independence Diversification of funding sources, investors and products. Value Create value by optimizing financing costs on overall Group basis. Credit spread management for each financial instrument. Orientation Ensure long-term, strategic perspective (instrument mix). The different objectives are interdependent and of equal importance.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 82 Corporate finance capabilities. Categories of available instruments over the spectrum of maturities: <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ CP (EMTN) PPs Bonds ABCP ABS - Term Retail Institutional Customer Deposits / Brokered CDs Bank Loans CP (EMTN) Private Placements Retail Institutional Attractive and Attractive funding source. Diversification of investor Highest liquidity and depth of the flexible short- base. market, i.e. highest funding Effective management of spreads term funding. potential. provides support for the short end Limited potential of Deposits: of the BMW Credit Curve. opportunistic access. Typical for Benchmark bonds. Diversification ABS Creation of a BMW Credit Spread of funding Curve. ABS supports investor instruments diversification. and investors Bank Loans Local source of funding, mainly where access to capital markets is limited.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 83 Issuing programs. EUR 30bn EMTN-Program BMW AG BMW US Capital, LLC BMW Finance N.V. BMW Australia Finance Limited BMW (UK) Capital plc BMW Japan Finance Corp. EUR 5bn ECP-Program EUR 2bn FCP-Program BMW AG BMW Finance N.V. BMW Finance N.V. BMW Coordination Center V.O.F. BMW (UK) Capital plc USD 7bn USCP-Program BMW Malta Finance Ltd BMW US Capital, LLC EMTN Program as main mid- to long-term refinancing program. Three Commercial Paper Programs to cover short-term liquidity needs.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 84 Broad investor base. Offshore US USD (EMTN) PPs Euro Capital Markets EUR Commercial Paper USA French Commercial Paper Great Britain USD Extendible Notes EUR (EMTN) PPs USD Commercial Paper GBP Commercial Paper EUR Benchmark Bonds USD US PP GBP (EMTN) PPs EUR Retail Bonds USD ABS GBP Bonds USD Eurodollar GBP ABS AUD Euroaussie Canada JPY Euroyen CAD ABS EUR ABS Japan CAD (EMTN) PPs JPY (EMTN) PPs Mexico JPY Insurance PPs Switzerland MXN (EMTN) PP CHF (EMTN) PPs Singapore CHF Bonds SGD (EMTN) PP Australia South Africa AUD (EMTM) PP ZAR ABS AUD ABS Funding is done worldwide to optimize refinancing costs and to establish a broad investor base.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 85 Development of BMW Group liquidity. EUR billion 11.9 10.1 8.2 5.4 4.8 4.9 The BMW Group was able to substantially increase its liquidity position during the course of 2008 and in H1 2009.
    • BMW Group Treasury. BMW Group Investor Presentation September 2009 Development of BMW 5-year CDS. Page 86 bps Source: Reuters Credit Views
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 87 Bonds, private placements and Schuldscheindarlehen maturities. 7,000 EUR million 6,000 5,000 4,000 3,000 Issuance ytd 2,000 1,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Maturities based on nominal values excluding derivatives. Issuance as of August 31, 2009, covers all maturities from bonds, PPs and SSD in 2009. Excess amounts are used among other things to reduce financial liabilities from other instruments (such as bank lines).
    • BMW Group Investor Presentation September 2009 BMW Group Capital Market Financing. Page 88 BMW Group CP outstandings. 9,000 USD million 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q3 08 Q4 08 Q1 09 Q4 06 Q2 07 Q3 07 Q2 06 Q3 06 Q1 07 Q4 07 Q2 08 Q2 05 Q3 05 Q4 05 Q1 06 Q1 08 Q2 09 Total in USD Backup Line
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 89 ABS Volumes 1997- 2009 ytd. 4,000 12 Volume in EUR million # of deals 3,500 10 3,000 8 2,500 2,000 6 1,500 4 1,000 2 500 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 USA GB Japan Australia South Africa Germany Canada # Deals BMW Group has actively used asset-backed funding over the last 12 years.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 90 Regional Focus of ABS activities. USA: Europe: – BMW Group is an established participant in – BMW Group executed its first public ABS the US ABS market transaction in Europe in 2007 (€800m – Over USD 20bn of loan, lease and German lease ABS) wholesale assets securitized over the last – Besides, ABCP funding is used in the UK 10 years and Germany. – ABCP and ABS term financing used – BMW Group aims to establish itself as a regular and respected player in the European ABS market. RoW: – BMW Group uses ABS funding very actively in Australia, Canada, Japan and South Africa – Mainly used as local and “opportunistic” funding alternative US and Europe are strategic ABS Markets for the BMW Group.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 91 Financial debt as of June 30, 2009. EUR 60.7bn*. Others Debt Maturity 2% Bank Loans ≤1 year Bonds / 12% PP / Schuldschein- BrokeredCDs darlehen 8% 44% 12% Customer 45% 55% Deposits 7% 15% Commercial Paper ABS > 1 year *Adjusted, excluding currency and interest rate derivatives. BMW Group maintained a well-diversified debt structure even in difficult markets. The average maturity of financial liabilities is approximately 2 years.
    • BMW Group Investor Presentation September 2009 BMW Group Treasury. Page 92 Recent funding activity. Lease TALF Deal, USD 2bn, settlement 9 June 2009 ABS Loan Conduit Deal, JPY 25bn, settlement 4 May 2009 Loan Conduit Deal, AUD 350mn, settlement 7 July 2009 EUR benchmark bond EUR 1.5bn, maturity 3.5 years, settlement 23 Jan. 2009 EUR benchmark bond EUR 500mn, maturity 5 years, settlement 13 Feb. 2009 Bonds (tap of EUR 750mn benchmark, settlement 19 Nov. 2008) EUR benchmark bond EUR 1.25bn, maturity 3 years, settlement 2 March 2009 Eurodollar USD 400mn, maturity 2.5 years, settlement 22 June 2009 Over EUR 3.0bn 2009 ytd. Private Constant issuance in different currencies Placements (EUR, JPY, SEK, USD) Certificate of EUR 2bn, private transaction, maturity 2 years, Indebtedness settlement 15 Dec. 2008 (Schuldschein) EUR 145mn 2009 ytd. Commercial Up to USD 8bn Paper USD 6.2bn outstanding as of August 31, 2009