2. 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
3. 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
4. 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.
5. 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!
6. 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
7. 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.
8. 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.
9. 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
10. 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
11. 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
12. 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.
13. 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
14. 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).
15. 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
16. 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
17. 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
18. BMW Group Automobiles.
BMW Group
Investor Presentation
September 2009
Priority on growth markets.
Page 18
Eastern Europe
USA Russia
India
China
19. 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
20. 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)
21. 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%
22. 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%)
23. 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
24. 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
25. 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
31. 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)
32. 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)
33. 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
34. 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
35. 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
36. 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
37. 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.
38. 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
39. 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
40. 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
41. 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
42. 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%
43. 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
44. 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”.
45. 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
46. 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
47. 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
48. 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
49. 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)
50. 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
51. 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)
52. 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
53. 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
54. 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)
55. 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)
56. 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
57. 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
58. 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
59. 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
60. 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
61. 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.
62. 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
63. 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
64. 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)
65. 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).
66. 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).
67. 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
68. 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
69. 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
70. 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
… …
71. 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
72. 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
73. 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%
74. 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
75. 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
76. 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
77. 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
78. 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
79. 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
80. 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
81. 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.
82. 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.
83. 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.
84. 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.
85. 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.
86. BMW Group Treasury.
BMW Group
Investor Presentation
September 2009
Development of BMW 5-year CDS.
Page 86
bps
Source: Reuters Credit Views
87. 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).
