- Product offensive: BMW Group to launch 40 new or revised models by
end of 2018 - Luxury segment: sales volume to grow significantly by 2020
- More electric mobility: focus on flexibility
- Targets for 2017: Slight rise in Group profit before tax,
automotive segment sales volume and revenues - 2016: Best-ever revenues and earnings figures
- Krüger: “Clear focus on the needs of our customers”
Munich. After reporting best-ever revenues and
earnings figures for the seventh year in succession, the BMW Group
intends to continue its course of sustainable and profitable growth,
while also expanding its role as innovation leader. The company’s core
business will be strengthened by the targeted addition of new models
and continued work on the strategic areas of electric mobility and
automated driving.
“Once again, we are targeting record sales volume, revenues and
earnings in 2017,” stated Harald Krüger, Chairman of
the Board of Management of BMW AG in Munich on Tuesday. The BMW Group
forecasts a slight increase in Automotive segment deliveries to
customers in the current financial year, which would result in a
corresponding growth in segment revenues. Group profit before taxes is
also expected to improve slightly.
“Leadership in innovation and sustainable profitability are the keys
to our success. That’s why, we are fully focused on meeting the wishes
and needs of our customers, with the aim of igniting their enthusiasm
for mobility day after day with appealing products and services,”
Krüger commented.
With this in mind, the BMW Group will be rejuvenating its product
portfolio significantly in the coming years. “We intend to launch more
than 40 new and revised models of our three premium brands on the
market during 2017 and 2018. The new product offensive began
successfully with the launch of the new BMW 5 Series in February,
further raising the bar in the business sedan segment,” continued Krüger.
Particular emphasis will be placed on the top end of the premium
segment. By 2020, the BMW Group is targeting significant sales volume
growth in this area with the addition of a number of new models,
including the BMW X7, to complement the BMW 7 series.
“Sustainable profitability and innovation leadership go hand in hand.
Drawing on our underlying operational strength, we are therefore
aiming to achieve an EBIT margin of between 8 and 10 percent in the
Automotive segment for the eighth year in succession,” stated
Nicolas Peter, member of the Board of Management of
BMW AG responsible for Finance. “By maintaining operational
performance at a consistently high level, while at the same time
focusing on the areas that are becoming increasingly relevant for
customers, we will continue to generate sufficient resources to
finance the high upfront expenditure needed to shape tomorrow’s
mobility.” The BMW Group is in an extremely strong financial position,
with cash funds totalling € 13,167 million at 31 December 2016
(2015: € 11,383 million). Free cash flow generated by the Automotive
segment during the twelve-month period then ended amounted to
€ 5,792 million (2015: € 5,404 million).
Highly flexible architectures as basis for electric mobility
The BMW Group is clearly focused on pressing ahead with its
successful electrification strategy. During the next decade, highly
dynamic changes are set to take place in the area of electric
mobility. However, not all markets and segments will develop at the
same pace and the actual outcome depends on a host of factors,
including regulatory requirements, which are very difficult to
forecast today. Therefore, flexibility and
scalability within a strong portfolio of
electrified vehicles will ensure the success of the BMW Group. “A
successful electrification strategy must be capable of dealing with a
range of outcomes, including optimistic or more cautious scenarios. If
we manage that, we will be able to reconcile sustainable mobility with
sustainable profitability,” Nicolas Peter commented.
The BMW Group established itself at an early stage as a pioneer of
electric mobility when it embarked on project i back in 2007.
Alongside its work on the technological spearhead BMW i3, over the
past ten years the BMW Group has focused on designing flexible vehicle
architectures and developing suitable modules to house the electrified
drivetrain. “Thanks to this approach by mid-2017 – less than four
years after the launch of the BMW i3 – our range of products will
include eight plug-in hybrid models and we will deliver our 200,000th
electric vehicle in the course of the year,” Krüger said.
In the meantime, the BMW Group has entered the second decade of its
electrification strategy and is raising this exciting, sustainable
form of mobility to new levels. The strategy of pursuing project i
with its flagship technologies, while at the same time creating
flexible vehicle architectures to enable the seamless integration of
different drivetrain systems, will therefore be continued. In future,
in addition to plug-in hybrid technology all-electric,
battery-powered mobility will be incorporated in the BMW
Group’s brands, key model series and architectures, in a highly
flexible and scalable way. Work involved within the development of the
BMW iNEXT will lead to a new generation of electric
modules and drivetrain systems entering series production.
“The all-electric MINI and the all-electric BMW X3 will mark the
beginning of the second wave of electrification for the BMW Group,
benefitting from the ongoing technological progress we are making in
this area,” Krüger said. “Strategy NUMBER ONE
NEXT sets out our strategic course for further electrification and the
direction of project i over the coming decade. We will incorporate
all-electric, battery-powered mobility into our core brands, as we
have already done successfully with our plug-in hybrid vehicles. By
using highly flexible architectures we can avoid duplicate investments
in plant and equipment and will be able to adapt our range of electric
and conventional vehicles to changing demand both quickly and efficiently.”
Testing highly automated driving in Europe and USA
The BMW Group is also working on automated driving as part of its
focus on ACES (Autonomous,
Connected, Electrified and
Shared / Services). In co-operation
with Intel and Mobileye, the BMW Group has drawn up a timetable for
introducing highly automated driving with BMW iNEXT in 2021. The
relevant technologies will be tested in city centres, including
Munich, during the second half of the current year – manned at all
times, of course, by a trained test driver in the driver’s seat, ready
to take control at any time.
In 2017, the BMW Group will also be bundling its entire development
expertise in the fields of vehicle connectivity and automated driving
at a new campus located in Unterschleißheim near Munich. Ultimately,
the new site will be home to more than 2,000 employees working on the
next steps towards fully automated driving, ranging from software
development to road testing. “Opting for this campus strengthens the
role of Munich as a key location and underlines how the BMW Group and
the entire region can benefit from changes in the automobile
industry,” Krüger stated.
The BMW Group can already look back at an excellent track record with
ACES. For instance, the current BMW 7 Series and 5 Series are already
equipped with state-of-the-art driver assistance systems. With
ConnectedDrive, the BMW Group is a leader in digital offerings and has
already put some 8.5 million connected vehicles onto roads worldwide.
Since the launch of the BMW i3 at the end of 2013, more than 125,000
electrified vehicles have already been delivered to customers. With
DriveNow, the BMW Group is serving more than 800,000 customers in
eleven European cities and the new mobility service ReachNow has
successfully begun operations in the USA.
New sales volume, revenues and earnings records in 2016
The BMW Group achieved its guidance in 2016, reporting its best
ever figures to date for sales volume, revenues and earnings.
Automotive sales volume climbed by 5.3% to a new
record level of 2,367,603 units (2015: 2,247,485 units) in 2016.
With its three premium brands, BMW, MINI and Rolls-Royce, the BMW
Group remained the world’s leading manufacturer of premium vehicles.
Sales of electrified vehicles almost doubled to over 62,000 units in
2016. Sales of the all-electric BMW i3 have risen every year since
the model was launched in 2013 and the BMW Group aims to sell a
total of 100,000 electrified vehicles for the first time in a single
year in 2017.
Group revenues
rose to a new record level of € 94,163 million
(2015: € 92,175 million; +2.2%) in 2016, more than twice the figure
reported in 2005 (€ 46,656 million). Profit before financial
result (EBIT) amounted to € 9,386 million (2015: € 9,593
million), slightly down (-2.2%) on the previous year’s record
figure. Group profit before tax (EBT) increased by
4.8% to a new high level of € 9,665 million (2015: € 9,224 million).
All three operating segments – Automotive, Motorcycles and Financial
Services – achieved record pre-tax earnings in 2016, making an
all-round contribution to earnings growth. The pre-tax
return on sales (EBT margin) for the Group improved to
10.3% (2015: 10.0%). From the financial year 2017, the BMW Group has
introduced “return on sales” as an additional indicator
and is targeting a figure of at least 10%. Group net
profit rose by 8.0% year on year to € 6,910 million
(2015: € 6,396 million), also setting a new all-time Group record.
Dividend of €3.50 per share of common stock proposed
At the Annual General Meeting on 11 May 2017, the Board of
Management and the Supervisory Board will propose to shareholders
that the dividend be increased to a new high of € 3.50 (2015:
€ 3.20) per share of common stock and € 3.52 (2015: € 3.22) per
share of preferred stock. The distribution rate
will therefore rise to 33.3% (for 2015: 32.9%), well within the BMW
Group’s target range of between 30 and 40%. “The exemplary
commitment of our workforce and the unfailing trust placed in us by
our shareholders are the key drivers that run through the BMW
Group’s success story,” said Krüger. “For this
reason we are paying an associate bonus for our permanent staff in
Germany, the highest amount paid amongst our competitors.”
Automotive segment’s profitability within target range
Automotive segment revenues edged up by 1.0% to
€ 86,424 million (2015: € 85,536 million) on the back of good sales
volume figures. Without the dampening impact of currency factors,
revenues would have increased by 3.1%. EBIT
amounted to € 7,695 million (2015: € 7,836 million; -1.8%). The
EBIT margin came in at 8.9% (2015: 9.2%), thus
finishing within the target range of between 8 and 10% or higher for
the seventh financial year in succession. Segment profit
before tax improved by 5.2% to a new record high level of
€ 7,916 million (2015: € 7,523 million).
In 2016, more than two million BMW brand vehicles
were sold for the first time within a single year. Deliveries to
customers were up 5.2% at 2,003,359 units (2015: 1,905,234 units). A
significant proportion of sales volume growth was attributable to
the brand’s flagship BMW 7 Series and to the BMW X models, the
former posting growth of 69.2% to 61,514 units and the latter
accounting for one in three of all BMW vehicles sold in 2016. A
total of 644,992 BMW X vehicles was sold during the 12-month
reporting period, 22.3% more than one year earlier. The BMW 2 Series
also helped drive brand growth (196,183 units; +24.8%). Launched in
February 2017, the new BMW 5 Series is expected to make a
significant contribution to sales volume growth during the current year.
2016 was the first full year for the MINI since
the brand’s new strategy was adopted. With 360,233 (2015: 338,466)
units sold and year-on-year growth of 6.4%, the MINI recorded the
best sales volume figures in its history, with the MINI Clubman and
the new MINI Convertible proving to be the biggest growth drivers.
Rolls-Royce Motor Cars recorded the second-best sales
performance in the brand’s 113-year history. The Goodwood-based luxury
car manufacturer sold 4,011 (2015: 3,785) vehicles, 6.0% up on the
previous year, despite challenging market conditions. The performance
includes an all-time high sales figure for the fourth quarter (1,386
units; +17.4%). A large number of these sales related to the new
Rolls-Royce Dawn, of which 1,283 units were sold worldwide after its
launch in summer 2016. The seventh generation of the Phantom
re-affirmed its position at the very “pinnacle of luxury” – even in
its final year of production, the Rolls-Royce flagship underlined the
undisputed qualities of this model as the basis for its successor.
In 2016, the BMW Group surpassed the one-million mark for sales
of BMW, MINI and Rolls-Royce brand vehicles in
Europe for the second year in succession (1,092,155
units: +9.2%). Sales figures for Germany were up 4.5% year-on-year
to 298,928 units (2015: 286,098 units). Business in Great Britain
also developed very positively, with sales rising to a total of
252,205 units
(2015: 230,982 units; +9.2%).
The pace of growth in Asia continued to gather
speed in 2016. Overall, sales of the Group’s three brands totaled
747,291 units (2015: 685,792 units; +9.0%), including 516,785 units
(+11.4%) sold in China, the region’s largest market (2015: 464,086 units).
Within a highly competitive market environment, sales of BMW,
MINI and Rolls-Royce brand vehicles in the America
region decreased to 460,398 units year-on-year (2015: 495,897 units;
-7.2%), including 366,493 units sold in the USA (2015: 405,715
units; -9.7%).
Motorcycles segment revenues exceed two-million threshold for
the first time
2016 was also a record-breaking year for the Motorcycles
segment. The number of motorcycles and maxi-scooters
delivered to customers rose by 5.9% to 145,032 units (2015: 136,963
units) – the sixth sales-volume record in succession. BMW Motorrad’s
five largest markets were Germany, the USA, France, Italy and Spain.
As part of its new strategy, BMW Motorrad is in the process of
expanding its model range, having set a sales volume target of
200,000 units for 2020.
Revenues
grew by 4.0% to € 2,069 million (2015: € 1,990 million),
surpassing the two-billion euro mark for the first time.
EBIT increased by 2.7% to reach € 187 million
(2015: € 182 million). As in the Automotive segment, the BMW Group
is also targeting an EBIT margin within a range of
8 to 10% in the Motorcycles segment from 2017 onwards. The margin
achieved in 2016 was 9.0%. Profit before tax grew to € 185 million
(2015: € 179 million; +3.4%).
Record earnings for the Financial Services segment
The Financial Services segment also continued to perform well in
2016. During the past year, 1,811,157 (2015: 1,655,961) new
contracts were concluded with retail customers, a
year-on-year increase of 9.4%. The portfolio of
lease and financing contracts grew by 8.4% to 5,114,906
(2015: 4,718,970) contracts, taking it past the five-million
threshold for the first time.
Segment revenues
grew by 8.2% to € 25,681 million (2015: € 23,739 million).
Profit before tax improved by 9.7% to € 2,166
million (2015: € 1,975 million), surpassing the two-billion euro
mark for the first time.
Increase in workforce and number of apprentices
The workforce grew by 2.0% in 2016. At the end
of the reporting period, 124,729 people were employed in the BMW
Group worldwide (2015: 122,244 people).
The slight year-on-year increase was driven by a number of
factors, including the need for additional qualified staff to work
on developing electric mobility as well as digitalisation and the
growth in financial services business. The systematic expansion of
mobility services also contributed to the increase in the workforce
size.
The BMW Group continues to place great emphasis on its trainee
activities. Overall, more than 4,600 young people worldwide were
employed in vocational training and training programmes for young
talent at 31 December 2016.
* * *
The BMW Group – an overview
2016
2015
Change in %
Sales volume
Automotive
Units
2,367,603
2,247,485
5.3
Thereof: BMW
Units
2,003,359
1,905,234
5.2
MINI
Units
360,233
338,466
6.4
Rolls-Royce
Units
4,011
3,785
6.0
Sales volume Motorcycles
Units
145,032
136,963
5.9
Workforce
1
124,729
122,244
2.0
EBIT margin Automotive
Segment
Percent
8.9
9.2
-0.3 %points
EBIT margin Segment Motorcycles
Percent
9.0
9.1
-0.1 %points
EBT margin BMW Group
Percent
10.3
10.0
+0.3 %points
Revenues
€
million
94,163
92,175
2.2
Thereof: Automotive
€ million
86,424
85,536
1.0
Motorcycles
€
million
2,069
1,990
4.0
Financial Services
€ million
25,681
23,739
8.2
Other Entities
€
million
6
7
-14.3
Eliminations
€
million
-20,017
-19,097
-4.8
Profit before financial result
(EBIT)
€ million
9,386
9,593
-2.2
Thereof: Automotive
€ million
7,695
7,836
-1.8
Motorcycles
€
million
187
182
2.7
Financial Services
€ million
2,184
1,981
10.2
Other Entities
€
million
-17
169
–
Eliminations
€
million
-663
-575
-15.3
Profit before tax (EBT)
€ million
9,665
9,224
4.8
Thereof: Automotive
€ million
7,916
7,523
5.2
Motorcycles
€
million
185
179
3.4
Financial Services
€ million
2,166
1,975
9.7
Other Entities
€
million
170
211
-19.4
Eliminations
€
million
-772
-664
-16.3
Income taxes
€
million
-2,755
-2,828
2.6
Net profit
€
million
6,910
6,396
8.0
Earnings per share
2
€
10.45/10.47
9.70/9.72
7.7/7.7
1 Figures exclude dormant employment contracts, employees
in the work and non-work phases of pre-retirement part-time working
arrangements and low wage earners
2 Earnings per share of common stock/preferred stock
For questions please contact:
Corporate Communications
Max-Morten Borgmann, Business and Finance Communications
Telephone: +49 89 382-24118, Fax: +49 89 382-24418
Max-Morten.Borgmann@bmwgroup.com
Glenn Schmidt, Head of Business and Finance Communications
Telephone: +49 89 382-24544, Telefax: +49 89 382-24418
Glenn.Schmidt@bmwgroup.com
Internet:
www.press.bmwgroup.com
e-mail:
presse@bmw.de
The BMW Group
With its three brands BMW, MINI and Rolls-Royce, the BMW Group is the
world’s leading premium manufacturer of automobiles and motorcycles
and also provides premium financial and mobility services. As a global
company, the BMW Group operates 31 production and assembly facilities
in 14 countries and has a global sales network in more than 140 countries.
In 2016, the BMW Group sold approximately 2.367 million cars and
145,000 motorcycles worldwide. The profit before tax was approximately
€ 9.67 billion on revenues amounting to € 94.16 billion. As of 31
December 2016, the BMW Group had a workforce of 124,729 employees.
The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.
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