- Sales volume and revenues achieve new all-time high in 2016
- Group net profit up 8.0% to € 6.9 billion
- Pre-tax Group return on sales improves to 10.3%
- EBIT margin in the Automotive segment within or above target range
of 8-10% for seventh year in succession - Moody’s raises rating for BMW Group to A1
- Dividend of €3.50 per share of common stock proposed
- Krüger: a record year to start the NEXT 100 YEARS
Munich.
The BMW Group continued its successful course during its 101st
year, reporting its best ever figures to date for sales volume,
revenues and earnings. “2016 was the first step in the NEXT 100
YEARS of the BMW Group. We have turned our centenary year into the
most successful 12-month period in our corporate history and posted
new record levels in terms of revenues and earnings for the seventh
year in a row,” stated Harald Krüger, Chairman of
the Board of Management of BMW AG in Munich on Thursday. “We are
fully focused on implementing our Strategy NUMBER ONE NEXT,
guiding the BMW Group along the “ACES” route:
Automated, Connected,
Electrified and Shared.”
In the first year of Strategy NUMBER ONE NEXT, the BMW
Group announced its cooperation with Intel and Mobileye in the field
of highly and fully automated driving, launched the ReachNow
car-sharing service in the USA and set out the next steps in its
electrification strategy. “From 2019 onwards, we will be firmly
embedding all-electric, battery-powered mobility in our core brands.
The electric MINI and the electric BMW X3 will be visible proof of
how we are embracing innovations introduced with BMW i on a broader
scale,” commented Krüger. The BMW iNEXT, set for
launch in 2021, will be the BMW Group’s new technological spearhead.
“The iNEXT will embody the future of mobility, setting new standards
for automated driving, electric mobility, connectivity and design
alike,” Krüger continued. Moreover, the BMW Group
will launch further plug-in hybrid models powered by both electric
and combustion engines; the electrified BMW 5 Series and MINI
Countryman will be on the market in 2017.
New sales volume, revenues and earnings records in 2016
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
The BMW Group’s successful performance is also reflected in its
creditworthiness. The rating agency Moody’s, for instance, has
raised its long-term rating for the BMW Group to
A1, highlighting the company’s track record of robust operational
performance and repeated ability to launch innovative products.
Nicolas Peter, member of the Board of Management
of BMW AG, responsible for Finance, stated: “The BMW Group
demonstrated its operational strength in 2016 and now holds the
second-best rating of all automobile manufacturers worldwide. Our
excellent creditworthiness is also an expression of the trust the
BMW Group has earned itself over the years through stability and
continuity. Achieving our ambitious targets in 2016 is further
evidence of this ability. We are convinced that innovative strength
and high profitability go hand in hand. Our financial strength today
is the firm basis for future innovation and thus for our success
tomorrow. We remain committed to this strategy.”
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% 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 totalled
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.
BMW Group targets further sales volume growth in 2017
The upward trend in worldwide sales volume is
forecast to continue in 2017, powered by the BMW Group’s highly
attractive model range, which will be rejuvenated during the current
year with various new vehicles, including the new BMW 5 Series and
the MINI Countryman. “We are again targeting a new sales volume
record in 2017, with sales slightly up on the previous year,”
Krüger stated. However, the BMW Group expects the
global political and economic environment to remain volatile.
Supervisory Board
At the Annual General Meeting to be held on 11 May 2017, the
Supervisory Board will propose to the shareholders that Dr. Heinrich
Hiesinger, CEO of thyssenkrupp AG, be elected to the Supervisory
Board of BMW AG. In agreement with the Supervisory Board, Prof.
Henning Kagermann will not seek re-election as during 2017, he will
reach the age-limit for membership as specified in the Supervisory
Board’s composition objectives.
The Supervisory Board would like to thank Prof.
Kagermann for seven years of invaluable and trusted cooperation.
* * *
Further information on the Group Financial Statements 2016 and
the outlook for the current year will be available at the BMW
Group’s Annual Accounts Press Conference to be held in Munich on 21
March 2017.
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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