Statement by Dr. Nicolas Peter, Member of a Board of Management of BMW AG, Finance, Conference Call Interim Report to 31 Mar 2017

Posted on 04. May, 2017 by in BMW Canada

Ladies and Gentlemen,

 

Good morning from me as well.

 

The BMW Group has begun a year with a clever initial quarter. And we
were means to build on a success of a 2016 financial year. In the
initial 3 months of a year, Group distinction before taxation increasing by
around a entertain to 3 billion euros. As communicated dual weeks ago,
this boost is especially due to certain gratefulness effects.

 

The EBIT domain in a Automotive Segment was during 9.0%. As we made
transparent during a Annual Accounts Press Conference: Our concentration is resolutely on
a future. This year, we will be investing in a further
foundation of a indication choice and new technologies. Sustainable
profitability within a core business is a basement for this. Let’s
start by holding a demeanour during a opening during Group level. In a first
entertain of 2017, Group revenues reached 23.45 billion euros and were
12.4% aloft than a prior year. Group pre-tax gain totalled
3.01 billion euros. This was partly due to certain effects from new
investors appropriation a interest in a mapping use HERE, as good as
gratefulness effects in a other financial result. The earnings
grant from a Chinese corner try BBA benefitted from its
clever marketplace position. Driven by a energetic sales performance, it
increasing by 87 million euros to a sum of 188 million euros. In the
initial entertain of 2016, a prolongation changeover for a BMW X1 had an
inauspicious outcome here. Thanks to a factors mentioned earlier, the
Group’s EBT domain stood during 12.8%. Group net distinction rose to 2.15
billion euros.

As formerly announced, this year we have launched a largest
product descent in a company’s history. The new 5 Series Sedan and
a new MINI Countryman came onto a marketplace during a initial quarter.
Preparations for serve new models are already underway. However, the
bulk of a costs is approaching to be reported over a rest of a year.
We invested a sum of 605 million euros in property, plant and
apparatus and other unsubstantial resources in a initial quarter. This
represents a comparatively low capex ratio of 2.6%, in line with seasonal
factors. For a full year, we design a ratio to be above last
year’s level, though next a aim of 5%. As forecast, investigate and
expansion output for a initial entertain increasing significantly
and reached a sum of 1.32 billion euros, 343 million euros some-more than
final year. Therefore, as expected, a RD ratio of 5.6% slightly
exceeded a aim operation of 5 to 5.5%. For a full year a ratio is
approaching to be somewhat above a aim corridor. Over a march of
a year, we are formulation serve estimable investments in our
product offensive, continued expansion of e-mobility and strategic
projects like unconstrained driving.

 

Ladies and Gentlemen,

 

let’s pierce on to a Automotive Segment. Deliveries of a three
brands rose by 5.3% in a initial quarter. In China, in particular,
expansion stays strong. This is due to a appealing new models and a
unchanging concentration on a needs of a Chinese customers. We have
serve stretched a charity with a extended wheel-base chronicle of
a BMW X1 and a recently launched 1 Series Sedan. The new
long-wheel bottom chronicle of a 5 Series Sedan will yield a further
boost mid-year. The certain trend in automotive sales also continued
in Europe. In a Americas, measures taken final year are now showing
results. The sales conditions has stabilised as expected. We have
blending a SUV-share to a high direct and privileged stocks. Going
forward, we will be gripping a transparent concentration on gain peculiarity in all
sales regions. The plain expansion in worldwide deliveries also drove
revenues to 20.69 billion euros, a 10.0% boost compared to the
prior year. The X models and a BMW 7 Series are especially
renouned with customers. We are also saying certain effects from the
launch of a new 5 Series. Segment EBIT rose by 6.1% to around 1.87
billion euros. The EBIT domain stood during 9.0%. The financial outcome in
a shred for a duration reached a sum of 408 million euros due to
a effects mentioned earlier. Pre-tax gain in a Automotive
Segment increasing by roughly a third to 2.28 billion euros. Automotive
giveaway money upsurge has grown definitely and stands during 1.6 billion
euros, especially reflecting a clever net distinction as good as sound
government of inventories. As forecast, giveaway money upsurge for a full
year is approaching to sum some-more than 3 billion euros.

 

Let’s continue with a Financial Services Segment. In a first
entertain of 2017, we resolved around 466,000 new financing and leasing
contracts with sell customers. This represents a significant
boost of 12.6% – especially from expansion in Chinese credit financing. At
a finish of March, BMW Financial Services managed a sum portfolio of
roughly 4.8 million patron contracts. 49.2% of new BMW Group vehicles
were financed or leased by Financial Services in a initial quarter.
Pre-tax gain for a shred reached 595 million euros – a 4.4%
boost year-on-year. The certain expansion of a risk situation
continued in a initial quarter. The net credit detriment ratio of 0.33%
stays broadly in line with final year’s low level. As expected, used
automobile prices worldwide – with a difference of Asia – decreased
slightly, driven by anniversary factors. We have done comprehensive
supplies to cover existent and intensity risks in a financial
services business and constantly guard a risk management
parameters. Of course, this also relates to a Diesel vehicles. From
today’s perspective, we are good stable opposite residual value and
credit risks.

 

Ladies and Gentlemen,

 

I would now like to speak about a Motorcycles Segment. Right on time
for a start of a new season, a stream product range, which
includes many new models, has been really good perceived by our
customers. In a initial 3 months of 2017, BMW Motorrad sole more
than 35,000 motorcycles – 5.5% some-more than final year’s record figure.
This Mar saw a entrance into a shred next 500 cc with a G 310
R. The long-distance enduro R 1200 GS has been entirely redesigned
and was also successfully launched in March. With a new R NineT Pure
and a R NineT Racer we have extended a renouned birthright family to
4 models. They will be assimilated by a fifth model, the
R NineT Urban G/S, from June. Segment revenues also rose in line with
deliveries, climbing 7.0% to 623 million euros. EBIT rose to 125
million euros, benefitting from aloft volumes and certain mix
effects. This was an boost of 33.0% over final year. Due to seasonal
factors, a first-quarter EBIT domain stood during 20.1%. This is an
boost of roughly 4 commission points over a same duration of final year.

 

Finally, we would like to come to a opinion for a company. Our
superintendence for a full year 2017 stays unchanged.

We still design to achieve

–          a slight boost in Group distinction before tax,

–          slight increases in deliveries and revenues in the
Automotive Segment,

–          a poignant boost in BMW Motorrad deliveries,

–          an EBIT domain within a aim operation of 8-10% in both
a Automotive and a Motorcycles Segment

–          and a slight diminution in lapse on equity in a Financial
Services Segment – nonetheless it will still sojourn above a targeted
smallest turn of 18%.

 

Our superintendence assumes there will be no poignant change in political
and mercantile conditions.

 

Ladies and Gentlemen,

 

The initial entertain of 2017 shows that a BMW Group is good on track.
All segments are on march to accommodate their targets for a full year.
And with new products, like a new 5 Series Touring, in a pipeline,
we design a clever opening of a core business to continue.
High upfront investments in areas such as electro-mobility and
unconstrained pushing will somewhat moderate a ceiling trend in earnings
over a entrance quarters, as forecast. we would like to emphasize that
essential expansion stays a focus. This plan has paid off over
a years. The BMW Group has been one of a world’s many profitable
automobile companies for years. At a same time, we essay to sojourn a
personality in new technologies and innovations, with a transparent concentration on
electro-mobility. We sojourn resolutely committed to posterior these goals
in a future.

 

Thank you.

Tags: ,

Comments are closed.