Statement by Dr Nicolas Peter, Member of a Board of Management of BMW AG, Finance, Conference Call Interim Report to 31 Mar 2018

Posted on 04. May, 2018 by in BMW Canada

Ladies and Gentlemen,


Good morning.


The BMW Group achieved good in a initial entertain – fulfilling all
a expectations. Our certain handling opening shows: our
plan is generating clever results.


Group gain again reached a same high turn as final year. The
EBIT domain in a Automotive Segment rose to 9.7%, notwithstanding higher
RD costs. We are good positioned in a aim mezzanine of 8-10%.
Segment EBIT is on customary with a prior year, notwithstanding high upfront
investments and headwinds from banking and commodity prices. We
already announced during a Annual Press Conference that a RD
spending for this year will strech a new record high.


We are investing in destiny projects and expanding a innovation
leadership. RD costs increasing by over 100 million euros in the
initial quarter. As planned, we were means to partially equivalent this
additional output with inner potency improvements. However,
as already announced in March, we will see a poignant boost in
costs in a second half of a year.


This is due to a vast series of car launches and continued
upfront investments in destiny technologies. The disastrous impact of
banking and commodity prices dampened earnings. For a full year, we
design a headwind in a midst to high three-digit million-euro-range,
due to several mercantile and domestic conditions. As partial of the
transition to a new IFRS 15 accounting standard, certain comparative
sum from a prior year had to be adjusted. You will find more
sum on this in a stream Quarterly Report.


First, let’s take a closer demeanour during a Group figures.


First-quarter revenues decreased to 22.69 billion euros. Adjusted for
disastrous banking effects, they were approximately on customary with the
prior year. Group gain before taxation totalled 3.17 billion euros –
that is on customary with a high turn of a prior year. The EBT
domain was 13.9%. The aloft financial outcome reflects a positive
gain grant of a Chinese corner try and valuation
effects from a merger of DriveNow, among other factors. In line
with this clever business performance, Group net distinction rose slightly
to 2.30 billion euros.


Ladies and Gentlemen,


We are strengthening a product portfolio this year: This includes
renewing and expanding a X family, as good as a product offensive
in a oppulance segment. When it comes to destiny technologies, we are
also competing in a Champions League: Our newly-opened Autonomous
Driving Campus and a Battery Cell Competence Centre underline this
commitment. Flexibility is an essential member of this. It is what
creates us clever and competitive. As partial of a stability strategic
development, we invested roughly 130 million euros some-more in a first
entertain than in a same duration of 2017 – a sum investment of around
734 million euros.


As a result, a capex ratio rose to 3.2%. For a full year, we
design a ratio of adult to 5%. We will therefore continue to sojourn in
a long-term aim corridor. As announced, RD output also
remained during a high turn and totalled 1.27 billion euros for a year
to a finish of March. Due to high upfront investments in new products
and technologies, we design this figure to strech around 7 billion
euros over a march of a year. The RD ratio now stands
during 5.6%. The figure for a full year 2018 will be between 6.5 and 7%.


Let’s take a demeanour during a Automotive Segment.


In a initial entertain of 2018, tellurian sales achieved well, increasing
by 3.0%.

The clever euro meant that shred revenues were rather reduce than
a prior year. Adjusted for banking effects, revenues were up
1.5%. The shred EBIT of 1.88 billion euros was on customary with the
prior year – notwithstanding aloft RD costs and headwinds from
banking and commodity prices. This was equivalent rather by positive
effects from volume/mix/market and potency improvements. The
financial outcome once again contributed to certain pre-tax earnings.
Our Chinese corner venture, BBA, increasing a gain grant to
240 million euros. Sales climbed 20% in a year to a finish of March.
The X1 and a new 5 Series in sold are rarely popular.


The gratefulness outcome from a merger of DriveNow also had a
certain impact. This was equivalent by a likewise high positive
gratefulness outcome from a prior year in tie with new
investors appropriation a interest in a mapping use HERE. Pre-tax
gain amounted to 2.28 billion euros.


Ladies and Gentlemen,


These sum underline that a core business is built on a very
plain foundation. At a finish of a initial quarter, notwithstanding a planned
significantly aloft accumulation of operative capital, giveaway money flow
stood during 302 million euros. For a full year, we continue to aim a
giveaway cashflow of some-more than 3 billion euros.


In a Financial Services Segment, a sum portfolio of customer
financing contracts reached roughly 5 million. In a initial quarter,
47.3% of all BMW Group new vehicles were leased or financed by the
Financial Services Segment. Almost 452,000 new contracts were
resolved with sell customers. The segment’s risk conditions remained
stable. Overall, used-car prices are trending downward rather in
general markets, as expected. We place a clever importance on
active risk management. We weigh a portfolio on a regular
basis, so that we can make adequate supplies for a business risks
during all times.


Let’s pierce on to a Motorcycles Segment.


Almost 36,000 motorcycles were delivered to business in a first
3 months of 2018. Revenues were 15.5% reduce than a previous
year, during 524 million euros. Due to a ramp-up of new models,
including a impact of several indication changeovers, sum production
declined in a initial quarter. Consequently, sales to a retail
organization – that form a basement for income approval –
decreased. Currency effects also had a disastrous impact.

As a result, a Segment’s handling gain for a initial quarter
were reduce than a prior year. The EBIT domain was 14.7%.


Now to a opinion for a full year.


As prolonged as domestic and mercantile conditions do not deteriorate
significantly, we design certain business growth in 2018. We are
targeting Group gain before taxation during slightest on customary with a high
turn of a prior year. In late March, BMW AG and Daimler AG
sealed an agreement to mix their mobility services.


If authorized by a germane authorities in a march of this year,
a arrangement of a corner try will trigger a one-time valuation
and gain outcome in a BMW AG’s organisation financial matter and thus
lead to an composition of a company’s guidance. Under these
circumstances, pre-tax gain on Group turn would boost slightly
in 2018 compared with a prior year.


In a Automotive Segment, we design a slight boost in
deliveries and revenues for 2018. Despite high upfront investments, we
still aim to keep a EBIT domain between 8 and 10%. We now design a
slight boost in deliveries in a Motorcycles Segment in 2018. Our
aim for a EBIT domain stays unvaried during between 8 and 10%. In
a Financial Services Segment, we design lapse on equity to exceed
a new aim figure of 14%.


Ladies and Gentlemen,


The BMW Group is on march to accommodate a superintendence for a full year. In
2018, we will continue to make critical vital decisions. And, as
we know: Whatever we start is good suspicion through, and we implement
it sustainably. In such a flighty environment, a core business
delivers a top turn of opening from one entertain to the
next. This gives us a leisure we need to continue investing in a future.


Thank you.



Consumption and Emission Data.



Fuel expenditure in l/100 km (combined): 6.5-4.6

CO2 emissions in g/km (combined): 149-120


The fuel consumption, CO2 emissions, energy expenditure and operating
operation sum were dynamic according to a European Regulation
(EC) 715/2007 in a chronicle applicable. The sum impute to a
car with simple pattern in Germany and a operation shown
considers a opposite sizes of a comparison wheels/tyres and the
comparison apparatus of discretionary equipment.


Further information on central fuel expenditure sum and specific
CO2 glimmer values of new newcomer cars is enclosed in a following
guideline: ‘Leitfaden über basement Kraftstoffverbrauch, die CO2-Emissionen
und basement Stromverbrauch neuer Personenkraftwagen’ (Guideline for fuel
consumption, CO2 emissions and electric energy expenditure of new
newcomer cars), that can be performed giveaway of assign from all
dealerships and during



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