New highs forecast in sales volume, revenues and earnings
EBIT margin of 8 – 10% targeted for Automotive segment
Target: slight increases in sales volume and pre-tax profit
Munich. The BMW Group is set to continue its success
story in 2016. “We are targeting new highs for sales volume
and group profit before tax,” stated Harald
Krüger, Chairman of the Board of Management of BMW AG at the Annual
Accounts Press Conference in Munich on Wednesday. The BMW Group also
expects to remain the world’s leading premium manufacturer of vehicles
in 2016.
Group profit before tax is forecast to improve
slightly. The BMW Group benefits from its strong
brands, attractive product range and the expectation that
international automobile markets will continue their generally upward
trend. These favorable factors contrast with rising personnel
expenses, intense competition and high levels of upfront expenditure
for new technologies. The global political and economic environment is
also expected to remain volatile.
The Automotive segment is targeting a slight
sales volume increase in 2016. Alongside the positive
impetus expected from the new BMW 7 Series, the launches of the new
generations of BMW X1 and MINI Clubman models towards the end of 2015
are also expected to boost sales volume figures in 2016. Automotive
segment revenues are therefore expected to
increase slightly, in line with the rise in sales
volume. The target range for the EBIT margin between
8 and 10% remains unchanged for 2016.
The BMW Group expects the Motorcycles segment to
continue its upward trend in the current year. The new R NineT
Scrambler and G 310 R models unveiled at last autumn’s trade fairs
will broaden the product portfolio and attract new customer groups. A
slight year-on-year increase in sales
volume is forecast for the full year.
The Financial Services segment is likely to continue
performing well in 2016. Despite rising equity capital requirements
worldwide, the BMW Group forecasts a return on equity
(RoE) in line with the previous year’s level (2015: 20.2%), once again
ahead of the target rate of at least 18%.
Forecasts for the current year are based on the assumption that
worldwide economic conditions will not change significantly.
BMW Group achieves record earnings in 2015
The BMW Group achieved its sixth record-breaking year in succession
in 2015, posting new highs to date for sales volumes, revenues and
profit before tax, despite a volatile market environment.
“We have met all of our ambitious targets for the financial year,”
stated Krüger. “With another set of impressive figures in its
centenary year, the BMW Group remains the world’s leading provider of
premium vehicles and mobility services.”
Automobile sales volume climbed by 6.1% to a new
record level of 2,247,485 units (2014: 2,117,965 units). With
additional tailwind from favourable currency factors, Group
revenues grew by 14.6% in 2015 to € 92,175 million (2014:
€ 80,401 million). Profit before financial result
(EBIT) increased by 5.2% to € 9,593 million (2014: € 9,118 million),
mainly on the back of sales volume growth. Group profit before
tax (EBT) rose for the first time above € 9 billion,
increasing by 5.9% to a new high level of € 9,224 million (2014:
€ 8,707 million). Group net profit rose for the first
time above € 6 billion, increasing by 10.0% to a new record level of
€ 6,396 million (2014: € 5,817 million).
Dividend of € 3.20 per share of common stock proposed
“The exemplary commitment of our workforce and the unfailing
trust placed in us by our shareholders are the key topics that run
through the BMW Group’s success story”, elaborated Krüger.
“To mark the company’s centenary, we are once again raising the
associate bonus for our permanent staff in Germany, the highest amount
paid in the German premium auto industry. Dividend payments to our
shareholders will also exceed the two billion euro mark for the first
time, reflecting the BMW Group’s fine performance in 2015.” At the
Annual General Meeting on 12 May 2016 the Board of Management and the
Supervisory Board will propose to shareholders that the
dividend be increased to a new high of € 3.20 per
share of common stock (2014: € 2.90) and € 3.22 per share of preferred
stock (2014: € 2.92). The distribution rate stands at
32.9% (2014: 32.7%), well within the BMW Group’s target range of 30 to 40%.
Automotive segment’s profitability in target range
Automotive segment revenues grew by 13.8%
year-on-year to € 85,536 million (2014: € 75,173 million), mainly
reflecting the good sales volume performance, new models and
favourable currency factors. EBIT increased by 8.2%
to € 7,836 million (2014: € 7,244 million). The EBIT
margin came in at 9.2% (2014: 9.6%) and was thus in the upper
half of the targeted range of
8 -10%. Segment profit
before tax (EBT) improved by 9.3% to a new high of € 7,523
million (2014: € 6,886 million).
The BMW brand maintained its top position in the
premium segment in 2015 by posting a new record sales volume figure.
Deliveries to customers were 5.2% higher at 1,905,234 units (2014:
1,811,719 units), with excellent performances by the BMW 2 Series, the
BMW 4 Series and the BMW X family helping to drive sales volume
growth. Additional momentum is expected in the current year, in
particular from the new BMW 7 Series and the new BMW X1.
The BMW 2 Series proved exceptionally popular in
2015, with deliveries to customers reaching a total of 157,144 units
(2014: 41,038 units), including more than 107,000 units of the BMW 2
Series Active and Gran Tourer, which therefore accounted for more than
two thirds of the total figure for the series. The BMW 4
Series performed equally well, consolidating its position as
market leader in its segment with a 27.4% sales volume increase to
152,390 units (2014: 119,580 units). The brand’s growth is also being
driven by the success of the BMW X family. Sales of
the BMW X4 more than doubled to 55,050 units (2014:
21,688 units). Worldwide sales of the BMW X5, also
the market leader in its segment, grew by 14.1% to 168,143 units
(2014: 147,381 units), while the BMW X6 recorded a
53.1% increase to 46,305 units (2014: 30,244 units).
The number of BMW i vehicles delivered to customers
jumped by 65.9% to 29,513 units (2014: 17,793 units), comprising
24,057 units (2014: 16,052 units) of the BMW i3
(+49.9%) and 5,456 units (2014: 1,741 units) of the BMW i8.
MINI achieved a new sales volume record in 2015, with
deliveries up 12.0% to 338,466 units (2014: 302,183 units). Worldwide
sales of the new MINI 5-Door totalled 94,788 units
(2014: 13,113 units), while sales of the MINI 3-Door
edged up to 127,194 units (2014: 126,938 units; +0.2%). The new
MINI Clubman went on sale in October and registered
sales of 8,003 units by the end of the year.
Rolls-Royce Motor Cars recorded the second-best
performance in its
112-year history. The Goodwood-based company
sold 3,785 units worldwide in 2015 (-6.8%), with the
Wraith and Ghost models making the
largest contributions to the sales volume figure. Demand for the brand
remained high around the world, the only notable exception being
China, where the luxury segment as a whole felt stiff headwinds.
In line with its strategy of achieving a balanced distribution of
worldwide sales, the BMW Group recorded sales volume growth in
all major sales regions. The four largest sales
markets for the BMW Group over the past year were China, the USA,
Germany and Great Britain.
Sales of BMW Group vehicles in Europe in 2015
exceeded the one-million mark for the first time, with a total of
1,000,427 units (2014: 914,587 units; +9.4%) handed over to customers.
Sales volume was 5.0% higher in Germany at 286,098 units (2014:
272,345 units) and 12.6% higher in Great Britain at 230,982 units
(2014: 205,071 units).
The pace of growth in Asia slowed in 2015 as a
result of the continuing normalisation of the Chinese market. The BMW
Group sold 685,792 units (2014: 658,384 units) in this region, 4.2%
more than the previous year, including sales on the Chinese mainland,
which grew by 1.6% to 464,086 units (2014: 456,732 units).
The BMW Group also increased sales volume in the
Americas region, with the number of vehicles sold up
2.8% to 495,897 units (2014: 482,257 units), including 405,715 units
(2014: 396,961 units) sold in the USA (+2.2%).
Significant increase in Motorcycles segment earnings
Motorcycles segment revenues grew 18.5% year-on-year
to € 1,990 million (2014: € 1,679 million). EBIT
improved by 62.5% to € 182 million (2014: € 112 million), while
profit before tax advanced by 67.3% to € 179
million (2014: € 107 million). Sales volume increased
by 10.9% to 136,963 units (2014: 123,495 units), thus
outperforming the market as a whole. BMW Motorrad’s five largest
markets were Germany, the USA, France, Italy and Spain.
Financial Services segment continues to grow
The Financial Services segment also continued to perform well in
2015. Segment revenues were 15.2% higher at € 23,793
million (2014: € 20,599 million), while profit before
tax improved by 14.6% to € 1,975 million (2014: € 1,723 million).
In total, 1,655,961 (2014: 1,509,113) new contracts
were signed in conjunction with financing and leasing business, up
9.7% on the previous year. The portfolio of lease and
financing contracts in place with dealers and retail
customers at the end of the reporting period rose by 8.2% to 4,718,970
contracts (2014: 4,359,572 contracts).
Increase in workforce and number of apprentices
The workforce increased by 5.1% compared with the
previous year. Overall, the BMW Group had a worldwide workforce of
122,244 employees (2014: 116,324 employees) at the end of the
reporting period. The increase mainly reflects the ongoing expansion
of the Group’s international production network and the targeted
recruitment of engineers, IT specialists and skilled workers needed to
step up the development of future technologies and new services.
The BMW Group expanded training activities worldwide. During the past
year, approximately 1,500 young people began an
apprenticeship within the organisation, including 1,200 in Germany. At
the end of the reporting period, 4,700 young people worldwide were in
vocational training and training programmes for young talent within
the BMW Group.
The BMW Group – an overview
2015
2014
Change in %
Sales volume Automotive
Units
2,247,485
2,117,965
6.1
Thereof: BMW
Units
1,905,234
1,811,719
5.2
MINI
Units
338,466
302,183
12.0
Rolls-Royce
Units
3,785
4,063
-6.8
Sales volume Motorcycles
Units
136,963
123,495
10.9
Workforce 1
122,244
116,324
5.1
EBIT margin
Automotive
Segment
Percent
9.2
9.6
-0.4 %Points
Revenues
€
million
92,175
80,401
14.6
Thereof: Automotive
€ million
85,536
75,173
13.8
Motorcycles
€
million
1,990
1,679
18.5
Financial Services
€ million
23,739
20,599
15.2
Other Entities
€
million
7
7
–
Eliminations
€
million
-19,097
-17,057
-12.0
Profit before financial result
(EBIT)
€ million
9,593
9,118
5.2
Thereof: Automotive
€ million
7,836
7,244
8.2
Motorcycles
€
million
182
112
62.5
Financial Services
€ million
1,981
1,756
12.8
Other Entities
€
million
169
71
–
Eliminations
€
million
-575
-65
–
Profit before tax (EBT)
€ million
9,224
8,707
5.9
Thereof: Automotive
€ million
7,523
6,886
9.3
Motorcycles
€
million
179
107
67.3
Financial Services
€ million
1,975
1,723
14.6
Other Entities
€
million
211
154
37.0
Eliminations
€
million
-664
-163
–
Income taxes
€
million
-2,828
-2,890
2.1
Net profit
€
million
6,396
5,817
10.0
Earnings per share 2
€
9.70/9.72
8.83/8.85
9.9/9.8
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
Nikolai Glies, Head of Business and Finance Communications
Telephone: +49 89 382-24544, Telefax: +49 89 382-24418
Nikolai.Glies@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 30 production and assembly facilities
in 14 countries and has a global sales network in more than 140 countries.
In 2015, the BMW Group sold approximately 2.247 million cars and
nearly 137,000 motorcycles worldwide. The profit before tax for the
financial year 2015 was approximately € 9.22 billion on revenues
amounting to € 92.18 billion. As of 31 December 2015, the BMW Group
had a workforce of 122,244 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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