Categories
BMW Canada

BMW Group sets vital march underneath severe conditions

Munich. In a march of a severe financial year
2018, a BMW Group done critical critical decisions set to secure
a long-term success. As partial of a company’s  Strategy
NUMBER ONE NEXT
, a immature light was given to launch a
new product descent in a top oppulance category and a cornerstone
was laid for additional enlargement of a company’s participation in China,
a world’s largest car market. With a BMW Vision
iNEXT
, a Group also presented a new record flagship,
that integrates a pivotal future-oriented topics of
unconstrained driving, connectivity, foundation and services
(ACES). The BMW Group continues to systematically
enlarge a operation of electrified models and is increasingly focusing
on co-operations in a fields of mobility services and autonomous
driving. At a same time, generally during a second half of the
year, business opening was impacted by poignant challenges
applicable to a whole sector, and that are approaching to accompany the
BMW Group over 2018.

 

“2018 was a severe year for a automotive zone as a
whole. Nevertheless, we achieved a second-highest Group distinction to
date,” pronounced Harald Krüger, Chairman of a Board
of Management of BMW AG, in Munich on Friday. “The challenges
confronting a whole zone are doubtful to lessen in a coming
months. Great efforts will therefore be indispensable opposite a whole Group
to assistance figure a sector’s mutation underneath such conditions.”

 

Alongside a hurdles confronting a whole attention over a past
year, from a BMW Group’s perspective, ongoing general trade
conflicts also contributed to a tightening marketplace conditions and
larger uncertainty. Moreover, a change to a new WLTP exam cycle
caused poignant supply distortions on several European markets,
heading to suddenly heated competition. In a third entertain of
a financial year 2018, increasing orthodox and non-statutory
guaranty measures resulted in significantly aloft additions to
supplies in a Automotive segment.

 

“We design clever headwinds to continue to outcome a entire
zone in 2019. However, we are rebellious these several challenges
systematically, in sequence to emerge from them even stronger than
before,” settled Nicolas Peter, Member of the
Board of Management of BMW AG, Finance. “This is because we launched
a Performance  NEXT programme behind in 2017 with a aim of
optimising performance, improving constructional potency and reducing
complexity wherever possible. In perspective of stream developments, we
intend to serve enlarge and significantly feature these efforts.”

 

The BMW Group now sees hurdles in several areas, including
domestic uncertainty, a cooling tellurian economy (partly due to
general trade conflicts), rising prolongation costs to meet
regulatory requirements, sell rate effects and rising raw
materials prices. To negate these disastrous factors, measures
already in place to revoke product portfolio complexity are being
stretched and also practical to indication derivatives. For example, notwithstanding a
good turn of demand, no inheritor indication will be grown for the
stream era of a BMW 3  Series Gran Turismo.

 

High upfront expenditures in a flighty environment

 

Despite a perfectionist conditions, a BMW Group continues to invest
estimable amounts in a mobility of a future. At € 5,029 million,
capital expenditure in 2018 was 7.3% above the
prior year’s high turn (€ 4,688 million). The Capex ratio rose to
5.2% (2017: 4.8%). Investments enclosed work connected with the
introduction of new models in a Spartanburg, Dingolfing and Munich
plants and building of a Group’s plant in Mexico. As planned,
research and development losses in 2018 were
significantly aloft than in a prior year and totalled € 6,890
million (2017: € 6,108 million; +12.8%). RD output for the
year was therefore homogeneous to 7.1% of Group revenues (2017: 6.2%).
In serve to ramping adult a roll-out of new models, a concentration is
also on future-oriented topics such as unconstrained pushing and the
systematic enlargement of electric mobility.

 

Pioneer of electric mobility evenly expanding product range

 

With more than 350,000 units (over 130,000 fully
electric vehicles and some-more than 220,000 plug-in hybrids) delivered to
business adult to a finish of 2018, a BMW Group is already a leading
retailer of electrified vehicles. At a commencement of March, a new
plug-in hybrid versions of a BMW 3 Series, BMW 7 Series, BMW X5 and
BMW X3, that now come with extended electric range,
were showcased during a Geneva Motor Show. By a finish of subsequent year, the
BMW Group will have more than 10 new or revised
models versed with fourth-generation electric drivetrain technology
(“Gen 4”) on a roads.

 

By a finish of 2019, these will embody a all-electric MINI
Electric
done during a Oxford plant and, from 2020, the
BMW iX3, that will be constructed for a world
marketplace in Shenyang, China. Together with a pioneering BMW i3, the
BMW i4 and a BMW iNEXT, the
Group will have five all-electric models on the
marketplace by 2021 and a array is scheduled to arise to during slightest twelve
models by 2025. Including a fast flourishing operation of plug-in
hybrids, a BMW Group’s product portfolio will afterwards contain during least
25 electrified models.

 

This far-reaching operation of electrified models on offer will be done possible
by highly stretchable car architectures and an
equally stretchable tellurian prolongation system. Going forward, a BMW Group
will be able of prolongation models with all-electric (BEV),
hybrid-electric (PHEV) and required (ICE) drivetrains on one
prolongation line. The ability to confederate e-mobility in a production
network will capacitate a BMW Group to respond even some-more flexibly as
direct grows. In 2018, a BMW Group delivered some-more than 140,000
electrified vehicles to customers. By a finish of this year, the
association expects to have an altogether sum of some-more than half a million
electrified vehicles on a roads.

 

The BMW Group is now building a fifth
generation
of a electric drivetrain, in that a interplay
of electric motor, transmission, energy wiring and battery will be
serve optimised. Integrating a electric motor, a transmission
and energy wiring also plays a purpose in slicing costs. Furthermore,
a electric engine does not need singular earths,
enabling a BMW Group to revoke a coherence on their availability.
The fifth era of a Group’s electric drivetrain technology
will be commissioned for a initial time in a BMW iX3 from 2020.

 

Cooperation for subsequent era of unconstrained driving

 

The BMW Group believes long-term partnerships within a flexible,
scalable, universal height are pivotal to advancing the
automation of autonomous driving. As early as
2016, a BMW Group determined a universal height with
record specialists, suppliers and OEMs to take a record to
array majority and has now successfully sum work in this
area during a Autonomous Driving Campus in
Unterschleißheim, nearby Munich. The era of technologies
now underneath expansion will go into array prolongation as Level 3
automation in a BMW iNEXT in 2021, this vehicle
will also be Level 4-enabled for commander projects.

 

The BMW Group has assimilated army with Daimler AG to allege the
expansion of a next era of technologies
indispensable for unconstrained driving. At a finish of February, a two
companies sealed a Memorandum of Understanding (MoU) to jointly
rise a technologies that are critical for destiny mobility.
Initially, a concentration will be on advancing a expansion of
next-generation technologies for motorist assistance systems, automated
pushing on highways and parking comforts (in any box adult to SAE Level 4).

 

The BMW Group and Daimler AG perspective their partnership as a long-term,
strategic cooperation and aim to make next-level
technologies widely accessible by a center of a entrance decade.
Combining a superb imagination of a dual companies will boost
their corner innovative strength. Moreover, it will both accelerate and
streamline a expansion of destiny record generations. The
expansion of current-generation technologies and a ongoing
collaborations both companies have in this domain will remain
unblushing and continue as planned. Both parties will also explore
additional partnerships with other record companies and automotive
manufacturers that could minister to a success of a platform.

 

Major investments in corner try for mobility services

 

The BMW Group and Daimler AG are also operative together in a field
of mobility services, formulating a new tellurian player
that provides tolerable civic mobility for a customers. The two
companies are investing some-more than one billion euros to rise and
some-more closely intermesh their offerings for car-sharing, ride-hailing,
parking, charging and multimodal transport. The team-work comprises
5 corner ventures: REACH NOW (multimodal), CHARGE NOW (charging),
FREE NOW (ride-hailing), PARK NOW (parking) and SHARE NOW (car-sharing).

 

The common vision is clear: a 5 services will
increasingly combine to form a singular mobility use portfolio with an
all-electric, self-driving swift of vehicles that assign and park
autonomously and also interconnect with other modes of transport. This
use portfolio will be a pivotal cornerstone in a BMW Group’s
plan as a mobility provider going forward. The cooperation
represents a ideal proceed for maximising opportunities in a
flourishing market, while jointly shouldering a destined cost of investment.

 

“With a Strategy NUMBER ONE NEXT, we are making
unchanging advances in a several ACES fields and bringing the
mobility of a destiny onto a roads. Our trail is clear: in areas
with a high grade of split potential, such as electric
drivetrains, we will rest wholly on a possess glorious development
expertise; where high scalability is some-more critical than exclusivity,
we will find to concur with constant partners,” pronounced Krüger.

 

Challenging conditions in a financial year 2018

 

In terms of a core business, a BMW Group had
always approaching 2018 to be a severe year. Compared with 2017,
alongside additional upfront output for a mobility of the
future, a high three-digit million euro disastrous impact from
exchange-rate and tender materials cost developments had been factored
into approaching gain for a year. As announced on 25 September
2018, several additional factors dampened business opening in the
third quarter. Unlike many of a competitors, a BMW Group
implemented a charge of a WLTP regulations
early. The industry-wide change to a new WLTP exam cycle resulted in
substantial supply distortions in Europe and suddenly intense
competition, given that countless aspirant models that had not yet
gained WLTP acceptance were purebred before a 1 September
deadline. Within a horizon of a stretchable prolongation and sales
strategy, a BMW Group responded to a conditions by shortening its
volume formulation to focus on gain quality. At the
same time, increasing orthodox and non-statutory guaranty measures
resulted in significantly aloft additions to supplies in the
Automotive segment. Ongoing general trade conflicts also served
to intensify a marketplace conditions and feed uncertainty. These
resources resulted in greater-than-expected distortions in demand
and astonishing vigour on pricing in several markets.

 

Nevertheless, deliveries of a BMW Group’s three
reward automotive brands (BMW, MINI and Rolls-Royce) grew by 1.1% to
a new record figure of 2,490,664 units in 2018 (2017: 2,463,526
units). At € 97,480 million, Group revenues were at
a prior year’s turn (2017: € 98,282 million: -0.8%). Adjusted
for banking factors, they increasing by 1.2%. Due to a various
inauspicious aspects outset in a third quarter, sum with high
levels of upfront output for investigate and development,
profit before financial outcome fell to € 9,121
million (2017: € 9,899 million; -7.9%). At € 9,815 million,
Group distinction before tax in 2018 was tolerably down
on a prior year, though but a second-best figure ever
accessible in a company’s story (2017: € 10,675 million; -8.1%). At
10.1% (2017: 10.9%), a lapse on sales before taxation (EBT
margin)
exceeded a aim value of 10 percent.

 

Group net distinction amounted to € 7,207 million (2017:
€ 8,675 million; -16.9%). In a prior year, net distinction was
unusually high due to gratefulness effects of around € 1 billion
outset in tie with a US taxation reform. Despite really challenging
conditions, a Automotive shred generated free cash
flow
of € 2,713 million in 2018 (2017: € 4,459 million).

 

Based on a annual financial statement, a Board of Management and
a Supervisory Board will introduce remuneration of a
dividend of € 3.50 per share of common batch and
€ 3.52 per share of elite batch during a Annual General Meeting on
16 May 2019. This is a second top payout in a company’s
history. The sum division remuneration will volume to € 2.3 billion, or
32.0% of net distinction (previous year: 30.3%3). “The
trust of a investors is really critical to us,” pronounced Nicolas
Peter. “This is generally loyal in times when
mutation and sensitivity are presenting a whole attention with
hurdles on a totally new scale.”

 

Automotive shred unprotected to flighty business conditions

 

At € 85,846 million, Automotive shred revenues
were during a identical turn to a prior year (2017: € 85,742 million;
+0.1%). Influenced by a factors referred to above and sum with
high levels of upfront output for investigate and development,
EBIT was € 6,182 million (2017: € 7,888 million;
‑21.6%). Due to several inauspicious factors, a EBIT
margin
came in during 7.2% (2017: 9.2%). Profit before
tax
amounted to € 6,977 million (2017: € 8,717 million; ‑20.0%).

 

A sum of 2,125,026 BMW code vehicles were
delivered to business worldwide (2017: 2,088,283 units; +1.8%). As
good as a BMW 5 Series (382,753 units; +10.2%), a BMW X family in
sole benefited from clever direct during 2018, with worldwide
deliveries adult significantly on a prior year to 792,605 units
(+12.1%). The BMW X3 done an critical grant to this
performance, with deliveries adult by some-more than one third to 201,637
units (+37.7%).

 

Worldwide deliveries of MINI code vehicles during
a twelve-month duration totalled 361,531 units (2017: 371,388 units;
-2.8%). The MINI Countryman accessible double-digit
expansion with 99,750 units (+17.5%). Almost each seventh MINI
Countryman was a plug-in hybrid (13.3%).

 

In 2018, Rolls-Royce Motor Cars achieved a best
sales outcome in over 100 years of corporate story with 4,107
deliveries worldwide (2017: 3,362 units; +22.2%). The Rolls-Royce
Phantom contributed almost to this performance.

 

While deliveries of a BMW Group’s 3 automotive brands in
Europe remained during a prior year’s high level
(1,098,523; -0.3%), a Americas (457,715 units;
+1.5%) and Asia (876,614 units; +3.3%) regions
accessible slight growth. In China, volumes grew
significantly as internal prolongation of a new BMW X3 was ramped adult in
a second half of a year. A sum of 640,803 BMW Group vehicles
were delivered to business in a march of 2018 (+7.7%).

 

Motorcycles shred revises indication range

 

BMW Motorrad revised a 2018 product operation on a
large scale, adding 9 new models. Production adjustments
required during a ramp-up proviso had a disastrous impact on deliveries
during a initial half of a year. Over a full year, 165,566 BMW
motorcycles and maxi-scooters were delivered to business (2017:
164,153 units; +0.9%).

 

Revenues totalled € 2,173 million (2017: € 2,272
million; -4.4%). Profit before financial outcome came
in during € 175 million (2017: € 207 million; -15.5%), analogous to a
shred EBIT margin of 8.1% (2017: 9.1%).
Profit before tax amounted to € 169 million (2017:
€ 205 million; -17.6%).

 

Financial Services shred annals agreement portfolio expansion

 

The Financial Services segment continued to perform
good in 2018. In total, 1,908,640 new contracts were
sealed with sell business in 2018 (2017: 1,828,604; +4.4%). The
contract portfolio with sell business comprised
5,708,032 contracts during 31 Dec 2018 (31 Dec 2017: 5,380,785
contracts; +6.1%). Segment revenues totalled € 28,165
million (2017: € 27,567 million; +2.2%). Profit before
tax
amounted to € 2,161 million (2017: € 2,207 million; -2.1%).

 

Slight boost in workforce

 

The BMW Group’s workforce comprised 134,682
employees during 31 Dec 2018, 3.7% some-more than during a finish of 2017. The
Group continues to partisan learned staff and IT specialists in
future-oriented areas such as digitalisation, unconstrained pushing and
electric mobility.

 

BMW Group forecasts continued volume expansion in 2019

 

In perspective of a ongoing indication offensive, a BMW Group anticipates
serve volume expansion in a stream financial year 2019 and is
targeting a slight boost in a array of deliveries to customers.
New models such as a BMW X7 and a seventh era of a BMW 3
Series are approaching to yield uninformed impetus. The BMW 3 Series model
change is expected to moderate expansion during a initial half of a year.

 

Supervisory Board

 

At a Annual General Meeting to be hold on 16 May 2019, the
Supervisory Board will introduce a re-election of Susanne Klatten,
entrepreneur, and Stefan Quandt, entrepreneur, to a Supervisory Board.

 

Furthermore, a Supervisory Board will introduce Dr. Vishal Sikka,
owner and CEO of Vian Systems and former member of a Executive
Board of SAP SE, for choosing to a Supervisory Board. After 15 years
as a member of a Supervisory Board, a charge of Franz Haniel,
entrepreneur, expires during a finish of a arriving Annual General
Meeting. The Supervisory Board wishes to appreciate Mr Haniel for his
profitable and devoted team-work during his mandate.

 

 

* * *

 

Further information on a Group Financial Statements 2018 and the
opinion for a stream year will be accessible during a BMW Group’s
Annual Accounts Press Conference to be hold in Munich on 20 Mar 2019.

 

 

The BMW Group – an Overview

2018

2017

Change in %

Deliveries to customers

    

Automotive

units

2,490,664

2,463,526

1.1

thereof: BMW

units

2,125,026

2,088,283

1.8

 MINI

units

361,531

371,881

-2.8

 Rolls-Royce

units

4,107

3,362

22.2

Motorcycles

units

165,566

164,153

0.9

 

 

 

 

 

Workforce
1                          (compared to
31.12.2017)

134,682

129,932

3.7

 

 

 

 

 

EBIT domain Automotive shred
3

%

7.2

9.2

-2.0 % pts

EBIT domain Motorcycles segment
3

%

8.1

9.1

-1.0 % pts

EBT domain BMW Group
3

%

10.1

10.9

-0.8 % pts

 

 

 

 

 

Revenues
3

€ million

97,480

98,282

-0.8

thereof:
Automotive3

€ million

85,846

85,742

0.1

Motorcycles3

€ million

2,173

2,272

-4.4

Financial Services

€ million

28,165

27,567

2.2

Other Entities

€ million

6

7

-14.3

Eliminations3

€ million

-18,710

-17,306

-8.1

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

9,121

9,899

-7.9

thereof:
Automotive3

€ million

6,182

7,888

-21.6

Motorcycles

€ million

175

207

-15.5

Financial Services

€ million

2,190

2,194

-0.2

Other Entities

€ million

-27

14

Eliminations3

€ million

601

-404

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

9,815

10,675

-8.1

thereof:
Automotive3

€ million

6,977

8,717

-20.0

Motorcycles

€ million

169

205

-17.6

Financial Services

€ million

2,161

2,207

-2.1

Other Entities

€ million

-45

80

Eliminations3

€ million

553

-534

 

 

 

 

 

Income taxes
3

€ million

-2,575

-2,000

-28.8

Net distinction for a year
3.4

€ million

7,207

8,675

-16.9

Earnings per share
2.3

 €

10.82/10.84

13.07/13.09

-17.2/-17.2

1 Excluding asleep practice contracts, employees in the
work and non-work phases of pre-retirement part-time working
arrangements and low salary earners

2 Earnings per share of common stock/preferred stock

3 Prior year total practiced due to first-time application
of revised IAS 15, see note [6] to a Group Financial Statements

4 Value for 2018 (including a detriment from discontinued
operations of € 33 million)

 

For queries, greatfully contact:

 

Corporate Communications

 

Max-Morten Borgmann, Corporate Communications

Telephone:



+49 89
382-24118
, [email protected]

 

Mathias Schmidt, Head of Corporate and Culture Communications

Telephone:









+49 89
382-24544
, [email protected]

 

Internet: www.press.bmwgroup.com

E-mail: [email protected]

 

 

The BMW Group

 

With a 4 brands BMW, MINI, Rolls-Royce and BMW Motorrad, a BMW
Group is a world’s heading reward manufacturer of automobiles and
motorcycles and also provides reward financial and mobility services.
The BMW Group prolongation network comprises 30 prolongation and assembly
comforts in 14 countries; a association has a tellurian sales network in
some-more than 140 countries.

In 2018, a BMW Group sole over 2,490,000 newcomer vehicles and
some-more than 165,000 motorcycles worldwide. The distinction before taxation in the
financial year 2018 was € 9.815 billion on revenues amounting to
€ 97.480 billion. As of 31 Dec 2018, a BMW Group had a
workforce of 134,682 employees.

The success of a BMW Group has always been formed on long-term
meditative and obliged action. The association has therefore established
ecological and amicable sustainability via a value chain,
extensive product shortcoming and a transparent joining to
conserving resources as an constituent partial of a strategy.

 

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupView

Instagram: https://www.instagram.com/bmwgroup

LinkedIn: https://www.linkedin.com/company/bmw