Ladies and Gentlemen,
The BMW Group stays on march after a initial 6 months of 2019.
In a challenging, disappearing altogether market, we increasing a segment
share. As formerly announced, a handling outcome for the
Automotive Segment has softened compared to a initial entertain and we
are on lane to accommodate a goals for a year, as planned.
Our opening shows that we are in a clever position compared to
many competitors, notwithstanding a formidable domestic and economic
environment. The company’s half-year sales surfaced 1.25 million
vehicles for a initial time – interjection mostly to a immature and
appealing product portfolio. A good instance of this is a X7: By the
finish of June, a X7 had already been delivered to some-more than 13,000
business around a world. Our opening stays particularly
energetic in China, where – notwithstanding a disappearing altogether marketplace – we
reported double-digit growth.
Ladies and Gentlemen, Let’s demeanour initial during a financial sum for
a Group. Group revenues for a second entertain rose by 2.9% to 25.72
billion euros – benefitting in partial from a slight banking tailwind.
We once again done high upfront investments in a second entertain as
we essay to figure technological change.
As expected, banking and commodity prices, aloft debasement and
measures for emission-free mobility also had a dampening effect. The
financial outcome for a second entertain came to -148 million euros. I
will yield some-more sum after for any segment.
Impacted by a reduce financial result, second-quarter pre-tax
gain totalled 2.05 billion euros. Due to a sustenance done in the
initial entertain in tie with antitrust allegations by a European
Commission, pre-tax gain for a initial 6 months decreased to
2.82 billion euros. The Group EBT domain stood during 8.0% for a quarter
and 5.8% for a half-year. Excluding a provision, a figure for
a year to a finish of Jun was 8.7%.
Ladies and Gentlemen, Running a sustainable, essential business
stays a tip priority. We are therefore creation systematic
investments currently to secure a destiny – even in a current
severe business environment. A high grade of coherence is
essential. With a fit explosion engines, plug-in variety and
battery-electric expostulate trains, we are rarely diversified and open to
opposite technologies. At a same time, we are fortitude our
investigate into fuel cells.
In serve to serve building a drivetrains, we are also
focusing on increasing connectivity between drivers, vehicles and their
environment, unconstrained pushing and mobility services. Second-quarter
investigate and expansion output according to German Commercial
Code amounted to 1.48 billion euros. The figure for a first
half-year was around 2.83 billion euros. The RD ratio for the
second entertain stood during 5.7%. As formerly announced, a ratio is
approaching to stay between 6 and 6.5% for a full year. It will therefore
be reduce than final year’s unusually high figure of 7.1%, as planned.
We continue evenly gearing ourselves for future-oriented
topics. This element is also reflected in a investment strategy.
In a second quarter, we invested a sum of around 1.18 billion
euros. Capital output for a year to a finish of Jun reached
2.18 billion euros. This seasonally atypical boost in a first
half-year stems generally from a vast series of product ramp-ups, as
for instance a new 3 Series and a 1 Series, and a opening of the
new plant in Mexico. Going forward, we will be means to trade a 3
Series Sedan from San Luis Potosí to some-more than 40 countries that have
giveaway trade agreements with Mexico.
The capex ratio for a year to a finish of Jun reached 4.5%. Despite
a introduction of IFRS 16, we still design a ratio for a full
year to be usually somewhat aloft than a prior year’s 5.2%.
Ladies and Gentlemen, Let’s pierce on to a sold segments. In
a Automotive Segment, deliveries to business remained fast from
final year, as planned. Despite a indication changeovers we mentioned and
a rarely rival environment, generally in Europe, segment
revenues for a second entertain increasing to 22.62 billion euros.
The segment’s handling gain for a second entertain totalled 1.47
billion euros. The EBIT domain was 6.5%. Due to a sustenance we
recognized in a initial quarter, a domain for a initial half-year
was 2.8%. We are on march for a approaching aim operation for the
whole year of between 4.5 and 6.5%. Without a provision, a figure
was 6.1% and therefore within a strange superintendence of 6 to 8%.
The increasingly severe marketplace sourroundings and postulated intense
foe dampened business development. As expected, higher
production costs and scheduled depreciations also impacted
earnings. RD spending remained high, as designed – focusing, in
particular, on expansion of car architectures and drivetrains,
as good as new products, foundation and connectivity.
In a financial result, a rough one-time revaluation effect
from mixing mobility services with Daimler was mostly equivalent by a
designed detriment in equity-accounted investments in YOUR NOW companies. In
a prior year, a outcome enclosed a certain gratefulness outcome in
tie with a merger of DriveNow.
Let’s demeanour during a segment’s giveaway money flow: At 869 million euros for
a second quarter, it was, as expected, significantly aloft than in
a initial 3 months of a year. We are also targeting a positive
giveaway money upsurge in a second half-year and aiming for a figure which
should proceed a identical spin as final year.
In serve to high collateral output and upfront investments,
marketplace expansion in a series of regions is proof some-more challenging
than creatively anticipated. This is dampening gain and money upsurge generation.
Ladies and Gentlemen, Let’s pierce on to a Financial Services
Segment, that continued a expansion arena in a second quarter.
The series of new contracts resolved with sell business rose by
4.4% in this entertain to some-more than 500,000 contracts. With some-more than
5.35 million sell contracts as of 30th of June, a sum portfolio
increasing 2.3% from a finish of 2018. The China shred particularly reported
Pre-tax shred gain for a initial half-year rose 3.8% to 1.2
billion euros. This certain expansion in a initial half-year is
mostly due to portfolio expansion and a continued fortitude of the
risk conditions with reduced residual value risk losses in sold markets.
The second-quarter figure was 573 million euros. This figure is
impacted by disastrous effects in a financial outcome from a market
gratefulness of seductiveness rate derivatives due to descending seductiveness rates
opposite a globe.
Let’s demeanour subsequent during a Motorcycles Segment. BMW Motorrad performed
good in a initial half of a year. A sum of around 93,200
motorcycles were delivered to business – an boost of 7.1 percent.
This certain business expansion was reflected in a operating
result, which, during 102 million euros for a second quarter, was also
aloft year-on-year. The EBIT domain was 14.0%.
Ladies and Gentlemen, Let’s spin to a foresee for a current
year: In a initial 6 months, business grown in line with our
expectations. As planned, we were means to urge on a first-quarter
performance. We design this plain gain expansion to continue
into a second half of a year, increased serve by a product
momentum. We are therefore means to endorse a opinion for 2019.
As prolonged as conditions do not mellow significantly, we design to
sojourn within a announced superintendence operation for a full year. In the
Automotive Segment, deliveries are foresee to boost slightly. More
new models will be launched in a second half of a year. We expect
a new 3 Series and a incomparable X models, in particular, to generate
certain momentum. We sojourn on march for an EBIT domain within our
practiced aim operation of 4.5 to 6.5% for 2019.
In a Motorcycles Segment, we are formulation for a plain boost in
deliveries. The EBIT domain should sojourn within a aim operation of
8-10%. In a Financial Services Segment, we design lapse on equity
to be on standard with final year and above a aim figure of 14%. Group
gain before taxation will also be significantly reduce year-on-year as a
outcome of a sustenance for ongoing antitrust record and the
diminution in a financial outcome from a prior year. Our guidance
assumes that domestic and mercantile conditions will not change significantly.
Ladies and Gentlemen, Our clever opening in a disappearing overall
marketplace shows that a appealing products and ground-breaking
technologies are winning customers. Flexibility will also sojourn key
to a destiny success. It allows us to respond to direct in different
regions of a universe during any time and adjust volumes in line with
marketplace development. At a same time, we continue to activate all
levers during a ordering to secure a profitability.
The BMW Group is, and will remain, a clever company. Our innovative
strength and a concentration on growth, formed on a really plain financial
profile, provides a best basement for destiny success.