ANNUAL ACCOUNTS PRESS CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF - PowerPoint PPT Presentation

March 19, 2014 ANNUAL ACCOUNTS PRESS CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE

BMW GROUP SUCCESSFUL IN 2013 FUTUREPROOFING ENHANCED

GROUP MARGIN AT 10.4% EBT Margin BMW Group (in %) 12% 10.7 10.4 10% 10.2 8.0 8% 6% 4% 0.8 2% 0% 2009 2010 2011 2012 2013

BMW GROUP – 2013 FINANCIAL YEAR: GUIDANCE FULFILLED In million € 2013 2012* Change in % Automotive sales (units) 1,963,798 1,845,186 + 6.4 Group revenues 76,058 76,848 - 1.0 Group profit before tax (EBT) 7,913 7,803 + 1.4 Return on sales (EBT) (in %) 10.4 10.2 - Group net profit 5,340 5,111 + 4.5 * Previous year adjusted

4TH QUARTER 2013: EBIT MARGIN FOR AUTOMOTIVE SEGMENT HIGHER THAN EXPECTED In million € 2013 2012* Change in % 527,620 Automotive sales (units) 509,684 + 3.5 Group revenues 20,210 20,536 - 1.6 Group profit before tax (EBT) 1,889 1,760 + 7.3 Return on sales (EBT) (in %) 9.3 8.6 - Group net profit 1,306 1,193 + 9.5 EBIT margin Automotive Segment (in %) 9.2 10.5 - * Previous year adjusted

CAPEX RATIO ABOVE TARGET AS PLANNED BASIS FOR FURTHER GROWTH PROVIDED Capex ratio for the BMW Group 10.0% 8.8% 8.8% 9.0% 7.9% 7.6% 8.0% 7.0% Target: < 7.0% 6.8% 6.8% 6.0% 5.4% 5.4% 5.0% 4.0% 2006 2007 2008 2009 2010 2011 2012 2013

EXPANSION OF GLOBAL PRODUCTION NETWORK

R&D EXPENDITURE AT € 4.8 BN R&D ratio (HGB) BMW Group 7.0% 6.5% 6.3% 6.5% 6.0% 5.6% 5.4% 5.5% Target range: 5 – 5.5% 5.0% 5.1% 4.9% 4.8% 4.5% 4.6% 4.0% 2006 2007 2008 2009 2010 2011 2012 2013

PROPOSED DIVIDEND TO INCREASE PAYOUT RATIO OF 32% Dividend per common stock in € Total dividend payout in million € 1,707 3.00 1800 1,640 2.60 2.50 2.50 1500 2.00 1200 1.50 900 1.00 600 0.50 300 0.00 0 2012 2013 2012 2013

AUTOMOTIVE SEGMENT – 2013 FINANCIAL YEAR: EBIT MARGIN WELL WITHIN TARGET RANGE In million € 2013 2012* Change in % Sales (units) 1,963,798 1,845,186 + 6.4 Revenues 70,629 70,208 + 0.6 Profit before interest and tax (EBIT) 6,657 7,599 - 12.4 EBIT margin (in %) 9.4 10.8 - Profit before tax (EBT) 6,561 7,170 - 8.5 * Previous year adjusted

AUTOMOTIVE SEGMENT: RECONCILIATION OF EBIT 2013 FROM PREVIOUS YEAR In million € - 214 + 133 - 167 7,599 - 218 - 476 6,657 EBIT Net expense Other operating Volume/ Depreciation Other changes EBIT from exchange income and Mix/ Market 2013 2012* rates/ expenditure commodities EBIT margin EBIT margin 10.8%* 9.4% * Previous year adjusted

FREE CASH FLOW IN AUTOMOTIVE SEGMENT LOWER THAN IN PREVIOUS YEAR OWING TO INVESTMENTS In million € 5,000 3,809 4,000 3,000 2,499 2,000 1,000 0 2012* 2013 * Previous year adjusted

STABLE LIQUIDITY AS PER END OF 2013 FINANCIAL FLEXIBILITY ASSURED In billion € 11.025 12 10.724 10 2.655 3.060 8 Securities 6 Cash & cash equivalents 8.370 4 7.664 2 0 2012 2013

FINANCIAL SERVICES SEGMENT: 2013 KEY FINANCIALS In million € 2013 2012 Change in % New customer contracts (units) 1,471,385 1,341,296 + 9.7 On-balance sheet business volume 84,347 80,974 + 4.2 Profit before tax (EBT) 1,639 1,561 + 5.0 Return on equity (in %) 20.2 21.2 - Penetration rate (in %) 44.0 40.4 -

BMW GROUP WITH BEST RATING AMONG EUROPEAN AUTOMOTIVE MANUFACTURERS Standard & Poor's Moody's Short-term Rating A-1 P-1 Long-term Rating A+ A2 Outlook Stable Stable

POSITIVE BUSINESS DEVELOPMENT AT ALPHABET EXPANSION OF BMW BANK COMPLETED IN 2013

WORLDWIDE CREDIT LOSS RATE LOWER AND AT PRE-CRISIS LEVEL In % 1.0 0.84 0.8 0.67 0.59 0.6 0.49 0.48 0.46 0.46 0.41 0.41 0.37 0.4 0.2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

FURTHER GROWTH PLANNED FOR FINANCIAL SERVICES

BMW MOTORRAD – 2013 BUSINESS FIGURES: MAJOR INCREASE IN PROFIT In million € 2013 2012 Change in % Sales (units) 115,215 106,358 + 8.3 Sales revenues 1,504 1,490 + 0.9 Profit before interest and tax (EBIT) 79 9 - EBIT-Margin (in %) 5.3 0.6 - Profit before tax (EBT) 76 6 -

ENTRY INTO URBAN E-MOBILITY PRODUCT INITIATIVE TO CONTINUE IN 2014

SEGMENT ELIMINATIONS: IMPROVEMENT DUE TO INTRA-GROUP ELIMINATIONS In million € 2013 2012 Change in % Revenues - 15,955 - 14,405 - 10.8 Profit before tax (EBT) - 527 - 937 + 43.8

OUTLOOK FOR 2014 – SUCCESS TO CONTINUE IF BUSINESS CONDITIONS REMAIN STABLE BMW Group Significantly higher pre-tax profit than in previous year. Automotive segment Significant rise in vehicle deliveries and in revenues compared with previous year. Currency factors could have a negative impact on revenues. EBIT margin within target range of 8-10%. Significant drop in Return on Capital Employed, but above long-term target of at least 26%. Financial Services segment Return on equity of at least 18%, but slight decrease compared with previous year. Motorcycles segment Slight rise in deliveries compared with previous year.

ATTRACTIVE PORTFOLIO AND FINANCIAL STRENGTH FORM THE BASIS FOR FURTHER GROWTH