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

March 18, 2015 ANNUAL ACCOUNTS PRESS CONFERENCE DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE

EARNINGS AND PROFITABILITY TARGETS FOR 2014 FULFILLED

GROUP EBT MARGIN OF 10.8% EBT margin BMW Group (in %) 10.8 12% 10.7 10.4 10.2 10% 8 .8 8.0 8% 6% 4% 0.8 0.7 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014

BMW GROUP – 2014 FINANCIAL YEAR: FIGURES FOR PREVIOUS YEAR EXCEEDED In € million 2014 2013* Change in % Sales (units) 2,117,965 1,963,798 + 7.9 Revenues – Group 80,401 76,059 + 5.7 Earnings before tax – Group 8,707 7,893 + 10.3 (EBT) EBT margin (in %) 10.8 10.4 - Net profit – Group 5,817 5,329 + 9.2 * Previous year figures adjusted

4TH QUARTER 2014 BEST-EVER FOR RETAIL SALES In € million Q4 2014 Q4 2013* Change in % 588,085 Sales (units) 527,620 +11.5 Revenues – Group 22,661 20,210 + 12.1 Earnings before tax – Group 1,868 1,869 - 0.1 (EBT) EBT margin (in %) 8.2 9.2 - Net profit – Group 1,270 1,295 - 1.9 EBIT margin Automotive Segm. 8.2 9.1 - (in %) * Previous year figures adjusted

CAPITAL EXPENDITURE OF € 6.1 BILLION PRODUCTION EXPANSION IN AMERICAS, ASIA, EUROPE Plant Spartanburg, USA

CAPEX RATIO 2014 CLOSER TO TARGET Capex ratio BMW Group [%] 10.0% 8.8% 9.0% 7.9% 7.6% 7.6% 8.0% 7.0% Target: < 7.0% 6.8% 6.8% 6.0% 5.4% 5.4% 5.0% 4.0% 2007 2008 2009 2010 2011 2012 2013 2014

R&D EXPENDITURE OF € 4.57 BILLION R&D RATIO JUST OUTSIDE TARGET RANGE R&D Ratio (HGB) BMW Group 7.0% 6.3% 6.5% 6.0% 5.7% 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% 2014 2007 2008 2009 2010 2011 2012 2013

DIVIDEND INCREASE OF € 0.30 PROPOSED PAY-OUT RATIO OF 33% Dividend per common share (in € ) Dividend payment (in € million) 2.90 3.00 2,100 1,904 2.60 1,707 1,800 2.50 1,500 2.00 1,200 1.50 900 1.00 600 0.50 300 0.00 0 2013 2014 2013 2014

AUTOMOTIVE SEGMENT – 2014 FINANCIAL YEAR: SEGMENT PROFITABILITY HIGHER In € million 2014 2013* Change in % 2,117,965 1,963,798 + 7.9 Sales (units) Revenues 75,173 70,630 + 6.4 Earnings before interest and tax 7,244 6,649 + 8.9 (EBIT) EBIT margin (in %) 9.6 9.4 - Earnings before tax (EBT) 6,886 6,561 + 5.0 * Previous year figures adjusted

AUTOMOTIVE SEGMENT: 2013 TO 2014 EBIT WALK In € million +1,674 - 423 - 663 + 26 7,244 - 19 6,649 EBIT Net expense Other Volume/ Mix/ Depreciation Other changes EBIT from exchange operating Market 2013* 2014 rates/ income and commodities expenses EBIT margin EBIT margin 9.4%* 9.6% * Previous year figures adjusted

AUTOMOTIVE SEGMENT FREE CASH FLOW: TARGET OF > € 3 BILLION EXCEEDED In € million 5,000 4,000 3,481 3,003 3,000 Target: > 3 bn. € 2,000 1,000 0 2013* 2014 * Previous year figures adjusted

STRONG LIQUIDITY POSITION SECURES FINANCIAL FLEXIBILITY In € billion 11.660 12 10.724 10 3.972 3.060 8 Securities 6 Cash & cash equivalents 4 7.688 7.664 2 0 2013 2014

FINANCIAL SERVICES SEGMENT: NEW HIGHS IN 2014 In € million 2014 2013* Change in % New customer contracts (units) 1,509,113 1,471,385 + 2.6 Total volume of new customer 41,318 39,241 + 5.3 contracts 1,723 Earnings before tax (EBT) 1,619 + 6.4 Return on equity (in %) 19.4 20.0 - Penetration rate (in %) 41.7 44.0 - * Previous year figures adjusted

POSITIVE BUSINESS DEVELOPMENT AT ALPHABET AND FINANCIAL SERVICES BUSINESS AREAS

FINANCIAL SERVICES SEGMENT: NEW HIGHS IN 2014 In € million 2014 2013* Change in % New customer contracts (units) 1,509,113 1,471,385 + 2.6 Total volume of new customer 41,318 39,241 + 5.3 contracts 1,723 Earnings before tax (EBT) 1,619 + 6.4 Return on equity (in %) 19.4 20.0 - Penetration rate (in %) 41.7 44.0 - * Previous year figures adjusted

RISK SITUATION SIMILAR TO PREVIOUS YEAR GLOBAL EXPANSION OF RISK MANAGEMENT

BMW MOTORRAD: SALES GAINS IN EUROPE AND THE AMERICAS DELIVERIES INCREASED BY 7.2% TO 123,495 UNITS

SUCCESSFUL FINANCIAL YEAR FOR BMW MOTORRAD STRONG INCREASE IN EARNINGS In € million 2014 2013 Change in % Sales (units) 123,495 115,215 + 7.2 Revenues 1,679 1,504 + 11.6 Earnings before interest and tax 112 79 + 41.8 (EBIT) EBIT margin (in %) 6.7 5.3 - Earnings before tax (EBT) 107 76 + 40.8

FIVE NEW MODELS FOR LAUNCH IN 2015 BMW R 1200 R BMW F 800 R BMW R 1200 RS BMW S 1000 RR BMW S 1000 XR

POSITIVE EFFECTS FROM THE LEASING PORTFOLIO AND LEASING MIX IMPROVE EARNINGS IN THE ELIMINATIONS In € million 2014 2013* Change in % Automobiles 6,886 6,561 5.0 107 Motorcycles 76 40.8 Financial Services 1,723 1,619 6.4 Other Entities 154 164 6.1 Eliminations - 163 -527 69.1 BMW Group 8,707 7,893 10.3 * Previous year figures adjusted

OUTLOOK FOR 2015 – POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGES BMW Group Solid increase of BMW Group EBT compared with previous year Automotive Segment Solid rise in vehicle deliveries and revenues compared with previous year EBIT margin in target range of 8-10% Segment Financial Services Return on equity of at least 18%, on par with previous year Segment Motorcycles Solid rise in deliveries compared with previous year

ATTRACTIVE PORTFOLIO AND FINANCIAL STRENGTH – THE BASIS FOR FURTHER GROWTH

March 18, 2015 ANNUAL ACCOUNTS PRESS CONFERENCE