Επιβεβαιώνεται η παραγωγή της BMW X2. Αναμένεται να λανσαριστεί στην αγορά το 2017

Έχουμε αναφέρει και στο παρελθόν, πως η BMW σκοπεύει να γεμίσει κάθε κενό αριθμό στην γκάμα της με νέα μοντέλα. Ένας από αυτούς του αριθμούς στην “X” σειρά, είναι φυσικά το 2.

Τώρα, ένα μέλος του bimmerpost forum και γνωστός insider στην BMW, αναφέρει πως η Γερμανική εταιρία θα κατασκευάσει την X2 και θα την λανσάρει στην αγορά το 2017. Θα βασίζεται στην ίδια πλατφόρμα με την X1 και θα είναι αποκλειστικά τετρακίνητη με το xDrive σύστημα της BMW standard σε όλες τις εκδόσεις. Όπως και οι X4 και X6, θα είναι πεντάθυρη με τρίθυρο-coupe προφίλ ενώ όπως αναφέρει το post, θα είναι αδερφάκι των MINI Countryman/Paceman.

Εδώ περιπλέκονται λίγο τα πράγματα. Όχι γιατί λέγεται πως το επόμενο Countryman θα είναι πραγματικό SUV με παραπάνω από ικανοποιητικές εκτός δρόμου δυνατότητες αλλά γιατί προ μερικών ημερών, μάθαμε πως το Paceman οδεύει προς κατάργηση. Από ότι φαίνεται, η BMW σκέφτεται να κάνει το ένα πιο sport/lifestyle MINI με 5 πόρτες για περισσότερη πρακτικότητα.

Στις σχετικές ειδήσεις, η BMW ανακοίνωσε πως μέσα στο 2014 θα παρουσιάσει 12 νέα/ανανεωμένα μοντέλα, με ένα από αυτά να κατασκευάζεται στο εργοστάσιό της στη Νότιο Καρολίνα. Μεταξύ αυτών θα υπάρχει και ένα μεγάλο SUV (λέγε με X6), με την BMW να εξακολουθεί να πιστεύει στην αγορά των Η.Π.Α, μιας και το 2013 ήταν η δεύτερη μεγαλύτερη αγορά της παγκοσμίως με 350.000 πωλήσεις, 50.000 λιγότερες σε σχέση με την Κίνα. Η BMW σκοπεύει να αυξήσει τη παραγωγή αυτοκινήτων της στις Η.Π.Α, έχοντας βάλει ως στόχο να πουλήσει περισσότερα από 2 εκατ. αυτοκίνητα μέσα στο 2014, ενώ αναμένει να αυξηθούν σημαντικά και τα κέρδη της.

[Πηγή: Bimmerpost, BMW | Rendering Photos: X-Tomi Design]

[learn_more caption=”Δελτίο Τύπου”]

BMW Group looks ahead to 2014 with confidenceSharp rise in worldwide sales volume expected

EBIT margin target: 8 – 10% in Automotive segment

Group profit before tax also forecast to increase sharply

Munich. BMW Group can look ahead with confidence to the current financial year. Group profit before tax and sales volume are both expected to rise to new high levels.

“We are aiming to achieve a significant rise in sales volume in 2014, which would take us to a new all-time high of over two million vehicles”, stated Norbert Reithofer, Chairman of the Board of Management of BMW AG at the Annual Accounts Press Conference on Wednesday in Munich.

The planned growth in sales volume should also be reflected in group profit before tax (2013: € 7,913 million): “We expect group profit before tax to rise significantly in the current year despite ongoing volatile business conditions”, continued Reithofer. The pace at which earnings increase will however be affected by high levels of expenditure for new technologies and by rising personnel expenses.

Despite substantial levels of investment in new technologies, the Automotive segment will again strive in 2014 to achieve an EBIT margin within a corridor of 8 to 10% (2013: 9.4%). Tailwind will also come from the 16 new models and model revisions, which the BMW Group plans to launch in the current year.

Despite challenging conditions on international motorcycle markets, sales of the Motorcycles segment are forecast to be slightly up on the previous year (2013: 115,215 units), not least due to the contribution expected from the new motorcycles presented at the autumn trade fairs (the R nineT, S 1000 R, R 1200 RT, R 1200 GS Adventure and K 1600 GTL Exclusive).

The Financial Services segment is expected to also remain on growth course in 2014. As a consequence of growth-related investments, the return on equity is likely to decrease slightly (2013: 20.2%), but still surpass the BMW Group’s minimum required level of 18%.

The forecasts for the current year are based on the assumption that political and economic conditions remain stable in 2014.

BMW Group posts record figures in 2013 for fourth successive year

The BMW Group continued to perform well during the past year within a challenging economic environment worldwide and successfully maintained its position as the world’s leading premium manufacturer. “We have recorded our highest ever sales volume and group profit figures for 2013 and achieved all the targets we set ourselves for the full year”, pointed out Reithofer.

Group revenues for 2013 totalled € 76,058 million (2012: € 76,848 million;
-1.0%) and were thus marginally down on the previous year, with the difference due to exchange rate developments. Group profit before tax (EBT) increased by 1.4% to a new high of € 7,913 million (2012: € 7,803 million) despite increased investment in new technologies, greater competition and higher personnel costs. Group net profit climbed by 4.5% to € 5,340 million (2012: € 5,111 million), also a new record figure for the BMW Group.

Capital expenditure increased year-on-year by 27.6% to € 6,687 million (2012: € 5,240 million), giving a capital expenditure ratio of 8.8%. The main focus in 2013 was on product investments for production start-ups (including the BMW 2 Series Active Tourer) and infrastructure-related investments to enable further growth.

Research and development expenditure rose by 21.3% to € 4,792 million (2012: € 3,952 million), as a result of which the research and development ratio climbed to 6.3% (2012: 5.1%). Important areas of investment were the renewal and expansion of the product range, alternative drive technologies, lightweight construction and connectivity for vehicles.

The BMW Group increased deliveries to customers by 6.4% to 1,963,798 units (2012: 1,845,186 units), with all three brands registering all-time highs.

Record dividend of €2.60 per share of common stock proposed

BMW AG is committed to sharing its success with its shareholders. The Board of Management and the Supervisory Board will propose to shareholders at the Annual General Meeting on 15 May 2014 that the dividend be increased to a new highest level of € 2.60 (2012: € 2.50) per share of common stock and € 2.62 (2012: € 2.52) per share of preferred stock. Based on these figures, the total distribution will rise to € 1,707 million (2012: € 1,640 million). The dividend rate is unchanged at 32.0% and is within the BMW Group’s target corridor of 30 to 40%.

Automotive segment: EBIT margin at 9.4% in 2013

Automotive segment revenues rose by 0.6% to € 70,629 million (2012: € 70,208). Influenced by the above-mentioned factors – high expenditure for new technologies, product range expansion and market launch costs as well as increased competition – EBIT decreased to € 6,657 million (2012: € 7,599 million; -12.4%). The EBIT margin came in at 9.4% and was thus in the upper half of the targeted corridor of between 8 and 10%. Segment profit before tax amounted to € 6,561 million (2012: € 7,170 million; -8.5%).

The BMW brand retained pole position in the premium segment in 2013, with worldwide sales up by 7.5% to 1,655,138 units (2012: 1,540,085 units). The BMW X1 as well as the BMW 3, 5, and 6 Series all asserted their positions as market leaders in their own segments.

Solid growth was recorded again for the BMW X1, with sales volume up by 9.2% to 161,353 units (2012: 147,776 units). The BMW X3 performed well again and recorded a 5.0% increase to 157,303 units (2012: 149,853 units). Sales of the BMW X5 were only slightly down on the previous year at 107,231 units (2012: 108,544 units; -1.2%) despite the model change (the new BMW X5 has been available since mid-November).

The BMW 3 Series remained a major source of growth in the past year, with sales rising by 23.0% to 500,332 units (2012: 406,752 units). The success story of the BMW 5 Series continued over the twelve-month period, during which 366,992 units were sold (2012: 359,016 units; +2.2%). The BMW 6 Series was also able to make significant progress, with sales up by 19.4% to 27,687 units (2012: 23,193 units).

MINI similarly set a new sales volume record in 2013, with worldwide sales edging up by 1.2% to 305,030 units (2012: 301,526 units). The new generation of the MINI will make its appearance in the showrooms from spring 2014 onwards. The MINI Hatch, at the end of its model life-cycle, still managed to achieve a sales volume of 128,498 units (2012: 131,569 units; -2.3%). Sales of the MINI Countryman were roughly at the previous year’s level, with a total of 101,897 units sold (2012: 102,271 units; -0.4%). In the period from its launch in mid-March to the end of 2013, the MINI Paceman achieved a sales volume of 14,687 units.

Rolls-Royce Motor Cars remained market leader in the ultra-luxury segment in 2013 and, with sales of 3,630 units (2012: 3,575 units; +1.5%), achieved a new sales volume record for the fourth year in succession.

The BMW Group recorded sales volume growth on nearly all continents in the past year. “The BMW Group’s sales strategy is geared towards achieving an evenly balanced distribution of worldwide sales across the three main regions of the world to avoid overdependence on any single market”, commented Reithofer.

At 859,546 units, sales in Europe – the BMW Group’s largest sales region – were almost at their previous year’s level despite challenging business conditions in some countries (-0.7%).

For the first time, the number of vehicles sold by the BMW Group in Asia exceeded the half-million mark. Sales in the region grew by 17.3% to 578,678 units, helped by a 19.7% rise on the Chinese mainland to 391,713 units.

The BMW Group continued to perform well in the Americas region, with deliveries to customers up by 9.0% to 463,822 units, including 376,636 units sold in the USA (+8.1%).

Motorcycles segment also sets new sales volume record

Sales volume, revenues and earnings of the Motorcycles segment rose in 2013. Revenues edged up by 0.9% to € 1,504 million (2012: € 1,490 million). EBIT rose to € 79 million (2012: € 9 million) and profit before tax to € 76 million (2012: € 6 million). Segment earnings in 2012 were impacted by expenses incurred in realigning the Motorcycles business. Despite challenging market conditions, a new sales volume record was set for 2013, with the number of BMW motorcycles delivered to customers reaching a new of level of 115,215 units (2012: 106,358 units; +8.3%).

Good progress made by Financial Services segment

The Financial Services segment continued to perform well during the past year. Revenues increased by 1.7% to € 19,874 million (2012: € 19,550 million). Profit before tax amounted to € 1,639 million (2012: € 1,561 million), 5.0% ahead of the previous year.

The number of new contracts within the credit financing and leasing lines of business grew worldwide by 9.7% to 1,471,385 contracts (2012: 1,341,296 contracts). The portfolio of lease and financing contracts in place with dealers and retail customers at 31 December 2013 climbed by 7.4% to a total of 4,130,002 contracts (2012: 3,846,364 contracts).

Workforce size increased – record number of apprentices

In 2013, the BMW Group trained more young people than ever before, employing a total of 4,445 apprentices worldwide. Reithofer commented: “We consider training to be an investment in the future of the company and in society.

The size of the workforce increased by 4.2% in 2013, reflecting both dynamic growth in business volumes and the rapid pace of innovation. At the end of the reporting period, the BMW Group had a worldwide workforce of 110,351 employees (31 December 2012: 105,876 employees). The increase is due to the growing need for engineers and skilled workers in order to keep pace with continued strong demand on the one hand and to push ahead with innovations and develop new technologies on the other.

BMW Group in fourth quarter 2013

BMW Group revenues in the last quarter of 2013 totalled € 20,210 million and were thus marginally down on the previous year’s figure (2012: € 20,536 million; -1.6%). EBIT for the three-month period increased by 4.2% to € 1,951 million (2012: € 1,872 million), while profit before tax rose by 7.3% to € 1,889 million (2012: € 1,760 million). Profit after tax improved by 9.5% to € 1,306 million (2012: € 1,193 million). The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers in the period from October to December grew by 3.5% to 527,620 units (2012: 509,684 units).

Automotive segment revenues in the fourth quarter were almost unchanged at € 19,325 million (2012: € 19,496 million; -0.9%). EBIT amounted to € 1,770 million (2012: € 2,054 million; -13.8%) and profit before tax to € 1,766 million (2012: € 1,899 million; -7.0%). The EBIT margin came in at 9.2%.

Fourth-quarter Motorcycles segment revenues totalled € 269 million (2012: € 274 million; -1.8%). The segment reports negative EBIT of € 14 million (2012: negative € 73 million) and a pre-tax loss of € 14 million (2014: loss of € 74 million).

Financial Services segment revenues increased by 0.5% in the final quarter of 2013 to € 4,992 million (2012: € 4,968 million). EBIT jumped by 25.5% to € 335 million (2012: € 267 million) and profit before tax by 19.9% to € 325 million (2012: € 271 million).

* * *

* Prior year figures partially adjusted in accordance with the revised IAS 19

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 /preferred stock

Statement and presentation by Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG, Annual Accounts Press Conference 2014

Good morning, Ladies and Gentlemen!

The core task of a company is to safeguard its future.

• This means we must ensure that our products and services are always inspiring our customers.
• We need to think ahead and continually take our business model to the next level.
• We also have to remain profitable so we can invest and bring new ideas to life.

Our ambition of the BMW Group is:

• Always to consider the long term in all our planning,
• to follow our own path successfully,
• and to be a pioneer in our industry.

Our business model is clear: Individual mobility in the premium segment. Cars are incredible products, because they benefit people in their daily lives and they reach out and speak to their emotions. More than 76 million cars were sold worldwide in 2013. The global automotive market will continue to grow in 2014.

And the BMW Group was the Number 1 choice for customers in the premium segment around the world.

This is proof that we deliver on our brand promise – whether it be BMW, MINI and Rolls-Royce. This is why the BMW Group has held the lead in the premium segment for about a decade now.

Just recently, BMW was named best corporate brand internationally – in the German brand ranking, ‘Best Brands’. In Fortune Magazine’s ranking list ‘World’s Most Admired Companies’, BMW is the only German company among the
Top 20 of 500 companies. And in the global industry ranking, our company was once again number 1 among automakers.

What you see next to me is the BMW i8.

It embodies our company’s strength: The BMW i8 is not only an attractive plug-in hybrid sports car. It is also the world’s first series vehicle featuring laser light. In the future, a driver will be able to see not 300, but 600 meters ahead in the dark. And the energy efficiency has increased by 30 percent. This innovation will definitely benefit customer needs. The first BMW i8 cars will be delivered starting in June – in Germany, the US, China, Japan, and other countries. Our dealers all over the world tell us: They will easily be able to sell every single BMW i8 we produce.

Long-term profitable development is one of the key reasons people invest in the BMW Group. As we see it, profitability is a key element of premium. It gives us a firm financial footing. And it provides us with the leeway we need to invest and grow.

I assure you, we will continue to invest in the years to come. This is a commitment to guarantee the future of our company. BMW will turn 100 in 2016. Our vision laid out in the Strategy Number ONE leads up to the year 2020.

At the BMW Group, we have always based our decisions in long-term thinking. What will customers expect of a mobility company ten or twenty years from now?

That’s what we are always asking ourselves, because the aspirations and needs of our present and future customers always come first.

There are three points I’d like to talk about today:

1. How did we perform in the business year 2013?
2. What are our targets for 2014?
3. How can we ensure our long-term success in an
   ever-changing environment?

Let’s look at our performance:

We generated a profit during the global financial and economic crisis during 2008 and 2009 and paid a dividend. Subsequently, the BMW Group achieved four consecutive record years.

Our sales figures in the year 2013 prove that we continue to develop our business success:

• BMW Group: 1.96 million cars.
• BMW brand: 1.66 million cars.
• MINI brand: over 305,000 cars.
• Rolls-Royce brand: 3,630 cars.
• BMW Motorrad: over 115,200 motorcycles.

These figures set new records for all our brands. We offer our customers a complete range in the premium segment: from MINI to Rolls-Royce. In our core brand BMW we were number 1 in four segments: the 3 Series, 5 Series, 6 Series and the BMW X1.

In 2013, the BMW Group enhanced the spectrum of its core brand:

• On the one hand, there is BMW i with its extremely
  sustainable cars.
• On the other, there is BMW M with its efficient,
  high-performance models.

BMW, BMW i and BMW M have one thing in common: Sheer driving pleasure. It is sheer driving pleasure that our customers expect from us and it’s what we will continue to offer them in the future.

Valuable premium brands and desirable products also underscore our 2013 key financials:

• Group revenues stood at EUR 76.1 billion.
• We recorded a profit before tax of EUR 7.9 billion. Just as previously announced, this was on par with the result of 2012.
• The net profit rose to EUR 5.3 billion. This is the highest net profit in the history of the company.
• The EBIT margin for the Automobile segment remained within our expected profitability range.
• Our financial services business made a significant contribution to our success, posting another record result.

So one thing is clear: We deliver on our promises – and we hit all our targets for 2013. I know that our associates identify with our company and our products. And it is this passion and relentless drive to create premium products that unites us all.

On behalf of the Management Board, I would like to thank all of our associates for their great commitment during 2013. It is their dedication that strengthens our company’s reputation, not only today but in the future. As a result, they too participate in the company’s success. This is, and will remain, a part of our corporate culture.

All permanent staff in Germany will receive a profit-related bonus for the year 2013. This is the highest profit-related bonus we have ever paid to our associates. And it is also one of the highest compared across sectors and industries.

Ladies and Gentlemen,

we will strive to grow further. To achieve this, enhancing expertise in future technologies such as e-mobility and lightweight construction plays an important role. First off, we offer extensive training to our associates: Since 2007, we have invested close to EUR 1.5 billion in vocational training and professional development programs.

This is key to us remaining an attractive employer. In addition, we recruit new talent – a total of over 7,000 worldwide last year. 4,500 of our new hires were recruited here in Germany. This figure includes 1,700 temporary workers we have switched over to permanent positions.

At the start of the 2013 training year, 1,363 young people began their professional careers with the BMW Group. This is to safeguard our own future. And shows how we take responsibility for future generations.

Ladies and Gentlemen,

the roots of our company are here in Munich and in Germany. Today, the BMW Group is a globally active corporation.

• We sell our products in more than 140 countries.
• We build our vehicles at 28 production sites in 13 countries.
• Wherever we operate, we work in partnership with the region.

Our goal is to improve our understanding of our customers in all regions of the world even further. This is why the diversity of our customers is also reflected within our company. We take great care to ensure we have a variety of talent on board. Today over 90 nations are represented within the BMW Group. Such diversity makes us strong.

As does having common values – based on our tradition, on our innovative strength and on our culture of cooperation. This sets the BMW Group apart from the competition.

Let me move on to my second point:

What are our targets for 2014?

In our Strategy, we announced that we would sell over two million cars by the year 2016. We are going to meet this target earlier than planned.

Our targets for this business year are as follows:

1. We are aiming for a significant increase in deliveries. To be precise, a new Group sales record of over two million cars.
2. We will remain the world’s leading premium car company.
3. Group profit before tax is expected to achieve a new record significantly beyond the previous year’s level.
4. We are striving to maintain an EBIT margin in the Automobile segment in a target range of 8 to 10 percent.

As you can see, we remain very confident about the business year 2014. In the first two months of the year, we have already sold around 274,000 cars – more than any of our competitors. This is the best start to a year we have ever had.

Just like you, we closely follow global political and economic developments.
The world is very fragile. And only one thing is certain: Things can change very quickly, at any time. So it is important to have a long-term strategy – as a guideline for our own development within such a volatile environment. Our strategy enables us to clearly assess the numerous risks and uncertainties in our business and to respond accordingly.

We regard challenges as opportunities – taking us towards the success of tomorrow. And a clear example of this is Efficient Dynamics. More than a decade ago, we set the technological foundation for our competitive advantage.

Today, the BMW Group’s fleet includes 39 models with CO2 emissions of less than 120 grams per kilometer.

• In 1995, our European fleet average still stood at 210 grams of CO2 per km.
• In 2013, it was 133 grams of CO2 per km – a reduction of 37 percent.
• By 2020, we want to reduce our fleet’s CO2 emissions by half from their 1995 level.

This brings me to my third point:

How can we ensure our long-term success in an ever-changing environment?

Being a pioneer means more to us than simply achieving positive financial figures. A company that wants to remain successful in a changing world needs to break new ground while remaining true to its principles.

For us, three elements are essential:

1. Balanced growth.
2. Innovation.
3. Sustainable action.

In the world’s three largest regions – Europe – Asia – America – we are aiming at a balanced sales distribution. In 2013, we were able to compensate for the weakness of some European markets by further growth in the US and China. Our two largest individual markets, China and the USA, accounted for a share of about 20 and 19 percent respectively of Group total sales; our home market Germany for around 13 percent.

In our efforts to tap into high-potential markets, we act in line with a sound principle: Production follows the market. In 2014, we are strengthening our global presence.

• In the USA, our Spartanburg plant is celebrating its 20th anniversary. Since 1994, we have more than quadrupled our sales in the US. Today, BMW is the largest exporter from a NAFTA country. Starting this year, our Center of Competence for the BMW X models will also build the new X4. Last year, we manufactured 300,000 cars at the site. The US will stay a market with great potential for us. This is why we are evaluating the possibility of increasing capacity in the US.
• In China, we expanded our production capacity in 2013 by up to 300,000 cars. In the medium term, we are able to increase production up to 400,000 cars annually if needed. Together with our joint-venture partner Brilliance, we are planning a new engine production site, due to open in 2016.
• Then there is Brazil: In the fall of 2014, our new plant in this growth market will go on stream, following a considerable growth in sales in 2013. We are planning to build up to 30,000 units annually at this site. To achieve this, we are investing over 200 million Euros and are creating around 1,300 jobs.
• And in the Netherlands: From the summer of 2014, the new MINI will also be produced by our partner, VDL NedCar.

The continuous investment in innovations ensures our long-term success.

BMW i is an example of our innovative strength in several areas:

• The vehicle concept consisting of a Life module and a Drive module.
• The industrialization of carbon fiber in large-series production.
• And the application of especially sustainable production procedures.

The BMW i3 is currently being launched in various markets. Customer demand is exceeding our expectations. By the summer, it will be introduced in the US, currently the most important market for electric cars.

To date, we have invested EUR 600 million in our E-Mobility network thus creating 1,500 jobs. The comprehensive use of carbon fiber underscores our leading position in the field of lightweight construction. We are planning to apply this expertise also in other series models in the future.

We believe the electric motor is a future technology for zero-emission driving in urban areas. Battery technology will continue to progress.

Our eDrive technology brings together the following technologies today: electric drive trains and low-emission plug-in hybrids such as the BMW i8.

When it comes to emission-free long-distance driving, however, electric cars featuring hydrogen fuel cell technology offer great potential. Alternative drive technologies are key towards meeting the global CO2 targets in 2020.

And the same is true for our products in the premium small car and compact car segments within BMW and MINI. There is strong growth potential in the smaller vehicle segments, especially in Europe, and we plan to capitalize on this potential. So, the share of smaller cars in the global sales volume of the

BMW Group will increase. And we must ensure that this growth also remains profitable.

In the future, we are going to produce our vehicles on two types of architecture:

• one for rear-wheel and four-wheel drives for BMW models and
• one for front-wheel and four-wheel drives for BMW and MINI.

This will enable us to achieve:

• synergies between the BMW and MINI brands;
• the application of standardized module kits;
• cost savings throughout the entire process chain.

Ladies and Gentlemen,

the most recent example of how we strategically address new customers and break new ground is the BMW 2 Series Active Tourer. It is the BMW brand’s first model with a front-wheel drive. In order to offer the customer greater functionality and flexibility, front-wheel drive is the best solution for this car. It will be available from the fourth quarter 2014. Without a doubt, the BMW 2er Active Tourer will offer sheer driving pleasure in this segment.

All in all, our customers can look forward to 16 new models and model updates this year.

• The BMW 2 Series Coupé is even more dynamic than its 1 Series predecessor. It was launched at the beginning of the month.
• The BMW 4 Series Convertible can be driven all year round. It arrived at the dealerships in early March, right in time for the start of the convertible season.
• The BMW 4 Series Gran Coupé will be available from June on. It is the latest member of our new BMW 4 Series.
• The new BMW X3 sets a new benchmark for interior quality. It will be available in April.
• From July 2014 on, the new BMW X4 will build on the great success of the X family in the premium mid-size segment.
• The new M3 Sedan and the M4 Coupé will be the new benchmark for competitors. The launch of these two M models is scheduled for June.
• The new MINI blazes the trail for the future of MINI.
• The MINI Clubman Concept shows us a glimpse of the possible future development of MINI: a lot more space, a lot more fun.
• With the Ghost Series II, Rolls-Royce has gently revised both the exterior and the interior of its successful model – fully in keeping with the brand’s exclusive heritage.

Ladies and Gentlemen,

our vision for the year 2020 is: To be the leading provider of premium products and premium services for individual mobility. Even today, we are much more than just a manufacturer. We are clearly moving towards being a provider of attractive mobility and connectivity services.

This is what BMW ConnectedDrive and DriveNow stand for. With the realignment of the BMW ConnectedDrive services, BMW is extending its position as the leading provider of in-car online-based services.

Our focus is on:

• driver assistance systems including comfort and safety features and
• services, in other words: infotainment and mobility services.

Our car-sharing program, DriveNow, is a success, especially with the younger generation. Over 230,000 users have already signed up in five German cities and in San Francisco. The DriveNow fleet also includes 130 fully-electric BMW ActiveE cars. We are going to expand DriveNow to more cities in Europe and
the US.

As a leader in our industry, we believe we need to act as a role model in terms of sustainability. It is a crucial factor in achieving long-term success. By 2020, we plan to reduce the resources needed to produce each vehicle by 45 percent compared with 2006.

Ladies and Gentlemen,

for us at the BMW Group, driving innovation and maintaining our financial strength are essential to our long-term success.

In 2016, BMW will mark its 100th anniversary – a historic milestone. I promise, we will not be looking in the rear-view mirror but focusing on the road ahead. We will be starting from pole position in creating and defining future mobility.

Thank you very much!

Statement and presentation by Dr. Friedrich Eichiner, Member of the Board of Management of BMW AG, Finance, Annual Accounts Press Conference 2014

Ladies and Gentlemen,

A warm welcome from my side as well.

The BMW Group is the world’s most successful premium manufacturer. Last year, the company was able to consolidate its global position, despite a challenging market environment in Europe. Outside of Europe, however, the BMW Group reported strong sales gains: For the first time, we delivered more than half a million vehicles in Asia in one year – almost 580,000 units. Sales also increased in the Americas – and the US, in particular – to more than 463,000 premium vehicles. This sales success underscores our strategy of balanced growth worldwide.

Our focus in 2013 was on enhancing the company’s future competitiveness. The recently launched BMW i3 and its revolutionary concept underline our role as a pioneer of electric mobility. We will continue to build on our innovative strength. To achieve this, we earmarked more funds towards capital expenditure and R&D in 2013.

The main focus of this spending was on:

• series development of new models,
• further development of our efficient combustion engines, and
• alternative drive technologies.
• We also invested in making our sales channels more customer-focused.

In 2013, we again saw dynamic growth accompanied by high profitability.

At Group level, our efforts resulted in a pre-tax return on sales margin of 10.4%, based on pre-tax earnings. Our earnings performance remained at the same level as the previous year. The BMW Group’s pre-tax earnings totalled € 7.91 billion – a slight increase of 1.4% year-on-year, in line with our guidance: We had forecast that Group earnings for 2013 would be on a similar scale to those reported in 2012.

A strong fourth quarter contributed to our successful financial results, with the highest quarterly unit sales in the history of the company. At € 20.21 billion, BMW Group revenues were slightly lower compared to the same quarter 2012. Revenues were impacted negatively by foreign currency conversion. Group pre-tax earnings of € 1.89 billion were 7.3% higher than for the same quarter last year.

With an EBT margin of 9.3%, the fourth quarter of 2013 exceeded our expectations. The Automotive segment reported an EBIT margin of 9.2%. We were able to achieve this level of profitability despite extensive up-front investments in future projects and challenging market conditions in Europe.

With total capital expenditure of € 6.69 billion for property, plant and equipment and intangible assets, the company is providing the basis for future growth and long-term innovative excellence. We made product and structural investments in series production of BMW i models in Leipzig, Dingolfing and Landshut. The upcoming 2 Series Active Tourer, based on the new front-wheel-drive architecture, and the 4 Series, with three derivatives, are further examples of product investment. We also invested in equipment and ramp-up for new MINI derivatives.

The BMW Group also expanded its global production network in specific areas: At our US plant in Spartanburg, South Carolina, we expanded production facilities for the X4 and the up-coming X6. Spartanburg currently manufactures most of the BMW brand’s SAV models. Over the past ten years, the plant has built around 2.5 million BMWs. We are also considering increasing the plant’s capacity. Located in the world’s largest premium market, it is a decisive factor in the success of the BMW Group.

We also made structural investments in our new plant currently under construction in Brazil. In 2013, our Chinese joint venture also began construction of a new engine plant that will supply local vehicle production from 2016 onwards. Total investment included capitalised development costs of € 1.74 billion. At 36.4%, the capitalisation ratio was higher than the previous year.

This increase can be accounted for by the larger number of vehicles in series development. In previous years, the capitalisation ratio was slightly lower, since development expenses for BMW i products were reported directly in our income statement. In 2013, the BMW Group’s capex ratio stood at 8.8% of revenue in 2013, exceeding our capex target of below 7%, as previously announced.

The BMW Group’s growth is set to take on a new dimension. Our capital expenditure is gearing our production network towards higher total capacity and an expanded model line-up.

A total of 12 new and four revised models will be released onto the market in 2014. The BMW Group now has one of the youngest product line-ups in the premium segment. New models will ensure that this momentum continues.

We expect our capex ratio to be lower in 2014, moving closer to our capex target of below 7% of revenue. This will remain our guidance for the period up to 2016.

Let’s take a look at our research and development expenditure: In 2013, the BMW Group spent € 4.79 billion on research and development – an increase of 21.3% compared with the previous year. As a result, the R&D ratio (HGB) rose to 6.3%, as forecast. We are working hard in preparation for stricter CO2 requirements after 2015, which represent a major challenge for us. We are responding early and will continue to be a pioneer in this field. We maintained our dual-track approach in 2013: on the one hand, refining our combustion engines to make them even more efficient and competitive; on the other, forging ahead with our development of new and alternative drive technologies.

The most important aspect here is e-mobility. In this area, we are refining both battery and fuel cell technology. This will allow us to offer emission-free driving for different ranges over the medium term. Our goal is to maintain the BMW Group’s leading position in technology and efficiency in the future. This is a central aspect of our premium concept. Lightweight construction and intelligent in-car connectivity were further focal points. We expect our R&D ratio to be lower in 2014, closer in line with our target of 5-5.5% of revenue – which we are able to confirm for the period up to 2016.

We also want our investors to share in the success of the BMW Group. At this year’s Annual General Meeting, the Board of Management and Supervisory Board will propose a dividend of € 2.60 per share of common stock and

€ 2.62 per share of preferred stock for the 2013 financial year. In each case, this represents an increase of 10 cents over the previous year. It is the highest dividend ever paid.

The resulting dividend payment totals € 1.71 billion. 32.0% of our net profit for the year will therefore be paid out to shareholders. This means that our shareholders are currently earning a dividend yield of roughly 3.1% – or 4.1% for preferred stock. I would now like to talk in a little more detail about performance in the individual segments. First, the Automotive segment.

In 2013, Automotive segment revenues were on par with the previous year at € 70.63 billion, although negatively impacted by adverse foreign currency conversion. Adjusted for these effects, revenues increased by around 3.5%. Our business in Europe was also impacted by challenging market conditions. 44% of our total sales volume originated here in our largest sales region. The general weakness in demand in Europe spurred more intense competition. EBIT in the Automotive segment totalled almost € 6.66 billion – a decrease of 12.4% from the previous year. At 9.4%, EBIT margin for the segment remained within our target range of 8-10%, as forecast.

Here you can see the 2012 to 2013 reconciliation bridge. We were able to achieve a high level of EBIT, despite challenging conditions. Raw material and currency headwinds dampened earnings by € 214 million. Positive volume effects were overshadowed by intense competition in European markets. Changes to the sales mix impacted segment EBIT and depreciation also had a negative effect. The balance from efficiency gains, up-front investments and higher personnel costs is recorded under the item “Other changes”. Increases in efficiency partly offset higher impact for future projects.

If R&D spending, which rose by € 840 million (calculated in accordance with the German Commercial Code – HGB) is included, our investment in future projects totalled more than €1 billion. The EBIT margin of 9.4% in the Automotive segment does not take full account of our operating result in China: The at-equity result of our BBA joint venture is reported in our financial result. If this amount were included, our EBIT margin would be exactly 10.0%.

Free cash flow in the Automotive segment totalled almost € 2.5 billion in 2013. This was lower than the previous year, due to the € 1.5 billion increase in capital expenditure.

Nevertheless, at this solid level, we will be able to pay the previously mentioned € 1.71 billion total dividend from our free cash flow – fully underlining our operating and financial strength.

We expect an increasing free cash flow in 2014, despite further capital expenditure planned. The free cash flow should move closer to € 3 billion. We are maintaining our target of more than € 3 billion over the medium term and should be back at this level by 2016.

The BMW Group’s liquidity position once again remained extremely solid in 2013. At the end of the year, Group liquidity totalled € 10.72 billion. This assures the BMW Group the financial flexibility it needs for its operating business and growth.

For the first time, the Financial Services segment exceeded the four-million mark in 2013, with a portfolio of 4.13 million financing contracts. A total of 1.47 million new contracts with customers were concluded in this segment in 2013 – an increase of 9.7% over the previous year. Overall, Financial Services leased or financed 44% of new BMW Group vehicles. The penetration rate was therefore 3.6 percentage points higher than the previous year. This increase reflects the dynamic performance of our Financial Services business in 2013, despite the volatile market situation. BMW Financial Services made its strongest gains in the Asia/Pacific region, with a 23.6% increase in contract portfolio. In the Europe/Middle East region, the segment posted growth of 8.8%, while business in the Americas increased by 5.5%.

Financial Services reported pre-tax earnings of € 1.64 billion and was able to increase earnings by 5.0%. The total business volume, as disclosed on the balance sheet, climbed to € 84.35 billion – an increase of 4.2% from 2012. The Financial Services segment achieved a return on equity of 20.2% in 2013, meeting our RoE target of at least 18%.

Our balance sheet equity ratio stood at 9.1% at the end of the financial year, maintaining our solid capital equity position. The core capital ratios of regulated companies within the segment were even in the double-digit percentage range.

The Financial Services segment once again profited from attractive refinancing conditions in 2013. Owing to its financial strength and limited risk, the BMW Group was able to further improve its rating in December and is currently the only European automotive manufacturer with a long-term A+/Outlook Stable rating from Standard & Poor’s. The Group has a broadly diversified mix of refinancing instruments at its disposal. Worldwide access to capital markets and a high credit rating ensure optimal utilisation of financial resources.

I would like to highlight a few of our BMW Financial Services’ business activities.

• Our fleet services provider, Alphabet International, managed more than 535,000 fleet contracts in the 2013 financial year. Alphabet operates primarily in Europe, where it is the fourth-largest fleet management company. Its dynamic business development continued in 2013.
  Alphabet successfully integrated the first BMW i3s into corporate fleets last year as part of its AlphaElectric holistic e-mobility solution. With this comprehensive service range, Alphabet is both a pioneer and major contributor towards making electric driving accessible to customers across Europe.
• The expansion of the BMW Bank was completed in 2013. The Italian subsidiary was the last to be integrated as a branch of the BMW Bank. The German BMW Bank now encompasses all our activities in the European markets of Germany, Italy, Portugal, Spain and France.

BMW Financial Services benefitted from the stable risk situation in 2013. The credit risk situation continued to stabilise, thanks to the more positive development of the global economy. The credit loss ratio for our portfolio fell to 0.46% – two basis points lower than last year and back at its level before the financial crisis.

Residual values for our off-lease vehicles also continued to improve. Used car prices trended upward slightly overall – with the exception of Southern Europe, which only stabilised at a low level. Average losses from residual value risks thus decreased. Financial Services made comprehensive risk provisions in 2013. Based on current assumptions, the segment appears well prepared for potential increases in credit and residual value risks. We expect the risk environment to remain largely stable, but cannot rule out higher volatility.

BMW Financial Services has set itself further growth targets for 2014, and will consolidate its worldwide product and service activities for individual mobility.

Let’s move on to our Motorcycles segment. BMW Motorrad celebrated its 90th anniversary in 2013. In its anniversary year, the brand reported for the third time in a row an all-time sales high. Deliveries increased by 8.3% to more than 115,000 units, despite a downward trend in the segment above 500 cc. Even in the challenging European market environment, BMW Motorrad was able to increase deliveries slightly, and made strong gains in Germany. The brand reported double-digit growth in a number of overseas markets, including the United States.

At the same time, motorcycle production got underway at a second location outside of Germany last year. Now, BMW motorcycles are also built for the local market at the BMW plant in Rayong, Thailand.

The Motorcycles segment reported higher revenues and EBIT than the previous year, which had been impacted by the sale of Husqvarna: EBIT reached € 79 million and the EBIT margin climbed to 5.3%.

BMW Motorrad will continue its product offensive in 2014. For the first time, our brand will also have a pure-electric vehicle, the C evolution maxi-scooter, on the market. Five other new models we presented last autumn will be launched this year, including the R nineT anniversary edition; the S 1000 R naked sport bike, the touring bike R 1200 RT and the R 1200 GS Adventure as a variant of our successful long-distance enduro. Another new release will be the K 1600 GTL Exclusive. With these attractive new models, BMW Motorrad is targeting sustained growth in its core segment and in the field of urban mobility.

Let’s finish with a look at Eliminations. Inter-segment profits, mainly between the Automotive and Financial Services segments, are eliminated under this item. The impact on pre-tax results from eliminations was a negative € 527 million. This result represents an improvement of € 410 million from the previous year, largely due to eliminations of intragroup profits on leasing contracts.

The BMW Group has set itself ambitious growth targets for 2014 and strives to remain the world’s leading premium car company: Our new models and the dynamic market environment in North America and China will provide positive momentum in sales volumes. A steady upward trend is forecast for the European automotive markets – although our business development could be affected if this fails to materialise. But, overall, we expect our positive business development to continue in 2014.

In line with the new standard regarding the combined management report, I would now like to qualify our business expectations in a little more detail. The new DRS 20 standard, established by the German Accounting Standards Committee, concerns primarily the forecast and risk and opportunities report. It requires more accurate forecasting during a shorter forecast period and a more precise guidance on anticipated changes in our key performance indicators.

Assuming economic conditions remain stable, Group profit before tax is expected to be significantly up on the previous year’s figure. As long as economic conditions remain consistent, we anticipate a significant rise in deliveries to a new high level. Our planning is based on a steady recovery in the European markets, as forecast, with significant growth in markets outside of Europe, including high single-digit growth in North America and low double-digit growth in China.

Our guidance could be changed if this does not occur. As a result of the large number of model launches, we expect sales in the second half of 2014 to be higher than in the first six months. Automotive segment revenues are expected to increase significantly in line with demand in 2014. However, currency factors could have a negative impact on revenues.

In the Automotive segment, despite high up-front investments and capital expenditure, we aim to achieve an EBIT margin within our target range of 8-10%. We are sticking to our targets. However, if political or economic conditions become less favourable, actual margins could be below the targeted range.

In the Financial Services segment, we expect our return on equity for 2014 to remain at at least 18%, as in previous years. Based on current planning, however, we forecast a slight decrease in return on equity compared with the previous year, as we make the necessary investments for further growth in this segment. From today’s perspective, it appears that the segment has made adequate provisions for the risks associated with financial services business.

Our BMW Motorrad business should continue its positive development in 2014. Despite persistently challenging market conditions, we expect that deliveries of BMW motorcycles are slightly up on the previous year. Our attractive new model line-up will contribute to this.

The guidance assumes that overall political and economic conditions remain mostly stable. Further risks stem from the continued high levels of national debt in certain countries and the economic slowdown in emerging markets. Latest signals show a substantial increase in volatility on currency markets. The uncertainties in the emerging markets may have an impact on our sales volume.

The BMW Group looks towards the future with confidence. Our strong premium brands and attractive products place us in a position of strength. We are taking the necessary measures today to remain not only competitive in the future but to expand our role as technology leader in the premium segment. This is what sets the BMW Group apart from the competition.

Thank you.

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