+++ 1st half-year: Group EBT totals € 16.2 billion (EBT margin: 24,5%) +++ 1st half-year: EBIT margin Auto of 8.5% (excluding consolidation effects related to BBA: 12.6%) +++ 2nd quarter: Free cash flow of €3 billion in Auto Segment +++ Annual outlook for EBIT margin in auto segment confirmed: 7-9% +++ BEV sales more than double in 1st half-year (+110.3%) +++ Persistent supply bottlenecks ‒ solid sales volume growth in 2nd half-year yoy expected +++ Zipse: “High degree of resilience and flexibility” +++ NEUE KLASSE defines what BMW Group stands for +++
Munich. In a highly volatile environment, the BMW Group remained on course in the first half of 2022. With flexibility and expertise, the company encountered challenges including continued supply chain disruptions and bottlenecks for semiconductors and specific supplier parts.
The BMW Group’s underlying strength and operational excellence was reflected in its profits for the first six months: Despite the volatility, the company earned a Group EBT margin of 24.5% (Q2 2022: 11.3%). The revaluation of the previously held shares in the Chinese joint venture BMW Brilliance Automotive Ltd. (BBA) contributed to the high return. This revaluation due to full consolidation on February 11 increased the financial result by € 7.7 billion
+++Group half-year sales reach 1,160,443 units+++75,891 all-electric BMW and MINI vehicles sold+++BMW Group expands market leadership of premium segment+++Pieter Nota: “BMW brand number one worldwide in premium automotive segment in first half-year”+++
Munich. The BMW Group sold a total of 75,891 fully-electric BMW and MINI vehicles worldwide in the first half of 2022 – more than doubling its all-electric sales compared to the same period of last year (+110.3%). This growth underlines the company’s focus on ramping up electromobility and confirms the high desirability of its pure electric models among customers worldwide.
“Despite a very challenging environment, we were able to more than double our sales of fully-electric vehicles worldwide in the first half of the year,” said Pieter Nota, member of the Board of Management of BMW AG responsible for Customer, Brands, Sales. “It’s not just our electrified models that are inspiring customers around the globe: Thanks to our innovative and sustainable product line-up, the BMW brand was once again number one worldwide in the premium automotive segment in the first half of the year,” Nota continued.
Repurchased Shares to be largely cancelled, reducing share capital accordingly
Munich. Bayerische Motoren Werke Aktiengesellschaft (BMW AG) has resolved on a share repurchase programme with a value of up to €2 billion (total purchase price excluding ancillary costs), repurchased shares to be largely cancelled, reducing share capital accordingly. This was approved at the Annual General Meeting in May 2022, authorising a share buyback of up to 10% of the share capital within five years. The first programme of €2 billion is set to begin in July 2022 and end no later than December 2023.
Nicolas Peter, member of the Board of Management of BMW AG responsible for Finance: “The share repurchase is evidence of our consistent financial strength and robust liquidity. With our strong operating performance and the full consolidation of our Chinese subsidiary, BMW Brilliance Automotive Ltd., we expect to maintain a strong liquidity position. Our strong investment-grade rating is an important success factor in our transformation story, and we are clearly committing ourselves to maintaining this rating. In addition, all our shareholders – including employees – benefit not only from our reliable dividend policy, but also from this share buyback programme, by an increase in their earnings per share. Share buybacks provide an additional tool to create value for our shareholders and send a signal of our long-term strength to the capital markets. We continue to focus on the successful long-term growth of the company and on optimal allocation of capital. As in the past, the investments needed for the transformation of the BMW Group continue to be a priority and will be funded from operating cash flow.”
Why invest in BMW?
FIRST-CLASS INDIVIDUAL MOBILITY – We play a pioneering role in setting standards for the individual premium mobility of tomorrow. It combines pleasure and responsibility without compromise.
SUSTAINABILITY – The BMW Group is a holistically sustainable company taking responsibility for sustainable future mobility. Every investment in BMW is a sustainable investment.
INNOVATION & FLEXIBILITY – The BMW Group is an innovation pioneer in the automotive industry. Our business model is based on constant transformation and flexibility – successful for over 100 years.
ELECTRIFICATION – Due to our flexibility and permanently transformed plants, we will have a convincing battery-electric vehicle offer covering 90% of our current market segments from 2023.
DIGITALIZATION – We set standards in the digitalization and connectivity of our vehicles and use our competitive edge in remote software upgrades.
FINANCIAL PERFORMANCE – We offer financial stability due to our strong balance sheet and industry-leading credit ratings*. We set ambitious profitability and cash flow targets and are a reliable dividend payer.
*Best credit rating in Europe, second best credit rating worldwide
BMW Group Sales Distribution as of 30.06.2022.
AUTOMOTIVE DELIVERIES BMW GROUP.
BMW, MINI & ROLLS-ROYCE.
Retail sales as of 30.06.2022.
EBIT MARGIN AUTOMOTIVE SEGMENT.
EBIT automotive segment 4,499 mn. €
EBIT automotive segment 2,162 mn. €
EBIT automotive segment 9,870 mn. €
EBIT automotive segment 4,830 mn. €
CAPITAL EXPENDITURE RATIO.
Capital expenditure 5,650 mn. €
Capital expenditure 3,922 mn. €
Capital expenditure 5,012 mn. €
Capital expenditure 2,929 mn. €
RESEARCH & DEVELOPMENT RATIO (HGB).
Research and development expenditure (HGB) 6,419 mn. €
Research and development expenditure (HGB) 6,279 mn. €
Research and development expenditure (HGB) 6,870 mn. €
Research and development expenditure (HGB) 2,942 mn. €
DIVIDEND FOR THE FINANCIAL YEARS 2018 - 2021.
(PER ORDINARY STOCK IN €)
CO2 EMISSIONS New car fleet Europe.
* Proposal by the Board of Management
** To improve year-on- year comparability, the 2020 NEDC figures were converted to WLTP after adjusting for permissible flexibilities – specifically from 99 g CO2 / km according to NEDC (including 5 g CO2 / km phase-in, 7.5 g CO2 / km supercredits and 2.4 g CO2 / km eco-innovations) to 135 g CO2 / km according to WLTP (excluding flexibilities). In 2020, a phase-in regulation was accepted, as was the recognition of supercredits. As of 2021, these two simplifications no longer apply for the BMW Group.
*** Flexibilities as defined in the regulatory requirements for 2021 are as follows: eco-innovation with 1.7 g CO2 / km (WLTP).
OUTLOOK FOR THE BMW GROUP IN 2022.
- Profit before tax: significant increase
- Workforce size at year-end: significant increase
- Share of women in management positions in the BMW Group: slight increase
- Deliveries to customers: slight increase
- EBIT margin: between 8 and 10%
- Return on capital employed: between 19 and 24%
- Deliveries to customers: slight decrease
- Share of electrified vehicles in deliveries: significant increase
- CO2 emissions new vehicle fleet EU1: slight decrease
- CO2 emissions per vehicle produced: slight decrease
- EBIT margin: between 7-9%
- Return on capital employed: between 14-19%
FINANCIAL SERVICES SEGMENT.
- Return on equity (RoE): between 17 and 20%
1 EU-27 countries including Norway and Iceland; with effect from 2021, values are calculated on a converted basis in line with WLTP (Worldwide Harmonised Light Vehicle Test Procedure).
The outlook does not factor in the following:
— A significant further tightening of sanctions on Russia and/or countermeasures by Russia
— An interruption of gas supplies from Russia, leading to supply restrictions to the production facilities of the BMW Group and its suppliers
— An escalation of the conflict outside Ukraine
— Further significant and lengthy pandemic-related lockdowns
Uncertainties have continued to grow during the year, making it extremely difficult to accurately forecast outcomes for the twelve-month period as a whole.