Investor Relations

Investor Relations.

+++ Approvals granted for commissioning of production in Parsdorf +++ Near-standard production of samples for next-generation battery cells +++ Start of production in late 2022 +++

 

Munich/Parsdorf. The BMW Group will open its Cell Manufacturing Competence Centre (CCMC) in the autumn. With the immission control approval procedure now completed, the necessary conditions are in place for commissioning of near-standard production of lithium-ion battery cells at the competence centre in Parsdorf, outside of Munich. In an area spanning around 15,000 square metres, the BMW Group will demonstrate industrial feasibility of future generations of high-performance battery cells. The pilot line at the competence centre will make it possible to analyse and fully understand cell value creation processes. This will enable future suppliers to produce cells to the BMW Group’s own specifications and thereby further optimise battery cell production with regard to quality, output and costs. The company is currently ruling out the option of establishing its own large-scale battery cell production.

Markus Fallböhmer, head of Production Engines, E-Drives at the BMW Group: “The Cell Manufacturing Competence Centre in Parsdorf is the next logical step towards penetrating all aspects of the battery cell value chain. Following successful implementation of the Battery Cell Competence Centre (BCCC), we are now focusing on the production processes. We are validating the manufacturability of lithium-ion battery cells for large-scale standard production, with regard to quality, efficiency and costs.”

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+++ Zipse: “Strength and resilience of BMW Group particularly evident in challenging environment” +++ Group EBT rises to € 12.2 billion +++ Free cash flow of € 4.8 billion in auto segment +++ BEV sales increased by almost 150% +++ Guidance confirmed despite high volatility +++

 

Munich. The BMW Group further strengthened its competitive position as well as its profitability in the first quarter of 2022, thanks to sustained high demand for its premium vehicles.

The company’s quarterly financial statements also include positive effects from the full consolidation of the Chinese joint venture, BMW Brilliance Automotive Ltd (BBA), as previously announced.

Even without these effects, margins of BMW Group were strong – a proof point of its financial strength in a volatile economic and geopolitical environment. The Group's earnings return before taxes (EBT margin) was 39.3% in the first quarter (2021: 14.0%). Without the revaluation of the existing stake and consolidation effects arising from BBA’s full consolidation, the Group's return on sales achieved 18.4%.

The automotive segment showed a similarly strong performance in the first three months: The EBIT margin in the Automotive segment was 8.9% (2021: 9.8%) and thus at the upper end of the target range for 2022. Excluding the consolidation effects, the EBIT margin amounts to 13.2%.

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+++ Two strong pillars: BMW Group and Mercedes-Benz Mobility further develop mobility joint ventures in a targeted manner +++ Strengthening multi-mobility: FREE NOW as the leading multi-mobility app in Europe will continue to grow +++ The joint venture for electric charging services, CHARGE NOW, is planning further cooperations +++ The mobility joint ventures had 30% more transactions in the first quarter of 2022 compared to the same quarter of the previous year +++

 

Stuttgart/Munich, May 3, 2022. Mercedes-Benz Mobility and BMW Group intend to sell their joint venture SHARE NOW to Stellantis. The three companies recently signed an agreement to this effect and agreed not to disclose the details of the transaction. It is also subject to the approval of the relevant antitrust authorities.

The sale of the car-sharing subsidiary contributes to the realignment of the mobility joint ventures: In the future, shareholders intend to concentrate on two central business areas with high growth potential: digital multi-mobility (FREE NOW) and digital services related to the charging of electric vehicles (CHARGE NOW).

Gero Götzenberger, Director of Strategy and Investments at Mercedes-Benz Mobility: "We are proud to have founded the free-floating car sharing segment with car2go. Although Mercedes-Benz will focus more strongly on its core business in the luxury segment, car sharing will remain an important part of urban mobility and an essential element in the mobility offer at FREE NOW. With FREE NOW and CHARGE NOW, we are focusing on two growth segments that will continue to offer our customers the entire range of mobility services in the future and support the expansion of electric mobility."

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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 31.03.2022.

DIVIDEND FOR THE FINANCIAL YEARS 2018 - 2021.
(PER ORDINARY STOCK IN €)

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 Vehicles Test Procedure). Values from 2017 to 2020 according to New European Driving Cycle (NEDC).

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).

MANAGEMENT SUMMARY.
OUTLOOK FOR THE BMW GROUP IN 2022.

BMW Group.

  • Profit before tax: significant increase
  • Workforce size at year-end: significant increase
  • Share of women in management positions in the BMW Group: slight increase

MOTORCYCLES SEGMENT.

  • Deliveries to customers: slight increase
  • EBIT margin: between 8 and 10%
  • Return on capital employed: between 19 and 24%

AUTOMOTIVE SEGMENT.

  • Deliveries to customers: in line with last year's level
  • 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 14 and 17%


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 tightening of sanctions against Russia and / or countermeasures by Russia
— An escalation of the conflict outside Ukraine
— A significant prolongation or extension of the pandemic-related lockdown in China
Regardless of these uncertainties, however, the situation remains highly volatile, making it extremely difficult to accurately forecast outcomes for the financial year 2022. Other possible longer-term effects of the war and further restrictions in connection with the coronavirus pandemic in China cannot be estimated at the present time and are therefore not taken into account in the outlook.

Bofadeles

Due diligence in the supply chain.

To support our supply chain due diligence, we set mandatory sustainability standards for our suppliers.