Investor Relations

Investor Relations.

+++ Recycling tools at plants in Germany and Austria saves seven tonnes of tungsten per year +++ Lowers energy consumption by 70% and CO2 emissions by more than 60% compared to primary tungsten +++ Wendt: “We will significantly increase the percentage of recycled raw materials by 2030 and use raw materials multiple times in a circular economy” +++

 

Munich. The BMW Group is making raw materials considered to be so-called conflict minerals a special focus of its sustainability strategy. This includes ores where mining or trading is often associated with violations of environmental and social standards. Tungsten is an example of this: Once considered an irritating by-product of tin mining, since it “ate up” the tin ore, it took a few hundred years for carbide’s unique properties to be recognised: heavy like gold, hard as a diamond and dozens of times more heat-resistant than iron. Today, it can be found in the vibration alarm of mobile phones and light bulb filaments, as well as drill and milling bits for industrial machinery used in producing cars.

GO TO ARTICLE

Munich. Based on the progress of the proceedings, BMW AG expects, compared with the statement of objections of 5 April 2019, that the EU Commission will significantly reduce its allegations against BMW AG in terms of content and duration.

The subject matter of the proceedings is whether German automobile manufacturers cooperated in technical working groups to restrict competition in the development and rollout of emission-reduction technologies. The legal conformity of diesel vehicles is not subject of the proceedings. The BMW Group is not and has not been accused of unlawful manipulation of emission control systems.

On 5 April 2019, BMW AG had recognised a provision of around €1.4 billion. Based on the new information, BMW AG continues to consider it more likely than not that the EU Commission will issue a fine to BMW AG. However, the significant limitation in the scope of the allegations has led to a revaluation of the provision. This revaluation will result in a positive effect on earnings of around €1 billion in the second quarter of 2021.

GO TO ARTICLE

+++ 22-inch tyres using certified sustainable natural rubber and rayon, a wood-based material used to strengthen the tyres +++ Plantations certified to standards of independent Forest Stewardship CouncilTM (FSCTM) organisation +++ Wendt: “We are helping preserve biodiversity and forests to counteract climate change” +++

 

Munich. The BMW Group is stepping up its activities in the field of sustainability, becoming the first automotive manufacturer worldwide to equip its cars with tyres using certified sustainable natural rubber and rayon, a wood-based material used to strengthen the tyres. The company will source 22-inch tyres in the first instance exclusively from Pirelli and, from August of this year, will use them in the BMW X5 xDrive45e Plug-in-Hybrid (fuel consumption combined: 1.7-1.2 l/100km (WLTP), 2.1-1.6 l/100 km (NEDC); power consumption combined: 27.7-24.3 kWh/100 km (WLTP), 25.2-23.5 kWh/100 km (NEDC); CO2 emissions combined: 39-27 g/km (WLTP), 47-37 g/km (NEDC)). Certification of the rubber plantations and the complex supply chain for natural rubber and rayon takes place in accordance with the strict standards of the independent Forest Stewardship Council (FSC).

“As a premium manufacturer, we aspire to lead the way in sustainability and take responsibility,” said Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “We have been committed to improving cultivation of natural rubber and increasing transparency in the supplier network since 2015. The use of tyres made of certified natural rubber is a pioneering achievement for our industry. In this way, we are helping preserve biodiversity and forests to counteract climate change.”

GO TO ARTICLE

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

Deliveries to customers BMW, MINI & Rolls-Royce.
In connection with a review of its sales and related disclosure practices, the BMW Group reviewed its sales figures for deliveries and determined that certain deliveries were not reported for the correct time periods. The BMW Group has revised the data for deliveries retrospectively for the previous years. Further information can be found in the BMW Group Report 2020 on page 128 f.

BMW Group Sales Distribution in major regions.
Sales Volume of Automobiles as of 31 March 2021.

DIVIDEND FOR THE FINANCIAL YEARS 2017 - 2020.
(PER ORDINARY STOCK IN €)

In g CO2 / km;
EU including Norway and Island.
Since 2018, adjusted value based on conversion to WLTP (Worldwide Harmonised Light Vehicles Test Procedure) and recalculated to New European Driving Cycle (NEDC).
* Value (internal calculation) takes into account the flexibilities defined in the regulatory requirements: phase-in with 5 g / km, supercredits BEV / PHEV with 7.5 g / km and eco-innovations with 2.4 g / km.

CO2 EMISSIONS New car fleet Europe.

MANAGEMENT SUMMARY.
OUTLOOK FOR THE BMW GROUP IN 2021.

BMW Group.

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

MOTORCYCLES SEGMENT.

  • Deliveries to customers: solid increase
  • EBIT margin: between 8 and 10%
  • Return on capital employed2: significant increase

AUTOMOTIVE SEGMENT.

  • Deliveries to customers: solid increase
  • Share of electrified vehicles in deliveries: significant increase
  • CO2 emissions new vehicle fleet EU1: significant decrease
  • CO2 emissions per vehicle produced: moderate decrease
  • EBIT margin: between 7 and 9%3
  • Return on capital employed2: significant increase

FINANCIAL SERVICES SEGMENT.

  • Return on equity (RoE): between 12 and 15%

Based on adjusted values; for a definition of the forecast ranges, see the glossary BMW Group Report 2020.
1
EU including Norway and Iceland.
2 Unlike the other key performance indicators, the RoCE forecast for the Automotive and Motorcycles segments is based on the change in percentage points.
Including an increase of the corridor of 6-8% by around one percentage point due to the revaluation of the provision for the ongoing EU antitrust proceedings. 

 

Due to the continuing uncertainty surrounding the course and potential consequences of the pandemic going forward, it is difficult to make an accurate forecast of the BMW Group’s business performance in 2021.