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Ladies and Gentlemen,
Good morning,
SLIDE 2: BMW Group Quarterly Statement to 31 March 2024
The BMW Group had a profitable begin into 2024.
Both gross sales and earnings for the primary quarter had been consistent with our expectations. This outcomes from the targeted implementation of our strategic priorities.
At the BMW Group, we’ve robust manufacturers and enticing merchandise, which create ongoing excessive demand and a worthwhile operational enterprise.
SLIDE 3: Highlights of BMW Group Performance in Q1 2024
In the primary three months, the BMW Group delivered slightly below 595,000 automobiles to clients. This is a slight enhance of 1.1 % over the identical interval of final yr.
Our all-electric automobiles, specifically, made an vital contribution, with development of 27.9 %.
If we have a look at the BMW model alone, that quantity was 40.6 %.
At the identical time, gross sales of fashions within the higher premium section additionally recorded important double-digit development of greater than 21 %.
The Group EBT margin for the primary quarter got here in at 11.4 %, which is above our strategic goal of 10 %.
The EBIT margin within the Automotive Segment was 8.8 %. This falls clearly inside our goal hall of 8 to 10 %.
Ladies and Gentlemen,
This quarter confirms as soon as once more that the BMW Group’s working enterprise persistently delivers robust outcomes.
We have a clearly outlined long-term plan. And we’ve important flexibility in our programs and processes. This permits us to adapt rapidly to developments and benefit from market alternatives.
On this foundation, we anticipate to function at a constant stage all through 2024.
SLIDE 4: BMW Group in Q1
Let’s check out the monetary figures for the primary quarter in additional element.
I’ll begin with a short overview at Group stage.
BMW Group revenues had been on par with the earlier yr.
Group earnings earlier than tax totalled round 4.2 billion euros, leading to a Group EBT margin of 11.4 %.
SLIDE 5: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT
And now extra particulars on how the Automotive Segment carried out throughout key metrics.
In the primary three months, the BMW Group delivered 595,000 BMW, MINI and Rolls-Royce automobiles to clients.
The BMW model reported development of two.5 %.
Due to the upcoming mannequin changeovers MINI gross sales had been down 9.4 % from the earlier yr. The New MINI Family, comprising the Countryman*, the Cooper* and the Aceman*, will enhance MINI gross sales – notably within the second half of the yr.
This gross sales growth can also be mirrored in section revenues. Adjusted for forex translation results, revenues noticed a slight enhance of 1.5 %.
Both the upper gross sales quantity and optimistic product combine results from the higher worth section and BEV contributed to the rise in revenues in Q1 2024.
This is anticipated to offer a tailwind for revenues additionally within the the rest of 2024.
Furthermore, costs throughout the product portfolio are anticipated to be consistent with final yr’s stage.
The electrification of our product line-up continued to generate substantial gross sales momentum in the newest quarter.
Almost 83,000 fully-electric automobiles had been bought – or 13.9 % of our whole gross sales.
Taken collectively, BEV and plug-in hybrids accounted for about 21 % of whole gross sales within the first quarter.
EBIT for the interval from January to March was 2.7 billion euros, with an EBIT margin of 8.8 %.
This implies that the primary quarter of 2024 is consistent with the constant development in profitability for the reason that starting of 2022.
Q1 2023 was distinctive, as the results of inflation weren’t but absolutely mirrored within the working consequence.
I’ll present extra particulars on the Q1 year-on-year growth with the EBIT bridge.
SLIDE 6: Automotive Segment EBIT in Q1
Changes in commodity costs accounted for a optimistic influence of round 200 million euros. Currency results remained impartial.
For the complete yr 2024, we anticipate a optimistic internet steadiness from forex and commodity positions.
The internet steadiness of quantity, model-mix and pricing results is about 300 million euros decrease than for the primary quarter of 2023.
Increase in volumes made a slight optimistic contribution.
The double-digit development by fashions within the higher worth section virtually fully compensated the impact from the upper BEV share.
Starting with the second quarter of 2023, we started to see elevated competitors resulting from higher availability of automobiles available in the market. This led to a gradual softening of the worldwide worth setting for brand new and used vehicles, which has continued into the primary quarter of 2024.
For the complete yr 2024, we anticipate the online impact from quantity, combine and pricing to be barely optimistic, as deliberate.
We anticipate further momentum from fashions like the brand new BMW 5 Series, which is at present ramping up in markets throughout the globe. In China, it launched after the Lunar New Year vacation and has due to this fact solely been in showrooms for just a few weeks.
Full availability of the BMW 7 Series will even have a optimistic impact.
Moving on, we come to analysis and growth bills – which had been 200 million euros greater than within the prior-year first quarter.
Based on Group R&D expenditure, the R&D ratio in line with the German Commercial Code got here in at 5.4 %.
Our R&D actions stay targeted on the electrification and digitalisation of our complete car fleet. We are consistently growing enticing new fashions, just like the NEUE KLASSE or the subsequent era of the BMW X5.
Sales and administrative prices had been 100 million euros greater than the earlier yr. This is basically resulting from IT initiatives and the rise in personnel prices, which was carried out from the third quarter of 2023.
The headwind of 700 million euros from Other Cost Changes primarily outcomes from two areas.
The first is manufacturing prices.
Sales margins within the first quarter of 2023 nonetheless benefitted from a decrease stage of buying costs in 2022.
This led to a optimistic EBIT impact in Q1 2023 as inventories with decrease manufacturing prices had been bought.
Starting in Q2 2023, we noticed an elevation in prices that has carried by into Q1 2024.
Another purpose for the distinction in different price modifications is earnings from the resale of end-of-lease automobiles.
As anticipated, earnings was decrease than within the first quarter of 2023, but stays optimistic.
The normalisation we’ve been seeing within the used automobile market over the previous twelve to fifteen months has progressively continued.
SLIDE 7: Automotive Segment Free Cash Flow in Q1
Free cashflow within the Automotive Segment totalled about 1.3 billion euros within the first quarter of 2024.
The distinction to the primary quarter of 2023 primarily outcomes from the decrease EBT.
Inventory ranges rose through the first quarter, consistent with planning. This contributed to the change in working capital, which quantities to 1.2 billion euros.
The enhance in inventory will be certain that we are able to service the anticipated buyer demand.
The internet impact from capital expenditure and depreciation additionally decreased free money stream by 200 million euros.
Capital expenditure for January to March totalled round 1.3 billion euros. This was primarily allotted to new fashions and constructions, with a transparent give attention to electrification and digitalisation in addition to automated driving programs.
The capex ratio for the yr to the top of March was 3.6 %.
Changes in provisions and within the place different, resembling tax funds, had no internet influence on free money stream.
In the primary quarter of 2024, investments totalling 2.3 billion euros had been made into future fashions and improvements. Nevertheless, the Automotive section generated 1.3 billion euros in free cashflow.
For the complete yr, the BMW Group is focusing on a free cashflow above 6 billion euros within the Automotive section, regardless of the deliberate peak investments in R&D and capex in 2024.
The robust underlying free cashflow era helps our ongoing and constant shareholder return.
As a part of the share buyback program BMW AG has acquired shares equal to five.03 % of the share capital in place on March thirty first.
The second tranche of the second program with a quantity of 500 million euros is at present in progress and can be accomplished no later than June twenty eighth.
Currently we see no purpose to not proceed with tranche three instantly after conclusion of tranche two.
SLIDE 8: Financial Services Segment in Q1
In the Financial Services Segment, the optimistic development in new enterprise from the second half of 2023 continued by the primary three months of 2024.
The variety of new contracts concluded with retail clients elevated considerably by 21.5 % year-on-year to achieve 422,000 contracts. Financing for each new and used automobiles contributed to this development.
In line with this, the amount of recent enterprise grew by 22.1 % to only over 15.6 billion euros.
Segment earnings for the primary quarter amounted to 730 million euros – a lower of 215 million from the earlier yr.
This might be attributed each to greater credit score threat provisioning and the normalisation of earnings from the resale of lease returns.
The credit score loss ratio throughout the whole mortgage portfolio remained at a low charge of 0.21 %.
SLIDE 9: Motorcycles Segment in Q1
In the Motorcycles Segment, first-quarter deliveries decreased barely by 3.1 % year-on-year.
EBIT for the yr to the top of March totalled 106 million euros, with an EBIT margin of 12.2 %.
SLIDE 10: Outlook 2024
Ladies and Gentlemen,
After a profitable first quarter, we anticipate the stable enterprise efficiency to proceed all year long 2024.
Therefore, our steering for key efficiency indicators stays unchanged.
This is predicated on the belief that geopolitical and macroeconomic situations don’t deteriorate.
Group earnings earlier than tax are projected to lower barely.
In the Automotive Segment, we’re planning for slight year-on-year gross sales development – with the proportion of all-electric automobiles set to extend considerably.
We anticipate to see an EBIT margin of between 8 and 10 % and a Return on Capital Employed (RoCE) of between 15 and 20 %.
Sales ought to be barely greater within the Motorcycles Segment, too. The section’s EBIT margin ought to are available in at between 8 and 10 % and Return on Capital Employed (RoCE) ought to be between 21 and 26 %.
In the Financial Services Segment, we’re focusing on a Return on Equity (RoE) within the vary of 14 to 17 % for the complete yr.
SLIDE 11: BMW Group with Consistent Performance
Ladies and Gentlemen,
The BMW Group combines a strong monetary efficiency in its present enterprise with a long-term perspective for the longer term.
We have a spread of extremely enticing merchandise available in the market and we’re repeatedly growing new fashions that can set the usual for driving expertise, digitalisation and connectivity.
As deliberate for and beforehand introduced, our analysis and growth spending, and our capital expenditure, will respectively peak in 2024.
We anticipate our R&D ratio for the complete yr to be above 5 %, and the capex ratio above 6 %.
Our underlying profitability permits us to finance these investments sooner or later and on the identical time yield enticing returns to our shareholders.
We proceed to steer the corporate consistent with our strategic priorities. And we ship what we promise.
Our flexibility permits us to rapidly adapt to market fluctuations and to satisfy buyer demand throughout the globe.
This ensures that we capitalize on market developments and ship robust outcomes by constant execution.
Thank you.