LBBW FIXED INCOME CONFERENCE BERND DASER, INVESTOR RELATIONS.

Transcription

1 Stuttgart, September 29, 2015 LBBW FIXED INCOME CONFERENCE BERND DASER, INVESTOR RELATIONS.

2 AGENDA. 1 OPERATING PERFORMANCE FUTURE GROWTH 3 FUNDING THE GROWTH: BMW GROUP TREASURY ACTIVITIES 4 SUMMARY

3 BMW GROUP POSTS SOLID FIRST HALF-YEAR RESULTS. Revenues - BMW Group Change in % H1-2015: 44,852 mn H1-2014: 38,140 mn Profit before tax - BMW Group H1-2015: 4,851 mn H1-2014: 4,813 mn +0.8 PBT margin: 10.8% PBT margin: 12.6% -1.8 pp Deliveries to Customers (in units) - Automobiles H1-2015: 1,099,748 H1-2014: 1,020, Revenues - Automobiles H1-2015: 40,543 mn H1-2014: 35,063 mn EBIT - Automobiles H1-2015: 3,613 mn H1-2014: 3,741 mn -3.4 EBIT margin: 8.9% EBIT margin: 10.7% -1.8 pp Free Cash Flow - Automobiles H1-2015: 2,557 mn H1-2014: 1,002 mn. EBT - Financial Services H1-2015: 1,055 mn H1-2014: 905 mn BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/ numbers adjusted Page 3

4 EBIT MARGIN DEVELOPMENT AUTOMOTIVE SEGMENT. TARGET PROFITABILITY OF 8-10% in % Target corridor * H *) 2012 figures have been adjusted in accordance with the revised version of IAS 19, see note 7 on page 106 of the annual report BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 4

5 BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID YTD 08/15 GROWTH +7.4%. Americas Europe Mainland China Asia (w/o China) and Rest of World +10.5% +9.2% +7.4% Growth rate +0.9% Share of global sales 23% 44% 21% 13% Source: Data for individual regions include BMW and MINI vehicles only, YTD August 2015 (figures may not add to 100% due to rounding) BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 5

6 BMW GROUP FINANCIAL SERVICES IS AN INTEGRAL PART OF THE AUTOMOTIVE VALUE CHAIN. Global Presence June 2015 Business Lines (Portfolio Size Q2/2015) Global Operations in 54 Countries Retail Finance 74.0 bn Commercial Finance 15.6 bn ~4.1 Million Serviced Retail Contracts EU Bank Americas 30% 29% Fleet Business 10.2 bn Multi Make Financing 7.9 bn Asia, Pacific 16% 25% EMEA Insurance 3.0 mn Contracts Banking 9.3 bn BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 6

7 PENETRATION RATE RETAIL BUSINESS. 55% 50% Financing Leasing 48.5% 49.0% 48.2% 45% 40% 35% 30% 25% 34.5% 20.9% 38.3% 35.0% 36.1% 17.2% 18.3% 19.1% 44.6% 42.0% 42.4% 41.1% 22.5% 27.2% 24.0% 25.2% 27.6% 24.3% 24.1% 41.1% 40.4% 21.1% 19.7% 44.0% 21.5% 41.7% 20.9% 45.1% 21.2% 20% 15% 10% 5% 13.6% 17.8% 17.8% 19.2% 19.5% 17.1% 17.2% 17.4% 20.9% 24.7% 24.1% 20.0% 20.7% 22.5% 20.8% 23.9% 0% * H * The penetration rate dropped significantly due to the consolidation of BMW Group Financial Services China as of January 1 st, BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 7

8 DEVELOPMENT OF CREDIT LOSS RATIO. 0.9% 0.84% 0.8% 0.7% 0.67% 0.6% 0.5% 0.54% 0.59% 0.49% 0.48% 0.46% 0.50% 0.46% 0.46% 0.4% 0.41% 0.37% 0.41% 0.34% 0.3% H BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 8

9 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 RESIDUAL VALUE DEVELOPMENT IN THE USA. BMW brand used car index (through August 2015) Source: Manheim Used Vehicle Index, mix and mileage adjusted. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 9

10 OUTLOOK 2015 POSITIVE BUSINESS DEVELOPMENT DESPITE CHALLENGES. BMW Group Solid increase of BMW Group EBT compared to previous year. Automotive Segment Solid increase in vehicle deliveries and significant increase of revenues compared to previous year. EBIT margin in target range of 8-10%. Financial Services Segment Return on equity of at least 18%, on par with previous year. Motorcycle Segment Solid rise in deliveries compared to previous year. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 10

11 AGENDA. 1 OPERATING PERFORMANCE FUTURE GROWTH 3 FUNDING THE GROWTH: BMW GROUP TREASURY ACTIVITIES 4 SUMMARY

12 INNOVATIONS AND NEW PRODUCTS DRIVE FURTHER GROWTH. NEW PRODUCTS E-MOBILITY INNOVATIVE SERVICES CONNECTED CARS BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 12

13 PRODUCT ROADMAP Q1 Q2 Q3 Q4 6 Series & M6 Convertible LCI* 6 Series & M6 Coupé LCI* 6 Series & M6 Gran Coupé LCI* 7 Series Luxury Upper Medium X5 M X6 M X5 xdrive40e Lower Medium 3 Series derivatives LCI 2 Series Convertible MINI John Cooper Works MINI Clubman Compact/ Small 1 Series 5-door & 3-door LCI 2 series Gran Tourer X1 *6 Series vehicles shown here BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 = M Models Page 13

14 NEW PRODUCT BMW 7 SERIES. Launch 10/2015 BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 14

15 WE ARE TRANSFERRING BMW i TECHNOLOGY TO OUR CORE BRAND VEHICLES NEW PHEV MODELS. BMW X5 xdrive40e 230kW / 313 hp / 450Nm ltr/100km / g CO 2 /km km/h 6.8 s up to 31km purely electric driving BMW 3 Series edrive ~183 kw / 245 hp / >400Nm ~2.1 ltr/100km / ~ 50 gco 2 /km km/ h < 7.0 s ~ 35 km purely electric driving BMW Concept Active Tourer edrive >140 kw / 190 hp / >250 Nm ~2.1 ltr/100km / ~ 50 gco 2 /km km/ h < 8.0 s ~ 35 km purely electric driving Market launch: Autumn Market launch: Market launch: tbd. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 15

16 INNOVATIVE TECHNOLOGIES AND SERVICES TO MEET CHANGING CUSTOMER DEMANDS. Vehicle automation New BMW ConnectedDrive Store Touch Command Connected Mobility idrive Controller Fully automated parking BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 16

17 DRIVE NOW IS EXPANDING BMW i3 JOINS THE FLEET. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 17

18 AGENDA. 1 OPERATING PERFORMANCE FUTURE GROWTH 3 FUNDING THE GROWTH: BMW GROUP TREASURY ACTIVITIES 4 SUMMARY

19 BMW CORPORATE FINANCE SUPPORTS THE GROWTH OF THE ENTIRE AUTOMOTIVE VALUE CHAIN. Research & Development Production Sales & Marketing Financial Services 1 Focus on automotive value chain 2 Financing follows the markets Automobile & Motorcycle Financial Services Financial independence and flexibility Industrial & Banking typical financing instruments Access to banks, investors and rating agencies Value Orientation Ensuring solvency, also in times of crisis. Securing Group Treasury performance through standards, methods and infrastructure Financing strategy Based on the Strategy Number ONE the BMW Group Treasury creates sustainable value contributions through diversified funding activities on international capital markets and a liquidity management, which fits to the BWM business model. BMW Group Treasury lays the foundation for future growth and profitability of the Financial Services segment. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 19

20 ACCESS TO BANKS, INVESTORS AND RATING AGENCIES AS SUCCESS FACTORS. Banks Group Treasury one face to the market Rating Agencies Investors BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 20

21 BMW GROUP TREASURY OPERATING ENVIRONMENT. Internal Drivers Growing funding needs as a result of growing automotive and financial services business External Trends High volatility of emerging markets economies and FX rates Business growth in new markets Low interest rates and high liquidity Funding Risk Management Liquidity Management BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 21

22 DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of ( 82.4 bn*) <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ CP (EMTN) PPs Bonds Banks loans ABCP ABS Other 3.4% 0.5% Structured Finance 8.3% Bank loans 9.9% Customer deposits Customers deposits Fed Funds BCD s EMTN/ bonds/ SSDs 49.5% 5.9% 0.9% Brokered CD s Fed funds Industry-typical instruments Bank-typical instruments 14.3% ABS 7.2% Commercial Paper *Adjusted, excl. FX and interest rate derivatives BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 22

23 THE DEBT STRUCTURE ENSURES FLEXIBILITY IN LINE WITH THE GROWTH OF THE COMPANY. Anleihen/ Privatplatzierungen* 43-47% Projektbezogene Finanzierung Kredite 3-5% 6-7% Einlagen 13-17% Company Growth Öffentliche Anleihen* 42-51% Projektbezogene Finanzierung 1-4% Kredite 4-7% Einlagen 7-13% Brokered CDs 3-5% Brokered CDs 6-8% ABS 12-16% SSDs* 1-4% Commercial Paper 6-10% ABS 12-16% The Financial Debt Structure is driven by: Diversification Maturities Independency Privatplatzierungen* 8-12% Commercial Paper SSDs* 5-10% 1-4% BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 23

24 BROAD INVESTOR BASE. USA USD Commercial Paper USD US PP USD ABS Canada CAD ABS Great Britain GBP (EMTN) PPs GBP Bonds GBP ABS Euro Capital Markets EUR Commercial Paper French Commercial Paper EUR (EMTN) PPs EUR Benchmark Bonds USD Eurodollar AUD Euroaussie NOK (EMTN) Bonds SEK (EMTN) Bonds EUR ABS South Korea KRW Domestic Bond USD ABS Japan JPY (EMTN) PPs JPY Euro-Yen JPY ABS JPY Schuldschein CAD (EMTN) PPs CAD Domestic Bonds Mexico MXN (EMTN) PP Brazil BRL ABS Switzerland CHF (EMTN) PPs CHF Bonds CHF ABS South Africa ZAR ABS India INR Domestic Bond Mainland China RMB ABS Hong Kong RMB (EMTN) PP HKD (EMTN) PP Australia AUD (EMTN) PP AUD ABS AUD (AMTN) Bonds ZAR Domestic Bonds Funding is done worldwide to optimize refinancing costs and to establish a broad investor base. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 24

25 BMW GROUP LIQUIDITY IS ENSURED, ALSO IN CASE OF A CRISIS. Liquidity Reserve Maturity Profile Free Cash Flow Group Liquidity > 10 bn. EUR. Treasury Center Network Financing of Financial Services Business free of liquidity risk Investor Access Strong free cash flow generation Central Bank Access Verfügbarkeit Availability of der group Konzernliquidität liquidity thru treasury über Kapitalsammelstellen centers. Using economic (TCs). of Nutzen von scale Skalleneffekten. Direct access to investors Access to central bank liquidity BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 25

26 BMW GROUP WITH BEST RATING AMONG EUROPEAN AUTOMOTIVE MANUFACTURERS. Standard & Poor's Moody's Short-term Rating A-1 P-1 Long-term Rating A+ A2 Outlook Stable Positive BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 26

27 BMW GROUP TREASURY SUPPORTS THE AUTOMOTIVE VALUE CHAIN ALSO THROUGH FINANCIAL RISK MANAGEMENT. Interest Risk Currency Commodities BMW Group s financial risk management increases planning reliability, reduces earnings risks and allows to take advantage of market opportunities. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 27

28 1,70 1,60 1,50 1,40 1,30 1,20 1,10 1,00 0,90 0,80 0,70 0,60 1,70 1,60 1,50 1,40 1,30 1,20 1, ,00 0,90 0,80 0,70 1,70 1,60 1,50 1,40 1,30 1,20 0,60 1, ,00 0,90 0,80 0,70 0, THE FX EXPOSURE OF THE BMW GROUP IS MANAGED USING A RELATIVE VALUATION APPROACH COMBINED WITH MINIMUM HEDGE RATIOS FOR THE PORTFOLIO. 1. PPP-based approach on single currency level EUR/USD EUR/USD EUR/USD Minimum hedge ratios on the portfolio level (aggregation of all currencies) 3. In case the portfolio hedge ratio is lower than the minimum hedge ratio, measures are applied in selected currency pairs using a combination of different instruments such as forwards, options and range options rel. Bewertung Sicherungsstrecke Grid-Empfehlung Ø-Monatsexposure Währung Sicherungsquote Sicherungsquote Sicherungsquote Sicherungsquote Sicherungsquote ggü. GGK (in Monaten) (in Monaten) (in Mio. EUR) Mindest-Profil 14,4 85% 50% 10% 0% 0% BMW-Portfolio -7,2% 16, ,3% 63,5% 24,6% 8,0% 4,1% Δ in EUR 1, AUD 18,3% 35, % 85% 74% 72% 4% CHF 14,0% 38, % 87% 74% 61% 58% NZD 12,4% 28, % 100% 60% 46% 9% CAD 4,1% 24, % 85% 61% 23% 0% NOK 3,9% 15, % 85% 0% 0% 0% JPY* 2,6% 44, % 88% 85% 76% 61% THB 2,3% 15, % 85% 18% 0% 0% SEK -5,9% 12, % 63% 0% 0% 0% KRW -8,0% 9, % 32% 0% 0% 0% CNY -11,4% 16, % 75% 32% 0% 0% USD -11,4% 16, % 79% 22% 0% 0% GBP -14,0% 5, % 30% 0% 0% 0% ARS 0,0% 0, % 0% 0% 0% 0% BRL 0,0% 9, % 50% 0% 0% 0% CZK 0,0% 12, % 51% 0% 0% 0% DKK 0,0% 0, % 0% 0% 0% 0% HUF 0,0% 5, % 0% 0% 0% 0% IDR 0,0% 3, % 2% 0% 0% 0% INR 0,0% 6, % 33% 0% 0% 0% MYR 0,0% 13, % 56% 10% 0% 0% PLN 0,0% 7, % 20% 0% 0% 0% RUB 0,0% 5, % 25% 0% 0% 0% SGD 0,0% 12, % 50% 0% 0% 0% * auf Basis Risikoexposure BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 28

29 AGENDA. 1 OPERATING PERFORMANCE FUTURE GROWTH 3 FUNDING THE GROWTH: BMW GROUP TREASURY ACTIVITIES 4 SUMMARY

30 SUMMARY. GOOD FIRST HALF OF THE FINANCIAL YEAR GUIDANCE CONFIRMED. BMW GROUP IS WELL PREPARED FOR THE FUTURE. BMW GROUP TREASURY MANAGES GROWING FUNDING NEEDS AND IS WELL POSITIONED IN A VOLATILE MARKET ENVIRONMENT. BMW Group Investor Presentation, LBBW Fixed Income Conference, 09/2015 Page 30