Harald Krüger, Chairman of
a Board of Management of BMW AG
Review of a business year 2015
Good morning, Ladies and Gentlemen,
Welcome to a Annual Accounts Press Conference.
On Mar 7, we distinguished a centenary here in Munich: 100 Years of
Bayerische Motoren Werke. Our staff during all locations around a globe
had a possibility to attend around live tide in a celebration. We are
regulating a arise of a centenary as a springboard for “The subsequent 100 Years”.
We are assured sold mobility will sojourn a elemental human
need. According to forecasts, new automobile registrations worldwide are
approaching to strech around 100 million by 2020, including a growing
reward segment. At a same time, mobility is going to change
dramatically interjection to new technological advancements.
Our BMW VISION NEXT 100 offers a prophesy how we trust mobility in
a subsequent 30 years and over will develop. The BMW i Vision Future
Interaction here on theatre shows we a initial stairs to realizing this.
Both these vehicles consolidate a new epoch of mobility – a time that will be
characterized by sustainability, connectivity and programmed driving.
Our aim is to continue to explain a heading position in a premium
segment. However, as we see it, a tiny array of vehicles sole is no
sufficient magnitude of an automaker’s destiny viability. Rather we must
embody other pivotal indicators to grasp a suggestive altogether outlook of a
company’s opening intensity and competitiveness.
For us, these pivotal indicators include:
- sustainable high profitability,
- innovative capacity,
- customer compensation and
- our lure as an employer.
This is a instruction in that we are holding a BMW Group. But more
about that later. First off, let me give we a examination of a business
I’ll be addressing a following points:
- Our opening in a business year 2015.
- New models during BMW, MINI and Rolls-Royce.
- Our goals for a business year 2016.
Our business sourroundings in 2015 was characterized by intense
competition, flighty markets, domestic hurdles and a public
discuss about diesel technology. Within this severe environment,
we followed a goals with integrity – and achieved them.
Our reward brands are a fortitude of this success. For a first
time, we delivered some-more than 2.24 million vehicles to business in
2015. This corresponds to a plain enlargement rate of 6.1 percent
year-on-year. It is also a new sales record. Our brands BMW, MINI and
BMW Motorrad also posted new records.
In a globalized world, we are right where a patron is. We pursue
a equivalent placement of value origination for both sales and
production. At approximately
45 percent of sum sales, Europe
is still a principal sales region. Asia accounted for about 30
percent of sales and a Americas for 22 percent.
We are strategically expanding a tellurian prolongation network of
now 30 sites in 14 countries:
- Our second engine plant in Shenyang non-stop in Jan 2016.
- In Mexico, preparations for a construction of a new plant in
San Luis Potosí are pierce on schedule.
- We are also significantly expanding a company’s biggest
prolongation site in Spartanburg, USA, to be means to prove the
direct for a reward sports activity vehicles.
- And we continue to deposit in a German plants and a expansion
of a FIZ Research and Innovation Center. Around 700 million euros
alone will be invested in a home plant in Munich by 2018.
The certain sell enlargement is also reflected in a Group’s key
financials for a business year 2015. We generated new record highs
for Group revenues, Group distinction before taxation and Group net profit.
- As forecast, a Group
distinction before tax grew extremely by 5.9 percent to a new
arise of 9.2 billion euros.
- The net profit
augmenting by 10 percent to around 6.4 billion euros.
- The EBIT domain in the
Automotive Segment stands during 9.2 percent and therefore
within a approaching aim range.
- Generating a distinction before taxation of over 1.9 billion euros, the
Segment once again done a poignant grant to the
The past year was noted by a new BMW 7 Series. This sixth
epoch of a flagship indication is being good perceived by both
business and a media. From a marketplace launch in Oct 2015 to the
finish of Feb 2016, we sole some-more than 9,000 BMW 7 Series vehicles.
The 7 Series is a guide of innovation.
Its Carbon Core perceived a EuroCarBody Award 2015, a world’s most
prestigious approval for innovations in automobile physique construction. In
Germany, it was respected with a Golden Steering Wheel Award in the
These dual models were any awarded a Golden Steering Wheel as well:
The new BMW X1 in a shred of mid-size SUVs and a BMW 2 Series
Gran Tourer for best family car. Both models paint a expansion
of a portfolio in a flourishing compress segment.
Since a launch in October, a new MINI Clubman has demonstrated
how a formula is building serve alongside a lifestyles of its
aim group. The Clubman has all it takes to be a primary automobile in a
household. Mobility services are by now customary in today’s marketplace for
Our car-sharing use DriveNow is flourishing during a fast pace. The
swift already consists of over 4,000 vehicles in Europe. Since
DriveNow was launched in 2011, a business have driven over 133
million kilometers – or to put it another way, around 170 times to the
moon and back. By a finish of 2015, a sum of roughly 580,000 users
were registered. This year a business can once again demeanour forward
to a whole operation of sparkling new models.
Alternative drives play a distinguished role. At final year’s event, we
had BMW’s initial array automobile with a plug-in hybrid here on stage.
Since a marketplace launch in late Oct 2015, a X5 xDrive40e shows
how we are transferring BMW i’s ‘born electric’ technologies to our
BMW core brand. We are now integrating a hybrid record in
additional indication series, such as a BMW 2 and 3 Series. Hybrid drive
also creates clarity in a vast automobile classes. The new BMW 740e
iPerformance is a dear instance of this.
This car’s sum are truly impressive:
- Fully electric range: 40 kilometers.
- Fuel output in a stream EU exam cycle: 2.1 liters per 100 kilometers.
- Carbon emissions per kilometer: 49 grams.
And we are about to extend a BMW M operation of a new 7 Series,
something many business have been watchful for. As early as this year,
we will put a initial M Performance several of a BMW 7 Series on the
road. Now M is also in a oppulance class. Thanks to a autarchic dynamic
M Performance is unequivocally successful with a BMW 1 and 2 Series, a X5
and a new X4.
In 2015, we instituted a realignment of MINI with a immature portfolio.
MINI usually launched a new automobile a few days ago. It is a only
reward charity among convertibles in a compress segment.
In a ultra-luxury segment, Rolls-Royce will launch a world’s
quietest automobile in a initial half of this year. Rolls-Royce is
and will sojourn a unequivocally apex of luxury. With courtesy to market
share, Rolls-Royce dominates a shred above 200,000 euros. The
formula is strategically expanding a portfolio, also addressing
younger aim groups. At a Geneva Motor Show, Rolls-Royce presented
a Ghost and a Wraith in a special bespoke several – as Black Badge
models. We are formulation to launch a new, all-terrain Rolls-Royce model
– devise name: Cullinan – before a finish of this decade. This model
will be built on a new aluminum structure, a destiny basement of all
Let us pierce on from 4 wheels to dual wheels. At present, BMW is the
world’s many successful reward manufacturer of motorcycles and
maxi-scooters. Today’s product operation is some-more sundry and more
sold than ever. By 2020, BMW Motorrad is designed to grow to
To grasp this, we are drumming into new markets, launching
motorcycles subsequent 500 cc that are ideal for civic environment. With
a G 310 R roadster, BMW Motorrad will launch a initial product below
500cc in a second half of this year. Spring will see a launch of
a R NineT Scrambler, a lifestyle motorcycle formed on a very
successful R NineT.
We have had a unequivocally good start to a year with a immature and
appealing product portfolio: In Jan and February, we sole 7.7
percent some-more vehicles than in a same duration of a prior year.
BMW Motorrad grew by 12.1 percent. Experts pattern for 2016 a positive
enlargement of a universe economy and enlargement in a automobile markets.
The domestic and mercantile sourroundings continues to be significantly
influenced by estimable risks and uncertainties, namely:
- the high open debt in many countries;
- the stream instability within Europe,
- the normalization of a Chinese market;
- the formidable mercantile situations in some rising markets.
This is counterbalanced by certain expectations for 2016 regarding
tellurian mercantile trends and a flourishing automotive market.
We have set ourselves desirous goals for a business year 2016:
- a slight boost in automotive sales;
- a slight boost in Group EBT;
- an EBIT domain in a Automotive Segment again within a operation of
8 to 10 percent.
To figure a future, an innovative and rarely learned group is
essential. We continue to deposit in a employees. Since 2007, we have
spent some-more than 2.1 billion euros on training and development. In
2015, we recruited over 5,900 new people. And in a centenary year,
all permanent employees in Germany will accept a highest
profit-sharing reward for 2015 within a German reward automobile industry.
Our shareholders furnish us with a fast substructure on that to
arise a company. For a initial time in a history, we are going
to introduce a sum multiplication payout of over dual billion Euros.
We will essay to grasp all a targets and safeguard 2016 is another
successful year for a BMW Group.
Dr. Friedrich Eichiner,
Member of a Board of Management of BMW AG, Finance
Annual accounts business year 2015
Ladies and Gentlemen,
A gentle acquire from my side as well.
Today’s success is some-more critical than ever: It lays a foundation
for a continued enlargement of a BMW Group. We achieved our
superintendence targets again this year – notwithstanding a array of hurdles in
a business environment.
At a start of 2015, a Chinese marketplace essentially normalized faster
than expected. There was also doubt over enlargement of a US
economy and seductiveness rates – and vast sensitivity in many emerging
markets and currencies. The BMW Group’s success in this volatile
sourroundings reinforces a position as a world’s many successful
reward manufacturer. We aim to say and raise this leadership
by serve enlargement of a Group. This is particularly
critical in light of a poignant changes confronting a industry. The
BMW Group sees itself as a pushing force. Our new critical alignment
was therefore a concentration of courtesy in 2015 alongside a handling activities.
Let’s initial take a demeanour during a Group’s handling business
performance: Higher deliveries carried revenues over € 92 billion for
a initial time. This is an boost of roughly 15% over a previous
year. This record high was upheld by banking interpretation effects.
Adjusted for these effects however, Group revenues still rose by 7.7%.
Both advantage and Group distinction crossed a subsequent billion euro
threshold: The BMW Group’s pre-tax advantage surfaced 9 billion euros for
a initial time during € 9.22 billion – an boost of 5.9% year-on-year.
At Group level, we achieved an EBT domain of 10.0%. Group net profit
also reached new levels during roughly € 6.40 billion.
High profitability will continue to sojourn a priority in a future.
With a outlook to a hurdles ahead, we have already implemented
measures in 2015 that will concede us to continue to accommodate profitability
targets in a future. We have delicately managed a company’s capital
employed and optimized a processes. This gives us a coherence we
need to deposit in applicable destiny projects.
In a fourth quarter, helped by banking tailwinds, Group revenues
reached roughly € 25.0 billion – an boost of 10.2% year-on-year.
Adjusted for banking effects, revenues augmenting by 5.4%. Group
pre-tax advantage were 11.8% aloft than a same entertain of the
prior year during € 2.11 billion. Fourth-quarter profitability remained
solid, with an EBT domain of 8.4%, notwithstanding high anniversary burdens.
The Automotive shred reported an EBIT domain of 9.6% for a same
period. We achieved this spin of profitability notwithstanding extensive
output on products and technology, and marketplace volatility. This
was partly due to a aforementioned potency improvements, as well
as a plain boost in volumes.
Let’s speak about a investments in destiny projects. The BMW Group
reported sum collateral output of € 5.89 billion in 2015 –
focusing on new automobile projects, such as a 7 Series, a X1 and the
MINI Clubman. Additional upfront investments were done for a ramp-up
of serve new products, including a new iPerformance models, as
good as in a European prolongation network and for a plant expansion
in a United States.
Through targeted investment, a association is formulating a necessary
conditions for destiny enlargement and a strengthening of its
competitiveness. Total investment enclosed capitalized development
costs of € 2.06 billion. At 39.9%, a ratio of capitalized
enlargement costs was aloft than a prior year. This increase
resulted from a aloft array of automobile projects we already mentioned.
The BMW Group’s capex ratio for 2015 stood during 6.4% of income – and
therefore behind in line with a aim of subsequent 7% of revenue. The BMW
Group has grown significantly over a final years. These
investments are scheming a prolongation network for a aloft total
ability and new models for a appealing portfolio. At a same
time, we are concentrating on a introduction of new and innovative
technologies such as programmed driving, a subsequent proviso of
e-mobility and digitalization.
The poignant boost in investigate and enlargement expenses
reported according to a German blurb formula (HGB) underlines our
continued concentration on a future: The BMW Group invested a sum of €
5.17 billion in investigate and enlargement in 2015. This represents an
boost of 13.2% from a prior year. As formerly announced, our
RD ratio (HGB) decreased to 5.6% – or usually outward a target
operation of 5-5.5%.
RD spending was clever on ramp-ups and new vehicle
projects, hybridization and lightweight design. With these
investments, we are scheming a product portfolio for growing
regulatory requirements. Our concentration is on even some-more efficient
explosion engines and expostulate sight electrification. Additional points
enclosed motorist assistance systems and connectivity.
The BMW Group will say a heading position in record and
efficiency. This stays a pivotal aspect of a reward concept. We
pattern a RD ratio for 2016 to sojourn on a same spin as 2015.
Our investors also advantage from a business success. In this, our
centenary year, a association will compensate a tip multiplication in its
history. Subject to a fortitude of a Annual General Meeting, the
association will compensate a sum multiplication of some-more than € 2 billion for the
initial time. A multiplication of € 3.20 per share of common batch and € 3.22
per share of elite batch will be paid. The multiplication will be
30 cents – over 10% – aloft than a prior year.
In total, 32.9% of a net distinction for a year will be paid out to
shareholders. This means that a shareholders are now earning a
multiplication furnish of scarcely 4% on common shares – and roughly 5% for
Now, let us take a demeanour during business enlargement in a segments.
First, a Automotive segment. Automotive shred revenues for 2015
climbed to € 85.54 billion. This boost of 13.8% reflects higher
sales volumes and certain banking interpretation effects. Adjusted for
banking effects, revenues were adult by around 6%. BIT for the
Automotive shred rose 8.2% year-on-year to € 7.84 billion. The EBIT
domain of 9.2% remained within a aim operation of 8-10% as forecast.
Here we can see a overpass from 2014 to 2015 EBIT. We were means to
boost a handling result, notwithstanding severe conditions.
Higher volumes and a net outcome of tender materials and currency
effects had a certain impact. Pricing and a automobile brew had a
slight disastrous outcome compared with a prior year. These items
led to € 982 million additional EBIT over a prior year.
This year, we pattern full accessibility of a 7 Series Sedan to
urge a mix.
In addition, aloft debasement had a disastrous outcome of € 479
million on advantage final year. The object “Other changes” represents the
net change of potency improvements and upfront investments and
aloft crew costs. Measures to urge potency and
cost-steering some-more than compensated for high upfront investments in
destiny projects and other charges.
And this will sojourn a march in a destiny – as we continue to
optimize a cost base. In this way, we will be prepared for future
hurdles and opportunities. As in new years, this will take place
in a unchanging and structured manner.
Let us now spin to during a money upsurge for a Automotive segment:
Higher net distinction and a outcome of augmenting debasement boosted
giveaway money upsurge in 2015. In fourth quarter, we reduced operative capital
by significantly obscure inventories. Free money upsurge totaled € 5.40
billion during a finish of 2015. This opening shows usually how attractive
and effective a business indication is.
For 2016 and a middle term, we say a aim of some-more than € 3
billion. Our financial strength enables us to arise new technologies
and strengthen a competitiveness. It also provides a solid
substructure in box a mercantile sourroundings deteriorates.
The BMW Group’s liquidity position once again remained extremely
plain in 2015. At a finish of a year, Group liquidity totaled € 11.38 billion.
The BMW Group therefore has sufficient supports and coherence for its
business activities and serve growth. This also provides our
financial services business with a plain footing.
Continuing with a Financial Services segment: BMW Group Financial
Services continued to raise a financing business in in 2015. Almost
1.66 million new contracts were resolved with sell business in
this shred in 2015 – 9.7% some-more than in a prior year. The total
business volume, as shown in a change sheet, climbed 15% to € 111
billion. This is driven by business enlargement – generally in the
US, China and a UK. In these markets, new contracts benefitted from
certain interpretation effects. Overall, 46.3% of new BMW Group vehicles
were leased or financed by Financial Services.
The invasion rate is therefore 4.5 commission points aloft than
a prior year. We benefitted from appealing refinancing costs in
2015 and will continue to do so this year.
Earnings before taxation reached € 1.98 billion – an boost of 14.6%
from a prior year.
Earnings were serve driven by a high array of new contracts and
portfolio from prior years. This was equivalent by upfront investments
in destiny enlargement and serve enlargement of a IT infrastructure.
Financial Services done targeted investments to support continued
growth. The categorical increases came from workforce enlargement and
investment in large-scale IT projects, including measures indispensable for
achievement of regulatory requirements, as good as serve enlargement of
business structures in China.
The lapse on equity for a shred augmenting yet by 0.8
commission points to 20.2%. Our change piece equity ratio stood at
8.2% during a finish of a financial year, progressing a plain equity base.
BMW Financial Services also benefitted from a mostly unvaried risk
conditions in 2015. The segment’s risk portfolio saw fast development
overall. The credit risk conditions sundry between markets, but
remained mostly unvaried on a whole. The credit wreckage ratio for our
credit portfolio serve softened to 0.37%. This is 13 basement points
subsequent a prior year’s figure. Overall, there were no critical changes
in residual value risks. The sold markets for a off-lease
vehicles however grown unevenly. Due to a high volume of used
cars, pricing in a US has – as approaching – run-down slightly
recently. This enlargement will approaching continue in 2016.
In a second-largest leasing market, Germany, however, Financial
Services achieved aloft used automobile prices. The alleviation in residual
values here has partly equivalent a trend in a US. We are confident
that Financial Services has famous an adequate spin of risk
provisions. The shred conducts minute risk analyses on a regular
basement and adjusts a risk supplies accordingly. We pattern a risk
sourroundings to sojourn mostly fast in 2016, yet can't order out
augmenting volatility. From today’s perspective, we trust a segment
is good prepared for credit and residual value risks.
I would now like to pierce on to a Motorcycles segment.
2015 was a fifth uninterrupted record year for BMW Motorrad. The
formula delivered roughly 137,000 motorcycles to business – 10.9% more
than a prior year. BMW Motorrad is a usually German motorcycle
manufacturer and marketplace personality in 26 countries in a shred for
reward bikes above 500 cc. With aloft volumes and better
profitability, BMW Motorrad reported significantly aloft pre-tax
advantage of € 179 million. This represents an boost of 67% over the
prior year. The shred achieved an EBIT domain of 9.1% for 2015.
BMW Motorrad is targeting serve enlargement this year with a new and
Finally a demeanour during Eliminations.
Eliminations cover a converging of inter-segment exchange –
essentially between a Automotive and Financial Services segments.
Pre-tax advantage were disastrous € 664 million. This disastrous balance
augmenting by € 501 million from a prior year, due to higher
eliminations of intercompany boost from stronger leasing business
and brew changes. The prior year had also benefitted from positive
effects that were not steady in 2015 and therefore resulted in a
some-more disastrous change compared with a prior year.
The BMW Group will continue to advantage on comparison opportunities
in 2016 and prepared itself for a future. We will use a financial
strength to exercise change including compulsory collateral expenditure
and other upfront investments. Despite these burdens, we intend to
say a essential enlargement to sojourn a world’s heading premium
manufacturer. We pattern an altogether certain business development
for 2016. Provided conditions do not deteriorate, a BMW Group is
targeting a slight boost in pre-tax advantage compared with the
Assuming conditions sojourn unchanged, we also pattern to see a slight
boost in automotive deliveries. Our new and revised models will
furnish a movement for this in a certain marketplace environment.
However, should these enlargement assumptions not be fulfilled, our
superintendence could change.
We also pattern a slight boost in Automotive shred revenues
in line with deliveries. We continue to aim for an EBIT domain within
a aim operation of 8-10% for a Automotive segment. We say this
aim notwithstanding high collateral output and upfront investments.
However, tangible margins could be subsequent a targeted operation if political
or mercantile conditions spin unfavorable.
In a Financial Services segment, we pattern lapse on equity to
sojourn on a standard with final year– notwithstanding growth-related investment and
(fixed) costs in a segment.
BMW Motorrad is also approaching to continue a certain business
enlargement in 2016. With a appealing new models, we pattern to see
a slight boost in deliveries compared with a prior year.
The superintendence assumes that domestic and mercantile conditions remain
stable. We pattern augmenting sensitivity and will respond in a stretchable manner.
Ladies and Gentlemen,
Our financial strength creates a right conditions for a company’s
destiny competitiveness. We will continue to make a necessary
investments for this in 2016 and a following years. In a future,
a BMW Group’s heading position should additionally be totalled by
a strength in origination and profitability.
Harald Krüger, Chairman of
a Board of Management of BMW AG
Strategy Number ONENEXT
Ladies and Gentlemen,
The sold mobility of a destiny is an sparkling yet also highly
formidable endeavor. Ultimately, what we do is enthuse people,
concomitant and ancillary them and origination their daily lives more
convenient. The BMW Group is a association that has focused on a long
tenure for a past 100 years. And this will continue to be a approach
in a future. With a Strategy Number ONENEXT, we are looking
brazen to a year 2020 and over that, adult to 2025.
Our corporate devise guides a actions. It allows us:
- to code trends in a business sourroundings early on;
- to set ourselves desirous goals and quickly settle a actions
compulsory to grasp them;
- to urge a existent operations invariably and to daub into
essential new business areas;
- to safeguard a corporate enlightenment within a association that provides
a ideal basement to exercise critical measures successfully.
Since 2001, a BMW Group has focused usually on reward with its
3 brands BMW, MINI and Rolls-Royce. Since 2007 and the
introduction of Strategy Number ONE, a association has grown to a new
level. We have grown successfully from being a leading
manufacturer of reward vehicles to apropos a heading provider of
reward mobility and services.
Over a past few years, however, a universe has continued to change –
even faster and some-more dramatically than ever before.
Today, we are handling within a totally opposite setting. The
refurbish of a Strategy is formed on a mutation holding place in
a industry. Our starting indicate was a endless research of
trends. Consequently, we have identified 7 fields of action
applicable to a BMW Group. One of them is digitalization. New
technologies emanate new opportunities for a automotive industry, but
also poise critical challenges. The value origination is changeable from the
tangible hardware toward module and services.
We can feel a changes in all business areas along a whole value
chain. Mastering them requires new ability sets. This enlargement is
also changing a new rival conditions in a industry. In
serve to a unequivocally heated foe in a reward segment,
energetic carmakers are now confronted with competitors from outside
a industry. These companies are characterized by a rarely dynamic
structure, an assertive proceed and estimable financial leeway.
They concentration exclusively on destiny technologies and work with a data
of their customers.
As a result, there are changes during a patron interface, that is so
critical to us. In this digital day and age, a wilful purpose is played by
information and a combined value for business that can be generated from
that data. How information is rubbed has a critical impact on a overall
patron experience. This is an event for energetic carmakers
to set themselves detached from new competitors. In a past we have
always practiced to customer-specific needs.
Within a formidable rival environment, a cost foe will
usually intensify. Operational value is indispensable to being means to
boost potency serve and to deposit in a future. When it comes
to expostulate sight technologies, for instance, we will continue to follow
a multi-track proceed that concede us to approve with a increasingly
despotic authorised regulations on glimmer reductions all around a globe.
We will have to attain in these efforts within a rarely volatile
environment. Maximum coherence is indispensable to stay a march in an
We have taken into criticism all a trends I’ve usually listed. The
refurbish of a devise has followed a dynamic, evolutionary proceed –
including disruptive elements. It’s simply called Strategy Number ONENEXT.
The mutation of normal mobility is a routine – one that
will extend over a longer duration of time, even yet a gait will
boost exponentially over a march of this development. We are
heading a BMW Group into a new era. To this end, we leverage
innovative technologies, endless connectivity and zero-emission
mobility. All of these need to be industrialized, temperament in mind our
business responsibilities, and in a tolerable manner, that in
itself is another good challenge.
Previously Strategy Number ONE was decorated by a residence with four
columns. Strategy Number ONENEXT is represented by a some-more dynamic
structure – this arrow. Its asymmetrical form illustrates a need to
cruise out of a box. The arrow indicating to a destiny consists of
4 elements: Vision, rival advantage, critical compass,
Our new prophesy is: We are Number ONE. We enthuse people on a move.
We figure tomorrow’s sold reward mobility.
In a rival environment, we rest on a elemental strengths: We
combine excitement, shortcoming and success. We have a most
romantic products and appealing services. We offer a best customer
trust with a many aspirational brands in a reward segment.
We aim to secure a long-term success and to set standards amongst
To this end, we have tangible 6 pivotal concentration areas:
- Brands Design;
- Customer Experience Services;
These elements are subsequent from a trends we mentioned earlier, and
pattern a elemental mutation of a industry. Let me
criticism on Brands Design, Products, Customer Experience and Digitalization.
Premium is to a vast border tangible by a participation and
strength of a brands. Design plays a critical purpose here as it is a
differentiating feature. Our idea stays unchanged: to lead in terms
of brands and design. A endless formula adaptation government –
including clearly tangible roles – is a basement for a operations. In
a future, we will secure a ideal outcome by requesting a Group
outlook to all a decisions on new products and services.
This is a exigency for holding a pattern to a subsequent spin and
for final a ideal time for a marketplace launch of new products.
This Group-wide communication will capacitate us to grasp many more. We
already occupy a future-oriented position in a marketplace with our
brands and products, covering all mandate in a reward segment.
With Strategy Number ONENEXT, we will raise a product
portfolio in all brands and all segments.
- The marketplace care in a tip segments.
- The enlargement of a BMW M product program.
- The enlargement of a BMW i lineup.
Let me be clear: BMW is and will sojourn a core brand. Leadership in
a oppulance category strengthens a BMW brand’s reward positioning. Over
a march of a subsequent few years, we will strategically launch new BMW
products in a market, accompanied by BMW M and BMW i models. A good
instance is a BMW 7 Series with a iPerformance and M Performance variants.
They demonstrate: how a technologies are charting a destiny course
of a oppulance segment, that we are responding to a opposite wishes
voiced by a business and that we offer Sheer Driving Pleasure in
many opposite forms.
The oppulance category will sojourn a high-margin segment, so we intend to
raise a participation by adding another new model.
Our BMW X indication operation is apropos some-more and some-more renouned with
customers. We have already announced a new serve to this lineup:
a X7, due out in 2018.
On to my second point:
BMW M is another instance where high direct and profitability come
together. Since 2010, sales of M and M Performance vehicles have
approximately quadrupled. It is not usually an apparent choice from a
business outlook to continue investment in this field, yet it will
also advantage a customers. New M and M Performance models will be put
on a highway as early as this year. One instance is a new BMW M2 Coupe
to be launched in April, that is geared generally toward younger
customers. The new BMW M4 GTS comes in a singular book of 700 units
and has already sole out.
We are formulation to tighten any gaps in a M portfolio. We also see
enlargement intensity in M Performance. In a future, M Performance will
have a significantly wider share in a indication portfolio. As we can
see, we are holding advantage of a enlargement intensity in the
high-margin segments. After all, a enlargement will continue to fund
a array in a entrance years.
Let’s pierce on to a third point:
The enlargement of BMW i. With BMW i, we have managed to unequivocally quickly
emanate a globally famous formula that embodies sustainability. Since its
introduction in 2013, we have delivered some-more than 50,000 BMW i
vehicles to customers. Today, a BMW i lineup has a incomparable market
participation than any other electric vehicle. BMW i assumes a pivotal purpose as
an enabler for a BMW core brand: BMW i attracts new business to
BMW. BMW i gives people easy entrance to electromobility as partial of
DriveNow. 20 percent of a car-sharing swift is already propitious with
an electric drive. BMW i is also instrumental in drumming new sales
strategies around new channels or internet orders.
Our outlook on e-mobility is clear: Electro-mobility delivers a
resolution to a final of civic mobility, now and tomorrow. We are
charting a transparent course, and we will continue to do so. We are further
expanding a BMW family.
An additional i3 indication will be charity from a second half of this
year on: Its battery ability has augmenting by 50 percent. And we have
also revised a design.
In 2018, we will launch an romantic formula shaper formed on a i8 –
a BMW i8 Roadster. The subsequent few years will see serve swell in
terms of a vehicles’ range, for both BEVs and PHEVs.
The trust and trust we advantage by BMW i flows as
suitable into a whole range. That’s what iPerformance stands
for. In a future, we will offer all BMW models with a plug-in hybrid
expostulate underneath this label. From Jul onward, business will be means to
select from a sum of 7 BMW models that are possibly entirely electric
or propitious with a plug-in hybrid drive. Additional electrified models
are due out in a following years. One of them will be a MINI with a
plug-in hybrid drive. And of march a iPerformance business will
also advantage from a BMW 360° ELECTRIC offering, including a
wall-mounted rapid-charge box and ChargeNow, a world’s largest
network of open charging stations.
A totally new i indication is scheduled to follow early in a next
decade. We call it BMW i NEXT. This rarely innovative indication will be
BMW i’s new spearhead of origination and technology. It will capacitate us
to take BMW i to a subsequent level. In doing so, we rest on our
trust in electro-mobility. The i NEXT will cover all aspects
applicable in a future: unconstrained driving, digital connectivity,
intelligent lightweight construction, a trendsetting interior and the
subsequent epoch of electro-mobility.
One pivotal critical proceed is Technologies. Digitalization has
brought about technological possibilities that can make pushing more
gentle and many of all safer. On tip of that, they connect
mobility with all other areas of life. We are energetic to assume the
heading purpose in a digital mutation of a automotive industry.
More about this essential subject from Mr. Fröhlich in a moment.
But for now, let’s pierce on to a critical proceed of
Digitalization. Digitalization is a many effective motorist of the
mutation in a automotive courtesy – as it impacts all areas of
a company. This is since we have motionless to concentration on 3 priorities:
Digital patron experiences, connected and unconstrained pushing and
Digitalization means we will be improved means to pattern and meet
a customers’ needs. In a future, we wish to offer people
tailor-made products and services along a whole patron lifecycle.
These facilities will boost patron faithfulness and a customer
In this context, it doesn’t matter if a customers’ indicate of contact
is genuine or virtual. Because in a future, a essential indicate is to
have a opposite and innovative charity of reward services for
sold mobility. The BMW Group has incorporated mobility services
and digital services in a business indication early on. Just cruise of
DriveNow, ParkNow and ChargeNow. And we will continue to raise our
offerings in these fields – to make them some-more permitted and thereby
facilitate a customers’ mobile life. One choice would be to complement
a existent car-sharing module with a reward ride-sharing service.
I’d now like to entice Klaus Fröhlich to explain some-more about a plans.
Klaus Fröhlich, Member of
a Board of Management of BMW AG, Development
Ladies and Gentlemen,
Harald Krüger has already explained to us a hurdles and
opportunities in a business sourroundings and a concentration of Strategy
Number ONENEXT. What we would like to do is outline a four
critical directions we will adopt as we exercise a strategy. Why
do we cruise this is important?
- 1. Implementing a technologies will give us a competitive
advantage over other manufacturers and new players entering the
automotive business. And in terms of Digital Services, we are going
to lay a foundations compulsory to offer a business a superior
use operation that exceeds their needs.
- For those of us who work in BMW Group Research and Development,
a destiny is already here today. We initial took to a highway with
unconstrained pushing in 2011 – and even used a systems on public
roads. Right now, we are already building a fifth epoch of
electric motors, due for launch in 2020.
- From rarely romantic pattern to a communication with and use of
a vehicles, we wish to be even some-more severe in adopting the
customer’s outlook on a products. That’s since we have
redesigned a proceed we work.
For Research and Development during a BMW Group, this means: We are
elaborating from a automatic engineering business to a tech company.
That’s since we would like to start by holding a brief demeanour during the
technologies we are already charity now to residence dual key
megatrends: choice drivetrain systems and digitalization.
Strategy Number ONE, that we launched in 2007, laid a foundations
for tolerable drivetrain systems with EfficientDynamics and project
i. Today, a BMW Group has a many endless portfolio of electric
engine drivetrains in a rival field.
With iPerformance, we have been means to make these drivetrains an
constituent partial of a architectures. As modular systems, they ensure
limit coherence for a operation of required and alternative
drivetrain systems for a subsequent 10 years – so we can accommodate not only
patron needs yet also a authorised mandate that are developing.
Our new 7 Series is a initial indication to underline a rarely flexible
cluster architecture. The digitalization facilities in it are impressive
justification of a innovativeness and include: Remote Control Parking,
a Active tour control and Steering and line control assistant,
that can take over from a motorist to control longitudinal movement
as good as parallel movements to 210 km/h. Various control options like
healthy debate recognition, gesture, touch, and iDrive units, the
broadest spectrum of ConnectedDrive Services, right by to
over-the-air updates for several automobile functions.
However, during a BMW Group, when we demeanour brazen to a future, we look
distant over what’s around a subsequent corner. As highlight and trade levels
arise and time becomes increasingly scarce, how are we going to deliver
perfect pushing pleasure in a future?
At this year’s CES, we presented a prophesy of connected, autonomous
pushing – with this automobile right subsequent to me, a BMW i Vision Future
Interaction. Before it even sets off, this automobile has set its
interior heat to a ideal level. It also knows a best proceed to
go, and suggests several parking space permitted to reserve. It also
has all a latest information, fed to it from a Cloud – such as
real-time maps from HERE – or from a possess sensors.
So a tour is not usually easier yet also safer. In autonomous
mode, a interior transforms into a atmospheric state-of-the-art office
for gentle communication. In this judgment car, we satisfied the
interior of a destiny – since when vehicles are connected and drive
themselves, a business will trust and use a interior in a
totally new way.
We come now to Strategy Number ONENEXT: Our enlargement division
wants to safeguard a BMW Group stays record leader:
To grasp that, we are going to restructure a operations with a
clever concentration on dual pivotal destiny topics:
- Powertrain technologies with EfficientDynamics NEXT and the
enlargement of electric vehicles powered by battery or fuel cells.
- Digitalization with extended connectivity, synthetic intelligence
and a enlargement of self-driving reward vehicles.
Let’s take a closer demeanour during a initial of these dual points: powertrain technologies.
Regulations and multitude are changing faster and faster, so this point
is of critical significance to us. Efficient Dynamics is all about
mixing energy and potency in equal measure. Over a final few
years, we have consistently extended a Efficient Dynamics technology
package, and still see a array of areas with poignant potential
for us. With EfficientDynamics NEXT, we are origination a advantages of
this record package even easier for business to trust in our
combustion-engined vehicles. We’re doing so by additional
functions to raise emotive dynamics and efficiency. Two examples are
a Boost function, for extra-dynamic acceleration, and the
gentle engine Start-Stop duty as good as intelligent,
anticipatory assistance systems that assistance a business conduct their
personal mobility even improved – by presaging changing traffic
signals, for example.
There’s one thing we am certain of: Over a subsequent 20 years, we will still
have some-more than usually one form of drivetrain system. Another reason why
we will still need to offer a business a operation of drivetrain
systems is a opposite mandate in a opposite markets around
a world. These meant we will need insubordinate choice systems
usually as many as evolutionary required ones, and hybrids.
The BMW i3 and BMW i8 have done us a trendsetter in electric
mobility. Over a subsequent few years, we will be adding to a i family,
with iPerformance ensuring record send into a array models.
To do this, we will offer electric models in scarcely any BMW series.
Our latest plug-in variety incorporate a third epoch of modular
substructure systems. And enlargement work is already underneath proceed on
a fifth epoch for 2020+.
Enhancing and electrifying a required engines will concede us to
continue meeting, a CO2 targets even in a future. However, our
business also pattern us to offer incomparable vehicles with alternative
drivetrains and distant some-more range. To accommodate their demands, we are
enhancing not usually a battery dungeon technologies yet also hydrogen
fuel dungeon technologies. At a impulse we are contrast a tiny swift of
hydrogen-powered BMW 5 Series GTs. These cars accelerate from
delay to 100 km/h in 8.4 seconds, with a tip speed of 180 km/h.
They have a operation of between 450 and 700 km, depending on their tank technology.
Customer concentration means dual things to us: One a one hand, it means
stability to offer customized expostulate sight solutions. On a other, it
means viable doing of those solutions, with limit synergies
and smallest complexity between record paths. One instance of this
is a fuel-cell, that is an electric drivetrain in that a battery
has usually been mostly transposed by a fuel dungeon system.
That’s since we have taken counsel stairs to enlarge a core
imagination in a domain of powertrain development.
We come now to a second destiny topic: Digitalization.
‘Digitalization’ is a word of a moment. Everybody is talking
about it. Translated utterly simply into a context of a automotive
industry, 3 strands of movement emerge:
- Business processes: these are a processes by that we develop,
furnish and sell a vehicles. In a destiny these are going to
change essentially – not usually within a BMW Group yet also in the
proceed we network with a partners from suppliers to use providers.
- Competition for customers: a internet, with a minimal
transaction costs and resources of data, is origination foe tougher
all a time. So for a Digital Services, we need to arise the
best probable bargain of a patron and higher technical
solutions, for instance by synthetic intelligence.
- The automobile of a destiny will be entirely networked and self-driving.
Today, concede me to concentration on this final point:
Connectivity is a pivotal exigency for a automobile of a future. Our
products already have their possess integrated SIM cards today, making
them an constituent partial of a Internet of Things. And a digital
services and apps, called BMW ConnectedDrive, are already connecting
a business with several areas of their lives. What we now wish to
do is seamlessly interconnect a business with their cars,
customized services and a universe around them. Direct interactions
with a business are of pivotal importance.
However, one thing is ideally clear: Vehicle and information confidence are
a tip priority. That’s why, relocating into a future, we will link
any automobile with a BMW backend server to keep customers’ details
secure, with firewalls, encryption and anonymization. From our
customers’ perspective, destiny connectivity will have a name: BMW
Connected – a name of their customized digital companion.
In years to come, a business will have all a critical mobility
information they need – during home, in a car, when they are out and
about on foot, or regulating open transport. It will always be adult to date
and constantly permitted around any finish device. Moreover, with a help
of a integrated Mobility Cloud, we will learn some-more and some-more about
what they wish and need, and be means to customize a mobility
services accordingly. This will concede us to offer a best services in
a domain of competition. That’s a goal.
BMW Connected will launch before a year is out. In a future,
vehicles will be intelligent and means to expostulate themselves. For us,
this is once again a doubt of patron advantage – since we want
a business to confirm for themselves how they will drive. Without
leisure of choice there can be no perfect pushing pleasure. We have been
operative on unconstrained pushing for some-more than 10 years.
Our initial exam automobile autonomously finished a path of the
Hockenheimring competition lane in 2006. In 2009, a exam automobile navigated
a 73 bends on a Northern Loop of a Nürburgring – autonomously
and during racing speed. In 2011, a exam automobile gathering on a A9 from
Munich towards Nuremberg – though any motorist intervention. And now,
starting with a new 7 Series, we are gradually introducing elements
of rarely unconstrained pushing into a array vehicles.
However, we resolutely trust that this decade will not see large-scale
prolongation of an unconstrained automobile that meets a reward needs of
a customers. The many we predict is commander tests in a restricted
setting. We trust that, during a moment, a technical and social
hurdles concerned are still too great.
In addition, adjustments contingency be done to a authorised implications for
business and manufacturers.
The BMW Group has a transparent goal: To be a personality in a domain of
unconstrained driving. This is a idea we are rigorously pursuing, and we
are operative evenly to settle a conditions that are
needed. Our high-precision map service, HERE, offers real-time information to
all customers, with millions of anonymized information apparatus enhancing map
peculiarity all a time. This will concede a BMW of a destiny to move
around regulating a latest digital sourroundings indication with an augmented
digital horizon. The intelligent automobile will advise a motorist of
risk brazen and prepared good in advance. We are also improving our
automobile sensors to collect adult even some-more minute information about the
evident surroundings. And to appreciate a information we collect, we will
make endless use of synthetic intelligence, not usually in the
automobile yet also in a BMW backend server. In addition, we will work
proactively to assistance explain a ubiquitous conditions compulsory for
unconstrained driving. Our idea is to comprehend unconstrained pushing within a
holistic end-to-end approach. And that sets us detached from other companies.
I pronounced during a commencement of my debate now that: We are operative to
safeguard that a BMW Group stays record leader. We know what we
need to do. We are going to arise a vehicles of a future. And we
are going to arise and raise a possess multiplication as well.
Project i brought us tolerable mobility – with breakthrough
innovations in a fields of electrification, lightweight engineering
and sustainability. Strategy Number ONENEXT outlines a launch of
Project i 2.0. Our idea is to grasp a sustainable, entirely networked,
self-driving vehicle. That’s since a enlargement multiplication has now been
restructured and extended – to consistently simulate digitalization.
Harald Krüger mentioned a i NEXT. This automobile will take our
devise out onto a highway with convincing results: Developed with
unchanging lightweight engineering, choice drivetrains, fully
connected and rarely unconstrained pushing and a unconventional interior.
In a years ahead, a i NEXT will be what a BMW 7 Series is
today: sold mobility in a excellent and many contemporary form.
Thank we unequivocally much.
Dr. Friedrich Eichiner,
Member of a Board of Management of BMW AG, Finance
Ladies and Gentlemen,
We wish to say a care – both in terms of a strength in
origination and competitiveness.
The digital mutation of a courtesy offers outrageous potential. To
seize these opportunities, we will need to deposit in a destiny –
regulating a possess resources and concurrently progressing a profitability.
We have already begun to turn some-more efficient: in enlargement and
prolongation as good as during a patron interface. Our transparent strategy
and a employees’ superb imagination and joining furnish a
plain substructure for a destiny success.
Nevertheless, we also have to cruise outmost factors that could
impact a destiny success. The categorical hurdles we see now are
stricter regulatory requirements, as good as formidable marketplace and
rival conditions. We also have to contend with increased
sensitivity in a tellurian economy and other pivotal areas, such as
currencies and tender element pricing.
Our devise is designed to grasp a change between investment in
a destiny and profitability. We wish both: to say a current
high spin of profitability while laying a grounds for a future.
By focussing on profitability, and a measures indispensable to grasp it,
we aim to keep profitability within a aim operation over a prolonged term.
After a duration of clever growth, we are now optimising a core
business. We wish to safeguard a business indication stays fit by
accelerating decision-making processes and building leaner structures.
Our trust in new business fields like BMW we provides valuable
submit to this end.
This will give us a coherence to unequivocally concentration on a future. We
devise to labour a business model, so that we can continue to offer
a business a many attractive, many fascinating products and
services in a future. That is a prophesy and a motivation!
I would like to give we some examples for measures and initiatives
that are in implementation. On a opening side, we aim to
strengthen profitability: Our product devise is focused on expanding
a automobile portfolio in a higher-margin segments.
The BMW brand, for example, will make a biggest gains in a luxury
category and a energetic M market. This will be complemented by new
offerings in a fast-growing SUV segment. The higher-quality product
brew will support a spin of profitability.
We also pattern digital, customer-centric record solutions to make
a flourishing grant to earnings: Attractive, user-friendly
solutions for of programmed pushing and innovative services will make
a customers’ lives easier and safer. These kinds of solutions add
value and, therefore, have their price.
We will also optimise a cost structures by augmenting productivity
and enhancing a operational value – over a common annual
increases in efficiency.
A good understanding has been achieved in new years by diverse
profitability initiatives in all divisions. That is driven by
standardisation, routine alleviation and prioritisation.
Our proceed is formed on uniform, optimised processes starting from
a enlargement phase.
In addition, we will raise a use of product and routine modules,
as good as common vehicles and expostulate systems architectures – making
enlargement and prolongation some-more efficient.
By proceed of an example, a new rear-wheel-drive architecture
introduced with a new 7 Series provides a basement for cost
optimization opposite mixed destiny models.
At a same time, we will also make a unwavering bid to reinforce
a high peculiarity and innovative impression of a portfolio. Both are
critical squeeze criteria for a business and an constituent partial of
a reward standards.
In a mid-term we pattern to turn some-more fit by starting
team-work between a purchasing, prolongation and sales and marketing
groups during an even progressing stage, that will assistance improved broach on
a mandate of any division.
A good instance of this is a Simplify Initiative, formed on a idea
of unchanging simplification. Its categorical aim is to
reduce both costs and complexity.
We are now identifying intensity to serve optimise our
automobile portfolio. Starting with loyal patron requirements, we will
take a tough demeanour during both variants and apparatus options.
This will concede us to revoke costs and revoke complexity in
development, prolongation and aftersales –without wreckage to a customer.
The new positioning of a MINI brand, with 5 core models, is one
instance of how we can revoke complexity. Going forward, MINI will
offer fewer, some-more eccentric models, with a crook profile. In line
with this meditative we have motionless not to offer successors to three
Based on a Simplify approach, we pattern an altogether significant
rebate of complexities and one-off expenditures. In figures, we
pattern assets in a three-digit-million euro operation over the
In production, a structures and processes we use are increasingly
standardised. We are now means to use substantially uniform production
processes, systems and machines worldwide.
Standardised processes will lead to potency improvements and
outcome in economies of scale in purchasing as good as a higher
Furthermore, a new prolongation systems can also be used for longer –
over a singular lifecycle. All of this has a certain outcome on both
collateral employed and collateral expenditure.
We also pattern cost advantages from a digitalisation of
prolongation and logistics. Developments in Industry 4.0 will capacitate new
and reduction cost-intensive prolongation methods. Such fit methods and
processes have already been satisfied in a formulation of new production
sites, such as in Mexico, so portion as a best-practice resolution for
all a general plants.
One instance we are substantially informed with is a lightweight robot
that works alongside employees though a reserve guard. We pattern the
concentration of new robots and complicated enlargement and production
methods, such as practical reality, information goggles and 3-D printing, to
furnish serve potency intensity in a future.
The BMW Group is flourishing on a tellurian scale. The association is posterior a
targeted proceed to settle prolongation ability and supplier
relations in countries with enlargement potential. This not usually makes
us some-more clever and some-more flexible, yet also enables us to feat the
rival advantage of general locations. China and NAFTA are
a sold focus.
We will exercise both – a long-term, profitable, traditional
business indication and a change towards new technologies and business
segments. We will grasp this within a possess financial means. This
two-pronged proceed requires even larger operational excellence,
capability and potency from a BMW Group. Not to discuss a high
spin of agility, a eagerness to change and a passion to welcome new
technologies and processes.
We will naturally set ourselves ambitions financial targets to assure
a company’s long-term profitability – with transparent milestones adult to 2020.
In new years, a BMW Motorrad shred and Financial Services, in
particular, have done a flourishing grant to advantage and improved
a company’s profitability as a whole. This will sojourn a concentration in
In acknowledging this development, a BMW Group will introduce
additional pivotal opening indicators from a year 2017 onwards: At
Group spin a association will aim an EBT domain of during slightest 10%. The
Motorcycles shred will adopt an EBIT domain aim operation of 8-10%.
In a Financial Services segment, we will say a aim of a
lapse on collateral employed of during slightest 18%.
Our aim ratio for RD activities stays within a 5-5.5%
operation of revenue, as before.
There has been a change in a clarification of a capex ratio, which
will no longer embody capitalised enlargement costs. The aim for
this ratio will be reduction than 5% of revenue. In 2015, this ratio was at
4.2%. We will expostulate cost discipline, hand-in-hand with extensive
investment in destiny projects.
However, securing a innovative strength, it is probable that we
could surpass a targeted operation by difference in comparison years.
And finally: a giveaway money upsurge for a Automotive shred is
targeted to be over € 3 billion per annum.
These financial targets assume that altogether domestic and economic
conditions sojourn stable.
The BMW Group is embarking on a subsequent 100 Years with a clear
devise towards destiny enlargement and success.
We will renovate a business formed on a autonomy and
strength. We have a financial power, a applicable expertise and we
are prepared to welcome change.
Harald Krüger, Chairman of
a Board of Management of BMW AG
Ladies and Gentlemen,
The doing of a Strategy Number ONENext relies heavily
on a well-functioning/excellent corporate enlightenment that supports and
perpetuates this serve development.
The BMW Group has a clever corporate culture. It is characterized by
oneness and a people’s clever marker with a association and
a brands. However, to prepared for destiny hurdles we have to
arise further. We respond to a rarely energetic sourroundings by
requesting a strengths. At a same time, we will significantly step
adult a movement when it comes to being some-more stretchable and flexible during
a mutation of a industry.
All of that contingency be reflected in a corporate enlightenment – and by that
we mean: in a structures and processes, yet initial and inaugural in our
actions. So we have tangible 5 values, that will be critical in our
destiny cooperation: Responsibility, appreciation, transparency, trust,
These values furnish a sound substructure for a doing of Number ONENEXT.