BMW Group boosts opening with significantly aloft earnings

Munich. The BMW Group continued to denote its
high turn of profitability in a duration from Jul to Sep 2021,
with revenues, distinction before taxation and net distinction all during record levels
for a third quarter. The Group’s clever opening during this period
was driven in sole by enlightened product brew factors and
certain pricing effects for new vehicles as good as fast selling
prices of pre-owned vehicles.

 

The BMW Group also posted new record sum for deliveries to
customers, revenues and distinction before taxation for a nine-month period
and, in light of this clever performance, reliable a opinion for
a full year during a quarterly press conference. The opinion for the
stream year was lifted in an ad-hoc proclamation antiquated 30 September,
clearly demonstrating a Group’s underlying profitability.

 

At a same time, a Group is relentlessly pushing brazen the
routine of apropos a climate-neutral reward car manufacturer.

 

“The BMW Group shows how profitability and mutation go
palm in glove. We see technological change as a good event to
strengthen a business indication on a tolerable basis. With a focus
on climate-neutral mobility, we are consistently pushing a company
brazen to make it future-proof,” conspicuous Oliver
Zipse
, Chairman of a Board of Management of BMW AG, in
Munich on Wednesday.

 

The BMW Group’s unchanging concentration on sustainability, ultimately
heading to a round economy, was underlined with a phenomenon of
a BMW i Vision Circular judgment car during a IAA
in Munich in September. This first, entirely recycled and recyclable
prophesy car combined by a BMW Group provides a brazen glance of
tolerable reward mobility in a year 2040.

 

“When it comes to meridian protection, a applicable doubt is:
how large is a CO footprint of a car over a whole life
cycle, including a impact of tender materials, industrial production,
a active use of a car and recycling? That is a banking that
eventually depends and a one by that a opening will be
measured,” Zipse emphasised. “That’s why
a bargain of sustainability goes distant over building e-drive
systems. We aim to precedence round economy beliefs to grasp a
limit of meridian insurance – starting with a sustainable
preference of sole tender materials for prolongation and considering
a life cycle of a vehicles as a whole.”

 

E-mobility expanding during faster gait – high expansion rates achieved

The BMW Group is quickly and evenly expanding a operation of
electrified models. With direct for electrified vehicles on a rise,
it sole 231,575
entirely electric and plug-in hybrid vehicles during
a initial 9 months of 2021, twice as many as one year earlier
(2020: 116,400 units; +98.9%). Sales of entirely electric
vehicles
grew quite dynamically, rising by
121.4% to 59,688 units (2020: 26,957 units).

 

During a third quarter, a BMW Group perceived high commend from
general automotive experts and reporters comparison for a new,
entirely electric BMW iX and BMW i4
vehicles. Order intake worldwide is high for both models, with
deliveries to business due to start from this month onwards.
“With a BMW i4 and a BMW iX, we are holding e-mobility to a
new level. The BMW iX is a creation flagship that gives upcoming
BMW models new capabilities that embody 5G technology, a latest
era of program and a many modernized e-drive a BMW Group has
ever developed. The BMW i4 comes true from a heart of a BMW
code and offers business a whole new dimension of pushing pleasure.
The matter we are creation could not be clearer: If a car bears
a BMW badge, afterwards it’s a genuine BMW – regardless of a drive
variant,” conspicuous Zipse.

 

The BMW Group’s electric mobility plan is relocating relentlessly
towards a high ramp-up phase. As early as 2023,
a Group will have 25 electrified models on the
roads – 13 of them entirely electric. In a duration adult to
2025, a BMW Group is set to grow a sales of fully
electric vehicles by an normal of more than 50%
annually
, delivering around two million fully
electric vehicles
to business by a center of a decade.

 

Growth in revenues and distinction before tax

The BMW Group available poignant sales volume growth
in a initial 9 months of a stream year, with
deliveries rising by 18% to 1,932,224
units (2020: 1,638,167 units). In a third quarter,
reduced prolongation volumes of a BMW Group due to a supply
conditions impacted smoothness figures. During a duration from Jul to
September, a sum of 593,177
BMW, MINI and Rolls-Royce code vehicles were
delivered to business (2020: 675,592 units; -12.2%).

 

The delay of positive pricing effects for new
and pre-owned vehicles as good as a favourable product
mix
some-more than compensated for a reduce sales volume, driving
third-quarter revenues adult to € 
27,471 million (2020: € 26,283 million; +4.5%;
practiced for banking factors: +3.5%). Revenue expansion for the
nine-month duration was even some-more pronounced, rising significantly to
 82,831 million (2020:
€ 69,508 million; +19.2%; practiced for banking factors: +20.5%).

 

The softened cost invasion for new and pre-owned vehicles is
essentially due to a BMW Group’s appealing product range, strong
patron direct and a generally reduce accessibility of vehicles due
to a necessity of semiconductors.

 

“Business during a stream financial year to date has
benefited almost from a enlightened fast marketplace situation
and continued sprightly demand,” conspicuous Nicolas Peter,
Member of a Board of Management of BMW AG, Finance. “The latest
set of reported sum underlines a operational strength of a BMW
Group and demonstrates a superb joining of our
workforce.” Looking forward to a arriving changes in a BMW
Group’s business model, he added: “Our ability to beget profit
is a exigency for transforming a business model. Our stated
routine is to financial a compulsory investments out of ongoing
operations. With a multiple of advantageous planning, good management
and a penetrating concentration on potency and profitability, we are excellently
positioned to do so.”

 

Future-oriented investments sojourn during high level

Research and expansion activities during a duration underneath report
were focused on new models as good as on a foundation and
digitisation of a car swift and programmed driving, in other
difference on pivotal issues in terms of pushing a routine of transformation
and strengthening a company’s destiny viability. RD
expenses
recognized in a income matter amounted to € 
1,600 million in a third quarter, 13.8% adult on the
before year, holding a sum for a nine-month duration to € 
4,337 million (2020: € 4,140 million; +4.8%). Total
RD output amounted to € 4
,369 million, somewhat reduce than one year earlier
(2020: € 4,397 million; -0.6%).

 

Due to income growth, a research and development
ratio
for a nine-month duration fell somewhat from 6.3% to
5.3% (in a third quarter: 6.5%; 2020: 5.9%).

 

Group distinction before financial outcome (EBIT) rose to € 
10,913 million (2020: € 2,633 million) for the
nine-month duration and to € 2,883 million (2020: € 1,924 million) for
a third quarter. In serve to softened pricing for new and
pre-owned vehicles, as described above, EBIT also benefited from the
unvaried low turn of allowances compulsory to be recognized for credit
risks. The prejudiced annulment of a sustenance for EU antitrust
record available in a second entertain also had a certain impact
on nine-month earnings.

 

The financial
result for a nine-month duration was a net positive
volume of € 
2,240 million (2020: € 329 million; in a third
quarter: € 534 million; 2020: € 540 million). The outcome from
investments benefited in sole from a Group’s share of the
distinction reported by a Chinese corner try BMW Brilliance Automotive
Ltd., Shenyang, that increasing to € 1,475 million for a nine-month
duration (2020: € 959 million; +53.8%).

 

Other financial outcome went adult to a net certain volume of
€ 940 million (2020: disastrous € 282 million; in a third quarter:
certain € 173 million; 2020: certain € 200 million), whereby the
alleviation was especially attributable to a continued enlightened fair
value expansion of seductiveness rate hedges ensuing from a arise in
produce curves in a USA. The remeasurement of investments hold by the
BMW i Ventures account as good as a investment in SGL Carbon had a
certain impact.

 

Group distinction before taxation (EBT) amounted to € 
13,153 million (2020: € 2,962 million; in a third
quarter: € 3,417 million; 2020: € 2,464 million).

 

The pre-tax lapse on sales (EBT margin) came in at
15.9% for a nine-month duration (2020: 4.3%) and
12.4% for a third entertain (2020: 9.4%).

 

Nine-month smoothness sum significantly adult on before year

Automotive segment sales in a third entertain of 2021
were impacted by semiconductor supply issues. Deliveries to customers
in Europe and Asia were down, given sales in a Americas region
rose year on year. Over a nine-month period, however, sales
growth
was available for all vital regions worldwide,
including an glorious opening on European
markets,
where deliveries of BMW, MINI and Rolls-Royce brand
vehicles were adult by 11.9% to 725,721 units (2020:
648,494 units).

 

The singular accessibility of semiconductors caused third-quarter
deliveries in Asia to tumble to 254,739
units
(2020: 288,907 units; -11.8%). However, a figure
contrasts neatly with Group opening over a nine-month period,
during that 835,090 units were delivered to
business (2020: 705,789 units; +18.3%).

 

Third-quarter sales sum for China forsaken to
203,008 units (2020: 230,920 units; ‑12.1%). Here,
too, sum were good adult over a nine-month period, with 670,964
BMW, MINI and Rolls-Royce code vehicles delivered to
business given a commencement of 2021, 19.7% some-more than in a same
duration one year progressing (2020: 560,367 units).

 

Overall, a BMW Group has continued to strengthen a competitive
position in all pivotal regions. Mirroring this certain trend, sales
volume expansion during code turn also ranged between ‘solid’ and
‘significant’ for a nine-month period. Worldwide, BMW
brand
sales climbed by 19.3% (2021: 1,703,068
units; 2020: 1,427,392 units). MINI
code deliveries increasing to 224,838
units (2020: 208,124; +8.0%), whereby a 106.6%
expansion in sales of electrified models – quite a fully
electric MINI SE* – contributed intensely to a altogether growth
recorded. The ultra-luxury code Rolls-Royce
delivered 4,318
units to business between Jan and September,
environment a new record for a duration with an boost of 62.9% (2020:
2,651 units).

 

Automotive segment revenues rose significantly to
€ 70,373 million in a initial 9 months of the
stream financial year (2020: € 54,829 million; +28.3%), of which
€ 22,628 million were available in a third quarter
(2020: € 21,962 million; +3.0%).

 

Profit before financial outcome (EBIT) jumped to
€ 7,945 million (2020: € 152 million; in a third
quarter: € 1,756 million; 2020: € 1,477 million; +18.9%), giving an
EBIT margin of 11.3% (2020: 0.3%)
for a nine-month duration and 7.8% (2020: 6.7%) for
a three-month duration from Jul to Sep 2021. As expected, the
third entertain was impacted to a larger grade by aloft tender materials
prices and bound costs (in sole RD expenses) as good as by
a reduce sales volume.

 

The nine-month financial result available by the
Automotive segment amounted to € 1,711
million
(2020: € 615 million, in a third quarter: € 374
million, 2020: € 383 million). As described above, a categorical driving
factors were a softened outcome from a at-equity accounted Chinese
corner try BMW Brilliance Automotive Ltd. (BBA) and positive
gratefulness effects recognized in other financial outcome outset on
investments hold by a BMW i Ventures account as good as on the
investment in SGL Carbon.

 

Segment distinction before taxation (EBT) amounted to
9,656 million
(2020: € 767 million) for a nine-month
duration and € 2,130 million (2020: € 1,860 million;
+14.5%) for a third quarter.

 

Free money flow generated by a Automotive segment
amounted to € 1,397 million for a third entertain and
to € 6,299 million for a nine-month period. The
boost in money flows from handling activities especially reflected
aloft gain before taxation and a enlightened expansion of working
capital. Automotive shred giveaway money upsurge for a full year is
approaching to be in a shred of € 6.5 billion.

 

Motorcycles shred reports aloft revenues and earnings

BMW Motorrad delivered 156,609
motorcycles and maxi-scooters (2020: 129,599 units; +20.8%) to
business in a initial 9 months of 2021. With 48,999
units
available during a third quarter, deliveries decreased
compared to a before year due to indication changes and supply issues
(2020: 52,892 units; -7.4%). Revenues rose
significantly to € 2,262 million (2020: € 1,716
million; +31.8%) for a nine-month period, including € 641
million
available in a third entertain (2020: € 637 million;
+0.6%). Segment EBIT grown accordingly, rising
significantly to € 323 million for a nine-month
duration (2020: € 110 million), though remaining next a before year at
€ 39 million for a third entertain (2020: € 45
million; -13.3%). The shred EBIT domain came in at
14.3% (2020: 6.4%) for a nine-month duration and
6.1% (2020: 7.1%) for a third quarter.

 

Financial Services shred reports clever expansion in new business

The Financial Services segment reported significant
expansion in new business with sell business in a duration from
Jan to Sep with 1,509,195
new credit financing and leasing contracts signed,
adult by 12.4% on a before year (2020: 1,342,803 contracts). New
business resolved with sell business during a nine-month period
also rose neatly by 16.2% to € 48,000 million (2020:
€ 41,311 million), with a Chinese marketplace in sole contributing
to a available growth.

 

In a third quarter, however, a supply-related rebate in
deliveries resulted in a reduce series of new contracts (2021: 479,850
new contracts; 2020: 538,351 new contracts; ‑10.9%).

 

Over a nine-month period, 50.7% of new BMW Group
vehicles were possibly leased or financed by a Financial Services
shred (2020: 50.5%; +0.2 commission points).

 

Segment gain grown intensely definitely in both the
three-month and nine-month periods. Segment
profit before taxation (EBT) reached a new record level
with € 
2,924 million (2020: € 1,039 million, in a third
quarter: € 988 million; 2020: € 458 million). Higher revenues
generated from a remarketing of franchise returns, quite in the
USA and a UK also gathering adult earnings. Moreover, shred profit
benefited from a enlightened risk conditions as good as a stable
margins outset on new business.

 

BMW Group confirms practiced opinion for full year

The BMW Group lifted a opinion for a full year on 30 September.
With a appealing product portfolio, it expects to continue
benefiting from a postulated enlightened product brew and positive
pricing effects for new and pre-owned vehicles.

 

The BMW Group continues to foresee a Group distinction before tax
that is significantly aloft than in a before year.

 

The Automotive segment is approaching to record a solid
year-on-year boost in a series of BMW, MINI and Rolls-Royce brand
vehicles delivered to business and RoCE is foresee to urge significantly.

The EBIT domain for a Automotive shred for a full year is set
to finish within a operation of 9.5% to 10.5% (outlook before to a ad-hoc
proclamation antiquated 30 September: 7% to 9%).

 

The Financial Services segment is foresee to
grasp a lapse on equity (RoE) for a full year within a operation of
20 to 23% (outlook before to a ad-hoc announcement: 17% to 20%) due
to a softened risk situation.

 

The Motorcycles segment is approaching to record a
poignant boost in deliveries on a behind of a certain market
trend. The EBIT domain is set to finish within a aim operation of 8 to
10%, heading to a intensely aloft turn of RoCE than one year earlier.

 

The BMW Group also reaffirms a foresee for non-financial
opening indicators.
Accordingly, a suit of
women in government functions is approaching to boost slightly. At the
same time, a BMW Group is targeting a serve poignant reduction
in a CO emissions generated by a EU new car fleet.
According to stream expectations, CO emissions per vehicle
constructed are expected to tumble moderately.

 

The Group’s targets for a year are to be met with a
slightly smaller workforce. Forecasts for the
stream year are formed on a arrogance that mercantile and political
conditions worldwide will not change significantly.
However, any decrease of these factors could have a negative
impact on a BMW Group’s outlook. “We are resolutely on march to
accommodate a opinion for a full year and we demeanour forward with confidence
,” conspicuous Nicolas Peter. “We design the
semiconductor supply conditions to sojourn an emanate over 2021.”

 

* * *

 

The BMW Group – an overview

Jan. – Sept.
2021

Jan. – Sept.
2020

Change in %

Deliveries to customers
1

    

Automotive

units

1,932,224

1,638,167

18.0

thereof:
 BMW2

units

1,703,068

1,427,392

19.3

 MINI

units

224,838

208,124

8.0

 Rolls-Royce

units

4,318

2,651

62.9

Motorcycles

units

156,609

129,599

20.8

 

 

 

 

 

Automotive segment
EBIT margin

%

11.3

0.3

Motorcycles
shred EBIT margin

%

14.3

6.4

EBT domain BMW Group
3

%

15.9

4.3

 

 

 

 

 

Revenues

€ million

82,831

69,508

19.2

thereof:
Automotive

€ million

70,373

54,829

28.3

Motorcycles

€ million

2,262

1,716

31.8

Financial
Services

€ million

24,179

22,055

9.6

Other
Entities

€ million

3

1

Eliminations

€ million

-13,986

-9,093

53.8

 

 

 

 

 

Profit before financial result
(EBIT)

€ million

10,913

2,633

thereof:
Automotive

€ million

7,945

152

Motorcycles

€ million

323

110

Financial
Services

€ million

2,869

1,057

Other
Entities

€ million

-3

43

Eliminations

€ million

-221

1,271

 

 

 

 

 

Profit/loss before taxation (EBT)

€ million

13,153

2,962

thereof:
Automotive

€ million

9,656

767

Motorcycles

€ million

324

108

Financial
Services

€ million

2,924

1,039

Other
Entities

€ million

378

-290

Eliminations

€ million

-129

1,338

 

 

 

 

 

Income taxes

€ million

-2,946

-785

Net profit

€ million

10,207

2,177

Earnings per share
(common/preferred share) 4

 €

15.38/15.39

3.20/3.21

1In tie with a examination of a sales practices and
associated stating practices, a BMW Group has reviewed prior-period
car smoothness information and guarded that certain car deliveries
were not reported in a scold periods. BMW Group has revised the
information on car deliveries for before years retrospectively. Further
information on this matter is supposing in a BMW Group Report 2020
from page 128. As BMW Group continues to raise a policies and
procedures per sell car smoothness data, it might not always
be practicable for BMW Group to adjust before duration information (and any such
adjustments would be of a de minimis inlet but any material
impact on a comparability of periods).

2 Including deliveries to business of a corner venture
BMW Brilliance Automotive Ltd., Shenyang.

3 Group distinction before taxation as a commission of Group revenues.

4 Common / elite stock. In computing gain per share
of elite stock, gain to cover a additional division of €
0.02 per share of elite batch are widespread over a 4 buliding of
a analogous financial year.

 

 

The BMW Group – an Overview

3rd quarter
2021

3rd entertain
2020

Change in %

Deliveries to customers
1

    

Automotive

units

593,177

675,592

-12.2

thereof: 
BMW2

units

524,858

585,239

-10.3

 MINI

units

66,990

89,262

-25.0

 Rolls-Royce

units

1,329

1,091

21.8

Motorcycles

units

48,999

52,892

-7.4

 

 

 

 

 

Automotive segment
EBIT margin

%

7.8

6.7

16.4

Motorcycles
shred EBIT margin

%

6.1

7.1

-14.1

EBT domain BMW Group
3

%

12.4

9.4

31.9

 

 

 

 

 

Revenues

€ million

27,471

26,283

4.5

thereof:
Automotive

€ million

22,628

21,962

3.0

Motorcycles

€ million

641

637

0.6

Financial
Services

€ million

8,073

7,799

3.5

Other
Entities

€ million

1

0

Eliminations3

€ million

-3,872

-4,115

-5.9

 

 

 

 

 

Profit before financial result
(EBIT)

€ million

2,883

1,924

49.8

thereof:
Automotive

€ million

1,756

1,477

18.9

Motorcycles

€ million

39

45

-13.3

Financial
Services

€ million

974

438

Other
Entities

€ million

2

18

-88.9

Eliminations

€ million

112

-54

 

 

 

 

 

Profit/loss before taxation (EBT)

€ million

3,417

2,464

38.7

thereof:
Automotive

€ million

2,130

1,860

14.5

Motorcycles

€ million

40

44

-9.1

Financial
Services

€ million

988

458

Other
Entities

€ million

113

118

-4.2

Eliminations

€ million

146

-16

 

 

 

 

 

Income taxes

€ million

-833

-649

28.4

Net profit

€ million

2,584

1,815

42.4

Earnings per share
(common/preferred share) 4

 €

3.89/3.89

2.71/2.71

43.5/43.5

1In tie with a examination of a sales practices and
associated stating practices, a BMW Group has reviewed prior-period
car smoothness information and guarded that certain car deliveries
were not reported in a scold periods. The BMW Group has revised
a information on car deliveries for before years retrospectively.
Further information on this matter is supposing in a BMW Group Report
2020 from page 128. As a BMW Group continues to raise a policies
and procedures per sell car smoothness data, it might not
always be practicable for a BMW Group to adjust before duration data
(and any such adjustments would be of a de minimis inlet but any
element impact on a comparability of periods).

2 Including deliveries to business of a corner venture
BMW Brilliance Automotive Ltd., Shenyang.

3 Group distinction before taxation as a commission of Group revenues.

4Common / elite stock. In computing gain per share
of elite stock, gain to cover a additional division of €
0.02 per share of elite batch are widespread over a 4 buliding of
a analogous financial year.

 

 

*:Consumption / emissions data:

 

MINI Cooper SE: Power expenditure in kWh/100 km
combined: 16.9-14.9 NEDC, 17.6-15.2 WLTP.

 

 

GLOSSARY – exegetic comments on pivotal opening indicators

 

Deliveries

A new or pre-owned car will be available as a smoothness once
handed over to a finish user. End users also embody leaseholders under
franchise contracts with BMW Financial Services and – in a USA and
Canada – dealerships when they appropriate a car as a use loaner
or malcontent vehicle. In a box of pre-owned vehicles, finish users
might embody dealerships and other third parties when they squeeze a
car during auction or directly from BMW Group. Vehicles designated for
a finish user and pang sum detriment in movement will also be recorded
as deliveries. Deliveries might be done by BMW AG, one of its
general subsidiaries, a BMW Group sell outlet, or independent
dealerships. The immeasurable infancy of deliveries – and hence a reporting
of deliveries to a BMW Group – are carried out by eccentric dealerships.

 

EBIT

Profit/loss before financial result, comprising revenues reduction cost of
sales, offered and executive losses and a net volume of other
handling income and expenses.

 

EBIT margin

Profit/loss before financial outcome as a commission of revenues.

 

EBT

EBIT and financial result.

 

 

For enquiries, greatfully contact:

 

Corporate Communications

 

Dr Britta Ullrich, Corporate Communications, Finance, Sales

Telephone: +49 89 382-18364, [email protected]

 

Eckhard Wannieck, Head of Communication Group, Finance, Sales

Telephone: +49 89 382-24544, [email protected] 

 

Internet: www.press.bmwgroup.com

E-mail: [email protected]

 

 

The BMW Group

With a 4 brands BMW, MINI, Rolls-Royce and BMW Motorrad, a BMW
Group is a world’s heading reward manufacturer of automobiles and
motorcycles and also provides reward financial and mobility services.
The BMW Group prolongation network comprises 31 prolongation and assembly
comforts in 15 countries; a association has a tellurian sales network
with member in some-more than 140 countries.

In 2020, a BMW Group sole over 2.3 million newcomer vehicles and
some-more than 169,000 motorcycles worldwide. The distinction before taxation in the
financial year 2020 was € 5.222 billion on revenues amounting to
€ 98.990 billion. As of 31 Dec 2020, a BMW Group had a
workforce of 120,726 employees.

The success of a BMW Group has always been formed on long-term
meditative and obliged action. The Group set a march for the
destiny during an early theatre and consistently creates sustainability and
fit apparatus government executive to a strategy, from a supply
sequence by prolongation to a finish of a use proviso of all a products. 

 

www.bmwgroup.com

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