Munich. The BMW Group continued to demonstrate its
high level of profitability in the period from July to September 2021,
with revenues, profit before tax and net profit all at record levels
for a third quarter. The Group’s strong performance during this period
was driven in particular by favourable product mix factors and
positive pricing effects for new vehicles as well as stable selling
prices of pre-owned vehicles.
The BMW Group also posted new record figures for deliveries to
customers, revenues and profit before tax for the nine-month period
and, in light of this strong performance, confirmed its outlook for
the full year at the quarterly press conference. The outlook for the
current year was raised in an ad-hoc announcement dated 30 September,
clearly demonstrating the Group’s underlying profitability.
At the same time, the Group is relentlessly driving forward the
process of becoming a climate-neutral premium automobile manufacturer.
“The BMW Group shows how profitability and transformation go
hand in glove. We see technological change as a great opportunity to
strengthen our business model on a sustainable basis. With our focus
on climate-neutral mobility, we are consistently driving the company
forward to make it future-proof,” said Oliver
Zipse, Chairman of the Board of Management of BMW AG, in
Munich on Wednesday.
The BMW Group’s consistent focus on sustainability, ultimately
leading to a circular economy, was underlined with the unveiling of
the BMW i Vision Circular concept vehicle at the IAA
in Munich in September. This first, fully recycled and recyclable
vision vehicle created by the BMW Group provides a forward glimpse of
sustainable premium mobility in the year 2040.
“When it comes to climate protection, the relevant question is:
how big is the carbon footprint of a vehicle over its entire life
cycle, including the impact of raw materials, industrial production,
the active use of the vehicle and recycling? That is the currency that
ultimately counts and the one by which our performance will be
measured,” Zipse emphasised. “That’s why
our understanding of sustainability goes far beyond developing e-drive
systems. We aim to leverage circular economy principles to achieve a
maximum of climate protection – starting with the sustainable
selection of individual raw materials for production and considering
the life cycle of our vehicles as a whole.”
E-mobility expanding at faster pace – high growth rates achieved
The BMW Group is swiftly and systematically expanding its range of
electrified models. With demand for electrified vehicles on the rise,
it sold 231,575
fully electric and plug-in hybrid vehicles during
the first nine months of 2021, twice as many as one year earlier
(2020: 116,400 units; +98.9%). Sales of fully electric
vehicles grew particularly dynamically, rising by
121.4% to 59,688 units (2020: 26,957 units).
During the third quarter, the BMW Group received high acclaim from
international automotive experts and journalists alike for its new,
fully electric BMW iX and BMW i4
vehicles. Order intake worldwide is high for both models, with
deliveries to customers due to start from this month onwards.
“With the BMW i4 and the BMW iX, we are taking e-mobility to a
new level. The BMW iX is the innovation flagship that gives upcoming
BMW models new capabilities that include 5G technology, the latest
generation of software and the most advanced e-drive the BMW Group has
ever developed. The BMW i4 comes straight from the heart of the BMW
brand and offers customers a whole new dimension of driving pleasure.
The statement we are making could not be clearer: If a vehicle bears
the BMW badge, then it’s a genuine BMW – regardless of the drive
variant,” said Zipse.
The BMW Group’s electric mobility strategy is moving relentlessly
towards its steep ramp-up phase. As early as 2023,
the Group will have 25 electrified models on the
roads – 13 of them fully electric. In the period up to
2025, the BMW Group is set to grow its sales of fully
electric vehicles by an average of more than 50%
annually, delivering around two million fully
electric vehicles to customers by the middle of the decade.
Growth in revenues and profit before tax
The BMW Group recorded significant sales volume growth
in the first nine months of the current year, with
deliveries rising by 18% to 1,932,224
units (2020: 1,638,167 units). In the third quarter,
reduced production volumes of the BMW Group due to the supply
situation impacted delivery figures. During the period from July to
September, a total of 593,177
BMW, MINI and Rolls-Royce brand vehicles were
delivered to customers (2020: 675,592 units; -12.2%).
The continuation of positive pricing effects for new
and pre-owned vehicles as well as a favourable product
mix more than compensated for the lower sales volume, driving
third-quarter revenues up to €
27,471 million (2020: € 26,283 million; +4.5%;
adjusted for currency factors: +3.5%). Revenue growth for the
nine-month period was even more pronounced, rising significantly to
€ 82,831 million (2020:
€ 69,508 million; +19.2%; adjusted for currency factors: +20.5%).
The improved price penetration for new and pre-owned vehicles is
primarily due to the BMW Group’s attractive product range, strong
customer demand and the generally lower availability of vehicles due
to the shortage of semiconductors.
“Business during the current financial year to date has
benefited substantially from the favourable stable market situation
and continued brisk demand,” said Nicolas Peter,
Member of the Board of Management of BMW AG, Finance. “The latest
set of reported figures underlines the operational strength of the BMW
Group and demonstrates the outstanding commitment of our
workforce.” Looking ahead to the upcoming changes in the BMW
Group’s business model, he added: “Our ability to generate profit
is the prerequisite for transforming our business model. Our stated
policy is to finance the necessary investments out of ongoing
operations. With a combination of prudent planning, good management
and a keen focus on efficiency and profitability, we are excellently
positioned to do so.”
Future-oriented investments remain at high level
Research and development activities during the period under report
were focused on new models as well as on the electrification and
digitisation of the vehicle fleet and automated driving, in other
words on key issues in terms of driving the process of transformation
and strengthening the company’s future viability. RD
expenses recognised in the income statement amounted to €
1,600 million in the third quarter, 13.8% up on the
previous year, taking the total for the nine-month period to €
4,337 million (2020: € 4,140 million; +4.8%). Total
RD expenditure amounted to € 4
,369 million, slightly lower than one year earlier
(2020: € 4,397 million; -0.6%).
Due to revenue growth, the research and development
ratio for the nine-month period fell slightly from 6.3% to
5.3% (in the third quarter: 6.5%; 2020: 5.9%).
Group profit before financial result (EBIT) rose to €
10,913 million (2020: € 2,633 million) for the
nine-month period and to € 2,883 million (2020: € 1,924 million) for
the third quarter. In addition to improved pricing for new and
pre-owned vehicles, as described above, EBIT also benefited from the
unchanged low level of allowances required to be recognised for credit
risks. The partial reversal of the provision for EU antitrust
proceedings recorded in the second quarter also had a positive impact
on nine-month earnings.
The financial
result for the nine-month period was a net positive
amount of €
2,240 million (2020: € 329 million; in the third
quarter: € 534 million; 2020: € 540 million). The result from
investments benefited in particular from the Group’s share of the
profit reported by the Chinese joint venture BMW Brilliance Automotive
Ltd., Shenyang, which increased to € 1,475 million for the nine-month
period (2020: € 959 million; +53.8%).
Other financial result went up to a net positive amount of
€ 940 million (2020: negative € 282 million; in the third quarter:
positive € 173 million; 2020: positive € 200 million), whereby the
improvement was mainly attributable to the continued favourable fair
value development of interest rate hedges resulting from the rise in
yield curves in the USA. The remeasurement of investments held by the
BMW i Ventures fund as well as the investment in SGL Carbon had a
positive impact.
Group profit before tax (EBT) amounted to €
13,153 million (2020: € 2,962 million; in the third
quarter: € 3,417 million; 2020: € 2,464 million).
The pre-tax return on sales (EBT margin) came in at
15.9% for the nine-month period (2020: 4.3%) and
12.4% for the third quarter (2020: 9.4%).
Nine-month delivery figures significantly up on previous year
Automotive segment sales in the third quarter of 2021
were impacted by semiconductor supply issues. Deliveries to customers
in Europe and Asia were down, whereas sales in the Americas region
rose year on year. Over the nine-month period, however, sales
growth was recorded for all major regions worldwide,
including an excellent performance on European
markets, where deliveries of BMW, MINI and Rolls-Royce brand
vehicles were up by 11.9% to 725,721 units (2020:
648,494 units).
The limited availability of semiconductors caused third-quarter
deliveries in Asia to fall to 254,739
units (2020: 288,907 units; -11.8%). However, the figure
contrasts sharply with Group performance over the nine-month period,
during which 835,090 units were delivered to
customers (2020: 705,789 units; +18.3%).
Third-quarter sales figures for China dropped to
203,008 units (2020: 230,920 units; ‑12.1%). Here,
too, figures were well up over the nine-month period, with 670,964
BMW, MINI and Rolls-Royce brand vehicles delivered to
customers since the beginning of 2021, 19.7% more than in the same
period one year earlier (2020: 560,367 units).
Overall, the BMW Group has continued to strengthen its competitive
position in all key regions. Mirroring this positive trend, sales
volume growth at brand level also ranged between ‘solid’ and
‘significant’ for the nine-month period. Worldwide, BMW
brand sales climbed by 19.3% (2021: 1,703,068
units; 2020: 1,427,392 units). MINI
brand deliveries increased to 224,838
units (2020: 208,124; +8.0%), whereby the 106.6%
growth in sales of electrified models – particularly the fully
electric MINI SE* – contributed considerably to the overall growth
recorded. The ultra-luxury brand Rolls-Royce
delivered 4,318
units to customers between January and September,
setting a new record for the period with an increase of 62.9% (2020:
2,651 units).
Automotive segment revenues rose significantly to
€ 70,373 million in the first nine months of the
current financial year (2020: € 54,829 million; +28.3%), of which
€ 22,628 million were recorded in the third quarter
(2020: € 21,962 million; +3.0%).
Profit before financial result (EBIT) jumped to
€ 7,945 million (2020: € 152 million; in the third
quarter: € 1,756 million; 2020: € 1,477 million; +18.9%), giving an
EBIT margin of 11.3% (2020: 0.3%)
for the nine-month period and 7.8% (2020: 6.7%) for
the three-month period from July to September 2021. As expected, the
third quarter was impacted to a greater degree by higher raw materials
prices and fixed costs (in particular RD expenses) as well as by
the lower sales volume.
The nine-month financial result recorded by the
Automotive segment amounted to € 1,711
million (2020: € 615 million, in the third quarter: € 374
million, 2020: € 383 million). As described above, the main driving
factors were the improved result from the at-equity accounted Chinese
joint venture BMW Brilliance Automotive Ltd. (BBA) and positive
valuation effects recognised in other financial result arising on
investments held by the BMW i Ventures fund as well as on the
investment in SGL Carbon.
Segment profit before tax (EBT) amounted to €
9,656 million (2020: € 767 million) for the nine-month
period and € 2,130 million (2020: € 1,860 million;
+14.5%) for the third quarter.
Free cash flow generated by the Automotive segment
amounted to € 1,397 million for the third quarter and
to € 6,299 million for the nine-month period. The
increase in cash flows from operating activities mainly reflected
higher earnings before tax and the favourable development of working
capital. Automotive segment free cash flow for the full year is
expected to be in the region of € 6.5 billion.
Motorcycles segment reports higher revenues and earnings
BMW Motorrad delivered 156,609
motorcycles and maxi-scooters (2020: 129,599 units; +20.8%) to
customers in the first nine months of 2021. With 48,999
units recorded during the third quarter, deliveries decreased
compared to the previous year due to model changes and supply issues
(2020: 52,892 units; -7.4%). Revenues rose
significantly to € 2,262 million (2020: € 1,716
million; +31.8%) for the nine-month period, including € 641
million recorded in the third quarter (2020: € 637 million;
+0.6%). Segment EBIT developed accordingly, rising
significantly to € 323 million for the nine-month
period (2020: € 110 million), but remaining below the previous year at
€ 39 million for the third quarter (2020: € 45
million; -13.3%). The segment EBIT margin came in at
14.3% (2020: 6.4%) for the nine-month period and
6.1% (2020: 7.1%) for the third quarter.
Financial Services segment reports strong growth in new business
The Financial Services segment reported significant
growth in new business with retail customers in the period from
January to September with 1,509,195
new credit financing and leasing contracts signed,
up by 12.4% on the previous year (2020: 1,342,803 contracts). New
business concluded with retail customers during the nine-month period
also rose sharply by 16.2% to € 48,000 million (2020:
€ 41,311 million), with the Chinese market in particular contributing
to the recorded growth.
In the third quarter, however, the supply-related reduction in
deliveries resulted in a lower number of new contracts (2021: 479,850
new contracts; 2020: 538,351 new contracts; ‑10.9%).
Over the nine-month period, 50.7% of new BMW Group
vehicles were either leased or financed by the Financial Services
segment (2020: 50.5%; +0.2 percentage points).
Segment earnings developed extremely positively in both the
three-month and nine-month periods. Segment
profit before tax (EBT) reached a new record level
with €
2,924 million (2020: € 1,039 million, in the third
quarter: € 988 million; 2020: € 458 million). Higher revenues
generated from the remarketing of lease returns, particularly in the
USA and the UK also drove up earnings. Moreover, segment profit
benefited from the favourable risk situation as well as the stable
margins arising on new business.
BMW Group confirms adjusted outlook for full year
The BMW Group raised its outlook for the full year on 30 September.
With its attractive product portfolio, it expects to continue
benefiting from a sustained favourable product mix and positive
pricing effects for new and pre-owned vehicles.
The BMW Group continues to forecast a Group profit before tax
that is significantly higher than in the previous year.
The Automotive segment is expected to record a solid
year-on-year increase in the number of BMW, MINI and Rolls-Royce brand
vehicles delivered to customers and RoCE is forecast to improve significantly.
The EBIT margin for the Automotive segment for the full year is set
to finish within a range of 9.5% to 10.5% (outlook prior to the ad-hoc
announcement dated 30 September: 7% to 9%).
The Financial Services segment is forecast to
achieve a return on equity (RoE) for the full year within a range of
20 to 23% (outlook prior to the ad-hoc announcement: 17% to 20%) due
to the improved risk situation.
The Motorcycles segment is expected to record a
significant increase in deliveries on the back of a positive market
trend. The EBIT margin is set to finish within a target range of 8 to
10%, leading to a considerably higher level of RoCE than one year earlier.
The BMW Group also reaffirms its forecast for non-financial
performance indicators. Accordingly, the proportion of
women in management functions is expected to increase slightly. At the
same time, the BMW Group is targeting a further significant reduction
in the carbon emissions generated by its EU new vehicle fleet.
According to current expectations, carbon emissions per vehicle
produced are likely to fall moderately.
The Group’s targets for the year are to be met with a
slightly smaller workforce. Forecasts for the
current year are based on the assumption that economic and political
conditions worldwide will not change significantly.
However, any deterioration of these factors could have a negative
impact on the BMW Group’s outlook. “We are firmly on course to
meet our outlook for the full year and we look ahead with confidence
,” said Nicolas Peter. “We expect the
semiconductor supply situation to remain an issue beyond 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
segment EBIT margin
%
14.3
6.4
–
EBT margin 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 tax (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 connection with a review of its sales practices and
related reporting practices, the BMW Group has reviewed prior-period
vehicle delivery data and ascertained that certain vehicle deliveries
were not reported in the correct periods. BMW Group has revised the
data on vehicle deliveries for previous years retrospectively. Further
information on this matter is provided in the BMW Group Report 2020
from page 128. As BMW Group continues to enhance its policies and
procedures regarding retail vehicle delivery data, it may not always
be practicable for BMW Group to adjust prior period data (and any such
adjustments would be of a de minimis nature without any material
impact on the comparability of periods).
2 Including deliveries to customers of the joint venture
BMW Brilliance Automotive Ltd., Shenyang.
3 Group profit before tax as a percentage of Group revenues.
4 Common / preferred stock. In computing earnings per share
of preferred stock, earnings to cover the additional dividend of €
0.02 per share of preferred stock are spread over the four quarters of
the corresponding financial year.
The BMW Group – an Overview
3rd quarter
2021
3rd quarter
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
segment EBIT margin
%
6.1
7.1
-14.1
EBT margin 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 tax (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 connection with a review of its sales practices and
related reporting practices, the BMW Group has reviewed prior-period
vehicle delivery data and ascertained that certain vehicle deliveries
were not reported in the correct periods. The BMW Group has revised
the data on vehicle deliveries for previous years retrospectively.
Further information on this matter is provided in the BMW Group Report
2020 from page 128. As the BMW Group continues to enhance its policies
and procedures regarding retail vehicle delivery data, it may not
always be practicable for the BMW Group to adjust prior period data
(and any such adjustments would be of a de minimis nature without any
material impact on the comparability of periods).
2 Including deliveries to customers of the joint venture
BMW Brilliance Automotive Ltd., Shenyang.
3 Group profit before tax as a percentage of Group revenues.
4Common / preferred stock. In computing earnings per share
of preferred stock, earnings to cover the additional dividend of €
0.02 per share of preferred stock are spread over the four quarters of
the corresponding financial year.
*:Consumption / emissions data:
MINI Cooper SE: Power consumption in kWh/100 km
combined: 16.9-14.9 NEDC, 17.6-15.2 WLTP.
GLOSSARY – explanatory comments on key performance indicators
Deliveries
A new or pre-owned vehicle will be recorded as a delivery once
handed over to the end user. End users also include leaseholders under
lease contracts with BMW Financial Services and – in the USA and
Canada – dealerships when they designate a vehicle as a service loaner
or demonstrator vehicle. In the case of pre-owned vehicles, end users
may include dealerships and other third parties when they purchase a
vehicle at auction or directly from BMW Group. Vehicles designated for
the end user and suffering total loss in transit will also be recorded
as deliveries. Deliveries may be made by BMW AG, one of its
international subsidiaries, a BMW Group retail outlet, or independent
dealerships. The vast majority of deliveries – and hence the reporting
of deliveries to the BMW Group – are carried out by independent dealerships.
EBIT
Profit/loss before financial result, comprising revenues less cost of
sales, selling and administrative expenses and the net amount of other
operating income and expenses.
EBIT margin
Profit/loss before financial result as a percentage of revenues.
EBT
EBIT plus financial result.
For enquiries, please contact:
Corporate Communications
Dr Britta Ullrich, Corporate Communications, Finance, Sales
Telephone: +49 89 382-18364, Britta.Ullrich@bmwgroup.com
Eckhard Wannieck, Head of Communication Group, Finance, Sales
Telephone: +49 89 382-24544, Eckhard.Wannieck@bmwgroup.com
Internet: www.press.bmwgroup.com
E-mail: presse@bmwgroup.com
The BMW Group
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 31 production and assembly
facilities in 15 countries; the company has a global sales network
with representatives in more than 140 countries.
In 2020, the BMW Group sold over 2.3 million passenger vehicles and
more than 169,000 motorcycles worldwide. The profit before tax in the
financial year 2020 was € 5.222 billion on revenues amounting to
€ 98.990 billion. As of 31 December 2020, the BMW Group had a
workforce of 120,726 employees.
The success of the BMW Group has always been based on long-term
thinking and responsible action. The Group set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategy, from the supply
chain through production to the end of the use phase of all its products.
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