Munich. In a challenging environment, the BMW Group
ended the financial year 2021 strong and fulfilled its targets as
forecast. The premium manufacturer was able to significantly increase
both Group earnings and net profit compared to the previous year,
having already raised its guidance in May and September. Valuation
effects and reversals contributed to this improvement. The BMW Group
also met high expectations for its non-financial targets: For example,
in financial year 2021, the percentage of total deliveries from
electrified vehicles increased significantly to 13%. As well, the CO2
emissions value of the BMW Group’s EU new vehicle fleet was reduced to
115.9 g/km (WLTP).
The company has stepped up electrification of its product range,
while considerably enhancing its profitability.
“The past year provides clear evidence that successful transformation
bears fruit. The strong earnings we achieved in financial year 2021
are the result of our consistent strategy – with the right products at
the right time,” said Oliver Zipse, Chairman of the
Board of Management of BMW AG, on Thursday in Munich. “This success is
also thanks to our associates, and I would especially like to thank
them for their hard work and their passion. Together, we are
demonstrating that bold transformation and economic success go hand in
hand at BMW.”
High Group earnings for financial year 2021
The BMW Group ended the financial year 2021 with all-time highs for
Group revenues, earnings and net profit – all of which were
significantly higher.
Deliveries were up 8.4%, to
2,521,514 units, of which 13% were electrified
vehicles (328,314 units/ +70.4% YOY).
Group revenues climbed to
€
111,239 million (prev. yr.: € 98,990 million/
+12.4%). With a higher percentage of high-revenue vehicles, the BMW
Group benefited from positive product-mix effects and improved pricing
– both for the sale of new vehicles and the resale of end-of-lease
vehicles. Lower year-on-year employee numbers and modernisation of the
pension scheme for employees in Germany resulted in a lower cost of
sales in the high three-digit million euro range. However, this was
partially offset by higher expenses for performance-based remuneration
in the cost of sales. Further headwinds resulted from higher raw
material prices.
E-mobility and digitalisation drive RD costs
Higher research and development spending is an indication that the
BMW Group is consistently driving forward with its transformation.
Total costs for research and development in
accordance with IFRS increased significantly year-on-year to €
6,299 million (prev. yr.: € 5,689 million/ +10.7%).
Higher revenues meant the RD ratio, according to
the German Commercial Code, of 6.2% remained on a par
with the previous year (prev. yr.: 6.3%). In 2021, investments were
channelled into new vehicle architectures and toolkits in connection
with the electro-offensive. Additional expenses came from the
development of digital products and automated driving.
Capital expenditure for property, plant and equipment and
other intangible assets amounted to € 5,012
million in 2021 (2020: € 3,922 million/ +27.8%). The major
expansion of the electrified product line-up and upcoming series
launches led to corresponding capital expenditure at the plants
involved. The capex ratio of 4.5%
was within the target range of 5% as planned.
The BMW Group reported earnings before financial
result for the full year of €
13,400 million (prev. yr.: € 4,830 million/ +177.4%).
Group earnings before tax also saw a strong
increase, reaching an all-time high of € 16,060
million (prev. yr.: € 5,222 million/ +207.5%). A positive
effect of around € 1 billion resulted from the partial reversal of the
provision for the EU Commission’s antitrust proceedings, after these
were concluded in the second quarter.
Group net profit also reached a new all-time high of
€ 12,463 million (prev. yr.: € 3,857 million/ +223.1%).
Dividend to increase proportionally
Shareholders should also participate to an appropriate extent in the
success of the company. Based on the annual financial statements of
BMW AG, the unappropriated profit (according to the German Commercial
Code) for distribution to shareholders amounts to €
3,827 million (prev. yr.: € 1,253 million/ +205.4%).
While maintaining the target range of 30-40% for the payout ratio, the
Board of Management and Supervisory Board will propose a
dividend of € 5.80 per share
of common stock (prev. yr.: € 1.90) and €
5.82 per share of preferred stock
(prev. yr.: € 1.92) to the Annual General Meeting on 11 May. The
payout ratio amounts to 30.7% (prev. yr.: 32.5%).
“We intend to keep our promise of enabling shareholders to
participate in the company’s success at a reliable and commensurate
level. With a payout ratio of 30.7%, our shareholders will also be
able to benefit from a strong financial year 2021,” said
Nicolas Peter, Member of the Board of Management of
BMW AG, Finance.
EBIT margin of Automotive Segment at 10.3%
The Automotive Segment benefited from better pricing
and an improved product mix in 2021, as demand remained high. Due to
the global semiconductor shortage, fewer new vehicles were available
on the market and high-revenue models were preferred. Positive
residual value development for end-of-lease vehicles – especially in
the US and the UK – also contributed to higher segment income.
Increased business from new parts and accessories also lifted revenues.
As a result, segment revenues were significantly
higher, at €
95,476 million (prev. yr.: € 80,853 million/ +18.1%).
Earnings before financial result (EBIT) amounted to
€ 9,870 million (prev. yr.: € 2,162 million/
+356.5%). At 10.3%, (2020: 2.7%; +7.6 percentage
points), the segment EBIT margin was at the high end
of our guidance.
The segment’s financial result of €
1,935 million was significantly higher year-on-year
(2020: € 560 million/ +345.5%). It benefited, in particular, from the
higher contribution of our Chinese joint venture, BMW Brilliance
Automotive Ltd., as well as positive valuation effects from equity
investments and shares.
The total earnings before tax for financial year
2021 of €
11,805 million were significantly higher than the
figure for the previous year (2020: € 2,722 million/ +333.7%).
Free cash flow in the Automotive Segment reached a
new all-time high of € 6,354 million (prev. yr.: €
3,395 million/ +87.2%) at year end.
As forecast, return on capital employed (RoCE) for
the automotive business also increased significantly in 2021 to
59.9% (prev. yr.: 12.7%/ +47.2ppts). This significant
increase primarily resulted from the much higher EBIT in the
year-on-year comparison.
Financial Services Segment delivers high earnings contribution
The Financial Services Segment also benefited from
high demand for new and used premium vehicles. The number of
new retail contracts with customers reached
1,956,514 for the full year (prev. yr.: 1,845,271/
+6%). The total portfolio of 5,577,011 retail contracts managed at the
end of 2021 was on a par with the previous year (prev. yr.: 5,591,799
contracts/ -0.3%).
Revenues in the Financial Services
Segment increased significantly to €
32,867 million (prev. yr.: € 30,044 million/ +9.4%)
in 2021. Pre-tax earnings in the Financial Services
Segment totalled €
3,753 million (prev. yr.: € 1,725 million/ +117.6%)
and were therefore also significantly higher than the previous year.
The increase in revenues and earnings mainly resulted from higher
income from end-of-lease vehicles due to positive price development in
the used car markets. The need for value adjustments for credit risks
remained low – which had a further positive effect on earnings.
At 22.6%, return on equity in the
Financial Services Segment was at the high end of our guidance
corridor of 20-23% (prev. yr.: 11.2%/ +11.4 percentage points). This
increase mainly stems from the improvement in the risk situation
during the financial year.
BMW Motorrad with strong growth in revenues and earnings
BMW Motorrad delivered 194,261 units (prev. yr.:
169,272/ +14.8%) to customers in 2021. The segment posted
revenues of €
2,748
million (prev. yr.: € 2,284 million/ +20.3%) and an
EBIT of €
227 million (prev. yr.: € 103 million/ +120.4%). The
EBIT margin came in at 8.3% (prev.
yr.: 4.5%/ +3.8 percentage points) and is therefore within the
guidance corridor of 8-10%.
The main drivers were positive product-mix effects and sales growth.
The significant increase in return on capital
employed to 35.9% (prev. yr.: 15.0%/ +20.9
percentage points) mainly reflects the improvement in EBIT.
“Our business figures are proof that we were able to combine the
underlying transformation and the major investment it entails with
strong operational success in a very volatile environment in 2021. We
are in a good position and optimistic about the future. The rating
agencies have affirmed this by revising our outlook to ‘stable’ last
year,” said Nicolas Peter, member of the Board of
Management of BMW AG responsible for Finance on Thursday in Munich.
Successful fourth quarter, despite cost headwinds
The BMW Group ended 2021 with a successful
fourth quarter, despite continuing semiconductor
supply bottlenecks and rising energy and raw material prices. During
this period, deliveries of the three premium automotive brands, BMW,
MINI and Rolls-Royce decreased to 589,290 units
(prev. yr.: 687,012/ -14.2%), due to the semiconductor situation. At
the same time, exceptionally high orders confirmed the strong appeal
of the current product line-up. Electrified vehicles
accounted for just over 16% of sales volumes, with 96,739
units delivered to customers. Group revenues
totalled € 28,408 million (prev. yr.: € 29,482
million/ -3.6%).
Group profit before tax for this period increased
significantly to € 2,907
million (prev. yr.: € 2,260 million/ +28.6%).
Despite higher fixed costs, as is usual in the final quarter of the
year, the Group EBT margin came in at
10.2%. Group net profit for the
fourth quarter amounted to € 2,256 million (prev.
yr.: € 1,680 million/ +34.3%).
In the Automotive Segment, the EBIT
of €
1,925 million (prev. yr.: € 2,010 million/ -4.2%) was
down slightly year-on-year, essentially due to the lower sales volume.
At €
2,352 million, capital expenditure
was also significantly higher than in the same period of 2020 (prev.
yr.: € 1,547 million). The Automotive
Segment
EBIT margin for the final quarter of the year was
7.7% (prev. yr. 7.7%).
The Financial Services Segment once again
significantly increased its fourth-quarter pre-tax earnings to €
829 million (prev. yr.: € 686 million/ +20.8%), as it
continued to benefit from high prices in the used car markets,
especially in the US and the UK.
Workforce slightly lower year-on-year
The BMW Group employed a workforce of 118,909 at the
end of 2021 (prev. yr.: 120,726/ -1.5%). This year, the company plans
to hire new staff for its further digitisation and electrification of
its product range.
Share repurchase authorisation to be proposed to Annual
General Meeting
Thanks to its successful business development, the BMW Group has a
healthy balance sheet and a very solid financing structure. It also
has the potential to generate sustainably high free cash flow. One
reason for this is the recent full consolidation of the Chinese joint
venture BMW Brilliance Automotive Ltd. in the BMW Group Financial
Statements. To retain the option of optimising the company’s capital
structure, the Board of Management and the Supervisory Board will
propose to the Annual General Meeting that the Board of Management be
authorised to purchase and retire treasury shares. In accordance with
the legal framework, the Board of Management would be authorised for a
period of five years to purchase shares in the company worth up to 10%
of the total share capital and to retire or to use them.
Integrated BMW Group Report 2021 addresses all SASB requirements
Sustainability is a central dimension of the BMW Group corporate
strategy. In this year’s BMW Group Report, which will be published on
16 March, the BMW Group has fully integrated the requirements of the
Sustainability Accounting Standards Board (SASB) into its reporting
for the first time.
“We understand that our economic success in the future will depend,
more than today, on further reducing the negative impact of our
operating activities on the environment and making a positive
contribution to the development of society,” said Nicolas
Peter. “The Integrated BMW Group Report 2021 provides a
holistic, qualified insight into the BMW Group, by incorporating
comprehensive non-financial KPIs into our regular reporting.
Disclosing our sustainability efforts in a way that is transparent and
comprehensible puts our company on the right track. We aim to lead our
industry in this area.”
Proposal of reelection of Supervisory Board member
The mandate of Dr Heinrich Hiesinger will end at the Annual General
Meeting 2022. On the recommendation of the nomination committee, the
Supervisory Board proposes Dr Hiesinger for another four-year mandate.
In accordance with the criteria of the German Corporate Governance
Code, the candidate is considered to be independent by the Supervisory Board.
* * *
You will receive further information on the Group Financial
Statements 2021 and the outlook for the current financial year at the
BMW Group Annual Conference on 16 March 2022. You can follow the
virtual event live on the internet at: http://www.live.bmwgroup.com/en/live-streaming/
The BMW Group Report 2021 will be published at 7.30 a.m. (CET) on 16
March at https://www.bmwgroup.com/en/investor-relations/company-reports.html
The BMW Group – an overview
2021
2020
Change in %
Deliveries to customers
Automotive
1
units
2,521,514
2,325,179
8.4
thereof:
BMW2
units
2,213,790
2,028,841
9.1
MINI2
units
302,138
292,582
3.3
Rolls-Royce2
units
5,586
3,756
48.7
Motorrad
units
194,261
169,272
14.8
Employees
(compared to 31 Dec. 2020)
118,909
120,726
-1.5
Automotive Segment
EBIT margin
percent
10.3
2.7
+7.6% points
Motorcycles
Segment EBIT margin
percent
8.3
4.5
+3.8% points
EBT margin BMW Group
3
percent
14.4
5.3
+9.1% points
Revenues
€ million
111,239
98,990
12.4
thereof:
Automotive
€ million
95,476
80,853
18.1
Motorcycles
€ million
2,748
2,284
20.3
Financial
Services
€
million
32,867
30,044
9.4
Other
Entities
€
million
5
3
66.7
Eliminations
€ million
– 19,857
-14,194
39.9
Profit before financial result
(EBIT)
€ million
13,400
4,830
177.4
thereof:
Automotive
€ million
9,870
2,162
356.5
Motorcycles
€ million
227
103
120.4
Financial
Services
€
million
3,701
1,721
115.0
Other
Entities
€
million
-8
36
–
Eliminations
€ million
-390
808
–
Profit before tax (EBT)
€ million
16,060
5,222
207.5
thereof:
Automotive
€ million
11,805
2,722
333.7
Motorcycles
€ million
228
100
128.0
Financial
Services
€
million
3,753
1,725
117.6
Other
Entities
€
million
531
-235
–
Eliminations
€ million
-257
910
–
Income taxes
€ million
– 3,597
– 1,365
–
Net profit
2
€ million
12,463
3,857
223.1
Earnings per share
(common/preferred share)
€
18.77/18.79
5.73/5.75
–
1 Including Joint Venture BMW Brilliance Automotive Ltd.,
Shenyang (2021: 651,236 vehicles, 2020: 602,247 vehicles, 2019:
538,612 vehicles, 2018: 455,581 vehicles, 2017: 385,705 vehicles).
2 Retail vehicle delivery data presented for 2020 and 2021
is not directly comparable to such data presented for previous years.
For further information on retail vehicle delivery data, please see
Comparison of Forecasts with Actual Outcomes within the BMW Group
Report 2021.
3 Ratio of Group earnings before taxes to Group revenues
The BMW Group – an overview
Q4/2021
Q4/2020
Change in %
Deliveries to customers
Automotive
1
units
589,290
687,012
-14.2
thereof:
BMW2
units
510,722
601,449
-15.1
MINI2
units
77,300
84,458
-8.5
Rolls-Royce2
units
1,268
1,105
14.8
Motorcycles
units
37,652
39,673
-5.1
Employees
(compared
to 31 Dec. 2020)
118,909
120,726
-1.5
Automotive Segment
EBIT margin
percent
7.7
7.7
–
Motorcycles
Segment EBIT margin
percent
-19.8
-1.2
-18.6% points
EBT margin BMW Group
3
percent
10.2
7.7
+2.5% points
Revenues
€ million
28,408
29,482
-3.6
thereof:
Automotive
€ million
25,103
26,024
-3.5
Motorcycles
€ million
486
568
-14.4
Financial
Services
€
million
8,688
7,989
8.7
Other
Entities
€
million
2
2
–
Eliminations
€ million
-5,871
-5,101
15.1
Profit before financial result
(EBIT)
€ million
2,487
2,197
13.2
thereof:
Automotive
€ million
1,925
2,010
-4.2
Motorcycles
€ million
-96
-7
–
Financial
Services
€
million
832
664
25.3
Other
Entities
€
million
-5
-7
–
Eliminations
€ million
-169
-463
–
Profit before tax (EBT)
€ million
2,907
2,260
28.6
thereof:
Automotive
€ million
2,149
1,955
9.9
Motorcycles
€ million
-96
-8
–
Financial
Services
€
million
829
686
20.8
Other
Entities
€
million
153
55
178.2
Eliminations
€ million
-128
-428
–
Income taxes
€ million
-651
-580
12.2
Net profit
€ million
2,256
1,680
34.3
Earnings per share
(common/preferred share)
€
3.39/3.40
2.53/2.54
–
1 Including Joint Venture BMW Brilliance Automotive Ltd., Shenyang
(2021: 651,236 vehicles, 2020: 602,247 vehicles, 2019: 538,612
vehicles, 2018: 455,581 vehicles, 2017: 385,705 vehicles).
2 Retail vehicle delivery data presented for 2020 and 2021
is not directly comparable to such data presented for previous years.
For further information on retail vehicle delivery data, please see
Comparison of Forecasts with Actual Outcomes within the BMW Group
Report 2021.
3 Ratio of Group earnings before taxes to Group revenues
GLOSSARY – explanatory comments on key performance indicators
Deliveries to customers
A new or used vehicle is recorded as a delivery once its handed
over to the end user (which also includes leaseholders under lease
contracts with BMW Financial Services). In the US and Canada, end
users also include (1) dealers when they designate a vehicle as a
service loaner or demonstrator vehicle and (2) dealers and other third
parties when they purchase a company vehicle at auction and dealers
when they purchase company vehicles directly from the BMW Group.
Deliveries may be made by BMW AG, one of its international
subsidiaries, a BMW Group retail outlet, or independent third-party
dealers. The vast majority of deliveries – and hence the reporting of
deliveries to the BMW Group – is made by independent third-party
dealers. Retail vehicle deliveries during a given reporting period do
not correlate directly to the revenues that the BMW Group recognises
in respect of that particular reporting period.
EBIT
Profit before financial result. Profit before financial result
comprises revenues less cost of sales, less selling and administrative
expenses and plus/minus net other operating income and expenses.
EBIT margin
Profit/loss before financial result as a percentage of revenues.
EBT
EBIT plus financial result.
For queries, please contact:
Corporate Communications
Dr Britta Ullrich, Communications Finance
E-mail: britta.ullrich@bmw.de, phone: +49-89-382-18364
Eckhard Wannieck, Head of Communications Corporate, Finance, Sales
E-mail eckhard.wannieck@bmw.de,
phone: +49 89 382-24544
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 in
more than 140 countries.
In 2021, the BMW Group sold over 2.5 million passenger vehicles and
more than 194,000 motorcycles worldwide. The profit before tax in the
financial year 2021 was € 16.1 billion on revenues amounting to
€ 111.2 billion. As of 31 December 2021, the BMW Group had a workforce
of 118,909 employees.
The success of the BMW Group has always been based on long-term
thinking and responsible action. The company set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategic direction, from
the supply chain through production to the end of the use phase of all products.
www.bmwgroup.com
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