Ladies and Gentlemen,
Good morning from me as well.
The long-term viability of a BMW Group is a tip priority. We are
now entering a subsequent proviso in a doing of a Strategy
NUMBER ONE NEXT: This year outlines a launch of a largest
product descent in a company’s history, including many new
electrified models. The BMW Group is clearly focusing on a future.
But, first, let’s take a demeanour during a latest financial figures.
After a good start to a year, a BMW Group demonstrated its
financial strength once again in a second entertain of 2017. The EBIT
domain of 9.7% for a automotive business was aloft than a same
entertain final year. Based on a clever opening in a initial half
of a year, we are means to endorse a superintendence for 2017.
We will continue to evenly strengthen a opening side
and to precedence efficiencies opposite all areas of a company. This
enables us to financial from a handling business a substantial
investments indispensable for foundation and unconstrained driving. This
stays a goal, even in a face of augmenting tellurian mercantile volatility.
In a second quarter, Group revenues rose by 3.1% to 25.80 billion
euros. Revenues for a initial 6 months climbed to 49.25 billion
euros. Group gain before taxation for a second entertain totalled 3.06
billion euros and were therefore 9.2% aloft than a prior year.
Pre-tax gain for a initial 6 months reached 6.06 billion euros –
partly due to one-time effects in a financial result. This tailwind
especially resulted from new investors appropriation a interest in a mapping
use HERE in a initial quarter, gratefulness effects in a other
financial outcome and a healthy gain grant from a Chinese
corner Venture BBA. The EBT domain for a second entertain was 11.8%.
In a initial 6 months of 2017, we continued to deposit in expanding
a prolongation network. Our concentration is now on a enlargement of our
Spartanburg plant and construction of a new plant in San Luis
Potosí. Investment in apparatus and products totalled
1.46 billion euros in a initial half of a year. Following a launch
of a new 5 Series Sedan, a renouned long-wheelbase chronicle for
China was expelled in June. The new 5 Series Touring is now also
available. The capex ratio stays comparatively low, during 3.0%. This is
standard for a initial half-year, in line with anniversary factors.
However, it is clearly aloft than final year. For a full year, we
design a ratio to be above final year’s figure, though still subsequent our
aim of 5%.
Research and expansion output for a first
half-year rose to 2.65 billion euros. This already reflects spending
for a indication descent over a subsequent dual years. We are also
stability to work on foundation of automobile architectures and
investing in technologies for unconstrained driving. The RD ratio
for a initial 6 months therefore increasing to 5.4%. As previously
announced, we design a RD ratio for 2017 and a subsequent dual years
to be somewhat above a aim operation of 5 to 5.5%.
I would now like to take a demeanour during opening in a particular segments.
Deliveries in a Automotive Segment climbed 4.6% to
around 634,000 vehicles in a second quarter. In a initial six
months, a sum of 1.22 million BMW Group vehicles were delivered to
business – an boost of 5.0% over a prior year. Segment
revenues for a initial 6 months rose by 4.8% to 43.67 billion euros.
Revenues for a entertain totalled 22.98 billion euros. Segment EBIT
for a second entertain was 2.8% higher, during 2.24 billion euros. The
EBIT domain for a same duration was 9.7%. Pricing stays challenging.
In highly-competitive markets, essential expansion is a clear
priority. Efficiency improvements were mostly means to equivalent high
RD costs and a analogous rising upfront investments for
crew development. The financial outcome for a second quarter
climbed to 147 million euros. The BBA corner try contributed 154
million euros to a at-equity-result – an boost of 10.0% over the
A few difference about a segment’s financial position: In terms of free
money upsurge we are on march to grasp a aim of 3 billion euros
for a full year. Free money upsurge for a initial half-year totalled
2.04 billion euros – partly due to a impact of a vital investments
we only referred to.
Let’s continue with a Financial Services Segment.
In a second entertain of 2017, we resolved scarcely 469,000 new
financing and leasing contracts with sell customers. This represents
a slight boost of 1.7% over a same duration of final year. We saw a
assuage diminution in a series of new leasing contracts, while the
series of new financing contracts increased. At a finish of Jun 2017,
a Financial Services Segment managed a sum of 4.88 million
contracts with sell business – 3.8% some-more than during a start of the
year. 47.6% of new BMW Group vehicles were leased or financed by the
Financial Services Segment in a initial half-year.
In a initial 6 months of 2017, pre-tax gain for a segment
climbed 10.3% to 1.18 billion euros. The risk conditions stays stable
overall. The net credit detriment ratio of 0.31% stays really low. On the
whole, used automobile prices worldwide stabilised in a second entertain of
2017. We are stability to guard trends really closely, also for
vehicles with diesel engines. From today’s perspective, we have made
adequate sustenance for business risks from loans and residual values.
Let’s pierce on to a Motorcycles Segment.
In a initial 6 months, we delivered roughly 88,400 motorcycles to
business – 9.5% some-more than a prior year. This was BMW Motorrad’s
best-ever initial half-year – with double-digit expansion in Europe, South
America and China. The segment’s second-quarter revenues rose by 12.8%
to 696 million euros, especially due to aloft volumes. Revenues for the
initial 6 months reached 1.32 billion euros. Segment EBIT for the
initial half-year increasing to 229 million euros. EBIT for a second
entertain totalled 104 million euros. The EBIT domain for a same
duration was 14.9%. The figure for a year to a finish of Jun stood during 17.4%.
So those were a sum for a Motorcycles Segment.
I would now like to speak about a outlook for the
Group for a second half of a year. The initial half of 2017
was certain for a BMW Group. However, with a uncertainty
surrounding domestic and mercantile developments worldwide, a rest of
a year will sojourn challenging. As usual, we also design to face
aloft losses in a second half of a year than during a beginning.
Nevertheless, on a basement of these clever figures, a BMW Group
stays assured about a second half of 2017, and we are means to
endorse a superintendence for a full year.
Provided conditions do not mellow significantly, we design to
grasp a slight boost in Group gain before
tax. We also foresee a slight boost in Automotive
deliveries, presumption conditions sojourn stable. Due to
certain interpretation effects, we design a boost in
Automotive Segment revenues for this year to be
solid. Although high upfront investment in destiny projects will dampen
earnings, we are still targeting an EBIT margin of
between 8 and 10% in a Automotive Segment for a full year.
Deliveries in a Motorcycles Segment are expected
to boost significantly this year. As in a Automotive Segment, we
will be targeting an EBIT margin within a 8-10%
operation for a Motorcycles Segment.
The certain business expansion in a Financial Services Segment
should continue in 2017. Faced with flourishing collateral adequacy
mandate and normalisation in a risk situation, return
on equity is approaching to diminution somewhat – however it is
approaching to sojourn above a smallest turn of 18%.
Ladies and Gentlemen,
Global mercantile and domestic conditions sojourn rarely flighty and
therefore formidable to predict. As formerly announced, we also
expect aloft costs for new indication launches and upfront investments
for vital projects in a second half of a year.
We are tackling this with ongoing measures on both a cost and the
income side and evenly tailoring a product and service
structure to a customers’ wishes. At a same time, we are setting
priorities and shortening complexity – both in a automobile choice and
a inner structures and processes.
Our vital concentration is resolutely on a prolonged term. There is no doubt in
my mind that we have a right plan – and a financial strength
we need to figure a future.