Statement Dr. Nicolas Peter, Member of a Board of Management of BMW AG, Finance, Conference Call Interim Report to 30 Sep 2017

Ladies and Gentlemen,


Good morning from me as well. The BMW Group enters a final quarter
with clever financial figures. We have set a right course: After the
initial 9 months, we are on lane to accommodate a superintendence for a full
year. We grasp a business goals and during a same time, invest
strongly in a future. Both in a automotive business and during Group
level, we augmenting a gain for a initial 9 months. The EBIT
domain in a Automotive Segment for a year to a finish of September
stood during 9.1%. Group gain before taxation climbed 9.6% to 8.48 billion euros.


Deliveries worldwide grew by 3.7% adult to a finish of September. We are
targeting essential expansion and an optimal change between sales
volume and gain in all regions. In China, we did good with both
a BBA corner try and alien vehicles. Sales in Europe increased
rather in a initial 9 months of a year. In a US, a auto
marketplace engaged serve in a year to a finish of September. We
sojourn 100 percent committed to a element of profitability before volume.


Our goals for a full year sojourn ambitious.

One of a pivotal high-volume models, a new BMW X3, will be launched
in a fourth quarter. Furthermore, a new BMW 5 Series is now fully
available. The revised indication of a successful BMW i3 and a sporty
i3s will also strengthen a extended choice of electrified vehicles
starting in November.


Our plan is successful.

  • We are holding advantage of a movement from a attractive
    product portfolio and a coherence of a tellurian presence.
  • At a same time, we are creation a core business even some-more efficient.
  • We are holding complexity out of our product and service
    offering for our customers
  • And we whet a concentration on a essential.

This will capacitate us to pursue a idea of being a personality in important
destiny technologies.


Ladies and Gentlemen,

Let’s take a demeanour during a financial sum in detail.  

Group revenues for a third entertain were on a standard with final year, at
23.42 billion euros, notwithstanding being dampened rather by currency
headwinds. Revenues for a initial 9 months climbed 5.0% to 72.67
billion euros. As announced earlier, aloft RD costs in a third
entertain slowed gain growth, compared with a initial half of the
year. Group pre-tax gain for a third entertain totalled 2.42
billion euros. The figure for a initial 9 months augmenting by 9.6%
to 8.48 billion euros. Despite high upfront investments, a EBT
domain for a third entertain was 10.3%. Therefore a BMW Group
stays one of a many essential car manufacturers worldwide.


We continue to make a required preparations for a hurdles our
attention will face in a future. The association invested a sum of 2.82
billion euros in apparatus and products in a initial 9 months of
a year. This represents a poignant boost of over 800 million
euros compared to a prior year. The capex ratio stood during 3.9%.


Research and expansion output for a initial 9 months
augmenting to 4.06 billion euros, heading final year´s figure by over
700 million euros. As announced, a RD ratio for a year to the
finish of Sep rose to 5.6%.


We recently non-stop a new campus for unconstrained pushing nearby Munich.
Here, adult to 2,000 engineers will be operative on destiny mobility. In
addition, we are investing around 400 million euros for a expansion
of a investigate and creation centre FIZ. By 2019, around 5,000
employees will be operative in this artistic environment. We are also
stability to forge forward with electro-mobility: We now offer
business a sum of 9 electrified models: battery-electric or
plug-in hybrid. The BMW 5 Series and a MINI Countryman are two
additional high-volume models with plug-in hybrid drivetrains we have
only successfully launched. And serve projects are in a pipeline.

This shows: The BMW Group is on a heading corner in a domain of
electro-mobility. We have a broadest operation of electrified vehicles
in a reward segment. Moreover, we are evenly investing in
augmenting a coherence of a prolongation network and expanding
charging infrastructure.


Ladies and Gentlemen,

That was an overview of a Group´s performance.

Let’s take a closer demeanour during a Automotive Segment. In a third
quarter, a BMW Group sole some-more than 590,000 BMW, MINI and
Rolls-Royce vehicles. Sales were therefore 1.2% higher. Between
Jan and September, deliveries augmenting by 3.7% to 1.81 million
vehicles. In a initial 9 months, shred revenues rose by 2.3% to
64.71 billion euros. Third-quarter revenues totalled 21.04 billion
euros. Revenue expansion was dampened rather by currency
headwinds. In a third quarter, Automotive EBIT– gain from our
handling business – stood during 1.75 billion euros. The EBIT domain for
a same duration was 8.3%.


As formerly announced, high expenditures for investigate and
expansion and vital projects are increasingly reflected in the
third entertain results.

As in a initial dual quarters, RD losses were above the
prior year.

In a third entertain alone it augmenting by 164 million euros compared
to 2016. Other handling losses enclosed additions to supplies for
authorised disputes and other lawsuit risks. These are not associated to
a new antitrust examination by a EU Commission.


Competition worldwide stays as heated as ever. We are constantly
operative to grasp a right change between profitability and volume.
The financial outcome for a year to a finish of Sep softened to
682 million euros. This was generally due to certain gratefulness effects
in a initial entertain and a clever opening of a BMW Brilliance
Automotive corner try in China. The financial outcome for a third
entertain totalled 127 million euros.


Let’s take a brief demeanour during a segment’s money flow.

Despite a high spin of investment mentioned above, giveaway money flow
continued to be clever in a third quarter. In a initial 9 months
of a year it amounted to 2,70 billion euros. Free money upsurge for the
full year is approaching to sum some-more than 3 billion euros.


The Financial Services Segment also achieved good between January
and September. Almost 1.37 million new contracts were resolved with
sell business in a initial 9 months. This represents a slight
boost of 2.0% over a prior year, generally due to expansion in
credit financing in China. Around 435,000 new leasing and financing
contracts were resolved in a third quarter. As of 30th September
2017, a Financial Services Segment confirmed a sum of roughly 4.95
million contracts with sell business – 5.2% some-more than during a finish of 2016.

The invasion rate for a initial 9 months stood during 46.7%. This
means that scarcely half of new BMW Group vehicles are possibly leased or
financed by a Financial Services Segment. The commission of leasing
contracts is trending downwards slightly, due in partial to a lower
leasing invasion in a US. 


In a year to a finish of September, pre-tax gain for a segment
climbed 9.3% to 1.79 billion euros. The risk conditions remained mostly
unvaried from a prior year. The credit detriment ratio of 0.30% for
a whole credit portfolio is still during a same low spin as last
year. On a general used-car markets, a conditions was largely
fast in a third quarter. We are stability to guard trends for
used vehicles with diesel engines really closely. The Financial Services
Segment follows a comprehensive, active proceed to risk management
and has done adequate provisions.


Let’s pierce on to a Motorcycles Segment.

BMW Motorrad continues to perform good with a clever sales increase
of 10.1% to roughly 128,000 units in a initial 3 quarters. In
Europe, sales expansion has been really certain so distant this year.
France and Italy both reported double-digit growth. Despite a dump in
a altogether market, deliveries in Germany saw a plain increase. Sales
expansion in China remained dynamic. Segment revenues rose by 11.1%
between Jan and September, in line with sales development, to
strech 1.83 billion euros. Third-quarter revenues totalled 514 million
euros. EBIT for a year to a finish of Sep climbed 25.9% to 282
million euros, while third-quarter EBIT reached 53 million euros. The
EBIT domain for a initial 9 months was 15.4%.


Ladies and Gentlemen,

I would like to spin now to a opinion for a full year.

With a stream doubt surrounding domestic and economic
developments worldwide, a fourth entertain will also remain
challenging. Despite these challenges, we continue to sojourn on course
to accommodate a targets for a full year.

We foresee a slight boost in deliveries in a Automotive
Segment, presumption conditions sojourn stable. Due to currency
interpretation effects – generally a clever euro – we now design a
slight, rather than plain boost in Automotive Segment revenues for
this year. Despite high upfront investments in future-oriented
projects we sojourn committed to an EBIT domain of between 8 and 10% in
a Automotive Segment for a full year.


Deliveries in a Motorcycles Segment are approaching to increase
significantly this year. As in a Automotive Segment, we are also
targeting an EBIT domain within a 8-10% operation for a Motorcycles
Segment. The certain business expansion in a Financial Services
Segment should continue in 2017.

Faced with augmenting equity collateral mandate and normalisation
in a risk situation, lapse on equity is approaching to decrease
slightly. However, it should still sojourn above a targeted spin of
18%. Our foresee assumes that mercantile and domestic conditions will
not mellow significantly.


Ladies and Gentlemen,


The BMW Group is one of a many essential automobile manufacturers in the
world. Our financial strength forms a basement for a continued
expansion of cutting-edge technologies. Our explain to care in
a reward shred is formulated in a strategy. Sustainable
profitability and unchanging march towards a destiny are our
transparent concentration – and they go palm in hand.


We have done serve vital decisions to secure a future
competitiveness of a company. We are one of a heading providers of
electrified vehicles worldwide and are ceaselessly expanding our
e-mobility offering. We are operative with clever partners to rise a
complement for unconstrained pushing that will set standards in a industry.


For us, opening is not only about gratifying business – it is
about surpassing their expectations. And we are systematically
optimising a products and services to do so. With BMW, MINI,
Rolls-Royce and BMW Motorrad, we have 4 strong, rarely appealing brands.


We are staying a march – with a passion to innovate and a clear
joining to a profitability targets.

Thank you.



Consumption and Emission Data.


  • BMW i3s: electric energy expenditure combined: 14,3 kWh; CO2
    emissions combined: 0 g/km
  • BMW i3: electric energy expenditure combined: 13,6 – 13,1 kWh/100
    km; CO2 emissions combined: 0 g/km
  • BMW 530e iPerformance: fuel expenditure combined: 1,9 l/100 km;
    CO2 emissions combined: 44 g/km
  • MINI Cooper S E Countryman ALL4: fuel expenditure combined: 2,3 –
    2,1 l/100 km; CO2 emissions combined: 52 – 49 g/km; Electric power
    expenditure combined: 14,0 – 13,2 kWh/100 km 

Fuel expenditure sum formed on a EU exam cycle, might vary
depending on a tyre format specified.


 Further information on central fuel expenditure figures, specific
CO2 glimmer values and a electric energy expenditure of new
newcomer cars is enclosed in a guideline “Guideline for fuel
consumption, CO2 emissions and electric energy expenditure of new
newcomer cars”, that can be performed from all dealerships, from
Deutsche Automobil Treuhand GmbH (DAT), Hellmuth-Hirth-Str. 1, 73760
Ostfildern-Scharnhausen and during