Statement Dr Nicolas Peter, Member of a Board of Management of BMW AG, Finance, Conference Call Quarterly Statement to 30 Sep 2021

Good Morning, Ladies and Gentlemen.


The BMW Group’s certain business expansion in a initial nine
months of a year confirms a vital course.


Throughout a semiconductor crisis, a employees have delivered
superb performance, month after month. That is how we were able
to lift a approaching targets for a year again in September.


All segments are on lane to accommodate a superintendence for a year. We
continue to concentration on gearing a BMW Group towards emission-free
mobility – appropriation a investments indispensable from a ongoing business.


We will keep a Performance Programme going, with a categorical concentration on
a unchanging exploitation of marketplace potential.


Moreover, we are picking adult a gait in a digitalisation of
processes opposite a whole company. And we will continue to work
consistently on a optimisation of a operative capital, in particular
on a logistics.


Let’s start with a financial sum for a Group.

Group revenues for a initial 3 buliding of 2021 climbed by 19.2%
to 82.83 billion euros. Third-quarter revenues increasing to 27.47
billion euros.


As expected, Group gain before taxation for a year to a finish of
Sep were significantly aloft than a before year, during 13.15
billion euros. The figure for a third entertain was 3.42 billion
euros. The Group EBT domain for a year to a finish of Sep was
15.9%; in a third quarter, it was 12.4%.


We therefore can be assured that we will not usually achieve
significantly aloft Group gain for a year, as previously
announced, though also transcend a long-term aim of during slightest 10% for
Group EBT margin.


After a clever initial half-year, third-quarter automobile sales were, as
expected, revoke than a prior-year entertain – due in partial to the
ongoing semiconductor supply bottlenecks.


Strong patron direct is reflected in stability certain pricing
effects, while a indication brew has also continued to improve.


Sustained high prices on general preowned automobile markets also
resulted in really enlightened income levels from a resale of
end-of-lease vehicles in a third quarter. This has enabled us to
some-more than equivalent a diminution in volumes.


Ladies and Gentlemen,

With a marketplace launch of a dual all-electric iX and i4 models in
November, we reached another vital milestone. New orders for both
vehicles are really strong.


We continue to pull brazen with a foundation of a entire
indication range, as planned. As formerly announced, we are also making
serve investments in digitisation.

This will be a sole concentration for us this year and in 2022, with
honour to both a vehicles and a processes.


By a finish of a year, a BMW Group will have a largest fleet
means of over-the-air upgrades among a foe with around 2.5
million vehicles.


Also as formerly announced, investigate and expansion spending for
a third entertain was adult roughly 200 million euros on a previous
year, during 1.6 billion euros. This was also aloft than a preceding quarters.


The RD ratio increasing to 6.5% for a entertain and 5.3% for the
initial 9 months of a year. We continue to design a RD ratio
for a full year to be on a standard with a before year, during about 6%.


At around 950 million euros, collateral output is also aloft than
a before year’s quarter, as planned. This represents a capex ratio
of 3.5% for a third entertain and 3.2% for a year to a finish of
September. We still design a ratio for a full year to be well
next a aim figure of 5%.


Through a altogether certain marketplace development, a BBA outcome in
a financial outcome continued to urge in a third quarter.


Ladies and Gentlemen,

Let’s pierce on to a particular segments, starting with the
Automotive Segment.


As expected, semiconductor supply bottlenecks slowed down sales in
a third quarter. However, interjection to a ability to respond quickly
and a high turn of coherence in a tellurian prolongation system, we
were means to extent a impact on automobile manufacturing.


In line with clever patron demand, revenues increasing to some-more than
70 billion euros in a year to a finish of September. Third-quarter
revenues totalled 22.63 billion euros, around 3% some-more than the
before year.


The shred also achieved a new all-time high, with an EBIT of 7.95
billion euros during a finish of September. Despite a diminution in volumes
due to a supply bottlenecks, EBIT for a third entertain rose by
scarcely 19% to 1.76 billion euros.


This represents an EBIT domain of 11.3% for a year to a finish of
Sep and 7.8% for a quarter.


As expected, a gain movement enervated during a start of the
second half of a year, compared with a initial half-year.


In serve to a semiconductor issues, increasing tender material
prices and aloft bound costs due to a expansion in investigate and
expansion spending also had an impact on earnings. However, this was
equivalent by certain pricing effects ensuing from supply shortages and
a certain trend in residual values.


This expansion is also reflected in a grant of a Chinese
corner venture, BBA, to a financial result. The sum third-quarter
at-equity outcome was 35 million euros aloft than a before year.


The clever gain movement and unchanging ongoing government of
register levels are also clear in a segment’s giveaway money flow.


At a finish of September, giveaway money upsurge totalled roughly 6.3 billion
euros – notwithstanding aloft collateral expenditure, scheduled money outflows
for crew restructuring measures and remuneration of a excellent imposed
by a European Commission in tie with a antitrust proceedings.


This means we are on march to accommodate a upwardly practiced aim for
2021 of around 6.5 billion euros.


We design a serve boost in collateral output in a fourth
quarter, as good as significantly aloft allege taxation payments. Due to
a supply bottlenecks we mentioned, gain expansion will also
break somewhat compared to a initial 9 months of a year.


The Financial Services Segment once again delivered a strong
performance. More than 1.5 million new financing and leasing contracts
were resolved with sell business in a year to a finish of
September. This means a series of new contracts is also aloft than
in 2019, before a pandemic.


Between Jan and September, shred gain before taxation climbed by
scarcely 1.9 billion euros to some-more than 2.9 billion euros.

The figure for a third entertain increasing to 988 million euros.


A pivotal cause in this expansion stays a unusually positive
trend in preowned automobile markets worldwide – heading to aloft income
from a resale of end-of-lease vehicles. Expenses for credit risks
also sojourn low. In a before year, we practiced risk provisioning for
a pestilence – that had a dampening outcome on shred earnings.


The Motorcycles Segment also achieved good in a initial 9 months
of a year. More than 156,000 motorcycles were delivered to customers
in a year to a finish of Sep – a fifth some-more than in a same
duration of 2020.


The segment’s handling gain roughly tripled to 323 million euros.
The figure for a third entertain was 39 million euros. This represents
an EBIT domain of 14.3% for a initial 9 months and 6.1% for a quarter.


Ladies and Gentlemen,

Let’s pierce on now to a opinion for a pivotal financial and
non-financial opening indicators.


We design to see a poignant boost in Group pre-tax gain for
a full year.


The series of employees is projected to be somewhat revoke than final year.


In a Automotive Segment, we are forecasting a plain boost in the
series of vehicles delivered to customers, compared to a before year.


Electrified vehicles will comment for a significantly higher
commission of sum volumes. By a finish of September, we had already
sole some-more than twice as many battery-electric vehicles than in the
before year.


We will once again significantly revoke a CO₂ emissions of a new
automobile fleet.


However, a stream doubt over semiconductor reserve will
continue to interrupt prolongation in a fourth quarter. As previously
announced, high tender element prices and a boost in bound costs
towards a finish of a year will also impact earnings.


We design a EBIT domain in a Automotive Segment to be within the
operation of 9.5 to 10.5%, as formerly communicated.


The categorical reason for a certain composition of a superintendence in
Sep was continued certain pricing – for both new and preowned vehicles.


In a Financial Services Segment, we design a lapse on equity of
between 20 and 23%, in line with clever business expansion and the
certain residual value and credit risk situation.


In a Motorcycles Segment, we design a poignant boost in
deliveries. The EBIT domain will sojourn within a aim operation of 8
to 10%.


Our superintendence assumes that domestic and mercantile conditions will not
mellow significantly.


Ladies and Gentlemen,

As formerly announced, we design a fast gain expansion in
a fourth quarter. Customer direct will sojourn strong.


However, a semiconductor supply bottlenecks will still be a main
conversion factor.


Our clever opening in a initial 9 months of a year once
again proves a handling strength. At a same time, we continue to
concentration on a serve technological expansion of a products. 


That is because we will enter a new year with full confidence.


Thank you.