Interim / Quarterly Report • Nov 4, 2020
Interim / Quarterly Report
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30 September 2020
Page 4 BMW Group in Figures
Page 9 Report on Economic Position Page 9 General Economic Environment Page 10 Group Overview Page 12 Automotive Segment Page 18 Financial Services Segment Page 20 Report on Outlook, Risks and Opportunities Page 20 Outlook Page 24 Risks and Opportunities
Page 35 Contacts
Page 4 BMW Group in Figures
1
BMW Group at a Glance
• 01
| 3rd quarter 2020 | 3rd quarter 2019 | Change in % | ||
|---|---|---|---|---|
| Group | ||||
| Profit / loss before tax | € million | 2,464 | 2,248 | 9.6 |
| Automotive segment | ||||
| Deliveries1, 2 | units | 675,592 | 621,981 | 8.6 |
| EBIT margin3 | % (change in %pts) | 6.7 | 6.6 | 0.1 |
| Motorcycles segment | ||||
| Deliveries | units | 52,892 | 43,744 | 20.9 |
| EBIT margin3 | % (change in %pts) | 7.1 | 6.3 | 0.8 |
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 186,235 units, 2019: 126,878 units).
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
3 Profit / loss before financial result as a percentage of segment revenues.
Further performance figures
• 02
| 3rd quarter 2020 | 3rd quarter 2019 | Change in % | ||
|---|---|---|---|---|
| Automotive segment | ||||
| Deliveries | ||||
| BMW1, 2 | units | 585,239 | 533,215 | 9.8 |
| MINI2 | units | 89,262 | 87,561 | 1.9 |
| Rolls-Royce2 | units | 1,091 | 1,205 | – 9.5 |
| Total1, 2 | 675,592 | 621,981 | 8.6 | |
| Production volume | ||||
| Total3 | 632,880 | 630,757 | 0.3 | |
| Financial Services segment | ||||
| New contracts with retail customers | 538,351 | 504,217 | 6.8 | |
| Free cash flow Automotive segment4 | € million | 3,065 | 714 | – |
| Group revenues | € million | 26,283 | 26,667 | –1.4 |
| Automotive | € million | 21,962 | 23,016 | – 4.6 |
| Motorcycles | € million | 637 | 558 | 14.2 |
| Financial Services | € million | 7,799 | 7,471 | 4.4 |
| Other Entities | € million | 0 | 1 | – |
| Eliminations | € million | – 4,115 | – 4,379 | 6.0 |
| Group profit/ loss before financial result (EBIT) | € million | 1,924 | 2,289 | –15.9 |
| Automotive | € million | 1,477 | 1,515 | – 2.5 |
| Motorcycles | € million | 45 | 35 | 28.6 |
| Financial Services | € million | 438 | 606 | – 27.7 |
| Other Entities | € million | 18 | 1 | – |
| Eliminations | € million | – 54 | 132 | – |
| Group profit/ loss before tax (EBT) | € million | 2,464 | 2,248 | 9.6 |
| Automotive | € million | 1,860 | 1,533 | 21.3 |
| Motorcycles | € million | 44 | 35 | 25.7 |
| Financial Services | € million | 458 | 597 | – 23.3 |
| Other Entities | € million | 118 | – 26 | – |
| Eliminations | € million | –16 | 109 | – |
| Group income taxes | € million | – 649 | – 702 | 7.5 |
| Profit/ loss from continuing operations | € million | 1,815 | 1,546 | 17.4 |
| Profit / loss from discontinued operations | € million | – | – | – |
| Group net profit/ loss | € million | 1,815 | 1,546 | 17.4 |
| Earnings per share5 | € | 2.71/ 2.71 | 2.31/ 2.31 | 17.3 / 17.3 |
| Group pre-tax return on sales6 | % (change in %pts) | 9.4 | 8.4 | 1.0 |
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 186,235 units, 2019: 126,878 units).
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
3 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 173,269 units, 2019: 136,582 units).
4 At the beginning of the financial year 2020, the starting point for determining cash flow was changed to profit / loss before tax; the previous year's figures have been adjusted accordingly.
5 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 quarters
of the corresponding financial year.
6 Group profit / loss before tax as a percentage of Group revenues.
BMW Group at a Glance
Key performance indicators reported during the year
• 03
| 1 January to 30 September 2020 |
1 January to 30 September 2019 |
Change in % | ||
|---|---|---|---|---|
| Group | ||||
| Profit / loss before tax | € million | 2,962 | 5,063 | – 41.5 |
| Automotive segment | ||||
| Deliveries1, 2 | units | 1,638,167 | 1,872,451 | –12.5 |
| EBIT margin3 | % (change in %pts) | 0.3 | 4.1 | – 3.8 |
| Motorcycles segment | ||||
| Deliveries | units | 129,599 | 136,932 | – 5.4 |
| EBIT margin3 | % (change in %pts) | 6.4 | 12.1 | – 5.7 |
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 437,549 units, 2019: 392,394 units).
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
3 Profit / loss before financial result as a percentage of segment revenues.
• 04
| 1 January to 30 September 2020 |
1 January to 30 September 2019 |
Change in % | ||
|---|---|---|---|---|
| Automotive segment | ||||
| Deliveries | ||||
| BMW1, 2 | units | 1,427,392 | 1,608,701 | –11.3 |
| MINI2 | units | 208,124 | 260,043 | – 20.0 |
| Rolls-Royce2 | units | 2,651 | 3,707 | – 28.5 |
| Total1, 2 | 1,638,167 | 1,872,451 | –12.5 | |
| Production volume | ||||
| Total3 | 1,577,130 | 1,925,758 | –18.1 | |
| Financial Services segment | ||||
| New contracts with retail customers | 1,342,803 | 1,475,504 | – 9.0 | |
| Free cash flow Automotive segment4 | € million | 552 | 1,024 | – 46.1 |
| Group revenues | € million | 69,508 | 74,844 | – 7.1 |
| Automotive | € million | 54,829 | 64,853 | –15.5 |
| Motorcycles | € million | 1,716 | 1,871 | – 8.3 |
| Financial Services | € million | 22,055 | 21,981 | 0.3 |
| Other Entities | € million | 1 | 4 | – 75.0 |
| Eliminations | € million | – 9,093 | –13,865 | 34.4 |
| Group profit/ loss before financial result (EBIT) | € million | 2,633 | 5,079 | – 48.2 |
| Automotive | € million | 152 | 2,674 | – 94.3 |
| Motorcycles | € million | 110 | 226 | – 51.3 |
| Financial Services | € million | 1,057 | 1,860 | – 43.2 |
| Other Entities | € million | 43 | 7 | – |
| Eliminations | € million | 1,271 | 312 | – |
| Group profit/ loss before tax (EBT) | € million | 2,962 | 5,063 | – 41.5 |
| Automotive | € million | 767 | 2,989 | – 74.3 |
| Motorcycles | € million | 108 | 222 | – 51.4 |
| Financial Services | € million | 1,039 | 1,797 | – 42.2 |
| Other Entities | € million | – 290 | –181 | 60.2 |
| Eliminations | € million | 1,338 | 236 | – |
| Group income taxes | € million | – 785 | –1,493 | 47.4 |
| Profit/ loss from continuing operations | € million | 2,177 | 3,570 | – 39.0 |
| Profit / loss from discontinued operations | € million | – | 44 | – |
| Group net profit/ loss | € million | 2,177 | 3,614 | – 39.8 |
| Earnings per share5 | € | 3.20 / 3.21 | 5.37/ 5.38 | – 40.4 / – 40.3 |
| Group pre-tax return on sales6 | % (change in %pts) | 4.3 | 6.8 | – 2.5 |
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 437,549 units, 2019: 392,394 units).
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in
the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
3 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 426,409 units, 2019: 381,416 units).
4 At the beginning of the financial year 2020, the starting point for determining cash flow was changed to profit / loss before tax; the previous year's figures have been adjusted accordingly.
5 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 quarters
of the corresponding financial year.
6 Group profit / loss before tax as a percentage of Group revenues.
Page 20 Outlook
Page 24 Risks and Opportunities
Interim Group Management Report
Report on Economic Position General Economic Environment
International automobile markets volatile overall
BMW Group achieves sales volume growth in third quarter
International automobile markets were subject to volatility during the period from January to September 2020. Whereas registrations collapsed to some extent, especially in the second quarter, due to the lockdowns imposed for several weeks in response to the corona pandemic, international automobile markets showed the first signs of recovery during the period from July to September. In China, for instance, new registrations returned to their upward trajectory. The situation in the USA and Europe also stabilised in September. Overall, however, the automobile markets were down on the previous year (50.45 million units; – 19 %).
Key automobile markets for the nine-month period developed year-on-year as follows:
| Change in % | |
|---|---|
| EU | – 28 |
| thereof Germany | – 25 |
| thereof France | – 29 |
| thereof Italy | – 34 |
| thereof Spain | – 38 |
| United Kingdom (UK) | – 33 |
| USA | –19 |
| China | –10 |
| Japan | –18 |
| Total | –19 |
Interim Group Management Report
Report on Economic Position General Economic
Group Overview
In the third quarter 2020, the BMW Group's sales volume recovered from the disruptive effects of the coronavirus pandemic in the second quarter. In some markets, deliveries to customers were even significantly up on the same quarter last year. Deliveries to customers during the period from July to September increased solidly to 675,592 1 units (2019: 621,981 1, 2 units; + 8.6 %). However, figures for the nine-month period continued to be influenced by the corona pandemic. In view of these factors, the BMW Group delivered 1,638,167 3 BMW, MINI and Rolls-Royce brand vehicles to customers during the first nine months of the year, 12.5 % fewer than in the same period of the previous year (2019: 1,872,451 2, 3 units).
In total, 5,578,149 contracts were in place with retail customers in the Financial Services segment at 30 September 2020 (31 December 2019: 5,486,319; + 1.7 %). A total of 538,351 new lease and credit financing contracts were signed during the third quarter with retail customers worldwide, 6.8 % more than one year earlier (2019: 504,217 new contracts). For the period from January to September, the number of new contracts fell by 9.0 % to 1,342,803 contracts (2019: 1,475,504 new contracts).
At € 69,508 million, Group revenues were moderately down for the nine-month period (2019: € 74,844 million; – 7.1 %, currency-adjusted: – 6.2 %) and slightly lower for the third quarter at € 26,283 million (2019: € 26,667 million; – 1.4 %, currency-adjusted: + 1.3 %). The main negative factor was the decline in demand due to corona-related dealership closures and stayat-home restrictions during the first half of the year. The recovery in China seen in the second quarter continued throughout the period from July to September,
a trend reflected in revenue growth at the level of the Chinese joint venture BMW Brilliance Automotive Ltd., Shenyang. Customer demand for new and pre-owned vehicles also recovered in the third quarter, partly caused by pent-up demand and changes in mobility behaviour in other key sales markets of the BMW Group. The latter trend was also reflected in the higher level of revenue generated from the sale of returned lease vehicles. Favourable product mix effects due to the less pronounced drop in the sale of high-revenue models partially offset the effect of lower volumes. In addition, better selling prices on the back of the rejuvenated product portfolio as well as the pent-up demand effects described above had a positive effect. Due to the lower volume of new leasing business during the first half of the year as well as lower expected new leasing business, the amount of revenues eliminated on consolidation fell compared to the previous year.4
Group cost of sales totalled € 60,668 million (2019: € 61,674 million; – 1.6 %), slightly down on the corresponding nine-month period one year earlier. Particularly in the first half of the year, reduced manufacturing costs due to lower sales volumes were partially offset by increased expenses recognised for risk provisions, mostly arising in connection with the measurement of residual value and credit risks. In the third quarter, the cost of sales of products previously leased to customers constituted a significant component of cost of sales, mirroring the impact on revenues. Furthermore, the eliminations described above had an equal and opposite impact on cost of sales and resulted in a year-on-year decrease in the amount of cost of sales eliminated on consolidation.
At € 4,397 million, research and development expenditure was slightly lower than in the previous year (2019: € 4,448 million; – 1.1%). Whereas the amount reported for the first nine months of the previous year was influenced by higher expenses in connection with the new model initiative, the current year's figure was impacted by the higher amount of development costs capitalised for projects nearing the completion stage.
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 186,235 units, 2019: 126,878 units).
3 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 437,549 units, 2019: 392,394 units). 4 See Annual Report 2019, note 4to the Group Financial Statements.
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
Interim Group Management Report Report on Economic Position
• 06
Group Overview
| in % | 3rd quarter 2020 |
3rd quarter 2019 |
Change in %pts |
1 January to 30 September 2020 |
1 January to 30 September 2019 |
Change in %pts |
|---|---|---|---|---|---|---|
| Research and development expenses as a percentage of revenues | 5.3 | 5.4 | – 0.1 | 6.0 | 5.7 | 0.3 |
| Research and development expenditure ratio1 | 5.9 | 6.1 | – 0.2 | 6.3 | 5.9 | 0.4 |
| Capitalisation rate2 | 36.4 | 35.3 | 1.1 | 34.7 | 31.7 | 3.0 |
| in € million | 3rd quarter 2020 |
3rd quarter 2019 |
Change in % | 1 January to 30 September 2020 |
1 January to 30 September 2019 |
Change in % |
|---|---|---|---|---|---|---|
| Research and development expenses | 1,406 | 1,451 | – 3.1 | 4,140 | 4,247 | – 2.5 |
| Capitalised development costs | 562 | 571 | –1.6 | 1,527 | 1,411 | 8.2 |
| Amortisation | – 423 | – 404 | 4.7 | –1,270 | –1,210 | 5.0 |
| Research and development expenditure3 | 1,545 | 1,618 | – 4.5 | 4,397 | 4,448 | –1.1 |
1 Research and development expenditure as a percentage of Group revenues. 2 Capitalised development costs as a percentage of research and development expenditure.
3 Research and development expenditure comprises the sum of research and non-capitalised development cost and capitalised development cost
(not including the associated scheduled amortisation).
Selling and administrative expenses fell moderately by 6.1 % to € 6,258 million for the nine-month period (2019: € 6,665 million). The decrease was mainly attributable to lower personnel expenses, partly due to a year-onyear reduction in the workforce size and scaled-down performance-related remuneration components. Lower expenses for communications and marketing as well as strict fixed cost management also continued to make a contribution to improved earnings. The net amount of other operating income and expenses recorded for the nine-month period improved by € 1,477 million, reflecting the fact that a provision of approximately € 1.4 billion had been recognised in the first quarter of 2019 in connection with ongoing antitrust proceedings 4 .
Group profit before financial result for the ninemonth period fell significantly to € 2,633 million (2019: € 5,079 million; – 48.2%) due to the various negative impacts on gross profit described above. In the third quarter, Group profit before financial result amounted to € 1,924 million (2019: € 2,289 million; – 15.9%).
The financial result was a net positive amount of € 329 million (2019: net negative amount of € 16 million) for the nine-month period and a net positive amount of € 540 million (2019: net negative amount of € 41 million) for the third quarter. The performance benefited in particular from higher at-equity earnings from the Chinese joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: € 959 million; 2019: € 728 million) and from the gain recorded by THERE Holding B. V. on the sale of shares in the mapping service provider HERE International B. V. to Mitsubishi Corporation (MC) and Nippon Telegraph and Telephone Corporation (NTT) 5in the first half of the year. In the third quarter, sundry other financial result was also positively impacted by gains arising on interest rate hedges as well as on the market valuation of investments.
Driven by a combination of revitalised sales markets, positive effects recorded within selling and administrative expenses and an improved financial result, Group net profit amounted to € 2,464 million for the third quarter, representing a solid increase on the previous year (2019: € 2,248 million; + 9.6 %). The positive effects described above were unable to make up for the impact of the corona pandemic on the BMW Group's business, particularly in the first half of the year. As a result, Group profit before tax for the first nine months of the year fell to € 2,962 million (2019: € 5,063 million; – 41.5 %).
Interim Group Financial Statements for the period ended 30 June 2020.
The BMW Group issued bonds for a total amount of € 9.2 billion during the first three quarters of the year, including a Euro benchmark bond, two Panda bonds on the Chinese capital market and a 144a bond on the US capital market. In addition, ABS transactions were issued or prolonged in Germany, the USA, China, Japan, the UK, Australia and Canada with a total financing volume of approximately € 11.4 billion.
The BMW Group continues to have very good access to the world's major capital markets. Liquidity-related measures were put in place during the first half of the year to enable the Group to respond flexibly to ongoing uncertainties caused by the corona pandemic. Group liquidity totalled € 21.8 billion at the end of the reporting period (31 December 2019: € 17.4 billion) and thus remains at a solid level.
5 Further information is provided in note 2 to the Interim Group Financial Statements for the period ended 30 June 2020.
Report on Economic Position General Economic
Automotive Segment
The BMW Group recorded a solid increase in automobile deliveries in the third quarter 2020. In some markets, deliveries to customers between July and September were even significantly up on one year earlier. During this period, the BMW Group recorded yearon-year volume growth of 8.6%, with 675,592 1 units delivered to customers (2019: 621,981 1, 2 units). In line with expectations, however, with a total of 1,638,167 3 BMW, MINI and Rolls-Royce brand vehicles, the cumulative volume sold worldwide in the first nine months of the year reflects the global impact of the corona pandemic (2019: 1,872,451 2, 3 units; – 12.5%).
Third-quarter deliveries of BMW brand vehicles rose by 9.8 % to 585,239 1 units (2019: 533,215 1, 2 units), while MINI finished 1.9 % up for the three-month period at 89,262 units (2019: 87,561 2 units). Rolls-Royce delivered 1,091 units to customers (2019: 1,205 2 units; – 9.5 %) during the three-month period.
• 07
Customer demand rose in many markets during the third quarter 2020. Over the nine-month period, however, the repercussions of the corona pandemic particularly affected business during the first half of the year.
In Europe, the BMW Group recorded overall growth of 7.1 % in the third quarter with 275,740 units delivered to customers (2019: 257,540 2 units). In the period from January to September, deliveries to customers across markets in Europe fell to 648,494 units (2019: 807,780 2 units; – 19.7 %).
In Germany, the BMW Group recorded significant growth in the third quarter (87,060 units, 2019: 76,797 2 units; + 13.4 %), whereas for the nine-month period deliveries to customers fell to 203,422 units (2019: 238,222 2 units; – 14.6 %).
3rd quarter 2020 3rd quarter 2019 Change in %
| Deliveries1, 4 | units | 675,592 | 621,9812 | 8.6 |
|---|---|---|---|---|
| Production5 | units | 632,880 | 630,757 | 0.3 |
| Revenues | € million | 21,962 | 23,016 | – 4.6 |
| Profit / loss before financial result (EBIT) | € million | 1,477 | 1,515 | – 2.5 |
| EBIT margin4, 6 | % (change in %pts) | 6.7 | 6.6 | 0.1 |
| Profit / loss before tax | € million | 1,860 | 1,533 | 21.3 |
| 1 January to 30 September 2020 |
1 January to 30 September 2019 |
Change in % | ||
|---|---|---|---|---|
| Deliveries3, 4 | units | 1,638,167 | 1,872,4512 | –12.5 |
| Production7 | units | 1,577,130 | 1,925,758 | –18.1 |
| Revenues | € million | 54,829 | 64,853 | –15.5 |
| Profit / loss before financial result (EBIT) | € million | 152 | 2,674 | – 94.3 |
| EBIT margin4, 6 | % (change in %pts) | 0.3 | 4.1 | – 3.8 |
| Profit / loss before tax | € million | 767 | 2,989 | – 74.3 |
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 186,235 units, 2019: 126,878 units).
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
3 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 437,549 units, 2019: 392,394 units).
4 Key performance indicators reported on during the year.
5 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 173,269 units, 2019: 136,582 units).
6 Profit / loss before financial result as a percentage of Automotive segment revenues.
7 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 426,409 units, 2019: 381,416 units).
Interim Group Management Report Report on Economic Position General Economic
In the UK, third-quarter sales figures recovered to 54,733 units (2019: 56,861 1 units; – 3.7 %) following the corona-related slump in the first half of the year. Between January and September, 118,652 units were delivered to customers (2019: 177,443 1 units; – 33.1 %).
Environment Automotive Segment
The Americas region has also been hit hard by the consequences of the pandemic. Deliveries to customers across the region fell to 99,356 units (2019 119,645 1 units; – 17.0 %) for the third quarter and to 251,936 units for the nine-month period (2019: 339,201 1 units; – 25.7 %).
Within this region, the US market continued to be negatively impacted during the third quarter by the pandemic. Deliveries to customers there totalled 78,905 units between July and September (2019: 93,631 1 units; – 15.7%) and 200,286 units between January to September (2019: 265,694 1 units; – 24.6%).
In Asia, the BMW Group increased automobile deliveries to customers significantly by 24.8% to 288,907 units (2019: 231,417 1 units) in the third quarter and by 3.0% to 705,789 units between January and September 2020 (2019: 685,293 1 units).
In China, the largest single market in the Asia region, a significant recovery had already set in during the second quarter. In the third quarter, deliveries were up by 31.0 % compared to one year earlier (230,920 2 units; 2019: 176,225 1, 2 units). Over the nine-month period, 560,367 3 units were delivered to customers, up 6.4 % in the same period one year earlier (2019: 526,802 1, 3 units).
| 3rd quarter 2020 | 3rd quarter 20191 | Change in % | 30 September 2020 |
30 September 20191 |
Change in % |
|---|---|---|---|---|---|
| 275,740 | 257,540 | 7.1 | 648,494 | 807,780 | –19.7 |
| 87,060 | 76,797 | 13.4 | 203,442 | 238,222 | –14.6 |
| 54,733 | 56,861 | – 3.7 | 118,652 | 177,443 | – 33.1 |
| 99,356 | 119,645 | –17.0 | 251,936 | 339,201 | – 25.7 |
| 78,905 | 93,631 | –15.7 | 200,286 | 265,694 | – 24.6 |
| 288,9072 | 231,4172 | 24.8 | 705,7893 | 685,2933 | 3.0 |
| 230,9202 | 176,2252 | 31.0 | 560,3673 | 526,8023 | 6.4 |
| 11,589 | 13,379 | –13.4 | 31,948 | 40,177 | – 20.5 |
| 675,5922 | 621,9812 | 8.6 | 1,638,1673 | 1,872,4513 | –12.5 |
| 1 January to 1 January to |
1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
2 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 186,235 units, 2019: 126,878 units).
3 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 437,549 units, 2019: 392,394 units).
Interim Group Management Report Report on Economic Position General Economic
Environment Automotive Segment
Third-quarter deliveries of BMW brand vehicles were 9.8 % higher than one year earlier (585,239 1 units; 2019: 533,215 1, 2 units). Coronavirus-related reductions
in production and sales volumes arising in the second quarter contributed to an 11.3 % decrease over the nine-month period (1,427,392 3 units; 2019: 1,608,701 2, 3 units). Details are shown in the following table.
| 1 January to 30 September |
1 January to 30 September |
||
|---|---|---|---|
| in units | 2020 | 20192 | Change in % |
| BMW i | 18,356 | 31,274 | – 41.3 |
| BMW 1 Series | 117,871 | 129,655 | – 9.1 |
| BMW 2 Series | 73,324 | 93,305 | – 21.4 |
| BMW 3 Series | 266,774 | 253,032 | 5.4 |
| BMW 4 Series | 27,590 | 60,436 | – 54.3 |
| BMW 5 Series | 216,184 | 259,532 | –16.7 |
| BMW 6 Series | 14,144 | 18,575 | – 23.9 |
| BMW 7 Series | 31,169 | 36,247 | –14.0 |
| BMW 8 Series | 15,634 | 7,493 | 108.6 |
| BMW Z4 | 12,226 | 11,929 | 2.5 |
| BMW X1 | 161,302 | 199,981 | –19.3 |
| BMW X2 | 54,216 | 72,585 | – 25.3 |
| BMW X3 | 206,396 | 230,391 | –10.4 |
| BMW X4 | 40,012 | 44,816 | –10.7 |
| BMW X5 | 114,228 | 116,644 | – 2.1 |
| BMW X6 | 24,961 | 17,738 | 40.7 |
| BMW X7 | 33,005 | 25,068 | 31.7 |
| BMW total | 1,427,392 | 1,608,701 | –11.3 |
1 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 186,235 units, 2019: 126,878 units).
2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in
the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
3 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2020: 437,549 units, 2019: 392,394 units).
Interim Group Management Report Report on Economic Position General Economic Environment
Automotive Segment
Deliveries of MINI brand vehicles totalled 89,262 units (2019: 87,561 1 units; + 1.9%) in the third quarter and 208,124 units (2019: 260,043 1 units; – 20.0%) for the nine-month period. Details are shown in the following table.
• 10
| in units | 1 January to 30 September 2020 |
1 January to 30 September 20191 |
Change in % |
|---|---|---|---|
| MINI Hatch (3- and 5-door) | 111,648 | 131,403 | –15.0 |
| MINI Convertible | 18,868 | 24,467 | – 22.9 |
| MINI Clubman | 24,213 | 30,641 | – 21.0 |
| MINI Countryman | 53,395 | 73,532 | – 27.4 |
| MINI total | 208,124 | 260,043 | – 20.0 |
Rolls-Royce Motor Cars delivered 1,091 units to customers during the third quarter (2019: 1,205 1 units; – 9.5 %) and 2,651 units over the first nine months of the year (2019: 3,707 1 units; – 28.5 %). The new Rolls-Royce Ghost2 was presented in September and the first deliveries are scheduled for the end of the fourth quarter. Details are shown in the following table.
| in units | 1 January to 30 September 2020 |
1 January to 30 September 20191 |
Change in % |
|---|---|---|---|
| Phantom | 250 | 455 | – 45.1 |
| Ghost | 242 | 509 | – 52.5 |
| Wraith / Dawn | 640 | 974 | – 34.3 |
| Cullinan | 1,519 | 1,769 | –14.1 |
| Rolls-Royce total | 2,651 | 3,707 | – 28.5 |
During the first nine months of 2020, the BMW Group sold a total of 116,381 electrified vehicles worldwide (2019: 96,9711 units), up by 20 % on the previous year. The first units of the BMWiX32 will be delivered before the end of the current year, making the X3 the first model to be available with a choice of four drivetrain systems (petrol, diesel, plug-in hybrid and all-electric).
• 12
| in units | 1 January to 30 September 2020 |
1 January to 30 September 20191 |
Change in % |
|---|---|---|---|
| BMW i | 18,356 | 31,274 | – 41.3 |
| BMW e | 79,195 | 53,697 | 47.5 |
| MINI Electric | 18,830 | 12,000 | 56.9 |
| Total | 116,381 | 96,971 | 20.0 |
1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retailvehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
2 Fuel consumption and CO2 emissions information are available on page 17.
Environment Automotive Segment
The Automotive segment's profit before financial result amounted to € 152 million (2019: € 2,674 million; – 94.3 %) for the nine-month period and € 1,477 million (2019: € 1,515 million; – 2,5 %) for the third quarter.
Whereas earnings in the first half of the year were impacted in particular by lower delivery volumes as well as by expenses recognised in connection with the residual value of leased products, third-quarter earnings improved in light of the perceptible recovery of key sales markets. As in the first six months of the year, a favourable product mix due to the less pronounced drop in the sale of high-revenue models and higher selling prices on the back of a strong product portfolio had a positive impact on earnings in the third quarter. In addition, strict fixed cost management also contributed to the improvement of the quality of earnings, despite the recognition of expenses in conjunction with structural measures.
The net amount of other operating income and expenses improved as a result of the provision recognised in the previous financial year in connection with ongoing antitrust proceedings 1 , the expense for which was recorded within other operating expenses. 1 Further information is provided in note 6 to the Interim Group
At € 615 million, the Automotive segment's ninemonth financial result was significantly up on the previous year (2019: € 315 million), boosted in particular by the improved result from equity-accounted investments, as described above. Financial Statements for the period ended 30 June 2020.
Segment profit before tax for the third quarter improved accordingly to € 1,860 million (2019: € 1,533 million; + 21.3%). For the nine-month period, however, it amounted to € 767 million (2019: € 2,989 million; – 74.3 %).
Free cash flow Automotive segment for the period from 1 January to 30 September 2 • 13
| in € million | 2020 | 2019 | Change |
|---|---|---|---|
| Cash inflow (+) / outflow (–) from operating activities | 3,047 | 6,144 | – 3,097 |
| Cash inflow (+) / outflow (–) from investing activities | –1,472 | – 5,151 | 3,679 |
| Net investment in marketable securities and investment funds | –1,023 | 31 | –1,054 |
| Free cash flow Automotive segment | 552 | 1,024 | – 472 |
2 At the beginning of the financial year 2020, the starting point for determining cash flow was changed to profit / loss before tax; the previous year's figures have been adjusted accordingly.
Free cash flow generated by the Automotive segment totalled € 552 million for the period from January to September 2020, whereby the year-on-year decrease was attributable primarily to the pandemic-related deterioration in pre-tax operating earnings in the first half of the year. In the third quarter, cash flows from operating activities were positive, reflecting the impact of growing customer demand, systematic working capital management and cost savings.
Cash flows from investing activities for the ninemonth period were influenced by the careful management of capital expenditure and in the previous year by the cash outflows, particularly those used to acquire the YOUR NOW companies and for investments in the production network.
17
Interim Group Management Report
Report on Economic Position General Economic Environment
• 14
Automotive Segment
Net financial assets comprised the following:
| in € million | 30. 9. 2020 | 31.12. 2019 | Change |
|---|---|---|---|
| Cash and cash equivalents | 14,087 | 9,077 | 5,010 |
| Marketable securities and investment funds | 3,390 | 4,470 | –1,080 |
| Intragroup net financing | –1,034 | 7,784 | – 8,818 |
| Financial assets | 16,443 | 21,331 | – 4,888 |
| Less: external financial liabilities* | – 2,942 | – 3,754 | 812 |
| Net financial assets Automotive segment | 13,501 | 17,577 | – 4,076 |
*Excluding derivative financial instruments.
The decrease in net financial assets was mainly attributable to lower free cash flow and the payment of the dividend (approximately € 1.6 billion) for the financial year 2019.
| Model | Fuel consumption in l/ 100 km (combined) |
CO2 emissions in g / km (combined) |
Electric power consumption in kWh / 100 km (combined) |
|---|---|---|---|
| BMW iX3 | 0 | 0 | 17.8 –17.5 |
| Rolls-Royce Ghost | 15.0 | 343 | – |
Report on Economic Position General Economic
Environment Financial Services Segment
Financial Services segment revenues for the period from July to September 2020 were slightly up on the previous year. Segment profit before tax for the third quarter was nevertheless significantly lower than one year earlier. As in the first half of the year, the main reason for this development was the recognition of risk provisioning expenses for credit and residual value risks.
The initial and ongoing assessment of customer creditworthiness is one of the key pillars of the BMW Group's credit risk management strategy. Allowances for expected credit losses were increased slightly in the third quarter in order to reflect the potential longerterm economic impact of the corona pandemic on retail and dealership business for accounting purposes. The amounts recognised were based on reasonable, well-founded information and estimates available at the end of the reporting period.
The credit risk management measures implemented during the first half of 2020 in the areas of dealership and customer financing, including moratoriums and temporary increases in credit lines for dealerships, were scaled back in many markets towards the end of the third quarter.
Compared to the previous three-month period, the remarketing of returned lease vehicles improved during the third quarter 2020. After a number of months during which lockdown restrictions had affected selling activities and caused reduced vehicle availability, demand for new and pre-owned vehicles increased. The economic consequences of the pandemic, particularly for the medium-term development of pre-owned vehicle markets across the world within the premium segment continue to be exposed to a higher level of uncertainty. Accordingly, further market-specific measures were also taken during the third quarter in terms of the level of risk provisioning expense recognised for the portfolio of vehicles subject to residual value risks.
The Financial Services segment monitors and provides for core business risks on an ongoing and comprehensive basis. Even though the situation may have eased in most markets in the third quarter, in light of the continued volatility caused by the corona pandemic on the one hand and the lack of any historical comparability on the other, it cannot be ruled out that additional expenses may need to be recognised in subsequent quarters. Based on current assessments, however, the Financial Services segment has recognised appropriate levels of provisions / allowances to cover residual value and credit risks.
Due to the effects of the corona pandemic, in balance sheet terms, business volumes with retail customers and dealerships declined moderately compared to the end of 2019.
| 3rd quarter 2020 | 3rd quarter 2019 | Change in % | ||
|---|---|---|---|---|
| New contracts with retail customers | 538,351 | 504,217 | 6.8 | |
| Revenues | € million | 7,799 | 7,471 | 4.4 |
| Profit before financial result (EBIT) | € million | 438 | 606 | – 27.7 |
| Profit before tax | € million | 458 | 597 | – 23.3 |
| 1 January to 30 September 2020 |
1 January to 30 September 2019 |
Change in % | ||
|---|---|---|---|---|
| New contracts with retail customers | 1,342,803 | 1,475,504 | – 9.0 | |
| Revenues | € million | 22,055 | 21,981 | 0.3 |
| Profit before financial result (EBIT) | € million | 1,057 | 1,860 | – 43.2 |
| Profit before tax | € million | 1,039 | 1,797 | – 42.2 |
| 30. 9. 2020 | 31. 12. 2019 | Change in % | ||
|---|---|---|---|---|
| Total contract portfolio | 5,936,975 | 5,973,682 | – 0.6 | |
| Contract portfolio with retail customers | 5,578,149 | 5,486,319 | 1.7 | |
| Business volume in balance sheet terms* | € million | 131,268 | 142,834 | – 8.1 |
*Calculated on the basis of the lines Leased products and Receivables from sales financing (current and non-current) of the Financial Services segment balance sheet.
Financial Services segment at a glance • 16
Interim Group Management Report Report on Economic
Financial Services Segment
With a total of 538,351 new contracts, credit financing and leasing business with retail customers grew solidly in the third quarter (2019: 504,217 contracts; + 6.8%), mainly due to the resurgent demand for financial products in Europe and China.
However, the total figure for the nine-month period fell moderately to 1,342,803 new contracts (2019: 1,475,504 new contracts; – 9.0 %), with new credit financing business down by 6.5% and new leasing business down by 13.9%. Overall, leasing accounted for 31.9% and credit financing for 68.1% of new business in the nine-month period under report.
Customer demand for pre-owned vehicles picked up strongly in some key sales markets. New contracts signed during the period from January to September included 305,369 credit financing and leasing contracts relating to pre-owned BMW and MINI brand vehicles (2019: 297,678 contracts; + 2.6%).
New business from credit financing and leasing contracts concluded with retail customers during the first nine months of the year fell moderately by 7.2% to € 41,311 million (2019: € 44,497 million).
In the period from January to September, 50.5 % 1 of new BMW Group vehicles were either leased or financed by the Financial Services segment (2019: 51.4%; – 0.9 percentage points), and therefore in line with the previous year's level.
At 30 September 2020, a total of 5,578,149 credit financing and leasing contracts were in place with retail customers, slightly above the level recorded at the end of 2019 (31 December 2019: 5,486,319 contracts; + 1.7%). While the number of new contracts signed in China grew solidly (+ 5.8 %) and in the Europe / Middle East / Africa region slightly (+ 3.5%), figures for the EU Bank 2 region remained at a similar level to the previous year (+ 0.8%). By contrast, the contract portfolios in the Americas and Asia / Pacific regions fell slightly by 1.1% and 1.7% respectively.
only includes automobile markets in which the Financial Services segment is represented by a consolidated entity or
1 The calculation
a branch office.
Operating under the brand name Alphabet, the BMW Group offers leasing and financing arrangements as well as other specific services to commercial customers. A portfolio of 707,434 contracts was in place at 30 September 2020 (31 December 2019: 717,353 contracts; – 1.4 %).
The total volume of dealership financing stood at € 15,040 million at 30 September 2020 and was therefore 29.1% lower than nine months earlier (31 December 2019: € 21,227 million) due to lower dealer inventory.
The pre-tax effect of eliminations was a positive amount of € 1,338 million (2019: positive € 236 million) for the nine-month period and a negative amount of € 16 million (2019: positive € 109 million) for the third quarter.
The main drivers were reversal effects from the leased products portfolio and lower eliminations due to the decline in new leasing business.
2 EU Bank comprises BMW Bank GmbH, with its branches in Italy, Spain and Portugal.
Interim Group Management Report
Report on Outlook, Risks and Opportunities Outlook
Contraction of global economy and automobile markets
The report on outlook, risks and opportunities describes the expected development of the BMW Group, including the significant risks and opportunities, from a Group management perspective. It contains forward-looking statements based on expectations and assessments that are subject to uncertainty. As a result, actual outcomes, including those attributable to political, legal and economic developments, could differ positively or negatively from those described below. More detailed information on this topic is provided in the Annual Report 2019 (Outlook, pp. 84, Risks and Opportunities, pp. 90).
Interim Group Management Report Report on Outlook, Risks and
Opportunities Outlook
International automobile markets are likely to contract significantly in 2020 as a result of corona-related lockdowns worldwide. The IMF currently expects global economic output to shrink by 4.4%. The scale of the downturn will largely depend on the further course of the pandemic and the economic stimulus programmes implemented in various countries.
| Change in % | |
|---|---|
| EU | – 25 |
| thereof Germany | – 22 |
| thereof France | – 26 |
| thereof Italy | – 28 |
| thereof Spain | – 36 |
| UK | – 29 |
| USA | –16 |
| China | – 7 |
| Japan | – 21 |
| Total | –16 |
At the time the Annual Report 2019 was published in March 2020, the BMW Group's assessment was still based on the assumption that the sales situation across all key markets would return to normal after a few weeks. Measures to contain the spread of the corona pandemic, such as lockdowns and restrictions on business, particularly in Europe and America, have since been extended and so far only very gradually eased. To some extent, the easing of lockdown measures has already been reversed. The prolonged restrictions put in place to curb the pandemic are weighing heavily on global growth and continue to cloud the economic outlook for 2020.
The current assessment assumes a further recovery in the fourth quarter, despite currently increasing infection figures in many markets. Since the beginning of November, restrictions in public and private life have been put back in place in large parts of Europe. This outlook does not take account of the potential impact of a protracted, deep recession in key sales markets, an economic downturn in China as a result of recessions in other economic regions, major market supply disruptions in the wake of even greater competition, or a significant deterioration in the situation with nationwide lockdowns and stricter containment measures in response to the corona pandemic.
The prevailing high level of uncertainty makes accurate forecasting difficult and has resulted in a combination of scenarios being incorporated in the forecast. This approach is reflected in the broader range of EBIT now being forecast for the Automotive segment for 2020.
Interim Group Management Report Report on Outlook, Risks and
Within a volatile economic environment, dominated by the global spread of coronavirus, the BMW Group expects reported figures to be significantly down for the financial year 2020. Under normal circumstances, business would benefit from the numerous new automobile and motorcycle models as well as the individual mobility-related services on offer. However, this positive momentum is currently being outweighed by the impact of the negative developments currently affecting the global economy described above. Research and development expenses will remain at a high level in view of ongoing future-oriented projects. Driven by the global impact of the corona crisis, the BMW Group's pre-tax earnings for the current financial year are likely to decline significantly year-on-year.
Due to the proliferation of the virus, sales volumes in the Automotive segment are expected to be significantly down on the previous year. In light of the adverse factors described above, the Automotive segment EBIT margin is expected to lie within a range between 0 and 3 % in 2020, as already communicated in the Quarterly Statement to 31 March 2020. The segment RoCE1 is also predicted to be well below the previous year's level. At the same time, fleet carbon dioxide emissions 2 are forecast to drop significantly, through which the emissions targets will be achieved.
The Financial Services segment is expected to be affected by an even steeper decline in new business as well as a volatile risk environment, mainly due to the unfavourable economic outlook. Accordingly, as previously reported, a moderate year-on-year decrease in segment RoE3 is forecast.
Motorcycles segment deliveries to customers are expected to decrease moderately over the year as a whole. The EBIT margin is currently forecast to lie within a range between 3 and 5%, with RoCE significantly below the previous year's level.
The targets are to be achieved with a workforce size which – based on the new method of calculation described in the Annual Report 2019 – will be slightly below the level recorded one year earlier. The planned reduction will be achieved through a combination of natural fluctuation and voluntary agreements. Vocational training, however, will be continued at the same high level as in the previous year.
The prevailing extreme level of uncertainty – exacerbated in particular by the further spread of coronavirus and driven by economic and political developments such as the outcome of the negotiations between the EU and the UK on a trade agreement by 31 December 2020 as well as international trade and customs policies – may cause economic developments in many regions to differ markedly from even the most recently expected trends and outcomes. Any such deviations could have a further significant impact on the business performance of the BMW Group.
Furthermore, the actual business performance of the BMW Group may also differ from current expectations as a result of the risks and opportunities described in the Report on Risk and Opportunities (pp. 88) of the Annual Report 2019.
3 RoE in the Financial Services segment is calculated as segment profit before taxes, divided by the average amount of equity capital attributable to the Financial Services segment balance sheet.
1 RoCE in the Automotive and Motorcycles segments is measured on the basis of relevant segment profit before financial result and the average amount of capital employed in the segment concerned. Capital employed corresponds to the sum of all current and non-current operational assets, less liabilities that generally do not incur interest. 2 EU-28.
Interim Group Management Report Report on Outlook, Risks and
Opportunities Outlook
In almost all aspects, the BMW Group continues to stand by the adjusted outlook for the financial year 2020 presented in the Quarterly Statement to 31 March 2020. The original outlook for deliveries to
customers by the Motorcycles segment has, however, been adjusted from a significant decrease to a moderate decrease. The following outlook therefore now applies for key performance indicators:
| 2019 reported |
2019 adjusted |
2020 Outlook1 |
||
|---|---|---|---|---|
| Group | ||||
| Profit before tax | € million | 7,118 | – | significant decrease |
| Workforce at year-end | 133,778 | 126,016 | slight decrease | |
| Automotive segment | ||||
| Deliveries to customers2 | units | 2,538,367 | – | significant decrease |
| Fleet emissions3 | g CO2 / km | 127 | – | significant decrease |
| EBIT margin | % | 4.9 | – | between 0 and 3 |
| Return on capital employed4 | % | 29.0 | – | significant decrease |
| Motorcycles segment | ||||
| Deliveries to customers | units | 175,162 | – | moderate decrease |
| EBIT margin | % | 8.2 | – | between 3 and 5 |
| Return on capital employed4 | % | 29.4 | – | significant decrease |
| Financial Services segment | ||||
| Return on equity 5 | % | 15.0 | – | moderate decrease |
1 Based on adjusted figures.
2 Including the jointventure BMW Brilliance Automotive Ltd., Shenyang (2019: 538,612 units).
3 EU-28.
4 RoCE in the Automotive and Motorcycles segments is measured on the basis of relevant segment profit before financial result and the average amount of capital employed in the segment concerned.
Capital employed corresponds to the sum of all current and non-current operational assets, less liabilities that generally do not incur interest.
5 RoE in the Financial Services segment is calculated as segment profit before taxes, divided by the average amount of equity capital attributable to the Financial Services segment balance sheet.
Report Report on Outlook, Risks and Opportunities
Interim Group Management
Risks and Opportunities
As a globally operating enterprise, the BMW Group is exposed to a broad range of risks and opportunities. The Group's corporate success is based on leveraging perceived opportunities as they present themselves. In order to drive growth, boost profitability, bolster efficiency and operate sustainably going forward, the BMW Group also needs to take calculated risks.
As a consequence of the corona pandemic, risks associated with macroeconomic and financial conditions have increased significantly both short-term and medium-term compared with the assessment presented in the Annual Report 2019. The level of risk due to the negative impact of the pandemic on the BMW Group's supply chains, production and sales volumes is still assessed as high. After a more stable phase for the economy in the third quarter, the pandemic is now clearly regaining momentum. In light of the containment measures required as well as the economic impact, a high level of uncertainty remains. Moreover, the pandemic has affected markets to widely differing degrees. For this reason, demand for automobiles is only likely to recover at a very sluggish rate in many markets. If the corona pandemic takes a turn for the worse and the global economy deteriorates significantly, the risk exposure could be considerable, particularly on the demand side. With these risks in mind, the BMW Group is continuously monitoring developments on world markets and preparing for all possible scenarios. Likewise, the impact of the corona pandemic on capital markets, on the measurement of receivables and on residual values is also assessed as high. In this context, the risk exposure includes increases in financing costs, credit defaults and remarketing losses in the Financial Services segment.
In parallel, the progress of negotiations on a free trade agreement between the EU and the UK and developments in global trade policy will continue to be closely monitored.
Changes in the risk profile are continuously assessed and factored into the current and long-term forecasts as deemed necessary.
Further information on risks and opportunities as well as on the methods employed to manage them is also available in the "Report on Risks and Opportunities" section of the Annual Report 2019 (pp. 88).
Page 26 Income Statement
BMW Group Income Statement
| Group | Automotive | Motorcycles | ||||
|---|---|---|---|---|---|---|
| in € million | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| Revenues | 69,508 | 74,844 | 54,829 | 64,853 | 1,716 | 1,871 |
| Cost of sales | – 60,668 | – 61,674 | – 49,546 | – 55,193 | –1,445 | –1,460 |
| Gross profit | 8,840 | 13,170 | 5,283 | 9,660 | 271 | 411 |
| Selling and administrative expenses | – 6,258 | – 6,665 | – 5,136 | – 5,511 | –162 | –186 |
| Other operating income | 705 | 455 | 735 | 461 | 2 | 2 |
| Other operating expenses | – 654 | –1,881 | – 730 | –1,936 | –1 | –1 |
| Profit/ loss before financial result | 2,633 | 5,079 | 152 | 2,674 | 110 | 226 |
| Result from equity accounted investments | 787 | 379 | 787 | 379 | – | – |
| Interest and similar income | 80 | 102 | 182 | 277 | – | 1 |
| Interest and similar expenses | – 256 | – 297 | – 381 | – 472 | – 2 | – 5 |
| Other financial result | – 282 | – 200 | 27 | 131 | – | – |
| Financial result | 329 | –16 | 615 | 315 | – 2 | – 4 |
| Profit/ loss before tax | 2,962 | 5,063 | 767 | 2,989 | 108 | 222 |
| Income taxes | – 785 | –1,493 | – 207 | – 875 | – 32 | – 70 |
| Profit/ loss from continuing operations | 2,177 | 3,570 | 560 | 2,114 | 76 | 152 |
| Profit / loss from discontinued operations | – | 44 | – | 44 | – | – |
| Net profit/ loss | 2,177 | 3,614 | 560 | 2,158 | 76 | 152 |
| Attributable to minority interest | 67 | 78 | 15 | 19 | – | – |
| Attributable to shareholders of BMW AG | 2,110 | 3,536 | 545 | 2,139 | 76 | 152 |
| Basic earnings per share of common stock in € | 3.20 | 5.37 | ||||
| Basic earnings per share of preferred stock in € | 3.21 | 5.38 | ||||
| Dilutive effects | – | – | ||||
| Diluted earnings per share of common stock in € | 3.20 | 5.37 | ||||
| Diluted earnings per share of preferred stock in € | 3.21 | 5.38 |
| Eliminations | Other Entities | Financial Services | ||||
|---|---|---|---|---|---|---|
| 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | |
| Revenues | –13,865 | – 9,093 | 4 | 1 | 21,981 | 22,055 |
| Cost of sales | 14,149 | 10,325 | – | – | –19,170 | – 20,002 |
| Gross profit | 284 | 1,232 | 4 | 1 | 2,811 | 2,053 |
| Selling and administrative expenses | 15 | 27 | –17 | –17 | – 966 | – 970 |
| Other operating income | –144 | –174 | 82 | 120 | 54 | 22 |
| Other operating expenses | 157 | 186 | – 62 | – 61 | – 39 | – 48 |
| Profit/ loss before financial result | 312 | 1,271 | 7 | 43 | 1,860 | 1,057 |
| Result from equity accounted investments | – | – | – | – | – | – |
| Interest and similar income | –1,319 | –1,025 | 1,142 | 921 | 1 | 2 |
| Interest and similar expenses | 1,243 | 1,092 | –1,059 | – 962 | – 4 | – 3 |
| Other financial result | – | – | – 271 | – 292 | – 60 | –17 |
| Financial result | – 76 | 67 | –188 | – 333 | – 63 | –18 |
| Profit/ loss before tax | 236 | 1,338 | –181 | – 290 | 1,797 | 1,039 |
| Income taxes | – 74 | – 351 | 55 | 80 | – 529 | – 275 |
| Profit/ loss from continuing operations | 162 | 987 | –126 | – 210 | 1,268 | 764 |
| Profit / loss from discontinued operations | – | – | – | – | – | – |
| Net profit/ loss | 162 | 987 | –126 | – 210 | 1,268 | 764 |
| Attributable to minority interest | – | – | – | –1 | 59 | 53 |
| Attributable to shareholders of BMW AG | 162 | 987 | –126 | – 209 | 1,209 | 711 |
| Basic earnings per share of common stock in € | ||||||
| Basic earnings per share of preferred stock in € | ||||||
| Dilutive effects | ||||||
| Diluted earnings per share of common stock in € | ||||||
| Diluted earnings per share of preferred stock in € | ||||||
BMW Group Income Statement
| Group | Automotive | Motorcycles | ||||
|---|---|---|---|---|---|---|
| in € million | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| Revenues | 26,283 | 26,667 | 21,962 | 23,016 | 637 | 558 |
| Cost of sales | – 22,268 | – 22,098 | –18,752 | –19,631 | – 541 | – 461 |
| Gross profit | 4,015 | 4,569 | 3,210 | 3,385 | 96 | 97 |
| Selling and administrative expenses | – 2,099 | – 2,242 | –1,722 | –1,835 | – 52 | – 63 |
| Other operating income | 188 | 140 | 186 | 153 | 2 | 2 |
| Other operating expenses | –180 | –178 | –197 | –188 | –1 | –1 |
| Profit/ loss before financial result | 1,924 | 2,289 | 1,477 | 1,515 | 45 | 35 |
| Result from equity accounted investments | 383 | 191 | 383 | 191 | – | – |
| Interest and similar income | 24 | 25 | 46 | 86 | – | – |
| Interest and similar expenses | – 67 | –106 | –100 | –165 | –1 | – |
| Other financial result | 200 | –151 | 54 | – 94 | – | – |
| Financial result | 540 | – 41 | 383 | 18 | –1 | – |
| Profit/ loss before tax | 2,464 | 2,248 | 1,860 | 1,533 | 44 | 35 |
| Income taxes | – 649 | – 702 | – 500 | – 470 | –14 | –15 |
| Profit/ loss from continuing operations | 1,815 | 1,546 | 1,360 | 1,063 | 30 | 20 |
| Profit / loss from discontinued operations | – | – | – | – | – | – |
| Net profit/ loss | 1,815 | 1,546 | 1,360 | 1,063 | 30 | 20 |
| Attributable to minority interest | 29 | 25 | 10 | 6 | – | – |
| Attributable to shareholders of BMW AG | 1,786 | 1,521 | 1,350 | 1,057 | 30 | 20 |
| Basic earnings per share of common stock in € | 2.71 | 2.31 | ||||
| Basic earnings per share of preferred stock in € | 2.71 | 2.31 | ||||
| Dilutive effects | – | – | ||||
| Diluted earnings per share of common stock in € | 2.71 | 2.31 | ||||
| Diluted earnings per share of preferred stock in € | 2.71 | 2.31 |
| Eliminations | Other Entities | Financial Services | ||||
|---|---|---|---|---|---|---|
| 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | |
| Revenues | – 4,379 | – 4,115 | 1 | – | 7,471 | 7,799 |
| Cost of sales | 4,506 | 4,033 | – | – | – 6,512 | – 7,008 |
| Gross profit | 127 | – 82 | 1 | – | 959 | 791 |
| Selling and administrative expenses | 11 | 22 | – 7 | – 3 | – 348 | – 344 |
| Other operating income | – 62 | – 53 | 33 | 41 | 14 | 12 |
| Other operating expenses | 56 | 59 | – 26 | – 20 | –19 | – 21 |
| Profit/ loss before financial result | 132 | – 54 | 1 | 18 | 606 | 438 |
| Result from equity accounted investments | – | – | – | – | – | – |
| Interest and similar income | – 444 | – 289 | 383 | 267 | – | – |
| Interest and similar expenses | 421 | 327 | – 361 | – 292 | –1 | –1 |
| Other financial result | – | – | – 49 | 125 | – 8 | 21 |
| Financial result | – 23 | 38 | – 27 | 100 | – 9 | 20 |
| Profit/ loss before tax | 109 | –16 | – 26 | 118 | 597 | 458 |
| Income taxes | – 34 | 14 | 7 | – 33 | –190 | –116 |
| Profit/ loss from continuing operations | 75 | – 2 | –19 | 85 | 407 | 342 |
| Profit / loss from discontinued operations | – | – | – | – | – | – |
| Net profit/ loss | 75 | – 2 | –19 | 85 | 407 | 342 |
| Attributable to minority interest | – | – | – | – | 19 | 19 |
| Attributable to shareholders of BMW AG | 75 | – 2 | –19 | 85 | 388 | 323 |
| Basic earnings per share of common stock in € | ||||||
| Basic earnings per share of preferred stock in € | ||||||
| Dilutive effects | ||||||
| Diluted earnings per share of common stock in € | ||||||
| Diluted earnings per share of preferred stock in € | ||||||
BMW Group Balance Sheet
| Group | Automotive | Motorcycles | |||||
|---|---|---|---|---|---|---|---|
| in € million | 30. 9. 2020 | 31.12. 2019 | 30. 9. 2020 | 31.12. 2019 | 30. 9. 2020 | 31.12. 2019 | |
| Assets | |||||||
| Intangible assets Property, plant and equipment |
11,980 21,742 |
11,729 23,245 |
11,451 21,282 |
11,212 22,749 |
147 387 |
127 407 |
|
| Leased products | 41,831 | 42,609 | – | – | – | – | |
| Investments accounted for using the equity method | 3,481 | 3,199 | 3,481 | 3,199 | – | – | |
| Other investments | 802 | 703 | 4,680 | 5,144 | – | – | |
| Receivables from sales financing | 47,310 | 51,030 | – | – | – | – | |
| Financial assets | 2,780 | 1,370 | 509 | 131 | – | – | |
| Deferred tax | 2,083 | 2,194 | 3,235 | 3,451 | – | – | |
| Other assets | 1,319 | 1,325 | 2,762 | 2,203 | 35 | 36 | |
| Non-current assets | 133,328 | 137,404 | 47,400 | 48,089 | 569 | 570 | |
| Inventories | 16,078 | 15,891 | 14,850 | 14,404 | 603 | 679 | |
| Trade receivables | 2,492 | 2,518 | 2,202 | 2,228 | 177 | 186 | |
| Receivables from sales financing | 35,577 | 41,407 | – | – | – | – | |
| Financial assets | 5,121 | 5,955 | 3,942 | 4,772 | – | – | |
| Current tax | 1,341 | 1,209 | 659 | 1,000 | – | – | |
| Other assets | 9,466 | 11,614 | 31,937 | 33,492 | 2 | 1 | |
| Cash and cash equivalents | 17,830 | 12,036 | 14,087 | 9,077 | 6 | 11 | |
| Current assets | 87,905 | 90,630 | 67,677 | 64,973 | 788 | 877 | |
| Total assets | 221,233 | 228,034 | 115,077 | 113,062 | 1,357 | 1,447 | |
| Equity and liab ilities |
|||||||
| Subscribed capital | 659 | 659 | |||||
| Capital reserves | 2,161 | 2,161 | |||||
| Revenue reserves | 58,183 | 57,667 | |||||
| Accumulated other equity | –1,325 | –1,163 | |||||
| Equity attributable to shareholders of BMWAG | 59,678 | 59,324 | |||||
| Minority interest | 617 | 583 | |||||
| Equity | 60,295 | 59,907 | 38,006 | 40,174 | – | – | |
| Pension provisions | 3,272 | 3,335 | 2,687 | 2,820 | 90 | 96 | |
| Other provisions | 5,738 | 5,788 | 5,578 | 5,605 | 77 | 81 | |
| Deferred tax | 487 | 632 | 721 | 543 | – | – | |
| Financial liabilities | 69,078 | 70,647 | 2,046 | 2,680 | – | – | |
| Other liabilities | 4,822 | 5,100 | 7,586 | 7,929 | 525 | 569 | |
| Non-current provisions and liabilities | 83,397 | 85,502 | 18,618 | 19,577 | 692 | 746 | |
| Other provisions | 7,044 | 7,421 | 6,531 | 6,962 | 100 | 105 | |
| Current tax | 1,181 | 963 | 435 | 704 | – | – | |
| Financial liabilities | 43,000 | 46,093 | 1,153 | 1,929 | – | – | |
| Trade payables | 9,861 | 10,182 | 8,561 | 8,814 | 358 | 413 | |
| Other liabilities | 16,455 | 17,966 | 41,773 | 34,902 | 207 | 183 | |
| Current provisions and liabilities | 77,541 | 82,625 | 58,453 | 53,311 | 665 | 701 | |
| Total equity and liabilities | 221,233 | 228,034 | 115,077 | 113,062 | 1,357 | 1,447 |
BMW Group Cash Flow Statement
| Group | Automotive | Financial Services | ||
|---|---|---|---|---|
| in € million | 2020 | 2019 | 2020 2019 |
2020 2019 |
| Profit / loss before tax* | 2,962 | 5,063 | 767 2,989 |
1,039 1,797 |
| Depreciation and amortisation of tangible, intangible and investment assets | 4,562 | 4,398 | 4,442 4,280 |
33 37 |
| Change in leased products and receivables from sales financing | 5,848 | – 3,131 | – – |
6,915 – 2,945 |
| Changes in working capital | – 794 | – 2,727 | – 2,603 – 923 |
–139 162 |
| Change in provisions | –19 | 943 | – 81 438 |
21 798 |
| Other | – 2,012 | –1,942 | –1,158 1,040 |
–1,722 –1,149 |
| Cash inflow/outflow from operating activities | 10,547 | 2,604 | 3,047 6,144 |
6,448 –1,601 |
| Total investment in intangible assets and property, plant and equipment | – 3,789 | – 4,783 | – 3,687 – 4,690 |
–10 – 9 |
| Net investment in marketable securities and investment funds | 1,320 | 10 | 1,023 – 31 |
298 41 |
| Other | 1,116 | – 546 | 1,192 – 430 |
–1 3 |
| Cash inflow/outflow from investing activities | –1,353 | – 5,319 | –1,472 – 5,151 |
287 35 |
| Cash inflow/outflow from financing activities | – 3,519 | 4,719 | 3,338 930 |
– 5,849 1,779 |
| Effect of exchange rate on cash and cash equivalents | 119 | –17 | 97 – 44 |
35 10 |
| Effect of changes in composition of Group on cash and cash equivalents | – | 32 | – 27 |
– – |
| Change in cash and cash equivalents | 5,794 | 2,019 | 5,010 1,906 |
921 223 |
| Cash and cash equivalents as at 1 January | 12,036 | 10,979 | 9,077 8,631 |
2,075 1,985 |
| Cash and cash equivalents as at 30 September | 17,830 | 12,998 | 14,087 10,537 |
2,996 2,208 |
*At the beginning of the financial year 2020, the starting point for determining cash flow was changed to profit / loss before tax; the previous year's figures have been adjusted accordingly.
| Financial Services | Automotive | ||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2019 | 2020 | ||
| Profit / loss before tax* | 1,797 | 1,039 | 2,989 | 767 | |
| Depreciation and amortisation of tangible, intangible and investment assets | 37 | 33 | 4,280 | 4,442 | |
| Change in leased products and receivables from sales financing | – 2,945 | 6,915 | – | – | |
| Changes in working capital | –139 | 162 | – 2,603 | – 923 | |
| Change in provisions | 798 | 21 | 438 | – 81 | |
| Other | –1,149 | –1,722 | 1,040 | –1,158 | |
| Cash inflow/outflow from operating activities | –1,601 | 6,448 | 6,144 | 3,047 | |
| Total investment in intangible assets and property, plant and equipment | – 9 | –10 | – 4,690 | – 3,687 | |
| Net investment in marketable securities and investment funds Other |
41 | 298 | – 31 | 1,023 | |
| 3 | –1 | – 430 | 1,192 | ||
| Cash inflow/outflow from investing activities | 35 | 287 | – 5,151 | –1,472 | |
| Cash inflow/outflow from financing activities | 1,779 | – 5,849 | 930 | 3,338 | |
| Effect of exchange rate on cash and cash equivalents | 10 | 35 | – 44 | 97 | |
| Effect of changes in composition of Group on cash and cash equivalents | – | – | 27 | – | |
| Change in cash and cash equivalents | 223 | 921 | 1,906 | 5,010 | |
| Cash and cash equivalents as at 1 January | 1,985 | 2,075 | 8,631 | 9,077 | |
| Cash and cash equivalents as at 30 September | 2,208 | 2,996 | 10,537 | 14,087 |
Page 35 Contacts
Other Information
Contacts
Telephone + 49 89 382-2 45 44 + 49 89 382-2 41 18 Fax + 49 89 382-2 44 18 E-mail [email protected]
Telephone + 49 89 382-2 53 87 Fax + 49 89 382-1 46 61 E-mail [email protected]
Further information about the BMW Group is available online at www.bmwgroup.com. Investor Relations information is available directly at www.bmwgroup.com/ir. Information about the various BMW Group brands is available at www.bmw.com, www.mini.com
and www.rolls-roycemotorcars.com and www.bmw-motorrad.com.
This version of the Quarterly Statement is a translation from the German version. Only the original German version is binding.
| Bayerische Motoren Werke | ||||
|---|---|---|---|---|
| Aktiengesellschaft | ||||
| 80788 Munich | ||||
| Germany | ||||
| Telephone +49 89 382-0 |
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