capital markets day china 2012 - bmw group...beijing october 19, 2012 capital markets day china...

CAPITAL MARKETS DAY CHINA 2012 DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE

Beijing October 19, 2012

Capital Markets Day China 2012, Dr. Friedrich Eichiner

CHINA IS A SUCCESS STORY FOR THE BMW GROUP DOUBLE-DIGIT GROWTH BY YEAR-END 2012.

CHINA’S ECONOMIC DEVELOPMENT. THE 12TH FIVE-YEAR PLAN (2011–2015) AIMS AT A MORE MODERATE GROWTH PATH.


1990 2000 2015 2010

(Ø GDP growth = 10.4%) (Ø GDP growth (Target) = 7%)

Economic growth

from export/

investment driven to

consumption driven

Income

redistribution and

improving people’s

living standards

Urbanization and

regional

development

Energy saving and

environmental

protection


CONTENT.

1 Status BMW Group

2 Status BMW Group in China

3 Outlook

4 Summary


BMW Group

Sales development (units)

September

2012 + 8.3 % 1.335 million

Sales

by continent America

+6.3% YTD

Europe

+0.8% YTD

Asia

+27.2% YTD

ON TRACK TO MEET OUR GUIDANCE: SALES VOLUME ABOVE PREVIOUS YEAR.


European markets will worsen in 2013

Additional costs for future investments

Staying the strategic course

Start of electromobility with the BMW i3

MARKET CONDITIONS WILL BE MORE DIFFICULT IN 2013.


CONTENT.

1 Status BMW Group


3 Outlook

4 Summary


GROWING SIGNIFICANCE OF CHINA.

China has great potential for the future as well.

China‘s significance for the BMW Group continues to grow.


Source: Global Insight

Premium Segment Development China

in units of a thousand

1,981

2,603

933

111 0

500

1,000

1,500

2,000

2,500

3,000

2005 2011 2015E 2020E

CAGR: +43%

CAGR: ca. +19%

CAGR: ca. +6%

GLOBAL INSIGHT DATA: CHINESE PREMIUM SEGMENT SHOWS SOLID GROWTH, IN MEDIUM-TERM AT A LOWER PACE. OUR OWN GROWTH EXPECTATIONS ARE LOWER.

CHINA HAS BECOME A MAJOR ENGINE FOR THE GROWTH OF GLOBAL PREMIUM SEGMENT.

China Rest of World

Source: Global Insight Data

China’s share of global premium segment

2007

4%

2009

8%

2011

>15%

FC

2012

18%


INCOME DISTRIBUTION: FURTHER GROWTH OF PREMIUM-RELEVANT UPPER AND UPPER MIDDLE CLASS.

Source: IHS Global


0

300

400

500

600

2012 2025

Income class definition by annual household income

(inflation and purchasing power parity adjusted, base year 2005)

CAGR: +8.2%

CAGR: +9.0%

23

105

31

73

107

213

Upper Class

(>100k USD)

Upper Middle Class

(60-100k USD)

Middle Class (40-60k USD)

Lower Middle Class

(20-40k USD)

15 mn. premium-relevant

households

Around 46mn. premium-

relevant households

11

24

GROWING HNWI NUMBER IN MAINLAND CHINA –CUSTOMERS HAVE A CLEAR PREFERENCE FOR LUXURY GOODS.

Total Number of High Net Worth Individuals (HNWI)

with net worth of US$ 1 Million or more

in 2011 (unit: Thousands)

Source: 2012 Global Wealth Report, by Capgemini and RBC Wealth Management

3,068

1,822

562

1. 2. 4.

951

3.


MAINLAND CHINA: URBANIZATION IN FAST MOTION.


Source: UN 2011

Urbanization is driven by medium sized cities.

0

10

20

30

40

50

60

70

80

0

400

800

1200

1600

1955 1965 1975 1985 1995 2005 2015 2025

Population (m)

Urban population

Rural population

Level of urbanization (%)

< 0,5 m

0,5 - 1 m

1 - 5 m

5 - 10 m

> 10 m

0

100

200

300

400

500

600

700

800

900

1000

1955 1965 1975 1985 1995 2005 2015 2025

Urban population (m)

Urban agglomerations by size

Level of urbanization already at 50%.


BMW BRILLIANCE AUTOMOTIVE – A JOINT SUCCESS STORY.

Beijing

Yantai

Qingdao

Taiyuan

Hohhot

Anshan

Shenyang

Changchun

Daqing

Linyi

Jinan Weifang

Shijiazhuang

Baoding Tangshan

Wuhu

Hefei

Xuzhou

Hangzhou

Nantong Nanjing

Lishui Taizhou Wenzhou

Jinhua Ningbo Chengdu

Mianyang

Chongqing

Guiyang

Kunming

Yichang Wuhan

Zhengzhou Xi`an

Lanzhou

Urumqi

Guangzhou Liuzhou

Nanning

Chenzhou

Changsha

Nanchang

Xiamen

Quanzhou

Fuzhou

Zhongshan

Foshan

Shenzhen

Shantou

Handan

Yingkou Panjin

Qujing

Yancheng

Beijing

Dalian

Deyang

Xinxiang

Huizhou

Erdos

Luoyang

Yinchuan

Linfen

Guilin

Xining

Jjiangmen

Baotou

Harbin

Jinzhou

Qinhuangdao

Zibo Changzhi

Datong

Yuncheng

Tianjin

Bengbu

Lianyungang

Suzhou

Wuxi Yangzhou

Huai’an

Huzhou Jiaxing

Shaoxing

Longyan

Dongguan

Zhuzhou

Zhuhai

Zunyi

Yulin

Leshan

Putian

Pingdingshan

Zhaoqing

Mudanjiang

Jilin

Dongying

Ningde

Zengcheng

Lvliang

Shangrao

Changzhou

Xiangtan

Haikou

Ganzhou

Jiamusi

Songyuan

Kelamayi

Langfang

Shanghai Zhenjiang


CHINA‘S DEALER NETWORK – BY END OF SEPTEMBER 332 BMW OUTLETS AND 76 MINI OUTLETS. ROLLS- ROYCE HAS 13 DEALERS IN EAST AND CENTRAL CHINA.

Showroom

Service outlet

4S

UCC

*4S dealership refers to:

Sale, Spare parts, Service & Survey


BMW X1 AND 3 SERIES LONG WHEEL BASE FROM LOCAL PRODUCTION, AS WELL AS BMW 7 SERIES SUPPORT GROWTH. BMW 5 SERIES LWB CONTINUES SUCCESS.


FURTHER EXPANSION OF PRODUCTION CAPACITY. LOCAL PRODUCTION OF ABOUT 150,000 UNITS BY END OF 2012.


BMW FINANCIAL SERVICES CHINA – PROFITABLE GROWTH WITH PARTNERS.

Business volume of 10 billion RMB (~1.2 billion Euros)

Penetration rate in August 2012 was ~12%

Contracts are partly concluded with cooperation partners

Growth by expansion of portfolio


CONTENT.

1 Status BMW Group


3 Outlook

4 Summary


THE BMW GROUP IS ON GROWTH TRACK IN CHINA.

Double-digit Sales Growth in the coming years

Growing local production

Further growth in our market presence, across all tier cities


CONTENT.

1 Status BMW Group


3 Outlook

4 Summary


CHINA WILL REMAIN OUR GROWTH DRIVER IN ASIA. OUR TARGET IS A BALANCED GLOBAL MARKET APPROACH.

CAPITAL MARKETS DAY CHINA 2012 DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE

Beijing, October 19, 2012

capital markets day china 2012 - bmw group...beijing october 19, 2012 capital markets day china...

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