BMW 2022 HALF-YEAR REPORT: $864 million in motorcycles

2023 BMW C400X

 

https://www.press.bmwgroup.com/global/article/detail/T0402719EN/bmw-group-half-year-report-to-30-june-2022

 

BMW Group occupies top position in premium segment – sales of

electric vehicles rising rapidly

The unabated electrification of the BMW Group’s product portfolio

remains a key success factor for sales growth. Sales of BMW and MINI

brand all-electric models grew particularly strongly, rising by 110.3 % to

75,890 ¹ units in the first half of 2022 and therefore more than doubling

compared to the same period one year earlier (2021: 36,087 ¹ units).

Sales of BEV and PHEV models increased to 184,468 ¹ units, significantly up on the previous year (2021: 153,243 ¹ units; + 20.4 %). The

proportion of electrified vehicles in total deliveries during the six-month

period therefore climbed to 15.9 % (2021: 11.4 %; + 39.5 %).

However, ongoing supply bottlenecks for vehicle components worldwide

and pandemic-related lockdowns in China meant that demand for

BMW Group automobiles could not be fully met despite good order book

levels. As a result, total deliveries of BMW, MINI and Rolls-Royce brand

vehicles in the period from April to June 2022 decreased to 563,187 ²

units, well down on the previous year’s record second-quarter figure

(2021: 702,441 ² units; – 19.8%). During the first six months of the year,

the BMW Group delivered a total of 1,160,094 ² units to customers (2021:

1,339,047 ² units; – 13.4%). Despite these developments, the BMW Group

nevertheless maintained its leading position in the premium segment

within the six-month period under report.

The Financial Services segment recorded a 2.3 % increase in profit before tax in the first half of 2022 to € 1,981 million (2021: € 1,936 million).

However, in line with the development of Automotive segment sales,

the number of new credit financing and leasing contracts concluded

during the period decreased. New contracts with retail customers in this

period fell to 815,448 contracts (2021: 1,029,345 contracts; – 20.8 %).

As of 30 June 2022, the Financial Services segment’s portfolio of credit

financing and leasing contracts with retail customers decreased in size

to 5,411,274 contracts (31 December 2021: 5,577,011; – 3.0 %).

Due to the first-time consolidation of BMW Brilliance Automotive Ltd.,

Shenyang, (BMW Brilliance) with effect from 11 February 2022, Group

profit before tax increased significantly to € 16,156 million in the sixmonth period under report (2021: € 9,736 million, second quarter 2022:

€ 3,929 million, 2021: € 5,979 million). The Group’s pre-tax return on

sales (EBT margin) in the first half of 2022 was 24.5 % (2021: 17.6 %,

second quarter 2022: 11.3 %, 2021: 20.9 %).

Increased shareholding in BMW Brilliance Automotive Ltd.

On 11 February 2022, via its subsidiary BMW Holding B.V., the

BMW Group acquired a further 25 % of the shares in the BMW Brilliance

joint venture, thereby increasing its shareholding from 50 % to 75 %.

The new joint venture agreement came into force and the formal transfer of shares was completed on 11 February 2022, following the issuance

of a new business license. Since that date, the BMW Group has held a

75% majority of the voting rights in BMW Brilliance, which has therefore

been fully consolidated as a subsidiary in the BMW Group Financial

Statements with effect from 11 February 2022. The contractual term of

the joint venture, which previously ran until 2028, has been extended

to 2040 (see ↗ note [03] to the Interim Group Financial Statements).

1 Including the BMW Brilliance Automotive Ltd., Shenyang,

joint venture. ↗ See page 12 for further information.

2 Includes 96,133 units delivered to customers by the

BMW Brilliance Automotive Ltd., Shenyang, joint venture

in the period from 1 January to 10 February 2022

 

Financial Performance

Group net profit significantly improved by first-time consolidation

of BMW Brilliance

The first-time consolidation of BMW Brilliance as of 11 February 2022

has a significant impact on the performance indicators presented for

the Group and the Automotive segment. In the following analysis, only

significant year-on-year deviations in the Group result for the second

quarter and the six-month period attributable to BMW Brilliance’s full

consolidation are highlighted.

Group revenues recorded between January and June rose significantly

year on year to € 65,912 million (2021: € 55,360 million; + 19.1%, second quarter 2022: € 34,770 million, 2021: € 28,582 million; + 21.6 %),

primarily due to the impact of the first-time consolidation of BMW

Brilliance, as described above.

Supply bottlenecks for semiconductor components, the limited availability of wiring harnesses due to the war in Ukraine and pandemic-related

lockdowns in China led to production cutbacks worldwide during the first

half-year. While the supply situation for wiring harnesses eased during

the second quarter, the limited availability of semiconductor components

and lockdowns in China in particular continue to have a negative impact

on global supply chains.

However, the resulting decline in sales volumes was more than offset by

positive pricing and product mix effects, as well as by the higher volume

of business with spare parts and accessories. Currency-related factors

also had a positive impact on revenues. In particular, the positive situation on pre-owned vehicle markets in the USA, the UK and Germany

also enabled higher selling prices to be achieved on lease returns.

Group cost of sales increased to € 54,399 million (2021: € 44,109 million;

+ 23.3%, second quarter 2022: € 28,780 million, 2021: € 22,521 million;

+ 27.8 %), with BMW Brilliance accounting for a significant proportion of

the increase, in line with the higher amount of revenues reported. Cost of

sales also went up due to the first-time consolidation of BMW Brilliance,

including the expense for depreciation and amortisation arising on the

purchase price allocation and the elimination of intragroup profits totalling approximately € 2.3 billion (second quarter 2022: € 1.1 billion).

Higher costs associated with the limited availability of semiconductor

components as well as rising prices for raw materials and energy also

had an unfavourable effect. Cost of sales also increased due to the high

cost of lease returns on the one hand and the higher proportion of electrified vehicles sold on the other. By contrast, the remarketing result

arising on the resale of lease returns continued to have a positive impact

on cost of sales, mainly due to the high level of residual values prevailing on pre-owned vehicle markets during the first half of 2022. The

useful lives of property, plant and equipment were extended during

the six-month period under report in light of the ongoing transformation towards electric mobility and its impact on the product portfolio.

The revision of useful lives had a positive impact on cost of sales (see

↗ note [12] to the Interim Group Financial Statements).

In the corresponding period of the previous financial year, the modernisation of the pension plan reduced cost of sales and selling and

administrative expenses by a total of € 503 million.

Research and development expenditure totalling € 2,942 million (2021:

€ 2,574 million; + 14.3 %) was significantly higher than one year earlier.

By contrast, the research and development ratio went down year on

year to 4.5 % due to the higher level of revenues reported.

Research and development expenses related mainly to new models

(such as the NEUE KLASSE) as well as the electrification and digitalisation of the vehicle fleet and automated driving.

 

 

FURTHER PERFORMANCE FIGURES
2nd quarter 2022 2nd quarter 2021 Change in %
AUTOMOTIVE SEGMENT
Deliveries
BMW 1 units 496,432 617,667 – 19.6
MINI units 65,188 83,165 – 21.6
Rolls-Royce units 1,567 1,609 – 2.6
Total 1 units 563,187 702,441 – 19.8
Production volume
Total 2 units 616,878 614,009 0.5
FINANCIAL SERVICES SEGMENT
New contracts with retail customers 382,019 540,279 – 29.3
1 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
2 Includes 58,507 units produced by the BMW Brilliance
Automotive Ltd., Shenyang, joint venture in the period
from 1 January to 10 February 2022 (i.e. prior to the full
consolidation of that entity in the BMW Group Financial
Statements) (second quarter 2021: 170,266 units,
January to June 2021: 336,800 units).
↗ See page 12 for further information.
5 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
BMW Group in Figures
FURTHER PERFORMANCE FIGURES
2nd quarter 2022 2nd quarter 2021 Change in %
Free cash flow Automotive segment € million 2,954 2,380 24.1
Group revenues € million 34,770 28,582 21.6
Automotive € million 30,015 24,983 20.1
Motorcycles € million 864 868 – 0.5
Financial Services € million 8,765 8,200 6.9
Other Entities € million 2 1 –
Eliminations € million – 4,876 – 5,470 – 10.9
Group profit / loss before financial result (EBIT) € million 3,426 5,005 – 31.5
Automotive € million 2,463 3,953 – 37.7
Motorcycles € million 127 149 – 14.8
Financial Services € million 982 1,128 – 12.9
Other Entities € million – 142 1 –
Eliminations € million – 4 – 226 – 98.2
Group profit / loss before tax (EBT) € million 3,929 5,979 – 34.3
Automotive € million 2,526 4,750 – 46.8
Motorcycles € million 128 149 – 14.1
Financial Services € million 974 1,149 – 15.2
Other Entities € million 277 124 –
Eliminations € million 24 – 193 –
Group income taxes € million – 882 – 1,189 – 25.8
Group net profit / loss € million 3,047 4,790 – 36.4
Earnings per share of common stock 1 € 4.30 7.23 – 40.5
Earnings per share of preferred stock 1 € 4.31 7.24 – 40.5
Group pre-tax return on sales 2 % 11.3 20.9 – 45.9
1 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 four quarters of the corresponding financial year.
2 Group profit / loss before tax as a percentage of Group
revenues.
6 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
BMW Group in Figures
KEY PERFORMANCE INDICATORS
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
GROUP
Profit before tax € million 16,156 9,736 65.9
AUTOMOTIVE SEGMENT
Deliveries 1 units 1,160,094 1,339,047 – 13.4
Share of electrified vehicles in deliveries % 15.9 11.4 39.5
EBIT margin 2 % 8.5 13.0 – 34.6
MOTORCYCLES SEGMENT
Deliveries units 107,555 107,610 – 0.1
EBIT margin 2 % 14.1 17.5 – 19.4
1 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
2 Profit / loss before financial result as a percentage of
segment revenues.
7 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
BMW Group in Figures
FURTHER PERFORMANCE FIGURES
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
AUTOMOTIVE SEGMENT
Deliveries
BMW 1 units 1,016,228 1,178,210 – 13.7
MINI units 140,675 157,848 – 10.9
Rolls-Royce units 3,191 2,989 6.8
Total 1 units 1,160,094 1,339,047 – 13.4
Production volume
Total 2 units 1,158,654 1,283,127 – 9.7
FINANCIAL SERVICES SEGMENT
New contracts with retail customers 815,448 1,029,345 – 20.8
1 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
2 Includes 58,507 units produced by the BMW Brilliance
Automotive Ltd., Shenyang, joint venture in the period
from 1 January to 10 February 2022 (i.e. prior to the full
consolidation of that entity in the BMW Group Financial
Statements) (second quarter 2021: 170,266 units,
January to June 2021: 336,800 units).
↗ See page 12 for further information.
8 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
BMW Group in Figures
FURTHER PERFORMANCE FIGURES
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
Free cash flow Automotive segment € million 7,770 4,902 58.5
Group revenues € million 65,912 55,360 19.1
Automotive € million 56,741 47,745 18.8
Motorcycles € million 1,663 1,621 2.6
Financial Services € million 17,251 16,106 7.1
Other Entities € million 3 2 50.0
Eliminations € million – 9,746 – 10,114 – 3.6
Group profit / loss before financial result (EBIT) € million 6,817 8,030 – 15.1
Automotive € million 4,830 6,189 – 22.0
Motorcycles € million 235 284 – 17.3
Financial Services € million 1,948 1,895 2.8
Other Entities € million – 174 – 5 –
Eliminations € million – 22 – 333 – 93.4
Group profit / loss before tax (EBT) € million 16,156 9,736 65.9
Automotive € million 12,946 7,526 72.0
Motorcycles € million 237 284 – 16.5
Financial Services € million 1,981 1,936 2.3
Other Entities € million 962 265 –
Eliminations € million 30 – 275 –
Group income taxes € million – 2,924 – 2,113 38.4
Group net profit / loss € million 13,232 7,623 73.6
Earnings per share of common stock 1 € 19.63 11.49 70.8
Earnings per share of preferred stock 1 € 19.64 11.50 70.8
Group pre-tax return on sales 2 % 24.5 17.6 39.2
1 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 four quarters of the corresponding financial year.
2 Group profit / loss before tax as a percentage of Group
revenues.
9 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
2I N T E R I M G R O U P
MANAGEMENT REPORT
11 Financial Performance
11 General Economic Environment
12 Group Overview
16 Automotive Segment
22 Financial Services Segment
24 Other Entities Segment And Eliminations
25 Outlook, Risk and Opportunity Management
25 Outlook
29 Risk and Opportunity Management
10 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
FINANCIAL PERFORMANCE
GENERAL ECONOMIC ENVIRONMENT
The first half of 2022 saw a significant slowdown in economic activity
worldwide. At present, the International Monetary Fund (IMF) is still
projecting growth of 3.2 %, compared with its forecast of 4.4 % for the
global economy at the beginning of the year. The main reasons for the
downgrade are the war in Ukraine since the end of February and related sanctions, as well as the zero-covid policy focused measures taken
in China to contain the coronavirus pandemic which have resulted in
regional lockdowns lasting several weeks in some cases. The resulting
intensification of supply chain problems and sharp rise in energy prices
have given rise to significant distortions in the global economy and are
currently driving up inflation rates. In response, many central banks have
already initiated tighter monetary policies, thereby putting further pressure on economic growth.
International automobile markets
Against the backdrop of the ongoing tight supply situation for semiconductor components, international automobile markets were unable to
avoid the adverse impact of these various unfavourable trends and contracted during the first half of 2022. Registration figures for the six-month
period therefore developed as follows in the largest automobile markets:
Change compared
to previous year
in %
EU 27 – 14
thereof Germany – 11
thereof France – 16
thereof Italy – 22
thereof Spain – 11
United Kingdom (UK) – 12
USA – 18
China – 8
Japan – 15
South Korea – 11
Total – 14
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
11 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
GROUP OVERVIEW
BMW Group occupies top position in premium segment – sales of
electric vehicles rising rapidly
The unabated electrification of the BMW Group’s product portfolio
remains a key success factor for sales growth. Sales of BMW and MINI
brand all-electric models grew particularly strongly, rising by 110.3 % to
75,890 ¹ units in the first half of 2022 and therefore more than doubling
compared to the same period one year earlier (2021: 36,087 ¹ units).
Sales of BEV and PHEV models increased to 184,468 ¹ units, significantly up on the previous year (2021: 153,243 ¹ units; + 20.4 %). The
proportion of electrified vehicles in total deliveries during the six-month
period therefore climbed to 15.9 % (2021: 11.4 %; + 39.5 %).
However, ongoing supply bottlenecks for vehicle components worldwide
and pandemic-related lockdowns in China meant that demand for
BMW Group automobiles could not be fully met despite good order book
levels. As a result, total deliveries of BMW, MINI and Rolls-Royce brand
vehicles in the period from April to June 2022 decreased to 563,187 ²
units, well down on the previous year’s record second-quarter figure
(2021: 702,441 ² units; – 19.8%). During the first six months of the year,
the BMW Group delivered a total of 1,160,094 ² units to customers (2021:
1,339,047 ² units; – 13.4%). Despite these developments, the BMW Group
nevertheless maintained its leading position in the premium segment
within the six-month period under report.
The Financial Services segment recorded a 2.3 % increase in profit before tax in the first half of 2022 to € 1,981 million (2021: € 1,936 million).
However, in line with the development of Automotive segment sales,
the number of new credit financing and leasing contracts concluded
during the period decreased. New contracts with retail customers in this
period fell to 815,448 contracts (2021: 1,029,345 contracts; – 20.8 %).
As of 30 June 2022, the Financial Services segment’s portfolio of credit
financing and leasing contracts with retail customers decreased in size
to 5,411,274 contracts (31 December 2021: 5,577,011; – 3.0 %).
Due to the first-time consolidation of BMW Brilliance Automotive Ltd.,
Shenyang, (BMW Brilliance) with effect from 11 February 2022, Group
profit before tax increased significantly to € 16,156 million in the sixmonth period under report (2021: € 9,736 million, second quarter 2022:
€ 3,929 million, 2021: € 5,979 million). The Group’s pre-tax return on
sales (EBT margin) in the first half of 2022 was 24.5 % (2021: 17.6 %,
second quarter 2022: 11.3 %, 2021: 20.9 %).
Increased shareholding in BMW Brilliance Automotive Ltd.
On 11 February 2022, via its subsidiary BMW Holding B.V., the
BMW Group acquired a further 25 % of the shares in the BMW Brilliance
joint venture, thereby increasing its shareholding from 50 % to 75 %.
The new joint venture agreement came into force and the formal transfer of shares was completed on 11 February 2022, following the issuance
of a new business license. Since that date, the BMW Group has held a
75% majority of the voting rights in BMW Brilliance, which has therefore
been fully consolidated as a subsidiary in the BMW Group Financial
Statements with effect from 11 February 2022. The contractual term of
the joint venture, which previously ran until 2028, has been extended
to 2040 (see ↗ note [03] to the Interim Group Financial Statements).
1 Including the BMW Brilliance Automotive Ltd., Shenyang,
joint venture. ↗ See page 12 for further information.
2 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
12 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
Group net profit significantly improved by first-time consolidation
of BMW Brilliance
The first-time consolidation of BMW Brilliance as of 11 February 2022
has a significant impact on the performance indicators presented for
the Group and the Automotive segment. In the following analysis, only
significant year-on-year deviations in the Group result for the second
quarter and the six-month period attributable to BMW Brilliance’s full
consolidation are highlighted.
Group revenues recorded between January and June rose significantly
year on year to € 65,912 million (2021: € 55,360 million; + 19.1%, second quarter 2022: € 34,770 million, 2021: € 28,582 million; + 21.6 %),
primarily due to the impact of the first-time consolidation of BMW
Brilliance, as described above.
Supply bottlenecks for semiconductor components, the limited availability of wiring harnesses due to the war in Ukraine and pandemic-related
lockdowns in China led to production cutbacks worldwide during the first
half-year. While the supply situation for wiring harnesses eased during
the second quarter, the limited availability of semiconductor components
and lockdowns in China in particular continue to have a negative impact
on global supply chains.
However, the resulting decline in sales volumes was more than offset by
positive pricing and product mix effects, as well as by the higher volume
of business with spare parts and accessories. Currency-related factors
also had a positive impact on revenues. In particular, the positive situation on pre-owned vehicle markets in the USA, the UK and Germany
also enabled higher selling prices to be achieved on lease returns.
Group cost of sales increased to € 54,399 million (2021: € 44,109 million;
+ 23.3%, second quarter 2022: € 28,780 million, 2021: € 22,521 million;
+ 27.8 %), with BMW Brilliance accounting for a significant proportion of
the increase, in line with the higher amount of revenues reported. Cost of
sales also went up due to the first-time consolidation of BMW Brilliance,
including the expense for depreciation and amortisation arising on the
purchase price allocation and the elimination of intragroup profits totalling approximately € 2.3 billion (second quarter 2022: € 1.1 billion).
Higher costs associated with the limited availability of semiconductor
components as well as rising prices for raw materials and energy also
had an unfavourable effect. Cost of sales also increased due to the high
cost of lease returns on the one hand and the higher proportion of electrified vehicles sold on the other. By contrast, the remarketing result
arising on the resale of lease returns continued to have a positive impact
on cost of sales, mainly due to the high level of residual values prevailing on pre-owned vehicle markets during the first half of 2022. The
useful lives of property, plant and equipment were extended during
the six-month period under report in light of the ongoing transformation towards electric mobility and its impact on the product portfolio.
The revision of useful lives had a positive impact on cost of sales (see
↗ note [12] to the Interim Group Financial Statements).
In the corresponding period of the previous financial year, the modernisation of the pension plan reduced cost of sales and selling and
administrative expenses by a total of € 503 million.
Research and development expenditure totalling € 2,942 million (2021:
€ 2,574 million; + 14.3 %) was significantly higher than one year earlier.
By contrast, the research and development ratio went down year on
year to 4.5 % due to the higher level of revenues reported.
Research and development expenses related mainly to new models
(such as the NEUE KLASSE) as well as the electrification and digitalisation of the vehicle fleet and automated driving.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
13 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
BMW Group research and development expenses
in € million
2nd quarter
2022
2nd quarter
2021
Change
in %
1 January to
30 June 2022
1 January to
30 June 2021
Change
in %
Research and development expenditure 1 1,551 1,287 20.5 2,942 2,574 14.3
Amortisation 523 460 13.7 1,041 897 16.1
Capitalised development costs – 514 – 443 16.0 – 855 – 734 16.5
Research and development expenses 1,560 1,304 19.6 3,128 2,737 14.3
in %
2nd quarter
2022
2nd quarter
2021
Change
in %pts
1 January to
30 June 2022
1 January to
30 June 2021
Change
in %pts
Research and development expenses as a percentage of revenues 4.5 4.6 – 0.1 4.7 4.9 – 0.2
Research and development expenditure ratio 2 4.5 4.5 0.0 4.5 4.6 – 0.1
Capitalisation rate 3 33.1 34.4 – 1.3 29.1 28.5 0.6
The net positive amount of other operating income and expenses for
the six-month period was € 886 million lower than one year earlier. In
the previous year, other operating income included income of approximately € 1 billion resulting from the partial reversal of the provision for
EU antitrust proceedings.
The six-month financial result improved to € 9,339 million (2021:
€ 1,706 million, second quarter 2022: € 503 million, 2021: € 974 million).
Included in those figures, other financial result amounted to € 8,930
million (2021: € 767 million, second quarter 2022: € 399 million, 2021:
€ 433 million; – 7.9%). The main factor driving the year-on-year improvement was the provisional gain of around € 7.7 billion recognised in conjunction with the remeasurement of the BMW Group’s previous at-equity
interest in BMW Brilliance at the date of the business combination.
Other financial result also benefited from the continued favourable fair
value development of interest and currency rate hedges due to significant upturns in yield curves, mainly in the USA, the UK and the eurozone.
1 Research and development expenditure comprises the sum
of research and non-capitalised development cost and
capitalised development cost (not including the associated
scheduled amortisation).
2 Research and development expenditure as a percentage of
revenues.
3 Capitalised development costs as a percentage of research
and development expenditure.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
14 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
The reported positive result from at-equity accounted investments
amounted to € 137 million and was therefore significantly lower than
one year earlier (2021: positive € 975 million; – 85.9 %, second quarter
2022: negative € 123 million, 2021: positive € 546 million), reflecting the
fact that the Group’s share of earnings in the BMW Brilliance joint venture in China was only included in this line item until 10 February 2022.
Group profit for the six-month period was reduced by a mid-threedigit million amount as a result of the recognition of expenses in connection with the valuation of assets and liabilities accounted for by the
BMW Group’s Russian subsidiaries (see ↗ note [05] to the Interim
Group Financial Statements).
Despite the negative impact of lower sales volumes, component shortages and higher raw materials prices, Group profit before tax for the
six-month period increased to € 16,156 million (2021: € 9,736 million,
second quarter 2022: € 3,929 million, 2021: € 5,979 million). The Group
EBT margin for the period from January to June came in at 24.5% (2021:
17.6 %, second quarter 2022: 11.3 %, 2021: 20.9 %).
Financing activities
During the six-month period ended 30 June 2022, the BMW Group issued bonds totalling approximately € 4.5 billion, refinancing itself by
means of a bond issue in China (Panda bond), a euro benchmark bond
and a 144A bond denominated in USD. In addition, ABS transactions
with a total volume of approximately € 7.8 billion were either newly
concluded or prolonged in the USA, Germany, the UK, China and Canada.
Group liquidity remained at a high level of around € 26.2 billion at the
end of the reporting period (31 December 2021: € 20.2 billion).
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
15 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
AUTOMOTIVE SEGMENT
2nd quarter 2022 2nd quarter 2021 Change in %
Deliveries 1, 2 units 563,187 702,441 – 19.8
Production volume 3 units 616,878 614,009 0.5
Revenues € million 30,015 24,983 20.1
Profit before financial result (EBIT) € million 2,463 3,953 – 37.7
Profit before tax € million 2,526 4,750 – 46.8
EBIT margin 1 % 8.2 15.8 – 48.1
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
Deliveries 1, 2 units 1,160,094 1,339,047 – 13.4
Production volume 3 units 1,158,654 1,283,127 – 9.7
Revenues € million 56,741 47,745 18.8
Profit before financial result (EBIT) € million 4,830 6,189 – 22.0
Profit before tax € million 12,946 7,526 72.0
EBIT margin 1 % 8.5 13.0 – 34.6
BMW Group maintains its leading position in premium segment
Worldwide demand for BMW, MINI and Rolls-Royce brand vehicles remained strong during the first half of 2022. At the same time, however,
operations continued to be hampered by vehicle component shortages
and the impact of pandemic-related lockdowns in China. Despite these
adverse circumstances, however, the BMW Group maintained its leading
position in the global premium segment.
In total, 1,160,094 ² BMW Group vehicles were delivered to customers
during the six-month period under report, down by 13.4 % compared to
the previous year’s record level of 1,339,047 ² units, comprising 1,016,228 ²
BMW (2021: 1,178,210 ² units; – 13.7%), 140,675 MINI (2021: 157,848 units;
– 10.9 %) and 3,191 Rolls-Royce brand vehicles (2021: 2,989 units;
+ 6.8 %).
1 Key performance indicator
2 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
3 Includes 58,507 units produced by the BMW Brilliance
Automotive Ltd., Shenyang, joint venture in the period
from 1 January to 10 February 2022 (i.e. prior to the full
consolidation of that entity in the BMW Group Financial
Statements) (second quarter 2021: 170,266 units,
January to June 2021: 336,800 units).
↗ See page 12 for further information.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
16 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
BMW Group – deliveries of electrified models
in units
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
BEV 75,890 36,087 110.3
BMW 57,462 22,633 153.9
MINI 18,428 13,454 37.0
PHEV 108,578 117,156 – 7.3
BMW 101,472 106,833 – 5.0
MINI 7,106 10,323 – 31.2
Total 2 184,468 153,243 20.4
Deliveries by region
A combination of ongoing supply bottlenecks for vehicle components
such as semiconductors and further restrictions due to the coronavirus pandemic resulted in a decrease in total vehicle deliveries by
the BMW Group in the first half of 2022.
A sharp decrease in deliveries was recorded in Europe, declining to
213,842 units in the second quarter (2021: 265,816 units; – 19.6 %) and
434,235 units over the six-month period (2021: 504,834 units; – 14.0 %).
In Germany, the BMW Group delivered a total of 61,682 units in the
second quarter (2021: 73,362 units; – 15.9%) and 121,780 units over the
half-year period (2021: 136,058 units; – 10.5 %).
In the Americas, after an upturn at the beginning of the year, the second
quarter 2022 also saw deliveries to customers fall sharply to 105,606
units (2021: 128,792 units; – 18.0 %), resulting in a moderate decline of
9.0 % for the six-month period (2022: 204,775 units, 2021: 225,144
units). Figures for the USA were also down, with 84,489 units delivered
to customers between April and June (2021: 106,369 units; – 20.6 %)
and 165,463 units delivered during the first half of the year (2021:
184,436 units; – 10.3 %).
In the second quarter, the BMW Group delivered a total of 563,187 ¹
vehicles (2021: 702,441 ¹ units; – 19.8 %), of which the BMW brand
accounted for 496,432 ¹ units (2021: 617,667 ¹ units; – 19.6%) and the
MINI brand for 65,188 units (2021: 83,165 units; – 21.6 %). Secondquarter deliveries of the ultra-luxury Rolls-Royce brand totalled
1,567 units, only marginally down on the previous year’s corresponding
figure (2021: 1,609 units; – 2.6 %).
Electric mobility as a key success factor
Increasing the scope of electrification within the model range is proving
to be a key success factor and driver of business growth for the
BMW Group. Demand for electrified vehicles during the first half of 2022
remained high, matched by a corresponding increase in deliveries. The
number of all-electric models delivered by the BMW Group during this
period rose dynamically to 75,890 ² units (2021: 36,087 ² units; + 110.3 %).
Deliveries of BEV and PHEV models during the six-month period climbed
to 184,468 ² units (2021: 153,243 ² units; + 20.4 %). Second-quarter
deliveries of all-electric vehicles increased to 40,601 ² units (2021: 21,926 ²
units; + 85.2 %), contributing significantly to the overall rise in the sale of
electrified vehicle models to 94,799 ² units (2021: 83,036 ² units; + 14.2%).
As a result, the proportion of deliveries of electrified vehicles to total
deliveries also increased significantly, rising to 15.9 % for the six-month
period (2021: 11.4 %; + 39.5 %).
The innovative BMW iX ³ and BMW i4 ³ models are in high demand
internationally, with deliveries rising to 12,839 units and 9,294 units
respectively in the six-month period under report, thereby accounting
for a high proportion of the BMW Group’s sales of electrified vehicles.
The BMW iX3 ³ (2022: 21,548 units, 2021: 10,009 units) and the MINI
Cooper SE ³ (2022: 18,428 units, 2021: 13,454 units) also contributed
substantially to the sales growth achieved during the period under report. With the market launch of the all-electric BMW i7 ³ top range sedan
and the BMW iX1 ³ during the course of the financial year 2022, the
BMW Group continues to press ahead with the process of electrifying
its model range in line with previous announcements.
1 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
2 Including the BMW Brilliance Automotive Ltd., Shenyang
joint venture. ↗ See page 12 for further information.
3 ↗ See Consumption and Carbon Disclosures.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
17 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
In Asia, pandemic-related restrictions in the form of renewed lockdowns
in China had a particularly significant impact on sales volumes, with
second-quarter and six-month deliveries down to 230,494* units (2021:
292,654* units; – 21.2 %) and 495,559* units (2021: 580,351* units;
– 14.6 %) respectively. In China, deliveries fell to 170,571* units (2021:
237,763* units; – 28.3%) in the second quarter and to 379,524* units
(2021: 467,956* units; – 18.9%) over the six-month period under report.
Automotive segment – deliveries by region and market
in units
2nd quarter
2022
2nd quarter
2021 Change in %
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
Europe 213,842 265,816 – 19.6 434,235 504,834 – 14.0
thereof Germany 61,682 73,362 – 15.9 121,780 136,058 – 10.5
thereof UK 37,883 45,228 – 16.2 77,784 87,641 – 11.2
Americas 105,606 128,792 – 18.0 204,775 225,144 – 9.0
thereof USA 84,489 106,369 – 20.6 165,463 184,436 – 10.3
Asia 230,494 * 292,654 * – 21.2 495,559 * 580,351 * – 14.6
thereof China 170,571 * 237,763 * – 28.3 379,524 * 467,956 * – 18.9
Other markets 13,245 15,179 – 12.7 25,525 28,718 – 11.1
Total 563,187 * 702,441 * – 19.8 1,160,094 * 1,339,047 * – 13.4
* Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
18 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
Deliveries of BMW brand vehicles by model series
in units
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
BMW 1 Series / 2 Series 98,316 149,633 – 34.3
BMW 3 Series / 4 Series 228,274 273,072 – 16.4
BMW 5 Series / 6 Series 158,977 179,045 – 11.2
BMW 7 Series / 8 Series 23,863 34,731 – 31.3
BMW Z4 6,673 8,290 – 19.5
BMW X1 / X2 130,643 172,042 – 24.1
BMW X3 / X4 198,844 202,916 – 2.0
BMW X5 / X6 116,758 118,718 – 1.7
BMW X7 27,843 26,902 3.5
BMW i (iX, i3 and i8) 26,037 12,861 102.4
BMW total 1,016,228 1,178,210 – 13.7
thereof BEV 57,462 22,633 153.9
thereof PHEV 101,472 106,833 – 5.0
BMW brand down on previous year – strong growth for all-electric
vehicles
Second-quarter deliveries of BMW brand vehicles decreased to 496,432 ¹
units (2021: 617,667 ¹ units; – 19.6 %). The cumulative figure for the sixmonth period also fell short of the previous year’s record level (2022:
1,016,228 ¹ units, 2021: 1,178,210 ¹ units; – 13.7%). Within the top range
segment, on the other hand, half-year deliveries of the BMW X7 were
up by 3.5 % compared to one year earlier. Significant increases were
recorded by the BMW brand’s all-electric models, with growth in the
first half of the year above 150 %, driven in particular by the new innovative BMW iX ² launched in 2021.
MINI – electrification set to continue success story
MINI brand deliveries fell to 65,188 units in the second quarter 2022
(2021: 83,165 units; – 21.6 %) and 140,675 units for the six-month period
(2021: 157,848 units; – 10.9 %). MINI also recorded growth in business
with electrified models, driven in particular by the all-electric MINI
Cooper SE ², deliveries of which increased by 37.0 % to 18,428 units in
the six-month period under report (2021: 13,454 units). In total, electrified vehicles accounted for more than 18 % of global deliveries of the
MINI brand in the first six months of the financial year 2022.
Increase in Rolls-Royce deliveries
Rolls-Royce Motor Cars can look back on a highly successful six-month
performance. After a strong start to the year, deliveries of the ultraluxury marque fell to 1,567 units in the second quarter, only slightly down
on the previous year’s high figure (2021: 1,609 units; – 2.6 %). Overall,
however, deliveries during the first half of the year increased by a solid
6.8% to 3,191 units (2021: 2,989 units), driven in particular by the RollsRoyce Cullinan ² as well as the Phantom ² and Ghost ² models.
Profit before financial result down on previous year due to lower
deliveries and negative first-time consolidation effects
The first-time consolidation of BMW Brilliance also had a significant
impact on the performance indicators presented for the Automotive
segment. In line with the approach taken for the Group, in the following
analysis, only significant year-on-year deviations arising in the Automotive segment due to the full consolidation of BMW Brilliance are
highlighted.
1 Includes 96,133 units delivered to customers by the
BMW Brilliance Automotive Ltd., Shenyang, joint venture
in the period from 1 January to 10 February 2022
(i.e. prior to the full consolidation of that entity in the
BMW Group Financial Statements) (second quarter 2021:
186,206 units, January to June 2021: 362,044 units).
↗ See page 12 for further information.
2 ↗ See Consumption and Carbon Disclosures.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
19 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
Segment revenues recorded between January and June rose significantly year on year to € 56,741 million (2021: € 47,745 million; + 18.8%,
second quarter 2022: € 30,015 million, 2021: € 24,983 million; + 20.1%),
mainly reflecting the impact of the full consolidation of BMW Brilliance.
The disruptions to global production described above caused sales
volumes to decline in the first half of 2022. However, positive pricing
and product mix effects, increased revenues from the sale of spare
parts and accessories and the positive situation on pre-owned markets,
reflected in higher residual values, more than offset the impact of lower
sales volumes. Revenues also benefited from favourable currency effects.
Cost of sales increased to € 48,093 million (2021: € 39,060 million;
+ 23.1%, second quarter 2022: € 25,464 million, 2021: € 20,344 million;
+ 25.2 %), with BMW Brilliance accounting for a significant proportion
of the increase, in line with the higher amount of revenues reported.
Cost of sales was also impacted by the first-time consolidation of
BMW Brilliance, including the expense for depreciation and amortisation
arising on the purchase price allocation and the elimination of intercompany profits amounting to approximately € 2.3 billion (second quarter
2022: € 1.1 billion). Rising prices for raw materials and energy, price
increases in general, and higher research and development expenses
all had the effect of driving up cost of sales. Moreover, the growing
proportion of electrified vehicles sold also contributed to the year-onyear increase in cost of sales.
In the corresponding period of the previous financial year, the modernisation of the pension plan reduced cost of sales and selling and administrative expenses.
The net positive amount of other operating income and expenses was
lower than one year earlier. The net figure in the second quarter of the
previous year included income of approximately € 1 billion resulting from
the partial reversal of the provision for EU antitrust proceedings.
The profit before financial result for the six-month period amounted to
€ 4,830 million (2021: € 6,189 million; – 22.0 %, second quarter 2022:
€ 2,463 million, 2021: € 3,953 million; – 37.7 %). The Automotive segment’s EBIT margin for the period from January to June came in at 8.5%
(2021: 13.0 %, second quarter 2022: 8.2 %, 2021: 15.8 %).
The segment financial result for the six-month period was a net positive
amount of € 8,116 million (2021: € 1,337 million, second quarter 2022:
€ 63 million, 2021: € 797 million). The sharp increase in other financial
result arose in conjunction with the remeasurement of the segment’s
previous at-equity interest in BMW Brilliance. The result from at-equity
accounted investments deteriorated to a net positive amount of € 137
million (2021: net positive amount of € 975 million; –85.9 %, second
quarter 2022: net negative amount of € 123 million, 2021: net positive
amount of € 546 million), reflecting the fact that the segment share of
joint venture earnings was only included in this line item until 10 February 2022.
Interest and similar expenses reported in the second quarter 2022 included income arising on the change in interest rates in connection with
the measurement of provisions.
The various items described above contributed to the increase in segment profit before tax to € 12,946 million for the six-month period (2021:
€ 7,526 million, second quarter 2022: € 2,526 million, 2021: € 4,750
million; – 46.8 %).
Automotive segment – free cash flow for the period from 1 January
to 30 June
The Automotive segment’s free cash flow includes operating cash flows
from the fully consolidated entity BMW Brilliance with effect from 11 February 2022. For the six-month period, segment free cash flow amounted to € 7,770 million (2021: € 4,902 million). The main reason for the
year-on-year increase was the cash inflow from investing activities,
whereby higher cash outflows for intangible assets and property, plant
and equipment were more than offset by a cash inflow of € 5,011 million
resulting from the full consolidation of BMW Brilliance.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
20 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
* Excluding derivative financial instruments.
Cash inflows from operating activities fell year on year, mainly due to the
decrease in liabilities for advance payments received and the reduction
in dealership bonus liabilities, the latter caused by pandemic-related
dealership closures in China and the accompanying negative impact on
the Chinese sales company as well as on BMW Brilliance. In addition,
the cash inflow from operating activities was impacted by the significantly
higher level of tax paid compared to one year earlier.
in € million 2022 2021 Change
Cash inflow (+) / outflow (–)
from operating activities 5,677 7,251 – 1,574
Cash inflow (+) / outflow (–)
from investing activities 2,057 – 2,360 4,417
Adjustment for net investment
in marketable securities and
investment funds 36 11 25
Free cash flow Automotive
segment 7,770 4,902 2,868
Automotive segment – net financial assets
In the Automotive segment, net financial assets comprised the following:
in € million 30.6.2022 31.12.2021 Change
Cash and cash equivalents 18,355 12,009 6,346
Marketable securities and
investment funds 3,595 3,767 – 172
Intragroup net financial assets 10,302 9,111 1,191
Financial assets 32,252 24,887 7,365
Less: external financial liabilities* – 2,717 – 2,525 – 192
Net financial assets
Automotive segment 29,535 22,362 7,173
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
21 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
FINANCIAL SERVICES SEGMENT
2nd quarter 2022 2nd quarter 2021 Change in %
New contracts with retail customers 382,019 540,279 – 29.3
Revenues € million 8,765 8,200 6.9
Profit before financial result (EBIT) € million 982 1,128 – 12.9
Profit before tax € million 974 1,149 – 15.2
1 January to
30 June 2022
1 January to
30 June 2021 Change in %
New contracts with retail customers 815,448 1,029,345 – 20.8
Revenues € million 17,251 16,106 7.1
Profit before financial result (EBIT) € million 1,948 1,895 2.8
Profit before tax € million 1,981 1,936 2.3
30.6.2022 31.12.2021 Change in %
Contract portfolio with retail customers 5,411,274 5,577,011 – 3.0
Business volume in balance sheet terms* € million 140,502 139,530 0.7
Financial Services segment earnings up slightly
The profit before tax generated by the Financial Services segment for
the six-month period rose slightly to € 1,981 million (2021: € 1,936 million; + 2.3 %). In addition to the underlying profitability of the portfolio,
earnings during the reporting period benefited in particular from high
remarketing proceeds from lease returns, particularly in the USA and
Europe, and favourable currency effects, while write-downs recognised
in connection with the war in Ukraine and related uncertainties had an
offsetting effect. Rising inflation and interest rates are beginning to
cause conditions to deteriorate for consumers. Credit losses remained
at an historically low level.
In balance sheet terms, the segment’s business volume was at a similar
* Calculated on the basis of the line items “Leased level to that reported at the end of the previous financial year.
products” and “Receivables from sales financing”
(current and non-current) as reported in the Financial
Services segment balance sheet.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
22 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
New business with retail customers down year on year
A total of 815,448 new credit financing and leasing contracts were
concluded with retail customers during the first half of 2022 (2021:
1,029,345 contracts; – 20.8 %). The decline in new business was primarily attributable to the tight supply situation for semiconductor components affecting the automotive sector, which has resulted in limited
availability of new vehicles. In addition, competition within the financial
services sector remains intense.
Burdened by these factors, the volume of new leasing and credit financing business fell by 25.3 % and 18.6 % respectively. In the first half of
2022, leasing accounted for 30.1 % and credit financing for 69.9 % of
new business.
New contracts signed during the six-month period included 170,721
credit financing and leasing contracts relating to pre-owned BMW and
MINI brand vehicles (2021: 209,821 contracts; – 18.6 %).
The improved product mix and higher selling prices being achieved by
the Automotive segment also gave rise to a higher average financing
volume per vehicle in the Financial Services segment during the period
under report, partially offsetting the impact of the lower number of new
contracts. Favourable currency effects also helped to cushion the impact
of the overall decrease. The total volume of new credit financing and
leasing contracts with retail customers fell by 12.3% to € 28,442 million
(2021: € 32,445 million) year on year.
Over the six-month period, 44.4 % ¹ of new BMW Group vehicles
were either leased or financed by the Financial Services segment
(2021: 50.2 %; – 5.8 percentage points).
At 30 June 2022, a total of 5,411,274 credit financing and leasing contracts were in place with retail customers (31 December 2021: 5,577,011
contracts; – 3.0%). In the Asia / Pacific region, the contract portfolio was
only marginally down on the previous year (– 0.3 %). The decreases
recorded in the Europe / Middle East/ Africa (– 1.9 %), China (– 2.7 %),
EU Bank ² (– 3.4 %) and Americas (– 5.2 %) regions were all on a larger
scale.
Fleet business at previous year’s level
Under the brand name Alphabet, the Financial Services segment’s fleet
management business offers leasing and financing arrangements as
well as a range of related services, primarily to commercial customers.
A portfolio of 690,862 fleet contracts was in place at 30 June 2022
(31 December 2021: 696,393 contracts; – 0.8 %).
Dealership financing up slightly on previous year
The total volume of dealership financing increased slightly to € 13,437
million at 30 June 2022 due to currency factors (31 December 2021:
€ 13,149 million; + 2.2 %).
1 The calculation only includes automobile markets in
which the Financial Services segment is represented by
a consolidated entity.
2 The EU Bank comprises BMW Bank GmbH with its
branches in Italy, Spain and Portugal.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
23 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Financial Performance
O T H E R E N T I T I E S S E G M E N T A N D
ELIMINATIONS
In the Other Entities segment, profit before tax for the six-month period
under report amounted to € 962 million (2021: € 265 million, second
quarter 2022: € 277 million, 2021: € 124 million). Sundry other financial
result was impacted by positive valuation effects arising on interest rate
hedges due to higher interest rates in the USA, the UK and the eurozone.
At the level of profit/loss before tax for the six-month period, eliminations amounted to a positive amount of € 30 million (2021: negative
€ 275 million, second quarter 2022: positive € 24 million, 2021: negative
€ 193 million). The year-on-year change was mainly impacted by lower
eliminations due to the decrease in new leasing business as a result of
lower vehicle sales.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
24 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Outlook, Risk and Opportunity Management
The outlook presented in this half-year report as well as the comments
on risk and opportunity management show the expected development
of the BMW Group, including significant risks and opportunities, from a
Group management perspective for the remainder of the financial year
2022. They contain forward-looking statements based on expectations
and assessments that are subject to a substantial degree of uncertainty. Actual business developments could deviate both positively and
negatively from the assumptions described below due to a broad range
of factors, including unexpected changes in the economic, political and / or
legal environment. Currently, potential causes of deviation include in
particular the war in Ukraine and its potential geopolitical effects, the
tight global supply situation for vehicle components and the further
course of the coronavirus pandemic. In addition, rising inflation rates
and interest rates are making conditions for consumers increasingly
difficult. Further information is provided in the BMW Group Report 2021
(Outlook, from page 124 et seq. and Risk and opportunity management,
from page 129 et seq.).
OUTLOOK
International automobile markets
In light of the numerous adverse factors facing the sector, the outlook
for the world’s automobile markets for the full year 2022 has deteriorated further. The continuing limited availability of intermediate products
and raw materials means that new vehicles continue to be in short
supply. Rising inflation and interest rates are resulting in many markets
in less favourable financing conditions for consumers, potentially
reducing their willing to spend. The outlook is further dampened by the
global effects of the ongoing war in Ukraine and lockdowns in China.
Taking all of these factors into account, the BMW Group currently expects
the largest automobile markets to develop as follows in 2022:
Change compared
to previous year
in %
EU 27 – 2
thereof Germany – 1
thereof France – 2
thereof Italy – 5
thereof Spain – 6
United Kingdom (UK) – 3
USA – 9
China – 1
Japan – 8
South Korea – 6
Total – 6
OUTLOOK, RISK AND OPPORTUNITY MANAGEMENT 11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
25 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Outlook, Risk and Opportunity Management
Outlook for the BMW Group – assumptions used in the outlook
The BMW Group’s performance in the first half of 2022 was negatively
impacted by the war in Ukraine and ongoing supply bottlenecks for
semiconductor components. Moreover, pandemic-related lockdowns in
China led to disruptions at local production facilities and restrictions on
global logistics and supply chains, thereby slowing the pace of economic
growth in China. This mixture of adverse factors caused delivery figures
to decline.
In the first quarter, the BMW Group had assumed that the supply situation for semiconductor components would ease during the second half
of 2022. In the meantime, however, it is no longer expected to improve
appreciably over the remainder of the year. Owing to the negative impact
on production, the BMW Group now anticipates a slight year-on-year
decline in Automotive segment deliveries over the full twelve-month
period.
The BMW Group also expects higher expenses for raw materials and
energy prices in the second half of the year, particularly due to reduced
gas supplies, with a corresponding negative impact on earnings in the
form of further rising costs of material and manufacturing.
High inflation and rising interest rates worldwide are making conditions
for consumers less favourable and are likely to influence consumer
spending behaviour in the coming months. As a consequence, the currently above-average order backlog – particularly in Europe – is expected
to normalise.
The outlook does not factor in the following:
— A significant further tightening of sanctions on Russia and/or countermeasures by Russia
— An interruption of gas supplies from Russia, leading to supply restrictions to the production facilities of the BMW Group and its suppliers
— An escalation of the conflict outside Ukraine
— Further significant and lengthy pandemic-related lockdowns
Uncertainties have continued to grow during the year, making it extremely difficult to accurately forecast outcomes for the twelve-month
period as a whole.
Overall assessment by Group management
As previously outlined in the BMW Group Report 2021, the full consolidation of BMW Brilliance on the one hand and production interruptions
due to the war in Ukraine on the other have been key factors in determining the outlook for the financial year 2022*. The following summarised
analysis therefore only covers the main factors taken into account in the
Outlook.
The full consolidation of BMW Brilliance will result in a significant increase in reported Group profit before tax in the forecast period, even
after taking into account the negative impact of production schedule
adjustments and interruptions and the resulting decrease in Automotive
segment deliveries.
The increased stake in BMW Brilliance and the full consolidation of that
entity means that the total number of BMW Group employees will rise
significantly.
* ↗ See BMW Group Report 2021, page 126 et seq.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
26 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Outlook, Risk and Opportunity Management
The share of women in management functions within the BMW Group
is expected to rise slightly, irrespective of the Group’s increased stake
in BMW Brilliance.
Automotive segment deliveries fell in the first half of the year due to the
various restricting factors described above, particularly the semiconductor shortage and logistics-related issues. As the situation is not
currently expected to improve, the BMW Group now expects the number
of BMW, MINI and Rolls-Royce brand vehicles delivered to customers
in 2022 as a whole to be slightly lower year on year.
Carbon emissions generated by the BMW Group’s EU new vehicle fleet
are still forecast to decrease slightly, driven primarily by the significantly
growing share of electrified automobiles in total deliveries.
Carbon emissions per vehicle produced* are expected to decrease
slightly.
The Automotive segment’s EBIT margin is still predicted to come in
within a range between 7 and 9%. The expected drop in delivery figures
is likely to be partially offset by positive pricing effects and the continued
favourable situation on pre-owned vehicle markets. RoCE for the
Automotive segment is still forecast to finish within a range between
14 and 19 %.
* Carbon emissions per vehicle produced already take
BMW Brilliance into account.
Motorcycles segment deliveries are expected to increase slightly. The
segment EBIT margin is predicted to finish within a range between
8 and 10 % and the segment RoCE within a range of 19 and 24 %.
The ongoing favourable situation on pre-owned vehicle markets has
contributed to higher earnings in the Financial Services segment, a
trend that is expected to remain stable in the short term. Based on
current assessments, the Financial Services segment has recognised
appropriate levels of provisions/allowances to cover residual value and
credit risks. Accordingly, segment RoE is now expected to finish within
a range of between 17 and 20 %.
The BMW Group’s actual business performance may deviate from current expectations in light of the numerous uncertainties highlighted
above and/or the risks and opportunities identified in conjunction with
the Group’s risk and opportunity management system.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
27 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Outlook, Risk and Opportunity Management
BMW Group – key performance indicators
Based on current knowledge and assessments, the key performance
indicators of the BMW Group for the full year 2022 are forecast as
follows:
2021 2022 Outlook
reported adjusted originally reported updated
GROUP
Profit before tax € million 16,060 – Significant increase –
Workforce at year-end 118,909 – Significant increase –
Share of women in management positions in the BMW Group % 18.8 – Slight increase –
AUTOMOTIVE SEGMENT
Deliveries 1 units 2,521,514 –
in line with last
year’s level Slight decrease
Share of electrified vehicles in deliveries % 13.0 – Significant increase –
CO2 emissions EU new vehicle fleet 2 g / km 115.9 – Slight decrease –
CO2 emissions per vehicle produced 3 tons 0.33 – Slight decrease –
EBIT margin % 10.3 – between 7 and 9 –
Return on capital employed (RoCE) 4 % 59.9 24.0 between 14 and 19 –
MOTORCYCLES SEGMENT
Deliveries units 194,261 – Slight increase –
EBIT margin % 8.3 – between 8 and 10 –
Return on capital employed (RoCE) 4 % 35.9 21.9 between 19 and 24 –
FINANCIAL SERVICES SEGMENT
Return on equity (RoE) % 22.6 – between 14 and 17 between 17 and 20
1 Deliveries including the BMW Brilliance Automotive Ltd.,
Shenyang, joint venture (2021: 651,236 units).
2 EU-27 countries including Norway and Iceland; with effect
from 2021, values are calculated on a converted basis in
line with WLTP (Worldwide Harmonised Light Vehicles Test
Procedure).
3 Efficiency ratio calculated on the basis of Scope 1 and
Scope 2 carbon emissions (i.e. a market-based method
according to GHG Protocol Scope 2 guidance, but excluding climate-changing gases other than carbon dioxide)
from vehicle production (BMW Group manufacturing sites
including the BMW Brilliance Automotive Ltd. joint venture
and motorcycles, but excluding partner plants and contract
manufacturers), as well as BMW Group non-manufacturing
sites (e.g. research centres, sales centres, offices) divided
by the number of vehicles produced (BMW Group manufacturing sites including the BMW Brilliance Automotive
Ltd. joint venture and partner plants, but excluding
contract manufacturers).
4 New calculation methodology from 2022. ↗ See chapter
“Performance management”, BMW Group Report 2021.
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
28 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Outlook, Risk and Opportunity Management
R I S K A N D O P P O R T U N I T Y
MANAGEMENT
As a globally operating enterprise, the BMW Group is exposed to a broad
range of risks, which can also give rise to opportunities. The BMW Group
makes use of these opportunities as a prerequisite for achieving growth,
profitability, greater efficiency and sustainability. The Group’s corporate
success is based on systematically leveraging opportunities as they
present themselves. Any changes in the BMW Group’s general risk profile are continuously analysed and factored into current and long-term
forecasts as deemed necessary.
A continuation of the war in Ukraine or any further escalations could
lead to additional sanctions and corresponding countermeasures.
Reduced gas supplies from Russia to many European countries could
affect energy supplies to manufacturing sites of the BMW Group and its
suppliers, potentially resulting in production interruptions. Price increases for bought-in raw materials or vehicle components, for example
as a consequence of the application of price adjustment clauses, could
lead to higher costs.
International semiconductor and commodity markets remain highly
volatile. Further price increases and / or supply bottlenecks as well as
potential claims from suppliers could have a negative impact on the
BMW Group’s earnings. The further course of the coronavirus pandemic
is also subject to a high degree of uncertainty, with potential adverse
repercussions for sales volumes and global supply chains.
High inflation represents an additional exposure for business, in that
falling levels of real income could dampen demand for durable goods
such as automobiles. A broad-based downturn in demand, in conjunction
with interest rate hikes by central banks, could lead to a recession in the
global economy. In that event, negative consequences (credit risk, residual value risk, rising refinancing costs) could also arise for the Financial
Services segment. The first signs that these developments are affecting
consumer behaviour can already be observed in many regions.
For several years, lawsuits have been filed against BMW Bank GmbH
(BMW Bank) by consumers claiming the withdrawal from loan and leasing contracts. Since the beginning of 2020, several references for a
preliminary ruling have been filed with the European Court of Justice
(ECJ). On September 9, 2021, the ECJ decided on the abstract requirements to be complied with by creditors in consumer loan contracts. The
principal risk assessment in this regard for the BMW Group Report 2021
is still valid. The following developments result from the ongoing legal
proceedings: In the second quarter of 2022, the Federal Court of Justice
(BGH) stated in a ruling that the provision on the default interest rate
contained in the particular BMW Bank loan contract at issue in the proceedings did not meet the requirements set out by the ECJ. Therefore,
there is a legal risk that borrowers might withdraw from the affected
consumer loan contracts. For the period of use of the vehicle, customers
are obliged to pay compensation in case of withdrawal from their loan
contract. In September 2022, the ECJ will conduct hearings in further
requests for a preliminary ruling on consumer mileage leasing and consumer loans. This may result in further withdrawal risks. The possible
financial impact of these proceedings cannot be definitively assessed
at this stage.
Further information on risks and opportunities as well as on the methods
employed to manage them is also available in the “Risk and opportunity management” chapter of the BMW Group Report 2021 (page 129
et seq.).
11 General economic environment
12 Group overview
16 Automotive segment
22 Financial services segment
24 Other entities segment and eliminations
25 Outlook
29 Risk and opportunity management
29 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
3I N T E R I M G R O U P
F I N A N C I A L
STATEMENTS
31 Income Statement for Group and Segments
for the period from 1 January to 30 June
33 Condensed Statement of Comprehensive Income
for Group for the period from 1 January to 30 June
34 Income Statement For Group And Segments
for the period from 1 April to 30 June
36 Condensed Statement of Comprehensive Income
for Group for the period from 1 April to 30 June
37 Balance Sheet for Group and Segments at 30 June 2022
41 Condensed Cash Flow Statement for Group and Segments
for the Period from 1 January to 30 June
42 Statement of Changes in Group Equity
44 Notes to the Group Financial Statements
72 Responsibility Statement by the Company’s Legal Representatives
73 Review Report
30 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Income Statement for Group and Segments for the period from 1 January to 30 June
INCOME STATEMENT FOR GROUP AND SEGMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE
Group Automotive 1 Motorcycles 1
in € million Note 2022 2021 2022 2021 2022 2021
Revenues 06 65,912 55,360 56,741 47,745 1,663 1,621
Cost of sales – 54,399 – 44,109 – 48,093 – 39,060 – 1,300 – 1,224
Gross profit 11,513 11,251 8,648 8,685 363 397
Selling and administrative expenses – 4,712 2 – 4,123 2 – 3,893 – 3,377 – 131 – 114
Other operating income 07 739 1,307 595 1,269 4 1
Other operating expenses 07 – 723 – 405 – 520 – 388 – 1 –
Profit / loss before financial result 6,817 8,030 4,830 6,189 235 284
Result from equity accounted investments 137 975 137 975 – –
Interest and similar income 08 170 59 242 113 2 –
Interest and similar expenses 08 102 – 95 11 – 160 – –
Other financial result 09 8,930 767 7,726 409 – –
Financial result 9,339 1,706 8,116 1,337 2 –
Profit / loss before tax 16,156 9,736 12,946 7,526 237 284
Income taxes 10 – 2,924 – 2,113 – 2,341 – 1,630 – 43 – 62
Net profit / loss 13,232 7,623 10,605 5,896 194 222
Attributable to minority interest 251 43 226 5 – –
Attributable to shareholders of BMW AG 12,981 7,580 10,379 5,891 194 222
Basic earnings per share of common stock in € 19.63 11.49
Basic earnings per share of preferred stock in € 19.64 11.50
Dilutive effects – –
Diluted earnings per share of common stock in € 19.63 11.49
Diluted earnings per share of preferred stock in € 19.64 11.50
1 Additional information: not subject to external auditor
review
2 Includes administrative expenses amounting
to € 2,062 million (2021: € 1,821 million).
31 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Income Statement for Group and Segments for the period from 1 January to 30 June
INCOME STATEMENT FOR GROUP AND SEGMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE
Financial Services * Other Entities * Eliminations *
in € million Note 2022 2021 2022 2021 2022 2021
Revenues 06 17,251 16,106 3 2 – 9,746 – 10,114
Cost of sales – 14,678 – 13,572 – – 9,672 9,747
Gross profit 2,573 2,534 3 2 – 74 – 367
Selling and administrative expenses – 685 – 621 – 19 – 29 16 18
Other operating income 07 104 15 11 24 25 – 2
Other operating expenses 07 – 44 – 33 – 169 – 2 11 18
Profit / loss before financial result 1,948 1,895 – 174 – 5 – 22 – 333
Result from equity accounted investments – – – – – –
Interest and similar income 08 1 1 571 447 – 646 – 502
Interest and similar expenses 08 – 3 – 2 – 604 – 493 698 560
Other financial result 09 35 42 1,169 316 – –
Financial result 33 41 1,136 270 52 58
Profit / loss before tax 1,981 1,936 962 265 30 – 275
Income taxes 10 – 361 – 423 – 174 – 58 – 5 60
Net profit / loss 1,620 1,513 788 207 25 – 215
Attributable to minority interest 25 38 – – – –
Attributable to shareholders of BMW AG 1,595 1,475 788 207 25 – 215
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 €
* Additional information: not subject to external auditor
review
32 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Condensed Statement of Comprehensive Income for Group for the period from 1 January to 30 June
C O N D E N S E D S TAT E M E N T O F
COMPREHENSIVE INCOME FOR GROUP
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE
in € million 2022 2021
Net profit / loss 13,232 7,623
Remeasurement of the net liability for defined benefit pension plans 781 839
Items not expected to be reclassified to the income statement in the future 781 839
Marketable securities (at fair value through other comprehensive income) – 122 – 18
Derivative financial instruments – 289 119
Costs of hedging – 399 41
Other comprehensive income from equity accounted investments – 83 55
Currency translation foreign operations 2,168 662
Items that can be reclassified to the income statement in the future 1,275 859
Other comprehensive income for the period after tax 2,056 1,698
Total comprehensive income 15,288 9,321
Total comprehensive income attributable to minority interest 309 43
Total comprehensive income attributable to shareholders of BMW AG 14,979 9,278
33 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Income Statement for Group and Segments for the period from 1 April to 30 June
I N C O M E S TAT E M E N T F O R G R O U P
AND SEGMENTS
FOR THE PERIOD FROM 1 APRIL TO 30 JUNE 1
Group Automotive Motorcycles
in € million Note 2022 2021 2022 2021 2022 2021
Revenues 06 34,770 28,582 30,015 24,983 864 868
Cost of sales – 28,780 – 22,521 – 25,464 – 20,344 – 669 – 659
Gross profit 5,990 6,061 4,551 4,639 195 209
Selling and administrative expenses – 2,493 2 – 2,049 2 – 2,065 – 1,659 – 71 – 61
Other operating income 07 404 1,137 282 1,111 4 1
Other operating expenses 07 – 475 – 144 – 305 – 138 – 1 –
Profit / loss before financial result 3,426 5,005 2,463 3,953 127 149
Result from equity accounted investments – 123 546 – 123 546 – –
Interest and similar income 08 89 35 139 63 1 –
Interest and similar expenses 08 138 – 40 88 – 74 – –
Other financial result 09 399 433 – 41 262 – –
Financial result 503 974 63 797 1 –
Profit / loss before tax 3,929 5,979 2,526 4,750 128 149
Income taxes 10 – 882 – 1,189 – 625 – 947 – 23 – 29
Net profit / loss 3,047 4,790 1,901 3,803 105 120
Attributable to minority interest 207 21 194 2 – –
Attributable to shareholders of BMW AG 2,840 4,769 1,707 3,801 105 120
Basic earnings per share of common stock in € 4.30 7.23
Basic earnings per share of preferred stock in € 4.31 7.24
Dilutive effects – –
Diluted earnings per share of common stock in € 4.30 7.23
Diluted earnings per share of preferred stock in € 4.31 7.24
1 Additional information: not subject to external auditor
review
2 Includes administrative expenses amounting
to € 1,069 million (2021: € 890 million).
34 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Income Statement for Group and Segments for the period from 1 April to 30 June
I N C O M E S TAT E M E N T F O R G R O U P
AND SEGMENTS
FOR THE PERIOD FROM 1 APRIL TO 30 JUNE *
Financial Services Other Entities Eliminations
in € million Note 2022 2021 2022 2021 2022 2021
Revenues 06 8,765 8,200 2 1 – 4,876 – 5,470
Cost of sales – 7,489 – 6,750 – – 4,842 5,232
Gross profit 1,276 1,450 2 1 – 34 – 238
Selling and administrative expenses – 358 – 321 – 12 – 19 13 11
Other operating income 07 95 12 9 19 14 – 6
Other operating expenses 07 – 31 – 13 – 141 – 3 7
Profit / loss before financial result 982 1,128 – 142 1 – 4 – 226
Result from equity accounted investments – – – – – –
Interest and similar income 08 1 1 311 213 – 363 – 242
Interest and similar expenses 08 – 2 – 1 – 339 – 240 391 275
Other financial result 09 – 7 21 447 150 – –
Financial result – 8 21 419 123 28 33
Profit / loss before tax 974 1,149 277 124 24 – 193
Income taxes 10 – 178 – 228 – 52 – 25 – 4 40
Net profit / loss 796 921 225 99 20 – 153
Attributable to minority interest 13 19 – – – –
Attributable to shareholders of BMW AG 783 902 225 99 20 – 153
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 € * Additional information: not subject to external auditor
review
35 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Condensed Statement of Comprehensive Income for Group for the period from 1 April to 30 June
C O N D E N S E D S TAT E M E N T O F
C O M P R E H E N S I V E I N C O M E F O R G R O U P
FOR THE PERIOD FROM 1 APRIL TO 30 JUNE*
in € million 2022 2021
Net profit / loss 3,047 4,790
Remeasurement of the net liability for defined benefit pension plans 660 423
Items not expected to be reclassified to the income statement in the future 660 423
Marketable securities (at fair value through other comprehensive income) – 65 – 3
Derivative financial instruments – 855 236
Costs of hedging – 328 – 11
Other comprehensive income from equity accounted investments – 6
Currency translation foreign operations 648 – 95
Items that can be reclassified to the income statement in the future – 600 133
Other comprehensive income for the period after tax 60 556
Total comprehensive income 3,107 5,346
Total comprehensive income attributable to minority interest 158 21
Total comprehensive income attributable to shareholders of BMW AG 2,949 5,325
* Additional information: not subject to external auditor
review
36 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Balance Sheet for Group and Segments at 30 June 2022
B A L A N C E S H E E T F O R G R O U P A N D S E G M E N T S
AT 30 JUNE 2022
Group Automotive * Motorcycles *
in € million Note 30.6.2022 31.12.2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
ASSETS
Intangible assets 11 22,359 12,980 21,827 12,438 159 167
Property, plant and equipment 12 30,565 22,390 30,071 21,885 428 438
Leased products 44,892 44,700 – – – –
Investments accounted for using the equity method 652 5,112 652 5,112 – –
Other investments 1,319 1,241 7,669 6,061 – –
Receivables from sales financing 52,662 51,712 – – – –
Financial assets 13 2,190 1,715 1,010 577 – –
Deferred tax 2,199 2,202 3,604 3,418 – –
Other assets 1,398 1,302 2,207 2,057 29 30
Non-current assets 158,236 143,354 67,040 51,548 616 635
Inventories 20,638 15,928 19,646 14,868 655 656
Trade receivables 3,681 2,261 3,396 2,076 148 91
Receivables from sales financing 35,569 35,705 – – – –
Financial assets 13 6,033 5,800 4,881 4,925 – –
Current tax 14 933 1,529 415 300 – –
Other assets 8,003 8,941 30,741 35,592 3 3
Cash and cash equivalents 22,241 16,009 18,355 12,009 27 9
Current assets 97,098 86,173 77,434 69,770 833 759
Total assets 255,334 229,527 144,474 121,318 1,449 1,394
* Additional information: not subject to external auditor
review
37 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Balance Sheet for Group and Segments at 30 June 2022
B A L A N C E S H E E T F O R G R O U P A N D S E G M E N T S
AT 30 JUNE 2022
Financial Services * Other Entities * Eliminations *
in € million Note 30.6.2022 31.12.2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
ASSETS
Intangible assets 11 372 374 1 1 – –
Property, plant and equipment 12 66 67 – – – –
Leased products 52,157 52,017 – – – 7,265 – 7,317
Investments accounted for using the equity method – – – – – –
Other investments 21 21 23,007 6,899 – 29,378 – 11,740
Receivables from sales financing 52,776 51,808 – – – 114 – 96
Financial assets 13 348 159 950 997 – 118 – 18
Deferred tax 634 618 62 39 – 2,101 – 1,873
Other assets 2,706 2,649 40,736 38,882 – 44,280 – 42,316
Non-current assets 109,080 107,713 64,756 46,818 – 83,256 – 63,360
Inventories 337 404 – – – –
Trade receivables 137 94 – – – –
Receivables from sales financing 35,569 35,705 – – – –
Financial assets 13 499 542 655 520 – 2 – 187
Current tax 14 92 83 426 1,146 – –
Other assets 5,076 5,425 54,392 56,589 – 82,209 – 88,668
Cash and cash equivalents 3,607 3,471 252 520 – –
Current assets 45,317 45,724 55,725 58,775 – 82,211 – 88,855
Total assets 154,397 153,437 120,481 105,593 – 165,467 – 152,215
* Additional information: not subject to external auditor
review
38 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Balance Sheet for Group and Segments at 30 June 2022
Group Automotive * Motorcycles *
in € million Note 30.6.2022 31.12.2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
EQUITY AND LIABILITIES
Subscribed capital 15 661 661
Capital reserves 2,325 2,325
Revenue reserves 15 80,482 71,705
Accumulated other equity 601 – 325
Equity attributable to shareholders of BMW AG 15 84,069 74,366
Minority interest 5,263 766
Equity 89,332 75,132 63,126 50,296 – –
Pension provisions 310 1,247 162 1,073 11 31
Other provisions 8,606 7,206 8,414 6,944 98 110
Deferred tax 3,452 1,458 3,734 1,515 – –
Financial liabilities 17 61,892 62,342 3,057 2,247 2 2
Other liabilities 18 6,599 5,676 7,615 6,739 597 524
Non-current provisions and liabilities 80,859 77,929 22,982 18,518 708 667
Other provisions 7,166 6,748 6,647 6,175 119 109
Current tax 16 1,669 921 963 700 – –
Financial liabilities 17 44,076 41,121 2,680 1,462 – –
Trade payables 13,310 10,932 12,030 9,650 386 378
Other liabilities 18 18,922 16,744 36,046 34,517 236 240
Current provisions and liabilities 85,143 76,466 58,366 52,504 741 727
Total equity and liabilities 255,334 229,527 144,474 121,318 1,449 1,394
B A L A N C E S H E E T F O R G R O U P A N D S E G M E N T S
AT 30 JUNE 2022
* Additional information: not subject to external auditor
review
39 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Balance Sheet for Group and Segments at 30 June 2022
Financial Services * Other Entities * Eliminations *
in € million Note 30.6.2022 31.12.2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
EQUITY AND LIABILITIES
Subscribed capital 15
Capital reserves
Revenue reserves 15
Accumulated other equity
Equity attributable to shareholders of BMW AG 15
Minority interest
Equity 17,989 17,324 43,792 25,264 – 35,575 – 17,752
Pension provisions 35 35 102 108 – –
Other provisions 94 152 – – – –
Deferred tax 3,372 3,426 141 88 – 3,795 – 3,571
Financial liabilities 17 18,962 18,909 39,989 41,202 – 118 – 18
Other liabilities 18 41,811 40,003 615 475 – 44,039 – 42,065
Non-current provisions and liabilities 64,274 62,525 40,847 41,873 – 47,952 – 45,654
Other provisions 396 460 4 4 – –
Current tax 16 557 140 149 81 – –
Financial liabilities 17 27,403 24,428 13,995 15,418 – 2 – 187
Trade payables 885 894 9 10 – –
Other liabilities 18 42,893 47,666 21,685 22,943 – 81,938 – 88,622
Current provisions and liabilities 72,134 73,588 35,842 38,456 – 81,940 – 88,809
Total equity and liabilities 154,397 153,437 120,481 105,593 – 165,467 – 152,215
B A L A N C E S H E E T F O R G R O U P A N D S E G M E N T S
AT 30 JUNE 2022
* Additional information: not subject to external auditor
review
40 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Condensed Cash Flow Statement for Group and Segments for the period from 1 January to 30 June
C O N D E N S E D C A S H F L O W S TAT E M E N T
FOR GROUP AND SEGMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE
Group Automotive 1 Financial Services 1
in € million 2022 2021 2022 2021 2022 2021
Profit / loss before tax 16,156 9,736 12,946 7,526 1,981 1,936
Depreciation and amortisation of tangible, intangible and investment assets 3,932 3,098 3,867 3,019 15 19
Change in provisions 542 – 1,327 751 – 1,440 – 131 – 8
Change in leased products and receivables from sales financing 2,792 – 762 – – 3,070 – 1,020
Changes in working capital – 586 728 – 555 260 19 331
Other – 11,722 2 – 2,868 – 11,332 2 – 2,114 445 501
Cash inflow / outflow from operating activities 11,114 8,605 5,677 7,251 5,399 1,759
Total investment in intangible assets and property, plant and equipment – 2,998 – 2,360 – 2,955 – 2,294 – 1 – 2
Expenditure for acquisitions, net of cash acquired 3,587 – 5,011 – – –
Net investment in marketable securities and investment funds 64 – 34 – 36 – 11 24 – 28
Other 40 – 52 37 – 55 10 2
Cash inflow / outflow from investing activities 693 – 2,446 2,057 – 2,360 33 – 28
Cash inflow / outflow from financing activities – 5,979 – 5,357 – 1,657 – 3,182 – 5,407 – 2,005
Effect of exchange rate on cash and cash equivalents 404 – 87 269 – 48 111 – 24
Change in cash and cash equivalents 6,232 715 6,346 1,661 136 – 298
Cash and cash equivalents as at 1 January 16,009 13,537 12,009 9,522 3,471 2,863
1 Cash and cash equivalents as at 30 June 22,241 14,252 18,355 11,183 3,607 2,565 Additional information: not subject to external auditor
review
2 Includes the elimination of the non-cash revaluation
effect of the investment in BMW Brilliance amounting
to € 7,649 million.
41 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Statement of Changes in Group Equity
S TAT E M E N T O F C H A N G E S
I N G R O U P E Q U I T Y
in € million Note Subscribed capital Capital reserves Revenue reserves
1 January 2022 15 661 2,325 71,705
Net profit – – 12,981
Other comprehensive income for the period after tax – – 781
Comprehensive income at 30 June 2022 – – 13,762
Dividend payments – – – 3,827
Other changes – – – 1,158
30 June 2022 15 661 2,325 80,482
in € million Note Subscribed capital Capital reserves Revenue reserves
1 January 2021 15 660 2,199 59,550
Net profit – – 7,580
Other comprehensive income for the period after tax – – 839
Comprehensive income at 30 June 2021 – – 8,419
Dividend payments – – – 1,257
Other changes – – 30
30 June 2021 15 660 2,199 66,742
42 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Statement of Changes in Group Equity
S TAT E M E N T O F C H A N G E S
I N G R O U P E Q U I T Y
Accumulated other equity
in € million Note
Translation
differences
Marketable
Securities
Derivative
financial
instruments
Costs of
hedging
Equity
attributable to
shareholders
of BMW AG
Minority
interest Total
1 January 2022 15 – 438 2 362 – 251 74,366 766 75,132
Net profit – – – – 12,981 251 13,232
Other comprehensive income for the period
after tax 1,612 – 122 – 15 – 258 1,998 58 2,056
Comprehensive income at 30 June 2022 1,612 – 122 – 15 – 258 14,979 309 15,288
Dividend payments – – – – – 3,827 – 11 – 3,838
Other changes – – – 291 – – 1,449 4,199 2,750
30 June 2022 15 1,174 – 120 56 – 509 84,069 5,263 89,332
Accumulated other equity
in € million Note
Translation
differences
Marketable
Securities
Derivative
financial
instruments
Costs of
hedging
Equity
attributable to
shareholders
of BMW AG
Minority
interest Total
1 January 2021 15 – 2,156 34 868 – 264 60,891 629 61,520
Net profit – – – – 7,580 43 7,623
Other comprehensive income for the period
after tax 842 – 18 – 14 49 1,698 – 1,698
Comprehensive income at 30 June 2021 842 – 18 – 14 49 9,278 43 9,321
Dividend payments – – – – – 1,257 – 23 – 1,280
Other changes – – – 83 – – 53 29 – 24
30 June 2021 15 – 1,314 16 771 – 215 68,859 678 69,537
43 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
A C C O U N T I N G P R I N C I P L E S
AND POLICIES
01 Basis of preparation
The consolidated financial statements of Bayerische Motoren Werke
Aktiengesellschaft (BMW Group Financial Statements or Group Financial
Statements) at 31 December 2021 were drawn up in accordance with
International Financial Reporting Standards (IFRS), as endorsed by the
European Union (EU), and the supplementary requirements of § 315e (1)
of the German Commercial Code (HGB). The Interim Group Financial
Statements (Interim Report) at 30 June 2022, which have been prepared
in accordance with International Accounting Standard (IAS) 34 (Interim
Financial Reporting), have been drawn up using, in all material respects,
the same accounting methods as those utilised in the 2021 Group
Financial Statements. The BMW Group applies the option of publishing
condensed group financial statements. All Interpretations issued by the
IFRS Interpretations Committee which are mandatory at 30 June 2022
have been applied. The Interim Report also complies with German
Accounting Standard No. 16 (GAS 16) – Interim Financial Reporting –
issued by the German Accounting Standards Committee e. V. (GASC).
The reporting period for these Interim Group Financial Statements in
accordance with IAS 34 is the six-month period from 1 January 2022
to 30 June 2022. In addition, the income statement and statement of
comprehensive income as well as the notes disclosures for the period
from 1 April to 30 June 2022 are presented for informational purposes,
but were not within the scope of the external auditor’s review.
Further information regarding the Group’s accounting principles and
policies is contained in the notes to the Group Financial Statements
within the BMW Group Report 2021.
The Group currency is the euro. All amounts are disclosed in millions
of euros (€ million) unless stated otherwise. Detailed information on
foreign currency translation is provided in ↗ note [04] to the Group
Financial Statements within the BMW Group Report 2021.
Key figures presented in the report have been rounded in accordance
with standard commercial practise. In certain cases, this may mean that
values do not add up exactly to the stated total and that percentages
cannot be derived from the values shown.
The income statement for the BMW Group and segments is presented
using the cost of sales method.
In order to provide a better insight into the results of operations, financial position and net assets of the BMW Group, and going beyond the
requirements of IFRS 8 (Operating Segments), the Group Financial
Statements also include an income statement and a balance sheet for
the Automotive, Motorcycles, Financial Services and Other Entities segments. The Group Cash Flow Statement is supplemented by a statement
of cash flows for the Automotive and Financial Services segments. Intersegment transactions relate primarily to internal sales of products, the
provision of funds for Group companies and the related interest. These
items are eliminated on consolidation. More detailed information regarding the allocation of activities of the BMW Group to segments and
a description of the segments is provided in the explanatory notes to
segment information in the BMW Group Report 2021.
NOTES TO THE GROUP FINANCIAL STATEMENTS 44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
44 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The Interim Group Financial Statements at 30 June 2022 have been
reviewed by the Group auditors, PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, Munich office.
02 Group reporting entity
The BMW Group Financial Statements to 30 June 2022 include BMW AG
and all material subsidiaries over which BMW AG – either directly or
indirectly – exercises control. This also includes 58 structured entities,
consisting of asset-backed financing arrangements and special purpose
funds.
The following changes took place in the Group reporting entity during
the first six months of 2022:
Germany Foreign Total
Included at 31 December 2021 20 185 205
Included for the first time in 2022 – 10 10
No longer included in 2022 – 10 10
Included at 30 June 2022 20 185 205
BMW Brilliance Automotive Ltd. (BMW Brilliance) has been fully consolidated for the first time with effect from February 11, 2022. Detailed
information is provided in ↗ note [03].
YOUR NOW Holding GmbH, a joint venture of the BMW Group and
Mercedes-Benz Group AG, entered into an agreement with the Stellantis
Group on 29 April 2022 relating to the sale of SHARE NOW GmbH. The
sale was initially subject to the approval of the relevant authorities.
Following receipt of regulatory approval, the sale was completed on
15 July 2022.
IONITY Holding GmbH & Co. KG signed a contract with GRP III HPC Lux
Sàrl (Blackrock) on 12 November 2021 for the provision of financing
amounting to € 500 million to expand the charging network. The existing shareholders are also investing an additional € 200 million in the
business. The contributions are to be made in several tranches. Following receipt of regulatory approval, the transaction was completed on
28 April 2022. The impact of the two transactions is not material.
All other changes to the Group reporting entity are not significant in
terms of the results of operations, financial position and net assets of
the Group.
03 Increased shareholding in BMW Brilliance Automotive Ltd.
On 11 February 2022, via the Group company BMW Holding B.V., the
BMW Group increased its shareholding in the BMW Brilliance joint
venture from 50 % to 75 % with the acquisition of a further 25 % of
BMW Brilliance’s shares. On 11 October 2018, the BMW Group signed
an agreement with its joint venture partner, a wholly owned subsidiary
of Brilliance China Automotive Holdings Ltd. (CBA), to acquire these
shares. The agreement was approved at the CBA shareholders’ meeting on 18 January 2019.
The previous joint venture requirement in China came to an end with
effect from 1 January 2022. The new joint venture agreement came into
force and the formal transfer of shares was completed on 11 February
2022, following the issuance of a new business license. Since that date,
the BMW Group has held a 75% majority of the voting rights, which now
gives it control over BMW Brilliance, which has therefore been fully consolidated as a subsidiary in the BMW Group Financial Statements with
effect from 11 February 2022. The contractual term of the joint venture,
which previously ran until 2028, has been extended to 2040. BMW
Brilliance manufactures BMW brand models primarily for the Chinese
market at its two vehicle production plants as well as petrol engines
and high-voltage batteries at a separate facility.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
45 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The strategic objectives of the acquisition are to further bolster the
BMW Group’s long-term collaboration with a partner in China, expand
production capacities at the existing locations in Shenyang, and systematically increase the local production of further models, including
New Energy Vehicles.
The consideration paid for the additional 25 % stake totalled CNY 27,941
million. Converted and including hedging effects, the purchase price
amounted to € 3,735 million, which was settled entirely in cash. Cash
and cash equivalents acquired totalled € 8,746 million. Overall, therefore, the cash flow statement for the Automotive segment shows a cash
inflow from acquisitions (part of the cash inflow / outflow from investing
activities) amounting to € 5,011 million. After deducting intragroup cash
and cash equivalents, the cash flow statement for the BMW Group
shows a cash inflow from acquisitions (part of the cash inflow / outflow
from investing activities) amounting to € 3,587 million. Intragroup cash
and cash equivalents relate to cash deposits made by BMW Brilliance
with the Group’s financial services companies in China.
As the BMW Group already held 50 % of the shares in BMW Brilliance
prior to the acquisition, the transaction constitutes a business combination achieved in stages (step acquisition).
In this context, the Group’s 50% shareholding in BMW Brilliance at the
acquisition date has been measured at its fair value, which has been
provisionally calculated at € 12,341 million. The remeasurement gain of
€ 7,649 million has been recognised on the line item “Result on investments” within the other financial result.
The assets acquired and liabilities assumed in conjunction with the
business combination are required to be identified and measured at
their fair value. The fair values of the main groups of assets and liabilities are shown in the following table:
in € million
Reacquired rights 7,781
Dealership relationships 520
Other intangible assets 48
Property, plant and equipment 6,437
Right-of-use assets from leases 635
Inventories 4,282
Trade receivables 1,069
Other assets 2,930
Cash and cash equivalents 8,746
Provisions – 990
Trade payables – 3,945
Other liabilities – 6,243
Deferred taxes – 1,430
Net Identified assets acquired 19,839
Reacquired rights and dealership relationships identified in conjunction
with the business combination have been recognised as intangible assets. Reacquired rights have been recognised as a separate intangible
asset if they were contractually granted to Brilliance before control was
obtained by the BMW Group. More specifically, they relate to rights
granted by the BMW Group to the BMW Brilliance joint venture prior to
the acquisition allowing the latter to use specified vehicle production
technologies and trademark rights.
These acquired intangible assets have a useful life of 6 to 7 years. Other
fair value adjustments have also been recognised, mainly for property,
plant and equipment and inventories.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
46 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The remaining difference of € 1,197 million between the consideration
transferred for 25 % of the shares and the previously held shares measured at fair value on the one hand and the Group’s share of identifiable
net assets acquired on the other has been recognised as goodwill.
This essentially represents synergy benefits, given that the fair value of
the reacquired rights already takes potential excess returns into account.
The acquisition did not give rise to any goodwill that is deductible
for tax purposes. Goodwill has been allocated in full to the new
BMW Brilliance cash-generating unit within the Automotive segment.
The gross amount of acquired receivables corresponds to their fair value.
The remaining non-controlling interest of 25% held by other shareholders is measured on the basis of their proportionate share of identifiable
net assets. Equity attributable to minority interests therefore amounted
to € 4,960 million.
More detailed valuations were performed during the second quarter for
the purposes of the purchase price allocation, whereby the adjustments
arising compared with the first quarter were not material. The purchase
price allocation is still being finalised, so that further adjustments may
arise over the course of the remainder of the year.
Since the date of first-time consolidation, revenues and profit after tax
amounting to € 10,940 million and € 818 million respectively relate to
BMW Brilliance. The figure reported for profit after tax also includes
depreciation and amortisation arising on the purchase price allocation
as well as intragroup eliminations attributable to BMW Brilliance. It does
not, however, include the elimination of intragroup profits arising at other
companies.
If BMW Brilliance had been fully included in the consolidated financial
statements with effect from 1 January 2022, Group revenues and profit
after tax for the six-month period would have amounted to € 68,823
million and € 13,399 million respectively.
Following the business combination, minority interests in the equity
capital of BMW Automotive Finance (China) Co. Ltd. and Herald International Financial Leasing Co., Ltd. changed to 10.5 % in each case
(previously 21%). As the two entities were already included in the Group
Financial Statements as subsidiaries, the change has been recognised
through Group equity without any impact on profit or loss.
04 Financial reporting rules
a No significant new Standards or revised Standards were applied by
the BMW Group for the first time in the first six months of the current
financial year.
b Other financial reporting standards issued by the IASB and not
yet applied are not expected to have any significant impact on the
BMW Group Financial Statements. With regard to the first-time application of IFRS 17, please see the comments in the BMW Group Financial
Statements for the year ended 31 December 2021.
05 Other significant events during the first half of the financial
year 2022
Impairment tests
An indication of the potential impairment of tangible and intangible
assets was identified in the quarter ended 30 June 2022, in particular
due to the fact that the Group’s market capitalisation is currently lower
than its total equity value. As a result, impairment tests were performed
for the cash-generating units Automotive excluding BMW Brilliance,
BMW Brilliance, Motorcycles and Financial Services. Following the
acquisition of additional shares, BMW Brilliance is now treated as a
separate cash-generating unit. The previous Automotive cash-generating
unit remains unchanged.
A detailed description of impairment test procedures is provided in
↗ note [06] to the BMW Group Report 2021. Due to the proximity of the
reporting date to the acquisition date, the fair value less costs to sell
has been determined directly for the BMW Brilliance cash-generating unit.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
47 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The resulting measurement differs from the value in use only with
respect to the length of the detailed forecasting period and the consideration of the costs of disposal.
The following discount rates were applied to measure the relevant
values:
in % 2022 2021
Automotive excluding BMW Brilliance 11.1 10.1
BMW Brilliance 10.7 –
Motorcycles 11.1 10.1
Financial Services 14.0 13.0
No impairment loss was recognised for any of the cash-generating units.
Sensitivity analyses showed no need to recognise an impairment loss
even in the event of a significant deterioration in the measurement
parameters. The sensitivity analysis for the BMW Brilliance cashgenerating unit showed that an impairment loss would not require to
be recognised even if the cost of capital were to increase by 6.5 percentage points and cash flows during the detailed forecasting period
for the next few years were to deteriorate by 50 %.
Russia-Ukraine war
Major uncertainties remained at the end of the first half of 2022 with
respect to the ongoing war in Ukraine. The sanctions imposed and the
countermeasures taken in this context significantly restrict economic
activities with Russia and also have an impact on the Russian companies of the BMW Group.
In connection with the Russia-Ukraine war, allowances for expected
credit losses on receivables from sales financing have been increased
in the second quarter to take account of the negative impact on the
retail customer business, to the extent not covered by the BMW Group’s
standard loss provisioning models (post-model adjustments).
The restrictions currently in place for payments mean that transfers of
liquid funds from Russia are limited. Developments in this area will be
reviewed regularly by the BMW Group in subsequent quarters. In total,
the Russian companies hold around 4 % of the BMW Group’s cash and
cash equivalents.
Current restrictions on transfers from Russia means that the credit
default risk vis-à-vis Russian companies is elevated. For this reason,
valuation allowances have been recognised on receivables from companies based in Russia.
For a certain number of vehicles sold on the Russian market, warranty
arrangements give rise to a repurchase obligation. In accordance with
IFRS 15, this obligation has been recognised as a reduction of revenue
in the period ended 30 June 2022.
For inventory valuation purposes, write-downs were recognised on
vehicles and parts destined for the Russian market.
The Russia-Ukraine war also had an impact on foreign exchange markets, causing heightened volatility of the Russian rouble (RUB) during
the first half of the year. A closing rate of RUB 56,592 has been applied
at 30 June 2022. The BMW Group has been able to execute transactions
at this rate. Compared to the exchange rate at 31 December 2021 (RUB
85,2347), the value of assets has appreciated. If the previous year’s
exchange rate had been applied at 30 June 2022, total assets would
have been 0.3 % lower.
Overall, the effects described above as a consequence of the war in
Ukraine have so far had a negative impact on the BMW Group’s earnings in the mid-three-digit million range.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
48 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
NOTES TO THE INCOME STATEMENT
06 Revenues
Revenues by activity comprise the following:
in € million 2nd quarter 2022 * 2nd quarter 2021
1 January to
30 June 2022
1 January to
30 June 2021
Sales of products and related goods 25,874 20,099 48,311 38,697
Sales of products previously leased to customers 3,825 3,494 7,440 6,743
Income from lease instalments 2,996 2,828 5,949 5,646
Interest income on loan financing and finance leases 995 898 1,966 1,796
Revenues from service contracts, telematics and roadside assistance 771 658 1,489 1,307
Other income 309 605 757 1,171
Revenues 34,770 28,582 65,912 55,360
Revenues recognised from contracts with customers in accordance with
IFRS 15 totalled € 57,898 million (2021: € 47,827 million).
An analysis of revenues by segment is shown in the segment information in ↗ note [24]. Revenues from the sale of products and related
goods are generated primarily in the Automotive segment and, to a
lesser extent, in the Motorcycles segment. Revenues from the sales of
products previously leased to customers, income from lease instalments
and interest income on loan financing are allocated to the Financial
Services segment. Other income relates mainly to the Automotive segment and the Financial Services segment.
Interest income on loan financing and finance leases includes interest
calculated on the basis of the effective interest method totalling
€ 1,780 million (2021: € 1,657 million). This interest income is not reported separately in the income statement as it is not significant compared
to total Group revenues.
07 Other operating income and expenses
These line items principally include exchange gains and losses, gains
and losses on the disposal of assets, impairment losses, as well as
income / expense from the reversal of and allocation to provisions, including provisions for ongoing legal disputes, legal disputes that have been
concluded and other legal risks.
In 2019, a provision of approximately € 1.4 billion was recognised in connection with EU Commission anti-trust proceedings which resulted in an
increase in other operating expenses in the financial year 2019 (see also
↗ note [10] to the BMW Group Financial Statements for the financial year
2019). In this antitrust investigation, the EU Commission had alleged that
five German car manufacturers colluded with the aim of restricting competition for innovation with regards to certain exhaust treatment systems
for petrol- and diesel-driven passenger vehicles. The investigation was
solely concerned with possible infringements of competition law. There
were no allegations that the BMW Group conducted a deliberate and
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
49 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
unlawful manipulation of the emissions control system. On the basis of
BMW AG’s detailed submissions, the EU Commission dropped most
of its charges. The proceedings were settled on 8 July 2021, and a fine
amounting to approximately € 373 million was issued. In the opinion of
the EU Commission, the carmakers concerned – within the framework
of what was actually legitimate technical cooperation in the development
of SCR technology (SCR: selective catalytic reduction) – created an undue
degree of transparency with regard to the sizes of their AdBlue tanks, the
range that can be achieved with a full tank and the assumed average
AdBlue consumption, thereby violating EU competition law. The amount
of the provision exceeding the fine was reversed with income statement
effect in 2021. The fine was paid in July 2021, thereby concluding the
EU Commission’s proceedings.
08 Net interest result
in € million 2nd quarter 2022 * 2nd quarter 2021
1 January to
30 June 2022
1 January to
30 June 2021
Other interest and similar income 89 35 170 59
thereof from subsidiaries 5 3 11 5
Interest and similar income 89 35 170 59
Net interest impact relating to other non-current provisions 207 11 218 13
Net interest expense on the net defined benefit liability for pension plans – 2 – 5 – 5 – 11
Other interest and similar expenses – 67 – 46 – 111 – 97
thereof to subsidiaries – – – –
Interest and similar expenses 138 – 40 102 – 95
Net interest result 227 – 5 272 – 36
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
50 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Interest expense from unwinding the discounting of other non-current
provisions on the one hand and interest income from adjusting the
discount rate on the other are netted and, as in previous years, reported
as a net interest effect within interest expense.
In the six-month period under report, steepening yield curves had a
positive impact on the discount unwinding result.
09 Other financial result
Other financial result developed as follows:
in € million 2nd quarter 2022 * 2nd quarter 2021
1 January to
30 June 2022
1 January to
30 June 2021
Result on investments 3 322 7,784 509
Sundry other financial result 396 111 1,146 258
Other financial result 399 433 8,930 767
In the current financial year, the main item affecting the result from investments was the remeasurement of the investment in BMW Brilliance
(see ↗ note [03]). In the previous year, the main driver of the result
from investments was the positive impact of revaluations of investments
included in the iVentures fund.
The improvement in the sundry other financial result was mainly due
to changes in the fair value of stand-alone derivatives.
* Additional information: not subject to external auditor
review
10 Income taxes
The effective tax rate for the six-month period to 30 June 2022 was
18.1 % (2021: 21.7 %) and corresponds to the best estimate of the
weighted average annual income tax rate for the full year. This tax rate
has been applied to the pre-tax profit for the period under report.
The decrease in the effective tax rate was mainly attributable to the
effect of the tax-exempt gain on the remeasurement of the investment
in BMW Brilliance (see ↗ note [03]).
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
51 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
E X P L A N AT O R Y N O T E S
TO THE BALANCE SHEET
11 Intangible assets
Intangible assets mainly comprise capitalised development costs on
vehicle, module and architecture projects as well as rights reacquired
in conjunction with a business acquisition. Also included are subsidies
for tool costs, licences, purchased development projects, emission
allowances, software and purchased customer bases.
in € million 30.6.2022 31.12.2021
Development costs 11,387 11,573
Goodwill 1,627 380
thereof allocated to the Automotive
(excluding BMW Brilliance) CGU 33 33
thereof allocated to the BMW Brilliance CGU 1,247 –
thereof allocated to the Financial Services CGU 347 347
Other intangible assets 9,345 1,027
Intangible assets 22,359 12,980
Intangible assets developed during the first six months of the year as
follows:
in € million 2022 2021
Development costs
Additions 855 734
Amortisation 1,041 897
Other intangible assets
Additions 162 99
Additions arising on business acquisitions 8,349 –
Amortisation 568 100
Further information on additions arising on business acquisitions is
provided in ↗ note [03].
12 Property, plant and equipment (including right-of-use assets
from leases)
Property, plant and equipment developed during the first six months as
follows:
in € million 2022 2021
Additions 2,767 1,610
Additions arising on business acquisitions 7,072 –
Depreciation 2,323 2,108
Disposals 30 76
Purchase commitments for property, plant and equipment (excluding
right-of-use assets from leases) totalled € 5,819 million (31 December 2021: € 3,350 million).
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
52 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The ongoing transformation towards electric mobility and the associated short- and medium-term impact on the product portfolio require a
regular review of the useful lives of items of property, plant and equipment subject to systematic depreciation. Some useful lives were revised
during the first half of the year and extended accordingly.
13 Financial assets
Financial assets comprise:
in € million 30.6.2022 31.12.2021
Marketable securities and investment funds 3,967 4,243
Derivative instruments 3,505 2,998
Loans to third parties 55 58
Other 696 216
Financial assets 8,223 7,515
14 Income tax assets
Current income taxes amounting to € 933 million (31 December 2021:
€ 1,529 million) include € 70 million (31 December 2021: € 19 million)
that is expected to be settled after more than twelve months. Claims
may be settled earlier than this depending on the timing of the underlying proceedings.
15 Equity
The Group Statement of Changes in Equity is shown on ↗ page 42 et seq.
Subscribed capital
The number of shares of common stock issued by BMW AG at 30 June
2022 was 601,995,196 shares, each with a par value of € 1, unchanged
from 31 December 2021. The number of shares of preferred stock at that
date was 59,404,304 shares, each with a par value of € 1, unchanged
from 31 December 2021. Unlike the common stock, no voting rights are
attached to the preferred stock.
Subscribed capital therefore stood at € 661 million at the end of the
reporting period, unchanged from 31 December 2021. All of the Company’s stock is issued to bearer. Preferred stock bears an additional
dividend of € 0.02 per share.
The shareholders passed a resolution at the 2019 Annual General Meeting authorising the Board of Management, with the approval of the
Supervisory Board, to increase the Company’s share capital by up to
€ 5 million prior to 15 May 2024 by the issuance of new shares of
non-voting preferred stock, carrying the same rights as existing nonvoting preferred stock, in return for cash contributions. So far, 3,277,400
shares of preferred stock have been issued on the basis of this authorisation. The number of authorised shares and the amount of authorised
capital at the level of BMW AG are therefore 1.7 million shares and
€ 1.7 million respectively. The BMW Group did not hold any treasury
shares at 30 June 2022.
Revenue reserves
In the second quarter 2022, BMW AG paid the dividend for the financial
year 2021 amounting to € 3,491 million for common stock and € 336
million for preferred stock.
BMW AG has resolved a share buy-back programme on the basis of
the authorisation granted by the Annual General Meeting held on
11 May 2022. The programme has a volume of up to € 2.0 billion (total
purchase price excluding incidental acquisition costs), comprising up to
€ 1.85 billion for shares of common stock and up to € 0.15 billion for
shares of preferred stock.
The programme started in July 2022 and is scheduled to be completed
by 31 December 2023 at the latest.
Other changes to revenue reserves resulted primarily in conjunction
with the change in the amount of investments in the financial services
companies in China which had already been fully consolidated prior to
the acquisition of BMW Brilliance (see ↗ note [03]).
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
53 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
16 Income tax liabilities
Current income taxes amounting to € 1,669 million (31 December 2021:
€ 921 million) include liabilities of € 26 million (31 December 2021: € 44
million), which are expected to be settled after more than twelve months.
Liabilities may be settled earlier than this depending on the timing of
the underlying proceedings.
Current income tax liabilities comprise € 555 million (31 December 2021:
€ 270 million) for taxes payable and € 1,114 million (31 December 2021:
€ 651 million) for tax provisions.
17 Financial liabilities
Financial liabilities of the BMW Group comprise the following:
in € million 30.6.2022 31.12.2021
Bonds 48,251 51,498
Asset-backed financing transactions 22,141 19,362
Liabilities from customer deposits (banking) 16,512 16,702
Liabilities to banks 8,488 9,079
Derivative instruments 5,503 1,875
Lease liabilities 2,593 2,420
Commercial paper 1,462 1,374
Other 1,018 1,153
Financial liabilities 105,968 103,463
In the first half of the year, bonds totalling approximately € 4.5 billion
were issued, comprising a euro benchmark bond, a US dollar-denominated 144A bond and a Panda bond in China. In addition, ABS transactions were also issued or prolonged in the USA, Germany, the UK,
China and Canada with a total financing volume of approximately
€ 7.8 billion.
18 Other liabilities
Other liabilities include contract liabilities relating to contracts with customers amounting to € 7,408 million (31 December 2021: € 5,955 million). The liabilities relate mainly to service and repair work as well as
telematics services and roadside assistance agreed to be part of the
sale of a vehicle (in some cases multi-component arrangements).
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
54 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
OTHER DISCLOSURES
19 Research and development expenses
Research and development expenses were as follows:
in € million 2nd quarter 2022 * 2nd quarter 2021
1 January to
30 June 2022
1 January to
30 June 2021
Research and development expenditure 1,551 1,287 2,942 2,574
Amortisation 523 460 1,041 897
New expenditure for capitalised development costs – 514 – 443 – 855 – 734
Research and development expenses 1,560 1,304 3,128 2,737
20 Contingent liabilities
The following contingent liabilities existed at the balance sheet date:
in € million 30.6.2022 31.12.2021
Litigation 88 131
Investment subsidies 65 56
Guarantees 36 77
Other 1,375 1,202
Contingent liabilities 1,564 1,466
Other contingent liabilities comprise mainly risks relating to taxes and
customs.
The BMW Group determines its best estimate of contingent liabilities
on the basis of the information available at the date of preparation of
the Group Financial Statements. This assessment may change over time
and is adjusted regularly on the basis of new information and circumstances. A part of the risks is covered by insurance.
The EU Commission’s antitrust proceedings (see ↗ note [07]) were
settled on 8 July 2021. In relation to these allegations, numerous class
action lawsuits have been brought in the USA and Canada as well as
several private lawsuits in South Korea. In the USA, the customer class
actions were withdrawn and the dealer class action was dismissed. The
class action lawsuits in Canada and the private lawsuits in South Korea
remain at an early stage. Further civil lawsuits based on the allegations
are possible going forward. In addition, the Chinese State Administration
for Market Regulation opened respective antitrust proceedings against
BMW AG in March 2019. Possible risks for the BMW Group in connection
with the antitrust proceedings cannot be currently foreseen, neither in
terms of their outcome nor the amounts involved. Further disclosures
pursuant to IAS 37.86 cannot be provided at present.
Regulatory authorities have ordered the BMW Group to recall various
vehicle models in conjunction with airbags supplied by the Takata group
of companies. Provision for the costs involved has been recognised
within warranty provisions. In addition to the risks already covered by
warranty provisions, it cannot be ruled out that further vehicles of the
BMW Group will be affected by future recall actions. Further disclosures
pursuant to IAS 37.86 cannot be provided at present.
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
55 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
On 22 January 2020, the U.S. Securities and Exchange Commission
(SEC) opened an investigation into possible violations of U.S. securities
laws by the BMW Group relating to disclosures regarding the BMW Group’s
unit sales of new vehicles. This matter was settled with the SEC, without
admitting or denying the allegations, and the BMW Group consented
to the entry of an Order finding violations of the U. S. Securities Act and
agreed to pay a penalty of $18 million. Certain BMW Group entities and
their officers are defendants in private securities litigation following
the SEC Order. Plaintiffs voluntarily dismissed the individual defendants without prejudice. The remaining parties have entered into an
agreement in principle to settle the action for a settlement amount of
US $ 1.75 million, subject to court approval. Further disclosures pursuant
to IAS 37.86 cannot be provided at present.
Several BMW Group entities are facing a number of diesel emissionsrelated court claims in England. The claimants intend to apply for a
group litigation order. Given that the BMW Group entities have not yet
received the particulars of claim, the probability, amount or timing of
any liability is not practical to be estimated at present.
In March 2022, the European Commission (EC) conducted inspections
at the premises of automobile manufacturers and associations located
in several member states. In parallel, the EC sent out formal requests
for information to several automobile manufacturers, including BMW AG.
The inspections and requests for information concern possible collusion
in relation to the collection, treatment and recovery of end-of-life vehicles and light commercial vehicles. The inspections were conducted in
coordination with the UK Competition and Markets Authority, which has
initiated formal proceedings in respect of the UK market. Appropriate
risk provisions were recognised in the second quarter in connection
with these investigations. Due to the early stage of the investigations,
further risks for the BMW Group in connection with the proceedings of
the two authorities cannot be quantified at present. Further disclosures
pursuant to IAS 37.86 cannot be provided at present.
Following a request for legal assistance from the Korean authorities in
2020 in connection with leaks in exhaust gas recirculation modules in
BMW Group vehicles, the Munich public prosecutor’s office initiated an
investigation and searched BMW Group offices in Munich and Steyr in
June 2022. The ongoing investigations by the authorities have never
referred to the allegation of the use of illegal defeat devices. This was
also not the subject of the search conducted in June 2022. Potential
risks for the BMW Group cannot be quantified at the present time. Further disclosures pursuant to IAS 37.86 cannot be provided at present.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
56 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
21 Financial instruments
Information is provided in ↗ note [06] and ↗ [39] to the Group Financial
Statements within the BMW Group Report 2021 regarding the recognition and measurement of financial instruments.
Disclosures relating to financial instruments measured at amortised cost
The following table shows the fair values and carrying amounts of
financial assets and liabilities that are measured at amortised cost
and whose carrying amounts differ from their fair value.
30.6.2022 31.12.2021
in € million Fair value Carrying amount Fair value Carrying amount
Receivables from sales financing – credit financing 67,306 65,524 67,158 64,795
Receivables from sales financings – finance and operating leases 24,185 22,707 24,675 22,622
Financial assets – marketable securities and investment funds – – 20 20
Financial liabilities
Bonds 49,540 48,251 53,022 51,498
Asset backed financing transactions 22,031 22,141 19,602 19,362
Liabilities from customer deposits (banking) 16,222 16,512 16,732 16,702
Liabilities to banks 8,600 8,488 9,177 9,079
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
57 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The fair values are generally determined using the discounted cash flow
method, taking into account the relevant risk of default. For the purposes of fair value measurement using the discounted cash flow
method, expected future cash flows are discounted on the basis of
up-to-date interest curves observable on the market.
The fair values of receivables from sales financing are measured using
the discounted cash flow method, taking into account customer-specific credit risk. In view of the fact that these allowances are calculated in
part on the basis of internal information, receivables from sales financing are allocated to Level 3 in the level hierarchy in accordance with
IFRS 13. The fair values of the financial assets shown in the table relate
to financial institutions and are also measured using the discounted
cash flow method, taking into account the risk of default. Since the
entities concerned are financial institutions whose default risk is observable on the market, the fair values of the relevant financial assets
are therefore required to be allocated to Level 2. All of the financial
institutions concerned have excellent credit ratings and the default risk
is therefore low.
In the case of financial liabilities, own credit risk is taken into account
based on credit default swaps available on the market, so that the fair
values of these items are also allocated to Level 2.
For all other financial instruments not listed here that are measured at
amortised cost, the carrying amount corresponds to the fair value. For
this reason, they are not presented separately.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
58 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Disclosures relating to financial instruments measured at fair value
The carrying amounts of financial instruments measured at fair value
are allocated to the measurement levels pursuant to IFRS 13 as follows:
30.6.2022 31.12.2021
Level hierarchy in accordance with IFRS 13 Level hierarchy in accordance with IFRS 13
in € million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Marketable securities, investment funds and collateral receivables 3,684 283 – 3,675 548 –
Other investments 145 – 851 223 – 724
Cash equivalents 6 – – 26 – –
Loans to third parties – – 13 – – 23
Derivative instruments (assets)
Interest rate risk – 1,599 – – 1,373 –
Currency risk – 555 – – 466 –
Raw material market price risk – 1,349 – – 1,092 67
Other risks – – 2 – – –
Derivative instruments (liabilities)
Interest rate risk – 2,355 – – 729 –
Currency risk – 2,806 – – 1,045 –
Raw material market price risk – 342 – – 101 –
As a general rule, any transfers between fair-value hierarchy levels are
made at the end of the relevant reporting period. At 30 June 2022,
derivatives used to hedge raw material market price risks with a fair
value of € 71 million were reclassified from Level 3 to Level 2. For these
selected derivatives, sufficient observable market data are now available for valuation purposes due to greatly improved market maturity.
As in previous reporting periods, the valuation methodology applied is
in line with the general valuation principles for derivatives used within
the treasury management system of the BMW Group.
In the previous financial year, equity instruments amounting to € 49 million were reclassified from Level 3 to Level 1, due to the fact that quoted
market prices became available for the instruments concerned for the
first time.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
59 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Financial instruments classified to Level 3 and measured at fair value
comprise the following:
in € million
Fair value
30.6.2022
Fair value
31.12.2021
Unquoted equity instruments 851 724
Convertible bonds 13 23
Options on unquoted equity instruments 2 –
Derivative instruments – 67
Financial instruments allocated to Level 3 relate mainly to investments
in a private-equity fund. The valuation of unlisted equity instruments is
determined primarily using the market-based approach. In particular,
the financing rounds that take place within the private equity sector –
usually on a regular basis at intervals of approximately 12 to 24 months –
represent a significant input factor for these purposes. In addition, the
investment advisor provides the external fund manager with relevant,
investment-specific information on an ongoing basis (at least quarterly).
The latter subsequently assesses the underlying individual companies
in accordance with the guidelines for International Private Equity and
Venture Capital Valuations (IPEV).
As part of the process of analysing valuations, the external fund manager reviews the investment-specific milestones, including an analysis
of financial, technical and liquidity-specific performance indicators.
Based on this analysis, it is considered whether the price of the most
recent financing round is acceptable as a reasonable market valuation,
in particular for early-stage or growth-phase investments. Key performance indicators used for the purpose of milestone analysis are highly
dependent on the business model underlying the investment; typical
technical key performance indicators relate to licenses and patents held,
the stage of technology development such as evidence of feasibility and
prototypes, market entries, customer and user growth and appointments
to key management positions. Key financial performance indicators
used are revenues, EBITDA and the corresponding growth rate and / or
development of specific contribution margins. Key liquidity-specific performance indicators are cash on hand, cash burn rates and prospects
for future financing rounds.
Since the pricing of equity investments held after financing rounds is
considered to be the key input factor for their valuation, increases or
decreases in valuation arising in this context are recognised on the
same basis with income statement effect.
In addition, equity instruments that are held outside the private equity
fund are measured using the income approach. This involves discounting
cash flows on the basis of current business cases using the weighted
average cost of capital to determine the fair value of the financial instrument. Changes in fair values determined in connection with adjustments to significant input factors are not material for the BMW Group.
The convertible bonds that have been classified to Level 3 are primarily used as instruments in advance of future financing rounds relating
to private equity investments. Valuations are therefore performed in
accordance with the International Private Equity and Venture Capital
Valuation (IPEV) guidelines. Mandatory conversions are usually structured in such a way that the number of shares to be received depends
on the future share price. Due to the generally short maturities, the
instruments are subject to only insignificant fluctuations in value. Irrespective of this fact, impairment tests are performed at regular intervals.
The exercise price for share options in such companies is generally low,
verging towards zero. Consequently, financing rounds have a direct
impact on the fair value of the options. In this respect, they are valued
and their impact to sensitivity accounted for in a similar way to the
unquoted equity instruments described above.
Due to the low level of market maturity, it was not always possible in
the past to obtain all the data required to value derivative instruments
employed as hedges of raw materials price risks. For this reason, data
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
60 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
were obtained by means of regular bank and trader inquiries in order to
model the forward curves required for valuation purposes. The changes
in fair values determined for these forward curves in the case of a shift
of + / – 10 % were not material for the BMW Group.
The balance sheet carrying amount of Level 3 financial instruments
developed as follows:
in € million
Unquoted equity
instruments Convertible bonds
Options on
unquoted equity
instruments
Derivative
instruments
Financial
instruments
Level 3
1 January 2022 724 23 – 67 814
Additions 40 – – – 40
Disposals – 19 – 10 – – 5 – 34
Gains (+) / losses (–) recognised in accumulated other equity – – – 7 7
Gains (+) / losses (–) recognised in the income statement 56 – 1 2 2 59
Currency translation differences 50 1 – – 51
Level transfer – – – – 71 – 71
30 June 2022 851 13 2 – 866
in € million
Unquoted equity
instruments Convertible bonds
Options on
unquoted equity
instruments
Derivative
instruments
Financial
instruments
Level 3
1 January 2021 397 22 3 – 5 417
Additions 76 24 – – 100
Disposals – 220 – 30 – – 4 – 254
Gains (+) / losses (–) recognised in accumulated other equity – – – 75 75
Gains (+) / losses (–) recognised in the income statement 488 5 – 3 1 491
Currency translation differences 32 2 – – 34
Level transfer – 49 – – – – 49
31 December 2021 724 23 – 67 814
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
61 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Gains and losses recognised in the income statement are reported
within the line item “Other financial result”. Of the gains and losses
recorded in the financial year 2022 to date, € 57 million (2021: € 352
million) are unrealised.
22 Related party relationships
The following individuals and entities are related parties in accordance
with IAS 24:
— Stefan Quandt and Susanne Klatten, as well as companies controlled by them
— The Board of Management and the Supervisory Board of the
BMW Group
— Associated companies, joint ventures, non-consolidated subsidiaries, BMW Trust e. V. and BMW Foundation Herbert Quandt
Transactions of the Group companies with related parties were carried
out, without exception, in the normal course of business of each of the
parties concerned and conducted at market conditions, i.e. conditions
that are also granted to other third parties.
During the year under report, members of the Board of Management
and the Supervisory Board concluded vehicle purchase contracts and
related service contracts as well as vehicle rental, vehicle leasing and
vehicle financing contracts with BMW Group entities on market conditions.
Stefan Quandt, Germany, is a shareholder and Deputy Chairman of
the Supervisory Board of BMW AG. He is also the sole shareholder
and Chairman of the Supervisory Boards of DELTON Health AG,
Bad Homburg v.d.H., and DELTON Technology SE, Bad Homburg v.d.H.,
as well as the sole shareholder of DELTON Logistics Sàrl, Grevenmacher,
which via its subsidiaries, performed logistic-related services for the
BMW Group during first six months of 2022. In addition, the DELTON
companies held by Stefan Quandt acquired vehicles from the
BMW Group by way of leasing.
Stefan Quandt, Germany, is also the indirect majority shareholder of
SOLARWATT GmbH, Dresden. Cooperation arrangements are in place
between BMW Group and SOLARWATT GmbH, Dresden, within the
field of electric mobility. The focus of this collaboration is on the provision of complete photovoltaic solutions for rooftop systems and carports
to BMW i customers. In addition, SOLARWATT GmbH purchases battery
cells and related components for home battery storage applications as
part of a supply project. In addition to the deliveries of goods described
above, SOLARWATT GmbH, Dresden, also aquired vehicles from the
BMW Group by way of leasing during the first half of 2022.
Susanne Klatten, Germany, is a shareholder and member of the Supervisory Board of BMW AG and also a shareholder and Deputy Chairwoman of the Supervisory Board of ALTANA AG, Wesel. In the first half
of 2022, ALTANA AG, Wesel, acquired vehicles from the BMW Group,
mainly by way of leasing.
Susanne Klatten, Germany, is also the sole shareholder and Chairwoman of the Supervisory Board of UnternehmerTUM GmbH, Garching.
In the first half of 2022, the BMW Group bought in services from
UnternehmerTUM GmbH, Garching, mainly in the form of consultancy
and workshop services.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
62 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Seen from the perspective of BMW Group entities, the volume of significant transactions with the above-mentioned entities was as follows:
Supplies and services performed Supplies and services received Receivables Payables
in € thousand
1 January to
30 June 2022
1 January to
30 June 2021
1 January to
30 June 2022
1 January to
30 June 2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
DELTON Health AG (formerly DELTON AG) 950 916 – – 13 – – –
DELTON Logistics Sàrl 395 504 9,870 9,067 70 65 5,216 3,362
SOLARWATT GmbH 7,717 2,425 11 – 1,057 1,369 6 –
ALTANA AG 856 973 – – 187 315 – 49
UnternehmerTUM GmbH – – 317 193 – – 197 337
Supplies and services performed Supplies and services received Receivables Payables
in € thousand
2nd quarter
2022 *
2nd quarter
2021
2nd quarter
2022 *
2nd quarter
2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
DELTON Health AG (formerly DELTON AG) 504 472 – – 13 – – –
DELTON Logistics Sàrl 225 231 5,251 4,978 70 65 5,216 3,362
SOLARWATT GmbH 2,892 1,056 – – 1,057 1,369 6 –
ALTANA AG 376 479 – – 187 315 – 49
UnternehmerTUM GmbH – – 242 80 – – 197 337
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
63 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
As already described in detail in ↗ note [03], BMW Brilliance has been
fully consolidated as a subsidiary in the BMW Group Financial Statements with effect from February 11, 2022. The following table shows the
transactions of BMW Brilliance with the Group companies up to the date
of first-time consolidation:
Supplies and services performed Supplies and services received Receivables Payables
in € million
1 January to
10 February
2022
1 January to
30 June 2021
1 January to
10 February
2022
1 January to
30 June 2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
BMW Brilliance Automotive Ltd. 1,330 5,703 106 441 – 2,158 – 2,345
Supplies and services performed Supplies and services received Receivables Payables
in € million
2nd quarter
2022 *
2nd quarter
2021
2nd quarter
2022 *
2nd quarter
2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
BMW Brilliance Automotive Ltd. – 2,955 – 280 – 2,158 – 2,345
Group companies mostly sell vehicle components to BMW Brilliance for
further processing. Supplies and services received relate principally to
vehicles and services.
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
64 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
In total, the following amounts of goods and services were supplied to
or received from other joint ventures and associated companies:
Supplies and services performed Supplies and services received Receivables Payables
in € million
1 January to
30 June 2022
1 January to
30 June 2021
1 January to
30 June 2022
1 January to
30 June 2021 30.6.2022 31.12.2021 1 30.6.2022 31.12.2021 1
Other joint ventures and
associated companies 10 13 30 31 8 4 16 18
Supplies and services performed Supplies and services received Receivables Payables
in € million
2nd quarter
2022 2
2nd quarter
2021
2nd quarter
2022 2
2nd quarter
2021 30.6.2022 31.12.2021 1 30.6.2022 31.12.2021 1
Other joint ventures and
associated companies 7 4 15 16 8 4 16 18
The main transactions with non-consolidated companies include
receivables from BMW Manufacturing Hungary Kft. In addition, impairment allowances were recognised in full on receivables from a
non-consolidated company.
BMW Trust e. V., Munich, administers assets on a trustee basis to secure
obligations relating to pensions in Germany and is therefore a related
party of the BMW Group in accordance with IAS 24. This entity has no
assets of its own. It did not have any income or expenses during the
period under report. BMW AG bears expenses on a minor scale and
renders services on behalf of BMW Trust e. V., Munich.
The BMW Foundation Herbert Quandt, Munich, is an independent corporate foundation and due to the BMW Group’s significant influence,
qualifies as a related party according to IAS 24. In the first six months
of 2022, the BMW Group made donations amounting to € 5.8 million
(2021: € 5.8 million) to the BMW Foundation Herbert Quandt. No other
significant transactions arose.
23 Events after the end of the reporting period
No events have occurred after the balance sheet date with a particular
significance for the results of operations, financial position or net assets
of the BMW Group.
1 Year-end amount restated
2 Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
65 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
SEGMENT INFORMATION
24 Explanatory notes to segment information
Information on the definition of reportable segments and management
performance system is provided in the BMW Group Report 2021. Due
to the various methodologies applied, reported segment results and
asset values are based on different performance measures. Information
is provided in ↗ note [45] to the Group Financial Statements within the
BMW Group Report 2021.
The performance management system used for the Automotive and
Motorcycles segments was revised during the current financial year with
the introduction of a simplified definition for capital employed, with a
view to making the performance indicator more comprehensible and
transparent. Capital employed is now calculated as the sum of intangible assets, property, plant and equipment and net working capital, the
latter comprising inventories and trade receivables less trade payables.
Segment assets as of 31 December 2021 have been adjusted in accordance with the new methodology.
Segment information is prepared as a general rule in conformity with
the accounting policies adopted for preparing and presenting the Interim Group Financial Statements. Exceptions to this general principle
include the treatment of inter-segment warranties, the earnings impact
of which is allocated to the Automotive and Financial Services segments
on the basis used internally to manage the business. In addition, intersegment repurchase agreements between the Automotive and Financial Services segments pursuant to IFRS 15, impairment allowances on
intragroup receivables and changes in the value of consolidated other
investments pursuant to IFRS 9 are also excluded. Intercompany leases
are not accounted for in accordance with IFRS 16 for internal management and reporting purposes, and instead are treated within in the
segments concerned as operating leases. Inter-segment receivables
and payables, provisions, income, expenses and profits are eliminated
upon consolidation. Inter-segment revenues are based on market prices.
Centralised cost components are included in the respective segments,
without resulting in cash flows.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
66 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Segment information by operating segment is as follows:
Automotive Motorcycles Financial Services
in € million 2022 2021 2022 2021 2022 2021
External revenues 47,646 38,363 1,668 1,630 16,598 15,367
Inter-segment revenues 9,095 9,382 – 5 – 9 653 739
Total revenues 56,741 47,745 1,663 1,621 17,251 16,106
Segment result 4,830 6,189 235 284 1,981 1,936
Result from equity accounted investments 137 975 – – – –
Capital expenditure on non-current assets 3,735 2,375 42 65 10,554 13,293
Depreciation and amortisation on non-current assets 3,867 3,026 50 61 5,073 5,507
Other Entities
Reconciliation
to Group figures Group
in € million 2022 2021 2022 2021 2022 2021
External revenues – – – – 65,912 55,360
Inter-segment revenues 3 2 – 9,746 – 10,114 – –
Total revenues 3 2 – 9,746 – 10,114 65,912 55,360
Segment result 962 265 8,148 1,062 16,156 9,736
Result from equity accounted investments – – – – 137 975
Capital expenditure on non-current assets – – – 2,663 – 3,382 11,668 12,351
Depreciation and amortisation on non-current assets – – – 2,272 – 2,726 6,718 5,868
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
67 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Segment information by operating segment for the second quarter* is
as follows:
Automotive Motorcycles Financial Services
in € million
2nd quarter
2022
2nd quarter
2021
2nd quarter
2022
2nd quarter
2021
2nd quarter
2022
2nd quarter
2021
External revenues 25,467 19,886 868 874 8,435 7,822
Inter-segment revenues 4,548 5,097 – 4 – 6 330 378
Total revenues 30,015 24,983 864 868 8,765 8,200
Segment result 2,463 3,953 127 149 974 1,149
Result from equity accounted investments – 123 546 – – – –
Capital expenditure on non-current assets 2,317 1,373 22 18 5,205 6,607
Depreciation and amortisation on non-current assets 2,115 1,512 21 31 2,450 2,649
Other Entities
Reconciliation
to Group figures Group
in € million
2nd quarter
2022
2nd quarter
2021
2nd quarter
2022
2nd quarter
2021
2nd quarter
2022
2nd quarter
2021
External revenues – – – – 34,770 28,582
Inter-segment revenues 2 1 – 4,876 – 5,470 – –
Total revenues 2 1 – 4,876 – 5,470 34,770 28,582
Segment result 277 124 88 604 3,929 5,979
Result from equity accounted investments – – – – – 123 546
Capital expenditure on non-current assets – – – 1,301 – 1,861 6,243 6,137
Depreciation and amortisation on non-current assets – – – 1,079 – 1,426 3,507 2,766
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
68 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
Automotive Motorcycles Financial Services
in € million 30.6.2022 31.12.2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
Segment assets 62,910 41,617* 1,004 974* 17,989 17,324
Investments accounted for using the equity method 652 5,112 – – – –
Other Entities
Reconciliation
to Group figures Group
in € million 30.6.2022 31.12.2021 30.6.2022 31.12.2021 30.6.2022 31.12.2021
Segment assets 97,407 97,917 76,024 71,695 255,334 229,527
Investments accounted for using the equity method – – – – 652 5,112
* Adjusted in line with the new performance management
system, see ↗ note [45] in the BMW Group Report 2021.
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
69 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The total of the segment figures can be reconciled to the corresponding
Group figures as follows:
in € million 2nd quarter 2022 * 2nd quarter 2021
1 January to
30 June 2022
1 January to
30 June 2021
Reconciliation of segment result
Total for reportable segments 3,841 5,375 8,008 8,674
Financial result of Automotive segment 63 797 8,116 1,337
Financial result of Motorcycles segment 1 – 2 –
Elimination of inter-segment items 24 – 193 30 – 275
Group profit before tax 3,929 5,979 16,156 9,736
Reconciliation of capital expenditure on non-current assets
Total for reportable segments 7,544 7,998 14,331 15,733
Elimination of inter-segment items – 1,301 – 1,861 – 2,663 – 3,382
Total Group capital expenditure on non-current assets 6,243 6,137 11,668 12,351
Reconciliation of depreciation and amortisation on non-current assets
Total for reportable segments 4,586 4,192 8,990 8,594
Elimination of inter-segment items – 1,079 – 1,426 – 2,272 – 2,726
Total Group depreciation and amortisation on non-current assets 3,507 2,766 6,718 5,868
* Additional information: not subject to external auditor
review
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
70 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Notes to the Group Financial Statements
The total of the segment figures can be reconciled to the corresponding
Group figures as follows:
in € million 30.6.2022 31.12.2021*
Reconciliation of segment assets
Total for reportable segments 179,310 157,832
Financial and other assets – Automotive 69,534 70,051
Trade payables – Automotive 12,030 9,650
Financial and other assets – Motorcycles 59 42
Trade payables – Motorcycles 386 378
Total liabilities – Financial Services 136,408 136,113
Non-operating assets – Other Entities 23,074 7,676
Elimination of inter-segment items – 165,467 – 152,215
Total Group assets 255,334 229,527
* Adjusted in line with the new performance management
system, see ↗ note [45] in the BMW Group Report 2021.
Munich, 26 July 2022
Bayerische Motoren Werke
Aktiengesellschaft
The Board of Management
Oliver Zipse
Ilka Horstmeier Dr.-Ing. Milan Nedeljković
Pieter Nota Dr. Nicolas Peter
Dr.-Ing. Joachim Post Frank Weber
44 Accounting principles and policies
Principles and Policies
49 Notes to the income statement
52 Explanatory notes to the balance
sheet Balance Sheet
55 Other disclosuress
66 Segment information
71 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Responsibility Statement by the Company’s Legal Representatives
“To the best of our knowledge, and in accordance with the applicable
principles for interim financial reporting, the Interim Group Financial
Statements give a true and fair view of the assets, liabilities, financial
position and results of operations of the Group, and the Interim Group
Management Report includes a fair review of the development and
performance of business and position of the Group, together with a
description of the principal opportunities and risks associated with the
expected development of the Group for the remaining months of the
financial year.”
Munich, 26 July 2022
Bayerische Motoren Werke
Aktiengesellschaft
The Board of Management
Oliver Zipse
Ilka Horstmeier Dr.-Ing. Milan Nedeljković
Pieter Nota Dr. Nicolas Peter
Dr.-Ing. Joachim Post Frank Weber
R E S P O N S I B I L I T Y S TAT E M E N T B Y T H E
COMPANY’S LEGAL REPRESENTATIVES
72 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Review Report
To Bayerische Motoren Werke Aktiengesellschaft, München
We have reviewed the condensed consolidated interim financial statements – comprising the income statement, condensed statement of
comprehensive income, balance sheet, condensed cash flow statement,
statement of changes in equity and selected explanatory notes – and
the interim group management report of Bayerische Motoren Werke
Aktiengesellschaft, München, for the period from January 1, 2022, to
June 30, 2022, which are part of the half-year financial report pursuant
to § (Article) 115 WpHG (“Wertpapierhandelsgesetz”: German Securities
Trading Act). The preparation of the condensed consolidated interim
financial statements in accordance with the IFRS applicable to interim
financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is
the responsibility of the parent Company’s Board of Managing Directors.
Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance
with German generally accepted standards for the review of financial
statements promulgated by the Institut der Wirtschaftsprüfer (Institute
of Public Auditors in Germany) (IDW). Those standards require that we
plan and perform the review so that we can preclude through critical
evaluation, with moderate assurance, that the condensed consolidated
interim financial statements have not been prepared, in all material
respects, in accordance with the IFRS applicable to interim financial
reporting as adopted by the EU and that the interim group management
report has not been prepared, in all material respects, in accordance
with the provisions of the German Securities Trading Act applicable to
interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore
does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed
a financial statement audit, we cannot express an audit opinion.
Based on our review, no matters have come to our attention that cause
us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance
with the IFRS applicable to interim financial reporting as adopted by
the EU nor that the interim group management report has not been
prepared, in all material respects, in accordance with the provisions of
the German Securities Trading Act applicable to interim group management reports.
Munich, 2 August 2022
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Petra Justenhoven Michael Popp
Wirtschaftsprüferin Wirtschaftsprüfer
(German Public Auditor) (German Public Auditor)
REVIEW REPORT
73 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
4OTHER INFORMATION
75 Consumption and Carbon Disclosures
76 Contacts
74 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Consumption and Carbon Disclosures
CONSUMPTION AND CARBON DISCLOSURES
Figures according to WLTP Figures according to NEDC
Model
Fuel consumption
in l / 100 km
(combined /
weighted combined)
max / min
CO₂ emissions
in g / km
(combined /
weighted combined)
max / min
Electricity power
consumption
in kWh / 100 km
(combined /
weighted combined)
max / min
Electric range
(combined /
weighted
combined)
Fuel consumption
in l / 100 km
(combined /
weighted combined)
max / min
CO₂ emissions
in g / km
(combined /
weighted combined)
max / min
Electricity power
consumption
in kWh / 100 km
(combined /
weighted combined)
max / min
BMW
BMW i4 eDrive40 – – 19.1 – 16.1 493 – 590 – – –
BMW i4 M50 – – 22.5 – 18.0 416 – 520 – – –
BMW i7 xDrive60* – – 19.6 – 18.4 591 – 625 – – –
BMW iX xDrive40 – – 21.2 – 19.3 394 – 426 – – –
BMW iX xDrive50 – – 21.4 – 19.8 590 – 630 – – –
BMW iX M60 – – 24.5 – 21.9 502 – 561 – – –
BMW iX1 xDrive30* – – 18.4 – 17.3 413 – 438 – – –
BMW iX3 – – 18.9 – 18.5 453 – 461 – – –
MINI
MINI Cooper SE – – 17.6 – 15.2 – – – 16.9 – 14.9
Rolls-Royce
Rolls-Royce Ghost 15.8 – 15.2 359 – 347 – – 15.0 343 –
Rolls-Royce Phantom Series II 16.0 – 15.5 362 – 351 – – 15.1 345 –
Rolls-Royce Phantom
Extended Series II 16.2 – 15.6 365 – 353 – – 15.1 345 –
Rolls-Royce Cullinan 16.5 – 16.1 377 – 368 – – 15.2 348 –
* Values are preliminary.
75 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information
Contacts
CONTACTS
BUSINESS AND FINANCE PRESS
Telephone +49 89 382-2 45 44
+49 89 382-2 4 1 18
Telefax +49 89 382-2 44 18
E-mail [email protected]
INVESTOR RELATIONS
Telephone +49 89 382-2 53 87
Telefax +49 89 382-1 46 61
E-mail [email protected]
THE BMW GROUP ON THE INTERNET
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
↗ www.rolls-roycemotorcars.com
↗ www.bmw-motorrad.com
PUBLISHED BY
Bayerische Motoren Werke
Aktiengesellschaft
80788 Munich
Germany
Telephone +49 89 382-0
76 BMW Group Half-Year Report 2022 BMW Group at a Glance Interim Group Management Report Interim Group Financial Statements Other Information

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