BMW Q1 Statement – Future of BMW Motorrad, BMW, MINI and Rolls-Royce Vehicles

BMW-Logo-2017

QUARTERLY STATEMENT

31 March 2020

 

 BMW GROUP AT A GLANCE
 

Page

 

4

BMW Group in Figures
  2

INTERIM GROUP

  MANAGEMENT REPORT
Page7Report on Economic Position
Page7General Economic Environment
Page8Group Overview
Page10Automotive Segment
Page16Financial Services Segment
Page18Report on Outlook, Risks and Opportunities
Page18Outlook
Page22Risks and Opportunities
  3

INTERIM GROUP

  FINANCIAL STATEMENTS
Page24Income Statement
Page26Balance Sheet
Page28Cash Flow Statement
 

 

 

 

 

 

 

Page

 

 

 

 

 

 

 

31

4

OTHER INFORMATION

Contacts

 

CONTENTS

 

1

 

BMW GROUP AT A GLANCE

 

Page 4  BMW Group in Figures

1

 

 

 

BMW Group at a Glance

BMW GROUP IN FIGURES

 

 

BMW Group                      in Figures

Key performance indicators reported during the year

  • 01

 

 1st quarter 2020 1st quarter 2019 Change in %
 

Group  

        
Profit before tax € million 798 762 4.7
 

Automotive seGment   

        
Deliveries1, 2 units 477,111 600,614 – 20.6
EBIT margin3 % (change in %pts) 1.3 –1.6 2.9
 

motorcycles seGment  

        
Deliveries units 34,774 38,606 – 9.9
EBIT margin3 % (change in %pts) 12.9 15.2 – 2.3

 

1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 87,443 units, 2019: 128,653 units).

3 Profit before financial result as percentage of segment revenues.

 

 

BMW Group at a Glance

 

BMW Group                      in Figures

Further performance figures

  • 02

 

    1st quarter 2020 1st quarter 2019 Change in %
 

Automotive seGment   

        
Deliveries        
BMW 1, 2 units 411,809 515,297 – 20.1
MINI1 units 64,449 84,145 – 23.4
Rolls-Royce1 units 853 1,172 – 27.2
Total1, 2   477,111 600,614 – 20.6
 

Production volume

        
Total3   584,142 672,042 –13.1
 

FinAnciAl services seGment      

        
New contracts with retail customers   449,687 469,624 – 4.2
 

Free cash flow Automotive segment4

  

€ million

  

– 2,218

  

– 559

  

 

Group revenues

  

€ million

  

23,252

  

22,462

  

3.5

Automotive € million 17,989 19,213 – 6.4
Motorcycles € million 557 586 – 4.9
Financial Services € million 7,598 7,146 6.3
Other Entities € million 1 1 
Eliminations € million – 2,893 – 4,484 35.5
 

Group profit / loss before financial result (EBIT)

  

€ million

  

1,375

  

589

  

Automotive € million 229 – 310 
Motorcycles € million 72 89 –19.1
Financial Services € million 542 648 –16.4
Other Entities € million 12 4 
Eliminations € million 520 158 
 

Group profit / loss before tax (EBT)

  

€ million

  

798

  

762

  

4.7

Automotive € million 80 – 27 
Motorcycles € million 72 87 –17.2
Financial Services € million 484 627 –22.8
Other Entities € million – 344 – 58 
Eliminations € million 506 133 
 

Group income taxes

  

€ million

  

– 224

  

– 218

  

2.8

Profit / loss from continuing operations € million 574 544 5.5
Profit / loss from discontinued operations € million  44 
Group net profit € million 574 588 – 2.4
Earnings per share5  0.84 / 0.84 0.85 / 0.85 –1.2 / –1.2
Group pre-tax return on sales6 % (change in %pts) 3.4 3.4 

1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 87,443 units, 2019: 128,653 units).

3 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 95,704 units, 2019: 138,391 units).

4 At the beginning of the financial year 2020, the starting point for determining cash flow was changed to profit before tax; the previous year’s figures have been adjusted accordingly.

5 Common / preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of €0.02 per share of preferred stock are spread over the quarters of the corresponding financial year.

6 Group profit before tax as a percentage of Group revenues.

 

INTERIM GROUP MANAGEMENT REPORT

 

Page 7 Report on Economic Position Page 7 General Economic Environment Page 8 Group Overview

Page 10 Automotive Segment

Page 16 Financial Services Segment

 

Page 18 Report on Outlook, Risks and Opportunities

Page 18 Outlook

Page 22 Risks and Opportunities

2

 

 

Interim Group Management Report

Report on Economic Position

General Economic Environment

REPORT ON ECONOMIC POSITION

Automobile markets severely affected by corona pandemic

 

negative impact on BmW Group’s performance

 

GENERAL ECONOMIC ENVIRONMENT

 

 

International automobile markets

The worldwide spread of coronavirus has left inter- national automobile markets in an extremely weak overall condition after the first three months of the year. Initially, events were dominated by a slump in registrations in China in February and March. How- ever, all other major automobile markets subsequently reported declines, some of them drastic, especially from March 2020 onwards.

 

 

international automobile markets

  • 03

 

Change in %

EU 27     25

thereof Germany             20

thereof France  33

thereof Italy       35

thereof Spain     31

United Kingdom (UK)     31

USA       12

China     50

Japan    10

Total      22

 

 

 

Interim Group Management Report

Report on Economic Position

General Economic Environment

Group Overview

Group Overview

 

Corona pandemic significantly holds down automobile deliveries

In an ongoing challenging political and economic environment, the global spread of coronavirus severely held down the number of vehicles delivered by the BMW Group in the first quarter of 2020. Accordingly, sales figures for the BMW, MINI and Rolls-Royce brands fell significantly to 477,1111 units during the first three-month period (2019: 600,6141, 2 units; – 20.6 %).

 

A total of 449,687 new credit financing and leasing contracts were signed with retail customers during the three-month period, slightly fewer (– 4.2 %) than one year earlier (2019: 469,624 contracts). The down- turn in new business with retail customers was mainly attributable to lower credit finance volumes (– 7.8 %), particularly in China. On the other hand, however, the number of new lease contracts signed grew slightly by 2.9 %. The leasing business in Germany contributed particularly to this growth in the first quarter of 2020.

 

Group earnings performance

Both the progression of the corona pandemic and the ensuing decisions taken by policymakers are having  a considerable impact on the BMW Group’s business performance. In particular, reduced customer demand in the wake of the pandemic and the associated con- tainment measures as well as the resulting produc- tion interruptions in several countries are having an adverse impact on the Group’s net assets, financial position and results of operations.

 

The gross profit for the three-month period amounted to €3,534 million and was therefore significantly down on the previous year (2019: €4,056 million; –12.9 %). First-quarter revenues increased slightly year-on-year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020:

87,443 units,

2019: 128,653

units).

 

to € 23,252 million (2019: € 22,462 million; + 3.5 %, adjusted for currency factors: + 2.9 %). While the Financial Services segment reported solid year-on-year revenue growth, mainly driven by higher lease reve- nues, Automotive segment revenues were held down by a slump in demand in China due to the corona pandemic and the closure of dealerships in other key markets. The lower amount of revenue being elimi- nated on consolidation due to a reduction in expected new lease contracts3, related in part to the drop in Automotive segment revenues, contributed to the rise in Group revenues. The elimination had an equal and opposite effect on the cost of sales. At the same time, higher risk provisioning expenses, including those recognised in connection with the assessment of residual value and credit risks due to the corona pan- demic on the one hand and the higher volume-related depreciation of leased vehicles on the other, also had a negative impact on cost of sales. These unfavourable factors were slightly mitigated by the volume-related decrease in Automotive segment manufacturing costs due to lower customer demand triggered by the corona pandemic. Research and development expenses remained at a similar level to the previous year, mainly reflecting the continued enhancement of the Group’s product portfolio and ongoing expenditure for vehicle electrification projects.

 

The net amount of other operating income and expenses improved by €1,351 million year-on-year, practically all of which was attributable to the provi- sion of approximately €1.4 billion recognised in the first quarter of the previous financial year in con- nection with ongoing antitrust proceedings. Further information is available in note 10 to the Group Financial Statements for  the  financial  year  ended 31 December 2019.

 

Group profit before financial result for the three- month period therefore rose sharply to €1,375 million (2019: €589 million).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

3 For more information on accounting policies, see note 4 to the Group Financial Statements in the Annual Report 2019.

 

 

 

 

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Report on Economic Position

General Economic Environment

Group Overview

BmW Group performance indicators relating to research and development expenses

  • 04

 

in %       1st quarter 2020               1st quarter 2019               Change in %pts

 

 

Research and development expenses as a percentage of revenues            5.9          6.2          – 0.3

 

Research and development expenditure ratio1   5.7          6.0          – 0.3

Capitalisation rate2         28.4        26.5        1.9

 

in € million         1st quarter 2020               1st quarter 2019               Change in %

Research and development expenses     1,380     1,396     –1.1

Capitalised development costs   376         359         4.7

Amortisation      – 432     – 402     7.5

 

Research and development expenditure3           1,324     1,353     – 2.1

 

1 Research and development expenditure as a percentage of Group revenues.

2 Capitalised development costs as a percentage of research and development expenditure.

3 Research and development expenditure comprises the sum of research and non-capitalised development cost and capitalised development cost (not including the associated scheduled amortisation).

 

 

 

The  first-quarter financial result  deteriorated by

€750 million to a net negative amount of €577 million. The corona pandemic-related downturn in customer demand and the interruption of production in China during the first quarter caused the earnings of the Chinese joint venture BMW Brilliance Automotive Ltd., Shenyang, to fall to €162 million (2019: €242 million). Furthermore, the Group’s share of losses in the YOUR NOW companies had a negative impact on the result from equity accounted investments. A further factor for the deterioration was that other financial result reported in the first quarter of 2019 had bene- fited from a one-time revaluation gain of €328 million arising on the pooling of mobility services with the Daimler Group. Furthermore, the financial result reported for the three-month period deteriorated by

€223 million due to negative valuation effects arising on interest rate hedges due to lower interest rates     in the USA.

 

Group profit before tax was impacted by the same set of factors and rose accordingly to €798 million  (2019:

€762 million; + 4.7 %) during the period under report.

Financing activities

Despite the current financial market volatility, the BMW Group continued to have excellent access to the world’s capital markets.

 

During the three-month period under report, the

BMW  Group issued bonds for a  total amount of

€3.4 billion, including one euro-benchmark bond and the fourth Panda bond on the Chinese capital market. It also issued ABS transactions in China as well as in the UK and Canada with a total value of €1.5 billion.

 

These financing activities helped mitigate negative liquidity effects arising due to lower delivery volumes caused by the corona pandemic, so that the Group’s liquidity remained at a solid level of €18.8 billion at the  end  of  the  reporting  period (31 December 2019:

€17.4 billion).

 

 

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Report on Economic Position

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Automotive Segment

Automotive Segment

 

Automobile deliveries severely affected by corona crisis

The opening quarter of the year was dominated by the worldwide outbreak of coronavirus. Restrictions on public life in numerous countries resulted in a sig- nificant decline in demand, with just 477,1111 BMW, MINI and Rolls-Royce brand vehicles delivered to

 

customers during the three-month period (2019: 600,614 1, 2 units; – 20.6 %). Worldwide deliveries of BMW brand vehicles totalled 411,809 1 units (2019: 515,297 1, 2 units; – 20.1 %). At 64,449 units,

MINI brand deliveries were also well down  on the previous year (2019: 84,145 2 units; – 23.4 %). Similarly, Rolls-Royce Motor Cars recorded a sig- nificant downturn in deliveries to 853 units (2019: 1,172 2 units; – 27.2 %).

 

 

Automotive segment deliveries of vehicles by region and market 
• 05

 

in units

  

 

1st quarter 2020

  

 

1st quarter 20192

  

 

Change in %

 

Europe

  

221,024

  

270,645

  

–18.3

thereof Germany 66,004 72,377 – 8.8
thereof UK 44,474 62,373 – 28.7
Americas 82,078 99,709 –17.7
thereof USA 64,956 78,652 –17.4
Asia1 162,940 217,415 – 25.1
thereof China1 116,577 168,650 – 30.9
Other markets 11,069 12,845 –13.8
Total1 477,111 600,614 – 20.6

 

 

 

 

Asia hardest hit

The spread of coronavirus during the first quarter of 2020 had a particularly significant impact on the BMW Group’s business in Asia, above all in China. First-quarter deliveries of the Group’s three brands in Asia fell to 162,940 1 units (2019: 217,415 1, 2 units; – 25.1 %). After a good start in Janu- ary, automobile sales in China fell significantly in February. However, the first signs of recovery were already evident in March. In total, 116,577 1 BMW, MINI and Rolls-Royce vehicles were delivered to customers in China during the first three months of the year (2019: 168,650 1, 2 units; – 30.9 %).

In Europe, after two strong months at the beginning of the year, delivery volumes began declining in March. During the first quarter, the BMW Group delivered a total of 221,024 units (2019: 270,6452 units; –18.3 %) to customers across the region. Germany (66,004 units; 2019: 72,3772 units; – 8.8 %) and the UK (44,474 units;

2019: 62,3732 units; – 28.7 %) were also affected  by the general downward trend in Europe, albeit with significantly different rates of decline.

 

After two months of volume growth for all three BMW Group brands in the Americas region, figures for March were down by around one half compared

 

 

 

Automotive segment at a glance 
• 06    

 

1st quarter 2020

  

 

1st quarter 2019

 

 

Change in %

 

Deliveries1, 3

  

units

  

477,111

  

600,6142

 

– 20.6

Production4 units 584,142 672,042–13.1
Revenues € million 17,989 19,213– 6.4
Profit / loss before financial result (EBIT) € million 229 – 310
Profit / loss before tax € million 80 – 27
EBIT margin3 % (change in %pts) 1.3 –1.62.9

 

1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 87,443 units, 2019: 128,653 units).

2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

3 Key performance indicators reported on during the year.

4 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 95,704 units, 2019: 138,391 units).

 

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Automotive Segment

to the previous year.  During the first three months  of 2020, the BMW Group delivered a  total  of  82,078 vehicles to customers on the American con- tinent (2019: 99,7092 units; –17.7 %). It was a similar story in the USA, with deliveries of the Group’s three brands dropping to a total of 64,956 units (2019: 78,6522 units; –17.4 %).

 

BMW deliveries well below previous year’s record levels1

At 411,809 units, deliveries of BMW brand vehicles  in the first quarter of 2020 were well down on

the previous year’s record level (2019: 515,2971, 2 units; – 20.1 %). As described above in the section on regions and countries, automobile deliveries began the year strongly, particularly in January. In Febru- ary, however, momentum slowed considerably, most noticeably in China, before proceeding to decline significantly in March against the backdrop of the coronavirus pandemic.

 

The BMW models that had come onto the market in mid-March 2019 – the Z4, the 8 Series and the X7 – all sold well initially. Details of delivery volumes by model series are provided below.

 

 

Automotive segment deliveries of BMW vehicles by model series 1 
• 07

 

in units

  

 

1st quarter 2020

  

 

1st quarter 20192

  

 

Change in %

 

BMW 1 Series

  

37,716

  

45,388

  

–16.9

BMW 2 Series 19,665 29,063 – 32.3
BMW 3 Series 76,418 89,918 –15.0
BMW 4 Series 10,767 22,775 – 52.7
BMW 5 Series 58,603 76,820 – 23.7
BMW 6 Series 4,678 6,095 – 23.2
BMW 7 Series 9,279 12,040 – 22.9
BMW 8 Series 4,960 2,192 
BMW Z4 3,451 1,560 
BMW X1 46,904 65,212 – 28.1
BMW X2 16,265 22,559 – 27.9
BMW X3 53,542 71,324 – 24.9
BMW X4 12,700 13,638 – 6.9
BMW X5 33,886 36,789 – 7.9
BMW X6 6,570 7,568 –13.2
BMW X7 10,373 2,449 
BMW i 6,032 9,907 – 39.1
BMW total 411,809 515,297 – 20.1

1 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 87,443 units, 2019: 128,653 units).

2 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

 

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MINI and Rolls-Royce also affected by current crisis The worldwide spread of coronavirus also had a negative impact on the number of MINI and Rolls-Royce vehicles delivered during the first quarter of 2020, with both brands experiencing a similar development to that of the BMW brand.

MINI delivered a total of 64,449 units to customers worldwide during the first three months of the year (2019: 84,1451 units; – 23.4 %). Details of delivery vol- umes for the individual models are provided below.

 

 

Automotive segment deliveries of MINI vehicles by model variant      
• 08

 

in units

  

 

1st quarter 2020

  

 

1st quarter 20191

  

 

Change in %

 

MINI Hatch (3- and 5-door)

  

34,192

  

43,613

  

– 21.6

MINI Convertible 5,339 7,549 – 29.3
MINI Clubman 7,554 10,325 – 26.8
MINI Countryman 17,364 22,658 – 23.4
MINI total 64,449 84,145 – 23.4

 

 

Rolls-Royce Motor Cars sold 853 vehicles world-

wide during the first quarter of 2020 (2019: 1,1721 units; – 27.2 %). Details of delivery volumes for the individual models are provided below.

 
Automotive segment deliveries of Rolls-Royce vehicles by model variant

• 09

      
 

in units

  

1st quarter 2020

  

1st quarter 20191

  

Change in %

 

Phantom

  

78

  

140

  

– 44.3

Ghost 82 170 – 51.8
Wraith / Dawn 192 317 – 39.4
Cullinan2 501 545 – 8.1
Rolls-Royce total 853 1,172 – 27.2

1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

2 Fuel consumption and CO2 emissions information are available on page 15.

 

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Deliveries of electrified vehicles increased

The percentage of the BMW Group’s total deliveries ac- counted for by electrified vehicles rose slightly in the first quarter of 2020. In total, 30,692 electrified vehicles were delivered to customers during the three-month period (2019: 26,9581 units; +13.9 %). The positive development was mainly due to the availability of plug-in hybrid

versions of the BMW 3 Series, the X3 and the X5 since autumn 2019, which significantly broadened the range of electrified vehicles on offer. In addition, the completely new, all-electric MINI Cooper SE2 was launched at the beginning of March 2020. Deliveries of BMW i vehicles were down on the previous year, primarily due to the BMW i8 reaching the end of its life cycle.

 

 

Automotive segment deliveries of electrified models      
• 10

 

in units

  

 

1st quarter 2020

  

 

1st quarter 20191

  

 

Change in %

 

BMW i

  

6,032

  

9,907

  

– 39.1

BMW e 20,408 13,022 56.7
MINI Electric 4,252 4,029 5.5
Total 30,692 26,958 13.9

1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group’s 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.

2 Fuel consumption and CO2 emissions information are available on page 15.

 

 

 

 

Segment revenues held down by corona pandemic First-quarter Automotive segment revenues amounted to €17,989 million, representing a moderate decrease year-on-year (2019: €19,213 million; – 6.4 %, adjusted for currency factors: – 6.9 %). The primary factors influ- encing this development were lower delivery volumes, particularly due to the global outbreak of the corona pandemic and the accompanying drop in demand in China, as well as the closure of dealerships in other key markets. A positive product mix, favourable cur- rency effects and improved selling prices driven by a product portfolio significantly rejuvenated since the same quarter of the previous year partially offset the impact of lower volumes.

 

Segment cost of sales  went  down  by  €422 million to €15,971 million (2019: €16,393 million; – 2.6 %), mainly due to the volume-related decrease in man- ufacturing costs. However, the scale of the decrease was held down by higher manufacturing costs per vehicle due to a higher-value product mix compared with the previous year, unfavourable currency effects and increased raw material prices. Research and development expenses remained at a similarly high level to the previous year, mainly reflecting sustained development work on the Group’s product portfolio and expenditure on vehicle electrification.

 

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Other operating expenses totalling € 276 million

were significantly lower than one year earlier (2019:

€ 1,532 million), mainly due to the provision for ongoing antitrust proceedings recognised in the first quarter of the previous financial year.

 

First-quarter segment EBIT improved to € 229 million (2019: 2019: negative EBIT of € 310), while the EBIT margin came in at 1.3 % (2019: – 1.6 %; + 2.9 percent- age points).

 

The segment’s financial result was significantly down on the previous year. The deterioration was due firstly

to the one-time revaluation effect in the previous

year arising on the pooling of mobility services with the Daimler Group and secondly to the lower result from equity accounted investments in the first quarter of 2020, brought about by the lower earnings of the Chinese joint venture BMW Brilliance Automotive Ltd., Shenyang, in the wake of the corona pandemic as well as by losses recorded by the YOUR NOW companies.

 

The segment profit before tax for the first quarter of 2020 amounted to € 80 million (2019: loss of

€ 27 million).

 

 

Free cash flow Automotive segment for the period from 1 January to 31 March* 
• 11

 

in € million

 

 

2020

  

 

2019

  

 

Change

 

Cash inflow (+) / outflow (–) from operating activities

 

–1,395

  

2,033

  

– 3,428

Cash inflow (+) / outflow (–) from investing activities– 429 – 2,595 2,166
Adjustment for net investment in marketable securities and investment funds– 394 3 – 397
Free cash flow Automotive segment– 2,218 – 559 –1,659

* At the beginning of the financial year 2020, the starting point for determining cash flow was changed to profit before tax; the previous year’s figures have been adjusted accordingly.

 

 

 

 

Free cash flow generated by the Automotive segment was adversely affected by the corona pandemic in the first quarter. The main negative factor here was the change in cash flows from operating activities,   in particular the year-on-year deterioration in profit before tax from operations (i.e. excluding the provision recognised in the first quarter of 2019 in connection with the ongoing antitrust proceeding which, as a non-cash item, did not have an impact on free cash flow). The higher level of working capital also had a negative impact on cash flow, reflecting the seasonal increase in inventories on the one hand, the scale of which was significantly exacerbated in the first quar- ter of 2020 by the temporary closure of dealerships, as well as the decrease in trade payables due to the interruption of production at several locations from mid-March onwards on the other hand.

 

In the previous financial year, first-quarter cash flows from investing activities were affected in particular by cash outflows in connection with the acquisition of the YOUR NOW companies as well as by higher investments in the production network, including the new manufacturing facility in Mexico, which was opened in 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BmW Group fuel consumption and co2 emissions information

  • 13

 

 

 

Model

 

 

 

 

Fuel consumption

in l / 100 km (combined)

 

 

 

CO2 emissions

in g / km (combined)

 

 

 

Electric power consumption

in kWh / 100 km (combined)

 

 

 

BmW Group electriFied models                                                

BMW 330e Touring         2.1 –1.7                48 – 39  19.4 –15.7

 

BMW 330e xDrive Touring            2.5 – 2.0               56 – 46  22.3 –17.8

 

BMW 330e Sedan            1.7 –1.6                38 – 36  15.0 –14.8

 

BMW 330e xDrive Sedan              2.3 –1.8                52 – 42  21.3 –16.7

 

BMW X3 xDrive30e         2.4 – 2.1               54 – 48  17.1 –16.4

 

BMW X5 xDrive45e         2.0 –1.7                46 – 38  23.5 – 21.3

 

MINI Cooper SE 0              0              16.8 –14.8

 

 

rolls-royce                                                         

Cullinan                15.5        330 – 329             –

 

 

 

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Financial Services Segment

 

Negative impact of corona pandemic on Financial Services business in first quarter 2020

Despite the revenue growth achieved during the period under report, driven by the combined effect   of new leasing business and the existing  portfolio, the pre-tax profit recorded by the Financial Services segment was significantly lower than one year earlier. The main reason for the decline in segment profit was the increased risk provisioning expense in connection with the expected consequences of measures being taken to contain the corona pandemic.

 

In terms of credit risk management, appropriate mea- sures were put in place to support dealership and retail customer financing – including moratoriums and temporary increases in dealership credit lines – with a view to mitigating systemic risks that might arise as a consequence of the corona pandemic. Prior to their implementation, the adopted measures were considered in light of current regulatory developments, market requirements and Group liquidity aspects.

 

An additional risk allowance for expected credit losses was recognised on a market-by-market basis, taking account of local conditions, in order to cover the potentially negative impact of the corona pandemic on retail customer and dealership business. In addition to the above-mentioned countermeasures, a qualitative portfolio evaluation was performed and an increased risk allowance recognised for the proportion of the contracts for which credit risk is expected to increase.

 

During the first quarter of the financial year 2020, selling prices of vehicles returned from leases were only affected in isolated cases and to a minor degree by the corona pandemic. With respect to risk provi- sioning expenses, initial measures were undertaken

 

in a few countries where portfolios are exposed to residual value risks. Risk provisions were adjusted on a market-by-market basis, for example to allow for current restrictions that might affect the remarketing process or the amount of expected market value losses. However, the consequences of the pandemic for selling prices of premium segment pre-owned vehicles on international markets cannot be reliably assessed at present.

 

The Financial Services segment monitors and provides for core business risks on an ongoing and comprehen- sive basis. In view of the current volatile developments triggered by the corona pandemic, the risk situation in the Financial Services segment could deteriorate   in subsequent quarters, for instance in the event a significant increase in credit risk. Accordingly, changes in the status of the various risks are being monitored continuously so that corrective measures can be taken promptly as and when the need arises. Based on current assessments, however, the Financial Services segment has recognised appropriate levels of provisions /al- lowances to cover residual value and credit risks.

 

In balance sheet terms, business volumes were lower than at the end  of  2019  due  to  currency  factors on the one hand and lower receivables from sales financing on the other, driven by the lower volume  of BMW Group new vehicles sold.

 

Slight decrease in new business with retail customers

During the three-month period, a total of 449,687 new credit financing and leasing contracts were signed with retail customers, corresponding to a slight year- on-year decrease of 4.2 % (2019: 469,624 contracts).

 

The decline in volume of new business  contracts with retail customers was attributable to a downturn in credit financing (– 7.8 %), particularly in China,

 

 

 

Financial services segment at a glance 
• 14    

 

1st quarter 2020

  

 

1st quarter 2019

  

 

Change in %

 

New contracts with retail customers

    

449,687

  

469,624

  

– 4.2

Revenues € million 7,598 7,146 6.3
Profit / loss before financial result (EBIT) € million 542 648 –16.4
Profit / loss before tax € million 484 627 – 22.8
     

 

31. 3. 2020

  

 

31. 12. 2019

  

 

Change in %

 

Contract portfolio with retail customers

    

5,516,068

  

5,486,319

  

0.5

Business volume in balance sheet terms* € million 138,979 142,834 – 2.7

 

* Calculated on the basis of the lines Leased products and Receivables from sales financing (current and non-current) of the Financial Services segment balance sheet.

 

 

Interim Group Management Report

Report on Economic Position

General Economic Environment

Financial Services Segment

whereas leasing business grew slightly (+ 2.9 %), driven primarily by the higher number of new lease contracts signed in Germany. Overall, leasing accounted for

35.7 % and credit financing for 64.3 % of new business in the period under report.

 

In the pre-owned credit financing and leasing lines  of business, 103,157 new contracts were signed for BMW and MINI brand vehicles between January and March (2019: 95,211 contracts; + 8.3 %).

 

The total volume of all new credit financing and leas- ing contracts concluded with retail customers during the three-month period amounted to €14,075 mil- lion, up slightly (+1.3 %) on the previous year (2019:

€13,898 million). Alongside positive currency effects, the main factor driving the increase was a favourable product mix. Adjusted for currency factors, the total volume of new business remained at a similar level to the previous year (+ 0.3 %).

 

During the first quarter, 57.7 %1 of new BMW Group vehicles were either leased or financed by the Finan- cial Services segment (2019: 50.0 %; + 7.7 percent- age points).

 

At 31 March 2020, the total portfolio of credit financing and leasing contracts with retail customers comprised 5,516,068 contracts, similar to the level reported  at the previous year-end (31 December 2019: 5,486,319 contracts; + 0.5 %). The Europe/Middle East/Africa region recorded a slight year-on-year increase (+ 2.0 %), while the EU Bank2 (+ 0.4 %), Americas (– 0.3 %) and Asia/Pacific (– 0.5 %) regions all hovered around the previous year’s level. The contract portfolio for the China region went down by 1.0 %.

 

Fleet business at previous year’s level

In the fleet management business, the BMW Group – operating under the brand name Alphabet – is one of Europe’s foremost leasing and full-service providers. Alphabet offers leasing and financing arrangements as well as other specific services to commercial customers. A portfolio of 715,109 contracts was in place at 31 March 2020 (31 December 2019: 717,353 contracts; – 0.3 %).

 

Dealership financing moderately down on previous year

In the first quarter, the total volume of dealership financ- ing decreased by 7.7 % year-on-year to €19,582 million (31 December 2019: €21,227 million).

 

 

1 The calculation only includes automobile mar- kets in which

the Financial Ser- vices segment

is represented by a consolidated entity or a branch office.

 

2 EU Bank com- prises BMW Bank GmbH, with its branches in Italy, Spain and Portugal .

Other Entities Segment and Eliminations

 

Profit before tax recorded for the Other Entities segment and eliminations amounted to €162 million (2019: €75 million). These figures include in particular fair value measurement losses – reported in the line item “Other financial result” – arising on interest rate hedges entered into  with matching  maturities in conjunction with the refinancing of Financial Services operations, which were more  than  offset by the positive impact of reversals relating to the portfolio of leased products and the lower volume   of expected new leasing business.

 

 

 

Interim Group Management Report

 

Report on Outlook, Risks and Opportunities

Outlook

REPORT

ON OUTLOOK, RISKS AND OPPORTUNITIES

Future developments remain to be seen

 

BMW Group expects difficult year

 

OUTLOOK

 

 

The report on outlook, risks and opportunities de- scribes the expected development of the BMW Group, including the significant risks and opportunities, from a Group management perspective. It contains forward-looking statements based on expectations and assessments that are subject to uncertainty. As a result, actual outcomes, including those attributable to political, legal and economic developments, could differ positively or negatively from those described below. Further information on this topic is provided in the Annual Report 2019 (Outlook, pp. 82., Risks and Opportunities, pp. 88).

 

Interim Group Management Report

 

Report on Outlook, Risks and Opportunities

Outlook

International automobile markets

Automobile markets will contract significantly in 2020 as a result of the corona pandemic and wide- spread lockdowns. No other  conclusion  is  realistic in the current economic situation. Even based  on the optimistic assumption of a rapid  recovery  and no further waves of the infection, the IMF predicts a negative growth rate of around 3 %. The extent of the contraction is likely to depend to a large extent on  the economic stimulus programmes implemented by the various countries and the reaction of consumers to the remaining containment measures.

international automobile markets 2020

  • 15

 

Change in %

 

 

EU 27                    – 25

     thereof Germany                      – 21 thereof France                                        28

thereof Italy       35

thereof Spain     32

UK          23

USA       27

China     16

Japan                   –16 Total                                             22

Outlook for the BMW Group Assumptions used in the outlook

At the time of publication of the 2019 Annual Report in March 2020, the outlook for the financial year 2020 was based on the assumption that deliveries across  all key markets would return to normal after a few weeks. However, measures to contain the corona pan- demic, such as lockdowns and restrictions on business activities, particularly in Europe and America, have meanwhile been extended and only partially relaxed. Nearly all cross-border travel has come to a halt. The continued restrictions related to the pandemic are dragging down the global economy and clouding macroeconomic prospects for 2020.

 

A swift recovery seems unlikely. In its revised fore- cast, the BMW Group now only expects the business environment to begin stabilising in the  course  of the third quarter. A longer and deeper recession in major markets, a more severe economic slow-down  in China as a result of recessions in other parts of    the world, significant market distortions due to an even stronger competitive environment and possible implications caused by a second wave of infections and associated containment measures  are  not  included in the revised outlook.

 

The overall very unclear situation makes it difficult to provide an accurate forecast and has led to a broad- ening of the applied scenarios. This is  reflected  in the corresponding expansion of the target range for the EBIT margin in the Automotive segment for 2020.

 

Interim Group Management Report

 

Report on Outlook, Risks and Opportunities

Outlook

Overall assessment by Group management

Within a volatile environment, currently overshad- owed by the global spread of coronavirus, business   is expected to develop negatively during the financial year 2020. Despite the expectation that numerous new automobile and motorcycle models as well as individual mobility-related services would normally generate additional momentum, the various burdens on the global economy described above are likely to have a significant offsetting impact. Research and development expenses will remain at a high level to propel forward-looking projects. In light of the nega- tive impact of the worldwide corona crisis, profit before tax during the period covered by the outlook  is likely to decrease significantly.

 

Due to the negative consequences of the spread of  the virus, Automotive segment deliveries to cus- tomers are likely to be significantly lower than in the previous financial year. Influenced by the negative factors described above, the Automotive segment’s EBIT margin is expected to be within a target range  of 0 and 3 % in 2020. Furthermore, the RoCE in this segment is likely to be significantly lower than one year earlier. At the same time, fleet carbon dioxide emissions* are forecast to drop significantly.

 

For the RoE in the Financial Services segment, an even more significant decline in the volume of new business contracts and higher refinancing costs as well as a more volatile risk environment have been

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* EU-28

assumed, mainly due to the negative economic out- look. Accordingly, Financial Services segment RoE is now expected to decrease moderately year-on-year.

 

Motorcycles segment deliveries to customers are set to decrease significantly in 2020. The EBIT margin is now expected to be within a range of 3 and 5 % and the RoCE significantly lower than the previous year’s level.

 

These targets are to be achieved with a  workforce size which – based on the new method of calculation described in the BMW Group Annual Report 2019 – will be slightly smaller than one year earlier through a process of natural fluctuation.

 

The prevailing high level of uncertainty – particularly in connection with the further spread of corona- virus, economic and political developments such the negotiations between the EU and the UK on a trade agreement by 31 December 2020, and international trade and customs policies – may cause economic developments in many regions to deviate from recent expected trends and outcomes. These factors would have a further significant impact on the business performance of the BMW Group.

 

Furthermore, actual business performance may differ from current expectations as a result of the risks and opportunities described in the Report on Risks and Opportunities in the Annual Report 2019 (pp. 88).

 

 

 

 

 

 

Interim Group Management Report BmW Group key performance indicators

• 16

 
Report on Outlook, Risks and      

2019

  

2019

  

2020

Opportunities     reported adjusted Outlook
Outlook          
  Group                                                                                                                                                                                                                 
  Profit before tax € million 7,118  significant decrease
  Workforce at year-end   133,778 126,016 slight decrease
   

Automotive seGment                                                                                             

  

                           

  

                           

  

                           

  

                           

  Deliveries to customers2 units 2,538,367  significant decrease
  Fleet emissions3 g CO2 / km 127  significant decrease
  EBIT margin % 4.9  between 0 and 3
  Return on capital employed % 29.0  significant decrease
   

motorcycles seGment                                                                                             

  

                           

  

                           

  

                           

  

                           

  Deliveries to customers units 175,162  significant decrease
  EBIT margin % 8.2  between 3 and 5
  Return on capital employed % 29.4  significant decrease
   

FinAnciAl services seGment                                                                                             

  

                           

  

                           

  

                           

  

                           

  Return on equity % 15.0  moderate decrease

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Based on adjusted figures.

2 Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2019: 538,612 units).

3 EU-28.

 

 

 

Interim Group Management Report

 

Report on Outlook, Risks and Opportunities

Risks and Opportunities

RISKS AND

OPPORTUNITIES

 

 

As a globally operating enterprise, the BMW Group is exposed to a broad range of risks and opportunities. The Group’s corporate success is based on leveraging perceived opportunities as they present themselves. In order to drive growth, boost profitability, bolster effi- ciency and work in a sustainable way going forward, the BMW Group also needs to take calculated risks.

 

The assessment of the overall risk situation presented in the Group Management Report 2019 has not changed. Towards the end of April 2020, the BMW Group began the process of resuming production at its international production sites on a stage-by-stage basis. The exact dates of the restart will depend on the situation in the various markets and on customer demand. Although some initial positive developments can be observed, there remains a high degree of uncertainty in many markets, for example in connection with changes in opening regulations for retail businesses and mea- sures required to be taken to contain the coronavirus. The risks arising in  conjunction  with  the  outbreak of coronavirus and their potential impact on the BMW Group’s delivery volumes and supply chains, as well as on financial markets, continue to be classified as high and are constantly being factored into the Group’s forecasts. Similarly, the progress of negotia- tions on free trade agreements between the EU and the UK as well as developments in global trade policies will continue to be closely monitored and promptly taken into account in the outlook.

 

Further information on risks and opportunities as well as on the methods employed to manage them is also avail- able in the “Report on Risks and Opportunities”section of the Annual Report 2019. (pp. 90).

 

INTERIM GROUP FINANCIAL STATEMENTS

 

Page 24 Income Statement

 

Page 26 Balance Sheet

 

Page 28 Cash Flow Statement

3

 

 

 

Interim Group Financial Statements

 

BMW Group Income Statement

BMW GROUP

INCOME STATEMENT

 

 

 

Income Statements for Group and Segments for the period from 1 January to 31 March

  • 17

 

 Group  Automotive  Motorcycles  
in € million 20202019 20202019 20202019
 

Revenues

  

23,252

 

22,462

  

17,989

 

19,213

  

557

 

586

  
Cost of sales –19,718–18,406 –15,971–16,393 – 428– 438  
Gross profit 3,5344,056 2,0182,820 129148  
Selling and administrative expenses – 2,165– 2,122 –1,786–1,769 – 57– 59  
Other operating income 250164 273171   
Other operating expenses – 244–1,509 – 276–1,532   
Profit / loss before financial result 1,375589 229– 310 7289  
Result from equity accounted investments 40157 40157   
Interest and similar income 2735 8587 1  
Interest and similar expenses – 80– 93 –132–151 – 2  
Other financial result – 56474 –142190 –1  
Financial result – 577173 –149283 – 2  
Profit / loss before tax 798762 80– 27 7287  
Income taxes – 224– 218 – 207 – 20– 25  
Profit / loss from continuing operations 574544 60– 20 5262  
Profit / loss from discontinued operations 44 44   
Net profit / loss 574588 6024 5262  
Attributable to minority interest 2027 49   
Attributable to shareholders of BMW AG 554561 5615 5262  
Basic earnings per share of common stock in € 0.840.85        
Basic earnings per share of preferred stock in € 0.840.85        
Dilutive effects         
Diluted earnings per share of common stock in € 0.840.85        
Diluted earnings per share of preferred stock in € 0.840.85        

 

 

 

 

 

 

 

 

 

 

 

 

Financial Services            Other Entities   Eliminations

 2020 2019 2020 2019 2020 2019 
   

7,598

  

7,146

  

1

  

1

  

– 2,893

  

– 4,484

  

Revenues

  – 6,729 – 6,198   3,410 4,623 Cost of sales
  869 948 1 1 517 139 Gross profit
  – 320 – 294 – 7 – 4 5 4 Selling and administrative expenses
  5 3 39 25 – 67 – 35 Other operating income
  –12 – 9 – 21 –18 65 50 Other operating expenses
  542 648 12 4 520 158 Profit / loss before financial result
        Result from equity accounted investments
  1  345 378 – 404 – 431 Interest and similar income
  –1 –1 – 337 – 345 390 406 Interest and similar expenses
  – 58 – 20 – 364 – 95   Other financial result
  – 58 – 21 – 356 – 62 –14 – 25 Financial result
  484 627 – 344 – 58 506 133 Profit / loss before tax
  –137 –177 93 19 –140 – 42 Income taxes
  347 450 – 251 – 39 366 91 Profit / loss from continuing operations
        Profit / loss from discontinued operations
  347 450 – 251 – 39 366 91 Net profit / loss
  16 18     Attributable to minority interest
  331 432 – 251 – 39 366 91 Attributable to shareholders of BMW AG
              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 €

 

 

 

Interim Group Financial Statements

 

BMW Group Balance Sheet

BMW GROUP

BALANCE SHEET

 

 

Group   Automotive       Motorcycles

in € million 31. 3. 2020 31.12. 2019 31. 3. 2020 31.12. 2019 31. 3. 2020 31.12. 2019 
 

Assets  

  

               

  

               

  

               

  

               

  

               

  

               

  

               

Intangible assets 11,676 11,729 11,157 11,212 133 127  
Property, plant and equipment 22,731 23,245 22,262 22,749 391 407  
Leased products 42,976 42,609      
Investments accounted for using the equity method 3,188 3,199 3,188 3,199    
Other investments 677 703 4,620 5,144    
Receivables from sales financing 48,754 51,030      
Financial assets 2,406 1,370 304 131    
Deferred tax 1,867 2,194 3,422 3,451    
Other assets 1,398 1,325 2,249 2,203 36 36  
Non-current assets 135,673 137,404 47,202 48,089 560 570  
 

Inventories

  

18,594

  

15,891

  

17,142

  

14,404

  

761

  

679

  
Trade receivables 2,442 2,518 2,118 2,228 191 186  
Receivables from sales financing 39,895 41,407      
Financial assets 5,928 5,955 4,400 4,772    
Current tax 1,461 1,209 1,043 1,000    
Other assets 9,279 11,614 30,333 33,492 1 1  
Cash and cash equivalents 13,990 12,036 8,971 9,077 2 11  
Current assets 91,589 90,630 64,007 64,973 955 877  
 

Total assets

  

227,262

  

228,034

  

111,209

  

113,062

  

1,515

  

1,447

  
 

equity And liABilities    

Subscribed capital

  

               

659

  

               

659

  

               

  

               

  

               

  

               

  

               

Capital reserves 2,161 2,161          
Revenue reserves 59,534 57,667          
Accumulated other equity –1,716 –1,163          
Equity attributable to shareholders of BMW AG 60,638 59,324          
 

Minority interest

  

610

  

583

          
Equity 61,248 59,907 40,627 40,174    
 

Pension provisions

  

1,456

  

3,335

  

1,277

  

2,820

  

36

  

96

  
Other provisions 5,780 5,788 5,606 5,605 76 81  
Deferred tax 877 632 756 543    
Financial liabilities 72,501 70,647 2,762 2,680    
Other liabilities 5,128 5,100 8,136 7,929 593 569  
Non-current provisions and liabilities 85,742 85,502 18,537 19,577 705 746  
 

Other provisions

  

7,226

  

7,421

  

6,785

  

6,962

  

104

  

105

  
Current tax 691 963 471 704    
Financial liabilities 46,713 46,093 2,314 1,929    
Trade payables 8,910 10,182 7,682 8,814 461 413  
Other liabilities 16,732 17,966 34,793 34,902 245 183  
Current provisions and liabilities 80,272 82,625 52,045 53,311 810 701  
 

Total equity and liabilities

  

227,262

  

228,034

  

111,209

  

113,062

  

1,515

  

1,447

  

 

 

 

 

 

 

 

Financial Services            Other Entities   Eliminations

 31. 3. 2020 31.12. 2019 31. 3. 2020 31.12. 2019 31. 3. 2020 31.12. 2019 
               

                Assets

  385 389 1 1   Intangible assets
  78 89     Property, plant and equipment
  50,280 50,348   – 7,304 – 7,739 Leased products
        Investments accounted for using the equity method
  20 1 6,876 6,847 –10,839 –11,289 Other investments
  48,804 51,079   – 50 – 49 Receivables from sales financing
  178 139 2,023 1,168 – 99 – 68 Financial assets
  504 512 62 84 – 2,121 –1,853 Deferred tax
  3,277 3,351 42,987 38,919 – 47,151 – 43,184 Other assets
  103,526 105,908 51,949 47,019 – 67,564 – 64,182 Non-current assets
   

691

  

808

  

  

  

  

  

Inventories

  132 103 1 1   Trade receivables
  39,895 41,407     Receivables from sales financing
  992 1,009 557 187 – 21 –13 Financial assets
  168 84 250 125   Current tax
  5,621 5,106 58,301 64,692 – 84,977 – 91,677 Other assets
  3,249 2,075 1,768 873   Cash and cash equivalents
  50,748 50,592 60,877 65,878 – 84,998 – 91,690 Current assets
   

154,274

  

156,500

  

112,826

  

112,897

  

–152,562

  

–155,872

  

Total assets

               

                equity And liABilities

              Subscribed capital
              Capital reserves
              Revenue reserves
              Accumulated other equity
              Equity attributable to shareholders of BMW AG
               

Minority interest

  15,720 15,545 21,899 21,972 –16,998 –17,784 Equity
   

38

  

47

  

105

  

372

  

  

  

Pension provisions

  98 102     Other provisions
  3,965 3,804 32 34 – 3,876 – 3,749 Deferred tax
  17,885 18,170 51,953 49,865 – 99 – 68 Financial liabilities
  42,973 39,639 310 102 – 46,884 – 43,139 Other liabilities
  64,959 61,762 52,400 50,373 – 50,859 – 46,956 Non-current provisions and liabilities
   

284

  

299

  

53

  

55

  

  

  

Other provisions

  178 184 42 75   Current tax
  27,544 26,938 16,876 17,239 – 21 –13 Financial liabilities
  756 943 11 12   Trade payables
  44,833 50,829 21,545 23,171 – 84,684 – 91,119 Other liabilities
  73,595 79,193 38,527 40,552 – 84,705 – 91,132 Current provisions and liabilities
   

154,274

  

156,500

  

112,826

  

112,897

  

–152,562

  

–155,872

  

Total equity and liabilities

 

 

BMW GROUP

CASH FLOW STATEMENT

 
Condensed Cash Flow Statement for the period from 1 January to 31 March

• 18

     
   

Group

   
in € million 20202019  
 

Profit / loss before tax*

  

798

 

762

  
Depreciation and amortisation of tangible, intangible and investment assets 1,5631,440  
Change in provisions 294996  
Change in leased products and receivables from sales financing 2,270– 87  
Changes in working capital 3,726– 2,084  
Other 138146  
Cash inflow/outflow from operating activities 7491,173  
 

Total investment in intangible assets and property, plant and equipment

  

–1,443

 

–1,611

  
Net investment in marketable securities and investment funds 46345  
Other 607–1,043  
Cash inflow/outflow from investing activities 3732,609  
 

Cash inflow/outflow from financing activities

  

1,567

 

2,808

  
 

Effect of exchange rate on cash and cash equivalents

  

11

 

90

  
 

Effect of changes in composition of Group on cash and cash equivalents

  

 

  
 

Change in cash and cash equivalents

  

1,954

 

1,462

  
 

Cash and cash equivalents as at 1 January

  

12,036

 

10,979

  
Cash and cash equivalents as at 31 March 13,99012,441  

 

Interim Group Financial Statements

 

BMW Group

Cash Flow Statement

 

 

Automotive       Financial Services

 2020 2019 2020 2019 
   

80

  

– 27

  

484

  

627

  

Profit / loss before tax*

  1,522 1,403 12 12 Depreciation and amortisation of tangible, intangible and investment assets
  –148 1,445 – 44 38 Change in provisions
    2,705 162 Change in leased products and receivables from sales financing
  – 3,593 – 2,208 – 96 – 95 Changes in working capital
  744 1,420 –1,182 –1,370 Other
  –1,395 2,033 1,879 – 626 Cash inflow/outflow from operating activities
   

–1,420

  

–1,591

  

– 2

  

– 3

  

Total investment in intangible assets and property, plant and equipment

  394 – 3 70 49 Net investment in marketable securities and investment funds
  597 –1,001 – 4 1 Other
  – 429 – 2,595 64 47 Cash inflow/outflow from investing activities
   

1,714

  

1,534

  

– 772

  

1,082

  

Cash inflow/outflow from financing activities

   

4

  

34

  

3

  

51

  

Effect of exchange rate on cash and cash equivalents

   

  

  

  

  

Effect of changes in composition of Group on cash and cash equivalents

   

–106

  

1,006

  

1,174

  

554

  

Change in cash and cash equivalents

   

9,077

  

8,631

  

2,075

  

1,985

  

Cash and cash equivalents as at 1 January

  8,971 9,637 3,249 2,539 Cash and cash equivalents as at 31 March

 

This version of the Quarterly Statement is a translation from the German version. Only the original German version is binding.

PUBLISHED B Y

 

Bayerische Motoren Werke Aktiengesellschaft

80788 Munich Germany

Telephone +49 89 382-0

 

About Michael Le Pard 4326 Articles
"Mr. Totalmotorcycle". Owner and Founder of Total Motorcycle. Supporting over Motorcyclists and Motorcycling for 21 great years. Total Motorcycle is my pride and joy and being able to reach out 330 million people has been incredible but I could not have done it without the support of my visitors, readers and members, thank you so much! You are making a difference to millions of riders worldwide. Thank you.