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MIL OSI Translation. Region: Germany / Deutschland –

Source: BMW group Munich. The BMW Group will be holding after the first half of the year continue to be on course to your targets for the year. After the company controlled its production in March, in view of the foreseeable drop in global demand in many locations shut down could be initiated in the second quarter with a coordinated restart of the production sites. Since mid-June, all of the car work mobile stations again in the regular layer. Nevertheless, cost-efficiency and Cash Management remain crucial, in order to control the consequences of the Corona of a pandemic in the best possible way.

“Thanks to our high level of responsiveness and consistent management, we have the effects of the Corona-pandemic on the BMW Group in the first half of the year limit,” said the Chairman of the Board of BMW AG, Oliver Zipse, on Wednesday in Munich. Despite the significant Market declines as a result of the Corona pandemic, the BMW Group was able to achieve by June, a positive consolidated result before taxes of 498 million Euro. “We look with cautious Optimism to the second half of the year and aim for 2020 is to continue an EBIT margin in the Automotive Segment of between 0 and 3 percent. We continue to monitor the Situation very carefully and control the production unchanged, according to the development in the markets, and the regional variations in customer demand.“

The BMW Group is sticking to its plans, Even in a very challenging environment, they continue to invest in future fields of technology and appropriate skill building. As previously announced, the company spends up to 2025, more than 30 billion euros for research and development, its role as an innovation leader.

Liquidity position is strong – investment in the future remain at a high level According to the BMW Group continues to advance the technologies of the future: The research and development costs of the group were in June, with 2.734 million euros on a high level (previous year.: 2.796 million €/ -2,2%). Among other things, current expenses for the electrification, and specifically for the development of the BMW iNEXT are included. The investments in property, plant and equipment and other intangible assets was as announced, clearly prioritised and focused. They amounted in the first half of the year to 1,477 million (PY:€.: 2.175 million € / -32,1%). “We are investing in a target-oriented and with a sense of proportion. Against the Background of the current Situation, we delay projects or put them to the test. As announced, we have reduced in the second quarter, in addition to consistently stocks, in order to support the Free cash flow,“ said Nicolas Peter, a member of the Board of management of BMW AG, Finance. “An important contribution to the results of our Performance program provides. Here have already been created for more than three years, important prerequisites, which come to us now for the benefit of, and necessary changes to accelerate.“

CO2 reduction by million electrified vehicles

A second strategic focus is on sustainability. During the Corona-pandemic, the Board has set ambitious long-term goals. “Sustainability and digitalization are the key topics of this decade. Especially in challenging times, we need to set the right course,“ said Zipse. “We not only connect product excellence with the latest digital technology – we also design them so that they make a contribution to sustainability. One of our customers and benefit society.“

The BMW Group has set itself clear targets for CO2 reduction until the year 2030 – for the first time over the entire life cycle of their products, from the supply chain, through production, to the end of the use phase. Over this entire period, the CO2 emissions per vehicle to be reduced by 2030 to 2019 significantly, by at least a third.

The CO2 will be reduced emissions of the vehicles in their use phase-by 40 per cent per kilometre driven. A Central lever for a far-reaching product strategy with a massive Expansion of E-mobility: In ten years, a total of more than seven million electrified vehicles of the BMW Group to be on the roads, of which about two-thirds full electric drive.is

Today, the BMW Group is a leading provider of electrified vehicles: the end of 2021, the BMW Group will provide the BMW i3*, the MINI Cooper SE, the BMW iX3*, the BMW iNEXT, as well as the BMW i4 five fully-electric series-production vehicles. Another milestone is the upcoming Generation of the BMW is in the episode 7. The flagship of the BMW brand will be available with four different drive types available: as a highly efficient Diesel or gasoline, and as an electrified Plug-in Hybrid and for the first time as a fully-electric BEV model. In 2023, the company will have 25 electrified models on the road, half of them fully electric. For more all-electric models in preparation

In addition to the BMW 7 series, the comprehensive electrification is rolled out further across the model range are: Additional examples of the “Power of Choice” will be the high-volume BMW X1 and BMW 5 series, which will be in the future also with all the four different drive variants – a full electric, Plug-in Hybrid, Diesel and petrol available.

“The best cars in the world are sustainable. Premium and sustainability in the future, more than ever,“ said Zipse. “We are leveraging our outstanding technological expertise in Hardware and Software to make our cars desirable, and to make with them at the same time a contribution to CO2 reduction.”

The BMW Group has been working, unchanged, to reduce the CO2 emissions of their current fleet of new Cars significantly. The company will achieve the specified CO2 target of its European new-car registrations. This is approximately 20% below the preset from the year 2019. The consistent electrification of its model range, contributing to achieve this goal is crucial.

Group sales in the first half of the year, year-on-year

As expected, the consequences of the Corona effect of pandemic in the months of April to June, greater. The BMW Group has delivered in the first half of this year, the world 962.575 (-23,0%) vehicles of the Premium brands BMW, MINI and Rolls-Royce. According to the group’s turnover was 43.225 million € below the previous year’s level (previous year.: 48.177 million € / -10,3%). The profit before financial result (EBIT) amounted to € 709 million (previous year.: 2.790 million € / € -74.6 m%). The group’s earnings before taxes (EBT) amounted to 498 million (PY:€.: 2.815 million € / -82,3%). The EBT-margin for the group in the first half amounted to 1.2% (previous year.: Of 5.8%). The consolidated net profit amounted to EUR 362 million (PY.: 2.068 million € / -82,5%).

In the second quarter, deliveries to customers were 485.464 automobiles (-25,3%). The group’s sales decreased on 19.973 million (PY:€.: 25.715 million € / -22,3%). In the result, the result was the financial result, at -666 million (PY:€.: 2.201 million €). A positive development of the Joint venture BMW Brilliance Automotive Ltd. in China contributed to a positive development in the financial result. The result before taxes amounted to € -300 million (PY.: 2.053 million €). Accordingly, the EBT-margin for the group amounted to -1.5% (Vj.: To 8.0%). The consolidated result after tax stood at -212 million (PY:€.: 1.480 € million). The Automotive Segment of significant Market declines affect sales in The Automotive Segment was between January and June 32.867 million (PY:€.: 41.837 million € / -21,4%). Positive product mix effects and improved Price realization, due to the rejuvenated product portfolio was counteracted by the significant decline in Volume. The EBIT amounted to -1.325 million (PY:€.: To € 1,159 million). The EBIT margin was 4.0% (previous year.: Of 2.8%).

In the second quarter, sales declined on 14.878 million (PY:€.: 22.624 million € / -34,2%). EBIT amounted to -1.554 million (PY:€.: 1.469 million €). Accordingly, the EBIT margin amounted to -10.4% (Vj.: To 6.5%).

Overall, in the first six months of the year 842.153 Automobiles of the BMW brand, were delivered (-21,7%). The MINI brand has sold in this period 118.862 units (-31,1%). Rolls-Royce Motor Cars achieved in the first half of a paragraph of 1,560 (-37,6%) vehicles.

Despite the decline in the total sales, the BMW Group was the number of delivered electrified vehicles of the BMW and MINI brands in the first half of the year, to a total of 61.652 units ( 3.4%), which again increase. The consistently expanded model range, should ensure that, in the second half of the year, for a further increase in electrified vehicles.

In the European Region were delivered in the first half of 372.754 (-32,3%) Cars of the brands BMW, MINI and Rolls-Royce. In Germany, sales of the BMW Group declined to 116.362 units (Treasury stock -27.9%). In China, a positive development was recorded in the April-to: As sales in the second quarter than in the previous year, for the first six months, a decrease of 6.0% on 329.447 units. In the United States were sold in the first half of 121.318 (-29.5 total%) Automobiles.

Motorcycles Segment in June, with a positive result

BMW Motorrad has passed in the first half of 76.707 motorcycles and Maxi scooters to customers (-17,7%). The turnover amounted to 1.079 million (PY:€.: Of 1,313 million € / -17.8% respectively). EBIT amounted to € 65 million (previous year.: 191 million € / -66,0%). The EBIT margin in the Segment was 6.0% (previous year.: Of 14.5%).

In the second quarter of 41.933 units were handed over (-23,2%). The turnover amounted to € 522 million (previous year.: 727 million € / -28,2%). EBIT amounted to € -7 million (previous year.: € 102 million) and the EBIT margin to around -1.3% (previous year.: 14.0%).

Financial services Segment revenue keeps at a high level In the financial services Segment of the managed contract backlog with end-users to 30. June 2020 5.502.786 contracts (31. December 2019: 5.486.319 / 0,3%). In the first half of 804.452 (previous year: were.: 971.287 / -17.2%), which new contracts with end customers in the Finance and leasing business. Revenues were 14.256 million euros only slightly below previous year’s level (14.510 million € / -1,8%). The result before taxes amounted to € 581 million (previous year.: 1,200 million € / -51,6%).

In the second quarter, the number of new contracts was 354.765 (Vj.: 501.663 / -29,3%). The turnover amounted to 6.658 million (PY:€.: 7.364 million € / -9,6%). The result before taxes amounted to € 97 million (previous year.: € 573 million / -83,1%). Outlook for 2020 confirmed

The BMW Group is also in a politically and economically challenging environment with ambitious goals. The uncertainty regarding the global spread and impact of Coronavirus difficult, however, a precise forecast of the business development for the BMW Group for the year 2020. In the overall vision 2020, the BMW Group continues to assume that in all the important markets, the demand due to the spread of the Coronavirus and the necessary containment measures to be significantly affected will be.

In the Automotive Segment, the global sales are expected in the year 2020 this is significantly below the previous year’s level. As a result, the company expects an EBIT margin in the Segment between 0 and 3 percent.

In the financial services Segment is assumed to be Mainly due to the negative economic Outlook of a decline in new business and a more volatile risk environment. The forecast of the Return on Equity, a modest decline compared to the previous year.

In the motorcycles Segment deliveries are expected in the forecast period is now significantly below the level of the previous year. The EBIT margin should therefore be in the range of 3 to 5 percent.

Taking into account the above-described effects, the group result before tax in 2019 decreased significantly.

The number of employees is slightly below the level of the previous year. The company will use the already communicated to personnel actions, the personnel tag to advance. Due to the current Situation, each setting will be examined very critically.

In this Outlook are not included: a longer-lasting and deep recession in major sales markets, a more pronounced economic slowdown of the economy in China as a result of recessions in other economic regions, significant supply disruptions as a result of increased competitive intensity and the possible impact of a second wave of Infection and the associated mitigation measures. The BMW Group observes the further developments closely and remains prepared to act quickly and purposefully.

The BMW Group-an Overview

Onest half of 2020

1st half of 2019

Change in %

Vehicle Deliveries

Automobiles 1

Units

962,575

1.250,470

-23.0

Of which: BMW1

Units

842.153

1,075,486

-21.7

MINI 1

Units

118,862

172,482

-31.1

Rolls-Royce1

Units

1,560

Two,502

-37.6

Motorcycles

Units

76,707

93.188

-17.7

Employees (year-on-31.12.2019)

125,614

126,016

-0.3

EBIT margin for the Automotive Segment

Percent

-4.0

Two.8

-6,8 %PT.

EBIT margin for the motorcycles Segment

Percent

Six.0

14.5

-8th,5 %PT.

Return on sales before taxes

Percent

1,2

5.8

Of -4.6 % PTS.

Sales

Million €

43,225

48,177

-10.3

Thereof: Automobiles

Million €

Three2,867

41,837

-21.4

Motorcycles

Million €

1,079

1,313

-17.8

Financial services

Million €

14,256

14,510

-1.8

Other Companies

Million €

1

3

-66.7

Consolidations

Million €

-4,978

-9,486

47.5

Profit before financial result (EBIT)

Million €

Seven hundred nine

2,790

€ -74.6 m

Thereof: Automobiles

Million €

-1.325

1,159

Motorcycles

Million €

Sixty five

One hundred ninety one

-66.0

Financial services

Million €

Six hundred nineteen

1,254

-50.6

Other Companies

Million €

Twenty five

6

Consolidations

Million €

1,325

One hundred eighty

Earnings before taxes (EBT)

Million €

Four hundred ninety eight

2,815

-82.3

Thereof: Automobiles

Million €

-1.093

A total of 1,456

Motorcycles

Million €

Sixty four

One hundred eighty seven

-65.8

Financial services

Million €

Five hundred eighty one

1,200

-51.6

Other Companies

Million €

-408

-155

Consolidations

Million €

1,354

One hundred twenty seven

One hundred thirty six

Group tax on profit or loss

Million €

-136

-791

82.8

Consolidated net income 2

Million €

Three hundred sixty two

2,068

-82.5

Earnings per share (ordinary/preference share)

0.49 / 0.50

To 3.06/3.07 from

-84.0 / -83.7

1 In connection with a Review of their sales and related publishing practices, has checked the figures the BMW Group Sales for deliveries and found that certain deliveries were not reported for the correct time periods. For more information on this can be found in the BMW Group annual report 2019 on page 54 f. As an update of the information to be revised, the BMW Group is the data for deliveries in sixteen major markets in retrospect, up to the year 2015.2 value for H1 2019 incl. 44 million € result from discontinued activities.

The BMW Group-an Overview

2nd quarter 2020

2nd quarter of 2019

Change in %

Vehicle Deliveries

Automobiles 1

Units

485,464

649.856

-25.3

Of which: BMW1

Units

430,344

560.189

-23.2

MINI 1

Units

54,413

Eighty eight,337

-38.4

Rolls-Royce1

Units

Seven hundred seven

1,330

-46.8

Motorcycles

Units

41,933

54,582

-23.2

Employees (year-on-31.12.2019)

125,614

126,016

-0.3

EBIT margin for the Automotive Segment

Percent

-10.4

6.5

-16.9 if %PT.

EBIT margin for the motorcycles Segment

Percent

-1,3

14.0

-15,3 %PT.

Return on sales before taxes

Percent

-1.5

8.0

-9,5 %PT.

Sales

Million €

19,973

25,715

-22.3

Thereof: Automobiles

Million €

14,878

Twenty two,624

-34.2

Motorcycles

Million €

Five hundred twenty two

Seven hundred twenty seven

-28.2

Financial services

Million €

6,658

7,364

-9.6

Other Companies

Million €

0

2

Consolidations

Million €

-2,085

-5.002

-58.3

Profit before financial result (EBIT)

Million €

-666

2,201

Thereof: Automobiles

Million €

-1,554

1,469

Motorcycles

Million €

-7

One hundred two

Financial services

Million €

Seventy seven

Six hundred six

-87.3

Other Companies

Million €

Thirteen

2

-34.0

Consolidations

Million €

Eight hundred five

22

-3

Earnings before taxes (EBT)

Million €

-300

2,053

Thereof: Automobiles

Million €

-1,173

1,483

Motorcycles

Million €

-8

One hundred

Financial services

Million €

Ninety seven

Five hundred seventy three

-83.1

Other Companies

Million euros

-67

-97

30.9 m

Consolidations

Million €

Eight hundred forty eight

-6

Group tax on profit or loss

Million €

88

-573

Consolidated net income

Million euros

-212

1,480

Earnings per share (ordinary/preference share)

-0.35 / -0.34

2.21 / 2.22

– / –

1 In connection with a review of its sales and the associated publication practices, the BMW Group checked its sales figures for deliveries and found that certain deliveries were not reported for the correct periods. Further information can be found in the BMW Group Annual Report 2019 on page 54 f. As an update of the information there, the BMW Group revised the data for deliveries in its sixteen most important markets retrospectively until 2015.

If you have any questions, please contact:

Corporate communication

Max-Morten Borgmann, Corporate Communications Phone: 49 89 382-24118, Max-Morten.Borgmann@bmwgroup.com

Eckhard Wannieck, Head of Corporate and Cultural CommunicationPhone: +49 89 382-24544, Eckhard.Wannieck@bmwgroup.com

Internet: www.press.bmw.deE-mail: presse@bmwgroup.com

The BMW Group with its brands BMW, MINI, Rolls-Royce and BMW Motorrad is the world’s leading premium manufacturer of automobiles and motorcycles and a provider of premium financial and mobility services. The BMW Group production network comprises 31 production and assembly sites in 15 countries; The company has a global sales network with representatives in over 140 countries, and in 2019 the BMW Group achieved sales of more than 2.5 million automobiles and over 175,000 motorcycles worldwide. Earnings before taxes in financial year 2019 amounted to € 7.118 billion and sales to € 104.210 billion. As of December 31, 2019, the company had 126,016 employees worldwide, and long-term thinking and responsible action have always been the basis of the BMW Group’s economic success. The company has firmly anchored ecological and social sustainability along the entire value chain, comprehensive product responsibility and a clear commitment to conserving resources in its strategy.

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MIL OSI

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure need be perfect.

MIL Translation OSI