– Check against delivery \u2013<\/p>\n
\u00a0<\/p>\n
\n SLIDE 2: BMW Group Half-Year Report to 30 June 2026\n<\/p>\n
\u00a0<\/p>\n
Ladies and Gentlemen,<\/p>\n
Good morning.<\/p>\n
\u00a0<\/p>\n
Our second-quarter results reflect the challenging market conditions
\n the BMW Group is currently facing, as outlined in our ad-hoc
\n communication on June 16th.<\/p>\n
\u00a0<\/p>\n
During the quarter, both the Chinese automotive market and BMW Group
\n retail sales in China continued to decline.<\/p>\n
\u00a0<\/p>\n
At the same time, higher export volumes from China increased
\n competitive intensity in other markets, with a particular impact on
\n our business in the Asia-Pacific region.<\/p>\n
\u00a0<\/p>\n
Together with the effects of the ongoing conflict in the Middle East,
\n these developments weighed on both our sales and financial performance.<\/p>\n
\u00a0<\/p>\n
While BMW Group deliveries increased by 7.6 percent in Europe and
\n 11.9 percent in the US, this was not sufficient to offset the decline
\n in China and Asia-Pacific.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 3: BMW Group Performance in Q1 and H1 2026\n<\/p>\n
\u00a0<\/p>\n
Group revenues amounted to 31.3 billion euros in the second quarter
\n and 62.3 billion euros in the first six months.<\/p>\n
\u00a0<\/p>\n
Group earnings before tax totalled 1.7 billion euros, a decline of 35
\n percent compared to the second quarter of last year.<\/p>\n
Year-to-date through June, Group EBT declined by 29.4 percent
\n year-on-year to around 4 billion euros.<\/p>\n
\u00a0<\/p>\n
This resulted in a Group EBT margin of 5.4 percent in the second
\n quarter and 6.5 percent for the first half of the year.<\/p>\n
\u00a0<\/p>\n
In the Automotive Segment, EBIT amounted to 629 million euros in the
\n second quarter, corresponding to a reported EBIT margin of 2.3 percent.<\/p>\n
\u00a0<\/p>\n
This reported margin includes a burden from elevated tariffs of 1.25
\n percentage points in the second quarter.<\/p>\n
\u00a0<\/p>\n
It also includes the depreciation from the BBA purchase price
\n allocation, which reduced the EBIT margin by 1.2 percentage points.<\/p>\n
\u00a0<\/p>\n
After six months, Automotive EBIT amounted to around 2 billion euros,
\n with an EBIT margin of 3.6 percent.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 4: Automotive Retail Units, BEV Units and Auto Revenue\n<\/p>\n
\u00a0<\/p>\n
Let me now provide more detail on the performance of the Automotive Segment.<\/p>\n
\u00a0<\/p>\n
In the second quarter, the BMW Group delivered around 591,000 BMW,
\n MINI and Rolls-Royce vehicles to customers, 4.9\u00a0percent less than in
\n the same quarter last year.<\/p>\n
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Looking at the development by brand, BMW delivered around 509,000
\n vehicles in the second quarter, down 7.7 percent year-on-year.<\/p>\n
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The MINI brand continued to perform well. Deliveries were up 17.1
\n percent compared to the prior-year quarter, supported by strong demand
\n for our all-electric MINI models.<\/p>\n
\u00a0<\/p>\n
This brings me to our BEV retail sales.<\/p>\n
\u00a0<\/p>\n
Between April and June, the BMW Group delivered around 117,000
\n all-electric vehicles to customers worldwide.<\/p>\n
Including plug-in hybrids, sales of electrified vehicles amounted to
\n around 163,000 units.<\/p>\n
\u00a0<\/p>\n
This corresponds to a BEV share of 19.8 percent and an electrified
\n vehicle share of 27.6 percent of total Group deliveries in the second quarter.<\/p>\n
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Europe remains the main growth driver for our all-electric vehicle sales.<\/p>\n
\u00a0<\/p>\n
Supported by the start of customer deliveries of the all-new BMW
\n iX3*, BEV sales in Europe increased by 38 percent year-on-year to more
\n than 81,000 units.<\/p>\n
Almost one in three vehicles sold in Europe was all-electric.<\/p>\n
\u00a0<\/p>\n
This BEV performance in Europe supports our expectation that we will
\n once again meet our CO2 emissions targets in the EU in 2026.<\/p>\n
\u00a0<\/p>\n
Automotive Segment revenues declined by 7.7 percent to 27.2 billion
\n euros in the second quarter.<\/p>\n
\u00a0<\/p>\n
The decrease was primarily driven by lower sales volumes and also
\n reflects the highly competitive market environment.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 5: BMW Group: Growth in Europe and the US partially
\n offset weaker sales in China and APAC\n<\/p>\n
\u00a0<\/p>\n
Let\u2019s now take a closer look at our sales performance across the
\n major regions.<\/p>\n
\u00a0<\/p>\n
In Europe, our largest sales region, retail sales increased by 7.6
\n percent year-on-year.<\/p>\n
\u00a0<\/p>\n
In the Americas, retail sales increased by 9.4 percent year-on-year,
\n driven primarily by the US, where deliveries grew significantly by
\n 11.9 percent.<\/p>\n
In the US, the BMW brand once again outperformed the overall market
\n in the second quarter.<\/p>\n
Higher deliveries of vehicles with internal combustion engines more
\n than offset lower BEV sales.<\/p>\n
\u00a0<\/p>\n
In China, the downturn in the automotive market accelerated further
\n during the second quarter, predominantly in the non-electrified
\n vehicle segment.<\/p>\n
In this highly competitive environment, BMW Group retail sales
\n declined by 30.2 percent between April and June.<\/p>\n
For the first six months, retail sales in China were down 20.4
\n percent, in line with the overall market decline of 20.2 percent.<\/p>\n
Against this backdrop, our focus remains on achieving the right
\n balance between sales volumes, transaction prices, and profitability \u2013
\n both for the BMW Group and our dealer partners.<\/p>\n
\u00a0<\/p>\n
In our sales region Asia-Pacific, Eastern Europe, Middle East, and
\n Africa, deliveries declined by around 9,000 vehicles or 10.9 percent year-on-year.<\/p>\n
Several markets in the region were affected by spillover effects from
\n China as well as weaker consumer sentiment resulting from the ongoing
\n conflict in the Middle East.<\/p>\n
Let\u2019s now take a closer look at the year-on-year development of
\n Automotive EBIT on the following slide.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 6: Automotive Segment EBIT in Q2 2026\n<\/p>\n
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Changes in currencies had a negative impact of around 400 million
\n euros on EBIT, while raw material positions were broadly neutral
\n compared to the prior-year quarter.<\/p>\n
\u00a0<\/p>\n
The adverse FX developments seen in the first quarter continued into Q2.<\/p>\n
We expect FX headwinds also in the second half of the year, although
\n at a lower level than in the first six months.<\/p>\n
\u00a0<\/p>\n
The net effect of volume, model mix and pricing resulted in a
\n negative impact of around 1.8 billion euros compared to Q2 2025.<\/p>\n
\u00a0<\/p>\n
A large share of this impact was related to China, which was also the
\n main driver behind our guidance update in June.<\/p>\n
\u00a0<\/p>\n
Besides lower sales volumes, the decline in this position mainly
\n reflects the highly competitive market environment across a number of
\n regions, as well as weaker consumer sentiment in selected markets.<\/p>\n
\u00a0<\/p>\n
Since we fully consolidate BBA, the current headwinds from our
\n business in China are fully reflected in Automotive EBIT.<\/p>\n
\u00a0<\/p>\n
Research and development expenses recognized in the P&L increased
\n by around 100 million euros year-on-year.<\/p>\n
This was mainly due to an increase in depreciation of around 150
\n million euros related to capitalized development costs from previous years.<\/p>\n
\u00a0<\/p>\n
As in the first quarter, Group R&D expenditure remained below the
\n prior-year level in Q2.<\/p>\n
Total R&D expenditure amounted to less than 2 billion euros, a
\n decrease of 3.8 percent year-on-year.<\/p>\n
\u00a0<\/p>\n
This is in line with the trend of R&D and capital expenditure
\n reduction that will continue for the remainder of the year.<\/p>\n
\u00a0<\/p>\n
The R&D ratio according to the German Commercial Code came in at
\n 6.3 percent for the second quarter and 6.0 percent for the first half
\n of the year.<\/p>\n
Reducing our operating cost base remains an important priority.
\n Accordingly, selling and administrative expenses decreased by around
\n 200 million euros year-on-year in Q2.<\/p>\n
\u00a0<\/p>\n
Other Cost Changes provided a positive effect of around 1.2 billion
\n euros compared to the second quarter of 2025.<\/p>\n
This reflects a number of factors, including lower warranty and
\n manufacturing costs as well as tariff-related effects.<\/p>\n
\u00a0<\/p>\n
Overall, we reduced expenditure by 400 million euros in the second
\n quarter and 900 million euros year-to-date through June.<\/p>\n
\u00a0<\/p>\n
Automotive EBIT for the second quarter amounted to around 600 million euros.<\/p>\n
\u00a0<\/p>\n
After six months, it totalled 2 billion euros.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 7: Automotive Segment Free Cash Flow in Q2 2026\n<\/p>\n
\u00a0<\/p>\n
Free cashflow in the Automotive Segment amounted to around 500
\n million euros in the second quarter of 2026.<\/p>\n
\u00a0<\/p>\n
The net change in working capital reduced free cashflow by around 1.3
\n billion euros.<\/p>\n
This was due to an inventory build-up during the quarter, as
\n production exceeded sales volumes.<\/p>\n
We have already made the necessary adjustments to our production
\n planning, with the objective of bringing inventories back towards the
\n prior-year level by year-end.<\/p>\n
The net effect of capital expenditure and depreciation contributed
\n around 600 million euros to free cashflow.<\/p>\n
As in the first quarter, depreciation exceeded declining capital
\n expenditure in Q2, providing a positive contribution to free cashflow.<\/p>\n
Throughout the year 2026, depreciation will remain above capital expenditure.<\/p>\n
\u00a0<\/p>\n
The capex ratio was 4.1 percent for the second quarter and 3.1
\n percent for the first six months.<\/p>\n
In the first half of the year, we have reduced capex by more than 30 percent.<\/p>\n
\u00a0<\/p>\n
The change in provisions reduced free cashflow by 500 million euros
\n in Q2. This includes the consumption of warranty provisions.<\/p>\n
\u00a0<\/p>\n
Other items increased free cashflow by 1.1 billion euros. This
\n position covers multiple topics, including accrued expenses and
\n interest received.<\/p>\n
\u00a0<\/p>\n
In the first six months, free cashflow amounted to 1.3 billion euros.<\/p>\n
\u00a0<\/p>\n
For the full year, the BMW Group is targeting an Automotive free
\n cashflow above 2.5 billion euros.<\/p>\n
\u00a0<\/p>\n
Ladies and Gentlemen,<\/p>\n
\u00a0<\/p>\n
The BMW Group remains committed to its shareholder return strategy,
\n which includes both dividend payments and share buybacks.<\/p>\n
\u00a0<\/p>\n
We completed the second tranche of our third share buyback program on
\n June 26th, two months ahead of the original schedule.<\/p>\n
\u00a0<\/p>\n
The third and final tranche started on July 1st and is expected to be
\n completed no later than November 30th, five months earlier than
\n originally scheduled.<\/p>\n
\u00a0<\/p>\n
Once completed, the third share buyback program will have reached its
\n full volume of 2 billion euros.<\/p>\n
\u00a0<\/p>\n
For 2026, this represents a capital return of 1.25 billion euros to
\n our shareholders under the current share buyback program.<\/p>\n
\u00a0<\/p>\n
The acceleration of the third tranche underlines our focused approach
\n to capital allocation.<\/p>\n
At the BMW Group, we take a long-term perspective to create sustained
\n value for all our stakeholders.<\/p>\n
\u00a0<\/p>\n
For us, financial performance and responsible business management go
\n hand in hand.<\/p>\n
\u00a0<\/p>\n
Alongside our environmental commitments, this also means maintaining
\n high social and ethical standards across our operations and supply
\n chains worldwide.<\/p>\n
\u00a0<\/p>\n
In an evolving competitive landscape, we believe that customers
\n worldwide will increasingly value these standards as an important
\n differentiating factor.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 8: Financial Services Segment YTD June 2026\n<\/p>\n
\u00a0<\/p>\n
Let\u2019s now turn to our Financial Services Segment.<\/p>\n
\u00a0<\/p>\n
In the first half of the year, the number of new contracts concluded
\n with retail customers increased by 5 percent to 866,000 contracts.<\/p>\n
\u00a0<\/p>\n
The penetration rate for lease and loan products increased to 52.9
\n percent in the first six months.<\/p>\n
\u00a0<\/p>\n
This development was supported by changes in the competitive
\n environment in China. Since mid-2025, local banks have significantly
\n reduced commissions related to the brokering of financing and
\n insurance products for end customers.<\/p>\n
Adjusted for FX effects, total new business volume grew by 6.1
\n percent to about 33 billion euros.<\/p>\n
\u00a0<\/p>\n
Segment earnings for the first half of the year amounted to around 1
\n billion euros, down 15.4 percent year-on-year.<\/p>\n
\u00a0<\/p>\n
This decline was mainly driven by an addition to an existing
\n provision for a consumer compensation program in the UK in the first quarter.<\/p>\n
\u00a0<\/p>\n
In the second quarter, Financial Services earnings increased by 15.7
\n percent year-on-year, supported by a larger portfolio volume.<\/p>\n
\u00a0<\/p>\n
In the first half of the year, the credit loss ratio across the
\n entire credit portfolio remained low at 0.27 percent.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 9: Motorcycles Segment in Q2 2026\n<\/p>\n
\u00a0<\/p>\n
In the Motorcycles Segment, deliveries declined slightly by 1.9
\n percent year-on-year.<\/p>\n
\u00a0<\/p>\n
Segment EBIT increased to 141 million euros, resulting in an EBIT
\n margin of 15.2 percent.<\/p>\n
\u00a0<\/p>\n
\n SLIDE 10: Outlook 2026\n<\/p>\n
\u00a0<\/p>\n
Ladies and Gentlemen,<\/p>\n
\u00a0<\/p>\n
Based on the results for the first half of the year, we confirm our
\n updated full-year guidance communicated in June.<\/p>\n
\u00a0<\/p>\n
Group earnings before tax are expected to decrease significantly.<\/p>\n
\u00a0<\/p>\n
In the Automotive Segment, we expect deliveries to decrease slightly
\n and the EBIT margin to come in within a range of 1 to 3 percent.<\/p>\n
This includes a burden of up to 1.25 percentage points for the
\n workforce restructuring program agreed with the Works Council.<\/p>\n
\u00a0<\/p>\n
The EBIT margin in the Motorcycles Segment is expected to be between
\n 4 and 6 percent.<\/p>\n
\u00a0<\/p>\n
In the Financial Services Segment, we expect a Return on Equity in
\n the range of 13 to 16 percent.<\/p>\n
\n SLIDE 11: More speed, more efficiency: BMW Group realigns for
\n tougher competition.\n<\/p>\n
\u00a0<\/p>\n
Ladies and Gentlemen,<\/p>\n
\u00a0<\/p>\n
Our second-quarter results reflect the challenging market environment
\n we outlined in our guidance update in June.<\/p>\n
\u00a0<\/p>\n
We continue to address the short-term challenges with targeted
\n operational measures and disciplined management of costs, R&D
\n spending and capital expenditure.<\/p>\n
\u00a0<\/p>\n
At the same time, we are intensifying our structural efforts to make
\n the BMW Group faster, leaner and more efficient in the years ahead.<\/p>\n
\u00a0<\/p>\n
With our strong product pipeline coming to market, and with the
\n expertise and commitment of our employees, the BMW Group has a solid
\n foundation for the years ahead.<\/p>\n
\u00a0<\/p>\n
This is especially important as our competitive landscape is changing
\n at a rapid pace.<\/p>\n
\u00a0<\/p>\n
In this environment, our focus is clear: to manage the current
\n headwinds with discipline, to strengthen the resilience of our
\n business, and to lay the foundation for sustained, long-term value for
\n all our stakeholders.<\/p>\n
\u00a0<\/p>\n
Thank you.<\/p>\n","protected":false},"excerpt":{"rendered":"– Check against delivery \u2013 \u00a0 SLIDE 2: BMW Group Half-Year Report to 30 June 2026 \u00a0 Ladies…\n","protected":false},"author":2,"featured_media":22682,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20955],"tags":[6213,4200,24668,24666,24667,666],"class_list":["post-64691","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bmw","tag-bmw","tag-corporate","tag-corporate-events","tag-facts","tag-figures","tag-finance"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/64691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=64691"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/64691\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/22682"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=64691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=64691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=64691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}