BMW Group cautiously optimistic for 2013 (BILD)

München (ots) -

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http://www.presseportal.de/galerie.htx?type=obs -

- Ambitious targets in challenging environment
- Sales volume set to rise to new record figure in 2013
- Earnings before tax expected at previous year's level
- High rate of expenditure for new technologies and models
- EBIT margin between 8% to 10% targeted for Automotive segment
- All Strategy Number ONE interim targets fully attained
- Reithofer: Several hundred advance orders received for BMW i3

After achieving a record-breaking year in 2012, the BMW Group's
outlook for the current 12-month reporting period is cautiously
optimistic, based on ambitious targets set amid a persisting
difficult and volatile economic environment. "We are aiming to
achieve a further rise in unit sales in the current year and hence a
new sales volume record", stated Norbert Reithofer, Chairman of the
Board of Management of BMW AG, at the Annual Accounts Press
Conference in Munich on Tuesday.

In view of the strong demand for its vehicles, the BMW Group will
continue to invest in boosting capacity in 2013, thus enabling it to
remain successfully on course. Development costs for new technologies
and vehicle concepts will also continue to rise. 2013 alone will see
the launch of eleven new models. By the end of 2014, some 25 new
models will have been added to the range, ten of them totally new
models.

"Due to high levels of expenditure for new technologies and models
as well as investment in the production network, we expect to report
Group profit before tax on a similar scale to the record year 2012",
continued Reithofer.

Despite the additional costs referred to, the Automotive segment
continues to forecast an EBIT margin of between 8% and 10% for the
current year. This corridor is also seen as a sustainable EBIT margin
for the time beyond 2013. However, depending on political and
economic developments, actual margins could end up being above or
below the targeted range.

The Motorcycles segment forecasts further sales volume growth in
the current year for the BMW brand thanks to new attractive models
such as the R 1200 GS, which should, in turn, bring about a further
rise in segment revenues and earnings.

The Financial Services segment is also expected to put in another
strong performance and remains committed to achieving a return on
equity of at least 18%.

Forecasts for the current year are based on the assumption that
worldwide economic conditions will not change significantly.

Strategy Number ONE: First third successfully completed

The BMW Group has been tirelessly pursuing its Strategy Number ONE
with great success since 2007, enabling it to achieve the intended
impact of becoming significantly more profitable and competitive. The
Group is also extremely well placed to meet future challenges: "We
have now successfully implemented the first third of our strategy.
All interim targets have been fully attained", emphasised Reithofer.

Group profit before tax doubled during the period between 2007 and
2012. At 10.9%, the Automotive segments EBIT margin exceeded the
targeted corridor of 8% to 10% during the past year. By way of
comparison: the segment EBIT margin in 2006 was still only at a level
of 6.4%. The return on equity of the Financial Services segment in
2012 was 21.2% (Number ONE target: >18%). The improvement in reported
figures is also reflected in the share price: between the end of 2007
and the end of 2012, the price of BMW common stock rose by more than
70 percent.

Strategy Number ONE has also seen the birth of a whole host of
innovative vehicle concepts - including the BMW i3 - as well as
remarkable advances in terms of reducing fuel consumption thanks to
EfficientDynamics technology. As from the beginning of 2013, the
emissions of 73 BMW Group models do not exceed 140 grams of CO2 per
kilometre driven; the equivalent figure five years ago was 27 models.
The average fuel consumption of the fleet is 5 litres of diesel and
6.3 litres of petrol per 100 kilometres driven.

The BMW Group will continue its rigorous implementation of
Strategy Number ONE through to 2020, and remain on a profitable
growth course. The target for 2016 is to sell more than two million
BMW, MINI and Rolls-Royce vehicles.

Several hundred advance orders received for BMW i3

Electromobility will be very much in the spotlight for the BMW
Group in 2013. "The future belongs to those who dare to venture",
remarked Reithofer. The first pre-series BMW i3 came off the
production lines in January 2013. This innovative vehicle, which has
been specifically designed to run with zero emissions for use in an
urban environment, will come onto the market by the end of the year.
"Several hundred advance orders have already been received for the
BMW i3", added Reithofer.

The BMW i3 is designed with a carbon-fibre-reinforced plastic
(CFRP) passenger compartment, an aluminium chassis, and sets new
standards in the field of lightweight construction. The i3 will be
250 to 350 kilograms lighter than a conventional electric car.

The BMW i3 has an approximate range of 150 kilometres, which -
based on experience gleaned from the MINI E and BMW Active E test
fleets - is absolutely sufficient in most circumstances. Customers
can also opt to increase this capability with a so-called Range
Extender. Production times are reduced significantly by employing
unique production methods and a significantly lower number of
assembly parts. The BMW i3 will require only half the time needed to
produce a conventional vehicle.

To have any chance of mastering the growing ecological challenges
in the world´s metropolitan areas, there is no getting around the use
of zero-emission drive technology. "In the medium term, real
megacities have no choice but to encourage the use of alternative
drive systems", underlined Reithofer. Electric vehicles in Beijing,
for instance, are already exempted from the allocation procedure for
number plates and from fees.

Reithofer: 2012 best year in BMW Group's corporate history

The BMW Group can look back on an excellent 2012 financial year:
"The past year has been the most successful year in the BMW Group´s
corporate history, with new records achieved for sales volume,
revenues and Group earnings" stated Reithofer.

Revenues increased year-on-year by 11.7% to reach a new high of
EUR 76,848 million (2011: EUR 68,821 million). Despite greater
expenditure on new technologies and increased personnel costs,
earnings also climbed to new record levels, with profit before
financial result (EBIT) up by 3.5% to EUR 8,300 million (2011: EUR
8,018 million), profit before tax (EBT) up by 5.9% to EUR 7,819
million (2011: EUR 7,383 million) and Group net profit up by 4.4% to
EUR 5,122 million (2011: EUR 4,907 million).

The total number of BMW, MINI and Rolls-Royce brand vehicles
delivered to customers worldwide in 2012 rose by 10.6% to a new high
of 1,845,186 units (2011: 1,668,982 units), thus enabling the BMW
Group to maintain its position as the world's leading premium
manufacturer.

Capital expenditure and R&D ratio within targeted corridor

Capital expenditure rose sharply (+41.9%) from EUR 3,692 million
in 2011 to EUR 5,240 million in 2012 due to the number of new models,
increased production capacities at various sites and preparation for
the start-up of the BMW i. The capital expenditure ratio increased to
6.8% (2011: 5.4%). Research and development expenditure went up by
17.2% to EUR 3,952 million (2011: EUR 3,373 million), mostly on
projects aimed at securing the Group?s future, resulting in an R&D
ratio of 5.1% (2011: 4.9%).

Dividend to increase sharply

The Board of Management and the Supervisory Board will propose to
shareholders at the Annual General Meeting on 14 May 2013 that the
dividend be increased to a new high level of EUR 2.50 (2011: EUR
2.30) per share of common stock and EUR 2.52 (2011: EUR 2.32) per
share of preferred stock. Based on these figures, the total
distribution will rise to EUR 1,640 million (2011: EUR 1,508
million), corresponding to a distribution ratio of 32.0% (2011:
30.7%).

Automotive segment: EBIT rises to EUR 7.62 billion

The BMW, MINI and Rolls-Royce brands all posted new sales volume
records in 2012. Automotive segment revenues went up by 11.0% to EUR
70,208 million (2011: EUR 63,229 million), thanks to the sharp rise
in the number of vehicles sold. The segment EBIT rose to EUR 7,624
million (2011: EUR 7,477 million/+2.0%), resulting in an EBIT margin
of 10.9%. Profit before tax amounted to EUR 7,195 million (2011: EUR
6,823 million/+5.5%).

Free cash flow for the Automotive segment totalled EUR 3,809
million, an improvement of EUR 643 million on the previous year and
well above the target of over EUR 3 billion set for the full year.

Sales of BMW brand cars increased by 11.6% to 1,540,085 units
(2011: 1,380,384 units), thus exceeding the mark of 1.5 million units
for the first time in a single financial year. The MINI brand
surpassed the sales volume threshold of 300,000 units for the first
time in a 12-month reporting period, with sales volume up by 5.8% to
301,526 units (2011: 285,060 units). Rolls-Royce was the clear market
leader in the ultra-luxury segment in 2012. In total, 3,575 units
were sold during the year (2011: 3,538 units/+1.0%),

Motorcycles segment also achieves sales volume record

117,109 BMW and Husqvarna brand motorcycles were sold worldwide
during the past year (2011: 113,572 units; +3.1%), a new sales volume
record for the segment.

Sales of BMW brand motorcycles went up by 2.0% to 106,358 units
(2011: 104,286 units), while Husqvarna handed over 10,751 motorcycles
to customers (2011: 9,286/+15.8%). In future, the Motorcycles segment
intends to focus exclusively on the BMW brand. At the end of January
2013, the BMW Group signed a contract for the sale of Husqvarna with
the Austrian company Pierer Industrie AG.

Segment revenues were 3.8% higher at EUR 1,490 million (2011: EUR
1,436 million). EBIT fell to EUR 9 million (2011: EUR 45
million/-80.0%) as a result of the new direction being taken for the
BMW Group's motorcycles business. Profit before tax decreased
accordingly to EUR 6 million (2011: EUR 41 million/-85.4%).

Financial Services segment remains on growth course

The Financial Services segment continued to perform well in the
past year. Revenues went up by 11.7% to EUR 19,550 million (2011: EUR
17,510 million). Profit before tax came in at EUR 1,561 million
(2011: EUR 1,790 million/-12.8%), whereby the decrease in segment
earnings was primarily a reflection of the previous year's extremely
high figures. In 2011, the segment recorded exceptional income of EUR
439 million resulting from the reduction in provisions for residual
value and bad debt risks. Business with end-of-contract leasing
vehicles gave rise to an exceptional gain of EUR 124 million in 2012.

The number of new lease and credit financing contracts signed
worldwide (1,341,296) was 12.1% up on the previous year. The number
of lease and financing contracts in place with dealers and retail
customers at the end of the year rose by 7.1% to a total of 3,846,364
contracts.

Workforce up by 5.6%

The BMW Group´s workforce increased during the period to 31
December 2012, growing by 5.6% over the year to 105,876 employees
(2011: 100,306 employees) worldwide. The BMW Group needs engineers
and skilled workers, in order to keep pace with the continued strong
demand for the BMW Group´s cars, forge ahead with innovations and
develop new technologies.

1,376 young people - 1,200 of them in Germany - started their
vocational training with the BMW Group at the beginning of the new
training year. The number of trainees in Germany therefore increased
by more than 10%. At the end of 2012, the BMW Group employed a total
of 4,266 apprentices worldwide.

2012 2011* Change in %
Deliveries to customers
Automotive 1,845,186 1,668,982 10.6

Thereof:
BMW units 1,540,085 1,380,384 11.6
MINI units 301,526 285,060 5.8
Rolls-Royce units 3,575 3,538 1.0

Motorcycles units 117,109 113,572 3.1

BMW units 106,358 104,286 2.0

Husqvarna units 10,751 9,286 15.8

Workforce(1) 105,876 100,306 5.6

Revenues EUR million 76,848 68,821 11.7

Thereof:
Automotive EUR million 70,208 63,229 11.0
Motorcycles EUR million 1,490 1,436 3.8
Financial Services EUR million 19,550 17,510 11.7
Other entities EUR million 5 5 -
Eliminations EUR million -14,405 -13,359 -

Capital expenditure EUR million 5,240 3,692 41.9

Operating cash flow EUR million 9,167 8,110 13.0
Profit before
financial result EUR million 8,300 8,018 3.5

Thereof:
Automotive EUR million 7,624 7,477 2.0
Motorcycles EUR million 9 45 -80.0
Financial Services EUR million 1,558 1,763 -11.6
Other entities EUR million 58 -19 -
Eliminations EUR million -949 -1,248 -

Profit before tax EUR million 7,819 7,383 5.9

Thereof:
Automotive EUR million 7,195 6,823 5.5
Motorcycles EUR million 6 41 -85.4
Financial Services EUR million 1,561 1,790 -12.8
Other entities EUR million -6 -168 -
Eliminations EUR million -937 -1,103 -

Income taxes EUR million -2,697 -2,476 8.9

Net profit EUR million 5,122 4,907 4.4

Earnings
per share(2) EUR 7.77/7.79 7.45/7.47 4.3
Dividend per share
of common/preferred
stock EUR 2.50/2.52 2.30/2.32 -

*Figures for 2011 partially adjusted

*The result for the financial year 2011 includes exceptional
income of EUR 524 million in the Automotive and Financial
Services segments, reflecting the reduction in risk provision for
residual value and bad debt risks. Business with end-of-contract
leasing vehicles gave rise to an exceptional gain of EUR 124
million in the Financial Services segment in 2012

(1) Figures exclude dormant employment contracts, employees in the
work and non-work phases of pre-retirement part-time working
arrangements and low wage earners
(2) Earnings per share of common stock/preferred stock

The BMW Group

The BMW Group is the leading premium manufacturer of automobiles
and motorcycles in the world with its BMW, MINI and Rolls-Royce
brands. As a global company, the BMW Group operates 28 production and
assembly facilities in 13 countries and has a global sales network in
more than 140 countries.

In 2012, the BMW Group sold about 1.85 million cars and more than
117,000 motorcycles worldwide. The profit before tax for the
financial year 2012 was euro 7.82 billion on revenues amounting to
euro 76.85 billion. At 31 December 2012, the BMW Group had a
workforce of 105,876 employees.

The success of the BMW Group has always been built on long-term
thinking and responsible action. The company has therefore
established ecological and social sustainability throughout the value
chain, comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy. As a result
of its efforts, the BMW Group has been ranked industry leader in the
Dow Jones Sustainability Indexes for the last eight years.

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For questions please contact:
Corporate Communications

Mathias Schmidt, Business, Finance and Sustainability Communications
Telephone: + 49 89 382-24118, Fax: 49 89382-24418
mathias.m.schmidt@bmw.de

Alexander Bilgeri, Head of Business, Finance and Sustainability
Communications Telephone: +49 89 382-24544, Fax: +49 89382-24418
alexander.bilgeri@bmw.de

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