Statement Oliver Zipse, Chairman of the Board of Management of BMW AG, Conference Call Interim Report to 31 March 2021

Good morning, Ladies and Gentlemen. 

The BMW Group is a global company.

We leveraged this strategic strength both during the financial year 2020 and in the first quarter of 2021. 

When the market situation is difficult in individual regions of the world, the other markets carry us through. 

Since the start of the pandemic, we have done everything possible to create a safe working environment for our employees. We also offer safe and contact-free delivery of vehicles to customers. 

In more than 60 markets we have set up Mobile Sales Offices. Our new Customer, Brands and Sales System is taking advantage of the momentum and growing acceptance of digital services that has been building over the past year. 

Our strong results underline the viability of our business model – even during one of the worst crises the global economy has faced. It is robust, in demand all over the world and full of innovations. 

In many areas, we have picked up the pace once again. 

I would like to give you a brief overview, focusing on three main points: 

1. We are on course for growth – and we are growing profitably.
2. We are growing sustainably and have a clear roadmap into the future.
3. We are shaping the technology for tomorrow’s mobility. 

Let's start with the first point. 

The BMW Group delivered excellent results in the first quarter of 2021. 

• Markets worldwide are recovering.
• Our diverse product portfolio is reaching large groups of customers.
• And our ongoing efficiency measures are paying off. 

This shows clearly: our strategy is having a real impact. 

The Automotive Segment delivered an EBIT margin of 9.8 percent in the first quarter – back within our strategic medium-term target range for the first time in ten quarters. As in the past, this EBIT margin does not include the at-equity result from our BBA joint venture in China. 

Another indicator of our operating strength is our free cash flow of 2.5 billion euros in the Automotive Segment – our best figure ever for a first quarter. 

Our first-quarter deliveries also reached a new all-time high. Compared with the first quarter of 2019 – in other words, the comparable period before the crisis – Group sales increased by six percent. 

Our total market share worldwide has climbed up to 3.3 percent – from 2.9 percent in the same period 2019. 

Our performance in the Chinese market stands out, in particular. Compared to the first quarter of 2019 – again, pre-crisis – our China sales increased by more than 36 percent. 

We recently presented our model line-up for our largest market at Auto Shanghai 2021. With highly innovative, digitalised, electric and, above all, exceptionally high-quality products, like the BMW iX3, the BMW iX and the BMW i4, we intend to sustain our growth in China. 

Our electrified models are also in high demand globally. In the first quarter, we were the biggest manufacturer of plug-in hybrids worldwide. 

With more than 70,000 electrified vehicles sold in the first three months of 2021, we are on track to have a total of one million fully-electric vehicles and plug-in hybrids on the roads by the end of the year. 

This also illustrates the success of our flexible architecture strategy. 

The BMW iX3 is receiving consistently outstanding ratings from the automotive press: not only because of its many impressive characteristics – such as its quality, comfort, connectivity, operating ease and dynamic performance – but also its range. 

Its efficient drive train puts it on a par with electric models with the highest ranges among all brands within its segment. 

Just yesterday, I met with journalists testing pre-production models of the BMW i4. This car will put e-mobility right at the heart of the BMW brand. 

I am extremely confident we will be able to build on our e-mobility successes with the BMW i4 and BMW iX. 

Growth remains our industry’s strongest currency. 

Before the end of the decade, we want to reach the milestone of three million delivered vehicles annually. As far as the BMW Group is concerned, we are also growing profitably and sustainably – and we will make sure this continues. 

That brings me to my second point:

We are growing sustainably. 

Sustainability is the new language that connects the world. 

The three major world markets, Europe, the US and China, as well as other industrial nations, have set themselves ambitious goals on the road to climate neutrality. They have recently confirmed – and even stepped up – these targets. 

The next big, binding step will be the year 2030 – also for the BMW Group. 

We have geared our company entirely towards sustainability. By 2030, we aim to reduce our actual carbon footprint per vehicle by at least a third from 2019 levels – in a verifiable and transparent manner, everywhere around the world. 

During our Annual Conference, we published an integrated BMW Group Report for the first time, which documents our progress and, most importantly, gives equal weighting to our sustainable development and financial indicators. 

A company does not become sustainable simply by flipping a switch or buying certificates. What counts is not alleged sustainability – but verifiable measures that deliver a real impact. 

That is why we joined the Science Based Targets Initiative. 

We think about sustainability in a way that goes far beyond emissions. 

Energy and resource consumption will be the next, much bigger issue.

Raw materials are becoming more expensive. Water and many mineral resources are scarce and valuable commodities. 

We are seeing that especially right now. This is why it is so important to think in terms of a circular model and reduce our use of materials from the outset. 

To achieve this, we are relying on partnerships and collaboration across our industry, with NGOs as well as political institutions.

This requires hard work, investment and an ongoing commitment.

We firmly believe: we will add value for society in this way, and also become a stronger company in the long term. 

Further information in the press release to download