Stephan Schaller, President BMW Motorrad March 19, 2015 ANALYST AND INVESTOR CONFERENCE 2015 BMW MOTORRAD
THE MOTORCYCLE MARKET >500 CCM HAS BEEN CUT IN HALF DURING THE LAST SEVEN YEARS. OUR MARKET SHARE HAS DOUBLED IN THE SAME PERIOD.
MARKET SHARE VS. MARKET DEVELOPMENT INITIAL SIGNS OF A MARKET RECOVERY (G7 MARKETS) MR&SC Market >500cc in thsd. units Market share BMW 1,600 1,400 1,200 1,169 MC& SC > 500cc 1,199 1,226 MA% MR & SC 1,305 1,372 1,501 1,508 1,417 11.1% 12.2% 12.4% 13.9% 14.1% 16.0% 14.0% 12.0% 1,000 800 7.2% 7.7% 7.6% 7.1% 7.1% 6.7% 6.8% 991 7.2% 8.8% 881 858 855 829 850 10.0% 8.0% 600 6.0% 400 4.0% 200 2.0% 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 0.0% *2014 global market size number is still preliminary.
BMW MOTORRAD THE ULTIMATE RIDING MACHINE SINCE 1923 140,000 Retail 120,000 100,000 80,000 60,000 40,000 20,000 0 1923 1933 1943 1953 1963 1973 1983 1993 2003 2014 Retail
2014 PRODUCT HIGHLIGHTS 5 PRODUCT LAUNCHES 2014 R ninet S 1000 R C evolution R 1200 RT R 1200 GS Adventure
WE ARE MARKET LEADER IN 26 COUNTRIES NOW UP FROM 16 IN 2013 Guatemala 37,4 % MS Costa Rica 30,3 % MS Panama 25 % MS Ecuador 27,7 % MS Peru 22,5 % MS Denmark 23,9% MS Netherlands 23,9% MS Belgium 25,8% MS Germany 25,6% MS Spain 26,7% MS Norway 19,7% MS Algeria 45,0% MS Switzerland 18,0 % MS Finland 23,0% MS Latvia 24,1 % MS Austria 16,4 %MS Italy 21,1% MS Poland 23,6 % MS Romania 33,0% MS Russia 26,2% MS Singapore 55,0% MS Korea 38,8% MS Taiwan 39,0% MS Chile 44,1 % MS South Africa 30,2 % MS La Reunion 16,4% MS
SUCCESSFUL FINANCIAL YEAR FOR BMW MOTORRAD WITH STRONG INCREASE IN EARNINGS In million 2014 2013 Change in % Sales (units) 123,495 115,215 + 7.2 Revenues 1,679 1,504 + 11.6 Earnings before interests and taxes (EBIT) 112 79 + 41.8 EBIT margin (in %) 6.7 5.3 - Earnings beforetaxes (EBT) 107 76 + 40.8
2015 PRODUCT HIGHLIGHTS 5 LAUNCHES IN 2015 BMW R 1200 R BMW F 800 R BMW R 1200 RS BMW S 1000 RR BMW S 1000 XR
BMW MOTORRAD AMBITIOUS TARGETS TILL 2020 2014: 123,495 units 1922 1929 1936 1943 1950 1957 1964 1971 1978 1985 1992 1999 2006 2014 2013 2020
BMW MOTORRAD ACTIVELY SHAPE THE FUTURE OPERATIONAL EXCELLENCE, ENABLER stable, profitable growth Brand values and premium positioning Brand Management Value creation strategy Core products Customer acquisition G Operational Excellence, Enabler
BMW MOTORRAD WE ARE COMMITTED!!!
EMPLOYEE DEVELOPMENT 2014 ALL EMPLOYEES ARE TRAINED IN STRATEGY More than 1,400 employees were trained in two academies (additionally more than 100 manager in the role of a trainer) Very positive response from our employees Feedback after the event: 90% of the participants evaluate their new knowledge about the strategy as (very) good
QUALITY TRAINING FOR CUSTOMER ORIENTATION TRAINING FOR 1500 EMPLOYEES TILL THE END OF 2015 Start: MUC: Feb. - May 2015 Berlin: July - Dec. 2015 U Management Conference 2015, UX, 26.02.2015
BMW MOTORRAD ACTIVELY SHAPE THE FUTURE CORE PRODUCTS stable, profitable growth Brand values and premium positioning Brand Management Value creation strategy Core products <500cc Customer New acquisition Urban E- heritage Mobility Mobility G Operational Excellence, Enabler
OUR STARTING POINTS CONTINUE TO STRENGTHEN THE CORE SEGMENTS ENDURO TOUR SPORT ROADSTER URBAN MOBILITY
BMW MOTORRAD ACTIVELY SHAPE THE FUTURE CUSTOMER ACQUISITION stable, profitable growth Brand values and premium positioning Brand Management Value creation strategy Core products Customer acquisition G Operational Excellence, Enabler
OUR STARTING POINTS EXPANSION OF MARKET POTENTIAL Total market > 500 cc in 2014: Ca. 850,000 units Expansion of market potential to 2-3 mn units through entry into new ccm segments Market volume Total Market Size (Powered Two Wheelers) in 2013: 114 Mio. units*??? 114 mn* *PTW incl. Electro and Pedelacs *incl. Electro und Pedelecs
BMW MOTORRAD ACTIVELY SHAPE THE FUTURE - SEGMENTS stable, profitable growth Brand value and premium positioning Brand Management Value creation strategy Core products <500cc New Heritage Urban Mobility E- Mobility G Operational Excellence, Enabler
ENTRY IN SEGMENT UNDER 500 CCM PREMIUM PRODUCT INNOVATIONS Cooperation
OUR STARTING POINTS SEGMENT NEW HERITAGE AND LIFESTYLE
SEGMENT URBAN MOBILITY EXPANSION OF THE SCOOTER SEGMENT IN LOWER DISPLACEMENT BMW C 600 Sport / C 650 GT
SEGMENT URBAN MOBILITY FUTURE SUSTAINABILITY THROUGH E-MOBILITY 1. Step C-Evolution 2. Step Expansion E-Mobility 48 HP, 72 Nm, 100 km reach, completely charged in max. 4 h or 2:15 h (80%)
BMW MOTORRAD ACTIVELY SHAPE THE FUTURE VALUE CREATION STRATEGY Stable, profitable growth Brand values and premium positioning Brand Management Value creation strategy Core products Customer acquisition G Operational Excellence, Enabler
BMW MOTORRAD PRODUCTION 10 YEARS AGO FOCUS ON GERMANY/EUROPE Germany/ Plant Berlin Germany/ Headquarter Munich
BMW MOTORRAD PRODUCTION TODAY A WORLDWIDE PRODUCTION NETWORK Germany/ Headquarter Munich Germany/ Plant Berlin China / Chongqing OEM Partner Thailand / Rayong, Assembly BMW Brasil / Manaus, Assembly Partner India / Bangalore, OEM Partner
BMW MOTORRAD ACTIVELY SHAPE THE FUTURE BRAND MANAGEMENT Stable, profitable growth Brand values and premium positioning Brand Management Value creation strategy Core products Customer acquisition G Operational Excellence, Enabler
BRAND LEADERSHIP THE EVOLUTION OF THE BRAND BMW MOTORRAD Starting as a conventional Brand becoming a dynamic and emotional brand right up to a lifestyle and experience brand. 2005 2010 2015 ff.
BRAND PERCEPTION CUSTOMIZING / INDIVIDUALIZATION
BRAND PERCEPTION: RIDERS EQUIPMENT BECOMES A LIFESTYLE ISSUE
BRAND PERCEPTION AT THE POINT OF SALE MAKE LIFE A RIDE BMW Motorrad Brand Concept Store Donford, Cape Town
BMW MOTORRAD EXPANSION OF DEALER NETWORK 1.050 1.121 2013 2014 Target 2020
2015 MORE TO COME PURE AND CRAFTED FESTIVAL
BRAND DEVELOPMENT BMW MOTORRAD MAKE LIFE A RIDE. NEW BRAND POSITIONING CAMPAIGN
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