Bayerische Motoren Werke AG · XETR:BMW
Bayerische Motoren Werke — BMW Group — Non-Deal Roadshow (May 2012)
39 slides from Bayerische Motoren Werke's roadshow presentation, May 22, 2012
Slide 1: BMW Group in China
BMW GROUP IN CHINA DR. DANIEL KIRCHERT SENIOR VICE PRESIDENT, SALES & MARKETING BMW BRILLIANCE AUTOMOTIVE MAY 22, 2012
Slide 2: Contents
CONTENTS. – Looking back – The BMW business model – BMW retail network in China – Outlook BMW Group in China, D.Kirchert, May 22nd 2012 Page 2
Slide 3: China has enjoyed strong economic growth over the past 20 years
CHINA HAS ENJOYED STRONG ECONOMIC GROWTH OVER THE PAST 20 YEARS. China GDP growth (1992-2011) GDP: trillion RMB GDP growth: % 50 16% 45 14% 40 12% 35 (Ø ~20 years = 10.4%) 10% 30 25 8% 20 6% 15 4% 10 2% 5 0 0% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 4: PV market growth slowed in 2011, premium segment continued rapid growth
ALTHOUGH THE PV MARKET GROWTH RATE SLOWED IN 2011, THE PREMIUM SEGMENT HAS CONTINUED ITS RAPID GROWTH. PV and premium segment sales development (2005-2011) Premium segment: Million Units PV market : Million Units 1.2 14.0 ~+7% ~+37% 0.9 10.5 0.6 7.0 0.3 3.5 0.0 0.0 2005 2006 2007 2008 2009 2010 2011
Slide 5: BMW & MINI outperforming premium segment growth
BMW & MINI HAVE SUCCESSFULLY DEVELOPED OVER THE YEARS, OUTPERFORMING THE PREMIUM SEGMENT GROWTH. BMW Group sales development (2007-2011) Premium segment Ø annual growth rate: +41% 233 BMW Ø annual growth rate: +46% 169 91 66 52 2007 2008 2009 2010 2011 BMW MINI In ‘000 Units BMW Group in China, D.Ki
Slide 6: 2012 YTD market status: BMW Group outperformed premium segment
2012 YTD MARKET STATUS. BMW GROUP HAS OUTPERFORMED THE PREMIUM SEGMENT. Premium segment development BMW+MINI development ‘000 Units ‘000 Units +33% +35% ~380 107 ~290 79 100 74 5 7 2011 YTD April 2012 YTD April 2011 YTD April 2012 YTD April BMW Group in China, D.Kirchert, May 22nd 2012 Source: sales
Slide 7: China holds a prominent position within BMW's global ranking
CHINA HOLDS A PROMINENT POSITION WITHIN BMW’S GLOBAL RANKING. 2004 2008 2011 2012 3 ? Model Market 7 Series largest 5 X6 largest … 5 Series sedan largest 5er GT largest 11 X5 2nd-largest BMW Group in China, D.Kirchert, May 22nd 2012 Source: sales data Page 8
Slide 8: Contents
CONTENTS. – Looking back – The BMW business model – BMW retail network in China – Outlook BMW Group in China, D.Kirchert, May 22nd 2012 Page 8
Slide 9: Competing with substance: best quality to customers
COMPETING WITH SUBSTANCE. PRESENTING THE BEST QUALITY TO CUSTOMERS. Products Customer orientation Brand-building Localization Partners People BMW Group in China, D.Kirchert, May 22nd 2012 Page 9
Slide 10: BMW product lineup
BMW PRODUCT LINEUP. MOST BMW GROUP PRODUCTS ARE ALREADY OFFERED IN CHINA. Locally-produced Imported BMW Group in China, D.Kirchert, May 22nd 2012 Page 10
Slide 11: MINI product lineup
WOW! MINI in China 2010! mini Product Lineup. Exciting MINI products in China. BMW Group in China, D.Kirchert, May 22nd 2012 Page 11
Slide 12: Understanding the diverse customer base
UNDERSTANDING THE DIVERSE CUSTOMER BASE. Directors/Executive management Traditional company owners Directors/managers in SOE of (multi-) national companies Young, self-made company owners / co-owners Young professionals, executives BMW Group in China, D.Kirchert, May 22nd 2012 Page 12
Slide 13: Customer orientation
CUSTOMER ORIENTATION BMW GROUP IS FULLY DEDICATED TO CUSTOMER SATISFACTION Attention & Care Understanding & Action Fulfillment & Success Customer Orientation BMW Group in China Page 13
Slide 14: Multiple entities, one face to the customer
MULTIPLE ENTITIES, ONE FACE TO THE CUSTOMER. BMW China BMW Brilliance Automotive National Sales Company NSC BBA Dealer 1 Dealer 2 Dealer 3 Dealer N Customer / Point of Sale / Market BMW Group in China, D.Kirchert, May 22nd 2012 Page 14
Slide 15: People-centered marketing strategy (1/3)
PEOPLE-CENTERED MARKETING STRATEGY HIGHLIGHTING EXPERIENCE AND EMOTIONS (1/3). BMW Group in China, D.Kirchert, May 22nd 2012 Page 15
Slide 16: People-centered marketing strategy (2/3)
PEOPLE-CENTERED MARKETING STRATEGY HIGHLIGHTING EXPERIENCE AND EMOTIONS (2/3). Mission 3 Campaign MINI Chinese Job M Annual Event BMW Brand day BMW Group in China, D.Kirchert, May 22nd 2012 Page 16
Slide 17: People-centered marketing strategy (3/3)
PEOPLE-CENTERED MARKETING STRATEGY HIGHLIGHTING EXPERIENCE AND EMOTIONS (3/3). 2012 Beijing Auto Show BMW Group in China, D.Kirchert, May 22nd 2012 Page 17
Slide 18: CCF - BMW Warm Heart Fund
CCF - BMW WARM HEART FUND CONTINUE TO BUILD ON ITS SUCCESSES. On June 5, 2008, BMW China and BMW Brilliance jointly set up CCF - BMW Warm Heart Fund BMW Group in China, D.Kirchert, May 22nd 2012 Page 18
Slide 19: BMW the leading automotive brand in China
THIS PERFORMANCE MAKES BMW THE LEADING AUTOMOTIVE BRAND IN CHINA. Criteria – BMW has earned NO.1 in ‘I like this brand’ in a row from 2002-2012. 1. Well Made – BMW is NO.1 in 4 main categories out of 13. 2. Very Reliable Car 3. High Safety Standards 4. Advanced Technology 5. Environmentally Friendly
Slide 20: BMW most admired automotive brand among Chinese customers
BMW IS THE MOST ADMIRED AUTOMOTIVE BRAND AMONG CHINESE CUSTOMERS. World’s most valuable luxury brands 2012 BMW Group in China, D.Kirchert, May 22nd 2012 Page 20
Slide 21: Contents
CONTENTS. – Looking back – The BMW business model – BMW retail network in China – Outlook BMW Group in China, D.Kirchert, May 22nd 2012 Page 21
Slide 22: 290 BMW dealer outlets in operation by end of 2011
290 BMW DEALER OUTLETS WERE IN OPERATION BY THE END OF 2011. Number of Outlets North 82 East 95 South 65 West 48 4S Total 290 SR Service outlet UCC BMW Group in China, D.Kirchert, May 22nd 2012 Page 22
Slide 23: MINI 67 dealer outlets in operation by end of 2011
MINI ALSO MADE BIG STRIDES FORWARD AND 67 DEALER OUTLETS WERE IN OPERATION BY 31ST DECEMBER 2011. S-SR A-SR 4S Total North 9 6 1 16 East 15 4 2 21 South 11 5 0 16 West 10 3 1 14 4S A-SR/S-SR Total 45 18 4 67 BMW Group in China, D.Kirchert, May 22nd 2012 Page 23
Slide 24: BMW pioneer exploring new retail formats
BMW IS THE PIONEER TO EXPLORE NEW RETAIL FORMATS FOR HIGHER CUSTOMER SATISFACTION. 4S Service Center Used Car Center Showroom Fast Lane Rural Fast Lane City M Showroom 2003 - 2006 2007 - 2009 2010 2011 2012 BMW Group in China, D.Kirchert, May 22nd 2012 Page 24
Slide 25: 5S dealerships crucial to sustainability strategy in China
SHAPING THE FUTURE OF RETAIL, 5S DEALERSHIPS BECOME A CRUCIAL FEATURE OF BMW’S SUSTAINABILITY STRATEGY IN CHINA. 5S dealership Economic Environment Social Sustainable Sustainable Attractive Mobility Design Employer Sustainable Recycling & CSR on Training Waste Dealer Management Level Customer Sustai
Slide 26: 5S differentiates through customer involvement, community and employee care
FOCUSING NOT ONLY ON HARDWARE, 5S DIFFERENTIATES FROM OTHER OUTLETS BY THE EFFORTS IN CUSTOMER INVOLVEMENT, COMMUNITY LIFE AND EMPLOYEE CARE. Waterborne paint Paint Shop Ventilation Car Wash Water Recycling Health & Safety training Social Contribution – BMW Waste & Recycle training Wind turbines Joy
Slide 27: 5S concept won positive feedback from the media
5S CONCEPT WON POSITIVE FEEDBACK FROM THE MEDIA. “ The introduction of the 5S leads BMW dealers into a new era. ” “ The 5S concept, developed in China, may be rolled out globally. China is also becoming an important source of BMW’s global brand strategy. ” BMW Group in China, D.Kirchert, May 22nd 20
Slide 28: Various outlet types to enlarge service capacity
VARIOUS OUTLET TYPES TO ENLARGE THE SERVICE CAPACITY. Service Centre Fast Lane city Body & Paint extension BMW Group in China, D.Kirchert, May 22nd 2012 Page 28
Slide 29: Contents
CONTENTS. – Looking back – The BMW business model – BMW retail network in China – Outlook BMW Group in China, D.Kirchert, May 22nd 2012 Page 29
Slide 30: Buoyant outlook on China despite short-term consolidation
BUOYANT OUTLOOK ON CHINA DESPITE SHORT-TERM CONSOLIDATION. China GDP growth Risks to China’s growth 8.0%~8.5% – global economy is at a precarious stage and export growth slowed down – domestic demand rising slower than expected – continuing concerns of inflation, especially with +9.2% +8.1% rising o
Slide 31: Continued momentum for premium auto segment
CONTINUED MOMENTUM FOR PREMIUM AUTO SEGMENT. Premium segment development Mid-term passenger vehicle market growth ~1Mio Ø annual of 9% per year. growth rate – LMC, 2012 +43% Luxury growth expected to outpace overall market. – Global Insight, 2012 ~0.1 Mio 2005 2011 BMW Group in China, D.Kirchert
Slide 32: BMW's new 3 Series twins to grow in the market
BMW’S NEW 3 SERIES TWINS TO “GROW” IN THE MARKET. New 3 Series Long Wheelbase New 3 Series BMW Group in China, D.Kirchert, May 22nd 2012 Page 32
Slide 33: The new Tiexi plant: expanded capacity
THE NEW TIEXI PLANT – EXPANDED CAPACITY UTILIZING WORLD-CLASS TECHNOLOGY. New Tiexi Plant – “Cleanest” production within BMW Group (Benchmark comparison 2011) – Lowest energy consumption – Lowest VOC emission – Lowest level of process waste water Leading through: – Environmentally-friendly architect
Slide 34: Uncompromising improvement of quality in aftersales
UNCOMPROMISING IMPROVEMENT OF QUALITY IN AFTERSALES. We are the first mover in many service initiatives: – Service Repair Package – Fast Lane Service – Accident Hotline BMW Group in China, D.Kirchert, May 22nd 2012 Page 34
Slide 35: Comprehensive financial services to add impetus to growth
COMPREHENSIVE FINANCIAL SERVICES TO ADD IMPETUS TO FUTURE GROWTH. Majority of vehicles are still bought without financing – BMW Finance Automotive China started operations by end of 2010 – ~11% penetration in 2011 BMW Group in China, D.Kirchert, May 22nd 2012 Page 35
Slide 36: Future mobility engineered today
FUTURE MOBILITY ENGINEERED TODAY. PERSISTENT PURSUIT OF SUSTAINABLE DRIVING. “BMW again heads the ranking of Dow Jones Sustainability Index in 2011 and thus becomes auto industry’s most sustainable auto manufacturer for seven consecutive years.” Intelligent Technologies BMW i Active Hybrid BMW Group
Slide 37: China's nascent used car market has large growth opportunities
IN COMPARISON WITH MATURE MARKETS, CHINA’S NASCENT USED CAR MARKET HAS OPPORTUNITIES FOR LARGE GROWTH. Sales split of BMW Dealers worldwide(2010) Used car volume New car volume BMW Group in China, D.Kirchert, May 22nd 2012 Page 37
Slide 38: Used car is a strategic business area
USED CAR IS A STRATEGIC BUSINESS AREA TO SUPPORT NEW CAR BUSINESS. – BMW Premium Selection is a worldwide BMW used car program (since 2006 in China). – BMW Premium Selection is Number ONE among competitors. – Clear Used Car Strategy to develop the dealer organization with 1st UC Center in Shenzhen a
Slide 39: The proven BMW model will ensure our continuing bright future
THE PROVEN “BMW MODEL” WILL ENSURE OUR CONTINUING BRIGHT FUTURE. BMW Group in China, D.Kirchert, May 22nd 2011 Page 39