BMW Group Full-Year 2024
Good morning!
SLIDE: BMW Group in Full-Year 2024
As Oliver highlighted, we continue to follow our course and execute our long-term strategy. At the same time, we remain focused on operational performance to consistently deliver on our commitments.
The BMW Group once again demonstrated this in Q4 2024:
We successfully reduced inventories affected by the Integrated Braking System (IBS) and achieved sequential improvement in retail sales and revenue compared with Q3.
For the full year, we achieved our revised guidance across all key metrics.
As expected, we reached peak levels of R&D and capital expenditure in 2024, particularly in preparation for NEUE KLASSE models. Beginning this year, both R&D and CapEx ratios will decrease significantly as we start production of the NEUE KLASSE and lay the foundation for the long-term success of our company—with more than 40 new and updated models by 2027.
With our global footprint and operational flexibility, we are well-positioned to adapt to geopolitical developments and short-term market dynamics, demonstrating our resilience.
Let’s take a look at the financial figures for the full year.
2024 was a year of two halves:
While the first half of the year was in line with our original plans, sales performance in the second half was impacted by delivery stops related to IBS, as well as continued subdued demand in China. As anticipated, Q4 showed an improvement compared with Q3.
SLIDE: BMW Group KPIs in FY24
Group revenues totaled €142.4 billion. The moderate decline versus 2023 was mainly due to lower sales volumes and intense price competition in the Chinese market.
Earnings before tax at Group level amounted to €11 billion—significantly below 2023 but in line with our revised guidance. This resulted in a Group EBT margin of 7.7% for the year.
SLIDE: BMW Group Segment Performance in FY24
Breaking down the results by segment:
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Automotive: EBIT of €7.89 billion, EBIT margin 6.3%
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Motorrad: EBIT of €198 million, margin 6.1%
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Financial Services: EBT of €2.54 billion, Return on Equity 15.1%
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Other Entities: EBT of €837 million, with eliminations amounting to –€146 million
SLIDE: Automotive Retail Units, BEV Units, Vehicle Revenue and EBIT in FY24
In the Automotive segment:
For the full year, the BMW Group delivered 2.45 million BMW, MINI, and Rolls-Royce vehicles worldwide—a slight decline of 4% year-on-year, in line with our adjusted guidance.
Market dynamics in China remained weak, impacting overall sales performance. However, the BMW brand achieved growth in every other major region.
In Europe, order intake in Q4 increased steadily month by month. In the U.S., we experienced a strong recovery from IBS-related effects in Q4, with quarter-over-quarter growth of over 50% and year-over-year growth of 8.9%.
Globally, BMW Group sales performance in Q4 improved significantly compared with Q3, with total deliveries up by nearly one-third, including double-digit growth in the mid- and upper-segments.
All-electric vehicles remained a key growth driver. BEV deliveries exceeded 426,000 units for the year—up 13.5% from 2023—representing 17.4% of total sales.
Plug-in hybrid vehicles also remained popular, with more than 166,000 units sold in 2024. In total, electrified vehicles (BEVs and PHEVs) accounted for nearly one-quarter of overall sales.
Revenue in the Automotive segment totaled €125 billion, down 5.6% year-on-year.
Earnings before interest and taxes reached €7.9 billion, resulting in an EBIT margin of 6.3%, which was within our adjusted guidance range of 6–7% for the full year.
Excluding the €1.3 billion depreciation from the purchase price allocation of BBA, the Automotive EBIT margin was 7.4%.
SLIDE: Automotive EBIT Development in FY24
Looking at operating results in detail:
Compared with 2023, EBIT for full-year 2024 benefited from a €1 billion tailwind from the net balance of currency and raw material positions.
Year-on-year, the combined effect of volume, model mix, and pricing weighed on Automotive EBIT. The decline was driven primarily by lower volumes, especially in China. Pricing headwinds—including effects from the highly competitive Chinese market and supplier compensation there—accounted for over half of the total EBIT reduction of €4.4 billion.
The €1.4 billion headwind from other cost changes was primarily due to inflation in material prices and supply chain support.
Warranty costs were a tailwind year-on-year, as lower additions to warranty provisions were required in every quarter of 2024 compared with 2023—except for Q3, due to the impact of IBS. Overall, the P&L effect of quality issues improved year-on-year, as planned.
SLIDE: R&D Expenditure in FY24
SLIDE: Capital Expenditure in FY24
Our R&D activities and investments focused on advancing electrification and digitalization across our portfolio. As expected, both R&D and CapEx reached peak levels in 2024—in absolute terms and as a percentage of revenue.
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R&D spending: €9.1 billion (2023: €7.8 billion)
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R&D ratio (German Commercial Code): 6.4%, up 1.4 percentage points
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CapEx: €9.1 billion (2023: €8.8 billion)
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CapEx ratio: 6.4% (2023: 5.7%)
As we begin rolling out NEUE KLASSE models, both R&D and CapEx will decline—in absolute and relative terms—returning toward our strategic corridors of 4–5% for R&D and below 5% for CapEx by 2027 at the latest.
SLIDE: Automotive Segment Free Cash Flow in FY24
Turning to free cash flow—managed annually as usual:
Starting with an EBT of €7.5 billion, working capital contributed €200 million positively to free cash flow. Although inventories rose temporarily due to IBS-related delivery stops in Q3, we successfully reduced stock by €5 billion in Q4. Year-end inventory levels were nearly unchanged from the beginning of the year.
For the full year, the net effect of capital expenditure and depreciation reduced free cash flow by €3.3 billion. The development of provisions reduced it by a further €700 million.
Other effects, including interest income, contributed positively.
In line with our revised guidance, free cash flow reached €4.9 billion in 2024.
This was achieved even after investing €18.2 billion—€9.1 billion in CapEx and €9.1 billion in R&D—underscoring our financial strength and commitment to future growth.
Our Automotive net financial assets remained strong, supported by the robust Q4 free cash flow. Year-end Automotive NFA stood at €46 billion, roughly in line with the beginning of the year.
SLIDE: Financial Services Segment in FY24
In the Financial Services segment, new business development remained robust throughout the year. Nearly 1.7 million new financing and leasing contracts were signed—a strong year-on-year increase of almost 10%.
Overall new business volume rose 12.5% to €64.5 billion, driven by higher average financing per vehicle.
The penetration rate for lease and loan products increased 4.4 percentage points to 42.6%. Excluding China, the penetration rate exceeded 50%, with particular growth in the U.S. and the U.K.
Segment earnings before tax amounted to €2.54 billion, significantly lower than the prior year—mainly due to higher credit and residual value risk costs—but well within expectations. Gains from off-lease vehicle sales continued but at reduced levels due to market dynamics.
The credit loss ratio of 0.26% across the entire portfolio remained below market levels and within expectations.
Return on Equity for the full year was 15.1%, in line with our revised guidance of 15–18%.
Sustainability Reporting
In our BMW Group Report, we have voluntarily adopted the full European Sustainability Reporting Standards (ESRS) for the first time as the framework for all sustainability-related disclosures in our consolidated non-financial statement.
The BMW Group reports only on topics assessed as “material” under ESRS. However, this does not mean that non-material topics are less important.
We view sustainability holistically—as a competitive advantage—and transparently share our performance with investors and customers.
Implementing the ESRS framework has added over 100 pages to our report. Due to company-specific materiality assessments, comparability across firms—even within the same industry—remains limited.
We therefore welcome the proposed regulatory adjustments under the “Omnibus” package and look forward to the draft updates and reduced ESRS scope. Ultimately, our goal is to provide relevant and concise information that adds true value for stakeholders—not just compliance.
SLIDE: Proposed Dividend and Payout Ratio
A key element of our stakeholder commitment is our shareholder return strategy, to which the BMW Group remains fully dedicated.
The Board of Management and Supervisory Board will propose a dividend of €4.30 per common share and €4.32 per preferred share at the Annual General Meeting, representing a total payout of €2.7 billion.
The proposed dividend corresponds to a payout ratio of 36.7%, within our long-term strategic range of 30–40% and notably higher than in 2023.
On January 2, we launched the final tranche of our ongoing second share buyback program, expected to conclude by April 30—more than six months earlier than originally planned.
By that time, we will have reduced the total number of outstanding shares by 47 million, representing over 7% of share capital.
At the upcoming AGM, the Board of Management intends to propose a new five-year authorization to repurchase treasury shares of up to 10% of share capital.
Since 2021, we have made a structural shift in our shareholder return approach—adding share buybacks as a complement to dividends, broadening the payout corridor, and raising the share of Automotive free cash flow distributed to shareholders to nearly 100% this year.
SLIDE: Outlook 2025
Looking ahead to 2025:
With stabilizing inflation and declining interest rates in many countries, we expect a gradual recovery in demand.
We anticipate strong market development in the U.S., growth in Europe driven by electrified vehicles, and continued challenges in China.
Automotive segment revenue per vehicle is expected to remain broadly in line with 2024 levels.
Considering the full effect of tariff increases implemented as of March 12, 2025, we expect an EBIT margin between 5–7% for the Automotive segment.
Return on Capital Employed (RoCE) is expected to range between 9–13%.
In the Financial Services segment, Return on Equity is projected between 13–16%.
Group pre-tax profit is expected to remain at the previous year’s level.
The full-year Automotive free cash flow is forecast to exceed €5 billion.
SLIDE: Closing
Ladies and Gentlemen,
The BMW Group remains fully focused on achieving our short-term targets without compromising our long-term strategic goals.
We remain committed to our long-term EBIT margin target corridor of 8–10% in the Automotive segment.
We are continuously enhancing operational performance to meet our strategic objectives and further improve returns.
After the peak in 2024, we expect 2025 to mark a turning point—not only in R&D and CapEx, but also in operating expenses, which will decline in nominal terms despite inflationary effects.
At the BMW Group, strong brands and emotional products have always been the foundation of our success.
With the technological leap brought by the NEUE KLASSE across our entire portfolio, we look forward to seeing the benefits of our investments on the road later this year.