The shares of battery maker QuantumScape (NYSE:QS) rocketed higher earlier this month on news that its solid-state battery can be charged over 1,000 times without degrading. Unfortunately for the long-term outlook of QS stock, this characteristic, while certainly positive, does not address the main “pain points” facing drivers and automakers. Moreover, QS has at least two competitors that appear to be chronologically ahead of it and may have superior products, and the firm will not be profitable for many ye ...

Bayerische Motoren Werke Aktiengesellschaft (OTCPK:BMWYY) Q3 2023 Earnings Conference Call November 3, 2023 9:00 AM ET Company Participants Walter Mertl - Chief Financial Officer Oliver Zipse - Chairman of the Board of Management Conference Call Participants George Galliers - Goldman Sachs Dorothee Cresswell - BNP Paribas Exane Jose Asumendi - JPMorgan Tim Rokossa - Deutsche Bank Patrick Hummel - UBS Michael Tyndall - HSBC Stephen Reitman - Societe Generale Henning Cosman - Barclays Unidentified Company Rep ...

BMW Group Investor Relations | November 2023 - 1 - THE BMW GROUP – RETHINKING PREMIUM INDIVIDUAL MOBILITY FOR THE NEXT 100 YEARS. INVESTOR RELATIONS PRESENTATION. November 2023. WE MAKE INDIVIDUAL MOBILITY MORE HUMAN, INTELLIGENT AND RESPONSIBLE – CREATING AN INSPIRING FUTURE FOR ALL OF US. IMPACT. OUR PATH TO THE FUTURE. STRATEGY. FINANCIALS. BRANDS PRODUCTS DIGITALIZATION SUSTAINABILITY FOOTPRINT PEOPLE OUR ROBUST RESULTS. BMW Group Investor Relations | November 2023 - 2 - IMPACT I STRATEGY I FINANCIALS W ...

THE BMW GROUP – RETHINKING INDIVIDUAL MOBILITY FOR THE NEXT 100 YEARS. INVESTOR RELATIONS PRESENTATION. August 2023 WE MAKE INDIVIDUAL MOBILITY MORE HUMAN, INTELLIGENT AND RESPONSIBLE – CREATING AN INSPIRING FUTURE FOR ALL OF US. IMPACT .. OUR PATH TO THE FUTURE. STRATEGY. BRANDS | PRODUCTS | DIGITALIZATION SUSTAINABILITY | FOOTPRINT | PEOPLE FINANCIALS. OUR ROBUST RESULTS. BMW Group Investor Relations | August 2023 -2- | --- | --- | |------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - The BMW Group reported a Group EBITDA margin of 11.3% for Q2 2023 and 12.6% for the first half of the year, exceeding the strategic target of 10% [4][8] - Group earnings before tax for the quarter totaled €4.2 billion, with pre-tax earnings for the first half decreasing by just under €6.8 billion due to a one-off profit of €7.7 billion last year [8][10] - Free cash flow in the Automotive segment was €1.2 billion for Q2, with a total of €3.1 billion for the first half of the year, and the company expects free cash flow to exceed €6 billion for the full year [20][21] Business Line Data and Key Metrics Changes - In the Automotive segment, vehicle sales increased by 11.3% year-on-year to over 626,000 units in Q2 2023, with a 6.4% increase compared to Q1 [9][10] - The EBIT margin for the Automotive segment was 9.2% in Q2 and 10.6% for the first half, with expectations for continued positive trends in the second half of the year [5][12] - The Motorcycles segment achieved record figures with sales reaching almost 65,000 units, an 8% increase year-on-year, and an EBIT margin of 16% for Q2 [27] Market Data and Key Metrics Changes - The BMW Group's BEV sales exceeded 88,000 units in Q2, totaling around 153,000 BEVs delivered in the first half, more than double the sales from the same period last year [11][12] - The company maintains a strong market position, with a high order bank and expectations for solid delivery increases in 2023 [10][28] - The BMW Group remains the number one in the global premium segment with over 20% market share, delivering more than 1.5 million vehicles in the first half of 2023, a 4.7% increase year-on-year [56][58] Company Strategy and Development Direction - The company is focusing on electromobility, digitalization, and sustainability, with significant investments planned in next-generation technologies [30][31] - The NEUE KLASSE project is a key initiative aimed at shaping the future of mobility and securing competitiveness, with production set to begin in 2025 [41][42] - The company aims to balance a profitable core business, a growth trajectory, and a clear path to lower CO2 emissions [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of the order bank and an expected improvement in vehicle availability, leading to an increase in delivery forecasts for 2023 [6][10] - The company anticipates a stable return on equity in the Financial Services segment, projected between 16% and 19% for the full year [26][29] - Management acknowledged the challenges posed by higher financing costs and competitive pressures but remains optimistic about maintaining profitability [22][24] Other Important Information - The company is planning for increased inventories in 2023 to meet high customer demand and ensure vehicle supply [21] - The BMW Group is actively promoting the development of charging infrastructure in collaboration with other manufacturers in North America [59] Q&A Session Summary Question: Pricing and Working Capital - The CFO clarified that pricing remains strong despite a reported 5% decrease year-on-year, attributing this to previous price increases and currency translation effects [65][70] - The majority of inventory increases are in finished goods, with confidence in fulfilling customer demands for the second half of the year [71] Question: Medium-term Capacity Outlook - The CEO discussed the growth potential from the NEUE KLASSE and the company's strategy to achieve a significant market share in electric vehicles by 2030 [67][73] Question: Free Cash Flow Guidance - The CFO explained that the free cash flow guidance was adjusted due to higher investment spending and inventories, with expectations to remain above €6 billion [75][80] Question: Competition in China - The CEO emphasized the company's strong position in the premium segment in China, with a broad product range and ongoing growth despite local competition [76][82] Question: Margin Phasing and BBA EBIT - The CFO addressed concerns about margin expectations, indicating that the company is managing headwinds from FX and inflation while maintaining stable performance from BBA [89][93] Question: Financial Services and Lease Penetration - The CFO noted a decrease in lease penetration but indicated a recovery trend, particularly in the U.S. and EU markets, while addressing the impact of local competition in China [99][102]

Bayerische Motoren Werke Aktiengesellschaft (OTCPK:BMWYY) Q1 2023 Earnings Conference Call May 4, 2023 8:00 AM ET Company Participants Max Schöberl - Investor Relations Nicolas Peter - Chief Financial Officer Oliver Zipse - Chairman & Chief Executive Officer Conference Call Participants Dorothee Cresswell - Exane George Galliers - Goldman Sachs Jose Asumendi - JPMorgan Horst Schneider - Bank of America Tim Rokossa - Deutsche Bank Patrick Hummel - UBS Henning Cosman - Barclays Max Schöberl Good afternoon, la ...

Bayerische Motoren Werke Aktiengesellschaft (OTCPK:BMWYY) Q4 2022 Earnings Conference Call March 15, 2023 6:15 AM ET Company Participants Maximilian Schöberl - Investor Relations Oliver Zipse - Chairman and Chief Executive Officer Nicolas Peter - Chief Financial Officer Frank Weber - Head, Development Ilka Horstmeier - Head, People, Real Estate & Labor Relations Joachim Post - Head, Purchasing & Supplier Network Milan Nedeljkovic - Head, Production Pieter Nota - Head, Customer, Brands, Sales Conference Call ...

Bayerische Motoren Werke Aktiengesellschaft (OTCPK:BMWYY) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET Company Participants Maximilian Schöberl – General Manager Nicolas Peter – Chief Financial Officer Conference Call Participants Dorothee Cresswell – Exane George Galliers – Goldman Sachs Tom Narayan – RBC Patrick Hummel – UBS Jose Asumendi – JPMorgan Stephen Reitman – Société Générale Philippe Houchois – Jeffries Daniel Roska – Bernstein Research Henning Cosman – Barclays Maximilian Schöber ...

Financial Data and Key Metrics Changes - The BMW Group reported a 21.6% increase in revenues for Q2 2022 and a 19.1% increase for the first half of the year, totaling approximately €65.9 billion [7] - Group earnings before tax (EBT) for Q2 reached just over €3.9 billion, while EBT for the first half climbed 65.9% to almost €16.2 billion, with an EBT margin of 11.3% for Q2 and 24.5% for the first half [8][9] - Research and development expenses rose by 14.3% year-on-year to just over €3.1 billion, with a target R&D ratio for the full year expected to be between 5% and 5.5% [10] Business Line Data and Key Metrics Changes - The Automotive segment saw revenues increase by 18.8% year-on-year to just over €56.7 billion in the first half, with a Q2 increase of 20.1% [13] - The Financial Services segment concluded just over 815,000 new contracts, down 20.8% from the previous year, but segment earnings before tax increased by 2.3% to almost €2 billion [23][25] - The Motorcycles segment maintained sales at nearly 108,000 units, with operating earnings totaling €235 million and an EBIT margin of 14.1% [26] Market Data and Key Metrics Changes - Vehicle sales decreased by 13.4% from the previous year's record high, totaling 1.16 million vehicles sold in the first half of 2022 [5] - The company expects solid growth in deliveries for the second half of 2022 compared to the same period in 2021, despite a forecasted slight decrease in total deliveries for the full year [6][28] Company Strategy and Development Direction - The BMW Group aims to double its sales of all-electric vehicles in 2022 compared to the previous year, with a focus on electromobility as a key growth factor [5][39] - The introduction of the Neue Klasse in 2025 is expected to significantly enhance market penetration of electric vehicles, with plans for a compact sedan and a sporty SUV [40][41] - The company is investing in transforming its production network for e-mobility, including a new carbon-free plant in Hungary [45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as semiconductor supply bottlenecks, the war in Ukraine, and supply chain disruptions impacting vehicle sales [4][28] - The company remains optimistic about achieving a successful financial year 2022, with expectations for EBIT margins in the Automotive segment to remain between 7% and 9% [29][48] - Management highlighted the importance of maintaining strong pricing power and managing inventories effectively in response to market conditions [97] Other Important Information - Capital expenditure in the first half of 2022 totaled over €2.9 billion, primarily due to investments in e-mobility and the BBA joint venture [12] - The company is targeting a free cash flow of at least €10 billion in the Automotive segment for the full year [22] Q&A Session Summary Question: Electric vehicle development and hydrogen infrastructure - Management confirmed that battery electric vehicle (BEV) sales are expected to increase significantly, potentially matching or exceeding plug-in hybrid sales in the second half of the year [60] - Regarding hydrogen, management emphasized the need for hydrogen offerings to maintain market share, especially in regions lacking sufficient charging infrastructure [64] Question: Auto margin guidance and iX technology - Management explained that while BBA consolidation effects will decrease in H2, higher costs from logistics and raw materials will offset this, maintaining EBIT margin guidance [75] - The iX's efficiency is attributed to lightweight materials and advanced battery technology, providing a competitive edge [77] Question: Cash flow guidance and market outlook - Management indicated that cash flow shortfalls are due to increased investments in electric vehicle production, with a strong demand for models like the i4 and iX [88] - The company expects a mix of weaker demand and supply bottlenecks to impact market outlook, but remains confident in achieving its guidance [86] Question: Semiconductor supply and inventory management - Management noted that semiconductor supply issues are expected to improve gradually, with a focus on optimizing inventory levels to meet demand without overcapacity [96][97] Question: CapEx and EV investments - Management clarified that increased CapEx reflects strong demand for electric vehicles and is aligned with the strategy to grow BEV sales significantly by 2030 [127]

Financial Data and Key Metrics Changes - Group revenues for Q1 2022 increased by 16.3% to €31.14 billion, significantly impacted by the full consolidation of BMW Brilliance Automotive (BBA) [13][29] - Earnings before tax (EBT) totaled €12.23 billion, resulting in an EBT margin of 39.2%. Excluding the revaluation of the existing stake in BBA, the EBT margin was 18.4% [14][22] - Research and development (R&D) expenses rose by 9.4% year-on-year to €1.57 billion, with an R&D ratio of 4.5% [16] - Capital expenditure (CapEx) increased to €1.1 billion, representing a CapEx ratio of 3.5% [17] Business Line Data and Key Metrics Changes - Automotive segment revenues rose by 17.4% to over €26.73 billion, driven by the inclusion of BBA revenues and favorable model mix [17][18] - The cost of sales in the Automotive segment increased by 20.9% to €22.63 billion, influenced by rising energy and raw material costs [19] - The Financial Services segment saw a decrease in new contracts by 11.4% due to supply issues, but earnings before tax reached over €1 billion, a new all-time high [25][26] - The Motorcycles segment reported over 47,000 units sold, achieving double-digit growth and an EBIT margin of 13.5% [27] Market Data and Key Metrics Changes - Vehicle sales decreased by 7.8% in Europe and 9.2% in China, while US sales grew by 3.7% [7] - Sales of electrified vehicles increased by 28% to over 89,000 units, with fully electric vehicle sales more than doubling to over 35,000 units [51] - The company expects to see a significant year-on-year increase in both group pretax earnings and employee numbers due to the full consolidation of BBA [29] Company Strategy and Development Direction - The company is focusing on electrification and digitalization, with plans to launch multiple fully electric models, including the BMW i3 tailored for the Chinese market [9][15] - The strategy includes increasing localization in China and expanding production capacity to meet local demand [39][40] - The company aims to achieve climate neutrality by 2050 and reduce its products' total carbon footprint by 40% by 2030 [56] Management's Comments on Operating Environment and Future Outlook - The management acknowledged growing uncertainties due to geopolitical tensions, rising inflation, and high energy prices but confirmed guidance for the full year [28][30] - The semiconductor supply situation is expected to improve in the second half of 2022, but challenges remain due to the pandemic and geopolitical issues [31][46] - The company remains optimistic about strong demand for its products, particularly in the electric vehicle segment [32] Other Important Information - The company extended its contract with the Chinese joint venture BBA until 2040 and increased its stake from 50% to 75%, fully consolidating BBA in its financial statements [10] - The company is investing in e-mobility and digitalization to secure future sustainability while maintaining strong operating performance [38] Q&A Session Summary Question: Model mix evolution and BEV pivot - Management discussed the balance between supply shortages and new model capacity, expressing confidence in improving the mix and profitability across all segments [68][70][71] Question: Share buybacks and i7 revenue - Management indicated that share buyback proposals are pending AGM approval and confirmed that revenue from Amazon Prime in the i7 would follow standard revenue methodologies [77][79][80] Question: EV order bank and i3 performance - Management clarified that high order banks exist across all vehicle types, not just BEVs, and expressed confidence in the i3's market fit in China despite competitive pressures [82][85][86] Question: Financial Services competitive pressure - Management acknowledged increased competition in the Financial Services sector but noted strong credit quality and operational momentum [94][96] Question: Software and battery technology investments - Management emphasized the critical nature of digitalization and ongoing investments in battery technology, including local production strategies [100][108]