BMW Group adjusts guidance for 2024 financial year

M
unich. The Board of Management of BMW AG adjusted the
guidance for the 2024 financial year today.

This was triggered in part by additional headwinds in the Automotive
Segment resulting from delivery stops and technical actions linked to
the Integrated Braking System (IBS) that is provided by a supplier.

The delivery stops for vehicles that are not already in customers
hands will have a negative worldwide sales effect in the second half
of the year. The IBS-related technical actions impact over 1.5 million
vehicles and result in additional warranty costs in a high three-digit
million amount in the third quarter.

In parallel to this effect, the ongoing muted demand in China is
affecting sales volumes. Despite stimulus measures from the
government, consumer sentiment remains weak.

Considering these developments in the Automotive
Segment outlined above, the BMW Group has adjusted the
guidance for the 2024 financial year as follows:

• A slight decrease in deliveries versus previous year (previously:
  slight increase).
• An EBIT margin for 2024 in a corridor from 6% to 7% (previously:
  8% to 10%).
• Return on Capital Employed (RoCE) between 11% and 13% (previously:
  15% to 20%).

Free-Cash-Flow in the Automotive Segment is estimated to be above
€4bn for the 2024 Financial year.

As of today, the described earnings together with additional
inventory will impact the third quarter much more than the fourth quarter.

In the Motorcycles Segment, the ongoing competitive
situation across core markets – including China and the USA – is
having a major impact on volume and price realization. Deliveries to
customers are now expected at prior year’s level (previously: slight
increase). Accordingly, the EBIT margin for 2024 is expected to be in
a corridor of 6% to 7% (previously: 8% to 10%) and Return on Capital
Employed (RoCE) is anticipated to be between 14% and 16% (previously:
21% to 26%).

Group Earnings before Tax will, therefore, decrease
significantly (previously: slight decrease).

The full quarterly results and the adjusted outlook report will be
published on 6 November 2024 in the BMW Group Quarterly Statement to
30 September 2024.

The definitions of the KPIs can be found in the Glossary of the BMW
Group Report 2023 on pages 338 to 343.

If you have any questions, please contact:

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BMW Group Corporate Communications

Dr Britta Ullrich, Finance Communications

Telephone: +49 89 382-18364

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Email: [email protected]

Eckhard Wannieck, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

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Email: [email protected]

Media website: www.press.bmwgroup.com/deutschland

Email: [email protected]