PROFIT IMPROVEMENT WEBINARDavid GoldsteinPresident, Mekko Graphics

Agenda

Profit Snapshot Levers for ImprovementDrill Down

• Profitability trends• Competitive

comparison

• Show impact of profit improvement goals on profitability

• Revenue by region, product, segment, customer

• Profitability by product, customer

• Cost analysis and benchmarking

BMW Financial TrendsRevenues are growing faster than profits.

-100,000

-50,000

0

50,000

€100,000M

2012

7,599

70,208

-62,609

2013

6,649

70,630

-63,981

2014

7,244

75,173

-67,929

2015

7,836

85,536

-77,700

6.8%

7.5%

1.0%

CAGR

10.8% 9.4% 9.6% 9.2%EBIT Margin

7,599 6,649 7,244 7,836

2012-2015

Revenue

Costs

EBIT

Profit ComparisonBMW has the highest margin in the industry.

0

2

4

6

8

10%

EBIT Margin

Average 6.2%

BMW

9.2%

Toyota

8.7%

Hyundai- Kia

8.1%

Daimler

8.0%

Volkswagen

6.3%

Honda

6.0%

Renault- Nissan

5.6%

Ford

5.4%

General Motors

2.5%

Fiat/ Chrysler

2.2%

Average 6.2%

Auto Industry ProfitabilityBMW is outperforming expected profitability based on size.

0

3

5

8

10

13%

0.1 0.2 0.5 1 2 2.3

€150B Revenue

Relative Market Share

EBIT Margin

Toyota

Daimler

Ford

BMW

€150B Revenue

Volkswagen

General Motors

Renault-Nissan

Hyundai-Kia

Fiat/Chrysler

Honda

Agenda

Profit Snapshot Levers for ImprovementDrill Down

• Profitability trends• Competitive

comparison

• Show impact of profit improvement goals on profitability

• Revenue by region, product, segment, customer

• Profitability by product, customer

• Cost analysis and benchmarking

BMW Revenue GrowthEurope is the fastest growing region and Mini is the fastest growing brand .

0

2

4

6

8

10%

Americas

3%

Europe

9%

China

2%

Rest of World

9%

22% 45% 21% 13%% of Sales

0

3

5

8

10

13%

BMW

5%

Mini

12%

BMW Motorrad

11%

80% 14% 6%% of Sales

YOY Growth by Region

YOY Growth by Brand

Product Sales vs. ProfitsThe Series 1 and 3 models account for nearly 40% of sales, but only 10% of profits.

0

20

40

60

80

100%

Sales

Series 1

Series 3

Series 5

Series 7

X1

X3X5

Mini

Other

Profits

Product ProfitabilityMost of BMW’s profitability is driven by larger models, particularly the 5 platform.

0

20

40

60

80

100%

% of Total Gross Profit

Series1 Series

3 Series

5 Series

5 Series GT

6 Series

7 Series

X

X1

X3

X5

X6

Other

Z3/4

Mini

RR

Agenda

Profit Snapshot Levers for ImprovementDrill Down

• Profitability trends• Competitive

comparison

• Show impact of profit improvement goals on profitability

• Revenue by region, product, segment, customer

• Profitability by product, customer

• Cost analysis and benchmarking

BMW Cost ImprovementThe goal is to reduce current costs to a target level in line with best practices.

Target

Best Practice

Raw Materials

Purchased Parts

Manufacturing

Other

Current

Target

BMW Profit Improvement The goal is to improve EBIT margin by 17% by 2018.

2016 EBIT

Margin

9.20%

Optimize Product Portfolio

0.30%

Price/Mix

0.40%

Lower Material Cost

0.35%

Digital Improvement

0.25%

Efficiency Measures

0.25%

2018 EBIT

Margin

10.75%

+17%+17%

ResourcesUse these resources to learn more about how to use Mekko Graphics.

Videos Blogs &SupportChart Gallery

• Watch a recorded version of the full training webinar for step-by-step instructions on how to make each chart type

• Watch short videos on key chart types, analytical enhancements and productivity boosters

• Use the Chart of the Week blog for inspiration

• Visit the Build Your CQ blog for tips and tricks to improve your charting proficiency

• Use Ask an Expert from the Mekko Graphics ribbon or on our website if you’re struggling to find the right chart for your data

• Download the chart gallery with 150 charts

• Take these charts and modify them for your own use