Good Morning, Ladies and Gentlemen.
Our associates are working hard to manage our supply chains with the greatest possible flexibility so we can minimise the impact on the
Our consistent focus on emission-free mobility is also gaining further momentum. With the market launch of the
Two weeks ago, we unveiled the
The
Ladies and Gentlemen,
As you know, we extended our contract with our Chinese joint venture BBA until 2040 and increased our stake in BBA from 50 to 75%.
With the conclusion of this transaction, BBA has now been fully consolidated in the
This development is reflected in higher revenues and operating result in the Automotive Segment. The increase in the cost of sales also includes depreciation from the purchase price allocation as well as consolidation effects related to intra-group deliveries.
The previously held equity interest of 50% in BBA was revalued to its current fair market value. This resulted in a positive one-time effect of
The net amount from consolidation of BBA's liquid funds, less the purchase price, amounted to
Ladies and Gentlemen,
Group revenues for the first three months of the year climbed 16.3% to
The financial result includes the one-time effect of
Bolstered by a good performance, we continue to invest systematically and from a position of strength in the future competitiveness of our company. As previously announced, we are focusing on the electrification of our model line-up and on digitalisation, both of our vehicles and our business processes.
Our research and development expenses according to IFRS is therefore mainly in connection with new models, electrification and digitalisation of the vehicle fleet, as well as automated driving. R&D spending for the first quarter stood at
The R&D ratio, according to the German Commercial Code, for the quarter fell slightly to 4.5% (2021: 4.8%), owing to the strong increase in revenues. We expect the figure for the full year to be within our target range of 5 to 5.5%
Our capital expenditure is focused on future mobility and was significantly higher year-on-year at
Ladies and Gentlemen,
Let's move on to the individual segments.
In the Automotive Segment, the volume-related decrease in revenues was offset by a strong operating performance. Segment revenues rose by 17.4% to over
A share of this increase is also due to the first-time inclusion of BBA revenues as well as currency tailwinds. In addition, a favourable model mix and sustained good price realization due to our premium positioning are reflected in the revenue growth. Price increases in the markets helped partially to offset the increase in raw material and energy prices. Income from the resale of end-of-lease vehicles in the pre-owned car market also continued to develop positively.
The cost of sales in the Automotive Segment increased by 20.9% to
In addition to consolidation effects of approximately
The segment achieved an EBIT of
Excluding the consolidation effects mentioned above, the operating segment result would be around
The financial result for the segment climbed to around
The segment's free cash flow also reflects the full consolidation of BBA. As expected, the acquisition of BBA's liquid funds, less the purchase price, resulted in a net inflow of
In the Financial Services Segment, a total of 433,000 financing and leasing contracts were concluded with retail customers in the first three months of the year. The number of new contracts was down 11.4%, compared to the very strong prior-year quarter. In addition to the limited availability of new vehicles, due to supply issues, this also reflects more intense competition in the financial services sector, particularly in
The strong product mix and pricing led to a higher average financing volume compared to the previous year. As a result, new business volume decreased by only 3.1%.
Segment earnings before tax reached just over
Thanks to an attractive model line-up, the Motorcycles Segment was able to maintain its sales growth. With more than 47,000 units sold, we once again reported double-digit growth (+11.3%) and posted our best-ever first-quarter sales. The segment's operating earnings for the quarter totalled
Ladies and Gentlemen,
With lower economic expectations, rising inflation and high energy and raw material prices, we face growing uncertainties in our business environment.
Despite these challenging conditions, the
Driven by the full consolidation of BBA, we expect to see a significant year-on-year increase in both Group pre-tax earnings and employee numbers.
In the Automotive Segment, despite supply bottlenecks and production downtimes in the first quarter, we forecast that vehicle sales for the full year will be on par with last year. The percentage of electrified vehicles should also increase significantly and the number of fully-electric vehicles should more than double We expect that the BEV share will be at least 10% of total sales volume.
We are targeting a slight reduction in CO2 emissions in the new vehicle fleet and CO2 emissions per vehicle produced.
We still expect the EBIT margin in the Automotive Segment to be within the range of 7 to 9%.
In the Financial Services Segment, we can confirm our target range of 14 to 17% for return on equity.
In the Motorcycles Segment, we anticipate a slight increase in deliveries, with an EBIT margin within our target range of 8 to 10%.
Our guidance assumes that the semiconductor supply situation will ease at the earliest in the second half of 2022.
At the same time, we do not expect the limited availability of vehicle components due to the war in
It is impossible to foresee how the geopolitical situation will evolve. That is why the possibility of the conflict expanding beyond
Ladies and Gentlemen,
Despite geopolitical and global economic uncertainties, the
Demand for our products remains strong - with especially high new orders for our all-electric vehicles.
We are investing in e-mobility and digitalisation to secure the future sustainability of our company, while maintaining our strong operating performance.
That is how we are continuing to navigate the company carefully through turbulent waters and are in an excellent position for 2022.
Thank you!
*Consumption/emissions data:
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(C) 2022 M2 COMMUNICATIONS, source