Date post: | 11-Apr-2017 |
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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