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INVESTOR PRESENTATION.
August 2015
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2 CORPORATE
STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i9 P
RODUCTIONN
ETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
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THE BMW GROUP REACHED A NEW RETAIL SALESRECORD IN Q2 2015.
+4.9 %
+23.8 %
-7.7 %
+11.3 %
+7.5 %
480,465
91,626
988
47,048
573,079
BMW Group Investor Presentation, August 2015 Page 3
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BMW Group Investor Presentation, August 2015 Page 4
BMW GROUP ACHIEVES A STRONG SECOND QUARTER.
Profit before tax - BMW GroupQ2-2015: 2,582 mn Q2-2014: 2,654 mn -2.7PBT margin: 10.8% PBT margin: 13.3% -2.5 pp
EBIT - Automobiles
Q2-2015: 1,819 mn Q2-2014: 2,161 mn -15.8EBIT margin: 8.4% EBIT margin: 11.7% -3.3 pp
Revenues - BMW Group Change in %Q2-2015: 23,935 mn Q2-2014: 19,905 mn +20.2
Deliveries to Customers (in units) - AutomobilesQ2-2015: 573,079 Q2-2014: 533,187 +7.5
Revenues - AutomobilesQ2-2015: 21,650 mn Q2-2014: 18,504 mn +17.0
Free Cash Flow - AutomobilesQ2-2015: 1,497 mn Q2-2014: 270 mn .
EBT - Financial ServicesQ2-2015: 496 mn Q2-2014: 452 mn +9.7
2014 numbers adjusted
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BMW Group Investor Presentation, August 2015 Page 5
BMW GROUP POSTS SOLID FIRST HALF-YEARRESULTS.
Profit before tax - BMW GroupH1-2015: 4,851 mn H1-2014: 4,813 mn +0.8PBT margin: 10.8% PBT margin: 12.6% -1.8 pp
EBIT - Automobiles
H1-2015: 3,613 mn H1-2014: 3,741 mn -3.4EBIT margin: 8.9% EBIT margin: 10.7% -1.8 pp
Revenues - BMW Group Change in %H1-2015: 44,852 mn H1-2014: 38,140 mn +17.6
Deliveries to Customers (in units) - AutomobilesH1-2015: 1,099,748 H1-2014: 1,020,211 +7.8
Revenues - AutomobilesH1-2015: 40,543 mn H1-2014: 35,063 mn +15.6
Free Cash Flow - AutomobilesH1-2015: 2,557 mn H1-2014: 1,002 mn .
EBT - Financial ServicesH1-2015: 1,055 mn H1-2014: 905 mn +16.6
2014 numbers adjusted
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OUTLOOK 2015 POSITIVE BUSINESS DEVELOPMENTDESPITE CHALLENGES.
BMW Group
Solid increase of BMW Group EBT compared to previous year.
Automotive SegmentSolid increase in vehicle deliveries compared to previous year.
Significant increase in revenues compared to previous year.
EBIT margin in target range of 8-10%.
Financial Services SegmentReturn on equity of at least 18%, on par with previous year.
Motorcycle Segment
Solid rise in deliveries compared to previous year.
BMW Group Investor Presentation, August 2015 Page 6
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+8.4%
+9.7%
+1.3%
+9.5%
BMW GROUP AUTOMOTIVE: BALANCED SALESDISTRIBUTION AND SOLID YTD 07/15 GROWTH +7.5%.
Share ofglobalsales
Source: BMW and MINI Retail Sales only, YTD July 2015 (figures may not add to 100% due to rounding)
Growthrate
MainlandChina
Asia (w/o China)and Rest of World
Americas Europe
22%44%
21% 13%
BMW Group Investor Presentation, August 2015 Page 7
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SUSTAINABILITY
THE AUTOMOTIVE INDUSTRY WILL UNDERGO MASSIVECHANGES DURING THE UPCOMING 10 YEARS.
DIGITALIZATION
CARS ARE POWERED BYELECTRICITY
CO2 SUSTAINABILITY HAS GAINEDGREATER SIGNIFICANCE
CARS ARE DRIVING ALMOSTACCIDENT-FREE
UTILIZATION CONCEPTS LIKE CAR-SHARING ARE WIDELY AVAILABLE
CARS AS ELEMENTS WITHINTHE DIGITAL ECOSYSTEM
HUMAN-MACHINE-INTERFACEBECOMES MORE INTUITIVE
BMW Group Investor Presentation, August 2015 Page 8
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CONNECTED CARS NEW PRODUCTS
E-MOBILITYINNOVATIVE SERVICES
BMW Group Investor Presentation, August 2015 Page 9
CHANCES FOR BMW GROUP FOR FURTHER GROWTH.
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EvolutionEfficient combustion engines
Innovative technologies
RevolutionAlternative drive trains
Mobility services
BMW Group Investor Presentation, August 2015 Page 10
STRATEGY NUMBER ONE MANAGING THETECHNOLOGICAL CHANGE TO REMAIN FUTURE PROOF.
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INNOVATIVE TECHNOLOGIES AND SERVICES TO MEETCHANGING CUSTOMER DEMANDS.
Vehicle automation New BMW ConnectedDrive Store Touch Command
Connected Mobility iDrive Controller Fully automated parking
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
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BMW GROUP STRATEGY NUMBER ONE ADDRESSESTHE MAIN CHALLENGES & BUILDS THE BASIS FORFUTURE SUCCESS.
BMW Group Investor Presentation, August 2015 Page 13
Growth
Vision
Competitive Advantage
Values and Basic Principles
Shaping the Future ProfitabilityAccess to
Technologies andCustomers
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STRATEGIC OBJECTIVE.
We want to be the leading provider of premium products andpremium services for individual mobility.
BMW Group Investor Presentation, August 2015 Page 14
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DEFINITION OF PREMIUM.
A Premium Product is a product or service that promises a strongersatisfaction of needs by special characteristics and thereby creates ahigher desirability which is used to realize a higher sales price in the market.
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THE WAY AHEAD NUMBER ONE.
Number ONE defines
our vision for the year 2020. our mid-term targets for the year 2016.
our internal milestones.
Our vision is targeted towards creating value and securingfuture success. We are driven by our goal to increaseprofitability.
Page 16
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Internal CombustionEngine
E-Mobility
Hybrids
In times of technological change we have to improve ourexisting technologies and invest heavily in newtechnologies to remain future proof.
time
Growth,technological
progress
Technological change
REVOLUTIONAlternative drive trains
Mobility services
EVOLUTIONEfficient combustion engines
Innovative technologies
BMW Group Investor Presentation, August 2015 Page 17
TECHNOLOGICAL CHANGE TURNING A CHALLENGEINTO AN OPPORTUNITY.
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BMW Group Investor Presentation, August 2015 Page 18
TARGETS 2016.
BMW Group 2014 2016
R&D ratio (cash R&D, %) 5.7 5.0 5.5
Capex ratio (%) 7.6 2,000
Return on Capital Employed (%) 61.7 > 26.0
Return on Sales (EBIT, %) 9.6 8.0 10.0
Free cash flow (euro million) 3,481 > 3,000
Segment Financial Services
Return on Equity (%) 19.4 > 18.0
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E-mobility
New materials
New technologies
Strong growth ofproduct portfolio
Seizing newopportunities
Profitability
Standardisation
Innovation
Broader R&Dspectrum
BMW Group Investor Presentation, August 2015 Page 19
MANAGING VOLUME GROWTH, INNOVATION ANDPROFITABILITY THROUGH COST-CONSCIOUS,EFFICIENT R&D.
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BMW Group Investor Presentation, August 2015 Page 20
THE MODULAR STRATEGY IS THE ENABLER FOR THEEXPANSION OF THE BMW GROUP MODEL RANGE.
Modular front seatCommon elements
e.g.: Structure Head restraint
Modular product
Front seat attachmente.g.:
Standardisedseat installationprocess
Modular system
Underbodye.g.:
Front seatattachments
Architectures
Lower investment costsLower fixed costsLower manufacturing costs
Shorter development timeShorter time to market
Lower development costs
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BMW architectures allow maximum differentiation between models in terms of designand dimensions and account for about 70% of all production cost.
Engine compartment Drivetrain Rear
BMW architecture = 3 core areas drivetrain, front wall and fuel/energyspace.
BMW Group Investor Presentation, August 2015 Page 21
COMMON ARCHITECTURE, NOT PLATFORMS.IN PREMIUM VEHICLES DIFFERENTIATION IS KEY.
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Cylinders (inline) -3 -4 -6
Gasoline >60 %
Diesel >60 %
30-4
0%
Common parts shared withingasoline or diesel engines
is approx. 60%.
Between the gasoline anddiesel engines there is a40% sharing.
BMW Group Investor Presentation, August 2015 Page 22
THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILYHIGH LEVELS OF COMMONALITY BETWEEN ANDWITHIN DIESEL AND GASOLINE ENGINES.
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CustomerTreatment
Product Genius
Test Drives
PoS.Digital
ShowroomLayout / furniture
Tools
Retail HR MysteryShopping
IntegratedDealer Support
StockOptimization
Stationary Formats(e.g. Brand Store)
eRetailMyBMW
BMW Group Investor Presentation, August 2015 Page 23
FUTURE RETAIL AS BMW GROUPS HOLISTICAPPROACH TO ENHANCE RETAIL EXPERIENCE.
http://www.bimmertoday.de/wp-content/uploads/MINI-Logo1.jpghttp://www.bimmertoday.de/wp-content/uploads/MINI-Logo1.jpghttp://upload.wikimedia.org/wikipedia/de/3/37/Bmw_i_logo.pnghttp://upload.wikimedia.org/wikipedia/de/3/37/Bmw_i_logo.png7/25/2019 InvestorPresent August 2015
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BMW Group Investor Presentation, August 2015 Page 24
IMPRESSIONS OF AN ENHANCED POINT OF SALE.ROLLED OUT TO 40 MARKETS BY END OF 2014.
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Current Stationary Formats
Brand Store Brand Experience Center Pop Up Stores City Sales Outlet
Location: Incheon, Korea.
Driving Center in Korea is thefirst one worldwide to combineboth a driving track and adedicated brand experience.
Open since summer 2014.
Location: UK.
Six successful Pop Ups pilotedin the UK.
Total visitors after half a year:236,000 visitors.
Location: Rome, Italy.
City Sales Outlet Rome openedon March 7th, 2014.
400 sqm large showroomlocated on the central ViaBarberini.
Location: Brussels, Belgium.
Conversion of company ownedoutlet into Brand Store.
Received Iconic Award 2014 inthe category Interior DesignRetail.
PoC Brussels PoC RomePoC UK
BMW Group Investor Presentation, August 2015 Page 25
STATIONARY FORMATS FROM VISION TO REALITY.EXAMPLES OF NEW CONCEPTS.
PoC Incheon
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BMW Group Investor Presentation, August 2015 Page 26
GROUP PILOTING END-TO-END ONLINE BUYINGEXPERIENCE: eRETAIL IN UK.
Complete product range incl. BtO and BtS vehicles.
Multi-channel experience covering online, CIC, Dealer.
Personal consultation 7 days a week from 08:00 to 22:00 via live chat, eMail or
phone. 9 Dealers in our pilot market UK. Start of national rollout in Q4 / 2015.
End-to-end digital sales process incl.:
Genius Live-Chat.
Finding faster available stock cars.
Trade-in of used vehicle.
Financing and credit check.
Online payment.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
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BMW Group Investor Presentation, August 2015 Page 28
A REVOLUTION. PURPOSE BUILT.BMW i3 EXTERIEUR.
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BMW Group Investor Presentation, August 2015 Page 29
A REVOLUTION. PURPOSE BUILT.BMW i3 INTERIEUR.
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BMW Group Investor Presentation, August 2015 Page 30
A REVOLUTION. PURPOSE BUILT.BMW i3 INTERIEUR.
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BMW Group Investor Presentation, August 2015 Page 31
A REVOLUTION. PURPOSE BUILT.BMW i3 PROFILE & SPECIFICATIONS.
MSRP starts at 34,950 EUR*
Weight (DIN) 1,195kg
Turning circle 9.86m
Output 170hp/250NmBattery capacity 22kWh
0-60km/h (37mph) in 3.7s
0-100km/h (62mph) in 7.2s
Top speed (cut-off) at 150km/h (93mph)
Charging times from < 30min at 50 kW fast charge to ~8h at domestic socket
Range up to 160km (100miles) electric driving @ customer,up to 200km (124miles) in most efficient mode
* MSRP in Germany including 19% VAT
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BMW Group Investor Presentation, August 2015 Page 32
THE WORLDS MOST PROGRESSIVE SPORTS CAR:THE BMW i8.
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BMW Group Investor Presentation, August 2015 Page 33
THE BMW i8 REPRESENTS THE REVOLUTIONARY ANDFORWARD-THINKING PINNACLE OF EFFICIENTDYNAMICS.
MSRP starts at 126,000 EUR*
Weight (DIN) 1,485kgOutput 362hp/320Nm
0-100km/h (62mph) in 4.4s
Top speed (cut-off) 250km/h (155mph)
Electric driving range 37km (23miles) @ NEDC
Fuel consumption 2.1l/100km (112mpg) @ NEDC
49g CO2/km @ NEDC
* MSRP in Germany including 19% VAT
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Generate growth Shaping the future
New target groups.
New products andservices.
Technologies/customers
Pioneeringtechnologies anddesign.
Visionary services.
New sales concepts.
Number ONE
Sharpen BMW imageas sustainable brand.
Differentiation fromcompetition.
Future-proof productportfolio.
Growth
Shaping the future
Profitability
Access to newtechnologies/customers
BMW Group Investor Presentation, August 2015 Page 34
STRATEGIC OBJECTIVES OF BMW i DERIVED FROMCORPORATE STRATEGY NUMBER ONE.
http://www.bmw-i.com/en_ww/bmw-i3/the-lifedrive-architecture-of-the-bmw-i3-concept/74/http://www.bmw-i.com/en_ww/bmw-i3/the-lifedrive-architecture-of-the-bmw-i3-concept/74/7/25/2019 InvestorPresent August 2015
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MINI E (2009-2012) BMW ActiveE (2011-2014)
16 million kilometers~600 vehicles
16 million kilometers~1,000 vehicles
BMW i3 and BMW i8
BMW i is more than just an electric car.
BMW i offers 360 ELECTRIC.
BMW i delivers joy of driving.
Adequate vehicle.
High interest of purchase.
Joy of driving and one-pedal-feeling.
High satisfaction of mobility needs.
Range was rarely the limiting factor.
Most users charge 2-3 times per week andcharging events decreased during usage.
OVER 32 MILLION ELECTRIC KILOMETERS WITH REALUSERS OF THE MINI E AND BMW ActiveE LEADING UPTO BMW i.
BMW Group Investor Presentation, August 2015 Page 35
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INTEGRATED APPROACH OF BMW i
New Processes New CustomersEmployees
New ElectricDrivetrain
New VehicleConcepts
Production Conceptof the Future
New Materialsand Recycling
Pioneering Design
BMW i PRODUCT STRATEGY.REDEFINING THE AUTOMOTIVE VALUE CHAIN.
BMW Group Investor Presentation, August 2015 Page 36
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FLEXIBLE MOBILITYA new mobile lifestyle
PUBLIC CHARGINGOn the road
HOME CHARGINGConvenient charging at home
ASSISTANCE SERVICESProvide assurance
360ELECTRIC.
BMW Group Investor Presentation, August 2015 Page 37
BMW i WILL PROVIDE FLEXIBLE MOBILITY.
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BMW Group Investor Presentation, August 2015 Page 38
SUSTAINABLE PRODUCTION FOR BMW i3 AND i8.BENCHMARK IN THE AUTOMOTIVE INDUSTRY.
100% renewable energy -70% water consumption-50 % energy consumption
More than 50% less Global Warming Potential (CO2e) acrossits entire product life cycle if electricity origins from renewable sources
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Press shop Paint shopBody shop Assembly
Conventional vehicle production
BMW i production Total production processing time reduced by ~50% ~50% less storage space requirements Number of components in the body shop reduced by 1/3 to ~130 No painting of full body, no anti-corrosion needed
BMW plantLeipzig
BMW plantsDingolfing & Landshut
Body shop
CFRP parts
Externallysourced parts
Assembly
Painted plasticcladding exterior
Drive module
NEW PRODUCTION CONCEPT. NO PRESS SHOP.PAINTING OF THE EXTERIOR PLASTIC PARTS ONLY.
BMW Group Investor Presentation, August 2015 Page 39
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Preform CFRP-components
BMW i3 & i8
The production of CFRP components is our core competence preforming, Resin-Transfer-Moulding (RTM), milling andtempering is all done in the BMW Group plant in Landshut.Painting and final assembly is done in the BMW Group plant inLeipzig.
BMW GROUP
JV MSP*,Otake/Japan
Mitsubishi Rayon Co. Ltd.(MRC), Otake/Japan (Steam) Cracking Ammoxidation
Acrylonitrile
Polymerisation / Spinning
SGL ACF,Moses Lake/USA
Oxidation Carbonisation
PAN-Precursor
SGL ACF,Wackersdorf/Germany
Knitting
Carbon Fibers
*) Joint Venture Mitsubishi Rayon SGL Precursor Co. Ltd. (MSP)
CF
Fabrics
Recycling
SGL Automotive Carbon Fibers a BMW Group and SGL Group JV
BMW Group Investor Presentation, August 2015 Page 40
CARBON FIBER PRODUCTION CORE COMPETENCE WITHIN BMW GROUP.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
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265
231
169
79
125
44 41 3928 26 24
0
50
100
150
200
250
300
MainlandChina
USA Germany* UK BRIKT** France Italy Japan Belgium Nordics*** Canada
COMBINED BRIKT SALES ARE WITHIN THE TOP 5MARKETS FOR BMW GROUP YTD 2015.
*Germany: Registrations; **BRIKT: Brazil, Russia, India, South Korea and Turkey*** Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden
Source: BMW & MINI Retail data, YTD July 2015
in 1,000 units
BMW MINI
BMW Group Investor Presentation, August 2015 Page 42
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0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014 YTD2014
YTD2015
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012 2013 2014 YTD2014
YTD2015
0
2
4
6
8
10
12
20 08 20 09 2010 2011 2012 2013 20 14 YTD2014
YTD2015
0
510
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012 2013 2014 YTD2014
YTD2015
0
2
4
6
8
10
12
14
16
18
20
2008 2009 2010 2011 2012 2013 2014 YTD2014
YTD2015
0
20
40
60
80
100
120
140
160
2008 20 09 20 10 2011 20 12 2013 20 14 YTD2014
YTD2015
MINI
Retail development in Brazil Retail development in Russia
Retail development in India Retail development in South Korea Retail development in Turkey
BRIKT MARKETS BMW AND MINI RETAILDEVELOPMENT YTD 2015.
In 1,000 units BMW
Source: BMW & MINI Retail data, YTD July 2015
Retail development in BRIKT
40 45
7099
110
3
6
10
1517
10
1917
22
30
4540
34
6
9
8
1046
10 11
19
27
4034
27
57
13
17
22
17
9
37
7
131
72 79 9
17135
2318
3 3
26
31
11
17
BMW Group Investor Presentation, August 2015 Page 43
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30.0
25.1
20.6
12.511.8 11.3 11.2
8.2 7.9
6.0
4.4
2.6
0
5
10
15
20
25
30
35
Germany UnitedKingdom
Italy France USA S. Korea Turkey Russia China Japan Brazil India
PREMIUM SEGMENT SHARE OF TOTAL MARKET 2014.
in %
World Average: 10.3%
Source: Global Insight 04/2015. Premium definition: Premium including Luxury excluding Near-Premium.BMW Group Investor Presentation, August 2015 Page 44
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014 2015 2016 2017 2018 2019 2020 2021
China, CAGR +7.8%
Japan, CAGR -0.3%
North America, CAGR +3.6%
Western Europe, CAGR +2.9%
Rest of World, CAGR +5.8%
Premium Segment:CAGR 2014-2020: +4.6%Total Growth 2014-2020: 31%
*BRIKT refers to Brazil, Russia, India, South Korea and Turkey
BRIKT*, CAGR +6.6%
Source: Global Insight 04/2015.
GLOBAL ANNUAL PREMIUM SEGMENT SALES AREEXPECTED TO GROW TO 11.7 MN UNITS BY 2020.
BMW Group Investor Presentation, August 2015 Page 45
Region (000units)
2014 2020 Chg.
World 8,907 11,689 31%
Rest of World 805 1,128 40%
BRIKT* 707 1,036 47%
China (Mainland) 1,830 2,869 57%
Japan 314 309 -1%
North America 2,169 2,688 24%
Western Europe 3,083 3,659 19%
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13.8 21.0 30.746.8
115.3138.2
185.3 192.2 180.1
106.3 101.8
22.630.6
35.243.7
53.7
94.4
141.2
198.5
275.9
155.7 163.5
0
50
100
150
200
250
300
350
400
450
500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 YTD 2015 YTD
JV sales Import
62% 59% 53% 48% 32% 61%41% 43%Share of JV Sales
BMW AND MINI RETAIL DEVELOPMENTIN MAINLAND CHINA, YTD 2015.
36.451.6
65.890.5
169.0
232.6
326.4
Source: BMW Group Retail data, YTD July 2015
in 000 units
390.7
456.0
51% 59% 62%
261.9 265.2
BMW Group Investor Presentation, August 2015 Page 46
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1 series: 3.0%
MINI: 6.3%
X1: 8.7%
X6: 1.2% 5 series: 34.3%
4 series: 1.1%
X3: 6.1%
Source: BMW & MINI Retail data, June 30, 2015
X5: 7.2%
3 series: 24.0%
X4: 2.6%
Z4: 0.1%
6 series: 0.1%
7 series: 3.3%
2 series: 1.9%
BMW Group Investor Presentation, August 2015 Page 47
BMW AND MINI RETAIL MIX IN MAINLAND CHINA AS OFJUNE 30, 2015.
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* 4S: sales, service, spare parts, survey,5S: sales, service, spare parts, survey, sustainability
Outlet BMW MINIEast 103 23North 89 26South 106 24Southeast 72 15West 95 21Total 465 109
Showroom
Service
4S/5S*
UCCBMW Group Investor Presentation, August 2015 Page 48
465 BMW AND 109 MINI DEALER OUTLETS INOPERATION BY JUNE 30, 2015.
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2006 2014 2020E
CHINA PREMIUM SEGMENT DEVELOPMENT.
annual growth rate+35%
2,869
1,830
170
With this development, China will remainthe biggest market for the BMW Group worldwide.
in 000 units
Source: Global Insight 04/2015.
CAGR 2014-2020: 7.8%
BMW Group Investor Presentation, August 2015 Page 49
C O O S CC SS S O
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BMW BRILLIANCE AUTOMOTIVE A SUCCESS STORYWITH GROWING REVENUE AND EARNINGSCONTRIBUTION.
31 35 44 54
94
141
199
276
133 142
0
50
100
150
200
250
300BBA retail sales in 1,000 units
BBAs contribution to BMW Groups at-equityresult (in EUR million)
11 2542
102175
280
411
658
428
284
0
100
200
300
400
500
600
700
293 406532
1,046
1,729
2,962
3,588
4,417
2,160 2,352
0
1,000
2,000
3,000
4,000
5,000
BMW Group revenues from goods and servicessold to BBA (in EUR million)
BMW Group Investor Presentation, August 2015 Page 50
CONTENT
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
THREE AUTHENTIC PREMIUM BRANDS
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BMW Group Investor Presentation, August 2015 Page 52
THREE AUTHENTIC PREMIUM BRANDS.
Sheer drivingpleasure
The worlds most excitingpremium small car brand
The pinnacle ofautomobile luxury
DELIVERIES TO CUSTOMERS 2015 YTD
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Deliveries of automobiles (in units) July 2015 YTD July 2014 YTD Change in %
Total BMW 1,079,563 1,025,936 +5.2
1 series 100,291 111,401 +43.02 series (incl. Active Tourer) 78,872 13,859
3 series (incl. GT) 254,432 275,250+3.7
4 series 90,565 57,295
5 series (incl. GT) 199,834 223,609 -10.6
6 series 12,576 14,769 -14.8
7 series 21,771 29,839 -27.0
X1 65,793 91,403 -28.0
X3 76,569 93,541 -18.1
X4 32,251 1,648 -
X5 100,931 79,544 +26.9
X6 25,773 20,161 +27.8Z4 5,121 6,965 -26.5
BMW i 14,784 6,652 -
Total MINI 191,355 156,182 +22.5
Total Rolls-Royce 2,035 2,269 -10.3
BMW Group 1,272,953 1,184,387 +7.5BMW Group Investor Presentation, August 2015 Page 53
DELIVERIES TO CUSTOMERS 2015 YTD.
BMW GROUP AUTOMOTIVE MAJOR MARKETS
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BMW Group Investor Presentation, August 2015 Page 54
BMW GROUP AUTOMOTIVE MAJOR MARKETS.DELIVERIES TO CUSTOMERS 2015 YTD.
Deliveries of automobiles (in units) July 2015 YTD July 2014 YTD Change in %Mainland China 265,215 261,919 +1.3
USA 231,044 213,754 +8.1
Germany1) 169,066 160,213 +5.5
United Kingdom 124,935 108,372 +15.3
BRIKT2) 78,770 71,839 +9.6
France 44,017 36,631 +20.2
Italy 41,334 37,899 +9.1
Japan 38,603 34,550 +11.7
Belgium 27,714 25,432 +9.0
Nordics3) 26,333 24,117 +9.2
Canada 23,785 20,977 +13.4
Rest of world 202,137 188,684 +7.1
BMW Group 1,272,953 1,184,387 +7.51)Registrations 2)BRIKT: Brazil, Russia , India, South Korea and Turkey; 3)Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden
Data for individual markets include BMW and MINI vehicles; Rolls Royce and differences between Retail Sales and registrations are included in Rest of World and total figures.
DELIVERIES TO CUSTOMERS FY 2014
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Deliveries of automobiles (in units) FY-2014 FY-2013 Change in %
Total BMW 1,811,719 1,655,138 9.5
1 series 190,033 213,611 8.22 series 41,038 -
3 series (incl. GT) 480,214 500,64316.4
4 series 119,580 14,763
5 series (incl. GT) 373,053 366,992 1.7
6 series 23,988 27,687 -13.4
7 series 48,519 56,001 -13.4
X1 156,471 161,353 -3.0
X3 150,915 157,303 -4.1
X4 21,688 - -
X5 147,381 107,231 37.4
X6 30,244 36,688 -17.6Z4 10,802 12,866 -16.0
BMW i 17,793 - -
Total MINI 302,183 305,030 -0.9
Total Rolls-Royce 4,063 3,630 11.9
BMW Group 2,117,965 1,963,798 7.9BMW Group Investor Presentation, August 2015 Page 55
DELIVERIES TO CUSTOMERS FY-2014.
BMW GROUP AUTOMOTIVE MAJOR MARKETS
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Deliveries of automobiles (in units) FY-2014 FY-2013 Change in %Mainland China 455,979 390,713 16.7
USA 395,850 375,782 5.3
Germany1) 273,433 268,838 1.7
United Kingdom 204,749 188,837 8.4
BRIKT2) 134,901 131,447 2.6
France 67,449 64,082 5.3
Japan 64,016 64,216 -0.3
Italy 63,392 59,200 7.1
Belgium 45,005 43,255 4.0
Nordics3) 41,408 37,072 11.7
Canada 38,188 37,723 1.2
Rest of world 333,595 302,633 10.2
BMW Group 2,117,965 1,963,798 7.91)Registrations 2)BRIKT: Brazil, Russia , India, South Korea and Turkey; 3)Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden
Data for individual markets include BMW and MINI vehicles; Rolls Royce and differences between Retail Sales and registrations are included in Rest of World and total figures.
BMW Group Investor Presentation, August 2015 Page 56
BMW GROUP AUTOMOTIVE MAJOR MARKETS.DELIVERIES TO CUSTOMERS FY-2014.
REGIONAL RETAIL MIX YTD JULY 2015
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Nordics: 2.1%
Japan: 3.0%Canada: 1.9%
USA: 18.2%
Germany: 13.3%
Mainland China: 20.9%
BRIKT1): 6.2%
Italy: 3.3%
Rest of theWorld: 15.7%
Belgium: 2.2%
France: 3.5%
1) BRIKT: Brazil, Russia, India, South Korea, Turkey
Source: BMW and MINI Retail Sales only, YTD July 2015
UK: 9.8%
BMW Group Investor Presentation, August 2015 Page 57
REGIONAL RETAIL MIX YTD JULY 2015.
BMW RETAIL BY MODEL 2014 (2013)
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190,033
(213,611) 41,038
480,214(500,643)
119,580(14,763)
373,053(366,992)
23,988(27,687)
48,519(56,001)
156,471(161,353)
150,915(157,303) 21,688
147,381(107,231)
30,244(36,688)
10,802(12,866) 17,793
1,811,719(1,655,138)
1 Series 2 Series(incl.
ActiveTourer)
3 Series(incl. GT)
4 Series 5 Series(incl. GT)
6 Series 7 Series X1 X3 X4 X5 X6 Z4 BMW i
(2.2%)
10.5% 2.3% 26.5% 6.6% 20.6% 2.7% 8.6% 8.1%
Total BMW Group sales: 2,117,965 (1,963,798) units.BMW brand share: 1,811,719 (1,655,138) unitsor 85.5% (84.3%) of total sales.
(1.7%)
(12.9%) (30.3%) (0.9%) (22.2%) (3.4%) (9.7%) (6.5%)
1.3%
(1.7%)
8.3%
(9.5%)
1.2% 0.6%
(0.8%)
1% 100%
(100%)
BMW Group Investor Presentation, August 2015 Page 58
BMW RETAIL BY MODEL 2014 (2013).
MINI RETAIL BY MODEL 2014 (2013)
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140,051(128,498)
17,327(21,167)
13,326(21,030)
106,995(101,897)
3,816(8,436)
5,101(9,315)
15,567(14,687)
302,183(305,030)
Hatch 3door /5door
Convertible Clubman Countryman Coupe Roadster Paceman
100%46.4% 5.7% 4.4% 35.4%(100%)(42.1%) (6.9%) (33.4%) (2.8%)
234,175(216,538)
Total BMW Group sales: 2,117,965 (1,963,798) units.MINI brand share: 305,030 (301,526) unitsor 14.3% (15.5%) of total sales.
(4.8)1.7% 5.2%1.3%(3.1%)(6.9%)
BMW Group Investor Presentation, August 2015 Page 59
MINI RETAIL BY MODEL 2014 (2013).
BMW GROUP RETAIL SALES INCREASED ON AVERAGE
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in 1,000 units
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD July2015
BMW MINI Rolls-Royce
1,1051,209
1,3281,374 1,436
1,286
1,461+9.4%+3.5%
+9.2%-4.3%
-10.4%
+13.6%
1,845+14.2%
+9.9%
+10.6%
1,669
1,964
+6.4%
1,500
2,118
+7.9%
BMW Group Investor Presentation, August 2015 Page 60
BMW GROUP RETAIL SALES INCREASED ON AVERAGEBY 6.3% SINCE 2003.
+4.5%
+7.5%
1,273
BMW GROUP BRAND AND PRODUCT OVERVIEW
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MINI
4 Series
Sedan Wagon Hatch Coupe Convert. Roadster New Seg. SAV
Plus
Base
Plus
PlusPlus
Base
X77 Series6 Series /
i86 Series
Plus
Base
Luxury
Compact
LowerMedium
Small
Plus
Base
UpperMedium
Base
Plus
PlusPlus
Convert.Phantom Coupe
Ghost
3 Series 3 Series Z4 X3, X44 Series
MINIMINI MINI
1 Series /i3
2 Series 2 Series2 S. Act./
Gran T.
X5, X65 Series 5 Series GT
X1
MINI
6 Series
GT, GC
Wraith
announced
BMW Group Investor Presentation, August 2015 Page 61
BMW GROUP BRAND AND PRODUCT OVERVIEW.
PRODUCT ROADMAP 2015
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Q1 Q2 Q3 Q4
= M Models
1 Series 5-door &3-door LCI
X5 xDrive40e
X12 series Gran Tourer
X5 M
X6 M
7 Series6 Series & M6Convertible LCI*
6 Series & M6Coup LCI*
6 Series & M6Gran Coup LCI*
MINI Clubman
2 Series Convertible
BMW Group Investor Presentation, August 2015 Page 62
PRODUCT ROADMAP 2015.
3 Series derivatives LCI
MINI JohnCooper Works
*6 Series vehicles shown here
Luxury
Compact/Small
LowerMedium
UpperMedium
NEW PRODUCT 2015
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Launch 02/2015
BMW Group Investor Presentation, August 2015 Page 63
NEW PRODUCT 2015.BMW 2 SERIES CONVERTIBLE.
NEW PRODUCT 2015
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BMW Group Investor Presentation, August 2015 Page 64
NEW PRODUCT 2015.BMW 1 SERIES 5-DOOR LCI.
Launch 03/2015
NEW PRODUCTS 2015
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NEW PRODUCTS 2015.6 SERIES LCIS COUP, CONVERTIBLE & GRAN COUP.
BMW Group Investor Presentation, August 2015 Page 65
Launch 03/2015
NEW PRODUCTS 2015
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NEW PRODUCTS 2015.BMW X5M AND X6M.
BMW Group Investor Presentation, August 2015 Page 66
Launch 03/2015
NEW PRODUCT 2015
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Launch 06/2015
BMW Group Investor Presentation, August 2015 Page 67
NEW PRODUCT 2015.BMW 2 SERIES GRAN TOURER.
NEW PRODUCTS 2015
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BMW Group Investor Presentation, August 2015 Page 68
NEW PRODUCTS 2015.BMW X1.
Launch 10/2015
NEW PRODUCT 2015
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BMW Group Investor Presentation, August 2015 Page 69
NEW PRODUCT 2015.BMW 7 SERIES.
Launch Q4/2015
NEW PRODUCT 2015
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BMW Group Investor Presentation, August 2015 Page 70
NEW PRODUCT 2015.X5 eDRIVE.
Launch H2/2015
NEW PRODUCT 2015
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BMW Group Investor Presentation, August 2015 Page 71
NEW PRODUCT 2015.MINI CLUBMAN.
Launch H2/2015
CONTENT
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
2015 MOTORCYCLE PRODUCT HIGHLIGHTS
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2015 MOTORCYCLE PRODUCT HIGHLIGHTS.
BMW R 1200 RS BMW S 1000 XR
BMW R 1200 R BMW F 800 R
BMW S 1000 RR
BMW Group Investor Presentation, August 2015 Page 73
SUCCESSFUL H1-2015 FOR BMW MOTORRAD WITH
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SUCCESSFUL H1 2015 FOR BMW MOTORRAD WITHSTRONG INCREASE IN EARNINGS.
BMW Group Investor Presentation, August 2015 Page 74
In million H1-2015 H1-2014 Change in %
Sales (units) 78,418 70,978 +10.5
Revenues 1,189 1,000 +18.9
Earnings before interests and taxes(EBIT)
227 119 +90.8
EBIT margin 19.1% 11.9% +7.2 pp
Earnings before taxes (EBT) 226 117 +93.2
BMW MOTORCYCLES RETAIL SALES 1990 H1-2015.
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in 1,000 units
BMW Group Investor Presentation, August 2015 Page 75
BMW MOTORCYCLES RETAIL SALES 1990 H1 2015.
31.3
50.2
74.6
84.7
92.6 93.0 92.3 97.5
100.1 102.5 101.7
87.398.0
104.3 106.4
115.2
123.5
78.4
0
20
40
60
80
100
120
140
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H12015
in 1,000 units
DEVELOPMENT OF MARKET SHARE .
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BMW Group Investor Presentation, August 2015 Page 76
DEVELOPMENT OF MARKET SHARE .
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total market>500cc BMW Market Sharein 1,000 units
MOST IMPORTANT MARKETS FOR BMW
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BMW Group Investor Presentation, August 2015 Page 77
MOST IMPORTANT MARKETS FOR BMWMOTORCYCLES IN 2014.
Germany
United States
Italy
BrazilUnited Kingdom
Other markets
France
Germany 17.6%
United States 12.4%
France 9.4%
Italy 8.5%
Brazil 6.1%
United Kingdom 5.5%
Spain 5.0%
Other markets 35.5%
Spain
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
CONTENT.
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
GLOBAL PRESENCE IN 54 COUNTRIES
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BMW Financial Services
MINI Financial Services
As per June 30, 2015
BMW Group Investor Presentation, August 2015 Page 79
GLOBAL PRESENCE IN 54 COUNTRIESWITH 7,520 EMPLOYEES.
SHIFTING CUSTOMER BEHAVIOR FROM OUTRIGHT
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Loan & LeasePackages
Outright Purchase
Past (1950)
Usage Offerings
Future (2050)Status Quo (2010)
+ +
29%
Urbanization
51%
Urbanization
69%
Urbanization
Financial Services Product & Service Offerings
Loan & Full Service Lease Packages
Fleet Management Solutions
Connected & IntermodalMobility
Flexible Solutions
BMW / MINIFinancial Services
The Ultimate Drive
Source: Gtz & Partners; UNO Revision Population Database 2009BMW Group Investor Presentation, August 2015 Page 80
SHIFTING CUSTOMER BEHAVIOR FROM OUTRIGHTPURCHASE TOWARDS FLEXIBLE USAGE OFFERINGS.
PROFIT BEFORE TAX (PBT) FINANCIAL SERVICES.
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1,092
1,3511,437
122
439124
345387 422
452515
605685
743
-292
365
1,214
1,790
1,5611,619
1,723
1,055
-500
-250
0
250
500
750
1,000
1,250
1,500
1,750
2,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1-2015
in euro million
1) FY-08 EBT includes a negative effect of EUR 1,057 million from additional credit and residual value risk provisions.2) FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business.3) FY-11 EBT includes a positive effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better than expected off-lease business.4) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business.5)
FY-13 figures adjusted in compliance with IAS 8.
2)
3)
4)
1)
BMW Group Investor Presentation, August 2015 Page 81
PROFIT BEFORE TAX (PBT) FINANCIAL SERVICES.
5)
RETURN ON EQUITY (ROE) FINANCIAL SERVICES.
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Page 82
U O QU ( O ) C S C S
23.5%22.2%
19.6%
2.6%7.2%
1.7%18.1%
-7.3%
9.2%
26.1%
29.4%
21.2% 20.0% 19.4%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
2007 2008 2009 2010 2011 2012 2013 2014
in %
2)
3)
1) FY-08 RoE includes a negative PBT effect of EUR 1,057 million from additional credit and residual value risk provisions (adjusted RoE: 19.2%).2) FY-10 RoE includes a positive PBT effect of EUR 122 million from better than expected off-lease business.3) FY-11 RoE includes a positive PBT effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better than expected off-lease business.4) FY-12 RoE includes a positive PBT effect of EUR 124 million from better than expected off-lease business.5) FY-13 figures adjusted in compliance with IAS 8.
4)
1)
5)
BMW Group Investor Presentation, August 2015
PENETRATION RATE RETAIL BUSINESS.
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13.6%17.8% 17.8% 19.2% 19.5% 17.1% 17.2% 17.4%
20.9%24.7%
24.1% 20.0% 20.7% 22.5% 20.8% 23.9%
20.9%
17.2% 18.3%19.1%
22.5%24.0% 25.2%
27.2%
27.6%
24.3% 24.1%
21.1% 19.7%
21.5%20.9%
21.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1-2015
Financing Leasing
34.5% 35.0%36.1%
38.3%
42.0% 41.1%42.4%
48.5%
44.6%
49.0%
41.1%
48.2%
* The penetration rate dropped significantly due to the consolidation of BMW Group Financial Services China as of January 1st, 2011.
*
40.4%
44.0%
41.7%
BMW Group Investor Presentation, August 2015 Page 83
45.1%
DEVELOPMENT OF CREDIT LOSS RATIO.
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0.54%
0.46%
0.41%
0.37%
0.41%
0.46%
0.59%
0.84%
0.67%
0.49%0.48%
0.46%0.50%
0.34%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1-2015
BMW Group Investor Presentation, August 2015 Page 84
RESIDUAL VALUE DEVELOPMENT IN THE USA.
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BMW Group Investor Presentation, August 2015 Page 85
Source: Manheim Used Vehicle Index, mix and mileage adjusted.
70
75
80
85
90
95
100
105
110
115
120
Jan-0
6
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-0
8
Apr-08
Jul-08
Oct-08
Jan-0
9
Apr-09
Jul-09
Oct-09
Jan-1
0
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-1
2
Apr-12
Jul-12
Oct-12
Jan-1
3
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
BMW brand used car index (through July 2015)
STRATEGIC FUTURE OF FINANCIAL SERVICES.
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BMW Group Investor Presentation, August 2015 Page 86
EXTENSION OFEU BANK
INTEGRATION OFING CAR LEASE
STRATEGICFOCUS AREAS
Customer Interface
Deposit Business integrated inBMW Group Financing Strategy
Improved Liquidity Steering
Open Market Access to ECB
Rapid integration process
Customer & employee retention
Business continuity andmarket share secured
# Unternehmen Unternehmen Unternehmen
1 LeasePlan LeasePlan LeasePlan
2 Arval Arval Arval
3 ALD ALD ALD
4 PSA F in an ce PSA F in ance ALPHABET
5 VW Leasing ALPHABET PSA Finance
6 GE Capital VW Leasing VW Leasing
7 RCI Banque GE Capital RCI Banque
8 ING CARLEASE RCI Banque GE Capital
9 ALPHABET Athlon Athlon
10 Athlon Daimler Fleet Daimler Fleet
Vor der Transaktion Nach der Transaktion Ende 2012Before transaction After transaction End of 2013
Growth & Complexity
Company CompanyCompany21,62,2
2,91,07,4
8,1
EU Bank
Volume in bn. EUR
Target Operating Model
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
SUSTAINABLITYMOBILE GENERATIONCENTER OF COMPETENCE URBAN MOBILITY:
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SUSTAINABLITYMOBILE GENERATIONIMPLEMENTING SUSTAINABLE URBAN MOBILITY TOGETHER WITH ALL STAKEHOLDERS.
Residents & their needs BMW i electric cars
(eCar) infrastructureCities
BMW Group Investor Presentation, August 2015 Page 88
BMW MOBILITY SERVICES PORTFOLIO AIMING AT NEW
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Securinginnovationand acceleration
Information andintermodalrouting
ParkingFlexible Use
DriveNow
Alphacity
Park@myHouse
ParkNow MyCityWay BMW i Ventures
BMW Group Investor Presentation, August 2015 Page 89
CUSTOMER GROUPS.
DriveNow. PREMIUM, FREE FLOATING CAR SHARING
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Page 90
,SERVICE FROM BMW GROUP & SIXT.
400,000+ customers in 8 cities
DriveNow Customers areBMW Groups
youngest &most moderntarget group
3 100+ carsPage 90BMW Group Investor Presentation, August 2015
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DriveNow ALSO OPENS THE WAY FOR E-MOBILITY ANDTHE BMW i3
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THE BMW i3.
100,000+ActiveE customer drives
Introducing
3,000+customers to
E-Mobility/ month
i3
intregrationin fleets in 2015
BMW Group Investor Presentation, August 2015 Page 92
DriveNow BRIDGES THE GAP BETWEEN YOUNG CARUSERS AND PREMIUM CAR BUYERS
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More young people between moving outand family creation do not own a car.
70%
75%
80%
85%
90%
95%
100%
0-2
3-5
6-8
9-11
12-14
15-17
18-20
21-23
24-26
27-29
30-32
33-35
1998
2008
DriveNow target group
18 30
Car demand
Customer age
Premium upper class
Premium middle class
Premium compactSmall car
DriveNow
Direct access
40 50 60
Key benefits of BMW Groups car sharing programme DriveNow : DriveNow has modern users DriveNow offers access to young users which can be converted to potential customers DriveNow offers contact to a customer group that later switches from usage to ownership DriveNow offers insights into customer behavior
DriveNow customers are 10 years younger than MINIcustomers.
Shareofperson
swithacarperhoushold
Age in years
BMW Group Investor Presentation, August 2015 Page 93
USERS AND PREMIUM CAR BUYERS.
BMW i VENTURES. BEST OF BOTH WORLDS GAINACCESS TO NEW TECHNOLOGIES AND CUSTOMER
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Page 94
ACCESS TO NEW TECHNOLOGIES AND CUSTOMERGROUPS.
45 incubatorworkspaces
1,000 +mobility servicesstartups screened
Quarterly meet ups with
around100 guestsfrom ventures scene
Page 94BMW Group Investor Presentation, August 2015
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
BMW GROUP GLOBAL PRODUCTION NETWORK.
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Moses Lake
Spartanburg
Shenyang (Tiexi, Dadong)
RayongChennai
Kulim
Jakarta
RosslynSanta Catarina (2014)
Manaus
Vehicle Plant
Assembly Plant
Engines / Components
BMW Group
Joint Venture
Contract Production
Cairo
RegensburgDingolfing
BerlinEisenach Leipzig
Wackersdorf
LandshutMunich
Kaliningrad
Born(2014)
Steyr
Graz
Hams HallOxfordSwindon
Goodwood
San Luis Potos (2019)
BMW Group Investor Presentation, August 2015 Page 96
AUTOMOBILE PRODUCTION BY PLANT IN 2014.
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Dingolfing, GermanyProduction of BMW 3, 5, 6, 7 Series
369.0Goodwood, UKProduction of Rolls-Royce
4.5
Spartanburg, USAProduction of BMW X3, X4,X5, X6
349.9Tiexi1, ChinaProduction of BMW 3 Series , X1, Zinoro 144.4
Regensburg, GermanyProduction of BMW 1, 3,4 Series, Z4
272.0Dadong1, ChinaProduction of BMW 5 Series LWB 143.4
Munich, GermanyProduction of BMW 3, 4 Series 228.1
Graz (Magna Steyr)2, AustriaMINI Countryman, MINI Paceman 113.4
Leipzig, GermanyProduction of BMW 1,2 Series, X1, i3,i8
211.4Born (VDL Nedcar)2
MINI Hatch29.1
Oxford, UKProduction of MINI 179.3 Assembly plants 52.3
Rosslyn, South AfricaProduction of BMW 3 Series
68.8
in 1,000 units
Dingolfing
Regensburg
OxfordLeipzig
Munich
Spartanburg
RosslynDadong1
Tiexi1
Graz2
Assembly Plants
1 Joint venture 2 Contract production
Born
BMW Group Investor Presentation, August 2015 Page 97
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THE BMW GROUPS CLEAN PRODUCTION PHILOSOPHY.MORE THAN CLASSICAL ENVIRONMENTAL
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Certified environmental management systems (ISO 14001/EMAS) at all sites worldwide
Target: 45% reduction in emissions/resource usage 2006 2020
Average improvement in resource efficiency in 2014 compared to 2013: 6.7%
Reducing water usageand processwastewater
Saving energy andreducing CO2
emissions
Reducing SolventEmissions
Avoiding or recyclingwaste
MORE THAN CLASSICAL ENVIRONMENTALMANAGEMENT.
BMW Group Investor Presentation, August 2015 Page 99
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
SUSTAINABILITY AT THE BMW GROUP.
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Page 101
First environmental manager in the automotive industry.
Establishment of a Sustainability Circle and Board.Corporate sustainability is declared as corporate target.
Executive Board resolution Sustainability is the guiding
principle of the BMW Groups corporate strategy.
1973
2000
2009
TOP RATINGS Dow Jones Sustainability Indexes:
BMW Group is the only automobilemanufacturer that has beencontinuously listed, Sector Leader 2014.
Carbon Disclosure Project: Industry leader
2011, 2012, 2013, 2014. FTSE4Good: Listed in the FTSE4Good
Index.
Oekom: Corporate Responsibility Ratingoekom, Status: Prime.
Sustainalytics:Ranked No. 1 in the DAX 30 Sustainalytics
(no update since 2011).
BMW Group Investor Presentation, August 2015
OUR ASPIRATION: SUSTAINABILITY LEADERSHIP.
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BMW Group Investor Presentation, August 2015 Page 102
OUR GOAL: Being the most sustainable and successful premium provider, theBMW Group shapes the individual mobility of the future, thus creating an addedvalue for customers, company and society.
OUR APPROACH: Our innovations benefit not only our customers, but alsosociety. Because we know: By acting in a sustainable manner, we make ourbusiness model viable for the future, and ensure our companys growth in thefuture.
FOR US, IT IS NOT SUFFICIENT TO FULFILL THE REQUIREMENTS. WE ARE TAKING THE LEAD.
ANCHORING & MANAGING SUSTAINABILITY.
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BMW Group Investor Presentation, August 2015 Page 103
Sustainability Board Comprises the entire Board of Management Chair: Chairman of the Board of Management BMW Group Responsible for strategic direction
Sustainability Circle Comprises representatives from all divisions Chair: Head of Sustainability and Environmental Protection Responsible for decision recommendations
Divisions Implementing sustainability targets by initiating appropriate
measures
pays into
Division Targets
Agreed objectives andset of measures for
sustainability
Division Targets
Agreed objectives andset of measures for
sustainability
Division Targets
Agreed objectives andset of measures for
sustainability
BSC BMW Group
Sustainable management is a corporatetarget and anchored in the BMW GroupsBalanced Scorecard
P e r spe k tiv e / S tra te gis c he Stor ic htung A ns pr uc hMessgre
(LangfristigeSteuerung)
Finanzen
Shareholder ValueAddedPKW: Operatives Ergebnis - Abweichungzur
5%-LinieMotorrad: Operatives Ergebnis -
Abweichungzur5%-Linie
SF: Ergebnis vorSteuernAbweichungzur10%-LinieFreeCashflow
RoCEKonzern
PKW: ROCE
Motorrad: ROCE
SF: RoESoftlab: Umsatzrendite
MinimalenKapitaleinsatzerreichen Investitionsquote
Lernen &Entwicklung
BMW Arbeitskostenim VergleichzumWettbewerb(Index)
ErfolgsabhngigeVergtung(%-Anteilam
Personalaufwand)FlexiblePersonalkapazitt(%-AnteilanGesamtkapazittauf GroupEbene)
BedarfsgerechteKompetenzenbereitstellen
Zudefinieren: Festlegungim RahmenderInitiative24
ExzellenteFhrungsicherstellenZudefinieren: Festlegungim RahmenderInitiative25
ESI
Attraktivittam Arbeitsmarkt
R a n gp l a tzi n I m a ge u m fra g en A K
Erfllungsgraddes BMW GroupProfils AKMeinungsfhrerschaft AK
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
AbbildunginGeschftsfeldern
GesellschaftlichgeschtzterPartnersein
TotalShareholder Return
WettbewerbsfhigenPersonalaufwanderreichen
Als attraktiverArbeitgeber betrachtet
werden
KorrespondierendekurzfristigeMessgre;
Linkzu jahrlichemZMP(bei Abweichung von
langfristigerMessgresieheKlammer)Ziellenker/ Zielnehmer
Unternehmenswert steigern
HoheRentabilitterreichen
Wachstum ProduktivittShareholderValue
Lernen&Entwicklung
Finanzen
Geschfts-prozesse
Kunden
Wachstum ProduktivittShareholderValue
Lernen&Entwicklung
Finanzen
Geschfts-prozesse
Kunden
W a ch s tu m P r od u kt ivittShareholderValue
Lernen&Entwicklung
Finanzen
Kunden
Geschfts-prozesse
W a ch s tu m P r od u kt ivittShareholderValue
Lernen&Entwicklung
Finanzen
Kunden
Geschfts-prozesse
INTEGRATION OF SUSTAINABILITY IN THE BMW GROUPS STRUCTURES AND PROCESSES
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
CO2 LEGISLATION IN MAJOR MARKETS.
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-12%2015
-30%2020
New vehicle fleet 2008 EU 27
- 38 %
2020
-22%2015
USA339g/mi (212g/km)
-26%
2016
2021
China
approx.
-12%2015
approx.
-36%2020
Japan
Illustration
154g/km
n. a.
14.2km/l (166g/km)**
** Consideration of test-cyclechange to JC08
250g/mi (156g/km)
120g/km
95g/km
-52%2025
163g/mi (102g/km)
* under discussion
Prognosis Fixed target
6.9l/100km (164g/km)
5.0l/100km* (119g/km)
16.3km/l (146g/km)
20.3km/l (117g/km)
Fleet objectives require a global reduction in CO2 emissions. Regional objectives are not directly comparable due to differences in vehicle portfolio (market demand) and
test-cycles/procedures.BMW Group Investor Presentation, August 2015 Page 105
FUTURE CO2 TARGETS CAN ONLY BE ACHIEVED WITHTHE HELP OF NEW DRIVETRAIN TECHNOLOGIES
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Today Tomorrow
Lower CO2 emissions Zero emissions
Improved combustionengines
Aerodynamics
Lightweight construction
Auto Start-Stop function
Brake energy regeneration Plug-in hybrid
Hybrid
Electro-mobility Fuel cell technology
BMW Group Investor Presentation, August 2015 Page 106
THE HELP OF NEW DRIVETRAIN TECHNOLOGIES.
EFFICIENT DYNAMICS OUR WAY TO REDUCE CO2.
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Brake energy regenerationTyres with reduced rolling resistance
Air Breather
Aerorims
Active spoiler
BMW BluePerformance
8-gearautomatic transmission
Air Curtain
Active air flap control
BMW TwinPower
Turbo Technology
Intelligentlightweightdesign
Aeroblade
Electric power steeringECO PRO Modus
Gear shift indicator
Auto Start Stop function
BMW Group Efficient Dynamics enginefamily for petrol and diesel engines
BMW Group Investor Presentation, August 2015 Page 107
NEW BMW EFFICIENTDYNAMICS ENGINE -SCALABILITY OF BASIC DESIGN OF ENGINE FAMILY
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New Engine Family
Vehicles Technologies
BMW Group Investor Presentation, August 2015 Page 108
SCALABILITY OF BASIC DESIGN OF ENGINE FAMILYALLOWS BROADER APPLICATION ACROSS VEHICLE
PROJECTS AND TECHNOLOGIES.
THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY MODULAR STRATEGY
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Combustion Chamber:
Optimal size, roundabout 500 ccm
Central injector
Minimized friction
Different aspects for Gasoline/Diesel:
Cylinder head elements
Combustion process
Approximate range of torque and
power per cylinder: Gasoline: 60-100 Nm, 30-50 kW
Diesel: 75-100 Nm, 20-40 kW
BMW Group Investor Presentation, August 2015 Page 109
MODULAR STRATEGY.
WE ARE TRANSFERRING BMW i TECHNOLOGY TO OURCORE BRAND VEHICLES
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Page 110
CORE BRAND VEHICLES.
BMW 3 Series eDrive~183 kW / 245 hp / >400Nm~2.1 ltr/100km / ~ 50 gCO2/km0-100 km/ h < 7.0 s~ 35 km purely electric driving
Market launch: 2016.
Fuel consumption EU test cycle .
BMW Concept Active Tourer eDrive>140 kW / 190 hp / >250 Nm~2.1 ltr/100km / ~ 50 gCO2/km0-100 km/ h < 8.0 s~ 35 km purely electric driving
Market launch: tbd.
BMW X5 xDrive40e230kW / 313 hp / 450Nm3.3 3.4 ltr/100km / 77 -78 gCO2/km0-100 km/h 6.8 sup to 31km purely electric driving
Market launch: Autumn 2015.
BMW Group Investor Presentation, August 2015
THE BMW GROUP 120G FLEET.
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Already 54 BMW Group models come with a maximum 120 g CO2/km.1
Fuel consumption figures: liters/100 km in EU test cycle, CO2 figures: g/km.
BMW 118d 3-Door110 kW / 150 hp3.8 l / 99 g
BMW 120d 3-Door140 kW / 190 hp3.9 l / 103 g
BMW 116d 5-Door85 kW / 116 hp3.6 l / 96 g
BMW 116d 3-Door85 kW / 116 hp3.6 l / 96 g
BMW 116d 3-Door 2
85 kW / 116 hp3.4 l / 89 g
BMW 116d 5-Door 2
85 kW / 116 hp3.4 l / 89 g
BMW 218d Coup
110 kW / 150 hp3.8 l / 101 g
BMW 118d 5-Door110 kW / 150 hp3.8 l / 99 g
BMW 120d 5-Door140 kW / 190 hp3.9 l / 103 g
BMW X1 sDrive 18d110 kW / 150 hp4.1 l / 109 g
BMW i3125 kW / 170 hp0.0 l / 0 g
BMW i3 Rex125 kW / 170 hp0.6 l / 13 g
BMW i8266 kW / 362 hp2.1 l / 49 g
BMW 520d140 kW / 190 hp4.1 l / 109 g
MINI One 3-Door75 kW / 102 hp4.6 l / 108 g
MINI Cooper SD 5-Door125 kW / 170 hp4.1 l / 109 g
MINI Cooper Clubman100 kW / 136 hp5.1 l / 118 g
MINI Cooper D Clubman110 kW / 150 hp4.1 l / 109 g
MINI Cooper D Countryman82 kW / 112 hp4.2 l / 111 g
MINI Cooper 3-Door100 kW / 136 hp4.5 l / 105 g
MINI One D 5-Door70 kW / 95 hp3.5 l / 92 g
BMW 418d Coup110 kW / 150 hp4.1 l / 109 g
BMW 518d110 kW / 150 hp4.2 l / 110 g
BMW 420d Gran Coup140 kW / 190 hp4.0 l / 106 g
MINI Cooper SD Paceman105 kW / 143 hp4.5 l / 119 g
BMW Group Investor Presentation, August 2015 Page 1111 Not all the models are exhibited in this slide. 2 EfficientDynamics Edition.
BMW 220d Convertible
140 kW / 190 hp4.1 l / 108 g
BMW 218i Active Tourer
100 kW / 136 hp4.9 l / 115 g
BMW 214d Active Tourer
70 kW / 95 hp3.8 l / 99 g
BMW 216d Active Tourer
85 kW / 116 hp3.8 l / 99 g
BMW 218d Active Tourer
110 kW / 150 hp4.1 l / 109 g
BMW 220d Active Tourer
140 kW / 190 hp4.3 l / 112 g
BMW 214d Gran Tourer
70 kW / 95 hp3.9 l / 104 g
BMW 216d Gran Tourer85 kW / 116 hp3.9 l / 104 g
BMW 218d Gran Tourer110 kW / 150 hp4.3 l / 114 g
BMW 316d85 kW / 116 hp3.9 l / 102 g
BMW 318d110 kW / 150 hp4.0 l / 106 g
BMW 318d Touring110 kW / 150 hp4.1 l / 109 g
BMW 320d Touring 2
120 kW / 163 hp4.0 l / 104 g
BMW 318d GT110 kW / 150 hp4.3 l / 112 g
BMW 320d GT140 kW / 190 hp4.3 l / 113 g
EFFICIENT DYNAMICS.HISTORY OF HYDROGEN / FUEL CELL CARS
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1984 BMW 745i 1990 BMW 735iL 1998 BMW 728h
2001 BMW 745h 2004 BMW Hydrogen 7 2006 BMW H2R
HISTORY OF HYDROGEN / FUEL CELL CARS.
BMW Group Investor Presentation, August 2015 Page 112
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
BMW GROUP ACHIEVES A STRONG SECOND QUARTER.
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BMW Group Investor Presentation, August 2015 Page 114
Profit before tax - BMW GroupQ2-2015: 2,582 mn Q2-2014: 2,654 mn -2.7PBT margin: 10.8% PBT margin: 13.3% -2.5 pp
EBIT - AutomobilesQ2-2015: 1,819 mn Q2-2014: 2,161 mn -15.8
EBIT margin: 8.4% EBIT margin: 11.7% -3.3 pp
Revenues - BMW Group Change in %Q2-2015: 23,935 mn Q2-2014: 19,905 mn +20.2
Deliveries to Customers (in units) - Automobiles
Q2-2015: 573,079 Q2-2014: 533,187 +7.5Revenues - AutomobilesQ2-2015: 21,650 mn Q2-2014: 18,504 mn +17.0
Free Cash Flow - AutomobilesQ2-2015: 1,497 mn Q2-2014: 270 mn .
EBT - Financial ServicesQ2-2015: 496 mn Q2-2014: 452 mn +9.7
2014 numbers adjusted
BMW GROUP POSTS SOLID FIRST HALF-YEARRESULTS
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BMW Group Investor Presentation, August 2015 Page 115
RESULTS.
Profit before tax - BMW GroupH1-2015: 4,851 mn H1-2014: 4,813 mn +0.8PBT margin: 10.8% PBT margin: 12.6% -1.8 pp
EBIT - AutomobilesH1-2015: 3,613 mn H1-2014: 3,741 mn -3.4
EBIT margin: 8.9% EBIT margin: 10.7% -1.8 pp
Revenues - BMW Group Change in %
H1-2015: 44,852 mn H1-2014: 38,140 mn +17.6
Deliveries to Customers (in units) - Automobiles
H1-2015: 1,099,748 H1-2014: 1,020,211 +7.8Revenues - AutomobilesH1-2015: 40,543 mn H1-2014: 35,063 mn +15.6
Free Cash Flow - AutomobilesH1-2015: 2,557 mn H1-2014: 1,002 mn .
EBT - Financial ServicesH1-2015: 1,055 mn H1-2014: 905 mn +16.6
2014 numbers adjusted
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VALUE ORIENTATION.
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Automotive:Return on Capital
Employed
Vehicle projects:Model return based onDCF
Finance & leaseportfolio:Cash flows
Motorcycles:Return on Capital
Employed
Financial Services:Return on Equity
Vehicle projects:Model return based onDCF
BMW Group Investor Presentation, August 2015 Page 117
EFFECTS ON AUTOMOTIVE SEGMENTS EARNINGS IN2014.
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Page 118
2014.
EBIT FY-2013*EBIT margin 9.4%
EBIT FY-2014EBIT margin 9.6%
-19
Net effectsFX/
Raw material
+26
Other operatingincome &expenses
+1.674
Volume/Mix/Market
-423
Depreciation
in euro million
-663
7.244
Other costchanges
6.649
BMW Group Investor Presentation, August 2015 *2013 numbers adjusted
EBIT MARGIN DEVELOPMENT AUTOMOTIVE SEGMENT.TARGET PROFITABILITY OF 8-10%.
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9.0 8.88.1 7.9 7.8
6.7 6.4 6.4
1.4
-0.6
8.0
11.8
10.8
9.49.6
8.9
-2
-1
0
1
2
3
4
5
67
8
9
10
11
12
13
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014 H1-2015
in %
*) 2012 figures have been adjusted in accordance with the revised version of IAS 19, see note 7 on page 106 of the annual report 2012.
Targetcorridor
BMW Group Investor Presentation, August 2015 Page 119
TARGET PROFITABILITY OF 8 10%.
DIVIDEND DEVELOPMENT AND PAYOUT RATIO.TARGET PAYOUT RATIO OF 30-40%.
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351392 419 419 458
694
197 197
852
1,508
1,6401,707
1,904
17.4%20.1% 18.7% 18.7%
15.9%
22.1%
59.7%
93.8%
26.3%30.7%
32.1% 32.0% 32.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
0
500
1,000
1,500
2,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
BMW Group Investor Presentation, August 2015 Page 120
TARGET PAYOUT RATIO OF 30 40%.
Dividend per share(in )
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ordinary share 0.52 0.58 0.62 0.64 0.70 1.06 0.30 0.30 1.30 2.30 2.50 2.60 2.90
Preferred share 0.54 0.60 0.64 0.66 0.72 1.08 0.32 0.32 1.32 2.32 2.52 2.62 2.92
Total payout (in million, LHS)
Payout ratio* (RHS)
*Payout ratio based on Group net income before minority interest.
NET INTEREST-BEARING ASSETS AUTOMOTIVESEGMENT.
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1 2 3 4 5 6
+ 5,267
+3,650
+ 4,140 -3,197
13,595+3,735
30.06.2015
31.12.2014
Euro million
Euro million
Cash and cashequivalents
Marketablesecurities
Financialliabilities
Net interest-bearing assets
Internal net financialreceivables from
Financial ServicesSegment
Internal net financial
receivables fromOther Entities
Segment
+ 5,752
+ 3,366
+ 5,306 -3,478
14,223+3,277
Cash and cashequivalents
Marketablesecurities
Financialliabilities
Net interest-bearing assets
Internal net financialreceivables from
Financial ServicesSegment
Internal net financialreceivables from
Other EntitiesSegment
SEGMENT.
BMW Group Investor Presentation, August 2015 Page 121
OPERATING CASH FLOW AND FREE CASH FLOWAUTOMOTIVE SEGMENT.
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4,4714,921
8,150 8,110
9,167
9,964
9,423
197
1,456
4,471
3,166
3,809
3,0033,481
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012 2013 2014
Cash inflow from operating activities Free Cash Flow before net investments in securities
in euro million
BMW Group Investor Presentation, August 2015 Page 122
AUTOMOTIVE SEGMENT.
* 2013 figures have been adjusted.
*
*
CAPITAL EXPENDITURE.STRATEGIC TARGET CAPEX RATIO: BELOW 7%.
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2,777 2,934 2,980 2,384 2,312 2,720 4,151 4,967 4,601
1,536 1,333 1,224
1,087951
972
1,089
1,744
1,499
8.8%
7.6%
7.9%
6.8% 5.4% 5.4%6.8%
8.8%
7.6%
5.4%
4.8%
5.4%
4.6%
3.7% 3.8%
5.2%
5.9%5.6%
0%
2%
4%
6%
8%
10%
12%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Capital expenditure in property, plant, equipment and intangible assets Capitalized development costs
Capital expenditure ratio* Capex into PPE ratio*
in euro million
4,267
4,3134,204
3,471
3,2633,692
5,240
* based on Group revenues
6,687
BMW Group Investor Presentation, August 2015 Page 123
6,100
RESEARCH & DEVELOPMENT COSTS.STRATEGIC TARGET (CASH) R&D RATIO: 5%-5.5%.
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5.2% 5.2% 5.3% 5.1% 5.1% 5.2%5.2% 5.4%
5.1%
6.5%
5.6%5.4%
4.8%4.6%
4.9% 5.1%
6.3%5.7%
47.9%
42.4% 42.8%44.4%
34.3%
28.8%27.6%
36.4%
32.8%
0%
10%
20%
30%
40%
50%
1%
2%
3%
4%
5%
6%
7%
8%
2006 2007 2008 2009 2010 2011 2012 2013 2014R&D Costs (IF RS) / Group revenues in % R&D Costs (HGB ) / Group revenues in % C apitalisation Ratio
BMW Group Investor Presentation, August 2015 Page 124
( )
in euro million 2006 2007 2008 2009 2010 2011 2012 2013 2014
Research & Development Costs(IFRS)
2,544 2,920 2,825 2,587 3,082 3,610 3,993 4,117 4,135
Research & Development Costs(HGB)
3,208 3,144 2,864 2,448 2,773 3,373 3,952 4,792 4,566
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
THE CENTRAL CORPORATE FINANCE STRATEGYSUPPORTS THE ENTIRE AUTOMOTIVE VALUE CHAIN.
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Research &Development
Production Sales &Marketing
FinancialServices
Ensure sustainable access to international financial marketsExplore and maintain presence and competence in all strategic important capital markets worldwide
Ensure independence from individual lenders, banks and financial instruments
Diversification of funding sources, investors and products. Maintain a solid level of liquidity.
Create value by optimizing financing costs on overall Group basisCredit spread management for each financial instrumentEnsure long-term, strategic perspective (instrument mix)
Financial Flexibility
Financial
Independence
Value Orientation
The main target of the Group funding strategy is ensuring BMW Groups solvency, also in times of crisis.
Object
ives
BMW Group Investor Presentation, August 2015 Page 126
CORPORATE FINANCE CAPABILITIES.
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Categories of available instruments over the spectrum of maturities:
CP
ABCP
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Funding is done worldwide to optimize refinancing costs and to establish a broad investor base.
USA
USD Commercial PaperUSD US PPUSD ABS
Euro Capital MarketsEUR Commercial PaperFrench Commercial Paper
EUR (EMTN) PPsEUR Benchmark BondsUSD EurodollarAUD EuroaussieNOK (EMTN) BondsSEK (EMTN) Bonds
EUR ABS
Great Britain
GBP (EMTN) PPsGBP BondsGBP ABS
Switzerland
CHF (EMTN) PPsCHF Bonds
CHF ABS
Japan
JPY (EMTN) PPsJPY Euro-YenJPY ABS
JPY Schuldschein
Australia
AUD (EMTN) PPAUD ABSAUD (AMTN) Bonds
Hong Kong
RMB (EMTN) PPHKD (EMTN) PP
South Africa
ZAR ABS
ZAR Domestic Bonds
Canada
CAD ABS
CAD (EMTN) PPsCAD Domestic Bonds
Mexico
MXN (EMTN) PP India
INR Domestic Bond
South Korea
KRW Domestic BondUSD ABS
Mainland China
RMB ABS
Brazil
BRL ABS
Page 128BMW Group Investor Presentation, August 2015
DEVELOPMENT OF BMW GROUP LIQUIDITY.
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2.0
7.5 7.8 7.4 7.8
9.3
8.1 8.5 8.4 7.9 8.1 7.7 7.7 7.5 7.58.2 7.7
6.92.4
0.7
1.61.6
2.3
2.7
2.72.6 2.7 3.0 2.9 3.0 3.1 3.2 3.1
3.1 4.04.4
0
2
4
6
8
10
12
14
FY-07 FY-08 FY-09 FY-10 FY-11 Q1-12 Q2-12 Q3-12 FY-12 Q1-13 Q2-13 Q3-13 FY-13 Q1-14 Q2-14 Q3-14 FY-14 H1-15
Cash & cash equivalents Marketable securities & investment funds
After significantly increasing liquidity during the economic and financial crisis,the BMW Group continues to maintain a solid liquidity position.
in euro billion
4.4
8.2
9.49.0
10.1
12.0
10.8 11.011.0 11.0 11.0 10.710.7 10.610.711.3
BMW Group Investor Presentation, August 2015 Page 129
11.711.3
DEVELOPMENT OF 5-YEAR CDS.
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0
100
200
300
400
500
BMW Group Investor Presentation, August 2015 Page 130
Source: Reuters Credit Views as of August 6, 2015
bps
BOND AND PRIVATE PLACEMENT MATURITIES.
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0
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Issuance Maturitiesin euro million
Status as of June 30, 2015; Maturities based on nominal values excluding derivatives.
BMW Group Investor Presentation, August 2015 Page 131
FINANCIAL DEBT AS OF JUNE 30, 2015.
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53.1%
46.9%
BMW Group maintained a well-diversified debt structure.The average maturity of financial liabilities is approximately 2.0 years.
49.5%
3.4%
8.3%
9.9%
0.9%
5.9%
7.2%
14.3%
0.5%
*Adjusted, excluding currency and interest rate derivatives
Bank Loans
CommercialPaper
ABS
Others
Customerdeposits
EMTNs/Bonds/SSDs
EUR 82.4 bn*
1 year
(53.5%***)
(46.5%***)
Debt Maturity**
> 1 year
** incl. derivatives*** comparative figures as of 31 December 2014
Brokered CDs
Structured finance
BMW Group Investor Presentation, August 2015 Page 132
Fed Funds
G L T ABS A t 2014 EUR 1 0b
FUNDING ACTIVITY IN 2014 & 2015.
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ABS
German Loan Term ABS, August 2014, EUR 1.0bn Brazil Dealer Floorplan Conduit, August 2014, BRL 200m South Africa Loan Term ABS, September 2014, ZAR 950m USA Loan Term ABS, October 2014, USD 1.0bn
USA Lease Term ABS, January 2015, USD 1.0bn Canada Lease Term ABS, June 2015, CAD 500m China Loan Term ABS, June 2015, RMB 2.6bn ABS Japan, June 2015, JPY 30bn
Bonds
CAD 400m dual tranche benchmark bond, November 2014: CAD 200m, 2.25 year term (3 month CDOR +41bp coupon) CAD 200m, 4.0 year term (2.27% coupon)
EUR 1.5bn dual tranche benchmark bond, January 2015: EUR 750m, 5 year term (0.5% coupon)
EUR 750m, 10 year term (1.0% coupon) AUD 500m bond, 3.0 year term, February 2015 (2.75% coupon) EUR 2.5bn triple tranche benchmark bond, April 2015:
EUR 1bn, 3 year term (3M EURIBOR+20bps) EUR 1bn, 7 year term (0.625% coupon) EUR 500m, 12 year term (1.0% coupon)
GBP 300m EMTN, 5 year term, May 2015 ( 1.75% coupon) EUR 600m EMTN dual tranche bond, June 2015:
EUR 300m, 2 year term (3M EURIBOR+14bps) EUR 300m, 3 year term (3M EURIBOR+17bps)
KWR 140bn Korea bond, 3 year term, June 2015 (fix mid swap, 40bps, 2,266% coupon)
Private Placements Issuance 2015: EUR 1,990mn Constant issuance in different currencies (EUR, JPY, AUD, SEK, USD, CHF, GBP, NOK, HKD, NZD)
Commercial Paper EUR 5.9 bn outstanding as of June 30, 2015
Schuldschein Issuance 2015: EUR 177m
BMW Group Investor Presentation, August 2015 Page 133
CONTENT.
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2 CORPORATE STRATEGY
4 GROWTH MARKETS
5 AUTOMOTIVE
6 MOTORCYCLES
7 FINANCIAL SERVICES
8 MOBILITY SERVICES
10 SUSTAINABILITY
11 EFFICIENT DYNAMICS
12 FINANCIALS
13 FUNDING
3 BMW i
9 PRODUCTION NETWORK
1 BMW IR AT A GLANCE
14 CONTACTS & CALENDAR
BMW GROUP INVESTOR RELATIONS CONTACTS.
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Torsten SchsslerHead of Investor Relations
Andreas StfflerEquity IR
Bernd DaserDebt & Equity IR
Ziye ZhouDebt & Equity IR
BMW Group InvestorRelations App for the iPad
http://www.bmwgroup.com/ir
BMW Group Investor Presentation, August 2015 Page 135
Patrick NeumayerEquity IR
BMW GROUP INVESTOR RELATIONS FINANCIALCALENDAR 2015.
mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.bmwgroup.com/e/0_0_www_bmwgroup_com/investor_relations/ir_2011.htmlmailto:[email protected]:[email protected]://www.bmwgroup.com/e/0_0_www_bmwgroup_com/investor_relations/ir_2011.htmlhttps://itunes.apple.com/us/app/bmw-group-ir-app/id522627230?mt=8https://itunes.apple.com/us/app/bmw-group-ir-app/id522627230?mt=8mailto:[email protected]:[email protected]:[email protected]:[email protected]7/25/2019 InvestorPresent August 2015
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04.08.2015 Quarterly Report June 2015
03.11.2015 Quarterly Report September 2015
16.03.2016 Annual Account Press Conference 2016
16.03.2016 Annual Report 2015
17.03.2016 Analyst and Investor Conference 2016
03.05.2016 Quarterly Report March 2016
12.05.2016 Annual General Meeting 2016
BMW Group Investor Presentation, August 2015 Page 136
BMW Group InvestorRelations App for the iPad
http://www.bmwgroup.com/ir
BMW INVESTOR RELATIONS ON THE ROAD 2015.
http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/investor_relations/ir_2011.htmlhttp://www.bmwgroup.com/e/0_0_www_bmwgroup_com/investor_relations/ir_2011.htmlhttps://itunes.apple.com/us/app/bmw-group-ir-app/id522627230?mt=8https://itunes.apple.com/us/app/bmw-group-ir-app/id522627230?mt=87/25/2019 InvestorPresent August 2015
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04.09.2015 Barclays Driverless World Conference London
15./16.09.2015 dbAccess IAA Cars 2015 Conference Frankfurt
17.09.2015 ESN European Conference Frankfurt
22./23.9.2015 Berenberg and Goldman Sachs German Corporate Conference Munich
24.09.2015 Baader German Investment Conference Munich
04.12.2015 Goldman Sachs Global Auto Conference London
BMW Group Investor Presentation, August 2015 Page 137
DISCLAIMER.
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This document contains forward-looking statements that reflect BMW Groups current views about futureevents. The words anticipate, assume, believe, estimate, expect, intend, may, can, could,plan, project, should and similar expressions are used to identify forward-looking statements.
These statements are subject to many risks and uncertainties or may be affected by factors outside BMWGroups control, including adverse developments in global economic conditions resulting in a decline in
demand in BMW Groups key markets, including China, North America and Europe; a deterioration in creditand financial markets; a shift in consumer preferences affecting demand for BMW Groups products; changesin the prices of fuel or raw materials; disruption of production due to shortages of materials, labor strikes orsupplier insolvencies; the effective implementation of BMW Groups strategic goals and targets; changes inlaws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy andsafety; and other risks and uncertainties, including those described under the heading Report on Risks andOpportunities in BMW Groups most recent Annual Report.
If any of these risks and uncertainties materializes or if the assumptions underlying any of BMW Groupsforward looking statements prove to be incorrect actual results may be materially different from those BMW