OVER 32 MILLION ELECTRIC KILOMETERS WITH REAL USERS OF THE MINI E AND BMW ActiveE LEADING UP TO BMW i. MINI E (2009-2012) BMW ActiveE (2011-2014) BMW i3 and BMW i8 16 million kilometers 16 million kilometers ~1,000 vehicles ~600 vehicles High satisfaction of mobility needs. Adequate vehicle. BMW i is more than just an electric car. Range was rarely the limiting factor. High interest of purchase. BMW i offers 360° ELECTRIC. Most users charge 2-3 times per week and Joy of driving and one-pedal-feeling. BMW i delivers joy of driving. charging events decreased during usage. BMW Group Investor Presentation, January 2014 Page 27
BMW i – A HOLISTIC APPROACH. LifeDrive 360° Electric BMW eDrive Mobility services Holistic Premium Carbon fibres Connectivity sustainability design of the future BMW Group Investor Presentation, January 2014 Page 28 Page 28
BMW i WILL PROVIDE FLEXIBLE MOBILITY. ASSISTANCE SERVICES HOME CHARGING “Provide assurance” “Convenient charging at home” 360° ELECTRIC. FLEXIBLE MOBILITY PUBLIC CHARGING “A new mobile lifestyle” “On the road” BMW Group Investor Presentation, January 2014 Page 29
SUSTAINABLE PRODUCTION FOR BMW i3 AND i8. BENCHMARK IN THE AUTOMOTIVE INDUSTRY. 100% – 50% energy – 70% water renewable energy Please click on this production picture for additional video content. BMW Group Investor Presentation, January 2014 Page 30
NEW PRODUCTION CONCEPT. NO PRESS SHOP NEEDED. PAINTING OF THE EXTERIOR PLASTIC PARTS ONLY. Conventional vehicle production Press shop Body shop Paint shop Assembly BMW i production • Total production processing time reduced by ~50% Externally • ~50% less storage space requirements sourced parts • Number of components in the body shop reduced by 1/3 to ~130 • No painting of full body, no anti-corrosion needed BMW plant Body shop Assembly Leipzig BMW plants Painted plastic CFRP parts Drive module Dingolfing & Landshut cladding exterior BMW Group Investor Presentation, January 2014 Page 31
CARBON FIBER PRODUCTION – CORE COMPETENCE WITHIN BMW GROUP. Recycling BMW GROUP Mitsubishi Rayon Co. Ltd. (MRC), Otake/Japan • (Steam) Cracking • Ammoxidation Acrylonitrile JV MSP*, Otake/Japan nts • Polymerisation / Spinning *) Joint Venture Mitsubishi Rayon – SGL Precursor Co. Ltd. (MSP) PAN-Precursor SGL ACF, Preform CFRP- BMW i3 & i8 Moses Lake/USA components • Oxidation • Carbonisation The production of CFRP components is our core competence Carbon Fibers – preforming, Resin-Transfer-Moulding (RTM), milling and tempering is all done in the BMW Group plant in Landshut . SGL ACF, CF Wackersdorf/Germany Painting and final assembly is done in the BMW Group plant in Fabrics Leipzig . • Knitting SGL Automotive Carbon Fibers – a BMW Group and SGL Group JV BMW Group Investor Presentation, January 2014 Page 32
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 33
Russia PRIORITY ON GROWTH MARKETS. Turkey Eastern Europe USA China India Brazil South Korea BMW Group Investor Presentation, January 2014 Page 34
NUMBER OF MILLIONAIRES IN THE ESTABLISHED AND BRIKT MARKETS. CAGR +5.7% 50,000 3,000 thsd. thsd. 2011 2020 45,701 +7.4% 45,000 2,500 2,500 2020 40,000 35,000 2,000 +14.3% 1,730 30,000 27,764 1,500 25,000 +13.9% 1,312 2011 1,205 +14.2% 20,000 1,001 1,000 +10.4% 15,000 +9.2% 694 601 520 10,000 500 375 303 286 273 5,000 0 0 Brazil Russia India Turkey South Korea Mainland Established Markets China (USA, Japan, Germany, United Kingdom, France, Italy) Source: Deloitte (June 2011): „The next decade in global wealth among millionaire households” BMW Group Investor Presentation, January 2014 Page 35
BMW GROUP’S CHINA STRATEGY FOCUSES ON DYNAMIC AND PROFITABLE GROWTH. China’s premium segment has highest CAGR + worldwide of 9.9% (2012-2020; Global Insight Data) Attractive growth prospects: + rising per capita income and growing upper middle class BMW Group Investor Presentation, January 2014 Page 36
BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA, FY-2013. 450 in ‘000 units BMW MINI 390.7 400 350 326.4 300 250 232.6 200 169.0 150 90.5 100 65.8 51.6 36.4 50 24.0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: BMW Group Retail data, FY-2013. BMW Group Investor Presentation, January 2014 Page 37
BMW AND MINI RETAIL MIX IN CHINA FY-2013. MINI: 7.3% 1 series: 4.3% 7 series: 6.6% X1: 9.7% 6 series: 0.5% X6: 2.8% X5: 6.6% 3 series: 19.1% X3: 8.2% 5 series: 34.6% Z4: 0.4% Source: BMW & MINI Retail data, FY-2013 BMW Group Investor Presentation, January 2014 Page 38
URBANIZATION IN CHINA – ONGOING POTENTIAL. China cities – brief introduction China urbanization forecast by 2025 9 cities population >10 million Beijing 16.5 million Tianjin 11.5 million cities 89 Shanghai 18.5 population 5-10 million Chengdu million 13 million Chongqing 36 million cities 176 population 1-5 million Guangzhou Shenzhen 10 million 12 million Highly-developed areas Less-developed areas • Huge number of cities in China: 350 prefecture level cities and 100 county level cities. • City development level is quite different. • 350 million people will be added to China’s urban population by 2025 (more than the population of today’s United States, McKinsey estimates). The scale of China’s cities and the trend towards city urbanization ensure that China will remain a substantial market. BMW Group Investor Presentation, January 2014 Page 39
CHINA PREMIUM SEGMENT DEVELOPMENT. assumed Ø annual growth rate ca. +6% 3,000 CAGR 2012-2020: 9.9% in ‘000 units 2,609 2,500 assumed Ø annual growth rate ca. +16% 1,927 2,000 1,500 Ø annual growth rate 1,224 +41% 1,000 500 111 0 2005 2012 2015E 2020E Source: Global Insight With this development, China will become the biggest market for the BMW Group worldwide. BMW Group Investor Presentation, January 2014 Page 40
420 BMW AND 92 MINI DEALER OUTLETS IN OPERATION BY 31 DECEMBER 2013. Hulunbei’er Daqing Qiqihar Jiamusi Harbin Kelamayi Songyuan Mudanjiang Changchun Urumqi Jilin Shenyang Yanji Hohhot Jinzhou Beijing Beijing Baotou Anshan Panjin Yingkou Wuhai Erdos Qinhuangdao Datong Tangshan Langfang Baoding Dalian Tianjin Yulin Shijiazhuang Dongying Yinchuan Taiyuan Yantai Handan Lvliang Jinan Weifang Xining Changzhi Qingdao Zibo Lanzhou Linfen Linyi Yuncheng Xinxiang Lianyungang Luoyang Xuzhou Zhengzhou Yancheng Huai’an Xi`an Bengbu Yangzhou Pingdingshan Hefei Wuxi Fuyang Weinan Nantong Anyang Deyang Nanjing Suzhou Mianyang Zhenjiang Yichang Wuhan Changzhou Shanghai Huzhou Jiaxing Hangzhou Wuhu Chengdu Ningbo Lhasa Jinhua Chongqing Shaoxing Shangrao Tongxiang Leshan Outlet BMW MINI Changsha Yibin Taizhou Lishui Zunyi Xiangtan Wenzhou Panzhihua Nanchang Zhuzhou Ningde East 131 30 Chenzhou Fuzhou Guiyang Ganzhou Qujing Putian 4S/5S* Zengcheng North 111 22 Quanzhou Guilin Longyan Guangzhou Showroom Liuzhou Kunming Zhaoqing Xiamen Dongguan South 96 20 Dali Service outlet Foshan Nanning Shantou Jjiangmen Huizhou UCC Zhongshan West 82 20 Shenzhen Zhuhai Total 420 92 Haikou * 4S: sales, service, spare parts, survey, BMW Group Investor Presentation, January 2014 Page 41 * 5S: sales, service, spare parts, survey, sustainability
BMW BRILLIANCE AUTOMOTIVE – A SUCCESS STORY WITH GROWING REVENUE AND EARNINGS CONTRIBUTION. BBA retail sales in 1,000 units 160 140 149 141 120 100 BBA‘s contribution to BMW Group‘s at -equity 94 80 result (in EUR million) 60 400 54 40 350 379 44 35 20 31 300 0 250 280 2007 2008 2009 2010 2011 2012 9M-2013 200 BMW Group revenues from goods and services 150 175 sold to BBA (in EUR million) 3,500 100 102 3,000 50 11 42 2,962 25 0 2,500 2,575 2007 2008 2009 2010 2011 2012 9M-2013 2,000 1,500 1,729 1,000 1,046 500 532 406 293 0 2007 2008 2009 2010 2011 2012 9M-2013 BMW Group Investor Presentation, January 2014 Page 42 Page 42
COMBINED BRIKT SALES ARE WITHIN THE TOP 5 MARKETS FOR BMW GROUP IN FY-2013. in 1,000 units 450 BMW MINI 391 400 376 350 300 259 250 189 200 150 131 100 64 64 59 43 37 37 50 0 China* USA Germany UK BRIKT** Japan France Italy Belgium Canada Nordics*** *China: Mainland China only; **BRIKT: Brazil, Russia, India, South Korea and Turkey *** Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden Source: BMW & MINI Retail data, FY-2013 BMW Group Investor Presentation, January 2014 Page 43
BRIKT MARKETS BMW AND MINI RETAIL DEVELOPMENT IN FY-2013. Retail development in BRIKT Retail development in Brazil Retail development in Russia 17 131 140 18 50 45 15 45 16 40 120 110 40 99 14 100 35 30 12 10 10 30 80 70 10 22 25 19 8 60 6 17 20 45 40 15 6 35 15 40 10 25 3 4 3 10 2 20 2 5 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 Retail development in India Retail development in South Korea Retail development in Turkey 12 45 25 22 40 40 10 10 9 34 20 35 17 17 7 27 8 30 6 15 13 25 6 19 20 8 10 4 7 4 15 3 11 6 5 10 8 1 10 7 5 2 5 0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 In 1,000 units BMW MINI Source: BMW & MINI Retail data, FY-2013 BMW Group Investor Presentation, January 2014 Page 44
PREMIUM SEGMENT SHARE OF TOTAL MARKET 2012. 35 in % 29.6 30 25.0 25 20 16.3 15 11.9 11.8 9.1 World Average: 9.4% 10 7.2 6.8 5.7 5 3.9 1.0 0.9 0 Germany United Italy USA France China Russia Turkey S. Korea Japan India Brazil Kingdom BMW Group Investor Presentation, January 2014 Page 45
THE WORLDWIDE PREMIUM SEGMENT IS EXPECTED TO GROW TO 9.9 MN UNITS PER YEAR IN 2020. 12,000 Premium Segment: CAGR 2012-2020: 4.7% Total Growth 2012-2020: 45% 10,000 Rest of World, CAGR +4.7% BRIKT*, CAGR +6.7% 8,000 China, CAGR +9.9% 6,000 Japan, CAGR 0% North America, CAGR +3.9% Region (‘000 units) 2012 2020 Chg. 4,000 World 6,836 9,884 45% Rest of World 500 720 44% BRIKT* 407 687 69% China (Mainland) 1,224 2,609 113% 2,000 194 194 0% Western Europe, CAGR +2.2% Japan 1,884 2,559 36% North America Western Europe 2,626 3,116 19% 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Global Insight *BRIKT refers to Brazil, Russia, India, South Korea and Turkey BMW Group Investor Presentation, January 2014 Page 46
PREMIUM SEGMENT GROWTH IN EMERGING MARKETS. 350 in ‘000 units 2012 Sales Sales Forecast by 2020 50.3% 301 300 250 200 200 50.2% 87.6% 72.1% 159 144 235.5% 150 126 120 169.1% 106 10.4% 43.8% 100 90 100 81 77 76 73 53 93.3% 50 37 36 30 15 0 Russia GCC New EU Countries South America South Korea Brazil Turkey India Ukraine Russia GCC 1) New EU South 3) South Korea Brazil Turkey India Ukraine Countries 2) America 3) 1) GCC: Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates 2) New EU Countries: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Rumania, Slovakia, Slovenia 3) South America: Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, Venezuela Source: Global Insight BMW Group Investor Presentation, January 2014 Page 47
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 48
THREE AUTHENTIC PREMIUM BRANDS. Sheer driving The world’s most exciting The pinnacle of pleasure premium small car brand automobile luxury BMW Group Investor Presentation, January 2014 Page 49
BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS FY-2013. Deliveries of automobiles (in units) 2013 2012 Change in % 390,713 326,444 Mainland China 19.7 USA 375,782 347,583 8.1 259,135 287,299 Germany -9.8 United Kingdom 188,837 174,215 8.4 131,447 110,363 BRIKT* 19.1 Japan 64,216 56,607 13.4 64,082 67,318 France -4.8 Italy 59,200 60,505 -2.2 43,255 43,828 Belgium -1.3 Canada 37,723 37,707 0.0 37,072 34,510 Nordics** 7.4 Rest of world 312,336 298,807 4.5 BMW Group 1,963,798 1,845,186 6.4 *BRIKT: Brazil, Russia , India, South Korea and Turkey; ** Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden Data for individual markets includes BMW and MINI vehicles; Rolls Royce sales are included in “Rest of World” and in the total figures. BMW Group Investor Presentation, January 2014 Page 50
DELIVERIES TO CUSTOMERS FY-2013. Deliveries of automobiles (in units) 2013 2012 Change in % Total BMW 1,655,138 1,540,085 7.5 1 series 213,578 226,829 -5.8 3 series (incl. GT) 500,695 406,752 23.1 4 series 14,749 - - 5 series (incl. GT) 366,992 359,016 2.2 6 series 27,687 23,193 19.4 7 series 56,001 59,184 -5.4 X1 161,353 147,776 9.2 X3 157,298 149,853 5.0 X5 107,231 108,544 -1.2 X6 36,688 43,689 -16.0 Z4 12,866 15,249 -15.6 Total MINI 305,030 301,526 1.2 Total Rolls-Royce 3,630 3,575 1.5 BMW Group 1,963,798 1,845,186 6.4 BMW Group Investor Presentation, January 2014 Page 51
BMW GROUP AUTOMOTIVE. REGIONAL SPLIT OF RETAIL SALES: FY-2013. Americas Europe Mainland Asia (w/o China) China and Rest of World +19.7 % + 9.6 % +9.1% Growth rate -0.7% 13% Share of 20% 24% 44% global sales Source: BMW and MINI Retail Sales only, FY-2013 (figures do not add to 100% due to rounding) BMW Group Investor Presentation, January 2014 Page 52
REGIONAL RETAIL MIX FY-2013. Mainland China: 19.9% Canada: 1.9% USA: 19.2% Rest of Japan: 3.0% Europe: 12.2% BRIKT 1) : 6.7% GCC 2) : 1.1% Belgium: 2.2% Rest of the World: 4.4% France: 3.3% Germany: 13.2% Italy: 3.3% UK: 9.6% 1) BRIKT: Brazil, Russia, India, South Korea, Turkey 2) GCC: Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates Source: BMW and MINI Retail Sales only, FY-2013 BMW Group Investor Presentation, January 2014 Page 53
BMW RETAIL BY MODEL 2013 (2012). Total BMW Group sales: 1,963,798 (1,845,186 ) units. 12,866 36,688 BMW brand share: 1,655,138 (1,540,085) units 107,231 (15,249) (43,689 ) or 84.3% (83.5%) of total sales. (108,544) 157,298 1,655,138 (149,853) (1,540,085) 161,353 (147,776) 56,001 27,687 (59,184) 366,992 (23,193) (337,929) 14,749 500,695 (-) (406,752) 213,578 (226,829) 1 Series 3 Series 4 Series 5 Series 6 Series 7 Series X1 X3 X5 X6 Z4 (incl. GT) (incl. GT) 12.9% 30.3% 0.9% 22.2% 1.7% 3.4% 9.7% 9.5% 6.5% 2.2% 0.8% 100% (14.7%) (26.4%) (-) (21.9%) (1.5%) (3.8%) (9.6%) (9.7%) (7.0%) (2.8%) (1.0%) (100%) BMW Group Investor Presentation, January 2014 Page 54
MINI RETAIL BY MODEL 2013 (2012). Total BMW Group sales: 1,963,798 (1,845,186) units. 234,175 (216,538) MINI brand share: 305,030 (301,526) units 14,687 or 15.5% (16.3%) of total sales. (-) 9,315 8,436 (9,202) 101,897 305,030 (11,311) (102,271) (301,526) 21,030 (22,699) 21,167 (24,474) 128,498 (131,569) Hatch Convertible Clubman Countryman Coupe Roadster Paceman 42.1% 6.9% 6.9% 33.4% 2.8% 3.1% 4.8% 100% (43.6%) (7.5%) (33.9%) (3.8%) (3.1%) (-) (100%) (8.1%) BMW Group Investor Presentation, January 2014 Page 55
BMW GROUP RETAIL DEVELOPMENT 2003 UNTIL 2013. +6.4% 2,000 in 1,000 units BMW MINI Rolls-Royce +10.6% 1,964 1,800 1,845 +14.2% 1,600 +9.2% 1,669 +13.6% -4.3% +3.5% 1,501 +9.9% 1,400 1,461 -10.4% 1,436 +9.4% 1,374 1,328 1,286 1,200 1,209 1,105 1,000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 BMW Group Investor Presentation, January 2014 Page 56
BMW GROUP BRAND AND PRODUCT OVERVIEW. Sedan Wagon Hatch Coupe Convert. Roadster New Seg. SAV Luxury PlusPlus Phantom Coupe Convert. PlusPlus Ghost Wraith Plus 7 Series 6 Series 6 Series 6 Series Base Upper Plus 5 Series 5 Series GT X5, X6 Medium Base Lower Plus 3 Series 3 Series 4 Series 4 Series Z4 GT X3, X4 Medium Base Compact Plus 1 Series 2 Series 2 Series X1 Base Small Plus MINI MINI MINI MINI MINI Base BMW Group Investor Presentation, January 2014 Page 57
ATTRACTIVE MODEL PORTFOLIO UNTIL 2016 DUE TO A HIGH RENEWAL RATE AND ADDITIONAL MODELS. 3.5 3.0 Ø age of product portfolio (sales & mix adjusted) 2.5 2.0 Cumulated Model Renewal Rate: ~ 75% of total expected annual sales 1.5 volume will be renewed until 2016 1.0 0.5 0 2011 2012 2013 2014 2015 2016 BMW Group Investor Presentation, January 2014 Page 58
NEW PRODUCT 2013. BMW 3 SERIES GRAN TURISMO. Launch 06/2013 BMW Group Investor Presentation, January 2014 Page 59
NEW PRODUCT 2013. BMW 4 SERIES COUPE. Launch 10/2013 Please click on the picture to get to additional videos. BMW Group Investor Presentation, January 2014 Page 60 Page 60
NEW PRODUCT 2013. BMW X5. Launch 11/2013 Please click on the picture to get to additional videos. BMW Group Investor Presentation, January 2014 Page 61
NEW PRODUCT 2014. BMW 4 SERIES CONVERTIBLE. Launch 03/2014 Please click on the picture to get to additional videos. BMW Group Investor Presentation, January 2014 Page 62 Page 62
NEW PRODUCT 2014. BMW 2 SERIES COUPE. Launch 03/2014 Please click on the picture to get to additional videos. BMW Group Investor Presentation, January 2014 Page 63 Page 63
FUTURE PROSPECTS. BMW CONCEPT ACTIVE TOURER. BMW Group Investor Presentation, January 2014 Page 64
FUTURE PROSPECTS. BMW CONCEPT X4. BMW Group Investor Presentation, January 2014 Page 65
NEW PRODUCT 2014. NEW MINI. Launch 03/2014 Please click on the picture to get to additional videos. BMW Group Investor Presentation, January 2014 Page 66
NEW PRODUCT 2013. ROLLS-ROYCE WRAITH. Launch 09/2013 Please click on the picture to get to additional videos. BMW Group Investor Presentation, January 2014 Page 67
THE BMW ActiveHybrid-FLEET. BMW ActiveHybrid 7 BMW ActiveHybrid 5 BMW ActiveHybrid 3 (Facelift, new hybrid system, launch 07/2012) (Launch 03/2012) (Launch 09/2012) BMW Group Investor Presentation, January 2014 Page 68
BMW ActiveHybrid 3 – HYBRID COMPONENTS. Eight-speed automatic transmission. BMW TwinPower Turbo six-cylinder inline engine. High-performance Power electronics. lithium-ion battery. Synchronous electric motor (integrated in the transmission housing). BMW Group Investor Presentation, January 2014 Page 69
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 70
BMW MOTORCYCLES PRODUCT OVERVIEW. URBAN ENDURO TOUR SPORT ROADSTER MOBILTIY Price ( € ) 20,000 K1600 GT/GTL HP4 R1200 GS R1200 RT Adventure K 1300 R K1300 S S1000 RR Maxi Scooter Maxi Scooter Electric Tourer R1200 GS MJ 2013 F800 GS 2 Cyl. 10,000 R1200 R Maxi Scooter Sport F800 GT F 700 GS 2 Cyl. G650 GS / GS Sertao F800 R BMW Group Investor Presentation, January 2014 Page 71
BMW MOTORCYCLES RETAIL SALES 1990 – 2013. 120 in 1,000 units 115.2 106.4 100 104.3 102.5 101.7 100.1 98.0 97.5 93.0 92.6 92.3 87.3 84.7 80 74.6 60 50.2 40 31.3 20 0 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 BMW Group Investor Presentation, January 2014 Page 72
MOST IMPORTANT MARKETS FOR BMW MOTORCYCLES IN 2012. Germany United States Other markets Spain France United Kingdom Italy Brazil Germany 19.1% Brazil 6.4% United States 12.3% United Kingdom 5.0% France 9.8% Spain 4.5% Other markets 33.2% Italy 9.7% BMW Group Investor Presentation, January 2014 Page 73
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 74
GLOBAL PRESENCE IN 53 COUNTRIES WITH 6,771 EMPLOYEES. BMW Financial Services MINI Financial Services Status: September 30, 2013 BMW Group Investor Presentation, January 2014 Page 75
PROFIT BEFORE TAX (PBT) FINANCIAL SERVICES. 2,000 ADDITIONAL RISK PROVISIONS IN 2008. in euro million 2) 1,790 Total: EUR 1,968 million 1,750 Automotive Segment: Financial Services EUR 911 million segment: 3) residual values EUR 1,057 million 1,561 EUR 363 million 1,500 credit losses 1,314 1) EUR 694 million 1,214 1,250 residual values 1,000 743 685 750 605 515 452 500 422 387 365 345 250 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M-2013 -250 -292 -500 1) FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business. 2) 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. 3) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business. BMW Group Investor Presentation, January 2014 Page 76
RETURN ON EQUITY (ROE) FINANCIAL SERVICES. ADDITIONAL RISK PROVISIONS IN 2008. 35% Total: EUR 1,968 million in % Automotive Segment: Financial Services EUR 911 million segment: 2) 29.4% 30% residual values EUR 1,057 million EUR 363 million 1) 26.1% credit losses 25% EUR 694 million 3) residual values 21.2% 20% 18.1% 15% 9.2% 10% 5% 0% 2007 2008 2009 2010 2011 2012 -5% -7.3% -10% 1) FY-10 RoE includes a positive PBT effect of EUR 122 million from better than expected off-lease business (adjusted RoE: 23.5%). 2) 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 (adjusted RoE: 22.2%) 3) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business (adjusted RoE: 19.6%). BMW Group Investor Presentation, January 2014 Page 77
PENETRATION RATE RETAIL BUSINESS. 55% Financing Leasing 49.0% 48.5% 50% 48.2% 44.6% 45.0% 45% 42.4% 42.0% 41.1% 41.1% 40.4% 40% 38.3% 36.1% 24.3% 35.0% 34.5% 24.1% 35% 27.6% 21.8% 27.2% 22.5% 21.1% 19.7% 30% 25.2% 24.0% 19.1% 18.3% 17.2% 25% 20.9% 20% 15% 24.7% 24.1% 23.2% 20.9% 20.7% 10% 20.0% 19.5% 19.2% 17.8% 17.8% 17.2% 17.4% 17.1% 13.6% 5% 0% * 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M-2013 * The penetration rate dropped significantly due to the consolidation of BMW Group Financial Services China as of January 1 st , 2011. BMW Group Investor Presentation, January 2014 Page 78
DEVELOPMENT OF CREDIT LOSS RATES. 0.9% 0.84% 0.8% 0.7% 0.67% 0.6% 0.54% 0.59% 0.49% 0.5% 0.48% 0.46% 0.46% 0.4% 0.41% 0.41% 0.39% 0.37% 0.3% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M-2013 BMW Group Investor Presentation, January 2014 Page 79
RESIDUAL VALUE DEVELOPMENT IN THE USA. BMW brand used car index (through December 2013) 120 115 110 105 100 95 90 85 80 75 70 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 Source: Manheim Used Vehicle Index, mix and mileage adjusted. BMW Group Investor Presentation, January 2014 Page 80
STRATEGIC FUTURE DEVELOPMENT OF FINANCIAL SERVICES. E-Mobility Expansion of New Sales & BMW Bank Service Channels Fleet Business 2012 FR BaLea* 2011 DE since 2010 IT since 2009 ES DE PT * BMW Leasing GmbH was merged into the BMW Bank GmbH BMW Group Investor Presentation, January 2014 Page 81
ALPHABET AMONGST TOP FLEET COMPANIES IN EUROPE AFTER ACQUISITION OF ING CAR LEASE. New Alphabet : 600,000 A truly European company Number of Serviced Contracts 500,000 400,000 300,000 200,000 100,000 0 ING Car Lease Alphabet both (old) Alphabet Former ING Car Lease Alphabet BMW Group Investor Presentation, January 2014 Page 82
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 83
BMW GROUP GLOBAL PRODUCTION NETWORK. Kaliningrad Hams Hall Berlin Oxford Swindon Eisenach Leipzig Born Goodwood (2014) Wackersdorf Regensburg Landshut Dingolfing Munich Steyr Graz Moses Lake Shenyang Spartanburg Cairo Chennai Rayong Kulim Manaus Jakarta Vehicle Plant Assembly Plant Engines / Components Rosslyn Santa Catarina (2014) BMW Group Joint Venture Contract Production BMW Group Investor Presentation, January 2014 Page 84 Page 84
AUTOMOBILE PRODUCTION BY PLANT IN 2012. Dingolfing Assembly plants Spartanburg Graz 2 Tiexi 1 Dadong 1 Regensburg Goodwood Rosslyn Munich Leipzig Oxford in 1,000 units Dingolfing, Germany Rosslyn, South Africa 332.7 45.7 Production of BMW 5, 6, 7 Series Production of BMW 3 Series Spartanburg, USA Goodwood, UK 301.5 3.3 Production of BMW X3, X5, X6 Production of Rolls-Royce Dadong 1 , China Regensburg, Germany 300.3 108.9 Production of BMW 5 Series Production of BMW 1, 3 Series, Z4 Munich, Germany Tiexi 1 , China 214.1 41.1 Production of BMW 3 Series Production of BMW 3 Series, X1 Oxford, UK Graz (Magna Steyr 2 ), Austria 207.8 103.7 Production of MINI MINI Countryman Leipzig, Germany 164.3 Assembly plants 38.4 Production of BMW 1 Series, X1 1 Joint venture 2 Contract production BMW Group Investor Presentation, January 2014 Page 85
AUTOMOBILE PRODUCTION BY ASSEMBLY PLANT IN 2012. Chennai Jakarta Cairo Kaliningrad Rayong Kulim In units Cairo, Egypt Kaliningrad, Russia 2,232 15,480 3, 5 & 7 series, X1, X3 3,5 & 7 series, X1, X3, X5, X6 Jakarta, Indonesia Kulim, Malaysia 1,992 5,448 3 & 5 series, X1, X3 3 & 5 series, X1, X3 Chennai, India Rayong, Thailand 6,768 6,492 3, 5 & 7 series, X1, X3 3, 5 & 7 series, X1, X3 BMW Group Investor Presentation, January 2014 Page 86
THE BMW GROUP’S CLEAN PRODUCTION PHILOSOPHY. Certified environmental management systems (ISO 14001/EMAS) at all sites worldwide Reducing water usage Saving energy and Avoiding or recycling Reducing Solvent and process reducing CO 2 Emissions waste wastewater emissions Targeted management of environmental performance: - Monthly recording of consumption/emission figures at all sites - Target: 45% reduction in emissions/resource usage from 2006-2020 - Average improvement in resource efficiency 2006 - 2011: 32% BMW Group Investor Presentation, January 2014 Page 87
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 88
CORPORATE SUSTAINABILITY HAS A LONG HISTORY AT BMW GROUP. 1973: First Environmental Officer in the Automotive Industry. 2000: Executive Board Resolution „Sustainability is the guiding principle of the BMW Group corporate strategy“. 2009: Establishment of a Sustainability Circle and Board; corporate sustainability is established as corporate target. 1997 2001 2007 2008 2011 Dr. Norbert Reithofer, CEO of BMW AG: „Sustainability throughout the value added chain is inseparable from our corporate self-image. That is why we choose to take responsibility. Because of our convictions, but also our self-interest, now and in the future.“ BMW Group Investor Presentation, January 2014 Page 89
CORPORATE SUSTAINABILITY ENCOMPASSES THE WHOLE VALUE CHAIN. Vision BMW Group The BMW Group is the most sustainable company in the automotive industry. Objective Ecology Economy Society Sustainable Mobility Shareholder Value Responsibility for Employees Concepts Product Responsibility Risk Management Value Orientation in the Key Issues Efficient Dynamics Supply Chain Environmental Protection Corporate Governance & Commitment to Society Clean Production Compliance Sustainability-based Evaluation of the Sustainability Environment Communication management Decisions Value Chain Radar We regard sustainability as a lasting and positive contribution towards the economic success of the company. This is the basis Basic of our ecological and social responsibility. principles We consider awareness of social responsibility an inseparable part of our corporate self-conception. BMW Group Investor Presentation, January 2014 Page 90
THE ENTIRE BOARD OF MANAGEMENT IS COMMITTED TO SUSTAINABILITY. BMW Group Investor Presentation, January 2014 Page 91
MOST IMPORTANT RATINGS / RANKINGS SHOW THAT BMW GROUP IS THE INDUSTRY LEADER IN SUSTAINABILITY. - Dow Jones Sustainability Indexes/Dow Jones STOXX Sustainability Indexes: Industry leader since 2005, the only automotive company continuously listed since 1999. - FTSE4Good: listed in FTSE4Good Index. - Carbon Disclosure Project: Industry leader 2011 and 2012, No. 3 across sectors in 2012. - Oekom: Corporate Responsibility Rating oekom 2012, Status Prime. - Sustainalytics: 1st place in "DAX 30 Nachhaltigkeitsrating ” in 2011. - ÖKOTREND: certificate for outstanding corporate responsibility (most points in the automotive industry). - Corporate Knights : BMW Group ranked Number 16 among the 4,000 companies surveyed with the highest score in the automotive industry. BMW Group Investor Presentation, January 2014 Page 92
CONTENT. 1 Corporate Strategy 7 Production Network 2 BMW i 8 Sustainability 3 Growth Markets 9 EfficientDynamics 4 Automotive 10 Financials 5 Motorcycles 11 Funding 6 Financial Services BMW Group Investor Presentation, January 2014 Page 93
EFFICIENTDYNAMICS – OUR WAY TO REDUCE CO 2 . BMW Group Investor Presentation, January 2014 Page 94 Page 94
FUTURE CO 2 TARGETS CAN ONLY BE ACHIEVED WITH THE HELP OF NEW DRIVETRAIN TECHNOLOGIES. Today Tomorrow Lower CO 2 emissions Zero emissions Improved combustion engines Aerodynamics Lightweight construction Auto Start-Stop function Hybrid Brake energy regeneration Plug-in hybrid Electro-mobility Fuel cell technology BMW Group Investor Presentation, January 2014 Page 95
TAILOR-MADE ENERGY MANAGEMENT PACKAGES. High Precision Gear shift indicator. Electric Injection. water pump. Auto Start Stop function. Common Rail High Decoupled A/C Pressure Injection. ECO Mode. compressor. Controlled fuel pump. Controlled oil pump. Electric steering. Tires with reduced Aerowheels. rolling resistance. Air Curtain. Break energy regeneration. Active aerodynamics with cooling air flap system. BMW Group Investor Presentation, January 2014 Page 96
EFFICIENTDYNAMICS IN THE NEW BMW 3 SERIES. • High-efficiency petrol and diesel engines • ECO PRO mode • Eight-speed automatic transmission • Six-speed manual transmission • Brake Energy Regeneration • Optimum Shift Indicator • Disengageable air conditioning compressor • Auto Start-Stop function • Needs-based operation of ancillary components • Intelligent lightweight design • Air Curtain for improved air flow around the front wheels C d = 0.26 Flow-optimised underbody structure BMW Group Investor Presentation, January 2014 Page 97
EFFICIENTDYNAMICS IN THE NEW BMW 3 SERIES. BMW Group Investor Presentation, January 2014 Page 98
BMW TWIN POWER TURBO TECHNOLOGY. VARIABILITY DIRECT INJECTION TURBOCHARGING GASOLINE + + + + VALVETRONIC HIGH PRECISION INJECTION SINGLE TURBO TWIN-SCROLL TURBO TWIN TURBO TWIN POWER TURBO VARIABILITY DIRECT INJECTION TURBOCHARGING DIESEL + + VARIABLE 3 RD GENERATION SINGLE TURBO TURBOCHARGER GEOMETRY COMMON RAIL TECHNOLOGY TWIN TURBO TRI TURBO BMW Group Investor Presentation, January 2014 Page 99
THE BMW GROUP 120g FLEET. In autumn 2013 already 39 BMW Group models come with a maximum 120 g CO 2 /km. BMW 114d 5-Door BMW 116d 5-Door BMW 116d 5-Door * BMW 118d 5-Door BMW 120d 5-Door BMW 114d 3-Door BMW 116d 3-Door BMW 116d 3-Door * 70 kW / 95 hp 85 kW / 116 hp 85 kW / 116 hp 105 kW / 143 hp 135 kW / 184 hp 70 kW / 95 hp 85 kW / 116 hp 85 kW / 116 hp 4.1 l / 109 g 4.1 l / 109 g 3.8 l / 99 g 4.1 l / 109 g 4.2 l / 110 g 4.1 l / 109 g 4.1 l / 109 g 3.8 l / 99 g BMW 118d 3-Door BMW 120d 3-Door BMW 118d Coupé BMW 316d BMW 318d BMW 320d BMW i3 BMW i3 Rex 105 kW / 143 hp 135 kW / 184 hp 105 kW / 143 hp 85 kW / 116 hp 105 kW / 143 hp 135 kW / 184 hp 125 kW / 170 hp 125 kW / 170 hp 4.1 l / 109 g 4.2 l / 110 g 4.5 l / 118 g 4.3 l / 114 g 4.3 l / 114 g 4.4 l / 117 g 0,6 l / 13g 0 l / 0g BMW 320d * BMW 316d Touring BMW 318d Touring BMW 320d Touring* BMW 518d BMW 520d BMW 318d GT BMW X1 sDrive20d * 120 kW / 163 hp 85 kW / 116 hp 105 kW / 143 hp 120 kW / 163 hp 105 kW / 143 hp 135 kW / 184 hp 105 kW / 143 hp 120 kW / 163 hp 4.1 l / 109 g 4.5 l / 119 g 4.5 l / 119 g 4.3 l / 112 g 4.5 l / 119 g 4.5 l / 119 g 4.5 l / 119 g 4.5 l / 119 g MINI One MINIMALIST MINI One D MINI Cooper D MINI Cooper SD MINI Cooper D Convertible MINI Cooper SD Convertible MINI One D Clubman 55 kW / 75 hp. 72 kW / 98 hp 66 kW / 90 hp 82 kW / 112 hp 105 kW / 143 hp 82 kW / 112 hp 105 kW / 143 hp 66 kW / 90 hp 5.1 l / 119 g 3.8 l / 99 g 3.8 l / 99 g 4.3 l / 114 g 4.0 l / 105 g 4.5 l / 118 g 3.9 l / 103 g MINI Cooper D Clubman MINI Cooper SD Clubman MINI One D Countryman MINI Cooper D Countryman MINI Cooper SD Roadster MINI Cooper SD Coupé MINI Cooper D Paceman 82 kW / 112 hp 105 kW / 143 hp 66 kW / 90 hp 82 kW / 112 hp 105 kW / 143 hp 105 kW / 143 hp 82 kW / 112 hp 3.9 l / 103 g 4.4 l / 115 g 4.4 l / 115 g 4.4 l / 115 g 4.5 l / 118 g 4.3 l / 114 g 4.4 l / 115 g Fuel consumption figures: liters/100 km in EU test cycle, CO 2 figures: g/km. * EfficientDynamics Edition. BMW Group Investor Presentation, January 2014 Page 100
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