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Statement

Walter Mertl

Member of the Board of Management of BMW AG, Finance

Annual Conference 2026

BMW Welt in Munich , 12 March 2026, 08.00 a.m.

Good morning,

Ladies and Gentlemen,

For the BMW Group, 2025 was marked by fully leveraging our operating model to deliver solid results in the face of a challenging environment.

The year was heavily impacted by tariffs, developments on currency markets, especially in the second half of the year, as well as the intense market situation in China.

In the face of these headwinds:

• we executed consistently on our strategy and took advantage of our flexible global structures.
• we balanced sales across our regions and our brands.
• we reduced R&D and capex thanks to early investments in the NEUE KLASSE; and
• we drove further cost reductions across the entire company.

SLIDE: OVERVIEW OF PERFORMANCE FY 2025

With this, we were able to deliver on major KPIs in our operational business:

• a stable Group-EBT margin of 7.7% – the same as 2024 – with Group earnings of more than 10 billion euros;
• volume growth to 2.46 million Group vehicles;
• the continuation of our electrification story with an increase in BEV share to almost 18% and xEV share to over 26% of total sales;
• an electrified share in Europe of over 40%;
• a CO₂ fleet emissions figure in the European Union of 90.0 grams per kilometre – 2.9 grams below the applicable target;
• an Auto EBIT margin within our guided corridor;
• over 3 billion euros Free Cash Flow;
• and solid capital returns.

As I promised at the Annual Conference one year ago, we have addressed all aspects of cost – R&D, SG&A, manufacturing and material costs – to secure a consistent year-over-year reduction in every quarter. This amounted to an overall Auto EBIT tailwind of approximately 2.5 billion euros for the year.

With our diligent management of the business, we have been able to offset a large share of the challenges we faced. Without the full-year tariff burden of approximately 1.5 percentage points of EBIT margin, both our Group earnings as well as our Auto EBIT would have been above the previous year.

Let me now take you through our financial figures in detail.

SLIDE: GROUP FIGURES

For the full year, Group revenues totalled 133 billion euros. Earnings before Tax at Group level amounted to over 10 billion euros, as anticipated at Q3. This represents a single-digit percentage decline of 6.7%. The resulting Group EBT Margin remained stable at 7.7% for the year. Earnings per share even rose slightly year-on-year.

SLIDE: SEGMENT PERFORMANCE

If we look at the breakdown of the Group performance by segment:

The Automotive Segment delivered 6.3 billion euros in earnings with an EBIT margin of 5.3%.

Motorrad EBIT reached 178 million euros with a margin of 5.7%.

Financial Services generated 2.4 billion euros in earnings before tax and a Return on Equity of 14.3%.

All three operational segments were therefore within their respective guidance corridors.

Other Entities improved to just over 1 billion euros in EBT. The positive trend after nine months continued into Q4.

And finally, Eliminations amounted to an EBT of 629 million euros. This reflects the positive development in Q4, as anticipated.

Let’s look at how the Automotive Segment performed across key metrics:

SLIDE: BMW GROUP SALES GLOBALLY AND BY REGION

Over the course of 2025, the BMW Group sold over 2.46 million BMW, MINI and Rolls-Royce vehicles to customers worldwide, an increase of 0.5% over 2024.

Looking at the regions, we see our global model at play, as we steer effectively across geographies. As Oliver Zipse highlighted before, sales in Europe and the United States outperformed the market, delivering an increased market share and overcompensating the development in China.

We delivered a stable monthly run-rate for the BMW brand of around 50,000 vehicles throughout the entire year in China – despite the intense market environment. During the course of the year, we have taken actions to consolidate dealer structures and address pricing, which will underpin this stability in the market.

Excluding the Chinese market, global Group sales in 2025 grew by 5.9%.

SLIDE: BMW ELECTRIFIED AND BEV SALES GLOBALLY AND BY REGION

Electrified vehicles are both a foundational pillar in our strategy, and also a key growth driver – thanks to our expanding portfolio of attractive products.

Oliver Zipse has already taken you through the figures in detail. But the highlights were:

• a total of 642,000 electrified vehicles delivered in 2025;
• representing solid growth of 8.2% and an overall xEV share of over 26%.
• and deliveries of all-electric vehicles of 442,000 units for a share of almost 18%.

SLIDE: AUTOMOTIVE SEGMENT REVENUES

Revenues in the Automotive segment came in at nearly 118 billion euros, 5.9% below 2024. Approximately half of this decrease is due to negative currency effects. The remainder results mainly from global pricing pressure.

SLIDE: AUTOMOTIVE EBIT BRIDGE

Let’s look at the year-on-year Automotive EBIT result in detail, coming from our previous year’s earnings.

The net balance of currency and raw material positions resulted in a headwind of 600 million euros. Negative trends in FX outweighed the slight positive effects from raw materials, particularly in the second half of the year. This adverse FX development is expected to carry into the first half of the current year, mainly in Q1.

Compared to 2024, the net effect of volume, model mix and pricing weighed on Automotive EBIT by a total of 1.8 billion euros. The overall mix effect was positive, driven notably by a strong share from the mid-class including 5 Series growth as well as a record M performance. For the full year, pricing was a significant headwind of 2 billion euros.

In line with our planning, we continued to decrease operating costs in 2025. As planned, we reduced R&D expenses following the peak in 2024 – with a nearly 800-million-euro reduction year-on-year. SG&A savings represented 900 million euros, continuing the trend from the first nine months.

Other Cost Changes amounted to a headwind of 800 million euros. This development resulted from a few areas:

On the one hand, tariffs had a negative impact of approximately 1.5 percentage points on the Auto EBIT margin. In addition, a softening market on residual values weighed on earnings. They remained positive, but lower than the previous year.

On the other hand, warranty expenses were significantly lower year-on-year, as outlined at Q3. An additional positive effect came from a high three-digit million saving in manufacturing and material costs.

Overall, we reduced costs by 2.5 billion euros for the full year through our active steering of R&D, SG&A and manufacturing and material costs. Through this, we were able to offset all headwinds except a portion of the approximately 1.5 percentage point tariff burden, resulting in a net year-on-year decrease of 1 percentage point in EBIT.

In total, segment earnings in 2025 reached 6.3 billion euros.

The reported Automotive EBIT margin came in at 5.3%. Excluding the 1.3 billion euros depreciation resulting from the PPA of BMW Brilliance Automotive, the EBIT margin reached 6.4% for the year. And that still includes the headwind of approximately
1.5 percentage points from tariffs.

As you know, our focus is consistently on our reported figures. Due to different approaches in the industry, however, consideration of PPA and Tariff burden ensures better comparability of operational performance.

SLIDE: R&D EXPENDITURE

Looking at R&D and Capital Expenditure in detail:

We made early investments to implement our strategy, which we see as we look at R&D and CapEx development in 2025.

Group expenditure for research and development according to the German Commercial Code for the year amounted to 8.3 billion euros. This is a decrease of nearly 800 million euros, or 8% below the peak of 9.1 billion euros in 2024. This translates to an R&D ratio of 6.2%. Given the lower revenue, the ratio only declined slightly year-on-year.

SLIDE: GROUP CAPITAL EXPENDITURE

Group capital expenditure totalled 7.2 billion euros, a year-on-year decrease of over 1.8 billion euros from the peak of 9.1 billion in 2024 – or a 20% reduction. This resulted in a ratio of 5.4%. The capex ratio excluding right-of-use assets came in at 4.9%.

As promised, R&D and capital expenditure have already significantly decreased from their peak in financial year 2024. Despite the rollout of models of the NEUE KLASSE, we will maintain this trend going forward. This means in both absolute and relative terms, we’re heading back towards our strategic corridors, which are 4 to 5% for R&D and less than 5% for Capex – by 2027.

SLIDE: AUTOMOTIVE FCF BRIDGE

Moving to free cash flow:

Total segment earnings before tax amounted to 5.9 billion euros for the year.

Working Capital contributed positively with 900 million euros, mainly due to strict management of inventories.   

The net effect from capital expenditure and depreciation reduced free cash flow by 2.3 billion euros.

Changes to provisions had a negative impact of 1.3 billion euros, mainly due to the utilization of warranty provisions.

Following the 2.7-billion-euro figure communicated at Q3, free cash flow developed positively in Q4 and reached 3.2 billion euros at year-end. This was in line with our expectations of above 2.5 billion euros for the year.

Our financial strength is further underscored by our Automotive net financial assets. At year end, this came in at over 44 billion euros.

SLIDE: FINANCIAL SERVICES SEGMENT

Let’s now turn to our Financial Services segment.

As a key component of our BMW ecosystem, the segment consistently contributes to Group profitability.

In 2025, new business developed positively throughout the year with nearly 1.73 million new financing and leasing contracts concluded. This represents growth of almost 2% year on year.

The increase is due in particular to the positive business development in Europe as well as the changed competitive environment in China in the second half of the year. Since the end of June, the market situation has been influenced by the significant reduction in commissions from local Chinese banks in connection with the brokering of financial and insurance products for end customers.

Penetration rates for lease and loan offerings increased by 4.0 percentage points to 46.6%.

Overall, new business volume at Financial Services reached an all-time high, growing by 2% to 65.8 billion euros, despite negative currency effects.

Segment earnings before tax reached 2.4 billion euros. The moderate decrease compared to 2024 is due to lower income from the resale of end-of-lease vehicles, as well as a tax payment related to changed assessments of operating taxes from previous years. Residual values remain positive, but lower than the previous year.

The credit loss ratio of 0.28% was within our expectations.

Return on Equity for the full year reached 14.3% and therefore within the guided target corridor of 13 to 16%.

SLIDE: DIVIDEND AND PAYOUT RATIO

Ladies and Gentlemen,

In 2025, the BMW Group achieved Group earnings before tax of 10.24 billion euros. Thanks to a stable year-on-year profit attributable to shareholders of BMW AG amounting to 7.29 billion euros, the Board of Management and the Supervisory Board will propose to the Annual General Meeting a total dividend payment of 2.67 billion euros.

The proposed dividend represents a payout ratio of 36.6%, which is consistent year-over-year and in the upper half of our strategic target range of 30 to 40%. This amounts to a dividend of 4.40 euros per share of ordinary stock and 4.42 euros per share of preferred stock.

Additionally, we completed the second share buyback program in early 2025 before starting the third program after the AGM in May. The total from both programs amounted to a payout of 1.25 billion euros in 2025. Our third share buyback program will run until April 2027. We are currently running the second tranche of this program – with a volume of 625 million euros for ordinary shares – that will be completed by August 31, 2026, at the latest. The third tranche is earmarked for after that.

For the financial year 2025, the total shareholder return of close to 4 billion euros – comprising the proposed dividend and share buyback – exceeds free cashflow in the Automotive segment. This further underscores our commitment to capital returns.

SLIDE: OUTLOOK 2026

That brings me to our outlook for the current financial year.

What are our expectations for 2026?

In Europe and the USA, we see some growth potential.

In China, we have responded to the market environment by taking a number of steps to stabilise transaction prices. Average sales figures over the past few months indicate that sales in China could reach last year's level.  

Consequently, we forecast global deliveries of BMW, MINI and Rolls-Royce vehicles to be at previous year’s level. Due to model cycle effects as well as shifting regulatory and market dynamics, we also expect the share of fully electric vehicles to be at the same level as previous year.  

Turning to Auto EBIT development: we continue to work diligently on reducing costs and will see tailwinds from reduced investments, lower manufacturing and material costs, declining R&D expenditure as well as reduced SG&A in the 2026 financial year. We anticipate a negative impact of approximately 1.25 percentage points from tariffs on the Auto EBIT margin – compared to the 1.5 in 2025.

Given the significant investments made into NEUE KLASSE in preceding years, we will see a material increase in depreciation and amortization from both capex and capitalized R&D. While we will continue to make significant reductions in R&D expenditure, the additional depreciation and a lower R&D capitalization ratio, which is expected in the 30% area, will result in a significant P&L burden. Other headwinds in 2026 include FX and raw materials; the measures taken in China to stabilize transaction prices; and, finally, lower income from used car remarketing.

The reductions we will achieve on the cost side will not fully offset these headwinds. We therefore expect an Auto EBIT margin in the corridor of 4 to 6% in 2026. The corresponding RoCE in the Automotive segment is forecast to be between 6 and 10%. 

In the Financial Services segment, we again anticipate a Return on Equity of 13 to 16%.

Putting this all together, we expect Group Earnings before tax to be moderately lower than the strong result in 2025.

The full 2026 outlook for all key performance indicators is available in the BMW Group Report.

In addition, we expect a Free Cash Flow in the Automotive Segment at year-end of over 4.5 billion euros.

Ladies and Gentlemen,

For 2026, we will continue to systematically implement our strategic course, particularly with the launch of NEUE KLASSE product offensive and the rollout of its technologies across the portfolio. We will leverage flexibility in our global business model to tackle the challenging and dynamic operating environment.

At the same time, we will manage our operational business with continued focus on cost discipline. This will enable us to deliver financial results in line with our guidance and generate strong returns to shareholders.

Ladies and Gentlemen,

Let me pick back up on Oliver Zipse’s comments on sustainability and CO₂ emission reporting, before I hand back over to him.

For the BMW Group, we view sustainability holistically and as a competitive advantage. That is why we in our Annual Reporting disclose our sustainability performance fully to our investors and customers.

In line with our strategy and our commitment to the Paris Climate Agreement, the BMW Group considers the CO₂ emissions of vehicles – both for the new and existing fleet –over their entire life cycle: from raw material extraction and parts production to the manufacture of vehicles and across the use phase to end of life. We address all stages of the value chain with ambitious targets.

However, European CO₂ fleet emission regulations focus only on the use phase and do not recognize the full reduction potential along the entire value chain.

When it comes to reporting, emissions shown in sustainability statements do not always correlate to the actual generation of emissions of all vehicles on roads. For the 2025 financial year, the BMW Group reporting includes all vehicles sold in the year across their life cycle, including the CO₂ emissions from the supply chain for vehicles produced in the reporting year; from BMW Group production; from the assumed use phase of 200,000 kilometres for vehicles delivered in the reporting year based on the consumption mix of the reporting year; and from end-of-life disposal for vehicles produced in the reporting year.

However, the use phase emissions reported in line with European reporting frameworks do not consider all existing BMW Group vehicles still in use, but rather only those vehicles sold in the reported year.  

This means that the European reporting framework neglects the reduction potential of the existing vehicle fleet. Here, there is significant leverage to quickly contribute to CO₂ reductions through use of eFuels and carbon neutral fuels such as HVO100. Immediate credit should be given – starting, for example, in 2027 – for the CO₂ reductions achieved using sustainable fuels, which should not be subject to limitations, such as caps on specific gram per kilometre values.

The European regulatory frameworks should reflect this holistic approach towards reducing overall emissions in the here and now – in both the new and existing vehicle fleet.

Because ultimately, every gram of CO₂ saved counts. That is what we at the BMW Group believe and what makes a true societal impact.

I’ll now hand back over to Oliver Zipse to provide additional strategic insights for 2026 and beyond.

- Check against delivery –

Statement

Oliver Zipse

Chairman of the Board of Management of BMW AG

Annual Conference 2026

BMW Welt in Munich , 12 March 2026, 08.00 a.m.

Part I

Good morning, Ladies and Gentlemen,

2025 was, in many ways, a remarkable year for the BMW Group – above all, one that set our course for the future.

First:

We achieved a solid financial result, with Group earnings of more than 10 billion euros. Walter Mertl will provide more detail in just a moment.

Second:

We grew in 2025 – selling more vehicles than the previous year and expanding our leadership of the global premium segment.

Third:

Our technology-open strategy continued to demonstrate its strength. Demand for cars with combustion engines remained stable, while sales of our all-electric and electrified vehicles continued to grow.

Fourth:

Once again, through our own efforts, we significantly outperformed the EU’s CO₂ fleet targets for 2025.

And finally:

We successfully began the rollout of our NEUE KLASSE with the BMW iX3* – giving the BMW brand and the entire company crucial momentum for the future.

All of this shows: We deliver. Consistently. And continuously.

We have set the right course in recent years and do not need to change our strategic direction. In this way, we can keep the company on track for long-term success.

Standing here beside me is the new BMW iX3. This vehicle marks a pivotal moment in the BMW Group’s recent history: the series launch of our NEUE KLASSE.

Production of the iX3 has successfully ramped up at our new plant in Debrecen, Hungary. First customers have already received their vehicles. Since last week, the iX3 has been in European showrooms.

Demand for the iX3 is significantly exceeding our expectations, with strong orders from both private and fleet customers. We are also attracting many new customers who have never driven a BMW before.

Our order books for the iX3 are full and reach well into this year. We are exploiting the flexibility of our production and supplier network and increasing capacity in line with demand.

The NEUE KLASSE is a huge investment. Only a company that enjoys long-term economic success, like the BMW Group, can invest in its future on such a massive scale.

This success is built on three important parameters.

I like to call this the BMW Group’s strategic triangle.

First: Our balanced global positioning in sales and production.

Second: Our attractive product line-up across all brands, serving the entire premium segment.

And third: Our consistent strategic focus on technology openness.

I’ll talk about the last two points in the second part of my remarks, after Walter Mertl has spoken.

In 2025, we delivered around 2.46 million vehicles to customers worldwide – representing sales growth of 0.5 percent compared to the previous year.

This shows that our business model is robust and resilient.

In Europe, we increased our sales by more than seven percent – delivering more than one million vehicles to customers in Europe for the first time since before COVID.

We also made significant gains in the United States, with growth of five percent – even in a saturated market.

In our markets outside the main sales regions of Europe, the U.S. and China, we also posted growth despite the overall downward trend – with an increase of 3.4 percent over the previous year.

China remains our largest single market. However, due to the intense competitive market environment, our sales development fell short of our expectations for the year. Thanks to the strong overall performance in three of our four sales regions, we nevertheless achieved growth worldwide. This confirms the strength of our global footprint.

Our worldwide presence is a decisive competitive advantage.

All BMW Group brands contributed to our 2025 result.

Electrified models across all brands as well as the models from BMW M were the main growth drivers.

The BMW brand once again maintained its position as the global number one in its segment. Demand was particularly strong for core models like the X1, X3 and X5, as well as our 3 Series and 5 Series models.

BMW M continued its success story in impressive style in 2025 – increasing its sales for the 14th consecutive year.

With more than 213,000 vehicles delivered to customers, M reached a historic all-time high. The BMW M5* and M5 Touring* and the X3 M50* were the main drivers of this success.

This provides compelling proof of the enduring appeal and growing demand for top-level performance in the premium segment.

MINI achieved significant growth thanks to its new model family. Sales increased by nearly 18 percent compared to the previous year.

The main growth driver was the most versatile model in the line-up, the MINI Countryman+ – accounting for over 32 percent of the brand’s total volume.

MINI and electromobility are a perfect fit – and our customers clearly agree.

This is underscored by an impressive achievement in 2025: For the first time, the brand delivered more than 100,000 all-electric models to customers in a single year.

That’s more than one in every three MINIs delivered. In this way, MINI is making a major contribution to the electrification of the BMW Group.

At our ultra-luxury Rolls-Royce brand, the number of hand-built motor cars delivered to clients remained on the high level of the previous year.

The value and number of requests for highly individualised Bespoke continued to increase. The Home of Rolls-Royce at Goodwood is currently being modernised and expanded, to provide more space for both Bespoke and the marque’s pinnacle Coachbuild products.

BMW Motorrad confirmed its strong market position in the premium segment in the financial year 2025.

Despite a global decline in the total market for motorcycles above 500 cc, the brand delivered more than 200,000 vehicles for the fourth year in a row.

Most notably, the R 1300 GS and F 900 GS played a key role in BMW Motorrad’s market success in 2025.

Ladies and Gentlemen,

All of this shows that our multi-brand premium approach enables stability and growth.

Another major strength of our business model is our ability to meet diverse customer preferences, different regional requirements and technological developments in parallel.

Our electrified vehicles provide the clearest proof of this:

In 2025, we delivered more than 640,000 electrified vehicles to customers worldwide. That means they accounted for about 26 percent of our total sales – with all-electric vehicles making up around 18 percent.

Europe stands out, in particular, with electrified vehicles representing over 40 percent of sales. Plug-in hybrids were also in strong demand in 2025.

All of these factors make the BMW Group one of the leading providers of electromobility in the premium segment.

Thanks to our balanced mix of efficient drive technologies and growth in electrified vehicles, we once again outperformed the legal CO₂ requirements in the European Union.

Based on our preliminary internal calculations, we achieved fleet emissions of 90 grams of CO₂ per kilometre in Europe in 2025.

That once again places us well below the legal target – entirely through our own efforts. We do not need to rely on pooling with other manufacturers or averaging over several years.

This provides clear evidence that technology openness and effective climate protection are not mutually exclusive – but go hand in hand.

The BMW Group remains fully committed to the goals of the Paris Climate Agreement – while setting our own ambitious targets.

For example, by 2035, we aim to reduce our CO₂ emissions by at least 60 million tonnes compared to 2019 levels – and we intend to hold ourselves accountable to this target.

We are charting our own course – something that is more important now than ever before.

On the one hand, we see that regulatory frameworks in individual markets can be extremely volatile.

On the other, we are convinced that the EU experiment of mandating electrification will not deliver the desired results – to the contrary.

For this reason, we continue to pursue a long-term, holistic decarbonisation strategy.

We are committed to providing solutions not only for new vehicles, but also for the existing fleet on the roads – based on technology openness across the entire lifecycle of our vehicles.

And for this reason, we also integrate fuels such as HVO100 and advocate for 100 percent credit in CO₂ calculations. In addition, recognising and crediting green steel would strengthen the European steel industry and safeguard jobs in Europe. Using more recycled materials in new cars reduces our climate footprint – as demonstrated by our NEUE KLASSE.

A holistic approach strengthens European value chains, secures jobs and keeps the industry competitive. At the same time, it enables effective climate protection and real CO₂ reductions.

Companies should be free to provide solutions geared towards customer needs, while also investing in appropriate new technologies to meet the European Union’s climate goals.

As a global player, we stand for free trade and collaboration. We do not believe in protectionism, but rather in the power of innovation to compete on the global stage.

However, with the Industrial Accelerator Act, the EU Commission is continuing its protectionist course while not addressing home-made challenges like high energy prices.

One thing is clear: without international value chains, the ramp-up of electromobility and the development of powerful battery technologies are not feasible.

Labels such as “Made in the EU” or “Union origin” disadvantage European companies with global value chains if they do not recognize that each Euro spent in Europe counts the same for prosperity and jobs. No matter if the car stays in Europe or is exported.

Instead, the development of expertise and production for battery cell technologies in the EU should be promoted and effectively incentivized as fast as possible.

This year, together with policymakers, we must find realistic solutions that allow us to achieve our climate goals and to strengthen our economy and competitiveness.

Ladies and Gentlemen,

2025 was shaped by very different developments:
strong growth in Europe and the US, a much more challenging situation in China, rising competitive pressure and additional headwinds from tariffs.

Nevertheless, the BMW Group continues to deliver a stable performance.

Because we acted early. We adjusted our internal cost structures and maintained our strategic direction.

This combination of strong operating performance today and a clear long-term perspective is a crucial success factor for our company.

And that brings me back to the vehicle standing next to me.

The iX3 and the technologies of the NEUE KLASSE testify to our innovation and performance.

It underlines that we are “already ahead”.

Walter Mertl will explain in more detail how our strong operating performance is reflected in our financial figures.

We will then take a look at 2026, with more new products on the way.

Part II

Ladies and Gentlemen,

Looking ahead to this year and beyond, three key factors will be decisive:

First:
For our 2026 targets: the product line-up currently available, which we have built up gradually over the past few years.

Second:
For this year and the years to come: the rollout of additional NEUE KLASSE models and integration of its technologies across the entire product range.

And third:
The tech clusters of the NEUE KLASSE, which enable rapid advances and collaboration with leading tech players worldwide.

Let’s start with the first item:

The company’s current product portfolio across our BMW, MINI, Rolls-Royce and BMW Motorrad brands offers a range of premium options in all key segments.

From MINI, in the urban compact-car segment, to Rolls-Royce, in the ultra-luxury class.

At the beginning of this year, we added another highly exclusive dimension to our brand portfolio: BMW ALPINA.

The long-established BMW ALPINA brand embodies maximum performance and exceptional driving comfort, combined with unique options for individualisation.

This makes it an ideal addition to our existing product range in the segment for individual, highly customised vehicles.

In this way, we are tapping into a highly profitable segment with great growth potential, positioned above the BMW brand’s top models and below our Rolls-Royce luxury brand.

Overall, the BMW Group offers one of the industry’s most comprehensive and diverse premium portfolios.

A core strength of this line-up is our consistent focus on technology openness. We committed early to a market-driven mix of different drive technologies.

With this approach, the BMW Group continues to chart its own course – enabling us to systematically respond to the diverse requirements of markets and customers well into the future.

Because we chose this path early, making the necessary investments at the right time, we can now fully realise the market potential of our products.

Today, we offer battery-electric vehicles in all relevant segments. By the end of the year, we will have a total of 20 BEVs across all brands. This will further strengthen our competitive position.

At the same time, plug-in hybrids also remain important.

This is not just a “bridging technology” – for many people, in all regions of the world, they are the only way to integrate electric, locally emission-free mobility into their everyday lives.

Together with our range of highly efficient combustion engines, this approach provides maximum flexibility – ensuring that regional market opportunities can be consistently exploited.

This strong line-up lays the core foundation for the company’s business success in 2026 – and beyond.

At the same time – and that brings me to my second point – we are systematically building on our current advantage with the NEUE KLASSE.

With the release of the BMW iX3, the market launch of the NEUE KLASSE has just begun.

But this is only the start.

Additional all-electric models with the new design and innovations of the NEUE KLASSE will follow.

Another notable highlight will be unveiled next week, when we present the BMW i3, the first variant of the next generation of the BMW 3 Series.

The new i3 brings our NEUE KLASSE right into the heart of the BMW brand.

Prepare to be amazed by what the technologies of the NEUE KLASSE can do in a vehicle like the 3 Series. It is fair to say that they take “Sheer Driving Pleasure” to a whole new level.

Here’s a sneak preview of what we will be unveiling
next week.

Ladies and Gentlemen,

I’m looking forward to presenting this incredible car to our BMW fans worldwide next week.

After that, we will meet again at Auto China in Beijing, to introduce the Chinese version of the iX3 as the next NEUE KLASSE model.

We developed this vehicle exclusively for China, together with our local R&D team in the market.

By doing so we ensured that the product meets the specific wishes and needs of our Chinese customers.

The result: The most Chinese car we have ever built.

Initial feedback from the local media has been overwhelmingly positive – with praise, in particular, for its driving characteristics. The China-specific digital features have also been very well received.

In 2027, BMW M will usher in a new era in the high‑performance segment – with the first all-electric M vehicle with racetrack capabilities, based on the NEUE KLASSE.

Alongside development of the NEUE KLASSE, we have also created the essential conditions for a rapid ramp-up within our supplier and production network.

Production of the iX3 has successfully begun at our new plant in Debrecen.

We will start production of the new BMW i3 at our main plant here in Munich in the second half of the year. To do so, we have completely modernised the plant during ongoing operations.

From late 2027, we will build only electric vehicles in Munich.

Production of high-voltage batteries will also begin at our new plant in Irlbach-Straßkirchen in the second half of the year. This facility will supply our plants in Germany with our sixth-generation high-voltage batteries.

Our plant cluster in Shenyang, China, is also ready to build the NEUE KLASSE in China, for China.

At our largest plant, in Spartanburg in the U.S., we are systematically modernising the production system for the technologies of the NEUE KLASSE. This also includes the new high-voltage battery assembly facility in nearby Woodruff.

Across all plants in our production network, we are creating the necessary conditions to implement the technologies of the NEUE KLASSE as quickly as possible in all BMW models.

Between now and 2027 alone, we will bring more than 40 new or updated models to market.

Each of them will benefit from the technologies of the NEUE KLASSE – always tailored to concept requirements and independent of the drive technology.

The best example of this is the next generation of our BMW X5. This summer, we will officially unveil the successor to our current model.

The X5 will be the first BMW model to be offered with five different drivetrain variants: with highly efficient conventional drives, as a plug-in hybrid, battery-electric and – from 2028 – also powered by hydrogen.

In this way, we are laying the foundation to successfully meet the diverse requirements and customer needs around the world, both today and in the future.

Shortly before that, at the Beijing show, we will be showcasing the first model update to feature technologies from the NEUE KLASSE: the BMW 7 Series.

The result is an almost completely new vehicle. We are taking full advantage of the new possibilities from NEUE KLASSE technologies and raising our luxury sedan to a whole new level in terms of both appearance and technology.

That brings me to my third point:
the technology clusters of the NEUE KLASSE and their potential.

With the technology clusters developed specifically for the NEUE KLASSE and our modular approach to technology, we can integrate market-specific functionalities and content into our vehicles.

At the same time, we are strengthening our R&D capabilities to enable us to respond more quickly and flexibly to local customer needs and provide appropriate solutions.

In our key sales regions, we have already implemented numerous features in collaboration with leading local partners.

For example, in the Chinese market, we are working with Alibaba Banma to establish the next generation of intuitive in-car voice control.

In China, the BMW Intelligent Personal Assistant is also being expanded to include DeepSeek functionality.

In most markets, including Europe, we will be integrating Alexa+ as the centrepiece of our BMW Intelligent Personal Assistant.

Thanks to the advanced Large Language Model technology of Amazon Alexa+, our customers now benefit from an even smarter, more connected and highly personalised voice assistant.

With our driver assistance systems, we continue delivering the best-possible customer experience in each region – tailored to local requirements.

To achieve this, we work closely with selected partners.
Our guiding principle remains the same: We always strive for smart, symbiotic and safe solutions.

Last summer, we launched a new cooperation in China with Momenta. A leading local provider of ADAS technology. Outside China, we are collaborating with the American company Qualcomm.

Both collaborations focus on the co-development and integration of software that adapts to different road conditions, traffic scenarios and user needs – relying on state-of-the-art AI algorithms and data-driven methods.

These examples highlight the extraordinary flexibility and scalability of our tech clusters.

With the software-defined NEUE KLASSE, we maintain control over all systems and can deploy them simultaneously worldwide.

We are also able to rapidly integrate local technology stacks, giving our customers access to their preferred innovations and features.

Continuous over-the-air updates ensure that our vehicle software is always up to date. All functionalities are improved on an ongoing basis to permanently enhance the customer experience.

Ladies and Gentlemen,

As you can see, the BMW Group remains successful and highly innovative. Our current product range is one of the broadest and most attractive line-ups in the premium segment worldwide.

With the NEUE KLASSE and its technologies, we have secured a significant competitive advantage. We will leverage these strengths to drive our economic success.

However, it is also clear that our world remains unstable, and numerous risks will persist in the current financial year.

We meet these challenges with strategic consistency and with market- and opportunity-driven vision.

Our global footprint – in sales, research and development, and production – provides us with the foundation to mitigate uncertainties and respond flexibly to unforeseen events.

We will continue to build on these strengths in 2026 and in the years to come.

Thank you very much.

- Check against delivery –

Ladies and Gentlemen,

Good morning.

For the BMW Group, several key strengths have long formed the foundation of our strategic course: our global footprint, our technology-neutral approach, our premium multi-brand strategy and broad portfolio across all relevant customer segments, and our ability to identify the potential of new technologies and bring them to road in each major region. These strengths give us flexibility and make us resilient, and we are benefiting from them now.

As a global company with global brands, we are used to dealing with varied conditions and unpredictability on the ground in each market.

We recognize the current dynamics in the automotive industry: major transitions in innovation, operating with a global supply chain, a shifting geopolitical framework with trade impacts such as tariffs, as well as a rapidly evolving market in China – to name but a few.

We remain focused on our long-term trajectory, while using our flexibility to adapt to the changing dynamics and are tackling them head on. This is what has always set the BMW Group apart.

Our business remains on track and healthy. As Walter just shared, this is underscored by our Group EBT result over the first nine months – demonstrating the performance of the entire business including our sales development.

Despite the challenging market dynamics in China, our overall global sales posted year-on-year growth of 8.7% in the third quarter; excluding China, it was 12.2%. Through September, sales in Europe were up 8.6% compared to 2024, while sales in the United States grew by 9.5%. These strong results helped compensate for the development in China.

Electrified vehicles and M vehicles both drove global growth. With our technology-open approach and multiple premium brands, customers find products that fit their wide range of needs and tastes.

In the coming months, we will take this to the next level with the introduction of the NEUE KLASSE. Just two months ago at the IAA Mobility here in Munich, we unveiled the BMW iX3*, the first vehicle of our NEUE KLASSE. The response was tremendous – from visitors and fans from across the globe, media, analysts, and political stakeholders. A few weeks later we celebrated the official opening of our new plant in Debrecen, where production of the iX3 is underway.

We have started taking customer orders for the car, which have exceeded our expectations. Just looking at Europe, we see orders already extend several months into 2026 already. This confirms an exceptionally positive start for the vehicle.

The NEUE KLASSE is BMW at its best. And starting with the iX3, it will set new benchmarks: from its performance data and revolutionary digital interface to its sustainability approach.

The BMW iX3 offers a range of more than 800 kilometers in the WLTP cycle. Thanks to its ultra-fast charging capability, the peak charging power is up to 400 kilowatts. That means: in just 10 minutes, the iX3 can charge enough to drive more than 370 kilometers.

The fully immersive digital experience will bring UI / UX to a whole new level. With the BMW Panoramic iDrive, drivers can intuitively keep their eyes on the road while all necessary information is perfectly in view.

With the BMW iX3, we will also introduce a new generation of driver assistance systems. The BMW Group is the first car manufacturer in Germany to receive approval for assistance systems in accordance with UN Regulation for Driver Control Assistance Systems (DCAS).

The approval enables the BMW Group to offer the Motorway Assistant with Level 2 “hands-off” function in numerous other models and countries in the future. This also covers an extended range of functions. More innovative assistance functions for urban driving will follow.

In terms of sustainability, the iX3 is explicitly focused on conserving resources and reducing the model’s environmental footprint – throughout the supply chain, production, use phase and recycling. In line with the principles of design for circularity, the iX3 is made up of one-third secondary raw materials.

Moreover, Plant Debrecen is the first BMW Group car factory that operates and produces vehicles without using fossil fuels, such as oil and gas, under normal operating conditions.

Overall, the iX3 is a perfect example of our strategy of reducing CO₂ wherever we have leverage. This will help us reach our near-term target to reduce our carbon footprint by at least 40 million tonnes CO₂ by 2030. Since 2020, we have been fully committed to the Paris Climate Agreement, with a target of achieving net zero by 2050.

The next NEUE KLASSE model, which we teased at the IAA, is preparing for launch: the new BMW i3. With the eighth generation of the 3 Series, we will bring the NEUE KLASSE and its technology clusters into the core of the BMW brand. Production of the i3 will get underway at our main plant in Munich in the second half of next year. Other locations in our international production network will follow with production of 3 Series variants.

Throughout 2026, we will show how the NEUE KLASSE technologies will be integrated into further models, such as the 7 Series and the X5. By 2027, we will put 40 new models and model updates with NEUE KLASSE technology and design language on the road worldwide.

This all-new BMW generation will provide an enormous boost to our already broad and popular portfolio – with technology solutions tailored to customers in their markets.

This applies especially to China. The NEUE KLASSE products we will launch in China are developed together with our local engineering teams and Chinese partners – in the market, for the market. Our NEUE KLASSE architecture allows to integrate local tech stacks from leading Chinese tech players into our own ecosystem. This gives consumers access to innovations and features they are used to, including solutions from Alibaba Banma, DeepSeek, and Momenta.

With the NEUE KLASSE, we are again demonstrating our strength in mastering system complexity, integration and efficiency. We know what our customers want and identify trends in individual markets early. The result are products that perfectly integrate the best technologies – both in house and with partners – across regions to offer the best product substance to our customers.

What makes the NEUE KLASSE so unique, is that we are rolling out the technology clusters across the entire portfolio – regardless of the drivetrain.

Our technology-neutral approach continues to show its success and allows broad market access as consumer preferences shift. At the same time, we are making progress in decarbonization in the here and now. After nine months into 2025, Group sales of all-electric vehicles are up by 10%, resulting in a BEV share of 18%. PHEVs grew nearly 28% year-on-year, delivering an overall electrified share through September of 26.2% globally.

Europe showed particularly strong growth – with BEVs reaching over a quarter of total sales, while BEV and PHEV sales combined for an impressive 41% share. Europe will also be the primary driver of our BMW iX3 sales in 2026.

Thanks to this solid result, we are well on course to reach our CO₂ fleet target for the year, just as we have consistently done for the past several years. For us, it has long been clear that we would meet the targets for 2025 – and, importantly, without penalties, pooling, or averaging.

This success with our technology-neutral strategy also gives our voice weight in the ongoing discussion regarding the EU’s targets.

We have reached our climate targets by following market demand and customer needs and by continually optimizing all drivetrain variants.

It remains critical for Europe to revisit the targets for 2030 and 2035.

Setting an end date to a specific, successful technology will lead to a massive shrinking of the industry as a whole. It will harm European industry and also create dependencies that are unwise in the current geopolitical dynamic.

To achieve climate goals and create effective CO₂ regulations, we must take a comprehensive view – one that accounts for the full carbon footprint of the vehicle and its value chain, and that also values climate-neutral fuels such as HVO100. Such a holistic framework would reflect various market needs and uneven infrastructure development, while safeguarding Europe’s value chains, jobs, and industrial strengths. And – above all – it delivers genuine climate protection and real reductions in CO₂.

Companies should be free to deliver the solutions, taking customer demands and needs into account, while adequately investing in new paths and technologies to achieve the EU’s climate goals.

In this context, the BMW Group is very skeptical about the EU’s planned “Greening the Fleets” regulation, as it does not consider current market realities. Commercial fleets rely on high vehicle availability with high mileages. The currently inadequate charging and hydrogen refueling infrastructure will not be guaranteed in all member states by 2030 either. Further fleet mandates and additional regulations that exclude individual technologies are not necessary to achieve the CO₂ targets. Moreover, they hinder technological development and introduce harmful market distortions contrary to customer preferences. Here also, we advocate for a holistic and technology-neutral approach.

Ladies and Gentlemen,

We are tackling the challenges in global markets head on, leveraging our strengths and implementing our long-term strategy. We have made significant investments and have created the right operating framework to deliver. Our flexible, global network, our tech-open strategy, our focus on innovation and our ability to master technological complexity set us apart.

Over the coming months, we will deliver as promised. Starting with the iX3, we will rapidly deploy our ambitious strategy one vehicle at a time around the globe. We will continue to lead with product substance and solutions that meet our customers’ needs.

We therefore remain optimistic as we close out 2025 and move forward to 2026.

Thank you.

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Statement 

Oliver Zipse, Chairman of the Board of Management of BMW AG

Jochen Goller, Member of the Board of Management of BMW AG, Customer, Brands, Sales

Adrian van Hooydonk, Head of BMW Group Design

Markus Flasch, CEO BMW Motorrad

IAA Mobility 2025 Summit Press Conference

Munich , 8 September 2025

Speech Oliver Zipse, Chairman of the Board of Management of BMW AG

Ladies and gentlemen,

This year’s IAA MOBILITY impressively demonstrates that the desire for individual mobility has never been stronger. Today, more than ever, global success depends on the ability to master new technologies and to anticipate what customers around the world want.

It also takes courage to make bold leaps. A pioneering spirit – to explore new paths. Confidence in your own abilities. And resilience – to stay the course, even in the face of headwinds. And on top it requires a team of nearly 160,000 employees who are passionate about shaping the future of mobility. Then evolution becomes revolution. Vision becomes reality.

You’ll remember that, back in 2021, I promised we would lead BMW into a new era. With the NEUE KLASSE. Today, we deliver on that promise.

Early this decade, we recognized an opportunity; a chance to set new benchmarks across all relevant technologies in the car. It was an opportunity that only comes once in a lifetime. The perfect BMW moment.

The NEUE KLASSE is much more than just a new vehicle. It marks a completely new model generation. A massive leap that redefines the entire brand.

The new BMW iX3 will be followed by more than 40 new or updated BMW models by 2027. Each will have the NEUE KLASSE genes – regardless of the drivetrain. More than any other project, the NEUE KLASSE represents the innovative spirit of all our associates. Across all our brands.

On behalf of the entire company, it is my great honor to unveil:

The new BMW iX3!

Ladies and gentlemen,

I’ve been with the BMW Group for 34 years. I’ve witnessed many world premieres and bold technological innovations. But a vehicle like this is something you experience only once. All of us at the BMW Group have been working tirelessly towards this moment.

With the NEUE KLASSE, we’ve created an unprecedented interplay of multiple, ground-breaking technologies. Now, we are taking Sheer Driving Pleasure to a whole new level. In short: The NEUE KLASSE is more BMW than ever.

And the next highlight is already waiting in the wings. Early next year, we will unveil the second model of the NEUE KLASSE – a sporty sedan at the very core of the brand:

the new all-electric BMW i3.

Ladies and gentlemen,

From the drivetrain to battery technology and driving dynamics, from the operating system to the digital user experience: We’ve elevated every single aspect to the next level for the NEUE KLASSE.

With this new design language, we’ve even skipped a whole generation. And there's no one better to explain how our customers will experience this with all their senses than Adrian van Hooydonk.

Speech Adrian van Hooydonk, Head of BMW Group Design

Welcome ladies and gentlemen!

Yes, the big moment has finally come. As Oliver mentioned, with the Neue Klasse we are taking very big steps in technology. These bigger steps in technology can only become meaningful hand in hand with big steps in design. The BMW iX3 has a much bigger range helped by a very clean shape with excellent aerodynamics.

In the interior you will find a new display concept that allowed us to clean-up the dashboard and completely redefine the driving experience.

But let‘s look at the exterior design first: We have typical solid BMW SAV proportions with a lot of presence and emphasis on all four wheels. The surfaces are very clean with only a few precise lines. The front-end shows a new interpretation of the BMW typical face in which we replace chrome with light. Vertically oriented kidneys match the more upright overall appearance of our SAV. This new light signature is part of the daytime running light and it will make the new BMW iX3 very recognizable by day and by night. Overall, the car has a very solid stance and strong shoulders and, in the rear, again a new light signature that emphasizes the width of the car.

In the interior you will find that the driving experience is and will remain our focus, putting the driver at ease and in control! The key element to this is our all-new BMW Panoramic Vision which projects in the bottom of the windscreen and builds upon our years of experience with head-up displays. This new display is visible for all passengers on board and will allow you to quickly check the information you want and need while keeping your hands on the wheel and your focus on the road ahead. Together with our new free cut central display and iconic steering wheel these elements are the corner stones of our new Panoramic

iDrive system, a whole new driving experience that you will find in all our future BMW models from now on!

This new user experience already starts when you approach the car and continues as you get in and set the car up to your personal preferences. With My Modes you can do that very easily and select a perfectly curated driving experience – from screen content or colors to light and sound and even driving characteristics.

So, our new Operating System X focuses on the best driving experience but will also allow you a much higher level of personalization making your new BMW truly yours! Overall, the new digital aspects of our cars will make them more intelligent and easier to use.

At the same time, this has allowed us to design much cleaner and warmer interiors, creating very personal living environments on four wheels. The interior trim “Digital White” is spacious and modern.

So, starting with the BMW iX3 we are introducing a new form language that will lead to a new look and feel for the entire BMW brand. Our designs will be very clean and at the same time very strong in character, but above all: more BMW than ever!

Thank you very much!

Speech Jochen Goller, Member of the Board of Management of BMW AG, Customer, Brands, Sales

Thank you, Adrian!

Ladies and gentlemen,

Let’s now move on to MINI, which celebrated its very own game-changing moment already last year with the introduction of a completely new product range.

The “New MINI Family”, covering the most desirable and broad product portfolio in the brand's history, now features four very distinct models - Convertible, Cooper, Aceman and Countryman. And regarding the drivetrain, MINI customers of course have the choice between all-electric or highly efficient combustion engines.

Clever use of space, wheels at the corner, go-cart feeling, combined with true Britishness and maximum individuality. That's how MINI became the world's most successful premium small car brand. Driving a MINI has always been a confident personal statement. In this way, MINI has inspired numerous celebrities and designers throughout its 66-years long history.

And today, we are writing the next exciting chapter in this tradition. Partnering with a brand that stands for customization and thinking out of the box like few others. I am talking about Deus Ex Machina!

The outcome of this inspiring and exceptional partnership are two stunning John Cooper Works models – fraternal twins with very different styles, yet united by a shared enthusiasm.

I brought one of them with me today, so, let’s have a look.

Ladies and gentlemen,

“The Skeg.” A distinctive and contemporary re-interpretation of MINI's racing history. Pure. Bold. Innovative. This artwork on four wheels is based on the MINI John Cooper Works Electric. Inspired by the world of surfing, it offers pure electric freedom to enjoy the MINI go-cart feeling on coastal roads.

His twin – “The Machina” – is forged on the racetrack. Lean, fast and powered by a combustion engine, it embodies raw racing technology and authentic functionality.

Together, they stand for individual lifestyle and maximum driving excitement, regardless of the respective drive train.

Similar to what our customers can experience with the New MINI Family, which is winning over new and old customers worldwide.

That is especially true for our fully electric models. Today, already one in three MINIs has an electric heart. And the trend continues to rise.

Ladies and gentlemen,

Collaborations like the one with Deus Ex Machina are just one example for unique customization – the way only MINI can do.

And now, ladies and gentlemen, to something completely different.

Speech Markus Flasch, CEO BMW Motorrad

Ladies and gentlemen,

It is a great pleasure for me to present the BMW Motorrad Vision CE. It offers the most spectacular insight into our vision of future of urban

e-mobility that we have ever developed. For me, the Vision CE is a clear proof to our ambition to shape the future of emission-free mobility with courage and a pioneering spirit.

Highly innovative single-track urban mobility has been strongly anchored in the history of BMW Motorrad for decades. We revolutionized urban mobility already 25 years ago with the unique BMW C1. In 2014, we were the first manufacturer to combine outstanding design with an e-drive in the BMW C evolution. In 2022, we launched the CE 04, a design & technology masterpiece of emission-free mobility which remains the global market leader in its segment to this day.

At BMW Motorrad, the development of single-track e-mobility clearly stands for visionary concepts, innovation leadership and groundbreaking design. With the Vision CE's special self-balancing system, we are looking to the future and setting again new standards: Urban riding fun on two wheels without having to wear a helmet or motorcycle clothing, thanks to the unique structural bracket design.

The Vision CE – one like no other: Exciting and inspiring - just like BMW Motorrad!

Speech Oliver Zipse, Chairman of the Board of Management of BMW AG

Ladies and gentlemen,

At the BMW Group, we are constantly reshaping mobility – just as we have for nearly 110 years. Our customers’ individual needs, wishes – and, yes, their dreams – are always at the heart of all our brands.

All of our customers benefit from our innovative approaches and the latest technologies. At the same time, we are steering the company on a long-term path that is in line with the Paris Agreement.

This is the spirit that drives us at the BMW Group.

Thank you.

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Ladies and Gentlemen,

Good morning.

Thanks to the strength and foresight of our strategy, our attractive product portfolio and our global team and operations, the BMW Group is built to weather various conditions.

This is what separates us from the competition. And it underscores that there is not ONE automotive industry – major players are currently performing quite differently.

Through the first half-year, our sales performance demonstrates the appeal of our global brands and the ongoing success of our broad technological approach.

After confirming our original guidance from our Annual Conference after the first quarter results, we remain on track with our financial targets for the year – despite ongoing tariff uncertainty and fluctuations in the Chinese market.

Unpredictability is a longstanding feature of the auto industry and is the norm in today’s business environment. What is decisive is how you deal with it. Because global success is rather predicated on your ability to anticipate developments and to respond rationally and efficiently.

That is fundamental to the BMW Group. And we are building upon our leading position in the industry.

The overall global automotive market is growing. We are always ready to profitably gain market share wherever individual market conditions allow. As dynamics in the industry shift, we know exactly where we are placed with our premium brands and where we can pursue opportunities – maintaining a healthy balance of value and volume.

Over many decades, we have built up a comprehensive and balanced network of sales, production and supply chain operations spanning the major regions. This makes us one of the few truly global players in the industry and our deep roots in global markets offer us many advantages.

First, they allow us to tap into leading-edge developments in the individual markets and understand specific customer needs. Our ties to research universities, our R&D network and IT hubs and our network of local tech partners enable us to leverage key competencies from individual markets for our global products and strategy.

Second, through our extensive footprint in key markets, we remain resilient in the face of geopolitical instability and ever-increasing regulation.

Finally, our strong ties also allow us to engage in direct discussions with key political decision-makers, who value our perspective. Here, it is not just about our individual interests, but rather finding solutions for customers worldwide and driving shared economic prosperity.

The BMW Group welcomes the fundamental agreement between the European Union and the United States to reduce tariffs on both sides of the Atlantic. It’s now important to quickly finalize and implement the agreed measures.

We will continue to advocate for trade between the EU and the US not be hindered by import tariffs. The currently agreed US tariffs also burden European exports, affecting consumers and globally operating companies. Therefore, we urge both sides to continue working towards market openness and the convergence of technical regulations.

Through our global production network and supply chains, we maintain high flexibility to respond to fluctuations. Our production plants are attuned to market demand, allowing us to achieve capacity utilization above the industry standards.

At our largest single plant in Spartanburg in the United States, for example, we produce over 400,000 vehicles annually. Over half of which serve the local market and half of which we export. Across the United States we have created extensive value chains as well as a competency hub for our global X Family of vehicles in Spartanburg, which remain in high demand across the entire globe.

BMW made in America and sold to the world.

This combination of leveraging the competitive advantage of the US market in SUVs with BMW’s brand strength allows us to develop products which speak to customers’ needs in markets worldwide.

For the current financial year, our sales results continued into Q2 in line with our expectations, as conditions continue to vary from market to market. In Q2, we saw a sequential improvement from Q1.

Outside of China, all three of our major sales regions posted growth.

Group sales in these markets combined to grow by 6.3% through the first six months of the year.

Group sales in Europe grew overall by 10.2% in the second quarter and in Germany alone by over 10%, with growth in most markets outpacing the passenger vehicle market. Overall, the BMW brand increased its market share in Europe.

Among the most successful BMW models were those in the business class segment. In the first half of the year, the BMW 5 Series saw growth of more than 40% worldwide compared to 2024.

Other notable models that saw success included the BMW X2 models, which more than doubled sales through June.

With the full availability of the new MINI family, the brand grew in all regions worldwide, including in China. In the first half of the year, more than one in three MINIs sold was a BEV.

Rolls-Royce increased deliveries by nearly 10% in the second quarter, driven by strong sales from the Cullinan Series II*.

Drivetrains and model variants across the portfolio continued to see success in Q2. BMW M sold nearly 106,000 vehicles through June, the best-ever first half-year for the brand.

Sales of plug-in hybrid models from the BMW brand grew by almost 30% in the first six months. Our BEV models continue to be a fundamental pillar of our strategy. In the second quarter, we achieved an important milestone, with the delivery of our 1.5-millionth all-electric vehicle. Across the portfolio, we now offer more than 15 all-electric models.

In Europe, the Group’s BEV share reached 25%. With PHEVs included, the electrified share reached nearly 40%. Across all brands, BMW is the third best-selling BEV brand in Europe.

While we are proud of our position as a leading BEV player, we know that the world is multi-dimensional.

To meet consumer needs, especially in a product as complex and personal as a car, there is no single answer. Our Q2 results show that we can serve multiple preferences simultaneously: BEVs, PHEVs and our M models all achieved growth.

The most effective strategic approach is to use all technologies to reduce CO2 emissions overall. We remain committed to the goals of the Paris Climate Agreement, while advocating for a review of the 2030 and 2035 targets in the EU.

To achieve these goals and create effective CO2 regulations, we must take a comprehensive view across the entire value chain. This would consider all emissions across the entire life cycle and not just tailpipe emissions: from the supply chain to the raw materials used in the car, the production process, the vehicle drive, energy used to power the vehicle, and finally to recycling.

A dependency on a single technology can be damaging to an industry. Putting all your eggs in one basket is just poor asset allocation.

Hydrogen, for example, offers Europe an opportunity to use our expertise and take the lead on an emerging technology that will contribute to our climate goals. And, unlike BEVs, without the need for large amounts of raw materials or battery technology which are not localizable at large scale in Europe.

Beyond drivetrains, there is great potential with alternative fuels. There are more than 250 million vehicles in the EU, which could now immediately contribute to climate protection. But this requires a clear regulatory pathway and targeted investments in the ramp-up of all renewable fuels.

Take HVO100 as an example. While it is already available in markets across Europe, tax schemes and the CO2 fleet targets need to recognize this renewable fueling option to incentivize customer adoption. This would help in scaling an alternative fuel that has a 90% CO2 saving compared to normal fuels and can already be accessed today. For OEMs and customers, this is also a cost-effective way to reduce emissions in the use phase.

For Europe to maintain competitiveness and finance its future, we need to invest not only in new technologies, but also leverage our existing technologies, which can meet customer preferences and still contribute to climate targets.

For the BMW Group, we are now just five weeks away from the next major innovation step, which our entire company has been fully focused on for many years now: the launch of the NEUE KLASSE.

On September 5th, we will celebrate the world premiere of the all-new BMW iX3* at the IAA Mobility here in Munich.

In June we hosted media representatives at the pre-drive event in Miramas in southern France. The initial feedback has been tremendous.

We remain right on time with the launch, including at our new Plant in Debrecen. Construction also continues at our battery assembly facility in Irlbach-Straßkirchen.

With the NEUE KLASSE, we are making great strides in all relevant technology fields – whether in electrification, digital user experience, driving dynamics or sustainability.

The new BMW iX3 will be benchmark in the industry.

The all-electric 6th generation powertrain will set standards in performance and efficiency:

• powered by our battery cells developed in house, with 20% more energy density:
• an electric range of up to 800 kilometers according to WLTP;
• With 400-kilowatt maximum charging, customers will be able add over 350 kilometers to their vehicle’s range in just 10 minutes according to WLTP;
• And with an energy consumption of 15 kilowatt hours per 100 kilometers.

In addition, our revolutionary new iDrive will change the way the driver interacts with the car. With the BMW iDrive, we set an industry standard more than twenty years ago. After the reveal of the all-new Panoramic iDrive at CES in January, we are already seeing the industry follow our lead.

With the technology clusters we have developed for the NEUE KLASSE, we will scale our advanced technologies across the portfolio. We will start in the core segment to build momentum quickly. This is simply smart economics.

By 2027, we will bring 40 new models and model updates with NEUE KLASSE technology and design language on the road worldwide.

Our technology cluster approach also allows us to integrate market-specific features and content. In our major sales regions, we have a variety of local solutions with leading partners. This allows us, for example, to further enhance the digital user experience as well as automated driving functions in our upcoming NEUE KLASSE models.

In China, we are collaborating with Alibaba Banma to develop the next level of intuitive and conversational in-car voice interaction. We will also enhance our BMW Intelligent Personal Assistant with functionality from DeepSeek in our vehicles in China.

In most other countries, the next-gen BMW intelligent personal assistant will be powered by large language model technology from Amazon Alexa.

For driving assistance systems that meet local needs and regulations, we have also sought out partners in different geographies. Always following our philosophy in this area: smart, symbiotic and safe.

Just two weeks ago, we announced a new partnership with Momenta, a leading Chinese ADAS technology provider. The partnership will focus on software development and integration for Chinese road-networks, traffic-conditions and user expectations, utilizing advanced AI algorithms and data driven development methods. We will launch the systems in China starting with our NEUE KLASSE.

In other markets, we continue to build on our already very successful partnership with Qualcomm.

These examples show how adaptive the NEUE KLASSE architecture is.

With a software-defined vehicle, we maintain competency over all systems of the car and can roll them out to markets at the same time across the world. But we also are able to quickly integrate local tech stacks into our own ecosystem to give consumers access to innovations and features they are used to.

And through backward integration of software solutions available for all aspects of the vehicle over the air, we will continuously enhance the customer experience.

This is a huge advantage for us.

Ladies and Gentlemen,

Our consistent strategic approach and continued success is not a coincidence but the result of resolute, long-term planning and orientation. It is a multi-year process in every area of the company.

This is what our stakeholders expect from us.

The BMW brand is a promise. And we deliver on our promises.

We continue to build upon the strong position we are in today.

With the rollout of NEUE KLASSE technologies and products over the next two years, we will bring the company to a whole new level.

Thank you.

- Check against delivery –

SLIDE 2: BMW Group Half-Year Report to 30 June

Good morning,

Ladies and Gentlemen,

After the first six months of the year, the BMW Group remains on track to meet its full-year targets for 2025.

As expected, tariffs weighed significantly on financials in the second quarter.

Nevertheless, the BMW Group achieved Group earnings before tax of over 5.7 billion euros and a Group EBT Margin of 8.5 percent in the first six months.

SLIDE 3: BMW Group Performance in Q2 2025

In the second quarter, deliveries to customers at Group level increased by 0.4 percent year-on-year.

As of June, BMW Group global sales remained on par with last year.

All-electric vehicles made an important contribution with a share of total sales of 18.3 percent.

The share of electrified vehicles – meaning either a BEV or a plug-in hybrid – even amounted to 26.4 percent.

Group earnings before tax totaled over 2.6 billion euros in the second quarter and over 5.7 billion euros after 6 months.

This resulted in a Group EBT margin of 7.7 percent in Q2 and 8.5 percent in the first half-year.

The operating profit in the Automotive segment reached 1.6 billion euros in Q2 and over 3.6 billion euros after 6 months.

This led to an Automotive EBIT margin of 5.4 percent for the second quarter and 6.2 percent for the year to the end of June – both within our full-year guidance of 5 to 7 percent.

Excluding the depreciation resulting from the purchase price allocation of BBA, the margins came in at 6.5 percent for the second quarter and 7.3 percent through six months.

SLIDE 4: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT

Let’s take a look at how the Automotive Segment performed across key metrics.

Between April and June, deliveries of BMW, MINI and Rolls-Royce vehicles to customers were on previous year’s level with 621,000 units.

We saw sales growth in all regions except China.

The BMW brand declined slightly by 2.6 percent compared to the second quarter of 2024.

Outside of China the brand grew by 4.7 percent.

MINI benefitted from the full availability of the entire model range and reported a significant year-on-year growth of 33.2 percent in the second quarter across all regions.

Retail sales in Q2 were especially strong in Europe, with double-digit growth of 10.2 percent year-on-year.

The European order intake for BMW remains strong, with an order bank reaching well into the fourth quarter.

The US reported a growth of 1.4 percent in Q2.

In China, retail sales levels in the first six months of 2025 were down 15.5 percent compared to the previous year.

However, during the second quarter we saw a slight sequential improvement month by month.

Sales of our all-electric vehicles continued to grow.

In the second quarter, we delivered more than 111,000 all-electric vehicles to customers.

Automotive segment revenues decreased moderately by 8.4 percent to 29.4 billion euros in the second quarter.

Adjusted for currency translation effects, the decrease was 5.3 percent, mainly due to lower sales volume in China.

Segment EBIT for the period from April to June totaled 1.6 billion euros.

The EBIT margin came in at 5.4 percent for the quarter and 6.2 percent for the half-year.

These margins include the negative effects from tariffs, which amounted to around 2 percentage points in the second quarter and around 1.5 percentage points in the first six months.

That brings me to my next slide, to take a detailed look at the year-on-year changes in the operational result.

SLIDE 5: Automotive Segment EBIT in Q2

Automotive EBIT declined by around 1.1 billion euros compared to the second quarter of 2024.

More than half of this difference is due to the impact of tariffs, which is included in the position Other.

Changes in currency and raw material positions were neutral in Q2.

In the second half year, we expect a headwind year-on-year.

The net balance of volume, model mix and pricing effects negatively impacted EBIT by 300 million euros in the second quarter, compared to the previous year.

Volume and model mix combined were neutral.

Pricing continues to be a headwind year-on-year, however to a much lesser extent than in the first quarter.

Competitive pressure remains strong, especially in the Chinese market. Here, price levels of the second half of 2024 continued into the first half-year of 2025, as expected.

Research and development expenses decreased by about 200 million euros compared to the prior-year quarter.

Group R&D expenditure as of June totaled 4 billion euros, slightly below previous year.

The R&D ratio according to the German Commercial Code came in at 6 percent after six months.

For the full year, R&D expenditure will be below last year’s level, and it will steadily decrease over the next years.

Selling and administrative expenses also decreased by around 100 million euros compared to the previous year.

The year-on-year headwind of 1.1 billion euros from Other Cost Changes can mainly be attributed to two factors:

• First, higher tariffs in the US and anti-subsidy tariffs imposed by the EU Commission on electrified vehicles from China
• And second, the sale of end-of-lease vehicles. Here, resale income was lower than in the second quarter of 2024, yet remains positive on a portfolio basis

SLIDE 6: Automotive Segment Free Cash Flow in Q2

Free cash flow in the Automotive Segment totaled about 1.9 billion euros in the second quarter.

Segment EBT amounted to 1.6 billion euros, which is 1 billion euros lower than in the previous year’s quarter.

The net change in working capital reduced free cashflow by around 300 million euros.

The net effect from capital expenditure and depreciation had an impact of 200 million euros in the second quarter.

Capital expenditure for the first half-year amounted to around 2.7 billion euros, a significant year-on-year reduction of around 700 million euros.

The capex ratio was 4.5 percent for the second quarter and 4 percent for the first six months.

After the peak in 2024, capex will decrease for the full year 2025.

We expect a capex ratio below 6 percent for 2025.

Changes to provisions negatively impacted free cash flow in the second quarter by around 200 million euros. This was mainly due to the consumption of warranty provisions.

The change in the position Other of around 1 billion euros reflects the development of a set of various topics, including accrued expenses, interest and advance payments received, income taxes and liabilities for tariff expenses not yet paid out.

After the first six months, Automotive Segment free cash flow is on previous year’s level with just over 2.3 billion euros.

For the full year, we are targeting a free cash flow of over 5 billion euros.

Our strong free cash flow generation enables us to further execute our consistent shareholder return strategy.

In May of this year, the Annual General Meeting authorized the Board of Management to buy back up to 10 percent of BMW AG's share capital over the next five years.

Based on this authorization, a third share repurchase program with a volume of up to 2 billion euros was approved.

It should be completed by April 30, 2027, at the latest.

The first tranche of 750 million euros began in May and will be completed no later than December 8th of this year.

SLIDE 7: Financial Services Segment in H1

Let’s move on to the Financial Services Segment.

The number of new contracts, concluded with retail customers in the first half year, reached almost 825,000 contracts, a slight decrease of 3 percent year-on-year.

This is due to the challenging situation on the Chinese market, which led to a moderate decrease in new credit financing business.

The new leasing business continued its dynamic growth in the first six months of the year.

The penetration rate for lease and loan offerings increased by 2.5 percentage points to 43.7 percent.

Driven by a higher average financing amount per contract, new business volume was on previous year’s level despite the slight decrease in new contracts.

Segment earnings amounted to just under 1.2 billion euros, a year-on-year decrease of 19.5 percent.

This results mainly from two topics:

• An addition to provisions following the receipt of a revised operational tax assessment for prior years.
• And the resale income of end-of-lease vehicles, which was lower than in the second quarter of 2024, yet remains positive on a portfolio basis

The credit loss ratio across the entire loan portfolio remained at a low rate of 0.27 percent.

SLIDE 8: Motorcycles Segment in Q2

In the Motorcycles Segment, deliveries decreased moderately by 8 percent year-on-year.

Segment revenues decreased by 2.8 percent.

Adjusted for currency translation effects, they were on par with the second quarter of 2024.

Segment EBIT in the second quarter totaled 136 million euros, with an EBIT margin of 14.2 percent.

SLIDE 9: Outlook 2025

Ladies and Gentlemen,

Our outlook for the full year is based on assumptions, which are described in detail in our half-year report.

Let me briefly mention some key factors for our business development in 2025.

In China, we have been observing increased monitoring of the automotive market by local regulatory authorities since the last two weeks of June.

This also affects commission payments from local banks to dealerships in connection with brokering retail financial and insurance products, payment terms to the supplier base as well as increased scrutiny of price competition.

Dealer commissions were significantly reduced by local banks in June.

We are closely following these developments and their potential impact on the Chinese automotive market.

Ladies and Gentlemen,

As you recall, our guidance given in March included all tariffs in force as of March 12th.

In our quarterly statement for Q1, we had assessed and included all tariff increases announced as of May 7th and confirmed our original guidance based on certain assumptions.

And in today’s half-year report, we maintain our consistent approach and have also incorporated the effects of all latest announcements.

According to the announcements on July 27th, an agreement between the US and the EU regarding the tariff situation is emerging.

Based on published information by the respective authorities, we expect partial reductions of the currently applicable tariffs between the US and the EU from August 1st.

Additionally, tariff negotiations across the globe are ongoing and may result in further changes.

Therefore, the expected impact from tariffs on our full-year results can still only be estimated based on certain assumptions.

For the full year 2025, we currently expect a burden from tariffs of around 1.25 percentage points on the EBIT margin in the Automotive segment, including mitigations.

Based on our assumptions, the full-year outlook remains unchanged.

On a Group level, we are targeting earnings before tax at previous year’s level.

In the Automotive segment, we expect a slight increase in deliveries and an EBIT margin in a corridor between 5 and 7 percent.

The EBIT margin in the Motorcycles Segment should come in at between 5.5 and 7.5 percent.

In the Financial Services Segment, we expect a Return on Equity in the range of 13 to 16 percent.

SLIDE 10: Q2 and H2 Profitability within Full-Year Target Corridor

Ladies and Gentlemen,

The BMW Group is a truly differentiated global player.

We set ourselves apart in the automotive industry with our global footprint and our highly flexible operations.

This strong strategic positioning enables us to mitigate the impact of tariffs and allows us to adapt swiftly to changing market conditions.

The BMW Group has a focused strategy and a clear plan how to effectively navigate our operating business.

As a result, we were able to provide a comprehensive guidance for the year 2025 in March, including the impact of tariffs.

And we delivered an EBIT margin within the full year target corridor of 5 to 7 percent both in the second quarter and for half-year.

At the BMW Group, we are steering our business carefully and in a consistent manner.

During the last years, we significantly invested in the future of our company, in line with our long-term planning.

In 2024, both capex and R&D reached peak levels.

Starting in 2025, we are reducing R&D and capex spending, as planned.

Our operating costs are also decreasing compared to prior year. Just as in Q1, this is again evident in our Q2 figures.

Based on the results of the first six months, we once again confirm our full-year targets for 2025.

And we remain committed to our long-term goals

of premium profitability and capital return to create value

for all our stakeholders.

Thank you.

- Check against delivery –

Statement

Walter Mertl

Member of the Board of Management of BMW AG, Finance

Annual Conference 2025

BMW Welt in Munich, 14 March 2025, 08:00 a.m. CET

Ladies and Gentlemen,

Good morning!

SLIDE: BMW Group in Full-Year 2024

As Oliver emphasized, we continue to follow our course and implement our long-term strategy. At the same time, we are focused on our operational business to consistently deliver on what we say.

The BMW Group proved this once again in Q4 2024:

We successfully reduced inventory impacted by the Integrated Braking System or IBS. And we achieved a sequential improvement in retail sales and profit versus Q3.

For the full year, we achieved our revised guidance in all parameters.

As anticipated, we reached peak levels of R&D and capital expenditure in 2024, particularly to prepare for models of the NEUE KLASSE. Starting this year, both the R&D and capex ratios will decrease meaningfully, as we start production of the NEUE KLASSE and lay the foundation for the long-term success of our company with over 40 new and updated models by 2027.

Through our global positioning and the flexibility of our operations, we can adapt to the geopolitical landscape and short-term market dynamics, proving our resilience.

Let’s take a look at the financial figures for the full year.

2024 was a year of two halves:

While the first half-year was in line with our original planning, sales performance in the second half of the year was impacted by delivery stops in connection with IBS, as well as persistent subdued demand in China. As expected, Q4 marked an improvement on the Q3 result.

SLIDE: BMW Group KPIs in FY24

Group revenues totaled 142.4 billion euros. The moderate decrease compared to 2023 was mainly driven by the decline in sales volume and intense price competition in the Chinese market.

Earnings before Tax at Group level amounted to 11 billion euros – significantly under 2023, but as expected in our adjusted guidance. This resulted in a Group EBT Margin of 7.7% for the year.

SLIDE: BMW Group Segment Performance in FY24

If we look at the key financial results of the individual segments:

Automotive delivered an EBIT of 7.89 billion euros and EBIT margin of 6.3%.

Motorrad had an EBIT of 198 million euros, representing a margin of 6.1%.

Financial Services saw an EBT of 2.54 billion euros and a Return on Equity of 15.1%.

And, finally, Other Entities generated 837 million euros in EBT, while eliminations amounted to a negative 146 million euros.

SLIDE: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT in FY24

So, let’s take a look at the Automotive Segment in detail:

For the full year, the BMW Group delivered 2.45 million BMW, MINI and Rolls-Royce vehicles to customers worldwide. This represents a slight decrease of 4% from the previous year, in line with our adjusted guidance.

Market dynamics in China remain weak, which impacted sales performance. However, the BMW brand achieved growth in every other major region.

In Europe, order intake in Q4 improved month by month. In the US, we experienced a strong recovery from IBS in Q4 with growth quarter-over-quarter of just over 50% and year-over-year of 8.9%.

Worldwide BMW Group sales performance in Q4 saw sequential improvement over Q3. Global deliveries grew by nearly a third quarter-on-quarter including double digit growth coming from the mid- and upper-segment together. 

All-electric vehicles remained a key growth driver for us. BEV deliveries totaled over 426,000 units for the year, significantly above 2023 by 13.5%. Overall, BEVs therefore made up 17.4% of total sales.

Our plug-in hybrid vehicles also remained very popular, with over 166,000 units sold in 2024. Electrified vehicles – meaning all-electric vehicles and plug-in hybrids – made up nearly a quarter of total sales.

Revenues in the Automotive segment amounted to nearly 125 billion euros, a decrease of 5.6% from 2023.

Earnings before interest and taxes reached 7.9 billion euros. This resulted in an EBIT margin of 6.3%, which was within our adjusted guidance corridor of 6 to 7 percent for the full year.

Excluding the 1.3 billion euros depreciation resulting from the purchase price allocation of BBA, the Automotive EBIT margin came in at 7.4% for the year.

SLIDE: Automotive EBIT Development in FY24

Looking to the operating result in detail:

Compared to 2023, EBIT for full-year 2024 saw a tailwind of 1 billion euros from the net balance of currency and raw material positions.

Year on year, the net effect of volume, model mix and pricing weighed on Automotive EBIT. The headwind resulted partly from the volume decrease, particularly in China. Pricing headwinds, including the effects of a highly competitive Chinese market and dealer compensation in China, amounted to more than half of the overall decrease of 4.4 billion euros.

The headwind of 1.4 billion euros from Other cost changes was driven by inflation in material costs and supply chain support.

The effect from warranty expenses was a tailwind year-on-year. Overall, lower additions to warranty provisions for specific topics were necessary in every quarter throughout 2024 compared to the previous year. An exception was Q3, due to the impact of IBS. For the full year 2024, the P&L impact of quality issues trended in a positive direction year-on-year, as planned.

SLIDE: R&D Expenditure in FY24

SLIDE: Capital Expenditure in FY24

Our R&D activities and investments focused on our ongoing electrification and digitalization strategy across the entire portfolio. As anticipated, R&D and capital expenditure reached peak levels in 2024 – both in absolute terms and in ratio.

Group expenditure for research and development for the full year reached 9.1 billion euros, compared to 7.8 billion euros in 2023. The R&D ratio according to the German Commercial Code was 6.4%, 1.4 percentage points more than in 2023.

Group capital expenditure totaled 9.1 billion euros, an increase from 8.8 billion euros in 2023. This resulted in a capex ratio of 6.4%, compared to 5.7% in 2023.

As we begin to rollout models of the NEUE KLASSE, we will see a decline in R&D and capex. This means in both absolute and relative terms, back towards our strategic corridors of between 4 to 5% for R&D and less than 5% for Capex by 2027 at the latest.

SLIDE: Automotive Segment Free Cash Flow in FY24

Turning to free cash flow – as you know, we steer this on an annual basis.

Starting with EBT delivering a full year result of 7.5 billion euros, working capital contributed positively with 200 million euros to free cash flow. Whilst inventory levels had risen due to sales stops related to IBS in Q3, we managed to successfully reduce stock by 5 billion euros in Q4. As a result, year-end inventory reached nearly the same level as it was at the beginning of the year.

For the full year, the net effect from capital expenditure and depreciation reduced free cash flow by 3.3 billion euros.

The development of provisions reduced free cash flow by 700 million euros.

The position “Other” reflects several positive effects, including interest received.

In line with our adjusted guidance, free cash flow reached 4.9 billion euros in 2024.

This is even after we invested 18.2 billion euros: 9.1 billion euros in CapEx and another 9.1 billion euros in R&D, paving the way for our future, and demonstrating our financial strength.

This strength is underscored by our Automotive net financial assets, which benefitted from the strong development of free cash flow in the fourth quarter. At year end, the Automotive NFA came in at almost 46 billion euros, which is around the same level as the start of the year.

SLIDE: Financial Services Segment in FY24

Moving on to the Financial Services Segment.

New business development in the segment remained robust throughout the year. A total of almost 1.7 million new financing and leasing contracts were concluded, a solid year-on-year increase of nearly 10%.

Overall, new business volume even increased significantly by 12.5% to 64.5 billion euros, due to higher average financing volume per vehicle.

Penetration rates for lease and loan offerings rose by 4.4 percentage points, reaching 42.6%. Without China, the penetration rate was over 50%, with growth in particular in the US and the UK.

Segment earnings before tax amounted to 2.54 million euros and were therefore significantly lower than the previous year. This was mainly due to higher credit and residual value risk costs than in 2023, but well within our expectations. We continue to see gains from the sale of off-lease vehicles, yet at lower levels due to market dynamics.

The credit loss ratio of 0.26% across the entire credit portfolio was well within our expectations and below industry levels.

Return on Equity for the full year reached 15.1%, within our adjusted guidance range of 15 to 18%.

Ladies and Gentlemen,

In our BMW Group Report, you will note that we have voluntarily adopted the full European Sustainability Reporting Standards for the first time as the framework for reporting all sustainability-related disclosures in our combined non-financial statement.

The BMW Group only reports on sustainability topics that have been assessed as “material” according to ESRS. However, this does not mean that topics which are assessed as “not-material” are necessarily less important.

We view sustainability holistically and as a competitive advantage. That is why we disclose our sustainability performance to our investors and customers.

You will note that the implementation of ESRS requirements have contributed over 100 additional pages to our Report. Due to the company-specific materiality assessment, comparability between companies remains limited – even within the same industry.

Indeed, it can be questioned how much value the additional scope and limited comparability offer to stakeholders. Accordingly, we welcome the proposed regulatory changes in the draft of the so-called Omnibus package and look forward to the draft updates and reduced scope of the ESRS.

Ultimately, we want added value for our stakeholders – meaning relevant and concise information. It’s not just about reporting and compliance.

SLIDE: Proposed Dividend and Payout Ratio

One important element of our stakeholder orientation is our shareholder return strategy, which the BMW Group remains committed to.

The Board of Management and the Supervisory Board will propose a dividend of 4.30 euros per share of common stock and 4.32 euros per share of preferred stock to the Annual General Meeting. This results in a total dividend payout of 2.7 billion euros. 

The proposed dividend for 2024 represents a payout ratio of 36.7%. This is within our long-term strategic target range of 30-40% and notably higher than the payout ratio in 2023.

On January 2nd, we began the final tranche of our ongoing second share buyback program, which should be completed by latest April 30th. This will conclude the second program – with 2 billion euros – more than half a year earlier than initially planned.

By this point in time, we will have reduced a total of 47 million shares in circulation since the start of the share buyback authorization in 2022. This corresponds to over 7% reduction in share capital.

At the upcoming AGM, the Board of Management of BMW AG plans to propose an agenda item, seeking a new five-year authorization to acquire treasury shares amounting to up to 10 percent of share capital.

You will have noted that we have made a step change in our approach since 2021. Starting in 2022, we added share buybacks as an additional instrument alongside dividend payments. We have also increasingly used the range of dividend payout corridor. And we increased the share of Automotive free cash flow distributed to shareholders from the previous years’ levels to almost 100% this year.

So, let’s move to the Outlook for 2025.

Looking to the market development:

Due to stabilizing inflation and declining interest rates in many countries, we expect to see a rise in demand.

How will the BMW Group’s sales performance develop this year?

Given the robust economic situation, we anticipate a solid market development in the US. In Europe, we do expect growth driven by electrified vehicles. The market dynamics in China, however, will remain challenging.

For the full year, revenues per vehicle in the Automotive segment are expected to be in the same range as 2024.

Our guidance reflects the current status of our planning, including all the tariff increases in force as of March 12th, 2025.

SLIDE: Outlook 2025

What do we expect for our key performance indicators in 2025?

Let me focus on selected guidance parameters.

In the Automotive Segment we are forecasting a slight increase in deliveries of BMW, MINI and Rolls Royce vehicles.

In terms of profitability, the total impact of the tariff increases in place as of March 12th amounts to approximately 1 percentage point on the Auto EBIT margin. As a result, the EBIT margin is now expected between 5 to 7%. Consequently, Return on Capital Employed in the Automotive segment should be within a range of 9 to 13%.

In the Financial Services segment, we anticipate a Return on Equity of 13 to 16%.

The Group’s pre-tax profit is expected to remain at the previous year’s level.

Starting January 1st, 2025, we have adjusted the outlook range for Group EBT guidance. The existing bandwidth was too narrow to reflect the underlying movements in the segments. For details, please refer to the glossary of the BMW Group Report.

The full outlook for 2025 for all key performance indicators is also available in the BMW Group Report.

For the full year 2025, we expect a free cash flow in the Automotive Segment of over 5 billion euros.

SLIDE: Closing

Ladies and Gentlemen,

The BMW Group remains fully focused on achieving our short-term results without compromising our long-term strategic objectives.

We remain committed to our long-term target corridor of 8 to 10% EBIT margin in the Automotive Segment.

To that end, we are constantly enhancing our operational business to ensure we achieve our strategic priorities and optimize our returns.

So, after the peak in 2024, we not only expect to see a turnaround in R&D expenditure and CapEx in 2025, but also a turnaround in operational costs. And here I mean a cost decrease in nominal terms, covering the effects of inflation. This will become visible over the course of the year.

At the BMW Group, strong brands and emotional products have long built the foundation of our success.

With the technological boost from the NEUE KLASSE across the entire portfolio, we look forward to seeing the benefits from our investments start hitting the road later this year.

O BMW Group entra em 2025 com uma clara estratégia de crescimento, sustentada na sua componente tecnológica, numa renovada linha de produtos e na nova era do NEUE KLASSE. Na Conferência Anual do BMW Group, realizada em Munique esta manhã, o Conselho de Administração da BMW AG apresentou os resultados financeiros de 2024, reafirmando o compromisso da empresa com a inovação, eletrificação e a eficiência das suas operações.

Oliver Zipse, Presidente do Conselho de Administração da BMW AG, destacou a importância da visão estratégica da empresa, afirmando que “o que sempre distinguiu o BMW Group foi a nossa capacidade de manter o rumo, mesmo em condições difíceis. Continuamos claramente focados em duas coisas - o nosso desempenho a curto prazo e a nossa perspetiva a longo prazo. Com o NEUE KLASSE, estamos a implementar o maior projeto com foco no futuro na história da nossa empresa, enquanto prevemos alcançar um fluxo financeiro robusto.”

Em 2024, o BMW Group manteve um desempenho financeiro sólido, impulsionado pelo crescimento contínuo da eletrificação e pela gestão eficiente dos custos operacionais. A empresa registou um aumento das receitas para 158,5 mil milhões de euros (+2,2% face a 2023), sustentado pelo lançamento de novos modelos e pela elevada procura no segmento premium.

O lucro antes de impostos (EBT) situou-se nos 17,3 mil milhões de euros, que reflete uma margem EBT estável de 10,9%. No segmento automóvel, a margem EBT fixou-se em 8,6%, dentro do intervalo previsto, demonstrando a capacidade da BMW em manter a rentabilidade num complexo contexto de transformação do setor.

O cash-flow no segmento automóvel atingiu os 6,6 mil milhões de euros, assegurando a capacidade de investimento da empresa no desenvolvimento de novas tecnologias e na expansão da produção do NEUE KLASSE.

Em 2024, o BMW Group continuou a impulsionar a eletrificação da sua gama, registando um aumento significativo nas vendas de veículos elétricos, que totalizaram 426.536 unidades (+13,5% face a 2024), o que representa mais de 17% do total das vendas. No caso da MINI, cerca de 25% das vendas foram modelos BEV, enquanto na Rolls-Royce, um em cada três veículos entregues foi elétrico, destacando a relevância do modelo Spectre para a marca.

Além dos BEV, os híbridos plug-in continuam a desempenhar um papel essencial na transição energética do BMW Group. Em 2024, a empresa entregou quase 600 mil veículos eletrificados (BEV + PHEV), reforçando o seu compromisso com a mobilidade sustentável.

Para 2025, o BMW Group antecipa um crescimento ligeiro nas vendas a nível global, impulsionado pelo aumento da produção de modelos elétricos e pela introdução dos modelos do NEUE KLASSE na sua gama. O grupo antecipa uma margem EBIT para o setor automóvel entre 5% e 7%, mantendo assim um elevado nível de eficiência e otimização de custos.

A BMW Motorrad espera um ligeiro crescimento nas vendas que permitirá manter a sua rentabilidade.

A BMW prevê também um ligeiro aumento da quota de veículos elétricos nas suas vendas, com os BEV a representarem entre 20% e 25% das vendas globais até ao final do ano.

Com o arranque da transformação de toda a gama e produção dos modelos do NEUE KLASSE, a BMW pretende que a nova geração de veículos 100% elétricos represente um salto tecnológico na indústria automóvel. O primeiro modelo desta linha será o BMW iX3, cuja produção se iniciará no final de 2025 na fábrica de Debrecen, Hungria - o primeiro centro de produção do BMW Group dedicado exclusivamente a veículos elétricos.

O NEUE KLASSE marca ainda a introdução de novos clusters tecnológicos que irão definir a próxima geração de veículos BMW, incluindo uma arquitetura elétrica de 800V, um novo conceito de software e uma experiência de condução altamente digitalizada. Estes avanços tecnológicos permitirão uma maior eficiência, carregamentos 30% mais rápidos e um aumento de, pelo menos, 30% na autonomia dos seus veículos elétricos.

O BMW Group mantém ainda assim, a sua gama alargada com a disponibilização de diversas motorizações que incluem motores de combustão altamente eficientes, híbridos plug-in e veículos elétricos. Em 2028, a marca dará um novo passo ao lançar o primeiro modelo de produção movido a hidrogénio, completando a oferta de soluções de mobilidade net-zero.

O BMW Group está a transformar os seus veículos em verdadeiras plataformas digitais, introduzindo um novo sistema digital que permitirá atualizações over-the-air e uma experiência de condução mais intuitiva e conectada. A nova geração do BMW Panoramic iDrive será estreada no BMW iX3, com um display panorâmico e interativo, um head-up display 3D e comandos de voz aprimorados através do BMW Intelligent Personal Assistant.

Com a nova arquitetura elétrica e software definido pela BMW, a marca conseguirá uma redução de 30% no peso da cablagem dos veículos, além de uma eficiência energética melhorada com a recuperação de energia em travagem mais eficaz e uma integração total entre motor, travagem e aerodinâmica

- Check against delivery –

Ladies and Gentlemen,

At the BMW Group, we always focus on opportunities in the current market, as well as on our long-term success.

We ensure this by acting in a flexible, forward-looking manner.

After the extraordinary challenges in the third quarter, we are looking ahead: In the fourth quarter, we are back on track for stronger earnings in order to achieve our annual targets, despite planned high upfront expenditures.

We continuously adapt to changes in our environment – without ever reacting rashly. We continue to steer our strategic course into the future, while avoiding short-term adjustments that could jeopardise our long-term success.

Our commitment to technology openness has proven its value – and is paying off today more than ever.

Our global positioning across sales, production and our supplier network secures us access to markets worldwide.

BMW is a global company with a strong presence in all relevant economic regions. I regularly take the time to see this for myself. This doesn't work at a distance, but is best done when you are on the ground.

So, over the past three months, I have visited markets in all of our four sales regions – in Europe, the Americas, China and our emerging “Fourth Pillar Region”, which includes Southeast Asia and the Middle East, among others.

Our global approach has often allowed us to compensate for fluctuating demand in individual markets. Of course, we are monitoring current developments in China very closely. The economic conditions there are challenging – and that applies to all market participants.

However, it’s our ambition to perform better than our competitors, even in a challenging environment.

The key to this lies in our highly attractive product line-up. This enabled the BMW brand to deliver solid sales growth in Europe in the first nine months of the year.

With sales up by over 7 percent, we are significantly outperforming the total European market and expanding our market share.

There was particularly high demand

• in the UK, with an increase of 21 percent,
• in Spain, plus 19 percent,
• in Italy, up 17 percent,

and in France, with a gain of 14 percent.

And the BMW brand is also growing in markets such as South Korea, Australia and India.

Global demand for our high-margin models in the upper vehicle segments remains stable. The high-performance cars of BMW M reported sales growth of two percent in the year to the end of September. This month also sees the market launch of the latest M model many fans have been waiting for: the BMW M5 Touring*.

We are constantly expanding our product range across all drive variants in line with customer demand. Our highly flexible production network allows us to tap market potential.

This applies in particular to our all-electric models. In virtually every relevant segment, the BMW Group has at least one pure electric vehicle.

Across BMW, MINI and Rolls-Royce, customers have a choice of more than 15 different models. This means that the BMW Group has one of the broadest ranges of fully-electric vehicles among its competitors.

Sales in the first nine months of the year underscore the success of the BMW Group’s electrification strategy.

While other manufacturers – including some that only produce electric cars – are seeing a significant decrease in sales, battery-electric vehicles remain a growth driver for us in 2024.

By the end of September, we had sold almost 300,000 BEVs – an increase of more than 19 percent compared to the same period of last year. In the third quarter, battery-electric vehicles already accounted for 19 percent of the BMW Group’s total sales.

The BMW brand's fully-electric models performed particularly well in Europe – with sales climbing 36 percent in the first nine months.

Globally, BMW’s strong BEV portfolio fed growth in deliveries of more than 22 percent. The BMW i4* remains the brand's most popular electric vehicle.

It is closely followed by the BMW iX1*, which – like the BMW i7* – recorded double-digit growth. The first all-electric BMW iX2* is also on track for success following its market launch.

The new all-electric MINI models – led by the MINI Cooper SE* – are also being very well received. With a sales increase of 54 percent, MINI BEVs experienced highly dynamic growth in the third quarter. Starting this month, the all-electric MINI Aceman* will also be available in Europe.

For the first time, MINI is also electrifying its John Cooper Works variants. The MINI John Cooper Works Electric* and MINI John Cooper Works Aceman* celebrated their premiere at the Paris Motor Show.

Performance and driving dynamics are the clear focal point in both models. From January 2025 onwards, they will captivate even the most dedicated motorsport fans.

Looking ahead to next year, we anticipate another significant increase in sales of fully and partially electrified vehicles. For that reason, we see no need to modify or delay the European Union's stricter CO2 fleet targets for 2025.

We have been working intensively to meet these new fleet targets for a very long time. We are therefore confident that we will also meet the stricter requirements for 2025, as we have consistently in the last years.

Nevertheless, we believe that a comprehensive and critical review of CO2 fleet legislation in the EU following 2025 is absolutely essential.

What matters most is every tonne of CO2 we can save today – not sometime in the future. This is why the use of low-CO2 fuels, such as e-fuels, E25 or HVO100, should also be revisited. These fuels could immediately improve the carbon footprint of the more than 250 million vehicles already on roads in the EU.

By 2030, all-electric vehicles will account for more than 50 percent of our total sales. The rollout of our fully-electric NEUE KLASSE will play an important part in this.

The NEUE KLASSE is now entering the final straight – and we are keeping this forward-looking project on track. With a new design, the next generation of electric drives and a comprehensive digital experience, the NEUE KLASSE will set completely new standards.

In just under a year, the first series-production SAV model of the NEUE KLASSE will roll off the line at our new plant in Debrecen, Hungary. This will soon be followed by a sporty sedan from our main plant in Munich.

Preparations for the launch are progressing well:

• In early October, we reached an important milestone in Debrecen, with the start of pre-series production.
• At Plant Landshut, pre-series production of electric-engine housings for the NEUE KLASSE has already begun.
• In Munich, construction of the new assembly for the NEUE KLASSE is progressing in parallel with ongoing production.

With the NEUE KLASSE, we will elevate our entire vehicle portfolio to a whole new level of innovation. This will be possible thanks to our use of technology clusters, which can be integrated into all future vehicles.

In this way, all our products will benefit from the technological leaps we will achieve with the NEUE KLASSE. This applies not only to our all-electric vehicles, but across all drive technologies.

Our continued, systematic implementation of technology openness also ensures that we will continue to offer the latest ICE models in the coming years.

In 2028, we will introduce another element to our drive train portfolio: the BMW Group’s first series-produced fuel cell vehicle.

Hydrogen will play an increasingly important role in decarbonisation. This makes vehicles with a fuel cell drive train a logical complement to established drive technologies. 

To develop the new generation of fuel cell drive trains, we are deepening our long-standing cooperation with Toyota. We announced this in September together with Toyota CEO Koji Sato.

This collaboration also shares the goal of expanding infrastructure for hydrogen refuelling and electric vehicle charging.

Ladies and Gentlemen,

The European automotive industry currently faces fundamentally different challenges from those we have faced in the past.

We are not dealing with a singular, overarching occurrence.

Instead, we are facing a tangle of critical influencing factors that keep growing in number.

In such a phase, we do not need short-term incentives that only create a fleeting impact. What global companies truly need is a reliable and binding framework for progress and prosperity.

It should be up to each company to find the best technological solutions to meet legal requirements and to further reduce CO2 emissions.

Instead, more and more obstacles are constantly being placed in the way of existing successful technologies. As a result, potential for reducing CO2 emissions cannot be utilized. At the same time, decisions are being made that even harm the industry.

The introduction of tariffs on electric vehicles imported into the EU from China is just one example. Import duties do NOT make European manufacturers any more competitive.

On the contrary: They undermine the business models of companies that operate globally.

And, since these tariffs mainly affect small electric cars built by European manufacturers, they could even impede the growth of e-mobility.

Measures like these are also inconsistent with the EU value of free trade. Free movement of goods is a key success factor for economic growth – not just within the European Union, but globally.

Free trade remains a guiding principle for the BMW Group – and we will continue to advocate for it. Because protectionism always carries the risk that measures will provoke countermeasures – ultimately hurting everyone involved, rather than benefitting any of them.

We operate as a global player, making it all the more important to maintain our strategy of balanced global positioning. This applies as much to our sales and production network as to our selection of suppliers.

We continue to systematically expand our “local for local” approach – making our supply chains more resilient and improving our access to different market regions.

And while Germany’s future as an industrial location may be questioned by some, we are making investments here.

In Irlbach-Straßkirchen in Bavaria, we are building a new assembly plant for the latest generation of high-voltage batteries. They will be used for the first time in the NEUE KLASSE.

A total of five new assembly plants are under construction near our production sites worldwide, across all three major sales regions – Europe, the Americas and China.

In this way, we are already laying the foundation today for successful growth in the future.

Ladies and Gentlemen,

This past quarter, we faced a series of extraordinary challenges.

One of the BMW Group’s biggest strengths is our ability to consistently find the right solutions and implement the necessary steps swiftly and efficiently.

Our company maintains a robust global presence. Our strategic direction for the future is solid. We are carefully adapting our approach to changing conditions and planning for a range of scenarios.

We continue to be guided by the developments we can realistically expect to see in different regions of the world.

The fourth quarter will demonstrate that our measures – despite all the ongoing challenges – yield positive results. We therefore approach the final quarter of the current financial year with a sense of confidence.

We are striking a balance between securing short-term earnings and long-term success: This year, we are investing more than ever in new products, technologies and our plants, so that we can continue the BMW success story with the NEUE KLASSE from next year onwards.

Thank you.

- Check against delivery –

SLIDE 2: BMW Group Quarterly Statement to 30 September 2024

Good Morning,

Ladies and Gentlemen,

First, I want to clear up that the sales and earnings figures we are releasing today should be viewed in the light of extraordinary challenges.

As you are aware, we revised our guidance for 2024 on September 10th. This was mainly due to two factors:

• First: temporary delivery stops and technical measures related to the Integrated Braking System, or IBS, delivered by a supplier.
• Second: ongoing muted demand in China.

In the case of IBS, numerous markets have to replace the affected parts before cars can be delivered to customers.

This led to temporary delivery stops that impacted sales and revenues and drove up inventory levels.

In the third quarter, we fully recognised the necessary provisions for warranty obligations in the high three-digit million-euro range.

Looking forward, we have already made good progress with the implementation of technical measures worldwide and expect to complete them for most cars held in stock by the end of this year.

So in Q4 we will see volumes well above Q3 and an improved product mix.

SLIDE 3: BMW Group Performance per Q3 2024

Let’s now take a look into the numbers for the third quarter.

At Group level, revenues were significantly lower than in the prior-year quarter, at 32.4 billion euros.

Group EBIT totalled 1.7 billion euros in the third quarter.

The Financial Result was considerably impacted by negative fair value measurement effects and, consequently, Group EBT amounted to 838 million euros between July and September.

The Group EBT margin for the third quarter came in at 2.6 percent.

Year to date, Group EBT totalled almost 8.9 billion euros, resulting in an EBT margin of 8.4 percent.

The Automotive EBIT margin was 2.3 percent for the third quarter and 6.6 percent for the year to the end of September.

Excluding the depreciation resulting from the purchase price allocation of BBA, the Automotive EBIT margin came in at 3.5 percent for the quarter and 7.7 percent for the first nine months.

After nine months, the BMW Group’s global sales showed a slight year-on-year decrease of 4.5 percent.

The Balance Sheet of the BMW Group has increased by 11 billion euros since the beginning of the year.

Half of this increase is driven by the growth of our Financial Services portfolio and thus represents future profit potential.

The remaining increase is mainly related to temporary inventory build up.

While the third quarter results were impacted by extraordinary factors, it is important to highlight the positive aspects of our operational performance:

• Sales of our all-electric vehicles amounted to almost 300,000 vehicles in the first nine months of the year, a significant increase of 19.1 percent.

• BEVs made up 16.8 percent of our deliveries for the year to the end of September.
• Despite the temporary delivery stops and excluding the Chinese market, the BMW brand reported worldwide growth of 4 percent.
• In Europe, the brand achieved sales growth of 7.6 percent.
• Our core brand continues to be well positioned in the US and maintained its market share.

SLIDE 4: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT

Moving to the Automotive Segment.

In the third quarter, the BMW Group delivered around 541,000 BMW, MINI and Rolls-Royce vehicles to customers worldwide. This represents a decrease of 13 percent compared to the same quarter of last year.

However, our all-electric vehicles continued to perform well: Over 100,000 units were delivered to customers – 10.1 percent more than in the same quarter of last year.

The share of our all-electric vehicles was 19.1 percent of total sales.

In fact, more than a quarter of our total sales came from electrified vehicles – that is, BEVs, plus plug-in hybrids.

The successful sales development of our electrified vehicles is clear proof that we are well on track to fulfilling our CO2 emission targets in the EU for 2025.

Segment revenues amounted to around 28 billion euros – which was lower than in the same quarter of 2023.

In Q3 revenue per unit continues to be at last year’s level.

EBIT for July to the end of September totalled 634 million euros.

The EBIT margin came in at 2.3 percent for the quarter and 6.6 percent for the year to the end of September.

That brings me to the next slide with the details of the changes in the operational result.

SLIDE 5: Automotive Segment EBIT in Q3

The net balance of currency and raw material positions exceeded the previous year by 200 million euros.

For the full year 2024, the net balance of currency and raw material positions should provide a tailwind of close to one billion euros.

We expect this to nearly offset the headwinds from material costs.

But we are seeing additional requests for supply chain support.

The net balance of volume, model mix and pricing effects negatively impacted EBIT by 2.1 billion euros in the third quarter, compared to the previous year.

All three elements trended lower year-on-year.

• The volume effect reflects the sales decline I mentioned earlier.
• The mix was also adversely affected, since the temporary delivery stops and market conditions in China had a greater impact on vehicles in the upper premium segment.
  This will turn in Q4, as we expect to see an improved product mix.
• The pricing effect reflects the ongoing challenges of a difficult price environment globally as well as weak consumer sentiment in China.

The health of our dealers’ operations is strategically important to us. Therefore, in Q3, we have implemented measures jointly with our Chinese dealers to support both profitability and liquidity.

Research and development expenses increased by about 100 million euros, compared to the prior-year quarter.

Group expenditure for research and development reached approximately 6.6 billion euros in the first nine months.

The R&D ratio according to the German Commercial Code was at 6.3 percent at the end of September. It is significantly higher than prior year due in part to higher expenditure, but also compounded by lower revenues.

The capitalisation ratio for development costs stood at 35.3 percent after nine months – evidence of our ongoing commitment to investing in innovation.

Selling and administrative expenses for the third quarter were on par with the previous year, as planned.

Other Cost Changes include the high three-digit million-euro warranty expenses related to IBS and some smaller compensating items.

Overall, the negative net effect in this position amounts to 500 million euros, compared to the prior-year quarter.

SLIDE 6: Automotive Segment Free Cash Flow in Q3

Free cashflow in the Automotive Segment totalled negative 2.5 billion euros in the third quarter.

EBT contributed around 400 million euros to Automotive Free cashflow.

The change in working capital of 1.9 billion euros reflects the increase in inventory levels.

The net effect of capital expenditure and depreciation reduced free cashflow by 1.2 billion euros.

Capital expenditure for July to September totalled 2.2 billion euros.

This represents a capex ratio of 6.7 percent for the third quarter and 5.3 percent for the nine-month period.

A significant portion of our capital expenditure will accrue in the fourth quarter, as in previous years. As a result, we still expect the capex ratio for the full year to be over six percent.

At the end of the first nine months, free cashflow in the Automotive Segment totalled negative 200 million euros.

In line with our guidance, we expect a free cashflow of over four billion euros for the full year, despite the planned peak investments in R&D and capex.

On the one hand, we anticipate a significant sequential increase in EBT in the final quarter of the year.

On the other hand, we also expect a strong positive contribution from the reduction in working capital.

We are making good progress in replacing the affected IBS components worldwide.

In addition, we have taken measures to adjust our production.

Given these measures and the projected sales volume increase in Q4, we expect inventory to be on previous year’s levels by the end of 2024.

Net Financial Assets in the automotive business totalled close to 40 billion euros as of September.

The NFA position was impacted by the development of Free Cashflow in the third quarter. The strong Free Cashflow we are targeting in the fourth quarter will increase our NFA accordingly.

Given our strong balance sheet, the BMW Group remains committed to its shareholder return strategy, which includes both dividend payments and share buybacks.

On October 25th, we successfully completed tranche three of our ongoing share buyback program.

We will continue with this program following the completion of a separate buyback of common shares designated for our employee share program.

We anticipate that the current program of 2 billion euros will be finalized by April next year – more than half a year earlier than initially planned.

Additionally, the Board of Management of BMW AG plans to propose an agenda item at the upcoming AGM, seeking a new authorization to acquire treasury shares amounting to up to 10 percent of share capital.

SLIDE 7: Financial Services Segment YTD September

Let’s move on to the Financial Services Segment.

The positive trend in new business continued in the third quarter – for both new and used vehicles.

In the first nine months, more than 1.25 million new leasing and financing contracts were concluded. This represents a significant increase of 12.5 percent year-on-year.

The volume of new business, including all new financing and leasing contracts, also saw significant growth of 13.6 percent to 46.5 billion euros.

The total value of all contracts managed reached almost 144 billion euros at the end of September.

Segment earnings for the first nine months were 12.4 percent lower year-on-year, at 2.15 billion euros.

This decrease resulted mainly from lower income from the resale of end-of-lease vehicles as well as measurement effects related to the evaluation of interest rate derivatives.

During the reporting period, the credit loss ratio stood at 0.26 percent across the entire credit portfolio.

SLIDE 8: Motorcycles Segment in Q3

In the Motorcycles Segment, the ongoing competitive situation across core markets affected the volume development.

Deliveries experienced a slight year-on-year decrease of 3.2 percent in the third quarter. Through September, they were on previous year’s level.

The segment's third-quarter EBIT totalled 27 million euros.

The EBIT margin came in at 3.8 percent for the third quarter and 9.5 percent for the nine-month period.

SLIDE 9: Outlook 2024

Ladies and Gentlemen,

in the fourth quarter, we expect the usual seasonality of fixed costs and ongoing muted demand in China.

But we will also see volumes well above Q3 and an improved product mix, as the completion of technical measures progresses.

Therefore, we confirm the adjusted full-year guidance we communicated in September for the Group and for all segments.

Group earnings before tax will decrease significantly.

In the Automotive segment, we are planning for a slight decrease in deliveries compared to last year.

The share of all-electric vehicles will increase significantly.

We expect to see the EBIT margin in a corridor between 6 and 7 percent.

The Return on Capital Employed (RoCE) should come in between 11 and 13 percent.

Deliveries in the Motorcycles Segment are projected to be on last year’s level.

The EBIT margin is forecast to be in a range between 6 and 7 percent, with a Return on Capital Employed (RoCE) between 14 and 16 percent.

In the Financial Services Segment, Return on Equity (RoE) should be between 15 and 18 percent for the full year.

Our guidance assumes that geopolitical and macroeconomic conditions will not deteriorate significantly.

SLIDE 10: Ambidextrous approach addresses the short and the long term

Ladies and Gentlemen,

The BMW Group remains fully focused on achieving our short-term results without compromising our long-term strategic objectives.

Our flexible approach allows us to calibrate to changing market dynamics and to constantly fine-tune our cost structures across the company.

At the same time, we remain committed to invest in strategic projects that will secure enduring future success.

Our performance in the third quarter was impacted by one-time headwinds as well as ongoing challenges in the Chinese market.

However, the sales development of our all-electric vehicles in the third quarter clearly demonstrates the continued success in implementing our electrification strategy.

This year, we are setting a decisive course for the future of our company. To that end both research and development spending and capital expenditure will peak in 2024, as planned. We expect our R&D ratio for the full year to exceed five percent, with a capex ratio of more than six percent.

With the NEUE KLASSE we will take a significant step forward in design, battery technology, software and tech stack.

This ensures that we will capitalize on the full value generation potential as it rolls out across the whole product portfolio, starting at the end of next year.

The NEUE KLASSE will shape the future of our company and deliver sustained success for the benefit of all stakeholders.

Thank you.

- Check against delivery –

Ladies and Gentlemen,

Good morning,

SLIDE 2: BMW Group Half-Year Report to 30 June 2024

The BMW Group remains on track and confirms its targets for 2024, despite the volatile market environment.

After a successful start to the year, we again achieved an EBIT margin for the Automotive Segment within our full year target range of 8-10 percent in the second quarter, thanks to our attractive product portfolio.

At the same time, we are continuing to invest in our future model line-up and securing the company’s long-term competitiveness.

SLIDE 3: Highlights of BMW Group Performance in Q2 2024

As of June, BMW Group global sales remained on par with last year.

The BMW brand grew by 2.3 percent globally or 6.2 percent if we exclude the Chinese market.

Global growth drivers are our all-electric vehicles and models from the upper premium segment, both of which saw a double-digit increase.

The Group EBT margin came in at 10.5 percent for the second quarter and 10.9 percent for the first half-year.

The Automotive EBIT margin reached 8.4 percent in the second quarter and 8.6 percent for the half-year, both within our full year target range of 8 to 10 percent.

Excluding the depreciation resulting from the purchase price allocation of BBA, the margins came in at 9.4 percent for the second quarter and 9.6 percent through six months.

Ladies and Gentlemen,

The BMW Group is committed to maintaining its strategic focus.

We have a clear plan and a long-term strategy that we are implementing systematically.

At the same time, we remain highly flexible in our execution and are able to respond swiftly to market developments.

This enables our operating business to deliver consistently good results.

SLIDE 4: BMW Group in Q2

Let’s take a look at the financial figures in the second quarter in more detail, starting with a brief overview of the Group.

BMW Group revenues were on par with the previous year.

Group earnings before tax totalled around 3.9 billion euros, resulting in a Group EBT margin of 10.5 percent.

SLIDE 5: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT

On this slide you can see how the Automotive Segment performed across key figures.

In the second quarter, the BMW Group delivered approximately 619,000 BMW, MINI and Rolls-Royce vehicles to customers.

The BMW brand reported sales growth of 2.2 percent.

MINI, on the other hand, saw a significant decrease from the previous year, due to the planned model changeover across the entire product range.

However, in the second half of the year, the brand will benefit from the ramp-up of the New MINI Family, with the Countryman* and Cooper*, both available in several drivetrains, as well as the all-electric Aceman*.

We continue to see sales growth of our all-electric vehicles.

The BMW Group delivered about 108,000 BEVs to customers in the second quarter. This represents 17.4 percent of our total sales.

Our electrified vehicles – in other words, BEVs, plus plug-in hybrids – accounted for almost 24 percent of total sales in the second quarter.

Segment revenues increased slightly by 1.4 percent.

Adjusted for currency translation effects, revenues saw an increase of 2.1 percent.

The significant growth in all-electric vehicles and models from the upper premium segment contributed to this. The current trend is also expected to have a positive effect on revenues for the remainder of 2024.

Revenue per wholesale unit across the entire product portfolio is expected to be in line with last year’s level.

EBIT for the period from April to June totalled 2.7 billion euros.

The EBIT margin came in at 8.4 percent for the quarter and 8.6 percent for the half-year.

Excluding the depreciation resulting from the purchase price allocation of BBA, the EBIT margin was 9.4 percent for the second quarter and 9.6 percent through six months.

That brings me to the EBIT bridge, to explain in more detail the changes in the operating result, compared to the second quarter of the previous year.

SLIDE 6: Automotive Segment EBIT in Q2

The net balance of currency and commodity positions provided a tailwind of 500 million euros over last year’s second quarter.

For the full year 2024, we anticipate a positive net balance from currency and commodity positions.

This is expected to nearly offset material cost headwinds. However, we see additional requests for supply chain support.

The net balance of volume, model mix and pricing effects in the second quarter was about 300 million euros lower year-on-year.

Volume development and the model mix made a positive contribution to this.

The global price environment for new and used cars continued to normalise in the second quarter.

The Chinese market, in particular, remains highly competitive.

For the full year 2024, we expect the net effect from volumes, model mix and prices to be neutral over last year.

Research and development expenses increased by about 100 million euros compared to the prior-year quarter.

The BMW Group's research and development expenditure remained at a high level through the end of June, totalling almost 4.2 billion euros.

The R&D ratio according to the German Commercial Code was at 5.7 percent after the first six months.

The capitalization ratio for development costs, which is relevant for R&D costs according to IFRS, was 34 percent in the second quarter and 30.8 percent as of June.

Selling and administrative expenses increased by around 100 million euros compared to the previous year, primarily driven by personnel costs and expenses for IT projects.

The headwind of 200 million euros from Other Cost Changes can mainly be attributed to manufacturing costs. Here, inflation in material costs continues to have an impact.

SLIDE 7: Automotive Segment Free Cash Flow in Q2

Free cash flow in the Automotive Segment totalled 1 billion euros in the second quarter.

The change in working capital, amounting to 500 million euros, is largely due to the planned increase in inventory levels. This ensures we can continue to meet global demand for our products in the second half of the year.

The net effect from capital expenditure and depreciation reduced free cash flow by 400 million euros in the second quarter.

Total investments for April to June amounted to around 2.6 billion euros.

The capex ratio came in at 5.8 percent for the second quarter and 4.7 percent for the half-year.

As in the previous years, the major share of capital expenditure will occur in the second half of the year and especially in the fourth quarter.

We expect a capex ratio of more than six percent for the full year.

Changes to provisions positively impacted free cash flow in the second quarter by around 100 million euros.

The change in the position Other of around 800 million euros mainly reflects regular tax payments.

After the first six months, Automotive Segment free cash flow had reached just over 2.3 billion euros.

The difference in free cashflow compared to 2023 is due to the capex increase of around 1 billion euros.

We expect to see a positive contribution from a reduction in working capital.

For the full year, we are targeting a free cash flow of over six billion euros.

Since 2022, we have made a paradigm shift in our shareholder return strategy by adding a share buyback programme that supplements our annual dividend payout.

In doing so, we have increased the payout ratio of Automotive Free Cashflow by paying dividends in our target corridor of 30 to 40 percent as well as using the share buyback program.

BMW AG is continuing with its share repurchase programme as planned. At the end of June, it had acquired shares equivalent to 5.51 percent of the existing share capital as of June 30th.

The second tranche of the second programme, totalling 500 million euros, was completed in June.

The third tranche of 500 million euros, which began in June, will be concluded no later than December 31st.

By the end of 2024, BMW AG will have repurchased shares valued at 1.5 billion euros as part of the second programme, which amounts to 2 billion euros.

SLIDE 8: Net Financial Assets

Ladies and Gentlemen,

The BMW Group has a solid and robust balance sheet, confirming the company's considerable financial strength.

This is also underscored by our net financial assets in the automotive business, which totalled just over 43 billion euros.

Starting with the Half-Year Report 2024, we are changing the way we report net financial assets in our automotive business.

In addition to the Automotive Segment’s NFA that was previously reported, the new figure also includes the NFA of holding companies within the Other Entities Segment, which receive regular distributions from their subsidiaries.

I trust that this new, comprehensive definition of Net Financial Assets provides you with useful additional information.

SLIDE 9: Financial Services Segment in H1

Let’s move on to the Financial Services Segment.

Here, the positive trend in new business continues – for financing of both new and used vehicles.

A total of about 850,000 new leasing and credit financing contracts were concluded in the first half-year. This represents a significant increase of 16.5 percent year-over-year.

The volume of new business, encompassing all new credit financing and leasing contracts, climbed 18.2 percent to around 32 billion euros.

This positive development in new business is also reflected in the portfolio. The total value of all contracts managed surpassed 143 billion euros for the first time.

Segment earnings amounted to just under 1.5 billion euros. This year-on-year decrease of 13.1 percent resulted mainly from lower income from the resale of end-of-lease vehicles, which reflects the continued normalisation of the used car market.

During the reporting period, the credit loss ratio for the entire credit portfolio was 0.25 percent (2023: 0.15 percent).

The segment’s overall business performance was better than anticipated. For this reason, we are raising our full-year guidance for Return on Equity (RoE) from a range between 14 and 17 percent to a range between 15 and 18 percent.

SLIDE 10: Motorcycles Segment in Q2

In the Motorcycles Segment, second-quarter deliveries increased by 2.6 percent compared to the prior-year quarter.

EBIT in the second quarter totalled 110 million euros, with an EBIT margin of 11.1 percent.

SLIDE 11: Outlook 2024

Ladies and Gentlemen,

the BMW Group is on course to meet its targets for the year.

The market development in China in the first half of this year has not met our expectations.

We expect that the various measures taken by the government, including the cut in lending rates in July, will lead to a stabilisation of the market starting in the third quarter.

Our overall business environment will remain challenging throughout the rest of the year.

Our guidance assumes that geopolitical and macroeconomic conditions will not deteriorate.

Group earnings before tax will decrease slightly.

We expect to see a slight increase in demand, with sales in the Automotive Segment slightly higher than the previous year. The percentage of all-electric vehicles will increase significantly.

We are targeting an EBIT margin between 8 and 10 percent and a Return on Capital Employed (RoCE) between 15 and 20 percent.

Deliveries are projected to increase slightly in the Motorcycles Segment. The EBIT margin should come in between 8 and 10 percent, with a Return on Capital Employed (RoCE) between 21 and 26 percent.

In the Financial Services Segment we are now forecasting a Return on Equity (RoE) in the range of 15 to 18 percent for the full year.

SLIDE 12: BMW Group with Consistent Strategy and Focused Execution

Ladies and Gentlemen,

The BMW Group is pursuing a clear strategic approach, focused on long-term success.

Our company maintains a globally balanced footprint. We are leveraging this balance and the high flexibility of all our systems to mitigate market volatility and consistently provide our customers with the best products to suit their needs.

We continue to systematically implement our electrification and digitalisation strategy and make targeted investments in our future model line-up.

In 2024, we are setting a decisive course for our future. Research and development spending and capital expenditure will therefore respectively peak, as planned.

We expect our R&D ratio for the full year to exceed five percent, with a capex ratio of more than six percent.

Despite these high upfront investments, we were still able to deliver a solid financial performance in the second quarter, thanks to our attractive product range.

Across global markets, we are carefully steering our performance in line with individual market conditions.

At the same time, we are maintaining a high level of cost discipline.

Whether manufacturing costs, fixed costs, or capital expenditure: at the BMW Group, we have always constantly optimized our cost structures and will continue to do so.

I am confident that our clear long-term strategy, combined with focused execution in our operational business, will keep us competitive and successful – both now and in the future.

Thank you.

- Check against delivery –

Ladies and Gentlemen,

In the past few days, several automotive manufacturers have released their half-year results: A glance at the numbers shows just how differentiated our industry is.

The basic principles are the same for everyone – which reveals even more clearly how different strategic approaches are performing in the current environment. All those who are broadly diversified are reaping the benefits.

Our own ambitions are underlined by the first six months: In the face of headwinds, we can capitalise on our competitive strength in the market.

In the first half of 2024, BMW Group deliveries were at the same high level as the previous year. Our core BMW brand is growing.

In terms of financial performance, we also deliver consistently high profitability.

For the past ten consecutive quarters, our EBIT margin in the Automotive Segment has been within our strategic target range of eight to ten percent, or higher.

At 10.9 percent, the Group EBT margin once again outperformed our strategic target of 10 percent.

Above all, our all-electric vehicles and models in the higher-priced upper segments of our BMW and BMW M brands remain in very high demand.

In our view, e-mobility will continue to be the core drive technology of the future and our primary growth driver.

We anticipated this development early – which is why we have one of the most comprehensive and attractive EV portfolios in the marketplace today. We already offer at least one BEV model in nearly every segment that is relevant for us.

This wide-ranging offering lays the foundation for our continued dynamic growth in BEVs – even in the current more challenging market environment.

In absolute terms, BMW comes in a strong third in electric vehicle sales among all OEMs worldwide.

Our impressive performance in ramping up electromobility becomes even clearer when we look at the rate of growth in the first half of the year.

With growth of 34 percent, the BMW brand is number one worldwide among all relevant major players.

Take the example of the BMW X1, a customer favourite, and our luxury sedan, the new BMW 7 Series: In the case of both vehicles, one in five customers is already opting for the all-electric iX1* or i7* variant.

In the first half of 2024, our fully-electric sport coupé, the
BMW i4*, remained our line-up's best-selling electric vehicle – once again posting double-digit growth.

I have emphasised many times that following the hype without careful consideration is not a strategy. Emotionality and nervousness have never been good counsellors.

Our strategy is grounded in facts, experience and a continuous, realistic assessment of the current situation. It has proven robust – especially in turbulent times.

The approach to drive technologies rooted in this strategy makes us resilient and secures our market success.

With our globally aligned, highly flexible production network, we are capable of responding to fluctuations in demand better than others.

Supply chain management is increasingly critical to success.

We have established processes to identify risks in our supplier network at an early stage. This enables us to take action before a risk becomes an issue. We have not had any major impact recently.

This also ensures that we can respond to regional differences in customer preferences as needed – whether for cars with internal combustion engines, plug-in hybrids or BEVs.

As a result, we have consistently outperformed EU CO2 requirements for years.

One thing is clear: The most impactful contributions to climate protection are those we can make today: In other words, every tonne of CO2 we can save today – not sometime in the future – counts.

This also entails demanding and promoting the use of low-CO2 fuels like e-fuels, E 25 or HVO100 – as quickly and as widely as possible.

These fuels could immediately improve the carbon footprint of the existing fleet of more than 250 million vehicles in the European Union.

At the moment, however, we see a significant risk of eFuels being politically instrumentalised in the debate about the ban on combustion engines from 2035.

There are currently many indications that the EU Commission is striving for a bogus solution in which the ban on combustion engines is relaxed simply by ostensibly opening up to eFuels.

However, if it then does nothing to accelerate the ramp-up of low-CO2 fuels and make their use practicable, this would be a deliberate ban on combustion engines through the back door.

We continue to believe that a categorical ban on combustion technology is wrong. And we are also publicly committed to our highly efficient engines and plug-in hybrid technology, such as that used in our new BMW X3.

As a hybrid version, the high-volume X3 enables locally emission-free premium mobility well beyond city traffic.

The new X3 will be released onto the market in the fourth quarter – initially in the US and Europe.

You all know how popular our X models are. Last year, the current X3 was the best-selling model across our entire BMW product range.

When the all-electric NEUE KLASSE ramps up at our specially-built plant in Debrecen in late 2025, it will initially launch with an X model. This will be followed soon afterwards by a sporty sedan from Plant Munich.

With the NEUE KLASSE, our aim is to once again expand our technology leadership. Preparations are in full swing and progressing according to plan – despite the challenging conditions.

Our technology clusters allow us to quickly deploy the technologies of the NEUE KLASSE across our entire vehicle portfolio – elevating it to a whole new level, regardless of the drive technology.

Mastering this degree of integration and executing it efficiently are highly complex tasks. This is precisely where future competitiveness will be decided in our industry.

It is why we continue to focus on optimising interaction between all technologies – creating a holistic mobility experience for all our customers.

Our automated driving functions provide a good example of our technological edge.

A few weeks ago, we released a world first onto the market: We are the first automotive manufacturer to offer the combination of Level 2 and Level 3 driver assistance systems exclusively in Germany in the new 7 Series.

We have already obtained Level 2+ approval for numerous BMW models in the US, Canada and – making this another field where our technology clearly sets us apart. We will solidify this leading position with the NEUE KLASSE.

Ladies and Gentlemen,

The automotive industry is a major driver of the global economy – which increasingly makes it the focus of geopolitical interests.

The issues range from growing regulation to protectionist measures in the major economic areas of the US, China and the European Union.

We are seeing global competition for raw materials and access to strategically critical technologies, such as high-voltage batteries and semiconductors, as well as advancements in AI applications.

Each region and individual state is seeking to protect its own economic interests. This also includes localising the entire automotive value chain, including supply chains.

At the BMW Group, we remain committed to open markets and opposed to artificial barriers such as punitive tariffs.

The introduction of additional import duties, like those recently imposed by the EU, leads us down a dead-end street – and will ultimately not make European manufacturers any more competitive.

On the contrary, EU tariffs on BEVs from China instead penalise European manufacturers like the BMW Group – since they also produce vehicles in China for the European market.

Additional customs duties also limit the choice of electric cars for European customers and could therefore slow down decarbonisation in the transport sector.

Measures always lead to countermeasures. Let us not forget that implementation of the Green Deal in Europe also relies heavily on raw materials and technology from China, in particular.

Ladies and Gentlemen,

The BMW Group cannot entirely escape current market and geopolitical developments. However, with our long-term, yet flexible strategy, we are in the driver's seat.

We adapt quickly and effectively as conditions evolve.

We see no reason for hasty action or fundamental course adjustments.

We will continue on our path in the future. That means, sometimes we do things differently – but always out of conviction, not merely on principle.

This is what makes us strong and successful in the long term.

The fact of the matter is: The automotive industry will remain a growth sector in the future – and we intend to make sure the BMW Group in particular benefits from it.

Thank you.

- Check against delivery –

Ladies and Gentlemen,

The figures for the first quarter of 2024 underline once again that: Our strategy for long-term, profitable growth is robust and effective – especially in the dynamic environment in which we operate.

These conditions are the same for all players within our industry. However, there are currently three distinct groups of commercial actors, each with their own approach.

1. The newcomers: the ones who generate a lot of hype with single products. They often have only individual technological highlights, such as maximum performance, the largest range or the largest screen. 
It remains to be seen whether the overall package will meet high customer expectations, especially in the premium segment, over the entire lifecycle.
Additionally, they face the challenge of managing complexity as they scale up and expand. Market entry is also bought with aggressive price positioning.

2. Then, there are the established manufacturers, who are trying to copy these new players’ approach, but run the risk of losing their own identity.

3. And, finally, there are a number of manufacturers who are struggling to keep pace with change – and therefore remain entrenched in their traditional business models.

In this competitive space, the BMW Group continues to chart its own, balanced course.

And we remain true to ourselves.

We analyse and anticipate both current and future trends without prejudging the outcome. From this, we develop our strategic approaches. The ability to respond to market developments, customer needs and new technological approaches is essential.

This has earned us a leading position in e-mobility and, at the same time, allowed us to maintain consistently high profitability, even in a volatile environment.

For nine quarters in a row, our EBIT margin in the Automotive Segment has been within our target range of 8 - 10 percent or higher, like it was in the first quarter of 2023. Walter Mertl already explained the reasons for this.

Our development efforts are focused on technologies that deliver real added value for our customers. Decades of market experience have taught us what our customers want throughout the entire customer journey. We use this knowledge and our technological expertise to create the perfect overall concept.

This is not easy to replicate.

The BMW Group is also one of the few “true” global players in the automotive industry. From production, to sales, to suppliers – we are in a strong position in all major markets.

We have well established footprints in each region along with a local-for-local mindset.

This global approach is our greatest strength. It creates resilience, opens up opportunities and keeps us flexible.

We are building on this to leverage our business success – today and in the future.

A look at global regions shows that markets and customer demand continue to develop in a highly diversified way. Maintaining a presence in all major sales markets enables us to balance out these different trends.

Our unique BMW approach allows us to respond flexibly to changing demand, especially when it comes to drive technologies.

But let me be quite clear: We continue to ramp up e-mobility at a fast pace that our competitors can barely keep up with.

Just a few weeks ago, we hit an important milestone: Since the market launch of the BMW i3, we have delivered more than one million all-electric vehicles to customers. This confirms the appeal of our fully-electric product range.

This is also backed up by our current figures in the Chinese BEV market. With growth of more than 18% in China in the first quarter, BMW outperformed both the total market for electric vehicles and the electric premium segment.

This means: We are gaining segment share in the world’s biggest e-mobility market.

However, our success in China is not just evident from the numbers. The BMW Group is held in high regard there as a "local player".

I experienced this when I was part of the business delegation led by German Chancellor Olaf Scholz in April. And we were also very pleased that Premier Li Qiang took the time to visit the BMW Group stand at Auto China in Beijing.

We are confident about long-term economic prospects in China. We are therefore comprehensively preparing our joint venture BBA's production site in Shenyang for future vehicle models.

In late April, we signed a Memorandum of Understanding to this effect in Shenyang, for investments totalling around 2.5 billion euros.

Our highly diversified electric offering, across BMW, MINI and Rolls-Royce, is not just in demand in China, but worldwide.

With sales up by about 28 percent, fully-electric vehicles once again made an important contribution to the BMW Group's sales growth and earnings in the first quarter of 2024.

At Auto China, a few weeks ago, we presented two vehicles that will reinforce this trend:

the all-new fully-electric MINI Aceman* and an update to the electric BMW i4*.

The BMW i4 comes straight from the heart of the BMW brand and is a success story in its own right. People love its combination of e-drive, design and signature driving dynamics – all the things they associate with the BMW brand.

More than 80,000 customers bought a BMW i4 last year – making it one of the best-selling BEVs in the entire premium segment.

MINI is also continuing on a path that is just as brand-authentic and modern.

The “New MINI Family” is a real game changer that reimagines the brand's unique British heritage in an entirely new way for the future.

The all-electric MINI Aceman brings fresh impulses. With this latest addition, the New MINI Family now features three models that serve different segments and appeal to new customer groups.

This will enable us to continue and expand the MINI success story in our global markets.

Our growth and economic success today are laying a solid foundation for the future.

We are investing more than ever in developing new products, efficient technologies and automated driving functions, as well as in digitalisation.

As the biggest single investment in the history of the company, the NEUE KLASSE shows how we are redefining the BMW brand for the future.

From design, to drive trains, to totally new forms of digital interaction between human and machine – the NEUE KLASSE represents a massive leap into the future across virtually all fields of technology.

All future BMW models will benefit from this – regardless of their drive technology. In this way, we are able to ensure that our customers always have the latest technology on board.

The NEUE KLASSE will start out with a Sports Activity Vehicle and a sedan in the current 3 Series segment.

We provided a glimpse of what this future will look like for BMW at our Annual Conference.

The BMW Vision Neue Klasse and the BMW Vision Neue Klasse X showcase both the consistency and the breadth of the NEUE KLASSE.
There is plenty of room between the two vehicles for innovation and new models – and we intend to use it.

Ladies and Gentlemen,

The BMW Group is growing – despite the many different challenges we face. Even in times of change, we deliver positive financial results at a consistently high level.

The course we are charting today will enable us to build on this success in the future – across all our brands and products, with next-generation technologies and within the company.

We are in a strong position globally and maintaining our leadership of the global premium segment.

We recognise that there are a lot of new players looking to gain a foothold in this highly attractive segment – and, of course, we are taking this very seriously.

But this is not a one-way street. You can be sure of that: Every player in this industry, whether an ambitious newcomer or an established manufacturer, is also keeping a very close eye on the BMW Group.

Ladies and Gentlemen,

In just a few weeks, the IAA MOBILITY will take place – right on the BMW Group’s doorstep, here in Munich. Our company and brands will be showcased as part of the “Open Space” on Max-Joseph-Platz in the heart of the city and on the trade fair grounds.

The IAA MOBILITY will turn the whole city into a mobility hub – creating a platform for constructive dialogue between all mobility providers and residents, stakeholders and guests from around the world. Few business segments offer such a wide range of opportunities for innovations that can benefit us in our everyday lives and, at the same time, speed up progress in society.

We firmly believe this – and have the facts to back it up: Our BMW Vision Vehicles are the embodiment of this approach. They focus specifically on individual future topics and demonstrate how we at BMW are tackling and implementing them.

Take, for example, the BMW i Vision Circular from 2021 – which was systematically designed for closed-loop material cycles. A circular economy is our vision for the long term – because this will make our company less dependent on valuable raw materials and even more resilient.

Another example is the BMW i Vision Dee from CES at the beginning of 2023. It demonstrates the potential of what happens when hardware and software merge. The car becomes a digital companion that learns and understands.

We believe there are three key action areas that will dominate the mobility of tomorrow: electric, digital, circular.

Each of these on its own is already a challenging and inherently complex task. Combining all three aspects into a coherent overall concept is the ultimate challenge. This capability will determine future competitiveness in our industry. With our next Vision Vehicle we will open up new dimensions in several areas – design, operating concepts, efficiency and sustainability.

On 2 September the BMW Vision Neue Klasse will celebrate its world premiere. The date was chosen to honour a historical milestone: It will be almost 60 years to the day that BMW staked the claim of the Neue Klasse. Back then, the decision to launch a ground-breaking new product range enabled BMW's success and kept it going over the following decades.

Now, once again, we are turning vision into reality: I can promise you that the Vision Neue Klasse is close to standard production and will be on the roads soon.

Production of the NEUE KLASSE will get underway in 2025 at our new plant in Debrecen, Hungary, followed by Plant Munich in 2026. To mark the 20th anniversary of BMW Brilliance, we also announced local production of the NEUE KLASSE at our plant in Shenyang, China from 2026.

The NEUE KLASSE is a mega-project that spans the entire company. It is about nothing less than the future of the BMW brand, the BMW Group and our portfolio. We are in intensive preparation for this and will continue to make significant investments in relevant future technologies over the next few years.

Internally, we are working together within new organisational structures such as our tech clusters – like the one for the electric drivetrain, for example. In this way, we are able to address – in parallel and in an integrated manner – the mission-critical issues of cost efficiency and sustainability.

It is clear to us that with innovation drivers like the NEUE KLASSE, we can grow as a company, both quantitatively and qualitatively. That is what counts.

At the BMW Group, everything has to get a little bit better every day. That is what we aspire to. In late July, the new BMW 5 Series began rolling off the assembly line at Plant Dingolfing. It will be released onto the markets towards the end of the year.

As with the BMW 7 Series, 4 Series, X3 and X1 models, customers once again get to choose between different drivetrain variants.

With the all-electric i5*, the BMW Group will then – as promised – offer at least one BEV model in every core segment. The i5 will help ensure that 40 percent of all the vehicles we build at our biggest European plant will be fully electric from next year onwards. In addition to the 5 Series, the new BMW X2 is also in the starting blocks, including the BEV variant iX2. The 5 Series is receiving very positive feedback in the media and social media.

The eighth generation of our successful business sedan has been praised in particular for its tech highlights – including the Level 2 hands-off system. The 5 Series is the first car in Germany to be approved for partially automated driving at up to 130 km/h on motorways. This exemption means drivers can use the new BMW Highway Assist – which allows them to take their hands off the wheel while driving. Another feature has been added to our Highway Assistant – the Active Lane Change Assistant with so-called “eye confirmation”. This world first allows the driver to change lanes as suggested by the system – simply by looking in the exterior mirror.

For the BMW Group, safety will always be a core element that our technological innovations must all contribute to. We test our vehicles on the proving ground, not on our customers – and only release perfectly tested, highly advanced vehicles onto the market.

Last week, we opened a new testing site in the Czech Republic. It is by far our largest test track and where we are testing highly automated driving. Our Future Mobility Development Centre in Sokolov provides the ideal infrastructure and reproduces the road conditions of countries from all over the world. The site covers 600 hectares and consists of six tracks.

We are also focusing on production trials for fully automated parking. Together with our partner Valeo, we are developing solutions for automated valet parking. Compelling products that create value for customers as well as surprising innovations are the foundation of our business success. There is a positive correlation here: Strong products generate strong demand – across all drive technologies and all market regions.

As you know, we at the BMW Group are taking an open technology approach to the transformation of our industry. We are concerned with both climate effectiveness and sustainable business success. For us, there are no old or new technologies, only future-proof ones. For effective climate protection, all types of drive must contribute to the reduction of CO2 emissions.

This technology-open approach is a strength of the BMW Group. After all, the world regions and individual markets will continue to develop differently and at different speeds in the coming years and decades.

This applies to technologies and regulation, to the expansion of infrastructure for e-mobility and to the wishes of customers. Because different political framework conditions lead to different customer behaviour.

In the USA, for example, the internal combustion engine remains relevant parallel to the ramp-up of e-mobility, which we see above all in states like California. In China, the government is promoting e-mobility, but there is no question of banning the combustion engine. In Japan, hybrid drive is in demand and there is a high level of interest in hydrogen.

Thanks to our flexibility, we can react quickly to changing requirements in the markets at any time and in any situation. We can provide customers with adequate offers without sacrificing market volume.

We continue to pursue this approach consistently and with conviction. Because the holistic view of customer needs, environmental requirements and political guidelines is a unique selling point of BMW. I see this as further proof that our strategy is working and bearing fruit.

This was also true in the first half of 2023. Despite a somewhat subdued global economy, the BMW Group delivered more than 1.2 million vehicles to customers – an increase of 4.7 percent compared to the previous year. BMW remains number one in the global premium segment, with over 20 percent of the market.

All regions – from the Americas and Europe to China and Asia - are currently supporting our growth. The ramp-up of our all-electric models remains a clear priority. As you know, BEVs should account for 15 percent of our global sales for the full year.

Our BMW iX* came first in the BEV ranking in the J.D. Power APEAL study – which rates customer satisfaction among new vehicle owners in the US. One thing is clear: E-mobility needs suitable framework conditions. As a founding partner of IONITY, we have been promoting the development of a comprehensive charging infrastructure in Europe since 2017.

Now, we are transferring our commitment to the USA. Together with six other car manufacturers, the BMW Group is establishing a new joint venture for a fast-charging network in North America. Our goal is to build at least 30,000 charging points in cities and on highways.

The first stations will be opened as early as summer 2024. The network will be open to users of all brands and will support both CCS connections and NACS technology.

What is clear: our products with all drive technologies are in demand and our plants around the world are operating at high capacity. Our order book remains high. The world of the future is not a zero-sum game. Rather, new technologies create new opportunities.

But only companies that pursue a broad, innovation-based strategy across all technologies will be successful and continue to gain additional market share.

All our brands are making their contribution: Rolls-Royce is launching the all-electric Spectre later this year. BMW Motorrad, in its anniversary year, is now pushing ahead with electrification following the CE 04, with the eParkourer CE 02.

MINI is reinventing itself from the ground up with the new MINI family. The new Cooper Electric, with its spectacular interior and infotainment system, will be unveiled before the end of the year. We will also be building all-electric MINI vehicles in China going forward.

In March, we introduced a new customer-centric direct sales structure for the MINI brand in China. In Europe, we will be launching our new sales model for direct customer access with MINI in 2024. The BMW brand will follow in Europe in 2026.

Ladies and Gentlemen,

All of this shows how we are setting the BMW Group on a profitable course for the future – through quantitative and qualitative growth with both our products and technologies.

We are aiming for appropriate market penetration and intend to systematically exploit opportunities.

Thank you!

Ladies and Gentlemen, Good Morning!

Slide 2: BMW Group Half-Year Report to 30 June 2023.

I am very pleased to be able to present the BMW Group’s quarterly results to you for the first time today.

Slide 3: Highlights of BMW Group Performance in Q2 and H1

In the second quarter of 2023, the BMW Group delivered a solid performance under difficult conditions. The Group EBT margin came in at 11.3% for the quarter and 12.6% for the first half-year. In the Automotive Segment, we achieved an EBIT margin of 9.2% in the second quarter and 10.6% for the half-year to the end of June.

We expect the positive business trend to continue in the second half of the year, particularly due to the ongoing strength of the order bank and an expected improvement in the availability of vehicles.

As a result, we communicated an increase in our deliveries forecast for the 2023 financial year as part of an ad hoc announcement on Tuesday. In addition, we raised the guidance for the EBIT margin and return on capital employed (RoCE) in the Automotive segment, as well as the outlook for return on equity (RoE) in the Financial Services segment.

I’d now like to take you through our financial figures for the second quarter in more detail. To do so, I’ve brought along a few slides with important key figures to explain the main developments and relevant influencing factors.

Let’s start with the Group.

Slide 4: BMW Group in Q2

Group earnings before tax for the quarter totalled just under 4.2 billion euros. The EBT margin came in at 11.3% in the second quarter and 12.6% for the first six months. This is clearly above our strategic target of 10%.

Group pre-tax earnings for the first half-year decreased by just under 6.8 billion euros. However, we must not forget that we had a one-off profit of 7.7 billion euros last year due to the fair market valuation of BBA equity interests. If we factor out this effect and look at the underlying operating result instead, Group earnings were significantly higher year-on-year.

Now I’d like to look at the individual segments, starting with the Automotive segment.

Slide 5: Automotive Retail units, BEV units, Auto revenue and Auto EBIT

Here you can see sales, revenue and earnings development in the Automotive Segment over the past six quarters.

In Q2 2023, vehicle sales were up 11.3% on the prior-year quarter, at just over 626,000 units. Compared to the first quarter, sales rose 6.4%. All regions contributed, and we were able to achieve a good balance. Deliveries through the end of June were 4.7% higher year-on-year.

The order bank for our vehicles remains high. As a result of our strong market position, we expect a positive trend in deliveries in the second half of the year as well. We therefore now forecast a solid increase in deliveries in 2023.

Our BEVs contributed to this development, and we see continued strong momentum. In Q2, we sold more than 88,000 all-electric vehicles. On top of the figure of nearly 64,000 units sold in the first quarter, this adds up to around 153,000 BEVs delivered in the first six months. That is more than double our BEV sales for the same period of last year and represents 12.6% of total sales.

The BEV share of overall sales already hit 14% in the second quarter and will reach 15% for the full year.

The growth in sales and strong product mix increased revenues in the Automotive Segment – which, after six months, were up 10.9% on the previous year. Roughly half of this increase resulted from the full consolidation of BBA revenues in 2023. In 2022, the revenues of our BBA joint venture were only included with the full consolidation from 11 February onwards.

In the box on the bottom right, you can see how the operating result (EBIT) has developed in the Automotive Segment.

In the second quarter, EBIT totalled around 2.9 billion euros, with an EBIT margin of 9.2%. Without depreciation of BBA assets from the purchase price allocation, the margin was 10.2%.

For the year to the end of June, the EBIT margin was 10.6%, and 11.7% without the depreciation of BBA assets from the purchase price allocation.

I’d like to use the next slide to explain the operating result in the Automotive Segment in more detail.

Slide 6: Automotive Segment EBIT in Q2

The bridge starts on the left with Q2 of last year, with an EBIT of 2.5 billion euros and an EBIT margin of 8.2%.

From Q2 2022 to Q2 2023, we see a headwind of around 300 million euros from the net balance of currency and raw material positions. This is due mainly to currency translation effects from the development of the US dollar, the Chinese renminbi and the Japanese Yen. Raw material prices remain at the same high level as a year ago.

Together, volumes, the model mix and strong pricing generated a tailwind of half a billion euros. The mix is stable overall, with solid volumes in the upper segment. We are seeing positive impulses from the X5 and X1, among others. While we are seeing the first signs of normalization on the market, we remain focused on price discipline.

Expenses for research and development rose year-on-year to around 300 million euros – mainly in connection with investments in electrification, digitalisation and automated driving.

The BMW Group’s R&D expenditure is determined by adjusting R&D expenses for capitalisation and scheduled depreciation. This forms the basis for the calculation of the R&D ratio according to the German Commercial Code. The ratio for the year to the end of June came in at 4.6%. For the full year, we expect the ratio to be within our long-term target range of 4 to 5%.

Sales and administrative costs increased by around 100 million euros, due to higher expenses for personnel and digitalisation projects, amongst other things. As for the item ‘other cost changes’, we see burdens from higher material costs on the one hand. Additionally, we reassessed warranty provisions in the second quarter and updated several parameters. This adjustment resulted in higher warranty costs in Q2. On the other hand, the development of licensing revenues had a positive effect in Q2.

The full consolidation of BBA also resulted in a positive reconciliation item. The negative impact of BBA consolidation effects was 800 million euros higher in Q2 2022 than in Q2 2023. This included both depreciation on inventory from the purchase price allocation and the elimination of interim profits in connection with intra-Group deliveries.

Slide 7: Automotive Segment Free Cash Flow in Q2

Free cash flow in the Automotive Segment totalled 1.2 billion euros in the second quarter. The effect from working capital, totalling 2.4 billion euros, largely resulted from the increase in inventory. Global demand for our vehicles and our order bank remain high. We ensure the availability of the right products and thus fulfil the wishes of our customers, while reducing waiting times. In doing so, we will maintain our profitable growth in the second half of the year.

The delta from capital expenditure and depreciation improved free cash flow in the second quarter by half a billion euros.

We continue to invest in the mobility of the future with our focus on electromobility, digitalisation and automated driving. The capex ratio came in at 5.1% for Q2 and 4.4% for the first half-year. We expect the ratio for the full year to be around 6%. Allocation to provisions increased free cash flow by around 500 million euros in Q2. Through the first six months of the year, free cash flow in the Automotive segment totalled 3.1 billion euros. For the full year 2023, we expect a free cash flow of at least 6 billion euros.

In addition to higher investments for the transformation to e-mobility, we are planning for increased inventories in 2023 compared to the end of 2022. We plan across the years to ensure the necessary vehicle supply to the markets in order to fulfil high customer demand.

Slide 8: Financial Services Segment in H1

Let’s turn now to the Financial Services Segment.

Earnings in the segment result not only from new business, but largely from the entire portfolio of contracts. For this reason, I will focus primarily on a six-month perspective for Financial Services.

Higher interest rates resulted in noticeably increased financing costs for consumers. The financial services sector also remains as competitive as ever. Therefore, in the year to the end of June, the number of new financing and leasing contracts concluded with retail customers decreased by 10.6%.

However, there was a noticeable positive trend in the second quarter, since new contracts were at the same level as in the previous year's quarter. Higher prices and an improved product mix in the automotive business led to an increase in the average financing volume. As a result, the volume of new business in Q2 was 3.3% higher than in the same quarter of the previous year.

Segment earnings before tax at the end of June amounted to 1.7 billion euros – a decrease of 14% compared to the first half of 2022. The main reasons for this are higher refinancing costs and a smaller total portfolio compared with the previous year. On a positive note, income from the resale of end-of-lease vehicles is still high. In addition, the risk situation in the segment remains mostly stable. A credit loss ratio of 0.15% confirms the high quality of our portfolio.

We anticipate that the positive effects from the remarketing of lease returns will remain stable through to the end of this financial year. We therefore now expect a return on equity (RoE) in the range of 16 to 19% for the full year.

Slide 9: Motorcycles Segment in Q2

Let’s move on to the Motorcycles Segment.

For the past hundred years, the BMW Motorrad brand has offered an impressive range of attractive products. Its strong portfolio contributed to a successful second quarter in 2023 with record figures in deliveries and EBIT margin. Sales reached almost 65,000 units and were therefore 8.0% higher than the prior-year quarter.

The segment also significantly increased its operating result, compared to the second quarter of 2022: growing from 127 million euros to 158 million euros.

The EBIT margin was 16.0% for the quarter and 16.2% for the half-year.

Slide 10: Outlook 2023

This brings me to the overview of our guidance for financial year 2023.

- In the Automotive segment, we now expect deliveries to show a solid increase over the previous year.

- As a result of the positive volume development, we now expect the EBIT margin in the Automotive segment to be within the range of 9 to 10.5%.

- Accordingly, we raised the target range for segment RoCE to between 18 to 22%.

- And we now forecast Return on Equity in the Financial Services segment to be between 16 and 19% over the year.

All other guidance figures remain unchanged.

Our forecast does not take into account a deep recession in key sales markets.

Furthermore, in our outlook, we do not expect further escalation of the conflict between Russia and Ukraine or an expansion of the war.

Slide 11: BMW Group has the strategic focus and operational excellence to deliver continued success for all stakeholders.

Ladies and Gentlemen,

Our industry is in the midst of a profound change. We are steering the BMW Group profitably through this transformation with sound financials. In doing so, we always focus on the long-term success of our company.

Our strategic focus is on electromobility, digitalisation and sustainability. To this end, we are making necessary investments in next-generation technologies. We are maintaining our course in our current core business. Operationally, we are strong, and that secures our profitability. We have the necessary latitude to invest in the future of the company and, at the same time, create value for our shareholders.

The BMW Group has a young, highly attractive product line-up on the market – with an array of new models to come over the next few years.

With the NEUE KLASSE, we will shape the future of mobility and secure our competitiveness, and our financial performance.

The BMW Group maintains the right balance between the three core elements of its business success:

-       First: a profitable core business

-       Second: a continuing growth trajectory; and

-       Third: a clear path to lower CO2 emissions

This is how we can continue to create value for the BMW Group.

We deliver on our promises. That is our pledge – and something I am personally committed to.

- Check against delivery! - 

Hello everyone! A very warm welcome to the world premiere of the BMW iX3.

At BMW, we have always been at the forefront of sustainable mobility. We continue to push forward at a fast pace – always focusing on the needs of our customers.

Already back in 2007, we began a new era of sheer electric driving pleasure with “project i”. And around 180,000 customers of the fully electric BMW i3 are proof of this. Today, with our broad range of plug-in hybrids, customers can enjoy electrified driving in all of our model segments.

Now we are rapidly expanding our line-up of pure electric vehicles: Just think of the very cool MINI Electric – and now our first pure electric Sports Activity Vehicle, the BMW iX3. Next year you can look forward to the BMW i4 and the iNEXT. And I promise you, there will be many more to come.

Our timing is perfect, because customer demand is rising.

And with convenient charging solutions at home or at work, we will boost demand even more.

At BMW, we think well beyond the vehicle itself. For us, it's all about making a true difference. And that's why we have decided to implement a completely new and even more comprehensive strategy for sustainability.

We will focus on three areas:

1. To further strengthen our position as a role model when it comes to sustainable, resource-saving production.
2. Creating a sustainable, CO₂ neutral supply chain.
3. The utilization phase of our vehicles concerning CO₂ emissions. We will further reduce our CO₂ emissions, even beyond the EU target.

All of this shows: We consistently take a sustainable approach across the entire value chain. This is what sets us apart.

Here are a few examples which underline this:

In production, we reduced our CO₂ emissions per vehicle by 25 percent last year, compared to 2018. We are sourcing all of our external power from renewable energy.

And we are working hand in hand with our suppliers to reduce our CO₂ footprint in the supply chain. For example, the production of high-voltage batteries is very energy-intensive. We have signed contracts with all our cell suppliers: They will only use renewable energy to produce our fifth-generation battery cells. This will save around ten million tons of CO₂ within the next ten years. This is roughly the amount of CO₂ that a city like Munich - with almost one and a half million people – emits each year.

We are strongly committed to climate protection. And we put words into action: We have greatly reduced the CO₂ footprint of our vehicle fleet. In 2020 alone, we will cut it by more than twenty percent. We are achieving this by offering a wider range of electric models, and also by increasing the efficiency of our conventional engines.

In Europe we are making excellent progress: Next year, 25 percent of our fleet will be electrified. In 2025, we will reach 33 percent. And in 2030, 50 percent of our sales will be electrified.

Ultimately, it's all about the Power of Choice. Our customers will always be able to choose the right drivetrain for their particular needs.

The BMW X3 clearly embodies our strategy of intelligent and flexible vehicle platforms. We can fit this model with any drivetrain we need – and produce them on the same production line. Whatever our customers demand, we deliver. And I promise you: All variants will have the same high level of functionality, comfort and quality.

Customers can choose from a range of drivetrains, such as highly efficient diesel engines with 48 Volt Mild Hybrid support. This is an important technology for customers who drive long distances. And of course they fulfill the highest regulatory standards of real-driving emissions.

We also offer the X3 with petrol engines in four different performance levels, right up to the sporty X3 M. With the new particle filters and 48 Volt support, they are the cleanest conventional engines we have ever built.

The X3 is also available as a plug-in hybrid, making it a great choice for commuters who desire a very low CO₂ footprint.

Today we are presenting the BMW iX3, our first fully electric Sports Activity Vehicle. It is also our first model to feature our self-developed and self-produced Gen5 electric drivetrain. It is highly integrated, without any rare earth materials, and extremely efficient. The Cobalt and Lithium we use originates from only trusted suppliers.

Ladies and Gentlemen,

Please enjoy the world premiere of the fully electric BMW iX3!

This car has taken Efficient Dynamics to the next level. When we engineered this vehicle, our focus was on achieving an attractive range. At the same time, we are setting the benchmark in terms of efficiency.

The iX3 offers a range of more than 500 km in the New European Driving Cycle. And 460 km according to WLTP. And of course it drives like a BMW.

This creates a sweet spot for our customers: The balance of its low energy consumption and 150 Kilo-Watt fast-charging is perfect for every distance, also for long journeys. Our advanced battery technology makes all of this possible.

For us, it’s always about simplifying our customers’ lives. That’s why we created BMW Charging. In Europe, that means access to well over 150,000 charging points – and worldwide, at least double that amount. This is the most comprehensive charging network available.

We have also included a new App that recommends charging stops on long routes – showing the estimated charging time required. BMW Charging is one of the many digital innovations that we have developed for our customers.

The BMW iX3 features our latest BMW Operating System 7. This enables secure and convenient over-the-air updates. This means your system is always up to date.

Last but certainly not least, let´s talk about sound. Together with one of the world's most famous music composers – Hans Zimmer – we are developing BMW Iconic Sounds for our electric vehicles. The iX3 already features a first composition from this cooperation: Just press the start / stop button, and you will be surrounded by the full emotional thrill of electro-mobility. What a sound! I really like it. And you can look forward to even more BMW iconic sounds in the future.

Ladies and Gentlemen,

At BMW, we are fully committed to climate protection and sustainable mobility. Our aspiration is to provide sustainable driving pleasure for our customers, no matter where they are around the world.

I promise you there will be many more exciting emission-free vehicles to come. So, stay tuned. Thank you for joining us today!

Mr. Karsten Engel:

Good morning! 2012 was a great year for the BMW Group in China: we sold more BMWs and MINIs here than ever before. Our sales and service network continued to expand as well. Today we have more than 370 authorized BMW dealerships here and I am excited to announce that we will also be growing the presence of BMW Motorrad in China.

BMW's strong performance goes hand in hand with our growing commitment to this market. A decade ago, we established our production presence in China. Since then, we have invested 1.5 billion Euros in our production facilities with our joint venture partner, Brilliance Automotive and our close cooperation with BBA
continues. Just last week, together we announced ZINORO, a new car brand designed for the Chinese market. Underpinning BMW's activities in China is not only our strategy development through the BBA joint venture, but also our exclusive partnership with Brilliance Automotive.

Returning to the BMW brand, we recently opened our new BMW Brand Experience Center Shanghai. It showcases the past, present, and future of BMW. Along with our growing business success, we believe our commitment to corporate social responsibility should increase as well. This is why we support social programs through the BMW Warm Heart Fund platform. This Fund is committed to a variety of activities from cultural promotion to educational support here in China.

To stay on the right track towards achieving ongoing growth in China, the BMW
Group remains focused on creating revolutionary, aesthetic, and sustainable
vehicles. To tell you more about our approach, please welcome the Head of
Development at BMW AG, Dr. Herbert Diess.

Dr. Herbert Diess

Good morning, ladies and gentlemen! You're looking at the future of individual
mobility. These are still concept vehicles, but we are bringing series production
versions to the road later this year.

With China's large number of urban areas and the driving habits of customers here, this country is a great place for electro-mobility. The forthcoming BMW i3 and BMW i8 are revolutionary vehicles, purpose-built around an electric power train using Life / Drive architecture.

Life / Drive is an entirely new vehicle concept, making the i3 and i8 truly unique. The Life module is a new way of creating the car's body. It is made out of carbon fiber — a first for series production in the auto industry.

The Drive module is made using lightweight aluminum and it houses the batteries. The low center of gravity is ideal for performance and handling. With our Life / Drive concept and powerful electric drivetrains, BMW i models deliver a new dimension of Sheer Driving Pleasure - especially for urban areas.

Beyond the revolutionary vehicles themselves, the BMW Group is approaching
sustainable mobility from a holistic perspective. This means striving to make the
BMW i value chain as sustainable as possible, including:

- A Hydro-electric powered facility making carbon fiber for the cars;
- A wind energy powered production line; and
- Assistance with home charging options for our customers using the BMW i
Wallbox.

The BMW Group is rewriting the book on sustainable mobility and BMW i is the first chapter. The BMW Group remains focused on the future. We are always working on new products for more customers. At the same time, we aim to offer our customers more ways to experience Sheer Driving Pleasure today. This next vehicle sets out to do just that. Here for its Chinese premiere: the BMW 3 Series Gran Turismo!

Right away, it is clear: The Gran Turismo combines the 3 Series Sedan's dynamics with the functionality of the 3 Series Touring. From the exterior you can see its Coupe-like roofline and a frameless greenhouse. Its generous dimensions give passengers a luxurious sense of space and plenty of legroom.

As well, the seating positions are elevated, allowing for a better view and easier entry and exit from the vehicle. The new 3 Series Gran Turismo is also very practical with 520 liters of cargo space and a wide-opening trunk lid. It looks fantastic and it is highly functional — so the next question is: How does it perform?

There is no doubt the 3 Series GT is made to be driven. With BMW TwinPower
Turbo Technology, the engines available are powerful, cutting-edge, and efficient.

This includes the BMW 335i GT with 306 horsepower: Performance you can
experience when the BMW 3 Series Gran Turismo comes to market in mid June.

Innovative concepts like the new GT put BMW in the lead. In a moment, my
colleague, Ian Robertson, will tell you more about our global success. But first — to make sure we stay out in front — is an innovative new concept: Our next world premiere.

Dr. Ian Robertson

Good morning ladies and gentlemen. I'm delighted to be back in Shanghai —
especially with the BMW Group's ongoing, strong sales in China.

Last year's performance brought momentum into 2013. First quarter sales in
Mainland China increased 8% year over year with 86,000 vehicles sold from
January up to the end of March.

Our performance in China, of course, plays a role in the BMW Group's balanced
global success. We delivered over 448,000 vehicles to customers worldwide in the year up to the end of March. This is our best ever first quarter in sales. This strong performance further confirms that our balanced global strategy is the right one.  

Underpinning our worldwide success is the BMW Group's engineering and design-based focus and we bring this focus into every vehicle through the rare combination of creativity and foresight.

Time and again, we not only envisage new concepts, but also develop new
segments with truly innovative vehicles. The most recent example is right here
celebrating its world premiere in Shanghai, the BMW Concept X4.

Just like its big brother — the BMW X6 — the Concept X4 represents the first
Sports Activity Coupe in its class. With its low profile and dramatic roofline, you can see it has the DNA of a BMW Coupe — but the wide stance and muscular build leave no doubt it's a BMW X vehicle.

The unique character of the Concept X4 also offers fresh interpretations of BMW's iconic design language. You can see the Corona headlights open up to visually connect the lights and kidney grill, creating a wider front presence. As your eyes glide along the side contours, you'll be drawn to the highly dynamic Hofmeister kink at the rear.

 The new Concept X4 shows yet again that BMW is always looking ahead, offering our customers the most emotional, innovative, and desirable vehicles available. This pioneering spirit is also captured in the entire X Family of vehicles, which continue to set the benchmark.

 Even as it takes BMW's design language a step forward, it's obvious the BMW
Concept X4 is right at home with its siblings. After all, the BMW X Family of vehicles were the first and they remain in the lead when it comes to innovation, sportiness, and design.

Back in 1999, we were celebrating the launch of a brand new concept for premium vehicles: the BMW X5. The BMW Group made the bold decision to create a new premium segment — the Sports Activity Vehicle — and hasn't looked back since.

 A few years later, the BMW X3 was a trailblazer as the first vehicle in its class. The ongoing global success of the X3 and the X5 convinced us the world was ready for a powerful and dynamically aesthetic vehicle like no other.

The result, in 2008, was the world's first Sports Activity Coupe, the BMW X6.

Just a year later, the BMW X model line-up continued growing from strength to
strength with the BMW X1. The proverb, "fortune favors the bold", fits the BMW X Family perfectly. To date, over 2.7 million X models have been sold around the globe. And today, one in four new BMWs sold worldwide is an X model. With the BMW X4 available for delivery in 2014, I'm confident this number will grow.

Ladies and Gentlemen,

BMW and motor sports: These two things have a long-standing tradition and simply belong together. Be it in motorcycle, touring car, sports car, rally or Formula One and Formula Two racing, BMW has amassed successes around the globe.
Promoting talent has always been a priority for us. In 1991, Formula sports saw the beginning of a joint talent promotion campaign by BMW and ADAC. Formula One drivers like Sebastian Vettel, Nico Rosberg, Timo Glock, Adrian Sutil, Ralf Schumacher and Christian Klien learned the basics of Formula racing from this program.
BMW is clearly the most successful brand in the 24-hour race around the Nürburgring’s north circuit.
In 1980, BMW announced the company’s entry into Formula One racing as an engine supplier. The partnership lasted until 1986.
Then BMW joined WilliamsF1 on the starting grid in the 2000 season. Gerhard Berger was the BMW Motorsport director at the time. Mario Theissen was nominated to assist him soon thereafter. We have scored 10 wins with the BMW WilliamsF1 Team.
In the middle of 2005, BMW acquired the Swiss team Sauber and took to the starting grid under its own steam.
Spearheaded by BMW Motorsport Director Mario Theissen, in 2008, the new BMW Sauber F1 Team established itself as one of the top three teams.
These are just a few chapters of BMW’s motor sports history. This goes to show that our decision to end our Formula One campaign was anything but easy.
Formula One racing had always been the perfect platform for BMW to showcase important brand values. We did this for years and transferred Formula One technology to series production more resolutely than any other manufacturer. The most recent findings obtained from Formula One racing to be applied to series production will be our KERS expertise.
However, our planned cost reduction will cause component standardization and homologation to increase, and thus will set certain limits on our engineers’ creativity. This doesn’t necessary correspond to our belief of what’s ideal. In times of economic and societal change, we must remain capable of taking action and being flexible. We have now paid tribute to this fact.
Our ten years of Formula One experience have had a deep impact on our development engineers. We have racing to thank for numerous technological innovations which can be found in our mass-produced vehicles today.
The main reason for this decision was not our current performance in Formula One racing or the general economic situation. It was solely the company’s strategic realignment.
Of course, our decision to discontinue our Formula One campaign will have an effect on our employees. Since we only made this decision yesterday, I trust that you will understand that I cannot give you any more precise information on this matter yet.
We will develop and assess various scenarios and do our best to find solutions for our employees in Hinwil and those involved in the Formula One project in Munich and Landshut. Most importantly, we are aware of the responsibility we shoulder and will inform staff as soon as we can make a clear statement.
We will continue our touring car and Formula BMW racing campaigns in 2010. This will be supplemented by our participation in ALMS and endurance races as well as our increasing activity in close-to-production customer sports.
As before, these activities will be supervised by Mario Theissen.
I would like to take this opportunity to express my personal thanks to our motor sports director Mario Theissen for his commitment and successes as well.
Furthermore, we will naturally continue our international motorcycle racing program, focusing on the super bike world championship series.
I would like to underscore what Mr. Reithofer just said:
Sustainability is becoming increasingly important. As a responsible premium manufacturer, we want to address this issue even more extensively than before.
What this means for our products is that:
They will be developed and built in line with the principle of sustainability across all development stages. Technological innovations will be accelerated even more, in order to constantly make our vehicles more efficient.
You will see a product of sustainable development at the IAA in Frankfurt in a few weeks in the form of a concept car. The BMW EfficientDynamics Vision will demonstrate how efficient a sports car can be. It will also prove that sustainability does not apply to the drive train alone, but to design and materials as well.
Anyone who takes a closer look at this concept car will understand the direction in which we are developing our technology. And it will become evident that we will have to dedicate more human and financial resources to this type of development work.
Ladies and Gentlemen,
BMW has always been active in the field of motor sports, and this will not change. We will maintain our outstanding tradition in touring car and Formula BMW racing over the long term. We will promote framework conditions that establish motor sports as the arrowhead of innovations that trickle down to future mass-produced cars. New drive concepts are just one example. BMW will continue to showcase sheer driving pleasure on the racetrack.

Thank you!

Ladies and Gentlemen,

Thank you for joining us at such short notice here today.

Yesterday, the Board of Management made the following decision:
• We will realign our motor sports activities.
• The BMW Group will end its Formula One activities at the end of the 2009 season.
• We will remain active in the field of motor sports, focusing on close-to-production motor sports and promoting young drivers.
• We will pool our expertise and financial resources in the fields of sustainability and new technology development.

In 2007, we set the foundation for a strategic realignment of the BMW Group by adopting our Strategy Number ONE. Now we are rolling out this strategy in all areas within the BMW Group.
In addition, we initiated an internal change process that goes hand in hand with a new mindset throughout our workforce.

All measures and activities aim for the same goal, namely to ensure our company’s future viability.
This is the focus to which we are dedicating our resources and capacities, while constantly adjusting them to new requirements.
The BMW Group is the world’s leading premium car company in the automotive industry. We believe that this demands accountability
• with respect to our products,
• with respect to who we are as a company,
• with respect to our social commitment,
• and with respect to the premium business model.

We are of the opinion that the premium segment has to remain a positive role model within our society.
By launching our Efficient Dynamics technology program, we began early on to reduce our vehicles’ fuel consumption and emissions significantly. Today, our BMW and MINI fleet in Germany consumes a mere 5.9 liters of fuel on average. This is below the average of Germany's largest-volume brand.
Sportiness and dynamics remain the key attributes of all BMW models, albeit paired with responsibility.
At the IAA, we will showcase a concept car as a“CO2 champion” to demonstrate a whole new dimension of driving pleasure with regards to efficiency with performance.

In line with our Strategy Number ONE, we are continually reviewing all projects and initiatives to check them for future viability and sustainability.
We made this clear with the initial announcement of our Strategy Number ONE. And, naturally, this also includes motor sports.
And I have always been clear about my position on making tough decisions that will help ensure the BMW Group’s success over the long run.
As our company places stronger focus on sustainability initiatives, our participation in Formula One becomes less a key promoter of this engagement.
It goes without saying that this step was very difficult for us—as well as for me personally.
On behalf of the entire Board of Management, I would like to express our immense gratitude to Mario Theissen for his commitment and successes.
Everyone knows that the BMW brand embodies sportiness with sheer driving pleasure. Sportiness and fair competition are firmly encoded in our DNA.
This is why we will remain loyal to motor sports. But we will do this in series that enable us to transfer technology more directly and to realize additional synergies, while strengthening our brand values. This is in our customers’ best interest.
As a company, we are making a paradigm shift based on our Strategy Number ONE. We are setting new priorities in an ever-changing environment.
The focus of the BMW Group will be towards sustainable development over the next years and decades to come.

Our vision remains clear: to be the leading provider of premium products and premium services for individual mobility.
We will pursue this vision with resolve.

Thank you for your attention.

Ladies and Gentlemen –
Here we have here the world premiere of the BMW 7 Series with a new V12 engine. This is the most powerful BMW 7 Series in the world.

The new BMW 7 Series is the fifth generation of this luxury sedan. And since it is BMW’s flagship, it is also a pioneer in terms of innovative technology and design.

This luxury sedan has been on the market for just over six months now – and within that short space of time it has already been voted “Car of the Year” in Europe by readers of the magazine auto motor sport.

The BMW 7 Series you see here – a BMW 760 Li – is the most exclusive and prestigious vehicle in our range.

I actually prefer to be behind the wheel, but, I must admit, it is quite a thrill to be driven in such a superb vehicle as the new 7 Series: Not only is it top of the range, it is also the first time this model is being presented. That is an unbeatable feeling.

Thanks to a powerful 544 HP 6-litre twelve-cylinder engine, the BMW 760 Li glides along effortlessly – with a newly developed 8-gear automatic transmission to ensure smooth power and performance.

As a passenger you can fully appreciate the superior motoring comfort – as well as the exclusive interior. Details such as chrome-plated door sill strips with an illuminated V12 logo - and genuine wood interior trim with inlays ensure every trip is a luxurious experience.

The BMW 7 Series will leave the stage now, however we do have a lot more exciting news for you.

Auto Shanghai is an important show for us – which is why we have two world premieres for you today, as well as two other models which we are presenting for the first time in Asia. But I’ll come to that in a moment.

We know customers here in China truly appreciate premium – and China is now our biggest market in Asia. And it is our fifth largest market worldwide.

Starting this year, we will sell vehicles from its complete model series here in China: from the compact 1 Series through to the long wheelbase version of the top model 7 Series. Not to mention our globally successful X models and the BMW M sports cars.

In fact, we even offer more models in China than in our other markets around the world. We produce the BMW 530 Li, BMW 525 Li and BMW 523 Li models exclusively for this growing market. These business sedans have a 140-millimetre longer wheelbase.

And we’re determined to do everything we can to meet the demands and tastes of our customers here in China.

On a global level, there is no doubt that the automotive industry today faces unique challenges. Environmental concerns and diminishing resources are becoming increasingly important factors in vehicle development.

We already offer our customers efficient vehicles – in all series. The BMW Group has used innovative technology to reduce CO2 emissions of its vehicles more than any of its competitors.

Obviously, innovative technology and innovative vehicle concepts will be the key to the company’s success in the future.

Our latest example of a totally different and innovative vehicle concept is the BMW Concept 5 Series Gran Turismo: Here it is on show for the first time in Asia.
This unique BMW Concept combines the elegance and the spaciousness of a luxury sedan with the versatile interior usually found only in Sports Activity Vehicles. It is scheduled to be available here in China as of early 2010.

I promised you a second world premiere today – and here you have the BMW X5 M: Since this is an extremely sporty vehicle, we asked one of the world’s best drivers to take it out for a test drive.

Ladies and Gentlemen, please join me in welcoming BMW Sauber Team driver Nick Heidfeld.

Nick, tell us what it feels like to drive the BMW X5 M.

Nick Heidfeld
I can definitely say that the BMW X5 M is an absolutely sporty vehicle.
This car is a lot of fun for a serious driver like me to handle. The BMW M engineers have really done an outstanding job.

The M TwinPower turbo engine is extremely impressive. Its 4.4 litre engine develops a maximum performance of 555 horsepower and maximum torque of 680 Newton metres. With that kind of performance it could definitely compete on the racetrack.

And speaking of racetrack: I wasn’t at all surprised to hear that the BMW X5 M matched the performance of the previous BMW M3 on the famous Northern Loop at the Nürburgring in Germany. In other words, this Sports Activity Vehicle boasts the same dynamic driving performance as a sports coupe. Supremely sporty – what else can I say?

Ian Robertson
Thanks a lot, Nick. It was a pleasure having you here today.

It’s great to hear a Formula 1 driver confirm that the BMW X5 M is racetrack-material. By the way, the M engineers also used the feedback they got from Nick Heidfeld to give the engine some additional fine-tuning.

Another just as perfectly executed and extremely sporty vehicle is the BMW X6 M which we are also presenting for the first time in Asia here today.

What makes M vehicles so fascinating?

It is the harmony of the overall concept. That means all components are perfectly aligned with one another.

An M vehicle is more than just the most powerful model in a series – and that is precisely what distinguishes our product offering from our competitors.

10 years ago, BMW’s X5 redefined the SUV segment by emerging as the first SAV, or Sports Activity Vehicle, on the market. Just in the first quarter of this year, BMW sold worldwide more X5 and X6 models than all of our direct competitors combined.

These new models, the BMW X5 M and the BMW X6 M display an agility not previously seen in this segment. You could say they are redefining the segment for high-performance SAVs.

These vehicles are not only setting the benchmark for emissions and fuel economy at that level of performance but are the most economical vehicles in their class.

BMW M also stands for innovation. New technologies ensure ideal development of the engine power in both the X5 M and the X6 M.
Ladies and Gentlemen,

Innovative technology is also what makes our next Asian premiere special – the BMW Concept 7 Series Active Hybrid.
Please join me in welcoming Dr. Mario Theissen, Director of BMW Motorsport.

Ian Robertson
Mario, what can you tell our audience about the BMW Concept 7 Series ActiveHybrid, from the viewpoint of a motorsport engineer?

Dr. Mario Theissen
In this 7 Series you can really tell that BMW has used the very best hybrid technology available.

BMW engineers have been working on this technology for quite some time, and new Formula One rules now allow us to put our innovative hybrid technology to the test under extreme conditions. This also allows us to garner crucial expertise for series development.

For instance, our new Formula One car has a special Brake Energy Regeneration system called “KERS”. During the braking phase, it stores enough energy to supply an additional 60kW for acceleration for about 6.5 seconds. A surge of energy like that can be decisive when a driver is overtaking. The power density of the KERS components far exceeds that of today’s hybrid vehicles.

However, the principal behind KERS is similar to the ActiveHybrid technology used in this 7 Series. This vehicle combines an eight-cylinder petrol engine and a 20-horsepower electric engine with a maximum torque of 210 Newton metres.

To put it in simple terms, brake energy is used to generate electrical energy – just like with KERS in the Formula One car. But that does not happen in a conventional generator – it happens in an “e-machine” integrated in the gearbox – which is much more efficient.

So, you could say, that for the first time, BMW ActiveHybrid combines BMW’s characteristic driving pleasure with the efficiency benefits of hybrid technology.

And that produces vehicles which
• develop a much better dynamic performance than any hybrid models until now,
• and, at the same time, have much lower consumption and emissions than
comparable models powered solely by combustion engine.
• That is noticeable both in city traffic and on the highway.

Ian Robertson
Thank you, Mario. It was great to have you with us today and we wish you all the best for the upcoming race in Bahrain.

Ladies and Gentlemen,
BMW ActiveHybrid technology will be ready for series production this year. The world premiere of the BMW 7 Series ActiveHybrid will be at the Frankfurt Motor Show, Germany, in September this year.

At this point, allow me to sum up by saying that China is an extremely important market for premium vehicles.
• The BMW Group has performed well here over the past and we plan to build on
our current success here in China.
• We recently increased our production capacity here in China from 30,000 units to
well above 40,000 units. We also increased our local purchasing volume by 22
percent. That is also a good indication that we expect to sustain the momentum.
• China remains very promising for the company.
In the first quarter of this year we increased our sales by nearly 14 percent and
remain on our growth path in this key market.
• We expect to see a further positive market development in China in 2009 and a
further increase in sales.

We are confident that our product line-up is stronger than ever
and will continue to guarantee our legendary “Sheer driving pleasure” for our customers here in China and around the world.

Ladies and Gentlemen, thank you for your time.