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The 106^th BMW Annual General Meeting!

A very warm welcome to all our shareholders!

Welcome to our most important event of the year. This is our opportunity to stand before you and answer your questions. We commit to doing so objectively, based on the facts. What you can always expect from BMW is confidence! Confidence is not a mood or an attitude. It is an active decision – especially when what we know becomes fragile. In hindsight, difficult situations often appear less dramatic than they do at the time.

It is our responsibility to set the right course. We refer to this as making robust decisions: decisions that are geared towards the company’s long-term success, based on data, facts and informed analysis. We assess developments with nuance, both globally and regionally – because that is how our world works. We make decisions with the future in mind.

This is possible because our investors also take the long view – especially our anchor shareholders, Stefan Quandt and Susanne Klatten – as well as our many institutional investors. For BMW, this is a privilege; for our employees, it is a source of stability and support; and, in a competitive environment, it is an advantage. This is one of the reasons why BMW turns external crises into opportunities for progress. In the current environment, many things are uncertain. That is why antifragility is our strategic tool of choice for ensuring the long-term future of your company.

Building on a foundation of continuity, we can achieve major advances in innovation – connecting brands, products, technologies and markets.

Standing here beside me is the new 7 Series – the latest example of BMW’s innovative strength. In April, it celebrated its world premiere at the Auto China trade show. The full Board of Management was there.

The 7 Series is the first vehicle already on the market to incorporate the technologies of the NEUE KLASSE. From this day forward, all future BMW models will feature its technology clusters and new design across all drive technologies – as promised. There will be more than 40 vehicles released in total between now and 2027. The NEUE KLASSE is our launchpad for the future.

You, Ladies and Gentlemen, know us well and support us.

What currently defines the BMW way?

1.    Robust strength in a dynamic environment:
Our financial year 2025.

2.    The race is on:
The NEUE KLASSE is realising its potential and generating excitement.

3.    Global player BMW:
Antifragile and future-proof.

These are the topics I would like to discuss.

Ladies and Gentlemen,

We met the following goals in financial year 2025:

•      Our target profitability range for the Automotive Segment.

•      Group earnings before tax of over 10 billion euros.

•      A 10-cent increase in our dividend – to 4.40 euros per share
of common stock.

We achieved all of this despite unfavourable currency translation effects, a difficult market situation in China and tariff headwinds.

We managed our business in an extremely disciplined manner, with everyone fully on board. We have saved 2.5 billion euros across all cost categories, while reducing our R&D spending and capital expenditure. Everything is progressing as planned – because we invested early in the NEUE KLASSE. Our people really gave it their all. So, I would like to say a big thank you to our BMW team worldwide.

Others are cancelling bonuses. We are paying our employees in Germany an attractive profit-sharing bonus for 2025. Our business model is robust. Models and markets are good indicators of this.

In 2025, we delivered more than 2.46 million vehicles to customers.

That is more than the previous year. All brands are contributing to this:

•      BMW leads the global premium segment.

•      BMW M GmbH increased its sales for the 14th consecutive year.

•      The MINI brand posted growth of around 18 percent, with the
new model family being very well received.

•      At Rolls-Royce, the number of handcrafted motor cars remained at the same high level as the previous year. We are now expanding our workshop in Goodwood to give our luxury brand more space for its Bespoke models and top-of-the-range Coachbuild products.

•      BMW Motorrad sold more than 200,000 two-wheeled vehicles in the segment above 500 cc, although the total market declined during the same period.

Let’s move from models to markets.

In Europe, we were – and still are – really strong. For the first time since the pre-Covid era, we once again delivered more than one million vehicles to customers. Although the US market is considered saturated, we made gains there. This is also thanks to our long-standing presence in the US. Spartanburg is our largest plant. It exports worldwide, with an export volume of more than 100 billion dollars over the past ten years. BMW remained the country’s largest automotive exporter by value in 2025. A fact that is recognized and appreciated in US political circles.

Every market is important, including the many markets outside the main regions, where we also recorded growth overall.

Let's turn our attention to China. China receives a great deal of coverage – and you, our shareholders, also have questions about it. More than 24 million vehicles were sold in China in 2025. China is also one of our industry’s most important technology hubs. However, the market there is normalizing, with fewer purchases being made.

Local manufacturers are increasingly entering the market and trying to gain market share. Competition is extremely intense.

Our objective for 2025 was to stabilize sales – and we achieved that, delivering 625,000 vehicles to customers in China. In the first quarter of 2026, the total market continued to decline. This is also affecting domestic suppliers and, specifically, the smaller vehicle segments. In this situation, BMW outperformed the market overall.

Our measures are taking effect. Three core areas are particularly important in China: local relevance, speed and software.

1.    We create value locally: This applies at our plants in Shenyang, our engine plant and the new battery center – all through our BBA joint venture.

2.    We responded quickly to the changing environment by consolidating development and purchasing activities and by reducing costs through increased local sourcing. Our new sales structure is making rapid progress.

3.    Digitalized vehicles: This is a key issue in China, where we have strong local technology partners in Momenta, DeepSeek and Alibaba Banma. Together, we are integrating innovations into our models.

Local relevance, speed and software are essential conditions for strengthening our competitive position. In China, we also benefit from BMW’s ongoing dialogue with policymakers in Liaoning Province and at national level. In February, I was part of Federal Chancellor Merz's business delegation to China. Our goal is very clear: We intend to resume our growth in China.

Our approach to this is the following: In China. For China. With China.

We develop products that are tailored to the wishes of our Chinese customers. Just a few weeks ago, we unveiled three new BMW models in Beijing: the 7 Series and the long-wheelbase versions of the iX3* and the i3.

These long-wheelbase versions are the most China-centric cars we have ever built. The media was impressed by the driving dynamics and digital experience offered by the iX3L.

In China. For China. With China.

That also includes exporting from China. This is where the European Commission's punitive tariffs on imports of fully electric vehicles from China are hurting us. They are among the highest tariffs we have to pay. That cannot be in the EU's interest. Tariffs are like a boomerang. Who pays them? The customer.

The same applies to the tariffs between the EU and the US. Imports into the US are subject to tariffs of 15 percent. For us, this means higher financial outlays. On the other hand, we would benefit from the new tariff rate for imports into the EU, which is expected to fall to 0 percent. The emphasis here is on “expected to.” The new rate has not yet been implemented by the EU.

The tariff debate remains dynamic and highly complex. The fundamental principle here is that tariffs do not protect; they cause damage – on all sides. A global production and supply network is a strength. Any industry that is supposedly shielded by tariff barriers is weaker – and ultimately shrinks.

We make this point clearly wherever we engage in political dialogue. Who knows better than we do in Europe that exports and free trade lay the foundation for innovation and for jobs. The European Commission generally has good intentions, but the execution often falls short. Take the “Made in Europe” initiative.

Every industrial policy measure should

•      recognize that exports drive value creation – especially in Germany,

•      and ensure continuity in cooperation with international trading
partners.

This is crucial for our globally interconnected industry. E-mobility, in particular, is not possible without global value chains.

Another example of “good idea, poor execution”: the CO₂ requirements from 2035. The current proposal does not support technology-openness and ignores market realities. For more than 90 percent of vehicles across the EU, a de facto ban looks set to remain in place. Strict electrification quotas are also planned for company fleets.

Following the ban on the supply side, restrictions on the demand side are now also set to be introduced. This benefits neither customers, nor European industry, nor the environment.

If key areas of the e-mobility value chain are to be located outside of Europe, we risk becoming unilaterally dependent. The European Parliament and the European Council have a clear responsibility in this regard. Things cannot remain as they are.

BMW shows how it can be done: with a technology-neutral approach. Our vehicles with conventional drive trains remain in demand. They, too, can achieve an even smaller climate footprint through the use of renewable fuels. At the same time, we are growing with our fully-electric models – BEVs for short – and our plug-in hybrids, or PHEVs.

We consistently outperform EU CO₂ targets and did so again in 2025 – by a significant margin of 2.9 grams. Based on our preliminary calculations, our fleet-wide emissions came in less than 90 grams of CO₂ per kilometer in Europe. We achieved this entirely through our own efforts – without “pooling” with other manufacturers or “averaging” across multiple years.

We are also setting our own targets, with goals that are realistic, reliable and ambitious. What matters most to us is the overall impact. That means every ton of CO₂ we can avoid emitting. Scope 3 upstream is becoming increasingly relevant in this respect: In other words, reducing the carbon footprint throughout the supply chain.

The overall balance determines the climate impact – not the drive train alone. Our plants require 36 million parts every day. These are delivered by 2,700 direct suppliers and another 65,000 second-tier suppliers. By 2030, we aim to reduce our CO₂ emissions by at least 40 million tonnes compared to 2019 levels. You already know that. Now, we are aiming even higher, targeting a further 20 million tons of CO₂ by 2035. As you can see: We are on track to reach NET ZERO by 2050. To achieve this, we are relying even more on secondary materials and CO2-free energy.

Germany carries significant weight as an industrial location within Europe.

Here, academic research, technological development and industrial implementation are closely intertwined.

However, we are falling behind:

•      Energy and labour costs are substantially higher than in
other countries.

•      The European Commission does not reward innovation and export orientation, but rather downsizing. It is replacing effective market mechanisms by bans and protectionism.

We are already feeling the effects of this trend. However, BMW is standing firm. In 2025, we built more than one million vehicles in our home country. About a quarter of all cars produced in Germany now come from BMW.

Our plants are operating at high capacity:

•      Regensburg was our highest-volume plant in Germany in 2025,
operating in three shifts.

•      Leipzig is our only plant where BMW and MINI vehicles are built on a single line – also in three shifts.                 

•      At our main plant in Munich, the new BMW i3 is also ready to go.
From 2027, the plant will produce only EVs. This follows a 650-million-euro investment in extensive remodelling in line with the principles of the BMW iFactory.

•      In Dingolfing, the two-millionth BEV has just come off the production line: a BMW i5* that we are delivering to Spain.

We can build different models and drive trains on the same production line – not only in Germany, but worldwide. So, when demand fluctuates, we are able to balance it out. Your company, esteemed shareholders, remains financially solid – capable of taking action and making investments.

In 2026, deliveries are forecast to be on a par with last year. The same applies to our BEVs. Our electric models have recently achieved strong year-on-year growth. Model cycles are now beginning to have an impact. The dynamics of the market regions and regulatory frameworks are shifting. In both the US and China, e-mobility now receives less government support.

The situation is different in Europe: In the first three months of the year, BMW recorded its highest-ever new orders for a first quarter: BEV sales are up more than 60 percent on the previous year, with well over 50,000 orders for the BMW iX3 alone since the IAA International Motor Show.

Our sales of fully electric vehicles have already surpassed last year’s strong performance in Europe. This, too, shows that different regions of the world are developing at different rates. In this context, our technology-neutral approach is proving all the more effective.

We have strong momentum across all brands and all drive technologies. That brings me to my second point:

The race is on.

The NEUE KLASSE is realising its potential and generating excitement.

Ladies and Gentlemen,

Many of you were with us at our Annual General Meeting in the Olympiahalle last year, when we unveiled the first two production models of the NEUE KLASSE live. Then, they were still wrapped in camouflage foil. Today, the iX3 is already driving on the roads, and we have already introduced the i3.

In January, we handed over the first iX3s to their new owners. The iX3 has been in European showrooms since March, with the US and Asia set to follow in the coming months. We are winning many new customers with the iX3. In Germany, one in three customers ordering an iX3 did not previously drive a BMW.

We are producing the iX3 at our new plant in Debrecen. Because demand is so high, we introduced a second shift in February – significantly earlier than planned. The iX3 can drive 805 kilometers on a single charge, according to WLTP. Our engineers like to test limits, so they wanted to show that it can do even more. A small team set out to drive the iX3 from Plant Debrecen to Munich – precisely 1,007 kilometers – without charging. No one has ever achieved that before with a vehicle in this class.

When they arrived at BMW Welt, they still had two percent charge left in the high-voltage battery. This record-breaking drive demonstrates the potential of the technologies in the NEUE KLASSE.

The eighth generation of the 3 Series now brings the NEUE KLASSE right to the heart of the BMW brand.

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Video.

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Ladies and Gentlemen,

There are cars that belong to history – and then there are cars that make history. The BMW i3 definitely falls into the second category. We celebrated the i3 premiere with around 40,000 employees at the BMW Park in Munich. The atmosphere was incredible.

We will begin series production in August, and the i3 will be launched shortly afterwards in Europe. The technical specifications of the i3 are truly exceptional – boasting a range of up to 900 kilometers in the WLTP cycle.

In just ten minutes, it charges enough energy to drive up to 400 kilometers. This is made possible by the sixth-generation e-drive with 800-volt technology.

The BMW i3 brings together all the technologies we have developed for the NEUE KLASSE – for the powertrain and driving dynamics, battery technology, operating concept and the digital driving experience.

The 3 Series is more than just a sedan – and it will remain that way in the future. The 3 Series Touring is very popular with families and business customers, which is why we have already confirmed this model.

Our M GmbH is inseparable from BMW: The first fully electric M model will debut in 2027. Thanks to the technologies of the NEUE KLASSE, this M model will also excel on the racetrack, if desired.

At the core of the NEUE KLASSE lies a completely new electronic and digital architecture. Many functionalities are enabled, expanded and continuously improved through software.

We can roll out new features and updates wirelessly via mobile communications or Wi-Fi. This allows us to react faster, scale innovations and meet regional customer needs.

Take BMW Panoramic iDrive, which combines display, operation and intelligent voice control in an intuitive and driver-oriented concept. It is typically BMW and, at the same time, locally customizable.

In China, we are working with Alibaba Banma to realize this. Together, we are bringing next-generation voice control into our vehicles. We are also enhancing the BMW Intelligent Personal Assistant with the functionality of the Chinese AI model DeepSeek.

In Europe and other markets, we will be integrating Alexa+ to make the voice assistant even more interconnected, intelligent and personalized.

We are relying on technology clusters as part of our modular approach.

In this way, we can integrate market-specific functionalities quickly and selectively into the vehicle, within a globally scalable system.

We are strengthening our research and development capacity in the regions accordingly. The NEUE KLASSE gives us the flexibility to respond precisely to regional requirements. The same applies to our driver assistance systems. Our objective is for them to be intelligent, symbiotic – and, above all, safe. We also have strong partners in this area: In China, we are working with Momenta, a leading supplier of ADAS technology; outside of China, we are collaborating with Qualcomm.

With the software-defined NEUE KLASSE, we maintain control over our systems and can roll out innovations worldwide. At the same time, we are able to rapidly integrate local technology stacks. This ensures that a BMW remains a BMW everywhere in the world. Nevertheless, every BMW offers precisely those features that local customers expect.

Now to the third key aspect that defines our BMW way.

How many global manufacturers do you think there are in our industry?

Not even a handful – but BMW is one of them. What does GLOBAL even mean in this context? Naturally, a global footprint across production, research and development, and sales. We call this local for local. It is how we secure access to individual markets, strengthening our local supply chains to make ourselves more resilient.

One example of this is our five new locations for high-voltage batteries – in Europe, the Americas and China. A global manufacturer has global brands – like we do with BMW, MINI, Rolls-Royce and BMW Motorrad.

We offer our customers a broad range of products across all key segments – from the urban compact-car segment to the absolute luxury class. And now, they are joined by BMW ALPINA, a highly exclusive brand with a strong tradition. With BMW ALPINA, we are tapping into a highly profitable, high-growth segment positioned above the BMW brand’s top models and below our Rolls-Royce luxury brand.

On the drive train side, we also offer battery-electric vehicles in all relevant segments. By end of the year, we will have 20 BEVs across all brands. Our plug-in hybrids also remain important. In 2028, BMW will add a further drive train: hydrogen. The next generation of our BMW X5 will then be available with five drive train variants.

Dear Shareholders,

Resilience is a word we hear a lot these days. But we are taking it a step further: We are making BMW antifragile. That means more than being resilient. Resilient companies withstand challenges, while antifragile companies use them to become better and to grow. This mindset transforms uncertainty into strategic clarity and pressure into momentum.

Difficult circumstances generate forward impetus that makes our company even stronger. Our global team makes this possible. In the autumn, we once again surveyed all our employees worldwide.

More than 90 percent said they support our goals and our strategy and 92 percent said they are proud to work at BMW.

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Video.

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What you see here is genuine. It is authentic. That is our BMW spirit, my dear Shareholders! At BMW, it is never about the individual – not the Board of Management; not the CEO.

It is always about our products and our brands; about the company – and its success. This is what we work for and strive towards. Because we can – and because we want to. Because it makes sense and unlocks potential. And because it brings joy – to our customers and to us in our daily work.

For almost seven years, since August 2019, I have been responsible for your company. Seven months after I took office, the coronavirus brought the world – and our plants – to a standstill. As you know, the period that followed remained turbulent.

We invested and initiated the NEUE KLASSE, the mega-project you see before you today. And we will continue – just as we always have at BMW for the past 110 years.

Tomorrow, dear Milan Nedeljković, you take over as Chairman of the Board of Management. The two of us have worked well together on the Board of Management.

Strategy is the responsibility of the Board of Management, and our strategy is focused on the long term. We consider and prepare for different scenarios. Decisions are made jointly by the Board of Management.

We implement them unanimously and with a united approach. Everything is done calmly and consistently, with a clear focus on the road ahead.

The appointment of new the Chairman of the Board of Management was decided and communicated in the same spirit.

Milan, I wish you and the Board of Management team continued strength in shaping the future. You, ladies and gentlemen of the Supervisory Board, continue to support us with critical and constructive guidance in true BMW style – always solution-oriented and focused on our shared success.

The fact that the entire Supervisory Board is present at our Annual General Meetings visibly underscores the support you give us,
Ladies and Gentlemen.

Those who invest expect their investment to be worthwhile, dear Shareholders. At the BMW Group, there are many compelling reasons why this will continue to be the case in the future.

Allow me to say, from the bottom of my heart:

Thank you for 35 intense and exciting years at BMW!

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Ladies and Gentlemen,

Good morning.

Before I'm talking about the quarter figures, I would like to address a tragic loss that has deeply touched many BMW fans around the world.

On May 1, race car driver, longtime BMW works driver, and company ambassador Alessandro Zanardi passed away unexpectedly.

“Alex” was an impressive personality, an unwavering optimist, and an inspiration to many people worldwide. He demonstrated what is possible in life with dedication, willpower, and ambition.

The BMW Group has lost a fascinating humanitarian representative, and BMW M Motorsport has lost an ambitious and successful works driver.

Ladies and Gentlemen,

Walter Mertl has taken you through the results after the first three months of 2026.

As we outlined in March at our Annual Conference, we knew that there would be several headwinds we would face throughout this year.

For us, it is about minimizing their impact, while consistently leveraging opportunities that arise.

At the same time, we remain firmly on course with our long-term strategy – a strategy that has provided clear direction and enabled us to navigate an increasingly unpredictable global business environment over recent years.

Three characteristics in particular define the BMW way:

First: Our strategy of technological neutrality

Second: The BMW Group’s global footprint and

Third: Inspiring brands and fascinating products.

Since 2021, the BMW Group’s long-term product and technology orientation has focused on the NEUE KLASSE.

Building on an exceptionally strong foundation of products and successful technologies delivered to customers over many years through to today, we are now making a huge leap forward in nearly every area of technology with the NEUE KLASSE. This will pay off as we roll these technologies out rapidly across the whole product portfolio.

Last year in September, here in Munich at the IAA Mobility, we presented the BMW iX3*, the first vehicle of the NEUE KLASSE. With this all-new vehicle generation BMW is entering into a new era.

The launch of the iX3 has been extremely successful.

Just a few weeks ago, in March, we handed over the first BMW iX3 vehicles to customers across Europe.

Over the past weeks, the model has also reached showrooms throughout the region.

Pre‑orders in Europe now exceed 50,000 units, underscoring the strong interest in this vehicle.

The iX3 also continues to win notable major international awards.

Most recently, it won two awards at the renowned World Car Awards. An international jury of 98 automotive journalists presented the BMW iX3 two prestigious titles: the 2026 “World Car of the Year”, beating out competitors across all powertrain categories; as well as 2026 “World Electric Vehicle” accolade.

With the first NEUE KLASSE model, BMW has delivered a clear step forward in technology and design – one that is resonating strongly with experts, journalists, and customers alike.

Given the very high market demand, we already pulled forward the second shift of BMW iX3 production at our Debrecen plant in February.

Further rollout across the US and Asian markets is planned for the coming months.

And the iX3 was just the beginning – a lot has happened since our annual conference. The NEUE KLASSE is gradually making its mark across the entire BMW portfolio.

In March, we unveiled the next step with the world premiere of the new BMW i3 at BMW Park in Munich.

Since 1975, the 3 Series has inspired dreams. At the core of the brand, each of the eight generations embodies progress and innovation. And with the BMW i3 we are building our future on this rich legacy.

This event provided a unique opportunity to celebrate this milestone not only with media and other key stakeholders, but especially and perhaps most importantly with our associates.

More than 30,000 employees joined the celebrations over days, underscoring the strong bond our team feels with the brand and their pride in this incredible moment – both for the company and for their achievements in bringing this vehicle to life.

As the second model of the NEUE KLASSE, the BMW i3 perfectly symbolizes the journey BMW has taken over the last years.

It is, of course, a completely new vehicle with a reimagined design and seamless integration of advanced technologies.

At the same time, the BMW i3 represents the progress of the BMW Group itself – from the systematic modernization of our production facilities through new ways of working that enable efficiency, scalability, and our long-term competitiveness.

The i3 will be produced at our main Plant in Munich. With an investment of around 650 million euros, the facility has been completely remodeled following the principles of BMW iFactory – lean, green, digital.

Production of up to 1,000 vehicles a day continued uninterrupted during the shopfloor adaptations over many months.

Beginning in 2027, the plant will exclusively produce electric vehicles.

The plant also continues to make great progress in realizing cost efficiencies. When the i3 rolls off the line for customers, we will have reduced overall production costs at the Munich plant by an additional 10%.

These improvements are driven by optimized production processes, targeted automation and digitalization, as well as the vehicle construction improvements enabled by NEUE KLASSE technologies.

Series production of the BMW i3 begins in August, followed by the market launch in Europe a few weeks later.

Several additional NEUE KLASSE models will soon be manufactured in Munich, including the BMW i3 Touring.

The BMW i3 leverages all the technologies developed for the NEUE KLASSE. From driving dynamics to powertrain, from battery technology to operating concept and the digital user experience.

And of course you can choose between different drive variants. Because we remain technology-open.

Each element is perfectly attuned to the characteristics of the 3 Series – creating a whole new dimension of sheer driving pleasure.

This is also confirmed by initial reviews and feedback from customers and journalists, which have been very positive.

This was also evident just two weeks ago at Auto China in Beijing, the world’s largest automotive trade fair.

We presented not 1, not 2, but 3 new models:

The BMW iX3 and BMW i3 Long Wheelbase for the Chinese market as well as the world premiere of BMW 7 Series model update with NEUE KLASSE technologies and design elements.

The China-specific NEUE KLASSE vehicles have been developed in close collaboration with our local R&D teams and local partners in China – think global, act local.

This enables us to leverage the know-how of leading Chinese tech players and integrate local digital ecosystems and technologies to meet the specific needs of our Chinese customer needs – for example, in voice assistant features and automated driving solutions.

The momentum generated by the NEUE KLASSE in China will provide a powerful impulse for our portfolio and marks the beginning of the next chapter in BMW’s tailored innovation and technology leadership in this key market.

In 2026, the seven millionth BMW vehicle will roll off the lines at our Shenyang production base. This remarkable milestone underscores our long-term commitment to China. And we are constantly strengthening our local footprint to underpin this momentum.

Through deeper localization across the value chain and expanded China-based decision making, we are faster, more robust, and even more synchronized with local customer expectations and market dynamics.

The new BMW 7 Series we unveiled in Beijing will kick off the roll-out of Neue Klasse technologies across all powertrains and into other product lines, and segments.

Coming in the middle of its lifecycle, it is the most extensive model revision in BMW's history and will take the 7 Series to a whole new level.

The technology-open drive offer covers all customer needs. The updated BMW i7 with new round battery cells features up to over 700 kilometers of range according to the WLTP cycle, meaning an increase of 100 kilometers from the current version.

Start of production will begin in our plant at Dingolfing in July.

The new 7 Series exemplifies BMW’s ability to industrialize the latest technologies at speed, integrating them into series vehicles and making them available directly to our customers.

This summer, we will also unveil the next generation of our BMW X5. It will be the first BMW model to be offered with five different drivetrain variants: highly efficient conventional powertrains, plug-in hybrid, battery-electric and – from 2028 – also hydrogen.

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

Ladies and Gentlemen,

Our products continue to enjoy strong demand globally. We are well positioned to meet the needs of customers across different regions and markets.

In the first quarter we leveraged the strength of our current portfolio in a shifting environment – supported by a broad offering across brands, segments, drivetrain technologies and geographies.

Consistent with our balanced, global approach to sales, the performance in Europe helped to partially offset weaker dynamics in other markets. Sales were particularly robust in Germany, where Group registrations increased by more than 10% year-on-year.

In China and the U.S., the BMW Group performed better than the overall declining market.

BEV orders in Europe were up by around 62%, with European sales of fully-electric vehicles exceeding the previous year’s high level.

For the fifth consecutive quarter, the MINI brand delivered global growth, with sales increasing by 6%.

As we roll out the NEUE KLASSE, we can look ahead with confidence. Its technologies and design language will provide fresh momentum into our already strong BMW products. Offering individual mobility solutions tailored to the needs of customers across markets worldwide.

At the same time, the company is prepared to weather differing dynamics in global markets and to seize opportunities.

That combination is what sets the BMW Group apart.

We have stayed on course, consistently implementing our long-term strategy and are now ideally positioned to reap the rewards.

This is very much part of our DNA. Time and again, the BMW Group has proven resilient from the pandemic through supply chain disruptions and semiconductor shortages and the energy crisis.

Throughout, we have remained true to our technology‑open approach, which has proven its strength as global automotive markets continue to transition and delivered stronger results in new technologies.

As this will be my final quarterly call as CEO of the BMW Group, I want to extend my sincere thanks to the media and capital market communities who have accompanied me throughout my tenure since 2019.

I have always valued our dialogue – at times challenging, but consistently constructive – and I am grateful for the professionalism and engagement you have brought to these exchanges.

I hope you will extend the same openness and warm welcome to my successor, Milan Nedeljković.

I wish you all the best – and look forward to answering your questions one last time.

Thank you.

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SLIDE 2: BMW Group Quarterly Statement to 31 March 2026

Ladies and Gentlemen,

Good Morning.

The year 2026 started off with sound financial results for the BMW Group, in line with our expectations.

SLIDE 3: BMW Group Performance in Q1 2026

In the first quarter, Group revenues totaled 31 billion euros.

Group earnings before tax amounted to 2.35 billion euros, approximately 25 percent lower than in Q1 2025.

With this result, we generated a Group EBT margin of 7.6 percent, on the level of the 2025 full year.

The operating profit in the Automotive segment was 1.345 billion euros.

Consequently, the EBIT margin in the Automotive segment stood at
5 percent, in the middle of our full-year guidance corridor of 4 to 6 percent.

As you know, we consistently focus on our reported figures. Accordingly, the five percent represents our reported
EBIT margin without any adjustments.

The Q1 extra tariff burden of 1.25 percentage points is accounted for in this margin.

In addition, the EBIT margin includes the depreciation from the BBA purchase price allocation of 1.2 percentage points.

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

Let me now provide more details on the Automotive Segment’s performance across key metrics.

In the first quarter, the BMW Group delivered around 566,000 BMW, MINI and Rolls-Royce vehicles to customers. This represents a slight decrease of 3.5 percent compared to the same period last year, driven by the sales decline of all-electric vehicles in the US and China.

The BMW brand saw a decline of 4.6 percent year-on-year.

This was driven by shifts in regional and powertrain sales.

The MINI brand continued its growth following the successful renewal of its model portfolio, achieving a solid sales increase of 6 percent.

Let’s take a closer look at our sales performance across regions.

Starting this year, we have slightly adjusted our regional sales reporting to reflect our sales organization structure rather than geographical continents.

In our largest sales region, Europe, deliveries increased slightly by 3.0 percent. We saw growth across all powertrains – combustion engine vehicles, all-electric vehicles and plug-in hybrids.

The BMW brand’s order intake in Europe showed strong growth across the entire product portfolio in Q1, with an order bank reaching well into the second half of the year.

In our sales region Asia-Pacific, Eastern Europe, Middle East, and Africa, deliveries declined by around 6,700 units – or 8.3 percent – year-on-year. This development was influenced by multiple factors, predominantly the macroeconomic environment and the diverse competitive landscape throughout the region, while the conflict in the Middle East had a limited regional sales impact in Q1.

In the Americas region, retail sales decreased by 4.0 percent year-on-year, primarily due to the US.

Here, sales of all-electric vehicles dropped significantly following the discontinuation of IRA support in the fourth quarter of last year. Our product portfolio enabled us to largely offset this decline and fulfil customer demand with our attractive ICE vehicles.

When comparing US sales to previous year, we must also remember that Q1 2025 was positively influenced by strong customer demand, driven by expectations of customs duty increases starting in April 2025.

Overall, we performed better than the total US market, which declined by 6.6 percent in the first quarter.

In China, the overall market declined sharply by over 17 percent in Q1, driven by reductions of government subsidies and changes of regulations.

By comparison, BMW Group sales decreased by 10 percent and therefore outperformed the overall market in Q1.

Switching gears to BEV retail sales:

In the first three months, the BMW Group delivered over 87,000 all-electric vehicles to customers worldwide.

Sales of electrified vehicles, including both BEVs and plug-in hybrids, amounted to approximately 133,000 vehicles.

This represents a BEV share of total sales of 15.5 percent and an electrified vehicle share of 23.4 percent.

In Europe, BEV sales continued to grow and order intake increased by more than 60 percent year-on-year, especially due to strong demand for our all-new iX3* and the iX1*.

In China and the US, the removal of incentives and the reduction of subsidies for electrified vehicles had a noticeable impact on BEV sales year-on-year, reflecting the country-specific market dynamics.

Automotive Segment revenues declined moderately by 7.0 percent to
27.2 billion euros in the first quarter.

Adjusted for currency translation, mainly from the US-Dollar and the Chinese Renminbi, the decrease was 2.9 percent.

It was driven by lower sales volumes and intense global competition.

Let’s now take a closer look at the year-on-year changes in the operational result on the following slide.

SLIDE 5: Automotive Segment EBIT in Q1 2026

In the first three months, changes in currency and raw material positions accounted for a negative impact of around 400 million euros.

As anticipated, the adverse FX development from the second half of 2025 continued into the first quarter of 2026.

The net effect of volume, model mix and pricing resulted in a negative impact of around 700 million euros compared to Q1 2025.

In addition to the impact from lower sales volumes, this decline was driven by intense competitive pressure across all major markets.

Ladies and Gentlemen,

We are continuing cost reductions across the company to tackle the overall headwinds.

In the first quarter of 2026, we have further reduced both R&D and capital expenditure, thanks to early investments in the NEUE KLASSE.

As of March, Group R&D expenditure totalled around 1.8 billion euros, a significant decrease of around 12 percent compared to the previous year.

The R&D ratio according to the German Commercial Code came in at 5.7 percent.

Despite this significant reduction, research and development expenses in the P&L increased by 100 million euros due to two factors:

An increase of 200 million euros in depreciation, resulting from capitalized development costs in prior years.

And a lower R&D capitalization ratio compared to Q1 2025, which decreased by 4.3 percentage points to 31.4 percent.

Our ongoing commitment to reducing operating costs is further visible by the development of selling and administrative expenses, which decreased by around 100 million euros year-on-year.

Other Cost Changes provided a tailwind of around 400 million euros compared to the first quarter of 2025.

This includes various factors, most notably manufacturing costs and warranty expenses as well a year-on-year tariff burden.

Overall, Automotive EBIT amounted to 1.3 billion euros in the first quarter.

The decline of approximately 700 million euros compared to Q1 2025 was driven by headwinds from FX, tariffs and depreciation.

SLIDE 6: Automotive Segment Free Cash Flow in Q1 2026

Free cashflow in the Automotive Segment amounted to around 800 million euros in the first quarter of 2026.

The net change in working capital reduced free cashflow by around
500 million euros, as expected.

This mainly reflects the typical Q1 inventory build-up, with production exceeding sales volume.

The impact of higher inventories was partly compensated by an increase in trade payables, which rose in line with production levels.

The net effect of capital expenditure and depreciation contributed about 600 million euros to free cashflow.

Depreciation exceeded capital expenditure in the first quarter, positively impacting free cashflow.

We expected this position to flip versus previous years, as we continue to reduce capex and see depreciation from earlier investments take effect.

This trend will continue throughout 2026.

The capex ratio for Q1 was 2.0 percent, reflecting the typical low level seen in the first quarter of the year.

The change in provisions reduced free cashflow in the first quarter by
300 million euros, primarily due to the consumption of warranty provisions.

The change in the position other reduced free cashflow by 300 million euros, mainly due to regular tax payments.

For the full year, the BMW Group is targeting a free cashflow in the Automotive segment above 4.5 billion euros.

Ladies and Gentlemen,

The BMW Group remains firmly committed to its shareholder return strategy, which includes both dividend payments and share buybacks.

The second tranche of our third share buyback program with a volume of 625 million euros is currently underway and is scheduled for completion by the end of August at the latest. The third tranche is planned to follow thereafter.

SLIDE 7: Financial Services Segment YTD March 2026

Let’s now turn to our Financial Services Segment.

In the first quarter, the number of new contracts concluded with retail customers increased slightly by 4.3 percent year-on-year, reaching 420,000 contracts.

The penetration rate for lease and loan offerings increased to 51.6 percent in the first quarter.

This development was supported by changes in the competitive environment in China. Mid-2025, local banks significantly reduced commissions related to brokering financing and insurance products for end customers.

Adjusted for FX effects, new business volume grew by 4.1 percent to about 16 billion euros.

Segment earnings for the first quarter amounted to 381 million euros, a decrease of 269 million euros compared to Q1 2025.

This decline results from an addition to an already existing risk provision in the UK. At the end of March, the Financial Conduct Authority (FCA) issued its final cross-sector compensation program for customers who were sold automotive financing products under certain commission models.

Unfortunately, the published program reflects only a few of the many amendment proposals made to the initial draft by both the UK Finance and Leasing Association and the BMW Group.

As a result, the compensation payment volume will likely exceed previous estimations.

Additionally, income from the resale of end-of-lease vehicles was lower year-on-year, as expected.

The credit loss ratio across the entire credit portfolio remained low at 0.27 percent.

SLIDE 8: Motorcycles Segment in Q1 2026

In the Motorcycles Segment, first-quarter deliveries declined slightly by 4.2 percent year-on-year.

Segment EBIT for the first three months rose to 89 million euros, with an EBIT margin of 11.4 percent.

Finally, one remark on the Other Entities result, which increased by around 300 million euros.

This was driven by positive valuation effects from interest rate derivatives, resulting from the sharp rise in long-term interest rates in March.

SLIDE 9: Outlook 2026

Ladies and Gentlemen,

Let me now turn to our outlook for 2026 and briefly outline some of our current assumptions.

The situation in the Middle East currently remains highly uncertain. Our outlook assumes that the ongoing conflict is temporary.

The expected tariff impact on our 2026 results can still only be estimated based on our existing assumptions.

We expect import duties from the EU to the US to remain at their current levels.

Following the recent positive vote in the European Parliament, we anticipate that tariffs on imports from the US to the EU will drop to 0 percent effective in the second half of the year.

Similarly, tariff reductions for imports into the US from Mexico and Canada are also expected to take effect in the second half of the year.

We continue to anticipate a full-year negative impact of around
1.25 percentage points on the Auto EBIT margin from the increased tariffs, after 1.5 percentage points in 2025.

In China, we are making good progress with our set of measures to support market performance.

The overall vehicle market in China declined more sharply than anticipated throughout the first quarter, already prompting several revisions of official market forecasts for the year by the CPCA.

In light of this trend, our focus will remain on achieving the right balance between sales volume, transaction prices, and dealer profitability.

Based on our assumptions, our full-year guidance parameters remain unchanged.

Group earnings before tax are expected to be moderately lower than in 2025.

In the Automotive segment, we forecast global deliveries to be at last year’s level.

The EBIT margin is expected to be within a corridor between 4 and 6 percent.

The EBIT margin in the Motorcycles Segment should also come in at between 4 and 6 percent.

In the Financial Services Segment, we are targeting a Return on Equity (RoE) in the range of 13 to 16 percent for the full year.

SLIDE 10: Q1 Profitability in the middle of full-year guidance corridor

Ladies and Gentlemen,

The year 2026 started off with sound financials for the BMW Group, with an Auto EBIT margin in the middle of our full-year guidance corridor.

Within our global business model, we continue to leverage flexibility across powertrains and regions, as we ramp up our NEUE KLASSE.

This flexibility enables us to effectively mitigate risks as they arise.

The prudent management of R&D, capex, and operating costs is clearly reflected in our Q1 results, underscoring our strong commitment to financial discipline.

With that, the BMW Group remains on track to meet its operational targets as we advance our strategic plan.

And as we roll-out the NEUE KLASSE technologies across the entire portfolio, we at the BMW Group and all of our stakeholders have plenty to look forward to.

Thank you.

- Check against delivery –

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.

- Check against delivery –

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 –

Robust. Dependable. With a clear focus on the future.

The BMW way – for the success of your company.

Dear Shareholders!

Our lives are increasingly digital – and, in global business, virtual formats offer many advantages. But, let's not forget – people are not digital. We all still value meeting face to face. We want to look each other in the eye.

That is why it is great to see so many of you here today, in the Olympiahalle. And to everyone joining us remotely: A very warm welcome to you as well!

This is your company’s 105th Annual General Meeting!

The heart of BMW beats all over the world. BMW is a global team, united by a strong sense of community. 159,000 people: highly motivated. High-performing. Innovative. Together, we are the BMW Group.

Of course, one could also say: BMW, that's just a DAX-listed company. A reliable employer; at its core, it remains an abstract construct.

But everyone at the company knows that BMW is so much more than that! That is why we stand together. Time and again, we have proven that we seize opportunities, act swiftly and adapt with remarkable flexibility. We learn from the unexpected – which is what truly matters. We then emerge stronger than before – just as we did after the global financial crisis and the Covid pandemic.

We make decisions with a long-term perspective.

This mindset goes back to entrepreneur Herbert Quandt, whose family continues his legacy – much like we do here at BMW.

You, our shareholders, remain by our side in this. You give us entrepreneurial freedom – and that is a privilege we value, especially in turbulent times.

Today, our environment is more dynamic than ever.

We face highly complex challenges, shaped by conflicting priorities and paradoxes. Above all, we are confronted with new geopolitical realities that directly affect our business.

At the same time, our industry is undergoing significant change. The shift towards e-mobility is just one facet of a broader, all-encompassing process – a technology race that culminates in elimination of some players.

When things are uncertain, many stay stuck in “neutral”, waiting. Not your company! We are now shifting into “sport mode” –hands on the wheel, eyes on the road. Standing here on stage is the BMW Vision Neue Klasse you are already familiar with. Later on, I’ll even show you the first two production models of the NEUE KLASSE. Our vision is becoming reality, as we reach the next milestones for BMW and the entire company.

By anticipating trends in the marketplace early, we consistently manage to make major technological leaps at exactly the right time. We invest proactively in electrification, digitalisation, our production network, our products and the NEUE KLASSE. By 2024, we will have reached the peak of our investment and R&D activities, with expenditure in each area exceeding nine billion euros. This is a peak, not a plateau.

We have invested a considerable amount of money.

In the years ahead, the full impact of these upfront investments will become clear – just as I promised. We are realising our plans for the future with your best interests in mind. You, our shareholders, should benefit from the continuing success of your company, alongside our employees.

That is why we remain firmly committed to our shareholder return strategy: We are proposing a dividend payout of 36.7 percent of our unappropriated profit – which would amount to a total of 2.6 billion euros. If you approve our proposed dividend, this will be our highest-ever payout ratio.

Your company is in a strong position, focused on the future:

We are digitalising our vehicles and leveraging tech clusters and architectures with massive scaling potential. We are utilising artificial intelligence throughout our value chain. Very soon, nearly every process at the company will be supported by AI, making us even faster and more precise – and not just in production and logistics. At your company, efficient cost structures are the standard – you can always count on that.

The automotive industry has been through many upheavals –in response to the rise of industrialisation, technological progress, new processes and evolving markets, as well as changing regulations and societal expectations.

The BMW way is shaped by confidence – because we provide meaningful answers. I would like to show you today how we do that through:

1.     Our strategy: which is market-driven and technology-open.

2.     Our goals: We met our adjusted targets for 2024 and are targeting growth this year.

3.     Our global footprint: a differentiating factor and competitive advantage in a fragmented world.

4.     Our future-focused project for tech leadership: BMW is the NEUE KLASSE – and the NEUE KLASSE is BMW.

Let me begin with my first point: our strategy.

Technology openness means following the markets – because markets evolve, but not all at the same pace. We took a clear stand on this, even in the face of strong headwinds. Now, the wind has shifted in our direction:

•      “BMW late winner of the drivetrain transition”.

•      “How BMW went from laggard to magician”.

•      “Germany’s true electric-car champion”.

These headlines were taken from trade journal “Auto, Motor und Sport”; weekly magazine “Wirtschaftswoche”; and newspaper “Die Welt”.

Our models and diverse drivetrain portfolio are also winning awards, including the “Goldene Lenkrad” (Golden Steering Wheel). I accepted three trophies in Berlin – a very special moment.

Our brands and products are being extremely well received. The German Car of the Year award, presented to the 5 Series and i5*, is the first-ever win for a technology-open model series.

While other manufacturers are reversing course or adjusting their strategy, we are on exactly the right track. Even policymakers are starting to come around: The new German federal government supports a broad approach to technology, while the European Commission seeks to make Europe more competitive. The “Green Industrial Deal” finally considers climate protection and the economy “in tandem”. That is a good thing.

From e-drives and plug-in hybrids to highly efficient conventional drive technologies: No one masters this level of variety better than your company. As previously announced, we will be adding a production model with a hydrogen drivetrain in 2028. All of this benefits our customers, while, at the same time, making a measurable contribution to climate protection. And, yes, we have the facts and figures to back this up:

In 2024, the BMW Group significantly outperformed its European CO2 fleet target by more than 30 grammes. That is a huge leap forward, which cannot just be taken for granted. Based on internal calculations, our numbers came in at under 100 grams for the first time – at 99.5 grammes per kilometre. The official data will be published by the European Commission at year-end. We are also gearing up to meet the much stricter targets for this year, as you would expect from us.

We take ambitious political goals seriously – but we don’t believe in technically one-sided regulations that limit supply. The same principle applies to the circular economy. Here, too, only a comprehensive approach can enable and stimulate investment. Because, as a standalone technology, e-mobility leads down a dead-end street – that much is now clear. The differences are simply too great, even just within Europe.

Belgium, for example, offers incentives: Electric and hybrid models quickly became the most popular new cars, reaching a market share of over 60 percent in 2024. Contrast that with Italy, where electric cars made up only about four percent of total sales last year.

Is that the fault of the products? Certainly not. Is it because of the customers? Definitely not. The all-important question is rather:

How do we effectively cut CO2? Certainly not by thinking in black and white. Supporting one solution does not necessarily mean opposing another. Our approach proves this time and again – and remains effective. We all need to be much more opportunity-driven, guided by entry – not exit – strategies.

Political goals must reflect market realities – and also be viable for businesses. Global investment is already looking ahead to 2030, and especially 2035. That is why the upcoming review of EU targets will be so decisive. It is our chance to improve the system. Europe needs a top-performing automotive and supplier industry. We are fighting for this and pushing back against negative developments.

For our customers, we will remain broadly diversified – and, for you, our shareholders, we are securing the success of your company. We don’t want to miss out on any market potential. We will continue to stand firm – but always open to dialogue with decision-makers around the world. We explain the complex mechanisms of our industry, asking: What will the proposed legislation mean in practice? The Board of Management and I are personally engaged in this work.

At your company, we mostly let our actions speak for themselves: Just as I promised you last year – we already have more than 15 all-electric models on the market. Our BMW iX* has been recently updated, so that it now boasts an electric range of up to 701 kilometres in the WLTP cycle. In 2024, battery-electric vehicles – BEVs, for short – were once again key growth drivers for us. By year-end, more than 17 percent of our total sales were fully electric. This is significantly higher than at many other manufacturers. You’ll also be pleased to hear that this positive trend accelerated into 2025. In the first quarter, our global BEV sales increased over 30 percent. Europe led the way, with growth of more than 60 percent.

The US market was also up by over 20 percent.

If you include both BEVs and plug-in hybrids, more than one in four of our vehicles is now electrified, while nearly one in five is already fully-electric. We are making good progress. We are delivering – and maintaining our credibility.

My second topic for today is our goals.

As always, they are ambitious. Even in difficult conditions, not every market contracts. There are always regions where growth is possible – and your company exploited this potential to the full in 2024: In three of our four main sales regions, we increased deliveries and often gained market share.

Joy is at the heart of our BMW brand, sparking positive emotions all around.ach of our company’s four brands – BMW, MINI, Rolls-Royce and BMW Motorrad – has its own unique character and strengths. BMW remains number one in the premium segment. BMW M also reported dynamic growth, achieving record sales for the 13th consecutive year. Nearly one in ten BMWs sold last year was a profitable M model. The new MINI family is now complete: With five models, three of which are fully electric. The MINI brand not only has a positive impact on our carbon footprint, it also has a strong fan base. In the luxury segment, Rolls-Royce continues to set the benchmark. With the Black Badge Spectre*, a second fully electric Rolls-Royce is now available. The Phantom is the brand's most iconic vehicle. And it is celebrating its 100th birthday this year. All good reasons to expand the Goodwood factory. At over 300 million pounds, this will be our biggest investment in the plant since it opened in 2003. BMW Motorrad impressed once again. Our two-wheeler brand remains the undisputed global number one in the premium motorcycle segment – again reaching a new all-time high, with 210,000 motorcycles and scooters sold. The GS accounts for nearly a third of those sales. It will be joined later this year by the new 1300 Series model family. I like to ride a motorbike myself, so I can assure you that our line-up is our strongest ever.

We accomplished all this in 2024 – despite the fact that many things unfolded differently than expected, as the year progressed. The delivery stops and recalls associated with an Integrated Brake System IBS component from one of our suppliers had a financial impact – but we responded quickly, keeping our communications transparent.

At the same time, the Chinese market remained weak and demand for electric vehicles declined in several markets. In light of this, in September 2024, we adjusted our guidance. From that point on, we pushed even harder to keep your company on track. That is another thing that sets us apart. We met our updated targets, with more than 2.45 million vehicles delivered to customers and a Group EBT margin of 7.7 percent.

You already know that we sold fewer vehicles in China, where competition is intense and prices are increasingly under pressure. It should come as no surprise that domestic manufacturers are expanding their market share. However, BMW remains number one in its segment. China is still our largest single market for electric vehicles, with over 100,000 BEVs delivered to customers there in 2024. Let us not forget that we have enjoyed above-average success in the Chinese market for many years.

What is also important: Your company has earned an excellent reputation in China, built on years of market presence and sustained investment. Since 2010, we have invested around 116 billion renminbi in our production base in Shenyang alone. We also have a strong R&D network in China, second only to Germany. I’ve visited China several times over the past few months, including attending the “China Development Forum”, where BMW was the exclusive mobility partner, providing 30 fully-electric BMW i7s* and i5s* for the event. All of us on the Board of Management are regularly on the ground to talk directly with our “BMW Team China”. Our China strategy is based on the principle “in China for China”. The same applies to the NEUE KLASSE. The first models produced for the NEUE KLASSE in China will come off the Shenyang assembly line from 2026. Our design team in Shanghai led development of all China-specific models of the NEUE KLASSE. As a result, our local BMW iX3* will be tailored to the needs of Chinese customers – in other words, “from China for China”.

Our market-specific approach has proved effective over many years. The technology race in our industry will be decided in China – where else? – where AI is widely adopted. That is why we are establishing AI partnerships with leading Chinese tech companies, to integrate these innovations directly into our vehicles in China. For example, we are collaborating with Alibaba to develop the next stage in voice interaction between humans and vehicles. DeepSeek will also be a part of this.

We will begin integrating DeepSeek’s AI capabilities into our newest models in China by the end of this year. These examples show that, even when it comes to digital applications, we operate “in China, for China” – and at “China speed”. As our largest single market, getting back on track for growth in China is clearly a priority. That is why we are currently consolidating our retail network.

What matters most to you, as shareholders, is:

What are our plans for 2025?

In a word: growth. Our sales are forecast to increase slightly. What makes us so confident? Our products. Between now and 2027, BMW will bring more than 40 new or updated vehicles to market across all drive train variants. This year, one of our most successful models will celebrate its 50th anniversary: the BMW 3 Series. The latest version of our extremely popular BMW X3 is fresh on the market. We manufacture the X3 worldwide – in Spartanburg, South Carolina, in the USA; Shenyang, China; and Rosslyn, South Africa. This is a clear example of how we are responding flexibly in an increasingly protectionist environment.

We are also realigning our sales and marketing to meet the demands of the future. In some markets, an agency model enables customers to move seamlessly between online and offline channels. MINI has already transitioned 15 markets in Europe. The process for our core BMW brand will be significantly more comprehensive, learning from our experience with MINI. We are using this year and next to prepare for the launch of the BMW brand. I’m sure many of you are wondering: What about our retailers? They remain close by our side, of course. The entire transition is taking place in collaboration with them. Anything else would not be the BMW way. Retailers and our BMW branches remain important to our sales success – and, above all, to our customers’ brand experience.

In uncertain times, making reliable forecasts is not easy. In our guidance for financial year 2025, we responded quickly to current developments, already factoring in the known tariff impacts, as of 12 March 2025. These effects account for approximately one percentage point on the EBIT margin in the Automotive Segment, which we now expect to be within the range of five to seven percent.

Global conditions remain dynamic and uncertain. That’s why many OEMs – not only in our industry – are not issuing forecasts at this time. Not us. After the first quarter, we confirmed our guidance.

Our assumptions are based on fundamental premises. We expect developments in the tariff debate by the summer. We are confident that a good compromise can be reached in the negotiations with the US this year. We are closely monitoring developments and actively preparing for a range of scenarios. In the long term, we remain committed to achieving an Automotive EBIT margin with our target range of eight to ten percent.

A key lever for this is lowering operating costs, which we expect to decline in nominal terms over the course of the year.

For my third point, I’d like to talk about our global footprint.

The global economy is deeply interconnected, with tightly interwoven supply chains. Can this be undone? We don’t believe so. What we do know is that protectionism leads down a dead-end street. Take modern semiconductors, for instance – which use 60 elements from the periodic table. No single country has all of these. In the end, everyone loses:

Products become more expensive and less innovative. And who ends up “footing the bill”? The customer, of course.

Punitive tariffs, rising regional isolation, technological decoupling:

How can we continue to succeed and stay out of geopolitics in such an environment? These are also your top issues as shareholders, which you have shared with us. Today, global reach and appeal are no longer enough. Only companies that are firmly established locally in the regions will remain “in the game”. This is becoming a condition for economic success.

Your company has built this presence in major regions of the world over decades – with production, R&D, sales and marketing and suppliers. We generate added value locally. As a result, we are one of the few truly global players in our industry today – and that gives us a real competitive advantage. Your company has already evolved to the next level, balancing sales and production within our network of global value creation. In other words: In Europe, the US and China, we sold roughly the same number of vehicles, in absolute terms, in 2024, as we produced in each of these regions: about a million cars in Europe, just under 400,000 in the US and around 700,000 in China. No one will be able to replicate this anytime soon.

Another important asset is our “local-for-local” approach, which we are systematically expanding as local supply chains and collaborations become more important. Take our assembly plants for high-voltage batteries: Five new facilities are currently under construction – all of them close to our production in Europe, the Americas and China. Here, we will manufacture the next generation of high-voltage batteries for our electric vehicles.

One of these new facilities is being built right around the corner from here, in Irlbach-Straßkirchen. Trade journal “Auto Motor and Sport” reported on this under the headline: "BMW builds faster than BYD”. You can’t put it more succinctly! In other words, “China speed” – also in Lower Bavaria.

Despite our balanced distribution of sales and production, we will continue to be a major exporter – especially from our domestic market of Germany and our “second home”, the US. 

Our roots lie in Munich and Bavaria – and origins come with a responsibility. In 2024, we produced over one million vehicles at our German plants. That’s about a quarter of the country’s total car production. More than half of these vehicles were sold outside the European Union. We are making an important contribution – in Germany and for Germany as a manufacturing location. As I said: Origins come with a responsibility.

We are carrying this principle forward with the next generation. Right now, on the plant grounds in Munich, we are building a Talent Campus. That name is a promise: a new hub for skills development, serving all 40,000 employees at the Munich location. Talents with various perspectives make us stronger and more innovative. That is, and always will be, our culture at BMW.

This year, we are celebrating “50 years of BMW North America”. I was in Spartanburg in January to receive an award from Republican Governor Henry McMaster, honouring BMW's 30-year commitment to South Carolina. Its political representatives recognise and appreciate that, without BMW, the region and the state would have taken a very different path.

The numbers speak for themselves: We provide 43,000 jobs in South Carolina – both directly and indirectly. Every second vehicle built at our Spartanburg plant is exported, generating an export value of over ten billion US dollars in 2024 alone. Once again, this made your company the largest automotive exporter in the United States by value. Over the past ten years, our total export value has exceeded 100 billion US dollars. Now, we are investing over 1.7 billion US dollars to bring Spartanburg up to speed for e-mobility. The first e-model from Spartanburg will already roll off the assembly line next year.

All these figures underline BMW’s economic impact in the United States. We are the only ones with such a extensive production in the US. Our value creation is comprehensive. These are strong arguments that will play a key role in the ongoing tariff negotiations.

Looking at the global picture: With tariffs, it’s currently everyone against everyone else. We advocate for eliminating tariffs altogether: for our industry, based on fair negotiations. That is why we had submitted a widely respected proposal some time ago, calling for a uniform tariff rate of 2.5 percent between Europe and the US. All of this clearly underlines that your company is in a very strong negotiating position – not only in the US, but across all regions. This sets BMW apart from other OEMs. We are in continuous dialogue with decision-makers everywhere: in Brussels, Berlin, Washington, D.C. and Beijing.

In the European Union, we are taking a firm stance. This includes the EU’s additional tariffs on BEV imports from China. Since October 2024, this has also impacted our electric BMW and MINI models produced in China. We are defending our position and have filed a lawsuit against the European Union, seeking a judicial review of this anti-subsidy measure.

Your company benefits from an integrated global economy. That much is certain. Our position remains unchanged: We stand for open markets and free trade. Growth thrives on openness – not isolation! Period.

My fourth point is about our future-focused project for tech leadership:

BMW is the NEUE KLASSE – and the NEUE KLASSE is BMW.

The 1960s were a long time ago. That was when the original Neue Klasse first entered the market, generating strong momentum for BMW's long-term growth. Today, once again, we are setting the course for your company’s success in the decade ahead, guided by the principle:

BMW is the NEUE KLASSE – and the NEUE KLASSE is BMW.

We do not draw a line between “old” and “new” technology worlds. Every future BMW model will benefit from our technology clusters. The new design language will also be implemented across the entire product range.

The NEUE KLASSE is a huge technology kit that enables everything else.

We are targeting economic advantages through high levels of commonality and economies of scale. Our customers get the latest technology in their vehicles – regardless of which drive train they choose. Now, bear with me, it's about to get a little bit technical: In the NEUE KLASSE, Sheer Driving Pleasure is also about software, such as our BMW Panoramic iDrive. This includes a completely new display system that projects content across the full width of the windscreen. Four high-performance computers control the most important in-car functionalities. These “super brains” deliver up to 20 times more in-vehicle computing power. We have also simplified the new electrical system, with 600 metres less wiring, reduced weight and higher energy efficiency. That’s how we do it in the NEUE KLASSE.

One of the four high-performance computers is our “Heart of Joy”. All drivetrain and driving dynamics functions are integrated into this electronic control unit. International journalists tested it on the track with our factory driver, Jens Klingmann – in our BMW Vision Driving Experience or VDX for short. This is how is went:

Movie

You can't fake that kind of emotion. That is Sheer Driving Pleasure in its purest form – taken to a whole new dimension in our BMW Vision Driving Experience. The VDX is the most powerful prototype we have ever built. Its key data are quite remarkable: 18,000 Newton meter of torque, a downforce of up to 1.2 tonnes and lateral forces of up to 3 G. That is, three times the acceleration due to gravity. These are the kinds of figures typically only seen in top-tier racing cars. We are testing the physical limits of driving. Why are we doing this? The answer is simple: A system that is capable of managing forces like these can – without question – handle everyday driving with ease.

At the Auto Shanghai in April, we took things a step further, building our own test track to showcase the VDX, complete with a massive ramp.

Movie

It was spectacular! Our VDX was a hit – and the social media reach was tremendous. Many of the technologies featured in the VDX will also be used in the NEUE KLASSE.

We are entering the home straight – and we intend to prove that to you, right here, today. For those of you here in the Olympiahalle, please remain in your seats when the vehicles make their entrance in a moment.

Driving scene

Ladies and Gentlemen, the first two production models of the NEUE KLASSE!

As you can see, they are still camouflaged – to maintain the suspense just a little bit longer. You are all “practised” BMW shareholders, so I’m sure you’ll recognise the proportions right away: This model is a sporty sedan in the current BMW 3 Series segment. The other is a typical member of the X family, our BMW iX3* – which will be the first representative of the NEUE KLASSE. You could even say it is getting its own plant, since we are producing the iX3 at our new plant in Hungary. We will be opening the Debrecen location this autumn. The sporty sedan for the NEUE KLASSE won't just simply roll off the production line either. Just a short distance from the Olympiahalle is our more than 100-year-old Munich main plant. We are completely refurbishing it for modern industrial production in the heart of the city.

The second model will ramp up there in 2026. After that, the NEUE KLASSE will be rolled out worldwide across our production network. I would like to invite you all to the IAA MOBILITY here in Munich in September for the world premiere of the BMW iX3 – without camouflage, of course, exactly as it will be available to our customers.

Dear Shareholders!

At BMW, the proverbial glass is never half-empty – it is always at least half-full. We focus on opportunities and pursue them systematically – even in an uncertain environment. BMW will turn 110 next year.

The NEUE KLASSE is just one example of how we continue to take bold, forward-looking action. The BMW way is shaped by confidence.

That’s what our “Team BMW Group” stands for at all our locations worldwide. We never rest on our laurels. Together, we will ensure that your investment remains worthwhile.

All of us at the company truly appreciate your continued support.

Thank you!

- Check against delivery –

Ladies and Gentlemen,

As a global player, the BMW Group operates within the current tensions of world politics. Like many sectors of the global economy, we are adjusting to a new reality – one in which abrupt changes in external conditions often have far-reaching consequences, not just for our industry.

In these circumstances, it is critical not to get caught up in the public frenzy or rush into hasty actions. That is why we continue to focus on our long-term strategic course with pragmatism and flexibility.

And this approach is proving its value: Despite the volatile conditions, the BMW Group has started 2025 in line with our expectations.

There are three main reasons for this:

First, our fresh and attractive product line-up across all drive technologies – which helped us achieve a robust performance, especially in Europe and the US.

Second, continued strong sales growth for our all-electric vehicles.

And, third, a high standard of cost discipline across the company.

All of this meant that, despite various influencing factors, our profitability for the first quarter was in the upper half of our guidance.

Let's take a closer look at the details:

In all major sales regions outside of China, we increased our sales, compared to the same period of last year. Excluding China, sales grew by almost six percent (5.9%).

This confirms the effectiveness not only of our product strategy, but also of our technology-open approach. Our vehicles are in demand, across all types of drivetrain.

We saw particularly good growth in Europe and the US – with sales in Europe up solidly by more than six percent and an increase of four percent in the US.

We are growing steadily across the entire Americas region, with growth of over 5 percent. We are also growing overall in our markets outside Europe, America, and China by 15 percent. Thanks to our strong performance in other markets, we were able to nearly offset the persistent challenges in the Chinese market.

We have the right products on the market at the right time. Our wide range of all-electric vehicles across all brands allows us to take full advantage of the growing demand for pure electric vehicles.

The more than 32-percent increase in BEV sales underlines the strong appeal of our electric vehicles. Above all, high demand in Europe fuelled this growth in BEVs. Here, sales of fully-electric vehicles climbed by more than 64 percent year-on-year. E-mobility “made by BMW” is also gaining popularity in the US, with sales up by more than 23 percent.

Nearly one in five vehicles sold by the BMW Group is now fully-electric.

The total share of electrified vehicles – that is, pure electric cars plus plug-in hybrids – now exceeds 25 percent.

MINI, in particular, is benefiting from the strong demand for all-electric vehicles. Today, an electric heart beats in one out of every three vehicles built by the brand. With all models of the New MINI Family now fully available, the brand recorded sales growth of four percent. In China, locally-built electric models played a key role in the brand’s growth of over 18 percent.

The share of fully-electric vehicles in total sales is especially important for meeting European CO2 targets. In 2024, the BMW Group once again significantly outperformed its European CO2 fleet target. Based on internal calculations, our numbers came in at under 100 grammes per kilometre in the WLTP cycle for the first time. We are confident that we will meet the original legal requirements this year as well.

In addition to the growth in all-electric vehicles, we also benefited from continued high demand for our sporty BMW M models – with sales up 5 percent in the first quarter. High-performance models such as the two BMW M5* variants and the BMW M3* were the main growth drivers.

Ladies and Gentlemen,

The first quarter of 2025 highlighted our company’s ability to seize opportunities in a challenging environment and to successfully defend our position in the marketplace.

Looking ahead, new orders across all drive technologies give us every reason for confidence – especially in Germany, where we are seeing significant growth.

Nevertheless, 2025 remains a year of high volatility. We are closely monitoring developments and preparing for different scenarios. This will enable us to respond flexibly and quickly to changing circumstances. We remain firmly committed to deliver robust results and to meet our ambitious annual targets.

Free trade and international cooperation are important drivers of growth and progress. They have always guided our actions. In trade conflicts, on the other hand, nobody wins. All sides should therefore avoid a spiral of isolation and trade barriers, and instead promote growth, progress and innovation worldwide.

We are advocating for this at various political levels in our markets. Thanks to our international footprint and strong, long-term commitment in various countries, we enjoy a high level of credibility. That is why people listen to us attentively and our arguments are well received.

Ladies and Gentlemen,

It is especially important in challenging times that we continually assess the situation in our markets and regions. That is why I have spent significant time in the past few months gathering information about the situation on the ground in our most important markets.

Just two weeks ago, I was at Auto Shanghai. This trade show provides a valuable indicator for current trends – especially for the Chinese market.

One of the highlights was the world premiere of our BMW Vision Driving Experience, or VDX for short. This is the most powerful development prototype BMW has ever built. The key data speaks for itself:

• 18,000 Newton meter of torque.
• 1.2 tonnes of Downforce.
• Lateral forces of up to 3 g.

These are the kind of numbers you usually only see in top-of-the-range racing cars.

The VDX is a pure test vehicle, designed to push the limits of driving physics. However, many of its technologies will be used in our NEUE KLASSE.

In particular, the VDX showcases the performance capabilities of our “Heart of Joy” – one of four high-performance computers that will control key functionalities, such as driving dynamics, automated driving and infotainment in our NEUE KLASSE.

The “Heart of Joy” clusters all drivetrain and driving dynamics functions in a single, standardised electronic control unit. In combination with our dynamic performance control system – which was developed entirely in-house – we are redefining the BMW brand’s most fundamental core characteristic.

We are creating “the next level of Sheer Driving Pleasure”.

We demonstrated exactly what this means with an incredible live performance in Shanghai. For this purpose, we built our own test track with a massive ramp.

The public and trade press were more than impressed with the performance and possibilities unleashed when we combine our decades of experience in driving dynamics with cutting-edge control technology. This is something only we at BMW can do.

Our customers will benefit directly from this – because a system that can manage forces like these can also handle everyday operations with ease: not just in terms of agility and driving stability, but also efficiency and comfort.

Towards the end of the year, series production of the NEUE KLASSE will begin at our new plant in Debrecen, Hungary – starting with the BMW iX3*, which will celebrate its world premiere at the IAA MOBILITY in Munich.

After that, the rollout will continue in rapid succession. In 2026, production of a sporty sedan at the heart of the BMW brand will get underway at our main plant in Munich.

We are deliberately launching the NEUE KLASSE in high-volume segments, so that our innovations can immediately have a broad impact.

Between now and 2027, we will release more than 40 new or updated BMW models onto the market – from BEVs, to plug-in hybrids, to vehicles with combustion engines. All of these will benefit from the technologies of the NEUE KLASSE – and, of course, from the new design language as well.

No other manufacturer has a project as comprehensive and ground-breaking as ours ready for production.

Ladies and Gentlemen,

With its broad product portfolio across all brands, its technology-open approach and highly flexible production network, the BMW Group is in an excellent position to exploit growth opportunities as they arise.

Thanks to our global footprint, we are also able to respond quickly to changes in individual regions, as well as challenges around the world.

We will continue to build on these typical BMW strengths in future.

Thank you.

- Check against delivery –

SLIDE 2: BMW Group Quarterly Statement to 31 March 2025

Ladies and Gentlemen,

Good Morning.

In a highly dynamic environment, the BMW Group has delivered sales and profitability for the first quarter in line with expectations.

Our core business has a strong foundation of highly attractive products and is well diversified. With a balanced presence in our sales regions, we have a strong competitive position and are able to deliver a consistent performance.

In the first quarter, the BMW Group proved this once again.

SLIDE 3: BMW Group Performance in Q1 2025

Let’s take a detailed look into the key figures for the first quarter.

Group earnings before tax totalled over 3.1 billion euros.

Based on Group revenues of 33.8 billion euros, this resulted in a Group EBT margin of 9.2 percent.

The EBIT margin in the Automotive segment came in at the upper end of our 2025 annual target corridor with 6.9 percent.

Excluding the depreciation resulting from the purchase price allocation of BBA, the margin was 8.1 percent.

Global retail sales decreased slightly by 1.4 percent compared to last year’s first quarter.

Sales of all-electric vehicles increased by 32.4 percent, which represents a share of 18.7 percent of total sales.

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

Here you can see how the Automotive Segment performed across key metrics.

In the first quarter, the BMW Group delivered just over 586,000 BMW, MINI and Rolls-Royce vehicles to customers, a slight decrease of 1.4 percent compared to last year’s first quarter.

While the BMW brand was slightly down 2 percent year-on-year, the MINI brand benefited from the full availability of all models and reported a growth of 4.1 percent.

Group sales grew across all regions except China.

Here, the lower run-rate of the second half of 2024 has carried over into the first quarter of 2025, as expected.

The sales development in the Chinese market in Q1 was also impacted by the model changeover of our important BMW X3 and operational challenges in certain areas of the dealer network.

In Europe, the BMW Group increased retail sales solidly by 6.2 percent.

The order intake for BMW vehicles in the region across our entire product portfolio is strong, with an order bank reaching well into the third quarter.

In particular, BEV retail sales grew by 64.2 percent in Europe, confirming the region’s crucial role in driving our electrification strategy.

In the US, year-on-year retail sales grew by 4 percent.

Our commitment to electrification remains an important cornerstone of our strategy. And the demand for our all-electric vehicles remains strong.

In the first three months, the BMW Group delivered almost 110,000 all-electric vehicles to customers worldwide, representing a significant growth of almost a third (32.4 percent).

The share of our all-electric vehicles amounted to 18.7 percent of total sales.

Our electrified vehicles – meaning BEVs and plug-in hybrids –accounted for almost 27 percent of total sales.

With our comprehensive and compelling line-up of electrified vehicles we remain confident that we will meet our CO2 emission targets in the EU for 2025.

Automotive Segment revenues amounted to 29.2 billion euros and were moderately lower than in the same quarter of 2024, mainly due to lower vehicle sales to dealers.

Segment EBIT for the first three months was 2 billion euros, with an EBIT margin of 6.9 percent.

Let’s now have a detailed look at the year-on-year changes in the operational result on the next slide.

SLIDE 5: Automotive Segment EBIT in Q1

Auto EBIT declined by around 700 million euros compared to the first quarter of 2024.

Changes in currency and raw material positions accounted for a positive impact of around 100 million euros.

The net balance of volume, model-mix and pricing effects was a headwind of 900 million euros compared to the first quarter of 2024.

The pricing headwind compared to Q1 2024 reflects the global price environment and especially the challenges of the highly competitive Chinese market.

In China, the price levels of the second half of 2024 continued into the first quarter, as expected.

Accordingly, Q1 revenues per vehicle in the Automotive segment were below the level of Q1 2024.

For the full year, they are expected to be in line with last year’s level.

Ladies and Gentlemen,

I emphasized at our Annual Conference that for the year 2025, not only R&D expenditure and capex, but also operational costs will decrease compared to 2024.

Our Q1 results provide first evidence for this cost decrease in nominal terms, covering the effects of inflation.

Research and development expenses were around 200 million euros lower than in Q1 2024.

Based on Group R&D expenditure, the R&D ratio according to the German Commercial Code came in at 5.9 percent.

Sales and administrative expenses also decreased year-on-year by about 200 million euros, mainly due to lower IT costs.

In Other Cost Changes, the headwind of 300 million euros essentially results from two topics:

• The income from the resale of end-of-lease vehicles was lower than in the first quarter of 2024, yet remains positive on average across the portfolio.
• The anti-subsidy tariffs imposed by the EU Commission on electrified vehicles from China impacted EBIT in the low three-digit million euros range in Q1.

The other tariff increases only started to come into effect from early March and therefore had minimal impact on the Q1 results.

SLIDE 6: Automotive Segment Free Cash Flow in Q1

Free cashflow in the Automotive Segment totalled about 400 million euros in the first quarter of 2025.

Segment EBT amounted to 1.9 billion euros, which is 800 million euros lower than in the first three months of 2024.

The net change in working capital contributed around 100 million euros to free cashflow.

Inventories rose during the first quarter, as production exceeded retail sales and wholesale volumes.

While this is typical first quarter seasonality, this year’s Q1 stock increase is much less pronounced than in previous years.

The impact of increased inventories as well as of higher trade receivables was compensated by the development of trade payables, which increased also due to higher production levels.

The net effect from capital expenditure and depreciation reduced free cashflow by 600 million euros.

This includes a positive component with invest lower than depreciation in the first quarter.

On the other hand, it also incorporates a higher cash outflow of 964 million euros in Q1, which is related to the capex peak in the last quarter of 2024.

Capital expenditure for January to March amounted to around 1.2 billion euros, a year-on year reduction of around 100 million euros.

The capex ratio for the first quarter was 3.6 percent.

For the full year 2025, capex will decrease compared to 2024, with an expected capex ratio below 6 percent.

The development of provisions reduced free cash flow by 200 million euros.

The change in the position other, which includes regular tax payments, led to a reduction in free cashflow of around 800 million euros.

For the full year, the BMW Group is targeting a free cashflow above 5 billion euros in the Automotive segment.

At the end of the first quarter, the Automotive net financial assets came in at 45.5 billion euros, which is around the same level as at the end of 2024.

This provides a solid foundation to navigate the current challenges in global markets.

And it enables us to distribute our Automotive Free Cashflow via dividends and share buybacks.

Ladies and Gentlemen,

The BMW Group remains committed to its shareholder return strategy, which includes both dividend payments and share buybacks.

On April 3rd, we successfully concluded the fourth and final tranche of our second share buyback program.

With completion of this program, we have repurchased shares valued at 4 billion euros since the start of our share-buyback authorization in 2022.

This corresponds to a reduction in share capital of over 7 percent.

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

SLIDE 7: Financial Services Segment in Q1

Moving on to the Financial Services Segment.

The number of new contracts concluded with retail customers decreased slightly by 4.6 percent year-on-year to reach almost 403,000 contracts.

For new vehicles, new business units were on par with last year’s quarter.

Consequently, the penetration rate for lease and loan offerings increased by 1.2 percentage points to 43 percent.

For used vehicles, new business units decreased moderately, due to the lower number of end-of-lease vehicles that were returned compared to the first quarter of 2024.

New business volume grew by 2.4 percent to 16 billion euros, driven by a higher average financing amount per contract.

Segment earnings for the first quarter amounted to 650 million euros, a year-on-year decrease of 80 million euros.

This results mainly from two factors:

• The lower income from the resale of end-of-lease vehicles due to reduced average gains per unit.
• And the lower number of returned vehicles compared to 2024.

The credit loss ratio across the entire loan portfolio remained at a low rate of 0.23 percent.

SLIDE 8: Motorcycles Segment in Q1

In the Motorcycles Segment, first-quarter deliveries decreased slightly by 3.9 percent year-on-year.

EBIT for the first three months totalled 76 million euros, with an EBIT margin of 9.4 percent.

SLIDE 9: Outlook 2025

Ladies and Gentlemen,

Let’s move to our outlook for 2025.

Our guidance given at the Annual Conference on March 14th included all the tariff increases in force as of March 12th.

Since then, political and macroeconomic volatility has increased even further.

Due to ongoing developments and negotiations, the expected effects from tariffs on 2025 results can only be estimated based on certain assumptions.

So, we have taken the latest impact as of May 5^th, meaning tariffs on US imports of CBU (= completely built up) and non-USMCA components at an additional 25%. But on the other hand, the executive order from last week regarding non-stacking and the eligibility of 3.75% of MSRP for the Spartanburg production volume has some positive impact, given our strong local footprint in the US.

And the extremely high tariffs for imports from the US to China are neglectable, given we also have a strong local footprint in China.

In particular, the localization of the X5 in 2022 helps mitigating.

And still, the tariff increases that started to come into effect from early March will have a notable impact on the Q2 results.

We assume that some of the tariff increases as of May 5th or up to May 5th will be temporary and that there will be reductions from July 2025.

Our guidance also includes measures to mitigate the impact of higher tariffs.

Based on these assumptions, our guidance parameters for the full year remain unchanged.

Group earnings before tax are expected to be at previous year’s level.

In the Automotive segment, we are forecasting a slight increase in deliveries.

The EBIT margin is expected 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 are targeting a Return on Equity (RoE) in the range of 13 to 16 percent for the full year.

SLIDE 10: Q1 Performance in Line with Expectations

Ladies and Gentlemen,

The BMW Group delivered as expected in the first quarter with an EBIT margin at the upper end of our full-year target corridor.

The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before.

We are closely monitoring the impact of the current macroeconomic conditions on consumer sentiment.

It is therefore all the more important that we continue to follow our long-term strategic plan.

This includes using the flexibility of our global network to mitigate the impact of the current developments.

And it includes disciplined spending – be it R&D, capex or operating costs.

As we walk the talk, nominal cost reductions are already visible in our Q1 figures.

Our clear long-term strategy, our strong brands and products and the high level of cost discipline throughout our entire organisation remain the basis for our long-term financial success.

Thank you.

- Check against delivery –
 
Statement
Oliver Zipse
Chairman of the Board of Management of BMW AG
Annual Conference 2025
BMW Welt in Munich, 14 March 2025, 08:00 a.m. CET
 
Part I:
 
Good Morning, Ladies and Gentlemen.
 
Welcome to our annual conference.
 
2025 will be a milestone year for the BMW Group in many respects – as we set the course today for our success in the decade to come.
 
Despite volatile global conditions, we remain firmly committed to growth in the current financial year. At the same time, we are bringing our largest future-focused project, the NEUE KLASSE, to the roads.
 
We have a clear plan: We remain sharply focused on innovation and sustainable growth. In 2025, we expect sales figures to rise once again. At the same time capital expenditure will decrease, as planned. This will enable us to increase our free cash flow.
 
There are four reasons for our confidence:
 
 
First:
Our strategy is robust and gives us a clear path forward. We are setting the pace in key areas. Our technology open approach remains successful and is gaining more traction. Policymakers and competitors are pivoting in our direction – which we continue to pursue systematically.
 
Second:
The BMW Group is one of our industry’s few true global players. Our extensive global footprint creates opportunities. It makes us resilient. And it provides the flexibility we need to respond effectively to external influences.
 
Third:
With BMW, MINI, Rolls-Royce and BMW Motorrad, we have four strong brands. All of them are incredibly popular around the globe. Each has its own distinct identity and delivers emotionally compelling products for different target groups.
 
And fourth:
Our NEUE KLASSE: No other manufacturer has a project as ambitious and ground-breaking as ours about to enter production. I will come to this in the second part of my presentation.
 
Let's start with the first topic: our strategic direction.
Our technology-open approach is market-oriented. It allows us to fully leverage the available potential across all markets and regions.
 
We make no distinctions – whether we are talking about combustion engines, plug-in hybrids, all-electric vehicles or, from 2028, a hydrogen-powered car. We consistently implement design principles, innovation and the latest technologies in all our vehicles.
 
No one masters this technological diversity better than we do. Numerous national and international accolades confirm this.
 
Our approach is also gaining increasing recognition in political circles. Even our competitors are pivoting towards our strategy. We have proven that technological openness, growth and CO₂ reduction are very much compatible.
 
Let’s take a look at 2024:
 
We met our adjusted targets for the year. We delivered more than 2.45 million vehicles and achieved an EBIT margin of 6.3 percent in the Automotive Segment.
 
Our vehicles with highly efficient combustion engines remain in strong demand worldwide. At the same time, battery-electric vehicles continue to be our main growth driver.
 
Several other manufacturers – including some that only produce electric cars – saw a decline in sales. But we achieved growth with our all-electric vehicles. Even in challenging market conditions. In 2024, BEV sales once again climbed significantly year-on-year – increasing by more than 13 percent.
 
Fully-electric vehicles accounted for over 17 percent of total sales last year. Including plug-in hybrids, nearly one in four vehicles sold was electrified.
 
We are targeting further growth in e-mobility in 2025. We will hit two major milestones this year: We will reach the total of more than three million electrified vehicles and over 1.5 million BEVs sold since the launch of the BMW i3 and BMW i8.
 
Our customers can choose between over 15 BEVs across all our brands. One example is the new edition of the BMW iX*: The recently presented model update boasts an impressive electric range of over 700 kilometres in the WLTP cycle – with significantly more drive power.
 
That is BMW EfficientDynamics.
Our combination of electrified vehicles and highly efficient combustion engines also has a positive impact on our climate footprint. In 2024, the BMW Group once again outperformed its European CO2 fleet target – by more than 30 grammes. Based on our internal calculations, our fleet emissions fell below 100 grammes per kilometre in the WLTP cycle for the first time.
 
We will continue to ensure that our customers always have access to the latest technology – across all drivetrains. The key to achieving this lies in our production network’s high level of flexibility.
 
That brings me to my second point:
our global footprint.
 
The BMW Group is a true global player. Very few automotive manufacturers have such a comprehensive presence across all relevant economic regions as we do. Be it in sales, research and development, production or our supplier network. This combination gives us a strategic advantage that sets us apart from the competition in an increasingly fragmented world.
 
We remain committed to expanding our local for local approach. We are constantly improving our access to different market regions and strengthening our resilience, especially along supply chains.
One example of this is our high-voltage battery assembly plants in the three major sales regions: Europe, the Americas and China. In total, five new assembly facilities for the next generation of high-voltage batteries are being built near our production sites worldwide – complete with a local supplier network. In this way, we are already creating the necessary conditions today for successful growth in the future.
 
We are gradually adapting our production network to rising sales of electric vehicles. Late this year, our new plant in Debrecen, Hungary will become our first facility to exclusively produce all-electric vehicles. Our main plant in Munich will follow in 2027.
 
Our production follows the market and our product range aligns with demand. We build roughly the same number of vehicles in our three key market regions of Europe, the US and China as we sell there. This balanced distribution is another key differentiator for the BMW Group.
 
At the same time, Germany and the US serve as key export hubs for us. In 2024, we manufactured over one million vehicles at our plants in Germany. This represents about a quarter of the country’s total car production. 56 percent of these vehicles are then exported outside the European Union.
An impressive proof of the BMW Group's significant contribution to industrial value creation in Germany.
 
In the US, one out of every two vehicles from our Plant in Spartanburg, South Carolina, is exported. Last year, we achieved an export value of over 10 billion US dollars. This once again makes the BMW Group the largest automotive exporter in the United States by value. We benefit from an integrated global economy. That is why we continue to advocate for open markets and free trade.
 
Third point: the performance of our brands.
 
The success of the BMW Group is built on the global appeal and resonance of our four brands. At the same time, we know how to fulfil the specific needs and preferences of our customers in different markets with our products.
 
Last year, our core BMW brand leveraged its strength to the full: In three out of four regions, BMW grew sales and gained market share. This has enabled BMW to maintain its number one position in the global premium segment.
 
BMW performed particularly well in Europe. Italy, Spain, France and the UK led the way, with all reporting double-digit growth rates.
With a six-percent increase, the brand significantly outperformed the overall European market, which only grew by just over one percent.
 
In the US market, we achieved record sales for the second consecutive year. Here, too, the strength of our market-driven approach to drivetrains is delivering results. Thanks to our steadily growing BEV portfolio, we sold more than 50,000 electric vehicles in the US for the first time. With this momentum, we are optimistic about the year ahead, as we celebrate “50 years of BMW North America”.
 
In our markets outside the main sales regions, we also posted growth, in a declining environment overall. In this region, we lead the premium segment in total for the first time ever. The main growth drivers here included the South Korean, Australian and Indian markets.
 
China remains a key market for the BMW Group. In 2024, we sold more than a quarter of all our vehicles there. The market is highly dynamic and characterised by increased competitive pressure. In this environment, BMW maintained nonetheless its position as the number one in its segment with a market share of three per cent. This put us within our target range.
 
In 2024, we delivered over 100,000 BEVs to customers in China for the first time. This makes China our biggest single market for electric vehicles – even though our sales performance there was dampened last year by persistently low consumer sentiment.
 
The high-margin vehicles built by BMW M once again played an important role in our market success in 2024. For the 13th consecutive year, M sales increased. Nearly one in ten BMWs sold carried the letter M. Demand for the sportiest BMW models has continued to grow, especially in China.


2025 is the first year with the complete New MINI Family available. And we will exploit this potential.
 
There are a total of five unique models to choose from – three of them BEVs. The fully-electric MINI models – with the MINI Cooper Electric* leading the way – are being particularly well received. With an increase of 24 percent year-on-year, sales of MINI BEVs also saw highly dynamic growth last year. Nearly one in four MINIs is now powered by an electric heart.
 
In the ultra-luxury segment, Rolls-Royce continues to set the benchmark. At more than 5,700 units, Rolls-Royce sales remain high.
Most notably, the all-electric Spectre exceeded expectations in its first full year of sales. Every third Rolls-Royce sold is now fully-electric.
 
BMW Motorrad also impressed in 2024, achieving a new all-time sales high of over 210,000 units. BMW Motorrad remains the undisputed number one in the global premium motorcycle segment.
 
Ladies and Gentlemen,
 
All of this shows that the BMW Group is well positioned across all brands, drive technologies and segments to continue on its growth path. With our global approach, we have the right answers to challenges worldwide. This has often enabled us to offset fluctuations in demand in individual markets.
 
Now, it is time for Walter Mertl to present the Group Financial Statements for 2024 and look ahead to our goals for 2025.

 
Part II:
 
Ladies and Gentlemen,
 
Growth and innovation – these are two of the main topics we will be focusing on this year. At the same time, we stand on the threshold of a new era.
 
Late this year, we will launch our NEUE KLASSE: a project that is unprecedented in both form and significance in the history of the BMW Group.
 
With the NEUE KLASSE, we will be turning the mobility of the future into reality. Driving dynamics, drivetrain, battery technology, operating concept, digitalisation: We have refined each of these aspects and, in the case of design, even skipped a generation.
 
In this way, we are redefining not only the BMW brand, but also the future of individual mobility.
 
Standing here next to me is the BMW Vision Neue Klasse X: the series version of this vehicle will kick off the NEUE KLASSE. Production will ramp up at our new plant in Debrecen late this year.
After that, the rollout will continue in rapid succession, including a sporty sedan at the core of the BMW brand in 2026.
 
We are deliberately starting out in high-volume segments: We want our innovations to have a broad impact, not just in niche segments.
 
Between now and 2027, we will release more than 40 new or updated BMW models onto the market – from electric to plug-in hybrid to vehicles with combustion engines. Each will have the DNA of the NEUE KLASSE.
 
The NEUE KLASSE is BMW and BMW is the NEUE KLASSE.
 
The NEUE KLASSE is more than just a single vehicle. It marks the beginning of a completely new generation and introduces our technology boosters for the entire brand. Regardless of the drive technology, all future BMW models will benefit from the technologies of the NEUE KLASSE – and, of course, also from the new design language.
 
Allow me to share a few examples of our groundbreaking advances in technology:
 
With the BMW Panoramic iDrive, we are re-imagining our typical BMW driver orientation. The all new BMW Panoramic Vision is the centrepiece. This newly-developed additional Head-Up Display projects content across the full width of the windscreen.
 
Seamless integration of various display and operating elements enables a completely new level of intuitive interaction. From the launch of the very first model of the NEUE KLASSE, all future BMW models will come with BMW Panoramic iDrive.
 
The sixth generation of our BMW eDrive technology will make e-mobility even more appealing to our customers. The new BMW round cells promise 20 percent higher energy density, 30 percent faster charging and at least 30 percent more range. And within just 10 minutes, enough energy for another 300 kilometres can be recharged.
 
For the first time, the Gen6 high-voltage batteries also feature the latest 800-volt technology and enable bi-directional charging. Compared to the current fifth generation, we will reduce the cost of the high voltage battery by 40-50 percent, on a comparable electric range basis.
 
The electronics architecture has also been completely redesigned. Going forward, its four high-performance computers will control key customer functionalities. For example driving dynamics, automated driving and infotainment.
 
These “super-brains” deliver more than 20 times the in-vehicle computing power than current systems. This makes our models future-proof for software and function updates, as well as new AI features.
 
We have also greatly simplified the electrical system, dividing it into four zones, with intelligent control. 600 metres less wiring, a 30 percent reduction in weight and a 20 percent increase in energy efficiency are just some of the improvements we will achieve with this.
 
And, of course, we are also harnessing technical opportunities to take driving dynamics to a whole new level.
 
The BMW Vision Driving Experience showcases the potential of the technologies introduced in the NEUE KLASSE. We are pushing driving dynamics to its physical limits.
 
This highly emotional driving machine will thrill more than just BMW fans.
 
The VDX is the most powerful development prototype BMW has ever built. We are using it to test our “Heart of Joy” – one of the four super-brains in the NEUE KLASSE.
 
We developed the software for the driving dynamics control system entirely in-house. This will be used in all future electric BMW models, setting new standards for dynamic performance and efficiency.
 
It is hard to put into words exactly how it feels behind the wheel. You simply have to experience it.
 
Take a look for yourselves at what our “Heart of Joy” can do, paired with a maximum torque of 18,000 Newton meters.
 
You can't fake that kind of enthusiasm. Our Board of Management already had the chance to drive the series version of the NEUE KLASSE. Let me tell you: We were all equally excited about the driving experience – but not just in terms of pushing the physical limits. Most importantly, we were deeply impressed by the added value our technologies create for our customers in everyday situations.
 
This is truly the next level of Sheer Driving Pleasure.

Ladies and Gentlemen,
 
We first announced the NEUE KLASSE at our Annual Conference back in 2021. Today, just four years later, we are entering the final stretch.
 
Standing next to me is one of the prototype vehicles we have been producing in Debrecen since late last year.
 
What is still hidden under camouflage foil here will be unveiled at the IAA MOBILITY in Munich in early September. There we will present the production model that will be available to our customers.
 
I can already reveal one key detail to you today: this BMW will be released onto the market as the BMW iX3. This is how we continue the success story of the first all-electric BMW X model that has won over BMW fans worldwide since 2020.
 
Testing of the BMW iX3 is in full swing.
 
These impressions show that the next BMW iX3 is a typical X model, and a BMW through and through. As I’m sure you saw at the end of the film: The final phase of development for the sporty sedan, the second NEUE KLASSE vehicle, is also progressing rapidly.
Ladies and Gentlemen,
 
What has always set the BMW Group apart is that we keep our sights set on operational performance in the here and now. At the same time, we lay the foundation for our long-term future success.
 
We will continue to consistently pursue our BMW path – with foresight, customer focus, self-confidence and in the knowledge of our strengths.
 
We are ready. More than ever.
 
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.

- 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 –

Strong today – Strong tomorrow.
Our BMW way into the future

Dear Shareholders!

A warm welcome from BMW Welt in Munich. A lot of people talk about the transformation of mobility and the automotive industry – how one will replace the other. At BMW, we do things a little differently. We call it: continuous progress. 

Becoming a little bit better every day – that is what we aspire to. And what I, myself, am measured against. Never being satisfied with the status quo brings us closer to our ambitious goals. Step by step. Or, more fittingly, when talking about cars: mile by mile. That may sound very grounded and methodical, but it certainly yields highly effective results.

We always look to the future. That is part of BMW's vast array of experience. It gives us strength and empowers us, time and again, to take bold action: We know what we are capable of! That is why BMW is still here after 108 years. 

The film showed our Board of Management – but we are only as good as our global team. Together, we bring our combined know-how to the roads – in a very literal sense. There are currently more than 150,000 of us worldwide – representing nearly every nationality there is, united by the BMW Spirit. In autumn of last year, we surveyed all our associates around the world: 85 percent said they fully support the company’s goals and strategy. And even 93 percent are proud to work for the BMW Group.

What a boost for us!

We are mobilising them all for the next massive leap, because your company is once again reinventing itself – at precisely the right time.

You, too, my dear shareholders, are part of our BMW team. Your support for our direction gives us the momentum and latitude we need to make decisions with a long-term perspective. This traces back to legendary entrepreneur Herbert Quandt. What a legacy! The next generation is carrying forward that legacy – much like we do at the company.

We always base our strategic decisions on facts and informed analysis. This certainly requires experience and, sometimes, plain common sense, as well. This makes your company robust and ensures that we remain composed in a turbulent environment. All of this comes together in the BMW way. This approach guarantees that the following always holds true for your company:

“Strong today – strong tomorrow”.

For financial year 2023: Should you approve our proposed dividend, you will receive a payout equivalent to 33.7 percent of our unappropriated profit. During the financial year, we had revised our guidance upwards. At year-end we met all our targets. We posted solid growth in sales, reaching a new all-time high of more than 2.55 million vehicles. In fact, we are the only German OEM to have regained our pre-pandemic level.

Our Group EBT margin of 11 percent came in higher than our strategic target of 10 percent. We are consistently performing at a high level, as confirmed by our EBIT margin in the Automotive Segment, which has been within our defined target range of eight to ten percent for the past nine quarters, including the first quarter of 2024.

This allows us to continue to make substantial investments.

Our capital expenditure, as well as our research and development spending, will peak this year. We will once again be making major investments – because our actions are always geared towards the future.

Individual mobility offers tremendous potential for profitable growth and gaining market share.

Today, let's take a look at how we continue to forge our BMW way –
in four chapters.

1. Future to the max: Turning visions into reality.
2. Following our own convictions: Technology openness is effective.
3. Global success today means acting regionally.
4. The car as digital companion: We are making mobility more human, more intelligent and more sustainable.

These focal points also shed light on the topics you requested through the shareholder portal.

Turning visions into reality.

This is the first topic I would like to talk about today.

What you see right here is nothing less than the future: pure BMW – taken to a whole new level. This is where all the big topics of future mobility come together: Electric. Fully digitalised. Sustainable.

For now, they are still Vision Vehicles – but they will be on the roads in a very similar form very soon. Last year, I promised you a new Vision Vehicle, which we then unveiled at the IAA MOBILITY. The BMW Vision Neue Klasse celebrated its premiere here in Munich. You’ll see right away that it’s a sporty sedan.

No other car at the IAA received as much media coverage and positive feedback – which is just one more reason to bring along another highlight for you today: The BMW Vision Neue Klasse X – a car that very clearly reimagines the BMW X philosophy in a totally new way.

Both vehicles will compete in high-volume segments – because we want our innovations to have a broad impact, not just in niche segments. Both vehicles underline that the NEUE KLASSE is consistent and broad at the same time.

Consistent – in terms of design, technology and sustainability. Broad – with respect to the other models that will follow.

These are the two bookends of the NEUE KLASSE – with lots of room in-between that we intend to exploit. And we deliver on our promises:

Within 24 months of the start of production, there will be at least six different models on the market.

Our industry has never seen speed quite like this before – but if anyone can do it, then it’s us at BMW. We are picking up the pace on a massive scale.

Our new plant in Debrecen, Hungary, will lead the way, with the launch of the first X model in late 2025. This will continue seamlessly in 2026 with the Sedan at our main plant in Munich, as well as Plant Shenyang in China. In 2027, the NEUE KLASSE will also ramp up in San Luis Potosí, Mexico.

Our customers ask: How far can I drive on electric power? How quickly can I charge my car?

We are able to tell them: at least 30 percent farther and 30 percent faster. In practice, this means that: It only takes ten minutes to charge your car for a 300-kilometre trip – hardly enough time to grab a coffee!

This is possible thanks to the new sixth-generation round cells.  We are using them for the first time in the NEUE KLASSE – which means you can look forward to an even higher-level “BMW driving experience”.

What might look like a Playstation is actually four super-brains, each integrating several highly intelligent control units. This opens up new possibilities – from powertrain and driving dynamics, to automated driving, to how we interact with our cars.

The most important aspect for our customers is: What does the NEUE KLASSE feel like on the road? The Board of Management already had the chance to drive the pre-series – and, believe me, it gave us goosebumps.

The magnitude of the technological wave we are unleashing becomes even clearer when you realise:

The innovations of the NEUE KLASSE will be incorporated into all BMW models in the coming years, regardless of their drive technology. In simple terms: Soon, all BMW technology will be NEUE KLASSE. The NEUE KLASSE is set to become our innovation and technology booster for all future areas of activity, including design.

We aren’t just taking mobility to a new level; the BMW Group is also becoming a NEW company. I believe this is entirely in your interest as our shareholders.

My second topic for today reflects our belief in the effectiveness of technology openness.

The heart of the NEUE KLASSE is electric – running on its own, new architecture. If demand for electric vehicles continues to grow as forecast, we will be able to leverage corresponding economies of scale.

But the world is a big place – which is why we continue to serve all markets with premium products. With us, everyone can find the right drivetrain to suit their needs. Anything else would be unwise from a business perspective.

Using technology clusters and modules enables us to be highly flexible. Think of it like this: We can roll out innovations and technological advances across all architectures and segments, and scale them efficiently.

We don’t distinguish between “old” and “new” vehicles – instead, we deliver cutting-edge technology across all areas. And, moreover, we offer the best overall package. This is what we aspire to – and it is perhaps the underlying secret of your company’s success.

Let me give you a current example: Following on from the new BMW 5 Series Sedan, the new BMW 5 Series Touring also comes in four drive technologies. The BMW i5* is all-electric, with an impressive everyday range of over 500 kilometres.

Plug-in hybrids also remain extremely popular. For the new BMW 5 Series, the PHEV variant could account for about 20 percent of our sales in Europe.

This shows we are right on track with our ten attractive PHEV models. And of course, the new 5 Series is also well received as a highly efficient combustion engine.

Focused technology openness is not something that is achieved overnight. You know my position: Building cars is a highly complex task. New market players are realising this too.

It is a strength of your company – and I believe it is also a unique selling point: The ability to master this complexity, seamlessly, and to effectively orchestrate, scale and further develop technologies.

Our sales figures confirm this: BMW is maintaining its leading position in the global premium segment. Our strongest growth last year came from the upper premium and luxury class, as well as our all-electric models, or BEVs for short. We delivered over 375,000 BEVs to customers in 2023 – an increase of almost 75 percent over the previous year. 

This dynamism is also reflected in our share of the global BEV market: At 4.1 percent, it is already significantly higher than our share of the total global market, which remains stable at 3.3 percent.

Demand for BEVs will continue to climb – although not in a linear fashion; it will be dynamic and market-specific. We reiterate this time and again – and it holds true in multiple markets.

We see e-mobility as the fastest-growing drive technology – today and in the future. By 2030, all-electric vehicles should account for about half of our deliveries. We remain committed to this goal and are steering the ramp-up in line with demand. We will stay flexible – even well into the 2030s.

We are aligning our strategic planning accordingly – and enabling our architectures. In this way, we can respond quickly at all times. More than 15 BEV models will be available this year across all BMW Group brands.

Here, you can see the MINI Aceman*.

In April, it celebrated its world premiere at AUTO CHINA. The Aceman is offered exclusively as a all-electric vehicle.

It fills the gap between the Cooper* and the Countryman*, which has now grown significantly in size. The new Cooper is already sold out – at least for the next four months. The only thing missing is the new MINI Convertible, which will be released in the second half of the year.

Together, these models form the NEW MINI Family, which is effectively the counterpart to the NEUE KLASSE at BMW: MINI's leap into the future.

And: We produce the New MINI Family worldwide: at our Spotlight joint venture in China; in Oxford, in the UK; and, for the first time, also in Germany, at Plant Leipzig.

We talked about bookends earlier. Now, with our brands, let's jump from MINI go-kart feeling to our luxury brand, Rolls-Royce. Spectre* certainly hit the ground running. What a phenomenal start! 

In the first quarter of this year, this model alone accounted for 38 percent of Rolls-Royce deliveries. That is how we do e-mobility in the luxury class. Spectre glides along effortlessly, like a flying carpet. Our luxury brand's vehicles have never been as compelling and as differentiated as they are today. And let’s not forget that they also earn a significant contribution margin for the company.

BMW Motorrad is also reporting profitable growth, having celebrated its centenary in September. German Chancellor Olaf Scholz attended the anniversary celebrations at Plant Berlin-Spandau.

We shared two major milestones with him:

First, the inauguration of the new “BMW Motorrad Welt”. What BMW Welt in Munich is to cars, we now also have in Berlin for our two-wheeled vehicles. Second, the world premiere of the R 1300 GS. Many people – myself included, as a motorcycle enthusiast – have been eagerly awaiting the next-generation GS. The trade press was practically euphoric about it.

For those who prefer an electric ride in the city, BMW Motorrad’s second electric model, the CE 02, is perfect.

Our core BMW brand also has a slew of upcoming, exciting vehicles, with 14 launches and numerous model variants this year alone.

The BMW 1 Series will be released onto the market in the compact class.

And we will launch the new BMW X3 – one of our most popular models overall. The new X3 will be available with a highly-efficient combustion engine and as a plug-in hybrid variant.

We recently presented our new and future vehicles to our retailers, including 1,500 retailers from all over Europe in Amsterdam. We did the same in Las Vegas for over 1,000 dealers from the Americas region. I got the sense at both events that our retailers are genuinely excited about what is to come.

Especially for Europe, I have to stress: The retailers will remain by our side in the new sales system – that won’t change. We are already using direct sales for MINI in China and reporting positive experiences in the first European countries. We will be transitioning the BMW brand to the new direct and fully digitalized sales model in Europe from 2026, as planned.

You, our shareholders, also wanted to know:

How are we progressing with hydrogen?

Our BMW iX5 Hydrogen* is currently on a world tour, undergoing real-life testing. It is very well received, everywhere it goes. Our pilot fleet is raising awareness of hydrogen's role in the energy transition – both for mobility and across industries. You rightly expect us to meet the European Union's CO₂ requirements.

In 2023, the BMW Group significantly outperformed the CO₂ fleet limit set for us by the EU by more than 20 percent. This year, we expect to see another slight reduction, with all brands and drivetrain variants contributing.

Technology-centric, with a clear focus on e-mobility – we are always consistent in our actions: This is how we are reshaping perception of your company.

What the New York Times writes is precisely researched.

In March, the New York Times praised our drivetrain strategy as far-sighted and consistent. It described BMW as a “winner in electric vehicles” – and Tesla's only serious competitor. We can certainly live with that. People expect us to consider things carefully and come up with practical solutions – because we consistently demonstrate our ability to do so.

In part three, I’ll look at the reasons for our global success – which, now, more than ever, requires us to act regionally. If you look closely, your company stands out as one of the automotive industry's few “truly” global manufacturers.

Something like this has to grow systematically – and we have been expanding our footprint for this purpose over the decades.

Let me give you three examples:

China – our biggest single market; Europe – our most important sales region; the US – our “second home”:

First: China, where we employ about a fifth of our workforce. It is – after Germany – our second-largest R&D location. BMW enjoys a high level of trust there – and not just among our own customers. We are highly regarded as a company, because we enter into serious, long-term commitments.

This year, we are celebrating 30 years “at home in China” and more than two decades of commitment in Shenyang.

In April, we signed a new investment agreement with Liaoning Province, worth 20 billion renminbi or 2.5 billion euros. The Shenyang production site of our BBA joint venture is transforming into a BMW iFACTORY.

Also in April, I was part of German Chancellor Scholz's economic delegation to China. Shortly after that, I was in Beijing at AUTO CHINA, where Prime Minister Li Qiang visited precisely one non-Chinese manufacturer – and that was the BMW Group.

A phrase I hear a lot in China is “China speed”. This is a dynamic country – and we are picking up the pace to keep up: Just last week, our six-millionth vehicle produced in Shenyang since 2003 rolled off the assembly line. We only reached the five million mark about a year earlier. This means we turned out one million vehicles in just 15 months – that is true “China speed”.

Second: Europe.

We sell nearly a third of all our vehicles in the European Union, where we operate ten plants and maintain a broad supplier base. We all benefit from a united Europe – every single day – and should channel all our collective efforts into preserving it.

BMW maintains a global outlook. This is something the chair of the General Works Council and I have reiterated. We urge our associates to pay close attention whenever seemingly simple solutions are proposed for complicated issues.

Enjoying democracy means living democracy – and that includes participation, exercising your right to vote and raising your voice to stand up for democracy. That is why we have asked everyone to vote on June 9.

What applies to Europe, applies even more to Germany: We need the best minds – and the smartest minds think very carefully about where they want to go. That is why we support the “We stand for values” initiative.

In Germany, we have many debates about emotionally charged trigger points. There is broad consensus on meta-topics. This is how sociologist Steffen Mau describes it. His latest study comes to the conclusion: We are not a divided society.

As a result, we shouldn’t speak ill of our country and Germany as a location, but leverage our potential. I can only agree with that.

Third: the USA.

We refer to the US as our “second home”. Next year will be our 50th year in the United States.
In 2023, your company was once again one of the largest net exporters of vehicles from the US by value. Germany is the only place where we have a higher purchasing volume than the US, which currently totals 6.7 billion euros annually.

For over 25 years, we have been a local partner – particularly in South Carolina. Today, Spartanburg is our largest plant – and the whole of the surrounding region has grown with us.

China, Europe and the US: Three examples of how our local presence forges close ties with the regions and markets.

We are living proof that everyone benefits when people work together. That is also one of the reasons why your company continued to grow in all major regions of the world in 2023.

We do business around the globe – and benefit from an integrated global economy.

Now, our global world order is evolving – from a “unipolar world” to a “multi-polar world”, especially in the last 10-15 years. Authors like Carlo Masala talk about the highly integrated and largely self-sufficient economic areas now emerging. We remain committed to open markets and free trade.

I also say this with a view to the European Union's current deliberations over Chinese imports of electric cars. A 360-degree perspective would be better: 20 percent of all BEVs sold in Europe last year came from China; well over half were western brands, including BMW.

Protectionism triggers a spiral effect: Tariffs lead to new tariffs, with protectionism rather than cooperation.

My over 30 years of experience at BMW suggest that solutions come about when we reach out to one another – and when we are prepared to make compromises ourselves.

That is how we build a consensus that makes us stronger as a society and an economy and enables us to take action.

You are justified in asking how your company secures access to diversified, fragmented markets.

The answer is: by continuing to invest at local level. Also, by finding local solutions and partners for the upstream value chain.

“Local for local” is our recipe for success – and we are now applying this same principle to producing cells for the batteries needed for e-mobility.

Who has control over technological expertise and urgently needed raw materials? That is what decides the competitiveness of companies and economic areas. We locate production facilities for BMW high-voltage batteries close to our vehicle plants – in Hungary, the US and China. Just a few days ago, we laid the foundation stone for the high-voltage battery assembly in San Luis Potosí, Mexico.

The benefits for us are clear: Short transport distances and supply stability in the event of unforeseen events around the globe.

And to get really local: Have you heard of Irlbach-Straßkirchen in Lower Bavaria? It will supply Gen6 batteries for our plants in Bavaria from 2026 onwards. The process wasn’t entirely straightforward. Residents wanted to know: What are the benefits for our region? We engaged in in-depth discussions with them to build trust. Ultimately, an overwhelming majority voted in favour of the new BMW location.

As you can see: Global only works at local level – and this also applies to our supply chains.

We have learned in recent years how vulnerable and susceptible to disruption they can be. Take a guess: How many parts do you think our plants worldwide need to be supplied with every day? The answer is:
36 million. The right quantities have to be in the right place, at the right time, in the best quality.

Our digitalised “i Supply Chain” strategy ensures resilient supply chains.

Our “RiskHub” uses AI and data analytics to identify quality issues in the supplier network early. We also adopt a proactive approach to avoid supply bottlenecks.

You might already have heard of Catena-X. There’s tremendous potential here: Automotive manufacturers, suppliers and, soon, recyclers, are creating a shared data ecosystem that makes sprawling supply chains transparent and allows us to track the carbon footprint of individual components. The type, quantity and source of the raw materials installed can also be digitally documented, allowing us to “trace” them.

And we are about to embark on a pilot project: Plant Landshut produces the kidney grille for the BMW iX* – one component made of many individual components. We will be using data from Catena-X to measure the total carbon footprint of production.

Wherever we collaborate with suppliers, we do so as partners, always treating each other as equals. This is important to me.

Chapter four of my speech focuses on the car as a digital companion: We are making mobility more human, more intelligent and more sustainable.

The world of bits and bytes is highly dynamic. Digitalisation, hand in hand with artificial intelligence, is fundamentally changing how we experience mobility. The questions you submitted through the shareholder portal indicate that this interests you, too.

Intelligent, self-learning systems have long been part of our strategy for the automotive production of the future. You know this as BMW iFACTORY.

Digital added value can be experienced directly in our vehicles, but our approach here remains: Not everything that is possible also makes sense in a car.

Our Head-Up Display is a classic. 20 years ago, we brought this technology from the aeroplane into the car. Now, we are revolutionising this display concept in the NEUE KLASSE.

Take a look for yourselves: Our “BMW Panoramic Vision” uses the full width of the windscreen. Pure high-tech. But we also use digitalization to increase security. In this case, we reduce distraction while driving.

We have grown used to always getting the latest updates from our digital devices – and people expect the same from their cars. Over the air means we can update software in the vehicle at any time, without bringing it in to the workshop. We chose this route early.

Today, your company has the world’s largest fully upgrade-compatible fleet in the market. We can already reach more than 7.5 million vehicles. 

The BMW 5 Series sets the standard for automated driving. It is the first car in Germany to be approved for partially automated driving at speeds up to 130 km/h on motorways.

This means you can take your hands off the steering wheel while driving. Your car can also change lanes by itself, when you briefly glance in the side mirror. Active Lane Change Assistant with eye confirmation – a somewhat unwieldy name for a genuine world first.

Since March 2024, Highway Assist has also been available in the BMW 7 Series, X5, X6, X7, iX and XM*. That's level 2+.

The new BMW 7 Series does even more:

You can even temporarily turn your attention away from the road. It fascinates me, every time the car regulates its own speed, distance and tracking. That is Level 3 highly automated driving – available in the new BMW 7 Series since March. A digital driving experience needs to ensure the safety of all road users.

That is why your company only introduces mature technical solutions onto the road– no beta versions. No experiments at the expense of our customers. You can always rely on that.

Since summer 2023, we have been testing automated driving and parking functions all the way up to Level 4 fully automated driving at our new centre for automated driving in Sokolov in the Czech Republic.

Esteemed Shareholders,

The US publication Time Magazine and the online platform “Statista” analysed and compared 750 international companies: Your company did exceptionally well to make it into the top ten and was, in fact, the highest-ranked automotive manufacturer. 

Revenue growth, sustainability and employee satisfaction – many people consider these to be conflicting goals. We find a way to reconcile them.

Our markets are dynamic and the geopolitical environment uncertain. This impacts us – just like it does other companies.

You are counting on us to remain successful – and, indeed, we will! We have ambitious plans for the current financial year. We expect to see a slight increase in sales, compared to the previous year, as well as a significantly higher percentage of all-electric vehicles.

The first fourth months of 2024 show that we are on track for all key performance indicators.

As CEO of BMW, I travel the world a lot. Everywhere I go, I see not only how valuable individual mobility is for many people, but how essential it is.

My experience is also that the BMW Group is appreciated and recognised in all corners of the globe. All of this encourages us to continue forging our own BMW way.

We are able to withstand the headwinds when we have confidence in our direction – which we usually do.

Your company is part of the global community. We engage with it – and evolve in and alongside it. That is extremely important.

The BMW way is also about our capacity for resonance – a term from physics that is also used in sociology.

So, what do I mean by capacity for resonance?

I’m talking about our ability to perceive and understand our relationship with the world – in Germany and elsewhere. We pay attention to developments, absorb them – and give something back to society in return. 

This is a natural process we actively participate in and control.

We remain open to all input, but never allow ourselves to be influenced without careful consideration or emotionalised by trigger points. Above all, we avoid drifting aimlessly.

We are in permanent resonance with our evolving society – consciously and for our mutual benefit. And always focused on effectiveness.

The following therefore holds true for your company:

“Strong today – strong tomorrow”.

Another compelling reason for you to continue to stand by us!

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.

- Check against delivery –

Ladies and Gentlemen,

Good morning,

SLIDE 2: BMW Group Quarterly Statement to 31 March 2024

The BMW Group had a successful start into 2024.

Both sales and earnings for the first quarter were in line with our expectations. This results from the focused implementation of our strategic priorities.

At the BMW Group, we have strong brands and attractive products, which create ongoing high demand and a profitable operational business.

SLIDE 3: Highlights of BMW Group Performance in Q1 2024

In the first three months, the BMW Group delivered just under 595,000 vehicles to customers. This is a slight increase of 1.1 percent over the same period of last year.

Our all-electric vehicles, in particular, made an important contribution, with growth of 27.9 percent.

If we look at the BMW brand alone, that number was 40.6 percent.

At the same time, sales of models in the upper premium segment also recorded significant double-digit growth of more than 21 percent.

The Group EBT margin for the first quarter came in at 11.4 percent, which is above our strategic target of 10 percent.

The EBIT margin in the Automotive Segment was 8.8 percent. This falls clearly within our target corridor of 8 to 10 percent.

Ladies and Gentlemen,

This quarter confirms once again that the BMW Group's operating business consistently delivers strong results.

We have a clearly defined long-term plan. And we have significant flexibility in our systems and processes. This allows us to adapt quickly to developments and take advantage of market opportunities.

On this basis, we expect to operate at a consistent level throughout 2024.

SLIDE 4: BMW Group in Q1

Let’s take a look at the financial figures for the first quarter in more detail.

I’ll start with a brief overview at Group level.

BMW Group revenues were on par with the previous year.

Group earnings before tax totalled around 4.2 billion euros, resulting in a Group EBT margin of 11.4 percent.

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

And now more details on how the Automotive Segment performed across key metrics.

In the first three months, the BMW Group delivered 595,000 BMW, MINI and Rolls-Royce vehicles to customers.

The BMW brand reported growth of 2.5 percent.

Due to the upcoming model changeovers MINI sales were down 9.4 percent from the previous year. The New MINI Family, comprising the Countryman*, the Cooper* and the Aceman*, will boost MINI sales – particularly in the second half of the year.

This sales development is also reflected in segment revenues. Adjusted for currency translation effects, revenues saw a slight increase of 1.5 percent.

Both the higher sales volume and positive product mix effects from the upper price segment and BEV contributed to the increase in revenues in Q1 2024.

This is expected to provide a tailwind for revenues also in the remainder of 2024.

Furthermore, prices across the product portfolio are expected to be in line with last year’s level.

The electrification of our product line-up continued to generate substantial sales momentum in the most recent quarter.

Almost 83,000 fully-electric vehicles were sold – or 13.9 percent of our total sales.

Taken together, BEV and plug-in hybrids accounted for about 21 percent of total sales in the first quarter.

EBIT for the period from January to March was 2.7 billion euros, with an EBIT margin of 8.8 percent.

This means that the first quarter of 2024 is in line with the consistent trend in profitability since the beginning of 2022.

Q1 2023 was exceptional, as the effects of inflation were not yet fully reflected in the operating result.

I will provide more details on the Q1 year-on-year development with the EBIT bridge.

SLIDE 6: Automotive Segment EBIT in Q1

Changes in commodity prices accounted for a positive impact of around 200 million euros. Currency effects remained neutral.

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

The net balance of volume, model-mix and pricing effects is about 300 million euros lower than for the first quarter of 2023.

Increase in volumes made a slight positive contribution.

The double-digit growth by models in the upper price segment almost entirely compensated the effect from the higher BEV share.

Starting with the second quarter of 2023, we began to see increased competition due to better availability of vehicles in the market. This led to a gradual softening of the global price environment for new and used cars, which has continued into the first quarter of 2024.

For the full year 2024, we expect the net effect from volume, mix and pricing to be slightly positive, as planned.

We expect additional momentum from models like the new BMW 5 Series, which is currently ramping up in markets across the globe. In China, it launched after the Lunar New Year holiday and has therefore only been in showrooms for a few weeks.

Full availability of the BMW 7 Series will also have a positive effect.

Moving on, we come to research and development expenses – which were 200 million euros higher than in the prior-year first quarter.

Based on Group R&D expenditure, the R&D ratio according to the German Commercial Code came in at 5.4 percent.

Our R&D activities remain focused on the electrification and digitalisation of our entire vehicle fleet. We are constantly developing attractive new models, like the NEUE KLASSE or the next generation of the BMW X5.

Sales and administrative costs were 100 million euros higher than the previous year. This is largely due to IT projects and the increase in personnel costs, which was implemented from the third quarter of 2023.

The headwind of 700 million euros from Other Cost Changes essentially results from two areas.

The first is manufacturing costs.

Sales margins in the first quarter of 2023 still benefitted from a lower level of purchasing prices in 2022.

This led to a positive EBIT effect in Q1 2023 as inventories with lower manufacturing costs were sold.

Starting in Q2 2023, we saw an elevation in costs that has carried through into Q1 2024.

Another reason for the difference in other cost changes is income from the resale of end-of-lease vehicles.

As expected, income was lower than in the first quarter of 2023, yet remains positive.

The normalisation we have been seeing in the used car market over the past twelve to fifteen months has gradually continued.

SLIDE 7: Automotive Segment Free Cash Flow in Q1

Free cashflow in the Automotive Segment totalled about 1.3 billion euros in the first quarter of 2024.

The difference to the first quarter of 2023 mainly results from the lower EBT.

Inventory levels rose during the first quarter, in line with planning. This contributed to the change in working capital, which amounts to 1.2 billion euros.

The increase in stock will ensure that we can service the expected customer demand.

The net effect from capital expenditure and depreciation also reduced free cash flow by 200 million euros.

Capital expenditure for January to March totalled around 1.3 billion euros. This was mainly allocated to new models and structures, with a clear focus on electrification and digitalisation as well as automated driving systems.

The capex ratio for the year to the end of March was 3.6 percent.

Changes in provisions and in the position other, such as tax payments, had no net impact on free cash flow.

In the first quarter of 2024, investments totalling 2.3 billion euros were made into future models and innovations. Nevertheless, the Automotive segment generated 1.3 billion euros in free cashflow.

For the full year, the BMW Group is targeting a free cashflow above 6 billion euros in the Automotive segment, despite the planned peak investments in R&D and capex in 2024.

The strong underlying free cashflow generation supports our ongoing and consistent shareholder return.

As part of the share buyback program BMW AG has acquired shares equivalent to 5.03 percent of the share capital in place on March 31st.

The second tranche of the second program with a volume of 500 million euros is currently in progress and will be completed no later than June 28th.

Currently we see no reason not to continue with tranche three immediately after conclusion of tranche two.

SLIDE 8: Financial Services Segment in Q1

In the Financial Services Segment, the positive trend in new business from the second half of 2023 continued through the first three months of 2024.

The number of new contracts concluded with retail customers increased significantly by 21.5 percent year-on-year to reach 422,000 contracts. Financing for both new and used vehicles contributed to this growth.

In line with this, the volume of new business grew by 22.1 percent to just over 15.6 billion euros.

Segment earnings for the first quarter amounted to 730 million euros – a decrease of 215 million from the previous year.

This can be attributed both to higher credit risk provisioning and the normalisation of income from the resale of lease returns.

The credit loss ratio across the entire loan portfolio remained at a low rate of 0.21 percent.

SLIDE 9: Motorcycles Segment in Q1

In the Motorcycles Segment, first-quarter deliveries decreased slightly by 3.1 percent year-on-year.

EBIT for the year to the end of March totalled 106 million euros, with an EBIT margin of 12.2 percent.

SLIDE 10: Outlook 2024

Ladies and Gentlemen,

After a successful first quarter, we expect the solid business performance to continue throughout the year 2024.

Therefore, our guidance for key performance indicators remains unchanged.

This is based on the assumption that geopolitical and macroeconomic conditions do not deteriorate.

Group earnings before tax are projected to decrease slightly.

In the Automotive Segment, we are planning for slight year-on-year sales growth – with the percentage of all-electric vehicles set to increase significantly.

We expect to see an EBIT margin of between 8 and 10 percent and a Return on Capital Employed (RoCE) of between 15 and 20 percent.

Sales should be slightly higher in the Motorcycles Segment, too. The segment's EBIT margin should come in at between 8 and 10 percent and Return on Capital Employed (RoCE) should be between 21 and 26 percent.

In the Financial Services Segment, we are targeting a Return on Equity (RoE) in the range of 14 to 17 percent for the full year.

SLIDE 11: BMW Group with Consistent Performance

Ladies and Gentlemen,

The BMW Group combines a robust financial performance in its current business with a long-term perspective for the future.

We have a range of highly attractive products in the market and we are continuously developing new models that will set the standard for driving experience, digitalisation and connectivity.

As planned for and previously announced, our research and development spending, and our capital expenditure, will respectively peak in 2024.

We expect our R&D ratio for the full year to be above 5 percent, and the capex ratio above 6 percent.

Our underlying profitability allows us to finance these investments in the future and at the same time yield attractive returns to our shareholders.

We continue to steer the company in line with our strategic priorities. And we deliver what we promise.

Our flexibility allows us to quickly adapt to market fluctuations and to meet customer demand across the globe.

This ensures that we capitalize on market developments and deliver strong results through consistent execution.

Thank you.

Ladies and Gentlemen,

Good morning!

2023 was another successful year for the BMW Group. We delivered strong results in the current business, while securing our future viability through targeted investments.

Strong demand for our attractive products, better availability of vehicles and an easing of the supply situation led to a positive volume development. After the halfway mark in the year, we accordingly raised our guidance for both deliveries and EBIT margin in the Automotive Segment.

Thanks to our disciplined management of the business, we delivered yet again on all our targets. I’ll now take you through our results. 

SLIDE 3: BMW Group with Strong Performance and Solid Sales increase

For the full year, we delivered 2.55 million vehicles worldwide, which is 6.4% over 2022. We achieved significant growth with our all-electric vehicles. Deliveries reached more than 375,000 units, or approximately 15% of total sales.

At 9.8%, the EBIT margin in the Automotive Segment was well within the increased corridor of 9.0 to 10.5%. Excluding depreciation and amortisation for BBA assets from the purchase price allocation of 1.4 billion euros, the EBIT margin was 10.8%.

The Group EBT margin of 11% exceeded our strategic target of 10%.

We also continued to reduce CO2 emissions in our European fleet. With 102.1 grams per kilometer, we were 26.4 grams – in other words 20.5% - below the target set by the European Union.

SLIDE 4: BMW Group full-year 2023

At Group level, our revenues reached 155.5 billion euros, which is 9% higher than 2022. Adjusted for currency translation effects, revenues increased by 13.1%. The increase was driven by the higher delivery volumes and positive product mix effects.

In 2023, our earnings before tax at Group level amounted to 17.1 billion euros. It is important to note that Group earnings in 2022 of 23.5 billion euros included a one-off profit of 7.7 billion euros. This was due to a technical accounting effect related to BBA full consolidation, namely the revaluation of our existing equity interests. Without this effect, Group earnings in 2023 were 1.3 billion euros or 8% above 2022.

This also translates through to earnings per share, that were at 15.7 euros in 2022, excluding the one-off profit from BBA. In 2023, earnings per share of 17.7 euros were 12.8% above the previous year.

That brings me to the results of the individual segments.

I’ll start with the Automotive Segment.

SLIDE 5: Automotive Retail Units, BEV Units, Auto 

Revenue and Auto EBIT

The BMW Group delivered 2.55 million vehicles to customers worldwide in 2023. This corresponds to solid growth of 6.4% – in line with our increased guidance. Momentum came in particular from models in the upper price segment, such as the BMW 7 Series, X7, and Ix*, as well as from the all-new BMW X1.

Our all-electric vehicles continue to be a key growth driver.

In 2023, BEVs made up almost 15% of our total sales.

We also delivered over 190,000 plug-in hybrid vehicles. In total, electrified vehicles therefore accounted for over 22% of sales during the year. 

Revenues for the Automotive segment totaled 132.3 billion euros. This amounts to a 7% increase year-on-year.

At almost 13 billion euros, the segment’s operating result was over 20% higher than 2022. This resulted in an EBIT margin of 9.8%. This is both at the higher end of our long-term strategic target corridor of 8-10%, and well within the increased target corridor of 9.0-10.5% for the year 2023.

SLIDE 6: Automotive Segment EBIT full-year 2023

Looking at the operating result in detail, the increase in Automotive EBIT benefited from a net effect of volume, model mix and pricing, yielding a tailwind of 2.4 billion euros. This was mainly driven by the higher volume and higher share of top end vehicles, including BMW M models, which compensated for the higher BEV share. As expected, we saw some price normalization in the new car and used car markets through the end of the year.

Compared to 2022, we see that EBIT in 2023 was impacted by 600 million euros from the net balance of currency and raw material positions. This difference is mainly due to currency effects from the development of the Chinese renminbi and US dollar. Given lower raw material prices through the end of the year, we saw a slight tailwind compared to 2022. However, this was overcompensated by headwinds from increased supplier payments.

SLIDE 7: R&D Expenditure in full-year 2023

As planned, research and development expenditure rose significantly to 7.8 billion euros, almost 600 million euros higher than the previous year. The R&D ratio for the year came in at 5.0%. Due to higher revenues, this is the same level as 2022, although overall spending increased year-on-year.

Expenditure for R&D mainly focused on three areas: the electrification and digitalization of the fleet; automated driving functions; and expenditure for new models.

Due to higher expenses, mostly for IT projects, selling & administrative expenses increased by about 400 million euros.

The position “Other cost changes” reflects, amongst others, higher material costs, as mentioned at Q3, as well as lower residual value profits than the previous year. In 2022, a negative one-off impact of 1.8 billion euros was due to effects related to the first-time consolidation of BBA.

SLIDES 8 & 9: Automotive Segment Free Cash Flow full-year 2023

Moving on to the free cashflow results for 2023.

At year-end, free cash flow in the Automotive Segment reached 6.9 billion euros. It should be noted that free cashflow in the previous year included a positive effect of over 5 billion euros in net cash acquired from BBA. Without this effect, our free cash flow in 2023 was almost 900 million euros higher year-on-year, or an increase of 13%.

The change in working capital of 2.7 billion euros mainly reflects the increase in inventories to maintain stock levels in markets worldwide.  This ensured we have sufficient supply, including for new models, to meet the robust global market demand entering the new year.

SLIDE 10: Capital Expenditure full-year 2023

Capital expenditure for the year totaled 8.8 billion euros. Our investments in 2023 primarily focused on the fifth and sixth generation battery cell technology, digitalization of products and processes, and vehicle projects. In addition, we invested in construction of our plants, for example in Debrecen, Hungary, where we will launch the NEUE KLASSE next year.

The capex ratio for the year was 5.7%.

Changes in provisions had a positive impact on free cashflow of 1.5 billion euros.

The position “other items” reflects primarily tax payments.

SLIDE 11: Financial Services Segment full-year 2023

That brings me to our Financial Services segment, a key enabler for our business.

Financial Services is already an integral part of the customer journey, and will become even more important with the rollout of our direct agency sales model.

In 2023, the number of new financing and leasing contracts concluded with retail customers came in at the same level as the previous year with 1.5 million new contracts. This is a very solid result, considering the business environment with elevated interest rates and a highly competitive landscape.

Business developed positively quarter for quarter. While new contracts with end customers were down 20% in Q1 year-on-year, in Q4 contracts were up by 17%.

The share of new BMW Group vehicles either leased or financed

by the Financial Services segment stood at 38.2% in 2023.

Average financing volume per vehicle increased, due to an improved product mix in the automotive business. Overall, new business volume increased by 3.4% to 57.3 billion euros.

Segment earnings before tax amounted to 2.96 billion euros. The decrease reflects primarily two factors: higher refinancing costs due to rising interest rates, as well as the overall declining contract portfolio.

Revenues from the resale of end-of-lease vehicles remained at a high level, but were lower than previous year as used car prices started to normalize. We expect this trend to continue in 2024, leading to a lower result from off-lease vehicles.

At 0.18%, the credit loss ratio remained at low level.

After increasing the target range for the year to between 16 and 19 percent in August, Return on Equity reached 17.2% for the full-year.

SLIDE 12: Motorcycles Segment full-year 2023

That brings me to the Motorcycles segment.

In its 100th anniversary year, the BMW Motorrad brand achieved record deliveries, with over 209,000 units. An impressive accomplishment!

All major sales regions saw growth in 2023, with particular momentum coming from Europe with 4.7% and China with 2.8%.

The EBIT margin for the segment reached 8.1%.

At 259 million euros, the segment’s operating result was at the same level as 2022.

SLIDE 13: Other Entities Segment / Eliminations full-year 2023

Finally, you see the combined result from the Other Entities Segment and intersegment eliminations.

“Other Entities” recorded a loss in earnings before tax of 100 million euros. The decrease compared to 2022 was mainly driven by negative fair value measurement effects on interest rate hedging transactions.

Consolidations increased in earnings before tax to 1.3 billion euros. Lower eliminations associated with the leasing business had a positive effect compared to the previous year.

SLIDE 14: Dividend and Increased Pay-out Ratio

Ladies and Gentlemen,

At the BMW Group, we remain focused on ensuring that our shareholders benefit from the company’s success.

The Board of Management and the Supervisory Board will therefore propose a dividend of 6.00 euros per share of common stock and 6.02 euros per share of preferred stock to the Annual General Meeting. This results in a total dividend payout of approximately 3.8 billion euros. The higher dividend payout and earnings per share in 2022 reflected considerable one-off effects from the consolidation of BBA in our Group profit. Adjusted for the one-off effect, the dividend as well as earnings per share are higher in 2023.

The proposed dividend for 2023 represents a pay-out ratio of 33.7%. This is within our long-term strategic target range of 30-40% and also notably higher than the payout ratio in 2022.

At the end of June 2023, we successfully concluded the first program of our share buyback at 2 billion euros, which was approved at the Annual General Meeting in May 2022. On July 3rd last year, we launched the second program of up to 2 billion euros, with the first tranche concluding on December 31st. In total, 1.2 billion euros in share buyback were completed in 2023. The second tranche, with a volume of 500 million euros, started on January 2nd, and will be carried out by June 28, 2024, at the latest. The second share buyback program will be completed by December 31, 2025 at the latest.

Taking the proposed dividend and last year’s share buyback together, the total payout of 5 billion euros represents 92% of Auto free cashflow available to BMW AG shareholders.

This underscores the financial strength and robust cashflow generated by our operations, which supports optimal shareholder return.

Moving on from 2023, what are we expecting in 2024?

In the Automotive segment, we expect slight growth in volumes, driven by our young and attractive product portfolio. Specifically, we should see significant growth of our BEV share as well as a double-digit growth in the upper segment.

We anticipate an increase in material costs and supplier payments. However, this should be offset by a net tailwind from FX and commodities. The net impact of volume, mix and price should be slightly positive, and we will take our disciplined approach forward into 2024. At same time, lower profits from off-lease vehicles will weigh on Auto EBIT.

SLIDE 15: CapEx and R&D Ratios 2024

In 2024, we will hit our capex and R&D peak, as planned and communicated.

The continued implementation of our electrification and digitalization strategy will lead to greater research and development costs. Expenditure related to the NEUE KLASSE, such as the further development of the sixth-generation battery technology and preparations in the production network, will also impact the Group’s earnings and results in greater capital expenditure.

For the current financial year, we therefore expect a capex ratio above 6% and an R&D ratio above 5%. After 2024, both ratios will gradually return to our strategic corridors, which remain unchanged. For Capex: that means less than 5%. And for the R&D ratio: between 4 and 5 percent.

Despite the significant investment in future technologies, we will generate above 6 billion euros in Automotive free cashflow in 2024.

Financial services will benefit from the higher auto sales and stabilization of the interest rate environment. However, a decline in used-car values will negatively impact the result. And, given the higher lease penetration rate, we will see a lower eliminations result.

SLIDE 16: Outlook 2024

What do we expect for our key performance indicators in 2024?

In the Automotive Segment, deliveries of BMW, MINI and Rolls-Royce brand vehicles are expected to rise slightly year-on-year. The segment’s EBIT margin should fall within our strategic target corridor of 8 to 10 percent. The share of all-electric vehicles relative to total deliveries is expected to increase significantly compared to 2023.

In the Motorcycles Segment, deliveries are expected to increase slightly, with an EBIT margin within our target range of 8 to 10 percent.

Return on Equity in the Financial Services segment is forecast to land between 14% and 17%.

As expected, supply and demand continue to normalize for new and used cars. It is therefore expected that revenues from remarketing lease returns will be lower than 2023.

For the Group’s pre-tax profit, we expect a slight decrease. This is due primarily to the high level of expenses for research and development and capital expenditure, as outlined before. The decrease in the financial services business will also contribute to the slight decrease in Group profit before tax.

The Group’s headcount is forecast to increase slightly.

Ladies and Gentlemen,

At the BMW Group, our strong brands and attractive products have long formed the foundation for our success – and will continue to do so in the future. We allocate our capital in investments efficiently, in line with our long-term strategy. At the same time, we remain focused on cost discipline and profitability.

Our strategic perspective gives us clarity on our consistent path going forward, while our operational excellence secures our future competitive advantage and the overall health of the business. Our high flexibility allows us to meet market demand and consistently deliver on targets. And in 2023, it underpinned our profitable growth. The increase in our BEV sales to almost 15% put us in a strong position to overachieve the CO2 targets. We also recorded growth in the upper segment, resulting in a balanced and profitable mix.

As you know, our industry is known for its high complexity, for long life-cycles, and for tough regulatory requirements, which are ever-increasing. That is why our planning horizon always spans several years. As the Vision NEUE KLASSE X proves, our strategy ensures that we anticipate trends in the industry to remain ahead.

We are fully committed to deliver on our long-term strategic target of an 8-10% EBIT margin every year.

And we deliver what we promise. We have the right product line-up and the flexibility to meet customer needs across the globe. And our product offering is growing.

We will therefore continue with our profitable growth and also fulfill our targets, assuming market conditions remain stable. As everyone has seen in the BEV market in China, this is not always a given. At the BMW Group, we will maintain our balanced steering of multiple individual objectives to achieve all of our strategic priorities.

Our strong performance today is paving our road to tomorrow’s continued success. We remain confident about the 2024 financial year and beyond.

And now it’s time to hear from Oliver again: he’ll show you what we have in the pipeline across all brands to drive our success in the coming years.

Statement Part I – Vision Neue Klasse X

Ladies and Gentlemen,

In 1999 — 25 years ago — BMW presented the first X5, and with it established the sporty SAV segment. Since then, the X Family has been a pillar of the BMW brand, with around 12 million X vehicles sold worldwide. Today, the X family covers all customer wishes in this segment — from the premium compact class with the X1 to the luxury class with the X7 and XM.

Now, the BMW Vision Neue Klasse X looks ahead to the future of BMW and a totally new generation of BMW X models. This future doesn’t start on some far-off date – it begins next year, when we turn vision into a reality that our customers can experience for themselves.

Last year, we presented the BMW Vision Neue Klasse at the IAA Mobility, an outlook of what a sporty sedan from the NEUE KLASSE could look like. Because we aren’t just ramping-up e-mobility in niche models – but in our most successful, highest-volume segments.

From 2025 on, we expect demand for all-electric vehicles to increase significantly. That is precisely when we will be releasing the NEUE KLASSE onto the market. The NEUE KLASSE represents a start into a completely new model generation. It is redefining the BMW brand. With the NEUE KLASSE, we are taking BMW into the future:
in design, technology and the philosophy of the brand.

For the first time, we are showcasing the systematic implementation of the automotive industry's three major areas of future mobility combined. This means: electric, fully digital, and with a clear focus on sustainability. We have significantly improved each of these aspects.

Take the sixth generation of our battery cells, which we will use for the first time in the NEUE KLASSE: Quantum leaps in energy density will provide our customers 30 per cent more range and 30 per cent faster charging. The potential of digitalization can also be experienced in the NEUE KLASSE in totally new ways. This is made possible by four completely new electronic control units. Each one comes with computing power that is up to ten times faster than current systems.

Our completely redesigned iDrive redefines the interface between humans and machines. At the same time, we are also making impressive advances in the field of sustainability.

We are turning all the dials. In this way, we can significantly reduce our products’ carbon footprint and move even closer to circular use of raw materials. We are sticking to this path – also because our customers expect it from us.

And the most important thing is: These developments do not just benefit the NEUE KLASSE, they benefit all future BMW models.

Ladies and Gentlemen,

All of this shows that: With the NEUE KLASSE, we aren’t just opening the next chapter in the history of mobility – we are writing a whole new book: More Sheer Driving Pleasure. More digital experiences.

More sustainability.

In other words: More BMW than ever before.

Statement Part II - corporate messages

Ladies and Gentlemen,

You certainly couldn’t ask for more BMW or more future! With the NEUE KLASSE, we are rethinking individual mobility from the ground up. And what is more consistent than to apply this new approach to everything that defines the core of the BMW brand?

First of all, that refers to the BMW X philosophy embodied by the BMW Vision Neue Klasse X. But sportiness is also at the heart of every BMW. And it is this characteristic that the BMW Vision Neue Klasse completely reimagines in a sporty sedan.

Today, you can see both Vision Vehicles together on one stage for the first time. On the one hand, it shows how consistent the NEUE KLASSE is – in terms of design, technology and the relevant parameters for sustainability. On the other, it demonstrates how broad the NEUE KLASSE is. Here, you can see the two bookends of what we can imagine. But there is still plenty of room for other models and innovations in-between.

I can promise you today that: We will be taking both of these Vision Vehicles from the stage to the roads in a very similar form very soon. At least six different NEUE KLASSE models will be released in the first 24 months following the start of production. I call this an unprecedented and highly ambitious timeline. But if anyone can do it, then it’s us at BMW.

The NEUE KLASSE will significantly accelerate our ramp-up of e-mobility once again. But BEVs – along with our models in the upper premium and luxury segment – are already our biggest growth drivers. Last year, we sold more than 375,000 all-electric vehicles.

This year, once again, our fully-electric vehicles should see significant double-digit growth.

We will soon have sold more than one million BEVs worldwide. Including plug-in hybrids, we already passed the milestone of two million electrified vehicles. Plug-in hybrids are especially popular with our European customers. That is one of the reasons why it only took us just over two years to double our overall xEV deliveries from one to two million.

For the BMW Group overall, we are anticipating a slight increase in sales in 2024. The foundation for this is our wide range of drive technologies, all of which we are systematically further developing.

In this way, we can ensure we always offer the right products and services at the right time.

This also substantially reduces our carbon footprint. At the end of 2023, we outperformed the CO₂ limit set for us by the European Union by more than 20 percent. This shows that our strategy not only reflects customer requirements, but also ensures effective CO₂ reduction. Climate protection cannot be achieved successfully if it does not take customer needs into account. It just doesn't work. That is why we believe a comprehensive review of CO₂ fleet legislation in the EU is essential. Regulatory frameworks that ignore customer needs and market realities cannot be successful.

Especially, if they are unable to create the necessary conditions for alternative technologies. Then, they only provide objectives but exclude possible solutions. By the end of this year, we will have more than 15 fully-electric models in our line-up – from MINI, BMW and
Rolls-Royce as well as BMW Motorrad.

No matter if on two wheels or on four wheels – we always offer the best of everything. As promised, we offer at least one all-electric model for every brand as well as in every one of our core segments. This dynamism is reflected in our share of the global BEV market: At 4.1 percent, it is already significantly higher than our share of the total global market, which is at 3.3 percent.

We still expect half our deliveries to be all-electric before 2030. However, growth in BEVs worldwide is not linear. That was always clear to us. Development is volatile and market-specific, due to several factors. We remain as flexible as possible – that has been our strategy for years and we have reflected that efficiently in our architectures. We continue to prudently steer our BEV ramp-up in line with differentiated demand in global regions. And we have been successful.

For us, it is important to always maintain a realistic view of the development of e-mobility. BEV growth does not benefit from a purely ideological approach, but from long-term planning and consistent implementation of goals. That is why we are creating the best-possible conditions for this in our production network and supply chain – on a global scale.

The first production vehicles of the NEUE KLASSE will start rolling off the line at our new Plant Debrecen in the second half of 2025. That is where the first SAV model on our new fully-electric architecture will be launched. The sporty sedan, on the other hand, will ramp up from 2026 at our Plant Munich, which we are currently gearing up for the start of production.

Every second BMW produced at Plant Munich is already fully electric today. From late 2027 onwards, our more than 100-year-old main plant will exclusively build electric vehicles. We will also be manufacturing the NEUE KLASSE at our plants in San Luis Potosí, Mexico, and Shenyang, China. This perfectly demonstrates: Whether at a greenfield site or a traditional location, whether in Europe, Asia or the Americas – we are mastering the complexity and leading all our production sites into the future.

As you know, to master e-mobility you need powerful batteries.

We have made it our mission to understand every aspect of battery cells – from cell composition and cell format, all the way to industrial manufacturing.

We are able to recreate the entire process at our Battery Cell Competence Centre in Munich and the Cell Manufacturing Competence Centre in Parsdorf in Bavaria.

We are also applying our local for local principle to cell production for our batteries. Facilities will be located in direct proximity to our vehicle plants. This has led us to build our own production facilities for Gen5, as we are now doing in Thailand, and for the sixth generation of BMW high-voltage batteries in Hungary, the US, Mexico and China. This ensures short transport distances and secures our supply against unforeseen events around the globe.

From 2026, Gen6 batteries for our plants in Bavaria will come from our new location in Irlbach-Straßkirchen. Establishing an industrial site like this is no longer a straightforward process – especially in Germany. We sought frank and open discussion with residents in the early stages and explained the sustainable design and advantages of our location in Lower Bavaria to them.

This is how we build trust. We are very pleased that residents voted strongly in support of our new site. We see this as confirmation of our efforts. The future of e-mobility also entails integrating vehicles into the power grid: With the NEUE KLASSE, we are introducing bi-directional charging, which we have already tested extensively. Our customers can feed electrical energy stored in the vehicle back into their own house, electrical devices like your e-bike or the public power grid: This lowers electricity costs and helps stabilise networks.

As you can see: With the NEUE KLASSE, we are taking mobility to a new level and, at the same time, becoming an entirely new company.

All BMW models will benefit from the innovations of the NEUE KLASSE.

That means: In the near future, you will recognise the NEUE KLASSE in every BMW.

Our BMW Motorrad brand is well on its way to emission-free mobility in urban spaces. I like to ride a motorbike myself, whenever I have the time. So, I am delighted that we are launching many new models this year. Three of them stand out particularly:

Here, you can see the new CE02.

It is the second fully-electric model after the CE04, standing next to it, which is the undisputed market leader in its segment. There is something special about the new CE02 that makes it particularly appealing to young people: In Germany and other countries, you only have to be 15 to ride it.

The M 1000 XR is already the second M motorcycle model.
There are also a lot of fans eagerly awaiting the R 1300 GS Adventure. A comprehensive offering on two wheels: Whatever customers are looking for, they will find it at BMW Motorrad.

Just like BMW Motorrad, our MINI brand has a passionate fan community around the globe. With our NEW MINI Famliy we are taking the brand into a new dimension. Just as the NEUE KLASSE is doing for the BMW brand.

Now, MINI is gearing up for a world premiere: the Aceman.

This will be the third member of the NEW MINI Family and the first MINI we are offering exclusively as an all-electric vehicle. Even if it’s still camouflaged — I can promise you: It is unmistakeably a MINI – inside and out: signature design, go-kart feeling and digitally in tune with the times. And all this combined with a minimal ecological footprint. That describes not only the Aceman, but the entire New MINI family.

The Aceman fills the gap between the Cooper and the Countryman, which has grown significantly bigger. The all-new Countryman has been well received – whether with a combustion engine or all-electric. And the all-new Cooper, which will be available starting in May, is already sold out for the next four months.

Our NEW MINI family will be built at our Spotlight joint venture in China; in Oxford, UK, and, for the first time, in Germany, at Plant Leipzig. In the second half of the year, we will launch the all-new MINI Convertible which many fans are eagerly waiting for.

Together with the 5-door MINI Cooper, our NEW MINI family will then be complete. And now let’s jump from one end of our portfolio to the other. From the MINI typical Go-Kart-Feeling to our ultra-luxury marque.

Spectre* is the first battery-electric Rolls-Royce model to hit the showrooms. With its all-electric drive train we are bringing the driving experience at Rolls-Royce to a whole new level: that feels effortless just like a magic carpet ride.

We have never had so many pre-orders for a Rolls-Royce model. This shows that our exclusive customers acknowledge how perfectly Rolls-Royce and electrification fit together. Rolls-Royce is an unparalleled success story. Our luxury brand, with its unique product portfolio, has never been as strong and as differentiated as it is today. And let’s not forget the significant contribution margin it earns for the company.

And, now, Ladies and Gentlemen, as promised:

the new BMW 5 Series Touring!

BMW is where Touring meets e-drive: No one else in this segment has a vehicle like this on offer. The i5* Touring will be available from May. It delivers an electric range of over 500 kilometres and is especially popular in Europe.

The 5 Series Sedan and the i5 will also be available exclusively in China with a longer wheelbase. Both will be built at BMW Brilliance Plant Dadong.

Our high-performance brand BMW M also offers a technological spectrum: With the i4 M50*, the i5 M60* and the i7 M70* we have
three all-electric models on offer. And by the way, the all-electric i4 M50 is yet again our best-selling M model.

This year, fans can especially look forward to the new edition of the M5 – first, as a sedan, and later, also as a Touring. Both M variants come with an impressive partially electrified drive train. With the BMW M hybrid system, they are able to drive more than 70 kilometres on electric power alone.

Our plug-in hybrids remain an important element of our drivetrain portfolio. Why? Because they provide a boost to e-mobility that should not be underestimated. Many customers discover and come to appreciate the advantages of electric driving in this way.

The 5 Series and the 5 Series Touring are concrete examples of how BMW is implementing a variety of drivetrains to meet very diverse customer needs.

All of this is based on our flexible architecture, which enables us to cover the entire spectrum: from powerful BEVs to smart plug-in-hybrids to highly efficient combustion engines and high-performance M models.

The success of this approach has been reflected in our key figures for several years — in sales and profit margins. With our broad technological approach we are already thinking one step ahead: We have been testing the BMW iX5 Hydrogen* in selected countries under everyday conditions since last year.

Our pilot fleet’s world tour has raised awareness of the role hydrogen can play in the energy transition – not just for mobility, but industry-wide. Our vehicles performed well under various climate and traffic conditions, and the public response has been overwhelmingly positive.

This was no surprise to us, since hydrogen fuel cell drivetrains combine the best of both worlds: the advantages of an emission-free e-drive with the fast refuelling people are used to. That’s why we see hydrogen as an additional alternative drive technology that could make a lot of sense in the mid to long term.

For us, our aspiration to be strong tomorrow means being already strong today.

This is especially true of the new edition of our best-selling X model, the BMW X3, which will be released later this year. The new X3 will be available with a choice of highly efficient combustion engines or as a plug-in hybrid.

At the same time, we are preparing for the next major leap: The NEUE KLASSE is built on a separate new architecture – already tailored today to the electric vehicles of tomorrow. This enables us to make the best possible use of economies of scale as demand for electric models grows.

Vehicle architectures are important, but they are not the decisive lever – that would be our technology clusters. They enable innovations and technological advances to be scaled efficiently across all architectures. Behind this is a modular principle that allows us to roll out technologies to different vehicle concepts and segments.

This ensures that the innovations of the NEUE KLASSE will benefit the entire BMW model line-up in the coming years.

We don’t divide our products into “old” and “new”, but always offer our customers the latest technology – regardless of the vehicle's powertrain.

We are using the NEUE KLASSE as our innovation and technology booster for the entire portfolio and for all major future mobility topics that we implement in our vehicles, including design.

The NEUE KLASSE is our impulse, initiator and enabler to roll out new technologies over the next few years. As you can see: We will continue to serve all markets according to their needs, providing top products in all segments. The full range of four drive technologies, regardless of which architecture they are built on, is just one aspect here.

The BMW Group is a tech company. The ability to manage this complexity, to orchestrate, scale and further develop technologies is one of the BMW Group’s greatest strengths and a unique selling point. With this in mind, we offer our customers the best, coherent overall package. That is our aspiration and our goal. It might even be the most important secret ingredient in our company's success.

We already showcase our innovative strength in automated driving with models like the BMW 5 Series and BMW 7 Series. The new BMW 5 Series is the first car in Germany approved for partially automated driving at up to 130 km/h on motorways. A completely new feature is the Active Lane Change Assistant with eye confirmation. The driver simply glances briefly in the exterior mirror and the car changes lanes.

Starting in March 2024, our customers will be able to experience Level 3 highly automated driving in the BMW 7 Series. This means you can let go of the wheel and temporarily turn your attention to something else.

Your 7 Series takes care of speed and distance control all
by itself, as well as lane tracking.

The steps to automated driving is one of the three main stories on the online version of the “BMW Group Report 2023”. I invite you to click through our online report. Our award-winning online Report will once again provide you with a compact overview of everything we are working on. You can experience what moves us and you try out our interactive KPI calculator. Just like the title says:
Driving the NEXT ERA.

Our spectacular Vision Vehicles show the direction in which we are taking mobility, in line with the major topics of the future. The most important aspect for our customers is: What does it feel like on the road?

In the Board of Management, we already got to drive a pre-series model of the NEUE KLASSE. We all agree that: It is Sheer Driving Pleasure at a whole new level. This is something only we can do! It is typically BMW.

A lot of people talk about transformation. That is when one thing replaces another. But, in our industry, it is more a case of things happening at the same time: Parallel approaches that still unmistakably move us forwards. That is why the BMW Group is committed to continuous and simultaneous progress – through bold leaps in innovation and responsible action.

And that brings us full circle:

Strong today – and strong tomorrow.

Thank you!

- Check against delivery –

Ladies and Gentlemen,

Before I talk about current developments, I’d like to say a few words about the change in the Board of Management of BMW AG.

As you all know, the Supervisory Board appointed Jochen Goller to the Board of Management, effective 1st of November. After various roles in China and the UK, as well as serving as head of the MINI brand, Jochen Goller has managed our activities in China very successfully since 2018.

Sean Green, who was previously Senior Vice President, Sales and Marketing at our BBA joint venture, will be responsible for our business in China going forward.

Jochen Goller takes over from Pieter Nota, who led our Customer, Brands and Sales Board division from 2018.

Under Pieter Nota’s leadership, the BMW Group grew its global market share significantly. During this time, the BMW brand also regained its position at the top of the premium segment and steadily expanded it.

I would like to extend my sincere thanks to Pieter Nota and wish Jochen Goller all the best as he embarks on his new role.

I just got back from a trip to Asia about a week ago. I know that some of you were also able to get an idea of the current market situation over there, at the recent BMW China Days in Shenyang and Shanghai.

For me, the visit to Beijing and then the Japan Mobility Show in Tokyo clearly showed once again:

There is no “one-size-fits-all” for the mobility of today and tomorrow. Our world is multifaceted – and that’s why we need different technological solutions: On the one hand, to meet our customers’ wide-ranging needs. On the other, to comply with very different regulatory requirements in countries around the world.

China mainly relies on pure electric vehicles – although plug-in hybrids and hydrogen fuel cell vehicles also have a part to play in decarbonising mobility. In Beijing, for example, a large number of taxis already run on hydrogen.

In the third quarter of this year, we grew our business worldwide – thanks to our wide range of premium vehicles across all drive technologies.

Pure electric vehicles stood out in China, in particular: We more than tripled our sales there in the first nine months compared to the same period of last year.

In Japan, the current demand for all-electric cars is still relatively subdued. The focus is more on plug-in hybrids and cars with combustion engines. However, it became clear at the Japan Mobility Show that Japanese manufacturers, in particular, are starting to step things up – with their own concept cars and fully-electric options.

Japan recognised the importance of hydrogen early on. This is why our BMW iX5* Hydrogen pilot vehicle has been well received there.

For a global premium manufacturer like the BMW Group, technology orientation remains the right path for decarbonising mobility.

Our healthy sales and financial figures are proof of this. We will continue to pursue this path consistently in the future. In October, we presented the BMW X2 with the all-electric iX2* as the latest example of this.

The iX2 is, more than anything, a digital champion.

The new BMW Operating System 9 introduces the ideal platform for a comprehensive range of digital features and functions – such as totally new gaming and streaming capabilities.

It is features like these – such as optimised touch controls or seamlessly integrated voice control – that allow our customers to enjoy a unique digital experience in their car.

Early next year, our rollout of new all-electric products will continue: In the spring, the new BMW 5 Series Touring will celebrate its world premiere. It will be available with the same drivetrain portfolio as the Sedan, including the all-electric, i5* Touring. This gives us a real USP in a segment that is very popular – especially in Europe.

Our goal remains the same: more than half our global sales from all-electric cars, well before 2030.

To this end, we are also further expanding our leading role in battery cell technology. At our competence centre in Parsdorf near Munich, we are laying the technological foundations for the efficient and resource-saving production of battery cells. And we do this along the entire value chain.

We share the know-how we develop there with our suppliers. In this way, we are setting benchmarks in production, quality, performance, costs and ecology of battery cells.

Last week, we put the competence centre in Parsdorf into operation. Sample production of sixth-generation round cells has begun.

These cells are characterised by an up to 20% higher energy density. In addition, we were able to reduce the CO2 footprint in cell production by up to 60%.

Our customers will benefit from up to 30% faster charging speed and up to 30% higher range according to WLTP.

In line with our "local-for-local" principle, the BMW Group also ensures that the next step – high-voltage battery assembly – takes place as close as possible to the vehicle plants.

This approach secures our production, even in the event of unforeseen political and economic developments. Short transport distances also reduce the carbon footprint of vehicle production.

Production facilities for the sixth generation of BMW high-voltage batteries are currently being built at all major manufacturing locations:

In Debrecen, Hungary.

In Woodruff, South Carolina, in the US.

In San Luis Potosí, Mexico.

And in Shenyang, China.

We are planning a further assembly site for high-voltage batteries in Irlbach-Straßkirchen to supply our vehicle production in Bavaria. A clear majority voted to allow the planning process in Lower Bavaria to continue in a recent referendum. It not only secures the future of our Bavarian vehicle plants; it also sends an important signal, underlining Germany’s future viability as a location for industry.

We hope to start construction within the next year.

These high-voltage batteries will then be used in our NEUE KLASSE, which will also be produced at our main plant in Munich from 2026 onwards.

We provided a glimpse of the NEUE KLASSE at the IAA MOBILITY in early September.

The BMW VISION Neue Klasse shows how we are designing individual mobility to be more human, more intelligent and more responsible.

For example, the materials we are developing for the NEUE KLASSE will help reduce its carbon footprint.

An additional highlight is the Panoramic Vision Display, which uses the entire width of the windscreen and is visible to all passengers.

What has always set BMW apart is the perfect interaction of all components – and the unmistakeable, brand-authentic driving dynamics that this enables. We are also taking this unique selling point to a whole new level, with a perfect combination of hardware and software.

The NEUE KLASSE is more than just another BMW-brand car. It is a whole new generation of products. We will be releasing six models onto the roads within 24 months – from SAVs to sedans. What all the models have in common is the all-electric heart that powers them.

MINI will also be all-electric in the future. Between now and 2030, we will be completely realigning MINI and making the brand all-electric. We presented two key members of the new MINI family at the IAA MOBILITY: the MINI Cooper* 3-Door and the MINI Countryman*.

The next fully-electric MINI is ready to go: In April 2024, the MINI Aceman will make its world premiere in the premium-compact car segment.

The new MINI family is produced by our Chinese joint-venture partner, Spotlight, in China and in our plants in Leipzig and Oxford.

Our second British brand is also on the threshold of pure electromobility. By the early 2030s, Rolls-Royce will also be exclusively all-electric. Preparations for the sales launch of the first electric Rolls-Royce are currently in full swing.

The Spectre*, which is scheduled for release by the end of the year, is set to redefine modern luxury.

There has also been a change at the top at Rolls-Royce. Torsten Müller-Ötvös – who has led Rolls-Royce since 2010 and driven the transformation and rejuvenation of this unique marque – is retiring.

He will be handing over to Chris Brownridge, from 1st of December. Chris currently heads the UK market – bringing experience, of course, but, above all, a feel for the exclusive demands of the brand and its customers.

Let’s move on to BMW Motorrad. We recently celebrated the brand's centenary at the end of September with German Chancellor Olaf Scholz at our plant in Berlin-Spandau.

The brand has performed exceptionally well in recent years. Its centenary celebrations were the culmination of the career of BMW Motorrad's long-standing leader: Markus Schramm – who is also retiring.

Under his leadership, BMW Motorrad steadily expanded its product range, opened new markets for the brand and saw numerous record-breaking years.

Markus Flasch took over from him on the 1st of November. Markus brings experience as head of BMW M GmbH and head of the product line for BMW mid-size and luxury class and Rolls-Royce.

While we are constantly expanding and refining our product range, our current focus is on further digitalisation of the customer interface. Direct customer access plays a key role in this.

Our new direct sales model for MINI is about to be launched in Europe. The rollout with MINI in China was already a success.

The European rollout will begin on 1st of January, with Italy, Poland and Sweden. Other European countries will follow in stages. The BMW launch will get underway in 2026.

The direct sales model will benefit everyone involved:

-       Our customers are guaranteed full price transparency and can move seamlessly between online and offline consulting options during the purchasing process.

-       At the same time, it offers our retailers an attractive business model – as shown by their positive response. All our European retailers have signed contracts to this effect.

-       In return, the BMW Group gains direct access to customers – which we will use to curate an entirely new customer experience.

The best example of this is our new “Proactive Care” service. It uses data analytics and AI to evaluate data from the vehicle and detect potential problems before they even occur.

If the cause can be fixed using software, this is done remotely. In all other cases, our customers receive a notification – for example, a tip for how to handle the issue themselves or, if necessary, a note asking them to contact a BMW dealer.

If the customer agrees, an appointment can easily be set up using the automated system.

Ladies and Gentlemen,

In 2023, we are once again demonstrating the success of the BMW Group’s strategic approach. With our products, range of drive technologies and production sites worldwide, our position is highly diversified.

A recent study also confirms this: US magazine TIME and global database Statista named the world’s top 750 companies: The BMW Group ranked in the top ten – and was the highest-rated automotive manufacturer worldwide.

The mood is also very positive inside the company – as this year’s Employee Survey confirmed. We asked our just under 150,000 employees to tell us what they think.

Their responses showed that: The BMW Group is a highly attractive employer. The workforce backs the company's goals. And: Our employees worldwide are proud to work for the BMW Group.

That is the best foundation for continuing on our successful course in the future.

Thank you.

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Slide 2: BMW Group Quarterly Statement to 30 September 2023

Ladies and Gentlemen, Good Morning!

Slide 3: Highlights of BMW Group Performance in Q3 and YTD September

The BMW Group delivered a strong performance in the third quarter. As expected, we achieved solid sales growth and correspondingly positive financial key figures.

The Group EBT margin for the third quarter came in at 10.6%. For the nine-month-period from January to September, it was 11.9% – exceeding our strategic target of 10%.

The Automotive Segment posted an EBIT margin of 9.8% for the third quarter and 10.3% for the year to the end of September. Without depreciation of BBA assets from the purchase price allocation, the margins came in at 10.8% for Q3 and 11.4% through nine months.

After a successful third quarter, we expect a positive business development in the fourth quarter. All segments are on track to meet our goals for the year.

I’d now like to show you a few slides with our business figures for the third quarter and the first nine months in more detail.

Slide 4: BMW Group in Q3

Let's start with the Group figures.

Group earnings before tax for the third quarter were on par with last year, at just under 4.1 billion euros, despite a significant headwind from the fair value assessment of interest rate hedges compared to Q3 2022.

Group pre-tax earnings for the year to the end of September decreased by about 6.8 billion euros.

However, last year’s figure included one-time income of 7.7 billion euros from the revaluation of equity interests in BBA.

Without this effect and looking at the underlying operating result instead, Group earnings were 900 million euros higher year-on-year in the first nine months.

Slide 5: Automotive Retail units, BEV units, Auto revenue and Auto EBIT

Now, let's take a look at the individual segments, starting with the Automotive Segment.

The BMW Group delivered just under 622,000 vehicles to customers in the third quarter of 2023 – a year-on-year increase of 5.8%.

Year to date September, deliveries rose 5.1% to around 1.84 million vehicles.

Our order books take us into 2024 – with valuable impetus coming from new models like the BMW 5 Series.

We expect this positive trend in deliveries to gain momentum in the fourth quarter – resulting in solid growth in vehicle sales for the full year, as forecasted in August.

In addition to models from the upper price segment, our all-electric vehicles are another important growth factor.

We sold around 94,000 units in the third quarter and just under 247,000 fully-electric vehicles for the nine-month-period.

BEV share of total sales continues to grow. In the third quarter, it was 15.1%.

In the fourth quarter, our sales of all-electric vehicles will get a further boost from the launch of the new BMW i5*.

For the full year, we expect BEVs to account for about 15% of deliveries. After nine months, the share was 13.4%.

Third-quarter automotive revenues were at the same level as the prior year, at 32.1 billion euros. However, currency translation headwinds from the US dollar and Chinese renminbi played a part in this.

Adjusted for these currency translation effects, revenues increased by 6.5%, thanks to higher sales.

The Automotive Segment’s operating result for the third quarter totalled just over 3.1 billion euros, with an EBIT margin of 9.8%.

Year to date September, the EBIT margin came in at 10.3%.

Slide 6: Automotive Segment EBIT in Q3

Let’s take a look at the operating result in the Automotive Segment in more detail.

In the year-on-year comparison, we see that Q3 2023 was impacted by just under 200 million euros from the net balance of currency and raw material positions.

This difference is mainly due to currency translation effects from development of the Chinese renminbi.

Raw material prices remain high – although we are seeing a slight tailwind compared to Q3 2022.

However, this does not include material and logistics costs. These topics are included in “other cost changes”.

Volume, model mix and pricing effects all contributed to a tailwind of around 300 million euros, compared to the prior-year quarter.

The largest share of this position results from higher vehicle sales.

The contribution from the model mix is only slightly lower than the previous year, despite BEV growth.

The market has continued to normalise over the course of the third quarter, partly due to improved vehicle availability. We continue to pay close attention to price discipline.

Expenses for research and development rose by around 100 million euros.

This reflects the decrease in the capitalisation rate of 8.5 percentage points to 32.2% year-on-year.

Based on Group R&D spending, the R&D ratio according to the German Commercial Code came in at 4.6%. We expect the figure for the full year to be within our long-term target range of 4-5%.

Research and development expenditure focused on the electrification and digitalisation of our vehicle fleet as well as the development of new models like the all-new BMW 5 Series and the NEUE KLASSE.

Digitalization includes the innovative “BMW Operating System 9”, which we are rolling out this year.

We are also making great progress in the area of automated driving. With level 2+, the new BMW 5 Series already offers a partially automated driving experience. We will also be launching highly automated driving – level 3 – shortly. 

Sales and administrative costs increased by about 100 million euros – partly due to higher spending for digitalisation projects.

Other cost changes include costs for materials and logistics. They remain at a high level, due to, among other factors, higher labour costs from our partners. Although they were more or less stable in the quarter compared to the previous year, we recorded a notable negative impact in the nine-month-period.

Slide 7: Automotive Segment Free Cash Flow in Q3

Free cashflow in the Automotive Segment totalled 2.6 billion euros in the third quarter.

The basis for this high figure is the strong quarterly result of three billion euros.

The change in working capital increased free cashflow in this quarter by around 100 million euros.

In Q3, inventory levels rose.

However, the increase in trade payables nearly offset the impact of the higher inventory on working capital.

The delta between capital expenditure and depreciation reduced free cashflow in the third quarter by about 500 million euros.

Capital expenditure for the first nine months totalled around five billion euros, mainly from the fifth and sixth generation e-modular kits and the construction of the plant in Debrecen, Hungary.

The capex ratio for the year to the end of September was 4.5%. We still expect the ratio for the full year to be around 6%.

Changes in provisions had a negative impact on free cashflow of about 400 million euros.

In the third quarter, the profit-sharing bonus for financial year 2022 was paid out to our employees and the corresponding provision dissolved.

“Other” items boosted free cashflow by around 400 million euros.

At the end of September, free cashflow in the Automotive Segment stood at around 5.8 billion euros.

In the fourth quarter, we are planning for a significant increase in capital expenditure due to usual seasonality. This will negatively impact free cashflow.

As I just mentioned, we expect the capex ratio for the full year to be around 6%.

Inventory will decrease towards the end of the year, but will still be at a high enough level to maintain vehicle supplies to markets.

This will ensure we are able meet the robust global demand for our vehicles in the first quarter of 2024.

The planned significant uptick in costs as well as higher tax payments will weigh on our Q4 free cashflow.

As a result, we still expect a free cashflow of at least six billion euros for the full year 2023.

Slide 8: Financial Services Segment YTD September

Let’s turn now to the Financial Services Segment.

I will focus on the first nine months of this portfolio business.

Year to date September, the number of new financing and leasing contracts concluded with retail customers decreased by 5.6%. This is partly due to higher interest rates – which have substantially increased financing costs for consumers. At the same time, the financial services sector remains as competitive as ever.

However, when we look at the course of the year, we see a clear positive trend in new business in financial services.

While new contracts with end customers in Q1 were just under 20% below Q1 2022, they were back to the previous year's level in Q2.

Driven by higher vehicle sales and by the pre-owned car business, Financial Services reversed the trend in the third quarter. New contracts with end customers rose by 5.7%, compared to the third quarter of 2022.

We expect the positive development in new business to continue in the fourth quarter as well.

The average financing volume per vehicle increased from the previous year – primarily due to an improved product mix in the automotive business. For this reason, the volume of new business decreased by only 1.6% for the year to the end of September.

Segment earnings before tax totalled 2.45 billion euros at the end of September – down 8.3% from the previous year.

This decrease mainly reflects higher refinancing costs and the smaller size of the total portfolio.

Income from the resale of end-of-lease vehicles remains consistently high.

The credit loss ratio is still at the low rate of 0.15% across the entire credit portfolio.

We expect return on equity (RoE) for the full year to be within the range of 16-19%.

Slide 9: Motorcycles Segment in Q3

Let’s move on to the Motorcycles Segment.

In the third quarter, BMW Motorrad sales were on par with the high level of Q3 2022, at just over 52,000 units.

Segment EBIT totalled -4 million euros, compared to 87 million euros in the third quarter of 2022.

This decrease was primarily due to changes to the model launch calendar, compared to the previous year.

EBIT for the year to the end of September totalled 308 million euros and was therefore slightly lower than the previous year (-4.3%).

The EBIT margin came in at -0.6% for the third quarter and 12.0% for the first nine months.

Slide 10: Outlook 2023

I’d like to look now at the outlook for our key performance indicators.

We expect to see stable business development for the rest of the year – and are therefore able to confirm our guidance for the financial year 2023 for all segments. This assumes that the geopolitical and macroeconomic conditions do not deteriorate significantly.

In the Automotive Segment, we are planning for a solid increase in deliveries compared to last year.

The segment’s EBIT margin should come in at between 9 and 10.5%, with a Return on Capital Employed (RoCE) of between 18 and 22%.

The Motorcycles Segment is projected to report higher sales.

In this segment, we expect to see an EBIT margin of between 8 and 10% and a Return on Capital Employed (RoCE) of between 21 and 26%.

In the Financial Services Segment, Return on Equity (RoE) should be between 16 and 19% for the full year.

Slide 11: BMW Group performs as it transforms

Ladies and Gentlemen,

Our third-quarter results once again underline the BMW Group’s performance capabilities. On this basis, we will be able to deliver a strong finish to 2023.

With our attractive premium product portfolio, we are in an excellent position across all brands, segments and drive technologies to take advantage of market opportunities.

We remain cautiously optimistic about the future – despite all the economic and geopolitical volatility.

We have a long-term strategy and we have a clear plan.

Our underlying earning power is the result of continuous, profitable growth in our core business as well as disciplined price and cost management.

It lays the foundation for our business success and allows us to leverage our cashflow to finance our investments in emission-free mobility.

At the BMW Group, our thinking and actions are always geared towards the long term.

We are securing and creating value.

And our financial strength allows us to shape our own future.

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.

• Investment of € 800 million in Mexican production site for integration of fully-electric models of NEUE KLASSE and construction of local high-voltage battery assembly
• Around 1,000 new jobs for Plant San Luis Potosí
• Head of Production Nedeljković: “We are systematically gearing our production network towards electromobility”

San Luis Potosí, Mexico. The BMW Group is accelerating its ramp-up of e-mobility and poised to gain even more momentum with its next vehicle generation, the NEUE KLASSE. The share of 50 percent of the company's worldwide sales of fully electric vehicles could be reached earlier than 2030. The company is investing in expansion of its international production network to achieve this. The plant in San Luis Potosí, Mexico will produce fully-electric models for the NEUE KLASSE in the future and is setting up its own high-voltage battery assembly for this purpose.

“We are systematically gearing our production network towards electromobility. In Mexico, we are investing 800 million euros in our plant and creating around 1,000 new jobs,” explained Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production, in San Luis Potosí at an event attended by Mexican President Andrés Manuel López Obrador and Governor of San Luis Potosí Ricardo Gallardo Cardona.

Nedeljković continued: “The first cars of the NEUE KLASSE will come off the production line at our plant in Debrecen, Hungary, starting in 2025, followed by the main plant in Munich. We will achieve additional volumes by integrating the NEUE KLASSE at Plant San Luis Potosí from 2027 onwards.”

The company only recently announced an investment of 1.7 billion US dollars in the expansion of its Spartanburg production site in the US. This includes one billion US dollars for preparations for production of electric vehicles at the company’s US plant and 700 million US dollars for construction of a new assembly centre for high-voltage batteries in nearby Woodruff. By 2030, the BMW Group aims to build at least six fully-electric models in the US.

Fully-electric models complement production programme in Mexico

A further 800 million euros will be invested in Mexico. Of this amount, 500 million euros is earmarked for construction of a new assembly centre for high-voltage batteries, located on the plant grounds in San Luis Potosí. The new assembly centre spans an area of 85,000 m². More than 500 additional employees will work there, producing next-generation batteries for fully-electric vehicles.

“With this new investment, our plant in San Luis Potosí will play a central role in BMW Group's transition to electromobility. The company is increasing its commitment to Mexico and its stake in our facility, not only due to its strategic location but, above all, to a solid work team, which, in less than four years after starting operations, already produces three models that supply 74 global markets and stand out for their quality,” said Harald Gottsche, President & CEO at BMW Group Plant San Luis Potosí.

At the plant, which went on-stream in 2019, around 3,000 employees already produce the BMW 3 Series, 2 Series Coupé and the new M2– in some cases, exclusively for the global market. The plant is designed to be highly flexible, ensuring only minor adjustments are needed in the body shop and assembly to incorporate the new vehicle architecture. A special feature of the NEUE KLASSE is that the high-voltage battery is directly integrated into the vehicle structure. The assembly in San Luis Potosí is therefore being expanded to integrate this new process into operations. A second shift will begin at the plant in April, adding another 500 new jobs. A total of about 1,000 additional employees will then be working at San Luis Potosí.

BMW iFACTORY as production masterplan

Head of Production Nedeljković: “Flexibility and efficient processes are hugely important elements of our BMW iFACTORY, which forms our strategic masterplan for production.”

Plant San Luis Potosí is characterised by its responsible resource management and measures to reduce CO₂. In such a dry region, conserving water is particularly important. The plant is also home to the BMW Group’s first paint shop to operate without producing process wastewater. The water required for the painting process is treated and then reused. In addition, the plant sources only green power, which it generates itself at a more than 70,000 m² solar power installation on the plant grounds, supplemented by electricity from an external solar farm.

Newly-developed BMW round cells for NEUE KLASSE vehicles

The models of the NEUE KLASSE will use new, round lithium-ion battery cells developed specifically for what will then be the sixth generation of BMW eDrive technology. The new battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent. At the same time, CO₂ emissions from cell production will be reduced by up to 60 percent, as a result of cell suppliers relying on energy from renewable resources and, in the case of the raw materials lithium, cobalt and nickel, using a certain percentage of secondary material, i.e. material already in the cycle.

Steyr. From 2025 onwards, the next generation of e-drives will be created in Steyr – with both production and development on site – as BMW Group Plant Steyr embarks on an electrified future. The BMW Group will be investing around one billion euros in competence development in this area between now and 2030. The significant increase in capacity, which was announced by the company at an event on 20 June, will ensure the Steyr plant in Upper Austria remains the BMW Group’s leading drive-train location.

Combined drive train expertise: Newest generation of e-drives comes to Steyr

“This plant has developed and manufactured combustion engines for our BMW and MINI brands for more than 40 years. One out of every two BMW Group vehicles around the world today already has a ‘heart’ built in Steyr. From 2025, we will also develop and produce the next generation of e-drives here,” explains Milan Nedeljković, member of the Board of Management of BMW AG responsible for production. “Years of experience and a wealth of drive train expertise make BMW Group Plant Steyr the ideal location for the sustainable mobility of the future,” he added at the project launch.

At the event announcing the project, Austrian Chancellor Karl Nehammer added: "The manufacturing industry is an important partner when it comes to strengthening Austria as a business hub, creating jobs and driving innovation. It is an enabler for an effective and sustainably successful fight against climate change. In all these respects, BMW Group in Austria is already today a model company. It functions like a powerful engine for a sustainable future for our country, proving once again that climate protection and economic growth are not contradictory, but can go together." 

Production of e-drives in Steyr: “Most important milestone since groundbreaking”

Alexander Susanek, managing director of BMW Group Plant Steyr, gave an overview of what e-drive production means to the location: “This step is, without question, the most important milestone since the groundbreaking in 1979. We will produce more than 600,000 e-drives per year – while maintaining high production capacity utilisation for diesel and petrol engines. By 2030, around half of our 4,400 employees will work in electromobility. This is also an enormous step towards securing jobs here at the BMW Group site in Steyr for the long term.”

Going forward, Steyr will produce all core components for the innovative, highly-integrated e-drive train: the rotor and stator, the transmission, the inverter and the housing. These components will then be installed on two new assembly lines.

Significant expansion of production area: around 60,000 square metres of new buildings and production facilities

To perform these tasks, existing production areas will be refurbished and new spaces created: A two-storey production hall will house two assembly lines for e-drives, including transmission assembly. The new building will also be used for manufacturing power electronics with clean room technology. A second new building will expand the logistics areas. As a result, the total production area will be expanded by about 60,000 square metres. Investment in production will total around 710 million euros by 2030.

Turning point for Steyr development location: “Entirely new electric drive train will be developed at Steyr site for the first time”

As a development location, Steyr revolutionised the diesel engine and has continued to optimise it ever since. Now, this success story will be repeated for e-drives: In Steyr, a new high-performance e-drive is being developed that will establish a new performance class. “We are strengthening the Steyr location by continuing to expand expertise in electric drive technology. For the first time, an entirely new drive train will be developed here in Austria,” underlined Frank Weber, member of the Board of Management of BMW AG responsible for Development.

The development location will be investing around 230 million euros in these new high-performance e-drives between now and 2030. A third of the 700 developers in Steyr already work in e-mobility. By 2030, this number will increase to around 90 percent.

Sustainable drive trains from Austria for the global market

Plant Steyr’s transformation is taking place in line with the principles of the BMW iFACTORY – Lean. Green. Digital. While “lean” and “digital” represent the use of state-of-the-art production methods for high efficiency, flexibility and quality, the “green” dimension aims to ensure a responsible approach to the environment. In this context, BMW Group Plant Steyr will meet one hundred percent of its energy requirements from renewable sources no later than 2025 – by using green power and heat from regional biomass. This ensures that sustainability begins well before the customer use phase. Plant director Alexander Susanek is delighted: “With our e-drives from net carbon neutral production, we are creating the best-possible conditions for carbon-neutral mobility from 2025.”

Munich/Shenyang. The BMW Group continues to drive the expansion of electromobility and is adapting its production structures to growing demand for fully and partially electrified vehicles. In China, the BMW Brilliance Automotive (BBA) joint venture has expanded its battery factory at the Tiexi location, the so-called “High-Voltage Battery Centre”, with a further battery centre that will immediately begin producing the new and more powerful batteries of the fifth-generation BMW eDrive technology used in the fully-electric BMW iX3*.

The new High-Voltage Battery Centre was officially opened today at a formal ceremony attended by high-level representatives of both the Chinese government and BBA. Representatives of the BMW Group attended the event virtually.

Milan Nedeljković, member of the Board of Management of BMW AG, responsible for Production, said at the opening ceremony: “China is of high importance to the BMW Group, both as a market and as a location for production and innovation. Our investments underline our strong commitment to China and Shenyang over the long term. And the investments are ongoing: The Tiexi and Dadong plant extension projects are well on track. And we are preparing for future growth: With this new Battery Center, we more than double the capacity of our local battery production in China.”

BBA President Dr. Johann Wieland added: “The expansion of our High-Voltage Battery Centre is concrete proof of our commitment to continue investing in Shenyang, Liaoning and north-eastern China. It also shows our determination to take a leading role in sustainable mobility, as we launch our pure electric BMW iX3.”

China is the BMW Group’s largest single market and sets the tempo for e-mobility around the world. With five electrified models currently available, the BMW Group offers Chinese customers the widest range of options in the premium segment. There are already a total of 75,000 electrified BMW models on China’s roads today.

Production of the new fully-electric BMW iX3 will get underway at BBA Plant Dadong by the end of September. The high-voltage batteries it requires will be supplied by the nearby new battery centre. The BMW X3 is the first model available with highly efficient petrol and diesel engines incorporating 48-volt mild-hybrid technology, with a plug-in hybrid drive train, or as a pure electric model.

Fifth-generation high-voltage batteries with significantly higher energy density also use fewer raw materials

The high-voltage battery for the fifth-generation BMW eDrive was developed from the ground up with pioneering new battery cell technology. The high-voltage batteries’ output and energy content can be flexibly scaled for use in different vehicle concepts and segments.

The BMW Group has more than ten years of deep in-house expertise developing battery cells. All know-how flows into precise specifications for battery cells to then be manufactured externally. Systematic research and development efforts not only steadily enhance performance and energy density, but can also continuously improve all relevant battery cell characteristics. Considering all relevant aspects as a whole – especially durability and safety, BMW high-voltage batteries represent the best that can be achieved today. At the same time, the newest battery generation has also been able to reduce the amount of the cobalt used as a raw material by another two thirds. Compared to the battery cells widely used by the BMW Group in its fully-electric vehicles in the past, the battery's gravimetric energy density has been improved by about 20 percent at cell level in the BMW iX3. The BMW Group is sourcing its own cobalt and lithium for the first time and supplying these raw materials to its battery cell producers.

As a leader in sustainability, the BMW Group has also reached a contractual agreement with its cell manufacturers that they will only use green power to produce fifth-generation battery cells.

In future, fifth generation high-voltage batteries will also be produced at the BMW Group Dingolfing plant

The expanded High-Voltage Battery Centre is the first location in the BMW Group production network to manufacture fifth-generation high-voltage batteries. At the same time, the Competence Centre for E-Drive Production in Dingolfing is also gearing up to produce the new fifth-generation high-voltage batteries. These will be installed in additional products, such as the BMW iNEXT and the BMW i4, starting next year. By producing high-voltage batteries where they are needed, the company is able to minimise transportation and thus contributes to sustainability.

BMW Brilliance Automotive joint venture (BBA)

The BBA Brilliance Automotive joint venture was founded in 2003 and has become one of the most successful premium automobile manufacturers in China in recent years, encompassing production and sales of BMW automobiles in China, as well as local development tasks. In 2019, the BBA automotive plants in Tiexi and Dadong produced over 530,000 vehicles for the Chinese market – an increase of more than 9% year-on-year. Maximum capacity at the two plants will reach 650,000 units per year over the coming years.

Munich. Sustainability plays a central role in expanding electromobility. The BMW Group has therefore set itself the goal of creating a closed and sustainable material cycle for battery cells. With a new pilot plant that will produce lithium-ion battery cells, the company is taking the next logical step in penetrating all aspects of the battery cell value chain: from selection of materials, to battery cell composition and design, all the way to near-standard production and recycling.

Milan Nedeljković, member of the Board of Management of BMW AG, responsible for Production: “The new pilot plant will strengthen our expertise in production of battery cells. We will be capable of testing new systems technology and innovative production processes. Our goal is to optimise near-standard production of battery cells from the perspective of quality, performance and costs. The new pilot plant will enable us to close the final gap in the value chain from battery cell development, to production of modules and powertrain components, all the way to installation of fully assembled high-voltage batteries at our vehicle plants. This makes us the first car manufacturer to cover the entire process chain for electric driving.”

Frank Weber, member of the Board of Management of BMW AG, responsible for Development: “By 2023, the BMW Group will have 25 electrified models on the roads, as it systematically increases electrification across all brands and model series. This continued expansion and our comprehensive battery cell expertise will give sustainability a major boost. At the same time, our models’ eDrive technology also ensures brand-typical dynamic performance and driving fun.” Weber continued: “We are not just focused on the most efficient battery cell, but on its entire value chain. That is why we are working with our partners to create a closed material cycle for battery cells.”

The pilot plant will be built in Parsdorf, near Munich, and is scheduled to go into service in late 2022. The total project volume is almost 110 million euros and about 50 employees will work at the plant.

The German Federal Ministry of Economic Affairs and the Bavarian Ministry of Economic Affairs, Regional Development and Energy is supporting the project within the framework of the European funding process IPCEI (Important Projects of Common European Interest).

Near-series production of battery cells

The company just opened a separate Battery Cell Competence Centre in Munich in November 2019, covering the entire battery cell value chain, from research and development to battery cell composition and design, all the way to large-scale manufacturability.

The BMW Group is taking the next logical step with the new pilot plant and further expanding its expertise. The goal is to enhance battery cells’ performance capabilities and demonstrate large-scale manufacturability. To do so, the BMW Group will develop innovative production processes and systems, which will then be installed at the 14,000 m² pilot plant. Using production processes and systems also employed in standard production, the company will be able to demonstrate the industrial feasibility of future battery cell generations. The main focus will be on optimising production efficiency, costs and quality.

Building on know-how from the Battery Cell Competence Centre and, later, also from the pilot plant, the BMW Group will bring optimal battery cell technology to series maturity within the shortest implementation time possible and enable suppliers for battery cell production to its own specifications.

A quarter of BMW Group vehicles sold in Europe should have an electric drive train by 2021; a third in 2025 and half in 2030.

The sustainable battery cell of the future will be recyclable

To make an effective contribution to climate protection, the overall environmental balance of all vehicle components must be improved and partners brought into the process. This applies in particular to energy-intensive production of battery cells for electric vehicles. Up to 40 percent of a fully-electric vehicle’s CO2 emissions come from battery cell production alone.

To develop innovative and sustainable battery cell technology, the BMW Group is working as part of a technology consortium with the Swedish battery manufacturer, Northvolt, and Umicore, a Belgian developer of battery materials. The collaboration is focused on creating an end-to-end sustainable value chain for battery cells in Europe, extending from development to production to recycling.

Northvolt will produce the battery cells at its own gigafactory currently under construction in Skellefteå in northern Sweden from 2024 on. Northvolt will obtain the energy needed to produce the battery cells exclusively from wind and hydroelectric power generated regionally in northern Sweden.

Umicore will contribute to development of a sustainable battery cell in Europe. Recyclable cell design is a consistent focus from the very beginning of battery cell development. Faced with rapidly growing demand for battery cells, recycling of battery components at the end of their lifecycle and extensive reuse of raw materials will be key to closing the materials loop in the best way possible.

BMW Group battery cells to be produced with 100% green power from fifth generation on

As a leader in sustainability, the BMW Group has already reached a contractual agreement with its cell manufacturers that they will only use green power to produce fifth-generation battery cells.

The fifth-generation battery cell will be on the roads later this year in the BMW iX3* and rolled out in more products over the coming year, like the BMW iNEXT and the BMW i4.

As volumes increase, the use of green power will save around ten million tonnes of CO2 over the next ten years. For comparison, that is roughly the amount of CO2 a city of over a million inhabitants, like Munich, emits per year.

IPCEI: European support programme for innovative and sustainable battery cells made in Europe

The Federal Ministry of Economic Affairs and Energy (BMWi) is currently working with German and European industry on two programmes to support battery cell innovation. These are being realised as “Important Projects of Common European Interest” (IPCEI) and include projects from many European member states. Projects from both support programmes cover the entire battery value chain, from raw and functional materials to cell production and integration, all the way to second use and recycling. The aim is to establish a value chain in Germany and Europe that uses innovative technologies, while also meeting the highest standards for sustainability and production carbon intensity. For this reason, the projects are focused on research and innovation, as well as industrialisation of new technologies. The BMWi is contributing more than a billion euros for both support programmes.

The BMW Group has been analysing battery cells since 2008 and, thanks to this long-standing experience, already has extensive knowledge in the field of cell analysis. Through the research conducted by the support programmes, the BMW Group will be able to refine chemical composition, cell mechanics, cell design and the production process down to the last detail. Battery cell manufacturers can build on this know-how and use it in a targeted manner for sustainable and successful industrialisation.

- 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!

Munich/Dingolfing. The BMW Group is stepping up its e-mobility ramp-up and setting new standards for the transformation of the industry with its production. Today, at its largest European manufacturing location in Dingolfing, the company opened the Competence Centre for E-Drive Production. Having produced electric powertrain components in Dingolfing since 2013, the BMW Group is now expanding its capacity significantly. Bavarian Minister-President Markus Söder and Chairman of the Board of Management of BMW AG Oliver Zipse symbolically launched production of the new, highly integrated BMW e-drive, which combines the electric motor, transmission and power electronics in a central housing. The new generation of the BMW e-drive will be used for the first time in the new BMW iX3, which will go into production in China in late summer.

At the Competence Centre in Dingolfing, the BMW Group will produce electric powertrain components such as battery modules, high-voltage batteries and electric motors on eight production lines. Over the coming years, the company will set up four additional lines, which will boost the location’s production capacity significantly.

Chairman of the Board of Management of BMW AG Oliver Zipse said at the inauguration: “We continue to ramp up electromobility and set standards for the transformation of our industry. By 2022, in Dingolfing alone, we will be able to produce e-drives for more than half a million electrified vehicles per year. At the same time, we will produce a mix of fully-electric vehicles, plug-in hybrids and models with a combustion engine on a single line, as required by demand, so we can offer our customers the ‘Power of Choice’. This shows how we have paved the way for making the shift in our industry a real success story.”

In the next few years, the production area of the Competence Centre for E-Drive Production will be expanded to ten times the original size: from 8,000 square metres in 2015 to 80,000. The number of employees will also be increased. In the first half of 2020 alone, the workforce grew from 600 to 1,000. Up to 2,000 employees will work in production of e-drives at the Dingolfing location in the medium term.

In-house production of high-voltage batteries and electric motors

“Our unique expertise in producing high-voltage batteries and electric motors ensures our technology is always state of the art and we are able to ramp up production quickly and systematically in line with demand,” explained Michael Nikolaides, head of Planning and Production Engines and E-Drives. A quarter of BMW Group vehicles sold in Europe should have an electric drive train by 2021; a third in 2025 and half in 2030. By 2023, the BMW Group will offer its customers no fewer than 25 electrified models – around half of them with a pure electric drive train.

The BMW Group possesses extensive expertise throughout the entire value chain. Both the new, highly integrated e-drive and new high-voltage batteries were developed in-house in close cooperation between development departments and production. The company is pooling its expertise in large-scale standard production of electric drive trains at the Competence Centre for E-Drive Production and thereby ensuring efficient production that can respond to demand for drive trains for fully and partially-electric vehicles at short notice. “Experience with our flexible production system for combustion engines has been fed into the design of our e-drive production. As a result, e-drive production is also able to respond quickly to demand for BEV and PHEV vehicles. In this way, we are realising the ‘Power of Choice’ for our customers,” explained Nikolaides.

The Competence Centre has also standardised the technology used in production of battery modules for new fifth-generation high-voltage batteries, refining the process to reflect the growing range of electrified models and allowing different module variants to be produced on the same line. In this way, the company is not only setting the course for production technology, but also securing jobs and key qualifications.

Dingolfing site transforms itself for electromobility

“BMW Group Plant Dingolfing is a perfect example of how the automotive industry is transforming itself for e-mobility. We have everything under one roof here: production of batteries, electric motors and electrified vehicles,” explained Christoph Schröder, head of BMW Group Plant Dingolfing. Today, around ten percent of the vehicles produced in Dingolfing are already electrified. With the launch of the BMW iNEXT in 2021, Plant Dingolfing will be capable of producing fully-electric vehicles, plug-in hybrids and models with a combustion engine on a single line. “That’s how we are implementing the ‘Power of Choice’ in car production,” Schröder added. These highly flexible structures will also benefit the next generation of the BMW 7 Series, which will be produced at the site and released onto the market as petrol, diesel, plug-in hybrid and – for the first time – fully-electric variants.

Dingolfing has years of expertise building components for electric vehicles. Series-produced high-voltage batteries for the BMW i3 have been coming off the line here since 2013. This location has also produced electric motors since 2015. The majority of high-voltage batteries and electric motors for all BMW Group electrified vehicles come from the Competence Centre for E-Drive Production. The existing structures of a large former parts warehouse belonging to BMW Group aftersales logistics have been retrofitted and used for this purpose in recent years.

“At the same time, we have driven the long-term shift of competence at the location by providing employees with targeted training for new tasks and extending development into electromobility as an area of future activity,” said Chairman of the Dingolfing Works Council Stefan Schmid. “Further education and qualification are key to a successful transformation.”

Global e-drive production network focused in Germany

The BMW Group has a highly flexible production network for electric drive trains. The high-voltage batteries needed for electrified vehicles come from the company’s three battery factories in Dingolfing, Spartanburg (USA) and Shenyang (China). The BMW Group has also localised battery production in Thailand, where it is working with the Dräxlmaier Group. BMW Group Plants Dingolfing and Landshut produce electric motors. The Battery Cell Competence Centre in Munich covers the entire battery cell value chain, from research and development to battery cell composition and design, all the way to large-scale manufacturability.

Fifth-generation BMW eDrive technology

On the same day as the official opening, the Competence Centre also began production of the fifth-generation electric drive train. This highly integrated electric powertrain component combines the electric motor, transmission and power electronics in one housing. Materials considered rare earths are also no longer required. The drive train is compatible with all vehicle concepts and will be available with various power levels for different models. The system’s highly integrated design increases power density significantly.

The fifth-generation BMW eDrive technology features new and more powerful high-voltage batteries. Thanks to their scalable modular design, these can be used flexibly in the respective vehicle architecture and at the respective production locations. The Competence Centre is currently preparing to ramp up production of these new high-voltage batteries.

Sustainable long-term materials sourcing

Sustainability and security of supply are important factors in the expansion of electromobility. The BMW Group sources the battery cells needed for production of high-voltage batteries from leading system suppliers who manufacture the cells to the BMW Group’s exact specifications.

For the BMW Group’s purchasing experts, ethically responsible raw material extraction and processing starts at the very beginning of the value chain: They take a keen interest in battery cell supply chains – all the way down to the mines themselves. Compliance with environmental standards and respect for human rights are top priority.

For its new fifth-generation electric high-voltage batteries, the company has restructured its supply chains and will source cobalt and lithium for battery cells directly from 2020. This ensures full transparency over where these two important battery raw materials come from. Supply contracts also guarantee supply security up to 2025 and beyond. Going forward, cobalt will be sourced directly from mines in Australia and Morocco, while the lithium will come from Australia and other countries.

Good morning, and welcome to the BMW Group!

This is the time of year we usually meet in Geneva and it is unfortunate that this year, we are unable to do so. However, safety is always our highest priority and we fully understand and respect the decision taken by the Federal Council of Switzerland. We would like to express our utmost empathy to all those directly affected across the world. And in these truly challenging times, we all hope that the virus will soon be contained, and we can all return to everyday life.

Even though we couldn’t meet in Geneva, we felt that it was important to give everyone an update on “what’s new” at the BMW Group. And also, to pay tribute to the many people who have worked tirelessly on our new products and their presentation. And that’s why we are here, at the very heart of BMW Group Design, for the world premiere of a very special concept car.

At the BMW Group, we believe in the power of choice and electro-mobility is an important part of that. That’s why we are launching many new electrified vehicles over the next few years.

The brand-new MINI Electric is already in high demand, with more than 120,000 registered interests and close to 7,000 order intakes. This proves it is the perfect car for urban areas! This year we will be launching the all-electric BMW iX3 - our first pure electric Sports Activity vehicle - and the trailblazer for our all-new fifth generation BMW eDrive technology. We will also be launching further plug-in hybrids in 2020: For example, the new BMW X1 plug-in hybrid, the BMW X2 and the electrified BMW 3 Series Touring will be attractive additions to our wide range. Already, we have over half a million BMW Group electrified vehicles on the road. And we intend to double this number by the end of next year.

More fully-electric vehicles will be coming next year, including the BMW iNEXT and the BMW i4. Today, we want to give you a glimpse of the BMW i4. Let’s take a look! (Unveiling of the BMW Concept i4)

Ladies and Gentlemen: The Concept i4!

This four-door BMW Gran Coupé is fully electric and just as fascinating and fast as it looks. It is also suited to long distances, with an electric range of up to 600 kilometres, based on the new WLTP test cycle. Powered by our fifth-generation BMW eDrive technology, it has a very slim battery with optimum energy density.

Moreover, the development and production of the e-drive is done in-house, as well as the battery cell research. The e-drive offers a thrilling peak performance of up to 530 horsepower. And, we will not use any rare earths in the electric motor.

All of this shows that we are fully committed to climate protection.

I can assure you and our customers: We will fulfil the tough European CO2 regulations for 2020 and 2021. This year alone, we will reduce our European fleet target by around 20 percent.

I promise you: Our customers will never have to compromise between driving pleasure and sustainable mobility. Every BMW will drive like a true BMW. The BMW i4 will definitely be proof of that! We will build this great car right here in Munich, and I can tell you this: The design you see here is quite close to the actual series car.

Thank you!

San Luis Potosi/Munich. High-level representatives of the Mexican government and the BMW Group officially opened the company’s new automotive plant in San Luis Potosi in Mexico today.

Oliver Zipse, member of the Board of Management of BMW AG responsible for Production, stated during the ceremony: “The new plant in San Luis Potosi is an important pillar of the BMW Group’s global production strategy. We aim to achieve a balance in our production and sales in the different world regions. We want to strengthen our footprint in important and growing markets. Plant San Luis Potosi will significantly boost our regional production flexibility in the Americas. From here, we are delivering our locally produced BMW 3 Series Sedan to customers worldwide.”

The company has invested more than one billion US dollars in the new production location. The plant, which already employs 2,500 people, will have a capacity of up to 175,000 units per year once the ramp-up phase is fully completed.

San Luis Potosi will build the BMW brand’s most successful model series: the BMW 3 Series Sedan. In the company’s more than 100-year history, this iconic car has come to represent the heart of the brand, setting the standard for dynamic performance, efficiency and design.

The ceremony in San Luis Potosi was attended by guests including Dr. Alfonso Romo Garza, Head of the Office of the Presidency of the Mexican Republic; Dr Juan Manuel Carreras López, governor of the state of San Luis Potosi; Oliver Zipse, member of the Board of Management of BMW AG responsible for Production; Milagros Caiña-Andree, member of the Board of Management of BMW AG responsible for Human Resources and Labour Relations, and Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

Head of Human Resources Milagros Caiña-Andree highlighted the BMW Group’s strong commitment to vocational education: “Our highly-trained employees form a strong foundation for our new BMW Group Plant San Luis Potosi and help us meet high quality standards for our premium products. Our dual vocational training programme is already in its fourth generation.”

At an innovative new training centre on the plant grounds, all new staff and apprentices are trained in the BMW Group’s latest production processes and technologies, based on the dual vocational training model. The centre is not just focused on expanding employees’ and apprentices’ technical skills, but also boosting motivation, enthusiasm and team spirit.

The plant is working with four technical institutes in this area and has already trained 250 apprentices in technical occupations.

Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network: “We have a strong supplier base we can build on in Mexico, having sourced high-quality, technologically sophisticated and innovative products from here for more than ten years. Every BMW Group vehicle today already contains at least one part from one of our 220 Mexican suppliers. Our new plant will benefit from short supply routes and the high level of flexibility this gives our supply chain.”

The BMW Group has operated its own local purchasing office in Mexico since 2008. In 2017, the office relocated from Mexico City to San Luis Potosi, where it now employs 105 people. The BMW Group’s purchasing volume in Mexico reached USD 2.5 billion last year.

Focus on flexibility, digitalisation and sustainability

Hermann Bohrer, director of the Mexican plant: “The plant was designed from the start to allow us to respond quickly and flexibly to future model variants and production volumes. We use innovative Industry 4.0 technologies, including new automation solutions and modern assistance systems. Sustainability was also a major focus from the beginning – and we are setting new standards in this area.”

Latest Industry 4.0 technologies

The BMW Group used digital 3D plans during construction of the plant, both for the building itself and for the installation of equipment. During every phase of construction, architects entered specific information, such as location, dimensions and completion date into digital models. Digital 3D-scanning technology was also used during construction for the first time. Combining these two technologies allowed for real-time analysis of construction progress and cost-efficient modifications, providing the BMW Group with continuous planning reliability.

The new BMW Group plant is a pioneer in the field of intelligent maintenance. Smart Maintenance Assistant Software is being used for the first time, enabling proactive maintenance throughout the plant to be planned ahead of time, thereby increasing equipment availability. Service activities are based on current, intelligently organised system data instead of predefined maintenance intervals. Using smart devices such as tablets and smartphones, staff receive all relevant information regarding equipment status.

Various Industry 4.0 technologies are used, for example, in assembly, where screens have largely replaced paper throughout the assembly process. Two screens per takt provide staff with all the information they need – information which, in the past, was only available on paper. This digital job card is being used for the first time at the BMW Group plant in Mexico.

Robots and employees work directly alongside one another in engine pre-assembly, cooperating in a way which plays to the strengths of each. Robots have the power to turn the heavy convertor, while the employees have the manual dexterity to make the final adjustments to fit them together precisely.

New sustainability benchmarks

From the first full year of production, the facility in San Luis Potosi will be the BMW Group’s most resource-efficient plant.

Careful use of water resources is a primary sustainability objective. The site, with the production network’s lowest water consumption per vehicle produced, will be the BMW Group’s first paint shop to generate no process wastewater at all. The water needed for the painting process is reconditioned and reused.

The use of renewable energy sources ensures that the plant will be supplied with 100% CO2-free electricity in future. A solar energy plant on-site, covering an area of more than 70,000 m², will produce part of the energy.

Production for the global market

The new plant in Mexico expands the BMW Group production network to a total of 31 locations. In line with the BMW Group’s Strategy NUMBER ONE > NEXT, this ensures the company has a flexible and efficient international production network, with a good balance of value creation between Europe, Asia and the Americas.

The new location in Mexico is another building block in this growth strategy. The country is a member of the NAFTA free-trade area with Canada and the United States. It also has a large number of free-trade agreements, including with the European Union and MERCOSUR, which make it easier to export cars and import supplied parts.

The NAFTA region in particular, with its consistently high sales volumes, is a key market for the BMW Group. Twenty five years ago, the BMW Group opened its plant in Spartanburg, USA, and has since invested nearly nine billion US dollars in the site. The company will invest a further 600 million US dollars there by 2021 to gear it up for future generations of the BMW X models. The number of jobs will increase in parallel to around 11,000. In total, the company supports almost 70,000 direct and indirect jobs in the US.

The BMW Group in Mexico

The BMW Group sales company in Mexico is celebrating its 25^th anniversary this year. The local sales company is not only responsible for the Mexican market, but also manages the company’s business strategy for the whole Latin America region, covering a total of 28 countries. Delivering continuous growth, Mexico is the most important market in this region.

In 2018, the BMW Group sold a total of 25,090 vehicles (18,501 BMW, 6,589 MINI) in Mexico – an increase of more than 13% over the previous year.

Please note: The opening of the new BMW Group plant in San Luis Potosí will be broadcast live at this link: https://bit.ly/2K5RAG5.

Jochen Goller

President and CEO of BMW Group Region China.

Good morning and welcome!
As you would expect from the BMW Group, you are going to see a real firework of new products. To start with, we have the all-new BMW 3 Series standard wheel-base, celebrating its China premiere today. The 3 Series has a special meaning to us: It embodies pure sportiness. And it was also the first model to be produced in China in 2003. The 3 Series legacy is closely tied to our success in this market.

Today China truly stands for rapid transformation and technological advancement. That’s why our largest R&D footprint outside of Germany, is right here in China. Guided by our new China Strategy, we focus on four aspects of future mobility – autonomous, connected, electrified and services. That enables us to unleash the full potential of this highly dynamic market. 

Our company is in the midst of its strongest product offensive ever, and we can already see the positive impact: BMW Group China achieved a year-on-year growth of 10% in the first Quarter.

Localization is one key driver of this performance.

Very soon, we will start production of the all-new 3 Series in Shenyang, offering both standard and long-wheelbase models. Driven by the launch of new products, our good momentum will continue in the coming months. And now let’s get started. Please welcome Pieter Nota!

Pieter Nota

Member of the Board of Management of BMW AG.
Customer, Brands, Sales  

Good morning!
Since April, our brands BMW, MINI and Rolls-Royce have been united as one division in our company. I am thrilled to lead these three exciting and emotional brands.

We’re proud to celebrate the world premiere of the new MINI Clubman here in Shanghai. To tell you more, please welcome Bernd Koerber, our new Senior Vice President of MINI.

Bernd Koerber

Senior Vice President MINI.

More than ever before, the MINI Clubman embodies driving fun and individual style in its class. Its concept with four doors and the two split doors at the rear continues to be unique. Building on that success, it now has a new front and rear appearance: A fresh design of the grille, new LED headlights and the rear lights in Union Jack design. The interior benefits from the new MINI Yours package. And customers can enjoy advanced digital services from MINI Connected.

MINI is all about emotion and 2019 will be an exceptional year for the brand! This year is MINIs 60th birthday, which we are celebrating with a highly appealing design model. This MINI 60 Years Edition is available as a 3-door and a 5-door. You can view them at our MINI stand. I hope to see you there!

Timo Resch

Vice President Sales and Marketing BMW Motorrad.

BMW Motorrad is still growing strongly in China.

Last year our sales increased by 36 percent here.

A big “thank you” to our Chinese customers!

And this impressive bike will add to that momentum.

The BMW S 1000 RR shaped the brand with its outstanding dynamics when it was launched a decade ago. And it still dominates the segment. For the all-new 2019 “Double R” our goal was simple: “Make it even better”.

And we did just that: It is up to 14.5 kg lighter. The assistant systems make it easy to control – on public roads and also on the race track. And the new engine with BMW ShiftCam Technology makes this new Double R the most powerful bike we ever built. And, we’ve combined the power of M with Motorrad: This is the first motorcycle to feature an M package and M Performance parts such as carbon fibre wheels, an M sport seat and many more.

Let’s stay with the power of “M” and it’s back to Pieter Nota with some great new cars. Thank you.

Pieter Nota

Member of the Board of Management of BMW AG.
Customer, Brands, Sales.

Here they are!
The world premiere of two cars BMW M fans all over the world have been waiting for. Our X models accounted for around 40 percent of global BMW sales in 2018. So I’m very confident that the expansion of our high-performance line-up with the BMW X3 M (fuel consumption combined: 10.5 l/100 km; CO2 emissions combined: 239 g/km) BMW X4 M (fuel consumption combined: 10.5 l/100 km; CO₂ emissions combined: 239 g/km) will be a great success.

Both of them feature the most powerful straight-six petrol engine of any M model ever. We’re talking about 510 horsepower. And around 4.1 seconds from zero to a hundred in these Competition models here. Add to that power: M typical dynamics, agility and precision.

And now Ladies and Gentlemen:

The world premiere of the all-new BMW 3 Series Long Wheelbase – created exclusively for Chinese customers!

Every third BMW 3 Series is sold right here in China and eighty percent are long wheelbase models. Chinese and German engineers worked together to develop the new BMW 3 Series Long Wheelbase. More than ever, we focused on exceeding Chinese customers’ wishes. We combined the outstanding design of the BMW 3 Series with the most generous and comfortable interior in its class. Let’s take a closer look. The BMW 325 Li offers best-in-class roominess thanks to a wheelbase that is 11 cm longer, as well as China specific comfort features, such as extra soft headrests.

It also premieres BMW’s new smart digital character – the BMW Intelligent Personal Assistant – in its Chinese version. With our Intelligent Personal Assistant, we offer cutting-edge artificial intelligence technology to make our customers’ lives easier. To demonstrate this and other digital features, I am delighted that one of our senior instructors here in China is with us today.

Vin Dong, the stage is yours.

Vin Dong

Senior Instructor BMW China.

Demonstration BMW Intelligent Personal Assistant

Pieter Nota

Member of the Board of Management of BMW AG.
Customer, Brands, Sales.

In a nutshell:
Future mobility at the BMW Group is sustainable, connected and autonomous. The BMW iNEXT will take individual mobility to a whole new level in 2021. You can already take a closer look at the Vision iNext here on the stand.
It combines many future technologies. Of course, it’s fully-electric, with a range of over 600 kilometres.

It offers full connectivity, as well as the launch of highly-automated driving capabilities and a completely new interpretation of interior space – we call it “my favourite space”. This opens a whole new chapter for the BMW Group. Technologies from the iNEXT will be transferred to our entire model line-up.

Being mobile will continue to be a big part of our lives.

And I am very sure that China will play a leading role in this new era of mobility.

Thank you and Xie Xie.

Munich/Shenyang. The BMW Group sets the course for the next chapter of its successful business development in China. With a long-term contract extension for the joint venture BMW Brilliance Automotive (BBA) and extensive investments for further expansion of the production capacity, the company plans to drive dynamic growth in the world’s largest automobile market.

In the context of the 15^th anniversary of BBA, the BMW Group announced together with its partner Brilliance China Automotive Holdings Ltd. (CBA) the early extension of the joint venture contract and the further deepening of the existing successful collaboration. The extended contract is valid for 22 years (from 2018 to 2040). Furthermore, the BMW Group intends to increase its stake in BBA from 50 percent to 75 percent and both partners have today signed a corresponding agreement. This transaction is subject to the approval of the relevant authorities and the consent of the CBA Shareholders’ Meeting.

At the same time, the joint venture also announced an investment of more than three billion euros in new and existing plant structures in Shenyang over the coming years. In Tiexi, a new plant on the existing plant ground will double the site’s capacity, while extensive remodelling and expansion measures will target the neighbouring plant in Dadong. Production capacity there will remain the same, but the structure of the plant will gradually be expanded for future BMW model variants and the expected market growth. As a result, the total annual production capacity of BMW automobiles at the BBA plants will gradually increase to 650,000 units from the early 2020s, creating 5,000 new jobs.

“We are consistently following our growth strategy for China. With continuous investment, as well as the development and production of electric vehicles, we underline China’s importance as a dynamic growth market for us,” said Harald Krüger, Chairman of the Board of Management of BMW AG. “Our success story goes hand in hand with the success of the joint venture BBA. Together with our partners, we contribute to the sustainable development of the Chinese market,” he added.

In 2017, the BBA automotive plants in Tiexi and Dadong produced almost 400,000 vehicles. Currently, six BMW models are produced in Shenyang: Plant Tiexi manufactures the BMW 1 Series Sedan, the BMW 2 Series Active Tourer, the BMW 3 Series Sedan (including Long Wheelbase version) and the BMW X1 (including plug-in hybrid version). At Plant Dadong, the BMW 5 Series Long Wheelbase version (including plug-in hybrid version) and the BMW X3 are manufactured. From 2020, the fully-electric BMW iX3 will also roll off the production line at Plant Dadong, its sole production location, and be exported from China to markets worldwide.

Anniversary celebration in Shenyang
The anniversary celebration held at the BBA automotive plant in Tiexi / Shenyang was attended by Yumin Qi (Chief Executive Officer of Brilliance China Automotive Holdings Ltd.), Xiaoan Wu (Chairman of BBA), Harald Krüger (Chairman of the Board of Management of BMW AG), Dr. Nicolas Peter (Member of the Board of Management of BMW AG, Finance), Oliver Zipse (Member of the Board of Management of BMW AG, Production) and representatives of the Chinese government.

“BMW Brilliance Automotive is a unique success story and provides an outstanding example of a strong partnership built on trust,” added Yumin Qi, Chief Executive Officer of Brilliance Automotive Group Holdings. “This joint success is also driving economic development in Liaoning Province.”

BBA lays the foundation for further growth of the BMW brand in China

“Today, as well as celebrating 15 years of a strong and reliable partnership with Brilliance, we are also laying the foundation for further growth of the BMW brand in China,” stated Dr. Nicolas Peter, member of the Board of Management of BMW AG, responsible for Finance.

In the past 15 years, BBA has become a cornerstone of the BMW brand’s success in China, the brand’s biggest single market. In 2017, around 560,000 BMW brand vehicles were delivered to customers in China. Two-thirds of all BMW vehicles sold in China last year were produced by BBA at the two automotive plants in Tiexi and Dadong.

With a proven dealer network, a total of 16 new products for launch in 2018 and an ongoing product roll-out in the upcoming years, the BMW Group strives to continue its success in China. In the first eight months of 2018, deliveries increased by 4.2 percent and, for the first time, exceeded 400,000 units. With a wide range of R&D activities and extensive local production, the company is poised for future growth, making a lasting contribution to the local economy.

A leader in electromobility: full range of drivetrains on a single production line

The BMW Group anticipates strong growth in demand for electric and electrified vehicles in China. As a leader in electromobility, the company is systematically gearing its production towards this trend. With six electrified models currently available, the BMW Group offers Chinese customers the widest range of options in the premium segment. In 2017, the BMW Group more than doubled its sales of electrified vehicles in China from the previous year and expects this growth to continue in 2018.

With its highly flexible production system, the new plant in Tiexi will be able to build vehicles with fully electric, partially electric and conventional drivetrains on a single production line.

“We are expanding our production system in Tiexi with a new plant. This new plant, together with the existing engine plant and battery factory, will put us in an ideal position,” according to Oliver Zipse, member of the Board of Management of BMW AG, responsible for Production. “With our highly flexible production system, we can respond quickly to market demand and would be able to ramp up production of electric vehicles to 100 percent of our output.”

In addition to its two existing vehicle plants, BBA opened its own battery factory in Tiexi a year ago. In May 2018, the company laid the foundation stone for a major expansion of this battery factory. The new “High-Voltage Battery Centre Phase II” will produce new, more powerful batteries with fifth-generation BMW eDrive technology for the fully-electric BMW iX3.

The BMW Brilliance Automotive (BBA) joint venture

The BMW Brilliance Automotive joint venture was founded in 2003. Over the past 15 years, it has become one of the most successful premium vehicle manufacturers in China, encompassing production and sales of BMW automobiles in China, as well as local R&D. In 2017, the BBA automotive plants in Tiexi and Dadong produced almost 400,000 vehicles for the Chinese market – an increase of around 30 percent year-on-year.

Since 2009, BMW Brilliance Automotive has invested more than 52 billion RMB in its plants in Shenyang. In total, BBA employs more than 18,000 employees. Since the founding of the joint venture, the supplier network has expanded to more than 350 companies. More than 80 suppliers have set up locations in the Liaoning province.

“15 years of BMW Brilliance is a joint success story that we share with our partners and over 18,000 associates. With this additional investment, innovation and job creation, we will continue our high-quality development and drive economic growth in Liaoning Province,” said Dr. Johann Wieland, president of BBA.

If you have any questions, please contact:

Corporate Communications

Saskia Eßbauer, Corporate and Culture Communications
Saskia.Essbauer@bmw.de, Telephone: +49 89 382-24118

Max-Morten Borgmann, Corporate and Culture Communications
Max-Morten.Borgmann@bmwgroup.com, Telephone: +49 89 382-24118

Mathias Schmidt, Head of Corporate and Culture Communications

Mathias.M.Schmidt@bmw.de, Telephone: +49 89 382-24544

Sandra Schillmöller, Communications BMW Group Production Network

Sandra.Schillmoeller@bmwgroup.com, Telephone: + 49 89 382-12225

Frank Wienstroth, Head of Communications BMW Group Production Network

Frank.Wienstroth@bmw.de, Telephone: + 49 89 382-54459

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmw.de

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises 30 production and assembly facilities in 14 countries; the company has a global sales network in more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles and more than 164,000 motorcycles worldwide. The profit before tax in the financial year 2017 was € 10.655 billion on revenues amounting to € 98.678 billion. As of 31 December 2017, the BMW Group had a workforce of 129,932 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Whether in the DTM, the IMSA WeatherTech SportsCar Championship, or countless other championships: Week after week BMW teams and drivers around the world do battle for points, victories and titles. Away from the track too, members of the large BMW Motorsport family around the world are also creating headlines. The “BMW Motorsport News” allows us to regularly summarise all the action for you in a compact and informative manner. This way, you are always up to speed. 

IWSC: BMW Team RLL starts from row two on the grid.

The BMW drivers will start the IMSA WeatherTech SportsCar Championship race at Laguna Seca (USA) from promising grid positions. GTLM qualifying saw John Edwards (USA) clock the third fastest time in the number 24 BMW M6 GTLM. His team-mate Alexander Sims (GBR) qualified fourth in the number 25 car. When the race gets underway at 14:05 local time on Sunday, Edwards will share the driving duties with Martin Tomczyk (GER). Sims will do battle for more points in the race for the title alongside Bill Auberlen (USA).

ADAC GT Masters: Action-packed finale at Hockenheim.

The ADAC GT Masters drew to a close this weekend at the Hockenheimring (GER). Philipp Eng (AUT) and Nick Catsburg (NED), at the wheel of the number 42 BMW M6 GT3, were classified 13^th in the final race on Sunday. Starting from pole position, the BMW M6 GT3 led the field until shortly before the end of the race. However, a collision with the second-placed Porsche on the final lap, and the ensuing penalty, dropped Catsburg to 13^th place. The duo had previously finished 17^th in the Saturday race. Saturday’s winner Jules Gounon (FRA) claimed the Drivers’ title. Eng ended the season in fourth place with 116 points. In the Team Championship, BMW Team Schnitzer was seventh in the final standings (121 points). The BMW M6 GT3 achieved three pole positions and one race victory, at Oschersleben (GER), during the 2017 season.

FIA GT World Cup: Wittmann and Mostert to drive for AAI Motorsports.

The BMW contingent for this year’s FIA GT World Cup in Macau (CHN), from 16th to 19th November 2017, is growing. As well as the 18th BMW Art Car, designed by Cao Fei (CHN), a further two BMW M6 GT3s will take their place on the grid at the legendary “Guia Circuit”. The two cars will be run by AAI Motorsports and driven by DTM champion Marco Wittmann (GER) and Chaz Mostert (AUS). Wittmann drove for AAI in the GT race in Macau in 2014, when he finished seventh. Mostert comes from the Australian V8 Supercars championship and drove the BMW M6 GT3 in the 12-hour race in Bathurst (AUS) at the start of the year.

VLN: Podium for Walkenhorst Motorsport.

The Walkenhorst Motorsport team finished third overall in race seven of the VLN Endurance Championship Nürburgring on Saturday. The number 100 BMW M6 GT3 of Christian Krognes (NOR), Michele di Martino (GER) and Matias Henkola (FIN) came home 1:37.987 minutes behind the winning Porsche after 21 laps of the iconic Nordschleife. The race was aborted following a crash on the Fuchsröhre section of the track. The second Walkenhorst car – the number 35 BMW M6 GT3, with Jordan Tresson (FRA) and Henry Walkenhorst (GER) at the wheel – finished sixth. Schubert Motorsport also claimed a top-ten finish with a BMW M6 GT3; Claudia Hürtgen (GER), Frederik Nymark (DEN) and Anders Buchardt (NOR) came home eighth. In total, the BMW teams claimed five class victories at the 57^th ADAC Reinoldus-Langstreckenrennen. BMW Team Schnitzer was also in action when driver Markus Palttala (FIN) took to the track for a number of test laps with the BMW M6 GT3 Evo Package for 2018.

BMW M235i Racing Cup: Schrey takes victory for Bonk Motorsport.

Reigning BMW Sports Trophy champion Michael Schrey (GER) celebrated another victory in the BMW M235i Racing class at round seven of the VLN Endurance Championship at the Nürburgring (GER). After 19 laps of the “Green Hell”, he crossed the finish line almost 22 seconds ahead of second-placed Jäger Thomas (AUT) and Rudi Adams (GER) from the Scheid-Honert Motorsport team. They were joined on the podium by David Griessner (AUT) and Yannick Fübrich (GER) who finished third in the Pixum Team Adrenalin Motorsport BMW M235i Racing. In total, the class featured 16 cars.

BMW Motorsport Juniors: Visser and Marschall in the BMW M4 GT4.

BMW Motorsport Juniors Beitske Visser (NED) and Dennis Marschall (GER) are heading to Spain this week. The duo will drive the new BMW M4 GT4 at the penultimate race weekend of the GT4 European Series Southern Cup at the “Circuit de Catalunya” in Barcelona (ESP). The number 200 car will be run by Schubert Motorsport. This is the first start in the series for the newly-developed BMW M4 GT4. As of 2018, BMW Motorsport customers will be able to do battle for points and victories with the new car.

BMW Motorsport Juniors: Eriksson wins in Spielberg.

The DTM was not the only series in action in the Styria region of Austria this weekend; the FIA Formula 3 European Championship also held races 25, 26 and 27 of its season as part of the support programme for the touring car series. The Red Bull Ring (AUT) proved to be a happy stomping ground for BMW Motorsport Junior Joel Eriksson (SWE). He led the second race of the weekend at the 4.318-kilometre circuit from start to finish. In doing so, he claimed his fifth win of the 2017 season. Eriksson also finished runner-up to take his place on the podium in race one in Spielberg. The Swede scored his second win of the weekend in the final race in Austria. Apart from that, he was also on duty as driver of the BMW M4 DTM race taxi at the Red Bull Ring.

International GT Open: Farfus strengthens BMW Team Teo Martín.

BMW Team Teo Martín will receive big-name reinforcement at next weekend’s penultimate event of the 2017 International GT Open at Monza (ITA). BMW DTM driver Augusto Farfus (BRA) will alternate at the wheel of a BMW M6 GT3 with Lourenço Beirão (POR). Fran Rueda (ESP) and Victor Bouveng (SWE), who are currently fourth in the championship, will compete in the second car.

Knudt Flor, President and CEO of BMW Manufacturing Co

Governor McMaster,

Senator Graham,

Ambassador Wittig,

Distinguished Guests,

BMW Associates,

Good morning and welcome to BMW Plant Spartanburg!

Each and every one of you here today is important to the United States, the state of South Carolina and to Plant Spartanburg, so I would like to begin by taking a moment to recognize all elected officials. Please be kind enough to stand for us so you may be acknowledged. On behalf of the BMW Group, I would like to thank you for twenty-five years of continued support and personal commitment to this plant’s success. Thank you!

Governor McMaster, thank you for your continued efforts in promoting this partnership, as many governors – especially the late Governor Carroll Campbell - before you have done. We’d also like to say a special “thank you” to Bobby Hitt, the Secretary of Commerce, who has been instrumental in the tremendous growth of Plant Spartanburg.

From the BMW Group, I would like to introduce Mr. Harald Krueger, Chairman of the Board of Management, and Mr. Oliver Zipse, Member of the Board of Management, responsible for Production worldwide. We welcome the national and international press, as we celebrate 25 Years Spartanburg and the All-New BMW X3!

Also, please join me in welcoming our valued dealers and suppliers from the U.S., our managers from Munich, and last, but certainly not least, I am delighted to welcome all of our associates here on site - the heart and soul of Plant Spartanburg!

25 years ago, our company reached an historic agreement with local government to build our first U.S. BMW plant in the great state of South Carolina. It was the start of something very special - a wonderful friendship and a new beginning. As BMW’s Chairman, Mr. Eberhard von Kuenheim stated back in 1992: “Seldom in the history of our company, has a community extended such a warm welcome to us as here in Spartanburg, in the state of South Carolina, USA. We have felt at home here from the first day on.”

In 1994, Spartanburg began operations with 570 associates, under the motto of “Welcome to the Future”. Today, we are proud to have over 9,000 associates here! Spartanburg has grown to become the largest plant in the BMW Group’s worldwide production network. That, in itself, is a very strong statement about our commitment to South Carolina and to the U.S.

It is our global competence center for our very successful BMW X vehicles. Currently, the plant produces X3, X4, X5 and X6 models, as well as M and hybrid variants. We are looking forward to starting production of the BMW X7 in late 2018. Today, we are delighted to give you an exclusive world premiere of the All-New BMW X3. The BMW X3 is without a doubt, the best vehicle in its segment. More on that shortly!

Of course, the success story of Plant Spartanburg wouldn’t have been possible without people. People have made and continue to make the difference.

We are proud of the people who work here – they are highly skilled and dedicated to building premium quality vehicles for our customers. I am proud to be the leader of such an incredible team at such a remarkable time. World class products are built here every single day. It’s thanks to you, our associates that BMW feels very much at home here in Spartanburg, South Carolina.

We are honored to have so many friends here and immensely proud to call South Carolina “our home away from home”. It is our goal, and our commitment, to remain a strong and reliable partner for our associates, our customers, South Carolina, and the United States.

Of course, a picture is worth a thousand words – here’s a film to remind us of a few highlights from the past 25 years.

Thank you!

Harald Krüger, Chairman of the Board of Management of BMW AG

Governor McMaster,

Senator Graham,

Ambassador Wittig,

Honored guests,

It’s great to be back in Plant Spartanburg again!

The film we just saw underscores the BMW Group’s strong commitment

• to the United States of America,
• to South Carolina,
• and to all our associates and partners here in the U.S.

All of this shows that the U.S. is clearly our home away from home.

We are proud to be responsible for around 70,000 jobs in this great nation – including dealer network and suppliers. The effect of that employment multiplies to a total of more than 120,000 jobs nationwide. This is according to a new study from the Moore School of Business at the University of South Carolina. Furthermore, our purchasing volume in America is now at 5.7 billion US dollars.

25 years ago, we made a crucial and forward looking decision. We decided to build our first full production plant outside of Germany in the U.S. – right here, in South Carolina. The BMW Group’s success in America would not be possible without the open arms and warm hearts of the people and elected officials in the great state of South Carolina and the surrounding region.

Senator Graham, it is an honor to have you with us here today. We greatly appreciate your ongoing support over the years.

Our relationship with South Carolina has been built upon decades of mutual trust and respect – and goes far beyond just building cars. Governor McMaster, as you have kindly said – we have become part of the very fabric of this great state. And David Britt, we were deeply touched by your words when you said: “BMW is the gift that keeps on giving”.

I am extremely proud of the highly skilled people who work here for the BMW Group. Their passion for excellence ensures that BMW vehicles built in the U.S. excite and inspire customers all over the world. Some of my fondest memories are from my time here at the plant as a manager. Since then, one thing has never changed – the unique spirit that makes BMW Plant Spartanburg so special: It’s all about People, Performance, Passion and Pride.

Today, I would like to thank all of our associates here, at Plant Spartanburg, for their strong commitment. You bring this plant to life – with your work, every single day. Thank you for your outstanding dedication! I am sure you all would agree that our associates deserve a round of applause.

Governor McMaster,

Senator Graham,

World-class people build world-class products. Today, Spartanburg is our largest plant worldwide. It is the global competence center for our X family vehicles, including the BMW X3. The BMW X3 is the most successful vehicle in its segment worldwide. Today, we are very proud to present you the third generation – “Built by BMW in the U.S. for the world”!

About 70% of our production from Spartanburg is exported to more than 140 countries. Thanks to our great, hardworking team here in the U.S., BMW was once again the leading U.S. automotive exporter by value in 2016 - a title we hold with pride.

Free trade has made our joint success story in South Carolina and the U.S. possible. A story, we want to continue, together with all of you. I firmly believe in free trade and open markets. It is essential for global businesses and economies around the world to flourish.

Altogether, the BMW Group has invested eight billion US dollars in Plant Spartanburg to date. I am delighted to say, we are investing a further 600 million US dollars in our manufacturing infrastructure here, up to 2021. This is for future generations of our X models. In the next four years, we will also create 1,000 new jobs, taking our workforce here to over 10,000.

Ladies and Gentlemen,

Training and qualifying our associates is key to our future success. We believe in education! That’s why the BMW Group will invest $200 million over the next five years – solely for the training and further education of associates at Spartanburg. In addition to this, we will begin to roll out a nationwide training program. We work together with local universities and colleges to offer a combination of training on the job and earning a degree. We will keep investing in our people and in our business in the U.S. This underscores our enduring commitment to the people of this great state and nation.

Therefore, I remain confident: Our footprint and commitment will continue to grow – not only in the Great State of South Carolina but also in the United States in the years to come.

(Unveiling of new BMW X3)

Ladies and Gentlemen,

The new BMW X3!

I can tell you, it’s really amazing to drive. Over two generations, the BMW X3 has been delivered to more than 1.5 million customers worldwide. I’m certain: This new generation will raise the bar even higher! Thanks to the team in Spartanburg for your great contribution. “Built by BMW in the U.S. for the world”!

Governor McMaster, Senator Graham, Ambassador Wittig, Oliver, Knudt, dear Associates – please come and join me on stage.

Thank you!

Munich/Shenyang. BMW Brilliance Automotive (BBA) today opened the newly-built north section of its automotive plant in Dadong/Shenyang, China. The first long-wheelbase version of the new BMW 5 Series Sedan rolled off the production line during the opening ceremony. The northern extension comprises all production areas of a full plant and boasts a highly-advanced production system with the latest sustainability standards. With its two production locations in Dadong and Tiexi, BBA will have a total annual capacity of up to 450,000 units.

“The Dadong plant demonstrates the success of our joint venture and the BMW 5 Series in China. The extension of the northern section underlines our clear commitment to the Chinese market. BBA has invested a total of one billion euros in the expansion of its Dadong production location over the past three years. The locally-produced BMW 5 Series has been an unmitigated success: It was the top-selling vehicle in the premium segment in China in 2016 and we expect it to remain the leader in its segment,” remarked Dr. Nicolas Peter, member of the Board of Management of BMW AG responsible for Finance, at the opening ceremony in China.

“Our production in China is well prepared for further market growth. The new north section is the result of the latest technologies and comprehensive knowledge of the BMW production system,” added Oliver Zipse, member of the Board of Management of BMW AG, responsible for Production. “We will continue to invest in our highly innovative production sites in China. Our next project is already underway: the remodelling of the southern section of Plant Dadong. Once finished, it will give us even greater flexibility and more potential for growth.”

The opening ceremony was attended by Dr. Nicolas Peter, member of the Board of Management of BMW AG, Finance; Oliver Zipse, member of the Board of Management of BMW AG, Production; Olaf Kastner, President and CEO BMW Group Region China; Yumin Qi, Chairman, Brilliance Automotive Group Holdings Co., Ltd.; Xiaoan Wu, Chairman, BMW Brilliance Automotive Ltd.; Dr. Johann Wieland, President and CEO BMW Brilliance Automotive, China, and local government representatives.

Highly-advanced technology and new sustainability standards

The large-scale expansion of BBA Plant Dadong involves all key technologies – including press plant, body shop, paint shop and assembly – and utilises highly-advanced equipment and the latest in process digitalisation. Using 3D computer simulation, for example, the direct-drive servo press installed in the press plant can process aluminum to an extremely high quality standard. Optical laser scanners then measure the body and verify quality in a matter of seconds.

Another example of Industry 4.0 applications can be found in the networked production system: using the vehicle identification number, the individual components, operations and machines of every BMW 5 Series built in Dadong can be traced. This internet-of-things architecture, combined with automated data analysis, results in greater transparency and higher quality overall. New machines, processes and products can also be integrated faster into ongoing production.

To reduce the workload for production employees, BBA is using innovative exoskeletons worn directly on the body. Like a second skeleton, this structure provides external support for the body and reduces the effort required for physically demanding tasks. Mobile smart devices such as tablets provide employees with precisely the information they need.

A holistic approach, innovative technologies and highly-advanced processes have enabled especially sustainable and environmentally-friendly production in the new section of the plant. Most notably, the paint shop uses 60% less energy and water than it did ten years ago. Wastewater has also been reduced by 50% and volatile organic compounds by no less than 80%. The direct-drive servo press also helps the plant meet its sustainability targets. It uses 44% less energy than a hydraulic press, with a noise reduction of 12 decibels.

Overall, the new northern section will use 30% less energy compared with the production of the previous BMW 5 Series.

BBA President Dr. Johann Wieland emphasized, “BMW Brilliance is recognised as one of the most visionary and successful premium auto makers in China. We are a leading employer, a major contributor to the local economy and a reliable corporate partner.”

The Shenyang production location

The Shenyang location, which comprises the Tiexi and Dadong automotive plants and the engine plant including light-metal foundry, plays an important role in the BMW Group’s global production network. It contributes to the strategy of globally balanced growth, which includes installing production capacity in the respective regional markets.

BBA’s two automotive plants, Tiexi and Dadong, already produce five BMW models. With the expansion of its northern section, the Dadong plant will also have room for a sixth model, the new BMW X3.

BBA production in Shenyang builds vehicles exclusively for the Chinese market. The Dadong plant in the northeast of the city started production in 2004 and produces today the BMW 5 Series Long-Wheelbase Version. The Tiexi plant in the west of Shenyang went on-stream in 2012 and builds the BMW X1 Long-Wheelbase Version (including a plugin-hybrid version), the BMW 1 Series Sedan, the BMW 2 Series Tourer, the BMW 3 Series Long-Wheelbase Version and the BMW 3 Series Sedan.

A key component of the Shenyang location is the engine plant with light-metal foundry – the BMW Group’s only engine production facility outside Europe. The engine plant supplies the two vehicle production sites in Dadong and Tiexi with drive units for locally-produced BMW automobiles. A new high-voltage battery centre, which will assemble high-voltage batteries for plug-in hybrid vehicles, is currently under construction.

China – the largest BMW Group market

In the first four months of 2017, China remained the largest single market for the BMW Group, with a total of 191,697 vehicles sold (+18.2 %). Following the market launch of the BMW 1 Series Sedan, the ramp-up of the new BMW 5 Series Long-Wheelbase Version promises to generate further sales momentum in the second half of the year. 2016 was the first time ever more than half a million BMWs and MINIs were sold in a single year in China (516,355 units, +11.3 %). The BMW Group Chinese sales network comprises more than 470 dealerships.

The BMW Brilliance Automotive joint venture

The BMW Brilliance Automotive joint venture was founded in 2003 and encompasses production and sales of BMW automobiles in China, as well as local development tasks. The joint venture employs more than 16,000 people, while its supplier network comprises around 350 local suppliers.

In 2014, the BMW Group and Brilliance China Automotive Holdings Limited extended the contract for their Chinese joint venture early – four years before the current contract expired – thus laying the foundation to deepen further this successful cooperation. The extended contract is valid for ten years (from 2018 to 2028).

Current photo material from the opening of the Dadong plant can be found at www.shenyang.bmwpictures.de

If you have any queries, please contact:

Corporate Communications

Sandra Schillmöller, Communications BMW Group Production Network,

Sandra.Schillmoeller@bmw.de

Phone: +49 89 382-12225

Frank Wienstroth, Head of Communications BMW Group Production Network,

Frank.Wienstroth@bmw.de

Phone: +49 89 382-54459

Saskia Eßbauer, Business and Finance Communications,

Saskia.Essbauer@bmw.de

Phone: +49 89 382-18364

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmw.de

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. As a global company, the BMW Group operates 31 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries.

In 2016, the BMW Group sold approximately 2.367 million cars and 145,000 motorcycles worldwide. The profit before tax was approximately € 9.67 billion on revenues amounting to € 94.16 billion. As of 31 December 2016, the BMW Group had a workforce of 124,729 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Olaf Kastner, President and CEO, BMW Group Region China

Good morning!

Both of these cars show the innovative power of the BMW Group.

They demonstrate our expertise in electromobility, which began 45 years ago.

Back in 1972, the all-electric BMW 1602 prototype allowed for emission-free mobility at the Olympic Games in Munich.

Today, our commitment to sustainable mobility is stronger than ever.

I am delighted to present the World Premiere of the BMW i8 Protonic Frozen Yellow Edition. This very striking, limited edition i8 will come to China in September.

Trends come and go. Icons remain. These cars are proof of that.

In China, our New Energy Vehicles have been well-received. We were the number one brand in electrification leadership according to an external consumer study last year. And this year looks set to build on that success with a strong start in electromobility. We are heavily involved in developing the NEV eco-system with our ChargeNow brand, which will see nearly 50% growth in publicly available charging and a total of 2,500 charging pillars in 15 cities by the end of this year.

Ladies and Gentlemen,

We have entered a new phase of localization in China. We have just launched the BMW 1 Series Sedan especially designed for China. Two weeks ago, we delivered the three millionth car. In a few weeks, we will open a new production facility in Shenyang.

In line with ‘Made in China 2025’, we will bring more state-of-the-art Industry 4.0 technology to the New Plant Dadong. With our increasing local R&D development, which will soon include High Voltage Battery production, we are well-prepared for China’s NEV development.

All of this demonstrates our commitment to shape the future of premium mobility.

Thank you for joining us today.

Peter Schwarzenbauer, Member of the Board of Management of BMW AG, MINI, Rolls-Royce, BMW Motorrad, Customer Engagement and Digital Business Innovation BMW Group

Riding, driving, and being driven is not just about going from A to B. It is also about freedom, luxury, comfort and excitement. For more than 100 years, our company has been providing emotional mobility. Buying a BMW Group vehicle is not only a rational decision, it’s a highly emotional one.

And all of our brands are emotional to the core, each in its own unique way.

BMW stands for sheer driving pleasure. Innovative mobility services and connectivity features complement the premium experience. And there is more to come. For example, we will start our car-sharing service ReachNow in Chengdu this year with a fully electric fleet.

BMW is also known for its emotional products on “two wheels”:

BMW Motorrad makes your life an extraordinary ride. Whether it be through sheer speed, adventure, cruising, or even silent electric riding.

Rolls-Royce is the very pinnacle of luxury. You can see that for yourself – and take a look at the new darker side of this brand at the Rolls-Royce press conference at 11:40 h CST.

And MINI? Well, if you want to experience one of the most emotional cars – in my opinion you should get inside a MINI, and give it a spin. For an extra dose of adrenalin and passion you should try out a MINI John Cooper Works.

Ladies and Gentlemen,

Today, I have brought along the latest member of this family:

What a great MINI! This is a car for those who want the extraordinary. Versatility, off-road excitement, MINI typical performance on the road: the new MINI John Cooper Works Countryman combines all these characteristics.

This is the second generation MINI Countryman. And John Cooper Works takes it into a league of its own. Inspired by its racing heritage, John Cooper Works creates the sharpest and most powerful MINIs.

The new MINI John Cooper Works Countryman is a truly exceptional vehicle:

-      The Countryman offers the most space of any car in the MINI line-up

-      It is the most versatile MINI

-      And the John Cooper Works model features the brand’s most powerful
       engine

China is already a strong market for MINI. Last year we achieved a ten percent increase. And we achieved double-digit growth in the first quarter of this year as well.

That’s because MINI offers one-of-a-kind fascination and emotion.

Now let’s talk about BMW Motorrad. We started selling motorcycles here in China only five years ago. Since then, sales have been growing significantly. We nearly doubled sales from 2014 to 2015 and last year we grew sales by more than 50%.

The Chinese market is becoming more and more important, and we expect substantial growth in the future. You can look forward to further fascinating models soon. Here’s a great one to start with …

This must surely be the most stunning BMW Motorrad ever. This is the exclusive BMW HP4 RACE. RACE – you can take that literally. In terms of technology, the new HP4 RACE is in the same category as current superbike racing machines.

The HP4 RACE is the first motorcycle with a carbon fibre main frame produced industrially using the RTM process. Only the BMW Group has this competence. The wheels are also made of this ultra-light but rigid material. Ready to race, this bike has a dry weight of just 146 kilograms! That means, same performance as a World Championship bike, but lighter!

Any customer lucky enough to take this bike on the racetrack will experience pure emotion. They’ll be among a select few: production will be limited to just 750 units of the BMW HP4 RACE.

And BMW Motorrad really is all about the experience, as I know well.

My personal highlight of 2016 was a bike tour through Tibet – and I want to share a few impressions of that trip with you. What a fantastic landscape for going off-road on a BMW Motorrad.

So you’ve heard a lot about “power” this morning - and there’s more to come.

Dr. Ian Robertson (HonDSc), Member of the Board of Management of BMW AG, Sales and Brand BMW, Aftersales BMW Group

I just can’t get enough of that sound! Now – Peter’s been talking about performance, power and exclusivity. Here’s the answer from BMW:

The world premiere of the all-new BMW M4 CS!

M – the most powerful letter in the world – is once again celebrating performance with a special edition model. After the success of the BMW M4 GTS, this is the second limited edition model of the M4 Coupe. This car starts a new tradition of CS cars positioned between the Competition variants of the M models – and the models used in club and motor sport.

The new CS will be powered by the M4 six-cylinder-engine. It boasts 460 horsepower, with a maximum torque of 600 Nm. Suspension is designed for exceptional sportiness, and Cup tyres come as standard.

And this car breaks the “4-second-barrier” – needing just 3.9 seconds from nought to a hundred. To reach that speed, lightweight construction was essential: many parts are made from carbon fibre.

Customers can look forward to exclusive colours and the BMW M specific OLED rear lights with their 3D effect. Production begins in July, so if you’re a fan – you won’t have to wait much longer!

Of course, BMW M is something very special. For more than four decades, it has played an integral role in shaping the BMW brand. And now let’s get another listen to that great sound!

Here in Shanghai, we are bringing the BMW brand even closer to our customers. We opened the new BMW Experience Center here last month. With over 45,000 m² and a Dynamic Driving Area, I invite everyone to come to the Center and experience the range of our brand – from BMW M to BMW i.

This is just one more facet of our engagement in China. And the vehicle we’re about to see is the perfect example of how we respond to the desires and wishes of our customers in China:

Ladies and Gentlemen,

The World Premiere of the all-new BMW 5 Series Long Wheelbase, created exclusively for Chinese customers!

Manufactured here in China at the new Dadong Plant facilities, the wheelbase has been extended by 13 cm – compared to the standard 5 Series Sedan. That extra space goes to the passengers in the back – something I know our customers here truly appreciate.

This exclusive new car sets the benchmark in aesthetics, driving pleasure and comfort in the premium business sedan segment. It is the most innovative and most connected vehicle in its class. Our customers will really enjoy the seamless communication and entertainment options, as well as the advanced driver assistance systems.

We’ve reduced the weight of this new 5 Series by up to 130 kilograms. That’s the weight of an adult plus their luggage. This means performance is sharper and even more dynamic – and acceleration and fuel efficiency are best in segment! The newly designed chassis was extensively tested here in China – and with new damper technology, it offers supreme ride comfort.

Ladies and Gentlemen,

It’s no wonder that the BMW 5 Series is the best-selling premium model on the Chinese market. I am sure that this stunning vehicle – the third generation of our BMW 5 Series Long Wheelbase – will continue that success story.

The 5 Series embodies the “heart” of the BMW brand and it accounts for around 30% of our BMW sales here. We’ve manufactured and sold around 800,000 5 Series over the years in China. I’m delighted to announce that the all-new BMW 5 Series Long Wheelbase will also be offered as a plug-in hybrid version.

The 5 Series Long Wheelbase will arrive in the showrooms in June and it’s just one of the 14 new products we are launching this year in China.

The BMW Group has already started well this year. We had a great first quarter in China with over 12% growth in sales. Worldwide, we achieved a new all-time high in the first three months by delivering nearly 600,000 BMW Group vehicles.

At the BMW Group, we are driven by our passion for emotional mobility.

And we continue to strive towards our goal of sustainable mobility.

We will electrify all our BMW Group brands and model series and we are aiming to sell 100,000 electrified vehicles this year alone.

We’ve made a good start in the first quarter of 2017, we already doubled electrified sales compared to last year. We look forward to telling you more about that as the year progresses.

Our portfolio is future-proof. And whatever you order, you always get passion and joy.

Thank you.

Media Information, 10 June 2015
Embargo time 7:30 p.m. CEDT (Munich time)

- Check against delivery -

Statement Harald Krüger
Chairman of the Board of Management of BMW AG
Presentation of the new BMW 7 Series
Munich, BMW Welt, 10 June 2015

Statement Klaus Fröhlich
Member of the Board of Management of BMW AG, Development
Presentation of the new BMW 7 Series
Munich, BMW Welt, 10 June 2015

Harald Krüger, Chairman of the Board of Management of BMW AG

Ladies and Gentlemen,

A warm welcome to the BMW Welt. We’re delighted to have you here with us this evening.

Inspiration is the source for all of the beautiful things which enhance our lives. At the BMW Group, we also draw our ideas and innovations from it. We think ahead. We strive to attain perfection in everything we do. The result is always “Sheer driving pleasure” – which guides us on our path to the future.

This evening we are embarking on a new chapter in the history of our company – together with more than 118,000 employees worldwide, who are a part of this.

This morning I visited our plant in Dingolfing. The team there is rightly proud of being the only plant to build the 7 Series, from the very first generation. They have put their heart and all their know-how into this vehicle.

This evening, we will be presenting our new BMW masterpiece.

We know our customers well. We know what they desire. This enables us to anticipate their wishes and fulfil their dreams.

Our 7 Series customers are progressive thinkers, people with drive and determination. They look to the opportunities of tomorrow. Their car is an expression of their personality and active outlook on life.

With each generation of the 7 Series, we have brought our customers' needs to the road, adapting accordingly as time moved on. Each generation has defined, changed and advanced mobility.

It all started in 1977. At that time, I was just 12 years old… I still remember the first 7 Series driving down our road.

Each generation has delivered ground-breaking innovations and set new standards – as you saw on our history walk. Just think of the first 12-cylinder engine from post-war Germany. Your press colleagues called it: “… the finest engine ever built in Munich.”

Today, we are presenting another technological leap forward, with unique innovations.

• We are responding to the digitalisation of modern mobility
• We regard our customers worldwide as unique individuals
• And we are inventing automotive luxury for the 21st century.

This is an incredibly special moment for me – to stand before you and introduce our new flagship vehicle. Please enjoy our new BMW 7 Series!

This vehicle has everything that BMW currently has to offer.

I am proud to present this car to you – together with my colleagues from the Board of Management – and on behalf of all the employees involved in Development, Design, Purchasing, Production and Sales and Marketing.

To fulfil our customers’ every desire, we worked together even more intensively with them in the creation of this 7 Series. We have paid particular attention to fine details.

The new 7 Series embodies our quest for modern mobility, the highest quality and absolute precision. Quite simply: driving luxury.

Luxury today is increasingly defined by knowing and feeling that you own something unique.

There have been a lot of media reports recently praising our winning combination of agility and comfort. I particularly like this quote:

“It is a window into the future of BMW.” (Top Gear 18 April 2015)

Precisely this balance of cutting-edge technology, connectivity and comfort is our vision of modern luxury.

The new BMW 7 Series benefits from BMW i technologies. For a start, the laser lights are derived from the BMW i8 and are now available for the first time in a large-scale series-produced vehicle. Another first is the intelligent way in which different materials have been combined in this car. The body has a carbon core. With a much lighter weight, it offers a totally different driving experience, with maximum efficiency. It has never been this easy and comfortable to drive a large luxury sedan.

In just a moment, my colleague, Klaus Fröhlich, will present some further technical details.

The design of the 7 Series is global by nature. But, of course, our customers in Europe, Asia and the Americas all have different requirements regarding luxury vehicles. Therefore, for the first time, we are offering our customers vehicles with different characters.

These characters reflect cultural and regional specifics in the main regions of the world. Standing right next to me, for example, is the Design Pure Excellence. Over the course of the evening, you also will get an idea of the others, such as the M Sport package.

Every BMW 7 Series is tailor-made. Customers can choose between almost endless possibilities and customise their 7 Series to suit their own personal preferences. This means that every 7 Series is just as unique as its owner’s personality. That is also modern luxury.

I’ll see you again at the IAA in Frankfurt in September. I’m already looking forward to it.

At the end of October, the new BMW 7 Series will have its first market launches.

Thank you once again for joining us this evening. I am looking forward to working with you over the coming years. Please enjoy your evening!

Klaus Fröhlich, Member of the Board of Management of BMW AG, Development

Ladies and Gentlemen,

A warm welcome to the premiere of our new BMW 7 Series!

We had one goal: for the new 7 Series to set the standard for sportiness as well as for innovation in the luxury segment. We wanted our customers to experience all the innovative power of the BMW Group in our BMW flagship.

Exceptional driving dynamics has always been one of the main reasons customers buy this car. That is why the new BMW 7 Series offers such a versatile driving experience – from absolute comfort to extremely sporty.

Its innovative two-axle air suspension, which comes as standard, automatically adjusts body height – with a lower ride in sport mode, for example. Dynamic Damper Control also enables the new BMW 7 Series to perfectly stabilise all irregularities in the road surface.

Another new feature in this luxury sedan is ADAPTIVE mode – which automatically adjusts the new 7 Series to the driving style and character of the road.

The new BMW 7 Series also sets the standard for driving dynamics and driving comfort in its class with its active electromechanical roll stabilisation – we call this special feature “Executive Drive Pro”. Its sensitive control guarantees optimum road handling at all times. For the first time in a 7 Series, you can now combine the benefits of our Integral Active Steering – known as “X Steer” – with xDrive.

The new 7 Series and its innovative driver assistance systems also represent a quantum leap for even greater comfort and safety. In this luxury sedan, our engineers have realised their broadest, most diverse BMW ConnectedDrive offering yet – taking driver support to a new dimension. A new feature here is for example our Steering and Lane Control Assistant, which provides semi-automated assistance for the driver at speeds of up to 210 km/h. Our innovation package also allows the speed of the new BMW 7 Series to be adjusted automatically to speed limits – if desired – at the push of a button.

It will be the first vehicle worldwide to offer Remote Control Parking, which will be available shortly after market launch. This means the vehicle can manoeuvre itself in and out of the garage or a parking lot, without the driver behind the wheel. All that is needed is the new Display Key – which also provides helpful information on range and locking status, as well as service notifications.

At the BMW Group, “sheer driving pleasure” and environmental responsibility are inseparably linked.

This also applies to our new BMW 7 Series – the epitome of contemporary luxury. That means: light – efficient – ground-breaking.

Its innovative combination of carbon-fibre structures with steel, aluminium, magnesium and plastic means that the 750i xDrive is 130 kilograms lighter than the previous model: Lightweight design measures adding up to roughly 200 kilos have enabled us to integrate additional comfort and safety features. This ensures that the 7 Series is the lightest luxury sedan in its segment.

Its latest-generation engines and enhanced eight-speed Steptronic transmission make the BMW 7 Series the most efficient car in its class. The 730d, for example, with a fuel consumption of 4.5 litres and CO2 emissions of 119 g/km, is the absolute benchmark among diesel engines – just like the 750i xDrive among petrol engines, with a fuel consumption of 8.1 litres and CO2 emissions of just 189 g/km.

When it comes out next year, our 740e plug-in hybrid will boast the best figures in its segment – with a fuel consumption of only 2.1 litres, CO2 emissions of 49 g/km and an electric range of around 40 km.

The customer can also choose different ways to control the vehicle: The new BMW 7 Series now offers Touch Command, in addition to the iDrive Controller, push-button control and voice command.

And we have another world debut in this car:

Gesture control: For example, you can now turn up the radio or take a phone call with a simple gesture.

I invite you to try out our new gesture control for yourselves afterwards!

But, in the new BMW 7 Series, luxury is not just for the driver. The optional Executive Lounge feature offers rear passengers maximum comfort in every position.

Our customers can also adjust their seats and control all entertainment functions individually using a removable tablet computer.

“Sheer driving pleasure” and the automotive luxury of the future – that is what our customers experience at the highest level of perfection in the new BMW 7 Series.

I would now like to hand over to our Head of Design, Adrian van Hooydonk.

Thank you.

Mr. Karsten Engel

Dà Jiā Zǎo Shàng Hǎo!  (Good morning everyone)

Last month, we were very proud to hand over the two millionth BMW in China. This was a significant milestone for us and we look forward to welcoming even more customers to the brand in the future.

Today, we are delighted to present some very important new models in Shanghai. These clearly reflect the BMW Group’s confidence in, and commitment to the future of the Chinese market.  

As a successful company and a corporate citizen, BMW will remain firmly committed to social responsibility in China.  In the past 7 years, our “Warm Heart Fund” has involved a significant amount of customers and dealers in public-service activities. Including youth traffic education programs, BMW has helped around half a million people. This is an integral part of our dedication to build a strong foundation for the future.

In 2015, the BMW Group aims to achieve sustainable growth in China, which is aligned with the outlook of the Chinese market. We will continue to focus on the quality of business and customer satisfaction. The growth of the BMW Group in China this year will be driven by our highly attractive product portfolio, which will be enhanced by more than 10 new and revised models.

I would like to highlight that BMW is in a good position to tap into the fast-growing premium SAV and premium compact segments in this market. And you will see more on that very soon.

Our business will also be driven by our highly appealing brand. I’m very proud that our customers continue to perceive the BMW brand as the hallmark of innovation, passion and sustainability.

Let’s now begin with a unique expression of Sheer Riding Pleasure on two wheels – the latest generation BMW S 1000RR, which is setting new standards in the super-sports motorcycle segment. With even sharper performance and particular attention on rider-friendliness, the new S 1000 RR excels in every respect. It will continue to defend its position at the top of the super-sports segment!

2014 was a very successful year for BMW Motorrad.  This year we plan to build upon this success and introduce another 7 new models, including the S1000RR. This will bring our product offer in China to a total number of 16 different models, which covers customer demand in all segments. 

Now I would like to hand over to Dr. Ian Robertson. Thank you very much!

Dr. Ian Robertson

Ni men hao ladies and gentlemen!

It’s great to be back in Shanghai.

China’s combination of strong tradition and a focus on the future is the same blend of qualities that underpins the success of BMW.  Our ties with China are long-standing and we will continue to heavily invest in this market. Over the last five years we have invested more than two billion euros in our Chinese plants.

Annual production capacity will increase from 300,000 to 400,000 units in the next years and we are going to double our range of locally produced models from three to six.

As the world’s leading premium car company, our customers expect us to fulfill their individual wishes and demands.

And given the high demand for BMW vehicles worldwide, we are truly “spot-on” with our product portfolio. The BMW Group just achieved its strongest ever first quarter in sales worldwide. We are very pleased to have achieved solid growth in our key regions of Asia, America and Europe. We’re confident that the new models we’re presenting today will further drive that momentum.

Time and again, BMW has paved the way by creating new segments with truly innovative vehicles. The most recent example is right here - celebrating its Asia premiere in Shanghai.

Ladies and Gentlemen, the BMW 2 Series Gran Tourer!

This is the world’s first premium Multi Purpose Vehicle – the first premium seven-seater in the compact segment. It combines the best of BMW engineering in terms of quality, dynamics, design and safety with great space and flexibility. No other MPV handles, corners or feels as secure as the BMW 2 Series Gran Tourer.

It was designed to maximize space for both passengers and cargo. It offers ample headroom and the panorama roof also enhances the luxurious feeling of “spaciousness”.

With three rows of seats, it can take seven passengers. We are certain that customers will appreciate the ease of adjusting the seats, the elevated seating position, and the intelligent storage options.

And, the Gran Tourer has more safety and connectivity features than any other vehicle in its segment. It offers full-colour Head-up Display, Adaptive Cruise Control and Park Assistant, just to name a few.

We believe that this is a vehicle customers have been waiting for and that there is much potential here in the Chinese market.

Earlier on I talked about how creating new segments is part of BMW’s DNA.

Back in 1999, we celebrated 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.

“The boss” has been delivered to over 1.5 million customers since its debut.

Today, we are entering a new chapter with the BMW X5. We are fulfilling the needs of customers who desire the benefits of a full-size SAV, with zero-emission driving.

I am delighted to present you with the World Premiere of the BMW X5 xDrive40e.

We are very proud of this car. It combines the best of both worlds: the versatility and luxurious ambience of a full-size SAV, together with outstanding efficiency.

It is a great example of how our core models are benefitting from the technology and know-how transfer from BMW i.

Over the long term, we plan to offer every BMW model as a plug-in hybrid version.

China has the potential to become the world’s largest market for new energy vehicles.

As the leader in sustainable mobility, the BMW Group will continue to drive this field forward.

Let’s take a closer look at the BMW X5 with eDrive technology. Driven by a four-cylinder petrol engine with BMW TwinPower Turbo technology and a synchronous electric motor, it provides both a sporty and efficient ride.

The figures speak for themselves:

• Only 3.3 liters of fuel consumption per 100 km
• Emissions of just 77 g CO2/km
• With 313 horsepower!

In electric mode, the BMW X5 xDrive40e offers a range of up to 31 km and a top speed of 120km/h. The intelligent hybrid powertrain control ensures that the engine and the electric motor work together in perfect unison.

The lithium-ion battery is housed under the rear luggage compartment, so there’s no compromise on luggage space. Charging the battery is easy. Simply charge at home from a standard outlet or take advantage of faster charging with the BMW i Wallbox or a public charging station. With BMW 360° ELECTRIC, customers are offered an holistic service concept - covering everything from the supply and installation of the charging station to maintenance, advice and other services. BMW will ensure that customers have everything they need to charge their cars from home.

Catering to customers’ demand for an SAV, as well as emission-free driving, we’re very confident that this vehicle will be a big success here in China and worldwide.

It’s already caught the eye of Hollywood producers. We’re thrilled to once again be involved in a Blockbuster “Mission: Impossible – Rogue Nation” with cutting-edge BMW vehicles, such as the BMW X5 xDrive40e.

Thank you!

Ladies and Gentlemen,

Innovation drives change.

And truly revolutionary innovations can even transform society. There is a powerful idea behind them – and a strong desire to create something better for tomorrow.

This is why we are here today. We are at the starting-blocks of a new era — the era of sustainable mobility.

Welcome to New York City, America’s premier megacity with over 8.3 million residents.

I am delighted to present – for the first time – the BMW i3.

Big changes start small. Looking back in history, we can find many examples of this. Today, the BMW i3 marks the beginning of a new mobility age. To put this into perspective, take a look at the mobile phone in your pocket. We had more than one hundred years of landline telephones. Then came the mobile phone and it completely changed how we interact with our world. The mobile phone opened up business opportunities that no one would have believed possible.

Ladies and Gentlemen,

The car industry has waited well over a century for its own revolution. Today the wait is over. What the mobile phone did for communication, electric mobility will do for individual mobility.

The BMW i3 is more than an evolutionary step —it is a great leap forward. From sketch to street, the i3 is unique in every respect. With the intention of creating a truly sustainable car, we conducted research in megacities around the world.

This included:

• Millions of test miles with our retro-fitted electric cars, MINI E and BMW ActiveE,
  
  
• Years of research in collaboration with Megacity experts around the world, and
  
  
• Thousands of hours talking with customers.

From the start, we redesigned our entire development and production processes. The BMW i3 is purpose-built around an electric powertrain to serve the needs of our megacity customers.

The BMW i3 is Born Electric.

This is premium at its very best.

With every step of the way from development, to production, to after-sales, the BMW i3 sets new benchmarks in sustainable mobility. In the brand-new architecture, we use carbon fibre for the passenger cell — a first in high-volume car production. Our expertise in manufacturing with this material makes the passenger cell extremely strong and light weight. We produce the carbon fibre material using hydroelectric power. And we build the BMW i3 using wind power.

This is an industry first.

Our innovative production methods are also unique.

Carbon fibre components are bonded together in a fully automated process. The bonding techniques we have developed in-house are setting new industry standards.

The innovations of the BMW i3 go beyond R&D and production to include customer experience. 

We will support all of our BMW i3 customers with a comprehensive set of premium service offerings. This approach, “360 Degree Electric”, will make BMW i3 driving enjoyable and easy. Adding to the BMW i3’s relaxing experience is the open interior with its lounge atmosphere.

And of course, the BMW i3 will share one dynamic quality with every other BMW on the road: It will be an Ultimate Driving Machine.

Ladies and Gentlemen,

In response to global trends such as urbanization and increasing carbon emissions, sustainability is an important part of a modern, urban lifestyle. The BMW i3 is the perfect solution to the mobility needs of people here in New York City. Mayor Michael Bloomberg has committed the remainder of his term to making New York City the greenest city on earth by supporting several citywide programs. Foremost, he seeks to improve and expand sustainable transportation infrastructure. We support with Mayor Bloomberg’s efforts to connect public parking spots in NYC for electric vehicle charging – up to 20 percent over the next seven years. This promotes not only sustainable mobility solutions, but also cost savings.

Charging your electric car costs up to 30 percent less than the average of what you now pay at the pump.

Ladies and Gentlemen,

The car has existed for nearly 130 years.

Today marks a shift — a change — in the future of mobility.

The BMW Group is proud to be driving this change. 

Today, the BMW i3 begins a new era:

The era of true sustainable mobility. 

Thank you.

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.

Dr. Norbert Reithofer, Chairman of the Board, BMW AG

Ladies and gentlemen,

We are especially proud of this car. The BMW 3 Series has been a key factor in establishing the worldwide reputation of the BMW brand. For this we thank our customers all over the world: over 12 million people have purchased a BMW 3 Series since 1975. In doing so, they have made the BMW 3 Series the most successful series in the premium segment.

Every new generation of the 3 Series offers customers even more innovative features:

• When the first generation of the BMW 3 Series came on the market in 1975, I was still a student. I was not able to afford the car myself, but the two-door sedan with a 4-cylinder engine and driver-oriented cockpit made quite an impression on me.
• In its second generation, the BMW 3 Series diversified with a four-door model, a convertible, the M3 and the Touring. These were followed by the first diesel engine and the first all-wheel drive in a BMW 3 Series.
• In its third generation, the BMW 3 Series expanded to include the Coupé and the Compact.
• The fourth generation of the BMW 3 Series rose to achieve one of the top spots for registered vehicles in Germany. No other car in its class had ever achieved this before.
• In the fifth generation of this model, Sheer Driving Pleasure became significantly more efficient with Efficient Dynamics.

Five generations – a total of 36 years of the BMW 3 Series. This clearly demonstrates that we have continually extended our lead in the "Sporty Medium Class" of the premium segment.

The BMW 3 Series remains the highest-volume series produced by our company - even though we continue to extend and diversify our product range.

Every generation of the 3 Series Sedan has been built in Munich. This is where the heart of the company lies. This is where we have our Group headquarters, our Munich plant, the BMW Welt and the BMW Museum. And there was never any question for us: the sixth generation of the BMW 3 Series would be manufactured here in Munich, too.

The launch of this new model confronts our employees at our Munich plant with unique challenges:

1. They will ensure that the new 3 Series is available for customers worldwide right on time for the market launch on February 11, 2012.
   The plants in Regensburg, Rosslyn and Shenyang will follow.
2. Once again we will demonstrate that automobile production is possible within an urban context even in the 21st century, providing it is modern and sustainable.
   
   

At the premiere this afternoon at the Munich plant, everyone had a clear sense that our employees could not wait to get going. They are excited about the new BMW 3 Series. On Monday the time will finally come when production starts.

My colleague Ian Robertson will tell you what the new BMW 3 Series has to offer our customers in just a moment.

Thank you.

Ian Robertson, Member of the Board of BMW AG, Sales and Marketing

Over the past 36 years the 3 Series has been at the heart of the BMW brand and it’s easy to understand why: 

• It has driven the BMW Group’s dynamic growth;
• It has offered customers the freedom to choose how they experience sheer driving pleasure with numerous body styles;
• And it has received the affection of more customers than any other model in its class. And it’s just getting warmed up.

The BMW 3 Series Sedan has been a global success from day one. And it hasn’t looked back since, becoming the best selling BMW model of all time. In fact, one out of every five BMWs sold is a 3 Series Sedan. Now available in 132 countries, the 3 Series has become a long-term growth engine for the BMW Group.

The 3 Series has sold over 12 million cars since its launch, establishing itself as the worldwide segment leader.  But then, the 3 Series has always been a pioneer. The historic success of the 3 Series is shared by a handful of variants. Indeed, it was the first model in its segment to offer such a wide variety of body styles beyond a Sedan, including:

• Convertible,
• Coupe,
• Touring, and for a period of time a
• Compact.

Venturing into so many body styles was truly unique for a sporty mid-sized car like the 3 Series. And it was able to do so from a position of strength and self-confidence only the successful 3 Series Sedan could provide.

The sixth generation of the BMW 3 Series has again set new standards – with the sportiest sedan in its segment and with a new set of design options for further personalization.

Just as the first 3 Series broke the mould in 1975, this Sedan is rewriting the rules.  For years, the 3 Series has been delighting customers with the perfect car to suit their needs. The new Sedan expands upon this success by catering to customers’ desire for an even more personalized BMW. As a first, the 3 Series Sedan will be available in three lines, each offering a unique character:

• The “Sport line” aims to strengthen the car’s already sporty nature by emphasizing its dynamic impression; whereas
• The “Luxury line” offers a touch of additional refinement to the car’s elegant design; and for its part
• The “Modern line” creates a harmonious interior space by minimizing contrasts and optimizing natural elements.

In addition to these new lines, the new 3 Series Sedan will of course be available with the M Sport Package.

With its blend of sporty performance, aesthetics, and fuel efficiency, the 3 Series offers drivers something so pure, so desired, and yet impossible to substitute or quantify: “Freude am Fahren” or “Sheer Driving Pleasure”.

Whatever the language, the message is the same: the BMW 3 Series Sedan serves as the global BMW brand ambassador because it offers so many customers so much joy around the world. This is why the 3 Series is the heart of the BMW brand. 

Thank you!

Dr. Klaus Draeger, Member of the Board of BMW AG, Development

In addition to its design, I believe one of the most impressive aspects of the new BMW 3 Series is its range of technological innovations.

The BMW 3 Series has always been a sporty statement within its segment. This is reflected in the racing versions across all BMW 3 Series generations – a gallery of successful touring cars and long-distance automobiles.  To this day, the first generation of the BMW M3 remains the most successful touring car ever.

Agility and driving dynamics remain the car's outstanding disciplines in the sixth generation, too. The variable sports steering adapts the transmission ratio of the steering gear to the respective driving conditions using only physical gears, highlighting the car's light-footedness on fast bends.

It is often small details which enable a sporty driving style: one example is the optional M sports brake. This multiple-piston brake with aluminium fixed calipers and particularly large brake discs weighs less and enables very short braking distances. The Head-Up Display also supports a sporty driving style. For the first time in this class, we are offering this feature with a complete colour spectrum – for less distraction on the road.

The networking of the car is especially important to me personally. It is unique in this class:

• With BMW ConnectedDrive, the new BMW 3 Series is state-of-the-art in terms of infotainment.
• Our premium customers rightfully expect us to provide especially highly capable interface technology.
• A wealth of driver assistance systems increases safety on the road.

In addition to sporty flair, driving comfort has also been significantly enhanced. New Efficient Dynamics features offer even better performance while further reducing fuel consumption.

For the market launch of the new BMW 3 Series Sedan there is a new 4-cylinder spark ignition engine in addition to the optimised diesel engines and the familiar
6-cylinder petrol engine. Like the other engines, the new power unit also features BMW TwinPower Turbo Technology. The latter considerably increases performance as well as providing a significant reduction in fuel consumption.

This effect is supported by a series of other innovations:

• Automatic engine start-stop function: as standard
• Driving experience switch with ECO PRO mode: as standard
• 8-speed automatic transmission: available for the first time in this segment.

The aerodynamic body also contributes to the reduction of fuel consumption: as an engineer, I find the Cd figure of 0.26 highly impressive. Intelligent lightweight construction has made the BMW 3 Series about 40 kg lighter.

All these fuel consumption benefits culminate in the new BMW 320d EfficientDynamics Edition. With a maximum output of 163 bhp and maximum torque of 380 Nm, this car accelerates in just 8 seconds from zero to 100 kilometres per hour and has a fuel consumption of only 4.1 litres per 100 kilometres on the EU test cycle. This is equivalent to a CO2-emissions figure of 109 grams per kilometre.

In the course of its history, the BMW 3 Series has been an innovative trendsetter in the field of engine and drive technology. In autumn 2012, we are enriching the BMW 3 Series further with the addition of a new engine technology.

Here is the new BMW ActiveHybrid 3.

It is the world's first ever full hybrid among the compact sports sedans of the premium segment. In this way we are offering our customers a highly efficient hybrid vehicle in our top-selling series.

• The maximum output available is 340 bhp.
• The drive develops up to 450 Nm.
• Fuel consumption per 100 kilometres is 6.4 litres on the EU test cycle.

I could give you a lot more detail on this automobile. But you will receive all the information afterwards on a USB stick.

Thank you for your attention.

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,
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.