WE ARE SHAPING THE MOBILITY OF THE FUTURE

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Baldric Blaise Atkins
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1 WE ARE SHAPING THE MOBILITY OF THE FUTURE

2 2 MINI ELECTRIC CONCEPT, PAGE 20 CONTENTS A NEW ERA OF ELECTRIC MOBILITY BMW i8 ROADSTER, PAGE 16

consumption, CO 2 emissions, power consumption and operating range figures were determined according to the European Regulation (EC) 715 / 2007 in the version applicable.

3 3 THERE IS NO DOUBT IN MY MIND: THE FUTURE WILL BE ELECTRIC. PAGE 4 INTERVIEW WITH HARALD KRÜGER, CHAIRMAN OF THE BOARD OF MANAGEMENT, PAGE 4 BMW i VISION DYNAMICS PAGE 8 BMW i3s PAGE 12 BMW i8 ROADSTER PAGE 16 MINI ELECTRIC CONCEPT PAGE 20 The fuel consumption, CO 2 emissions, power consumption and operating range figures were determined according to the European Regulation (EC) 715 / 2007 in the version applicable. The figures refer to a vehicle with basic con figuration in Germany and the range shown considers the different sizes of the selected wheels / tyres and the selected items of optional equipment. Further information on official fuel consumption figures and specific CO 2 emissions values of new passenger cars is included in the Guideline for fuel consumption, CO 2 emissions and electric power consumption of new passenger cars, which can be obtained free of charge from all dealerships and at https: / / / en / offers / publications / guideline-for fuel-consumption.html. BMW i VISION DYNAMICS, PAGE 8

4 4 INTERVIEW WITH HARALD KRÜGER CHAIRMAN OF THE BOARD OF MANAGEMENT OF BMW AG MR KRÜGER, WHAT KIND OF COMPANY DOES THE BMW GROUP WANT TO BE IN 2025? We have a clear vision for the BMW Group for the future. Besides our emotional premium vehicles and brands, we will be focusing even more on our customers and their individual needs. We want to inspire them and offer them the right products and services at all times in every phase of their lives what I call customised premium mobility. THE AUTOMOTIVE INDUSTRY IS UNDERGOING DRAMATIC CHANGE. WHERE IS THE BMW GROUP IN THIS PROCESS? Looking into the future, implementing a clear strategy, learning fast and acting quickly all of these things are critical for any company these days. The BMW Group has proved throughout its history that we are masters of change. And we deliver on our promises! You only have to look back ten years. In 2007, we sold 1.5 million vehicles in a year and we presented our Strategy NUMBER ONE, with the goal of building a vehicle for megacities. In 2017, we delivered more than 2.4 million vehicles to customers. At the same time we re offering the widest range of electrified vehicles on the market. The focus of our Strategy NUMBER ONE > NEXT is on electric mobility, autonomous driving and digitalisation and the BMW Group aims to be a leader in all of these areas. To achieve this, we are working with strong partners from IT and other industries. HOW DO YOU GET YOUR TEAM ON BOARD WITH THIS? It takes a lot of communication. We are preparing our associates for new responsibilities. Since 2009 alone, we have invested more than 2.5 billion in training and development. This underscores how great the need for change is. Having

5 5 the right mindset is crucial because change begins in people s heads. Excellent leadership and having a clear goal in front of us that is how we will conti nue to deliver outstanding performance in the future. HOW DO YOU SEE YOUR TEAM? WHAT MAKES IT SPECIAL? People who work for the BMW Group have two things in common: first of all, we are passionate about mobility, and second, we want to succeed. That means being the best in innovation, which is illustrated by the personal stories in our yearbook: four teams building the future with their ideas with the BMW i3s, the MINI Electric Concept, the BMW i8 Roadster and the BMW i Vision Dynamics. Patrick Müller, the engineer whose team designed the first fully electric MINI, sums it up perfectly for me: The tremendous energy of everyone involved across the company enables us to turn the seemingly impossible into reality. That is exactly the kind of spirit and drive we need to create the future. THE BMW GROUP HAS BEEN AROUND FOR MORE THAN 100 YEARS. HOW DO YOU PERSUADE YOUNG TALENTS TO WORK HERE? People who are new to the company often tell me that they never expected a global company like ours to offer them so much freedom and flexibility. This also includes working in an exciting environment. All of our associates in every phase of their lives can find the ideal working model. That, too, makes us one of the most attractive employers worldwide as many international surveys have confirmed. In China, the BMW Group has just been voted the top employer across all sectors. And, in Germany, for example, we are the most popular automobile manufacturer for IT graduates. We offer young talents

6 6 WE OFFER YOUNG TALENTS FROM ALL TECHNICAL DISCIPLINES THE CHANCE TO SHAPE THE MOBILITY OF TOMORROW IN ALL ITS MANY DIFFERENT FACETS. HARALD KRÜGER from all technical disciplines the chance to shape the mobility of tomorrow in all its many different facets. HOW SHOULD WE IMAGINE A MODERN WORKING ENVIRON MENT LIKE THAT? Younger generations, in particular, want responsibility early on. We encourage small, agile teams that are empowered to make their own decisions, with quick decisionmaking processes. That means more leadership and less management. New digital working methods are quickly integrated into our highly complex organisation. WHAT WILL THE BMW GROUP CAR OF THE FUTURE LOOK LIKE? Just take a look at the BMW i Vision Dy na mics: it s sporty, elegant, fully electric and totally connected. It exemplifies the technological future and the design of our four brands. THE BMW NAME HAS ALWAYS BEEN SYNONYMOUS WITH ENGINES. WILL THOSE ENGINES SOON ALL BE ELECTRIC? The customer will ultimately decide which combination of drivetrains prevails. Electric mobility will certainly be in there. As a symbol of our firm commitment to electric mobility, we lit up our BMW Group headquarters, the Four Cylinder building, as a battery. That night, my wife and I joined many associates from BMW Group on the Olympic grounds nearby to watch. One of them said aloud what many of us were thinking at the very moment the Four-Cylinders were lit up: I m proud to work for BMW. After hearing such dedication, there is no doubt in my mind: the future will be electric.

7 7

8 DOMAGOJ DUKEC ON THE ELEGANCE OF TRAILBLAZING MOBILITY DESIGNER DOMAGOJ DUKEC WAS INSTRUMENTAL IN DEFINING THE LOOK OF THE i VISION DYNAMICS.

9 9 VISIONARY

10 10 SHINING EXAMPLE: THE BMW i VISION DYNAMICS IS UNEQUIVOCALLY ELECTRIC AND UNDENIABLY BMW.

11 11 The BMW brand is synonymous with the sportiest sedans in the world. Now, the BMW i Vision Dynamics is bringing that same approach to electric mobility. While the BMW i3 and BMW i8 represent cornerstones of our broad electric mobility range, the four-door Gran Coupé shows just how exciting electric mobility can be when translated into classic model line-up. Sustainable and elegant, clear and dynamic, confident and sexy: this vision will soon be followed by a host of ground-breaking models. What we are creating here is an exciting piece of the future but still using the same design language that has made us grow and become popular. A good example of this is the characteristic kidney grille: it clearly identifies the BMW i Vision Dynamics as a BMW and continues to serve an important function. The only difference being, it now conceals the sensors for partially automated driving, rather than engine cooling systems. So, you could say, everything stays new and that is what makes our job so incredibly exciting today. I have been designing cars for more than 20 years, but BMW i is injecting a totally new momentum. Our design philosophy is to do more with less, which means focused design, lower emissions, intelligent use of technology and material. In other words: a glimpse of the self-assured, responsible mobility of tomorrow. BMW DESIGNERS LIKE SEUNGMO LIM CREATED A DISTINCTIVE ICON WITH JUST A FEW ELEMENTS.

12 JENS HALBEDEL AND BERND JAMIN ON WHAT DRIVES THEM TO ALWAYS STAY ONE STEP AHEAD SPORTY FROM TOP TO BOTTOM: THE BMW i 3 s.

13 The i3 team is permanently in SPORT mode working together as part of a streamlined, highly efficient project team that is always asking new questions and coming up with unconventional answers.

13 13 The i3 team is permanently in SPORT mode working together as part of a streamlined, highly efficient project team that is always asking new questions and coming up with unconventional answers. That s just the way it is: the idea of electrification seems to magically attract people who are open to new things and want to achieve something special together. With the i3, we have acquired enormous expertise in electrification within a short space of time. As a result, we are able to deliver excellent electric drivetrains that are perfectly suited to the needs of the customer. A STRONG TEAM: BERND JAMIN (LEFT) AND JENS HALBEDEL (RIGHT).

14 14 THE BMW i 3 s IS BROADER AND MORE DYNAMIC AND DELIVERS EVEN MORE DRIVING PLEASURE THAN ITS PREDECESSOR.

15 SPORT MODE In the i3s, we have taken this know-how and cranked things up a notch: with a SPORT drive mode, for example, which unleashes the full dynamics of the electric engine and presses you

15 15 SPORT MODE In the i3s, we have taken this know-how and cranked things up a notch: with a SPORT drive mode, for example, which unleashes the full dynamics of the electric engine and presses you into your seat as you pull away from a traffic light. Then there is its dynamic design and innovative traction control, which will soon also be available in other models. As you can see, experience from our trendsetting i3 enriches the entire model line-up. At the same time, the i3 also benefits enormously from the strength and resources of our core brand. When it comes to our pioneering i3 project, we need to think like a start-up and deliver like a grown-up, as our head of Development once said. And that is exactly what we are doing. The i3 has always symbolised our transition to the era of electric mobility. Now the i3s is giving this development new and added momentum. We are leading the field without slackening the pace. A TRENDSETTER LIKE THE i 3 s RELIES ON GENUINE TEAMWORK. BMW i3s (94 Ah) with fully electric edrive: electric power consump tion in kwh / 100 km (combined) 14.3 / / CO 2 emissions in g / km (combined) 0

16 CLAUDIA GEIDOBLER, CHARLOTTE KANTERS AND RAINER RUMP ON THE EMO TIONAL POWER OF ELECTRIC DRIVING CHARLOTTE KANTERS AND CLAUDIA GEIDOBLER (CENTRE) ARE RESPONSIBLE FOR COLOURS AND MATERIALS IN THE BMW i 8 ROADSTER.

17 17 THE TEAM CAREFULLY SELECTS EXCLUSIVE MATERIALS LIKE OLIVE-TANNED LEATHER. TEAMWORK

18 18 PERFECTION IN EVERY DETAIL: RAINER RUMP, PROJECT LEADER FOR THE i 8 ROADSTER, AND YVONNE KLINGSHIRN WITH THE i 8 ROADSTER.

19 19 It was the night of 18 January 2017, the middle of winter. We were all shivering but not because of the subzero temperatures. In front of us, speeding into the night on the driveway to the Leipzig plant, was the prototype of the BMW i8 Roadster. For many of us, it was the first time we had seen this dream car in action, after working on it non-stop for the past few months. It drove off into the distance right before our eyes. And it was enough to give us all goose pimples. That was exactly what we were aiming for. Our mission had been to put all the emotion of electric driving into the i8 Roadster. For example, through the specially created e-copper finish that coats its body like liquid metal; through an innovative, extremely compact high voltage battery that boosted its all electric range. These things not only make this exceptional vehicle extraordinarily sporty, but also eminently suitable for everyday driving. The production process is just as unconventional as the car itself. Our low-volume manufacturing concept means that, from the very earliest stages of development to final inspection, the i8 Roadster was designed for production in relatively small quantities but still to earn a profit. This certainly meant more responsibility and greater risk awareness for all of us on the team but it also came with maximum motivation and enthusiasm. In other words: exactly what we felt that night in January. ITS HEART IS ELECTRIC, ITS CHARACTER PURE EMOTION. BMW i8 Roadster: fuel consumption in l / 100 km (combined) 2.1 / / CO 2 emissions in g / km (combined) 46 / / Electric power consumption in kwh / 100 km (combined) 14.5

20 20 NEW WORK CONTRASTING SILVER AND YELLOW IDENTIFY THE MINI ELECTRIC CONCEPT AS AN ELECTRIC PIONEER.

21 21 PATRICK MÜLLER ON THE DYNAMIC CONQUEST OF THE FUTURE As an engineer, my job is to design things. And, with the MINI E, we are designing the future. Not just some distant, abstract future, but one we can already experience today. Being part of this from the beginning has given me great pleasure and motivates me every day. When we started fitting the first MINIs with electric drivetrains on a trial basis more than ten years ago, it suddenly clicked for all of us: because even these early electric vehicles had that agile performance so characteristic of MINI. Since then, we have made enormous progress in range, efficiency and cost and the BMW Group has earned itself a leading position in electric mobility. We secured this advantage by maintaining the fast pace of development ever since. For the MINI Electric Concept, for example, we had less than six months from initial concept to presentation. But then, everyone knows that dynamism is part of our company s DNA.

22 There has been another interesting effect: our electrified vehicles may be defining groundbreaking mobility, but, at the same time, they are also changing us.

22 22 There has been another interesting effect: our electrified vehicles may be defining groundbreaking mobility, but, at the same time, they are also changing us. Because thinking about entirely new vehicle concepts inevitably means rethinking the way we work. You see it in people s enthusiasm and in the positive energy of everyone across the company helping make the seemingly impossible become reality. In that respect, electric mobility is also driving the BMW Group forwards at a tremendous pace. The next milestone will be in 2019, with the launch of our first fully electric MINI. It will deliver the usual MINI agility, driving fun and go-kart feeling to the road. After that, I am pretty sure we will see lots of electric MINIs in cities very soon. Because MINI is cool and so is electric mobility. And the two simply belong together. THE BENEFIT OF A SMALL TEAM: EVERYONE KNOWS WHAT THEY ARE CONTRIBUTING TO THE BIG PICTURE.

23 23 PATRICK MÜLLER (RIGHT) AND HIS TEAM DESIGNED THE MINI ELECTRIC CONCEPT IN RECORD TIME.

24 PUBLISHED BY BAYERISCHE MOTOREN WERKE AKTIENGESELLSCHAFT MUNICH GERMANY TELEPHONE

Statement Harald Krüger Chairman of the Board of Management of BMW AG Conference Call Interim Report to 31 March May 2018, 10:00 a.m.

Media Information - Check against delivery - Statement Harald Krüger Chairman of the Board of Management of BMW AG Conference Call Interim Report to 31 March 2018, 10:00 a.m. CEDT Good morning, Ladies