BMW GROUP INVESTOR FACTBOOK. March PDF Free Download

BMW GROUP INVESTOR FACTBOOK March 2018

CONTENT. 1 STRATEGY NUMBER ONE NEXT 2 E-MOBILITY 3 AUTONOMOUS DRIVING 4 MOBILITY SERVICES 5 GROUP FINANCIALS 6 AUTOMOTIVE 8 FINANCIAL SERVICES 9 MARKETS 10 SUSTAINABILITY 11 BMW SHARES 12 DEBT & RATINGS 13 CONTACT & CALENDAR 7 MOTORCYCLES

FORWARD-LOOKING STRATEGIES LEADING TO A SUCCESSFUL CORPORATE DEVELOPMENT SINCE 2001. 2016 2001/ 2003 Premium brand strategy Strategy Number ONE 2007 BMW Group Investor Factbook, March 2018 Page 3

ADAPTING OUR STRATEGY TO A CHANGING ENVIRONMENT. ADDRESSING NEW TRENDS. Digitalization Economy Modified Customer Requirements Product and Technology Customer and Mobility TREND ANALYSIS 2015 Automotive Sector Market and Competitive Environment TOP TRENDS New Technologies and Services Ecology Society, Politics and Legislation Tightening of Regulatory Requirements Volatility Digitalization BMW Group Investor Factbook, March 2018 Page 4

VISION COMPETITIVE ADVANTAGE STRATEGIC APPROACH CORPORATE CULTURE BMW Group Investor Factbook, March 2018 Page 5

VISION We are Number ONE. We inspire people on the move: We shape tomorrow s individual premium mobility. COMPETITIVE ADVANTAGE We unite excitement, responsibility and success: We have the most emotional products and attractive services. > Products > Technologies > Brands & Design > Customer Experience & Services > Digitalization > Profitability STRATEGIC APPROACH We are leading the BMW Group into a new era: We leverage innovative technologies, digitalization and sustainability to deliver unique customer experiences. CORPORATE CULTURE We create the future: We combine operational excellence and fresh thinking. BMW Group Investor Factbook, March 2018 Page 6

STRATEGY NUMBER ONE NEXT. We are Number ONE. We inspire people on the move: We shape tomorrow s individual premium mobility. BMW Group Investor Factbook, March 2018 Page 7

LEADERSHIP DRIVEN BY ASPIRATIONAL BRAND PORTFOLIO AND HIGHLY EMOTIONAL PRODUCTS. Premium Brands Design Luxury Compact/Small Dynamic Target group Now Efficient BMW Group Investor Factbook, March 2018 Page 8

ATTRACTIVE PREMIUM BRANDS PROVIDE THE BASIS FOR A FURTHER EXPANSION OF THE PRODUCT PORTFOLIO. BMW Group Investor Factbook, March 2018 Page 9

BMW VISION NEXT 100. A GLIMPSE INTO THE FUTURE OF MOBILITY. BMW Group Investor Factbook, March 2018 Page 10

MINI VISION NEXT 100. EVERY MINI IS MY MINI. BMW Group Investor Factbook, March 2018 Page 11

ROLLS-ROYCE VISION NEXT 100. THE FUTURE OF LUXURY. BMW Group Investor Factbook, March 2018 Page 12

BMW MOTORRAD VISION NEXT 100. THE ULTIMATE RIDING EXPERIENCE OF THE FUTURE. BMW Group Investor Factbook, March 2018 Page 13

CULTURE We create the future: We combine operational excellence and fresh thinking. RESPONSIBILITY APPRECIATION TRANSPARENCY TRUST OPENNESS BMW Group Investor Factbook, March 2018 Page 14

ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. AUTONOMOUS CONNECTED ELECTRIFIED CUSTOMER FOCUS SHARED / SERVICES BMW Group Investor Factbook, March 2018 Page 15

MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR OF 8-10% DESPITE ONGOING CHALLENGES. Future costs Regulatory requirements Market and competitive environment Volatility 10 % 8 % FOCUS & PERFORMANCE Ongoing efficiency measures to compensate the cost burden Expansion & optimization Retail sales growth product portfolio Autos and Motorcycles Reduction of complexity Reduction of material costs Benefits from digitalization Efficiency measures BMW Group Investor Factbook, March 2018 Page 16

BMW iperformance AND BMW i BALANCING THE PRODUCT PORTFOLIO. DYNAMIC EFFICIENT BMW brand framework for product portfolio M Core Models M Performance Core Models PHEVs BEVs High Performance Performance Champions Electrified Efficiency Champions Visionary Mobility The interplay of BMW M and BMW i enhances competitive differentiation (representation of the scope of the BMW brand). BMW Group Investor Factbook, March 2018 Page 18

INTELLIGENT DRIVE TRAIN MIX TO MEET CUSTOMER EXPECTATIONS AND REGULATORY REQUIREMENTS. BEV* / Plug-in Hybrid Fuel cell Combustion engine BMW Group Investor Factbook, March 2018 * BEV = Battery Electric Vehicle Page 19

TECHNOLOGICAL CHANGE TURNING A CHALLENGE INTO AN OPPORTUNITY. Growth, technological progress REVOLUTION Alternative drive trains Mobility services Technological change EVOLUTION Efficient combustion engines Innovative technologies In times of technological change we have to improve our existing technologies and invest heavily in new technologies to remain future proof. E-Mobility Hybrids Internal Combustion Engine time BMW Group Investor Factbook, March 2018 Page 20

BMW GROUP S ELECTRIFICATION PATHWAY. BMW inext Roll-out BMW i Performance Upgrade BMW i3 LCI BMW i3, new BMW i3s MINI Electric (PHEV) MINI BEV BMW X3 BEV BMW i Vision Dynamics Building-up expertise Technology innovation Project i I. PIONEERING II. ELECTRIFICATION OF CORE PORTFOLIO III. SCALABILITY AND FLEXIBILITY Battery Electric Vehicles (BEV) BMW Group Investor Factbook, March 2018 Plug-in Hybrid Vehicles (PHEV) Page 21 Life Cycle Impulse (LCI)

MORE THAN 230,000 ELECTRIFIED VEHICLES SOLD SINCE LAUNCH. THEREOF MORE THAN 100,000 SOLD IN 2017. 530e iperformance 250,000 200,000 i3 accumulated i8 accumulated BMW & MINI PHEV accumulated 225xe iperformance i3 94 Ah 740e / 740Le iperformance BMW X1 xdrive25le iperformance (China) MINI Cooper S E Countryman 150,000 X5 xdrive40e iperformance 330e iperformance 100,000 530Le (China)* 50,000 i3 60 Ah i8 YTD-02/2018 15,061 electrified vehicles sold 0 * Not in series production any more BMW Group Investor Factbook, March 2018 Figures represent cumulative sales of Battery Electric Vehicles (BEV) and Plug-in Hybrid Vehicles (PHEV) Page 22 iperformance = Plug-in Hybrid Vehicles (PHEV)

KEY FACTS ABOUT BMW GROUP S ACHIEVEMENTS AND GOALS IN E-MOBILITY. ca. 200.000 Electrified BMW vehicles were on the roads by the end of 2017 #1 15-25% BMW Group BEV + PHEV combined registrations in 2017 show BMW s excellent market position Globally: Globally: Position #1 in the Premium market Europe: Position #1 in the total market Germany: Position #1 in the total market Until 2025: Portfolio will consist of 25 electrified models (12 fully electrified) 2021: BMW inext In 2025 we expect 15-25 % of BMW Group annual global sales to be BEV / PHEV. (based on 2016 sales, 20 % would equal ~ 500,000 vehicles a year). > 140.000 In 2018 we expect to sell 140.000 BMW Group BEV+PHEV vehicles, after 100.000 in 2017. ca. 130.000 ChargeNOW stations worldwide #1 BMWi is the best selling PHEV brand worldwide in 2017. 2019: battery-powered Mini 2018: BMW i8 Roadstar 2020: Battery-powered X3 Today: BMW Group already provides broadest portfolio of erlectrified verhicles 3 Times The share of electrified vehicles in BMW Group sales globally and in Europe is almost 3 times higher than the average of all car brands. BMW Group Investor Factbook, March 2018 Page 23

OUR CLEAR ROADMAP: 25 ELECTRIFIED MODELS BY 2025, INCLUDING 12 FULLY ELECTRIC CARS. Fully electric BMW X3 BEV BMW i Vision Dynamics BMW i3 60 Ah / 22 kwh BMW i3 94 Ah / 33 kwh BMW i3s 94 Ah / 33.2 kwh MINI BEV** BMW inext 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 BMW i8 BMW 530Le China* BMW 225xe iperformance BMW X1 xdrive25le iperformance (China) BMW i8 Roadster BMW X5 xdrive40e iperformance BMW 330e iperformance BMW 530e iperformance BMW 530Le iperformance(china) Plug-in hybrid BMW 740e iperformance MINI Cooper S E Countryman ALL4 Schematic illustration of future launch dates BMW Group Investor Factbook, March 2018 * Not in series production any more ** MINI Battery Electric Vehicle Concept Car Page 24

THE NEW BMW i3 AND i3s. OUTSTANDING DRIVING DYNAMICS & EMISSION-FREE FUN AT THE WHEEL. BMW Group Investor Factbook, March 2018 Page 25

MINI ELECTRIC CONCEPT. ICONIC DESIGN AND URBAN DRIVING FUN WITH ZERO EMISSIONS. BMW Group Investor Factbook, March 2018 Page 26

THE BMW i VISION DYNAMICS. A NEW FORM OF ELECTRIFYING DRIVING PLEASURE. BMW i Vision Dynamics Drive Range Acceleration Top speed Pure Electric 600 km (WLTP cycle) 4.0 sec (0-100 km/h) 200 km/h The BMW i Vision Dynamics exudes modernity, progressiveness and an appealing technical aesthetic from every angle. As a trailblazer for the BMW brand, it showcases clearly the BMW Group s future vision of emotionally engaging electrified mobility. BMW Group Investor Factbook, March 2018 Page 27

BMW inext AS SPEARHEAD OF INNOVATION. lightweight design Connectivity purpose-built Interior of the future new sportiness BMW inext Autonomous driving electrification Highly automated driving sustainability Artificial intelligence BMW Group Investor Factbook, March 2018 Page 28

BMW i. FROM BORN ELECTRIC TO ONE PLATFORM SERVES ALL. IN THE TRANSITION TO ELECTROMOBILITY, NON-DEDICATED ARCHITECTURES ARE THE PREREQUISITE FOR FLEXIBLE PRODUCTION. 2013 FROM Born electric 2021 ON One platform fits all powertrain derivatives Combustion engine Plug-In-Hybrid Pure electric BMW Group Investor Factbook, March 2018 Schematic illustration Page 29

THIS ALLOWS US TO SET UP OUR PLANTS FLEXIBLY AND TO AVOID A SEPARATION BETWEEN COMBUSTION AND ELECTRIC POWERTRAINS. Before: Dedicated plants per powertrain type In the future / Onwards: Enablement of the plants for all types of powertrains Only Combustion Engine Only Combustion Engine Only Electric Combustion Engine & Electric Combustion Engine & Electric Combustion Engine & Electric Flexibility and utilization Flexibility and utilization High investment costs Strong dependence on the market development Division into "old world" and "new world Flowing technological transition possible Exchange Flexibility is guaranteed Sustainable future-oriented jobs BMW Group Investor Factbook, March 2018 Page 30

BMW IS INVOLVED IN THE ENTIRE VALUE CHAIN CHARGING. Car Charging Service B2B Service IT-Plattform Aggregation of CPO s and MSP s Public Infrastructure Energy Services Managed Energy-Assets. Referrer models Planned HUBJECT eroaming IT-Plattform Connection of MSP and CPO BMW (2014-2017) DC HPC > 150 kw DC< 100 kw / AC 22kW Today Pre-check CPO Charge Point Operator MSP Mobility Service Provider AC < 22 kw Energy Services in general: Market preparation Pre-check: Home Charging Solutions BMW 360 Electric and Connected Drive Digital Charging Service BMW Group Investor Factbook, March 2018 Page 31

WHAT WILL DRIVE THE ACCEPTANCE AND THE PROFITABILITY OF E-MOBILITY GOING FORWARD ACCEPTANCE + OF EVS Regulation favors E-Mobility with purchasing or tax incentives or non cash benefits like parking, commuter lanes,.. + PROFITABILITY OF EVS Utilization of the pricing potential of BEV/PHEVs Optimization of the Charging Infrastructure Smart and Efficient, Increase of charging points Cost Reduction due to technological advancement, supplier consolidation and manufacturing efficiency Improvement in Production Efficiency due to flexible architecture and less complexity Increase in volume/sales due to BMW i / iperformance Rollout with 25 electrified Models by 2025 Driving Range Extension with new storage topologies and motor configurations. An improved drive range would lead to higher usability and easier adoption. Decrease in Battery Costs due to new innovations and scalability Material Costs Reduction due to higher supply and higher volume Time Outlook Time Outlook BMW Group Investor Factbook, March 2018 Page 32

AUTOMATED DRIVING. CHANGING FRAMEWORK LEADS TO NEW DEFINITION OF FUTURE MOBILITY. BMW Group Investor Factbook, March 2018 Page 34

DRIVING EXPERIENCE REDEFINED. CUSTOMER BENEFIT AS THE FOCAL POINT. Delegation Ability Safety Driver unchallenged FLOW Driver overchallenged Need for automation of driving tasks BMW Group Investor Factbook, March 2018 Page 35

THE NEW BMW 7 SERIES ALREADY OFFERS A COMPREHENSIVE RANGE OF DRIVING ASSISTANCE: SCANNING THE SURROUNDINGS. Side-Range Radar Rearview Camera Park Distance Control Stereo Front Camera Surround View Camera Side-Range Radar Side-Range Radar Side-View Camera Night Vision DSC ADAS ECU Surround View Camera Full-Range Radar Side-Range Radar BMW Group Investor Factbook, March 2018 Page 36

THE NEW BMW 5 SERIES DRIVER ASSISTANCE PROVIDES COMFORT AND SAFETY AT THE HIGHEST LEVEL. Crossing traffic warning rear / front Top View Remote Night Vision Lane keeping assistant with active side collision protection Active cruise control with Stop&Go function Rear collision prevention Crossroad Assist Lateral parking aid Distance information Lane departure warning 3D View Top View Parking assistant Active Park Distance Control BMW Selective Beam Remote Control Parking Steering and lane control assistant Panorama View Speed Limit Device Speed limit and No Pass information Lane change warning Speed Limit Assist Approach control warning with braking function Wrong Way Assist BMW Group Investor Factbook, March 2018 Page 37

THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS DRIVING. 0 1 2 3 4 5 Driver Feet off Hands off Eyes off Mind off Passenger No assistance Assisted Partially automated Highly automated Fully automated Autonomous Human Transfer of responsibility Machine BMW Group Investor Factbook, March 2018 Page 38

ARCHITECTURE FOR AUTOMATED DRIVING. END-TO-END WITH ALL KEY-TECHNOLOGIES. E/E ARCHITECTURE BACKEND BACKEND SECURITY* CD Backend FAS Backend MS Backend SENSORS ENVIRONMENT MODEL VEHICLE SECURITY HD-MAP OBJECTS AND FREE SPACE MOTION CONTROL FAD DRIVING FUNCTION ARTIFICIAL INTELLIGENCE TRAJECTORY PLANNING DRIVING STRATEGY * CD: ConnectedDrive (Entertainment/Infotainment) BMW Group Investor Factbook, March 2018 FAS: HD Map and other features for automated driving MS: Mobility Services (DriveNow, ReachNow, ) Page 39

HD-MAP, SENSORS, AI/ENVIRONMENT MODEL AND MOTION CONTROL PLAY A KEY ROLE IN THE ARCHITECTURE OF AUTOMATED DRIVING. HD-MAP BACKEND SENSORS AI / ENVIRONMENT MODEL VEHICLE INTEGRATION centimeter precision real-time capable highly available and reliable camera radar lidar ultra-sonic inertial sensor object fusion free space detection road model prediction driving strategy / planning motion control safe vehicle management up to the limits fail operational architecture Cross-industry Cooperation. Cooperation for development of autonomous driving platform * * System Integrator BMW Group Investor Factbook, March 2018 *The acquisition is still subject to approval by the antitrust authorities. Page 40

BMW GROUP, INTEL AND MOBILEYE TEAM UP TO BRING FULLY AUTONOMOUS DRIVING TO STREETS BY 2021. Fleets of fully autonomous cars for new mobility services in urban environments Creation of an open platform for the next generation of cars In-vehicle computing, robust cloud and set of machine-learning solutions from Intel Full suite of expertise in sensing, localization, and driving policy from Mobileye BMW inext model will be the basis for fleets of fully autonomous vehicles BMW Group Investor Factbook, March 2018 Page 41

ROADMAP TO AUTONOMOUS DRIVING. 2017 2018 2019 2020 2021 2022 Partial automated driving on all roads Automated lane changing on highway Hands-off up to 30sec Temporary Hands-off during Stop&Go on highway 210 km/h 60 km/h Advanced ACC function Hands- and Eyes-off on highway or highwaylike (EU, US) 130 km/h Pilot Mind-off on predefined routes Hands- and Eyes-off on highway (EU, US, CN) Active lane changing and thread 130 km/h 70 km/h 2 PAD 3 HAD 4 FAD pilot project PAD: Partially Automated Driving BMW Group Investor Factbook, March 2018 HAD: Highly Automated Driving FAD: Fully Automated Driving Page 42

WE CREATE THE INDIVIDUAL PREMIUM MOBILITY PORTFOLIO OF THE FUTURE FOR OUR CUSTOMERS. BMW BMW M Financial Services BMW i Charging Infrastructure MINI Carsharing Rolls-Royce BMW Motorrad Parking services Digital Services BMW Group Investor Factbook, March 2018 Page 44

LEVERAGING POTENTIAL OF DIGITALIZATION AND CONNECTIVITY. BMW Connected Mobility Cloud BMW Group Investor Factbook, March 2018 Page 45

DRIVE NOW. PREMIUM, FREE FLOATING CAR SHARING SERVICE FROM BMW GROUP. DriveNow Customers are BMW Group s youngest & most modern target group 15% share of electric vehicles 1,000,000 customers in 13 cities 6,000+ cars in the fleets BMW Group Investor Factbook, March 2018 Page 46

CAR SHARING EXPERIENCE ON A NEW LEVEL. REACH NOW TO INTRODUCE UNIQUE FEATURES TO THE CUSTOMERS. Launch in April 2016 in Seattle Followed by Portland and Brooklyn (NY) 55,000 members 15% share of electric vehicles New features piloted: Ride: Car with driver Reserve: For long period use of vehicles and delivery of car 1,400 cars in the fleet Fleet Solutions: Individualized CarSharing offering for residential areas Share: Renting out your own car BMW Group Investor Factbook, March 2018 Page 47

PREMIUM MOBILITY SERVICES CHARGENOW AND PARKNOW MAKE CHARGING AND PARKING EASIER THAN EVER. 130,000 charging points until end of 2017 in 29 countries On- and off-street parking car integration starting with all new BMW 5 Series Cashless 55 cities in Germany, Austria, France & Switzerland BMW Group Investor Factbook, March 2018 Page 48

BMW GROUP FINANCIAL YEAR 2017. KEY FINANCIALS UNDERLINE BMW GROUP S STRONG OPERATING PERFORMANCE. BMW Group FY-2017 FY-2016 Change in % Earnings before tax Group (in m ) 10,655 9,665 +10.2 EBT margin (in %) Group 10.8 10.3 +0.5 pp Payout Ratio (in %) Group 30.2 33.3-3.1 pp Automotive Segment Automotive sales (units) 2,463,526 2,367,603 +4.1 Earnings before interest and tax (EBIT) (in m ) 7,863 7,695 +2.2 EBIT margin (in %) 8.9 8.9 - Net financial assets (m )* 19,787 19,520 +1.4 Motorcycles Segment Sales (units) 164,153 145,032 +13.2 Earnings before interest and tax (EBIT) (in m ) 207 187 +10.7 EBIT margin (in %) 9.1 9.0 +0.1 pp Financial Services Earnings before tax (EBT) (in m ) 2,207 2,166 +1.9 Return on Equity (in %) 18.1 21.2-3.1 pp Penetration rate (in %) 46.8 49.6-2.8 pp Credit loss ratio (in %) 0.34 0.32 +0.02 pp BMW Group Investor Factbook, March 2018 *As of 31 December 2016/2017 Page 50

BMW GROUP Q4-2017. STRONG FOURTH QUARTER DESPITE HIGH UPFRONT INVESTMENTS. BMW Group Q4-2017 Q4-2016 Change in % Earnings before tax Group (in m ) 2,173 1,924 +12.9 EBT margin (in %) Group 8.4 7.7 +0.7 pp Automotive Segment Automotive sales (units) 652,292 620,965 +5,0 Earnings before interest and tax (EBIT) (in m ) 2,001 1,917 +4.4 EBIT margin (in %) 8.4 8.3 +0.1 pp Motorcycles Segment Sales (units) 36,335 28,988 +25.3 Earnings before interest and tax (EBIT) (in m ) -75-37. EBIT margin (in %) -16.7-9.1-7.6 pp Financial Services Earnings before tax (EBT) (in m ) 414 525-21.1 Penetration rate (in %)* 46.8 49.6-2.8 pp Credit loss ratio (in %)* 0.34 0.32 +0.02pp BMW Group Investor Factbook, March 2018 * Figures for FY-2016/2017 Page 51

THE BMW GROUP IS COMMITTED TO PLAYING A KEY ROLE IN TOMORROW S MOBILITY AND IS INVESTING SUBSTANTIAL AMOUNTS IN NEW TECHNOLOGIES. R&D Expenditure * [in m, HGB] R&D Ratio ** [in %, HGB] 7,000 7.0 6,000 5,000 4,000 3,000 6.5 3,208 3,144 5.6 2,864 5.4 2,448 4.8 2,773 4.6 3,373 4.9 3,952 5.1 4,792 6.3 5.7 4,566 5.6 5.5 5,169 5,164 6.2 6,108 6.0 5.0 4.0 3.0 Target ratio: 5%-5.5 % 2,000 2.0 1,000 1.0 0 2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 0.0 BMW Group Investor Factbook, March 2018 HGB: German Commercial Code * R&D Expenditure: Research and development expenses plus capitalized research and development cost minus amortization of capitalized development costs. ** R&D Ratio: R&D expenditure divided by Group revenues. *** 2013 figures have been adjusted in accordance with IAS 8. Page 52

TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO. BMW Group Capital Expenditure * [in m ] 6,000 Capex Ratio ** [in %] 10 5,000 4,967 4,601 4,688 9 8 4,000 4,151 3,826 3,731 7 3,000 2,000 5.7 5.2 2,777 2,933 5.6 2,980 4.7 2,383 2,312 3.8 2,720 4.0 5.4 6.5 5.7 4.2 4.0 4.8 6 Target ratio: 5 <5% 4 3 1,000 2 1 0 2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 0 BMW Group Investor Factbook, March 2018 * Capital Expenditure: additions to property, plant and equipment and other intangible assets (definition has been changed in 2016). ** Capital expenditure ratio: Capital expenditure divided by Group revenues. *** 2013 figures have been adjusted in accordance with IAS 8. Page 53

OUTLOOK FOR 2018. POSITIVE BUSINESS DEVELOPMENT EXPECTED TO CONTINUE IN ALL SEGMENTS. BMW Group EBT expected at previous year s level* Automotive Segment Slight increase in deliveries compared with previous year Slight increase in revenues compared with previous year EBIT margin in the target range of 8-10% Financial Services Segment Return on equity of at least 14%, slight decrease Motorcycles Segment Solid increase in deliveries compared with previous year EBIT margin in the target range of 8-10% BMW Group Investor Factbook, March 2018 *If approved by the relevant authorities in the course of this year, the formation of the joint venture will trigger a one -time valuation and earnings effect in the BMW AG s group financial statement and thus lead to an adjustment of the company s guidance: Under these circumstances, pre-tax earnings on Group level would increase slightly in 2018 compared with the previous year. Page 54

BMW, ROLLS ROYCE, MINI STRONG PREMIUM BRANDS AS THE BASIS FOR BMW GROUP S SUCCESS. The pinnacle of automobile luxury Sheer driving pleasure The world s most exciting premium small car brand BMW Group Investor Factbook, March 2018 Page 56

BMW GROUP RETAIL SALES INCREASED ON AVERAGE BY 6.2% SINCE 2008. BMW Group Retail sales development [in 1,000 units] 2,000 1,500-4.3% 1,436-10.4% 1,286 +13.6% 1,461 +14.2% 1,669 BMW MINI Rolls-Royce +10.6% 1,845 +7.9% +6.4% 2,118 1,964 +6.1% 2,247 +5.3% 2,368 +4.1% 2,464 1,000 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 Page 57

BMW GROUP SALES CONTINUE TO GROW THROUGH FEBRUARY 2018. 348,459 +4.8% 303,738 +4.3% 44,249 +9.0% 472 +14.8% 18,627 +7.2% BMW Group Investor Factbook, March 2018 Sales figures YTD 02/2018 Page 58

DELIVERIES TO CUSTOMERS BY SERIES OR BRAND FY 02/2018. Deliveries of automobiles YTD-2018 YTD-2017 Change in % 1 Series 31,775 23,858 33.2 2 Series 23,120 25,128-8.0 3 Series 56,737 56,904-0.3 4 Series 14,040 15,876-11.6 5 Series 55,344 48,730 13.6 6 Series 3,314 1,260. 7 Series 7,750 8,767-11.6 X1 48,159 39,304 22.5 X2 1,021.. X3 20,595 24,145-14.7 X4 6,535 7,754-15.7 X5 24,464 28,217-13.3 X6 6,144 6,145 0.0 Z4 15 459-96.7 BMW i 4,725 4,808-1.7 BMW Total 303,738 291,355 4.3 MINI Total 44,249 40,612 9.0 Rolls Royce Total 472 411 14.8 BMW Group Total 348,459 332,378 4.8 BMW Group Investor Factbook, March 2018 Sales figures YTD-2018 Page 59

BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID YTD-02/2018 GROWTH OF +4.8% TO A NEW RECORD OF 348,459 VEHICLES. Americas Europe Mainland China Asia (w/o China) & Rest of World +3.0% +7.5% +6.8% +2.4% 18% 41% 28% 13% 62,252 units 142,810 units 98,992 units 44,405 units BMW Group Investor Factbook, March 2018 Rolls Royce is included in Rest of World, YTD 02/2018 (figures may not add to 100% due to rounding) Page 60

BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD-02/2018. Deliveries of automobiles YTD-02/2018 YTD-02/2017 Change in % Europe 142,810 138,675 3.0 thereof Germany 1) 45,253 44,309 2.1 Great Britain 17,955 17,591 2.1 Americas 62,252 58,277 6.8 thereof USA 48,526 45,931 5.6 Asia 133,395 123,851 7.7 thereof China Mainland 98,992 92,045 7.5 thereof BBA retail sales 70,300 58,082 21.0 Rest of the World (incl. RR) 2) 10,002 11,575-13.6 Total 348,459 332,378 4.8 BMW Group Investor Factbook, March 2018 1) Registrations 2) Rolls-Royce sales are included in Rest of the World Page 61

FY-2017 AUTOMOTIVE SEGMENT: EBIT MARGIN IN TARGET RANGE OF 8-10% AS FORECAST. In m 2017 2016 Change in % Automotive sales (units) 2,463,526 2,367,603 +4.1 Revenues (in m ) 88,581 86,424 +2.5 Earnings before interest and tax (EBIT) (in m ) 7,863 7,695 +2.2 EBIT margin (in %) 8.9 8.9 - Earnings before tax (EBT) (in m ) 8,691 7,916 +9.8 BMW Group Investor Factbook, March 2018 Page 62

Q4-2017 AUTOMOTIVE SEGMENT: EBIT MARGIN WITHIN TARGET RANGE AND GROWTH IN SALES, REVENUES AND EARNINGS. In m Q4-2017 Q4-2016 Change in % Automotive sales (units) 652,292 620,965 +5.0 Revenues (in m ) 23,873 23,174 +3.0 Earnings before interest and tax (EBIT) (in m ) 2,001 1,917 +4.4 EBIT margin (in %) 8.4 8.3 +0.1 pp Earnings before tax (EBT) 2,147 1,875 +14.5 BMW Group Investor Factbook, March 2018 Page 63

EBIT BRIDGE IN AUTOMOTIVE SEGMENT SHOWS POSITIVE EFFECTS FROM VOLUME AND MODEL MIX. EBIT bridge [in m ] + 675 Volume/Mix/Market + 233 Net effect from exchange rates/commodities 7,863 EBIT MARGIN 8.9% 7,695-373 Other operating income and expenses + 3 Depreciation - 370 Other cost changes EBIT MARGIN 8.9% 2016 2017 BMW Group Investor Factbook, March 2018 Page 64

FREE CASH FLOW IN AUTOMOTIVE SEGMENT REMAINS STRONG, DESPITE SIGNIFICANTLY HIGHER INVESTMENTS. Free Cash Flow (Automotive) * [in m ] 5,404 5,792 4,471 4,459 2,277 3,166 3,809 3,003 3,481 Target: > 3 billion 1,156 1,456 197 2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 2017 * Definition: Free cash flow corresponds to the cash inflow from operating activities of the Automobiles segment less the cash outflow for investing activities of the Automobiles segment adjusted for net BMW Group Investor Factbook, March 2018 investment in marketable securities and term deposits. 2009 2015 as reported, 2007 & 2008 calculated according to above definition from reported figures. No cash flow reporting on segment level in 2006. Page 65 ** 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8.

INTELLIGENT AND INNOVATIVE PRODUCTION. DIGITALIZATION CREATES NEW OPPORTUNITIES. Data and Analytics Smart Logistics Innovative Automation Additive Manufacturing 16 14 12 10 8 6 4 2 0 4 6 8 10 12 14 16 18 140 135 130 125 Internet-of-Things Architecture Autonomous Transport Systems Collaborative Robot Systems Laminate or Metal Data Management for Planning and Control Global Supply Chain Visibility and Control Context-sensitive Worker Support Systems Serial Production and Rapid Prototyping Cyber Security Integrated Supplier Networks Reorganization of Work New Individualization BMW Group Investor Factbook, March 2018 Page 66

EUROPE, CHINA AND USA THE PILLARS OF THE BMW GROUP PRODUCTION NETWORK. Hams Hall Oxford Swindon Goodwood Berlin Dingolfing Eisenach Landshut Leipzig Munich Regensburg Wackersdorf Moses Lake Spartanburg Born Kaliningrad Steyr Graz Cairo Dadong Tiexi New Engine Plant Manaus Chennai Rayong Kulim Jakarta Production plant Assembly plant Joint venture Contract manufacturing Araquari Rosslyn BMW Group Investor Factbook, March 2018 Page 67

AUTOMOBILE PRODUCTION BY PLANT IN 2017. 7% 0% 3% Munich, Germany BMW 3, 4 series 196,455 8% Dingolfing, Germany BMW 3, 4, 5, 6, 7 series 376,58 2% Regensburg, Germany BMW 1, 2, 3, 4 series, X1, Z4 338,259 9% 15% Leipzig, Germany Rosslyn, South Africa BMW 1,2 series, i3, i8 246,043 BMW 3 series 53,105 Spartanburg, USA BMW X3, X4,X5, X6 371,316 Dadong, China* BMW 5 series 127,44 11% Tiexi, China* BMW 2, 3 series, X1 269,309 13% Oxford, UK MINI Hatch, MINI Clubman 223,817 5% Graz, Austria (Magna Steyr)** Born, Netherlands (VDL Nedcar)** MINI Countryman, MINI Paceman 50,272 MINI Hatch, MINI Cabrio, MINI Countryman 168,969 15% 2% 10% Goodwood, UK Assembly plants Rolls-Royce 3,308 80,868 Sum 2,505,741 BMW Group Investor Factbook, March 2018 * Joint venture BMW Brilliance Automotive Ltd., Shenyang Page 68 ** Contract production

THE LARGEST MODEL OFFENSIVE IN THE COMPANY S HISTORY. 40 AUTOMOBILE LAUNCHES IN 2017 AND 2018 & ATTRACTIVE MOTORCYCLE LAUNCHES. BMW M760Li BMW 5 Series MINI BMW 4 Series BMW 1 Series BMW 2 Series Countryman BMW 6 Series Gran Turismo BMW X3 BMW M5 BMW X2 BMW i3s Rolls-Royce Phantom BMW Group Investor Factbook, March 2018 Page 69

AND WE WILL KEEP THE MOMENTUM ROLLING IN 2018. BMW i8 Roadster BMW 8 Series BMW X7 BMW Z4 BMW K1600 Grand America BMW M8 BMW Group Investor Factbook, March 2018 Page 70

THE MINI COOPER S E COUNTRYMAN ALL4. AGILE, VERSATILE & ELECTRIFYING. BMW Group Investor Factbook, March 2018 Page 71

THE NEW BMW 1 SERIES. UNMISTAKABLY SPORTY, WITH A HIGHER-QUALITY FEEL AND GREATER PRESENCE. BMW Group Investor Factbook, March 2018 Page 72

THE NEW BMW 2 SERIES COUPÉ AND BMW 2 SERIES CONVERTIBLE. MORE STRIKING DESIGN, LED HEADLIGHTS AND AN ALL-NEW INTERIOR. BMW Group Investor Factbook, March 2018 Page 73

THE NEW BMW 4 SERIES MODELS. ACCENTUATING THE SPORTY CHARACTER. BMW Group Investor Factbook, March 2018 Page 74

SEVENTH GENERATION OF BMW 5 SERIES: SPORTINESS AND EVERYDAY USABILITY. BMW Group Investor Factbook, March 2018 Page 75

THE NEW 6 SERIES GRAN TURISMO. LONG-DISTANCE COMFORT OF A LUXURY SEDAN WITH ALLURING COUPE STYLE. BMW Group Investor Factbook, March 2018 Page 76

BMW CONCEPT 8 SERIES. THE PINNACLE OF SPORTS PERFORMANCE AND EXCLUSIVITY. BMW Group Investor Factbook, March 2018 Page 77

BMW CONCEPT M8 GRAN COUPE. A NEW INTERPRETATION OF LUXURY FOR THE BMW BRAND. BMW Group Investor Factbook, March 2018 Page 78

Sales Expansion Product Expansion BMW GROUP MODEL OFFENSIVE STRONG GROWTH FOR X-MODELS NEW X1 (2016) 2017 Product offensive X-models 2019 NEW X3 (2017) Introduction X2 (2018) NEW X4 (2018) Introduction X4 (2013) Introduction X5 (1999) Introduction X3 (2003) Introduction X6 (2008) Introduction X1 (2009) NEW X5 Introduction X7 NEW X6 800,000 Spartanburg: Capacity Expansion +100,000 units (2014-2016) 700,000 600,000 500,000 Capacity increases to support the strong sales growth of X-models Spartanburg: Plant expansion + Introduction X4 (2012-2014) Rosslyn, ZA: Change from 3 series sedan to X3 New X-Capacity + >70,000 units (2019) 400,000 300,000 Spartanburg: Plant expansion (2008-2010) Dadong, China: Start of Production X3 in China (Joint Venture) (2018) 200,000 100,000 Spartanburg: Preparations for several launches and capacity increase to 450,000 units 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 BMW Group Investor Factbook, March 2018 Page 79

KEEPING THE LEAD. FURTHER EXPANSION OF THE X-PORTFOLIO PLANNED UNTIL 2020. BMW X1 BMW X2 BMW X3 BMW X4 BMW X5 BMW X6 BMW X7* BMW Group Investor Factbook, March 2018 *Concept Car Page 80

THE NEW BMW X2. EXCITING LOOKS, SPARKLING DYNAMICS. BMW Group Investor Factbook, March 2018 Page 81

THE NEW BMW X3. NEW LEVEL OF SPORTINESS, SHARPER DESIGN, SEMI- AUTOMATED DRIVING AND CUTTING-EDGE CONNECTIVITY. BMW Group Investor Factbook, March 2018 Page 82

BMW CONCEPT X7 iperformance. STRIKING EXTERIOR COMBINED WITH EXCEPTIONALLY EFFICIENT & DYNAMIC PLUG-IN HYBRID POWERTRAIN. BMW Group Investor Factbook, March 2018 Page 83

THE BMW CONCEPT Z4. FREEDOM ON FOUR WHEELS. BMW Group Investor Factbook, March 2018 Page 84

THE NEW ROLLS-ROYCE PHANTOM. PURSUIT OF PERFECTION, VISIONARY ENGINEERING & AESTHETIC ACUITY. BMW Group Investor Factbook, March 2018 Page 85

STRONG PERFORMANCE OF M PRODUCTS SERVES AS A STARTING POINT FOR FURTHER GROWTH. Sales Volume BMW M and M Performance Automobiles M Automobiles M Performance Automobiles 44,872 62,368 27,881 67,830 30,357 80,795 40,499 16,967 17,118 26,873 6,211 20,662 31,276 14,242 17,034 23,943 20,929 34,487 37,473 40,296 2010 2011 2012 2013 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 Page 86

BMW M AUTOMOBILES ARE THE VERY SPORTY AND DYNAMIC END OF OUR MODEL RANGE. AN EXAMPLE: BRAND SHAPER BMW M4 GTS M AUTOMOBILES BMW M2 Coupé M PERFORMANCE AUTOMOBILES BMW M240i Coupé CORE BRAND MODEL WITH M SPORT PACKAGE BMW 420i Coupé with M sport package TOP MODEL CORE BRAND BMW 228i Coupé BMW Group Investor Factbook, March 2018 Page 87

BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. ADVENTURE TOUR SPORT ROADSTER HERITAGE URBAN MOBILITY BMW Group Investor Factbook, March 2018 Page 89

FY-2017 MOTORCYCLES SEGMENT. INCREASE IN DELIVERIES, SALES AND EARNINGS. In m 2017 2016 Change in % Sales (units) 164,153 145,032 +13.2 Revenues (in m ) 2,283 2,069 +10.3 Earnings before interest and tax (EBIT) (in m ) 207 187 +10.7 EBIT margin (in %) 9.1 9.0 +0.1 pp Earnings before tax (EBT) (in m ) 205 185 +10.8 BMW Group Investor Factbook, March 2018 Page 90

Q4-2017 MOTORCYCLES SEGMENT: VERY GOOD PERFORMANCE IN SALES AND PROFIT. In m Q4-2017 Q4-2016 Change in % Sales (units) 36,335 28,988 +25.3 Revenues (in m ) 450 419 +7.4 Earnings before interest and tax (EBIT) (in m ) -75-37. EBIT margin (in %) -16.7-8.8-7.9 pp Earnings before tax (EBT) (in m ) -76-38. BMW Group Investor Factbook, March 2018 Page 91

STRONG BMW MOTORRAD RETAIL SALES 1990 TO 2017 AND NEW SALES TARGET 2020. Retail BMW Motorrad [in 1,000 units] 200.0 164.2 137.0 145.0 74.6 84.7 92.6 93.0 97.5 100.1 102.5 101.7 92.3 87.3 98.0 115.2 104.3 106.4 123.5 50.2 31.3 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 BMW Group Investor Factbook, March 2018 Page 92

MOST IMPORTANT MARKETS FOR BMW MOTORCYCLES IN 2017. Retail BMW Motorrad by regions [in %] 16.2 Germany Other markets 44.1 8.3 United States 10.1 France 8.8 Italy United Kingdom 5.7 6.8 Spain BMW Group Investor Factbook, March 2018 Page 93

BMW MOTORRAD NEW STRATEGY SUPPORTS SUSTAINABLE AND PROFITABLE GROWTH. BRAND VALUE AND PREMIUM POSITIONING BRAND MANAGEMENT CORE PRODUCTS <500cc HERITAGE URBAN MOBILITY E-MOBILITY BMW Group Investor Factbook, March 2018 Page 94

THE BMW MOTORRAD MODEL OFFENSIVE. BMW Group Investor Factbook, March 2018 Page 95

SUCCESSFUL FY 2017 FOR BMW MOTORRAD. EBIT MARGIN WITHIN TARGET CORRIDOR OF 8-10%. EBIT margin development BMW Motorrad [in %] Target corridor: 8-10% (starting 2017) 9.1 9.0 9.1 5.9 6.1 4.1 1.8 5.4 3.1 0.6 5.3 6.7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 Page 96

TODAY SF FULFILLS ITS VALUE CONTRIBUTION ROLE WITHIN THE GROUP. Research & Development Production Sales & Marketing Financial Services Support of Sales Customer Interface Profit Contribution Penetration Rate: 46.8% (31.12.2017) Customers: 4.9 Million (31.12.2017) Return on Equity > 14% (Target) Financing Partners of BMW Group. Strengthen Automotive Brands of BMW Group. Win new Customers for BMW Group. Service and Loyalize all Customers for BMW Group. Significant Profit Contribution to BMW Group. BMW Group Investor Factbook, March 2018 Page 98

BMW GROUP FINANCIAL SERVICES AT A GLANCE. Global Presence as of 12/2017 Business Lines as of 12/2017 Global Operations in 58 Countries Retail Finance 88.8 bn Dealer Finance 19.2 bn ~ 4.9 Million Serviced Retail Contracts Americas 28% 21% EU Bank Fleet Business 12.4 bn Multi Make Financing 6.7 bn EMEA 33% 18% Asia, Pacific Insurance 3.6 mn contracts Banking 13.6 bn BMW Group Investor Factbook, March 2018 Page 99

FY-2017 FINANCIAL SERVICES SEGMENT: SUCCESSFUL FINANCIAL YEAR 2017. ROE TARGET OF >18% ACHIEVED. In m FY-2017 FY-2016 Change in % New customer contracts (units) 1,828,604 1,811,157 +1.0 Revenues 27,567 25,681 +7.3 Earnings before tax (EBT) (in m ) 2,207 2,166 +1.9 Return on Equity (in %) 18.1 21.2-3.1 pp Penetration rate (in %) 46.8 49.6-2.8 pp Credit loss ratio (in %) 0.34 0.32 +0.02 pp BMW Group Investor Factbook, March 2018 Page 101

FINANCIAL SERVICES SEGMENT REMAINS ON SUCCESSFUL COURSE IN Q4-2017. In m Q4-2017 Q4-2016 Change in % New customer contracts (units) 459,341 469,365-2,1 Revenues 6,798 6,741 +0.8 Earnings before tax (EBT) (in m ) 414 525-21.1 Penetration rate (in %)* 46.8 49.6-2.8 pp Credit loss ratio (in %)* 0.34 0.32 +0.02pp BMW Group Investor Factbook, March 2018 * *Figures for FY-2016/2017 Page 102

SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Earnings before Tax (EBT) Financial Services [in mn ] SF 19% 1,790 439 3) 1,561 124 4) 1,619 1,723 1,975 2,166 2,207 1,214 122 2) 743 365 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-292 1) 1) FY-08 EBT includes a negative effect of EUR 1,057 million from additional credit and residual value risk provisions. BMW Group Investor Factbook, March 2018 2) FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business. 3) FY-11 EBT includes a positive effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better than expected off-lease business. Page 103 4) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business.

RETURN ON EQUITY (ROE) FINANCIAL SERVICES. NEW TARGET ROE OF >14% FROM 2018. Return on equity (ROE) Financial Services [in %] 29.4% Target: >18 % *** New Target >14 % 18.1% 26.1% 22.2% 19.6% 20.0% 19.4% 20.2% 21.2% 18.1% 2006 2007 2008* 2009 2010 2011 2012 2013** 2014 2015 2016 2017-7.3% BMW Group Investor Factbook, March 2018 * FY-08 RoE includes a negative PBT effect of EUR 1,057 million from additional credit and residual value risk provisions (adjusted RoE: 19.2%) (AR-2008 pg. 14). ** 2013 figures have been adjusted in accordance with IAS 8. No quarterly equity reporting on segment level in 2006. *** New ROE Target starting 2018 Page 104

BMW GROUP FINANCIAL SERVICES PENETRATION RATE RETAIL BUSINESS. Penetration rate Retail business * [in %] 60.0 50.0 42.4 44.7 48.5 49.0 48.2 41.1 40.4 44.0 41.7 46.3 49.6 46.8 Leasing 40.0 30.0 25.2 27.2 27.6 24.3 24.1 21.1 19.7 21.5 20.9 22.1 22.3 20.8 Financing 20.0 10.0 17.2 17.4 20.9 24.7 24.1 20.0 20.7 22.5 20.8 24.2 27.3 26 0.0 2006 2007 2008 2009 2010 2011** 2012 2013 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 *Penetration Rate: New BMW Group Cars that retailed in combination with a BMW Group Financial Services contract (i.e. Loan or Lease) divided by official retail sales of the BMW Group in markets with Financial Services activities. **The penetration rate dropped significantly due to the consolidation of BMW Group Financial Services China as of 1 January 2011. Page 105

BMW GROUP FINANCIAL SERVICES. SOLID DEVELOPMENT OF CREDIT LOSS RATIO. Credit loss ratio* [in %] 0.84 0.67 0.59 0.41 0.46 0.49 0.48 0.46 0.50 0.37 0.32 0.34 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 * Definition Credit Loss Ratio : credit losses in relation to the average serviced portfolio. Credit losses: all write offs, meaning the lost receivable including accumulated interest and other costs less utilized collateral. Income related to the recovery process after write off is also taken into consideration. Page 106

ALPHABET PROVIDES INNOVATIVE AND HOLISTIC MOBILITY SERVICES FOR CORPORATE CUSTOMERS SE ES UK NL BE LU FR CH DK DE CZ AT IT HU PL SK RO CN 4 th largest European fleet management company. Stable profit contribution, meeting SF profitability target requirements (ROE >18%). Tailor-made, innovative Business Mobility Solutions including Corporate Car Sharing and Mobility Apps. Serving 85.000 corporate customers in 17 European countries, Australia and China with a team of ~2,900 people. Alphabet country presence 4 business cooperation countries Alphabet (incl. Business Lines) in m Multi Make portfolio of 680,000 vehicles with a BMW share of 33%. AU BMW Group Investor Factbook, March 2018 Page 1

THE BUSINESS MOBILITY SOLUTIONS ARE A HOLISTIC APPROACH AND SERVE ALL CUSTOMER NEEDS Funding Solutions Fleet Management Services Advanced Mobility Solutions Maintenance and Repair Tyre & Fuel Management Customer & Online Service Accident Management Roadside Assistance Rental Services Safety/Eco Driver Training Insurance Fine & Tax Management CO2 Compensation AlphaCity AlphaElectric AlphaGuide AlphaFlex BMW Group Investor Factbook, March 2018 Page 108

PREMIUM SEGMENT SHARE OF TOTAL MARKET 2017. in % 30 25 26.4 24.4 20 15 10 10.3 13.3 11.7 9.4 10.0 10.3 8.2 9.8 9.3 7.0 8.6 World Average: 9.3% 5 4.4 0 Germany United Kingdom South Africa Spain Italy France Australia USA Russia Canada South Korea Turkey China Japan BMW Group Investor Factbook, March 2018 Source: Global Insight 10/2017 Page 110

GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW AT A CAGR OF 2.6% TO 9.97 MN UNITS BY 2022. 12,000 10,000 8,000 Rest of World, CAGR +5.0% BRIKT*, CAGR +8.5% 6,000 4,000 2,000 Region ( 000 units) 2017 2022 Change World 8,781 9,972 14% Rest of World 668 853 28% BRIKT* 438 660 51% China (Mainland) 2,387 2,885 21% Japan 225 256 14% North America 1,954 2,189 12% Western Europe 3,109 3,128 1% China, CAGR +3.9% Japan, CAGR +2.6% North America, CAGR +2.3% Western Europe, CAGR +0.1% 0 2017 2018 2019 2020 2021 2022 BMW Group Investor Factbook, March 2018 Source: Global Insight 09/2017 *BRIKT refers to Brazil, Russia, India, South Korea and Turkey Page 111

BMW AND MINI RETAIL SALES DEVELOPMENT IN MAINLAND CHINA YTD 02/2018. Share of JV Sales (through BMW Brilliance Automotive) 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 65% 63% 71% +15.1% 36.4 in 000 units Import JV Sales +86.7 % +41.9% +37.5 % +27.5 % 51.6 65.8 90.5 43.7 35.2 22.6 30.6 13.8 21.0 30.7 46.8 +40.3 % +37.6 % 169.0 232.6 +19.7 % 326.4 198.5 141.2 384.1 316.2 275.9 282.0 94.4 +7.6% 53.7 185.3 192.2 180.1 181.7 200.2 210.3 115.3 138.2 58.1 70.3 34.0 28.7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 YTD 2018 YTD BMW Group Investor Factbook, March 2018 +16.7 % 390.7 +11.4% +1.7% 463.7 456.0 594.4 516.4 92.0 99.0 Page 112

GROWTH IN CHINA DESPITE MARKET NORMALIZATION. GROWTH OF DEALER NETWORK AND FURTHER LOCALIZATION. 5 MODELS IN LOCAL PRODUCTION & MORE TO COME 3 SERIES 5 SERIES BMW and MINI outlets in China (as of 31 December 2017) Outlet BMW MINI North 105 31 East 114 26 Southeast 95 19 West 142 31 South 142 28 Total 598 135 X1 (SINCE 2012 ) 1 SERIES SEDAN (SINCE 2017) 2 SERIES ACTIVE TOURER (SINCE 2016) CHINA SPECIFIC X3 (2018) BMW Group Investor Factbook, March 2018 Page 113

BMW 1 SERIES SEDAN: SPORTY, HIGHLY EMOTIONAL MODEL EXCLUSIVELY FOR THE CHINESE MARKET. BMW Group Investor Factbook, March 2018 Page 114

BMW AND MINI RETAIL MIX IN MAINLAND CHINA FY-2017. 3er; 24.1% 4er; 1.2% 2er; 4.2% 1er; 6.1% 5er; 21.6% MINI; 5.9% Z4; 0.0% BMW i; 0.3% X6; 1.2% X5; 7.8%* X4; 1.9% X3; 5.9% X1; 15.3% 6er; 0.1% 7er; 4.3% BMW Group Investor Factbook, March 2018 Source: BMW & MINI Retail data, FY-2017 Page 115 *Share of 5 series worldwide: 14.1%

BMW BRILLIANCE AUTOMOTIVE A SUCCESS STORY WITH GROWING REVENUE AND EARNINGS CONTRIBUTION. BBA retail sales in 1,000 units 276 282 199 141 94 31 35 44 54 316 384 BBA s contribution to BMW Group s at-equity result (in EUR mn) 658 522 507 411 280 175 102 11 25 42 631 BMW Group revenues from goods and services sold to BBA (in EUR mn) 293 406 532 1,046 1,729 2,962 3,588 5,316 4,417 4,815 5,946 BMW Group Investor Factbook, March 2018 Page 116

VISION 2020: THE BMW GROUP IS THE MOST SUCCESSFUL AND SUSTAINABLE PREMIUM PROVIDER OF INDIVIDUAL MOBILITY. The new era of mobility will be characterized by sustainability, connectivity and automated driving. HARALD KRÜGER, CEO BMW GROUP BMW Group Investor Factbook, March 2018 Page 118

SUSTAINABILITY IS FULLY INTEGRATED IN THE BMW GROUP AND LEADS TO TOP RATINGS. 1973 First environmental manager in the automotive industry. 2000 Executive Board resolution Sustainability is a guiding principle of the BMW Group s corporate strategy. 2009 Establishment of Sustainability Circle and Board. Corporate sustainability is declared as corporate target. TOP RATINGS Dow Jones Sustainability Indices: BMW Group has been a Sustainability Leader in the Automotive Industry for over 15 years. Carbon Disclosure Project: Industry leader 2011, 2012, 2013, 2014, 2015, 2016, 2017. FTSE4Good: Listed in the FTSE4Good Index. Oekom: Corporate Responsibility Rating oekom, Status: Prime. Sustainalytics: Ranked No. 1 in the DAX 30 Sustainalytics (no update since 2011). BMW Group Investor Factbook, March 2018 Page 119

SUSTAINABILITY IS INTEGRATED THROUGHOUT THE ENTIRE VALUE CHAIN. Research & Development Supply Chain Production Logistics & Transportation Sales & Utilization Disposal & Recycling 25% reduction of CO 2 emissions of new 7series over entire life cycle 69% of productionrelevant purchasing volume in CDP Supply Chain Program 5,616 supplier locations assessed on an industry-specific sustainability questionnaire 155 mn. savings based on resource efficiency since 2006 63% share of renewable energy purchased from third parties 60% of new vehicles leaving plants via railway e-lorries deployment of first all-electric lorries in the transport of goods near the plants 41% (124 g/km) reduction of CO2-emissions in European new car fleet since 1995 853,000 DriveNow and ReachNow customers worldwide 95% of end-of-life vehicle recycled / disposed BMW Group Investor Factbook, March 2018 As of 31 December 2016 Page 120

CONSISTENT REDUCTION OF OUR CO 2 FLEET EMISSIONS TO MEET STRICT REGULATIONS. Fleet emissions EU-28 in g CO 2 /km - 42% since1995 145 143 133 130 127 124 122 2011 2012 2013 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 Page 121

BMW AG SHAREHOLDER STRUCTURE SUPPORTIVE FOR LONG-TERM ORIENTATION OF THE COMPANY. Ownership of BMW AG s ordinary shares (in %) Free Float Strategic shareholders* 46.8 53.2 * Strategic shareholders as of 31 Dezember 2017: AQTON SE, Bad Homburg v.d. Höhe (17.4%) held by Stefan Quandt, Johanna Quandt GmbH & Co. KG für Automobilwerte, Bad Homburg v.d. Höhe (16.4%), Susanne Klatten Beteiligungs GmbH, Bad Homburg v.d. Höhe (12.6%), Susanne Klatten (0.2%), Stefan Quandt (0.2%) BMW Group Investor Factbook, March 2018 Page 123

DIVERSIFIED SHAREHOLDER STRUCTURE: GEOGRAPHICAL DISTRIBUTION OF INSTITUTIONAL EQUITY INVESTORS. TOTAL NORTH AMERICA Canada 2.4% United States 35.6% 33.2% TOTAL Total Rest of World: 0.7% Norway 5.4% United Kingdom 16.9% Germany 13.9% France 9.6% EUROPE 58.3% TOTAL ASIA 5.2% Hong Kong/China 1.9% Singapore 1.4% Japan 1.3% The TOP 30 aggregated institutional shareholders represent 185m BMW shares. This is a share of 28.8% out of 656m outstanding shares. Majority of investors is long-term oriented. BMW Group Investor Factbook, March 2018 As of 30.06.2017. Known institutional holdings: 100% = 271 million shares (ordinary + preferred) of a total of 656 million outstanding shares. Page 124

DIVIDEND DEVELOPMENT & PAYOUT RATIO. STRATEGIC TARGET PAYOUT RATIO: 30-40%. Total Dividend payout to BMW AG shareholders 3,000 [in m ] Payout 2,500 ratio* [in %] 2,000 1,500 93.8 59.7 1,508 1,640 1,707 1,904 2,102 2,300 2,630 100 90 80 70 60 50 1,000 500 458 15.9 694 22.1 197 197 852 26.3 30.7 32.1 32.0 32.7 32.9 33.3 30.2 40 30 20 10 Target corridor: 30-40 % Dividend per ordinary share [in ] 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0.70 1.06 0.30 0.30 1.30 2.30 2.50 2.60 2.90 3.20 3.50 4.00 0 * Payout ratio: total dividend payout to BMW AG shareholders divided by Group net profit / loss. BMW Group Investor Factbook, March 2018 Net profit / loss: 2013 figures have been adjusted in accordance with IAS 8 (AR-2014, p. 90); 2012 figures adjusted in accordance with IAS 19 (AR-2013, p. 88); 2010 figures adjusted for effect of change in accounting policy for Page 125 leased products (AR-2011, pg. 77).

BMW GROUP S FINANCE STRATEGY COVERS THE ENTIRE AUTOMOTIVE VALUE CHAIN. BMW GROUP CORPORATE FINANCE STRATEGY REFLECTS THE INDUSTRIAL NATURE OFTHE BUSINESS AND IS FOCUSED ON THE ENTIRE AUTOMOTIVE VALUE CHAIN. Automotive value chain Research & Development Production Sales & Marketing Financial Services BMW Group Investor Factbook, March 2018 Page 127

BROAD INVESTOR BASE. Canada CAD ABS CAD Bonds Project Financing EDC Mexico Project Financing Plant funding USA USD Commercial Paper USD Bonds (144A) USD US PP USD ABS BCD/ICD Europe EUR Commercial Paper French Commercial Paper EMTN Private Placements EUR Bonds GBP Bonds CHF Bonds ECB Deposits EUR ABS GBP ABS CHF ABS Project Financing EIB Plant funding KFW Tools India INR Bonds INR Promissory Notes China RMB ABS China Financial Bonds Project Financing JV Brilliance South Korea KRW Bonds USD/KRW ABS Japan JPY SSD JPY ABS Brazil BRL ABS Project Financing Plant funding South Africa ZAR ABS ZAR Bonds Australia AUD (AMTN) Bonds AUD ABS BMW Group Investor Factbook, March 2018 Page 128

DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of 31.12.2017 <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ CP (EMTN) PPs Bonds Commercial paper 5% Derivative instruments 1% Other 1% Banks loans ABCP ABS Customers deposits Liabilities from customer deposits 14% Fed Funds Industry-typical instruments BCD s Bank-typical instruments Liabilities to banks 13% ABS 18% 94.6 bn Bonds 48% Die BMW Group weist weiterhin eine gut diversifizierte Fremdkapitalstruktur auf. BMW Group Investor Factbook, March 2018 Seite 129

BMW GROUP CONTINUES TO MAINTAIN A SOLID LIQUIDITY POSITION. Group Liquidity [in bn ] 16.0 Marketable securities & investment funds 14.0 Cash & cash equivalents 12.0 10.0 8.0 8.2 0.7 9.4 1.6 9.0 1.6 10.1 2.3 11.0 10.7 2.7 3.1 11.7 11.4 4.0 5.3 13.2 5.3 14.5 5.5 6.0 4.0 2.0 0.0 8.1 3.4 7.5 7.8 7.4 7.8 8.4 9.0 7.7 7.7 7.9 2.0 6.1 2.0 1.3 2.4 2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 2017 BMW Group Investor Factbook, March 2018 * 2013 figures have been adjusted in accordance with IAS 8. Page 130

DEVELOPMENT OF 5-YEAR CDS. 600 bps 500 400 300 200 100 0 01/01/07 01/01/08 01/01/09 01/01/10 01/01/11 01/01/12 01/01/13 01/01/14 01/01/15 01/01/16 01/01/17 01/01/18 BMW Group Investor Factbook, March 2018 Source: Reuters Credit Views as of 15 March 2018 Page 131

BMW GROUP WITH BEST RATING AMONG EUROPEAN AUTOMOTIVE MANUFACTURERS AND BEST RATING FOR PREMIUM MANUFACTURERS GLOBALLY. Standard & Poor s Moody s Short-term Rating A-1 P-1 Long-term Rating A+ A1 Outlook Stable Stable BMW Group Investor Factbook, March 2018 Page 132 Page 9

BMW GROUP INVESTOR RELATIONS. CONTACTS. Torsten Schüssler Head of Investor Relations Bernd Daser Debt & Equity IR Mariam Kremer Debt & Equity IR +49-89-382-25387 torsten.schuessler@bmw.de +49-89-382-31684 bernd.daser@bmw.de +49-89-382-96136 mariam.kremer@bmw.de Patrick Neumayer Debt & Equity IR Americas Tanja Seiler Equity & SRI IR Andreas Stöffler Equity IR +1-201-307-4210 patrick.neumayer@bmwna.com +49-89-382-75161 tanja.seiler@bmw.de +49-89-382-17944 andreas.stoeffler@bmw.de http://www.bmwgroup.com/ir IR Contact BMW Group Investor Relations Petuelring 130 80788 Munich ir@bmwgroup.com BMW Group Investor Factbook, March 2018 Page 134

BMW GROUP INVESTOR FACTBOOK. March 2018