INVESTOR PRESENTATION BMW Group Investor Presentation, January 2014 - - PowerPoint PPT Presentation

BMW Group Investor Presentation, January 2014 Page 1

INVESTOR PRESENTATION

January 2014

BMW Group Investor Presentation, January 2014 Page 2

THIRD QUARTER / NINE MONTH 2013 RESULTS.

*) Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 4 on page 37 of the quarterly report to September 30, 2013.

in euro million Q3-2013 Q3-2012* Change in % 9M-2013 9M-2012* Change in % Retail sales (units) 481,657 434,963 10.7 1,436,178 1,335,502 7.5 Group revenues 18,750 18,817

• 0.4

55,848 56,312

• 0.8

Automotive 17,196 17,187 0.1 51,304 50,712 1.2 Financial Services 4,994 4,916 1.6 14,882 14,582 2.1 Penetration Rate (in %)

• 45.0

39.2

• Group profit before financial result (EBIT)

1,928 2,002

• 3.7

6,035 6,403

• 5.7

Automotive 1,549 1,647

• 6.0

4,887 5,545

• 11.9

EBIT Margin Automotive (in %) 9.0 9.6

• 9.5

10.9

• Financial Services

390 424

• 8.0

1,308 1,291 1.3 Group profit before tax (PBT) 1,989 1,987 0.1 6,024 6,043

• 0.3

Group net profit 1,330 1,289 3.2 4,034 3,918 3.0 Earnings per share (in euro) 2.02 / 2.02 1.95 / 1.95 3.6 / 3.6 6.12 / 6.13 5.94 / 5.95 3.0 / 3.0 Free cash flow (Automotive)1) 784 1,268

• 38.2

2,454 3,224

• 23.9

Research & Development Costs (HGB) 1,270 988 28.5 3,228 2,831 14.0 % of Revenues 6.8 5.3

• 5.8

5.0

• Capital Expenditure

1,956 1,232 58.8 4,334 2,721 59.3 % of Revenues 10.4 6.5

• 7.8

4.8

• 1) Adjusted for reclassifications as described in note 42 on page 141 of the annual report 2012.

BMW Group Investor Presentation, January 2014 Page 3

GUIDANCE 2013.

BMW Group

Group profit before tax in 2013 should be on a similar scale to that reported for 2012.

Automotive Segment

• Single digit sales volume growth with a new sales record in FY-2013.
• EBIT margin of 8-10%.
• Return on Capital Employed of >26%.

Increased sales volumes in 2013 should result in higher revenues and earnings.

Motorcycles Segment

Return on Equity of > 18%.

Financial Services Segment

BMW Group Investor Presentation, January 2014 Page 4

CONTENT.

1 Corporate Strategy 3 Growth Markets 4 Automotive 5 Motorcycles 6 Financial Services 7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 2 BMW i

BMW Group Investor Presentation, January 2014 Page 5

BMW GROUP. STRATEGY NUMBER ONE.

Page 5

BMW Group Investor Presentation, January 2014 Page 6

STRATEGIC OBJECTIVE.

We want to be the leading provider of premium products and premium services for individual mobility.

Page 6

BMW Group Investor Presentation, January 2014 Page 7

THE WAY AHEAD – NUMBER ONE.

Number ONE defines

• our vision for the year 2020.
• our mid-term targets for the year 2016.
• our internal milestones.

Our vision is targeted towards creating value and securing future success. We are driven by our goal to increase profitability.

Page 7

BMW Group Investor Presentation, January 2014 Page 8

STRATEGY NUMBER ONE – MANAGING THE TECHNOLOGICAL CHANGE TO REMAIN FUTURE PROOF.

Evolution

Efficient combustion engines Innovative technologies

Revolution

Alternative drive trains Mobility services

BMW Group Investor Presentation, January 2014 Page 9

TECHNOLOGICAL CHANGE – TURNING A CHALLENGE INTO AN OPPORTUNITY.

Internal Combustion Engine E-Mobility Hybrids

In times of technological change we have to improve our existing technologies and invest heavily in new technologies to remain future proof.

time Growth, technological progress

Technological change

REVOLUTION

Alternative drive trains Mobility services EVOLUTION Efficient combustion engines Innovative technologies

BMW Group Investor Presentation, January 2014 Page 10

i3 / i8 Future Retail New products CFRP Modular system powertrains 2013: Increasing capex + additional upfront investments

CAPEX FOR ESTABLISHED PROJECTS BUT ALSO SIGNIFICANT UPFRONT INVESTMENTS NEEDED TO SECURE BMW GROUP’S FUTURE.

BMW Group Investor Presentation, January 2014 Page 11

TARGETS 2016.

BMW Group 2012 2016

R&D ratio (cash R&D, %) 5.1 5.0 – 5.5 Capex ratio (%) 6.8 <7.0 Payout ratio (%) 32.0 30.0 – 40.0

Automotive Segment

Retail unit sales (‘000 units) 1,845 > 2,000 Return on Capital Employed (%) 75.0 > 26.0 Return on Sales (EBIT, %) 10.9 8.0 – 10.0 Free cash flow (euro million) 3,809 > 3,000

Segment Financial Services

Return on Equity (%) 21.2 > 18.0

BMW Group Investor Presentation, January 2014 Page 12

DEVELOPMENT OF R&D RATIO.

R&D Ratio: R&D Expenditure (HGB) / Group Revenues

7.0% 2012 2002 2003 2004 2005 2006 2007 2011 2008 2009 2010 5.1% 5.8% 6.2% 6.7% 6.5% 5.6% 5.4% 6.4% 6.5% 5.0% 4.5% 6.0% 4.0% 4.8% 4.6% 4.9% 5.5%

BMW Group Investor Presentation, January 2014 Page 13

2002

DEVELOPMENT OF CAPEX RATIO.

Capex Ratio: Total Capex / Group Revenues

10.0% 8.0% 6.0% 9.0% 5.0% 6.8% 9.5% 10.2% 9.8% 8.6% 8.8% 2012 Target: <7.0% 7.6% 2003 2004 2005 2006 2007 2011 2008 7.9% 2009 6.8% 2010 5.4% 5.4% 7.0%

BMW Group Investor Presentation, January 2014 Page 14

MANAGING VOLUME GROWTH, INNOVATION AND PROFITABILITY THROUGH COST-CONSCIOUS, EFFICIENT R&D.

• E-mobility
• New materials
• New technologies
• Strong growth of

product portfolio

• Seizing new
• pportunities

Profitability Standardisation Innovation Broader R&D spectrum

BMW Group Investor Presentation, January 2014 Page 15

Without a Modular Strategy, a three-fold increase in model numbers would send costs and resources spiralling along the process chain. The Modular Strategy enables shorter development cycles and enhanced flexibility in our plants.

2015 2020 2005

OUR GOAL: TO MANAGE A THREE-TIMES LARGER PORTFOLIO WITH RESOURCES THAT HAVE NOT INCREASED PROPORTIONATELY.

BMW Group Investor Presentation, January 2014 Page 16

THE MODULAR STRATEGY IS THE ENABLER FOR THE EXPANSION OF THE BMW GROUP MODEL RANGE.

Modular front seat

Common elements e.g.:  Structure  Head restraint

Modular product

Front seat attachment e.g.:

 Standardised seat installation process

Modular system

Underbody e.g.:

 Front seat attachments

Architectures

Lower investment costs Lower fixed costs Lower manufacturing costs Shorter development time Shorter time to market Lower development costs

BMW Group Investor Presentation, January 2014 Page 17

COMMON ARCHITECTURE, NOT PLATFORMS. IN PREMIUM VEHICLES DIFFERENTIATION IS KEY.

BMW architectures allow maximum differentiation between models in terms of design and dimensions and account for about 70% of all production cost.

Engine compartment

Drivetrain Rear BMW architecture = 3 core areas – drivetrain, front wall and fuel/energy space.

BMW Group Investor Presentation, January 2014 Page 18

Cylinders (inline)

• 3
• 4
• 6

Gasoline >60 % Diesel >60 % 30-40 %

Common parts shared within gasoline or diesel engines is approx. 60%. Between the gasoline and diesel engines there is a 40% sharing.

THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY– HIGH LEVELS OF COMMONALITY BETWEEN AND WITHIN DIESEL AND GASOLINE ENGINES.

BMW Group Investor Presentation, January 2014 Page 19

CONTENT.

1 Corporate Strategy 3 Growth Markets 4 Automotive 5 Motorcycles 6 Financial Services 7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 2 BMW i

BMW Group Investor Presentation, January 2014 Page 20

A REVOLUTION. PURPOSE BUILT. BMW i3 – EXTERIEUR.

Launch 11/2013

Please click on the picture to get to additional videos.

BMW Group Investor Presentation, January 2014 Page 21

A REVOLUTION. PURPOSE BUILT. BMW i3 – EXTERIEUR.

BMW Group Investor Presentation, January 2014 Page 22

A REVOLUTION. PURPOSE BUILT. BMW i3 – INTERIEUR.

BMW Group Investor Presentation, January 2014 Page 23

A REVOLUTION. PURPOSE BUILT. BMW i3 – PROFILE & SPECIFICATIONS.

MSRP starts at 34,950 EUR* Weight (DIN) 1,195kg Turning circle 9.86m Output 170hp/250Nm Battery capacity 22kWh 0-60km/h (37mph) in 3.7s 0-100km/h (62mph) in 7.2s Top speed 150km/h (93mph) Charging times from < 30min at 50 kW fast charge to ~8h at domestic socket Range 130-160km (80-100miles), up to 200km (124miles) in most efficient mode

Page 23

* MSRP in Germany including 19% VAT

BMW Group Investor Presentation, January 2014 Page 24 Please click on the picture to get to additional videos.

THE WORLD’S MOST PROGRESSIVE SPORTS CAR: THE BMW i8.

Launch H1/2014

MSRP starts at 126,000 EUR* Weight (DIN) 1,490kg Output 362hp/320Nm 0-100km/h (62mph) in 4.4s Top speed 250km/h (155mph) Electric driving range 35km (22miles) Fuel consumption 2.5l/100km (94mpg) 59g CO2/km

* MSRP in Germany including 19% VAT

BMW Group Investor Presentation, January 2014 Page 25

THE LIFE / DRIVE CONCEPT. BMW i3 AND BMW i8.

BMW Group Investor Presentation, January 2014 Page 26

Generate growth Shaping the future

 New target groups.  New products and services.

Technologies/ customers

 Pioneering technologies and design.  Visionary services.  New sales concepts. Number ONE  Sharpen BMW image as sustainable brand.  Differentiation from competition.  Future-proof product portfolio.

Growth Shaping the future Profitability Access to new technologies/ customers

STRATEGIC OBJECTIVES OF BMW i DERIVED FROM CORPORATE STRATEGY NUMBER ONE.

BMW Group Investor Presentation, January 2014 Page 27

OVER 32 MILLION ELECTRIC KILOMETERS WITH REAL USERS OF THE MINI E AND BMW ActiveE LEADING UP TO BMW i.

MINI E (2009-2012) BMW ActiveE (2011-2014)

16 million kilometers ~600 vehicles 16 million kilometers ~1,000 vehicles

BMW i3 and BMW i8

BMW i is more than just an electric car. BMW i offers 360° ELECTRIC. BMW i delivers joy of driving. Adequate vehicle. High interest of purchase. Joy of driving and one-pedal-feeling. High satisfaction of mobility needs. Range was rarely the limiting factor. Most users charge 2-3 times per week and charging events decreased during usage.

BMW Group Investor Presentation, January 2014 Page 28

BMW i – A HOLISTIC APPROACH.

LifeDrive 360° Electric BMW eDrive Mobility services Holistic sustainability Carbon fibres Premium design of the future Connectivity

Page 28

BMW Group Investor Presentation, January 2014 Page 29

FLEXIBLE MOBILITY

“A new mobile lifestyle”

PUBLIC CHARGING

“On the road”

HOME CHARGING

“Convenient charging at home”

ASSISTANCE SERVICES

“Provide assurance”

360° ELECTRIC.

BMW i WILL PROVIDE FLEXIBLE MOBILITY.

BMW Group Investor Presentation, January 2014 Page 30

SUSTAINABLE PRODUCTION FOR BMW i3 AND i8. BENCHMARK IN THE AUTOMOTIVE INDUSTRY.

100% renewable energy –70% water –50% energy

Please click on this production picture for additional video content.

BMW Group Investor Presentation, January 2014 Page 31

NEW PRODUCTION CONCEPT. NO PRESS SHOP NEEDED. PAINTING OF THE EXTERIOR PLASTIC PARTS ONLY.

Press shop Paint shop Body shop Assembly Conventional vehicle production BMW i production

• Total production processing time reduced by ~50%
• ~50% less storage space requirements
• Number of components in the body shop reduced by 1/3 to ~130
• No painting of full body, no anti-corrosion needed

BMW plant Leipzig BMW plants Dingolfing & Landshut Body shop CFRP parts Externally sourced parts Assembly Painted plastic cladding exterior Drive module

BMW Group Investor Presentation, January 2014 Page 32

CARBON FIBER PRODUCTION – CORE COMPETENCE WITHIN BMW GROUP.

Preform CFRP- components BMW i3 & i8

nts

The production of CFRP components is our core competence – preforming, Resin-Transfer-Moulding (RTM), milling and tempering is all done in the BMW Group plant in Landshut. Painting and final assembly is done in the BMW Group plant in Leipzig.

BMW GROUP

JV MSP*, Otake/Japan Mitsubishi Rayon Co. Ltd. (MRC), Otake/Japan

• (Steam) Cracking
• Ammoxidation

Acrylonitrile

• Polymerisation / Spinning

SGL ACF, Moses Lake/USA

• Oxidation
• Carbonisation

PAN-Precursor

SGL ACF, Wackersdorf/Germany

• Knitting

Carbon Fibers

*) Joint Venture Mitsubishi Rayon –

SGL Precursor Co. Ltd. (MSP)

CF Fabrics Recycling

SGL Automotive Carbon Fibers – a BMW Group and SGL Group JV

BMW Group Investor Presentation, January 2014 Page 33

CONTENT.

1 Corporate Strategy 3 Growth Markets 4 Automotive 5 Motorcycles 6 Financial Services 7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 2 BMW i

BMW Group Investor Presentation, January 2014 Page 34

USA India China Russia Brazil South Korea Eastern Europe Turkey

PRIORITY ON GROWTH MARKETS.

BMW Group Investor Presentation, January 2014 Page 35 303 375 286 273 520 1,312 1,001 1,205 694 601 1,730 2,500 500 1,000 1,500 2,000 2,500 3,000 Brazil Russia India Turkey South Korea Mainland China 2011 2020

NUMBER OF MILLIONAIRES IN THE ESTABLISHED AND BRIKT MARKETS.

27,764

45,701 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Established Markets

CAGR +5.7%

(USA, Japan, Germany, United Kingdom, France, Italy)

2011 2020

thsd. thsd. +14.2% +13.9% +10.4% +9.2% +14.3% +7.4%

Source: Deloitte (June 2011): „The next decade in global wealth among millionaire households”

BMW Group Investor Presentation, January 2014 Page 36

BMW GROUP’S CHINA STRATEGY FOCUSES ON DYNAMIC AND PROFITABLE GROWTH.

China’s premium segment has highest CAGR worldwide of 9.9% (2012-2020; Global Insight Data) Attractive growth prospects: rising per capita income and growing upper middle class + +

BMW Group Investor Presentation, January 2014 Page 37 50 100 150 200 250 300 350 400 450 2005 2006 2007 2008 2009 2010 2011 2012 2013 BMW MINI

BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA, FY-2013.

24.0 36.4 51.6 65.8 90.5 169.0 232.6

Source: BMW Group Retail data, FY-2013. in ‘000 units

326.4 390.7

BMW Group Investor Presentation, January 2014 Page 38

BMW AND MINI RETAIL MIX IN CHINA FY-2013.

7 series: 6.6% MINI: 7.3% 6 series: 0.5% X6: 2.8% 5 series: 34.6% 1 series: 4.3% X1: 9.7% 3 series: 19.1% X3: 8.2% Z4: 0.4%

Source: BMW & MINI Retail data, FY-2013

X5: 6.6%

BMW Group Investor Presentation, January 2014 Page 39

China urbanization forecast by 2025

Highly-developed areas Less-developed areas

• Huge number of cities in China: 350 prefecture level cities and 100 county level cities.
• City development level is quite different.
• 350 million people will be added to China’s urban population by 2025 (more than the population of today’s United

States, McKinsey estimates).

URBANIZATION IN CHINA – ONGOING POTENTIAL.

China cities – brief introduction

The scale of China’s cities and the trend towards city urbanization ensure that China will remain a substantial market.

Beijing 16.5 million Tianjin 11.5 million Chengdu 13 million Chongqing 36 million Shanghai 18.5 million Shenzhen 12 million Guangzhou 10 million cities population 1-5 million cities population >10 million cities population 5-10 million

9 89 176

BMW Group Investor Presentation, January 2014 Page 40

500 1,000 1,500 2,000 2,500 3,000 2005 2012 2015E 2020E

CHINA PREMIUM SEGMENT DEVELOPMENT.

Ø annual growth rate

+41% 1,927 2,609

1,224 111

With this development, China will become the biggest market for the BMW Group worldwide.

assumed Ø annual growth rate

• ca. +16%

assumed Ø annual growth rate

• ca. +6%

in ‘000 units Source: Global Insight

CAGR 2012-2020: 9.9%

BMW Group Investor Presentation, January 2014 Page 41

Dali Beijing Yantai Qingdao Taiyuan Hohhot Anshan Shenyang Changchun Daqing Linyi Jinan Weifang Shijiazhuang Baoding Tangshan Shanghai Wuhu Hefei Xuzhou Hangzhou Changzhou Nantong Nanjing Lishui Taizhou Wenzhou Jinhua Ningbo Chengdu Mianyang Chongqing Guiyang Kunming Yichang Wuhan Zhengzhou Xi`an Lanzhou Urumqi Guangzhou Haikou Liuzhou Nanning Chenzhou Changsha Nanchang Xiamen Quanzhou Fuzhou Zhongshan Foshan Shenzhen Shantou Handan Yingkou Panjin Qujing Yancheng Beijing Dalian Deyang Xinxiang Huizhou Erdos Luoyang Yinchuan Linfen Guilin Xining Jjiangmen Baotou Harbin Jinzhou Qinhuangdao Zibo Changzhi Datong Yuncheng Tianjin Bengbu Lianyungang Suzhou Wuxi Yangzhou Huai’an Zhenjiang Huzhou Jiaxing Shaoxing Longyan Dongguan Zhuzhou Zhuhai Zunyi Yulin Leshan Putian Pingdingshan Zhaoqing Mudanjiang Jilin Dongying Ningde Zengcheng Lvliang Shangrao Xiangtan Ganzhou Jiamusi Songyuan Kelamayi Langfang Anyang Lhasa Panzhihua Yanji Wuhai Qiqihar Yibin Tongxiang Fuyang Weinan Hulunbei’er

420 BMW AND 92 MINI DEALER OUTLETS IN OPERATION BY 31 DECEMBER 2013.

* 4S: sales, service, spare parts, survey, * 5S: sales, service, spare parts, survey, sustainability

Outlet BMW MINI East 131 30 North 111 22 South 96 20 West 82 20 Total 420 92

Showroom Service outlet 4S/5S* UCC

BMW Group Investor Presentation, January 2014 Page 42

BMW BRILLIANCE AUTOMOTIVE – A SUCCESS STORY WITH GROWING REVENUE AND EARNINGS CONTRIBUTION.

31 35 44 54 94 141 149 20 40 60 80 100 120 140 160 2007 2008 2009 2010 2011 2012 9M-2013

BBA retail sales in 1,000 units BBA‘s contribution to BMW Group‘s at-equity result (in EUR million)

11 25 42 102 175 280 379 50 100 150 200 250 300 350 400 2007 2008 2009 2010 2011 2012 9M-2013 293 406 532 1,046 1,729 2,962 2,575 500 1,000 1,500 2,000 2,500 3,000 3,500 2007 2008 2009 2010 2011 2012 9M-2013

BMW Group revenues from goods and services sold to BBA (in EUR million)

Page 42

BMW Group Investor Presentation, January 2014 Page 43 50 100 150 200 250 300 350 400 450 China* USA Germany UK BRIKT** Japan France Italy Belgium Canada Nordics***

COMBINED BRIKT SALES ARE WITHIN THE TOP 5 MARKETS FOR BMW GROUP IN FY-2013.

*China: Mainland China only; **BRIKT: Brazil, Russia, India, South Korea and Turkey *** Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden Source: BMW & MINI Retail data, FY-2013 in 1,000 units BMW MINI 391 376 259 189 131 64 64 59 43 37 37

BMW Group Investor Presentation, January 2014 Page 44

MINI

5 10 15 20 25 30 35 40 45 50 2006 2007 2008 2009 2010 2011 2012 2013

Retail development in Brazil Retail development in Russia Retail development in India Retail development in South Korea Retail development in Turkey

BRIKT MARKETS BMW AND MINI RETAIL DEVELOPMENT IN FY-2013.

In 1,000 units BMW

Source: BMW & MINI Retail data, FY-2013

Retail development in BRIKT

20 40 60 80 100 120 140 2006 2007 2008 2009 2010 2011 2012 2013 2 4 6 8 10 12 14 16 18 2006 2007 2008 2009 2010 2011 2012 2013 2 4 6 8 10 12 2006 2007 2008 2009 2010 2011 2012 2013 5 10 15 20 25 30 35 40 45 2006 2007 2008 2009 2010 2011 2012 2013 5 10 15 20 25 2006 2007 2008 2009 2010 2011 2012 2013

25 35 40 45 70 99 131 110 2 3 3 6 10 15 17 10 10 15 19 17 22 30 45 40 1 3 4 6 9 7 10 7 8 10 11 19 27 40 34 6 8 5 7 13 17 22 17

BMW Group Investor Presentation, January 2014 Page 45 29.6 25.0 16.3 11.9 11.8 9.1 7.2 6.8 5.7 3.9 1.0 0.9 5 10 15 20 25 30 35 Germany United Kingdom Italy USA France China Russia Turkey

• S. Korea

Japan India Brazil

PREMIUM SEGMENT SHARE OF TOTAL MARKET 2012.

in % World Average: 9.4%

BMW Group Investor Presentation, January 2014 Page 46 2,000 4,000 6,000 8,000 10,000 12,000 2012 2013 2014 2015 2016 2017 2018 2019 2020

THE WORLDWIDE PREMIUM SEGMENT IS EXPECTED TO GROW TO 9.9 MN UNITS PER YEAR IN 2020.

Source: Global Insight

China, CAGR +9.9% Japan, CAGR 0% North America, CAGR +3.9% Western Europe, CAGR +2.2% Rest of World, CAGR +4.7%

Premium Segment: CAGR 2012-2020: 4.7% Total Growth 2012-2020: 45%

*BRIKT refers to Brazil, Russia, India, South Korea and Turkey

Region (‘000 units) 2012 2020 Chg.

World 6,836 9,884 45% Rest of World 500 720 44% BRIKT* 407 687 69% China (Mainland) 1,224 2,609 113% Japan 194 194 0% North America 1,884 2,559 36% Western Europe 2,626 3,116 19%

BRIKT*, CAGR +6.7%

BMW Group Investor Presentation, January 2014 Page 47 200 106 77 73 81 37 53 36 15 301 159 144 126 90 100 76 120 30

50 100 150 200 250 300 350 Russia GCC New EU Countries South America South Korea Brazil Turkey India Ukraine

PREMIUM SEGMENT GROWTH IN EMERGING MARKETS.

1) GCC: Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates 2) New EU Countries: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Rumania, Slovakia, Slovenia 3) South America: Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, Venezuela

2012 Sales Sales Forecast by 2020

3)

Source: Global Insight Russia GCC 1) New EU Countries2) South America3) South Korea Brazil Turkey India Ukraine 50.3% 50.2% 87.6% 72.1% 10.4% 169.1% 43.8% 235.5% 93.3% in ‘000 units

BMW Group Investor Presentation, January 2014 Page 48

CONTENT.

1 Corporate Strategy 3 Growth Markets 4 Automotive 5 Motorcycles 6 Financial Services 7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 2 BMW i

BMW Group Investor Presentation, January 2014 Page 49

THREE AUTHENTIC PREMIUM BRANDS.

The world’s most exciting premium small car brand Sheer driving pleasure The pinnacle of automobile luxury

BMW Group Investor Presentation, January 2014 Page 50

BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS FY-2013.

Deliveries of automobiles (in units) 2013 2012 Change in %

Mainland China 390,713 326,444 19.7 USA 375,782 347,583 8.1 Germany 259,135 287,299

• 9.8

United Kingdom 188,837 174,215 8.4 BRIKT* 131,447 110,363 19.1 Japan 64,216 56,607 13.4 France 64,082 67,318

• 4.8

Italy 59,200 60,505

• 2.2

Belgium 43,255 43,828

• 1.3

Canada 37,723 37,707 0.0 Nordics** 37,072 34,510 7.4 Rest of world 312,336 298,807 4.5

BMW Group 1,963,798 1,845,186 6.4

*BRIKT: Brazil, Russia , India, South Korea and Turkey; ** Nordics: Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden Data for individual markets includes BMW and MINI vehicles; Rolls Royce sales are included in “Rest of World” and in the total figures.

BMW Group Investor Presentation, January 2014 Page 51

DELIVERIES TO CUSTOMERS FY-2013.

Deliveries of automobiles (in units) 2013 2012 Change in % Total BMW 1,655,138 1,540,085 7.5

1 series 213,578 226,829

• 5.8

3 series (incl. GT) 500,695 406,752 23.1 4 series 14,749

• 5 series (incl. GT)

366,992 359,016 2.2 6 series 27,687 23,193 19.4 7 series 56,001 59,184

• 5.4

X1 161,353 147,776 9.2 X3 157,298 149,853 5.0 X5 107,231 108,544

• 1.2

X6 36,688 43,689

• 16.0

Z4 12,866 15,249

• 15.6

Total MINI 305,030 301,526 1.2 Total Rolls-Royce 3,630 3,575 1.5

BMW Group 1,963,798 1,845,186 6.4

BMW Group Investor Presentation, January 2014 Page 52

BMW GROUP AUTOMOTIVE. REGIONAL SPLIT OF RETAIL SALES: FY-2013.

Mainland China

+19.7 %

Asia (w/o China) and Rest of World +9.6 % Americas

+9.1%

Europe

• 0.7%

24% 44% 20%

Growth rate Share of global sales

13%

Source: BMW and MINI Retail Sales only, FY-2013 (figures do not add to 100% due to rounding)

BMW Group Investor Presentation, January 2014 Page 53

REGIONAL RETAIL MIX FY-2013.

Japan: 3.0% GCC2): 1.1% Rest of the World: 4.4% Germany: 13.2% USA: 19.2% Rest of Europe: 12.2% Mainland China: 19.9% UK: 9.6% Italy: 3.3% Canada: 1.9% Belgium: 2.2% France: 3.3%

1) BRIKT: Brazil, Russia, India, South Korea, Turkey 2) GCC: Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates

Source: BMW and MINI Retail Sales only, FY-2013

BRIKT1): 6.7%

BMW Group Investor Presentation, January 2014 Page 54 1 Series 3 Series (incl. GT) 4 Series 5 Series (incl. GT) 6 Series 7 Series X1 X3 X5 X6 Z4

BMW RETAIL BY MODEL 2013 (2012).

100% 12.9% 30.3% 0.9% 22.2% 1.7% 9.7% 9.5% 0.8%

Total BMW Group sales: 1,963,798 (1,845,186 ) units.

BMW brand share: 1,655,138 (1,540,085) units

• r 84.3% (83.5%) of total sales.

(100%) (14.7%) (26.4%) (-) (21.9%) (1.5%) (9.6%) (9.7%) (1.0%)

1,655,138 (1,540,085) 366,992 (337,929) 27,687 (23,193) 161,353 (147,776) 12,866 (15,249) 157,298 (149,853) 107,231 (108,544) 56,001 (59,184) 36,688 (43,689 )

3.4% (3.8%) 6.5% (7.0%) 2.2% (2.8%)

500,695 (406,752) 14,749 (-) 213,578 (226,829)

BMW Group Investor Presentation, January 2014 Page 55 Hatch Convertible Clubman Countryman Coupe Roadster Paceman

MINI RETAIL BY MODEL 2013 (2012).

100% 42.1% 6.9% 6.9% 33.4% (100%) (43.6%) (7.5%) (33.9%) (3.8%) 234,175 (216,538) 128,498 (131,569) 21,030 (22,699) 101,897 (102,271) 8,436 (11,311) 9,315 (9,202)

Total BMW Group sales: 1,963,798 (1,845,186) units.

MINI brand share: 305,030 (301,526) units

• r 15.5% (16.3%) of total sales.

14,687 (-) (-) 305,030 (301,526) 21,167 (24,474) 3.1% 4.8% 2.8% (3.1%) (8.1%)

BMW Group Investor Presentation, January 2014 Page 56

BMW GROUP RETAIL DEVELOPMENT 2003 UNTIL 2013.

in 1,000 units 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 BMW MINI Rolls-Royce

1,105 1,209 1,328 1,374 1,501 1,436 1,286 1,461 +9.4% +3.5% +9.2%

• 4.3%
• 10.4%

+13.6% 1,845 +14.2% +9.9% +10.6% 1,669 1,964 +6.4%

BMW Group Investor Presentation, January 2014 Page 57 MINI

BMW GROUP BRAND AND PRODUCT OVERVIEW.

4 Series

Sedan Wagon Hatch Coupe Convert. Roadster New Seg. SAV Plus Base Plus PlusPlus Base

7 Series 6 Series 6 Series

Plus Base

Luxury Compact Lower Medium Small

Plus Base

Upper Medium

Base Plus PlusPlus

Convert. Phantom Coupe 3 Series 3 Series Z4 X3, X4 4 Series MINI MINI MINI 1 Series 2 Series 2 Series X5, X6 5 Series 5 Series GT X1 Ghost MINI 6 Series GT Wraith

BMW Group Investor Presentation, January 2014 Page 58

ATTRACTIVE MODEL PORTFOLIO UNTIL 2016 DUE TO A HIGH RENEWAL RATE AND ADDITIONAL MODELS.

2011 2012 2013 2014 2015 2016

Cumulated Model Renewal Rate:

~ 75% of total expected annual sales volume will be renewed until 2016

Ø age of product portfolio (sales & mix adjusted) 3.5 2.0 1.5 0.5 2.5 1.0 3.0

BMW Group Investor Presentation, January 2014 Page 59

NEW PRODUCT 2013. BMW 3 SERIES GRAN TURISMO.

Launch 06/2013

BMW Group Investor Presentation, January 2014 Page 60

NEW PRODUCT 2013. BMW 4 SERIES COUPE.

Launch 10/2013

Page 60 Please click on the picture to get to additional videos.

BMW Group Investor Presentation, January 2014 Page 61

NEW PRODUCT 2013. BMW X5.

Launch 11/2013

Please click on the picture to get to additional videos.

BMW Group Investor Presentation, January 2014 Page 62

NEW PRODUCT 2014. BMW 4 SERIES CONVERTIBLE.

Launch 03/2014

Page 62 Please click on the picture to get to additional videos.

BMW Group Investor Presentation, January 2014 Page 63

NEW PRODUCT 2014. BMW 2 SERIES COUPE.

Launch 03/2014

Page 63 Please click on the picture to get to additional videos.

BMW Group Investor Presentation, January 2014 Page 64

FUTURE PROSPECTS. BMW CONCEPT ACTIVE TOURER.

BMW Group Investor Presentation, January 2014 Page 65

FUTURE PROSPECTS. BMW CONCEPT X4.

BMW Group Investor Presentation, January 2014 Page 66

NEW PRODUCT 2014. NEW MINI.

Launch 03/2014

Please click on the picture to get to additional videos.

BMW Group Investor Presentation, January 2014 Page 67 Please click on the picture to get to additional videos.

NEW PRODUCT 2013. ROLLS-ROYCE WRAITH.

Launch 09/2013

BMW Group Investor Presentation, January 2014 Page 68

THE BMW ActiveHybrid-FLEET.

BMW ActiveHybrid 3

(Launch 09/2012)

BMW ActiveHybrid 7

(Facelift, new hybrid system, launch 07/2012)

BMW ActiveHybrid 5

(Launch 03/2012)

BMW Group Investor Presentation, January 2014 Page 69

BMW ActiveHybrid 3 – HYBRID COMPONENTS.

BMW TwinPower Turbo six-cylinder inline engine. Synchronous electric motor (integrated in the transmission housing). Eight-speed automatic transmission. Power electronics. High-performance lithium-ion battery.

BMW Group Investor Presentation, January 2014 Page 70

CONTENT.

1 Corporate Strategy 3 Growth Markets 4 Automotive 5 Motorcycles 6 Financial Services 7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 2 BMW i

BMW Group Investor Presentation, January 2014 Page 71

BMW MOTORCYCLES PRODUCT OVERVIEW.

Price (€)

R1200 RT

20,000 10,000

R1200 GS Adventure F800 GT F 700 GS 2 Cyl. S1000 RR F800 R R1200 R K1300 S K1600 GT/GTL Maxi Scooter Tourer G650 GS / GS Sertao Maxi Scooter Electric Maxi Scooter Sport K 1300 R

ENDURO TOUR ROADSTER SPORT

URBAN MOBILTIY

R1200 GS MJ 2013 F800 GS 2 Cyl. HP4

BMW Group Investor Presentation, January 2014 Page 72 31.3 50.2 74.6 84.7 92.6 93.0 92.3 97.5 100.1 102.5 101.7 87.3 98.0 104.3 106.4 115.2 20 40 60 80 100 120 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

BMW MOTORCYCLES RETAIL SALES 1990 – 2013.

in 1,000 units

BMW Group Investor Presentation, January 2014 Page 73

MOST IMPORTANT MARKETS FOR BMW MOTORCYCLES IN 2012.

Germany United States Italy Brazil United Kingdom Other markets France Germany 19.1% United States 12.3% France 9.8% Italy 9.7% Brazil 6.4% United Kingdom 5.0% Spain 4.5% Other markets 33.2% Spain

BMW Group Investor Presentation, January 2014 Page 74

CONTENT.

5 Motorcycles 6 Financial Services 7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 1 Corporate Strategy 3 Growth Markets 4 Automotive 2 BMW i

BMW Group Investor Presentation, January 2014 Page 75

GLOBAL PRESENCE IN 53 COUNTRIES WITH 6,771 EMPLOYEES.

BMW Financial Services MINI Financial Services

Status: September 30, 2013

BMW Group Investor Presentation, January 2014 Page 76 345 387 422 452 515 605 685 743

• 292

365 1,214 1,790 1,561 1,314

• 500
• 250

250 500 750 1,000 1,250 1,500 1,750 2,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M-2013

PROFIT BEFORE TAX (PBT) FINANCIAL SERVICES.

in euro million

ADDITIONAL RISK PROVISIONS IN 2008.

Automotive Segment: EUR 911 million residual values Financial Services segment: EUR 1,057 million EUR 694 million residual values EUR 363 million credit losses

Total: EUR 1,968 million

1) 2) 3)

1) FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business. 2) FY-11 EBT includes a positive effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better than expected off-lease business. 3) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business.

BMW Group Investor Presentation, January 2014 Page 77 18.1%

• 7.3%

9.2% 26.1% 29.4% 21.2%

• 10%
• 5%

0% 5% 10% 15% 20% 25% 30% 35% 2007 2008 2009 2010 2011 2012

RETURN ON EQUITY (ROE) FINANCIAL SERVICES.

in %

1) 2)

1) FY-10 RoE includes a positive PBT effect of EUR 122 million from better than expected off-lease business (adjusted RoE: 23.5%). 2) FY-11 RoE includes a positive PBT effect of EUR 439 million from adjustment of residual value and credit risk provisions and a better than expected off-lease

business (adjusted RoE: 22.2%)

3) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business (adjusted RoE: 19.6%).

ADDITIONAL RISK PROVISIONS IN 2008.

Automotive Segment: EUR 911 million residual values Financial Services segment: EUR 1,057 million EUR 694 million residual values EUR 363 million credit losses

Total: EUR 1,968 million

3)

BMW Group Investor Presentation, January 2014 Page 78

13.6% 17.8% 17.8% 19.2% 19.5% 17.1% 17.2% 17.4% 20.9% 24.7% 24.1% 20.0% 20.7% 23.2% 20.9% 17.2% 18.3% 19.1% 22.5% 24.0% 25.2% 27.2% 27.6% 24.3% 24.1% 21.1% 19.7% 21.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M-2013

Financing Leasing

PENETRATION RATE RETAIL BUSINESS.

34.5% 35.0% 36.1% 38.3% 42.0% 41.1% 42.4% 48.5% 44.6% 49.0% 41.1% 48.2%

* The penetration rate dropped significantly due to the consolidation of BMW Group Financial Services China as of January 1st, 2011. *

40.4% 45.0%

BMW Group Investor Presentation, January 2014 Page 79

0.54% 0.46% 0.41% 0.37% 0.41% 0.46% 0.59% 0.84% 0.67% 0.49% 0.48% 0.39% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9M-2013

DEVELOPMENT OF CREDIT LOSS RATES.

BMW Group Investor Presentation, January 2014 Page 80 70 75 80 85 90 95 100 105 110 115 120 Jan 06 Apr 06 Jul 06 Oct 06 Jan 07 Apr 07 Jul 07 Oct 07 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13

RESIDUAL VALUE DEVELOPMENT IN THE USA.

Source: Manheim Used Vehicle Index, mix and mileage adjusted.

BMW brand used car index (through December 2013)

BMW Group Investor Presentation, January 2014 Page 81

STRATEGIC FUTURE DEVELOPMENT OF FINANCIAL SERVICES.

Expansion of BMW Bank E-Mobility New Sales & Service Channels Fleet Business

* BMW Leasing GmbH was merged into the BMW Bank GmbH

2011 since 2010 since 2009 2012 BaLea*

FR DE IT ES PT DE

BMW Group Investor Presentation, January 2014 Page 82

ALPHABET AMONGST TOP FLEET COMPANIES IN EUROPE AFTER ACQUISITION OF ING CAR LEASE.

New Alphabet : A truly European company

ING Car Lease Alphabet both

Number of Serviced Contracts

100,000 200,000 300,000 400,000 500,000 600,000 (old) Alphabet Former ING Car Lease Alphabet

BMW Group Investor Presentation, January 2014 Page 83

CONTENT.

7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 5 Motorcycles 6 Financial Services 1 Corporate Strategy 3 Growth Markets 4 Automotive 2 BMW i

BMW Group Investor Presentation, January 2014 Page 84

Moses Lake Spartanburg Shenyang Rayong Chennai Kulim Jakarta Rosslyn Santa Catarina (2014) Manaus Vehicle Plant Assembly Plant Engines / Components BMW Group Joint Venture Contract Production Cairo

Page 84

Regensburg Dingolfing Berlin Eisenach Leipzig Wackersdorf Landshut Munich Kaliningrad Born (2014) Steyr Graz Hams Hall Oxford Swindon Goodwood

BMW GROUP GLOBAL PRODUCTION NETWORK.

BMW Group Investor Presentation, January 2014 Page 85

AUTOMOBILE PRODUCTION BY PLANT IN 2012.

in 1,000 units

Dingolfing Regensburg Oxford Leipzig Munich Spartanburg Rosslyn Dadong1 Tiexi1 Graz2 Goodwood

Dingolfing, Germany Production of BMW 5, 6, 7 Series 332.7 Rosslyn, South Africa Production of BMW 3 Series 45.7 Spartanburg, USA Production of BMW X3, X5, X6 301.5 Goodwood, UK Production of Rolls-Royce 3.3 Regensburg, Germany Production of BMW 1, 3 Series, Z4 300.3 Dadong1, China Production of BMW 5 Series 108.9 Munich, Germany Production of BMW 3 Series 214.1 Tiexi1, China Production of BMW 3 Series, X1 41.1 Oxford, UK Production of MINI 207.8 Graz (Magna Steyr2), Austria MINI Countryman 103.7 Leipzig, Germany Production of BMW 1 Series, X1 164.3 Assembly plants 38.4

1 Joint venture 2 Contract production

Assembly plants

BMW Group Investor Presentation, January 2014 Page 86

Cairo, Egypt 3, 5 & 7 series, X1, X3 2,232 Kaliningrad, Russia 3,5 & 7 series, X1, X3, X5, X6 15,480 Jakarta, Indonesia 3 & 5 series, X1, X3 1,992 Kulim, Malaysia 3 & 5 series, X1, X3 5,448 Chennai, India 3, 5 & 7 series, X1, X3 6,768 Rayong, Thailand 3, 5 & 7 series, X1, X3 6,492

AUTOMOBILE PRODUCTION BY ASSEMBLY PLANT IN 2012.

Kaliningrad Kulim Chennai Rayong Cairo Jakarta

In units

BMW Group Investor Presentation, January 2014 Page 87

THE BMW GROUP’S CLEAN PRODUCTION PHILOSOPHY.

Certified environmental management systems (ISO 14001/EMAS) at all sites worldwide Targeted management of environmental performance:

• Monthly recording of consumption/emission figures at all sites
• Target: 45% reduction in emissions/resource usage from 2006-2020
• Average improvement in resource efficiency 2006 - 2011: 32%

Reducing water usage and process wastewater Saving energy and reducing CO2 emissions Reducing Solvent Emissions Avoiding or recycling waste

BMW Group Investor Presentation, January 2014 Page 88

CONTENT.

7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 5 Motorcycles 6 Financial Services 1 Corporate Strategy 3 Growth Markets 4 Automotive 2 BMW i

BMW Group Investor Presentation, January 2014 Page 89

„Sustainability throughout the value added chain is inseparable from our corporate self-image. That is why we choose to take responsibility. Because of our convictions, but also our self-interest, now and in the future.“

1997 2001 2007 2011 2008

CORPORATE SUSTAINABILITY HAS A LONG HISTORY AT BMW GROUP.

1973: First Environmental Officer in the Automotive Industry. 2000: Executive Board Resolution „Sustainability is the guiding principle of the BMW Group corporate strategy“. 2009: Establishment of a Sustainability Circle and Board; corporate sustainability is established as corporate target.

• Dr. Norbert Reithofer, CEO of BMW AG:

BMW Group Investor Presentation, January 2014 Page 90

CORPORATE SUSTAINABILITY ENCOMPASSES THE WHOLE VALUE CHAIN.

Key Issues Basic principles BMW Group Objective

The BMW Group is the most sustainable company in the automotive industry. Vision

Ecology Society Economy

Sustainable Mobility Concepts Product Responsibility Efficient Dynamics Environmental Protection Clean Production Responsibility for Employees Value Orientation in the Supply Chain Commitment to Society Shareholder Value Risk Management Corporate Governance & Compliance

• We regard sustainability as a lasting and positive contribution towards the economic success of the company. This is the basis
• f our ecological and social responsibility.
• We consider awareness of social responsibility an inseparable part of our corporate self-conception.

Sustainability management

Sustainability-based Decisions Environment Radar Communication Evaluation of the Value Chain

BMW Group Investor Presentation, January 2014 Page 91

THE ENTIRE BOARD OF MANAGEMENT IS COMMITTED TO SUSTAINABILITY.

BMW Group Investor Presentation, January 2014 Page 92

MOST IMPORTANT RATINGS / RANKINGS SHOW THAT BMW GROUP IS THE INDUSTRY LEADER IN SUSTAINABILITY.

• Dow Jones Sustainability Indexes/Dow Jones STOXX Sustainability Indexes: Industry leader since 2005, the only

automotive company continuously listed since 1999.

• FTSE4Good: listed in FTSE4Good Index.
• Carbon Disclosure Project: Industry leader 2011 and 2012, No. 3 across sectors in 2012.
• Oekom: Corporate Responsibility Rating oekom 2012, Status Prime.
• Sustainalytics: 1st place in "DAX 30 Nachhaltigkeitsrating” in 2011.
• ÖKOTREND: certificate for outstanding corporate responsibility (most points in the automotive industry).
• Corporate Knights: BMW Group ranked Number 16 among the 4,000 companies surveyed with the highest score in the

automotive industry.

BMW Group Investor Presentation, January 2014 Page 93

CONTENT.

7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 5 Motorcycles 6 Financial Services 1 Corporate Strategy 3 Growth Markets 4 Automotive 2 BMW i

BMW Group Investor Presentation, January 2014 Page 94

EFFICIENTDYNAMICS – OUR WAY TO REDUCE CO2.

Page 94

BMW Group Investor Presentation, January 2014 Page 95

Today Tomorrow Lower CO2 emissions Zero emissions

Improved combustion engines Aerodynamics Lightweight construction Auto Start-Stop function Brake energy regeneration

Plug-in hybrid Hybrid Electro-mobility

Fuel cell technology

FUTURE CO2 TARGETS CAN ONLY BE ACHIEVED WITH THE HELP OF NEW DRIVETRAIN TECHNOLOGIES.

BMW Group Investor Presentation, January 2014 Page 96

High Precision Injection. Common Rail High Pressure Injection. Active aerodynamics with cooling air flap system. Tires with reduced rolling resistance. Break energy regeneration. Electric water pump. Decoupled A/C compressor. Controlled fuel pump. Controlled

• il pump.

Electric steering. Gear shift indicator. Auto Start Stop function. ECO Mode.

TAILOR-MADE ENERGY MANAGEMENT PACKAGES.

Aerowheels. Air Curtain.

BMW Group Investor Presentation, January 2014 Page 97

• ECO PRO mode
• Six-speed manual transmission
• Optimum Shift Indicator
• Auto Start-Stop function
• Intelligent lightweight design
• High-efficiency petrol and diesel engines
• Eight-speed automatic transmission
• Brake Energy Regeneration
• Disengageable air conditioning compressor
• Needs-based operation of ancillary components
• Air Curtain for improved air flow

around the front wheels

EFFICIENTDYNAMICS IN THE NEW BMW 3 SERIES.

Flow-optimised underbody structure Cd = 0.26

BMW Group Investor Presentation, January 2014 Page 98

EFFICIENTDYNAMICS IN THE NEW BMW 3 SERIES.

BMW Group Investor Presentation, January 2014 Page 99

+

VARIABILITY DIRECT INJECTION TURBOCHARGING VARIABILITY DIRECT INJECTION TURBOCHARGING

VALVETRONIC HIGH PRECISION INJECTION SINGLE TURBO TWIN-SCROLL TURBO TWIN TURBO VARIABLE TURBOCHARGER GEOMETRY SINGLE TURBO TWIN TURBO TRI TURBO 3RD GENERATION COMMON RAIL TECHNOLOGY

GASOLINE DIESEL

BMW TWIN POWER TURBO TECHNOLOGY.

+ + +

TWIN POWER TURBO

+

+

BMW Group Investor Presentation, January 2014 Page 100

THE BMW GROUP 120g FLEET.

In autumn 2013 already 39 BMW Group models come with a maximum 120 g CO2/km.

Fuel consumption figures: liters/100 km in EU test cycle, CO2 figures: g/km. * EfficientDynamics Edition.

BMW 114d 5-Door 70 kW / 95 hp 4.1 l / 109 g BMW 118d 5-Door 105 kW / 143 hp 4.1 l / 109 g BMW 120d 5-Door 135 kW / 184 hp 4.2 l / 110 g BMW 114d 3-Door 70 kW / 95 hp 4.1 l / 109 g BMW 116d 3-Door 85 kW / 116 hp 4.1 l / 109 g BMW 116d 5-Door 85 kW / 116 hp 4.1 l / 109 g BMW 116d 5-Door * 85 kW / 116 hp 3.8 l / 99 g BMW 116d 3-Door * 85 kW / 116 hp 3.8 l / 99 g BMW 118d Coupé 105 kW / 143 hp 4.5 l / 118 g BMW 316d 85 kW / 116 hp 4.3 l / 114 g BMW 318d 105 kW / 143 hp 4.3 l / 114 g BMW 320d 135 kW / 184 hp 4.4 l / 117 g BMW 118d 3-Door 105 kW / 143 hp 4.1 l / 109 g BMW 120d 3-Door 135 kW / 184 hp 4.2 l / 110 g BMW 320d * 120 kW / 163 hp 4.1 l / 109 g BMW 316d Touring 85 kW / 116 hp 4.5 l / 119 g BMW 318d Touring 105 kW / 143 hp 4.5 l / 119 g MINI One MINIMALIST 55 kW / 75 hp. 72 kW / 98 hp 5.1 l / 119 g MINI Cooper SD 105 kW / 143 hp 4.3 l / 114 g MINI Cooper D Convertible 82 kW / 112 hp 4.0 l / 105 g MINI Cooper SD Convertible 105 kW / 143 hp 4.5 l / 118 g MINI One D Clubman 66 kW / 90 hp 3.9 l / 103 g MINI One D 66 kW / 90 hp 3.8 l / 99 g MINI Cooper D 82 kW / 112 hp 3.8 l / 99 g MINI Cooper D Clubman 82 kW / 112 hp 3.9 l / 103 g MINI Cooper D Countryman 82 kW / 112 hp 4.4 l / 115 g MINI Cooper SD Roadster 105 kW / 143 hp 4.5 l / 118 g MINI Cooper SD Coupé 105 kW / 143 hp 4.3 l / 114 g MINI Cooper D Paceman 82 kW / 112 hp 4.4 l / 115 g MINI Cooper SD Clubman 105 kW / 143 hp 4.4 l / 115 g MINI One D Countryman 66 kW / 90 hp 4.4 l / 115 g BMW 320d Touring* 120 kW / 163 hp 4.3 l / 112 g BMW X1 sDrive20d * 120 kW / 163 hp 4.5 l / 119 g BMW 520d 135 kW / 184 hp 4.5 l / 119 g BMW 318d GT 105 kW / 143 hp 4.5 l / 119 g BMW 518d 105 kW / 143 hp 4.5 l / 119 g BMW i3 125 kW / 170 hp 0 l / 0g BMW i3 Rex 125 kW / 170 hp 0,6 l / 13g

BMW Group Investor Presentation, January 2014 Page 101

50 PER CENT REDUCTION IN CO2 EMISSIONS 1995-2020

BMW GROUP FLEET 1995 > 200 CO2 g/km BMW GROUP FLEET 2012 138 CO2 g/km 2020 TARGET FOR TOTAL EU FLEET 95 CO2 g/km*

*Value for the BMW Group fleet  100-110 CO2 g/km

50 PER CENT REDUCTION IN CO2 EMISSIONS 1995-2020.

BMW Group Investor Presentation, January 2014 Page 102

THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY

• SCALABILITY OF BASIC DESIGN OF ENGINE FAMILY

ALLOWS A BROADER APPLICATION ACROSS VEHICLE PROJECTS AND TECHNOLOGIES.

New Engine Family Vehicles Technologies 

BMW Group Investor Presentation, January 2014 Page 103

Cylinders (inline)

• 3
• 4
• 6

Gasoline >60 % Diesel >60 % 30-40 %

Common parts shared within gasoline or diesel engines is approx. 60%. Between the gasoline and diesel engines there is a 40% sharing.

THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY– HIGH LEVELS OF COMMONALITY BETWEEN AND WITHIN DIESEL AND GASOLINE ENGINES.

BMW Group Investor Presentation, January 2014 Page 104

Combustion Chamber:

• Optimal size, roundabout 500 ccm
• Central injector
• Minimized friction

Different aspects for Gasoline/Diesel:

• Cylinder head elements
• Combustion process

Approximate range of torque and power per cylinder:

• Gasoline: 60-100 Nm, 30-50 kW
• Diesel:

75-100 Nm, 20-40 kW

THE NEW BMW EFFICIENTDYNAMICS ENGINE FAMILY – MODULAR STRATEGY.

BMW Group Investor Presentation, January 2014 Page 105

NEXT STEPS – PREDICTIVE ENERGY MANAGEMENT.

Predictive Energy Management

ACC Navigation Camera DSC PDC DME Light/Rain Sensor

Optimized vehicle conditioning

Brake Energy Regeneration Heat- management Green Routing / Driver assistence Aerodynamics Air conditioning Auto Start Stop Function

Prediction of upcoming situations Merging all available sensor information

BMW Group Investor Presentation, January 2014 Page 106

CONTENT.

7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 5 Motorcycles 6 Financial Services 1 Corporate Strategy 3 Growth Markets 4 Automotive 2 BMW i

BMW Group Investor Presentation, January 2014 Page 107

VALUE ORIENTATION.

Automotive: Return on Capital Employed Vehicle projects: Model return based on DCF Finance & lease portfolio: Cash flows Motorcycles: Return on Capital Employed Financial Services: Return on Equity Vehicle projects: Model return based on DCF

BMW Group Investor Presentation, January 2014 Page 108

EFFECTS ON AUTOMOTIVE SEGMENT’S EARNINGS IN 2012.

EBIT 2011 EBIT margin 11.8% EBIT 2012 10.9% +1,026

Net effects FX/ Raw material

+106

Other

• perating

income & expenses

+437

Volume/ Mix/Market

+131

• 653

Depreciation

• 85

HR

in euro million

Residual values

• 815

7,477 7,624

Net effects Number ONE

BMW Group Investor Presentation, January 2014 Page 109

9.0 8.8 8.1 7.9 7.8 6.7 6.4 6.4 1.4

• 0.6

8.0 11.8 10.9 9.9 9.6 9.0

• 2
• 1

1 2 3 4 5 6 7 8 9 10 11 12 13 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1- 2013 Q2- 2013 Q3- 2013

EBIT MARGIN DEVELOPMENT AUTOMOTIVE SEGMENT. TARGET PROFITABILITY OF 8 – 10%.

in %

BMW Group Investor Presentation, January 2014 Page 110

DIVIDEND DEVELOPMENT AND PAYOUT RATIO. TARGET PAYOUT RATIO OF 30 – 40%.

350 351 392 419 419 458 694 197 197 852 1,508 1,640 18.8% 17.4% 20.1% 18.7% 18.7% 15.9% 22.1% 59.7% 93.8% 26.3% 30.7% 32.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 500 1,000 1,500 2,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dividend per share (in €) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ordinary share 0.52 0.52 0.58 0.62 0.64 0.70 1.06 0.30 0.30 1.30 2.30 2.50 Preferred share 0.54 0.54 0.60 0.64 0.66 0.72 1.08 0.32 0.32 1.32 2.32 2.52 Total payout (in € million, LHS) Payout ratio* (RHS) *Payout ratio based on Group net income before minority interest.

BMW Group Investor Presentation, January 2014 Page 111 1 2 3 4 5 6 1 2 3 4 5 6

NET INTEREST-BEARING ASSETS AUTOMOTIVE SEGMENT.

+ 7,484 + 2,205 + 4,784

• 2,224

13,327 +1,078

31.12.2012 30.09.2013

Euro million Euro million

Cash and cash equivalents Marketable securities Financial liabilities Net interest- bearing assets Internal net financial receivables from Financial Services Segment Internal net financial receivables from Other Entities Segment

+ 6,741 + 2,714 + 3,889

• 2,305

12,446 +1,407

Cash and cash equivalents Marketable securities Financial liabilities Net interest- bearing assets Internal net financial receivables from Financial Services Segment Internal net financial receivables from Other Entities Segment

BMW Group Investor Presentation, January 2014 Page 112 6,246 4,471 4,921 8,150 8,110 9,167 2,147

• 81
• 754

2,608 3,166 3,809 197 1,456 4,471 2,385 3,637

• 2,000

2,000 4,000 6,000 8,000 10,000 2007 2008 2009 2010 2011* 2012 Cash inflow from operating activities Free Cash Flow including net investments in securities Free Cash Flow before net investments in securities

OPERATING CASH FLOW AND FREE CASH FLOW AUTOMOTIVE SEGMENT.

in euro million

* 2011 restated: the reclassification from operating activities to financing activities resulted in an increase in the operating cash flow.

BMW Group Investor Presentation, January 2014 Page 113 2,597 2,777 2,934 2,980 2,384 2,312 2,720 4,151 1,396 1,536 1,333 1,224 1,087 951 972 1,089 8.6% 8.8% 7.6% 7.9% 6.8% 5.4% 5.4% 6.8% 5.2% 5.4% 4.8% 5.4% 4.6% 3.7% 3.8% 5.2% 0% 2% 4% 6% 8% 10% 12% 1,000 2,000 3,000 4,000 5,000 6,000 2005 2006 2007 2008 2009 2010 2011 2012 Capital expenditure in property, plant, equipment and intangible assets Capitalized development costs Capital expenditure ratio* Capex into PPE ratio*

CAPITAL EXPENDITURE.

in euro million

3,993 4,267 4,313 4,204 3,471 3,263 3,692 5,240

* based on Group revenues

BMW Group Investor Presentation, January 2014 Page 114

RESEARCH & DEVELOPMENT COSTS.

5.3% 5.2% 5.2% 5.3% 5.1% 5.1% 5.2% 5.2% 6.7% 6.5% 5.6% 5.4% 4.8% 4.6% 4.9% 5.1% 44.8% 47.9% 42.4% 42.8% 44.4% 34.3% 28.8% 27.6% 0% 10% 20% 30% 40% 50% 1% 2% 3% 4% 5% 6% 7% 8% 2005 2006 2007 2008 2009 2010 2011 2012 R&D Costs (IFRS) / Group revenues in % R&D Costs (HGB ) / Group revenues in % Capitalisation Ratio

in euro million

2005 2006 2007 2008 2009 2010 2011 2012 Research & Development Costs (IFRS) 2,464 2,544 2,920 2,825 2,587 3,082 3,610 3,993 Research & Development Costs (HGB) 3,115 3,208 3,144 2,864 2,448 2,773 3,373 3,952

BMW Group Investor Presentation, January 2014 Page 115

CONTENT.

7 Production Network 8 Sustainability 9 EfficientDynamics 10 Financials 11 Funding 5 Motorcycles 6 Financial Services 1 Corporate Strategy 3 Growth Markets 4 Automotive 2 BMW i

BMW Group Investor Presentation, January 2014 Page 116

Ensure sustainable access to international financial markets. Explore and maintain presence and competence in all strategic important capital markets worldwide.

GLOBAL FUNDING OBJECTIVES TO ENSURE BMW GROUP’S SOLVENCY.

The different objectives are interdependent and of equal importance.

Value Orientation Financial Flexibility Financial Independence

Ensure independence from individual lenders, banks and financial Instruments. Diversification of funding sources, investors and products. Create value by optimizing financing costs on overall Group basis. Credit spread management for each financial instrument. Ensure long-term, strategic perspective (instrument mix).

BMW Group Investor Presentation, January 2014 Page 117

CORPORATE FINANCE CAPABILITIES.

Categories of available instruments over the spectrum of maturities: CP ABCP <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ (EMTN) PPs ABS - Term Bonds Retail Institutional

Bank Loans

CP Attractive and flexible short- term funding. Deposits Diversification of funding instruments and investors (EMTN) Private Placements Attractive funding source. Effective management of spreads provides support for the short end of the BMW Credit Curve. ABS ABS supports investor diversification. Bank Loans Local source of funding, mainly where access to capital markets is limited. Retail Diversification of investor base. Limited potential of

• pportunistic access.

Institutional Highest liquidity and depth of the market, i.e. highest funding potential. Typical for Benchmark bonds. Creation of a BMW Credit Spread Curve.

Customer Deposits / Brokered CDs

BMW Group Investor Presentation, January 2014 Page 118

ISSUING PROGRAMS.

EUR 35bn EMTN-Program

EUR 5bn ECP-Program EUR 2bn FCP-Program USD 7bn USCP-Program BMW AG BMW Australia Finance Limited BMW Finance N.V. BMW Japan Finance Corp. BMW US Capital, LLC BMW AG BMW Finance N.V. BMW Coordination Center V.O.F. BMW Malta Finance Ltd BMW Finance N.V. BMW US Capital, LLC EMTN Program as main mid- to long-term refinancing program with commercial paper programs to cover short-term liquidity needs. All issuing programs carry an unconditional guarantee from BMW AG.

BMW Group Investor Presentation, January 2014 Page 119

BROAD INVESTOR BASE.

Funding is done worldwide to optimize refinancing costs and to establish a broad investor base.

USA USD Commercial Paper USD US PP USD ABS Euro Capital Markets EUR Commercial Paper French Commercial Paper EUR (EMTN) PPs EUR Benchmark Bonds USD Eurodollar AUD Euroaussie NOK (EMTN) Bonds SEK (EMTN) Bonds EUR ABS Great Britain GBP Commercial Paper GBP (EMTN) PPs GBP Bonds GBP ABS Switzerland CHF (EMTN) PPs CHF Bonds CHF ABS Japan JPY (EMTN) PPs JPY Euro-Yen JPY ABS Offshore US USD (EMTN) PPs Australia AUD (EMTN) PP AUD ABS Hong Kong RMB (EMTN) PP HKD (EMTN) PP South Africa ZAR ABS ZAR Domestic Bonds Canada CAD ABS CAD (EMTN) PPs CAD Domestic Bonds Mexico MXN (EMTN) PP India INR Domestic Bond South Korea KRW Domestic Bond KRW ABS

BMW Group Investor Presentation, January 2014 Page 120 3.5 2.7 3.7 7.5 9.3 10.8 8.4 7.8 8.0 8.0 7.1 7.4 7.1 7.5 8.5 7.8 9.3 8.1 8.5 8.4 7.9 8.1 7.7 1.9 2.1 1.2 0.7 0.8 1.1 1.5 1.6 1.7 1.7 1.6 1.6 1.5 1.7 2.4 2.3 2.7 2.7 2.6 2.7 3.0 2.9 3.0 2 4 6 8 10 12 14

Q1-08 Q2-08 Q3-08 FY-08 Q1-09 Q2-09 Q3-09 FY-09 Q1-10 Q2-10 Q3-10 FY-10 Q1-11 Q2-11 Q3-11 FY-11 Q1-12 Q2-12 Q3-12 FY-12 Q1-13 Q2-13 Q3-13

Cash & cash equivalents Marketable securities & investment funds

DEVELOPMENT OF BMW GROUP LIQUIDITY.

After significantly increasing liquidity during the economic and financial crisis, the BMW Group continues to maintain a solid liquidity position.

in euro billion

5.4 4.8 4.9 8.2 10.1 11.9 9.9 9.4 9.7 9.7 8.7 9.0 9.1 8.6 10.9 10.1 12.0 10.8 11.0 11.0 11.0 11.0 10.7

BMW Group Investor Presentation, January 2014 Page 121 100 200 300 400 500 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14

DEVELOPMENT OF 5-YEAR CDS.

Source: Reuters Credit Views as of 01/10/2014

bps

BMW Group Investor Presentation, January 2014 Page 122

BOND AND PRIVATE PLACEMENT MATURITIES.

in euro million

Maturities based on nominal values excluding derivatives.

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Issuance Maturities

BMW Group Investor Presentation, January 2014 Page 123

FINANCIAL DEBT AS OF SEPTEMBER 30, 2013.

BMW Group maintained a well-diversified debt structure. The average maturity of financial liabilities is approximately 2.0 years.

*Adjusted, excluding currency and interest rate derivatives.

Bank loans Commercial Paper ABS Others 1% Customer deposits Bonds / PPs/ SSDs EUR 68.0 bn* 15% 7% 12% 7% ≤1 year

57 %

(56%**)

43 %

(44%**)

Debt Maturity > 1 year 48%

** comparative figures as of 31 December 2012

Brokered CDs 6% 4% Structured finance

BMW Group Investor Presentation, January 2014 Page 124

FUNDING ACTIVITY IN 2013 AND 2014.

ABS

• Japanese Loan Conduit, March 2013, JPY 30bn
• Swiss Public Lease Deal, May 2013, CHF 300mn
• German Public Loan Deal, June 2013, EUR 800mn
• Canadian Loan Conduit, September 2013, CAD 500mn
• US Public Loan Deal, November 2014, USD 1.0bn
• Australian Loan Conduit, November 2013, AUD 500mn
• Korean Public Loan & Lease Deal, November 2013, USD 250mn
• South African Loan Conduit, December 2013, ZAR 2.0bn

Bonds

• USD 500mn bond, 4 year term, settlement 5 April 2013 (1.375% coupon)
• EUR 1bn benchmark, 4.25 year term, settlement 18 April 2013 (1.0% coupon)
• CAD 450mn dual tranche benchmark bond, settlement 23 May 2013:
• CAD200mn, 1.5 year term (CDOR +23bps coupon)
• CAD250mn, 5 year term (2.33% coupon)
• EUR 1.25bn dual tranche benchmark bond, settlement 4 September 2013:
• EUR 500mn, 3 year term (3M Euribor +22bp coupon)
• EUR 750mn, 7 year term (2% coupon)
• GBP 300mn bond, 4 year term, settlement 20 November 2013 (1.75% coupon)
• EUR 1.5bn dual tranche benchmark bond, settlement 17 January 2014:
• EUR 750mn, 5.5 year term (1.625% coupon)
• EUR 750mn, 10 year term (2.625% coupon)

Private Placements

• Issuance 2012: EUR 2.5bn
• Issuance 2013: EUR 3.3bn
• Constant issuance in different currencies (EUR, JPY, AUD, SEK, USD, CHF, HKD, CNY)

Commercial Paper

• EUR 6.3bn outstanding as of December 31, 2013

Schuldschein

• Issuance 2012: EUR 728mn
• Issuance 2013: EUR 587mn

BMW Group Investor Presentation, January 2014 Page 125

BMW GROUP INVESTOR RELATIONS – CONTACTS.

Torsten Schüssler Head of Investor Relations

+49-89-382-25387 torsten.schuessler@bmw.de

Andreas Stöffler Equity IR

+49-89-382-17944 andreas.stoeffler@bmw.de

Carina Wollmann Equity & SRI IR

+49-89-382-21378 carina.wollmann@bmw.de

Bernd Daser Debt & Equity IR

+49-89-382-31684 bernd.daser@bmw.de

Helge Jorch Equity & SRI IR

+49-89-382-24272 helge.jorch@bmw.de

Ziye Zhou Debt & Equity IR

+49-89-382-16190 ziye.zhou@bmw.de