BMW Group Investor Factbook, February 2019 Page 3 CULTURE We Create the Future: We Combine Operational Excellence and Fresh Thinking

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BMW Group Investor Factbook, February 2019 Page 3 CULTURE We Create the Future: We Combine Operational Excellence and Fresh Thinking BMWBMW GROUP GROUP INVESTOR PRESENTATION INVESTOR FACTBOOK February 2019 CONTENT. 1 STRATEGY NUMBER ONE NEXT 8 FINANCIAL SERVICES 2 E-MOBILITY 9 MARKETS 3 AUTONOMOUS DRIVING 10 SUSTAINABILITY 4 MOBILITY SERVICES 11 BMW SHARES 5 GROUP FINANCIALS 12 DEBT & RATINGS 6 AUTOMOTIVE 13 CONTACT & CALENDAR 7 MOTORCYCLES 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, February 2019 Page 3 CULTURE We create the future: We combine operational excellence and fresh thinking. RESPONSIBILITY APPRECIATION TRANSPARENCY TRUST OPENNESS BMW Group Investor Factbook, February 2019 Page 4 ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. AUTONOMOUS CONNECTED ELECTRIFIED SHARED / SERVICES BMW Group Investor Factbook, February 2019 Page 5 CONTENT. 1 STRATEGY NUMBER ONE NEXT 8 FINANCIAL SERVICES 2 E-MOBILITY 9 MARKETS 3 AUTONOMOUS DRIVING 10 SUSTAINABILITY 4 MOBILITY SERVICES 11 BMW SHARES 5 GROUP FINANCIALS 12 DEBT & RATINGS 6 AUTOMOTIVE 13 CONTACT & CALENDAR 7 MOTORCYCLES 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 Electrified Visionary Performance Champions Efficiency Mobility Champions The interplay of BMW M and BMW i enhances competitive differentiation (representation of the scope of the BMW brand). BMW Group Investor Factbook, February 2019 Page 7 INTELLIGENT DRIVE TRAIN MIX TO MEET CUSTOMER EXPECTATIONS AND REGULATORY REQUIREMENTS. BEV* / Plug-in Hybrid Fuel cell Combustion engine BMW Group Investor Factbook, February 2019 * BEV = Battery Electric Vehicle Page 8 BMW GROUP’S ELECTRIFICATION PATHWAY. BMW iNext Roll-out BMW i Performance Upgrade BMW i3 BMW i Vision Dynamics/ LCI BMW i3, new BMW i3s BMW i4 MINI Electric (PHEV) MINI BEV BMW iX3 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, February 2019 Plug-in Hybrid Vehicles (PHEV) Page 9 Life Cycle Impulse (LCI) OUR FUTURE IS ELECTRIC. AMBITIOUS TARGETS FOR SALES OF ELECTRIFIED VEHICLES. 500,000 BY THE END OF 2019 142,600 ON THE ROAD 2018 103,000 2017 62,000 2016 32,000 ELECTRIFIED 2015 17,800 YTD-01/2019 2014 VEHICLES 311 7,234 ELECTRIFIED 2013 VEHICLES SOLD BMW Group Investor Factbook, February 2019 Electrified vehicles = Battery electric vehicles & Plug-in Hybrid vehicles Page 10 KEY FACTS ABOUT BMW GROUP‘S ACHIEVEMENTS AND GOALS IN E-MOBILITY. 15-25% #1 In 2025 we expect 15 - 25 % of BMW BMW Group BEV + PHEV combined registrations in Group annual global sales to be BEV / 2017 show BMW’s excellent market position Globally: PHEV. (based on 2016 sales, 20 % would Globally: Position #1 in the Premium market equal ~ 500,000 vehicles a year). Europe: Position #1 in the total market ca. 200.000 Germany: Position #1 in the total market Electrified BMW vehicles were on the roads by the end of 2017 Until 2025: Portfolio will consist of 25 electrified > 140.000 models (12 fully electrified) In 2018 we expect to sell 140.000 BMW Group BEV+PHEV vehicles, 2021: BMW iNEXT after 100.000 in 2017. 2020: Battery-powered X3 ca. 130.000 2019: battery-powered Mini ChargeNOW stations worldwide 2018: BMW i8 Roadstar Today: BMW Group already provides broadest 3 Times portfolio of erlectrified verhicles The share of electrified vehicles in BMW #1 Group sales globally and in Europe is BMWi is the best selling PHEV brand almost 3 times higher than the average of worldwide in 2017. all car brands. BMW Group Investor Factbook, February 2019 Page 11 OUR CLEAR ROADMAP: 25 ELECTRIFIED MODELS BY 2025, INCLUDING 12 FULLY ELECTRIC CARS. Fully electric BMW i Vision Dynamics/ BMW i4 BMW iX3** BMW i3 BMW i3 BMW i3s BMW i3/i3s MINI BEV** BMW iNEXT 60 Ah / 22 kWh 94 Ah / 33 kWh 94 Ah / 33 kWh 120Ah / 42 kWh 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 BMW i8 BMW 530Le China* BMW 225xe BMW X1 xDrive25Le BMW i8 Roadster iPerformance iPerformance (China) BMW 530Le BMW X5xDrive 45e BMW X5 BMW 330e BMW 530e iPerformance (China) xDrive40e iPerformance iPerformance iPerformance BMW 330e Schematic illustration of future launch dates * Not in series production any more Plug-in hybrid BMW 740e MINI Cooper S E ** MINI Battery Electric Vehicle & BMW iX3 are Concept Cars iPerformance Countryman ALL4 Page 12 BMW Group Investor Factbook, February 2019 BMW i8 ROADSTER. BMW i8 COUPÉ. BMW Group Investor Factbook, February 2019 Page 13 MINI ELECTRIC CONCEPT. MINI COUNTRYMAN PLUG-IN HYBRID. BMW Group Investor Factbook, February 2019 Page 14 THE BMW i VISION DYNAMICS WILL BE BUILT AS i4 IN MUNICH. A NEW FORM OF ELECTRIFYING DRIVING PLEASURE. BMW Group Investor Factbook, February 2019 Page 15 THE BMW CONCEPT iX3. ELECTRIC MOBILITY ARRIVES AT THE CORE OF BMW. BMW Group Investor Factbook, February 2019 Page 16 BMW iNEXT AS SPEARHEAD OF INNOVATION. Connectivity purpose-built lightweight design Interior of the future Autonomous driving BMW iNEXT new sportiness electrification Highly Artificial automated intelligence driving sustainability BMW Group Investor Factbook, February 2019 Page 17 THE BMW VISION iNEXT. FUTURE FOCUSED. iNEXT– THE BUILDING BLOCKS FOR THE FUTURE. BMW Group Investor Factbook, February 2019 Page 18 BMW i. FROM “BORN ELECTRIC” TO “ONE PLATFORM SERVES ALL”. FLEXIBLE VEHICLE ARCHITECTURE TO ENSURE QUICK RESPONSE TO DEMAND. 2013 FROM “Born electric” 2021 ON One platform fits all powertrain derivatives… Combustion engine Plug-In-Hybrid Pure electric BMW Group Investor Factbook, February 2019 Schematic illustration Page 19 THIS ALLOWS US TO SET UP OUR PLANTS FLEXIBLY AND TO AVOID A SEPARATION BETWEEN COMBUSTION AND ELECTRIC POWERTRAINS. Before: In the future / Onwards: Dedicated plants per powertrain type Enablement of the plants for all types of powertrains Only Combustion Only Combustion Combustion Engine Combustion Engine Combustion Engine Engine Engine Only Electric & Electric & Electric & Electric Flexibility and utilization Flexibility and utilization High investment costs Flowing technological transition possible Strong dependence on the market development Exchange Flexibility is guaranteed Division into "old world" and "new world Sustainable future-oriented jobs BMW Group Investor Factbook, February 2019 Page 20 BMW IS INVOLVED IN THE ENTIRE VALUE CHAIN CHARGING. Car Charging Service B2B Service IT-Plattform Public Infrastructure Energy Services Aggregation of CPO‘s and MSP‘s Managed Energy-Assets. Referrer models Planned DC HPC > 150 kW HUBJECT BMW (2014-2017) eRoaming IT-Plattform DC< 100 kW / Connection of MSP and CPO AC 22kW AC < 22 kW Energy Services in general: CPO – Charge Point Operator Today MSP – Mobility Service Provider Market preparation Pre-check Pre-check: BMW 360° Electric and Home Charging Solutions Connected Drive Digital Charging Service BMW Group Investor Factbook, February 2019 Page 21 WHAT WILL DRIVE THE ACCEPTANCE AND THE PROFITABILITY OF E-MOBILITY GOING FORWARD… ACCEPTANCE Regulation favors E-Mobility with PROFITABILITY OF OF EVS purchasing or tax incentives or non cash benefits EVS Utilization of the pricing + like parking, commuter lanes,.. + potential of BEV/PHEVs Optimization of the Charging Infrastructure Increase in volume/sales due to Cost Reduction due to technological Improvement in Production BMW i /iPerformance Rollout with 25 advancement, supplier consolidation and Smart and Efficient, Efficiency due to flexible electrified models by 2025 manufacturing efficiency Increase of charging points architecture and less complexity Driving Range Extension with new storage Decrease in Battery topologies and motor configurations. An improved Costs due to new Material Costs Reduction drive range would lead to higher usability and easier innovations and scalability due to higher supply and higher adoption. volume Time Outlook Time Outlook BMW Group Investor Factbook, February 2019 Page 22 CONTENT. 1 STRATEGY NUMBER ONE NEXT 8 FINANCIAL SERVICES 2 E-MOBILITY 9 MARKETS 3 AUTONOMOUS DRIVING 10 SUSTAINABILITY 4 MOBILITY SERVICES 11 BMW SHARES 5 GROUP FINANCIALS 12 DEBT & RATINGS 6 AUTOMOTIVE 13 CONTACT & CALENDAR 7 MOTORCYCLES AUTOMATED DRIVING. CHANGING FRAMEWORK LEADS TO NEW DEFINITION OF FUTURE MOBILITY. BMW Group Investor Factbook, February 2019 Page 24 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, February 2019 Page 25 THE NEW BMW 5 SERIES DRIVER ASSISTANCE SYSTEMS PROVIDE COMFORT AND SAFETY AT THE HIGHEST LEVEL. Crossing traffic Lateral parking aid Distance information Top View Remote warning rear / front Night Vision Lane departure warning Lane keeping assistant with active side collision protection Active cruise control with Stop&Go function Rear collision prevention Crossroad Assist Wrong Way Assist Lane change warning Speed Limit Assist 3D View Approach control warning with braking function Top View Steering and lane control assistant Parking assistant Speed limit and No Pass Active Park Distance Control information BMW Selective Beam Panorama View Remote Control Parking Speed Limit Device BMW Group Investor Factbook, February 2019 Page 26 AUTOMATED DRIVING AT THE BMW GROUP BMW Group Investor Factbook, February 2019 Page 27 THE DEVELOPMENT OF TODAY’S ASSISTED FUNCTIONS TO FULL AUTOMATION EQUALS A TECHNOLOGICAL
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