THE BMW SUCCESS STORY. MAX METCALF. GOVERNMENT & COMMUNITY RELATIONS MANAGER, BMW MANUFACTURING CO.

March 6, 2018 WELCOME TO OUR WORLD OF PREMIUM BRANDS.

THE BMW GROUP CELEBRATED ITS CENTENARY IN 2016. 100 YEARS OF EXPERIENCE WITH OPERATIONS IN OVER 140 COUNTRIES. from 1916 2016 Concept Vehicles BMW GROUP. EUROPE, CHINA AND USA – THE PILLARS OF OUR PRODUCTION NETWORK. Hams Hall Berlin Leipzig Oxford Dingolfing Munich Swindon Eisenach Regensburg Goodwood Landshut Wackersdorf

Dadong

Kaliningrad Tiexi New Engine Plant Moses Lake Born Steyr Graz Spartanburg Cairo

Chennai Rayong Kulim Manaus Jakarta

Production plant Rosslyn Assembly plant Araquari Joint venture Contract manufacturing BMW GROUP 2017 SALES REACHED ALL-TIME HIGH. BMW X FAMILY MADE A MAJOR CONTRIBUTION.

2,463,526 + 4.1 % BMW X 706,741 units +9.6% 2,088,283 + 4.2 %

371,881 + 3.2 %

3,362 -16.2 %

164,153 + 13.2 % 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). THE LARGEST MODEL OFFENSIVE IN THE COMPANY’S HISTORY. 40 AUTOMOBILE LAUNCHES IN 2017 AND WE WILL KEEP THE MOMENTUM ROLLING IN 2018.

NEW VEHICLES IN ALL SEGMENTS, SMALL/COMPACT TO LUXURY.

BMW i8 BMW BMW X7 BMW Z4 BMW K1600 BMW M8 BMW X4 … Roadster 8 Series Grand America AUTONOMOUS CONNECTED

ELECTRIFIED SHARED / SERVICES

INNOVATION. OUR CLEAR ROADMAP: 25 ELECTRIFIED MODELS BY 2025, INCLUDING 12 FULLY ELECTRIC CARS. Fully electric

BMW X3 BEV

BMW i3 BMW i3 BMW i3s BEV BMW iNext 60 Ah / 22 kWh 94 Ah / 33 kWh 94 Ah / 33.2 kWh 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

BMW i8 BMW 530Le BMW 225xe BMW X1 xDrive25Le BMW i8 Roadster iPerformance iPerformance

BMW X5 BMW 330e BMW 5 Series xDrive40e iPerformance iPerformance iPerformance

BMW 740e MINI Cooper S E Plug-in hybrid iPerformance Countryman ALL4 10 MILLION CONNECTED VEHICLES ALREADY ON THE ROAD. NEW CUSTOMERS. NEW POSSIBILITIES. EXPANDING OUR MOBILITY SERVICES.

ChargeNow ParkNow BMW Connected

DriveNow ReachNow Digital Energy Solutions PLANT SPARTANBURG IS DRIVING THE FUTURE. BMW GROUP IS PROUD TO CALL THE UNITED STATES OUR SECOND HOME.

70,000 JOBS in the U.S. WHY SOUTH CAROLINA?

State Infrastructure.

Pro-Business Environment

Qualified Workforce. PROVEN AUTOMOTIVE SUCCESS IN SOUTH CAROLINA.

• South Carolina is home to more than 400 automotive-related companies and suppliers.

• BMW accounts for more than 30,700 jobs, about 1.3% of the statewide workforce.1

• South Carolina's leading manufactured exports are vehicles, which alone accounted for more than $9.5 billion in 2016.

Automotive Related Companies in South Carolina Updated: February 2015

Source: SC Department of Commerce, 2017 1 BMW Economic Impact Report, University of South Carolina, December 2014 World Trade Atlas, State Exports 2015

PROVEN GERMAN SUCCESS IN SOUTH CAROLINA.

•More than 235 operations of 160 German companies in South Carolina representing 40% of foreign investment

•$18.3 billion invested

•Nearly 47,000 jobs Source: SC Department of Commerce, 2016 SC Department of Commerce FDI Historical Capital Investment PROVEN INTERNATIONAL SUCCESS IN SOUTH CAROLINA.

Overall International Company Success:

• $53.4 billion in capital investment

• 135,200 jobs

• More than1,200 operations of 600 companies representing 40 countries.

Flag size represents the total number of companies for each country of origin within a specific county. Locations are only a representation of operations in the county and are not meant to show a specific location.

Source: SC Department of Commerce, 2017 Historical FDI Capital Investment

THE US IS OUR SECOND HOME AND PLANT SPARTANBURG THE LARGEST PRODUCTION SITE IN OUR GLOBAL PRODUCTION NETWORK.

1994 2018

1.2 MILLION SQUARE FEET 6.4 MILLION SQUARE FEET

600 JOBS ONSITE 10,000 JOBS ONSITE

FIRST BMW PRODUCED IN NORTH 1400 VEHICLES/DAY AMERICA (BMW 318I) SIX MAJOR EXPANSIONS SINCE THE PLANT OPENED. 25 YEARS OF CONTINUED GROWTH: INVESTMENT ANNOUNCEMENTS.

$900 million: to expand $600 million: to prepare the production capacity to 350,000 plant for the next-generation units annually and add another of X models and creation of Groundbreaking for Plant Spartanburg Opening Ceremony $400 million and 400 new jobs model, the new BMW X4. 1,000 additional jobs through September 30 November 15 September 26 January 12 2021. June 26 1992 1994 2002 2012 2017

c 1992 1994 1998 2008 2014 June 23 September 8 May 12 March 10 March 28 BMW announces it will build a First BMW produced, a 318i $600 million expansion to $750 million expansion to build a BMW announces the single largest investment U.S. plant in Spartanburg – its prepare for new BMW X5 new assembly hall and expand in Plant Spartanburg’s history – $1 Billion – an first full production plant outside the paint shop for the second- increase of production capacity to 450,000 of Germany. $600 million to generation BMW X3 units per year, an additional 800 jobs and a create 2,000 jobs and 9 SC fifth model, the all-new BMW X7. suppliers by year 2000. PLANT SPARTANBURG MODELS.

1994 1995 1998 1999 2002 2005

BMW 318i BMW Z3 BMW Z3 BMW X5 BMW Z4 BMW Z4 Roadster Coupe 1st Generation Roadster Coupe

2006 2008 2009 2010 2012 2013

BMW X5 BMW X6 BMW X6 BMW X3 BMW X4 BMW X5 2nd Generation 1st Generation Active Hybrid 2nd Generation 1st Generation 3rd Generation

2014 2015 2015 2015 2017 2018 2018

BMW X6 BMW X5 M BMW X6 M BMW X5 PHEV BMW X3 BMW X4 BMW X7 2nd Generation 1st Generation 1st Generation 1st Generation 2nd Generation 2nd Generation 1st Generation PRODUCTION MILESTONES.

SEPTEMBER 8, 1994 FEBRUARY 28, 2006 JANUARY 12, 2012 MARCH 24, 2015 SEPTEMBER 8, 2017

FIRST BMW PRODUCED ONE MILLIONTH TWO MILLIONTH THREE MILLIONTH FOUR MILLIONTH BMW 318i BMW Z4 M ROADSTER BMW X3 xDRIVE 35i BMW X5 M BMW X3 xDRIVE 40i THE FIRST BMW, A THE ONE MILLIONTH THE THREE THE 3.5 MILLIONTH 318I, WAS BMW, A Z4 MILLIONTH BMW, AN BMW, AN X4 SPORTS PRODUCED. ROADSTER, WAS X5 M, WAS ACTIVITY COUPE, PRODUCED. PRODUCED. WAS PRODUCED. BMW MANUFACTURING CO. IS LOCAL.

8.9 BILLION AMOUNT INVESTED IN 70 PERCENT OF PRODUCTION BMW MANUFACTURING SINCE 1992 EXPORTED THROUGH THE PORT OF CHARLESTON 10,000 JOBS ON SITE 40 DIRECT TIER 1 SUPPLIERS LOCATED IN 4 MILLION PRODUCED AT SOUTH CAROLINA PLANT SPARTANBURG BMW MANUFACTURING CONTINUES AS LARGEST U.S. EXPORTER.

2017 Export Value. State Billion South Carolina $8.76

Alabama $7.75

California $7.14

Michigan $5.81

Ohio $3.13

Tennessee $2.89

$8.76 billion exported through the Kentucky $2.60 Port of Charleston. Indiana $2.29

More than 70% Illinois $1.97 Exported. Texas $1.96 WE ARE THE LEADING MANUFACTURER OF PREMIUM AUTOMOBILES. BUILDING QUALITY FOR THE WORLD.

*BMW X7 CONCEPT

BMW X6

BMW X5

BMW X6M BMW X4 BMW X5M

BMW X5 BMW X3 PHEV BUILDING QUALITY FOR THE WORLD.

QUALITY CULTURE. PLANT SPARTANBURG INNOVATIONS.

INDUSTRY 4.0

Collaborative Robots. Work Simulation. Forklift Simulator. Exoskeleton Vest.

PURE PASSION FOR EXCELLENCE. WORKFORCE DEVELOPMENT PROGRAMS.

Internship and Co-ops and International Internships. University and Graduate Students.

BMW Scholars Program. Apprentice Program. Engineering & Operations Management Development Program. Future Management Development Program.

Global Leader Development Program. Graduates and Junior Professionals.

Road to Production Management Talent program for leadership in the technologies. BMW GROUP CONTINUES TO INVEST IN VOCATIONAL AND CONTINUED TRAINING AT PLANT SPARTANBURG.

More than $220 million already invested.

Additional $200 million to be invested in training. WORKFORCE DEVELOPMENT FOR ADVANCED MANUFACTURING. BMW MANUFACTURING DOUBLES SIZE OF BMW SCHOLARS PROGRAM.

Robotics/mechatronics/industrial maintenance

Automotive technology

Mechanical or electrical engineering

Logistics/supply chain management

Production associate technology SUSTAINABILITY.

FROM 2006 TO 2017, PER VEHICLE SHIPPED, PLANT SPARTANBURG HAS DECREASED:

53% 65% 86% 58%

ENERGY WASTE DISPOSED OF INDUSTRIAL WATER CONSUMPTION CONSUMPTION IN A LANDFILL WASTEWATER CORPORATE SOCIAL RESPONSIBILITY.

SKYLAND ELEMENTARY BMW CHARITY SC TEACHER BIKE BUILD FOR TREE PLANTING PRO AM OF THE YEAR HOMELESS

SCHOOL TOOLS HABITAT BUILD

^ VOLUNTEER

PURE PASSION FOR EXCELLENCE. SUPPLIER DIVERSITY.

2,000 Participants. More than 200 Tier 1 suppliers. Women, minority, veteran- owned businesses.

THANK YOU. THE BMW SUCCESS STORY. MAX METCALF. GOVERNMENT & COMMUNITY RELATIONS MANAGER, BMW MANUFACTURING CO.

March 6, 2018