BMW GROUP INVESTOR PRESENTATION May 2018 STRATEGY NUMBER ONE NEXT. We are Number ONE. We inspire people on the move: We shape tomorrow’s individual premium mobility. BMW Group Investor Presentation, May 2018 Page 2 ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. AUTONOMOUS CONNECTED ELECTRIFIED CUSTOMER FOCUS SHARED / SERVICES BMW Group Investor Presentation, May 2018 Page 3 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 Presentation, May 2018 Plug-in Hybrid Vehicles (PHEV) Page 4 Life Cycle Impulse (LCI) OUR FUTURE IS ELECTRIC. AMBITIOUS TARGETS FOR SALES OF ELECTRIFIED VEHICLES. >140,000 2018 500,000 103,000 2017 BY THE END OF 2019 ON THE ROAD 62,000 2016 32,000 ELECTRIFIED 2015 17,800 VEHICLES YTD-03/2018 311 2014 26,858 ELECTRIFIED 2013 VEHICLES SOLD BMW Group Investor Presentation, May 2018 Electrified vehicles = Battery electric vehicles & Plug-in Hybrid vehicles Page 5 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 MINI 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 China* BMW 225xe BMW X1 xDrive25Le BMW i8 Roadster iPerformance iPerformance (China) BMW X5 BMW 330e BMW 530e BMW 530Le xDrive40e iPerformance iPerformance iPerformance (China) iPerformance Plug-in hybrid BMW 740e MINI Cooper S E Schematic illustration of future launch dates iPerformance Countryman ALL4 * Not in series production any more BMW Group Investor Presentation, May 2018 ** MINI Battery Electric Vehicle & BMW iX3 are Concept Cars Page 6 BMW i8 ROADSTER. BMW i8 COUPÉ. BMW Group Investor Presentation, May 2018 Page 7 MINI ELECTRIC CONCEPT. MINI COUNTRYMAN PLUG-IN HYBRID. BMW Group Investor Presentation, May 2018 Page 8 THE BMW i VISION DYNAMICS WILL BE BUILT AS i4 IN MUNICH. A NEW FORM OF ELECTRIFYING DRIVING PLEASURE. BMW Group Investor Presentation, May 2018 Page 9 THE BMW CONCEPT iX3. ELECTRIC MOBILITY ARRIVES AT THE CORE OF BMW. BMW Group Investor Presentation, May 2018 Page 10 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 Presentation, May 2018 Schematic illustration Page 11 WHAT WILL DRIVE THE ACCEPTANCE AND THE PROFITABILITY OF E-MOBILITY GOING FORWARD… ACCEPTANCE Regulation favors E-Mobility with PROFITABILITY OF purchasing or tax incentives or non cash benefits + Utilization of the pricing + OF EVS like parking, commuter lanes,.. EVS 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 Presentation, May 2018 Page 12 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 Partially Highly Fully No assistance Assisted Autonomous automated automated automated Human Transfer of responsibility Machine BMW Group Investor Presentation, May 2018 Page 13 HD-MAP, SENSORS, AI/ENVIRONMENT MODEL AND MOTION CONTROL PLAY A KEY ROLE IN THE ARCHITECTURE OF AUTOMATED DRIVING. AI / ENVIRONMENT VEHICLE HD-MAP BACKEND SENSORS MODEL INTEGRATION centimeter precision camera object fusion motion control real-time capable radar free space detection safe vehicle management highly available and reliable lidar road model up to the limits ultra-sonic prediction fail operational architecture inertial sensor driving strategy / planning Cross-industry Cooperation. Cooperation for development of autonomous driving platform System Integrator * * BMW Group Investor Presentation, May 2018 *The acquisition is still subject to approval by the antitrust authorities. Page 14 MOBILITY SERVICES. Options for strategic development. 100 million active customers by 2025. A complete, all-inclusive DriveNow ChargeNow ecosystem for our customers. Agreement with Daimler AG to form Mobility Services Joint Venture.* *Subject to approval by relevant authorities. ParkNow ReachNow BMW Group Investor Presentation, May 2018 Page 15 THE BMW GROUP AND DAIMLER AG ARE JOINING FORCES TO OFFER CUSTOMERS A SINGLE SOURCE FOR SUSTAINABLE URBAN MOBILITY SERVICES. Multimodal & CarSharing Ride-Hailing Parking Charging on-demand mobility ReachNow DriveNow Mytaxi Parkmobile/ParkNow ChargeNow . Founded 2016 . Founded 2011 . Europe’s largest taxi app . 2016 Parkmobile Group . Founded in 2013 . 3 cities . 9 countries . Founded 2009 Europe and 2018 Parkmobile . 65,000 stations and . > 3 mn customers . > 1 mn customers . 70 cities (11 Europe, 2 South LLC in USA acquisition by 143,000 charging points . 1,300 vehicles . 6,000 vehicles America) BMW Group . >1,000 fast chargers have . thereof >1,000 fully electric . > 11 mn customers . 1,000 cities in Europe and been set up so far moovel . 120,000 drivers North America . BMW Group supports >29 Car2Go . Founded 2014 . > 22 mn customers projects to build fast- . Founded 2008 Chauffeur Privé . 4 mn users in Germany and charging infrastructure . >24 cities the U.S. Founded 2011 across Europe . > 3 mn customers > 1,5 mn customers . 22.3 mn transactions in . 14,000 vehicles 2017 . 18,000 drivers . thereof 1,400 fully electric *As announced on the 28th of March 2018, the two companies signed an agreement to merge their mobility services business units. Subject to examination and approval by the responsible competition authorities, the BMW Group and Daimler AG plan to combine and strategically expand their existing on-demand mobility offering in the areas of CarSharing, Ride-Hailing, Parking, Charging and Multimodality. Each company will hold a 50-percent stake in a joint- venture model comprising both companies’ mobility services. The two companies will remain competitors in their respective core businesses. BMW Group Investor Presentation, May 2018 Page 16 Rating Review 2018 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 BMW X3 BMW M5 BMW X2 BMW i3s Rolls-Royce Gran Turismo Phantom BMW Group Investor Presentation, May 2018 Page 17 AND WE WILL KEEP THE MOMENTUM ROLLING… BMW i8 BMW BMW X7 BMW Z4 BMW K1600 BMW M8 … Roadster 8 Series Grand America Gran Coupé BMW Group Investor Presentation, May 2018 Page 18 BMW CONCEPT 8 SERIES. THE PINNACLE OF SPORTS PERFORMANCE AND EXCLUSIVITY. BMW Group Investor Presentation, May 2018 Page 19 BMW CONCEPT M8 GRAN COUPE. A NEW INTERPRETATION OF LUXURY FOR THE BMW BRAND. BMW Group Investor Presentation, May 2018 Page 20 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 Presentation, May 2018 *Concept Car Page 21 BMW CONCEPT X7 iPERFORMANCE. STRIKING EXTERIOR COMBINED WITH EXCEPTIONALLY EFFICIENT & DYNAMIC PLUG-IN HYBRID POWERTRAIN. BMW Group Investor Presentation, May 2018 Page 22 THE BMW CONCEPT Z4. FREEDOM ON FOUR WHEELS. BMW Group Investor Presentation, May 2018 Page 23 THE NEW ROLLS-ROYCE PHANTOM. PURSUIT OF PERFECTION, VISIONARY ENGINEERING & AESTHETIC ACUITY. BMW Group Investor Presentation, May 2018 Page 24 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 Rest of World, CAGR +5.0% BRIKT*, CAGR +8.5% 8,000 China, CAGR +3.9% 6,000 Japan, CAGR +2.6% Region (‘000 units) 2017 2022 Change 4,000 World 8,781 9,972 14% North America, CAGR +2.3% Rest of World 668 853 28% BRIKT* 438 660 51% China (Mainland) 2,387 2,885 21% 2,000 Japan 225 256 14% North America 1,954 2,189 12% Western Europe, CAGR +0.1% Western Europe 3,109 3,128 1% 0 2017 2018 2019 2020 2021 2022 BMW Group Investor Presentation, May 2018 Source: Global Insight 09/2017 *BRIKT refers to Brazil, Russia, India, South Korea and Turkey Page 25 BMW GROUP SALES CONTINUE TO GROW THROUGH MARCH 2018. 604,629 +3.0% 517,447 +2.8% 86,375 +4.0% 807 +10.1% 35,858 +0.6% BMW Group Investor Presentation, May 2018 Sales figures YTD 03/2018 Page 26 BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID YTD-03/2018 GROWTH OF +3.0% TO A NEW RECORD OF 604,629 VEHICLES. Asia (w/o China) Americas Europe Mainland China & Rest of World +1.0% +7.1% +4.0% +0.7% 18% 45% 25% 12% 106,067 units 270,553 units 152,942 units 75,067 units BMW Group Investor Presentation, May 2018 Rolls Royce is included in “Rest of World”, YTD 03/2018 (figures may not add to 100% due to rounding) Page 27 BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD-03/2018. Deliveries of automobiles YTD-03/2018 YTD-03/2017 Change in % Europe 270,553 267,853 1.0 thereof Germany 1) 76,705 76,929 -0.3 Great Britain 61,188 62,935 -2.8 Americas 106,067 101,987 4.0 thereof USA 84,368 81,933 3.0 Asia 212,356 199,841 6.3 thereof China Mainland 152,942 142,828 7.1 thereof BBA retail sales 108,274 90,172 20.1 Rest of the World (incl.