#1BMW BRILLIANCE AUTOMOTIVE LTD. BANKERS DAY JULY 21st 2020 M 悦创造奇迹 之诺 ZINORO#2BBA IS A JOINT-VENTURE OF BMW GROUP AND BRILLIANCE GROUP - A SINO-GERMAN COLLABORATION. BMW Group BMW N.V. Holding, Netherlands + China Brilliance Auto. China Brilliance Automotive, Hong Kong Bankers Day, July 21st, 2020 JOINT VENTURE CONTRACT EXTENSION UNTIL 2040. B M M LE BMW Brilliance Automotive AFC BMW Automotive Finance (China) Co., Ltd. 42% HIL Herald International Financial Leasing Co., Ltd. 42% LingYue Digital Information Technology Co., Ltd. 100% Page 2#3BBA IS FURTHER GROWING THE LOCAL PRODUCT PORTFOLIO AND OFFERING A HIGH DEGREE OF SUPPLY FLEXIBILITY: "THE POWER OF CHOICE". Bankers Day, July 21st, 2020 MADE IN SHENYANG AND PREPARED FOR THE WORLD. Fist locally produced BEV in China for China and the World. First model offering the "Power of Choice". Page 3#4BBA IS THE EPITOME OF A PROFITABLE AND SUCCESSFUL GROWTH STORY. NON-FINANCIAL FIGURES 2019. FINANCIAL FIGURES 2019. Deliveries 545 kUnits + 17 % Profit before Tax 20 bn. CNY + 23% Associates 19,841 + 4.7 % Revenue 169 bn. CNY +22% Indirect Jobs > 100,000 (throughout BBA's value chain) Largest Taxpayer (Shenyang) since 2006 Bankers Day, July 21st, 2020 x1000rpm 10 Page 4#5CAPABLE TO HANDLE ANY LIQUIDITY RISKS: BBA'S PROFESSIONAL FINANCE MANAGEMENT. FULLY INTERNALLY FINANCED. BBA's investments and dividends are financed via own cash flow. LIQUIDITY MANAGEMENT. Successfully proven during COVID-19 Crisis. VALUE CHAIN MANAGEMENT. Managing >15 bn. CNY cash flow per month on average. Bankers Day, July 21st, 2020 Page 5#6OUR SHAREHOLDER COMMITMENTS ARE ENSURING BBA'S FUTURE GROWTH IN CHINA. R&D and HVB Extension Plant Dadong Extension Tiexi Greenfield Bankers Day, July 21st, 2020 63 BN. CNY SINCE 2009 AND MORE THAN 25 BN. CNY IN THE NEXT YEARS. Page 6#7MANAGING RAW MATERIAL VOLATILITY IS MORE CRUCIAL FOR OEM'S THAN EVER. Raw Material Price Volatility 01.07.2019 01.09.2019 01.11.2019 01.01.2020 01.03.2020 01.05.2020 01.07.2020 E-MOBILITY COSTS DEPEND ON RAW MATERIAL PRICES. TAKING ACTIONS TO REDUCE THE RAW MATERIAL VOLATILITY. COMPETENT PARTNERS TO SUPPORT THIS RISK MANAGEMENT IDEA. Bankers Day, July 21st, 2020 Page 7#8BBA'S BUSINESS MODEL HAS PROVEN TO BE SUSTAINABLY SUCCESSFUL. BMW Revenue Strength B MW State-of-the-Art Technology Bankers Day, July 21st, 2020 Cost Advantages in Shenyang Productivity Growth 4844 Highest Quality Standards 全新BDAN 3G Page 8#9BBA'S PRODUCTIVITY ON A CONTINUOUSLY HIGH LEVEL. 112 110 108 106 104 102 100 PRODUCTIVITY IMPROVEMENT IN AUTOMOTIVE SUPPLIER INDUSTRY. (Source: Arthur D. Little) 2010 2011 2012 2013 2014 2015 2016 2017 2018 Bankers Day, July 21st, 2020 BBA'S PRODUCTIVITY 2017 - 2019. 15,0 0+10% 100,0 10,0 75,0 0+15% 0,0 0.0 50 50,0 5,0 25,0 0,0 2017 2018 2019 2017 2018 2019 COST PRODUCTIVITY EMPLOYEE PRODUCTIVITY (Wholesales Units per Employee) 5G PRODUCTIVITY IS ALSO THE NAME OF THE DIGITAL GAME. Page 9#10HIGH-QUALITY DEVELOPMENT IS AT THE CORE OF BBA'S BUSINESS ATTITUDE. DIRECTION. Quality-orientation is a critical success factor for BBA. Best quality is our customers expectation. Our products are high quality products. REQUIREMENTS. Excellent quality products require extensive validation. We need to know future regulatory premises right from the beginning. Only stable and foreseeable regulations could reduce development costs and allow earlier implementation of innovations. ASSURANCE. We are listening to our customers. We established a comprehensive and excellent quality management system. Every BMW car represents high quality. INITIAL INAL QUALITY J.D.POWER AND ASSOCIATESS Bankers Day, July 21st, 2020 HIGH QUALITY PRODUCTS REQUIRE STABLE AND FORSEEABLE PREMISES. 2019 The Voice of The Customer Page 10#11ANOTHER SUCCESS FACTOR OF BBA: A BALANCED COOPERATION WITH ALL OUR STAKEHOLDERS. ASSOCIATES Bankers Day, July 21st, 2020 CUSTOMERS + DEALERS 2019 CHANGE THE WORLD ISSUE FORTUNE SOCIETY + MUNICIPALTIES BUSINESS PARTNERS SHAREHOLDERS + INVESTORS Profits and Purpose: Can Big Business Have It Both Ways? BBA HAS BUILD UP WIN-WIN RELATIONSHIPS WITH ALL STAKEHOLDERS AT AN EARLY STAGE AND THIS APPROACH HAS BEEN IMPRESSIVELY PROVEN THROUGOUT THE COVID-19 CRISIS. Page 11#12IN A PERFECTLY BALANCED BUSINESS NETWORK EVERY STAKEHOLDER IS A WINNER. GOVERNMENTAL SUPPORT. BBA received strong support from the City of Shenyang and the Government of Liaoning. SOCIAL RESPONSIBILITY. BBA contributes as a good Corporate Citizen and is investing into China's Green, Sustainable Future. Page 12#13WORKING CAPITAL MANAGEMENT IS ABOUT KEEPING THE VALUE CHAIN IN BALANCE. BASIC PRINCIPLES. A resilient business requires sufficient liquidity along the value chain. A value chain is only as strong as its weakest link. SUPPLIERS MANAGING CASH CHAIN. Balancing the payment terms DEALERS keeps the value chain stable and profitable. Bankers Day, July 21st, 2020 Page 13#14EFFECTIVE WORKING CAPITAL MANAGEMENT ALSO REQUIRES PERMANENT RISK MANAGEMENT. Standard Action Local Supplier Intern. Supplier Local Supplier Intern. Supplier High Risk Local Supplier Local Supplier Local Supplier Intern. Supplier Local Supplier Local Supplier Intern. Supplier Low Risk Local Supplier Local Supplier Immediate Action chassix SUMITOMO MAHLE ORAL MILL AON CREATING TRANSPARANCY OF POTENTIAL LIQUIDITY RISKS. STRENGTHENING SUPPLY FLEXIBILITY THROUGH COMPETITION. Bankers Day, July 21st, 2020 Page 14#15BBA IS A WIN-WIN-MODEL AND WE WILL KEEP ON DRIVING. LONG-TERM BUSINESS POTENTIAL IN CHINA IS ENORMOUS AND REMAINS ENORMOUS. DEEP COMMITMENT TO BBA'S FUTURE REPRESENTED THROUGH THE JOINT VENTURE CONTRACT EXTENSION UNTIL 2040. SHAREHOLDER STRUCTURE CHANGE AS GREAT MESSAGE FOR BMW INVESTORS AND SHAREHOLDERS. Bankers Day, July 21st, 2020 Page 15