#1BMW GROUP INVESTOR PRESENTATION December 2018 BMW THE NEXT GROUP 100 YEARS B M W MINI Rolls-Royce Motor Cars Limited#2STRATEGY NUMBER ONE NEXT. VISION We are Number ONE. We inspire people on the move: We shape tomorrow's individual premium mobility. STRATEGIC APPROACH BMW Group Investor Presentation, December 2018 COMPETITIVE ADVANTAGE CORPORATE CULTURE Page 2#3ACES ARE A CORE ELEMENT OF STRATEGY NUMBER ONE > NEXT. A AUTONOMOUS ELECTRIFIED BMW Group Investor Presentation, December 2018 BMW 18 45 min 70F Pure Drive Avko 9:20 Clear Customer Focus. Change CONNECTED XE576 C SHARED/SERVICES Page 3#4BMW GROUP'S ELECTRIFICATION PATHWAY. - - PERFORMANCE - Roll-out BMW i Performance MINI ELECTRIC - Upgrade BMW i3 LCI BMW i3, new BMW i3s MINI Electric (PHEV) Building-up expertise Technology innovation Project i LY BOOR I. PIONEERING BMW Group Investor Presentation, December 2018 - MINI BEV BMW iX3 - - BMW iNEXT BMW i Vision Dynamics/ BMW i4 II. ELECTRIFICATION OF CORE PORTFOLIO III. SCALABILITY AND FLEXIBILITY Battery Electric Vehicles (BEV) Plug-in Hybrid Vehicles (PHEV) Life Cycle Impulse (LCI) Page 4#5OUR FUTURE IS ELECTRIC. AMBITIOUS TARGETS FOR SALES OF ELECTRIFIED VEHICLES. >140,000 103,000 2017 62,000 2016 32,000 17,800 311 2013 2014 2015 2018 ELECTRIFIED VEHICLES BMW Group Investor Presentation, December 2018 Electrified vehicles = Battery electric vehicles & Plug-in Hybrid vehicles THE FUTURE IS ELECTRIC. 500,000 BY THE END OF 2019 ON THE ROAD YTD-11/2018 125,365 ELECTRIFIED VEHICLES SOLD Page 5#6OUR CLEAR ROADMAP: 25 ELECTRIFIED MODELS BY 2025, INCLUDING 12 FULLY ELECTRIC CARS. Fully electric BMW iX3** BMW i Vision Dynamics/ BMW i4 BMW i3 60 Ah / 22 kWh BMW i3 94 Ah / 33 kWh BMW i3s 94 Ah/33 kWh BMW i3/i3s 120Ah/42 kWh MINI BEV** BMW INEXT 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 BMW i8 BMW 530 Le China* BMW 225xe BMW X1 xDrive25Le iPerformance iPerformance (China) M.617540 BMW X5 xDrive40e iPerformance BMW 330e iPerformance M.PE 9458 Plug-in hybrid BMW 740e iPerformance BMW Group Investor Presentation, November 2018 M.88 4103 BMW 530e iPerformance BMW i8 Roadster BMW X5xDrive 45e BMW 530Le iPerformance (China) MINI Cooper S E Countryman ALL4 BMW 330e Schematic illustration of future launch dates *Not in series production any more ** MINI Battery Electric Vehicle & BMW iX3 are Concept Cars Page 6#7MINI ELECTRIC CONCEPT. MINI COUNTRYMAN PLUG-IN HYBRID. Sandwiches Salades BMW Group Investor Presentation, December 2018 OX66 UJS Page 7#8THE BMW CONCEPT iX3. ELECTRIC MOBILITY ARRIVES AT THE CORE OF BMW. BMW Group Investor Presentation, December 2018 IX3- Page 8#9THE BMW i VISION DYNAMICS WILL BE BUILT AS i4 IN MUNICH. A NEW FORM OF ELECTRIFYING DRIVING PLEASURE. BMW Group Investor Presentation, December 2018 Winion dynamics li Page 9#10THE BMW VISION INEXT. FUTURE FOCUSED. ¡NEXT-THE BUILDING BLOCKS FOR THE FUTURE. BMW Group Investor Presentation, December 2018 ST 4 Page 10#11BMW i. FROM "BORN ELECTRIC" TO "ONE PLATFORM SERVES ALL". FLEXIBLE VEHICLE ARCHITECTURE TO ENSURE QUICK RESPONSE TO DEMAND. 2013 "Born electric" FROM 2021 ON M.GI 3340 M.SX 7556 A One platform fits all powertrain derivatives... Combustion engine > Plug-In-Hybrid > Pure electric BMW Group Investor Presentation, December 2018 Schematic illustration Page 11#12WHAT WILL DRIVE THE ACCEPTANCE AND THE PROFITABILITY OF E-MOBILITY GOING FORWARD... + ACCEPTANCE OF EVS Regulation favors E-Mobility with purchasing or tax incentives or non cash benefits like parking, commuter lanes,.. PROFITABILITY OF EVS Utilization of the pricing potential of BEV/PHEVS Optimization of the Charging Infrastructure ChargeNow IONITY Smart and Efficient, Increase of charging points Cost Reduction due to technological advancement, supplier consolidation and manufacturing efficiency Driving Range Extension with new storage topologies and motor configurations. An improved drive range would lead to higher usability and easier adoption. 4 Improvement in Production Efficiency due to flexible architecture and less complexity Decrease in Battery Costs due to new innovations and scalability Fully electric Plug-in hybrid MINI ELECTRIC IPERFORMANCE Increase in volume/sales due to BMW i/iPerformance Rollout with 25 electrified models by 2025 Material Costs Reduction due to higher supply and higher volume BMW Group Investor Presentation, December 2018 Time Outlook Time Outlook Page 12#13THE DEVELOPMENT OF TODAY'S ASSISTED FUNCTIONS TO FULL AUTOMATION EQUALS A TECHNOLOGICAL QUANTUM LEAP. Already in series production -Basis for HAD & FAD- SOP 2021 PILOT FLEET 2021 HIGHWAY 130 URBAN 70 **22*no HANDS ON EYES ON HANDS ON EYES ON Longitudinal or traverse guide No active assistance system TASK OF DRIVER HANDS TEMP. OFF EYES TEMP. OFF HANDS OFF EYES OFF HANDS OFF MIND OFF No driver intervention HANDS OFF DRIVER OFF Traffic control Awareness for takeover No driver Takeover request No takeover request Longitudinal or traverse guide Longitudinal TASK OF THE CAR and traverse guide DRIVE ASSISTANCE PARTIAL AUTOMATION CONDITIONAL AUTOMATION HIGH AUTOMATION FULL AUTOMATION NO AUTOMATION Levels according to SAE (Society of Automotive Engineers) J3016 BMW Group Investor Presentation, December 2018 Page 13#14THE NEW BMW 5 SERIES DRIVER ASSISTANCE SYSTEMS PROVIDE COMFORT AND SAFETY AT THE HIGHEST LEVEL. Top View Remote Crossing traffic warning rear/front Night Vision Lane keeping assistant with active side collision protection Active cruise control with Stop&Go function Rear collision prevention Crossroad Assist 3D View Top View M&BB4102 5401 Steering and lane control assistant Lateral parking aid Distance information Lane departure warning C Wrong Way Assist Lane change warning Speed Limit Assist Approach control warning with braking function Parking assistant Active Park Distance Control Speed limit and No Pass information G CP AUTO BMW Selective Beam Panorama View P Remote Control Parking Speed Limit Device BMW Group Investor Presentation, December 2018 P 60 43 68 102 Page 14#15AUTOMATED DRIVING AT THE BMW GROUP. M.PD 5353 BMW Group Investor Presentation, December 2018 00 München Numbers ULTRASONIC SURROUND VIEW FRONT CAMERA RADAR LIDAR SENSORS CAMERAS 360° ENVIRONMENT HERE HD MAP PERCEPTION Page 15#16AUTONOMOUS DRIVING REQUIRES TO COOPERATE WITH LEADING COMPANIES WITHIN THE TECH INDUSTRY. COOPERATION TED D apollo HD-MAP INFRASTRUCTURE 5G TEST FIELDS here Location Cloud Kumpfin Geschäftsfelder - Sensors: camera, radar, LIDAR - Object fusion - Road model - Driving strategy/planning AUTONOMOUS DRIVING MOBILEVE Our Vision, Your Safety, Continental AMAGNA Baido 百度 (intel FCA FIAT CHRYSLER AUTOMOBILES APTIV BMW Group Investor Presentation, December 2018 OOO OEMS -Centimeter precision - Real-time capable - Highly available and reliable OEM COOPERATION MOBILEVE Our Vision. Your Safety (intel) m Audi here NAVINFO➤ (intel) 四维图新 - Ultra low latency - Ultra high reliability - Ultra high data rates 5G AUTOMOTIVE ASSOCIATION 1000) Audi ERICSSON HUAWEI NOKIA - Worldwide regulation - Unified homologation -Safe and secure development AUTHORITIES AND ASSOCIATIONS NHTSA VDA www.nhtsa.gov ACEA Page 16#17AUTONOMOUS DRIVING. BMW GROUP'S TRANSFORMATION INTO A TECH COMPANY. NEW AUTONOMOUS DRIVING CAMPUS Next steps towards fully- automated driving, from software development to road testing. Agile teams, short distances and short decision-making processes. ■Room for 1,800 employees. NEW DRIVING SIMULATION CENTER ■ World's most advanced facility of its kind for the simulation of real-world driving situations. Construction completion in 2020. BMW Group Investor Presentation, December 2018 Static Simulators and Small Motion High Fidelity Simulator High Dynamic Simulator Page 17#18MOBILITY SERVICES. - - Options for strategic development. 100 million active customers by 2025. A complete, all-inclusive ecosystem for our customers. Agreement with Daimler AG to form Mobility Services Joint Venture.* *Subject to approval by relevant authorities. ParkNow DriveNow METL 1158 Я Park Now P BMW Group Investor Presentation, December 2018 Drive Now ReachNow ChargeNow 680 GOB Um do 117 9A- Detri Regan marten DO 团团 ChargeNow Page 18#19A STRONG PRODUCT MOMENTUM AND THE MIX IMPROVEMENT WILL FOSTER GROWTH AND PROFITABILITY. M.IA 2686 M.BI 8889E M SY 5173 BMW i8 Roadster BMW 8 Series BMW Z4 Rolls Royce Cullinan BMW 3 Series MINI BEV* € M.SY 5165 BMW Group Investor Presentation, December 2018 BMW X2 BMW X5 M MX 5004 BMW X6** *MINI Battery Electric Vehicle Concept **New generation launching soon BMW X7 M XX 7018 Page 19#20MODEL OFFENSIVE. STRONG GROWTH IN THE X FAMILY. M.XD 2001 BMW X2 MMX 5004 BMW X5 BMW Group Investor Presentation, November 2018 BMW X3 BMW X6 M&MJ 9884 M MX 4001 BMW X4 BMW X7 M XX 7018 Page 20#21THE BMW Z4. FREEDOM ON FOUR WHEELS. MEBR 5970 BMW Group Investor Presentation, December 2018 M.BR 5070 Page 21#22THE NEW BMW 3 SERIES SEDAN. SPORTY DRIVING PLEASURE, NEW DESIGN LANGUAGE, AND TRAILBLAZING DRIVER ASSISTANCE TECHNOLOGY. BMW Group Investor Presentation, December 2018 M SY 5173 M SY 5173 Page 22#23THE BMW X7. FUSION OF DRIVING PLEASURE AND LUXURY. BMW Group Investor Presentation, December 2018 M XX 7018 M XX 7018 x7 M XX 7018 Page 23#24BMW 8 SERIES COUPÉ & CONVERTIBLE. THE PINNACLE OF SPORTS PERFORMANCE AND EXCLUSIVITY. MIA 2686 BMW Group Investor Presentation, December 2018 0 2010- M GO 5098 Page 24#25BMW CONCEPT M8 GRAN COUPÉ. A NEW INTERPRETATION OF LUXURY FOR THE BMW BRAND. BMW Group Investor Presentation, December 2018 Page 25#26THE NEW ROLLS-ROYCE CULLINAN - EFFORTLESS EVERYWHERE. LUXURY, PERFORMANCE AND USABILITY NOT SEEN BEFORE IN THE SUV MARKET. BMW Group Investor Presentation, December 2018 BE Page 26#27GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW AT A CAGR OF 2.0% TO 11.6 MN UNITS BY 2031. 12,000 10,000 8,000 Rest of World, CAGR +3.1% BRIKT*, CAGR +4.6% China, CAGR +3.6% 6,000 Region ('000 units) 2017 2031 Chg. World Rest of World 8,757,739 639,974 11,591,267 32% 4,000 984,971 54% Japan, CAGR +0.1% North America, CAGR +1.5% BRIKT* 445,941 833,849 87% China (Mainland) 2,372,525 3,910,753 65% 2,000 Japan 237,915 North America Western Europe 1,949,932 3,111,452 242,342 2,401,996 3,217,356 2% 23% 3% Western Europe, CAGR +0.2% 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 BMW Group Investor Presentation, December 2018 Source: Global Insight 07/2018 *BRIKT refers to Brazil, Russia, India, South Korea and Turkey Page 27#28PREMIUM SEGMENT SHARE OF TOTAL MARKET 2018. 30% 25% 26% 20% 25% 15% 13% 12% 12% World Average: 9.6% 11% 10% 10% 10% 9% 9% 10% 7% 7% 5% 5% 0% Germany United Kingdom Spain South Korea Italy USA SouthAfrica Canada Australia China France Russia Turkey Japan BMW Group Investor Presentation, December 2018 Source: Global Insight 07/2018 Page 28#29BMW GROUP SALES CONTINUE TO GROW THROUGH NOVEMBER 2018. BMW GROUP 2,258,159 +1.3% B M 1,926,631 +1.8% (MINI) 328,099 -1.8% Rolls-Royce Motor Cars Limited 3,429 +17.2% BMW Motorrad 152,181 -0.1% WEA 7778 M EE 7779 Sales figures YTD 11/2018 BMW Group Investor Presentation, December 2018 Page 29#30BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SLIGHT YTD-11/2018 GROWTH OF +1.3% TO A NEW RECORD OF 2,258,159 VEHICLES. Asia (w/o China) +2.3% 18% Americas 411,149 units BMW Group Investor Presentation, December 2018 +0.2% 44% Europe 1,000,086 units Mainland China & Rest of World* +6.4% 26% 577,058 units 12% -6.0% 269,866 units YTD 11/2018 (figures may not add to 100% due to rounding) *includes Rolls Royce sales figures Page 30#31BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES TO CUSTOMERS YTD-11/2018. Germany Great Britain Americas thereof USA Deliveries of automobiles YTD-11/2018 YTD-11/2017 Change in % Europe 1,000,086 998,007 0.2 thereof 289,393 282,009 2.6 216,129 220,128 -1.8 411,149 402,033 2.3 317,544 313,926 1.2 Asia 790,112 769,643 2.7 thereof China Mainland 577,058 542,362 6.4 thereof BBA retail sales 414,475 350,356 18.3 Rest of the World* 56,812 59,816 -5.0 Total 2,258,159 2,229,499 1.3 *includes Rolls Royce sales figures BMW Group Investor Presentation, December 2018 Page 31#32BMW AND MINI RETAIL SALES DEVELOPMENT IN MAINLAND CHINA YTD 11/2018. Share of JV Sales (through BMW Brilliance Automotive) 62% 59% 53% 48% 32% 41% 43% 51% 61% 61% 61% 65% 65% 72% +6.4% +15.1% 594.4 +11.4% 577.1 in '000 units 542.4 +1.7% ■Import JV Sales 516.4 +16.7% 463.7 456.0 +19.7 % 390.7 384.1 +40.3% 326.4 316.2 350.4 414.5 275.9 282.0 +37.6% 198.5 232.6 141.2 +86.7% 169.0 94.4 +37.5% +27.5% 53.7 +41.9% 90.5 65.8 185.3 192.2 200.2 210.3 180.1 181.7 192.0 51.6 162.6 36.4 43.7 138.2 115.3 35.2 30.6 22.6 13.8 21.0 30.7 46.8 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 YTD 2018 YTD BMW Group Investor Presentation, December 2018 Page 32#33GROWTH IN CHINA DESPITE MARKET NORMALIZATION. GROWTH OF DEALER NETWORK AND FURTHER LOCALIZATION. 6 MODELS IN LOCAL PRODUCTION 5 SERIES X1 BMW and MINI outlets in China (as of 31 December 2017) 3 SERIES WBMW 5 L ROMW X1 2 SERIES ACTIVE TOURER Outlet BMW MINI North 105 VRUM 23 East 114 Southeast 95 West 142 South 142 Total 598 135 22-23 1 SERIES SEDAN X3 BMW Group Investor Presentation, December 2018 * Page 33#34AUTOMOBILE PRODUCTION BY PLANT IN 2017. 11% 0% 3% 7% 8% 2% 9% 5% 10% 15% 2% BMW Group Investor Presentation, December 2018 Munich, Germany Dingolfing, Germany BMW 3, 4 series 196,455 BMW 3, 4, 5, 6, 7 series 376,580 Regensburg, Germany BMW 1, 2, 3, 4 series, X1, X2 338,259 15% Leipzig, Germany Rosslyn, South Africa BMW 1, 2 series, i3, 18 246,043 BMW 3 series, X3*** 53,105 Spartanburg, USA 13% Dadong, China* Tiexi, China* Oxford, UK BMW X3, X4, X5, X6 BMW 5 series 371,316 127,440 BMW 1, 2, 3 series, X1 269,309 MINI Hatch, MINI Clubman 223,817 Graz, Austria (Magna Steyr)** BMW 5series 50,272 Born, Netherlands (VDL Nedcar)** Goodwood, UK MINI Hatch, Conv., Countryman; BMW X1 Rolls-Royce 168,969 3,308 Assembly plants Sum 80,868 2,505,741 *Joint venture BMW Brilliance Automotive Ltd., Shenyang **Contract production *** X3 production as of 04/2018 Page 34#35BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. ADVENTURE TOUR SPORT ROADSTER HERITAGE BMW Group Investor Presentation, December 2018 RV Motos RE URBAN MOBILITY Page 35#36BMW GROUP FINANCIAL SERVICES AT A GLANCE. Global Presence as of 12/2017 Business Lines as of 12/2017 Global Operations in 58 Countries Retail Finance € 88.8 bn Dealer Finance € 19.2 bn ~ 4.9 Million Serviced Retail Contracts EU Bank 21% Americas 28% 18% Asia, Pacific EMEA 33% BMW Group Investor Presentation, December 2018 Alphabet Fleet Business € 12.4 bn ALPHERA Financial Services Multi Make Financing € 6.7 bn Insurance 3.6 mn contracts BMW Credit Card 5192 5010 12345679 JULIA REUDE 05/25 MasterCard Banking € 10.4 bn Page 36#37SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Earnings before Tax (EBT) Financial Services [in mn €] 743 365 1,214 2) 122 2,207 2,166 1,975 1,790³ 3) 1,723 1,561" 1,619 439 124 2007 2008 -2921) 2009 2010 2011 2012 2013 2014 2015 2016 2017 1) FY-08 EBT includes a negative effect of EUR 1,057 million from additional credit and residual value risk provisions. 2) FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business. BMW Group Investor Presentation, December 2018 3) 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. 4) FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business. Page 37#38BMW GROUP FINANCIAL SERVICES. SOLID DEVELOPMENT OF CREDIT LOSS RATIO. Credit loss ratio* [in %] 0.41 0.46 0.84 0.67 0.59 0.50 0.49 0.48 0.46 0.37 0.34 0.32 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BMW Group Investor Presentation, December 2018 Definition Credit Loss Ratio: credit losses in relation to the average serviced portfolio. Credit losses: all write offs, meaning the lost receivable including accumulated interest and other costs less utilized collateral. Income related to the recovery process after write off is also taken into consideration. Page 38#39BMW GROUP FINANCIAL YEAR 2017. KEY FINANCIALS UNDERLINE BMW GROUP'S STRONG OPERATING PERFORMANCE. FY-2017 FY-2017 FY-2016 BMW Group adjusted* reported reported Earnings before tax - Group (in m€) 10,675 10,655 9,665 Change in % +10.2 EBT margin (in %) - Group 10.9 10.8 10.3 +0.5 pp Payout Ratio (in %) - Group 30.2 30.2 33.3 -3.1 pp Automotive Segment Automotive sales (units) 2,463,526 2,463,526 2,367,603 +4.1 Earnings before interest and tax (EBIT) (in m€) 7,888 7,863 7,695 +2.2 EBIT margin (in %) 9.2 8.9 8.9 Net financial assets (m€)* 19,787 19,787 19,520 +1.4 Motorcycles Segment Sales (units) 164,153 164,153 145,032 +13.2 Earnings before interest and tax (EBIT) (in m€) 207 207 187 +10.7 EBIT margin (in %) 9.1 9.1 9.0 +0.1 pp Financial Services Earnings before tax (EBT) (in m€) 2,207 2,207 2,166 +1.9 Return on Equity (in %) 18.1 18.1 21.2 -3.1 pp Penetration rate (in %)** Credit loss ratio (in %)** 46.8 46.8 49.6 -2.8 pp 0.34 0.34 0.32 +0.02 pp BMW Group Investor Presentation, December 2018 *restated according to new IFRS-15-Standard **as of 31 December 2016/2017 Page 39#40BMW GROUP Q3-2018. HIGH VOLATILITY AND COMPETITIVE MARKETS AS WELL AS INVESTMENTS IN FUTURE IMPACTED Q3-2018 RESULT. BMW Group Earnings before tax - Group (in m€) Q3-2018 1,845 Q3-2017* 2,503 Change in % -26.3 EBT margin (in %) – Group 7.5 10.6 -3.1 pp Automotive Segment Automotive sales (units) 592,303 590,415 +0.3 Earnings before interest and tax (EBIT) (in m€) 930 1,758 -47.1 EBIT margin (in %) 4.4 8.6 -4.2 pp Motorcycles Segment Sales (units) 39,818 39,429 +1.0 Earnings before interest and tax (EBIT) (in m€) 33 53 -37.7 EBIT margin (in %) 6.9 10.4 -3.5 pp Financial Services Earnings before tax (EBT) (in m€) Penetration rate (in %)** Credit loss ratio (in %)** 548 609 -10.0 49.4 46.7 +2.7 pp 0.24 0.30 -0.06 pp BMW Group Investor Presentation, December 2018 *restated according to new IFRS-15-Standard ** as of 9M-2018/2017 Page 40#41BMW GROUP 9M-2018. DESPITE DIFFICULT MARKET ENVIRONMENT AND HIGH INVESTMENTS IN THE FUTURE THE BMW GROUP MAINTAINED ITS COURSE. BMW Group 9M-2018 9M-2017* Earnings before tax - Group (in m€) 7,883 8,741 Change in % -9.8 EBT margin (in %) – Group 10.9 11.9 -1.0 pp Automotive Segment Automotive sales (units) 1,834,810 1,811,234 +1.3 Earnings before interest and tax (EBIT) (in m€) 4,730 5,879 -19.5 EBIT margin (in %) 7.6 9.4 -1.8 pp Motorcycles Segment Sales (units) 126,793 127,818 -0.8 Earnings before interest and tax (EBIT) (in m€) 208 282 -26.2 EBIT margin (in %) 12.5 15.4 -2.9 pp Financial Services Earnings before tax (EBT) (in m€) 1,714 1,793 -4.4 Penetration rate (in %) Credit loss ratio (in %) 49.4 46.7 +2.7 pp 0.24 0.30 -0.06 pp BMW Group Investor Presentation, December 2018 *restated according to new IFRS-15-Standard Page 41#42AUTOMOTIVE SEGMENT EBIT MARGIN. CORE BUSINESS REMAINS ON TRACK FOR SUCCESS. EBIT margin [in %] 8.0 11.8 10.8 9.4 9.6 9.2 8.9 9.2 2010 2011 2012 BMW Group Investor Presentation, December 2018 2013* * 2013 figures have been adjusted in accordance with IAS 8 ** adjusted value for 2017 in accordance with IFRS 15 2014 2015 2016 2017** Page 42#43FREE CASH FLOW IN AUTOMOTIVE SEGMENT REMAINS STRONG, DESPITE SIGNIFICANTLY HIGHER INVESTMENTS. Free Cash Flow (Automotive)* [in m€] 1,156 2,277 1,456 197 4,471 3,809 3,481 3,166 3,003 5,792 5,404 4,459 FY-Target: 2,703 > 3 billion 2,042 2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 2017 9M-2017 9M-2018 * Definition: Free cash flow corresponds to the cash inflow from operating activities of the Automobiles segment less the cash outflow for investing activities of the Automobiles segment adjusted for net investment in marketable securities and term deposits. 2009-2015 as reported, 2007 & 2008 calculated according to above definition from reported figures. No cash flow reporting on segment level in 2006. 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8. BMW Group Investor Presentation, December 2018 ** Page 43#44THE BMW GROUP IS COMMITTED TO PLAYING A KEY ROLE IN TOMORROW'S MOBILITY AND IS INVESTING SUBSTANTIAL AMOUNTS IN NEW TECHNOLOGIES. R&D Expenditure* R&D Ratio** [in m€, HGB] 6.5 5.6 [in %, HGB] 6.3 5.7 5.6 6.2 6.1 5.5.6,108. 5.5 Target ratio: 5%-5.5% 5,164 4,454 5,169 4,058 4,566 51 5.4 4.9 4,792 4.8 4.6 3,952 3,208 3,144 2,864 2,773 3,373 2,448 HITL 2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 9M-2017 9M-2018 BMW Group Investor Presentation, December 2018 HGB: German Commercial Code * R&D Expenditure: Research and development expenses plus capitalized research and development cost minus amortization of capitalized development costs. ** R&D Ratio: R&D expenditure divided by Group revenues. *** 2013 figures have been adjusted in accordance with IAS 8. Page 44#45TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO. BMW Group Capital Expenditure* [in m€] Capex Ratio** [in %] 4,967 4,601 4,151 3,826 3,731 2,933 2,980 6.5 2,777 5.7 5.7 2,720 5.4 5.6 5.2 2,383 2,312 4.7 4.0 3.8 4.688 4.8 4.0 2,817 2,889 Target ratio: <5% 4.2 4.0 3.8 2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 9M-20179M-2018 BMW Group Investor Presentation, December 2018 * Capital Expenditure: additions to property, plant and equipment and other intangible assets (definition has been changed in 2016). Capital expenditure ratio: Capital expenditure divided by Group revenues. ** *** 2013 figures have been adjusted in accordance with IAS 8. Page 45#46OUTLOOK FOR 2018. BMW GROUP AUTOMOTIVE MOTORCYCLES Moderate decrease of pre-tax earnings compared to the previous year* Deliveries slightly higher than the previous year Revenues slightly lower than the previous year EBIT margin at least 7% Slight increase in deliveries compared to the previous year EBIT margin in target corridor of 8-10% BMW Group Investor Presentation, December 2018 FINANCIAL SERVICES Return on equity of at least 14%, slight decrease *Possible positive earnings effects from a regulatory approval of the planned mobility services joint venture with Daimler AG in 2018 continue to not be reflected in the adjusted outlook. Page 46#47BMW GROUP'S FINANCE STRATEGY COVERS THE ENTIRE AUTOMOTIVE VALUE CHAIN. BMW GROUP CORPORATE FINANCE STRATEGY REFLECTS THE INDUSTRIAL NATURE OF THE BUSINESS AND IS FOCUSED ON THE ENTIRE AUTOMOTIVE VALUE CHAIN. Automotive value chain (€ Research & Development Production Sales & Marketing Financial Services BMW Group Investor Presentation, December 2018 Page 47#48DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK TYPICAL FINANCING INSTRUMENTS. Funding Instruments Financial Debt as of 30.09.2018 Commercial <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ paper Derivative instruments 2% Other 1% 1% CP (EMTN) PPS Bonds Banks loans ABCP ABS Customers deposits Fed BCD's Funds Industry-typical instruments Bank-typical instruments BMW Group continues to target a well diversified debt structure BMW Group Investor Presentation, December 2018 Liabilities from customer deposits 14% Liabilities to banks 12% 98.1 bn € Bonds 54% ABS 16% Page 48#49BMW GROUP INVESTOR RELATIONS. CONTACTS. PREPARED FOR THE FUTURE. Torsten Schüssler Head of Investor Relations Bernd Daser Debt & Equity IR +49-89-382-25387 [email protected] +49-89-382-31684 [email protected] Mariam Kremer Debt & Equity IR +49-89-382-96136 [email protected] Patrick Neumayer Debt & Equity IR Americas Tanja Seiler Equity & SRI IR Andreas Stöffler Equity IR +1-201-307-4210 [email protected] http://www.bmwgroup.com/ir +49-89-382-75161 [email protected] IR Contact BMW Group Investor Relations BMW Group Investor Presentation, December 2018 Petuelring 130 80788 Munich [email protected] +49-89-382-17944 [email protected] Page 49#50BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2018 & 2019. 20.03.2019 Annual Accounts Press Conference 21.03.2019 Analyst and Investor Conference 07.05.2019 Quarterly Report to 31 March 2019 16.05.2019 Annual General Meeting 01.08.2019 Quarterly Report to 30 June 2019 BMW Group Investor Presentation, December 2018 Page 50#51BMW GROUP INVESTOR RELATIONS. ON THE ROAD Q1-2019. 15.-16.01.2019 Commerzbank German Investment Seminar 2019 New York City 22.-23.01.2019 German Corporate Conference (KeplerCheuvreux) Frankfurt BMW Group Investor Presentation, December 2018 Page 51#52DISCLAIMER. This document contains forward-looking statements that reflect BMW Group's current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties or may be affected by factors outside BMW Group's control, including adverse developments in global economic conditions resulting in a decline in demand in BMW Group's key markets, including China, North America and Europe; a deterioration in credit and financial markets; a shift in consumer preferences affecting demand for BMW Group's products; changes in the prices of fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; the effective implementation of BMW Group's strategic goals and targets; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; and other risks and uncertainties, including those described under the heading "Report on Risks and Opportunities" in BMW Group's most recent Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of BMW Group's forward-looking statements prove to be incorrect, actual results may be materially different from those BMW Group expresses or implies by such statements. BMW Group does not intend or assume any obligation to update these forward-looking statements. BMW Group Investor Presentation, December 2018 Page 52