BMW Investor Presentation May 2016

BMW INVESTOR PRESENTATION
May 2016
STRATEGY NUMBER ONE > NEXT
BMW Investor Presentation, May 2016
Page 2
FORWARD-LOOKING STRATEGIES LEADING TO A SUCCESSFUL

CORPORATE DEVELOPMENT SINCE 2001.
2016
2001/
2003
Premium brand strategy
Strategy Number ONE
2007
VISION
We are Number ONE.
We inspire people on the move:
We shape tomorrows individual
premium mobility.
COMPETITIVE
ADVANTAGE
We unite excitement, responsibility and
success: We have the most emotional
products and attractive
services.
STRATEGIC APPROACH
We are leading the BMW Group into a new era:
We leverage innovative technologies, digitalization
and sustainability to deliver unique customer experiences.
> Brands & Design
> Products
> Technologies
> Customer Experience & Services
> Digitalization
> Profitability
CORPORATE CULTURE
We create the future:
We combine operational
excellence and fresh
thinking.
Page 4
LEADERSHIP DRIVEN BY ASPIRATIONAL BRAND PORTFOLIO

AND HIGHLY EMOTIONAL PRODUCTS.
Premium Brands
BRANDS & DESIGN
Design
Luxury
Compact/Small
Now
Dynamic
Target group
Efficient
Page 5
ATTRACTIVE PREMIUM BRANDS PROVIDE THE BASIS

FOR A FURTHER EXPANSION OF THE PRODUCT PORTFOLIO.
BRANDS & DESIGN
Page 6
SIXTH GENERATION OF BMW 7 SERIES:

THE NEW BENCHMARK IN THE LUXURY SEGMENT.
PRODUCTS
Page 7
KEEPING THE LEAD FURTHER EXPANSION OF THE

X-PORTFOLIO PLANNED UNTIL 2020.
BMW X1
BMW X3
BMW X5
BMW X6
PRODUCTS
BMW X4
BMW X7
Page 8
BMW M AUTOMOBILES ARE THE VERY SPORTY

AND DYNAMIC END OF OUR MODEL RANGE.
PRODUCTS
AN EXAMPLE:
BRAND SHAPER
BMW M4 GTS
M AUTOMOBILES
BMW M2 Coup
M PERFORMANCE
AUTOMOBILES
CORE BRAND MODEL

WITH M SPORT PACKAGE
TOP MODEL
CORE BRAND
BMW M235i Coup
BMW 420i Coup with

M sport package
BMW 228i Coup
Page 9
iPERFORMANCE AND BMW i

BALANCING THE PRODUCT PORTFOLIO .
PRODUCTS
DYNAMIC
EFFICIENT
BMW brand framework for product portfolio
M Core Models
M Performance
High
Performance
Performance
Champions
Core Models
PHEVs
BEVs
Electrified
Efficiency
Champions
Visionary
Mobility
The interplay of BMW M and BMW i enhances competitive differentiation

(representation of the scope of the BMW brand).
Page 10
SEVEN ELECTRIFIED BMW MODELS:

FURTHER MODELS TO COME.
PRODUCTS
BMW i3
BMW 225xe
iPerformance
BMW X5 xDrive40e
iPerformance
BMW 330e
iPerformance
BMW 530Le
BMW 740e
iPerformance
BMW i8
FURTHER EXPANSION OF THE BMW i PORTFOLIO.

PRODUCTS
i NEXT
2013
2014
2016
2018
Beginning of the next decade
Continuous development of the BMW i3 with regard to range and design

Page 12
PROJECT i 2.0:
THE BMW i NEXT IS THE FUTURE OF MOBILITY.
TECHNOLOGIES
Connectivity
Sustainability
Purpose-built
Lightweight
construction
Interior of the future
BMW i NEXT
New sportiness
Highly automated driving

Autonomous
driving
Electrification
Artificial Intelligence
Page 13
ENSURING OUR POSITION AS TECHNOLOGY LEADER.

TECHNOLOGIES
Technology and innovation leader
Future focus:
Powertrain technologies
Efficient
Dynamics
NEXT
Hydrogen
Future focus:
Digitalization
Connectivity
Artificial
Intelligence
Autonomous
driving
Page 14
THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS

DRIVING.
Human
Transition of responsibility
TECHNOLOGIES
Machine
TODAY
Early
warning systems
such as cruise
control/ speed
assistant
No active
assistance system
(Feet-off)
0 Driver Only
1 Assistance
Traffic control
(e.g. congestion
assistant)
(Hands-off)
2 Semi-Automation
Awareness for
take over
Take over request

(Eyes-off)
3 High-Automation
General awareness
No take over request

(Mind-off)
No driver
4 Full-Automation
5 Autonomous
Page 15
MASTERING THE BASIC TECHNOLOGIES IS THE

FIRST STEP FOR HIGHLY AUTOMATED DRIVING.
Sensor systems
TECHNOLOGIES
Artificial Intelligence
Regulatory
requirements
Intelligent
autonomous vehicle
Digital maps / HERE

Digital reality model

Page 16
LEVERAGING POTENTIAL OF DIGITALIZATION AND

CONNECTIVITY.
CUSTOMER EXPERIENCE & SERVICES
BMW Connected
Mobility Cloud
Page 17
INTELLIGENT AND INNOVATIVE PRODUCTION DIGITIZATION CREATES NEW POTENTIAL.

Data and Analytics
DIGITALIZATION
Smart Logistics
Innovative Automation
Additive Manufacturing
Internet-of-Things
Architecture
Autonomous Transport Systems
Collaborative Robot Systems
Laminate or Metal
Data Management for Planning

and Control
Global Supply Chain

Visibility and Control
Context-sensitive Worker
Support Systems
Serial Production
and Rapid Prototyping
Cyber Security
Integrated Supplier Networks
Reorganization of Work
New Individualization
16
14
12
10
8
6
4
2
0
140
6
135
10
12
14
130
16
18
125
Page 18
BMW MOTORRAD.
WIDER RANGE THAN EVER BEFORE.
ADVENTURE
TOUR
SPORT
PRODUCTS
ROADSTER
HERITAGE
NEW SINCE 2014
URBAN
MOBILITY
NEW SINCE 2012
Page 19
MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR

OF 8-10% DESPITE ONGOING CHALLENGES.
Future costs
Regulatory
requirements
Market and
competitive
environment
PROFITABILITY
Volatility
10 %
Ongoing efficiency
measures to compensate
the cost burden
8%
Expansion & optimization Retail sales growth

product portfolio
Auto und Motorcycle
New technologies/
equipment options
Reduction of
material costs
Benefits from
digitalization
Efficiency
measures
FINANCIAL TARGETS 2020: SUSTAINABLE GROWTH AND SOLID

PROFITABILITY DESPITE CHALLENGES.
BMW Group
2015
2020
EBT margin (from 2017)
10.0%
>10%
Investment ratio*
4.2%
<5.0%
Research and development ratio
5.6%
5.0 - 5.5%
Payout ratio
32.9%
30 - 40%
9.2%
8 -10%
5.4 bn
>3 bn
136,963 units
> 200,000 units
9.1%
8 -10%
20.2%
>18%
PROFITABILITY
Automotive Segment
EBIT margin
Free Cashflow
Motorcycles Segment
Sales volume
EBIT margin (from 2017)
Financial Services Segment
Return on Equity
* Investments in property, plant and equipment and other intangible assets (without capitalized development costs).
Page 21
BMW GROUP
BUSINESS UPDATE
Page 22
SOLID START INTO THE NEW BUSINESS YEAR.

BMW GROUP SALES FIGURES YTD APRIL 2016.
736,078
+ 4.9 %
629,325
+ 4.8 %
106,753
+ 5.6 %
853
- 21.8 %
50,581
+5.5%
Page 23
BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID

YTD APRIL 2016 GROWTH OF +4.9%.
Americas
Europe
Mainland China
Asia (w/o) China

& Rest of World
+9.9%
+6.0%
-8.1%
19%
138,033 units
+7.7%
46%
341,195 units
22%
162,221 units
Source: Data for individual regions include BMW and MINI vehicles only, YTD April 2016 (figures may not add to 100% due to rounding)
13%
94,629 units
Page 24
BMW GROUP AUTOMOTIVE MAJOR MARKETS.

DELIVERIES TO CUSTOMERS YTD APRIL 2016.
Deliveries of automobiles
Europe
thereof
Germany 1)
Great Britain
France
Italy
Americas
thereof
USA
Asia
thereof China Mainland

thereof BBA retail sales
Japan
Rest of the World
Total
YTD 2016
YTD 2015
Change in %
341,195
100,201
74,968
27,784
26,579
310,586
94,466
68,235
24,752
23,369
9.9
6.1
9.9
12.2
13.7
138,033
150,119
-8.1
111,199
123,697
-10.1
234,463
220,803
6.2
162,221
103,650
22,936
152,970
96,185
21,505
6.0
7.8
6.7
22,387
20,042
11.7
736,078
701,550
4.9
1) Registrations
Page 25
BMW AND MINI RETAIL DEVELOPMENT IN MAINLAND CHINA YTD APRIL 2016.
Share of JV Sales
62%
59%
53%
48%
32%
41%
43%
51%
+16.7 %
in 000 units
61%
61%
63%
64%
+1.7%
456.0
463.7
275.9
282.0
+19.7 %
390.7
Import
+40.3 %
JV Sales
326.4
198.5
+37.6 %
232.6
141.2
+6.0%
+86.7 %
169.0
+27.5 %
+37.5 %
+41.8 %
36.4
51.6
22.6
13.8
30.6
21.0
2006
2007
65.8
35.2
94.4
153.0
162.2
96.2
103.7
56.8
58.6
YTD 2015
YTD 2016
53.7
90.5
43.7
30.7
46.8
2008
2009
185.3
115.3
2010
192.2
138.2
2011
2012
Source: BMW Group Retail data, YTD April 2016
2013
180.1
2014
181.7
2015
Page 26
PREMIUM SEGMENT SHARE OF TOTAL MARKET 2015.

in %
30
25.8
25
21.0
20
15
11.9
10.1
10
9.3
9.0
8.6
8.5
7.4
World Average: 8.9%
4.6
2.4
1.2
0
Germany
United
Kingdom
Italy
USA
Turkey
Source: Global Insight 12/2015
France
S. Korea
Russia
China
Japan
Brazil
India
Page 27
GLOBAL ANNUAL PREMIUM SEGMENT SALES ARE EXPECTED TO GROW TO

9.0 MN UNITS BY 2020.
10,000
9,000
Rest of World, CAGR +4.6%
8,000
BRIKT*, CAGR +5.2%
7,000
6,000
China, CAGR +5.5%
5,000
Japan, CAGR +0.4%
4,000
3,000
2,000
Region (000 units)

World
2015
Chg.
7,749
9,012
16%
605
759
25%
Rest of World
BRIKT*
475
612
29%
1,793
2,345
31%
225
229
2%
North America
1,944
2,173
12%
Western Europe
2,707
2,894
7%
China (Mainland)
Japan
1,000
2020
North America, CAGR +2.3%
Western Europe, CAGR +1.3%
2015
2016
Source: Global Insight 04/2016
2017
2018
2019
2020
*BRIKT refers to Brazil, Russia, India, South Korea and Turkey
Page 28
BMW GROUP Q1-2016: GOOD START IN THE FIRST THREE MONTHS OF 2016,
WITH A RECORD FIRST-QUARTER SALES VOLUME PERFORMANCE.
BMW Group
Earnings before tax Group (in m)
EBT margin (in %) Group
Automotive Segment
Automotive sales (units)
Earnings before interest and tax (EBIT) (in m)
EBIT margin (in %)
Net financial assets (m)
Motorcycles Segment
Sales (units)
Earnings before interest and tax (EBIT) (in m)
EBIT margin (in %)
Financial Services
Earnings before tax (EBT) (in m)
Penetration rate (in %)
Credit loss ratio (in %)
Q1-2016
2,368
11.4
Q1-2015
2,269
10.8
Change in %
+4.4
-
557,605
1,763
9.4
17,511
526,669
1,794
9.5
15,037
+5.9
-1.7
+16.5
33,788
94
16.2
31,370
115
20.3
+7.7
-18.3
-
570
46.1
0.29
559
44.9
0.33
+2.0
Page 29
EBIT MARGIN DEVELOPMENT AUTOMOTIVE SEGMENT.

TARGET PROFITABILITY OF 8-10%.
PROFITABILITY
EBIT margin development automotive segment

[in %]
11.8
10.8
9.4
9.6
2013*
2014
9.2
9.5
9.4
8.0
6.4
Target corridor:
8-10 %
6.4
1.4
-0.6
2006
2007
2008
2009
2010
2011
2012
* 2013 figures have been adjusted in accordance with IAS 8.
2015 Q1-2015Q1-2016
Page 30
FREE CASH FLOW AUTOMOTIVE SEGMENT.

TARGET OF >3BN EURO ANNUALLY.
PROFITABILITY
Free Cash Flow (Automotive)*

[in m]
5,404
4,471
3,809
3,166
3,481
3,003
Target:
> 3 billion
2,277
1,456
1,060
532
197
n.a.
2006
2007
2008
2009**
2010
2011**
2012
2013**
2014
2015
Q1-2015 Q1-2016
* 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.
Page 31
CAPITAL EXPENDITURE BMW GROUP.

TARGET RATIO BELOW 5% OF GROUP REVENUES.
PROFITABILITY
Capex Ratio**
[in %]
BMW Group Capital Expenditure*

[in m]
6,000
10
9
5,000
4,000
6.5
5.7
5.2
5.6
5.7
5.4
4.7
3,000
3.8
4,967
4,151
2,933
2,980
1,000
2,383
2,312
6
5
4.2
4.0
2,000
2,777
Target ratio:
<5%
4,601
3,826
2.6
1.9
2,720
2
1
548
2006
2007
2008
2009
2010
2011
2012
2013***
2014
2015
* 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.
405
Q1-2015 Q1-2016
Page 32
OUTLOOK FOR 2016

POSITIVE BUSINESS DEVELOPMENT EXPECTED DESPITE CHALLENGES.
BMW Group
Slight increase in EBT compared with previous year
Automotive Segment
Slight increase in deliveries and revenues compared with the previous year
EBIT margin in the target range of 8-10%
Financial Services Segment
Return on equity of at least 18%, on par with previous year
Motorcycles Segment
Slight increase in deliveries compared with the previous year
Page 33
BMW GROUPS FINANCE STRATEGY COVERS THE ENTIRE AUTOMOTIVE VALUE

CHAIN.
Research & Development
Production
Sales & Marketing
Financial Services
BMW GROUPS FINANCE STRATEGY FOCUSES ON SEVEN STRATEGIC TARGET FIELDS

1. Focus on Automotive Value Chain
2. Financing Follows Markets
3. Capability of Acting and Independence
4. Industry + Bank Typical Financing

Instruments
5. Access to Banks, Investors & Rating

Agencies
6. Value Orientation
7. Financial Robustness in Times of Crisis

Page 34
DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK

TYPICAL FINANCING INSTRUMENTS.
Funding Instruments
<1yr
CP
1yr
2yrs
(EMTN) PPs
3yrs
4yrs
Financial Debt as of 31.03.2016
5yrs
7yrs
Others
1.6%
10yrs+
Bonds
Bank Loans
8.1%
Banks loans
ABCP
Fed Funds
0.5%
SSD
2.4%
ABS
Brokered CD's
5.7%
Public Bonds
34.8%
Customers deposits
Fed
Funds
Structured Financing
3.1%
86.5 bn *
BCDs
Industry-typical
instruments
Bank-typical
instruments
PP's
12.7%
Customer Deposits
BMW Bank
9.7%
ABS
15.3%
CP
6.2%
*Adjusted, excluding currency and interest rate derivatives.
Page 35
BMW GROUP INVESTOR RELATIONS.

CONTACTS.
Torsten Schssler
Head of Investor Relations
Bernd Daser
Debt & Equity IR
Patrick Neumayer
Equity IR
+49-89-382-25387
torsten.schuessler@bmw.de
+49-89-382-31684
bernd.daser@bmw.de
+49-89-382-24272
patrick.neumayer@bmw.de
Tanja Seiler
Equity & SRI IR
Andreas Stffler
Equity IR
Ziye Zhou
Debt & Equity IR
+49-89-382-75161
tanja.seiler@bmw.de
+49-89-382-17944
andreas.stoeffler@bmw.de
+49-89-382-16190
ziye.zhou@bmw.de
http://www.bmwgroup.com/ir
IR Contact
BMW Group Investor Relations
+49-89-382-0
Petuelring 130
ir@bmwgroup.com
80788 Munich
Page 36

FINANCIAL CALENDAR 2016 & 2017.
03.05.2016
Quarterly Report to March 2016
12.05.2016
Annual General Meeting 2016
02.08.2016
Quarterly Report to June 2016
04.11.2016
Quarterly Report to September 2016
21.03.2017
Annual Accounts Press Conference 2017
22.03.2017
Analyst and Investor Conference 2017
11.05.2017
Annual General Meeting 2017
http://www.bmwgroup.com/ir
Page 37

ON THE ROAD H1 2016.
31.05.-02.06.2016
Roadshow Copenhagen & Stockholm
07.06.2016
J. P. Morgan European Automotive Conference London
08./09.06.2016
Unicredit Auto Credit Conference London
09.06.2016
db Access German, Swiss & Austrian Conference Berlin
13.-15.06.2016
J. P. Morgan Global China Summit Beijing
20.06.-25.06.2016
Roadshow Chicago, Toronto & Montreal
21.06.2016
DB ADAS Conference, London
22.06.2016
Roadshow Edinburgh
23.06.2016
Bank of America Merrill Lynch Future Mobility Conference, London
Page 38
DISCLAIMER.
This document contains forward-looking statements that reflect BMW Groups 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 Groups control,
including adverse developments in global economic conditions resulting in a decline in demand in BMW Groups key
markets, including China, North America and Europe; a deterioration in credit and financial markets; a shift in consumer
preferences affecting demand for BMW Groups 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
Groups 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 Groups most recent Annual Report.
If any of these risks and uncertainties materializes or if the assumptions underlying any of BMW Groups 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.
Page 39

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BMW INVESTOR PRESENTATION

STRATEGY NUMBER ONE > NEXT

BMW Investor Presentation, May 2016

FORWARD-LOOKING STRATEGIES LEADING TO A SUCCESSFUL

Premium brand strategy

Strategy Number ONE

BMW Investor Presentation, May 2016

LEADERSHIP DRIVEN BY ASPIRATIONAL BRAND PORTFOLIO

BRANDS & DESIGN

BMW Investor Presentation, May 2016

ATTRACTIVE PREMIUM BRANDS PROVIDE THE BASIS

BMW Investor Presentation, May 2016

BRANDS & DESIGN

SIXTH GENERATION OF BMW 7 SERIES:

BMW Investor Presentation, May 2016

KEEPING THE LEAD FURTHER EXPANSION OF THE

BMW Investor Presentation, May 2016

BMW M AUTOMOBILES ARE THE VERY SPORTY

CORE BRAND MODEL

BMW M235i Coup

BMW 420i Coup with

BMW 228i Coup

iPERFORMANCE AND BMW i

The interplay of BMW M and BMW i enhances competitive differentiation

SEVEN ELECTRIFIED BMW MODELS:

FURTHER EXPANSION OF THE BMW i PORTFOLIO.

Beginning of the next decade

Continuous development of the BMW i3 with regard to range and design

Interior of the future

Highly automated driving

ENSURING OUR POSITION AS TECHNOLOGY LEADER.

Technology and innovation leader

THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS

BMW Investor Presentation, May 2016

Take over request

No take over request

MASTERING THE BASIC TECHNOLOGIES IS THE

Digital maps / HERE

Digital reality model

LEVERAGING POTENTIAL OF DIGITALIZATION AND

CUSTOMER EXPERIENCE & SERVICES

BMW Investor Presentation, May 2016

INTELLIGENT AND INNOVATIVE PRODUCTION DIGITIZATION CREATES NEW POTENTIAL.

Autonomous Transport Systems

Collaborative Robot Systems

Data Management for Planning

Global Supply Chain

Integrated Supplier Networks

BMW Investor Presentation, May 2016

NEW SINCE 2014

BMW Investor Presentation, May 2016

NEW SINCE 2012

MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR

Expansion & optimization Retail sales growth

FINANCIAL TARGETS 2020: SUSTAINABLE GROWTH AND SOLID

EBT margin (from 2017)

Research and development ratio

> 200,000 units

BMW Investor Presentation, May 2016

SOLID START INTO THE NEW BUSINESS YEAR.

BMW Investor Presentation, May 2016

BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID

Asia (w/o) China