#1BMW GROUP INVESTOR PRESENTATION December 2020 BMW GROUP B M 4 MINI Rolls-Royce Motor Cars Limited#2DYNAMIC STRATEGY. AN ONGOING TASK. POSITION. WHAT do we stand for? DIRECTION. WHAT drives us? BMW GROUP STRATEGY STRATEGIC APPROACH. WHERE do we want to go? BMW Group Investor Presentation, December 2020 COOPERATION HOW do we achieve our goals? Page 2#3BMW GROUP STRATEGY. WHAT do we stand for? POSITION. We take on business, environmental and societal challenges. BMW GROUP STRATEGY WHERE do we want to go? STRATEGIC APPROACH. We focus on our customers and fulfil their diverse needs worldwide. WHAT drives us? DIRECTION We offer inspiring premium products for individual mobility. Today and for future generations. BMW Group Investor Presentation, December 2020 BMW Concist 14 HOW do we achieve our goals? COOPERATION. We deliver top performance. Each of us makes a contribution, based on our values. Page 3#4POWER OF CHOICE. OUR CUSTOMERS DECIDE WHAT IS RIGHT FOR THEIR NEEDS. M&MJ 9884 BMW X3. PETROL & DIESEL. BMW Group Investor Presentation, December 2020 M&LG 671E BMW X3 xDRIVE 30e. PHEV. VARIETY OF DRIVE TRAINS FOR THE BMW X3. BMW iX3. BEV. Page 4#5BMW i FROM "BORN ELECTRIC". TO "ONE ARCHITECTURE SERVES ALL". 2013 "BORN ELECTRIC". M.SX 7556 M.GI 3340 FROM 2021 ON. ONE ARCHITECTURE FITS ALL POWERTRAIN DERIVATIVES COMBUSTION ENGINE. PLUG-IN HYBRID. PURE ELECTRIC. AFTER 2025. NEW BEV CENTRIC ARCHITECTURE. BMW Group Investor Presentation, December 2020 Schematic illustration. Page 5#6OUR CLEAR ROADMAP. AT LEAST 25 ELECTRIFIED MODELS BY 2023 INCLUDING AT LEAST 13 FULLY ELECTRIC CARS. FULLY ELECTRIC. BMW i3 60 Ah/22 kWh 2013 2014 2015 2016 BMW i3 94 Ah/33 kWh BMW i3, BMW i3s 94 Ah/33 kWh BMW i3, BMW i3s 120 Ah/42 kWh MINI Electric 2017 2018 BMW i4* BMW iX1** BMW iX3 BMW 5er BEV** BMW iX BMW 7er BEV** 2019 2020 2021 2022 2023 BMW X1 xDrive25e BMW i8 Coupe BMW X5 xDrive40e BMW 740e, Le, Le xDrive BMW X1 xDrive 25Le (CN only) BMW i8 Roadster BMW 745e, Le, Le xDrive BMW 330e BMW 330e Touring BMW 530e BMW 530 BMW 330e BMW 530e BMW i8 Coupé BMW 225xe Le China BMW X2 xDrive25e PLUG-IN HYBRID. BMW 225xe MINI Cooper S E Countryman ALL4 BMW 530Le (CN only) BMW X3 xDrive30e BMW X5 xDrive45e BMW 530e Touring BMW Group Investor Presentation, December 2020 *Vision/Concept cars **Schematic illustration of future launch dates BMW X1 xDrive 25Le (CN only) BMW 545e Page 6#7THE FIRST EVER BMW iX. NEXT ERA, NEXT LEVEL i. MORE THAN 600 KM OF RANGE. CONSUMPTION BELOW 21 KWH/100KM (WLTP). ELECTRIC ALL-WHEEL DRIVE WITH TWO ELECTRICALLY DRIVEN AXLES AND MORE THAN 500 HP (370 KW). RECHARGING 120 KM IN JUST TEN MINUTES. HIGH-VOLTAGE BATTERY >100 kWh (GROSS). TWO ELECTRIC MOTORS MANUFACTURED W/O THE USE OF RARE-EARTH RAW MATERIALS. ELECTRIC PLATFORM. MULTIPLE DESIGNS. MINIMALISTIC INTERIEUR. LOTILAMEL BMW Group Investor Presentation, December 2020 LUXURIOUS DETAILS. M KH 8136E OGD Page 7#8E-MOBILITY WITHOUT COMPROMISE. BMW CONCEPT i4. BMW i4 (2021). UP TO 600 KM RANGE (BASED ON WLTP). UP TO 530 HP. 5TH GENERATION BMW eDRIVE WITHOUT ANY RARE EARTHS. BUILT IN MUNICH. BMW Group Investor Presentation, December 2020 BMW Concept 4- Page 8#9LEADING PROVIDER OF ELECTRIFIED CARS. MORE THAN 146,000 UNITS SOLD IN 2019. ROADMAP. EUROPEAN NEW VEHICLE FLEET. 2030 50% ELECTRIFIED. 2025 33% ELECTRIFIED. 25% ELECTRIFIED. GLOBAL SALES. ELECTRIFIED CARS. 146,160 2019 2021 142,386 2018 103,103 2017 61,873 2016 32,732 2015 17,805 2014 Global XEV (BEV + PHEV) SALES YTD-09/2020: BMW Group Investor Presentation, December 2020 116,381 (+20%) EUROPEAN SALES YTD-09/2020. 37% INCREASE OVER PREVIOUS YEAR. 12% ELECTRIFIED. Page 9#10WHAT WILL DRIVE ACCEPTANCE AND PROFITABILITY OF E-MOBILITY GOING FORWARD. ACCEPTANCE OF EVs. + PROFITABILITY OF EVs. Regulation favors E-Mobility. Utilization of the pricing potential of BEV/PHEVS. Optimization of the Charging Infrastructure. CHARGENOW IONITY Smart and Efficient, Increase of charging points. Diverse Product offering covering different drivetrains, prices and segments. Driving Range Extension with new storage topologies and motor configurations. Improvement in Production Efficiency. Decrease in Battery Costs due to new innovations and scalability. OUR CLEAR ROADMAP AT LEAST 25 ELECTRIFIED MOORS IN SO HOLLORIC AT LEAST (PLC ELECTIC CATS PIALLY PEROTRIC BMW Group Investor Presentation, December 2020 TIME OUTLOOK. Increase in volume/sales due to BMW i and iPerformance Rollout. Material Costs Reduction due to higher supply and higher volume. TIME OUTLOOK. Page 10#11SUSTAINABILITY IS FULLY INTEGRATED IN THE BMW GROUP AND LEADS TO TOP RATINGS. TOP RATINGS. DOW JONES SUSTAINABILITY INDICES. The BMW Group is the only company in the automotive industry continuously listed on the index since the very beginning. MSCI ESG. BMW's A-rating remains unchanged since August, 2017. CARBON DISCLOSURE PROJECT. In 2019, the BMW Group was ranked in the category Leadership with a A-rating. FTSE4GOOD. Listed in the FTSE4Good Index. ISS ESG. Corporate ESG Performance: Prime, SUSTAINALYTICS. Overall ESG Score: Leader. C+. MEMBER OF Dow Jones Sustainability Indices In collaboration with 1x AM MSCI → CDP FTSE4Good ISS ESG‣ SUSTAINALYTICS BISCLOSURE INSIGHT ACTION MILESTONES. 1973 First environmental manager in the automotive industry. 2000 Executive Board resolution "Sustainability is a guiding principle of the BMW Group's corporate strategy." 2009 Establishment of Sustain- ability Circle and Board. Corporate sustainability is declared as corporate target. TODAY Sustainability is fully integrated across the whole value chain and part of divisional targets. 2020+ We are making sustainability central to the strategic direction of the BMW Group. BMW Group Investor Presentation, December 2020 Page 11#12SUBSTANTIAL CO2 REDUCTION BY AT LEAST ONE THIRD PER VEHICLE ACROSS THE ENTIRE VALUE CHAIN UP TO 2030. SUPPLY CHAIN. De PRODUCTION. USE PHASE. 2030 Avoid increase of ca. +40% per vehicle and reverse trend. -20% CO2 per vehicle vs. 2019 in the supply chain. 2030 -80% substantial CO₂ reduction per vehicle vs. 2019. 2021 CO2-neutral production. 2030 -40% CO2 per vehicle vs. 2019. Continued rollout of electro mobility, reduction of real emissions. BMW Group Investor Presentation, December 2020 Page 12#13EFFICIENT DYNAMICS. ACTIVE CLIMATE PROTECTION SINCE 2007. EFFICIENT DYNAMICS. SELECTED MILESTONES. 2007 AUTOMATIC START/ STOP FUNCTION. 2013 BMW i3: FULLY ELECTRIC SERIES-PRODUCTION CAR. 2019 48 VOLT MILD HYBRID TECHNOLOGY. 2007 BMW Group Investor Presentation, December 2020 FUTURE. 2010 HIGH-PRECISION INJECTION. 2016 3rd GENERATION AIR FLAP CONTROL IN BMW 7 SERIES. 2020 5th GENERATION BMW eDRIVE TECHNOLOGY IN BMW iX3. Page 13#14CO₂ COMPLIANCE. 2 WE WILL REACH OUR EU TARGETS FOR 2020 AND 2021. CO₂-EMISSIONS. New passenger cars [g CO2/km]. 210 190 170 -17% 150 2006-2008 130 110 90 2000 2001 BMW Group Investor Presentation, December 2020 2019-2020 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ~ -20% Page 14#15OUTLOOK CO2 FLEET TARGET ACHIEVEMENT EU 2020. BMW GROUP WILL ACHIEVE CO2 FLEET TARGETS IN THE EU IN 2020. CO2 g/km NEDC BMW Group Fleet EU (BMW, MINI, Rolls Royce, BMW M) ~127* Full compliance with regulatory requirements expected PHEVS (Plug-in hybrids) MINI Countryman SE <0 5% compliance exemption < 104** ~104*** Examples: ■ 48V rollout Aerodynamics Tire portfolio 2 series Active Tourer X1/X2 3 series sedan/touring X3 5 series sedan / touring X5 7 series BEVS (battery electric vehicles) ■ 13 MINI Cooper SE Actuals 2019 Conventional Technologies XEV Portfolio Prognosis Fleet 2020 Phase-in Super Credits Prognosis Target Achievement BMW internal calculation / final communication of 2019 actuals by EU-Commission pending. Prognosis CO2-fleet target achievement 2020. ** BMW Group Investor Presentation, December 2020 *** Estimated target level BMW Group 2020. BMW Group Fleet Target 2020 Page 15#16BMW CONSIDERS THE TOTAL VALUE CHAIN OF BATTERY CELL. FROM CRADLE TO GRAVE. D5 C RECYCLING. RAW MATERIALS AND REFINING. Environmental and social standards. Raw material optimized for chemistry design. Use of recycled raw materials. Securing raw material supply. CELL DESIGN AND PRODUCTION. Optimized performance/ costs based on BMW Group application. Securing production capacity. Reduction CO₂ footprint. BATTERY "2ND LIFE". Cell/module/ pack design. Application on BMW Group sites. Business Models to secure markets. Cell/module/pack design to foster recyclability. Development of recycling processes with ability to close material loops. Securing recycling capacities. BMW Group Investor Presentation, December 2020 Page 16#17SYSTEM INTEGRATION. MASTERING COMPLEXITY. DESIGN. SAFETY. PRODUCING 11,000 CARS PER DAY. 4,500 SUPPLIER LOCATIONS. THOUSANDS OF PARTS PER VEHICLE. HIGH QUALITY AND PRECISION. CUSTOMIZABLE. FLEXIBLE FOR CUSTOMER DEMAND. COMPETITIVE PRICING. PROFITABLE. BMW Group Investor Presentation, December 2020 BMW Concept 14 MANAGING MILLIONS OF CUSTOMERS IN SALES, FINANCIAL SERVICES AND AFTERSALES. 4,800 DEALERS IN 160 COUNTRIES. IN COMPLIANCE WITH REGULATION. ELECTRIFIED AND EFFICIENT CONVENTIONAL ENGINES. AUTOMATED DRIVING. DIGITAL SERVICES AND INTERFACES. ECO-FRIENDLY IN PRODUCTION AND OPERATION. Page 17#18REMOTE SOFTWARE UPGRADE. ONGOING SOFTWARE UPDATES OVER-THE-AIR*. P BMW Maps. New cloud-based navigation with significantly enhanced performance, intuitive destination entry, POI enrichment and excellent accuracy. Update Connected Parking. Parking as part of optimized route planning. New: forecast of parking situation at chosen destination, consideration of the vehicle size within On-Street Parking Information. Android Auto. Wireless Android integration accessible via the Control Display, Navigation App within the Info Display and Head-Up Display. III M&DL 3497 Connected Charging. New connectivity services for more transparency about charging status, range, and optimization of route planning, including charging stops. Update BMW Intelligent Personal Assistant. New voice control functions, including opening the window, changing drive modes, new rules for automatically opening the driver's window based on GPS position, and a new visualization with driver/passenger orientation. New optional digital follow-up features. Adaptive M Suspension. Automatic sensor-controlled adaption of the suspension according to the driving style and road conditions in a fraction of a second. IconicSounds Sport. Authentic drive sound in the car's cabin via the audio system. eDrive Zones. Automatically switch to all-electric driving Mode when entering "Green Zones" as a contribution for a better quality of life in urban areas. BMW Group Investor Presentation, December 2020 *Selected functions require certain hardware equipment Page 18#19DIGITAL SOLUTIONS. INNOVATIVE AND EFFECTIVE USE CASES. Remote software upgrade Installed version: 11/2018.50 Upgrade to version 03/2019.48 can be installed. Installation time approx. 20 min. Info on version 03/2019.48 Start Upgrade now CAR. 11.05m REMOTE SERVICE UPGRADE. PRODUCTION. ARTIFICIAL INTELLIGENCE APPLICATIONS. BMW Laser PURCHASING. RETRACEABILITY BY BLOCKCHAIN. FINANCIAL SERVICES. 100% DIGITAL PROCESSES. QUANTUM COMPUTING RESEARCH. MATERIALS SIMULATION. PROCESS OPTIMIZATION. MACHINE LEARNING. BMW Group Investor Presentation, December 2020 Page 19#20YOUR NOW JOINT VENTURE - THE "MOBILITY POWERHOUSE" WITH A SIGNIFICANT END CUSTOMER BASE AND COVERAGE WORLDWIDE. SHARENOW DAIMLER BMW GROUP FREENOW REACHNOW PARKNOW *DriveNow FREENOW hive clever CAR 2GO Reach Now >>moovel ParkNow kapten_ BEAT ParkMobile Ring Go Dark-line 2.8 47.3 2.1 43.5 CUSTOMERS* in millions GMV RR** CHARGENOW Charge Now DIGITAL CHARGING SOLUTIONS in billions € n/a YTD 9M 2020 0.09 95.8 12.6 124 7.9 134 0.52 279 INTERACTIONS in millions 16 153 6 >1,100 n/a CITIES* BMW Group Investor Presentation, December 2020 * Partially data summation w/o consideration of possible redundancies. ** Due to current uncertain situation not meaningful to estimate FY 2020 value. >1,100 Page 20#21THE ROAD TO AUTONOMOUS DRIVING. Lan 1,800 EXPERT DEVELOPERS. 200,000 TB OF DATA. M.YM 5107 23,000 m² IS THE AREA. 240,000,000 1 TEST KILOMETERS. ON THE ROAD WITH AUTONOMOUS DRIVING. THE BMW PERSONAL COPILOT TECHNOLOGY. INTELLIGENT DRIVING. BMW Group Investor Presentation, December 2020 INTELLIGENT PARKING. INTELLIGENT SAFETY. Page 21#22THE BMW GROUP USES INDUSTRY & CROSS-INDUSTRY COOPERATION & PARTNERSHIPS TO PREPARE ITSELF FOR FUTURE TECHNOLOGIES AND BUSINESS OPPORTUNITIES. JAGUAR ELECTRIFICATION AND CELL TECH LAND- -ROVER northvolt CATL e.on IONITY AUTONOMOUS DRIVING DIGITAL & MOBILITY SERVICES HUBJECT ANSYS Baidu apollo here FCA NAVINFO➤ FIAT CHRYSLER AUTOMOBILES 四维图新 Tencent 腾讯 umicore bEILEE APTIV An Intel Company (intel) Critical Techworks ENCORY a joint venture of BMW Group and ALBA Group. YOUR NOW Joint Venture. SAMSUNG KPIT Continental SHARENOW SAMSUNG SDI TrTech FREENOW \\\MAGNA CHARGENOW Microsoft PARKNOW REACHNOW Hydrogen & FuelCell BMW Group Investor Presentation, December 2020 Page 22#23VERY ATTRACTIVE AND FRESH LINE UP OF THE X FAMILY SUPPORTS GROWTH AND PRODUCT MIX. MMX 4001 M.MJ 9884 1. XD 20011 M YX 5049 BMW X1 BMW X2 BMW X3 BMW X4 MX 5004 BMW X5 BMW Group Investor Presentation, December 2020 NV35283 M XX 7018 BMW X6 BMW X7 દ Page 23#24PREMIUM SEGMENT SHARE. TOTAL MARKET 2020. 30% 25% 20% 27% 26% 15% 14% 10% 5% World Average: 12% 12% 12% 11% 10.8%. 10% 10% - - -9% --9% 8% 7% 5% 0% Germany United Spain Kingdom South Korea Italy USA South Canada Australia Africa China France Russia Turkey Japan BMW Group Investor Presentation, December 2020 Source: Global Insight 02/2020. Page 24#25THE WORLD'S LEADING PREMIUM CAR COMPANY. BMW, ROLLS-ROYCE AND BMW MOTORRAD POST NEW ALL-TIME HIGHS* IN 2019. BM 2,185,793 +3.3% B M 175,162 +5.8% BMW MOTORRAD MINI 347,474 -4.6% MINI BMW Group Investor Presentation, December 2020 * In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets. ROYCE ROLLS 5,100 +21.6% ROLLS R ROYCE Page 25#26BMW, ROLLS-ROYCE AND BMW MOTORRAD DELIVERIES* YTD-09/2020. DECREASE DUE TO CORONAVIRUS PANDEMIC. BM 1,427,392 -11.3% B M 129,599 -5.4% BMW MOTORRAD MINI 208,144 -20.0% , MINI BMW Group Investor Presentation, December 2020 * In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets. ROYCE ROLLS 2,651 -28.5% ROLLS R ROYCE Page 26#27BMW GROUP AUTOMOTIVE. SIGNIFICANT DECREASE IN DELIVERIES* YTD-09/2020 DUE TO CORONAVIRUS PANDEMIC. 15% AMERICAS -25.7% 40% EUROPE MAINLAND CHINA REST OF WORLD -19.7% +6.4% 34% 11% 251,936 units 648,494 units 560,367 units BMW Group Investor Presentation, December 2020 * In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets. -10.7% 177,370 units Sales figures may not add to 100% due to rounding. Page 27#28BMW GROUP AUTOMOTIVE MAJOR MARKETS. DELIVERIES* TO CUSTOMERS YTD-09/2020. Deliveries of automobiles* Europe thereof YTD-09/2020 YTD-09/2019 Change in % 648,494 807,780 -19.7 Germany 203,442 238,222 -14.6 United Kingdom 118,652 177,443 -33.1 Americas 251,936 339,201 -25.7 thereof USA 200,286 265,694 -24.6 Asia 705,789 685,293 +3.0 thereof China Mainland 560,367 526,802 +6.4 thereof BBA retail sales 437,549 392,394 +11.5 Rest of the World 31,948 40,177 -20.5 Total 1,638,167 1,872,451 -12.5 BMW Group Investor Presentation, December 2020 *In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in BMW Group's 2019 Annual Report on page 54. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets. Page 28#29GROWTH IN CHINA. CHINA TOTAL MARKET & PREMIUM SEGMENT. 7 MODELS IN LOCAL PRODUCTION & MORE TO COME +8% Total Market Premium Segment -7% 5 SERIES ளெடுதான் X1 M LEAME +9% 3 SERIES 1 SERIES SEDAN X3 X2 -10% iX3 NEW MODEL YTD 09/2020 FY 2019 BMW Group Investor Presentation, December 2020 Page 29#30BMW AND MINI RETAIL SALES DEVELOPMENT. MAINLAND CHINA 2007 - 2019. Share of JV Sales (through BMW Brilliance Automotive). 59% [in m€] 53% 48% 32% 41% 43% 51% 61% 61% 61% 65% 72% 74% +14.0% 724.7 +7.0% +15.1% 594.4 635.8 +16.7% +1.7% 456.0 463.7 +11.4% 516.4 +19.7% 390.7 538.6 +40.3% 384.1 455.6 326.4 316.2 +37.6% 275.9 282.0 198.5 232.6 141.2 +86.7% 169.0 94.4 +37.5% +27.5% 53.7 90.5 65.8 185.3 192.2 200.2 210.3 180.1 181.7 180.2 186.1 51.6 43.7 138.2 115.3 35.2 30.6 21.0 30.7 46.8 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BMW Group Investor Presentation, December 2020 Import JV Sales in '000 units Sales figures FY 2019. Figures may not add to 100% due to rounding. Page 30#31GLOBAL PRODUCTION NETWORK FY 2019. OFFERING HIGH FLEXIBILITY. 4% 8% 7% 2% 9% 10% ■Munich, Germany ■Dingolfing, Germany Regensburg, Germany BMW 3, 4 series 221,077 BMW 3, 4, 5, 6, 7, 8 series 284,907 BMW 1, 2, 3, 4 series, X1, X2 255,804 11% 10% ■Leipzig, Germany ■Rosslyn, South Africa ■Spartanburg, USA ■Dadong, China* BMW 1,2 series, 13, 18 230,284 BMW 3 series, X3 69,463 BMW X3, X4, X5, X6, X7 411,620 BMW 5 series, X3 286,268 ■ Tiexi, China* BMW 1, 2, 3 series, X1, X2 250,241 ■ Oxford, UK MINI Hatch, MINI Clubman 222,340 Graz, Austria (Magna Steyr)** BMW 5 series 52,231 Born, Netherlands (VDL Nedcar)** Goodwood, UK MINI Convertible, MINI Countryman, BMW X1 174,097 Rolls-Royce 5,455 ■ Assembly plants 100,238 Sum 2,564,025 9% 11% 3% 16% BMW Group Investor Presentation, December 2020 *Joint venture BMW Brilliance Automotive Ltd., Shenyang ** Contract production Page 31#32AUTOMOTIVE SEGMENT. EBIT MARGIN. EBIT margin. [in %] 8.0 2010 11.8 2011 BMW Group Investor Presentation, December 2020 10.8 9.4 9.6 9.2 9.2 8.9 2012 2013* 2014 2015 2016 * 2013 figures have been adjusted in accordance with IAS 8. 1 ** Adjusted value for 2017 in accordance with IFRS 15. 7.2 4.9 2017** 2018 2019 Page 32#33BMW MOTORRAD. WIDER RANGE THAN EVER BEFORE. ADVENTURE TOUR BMW Group Investor Presentation, December 2020 SPORT By Moto ROADSTER HERITAGE URBAN MOBILITY REI Page 33#34FINANCIAL SERVICES AT A GLANCE. FY 2019. BUSINESS LINES (PORTFOLIO SIZE). Global operations in ~60 countries. ~5.5 million serviced retail contracts. CHINA EU BANK APAC W/O CHINA 12% 19% 8% CONSUMER FINANCE DEALER FINANCE MULTIMAKE FINANCE € 104.0 BN. € 21.2 BN. € 6.8 BN. FLEET INSURANCE BANKING BUSINESS 4.0 MN 26% 36% €13.9 BN. CONTRACTS € 10.8 BN. EMEA AMERICAS BMW Group Investor Presentation, December 2020 Page 34#35SIGNIFICANT CONTRIBUTION OF FINANCIAL SERVICES TO BMW GROUP PROFIT. Earnings before Tax (EBT) Financial Services. [in m€] 743 122* *** 439 *** **** 124 2,166 2,207 2,272 2,143 1,975 1,619 1,723 1,351 1.437 1,092 365 * 2007 -292 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BMW Group Investor Presentation, December 2020 * FY-08 EBT includes a negative effect of EUR 1,057 million from additional credit and residual value risk provisions. I ** FY-10 EBT includes a positive effect of EUR 122 million from better than expected off-lease business. I *** 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. I **** FY-12 EBT includes a positive effect of EUR 124 million from better than expected off-lease business. Page 35#36BMW GROUP FINANCIAL SERVICES. DEVELOPMENT OF CREDIT LOSS RATIO. Credit loss ratio.* [in %] 0.46 0.41 0.59 0.84 0.67 0.49 0.50 0.48 0.46 0.37 0.32 0.34 0.25 0.26 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BMW Group Investor Presentation, December 2020 * 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 36#37BMW GROUP. FY 2019 KEY FINANCIALS. BMW Group Earnings before tax (EBT) - Group (in m€) EBT margin (in %) - Group Payout Ratio (in %) - Group FY 2019 7,118 6.8 32.8 FY 2018* Change in % 9,627 -26.1 9.9 -3.1 % points 32.0 +0.8 % points Automotive Segment Sales (units) 2,538,367 2,483,292 +2.2 Earnings before interest and tax (EBIT) (in m€) 4,499 6,182 -27.2 EBIT margin (in %) 4.9 7.2 -2.3% points Net financial assets (m€)* 17,577 19,488 -10.9 Motorcycles Segment Sales (units) 175,162 165,566 +5.8 Earnings before interest and tax (EBIT) (in m€) 194 175 +10.9 EBIT margin (in %) 8.2 8.1 +0.1% points Financial Services Earnings before tax (EBT) (in m€) Return on Equity (in %) Penetration rate (in %) Credit loss ratio (in %) 2,272 15.0 52.2 0.26 2,143 +6.0 14.8 +0.2% points 50.1 +2.1 % points 0.25 +0.01% points BMW Group Investor Presentation, December 2020 *Prior year's figures adjusted due to a change in accounting policy in connection with the adoption of IFRS 16; see note 6 to the Group Financial Statements. In addition, figures for the prior year have been adjusted due to changes in presentation of selected items, which are not material overall. Page 37#38BMW GROUP. Q3 2020 KEY FINANCIALS. BMW Group Earnings before tax - Group (in m€) EBT margin (in %) - Group Q3 2020 2,464 9.4 Automotive Segment Sales (units) 675,592 Earnings before interest and tax (EBIT) (in m€) 1,477 EBIT margin (in %) 6.7 Q3 2019 2,248 Change in % 8.4 621,981 9.6 1% point 8.6 1,515 -2.5 6.6 0.1 % points Motorcycles Segment Sales (units) 52,892 43,744 20.9 Earnings before interest and tax (EBIT) (in m€) 45 35 28.6 EBIT margin (in %) 7.1 6.3 0.8% points Financial Services Earnings before tax (EBT) (in m€) BMW Group Investor Presentation, December 2020 458 597 -23.3 Page 38#39BMW GROUP. YTD-09/2020 KEY FINANCIALS. BMW Group YTD-9/2020 Earnings before tax - Group (in m€) EBT margin (in %) - Group 2,962 4.3 Automotive Segment Sales (units) 1,638,167 Earnings before interest and tax (EBIT) (in m€) 152 0.3 EBIT margin (in %) YTD-9/2019 5,063 6.8 1,872,451 2,674 4.1 Change in % -41.5 -2,5 % points -12.5 -94.3 -3.8 % points Motorcycles Segment Sales (units) 129,599 136,932 -5.4 Earnings before interest and tax (EBIT) (in m€) 110 226 -51.3 EBIT margin (in %) 6.4 12.1 -5.7 % points Financial Services Earnings before tax (EBT) (in m€) BMW Group Investor Presentation, December 2020 1,039 1,797 -42.2 Page 39#40THE BMW GROUP IS COMMITTED TO PLAYING A KEY ROLE IN TOMORROW'S MOBILITY. R&D Ratio.** R&D Expenditure.* [in m€, HGB] [in %, HGB] 8,000 7,000 6.5 6,000 5.6 5.4 5.1 4.8 4.9 5,000 4.6 4,000 7.1 6.3 6.2 6.2 5.7 5.6 5.5 - 6,890 3,000 6,108 6,419 4,792 5,169 5,164 4,566 2,000 3,952 3,208 3,144 3,373 2,864 2,773 2,448 1,000 0 2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 2018 2019 BMW Group Investor Presentation, December 2020 HGB: German Commercial Code. I *R&D Expenditure: Research and development expenses plus capitalized research and development cost minus amortization of capitalized development costs. I ** R&D Ratio: R&D expenditure divided by Group revenues. 1 *** 2013 figures have been adjusted in accordance with IAS 8. Long-term target ratio: 5% -5.5%. Page 40#41TIGHT MANAGEMENT OF CAPITAL EXPENDITURE TO ACHIEVE TARGET RATIO. BMW Group Capital Expenditure.* Capex Ratio.** [in m€] 5.7 5.6 5.2 4.7 4.0 3.8 [in %] 6.5 5.7 5.4. 4.2--4.0 5.2 4.8 Long-term target ratio: <5%. 5,650 4,967 5,029 4,601 4,688 4,151 3,826 3,731 2,777 2,933 2,980 2,720 2,383 2,312 2006 2007 2008 2009** 2010 2011** 2012 2013*** 2014 2015 2016 2017 2018 2019**** BMW Group Investor Presentation, December 2020 * 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 41 ****Capital expenditure - mainly for property, plant and equipment - rose to 5.65 billion euros in 2019. This reflects the recognition of right-of-use assets in the balance sheet for the first time, according to IFRS 16.#42FREE CASH FLOW. AUTOMOTIVE SEGMENT. Free Cash Flow (Automotive).* [in m€] الاسل. 5,792 5,404 4,459 2,713 2,567 4,471 3,809 3,481 3,166 3,003 2,277 1,456 1,156 197 2006 2007 2008 2009** 2010 2011** 2012 2013** 2014 2015 2016 2017 2018 2019 BMW Group Investor Presentation, December 2020 Long-term target: >3 billion. *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. 1 ** 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8. Page 42#43PERFORMANCE PROGRAM. IMPORTANT DECISIONS ALREADY BEING IMPLEMENTED. M ZY 7791 CUSTOMER AND SALES Improvement in sales. performance and optimization of customer interface based on data analytics. VEHICLE Complexity and product variety reduction while maintaining customer benefit. Accelerate the R&D process. PROCESS AND STRUCTURE Optimization of indirect purchasing and material cost reduction. Cross-functional optimization of structures and processes. COOPERATIONS Project-based cooperations for opening up new opportunities. Using industry & cross- industry cooperation to develop future technologies. BMW Group Investor Presentation, December 2020 Page 43#44OUTLOOK 2020. 1A 4354 AUTOMOTIVE Significant decrease in deliveries* MOTORCYCLES Moderate decrease in deliveries FINANCIAL SERVICES Moderate decrease in Return on Equity EBIT-margin between 0 EBIT-margin between and 3% 3 and 5% Significant decrease in Fleet emissions** BMW GROUP Significant decrease in Profit before tax Slight decrease in workforce at year-end Prior to the coronavirus outbreak, the company's planning envisaged the Automotive segment posting a slight increase in sales. The spread of the coronavirus slowed the BMW Group's worldwide vehicle sales. We now expect global sales in 2020 to be much lower than last year. In light of the negative effects of the pandemic and the assessment that deliveries in all markets would return to normal levels after a few weeks, we had published an EBIT margin target of 2% to 4% for the year as a whole by mid-March 2020. Other than assumed by mid-March 2020, we do now expect that the economic environment will only begin to stabilize in the third quarter of the year. Accordingly, we are expanding our guidance for the financial year and are expecting an EBIT margin of between 0 and 3%, with the first half of the year being affected more than H2. *Including the joint venture BMW Brilliance Automotive Ltd., Shenyang. ** EU-28. BMW Group Investor Presentation, December 2020 Page 44#45DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK - TYPICAL FINANCING INSTRUMENTS. FUNDING INSTRUMENTS <1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+ FINANCIAL DEBT AS OF FY 2019 Commercial paper. 2.4% Other -0.6% CP (EMTN) PPS Banks loans ABCP ABS Customers deposits Fed Funds Brokered Certificate of Deposits Industry-typical instruments Bank-typical instruments Bonds BMW Group continues to target a well diversified debt structure BMW Group Investor Presentation, December 2020 Liabilities from customer deposits 13.2% Liabilities to banks 10.3% ABS 17.6% Sum: €111 bn. Bonds 56.0% Page 45#46FOCUS ON LIQUIDITY AND FUNDING IN A CHALLENGING ENVIRONMENT. Solid level of BMW Group Gross Liquidity with EUR 21.8 bn.* Automotive Segment reporting Net Financial Assets of EUR 13.5 bn.* Enhanced strong focus on Working Capital management and prioritised CAPEX planning. Refinancing strategy continues to target a well-diversified debt structure across various regions and instruments. Banking entities within the BMW Group also enable Central Bank access. Best rated European OEM and second best rated globally.** Financial Services business with maturity matched funding profile. Access to an untapped syndicated credit line of EUR 8 bn with a term up to August 2024. Made available by a large consortium of international banks. * BMW Group Investor Presentation, December 2020 Figures as of September 30th 2020 **S&P A neg./ Moody's A2 neg. Page 46#47CORPORATE FINANCE ENSURES SOLVENCY AT ANY TIME. MANAGING RISK ALONG THE ENTIRE VALUE CHAIN. RESEARCH & DEVELOPMENT Financial Risk SUPPLY CHAIN FINANCIAL 18 SERVICES Asset-Management до SALES & A PRODUCTION لملي 3 MARKETING Currencies Liquidity Funding Commodities Interest Rates Strategic Direction Solvent Independent Flexible Value Oriented Increasing planning security Reducing earnings risk Maintaining opportunities Yield oriented Risk optimized Chances Operational Implementation BMW Group Investor Presentation, December 2020 Minimum Liquidity Concept Target Debt Structure Financing Follows Markets Selective Approach Relative Value Natural Hedging Asset-Liability-Studies Liability-driven investment Lifecycle concept Sustainability & Governance Page 47#48GLOBAL MARKETS ACCESS. TREASURY ORGANIZATION ENSURES 24 HOUR MARKET COVERAGE. Stand Alone Bonds Asset Backed Securities 144A/RegS Bonds 7 bn. USD CP Program Asset Backed Securities BMW Bank North America Salt Lake City Treasury Center Amerika Woodcliff Lake BMW Group Investor Presentation, December 2020 50 bn. EMTN Program 5 bn. EUR & 2 bn. French CP Program Asset Backed Securities Treasury Center Europa Den Haag BMW Bank Group of Institutions Europe Munich BMW Group Treasury Munich Financial and Panda Bond Asset Backed Securities Treasury Center China Beijing Stand Alone Bonds Asset Backed Securities Asset Backed Securities Stand Alone Bonds 15 bn. IRS CP Program Treasury Center Asia Singapore 2.5 bn. AMTN Program Asset Backed Securities Stand Alone Bonds Asset Backed Securities Page 48#49BMW GROUP INVESTOR RELATIONS. CONTACTS. Veronika Rösler Head of Investor Relations +49-89-382-25387 [email protected] Patrick Neumayer Equity & Debt IR Gerald Schmutz Equity & SRI IR +49-89-382-24272 [email protected] +49-89-382-62393 [email protected] Tanja Seiler Equity & SRI IR Andreas Stöffler Equity IR & Annual General Meeting (AGM) Mirjam Wipfler Equity & Debt IR +49-89-382-75161 [email protected] +49-89-382-17944 [email protected] +49-89-382-76974 [email protected] http://www.bmwgroup.com/ir IR Contact BMW Group Investor Relations Petuelring 130 80788 Munich [email protected] BMW Group Investor Presentation, December 2020 Page 49#50BMW GROUP INVESTOR RELATIONS. FINANCIAL CALENDAR 2021. 17.03.2021 Integrated Annual Report 2020 18.03.2021 Analyst and Investor Conference 2021 07.05.2021 Quarterly Statement to 31 March 2021 12.05.2021 Annual General Meeting 2021 03.08.2021 Quarterly Report to 30 June 2021 03.11.2021 Quarterly Statement to 30 September 2021 BMW Group Investor Presentation, December 2020 Page 50#51BMW GROUP INVESTOR RELATIONS. VIRTUAL CONFERENCES & ROADSHOWS 2020. 03.-04.12.2020 German Investment Seminar (Commerzbank) 03.-04.12.2020 German Corporate Conference (Kepler Cheuvreux, UniCredit) 24.03.2021 Global ESG Conference (J.P. Morgan) BMW Group Investor Presentation, December 2020 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. For consumption and emissions data, please visit our homepage: www.bmw.com BMW Group Investor Presentation, December 2020 Page 52