#1BMW GROUP CHINA BANKERS DAY 2021. BIRGIT BÖHM I 06th July 2021 Senior Vice President Finance and Group Treasurer of BMW Group. M XC 722E O · O 1100 77111#2AGENDA. Group Strategy Financial performance Review and Outlook 2021 China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 EX3 M.XC 722E Page 2#3CHALLENGES. MANIFOLD AND SIMULTANEOUS. CORONAVIRUS PANDEMIC COMPETITION. CLIMATE CHANGE. URBANISATION. China Bankers Day - Treasury Update | Birgit Böhm 1 6th July 2021 DIGITALIZATION. REGULATION. Page 3#4FOCUS AREAS OF BMW GROUP STRATEGY. MINI ROLLS-ROYCE KOTOR CARS LTD - FIRST-CLASS INDIVIDUAL MOBILITY – We play a pioneering role in setting standards for the individual premium mobility of tomorrow. It combines pleasure and responsibility without compromise. SUSTAINABILITY - The BMW Group is a holistically sustainable company taking responsibility for sustainable future mobility. Every investment in BMW is a sustainable investment. INNOVATION & FLEXIBILITY - The BMW Group is an innovation pioneer in the automotive industry. Our business model is based on constant transformation and flexibility - successful for over 100 years. ELECTRIFICATION - Due to our flexibility and permanently transformed plants, we will have a convincing battery-electric vehicle offer covering 90% of our current market segments from 2023. DIGITALIZATION - We set standards in the digitalization and connectivity of our vehicles and use our competitive edge in remote software upgrades. FINANCIAL PERFORMANCE - We offer financial stability due to our strong balance sheet and industry-leading credit ratings*. We set ambitious profitability and cash flow targets and are a reliable dividend payer. میرا China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 *Best credit rating in Europe, second best credit rating worldwide Page 4#5ENSURE LONG-TERM SUCCESS. BMW GROUP STRATEGIC OBJECTIVES. > 10% GROUP EBT MARGIN ↑8-10% AUTO EBIT MARGIN ≥ 40% RETURN ON CAPITAL EMPLOYED IN THE AUTOMOTIVE SEGMENT 2025 I ↑≥ 25% MINIMUM SHARE OF ELECTRIFIED CARS IN TOTAL DELIVERIES ↑22% PERCENTAGE OF WOMEN IN MANAGEMENT POSITIONS IN THE BMW GROUP D' ▼ China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 This is a simplified representation. Detailed explanations of the key figures as well as the identification of the depth of the audit can be found in the respective report chapters 2030 80% REDUCTION OF CO2 EMISSIONS PER VEHICLE IN PRODUCTION (REFERENCE YEAR 2019) ↓>40% REDUCTION OF CO2 EMISSIONS IN THE USE PHASE OF THE VEHICLE PER KILOMETRE DRIVEN (REFERENCE YEAR 2019) ↓≥20% REDUCTION OF CO2 EMISSIONS IN THE SUPPLY CHAIN (REFERENCE YEAR 2019) Page 5#6THE GREENEST CAR COMES FROM BMW. THE BMW GROUP IS A HOLISTICALLY SUSTAINABLE COMPANY. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 Our clear claim is that the GREENEST ELECTRIC VEHICLE comes FROM BMW. We are reducing CO2 emissions per vehicle over the entire value chain. This is what sets the BMW Group apart. Oliver Zipse Chairman of the Board of Management Page 6#7SUBSTANTIAL 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. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 Page 7#8C BMW CONSIDERS THE TOTAL VALUE CHAIN OF BATTERY CELL. FROM CRADLE TO GRAVE. D5 +IIII 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. RECYCLING. Cell/module/pack design to foster recyclability. Development of recycling processes with ability to close material loops. Securing recycling capacities. China Bankers Day - Treasury Update | Birgit Böhm 1 6th July 2021 Page 8#9AS THE FIRST PREMIUM OEM BMW GROUP PUBLISHED AN INTEGRATED REPORT AT THE ANNUAL CONFERENCE 2021. BMW GROUP REPORT 2020 We are consistently pursuing the path to integrated corporate steering including sustainability and mobility KPIs. We delivered successfully on the goals set until 2020. We have set ourselves new challenging sustainability and mobility targets for 2030. The CO2 targets are officially validated by the Science-Based Targets Initiative (SBTI). In the following years, we will report transparently on the progress of target achievement. OUR RESPONSIBILITY. OUR FUTURE. Report on the BMW Group's economic performance and its ecological and social contributions. LINK TO THE ONLINE REPORT BMW GROUP China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 2020 TARGETS ACHIEVED Strategic targets 2020 53% CO2 EMISSIONS IN THE EUROPEAN NEW VEHICLE FLEET IN THE PERIOD FROM 1995 TO 2020 100% ELECTRICITY PURCHASED FOR THE BMW GROUP'S PLANTS WORLDWIDE SINCE 2020 FROM RENEWABLE ENERGY SOURCES 17.8% PROPORTION OF WOMEN IN MANAGEMENT POSITIONS IN THE BMW GROUP PRODUCTS AND SERVICES PRODUCTION, PURCHASING AND SUPPLIER NETWORK EMPLOYEES AND SOCIETY This is a cimplified depiction. Detailed explanations of KPle and be normanding assurance level are provided in the relevant chapters of the report. Page 9#10BMW'S CAPITAL MARKET PRESENCE FOLLOWS THE GROUPS' HOLISTIC DIRECTION AND IS CONSISTENT TO ALL STAKEHOLDERS. Single "green" labeled financing Holistic concept of sustainability "Green" financing of selected projects - may suggest that other projects are not green. Financial market appearance in line with holistic sustainable corporate strategy - consistent and convincing. 0| * { (0) China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 BMW GROUP Page 10#11OUR THREE PHASES OF TRANSFORMATION. ။ M.GI 3315 2013 Pioneering e-mobility. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 M.FA 331E 目 Today Electrification across our entire portfolio. From 2025 E-mobility first: High BEV volume and the next level of digitalization. Page 11#12BY 2023 90% OF OUR SEGMENTS ARE COVERED BY AT LEAST ONE BEV. OUR CLEAR E-MOBILITY ROADMAP. Phase I Pioneering e-mobility 5502 SE 3513 2013 BMW i3 MAXC 5009 BMW i8 (PHEV) MINI Electric 2019 China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 2020 Phase II Electrification across our segments BMW iX3 AC 575E BMW iX BMW X1 BEV* BMW 5 series BEV* BMW 7 series BEV* BMW i4 2021 *Schematic illustration of future launch dates 2022 MINI Countryman BEV* 2023 Page 12#1310 MILLION BEVS ON THE ROAD WITHIN THE NEXT TEN YEARS. LEADING PROVIDER OF BATTERY-ELECTRIC VEHICLES. PHASE I PHASE II PHASE III Until 2025 2025-2030 Ø +50% BEV SALES p.a. Ø +20% BEV SALES p.a. 2 MILLION BEVS delivered to customers by the end of 2025 2023 BEVS available for 90% of today's MARKET SEGMENTS 2020 China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 2025 2030 BEVS will account for 50% of GLOBAL SALES 2030 BEVS available for 100% of todays MARKET SEGMETS 2030 Page 13#14THE FIRST EVER BMW i4. E-MOBILITY WITHOUT COMPROMISE. UP TO 590 KM RANGE (BASED ON WLTP). M.DI 331 E ே BUILT IN MUNICH. UP TO 390 KW / 530 HP. 5TH GENERATION BMW eDRIVE WITHOUT ANY RARE EARTHS. 0 TO 100 KM/H IN AROUND 4 SECONDS.#15THE FIRST EVER BMW iX. NEXT ERA, NEXT LEVEL i. COMBINED POWER CONSUMPTION < 21 KWH/100KM. ELECTRIC MOTORS W/O RARE EARTHS. M EV 5004E >370 KW/500 HP. UP TO 630 KM ELECTRIC RANGE (WLTP). ELECTRIC ALL-WHEEL DRIVE WITH TWO ELECTRICALLY DRIVEN AXLES. Specifications for BMW iX xDrive50 RECHARGING 120 KM IN JUST TEN MINUTES.#16NEUE KLASSE 2025. UNCOMPRIMISINGLY ELECTRIC, DIGITAL AND CIRCULAR. ELECTRIC FIRST Uncompromisingly optimised for electric drivetrains. Aim of matching range and manufacturing cost of state-of-the-art combustion engines. 1 DIGITAL FIRST Completely novel user experience. Even more individually configurable and bookable features. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 SECONDARY FIRST Proportion of secondary materials will be sharply increased. Focus on greatly reducing resource consumption. Page 16#17DIGITALIZATION ADDRESSES THE OVERALL COMPANY. CONSISTENT DIGITALIZATION TO EXPLOIT POTENTIALS IN ALL BUSINESS SEGMENTS. BUSINESS PROCESSES. PRODUCTS. CUSTOMER INTERACTION. SMART LOGISTICS CONNECTIVITY DIGITAL CUSTOMER EXPERIENCE INNOVATIVE AUTOMATION and REMOTE SOFTWARE UPGRADE DIGITAL AFTERSALES UPGRADES ASSISTANCE SYSTEMS AUTOMATED DRIVING VIRTUALIZATION DIGITAL PERSONALISATION OF THE VEHICLE QUANTUM COMPUTING CATENA-X AUTOMOTIVE NETWORK FOCUS ON CUSTOMER CENTRICITY. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 DIGITAL FINANCING PROCESS AT FINANCIAL SERVICES Page 17#18THE BMW GROUP HAS A STRONG FOOTPRINT IN CHINA. III HIGH VOLTAGE BATTERY ASSEMBLY 2 VEHICLE PLANTS 1 ENGINE PLANT + 3 NEW VEHICLE PLANTS 4 DEVELOPMENT SITES 300+ 1ST TIER SUPPLIERS 5 REGIONAL OFFICES & 600+ SALES OUTLETS Production: Preparing the acquisition of an additional 25% shareholding in the BBA Joint Venture in 2022 for BMW and developing the Spotlight Joint Venture for MINI while ramping up new Shenyang and Zhangjiagang plants. R&D and Digitalization: Leveraging local competencies by expanding our footprint in China. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 FIZ: Forschungs- und Innovationszentrum, Munich (R&D center, Munich) Page 18#19BMW GROUP CHINA - STRATEGIC TARGETS. ALSO IN FUTURE CHINA OFFERS UNIQUE MARKET POTENTIAL. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 PRODUCTS PERFECTLY CUSTOMIZED FOR CHINESE REQUIREMENTS. LOCAL PARTNERSHIPS TO ACCESS TECHNOLOGIES AND COMPETENCIES. LOCALISATION OF PRODUCTION AND SUPPLY CHAIN, WHERE SUITABLE. MAXIMUM SYNERGIES BETWEEN BMW GROUP HEADQUARTERS AND THE CHINA TEAM. Page 19#20AGENDA. Group Strategy Financial performance Review and Outlook 2021 China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 EX3 M.XC 722E Page 20#21BMW GROUP. FY 2020 KEY FINANCIALS. BMW Group Earnings before tax (EBT) - Group (in m€) EBT margin (in %) - Group Payout Ratio (in %) - Group FY 2020 5,222 5.3 32.5 FY 2019 Change in % 7,118 -26.6 6.8 -1.5% points 32.8 -0.3% points Automotive Segment Sales (units)* 2,325,179 2,537,504 -8.4 Earnings before interest and tax (EBIT) (in m€) 2,162 4,499 -51.9 EBIT margin (in %) 2.7 4.9 -2.2% points Free Cash Flow (m€) 3,395 2,567 +32.3 Motorcycles Segment Sales (units)* 169,272 175,162 -3.4 Earnings before interest and tax (EBIT) (in m€) 103 194 -46.9 EBIT margin (in %) 4.5 8.2 -3.7 % points Financial Services Earnings before tax (EBT) (in m€) Return on Equity (in %) Penetration rate (in %) 1,725 11.2 49.8 0.21 2,272 15.0 52.2 0.26 -24.1 -3.8% points -2.4 % points Credit loss ratio (in %) China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 -0.05% points *In connection with a review of its sales practices and related reporting practices, the BMW Group has examined prior-period vehicle delivery data and ascertained that certain vehicle deliveries were not reported in the correct periods. The BMW Group has revised its vehicle delivery data retrospectively for previous years. Further information on this matter is provided in the BMW Group Report 2020, pp. 128. The BMW Group continues to develop policies and procedures relating to vehicle delivery data, whereby it is not always practicable to revise the data for prior periods. This applies in particular to minor revisions that would not have a material impact on the comparability of reporting periods. Page 21#22RETAIL TREND OVER THE YEAR SHOWS REGIONAL DIFFERENCES. CHINA CONTINUES TO GROW; US & EU RECOVERING, BUT STILL NOT AT PRE- CRISIS LEVEL. Retail BMW + MINI 2021 relative to ACT 2019 (blue line), in % US St 160 140 120 100 80 60 40 20 0 JAN Q1 Europe חוו APRIL JAN Vs. ACT 19 Vs. ACT 20 -0,7% +20,1% Q1 APRIL JAN Vs. ACT 19 Vs. ACT 20 -13,5% +8,4% China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 ACT 2019 (100%) ACT 2020 Mainland China Q1 Vs. ACT 19 Vs. ACT 20 +36,4% +97,3% APRIL Page 22#23BMW GROUP. Q1 2021 KEY FINANCIALS. BMW Group Earnings before tax - Group (in m€) EBT margin (in %) - Group Q1 2021 3,757 14.0 Q1 2020 798 Change in % 3.4 +10.6% points Automotive Segment Sales (units)* 636,606 Earnings before interest and tax (EBIT) (in m€) EBIT margin (in %) Free Cash Flow (m€) 477,111 2,236 229 9.8 1.3 +8.5% points 2,522 -2,218 +33.4 Motorcycles Segment Sales (units)* 42,592 34,774 +22.5 Earnings before interest and tax (EBIT) (in m€) 135 72 +87.5 EBIT margin (in %) 17.9 12.9 +5.0% points Financial Services Earnings before tax (EBT) (in m€) 787 484 +62.6 China Bankers Day - Treasury Update | Birgit Böhm | 6th July 2021 *In connection with a review of its sales practices and related reporting practices, the BMW Group has examined prior-period vehicle delivery data and ascertained that certain vehicle deliveries were not reported in the correct periods. The BMW Group has revised its vehicle delivery data retrospectively for previous years. Further information on this matter is provided in the BMW Group Report 2020, pp. 128. The BMW Group continues to develop policies and procedures relating to vehicle delivery data, whereby it is not always practicable to revise the data for prior periods. This applies in particular to minor revisions that would not have a material impact on the comparability of reporting periods. Page 23#24IN SPITE OF THE CORONAVIRUS PANDEMIC WE ARE GUIDING FOR AN AUTO EBIT MARGIN CORRIDOR IN 2021 WHICH IS JUST SLIGHTLY BELOW OUR STRATEGIC TARGET RATIO OF 8%-10%. EBIT margin. [in %] 8.0 11.8 10.8 9.4 9.6 9.2 9.2 8.9 7.2 4.9 2.7 2010 2011 2012 2013** 2014 2015 2016 2017** 2018 2019 2020 2021 Mid-term target ratio: 8%-10%. Guidance for 2021*: 7% -9%. * China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 Including an increase of the corridor of 6-8% by around 1 percentage point due to the revaluation of the provision for the ongoing EU antitrust proceedings. ** 2013 figures have been adjusted in accordance with IAS 8. *** Adjusted value for 2017 in accordance with IFRS 15. Page 24#25OUTLOOK 2021. LA 4354 AUTOMOTIVE Solid increase in deliveries¹ Significant increase in share of electrified vehicles in deliveries Significant decrease CO2- Emissions New Vehicle Fleet² Moderate decrease in CO2 emissions per vehicle produced³ EBIT-margin between 7 and 9% Significant increase in Return on capital employed MOTORCYCLES Solid increase in deliveries EBIT-margin between 8 and 10% Significant increase in Return on capital employed5 FINANCIAL SERVICES Return on equity between 12 and 15% BMW GROUP Significant increase in Profit before tax Slight decrease in workforce at year-end Slight increase in share of women in management positions in the BMW Group Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2020: 602,247 units). 2EU including Norway and Iceland; since 2018 value converted WLTP (Worldwide Harmonised Light Vehicles Test Procedure) basis. 3Efficiency indicator calculated from Scope 1 and Scope 2 CO2 emissions (market-based method according to GHG Protocol Scope 2 Guidance. Other climate-impacting gases than CO2 not included) from vehicle production, without motorcycles, minus CHP losses divided by the total number of vehicles produced, incl. BMW Brilliance Automotive Ltd. joint venture, Shenyang, not including the vehicles from the Magna Steyr and Nedcar contract production plants. 4Including an increase of the corridor of 6-8% by around 1 percentage point due to the revaluation of the provision for the ongoing EU antitrust proceedings. 5Unlike the other key performance indicators, the ROCE forecast for the Automotive and Motorcycles segments is based on the change in percentage points. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 Page 25#26THE PERFORMANCE PROGRAMME CONTRIBUTES SUBSTANTIALLY TO OUR EARNINGS AND FREE CASHFLOW. MKB184E 50 IMPROVE SALES PERFORMANCE Steering of our sales activities even more granular, e.g. at the level of sales channel, markets and models. Rollout of all performance levers worldwide in 2021. Best customer support for service and spare parts offerings and increasing efficiency in spare parts logistics. OPTIMISE PRODUCT OFFER AND COMPLEXITY Drive train variants reduced by up to 50% until 2025. In recent years, we have already reduced our portfolio of diesel and gasoline engines by almost 30%. DECREASE PROPORTIONAL AND FIXED COSTS Continuation of our measures to optimize our personnel structures and reduce costs. Facility management: further reduction of fixed costs. OPTIMISE INVESTMENT AND WORKING CAPITAL Optimise product planning at early stage for efficient plant integration and investment. Working capital: further reduction (in particular for finished goods). The programme continues to show its effects in 2021 and subsequent years. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 Agenda of the performance programme 2021 - selected examples. Page 26#27THE BMW GROUP IS COMMITTED TO PLAYING A KEY ROLE IN TOMORROW'S MOBILITY. The R&D ratio is expected to remain at prior year level in 2021. R&D Expenditure.* [in m€, HGB] R&D Ratio.** [in %, HGB] The capitalization ratio in 2021 is expected to be within a corridor of 35-40%. 8,000 7,000 6,000 5.6 5.4 5.1 4.8 4.9 5,000 4.6 4,000 7.1 6.3 6.2 6.3 6.2 5.7 5.6 5.5 6,890 3,000 6,108 6,419 6,279 4,792 4.566 5,169 5,164 2,000 3,952 3,144 3,373 2,864 2,773 2,448 1,000 0 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 2016 2017 2018 2019 2020 China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 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 27#28THE BMW GROUP CONTINUES TO HAVE THE BEST RATINGS OF ALL EUROPEAN CAR MANUFACTURERS. The overall company profile supports the commitment towards a single “A” rating Leading Position as Premium Car Manufacturer 18 Geographic Diversification Above-Average Profitability dh Strong Credit Metrics. China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 BMW GROUP 四 נכנס (0)) Positive Free Cash Flow Low Level of adjusted Debt Strong Liquidity Position Supportive Financial Policy Page 28#29THANK YOU FOR YOUR ATTENTION. HKC 722E BRIDGESTONE China Bankers Day - Treasury Update | Birgit Böhm 16th July 2021 Page 29