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/ Premium brand strategy

2003

Strategy Number ONE 2007

 VISION
We are Number ONE.
We inspire people on the move:
We shape tomorrows individual COMPETITIVE
premium mobility.
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.

BMW Investor Presentation, May 2016 Page 4

 LEADERSHIP DRIVEN BY ASPIRATIONAL BRAND PORTFOLIO
AND HIGHLY EMOTIONAL PRODUCTS. BRANDS & DESIGN

Premium Brands Design

Luxury

Compact/Small

Now
Dynamic Target group Efficient

BMW Investor Presentation, May 2016 Page 5

ATTRACTIVE PREMIUM BRANDS PROVIDE THE BASIS
FOR A FURTHER EXPANSION OF THE PRODUCT PORTFOLIO. BRANDS & DESIGN

BMW Investor Presentation, May 2016 Page 6

 SIXTH GENERATION OF BMW 7 SERIES:
THE NEW BENCHMARK IN THE LUXURY SEGMENT. PRODUCTS

BMW Investor Presentation, May 2016 Page 7

KEEPING THE LEAD FURTHER EXPANSION OF THE
X-PORTFOLIO PLANNED UNTIL 2020. PRODUCTS

BMW X1 BMW X3 BMW X4

BMW X5 BMW X6 BMW X7

BMW Investor Presentation, May 2016 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 BMW M235i Coup

AUTOMOBILES

BMW 420i Coup with

CORE BRAND MODEL M sport package
WITH M SPORT PACKAGE

TOP MODEL BMW 228i Coup

CORE BRAND

BMW Investor Presentation, May 2016 Page 9

iPERFORMANCE AND BMW i
BALANCING THE PRODUCT PORTFOLIO . PRODUCTS

DYNAMIC EFFICIENT

BMW brand framework for product portfolio

M Core Models M Performance Core Models PHEVs BEVs

High Performance Electrified Visionary

Performance Champions Efficiency Mobility
Champions

The interplay of BMW M and BMW i enhances competitive differentiation

(representation of the scope of the BMW brand).

BMW Investor Presentation, May 2016 Page 10

SEVEN ELECTRIFIED BMW MODELS:
FURTHER MODELS TO COME. PRODUCTS

BMW i3 BMW i8

BMW 225xe
iPerformance

BMW X5 xDrive40e
iPerformance

BMW 330e BMW 740e

BMW 530Le
iPerformance iPerformance
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

BMW Investor Presentation, May 2016 Page 12

PROJECT i 2.0:
THE BMW i NEXT IS THE FUTURE OF MOBILITY. TECHNOLOGIES

Connectivity
Sustainability
Lightweight Purpose-built
construction

Interior of the future BMW i NEXT Autonomous

driving

New sportiness
Electrification

Highly automated driving Artificial Intelligence

BMW Investor Presentation, May 2016 Page 13
ENSURING OUR POSITION AS TECHNOLOGY LEADER.
TECHNOLOGIES

Technology and innovation leader

Future focus: Future focus:

Powertrain technologies Digitalization

Efficient
Artificial Autonomous
Dynamics Hydrogen Connectivity
Intelligence driving
NEXT
BMW Investor Presentation, May 2016 Page 14
THE NEXT STEPS ARE HIGHLY AND FULLY AUTONOMOUS
DRIVING. TECHNOLOGIES

Human Transition of responsibility Machine

TODAY
Awareness for General awareness
Early take over
warning systems Traffic control
such as cruise (e.g. congestion
control/ speed No take over request No driver
assistant)
assistant Take over request (Mind-off)
(Eyes-off)
No active (Hands-off)
(Feet-off)
assistance system
0 Driver Only 1 Assistance 2 Semi-Automation 3 High-Automation 4 Full-Automation 5 Autonomous

BMW Investor Presentation, May 2016 Page 15

MASTERING THE BASIC TECHNOLOGIES IS THE
FIRST STEP FOR HIGHLY AUTOMATED DRIVING. TECHNOLOGIES

Sensor systems Artificial Intelligence

Regulatory
requirements

Intelligent
autonomous vehicle

Digital maps / HERE Digital reality model

BMW Investor Presentation, May 2016 Page 16

LEVERAGING POTENTIAL OF DIGITALIZATION AND
CONNECTIVITY. CUSTOMER EXPERIENCE & SERVICES

BMW Connected

Mobility Cloud

BMW Investor Presentation, May 2016 Page 17

INTELLIGENT AND INNOVATIVE PRODUCTION -
DIGITIZATION CREATES NEW POTENTIAL. DIGITALIZATION

Data and Analytics Smart Logistics Innovative Automation Additive Manufacturing

16
14
12
10
8
6
4
2
140
0 4
6 135
8
10
12 130
14
16 125
18

Internet-of-Things
Autonomous Transport Systems Collaborative Robot Systems Laminate or Metal
Architecture

Data Management for Planning Global Supply Chain Context-sensitive Worker Serial Production
and Control Visibility and Control Support Systems and Rapid Prototyping

Cyber Security Integrated Supplier Networks Reorganization of Work New Individualization

BMW Investor Presentation, May 2016 Page 18

BMW MOTORRAD.
WIDER RANGE THAN EVER BEFORE. PRODUCTS

URBAN
ADVENTURE TOUR SPORT ROADSTER HERITAGE MOBILITY

NEW SINCE 2014 NEW SINCE 2012

BMW Investor Presentation, May 2016 Page 19

 MAINTAINING THE AUTOMOTIVE EBIT MARGIN IN THE CORRIDOR
OF 8-10% DESPITE ONGOING CHALLENGES. PROFITABILITY

Market and
Regulatory
Future costs competitive Volatility
requirements
environment

10 %

Ongoing efficiency
measures to compensate
the cost burden
8%

Expansion & optimization Retail sales growth New technologies/ Reduction of Benefits from Efficiency
product portfolio Auto und Motorcycle equipment options material costs digitalization measures
FINANCIAL TARGETS 2020: SUSTAINABLE GROWTH AND SOLID
PROFITABILITY DESPITE CHALLENGES. PROFITABILITY

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%
Automotive Segment
EBIT margin 9.2% 8 -10%
Free Cashflow 5.4 bn >3 bn
Motorcycles Segment
Sales volume 136,963 units > 200,000 units
EBIT margin (from 2017) 9.1% 8 -10%
Financial Services Segment
Return on Equity 20.2% >18%
* Investments in property, plant and equipment and other intangible assets (without capitalized development costs).

BMW Investor Presentation, May 2016 Page 21

BMW GROUP
BUSINESS UPDATE

BMW Investor Presentation, May 2016 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%

BMW Investor Presentation, May 2016 Page 23

BMW GROUP AUTOMOTIVE: BALANCED SALES DISTRIBUTION AND SOLID
YTD APRIL 2016 GROWTH OF +4.9%.
Asia (w/o) China
Americas Europe Mainland China
& Rest of World

+9.9%

+6.0%
-8.1%
+7.7%

19% 46% 22% 13%

138,033 units 341,195 units 162,221 units 94,629 units

BMW Investor Presentation, May 2016 Source: Data for individual regions include BMW and MINI vehicles only, YTD April 2016 (figures may not add to 100% due to rounding) Page 24
BMW GROUP AUTOMOTIVE MAJOR MARKETS.
DELIVERIES TO CUSTOMERS YTD APRIL 2016.

Deliveries of automobiles YTD 2016 YTD 2015 Change in %

Europe 341,195 310,586 9.9
thereof Germany 1) 100,201 94,466 6.1
Great Britain 74,968 68,235 9.9
France 27,784 24,752 12.2
Italy 26,579 23,369 13.7

Americas 138,033 150,119 -8.1

thereof USA 111,199 123,697 -10.1

Asia 234,463 220,803 6.2

thereof China Mainland 162,221 152,970 6.0

thereof BBA retail sales 103,650 96,185 7.8
Japan 22,936 21,505 6.7

Rest of the World 22,387 20,042 11.7

Total 736,078 701,550 4.9

1) Registrations
BMW Investor Presentation, May 2016 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% 61% 61% 63% 64%
+1.7%
+16.7 %
in 000 units 456.0 463.7
+19.7 %
390.7
Import JV Sales +40.3 %
326.4
275.9 282.0
+37.6 % 198.5
232.6 141.2
+6.0%
+86.7 %
169.0 94.4 162.2
153.0
+37.5 % 53.7
+27.5 %
+41.8 % 90.5 96.2 103.7
185.3 192.2 180.1 181.7
65.8
51.6 43.7 138.2
36.4 35.2 115.3
30.6 56.8 58.6
22.6 30.7 46.8
13.8 21.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2015 YTD 2016

BMW Investor Presentation, May 2016 Source: BMW Group Retail data, YTD April 2016 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
5
2.4
1.2
0
Germany United Italy USA Turkey France S. Korea Russia China Japan Brazil India
Kingdom

BMW Investor Presentation, May 2016 Source: Global Insight 12/2015 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 Region (000 units) 2015 2020 Chg.

North America, CAGR +2.3%
World 7,749 9,012 16%
3,000 Rest of World 605 759 25%
BRIKT* 475 612 29%
2,000 China (Mainland) 1,793 2,345 31%
Japan 225 229 2%
1,000 North America 1,944 2,173 12% Western Europe, CAGR +1.3%
Western Europe 2,707 2,894 7%

0
2015 2016 2017 2018 2019 2020

BMW Investor Presentation, May 2016 Source: Global Insight 04/2016 *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 Q1-2016 Q1-2015 Change in %

Earnings before tax Group (in m) 2,368 2,269 +4.4
EBT margin (in %) Group 11.4 10.8 -
Automotive Segment
Automotive sales (units) 557,605 526,669 +5.9
Earnings before interest and tax (EBIT) (in m) 1,763 1,794 -1.7
EBIT margin (in %) 9.4 9.5 -
Net financial assets (m) 17,511 15,037 +16.5
Motorcycles Segment
Sales (units) 33,788 31,370 +7.7
Earnings before interest and tax (EBIT) (in m) 94 115 -18.3
EBIT margin (in %) 16.2 20.3 -
Financial Services
Earnings before tax (EBT) (in m) 570 559 +2.0
Penetration rate (in %) 46.1 44.9 -
Credit loss ratio (in %) 0.29 0.33 -

BMW Investor Presentation, May 2016 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 9.5 9.4

9.2
Target corridor:
8.0
8-10 %
6.4 6.4

1.4
-0.6

2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 Q1-2015Q1-2016

BMW Investor Presentation, May 2016 * 2013 figures have been adjusted in accordance with IAS 8. 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
3,481
3,166
3,003 Target:
> 3 billion
2,277

1,456
1,060
532
n.a. 197

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
BMW Investor Presentation, May 2016 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. Page 31
** 2009, 2011, 2013 figures have been adjusted in accordance with IAS 8.
 CAPITAL EXPENDITURE BMW GROUP.
TARGET RATIO BELOW 5% OF GROUP REVENUES. PROFITABILITY

BMW Group Capital Expenditure* Capex Ratio**

[in m] [in %]
6,000 10

5,000
8

6.5 7
4,000
5.7 5.6 5.7
5.2 5.4 6
Target ratio:
4.7
3,000
4.2
5 <5%
3.8 4.0
4,967 4
4,601
2,000 4,151
3,826 2.6 3

2,777 2,933 2,980 2,720 1.9

1,000
2,383 2,312 2

1
548 405
0 0

2006 2007 2008 2009 2010 2011 2012 2013*** 2014 2015 Q1-2015 Q1-2016

* Capital Expenditure: additions to property, plant and equipment and other intangible assets (definition has been changed in 2016).
BMW Investor Presentation, May 2016 ** Capital expenditure ratio: Capital expenditure divided by Group revenues. Page 32
*** 2013 figures have been adjusted in accordance with IAS 8.
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

BMW Investor Presentation, May 2016 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 5. Access to Banks, Investors & Rating

6. Value Orientation
Instruments Agencies

7. Financial Robustness in Times of Crisis

BMW Investor Presentation, May 2016 Page 34

DIVERSIFIED FUNDING MIX WITH A COMBINATION OF INDUSTRY AND BANK
TYPICAL FINANCING INSTRUMENTS.

Funding Instruments Financial Debt as of 31.03.2016

Others Structured Financing

1.6% 3.1%
<1yr 1yr 2yrs 3yrs 4yrs 5yrs 7yrs 10yrs+
Fed Funds
0.5%
CP (EMTN) PPs Bonds SSD
Bank Loans 2.4%
8.1%
Banks loans

ABCP ABS
Public Bonds Brokered CD's
34.8% 5.7%
Customers deposits
Customer Deposits
Fed
BCDs 86.5 bn * BMW Bank
Funds
9.7%

Industry-typical Bank-typical
instruments instruments ABS
PP's 15.3%
12.7% CP
6.2%

BMW Investor Presentation, May 2016 *Adjusted, excluding currency and interest rate derivatives. Page 35
BMW GROUP INVESTOR RELATIONS.
CONTACTS.

Torsten Schssler Bernd Daser Patrick Neumayer

Head of Investor Relations Debt & Equity IR Equity IR

+49-89-382-25387 +49-89-382-31684 +49-89-382-24272

torsten.schuessler@bmw.de bernd.daser@bmw.de patrick.neumayer@bmw.de

Tanja Seiler Andreas Stffler Ziye Zhou

Equity & SRI IR Equity IR Debt & Equity IR

+49-89-382-75161 +49-89-382-17944 +49-89-382-16190

tanja.seiler@bmw.de andreas.stoeffler@bmw.de ziye.zhou@bmw.de

IR Contact
BMW Group Investor Relations
http://www.bmwgroup.com/ir
Petuelring 130 +49-89-382-0
80788 Munich ir@bmwgroup.com

BMW Investor Presentation, May 2016 Page 36

BMW GROUP INVESTOR RELATIONS.
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

BMW Investor Presentation, May 2016 Page 37

BMW GROUP INVESTOR RELATIONS.
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

BMW Investor Presentation, May 2016 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.

BMW Investor Presentation, May 2016 Page 39