Statement Harald Krüger, Chairman of a Board of Management of BMW AG, 96th Annual General Meeting of BMW AG during Olympiahalle in Munich on 12 May 2016

Posted on 12. May, 2016 by in BMW Canada

Ladies and Gentlemen,


100 years of Bayerische Motoren Werke – a century of bold
decision-making, passion and pioneering suggestion – a story built by
well-developed people.


100 years of Bayerische Motoren Werke – an feat we owe, first
and foremost, to a customers, whose preference to buy a products
lays a substructure for a success. we would therefore like to take
this event to appreciate all a BMW Group business worldwide!


100 years of Bayerische Motoren Werke – some-more than anything, this is
a feat of a employees – from a date a association was
founded in 1916 to a benefaction day. In this, a centenary year, I
would also like to appreciate all a stream and former employees. Your
tough work and loyalty have done a BMW Group what it is today. We
have been relocating people and moulding a story of mobility for the
past 100 years. we consider that deserves a spin of applause. Many of
those employees are here with us today. we have been with this company
myself for 24 years – so we know that a employees always give their
really best – because:


  • A passion for mobility is partial of who they are.
  • They code with a vehicles and services.
  • They emanate a small square of a destiny any singular day.


On 7 March, a prolongation lines stood still, as scarcely all our
locations assimilated us live for a central jubilee in the
Olympiahalle. You usually saw a scenes for yourselves. It was a
illusory occasion.

And a response was utterly overwhelming: 50,000 people outward of the
association watched a live broadcast. We also reached 13 million users
by amicable media, such as Facebook and Twitter. We did not wish it
to be usually a showcase of a past achievements. That is history. But a
company’s destiny is energetic by – essential growth, a innovative
strength and competitiveness.

That requires coherence and flexibility: From a manufacturer of
aircraft engines and motorcycles to a world’s heading manufacturer
of reward automobiles to a heading provider of reward mobility and
reward services.


That is a BMW way: past, benefaction and future. We are on the
threshold of a new era: a possibility to seize a opportunities of
digitalisation to take particular mobility into a new era. Take a look
during a Vision Vehicle, a BMW VISION NEXT 100, that we presented in
Beijing final week. It provides a glance of “Sheer Driving Pleasure”
in a years over 2030 – sustainable, connected, and
highly-automated. This automobile embodies a truth perfectly: We
are naturally unapproachable of a tradition – though a sights are set firmly
on a highway ahead.


Our meditative and actions are geared towards a prolonged term. That is
something we have in common with you, a shareholders. That is the
reason we deposit in this association – and give us a support we need to
exercise change. In this way, we also minister to a success of
a company. Together, we can be unapproachable of those 100 years of
fortitude, passion and pioneering spirit.


On that note, we would like to acquire everybody fasten us via
internet, as good as everybody here in a Olympiahalle: A comfortable welcome
to a 96th Annual General Meeting of BMW AG!


Dear Shareholders and Shareholder Representatives,



Honoured guests!


I can assure you: your offer support of a BMW Group is good worthwhile.


  • 2015 was a sixth uninterrupted record year.
  • In 2016, we will also be targeting new all-time highs.
  • With a Strategy NUMBER ONE NEXT we are sourroundings a course
    for a entrance years.
  • Of course, a setting extends many over than that, to “The
    subsequent 100 years”.


We have copiousness of ideas for a destiny of this company.

The areas we would like to concentration on now are:


  1. A examination of 2015 and a opinion for 2016, and
  2. Our Strategy NUMBER ONE NEXT.


Ladies and Gentlemen,

2015 was a successful year for a BMW Group. You are all familiar
with a goals we set ourselves:


  • Solid enlargement in both sales and Group gain before tax.
  • The heading position in a reward shred worldwide.
  • An EBIT domain in a operation between 8 to 10 per cent in the

    Automotive segment.


Our sourroundings was characterised by heated competition, uneven
markets and a discuss over diesel technology. At a BMW Group, we
broach on a promises. We over a goals. Sales, pre-tax
gain and net distinction for a year all reached new all-time highs.
Here are a pivotal financials compared with a prior year:


  • Group gain of over 92 billion euros – roughly 15 per cent higher.
  • Profit before taxation of 9.2 billion euros – an boost of 5.9 per cent.
  • Net distinction of around 6.4 billion euros – a 10.0 per cent increase.
  • EBIT domain in a Automotive shred of 9.2 per cent – and
    therefore within a aim range.
  • Financial Services segment: 1.9 billion euros – an boost of
    14.6 per cent in gain before tax, that means a segment
    stays profitable.
  • Motorcycles segment: 179 million euros – an boost of 67 per
    cent in pre-tax gain over a prior year.


One thing is certain: We have a resources to deposit in a own
future. At a finish of 2015, a liquidity totalled some-more than 11
billion euros. In fact, your association has a tip credit rating of
any automotive manufacturer in Europe.


This financial strength comes from a absolute source: Our clever and
fascinating reward brands. We delivered a sum of 2.24 million
vehicles to business final year. This is an boost of 6.1 per cent
over a prior year – and a new record. Our BMW, MINI and BMW
Motorrad brands all posted new all-time highs; while Rolls-Royce
continues to browbeat a segment.


You – a shareholders – mount by us, and therefore share in the
company’s success. For 2015, a Board of Management and the
Supervisory Board introduce to use a unappropriated distinction of BMW AG
to emanate a dividend. In a BMW Group’s centenary year, we will
accept a tip division in a story of a company:


  • 3.20 euros per share of common stock
  • 3.22 euros per share of elite stock


That is 30 cents some-more than final year. The division rate has therefore
increasing by some-more than 10 per cent. For a initial time, we are paying
out some-more than dual billion euros in dividends.

This means that roughly 33 per cent of a net distinction for a year
will be distributed to you, a shareholders. The division produce for
common batch stands during usually over 4 per cent and usually underneath 5 per
cent for elite stock.


BMW share opening is also applicable to you:


  • In 2015, a BMW share cost rose by 8.8 per cent.
  • Over a past 10 years, it has gained over 70 per cent.
  • And over a 20-year period, it has increasing some-more than six-fold.


Since a start of a year, a BMW share cost has decreased by
over 20 per cent from a spin during a finish of 2015. The same principle
relates to a share price: We do not concentration on quarterly results. The
BMW Group is successful over a prolonged tenure given a employees are
rarely motivated.


Of course, they also advantage when a association performs well. That is
what we call distinction sharing. All a permanent employees in Germany
will accept a profit-related reward for 2015 – a tip we have
ever paid. Our employees have warranted it. It shows a appreciation for
their efforts. And we also trust it is an vicious aspect of amicable fairness.


The association aims to continue a enlargement – and we are strengthening
and enabling a group to do so. We spent some-more than 350 million euros
on training and gift in 2015. 1,500 immature people started an
tutelage with us in 2015. All in all, a BMW Group is currently
training 4,700 immature people – with new training comforts in Brazil,
Mexico and Thailand. We hired some-more than 5,900 new employees final year.
Today, a association employs roughly a third some-more people than it did just
5 years ago. By a finish of 2015, a headcount in Germany had
increasing by some-more than 4,300 compared with a prior year. Many of
them were former proxy workers.


Your association is noticed as an appealing employer – generally in the
age of digitalisation. The ranking gathered by a Universum group is
utterly clear:


First place for a BMW Group opposite all industries in Germany. First
place among all automotive companies worldwide.


Young people are looking for a tellurian career – and a BMW Group is
truly global. We offer business in 140 countries worldwide. We
work 31 prolongation sites in 14 countries. Our workforce reflects
this world. More than 100 nationalities work here during a Munich
plcae alone. Diversity is a source of improvement for a association –
and essential to progressing a competitiveness.

But globalisation contingency not be a one-way street.


That is one of a reasons we launched a “WORK HERE” initiative,
that enables immature refugees to spend several weeks during a company
removing to know a universe of work – any of them with their possess mentor
for support. A village depends on a grant of any and every
person. That is a pivotal to successful integration.


Ladies and Gentlemen,


“perspective” is a genuine banking of a economy. And that takes
investment. In 2015, investigate and enlargement totalled roughly 5.2
billion euros. This represents an boost of 13 per cent
year-on-year, with an RD ratio of 5.6 per cent of revenues. We
pattern a ratio for 2016 to sojourn during a same high spin as in 2015.


Last year, we reported sum collateral output of 5.9 billion
euros, including capitalised enlargement costs of around dual billion
euros. However, effective immediately, these costs are no longer
enclosed in a clarification of a capex ratio. The aim for this
ratio is now reduction than 5 per cent of revenues. In 2015, this ratio
would have stood during 4.2 per cent per a new definition. This
new capex aim will safeguard even larger transparency.


We are investing in both new and existent locations.


  • Production has begun during a new engine plant and foundry in
    Shenyang, China, that will build dual additional models locally for
    a Chinese customers: a BMW 2 Series Active Tourer and the
    long-wheelbase chronicle of a BMW X1. The X1 will also be available
    as a plug-in hybrid various within this year. China stays a market
    with potential.
  • In Mexico, preparations for construction of a new plant in San
    Luis Potosí are on track.
  • The US is home to a largest prolongation location, Plant
    Spartanburg, that has undergone vital enlargement to accommodate growing
    direct for BMW X models.
  • Germany is, and will remain, a home base. We are strengthening
    a prolongation here and investing around 700 million euros in our
    categorical plant in Munich adult to 2018. We are also expanding a FIZ
    Research and Development Centre. This demonstrates a strong
    joining to Germany as a prolongation plcae – and to a roots.


Industrial make of highly-complex products is a main
strength of a German automobile industry. Industry 4.0 will open up
new opportunities for gaunt processes and enhancing quality. There are
many jobs robots can perform with larger correctness than humans to make
operative on a public line easier. Our prolongation already combines
a best of both worlds – a genuine and a practical – in a
state-of-the-art network that is both fit and rarely flexible.
Innovative vehicles are rolling off a public lines during all our
plants – with a new BMW 7 Series heading a way. It is our
creation driver. This automobile showcases all we are able of
during BMW today.


Let me give we 3 examples:


  • The physique has a core done of carbon. This is a initial time so many
    opposite materials have been cleverly total in a vehicle.
    As a result, a 7 Series weighs adult to 130 kilograms reduction than its
    prototype – that is utterly a prodigy in a oppulance class.
  • The new 7 Series is also a initial automobile to offer
    remote-controlled parking. It can expostulate itself into a garage or
    parking space – regulating usually one of a many programmed driving
    functions and assistance systems.
  • Gesture control is another singular new feature. So, if we wish to
    spin adult a radio or answer a phone, all we have to do is move
    your hand.


Modern oppulance caters to a tip demands. The new 7 Series has
been widely acclaimed all over a world: In Germany, for example, it
won a Golden Steering Wheel in a oppulance class. Modern oppulance is
multifaceted. For a initial time, a new 7 Series will be charity as
an M Performance Model – as requested by many of a business – and
also accessible with a plug-in hybrid expostulate train. Here, in front of
a stage, we can see a 7 Series centenary indication – one of usually 100 built.


We are committed to assembly a European Union’s CO2 requirements
from 2020 onwards. Therefore, some-more and some-more of a vehicles in our
swift come with a battery or plug-in hybrid expostulate train, building on
a electro-mobility knowledge with BMW i. In serve to a new 7
Series and a Long-Wheelbase version, a 2 Series, 3 Series and X5
will also be accessible as plug-in hybrids. These are not just
announcements: These 5 BMW models with plug-in hybrid drivetrain
will be in showrooms this summer. No other manufacturer offers its
business this kind of accumulation – from a compress shred to the
oppulance class. One name encompasses all a plug-in hybrids: BMW iPerformance.


The new MINI Cabrio has been accessible given March. Rolls-Royce also
has a new convertible, a Dawn – that is a genuine dream car. Our BMW
Motorcycles shred will continue a successful course. BMW is
now a world’s many successful reward manufacturer of
motorcycles and maxi-scooters. Our charity is broader and more
particular than ever. The R NineT Scrambler – a loyal lifestyle
motorcycle – was launched in a spring. In a second half of the
year, we will be entering into a smaller-capacity segments subsequent 500
cc for a initial time.


Ladies and Gentlemen,


We have a immature and appealing product line-up. Premium is our
promise. In a 2016 centenary year, we aim to sell some-more vehicles than
ever before. We are also targeting a new all-time high for Group
pre-tax earnings. Both total are approaching to be somewhat aloft than
final year. The EBIT domain in a Automotive shred should remain
within a aim operation of 8 to 10 per cent – presumption conditions
sojourn stable.


According to a forecasts for 2016:

  • The tellurian automobile marketplace will uncover certain growth.
  • The reward shred will expand, and
  • New automobile registrations will boost in vital sales regions.


All of this gives us reason for optimism. After a initial quarter, we
are on lane for a full year. We have always stressed that our
centenary is a springboard to a future. This brief film will give
we an thought of what lies ahead.


Ladies and Gentlemen,


Our universe is changing: We are seizing this event to transform
a BMW Group into a high-tech mobility company. And that brings me to
a second partial of my speech: Our Strategy NUMBER ONE NEXT. Since
2007 and a introduction of Strategy Number ONE, your association has
grown to a new level. But a universe continues to change and mobility
has reached a branch point.
The following areas will be
vicious for us in a future:


  • Digitalisation.
  • Changing patron interfaces.
  • Established and new competitors.
  • Operational value in all that we do.
  • Increasingly despotic authorised requirements.
  • And, of course, sensitivity is a constant.


To this end, we have updated a Strategy Number ONE to embody both
evolutionary and disruptive elements. Both are encompassed in a name
NUMBER ONE NEXT. We have set ourselves dual specific aim points:

2020 and 2025. The BMW Group is heading a way. The arrow symbolises
a stream energetic momentum. Everything is relocating faster – and so are
we. This means we need to consider many some-more outward a box.


Our new prophesy is to be Number ONE. We mix passion,
shortcoming and success. We broach a many romantic products and
many appealing services. We aim to offer a best patron experience
with a many fascinating brands in a reward environment.


There are 6 reasons given we will stay NUMBER ONE:


  • Brands and design.
  • Products.
  • Technologies.
  • Customer knowledge and services.
  • Digitalisation and
  • Profitability.


I would like to contend a few difference about each.


First: brands and
. We wish to say a pattern care – especially
given pattern stays a number-one reason for shopping premium. In the
future, we will consider a product choice some-more from an altogether Group perspective.

A Group-wide adaptation of all brands and models is a pivotal to
altogether success.


Second: products. We
will be expanding a product portfolio in all brands and all
segments, including:

  • Market care for BMW in a tip segments.
  • Expansion of a BMW M programme.
  • Expansion of a BMW i family.

Our vast models strengthen a reward positioning of a BMW brand.
We will be introducing an additional BMW indication in a oppulance class.
There will also be a clever new serve to a successful BMW X
choice in 2018, with a X7. Rolls-Royce is also formulation a new model
with a plan name Cullinan. High direct and profitability converge
during BMW M, where sales have roughly quadrupled given 2010. Now, we will
continue to enhance BMW M, with new M and M Performance models,
including a M2 Coupé, that came out in April. The new M4 GTS was
expelled in a singular edition.

Sheer Driving Pleasure has many opposite faces – and the
high-performance zone has a lot of fans worldwide.


As we can see: We are flourishing in high-margin segments. This
enlargement will eventually continue to compensate for series over the
entrance years. Since 2013, series in automotive engineering has
been all about a electric BMW i3. So, let’s take a demeanour during our
enlargement of BMW i. We have sole some-more than 50,000 I vehicles to date.
But BMW i is some-more than usually a car. BMW i attracts new business to
BMW. BMW i provides entrance to electro-mobility: 20 per cent of our
DriveNow car-sharing swift is already electric. we have always
emphasised that electro-mobility is a marathon, not a sprint. We are
offer expanding a BMW i line-up. In usually a few weeks, we will
offer an i3 with 50 per cent some-more battery capacity. In 2018, we will
launch a BMW i8 Roadster. This will be followed in 2021 by a BMW i
NEXT, a new creation driver, with unconstrained driving, digital
connectivity, intelligent lightweight design, a totally new interior
and eventually bringing a subsequent era of electro-mobility to a road.


The contention about e-mobility is an romantic one, though a decisive
cause is that we pierce things forward. we am certain that government
measures will infer effective. It is always improved to make a decision
than to wait – and a squeeze inducement will directly benefit
customers. There was never any doubt that we would participate. Such a
appearance by a courtesy is singular worldwide. After all, a only
approach to make swell is by manufacturers, customers, lawmakers and
multitude all operative together.


The destiny belongs to tolerable mobility – that we courtesy as both
a avocation and obligation. We will continue to draft a possess course. It
is still misleading that drivetrain will prevail, though we are prepared:
We are optimising a explosion engine with Efficient Dynamics NEXT,
in that fit diesel engines will continue to play an important
role. At a same time, we are electrifying a vehicles – focusing on
battery energy for brief distances and fuel cells for longer trips. In
this area, we are operative closely with a partner, Toyota.


The technologies of
a destiny also include:


  • Enhanced connectivity.
  • The use of synthetic intelligence, and
  • The enlargement of unconstrained driving.


Our tip priority is automobile reserve and a confidence of a customers’
personal information – something that distinguishes us from other providers.
People mostly ask me, when will we be pushing autonomously? My answer
is: We already can. A BMW exam automobile autonomously finished a path of
a Hockenheimring racetrack behind in 2006. In 2011, a BMW gathering on the
A9 autobahn from Munich towards Nuremberg – though any driver
intervention. It will be a while before these cars strech series
majority – also given a correct authorised horizon for business and
manufacturers has not nonetheless been decided.


Our idea is already clearly-defined – to be Number ONE in autonomous
driving. However, with us, a patron always decides – given Sheer
Driving Pleasure also means: leisure to choose. When do we palm over
control? When do we expostulate myself? Autonomous pushing depends on highly
accurate real-time maps and data. In 2015, we paved a approach for this
when we assimilated with partner companies to acquire map use HERE from Nokia.


Digitalisation is a core component of a strategy. It is not only
changing driving, though also a business processes and a customer
experience. Mobility services have been partial of a business indication for
a prolonged time.

Our car-sharing use DriveNow is flourishing in Europe, with almost
580,000 purebred users by a finish of 2015. We recently launched
ReachNow in a US, formed on a DriveNow model. It got off to a great
start in Seattle – with around 13,000 members induction in a first
month alone.


Digitalisation helps
us prove patron needs. In a future, we wish to provide
suitable products and services to support a customers
via all stages of their lives.


All of these skeleton count on one thing: profitability. We are
investing – in vehicles, technologies, locations and new business
segments. Nevertheless, we are still targeting an EBIT domain in the
Automotive shred of between 8 and 10 per cent. We are improving our
capability and operational value by initiatives to enhance
profitability in all divisions. Our aim is to revoke both costs and complexity.


Ladies and Gentlemen,


Our plan is usually as clever as a joining we put into it. We
have tangible five
to beam a team-work within a company:
Responsibility, appreciation, transparency, trust and openness. These
values emanate a sound substructure for mastering destiny hurdles and
yield course in a energetic world.


In a automotive industry, a certain volume of profitable trust has
been lost. At a BMW Group, we have clever values. We do not
manipulate. Starting in 2017, fuel expenditure and emissions will be
totalled underneath picturesque conditions. We have upheld the
introduction of new exam cycles from a really beginning. That is the
usually approach to reconstruct trust.


Dear Shareholders,


100 years of Bayerische Motoren Werke – given we are constantly
evolving. Because we viewpoint change as an opportunity. Because
viewpoint is some-more vicious to us than a here and now.


We are moulding a mobility of a future. That is a vision. The
approach we see it, it is eventually about relocating people and creation their
mobility safer and some-more pleasant. It has been a year now given we took
over as Chairman of a Board of Management. It has been an exciting
and eventful year, and we would like to appreciate we all for a trust you
have placed in me.


An vicious miracle deserves to be celebrated. Visit a “100
Masterpieces” muster during a BMW Museum. And join us for a BMW
Festival from 9th to 11th Sep in a Olympiapark.


Our centenary year is a starting indicate for a BMW Group’s subsequent 100
years. And you, a shareholders, are concomitant us on that path
into a future. Continue to mount during a side! we assure you: It will
be value it.


Thank we for your attention.

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