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Statement and Presentation by Harald Krüger, Chairman of a Board of Management of BMW AG, BMW Group Annual Accounts Press Conference 2019

Good morning and welcome!

 

Today, we would like to uncover we what sets a BMW Group detached from
a competition. Let’s initial take a demeanour during a new past, and then
concentration on a future. The BMW Group is successfully moulding a future
of mobility. We are doing so by consistently charting a possess course:

 

·       We are constantly redeveloping a business model. It has to
be essential and successful in a digital age. For example, a new
corner try with Daimler, that combines all a NOW services.

·       We are strengthening a core business and a global
presence. For example, in China and a US.

·       We deliver. We spin difference into action. Our successful
transition to a new emissions customary WLTP is a good instance of this.

 

In new years, we have developed from a manufacturer to a mobility
provider. Going forward, we aim to be a heading tech association for
reward mobility.

 

For this reason, we are providing a association a new and stronger
foundation: With regards to technology. In a relations with
customers. And in a processes, structures and work environment. That
is no easy task. But, during a BMW Group, we are a really clever team.

 

We continue to make poignant swell with a Strategy NUMBER ONE
NEXT. We have been implementing measures for a past 3 years.

Our concentration extends adult until 2025. We have a transparent prophesy of the
future. Our tour has 3 stages, with milestones in 2018, 2021
and 2025.

 

The first stage, up
to 2018, has already successfully been completed.

 

What was a BMW way?
What sets us detached from others?

 

First of all, to make really clear: BMW Group vehicles are not
manipulated.
A fact that has now been arguable again. We have
invested heavily – in new products, in new expostulate technologies and in
digitalisation. We have electrified many models and indication series. Our
BMW i3 continues a success, year after year. Worldwide, a total
was some-more than 140,000 vehicles.

 

In addition, we successfully launched a biggest indication descent in
a history. This helps us to win marketplace share opposite a globe. Since
2016, we have also done critical advances in a enlargement of
unconstrained driving: Our Autonomous Driving Campus outward Munich is
now operative during full speed. At a same time, we have strengthened our
footprint in all critical regions of a universe and stretched a capacity.
All of this shows: The BMW Group is a devoted partner and corporate
citizen. And, we are robust, quick and flexible.

 

We are now embarking on a second phase of NUMBER
ONE NEXT –
which will take us adult to a finish of 2021.

 

What are a hurdles for a attention now?

·       The business sourroundings stays rarely volatile.

·       E-mobility will continue to grow.

  • The enlargement of highly-automated vehicles will continue to make advances.

What do we do differently
than others, and why?

 

We are evenly investing in a operation of electrified vehicles
– for all patron needs. We also will emanate additional flexible
platforms for several forms of drivetrains: explosion engines,
plug-in-hybrid and electric expostulate trains. From 2020, a renouned BMW
X3 will be a initial indication that we will offer with all 3 drive
trains. The patron will continue to have choices in a future. This
extended proceed allows us to respond flexibly. This is a most
fit resolution – a singular height for all.

 

We will keep a feet on a stifle with new indication releases. This
year alone, we will launch some-more than 20 new or updated models. And we
are electrifying all a brands and indication series. By a finish of this
year, we will have 500,000 plug-in hybrid and electric vehicles on a roads.

 

As anyone who’s ever driven an electric automobile will tell you: E-mobility
is fun. Amazing acceleration and probably wordless – interjection to the
electric engine and battery. Together, they form a heart of every
electric vehicle. We furnish a electric expostulate and high-voltage
complement ourselves. This keeps essential e-mobility imagination resolutely in
a possess hands. Regarding battery cells, we will continue to build on
a existent expertise. This summer, we will open a new BMW Group
Battery Cell Competence Centre in Munich. This also includes
infrastructure: Charge NOW already gives a business entrance to more
than 100,000 charging points in 25 countries. Charge NOW also
demonstrates that: Cooperation between companies is increasingly
important. We always find out a many suitable partners in opposite fields.

 

In dual critical areas of destiny activity, we have embarked on a
long-term team-work with Daimler AG. To yield some-more services in
some-more cities, we have combined 5 corner ventures. More than 60 million
people already use NOW services. Together, we will deposit over one
billion euros.

The advantage for business is that all comes from a single
source. And soon, from a singular app. When it comes to autonomous
driving, both companies already have endless know-how. Together, we
are building next-level record for unconstrained pushing for our
models from 2024 on.

 

As a tellurian company, some-more than ever, we have to prove different
final in opposite regions. In line with a Strategy NUMBER ONE
NEXT, we are targeting continued enlargement in all critical regions of
a universe and aim to enhance a marketplace share. To grasp this, we have
a specific plan for any region:

 

  • China is our
    largest singular marketplace and a clever pushing force for e‑mobility.
    Our proceed is as follows: The new plant in Shenyang will
    boost a ability to 650,000 vehicles per year. Our new joint
    try with Great Wall will build fully-electric MINI vehicles.
    From 2020, we will furnish a initial fully-electric BMW, a iX3,
    that we will trade from China to a rest of a world.

     

  • In a US, we
    continue to deposit in a enlargement of a Spartanburg plant. This
    year, a plant celebrates a 25th anniversary. The
    new BMW X7 signals a organization joining to a US, a second home.
    The US Department of Commerce has once again arguable that BMW is
    a heading US automotive exporter by value – for a fifth
    uninterrupted year. Our new plant in Mexico will enhance a sphere
    of activity in a Americas. It will open in June.

     

  • Europe is our
    largest sales shred and home to a many BMW Group plants and
    employees. The domestic conditions stays tense, due to the
    doubt over Brexit. But we are good prepared for all scenarios.

 

The same element relates to all regions: Our joining is geared
towards a prolonged term. Free entrance to markets is essential for all of
this. It ensures growth, wealth and practice everywhere.

 

To turn an flexible tech company, we also need a right internal
organisation. Efficient structures have always been partial of a BMW
Group. Two stream examples include: Our cross-divisional Performance
NEXT programme, and a new Sales and Marketing structure.

 

We began implementing Performance NEXT some time ago. Our goal
is to turn faster, essential and some-more efficient. We are
concentrating privately on 3 fields: “customer and sales”,
“vehicle” and “organisation and structures”. Performance NEXT
will henceforth change a whole company. We are targeting a total
assets intensity of some-more than 12 billion euros by a finish of 2022.
Performance NEXT will have an impact good into a subsequent decade.

 

Let’s take a demeanour during my second example:

 

Our attribute with business is critical to a success of our
business. Starting in April, we have ONE sales multiplication for a BMW,
MINI and Rolls-Royce automotive brands. It will be famous internally as
a C division. C stands for customer. This reflects a transparent focus
on a customer. This multiplication will be obliged for formulating a
unchanging code knowledge opposite all touchpoints. Peter
Schwarzenbauer will leave a association in Oct during his possess request
when he turns 60. We have no skeleton to refill this position. We believe
a smaller Board of Management sends a right vigilance for consistently
streamlined structures opposite a whole company.

 

Successful selling supports a sales activities worldwide. Each of
a reward brands embodies emotions. The same goes for sports.

That is because sports have played a pivotal purpose in a selling for so
long. Here, too, we will be holding a new instruction with vital partnerships.

 

The third stage in
doing of Strategy NUMBER ONE NEXT will take us all the
proceed to 2025.

 

Here, a BMW
approach
is utterly opposite from that of other companies:

 

Our new creation and record flagship, a BMW iNEXT, will take
sold mobility to a whole new level. It will capacitate a entire
association and all a brands to face a hurdles of a future. The
judgment automobile is here on theatre with us. Other than a 4 wheels, it
doesn’t have many in common with a unchanging car.

 

The iNEXT combines several destiny technologies:

  • Full connectivity.
  • A unconventional interior.
  • An electric operation of adult to 600 kilometres for everyday
    driveability over both brief and prolonged distances.
  • It also signals a launch of Level 3 highly-automated driving.

    At a same time, we will also be contrast Level 4 and 5
    unconstrained pushing in civic areas with a swift of iNEXT vehicles.

 

This opens a whole new section for a BMW Group.

 

Today, some-more than 80 percent of accidents are caused by motorist error.
Autonomous pushing can probably discharge these accidents. Safety is
a tip priority in building programmed vehicles. That is because we go
to such lengths to guarantee these new technologies. By a time we
launch a Level 3 complement in 2021, we will have clocked adult some-more than
240 million exam kilometres: around 95 percent in simulations.

 

Technologies from a iNEXT will be incorporated via our
whole indication line-up. The BMW iNEXT will be expelled onto a market
in 2021.

 

Autonomous pushing relies on, and generates, outrageous quantities of data.
This means information analytics will be a diversion changer. Next week, we will
be opening a information centre outward of Munich. But, by mid-2025, 500
petabytes will be available. That is indispensable to routine information “off-board”.

 

Ladies and Gentlemen,

 

Being mobile will continue to be partial of a lives in our
globally-connected world. At a BMW Group, we will continue to drive
sustainable, connected and unconstrained mobility forwards. But that’s
adequate for now. Later, I’ll uncover we a models that will enthuse our
business in a entrance years. Thank you!

 

PART II – Statement Harald Krüger

Ladies and Gentlemen,

 

The BMW Group has been series one in reward shred sales for the
past 15 years. Despite a uncertainties we are confronting opposite the
globe, we aim to continue a successful development. Our brands,
products and services are a basement for this. Our idea is to
outperform a reward segment. To grasp this, we will continue our
indication offensive, pushing full speed ahead.

 

2019 will be a year of a plug-in hybrid. BMW will recover a 3
Series, X5 and 7 Series all as PHEVs. The X3 will also be available
for a initial time as a plug-in hybrid. All these models come with the
fourth era of a battery and electric-drive-train technology.
This enables an electric operation of adult to 80 kilometres. The 2 Series
and 5 Series models will also get a battery refurbish in a summer.

I myself expostulate a plug-in hybrid. It’s a good proceed to get customers
vehement about electric driving. This record offers a pragmatic
proceed that goes a prolonged proceed towards improving atmosphere peculiarity in cities
quickly. Studies have found that plug-in variety with an electric
operation of during slightest 60 km are driven usually as distant in electric mode as
pure-electric models. We are holding this a step serve with our
“Electric City Drive” commander project. Together with a City of
Rotterdam, we are now enlivening plug-in-hybrid drivers to use
pure-electric mode in a city by providing them with applicable information on
their smartphone.

 

BMW and MINI will also recover fully-electric models:

 

  • The romantic MINI Electric will be launched this year. Media
    member have already had a possibility to exam it.
  • This will be followed in 2020 by a iX3.
  • 2021 will afterwards be a year of a BMW i4 and a BMW iNEXT.

 

By a finish of 2020, we will have brought some-more than 10 new and
updated models with electrified expostulate trains to a market. For me,
this is a transparent statement. With Strategy NUMBER ONE NEXT, we will
not usually boost sales of electrified vehicles.

 

We also aim to boost sales and revenues significantly in a upper
segments in particular:

 

·       The new X5 is now entirely accessible for a whole year.

·       The new 7 Series will be expelled onto a marketplace after this month.

·       The X7 will follow mid-year.

·       And a 8 Series Coupé will be assimilated by a Convertible and
a Gran Coupé, as good as a analogous M models.

 

In a mid-size segment, a top-selling indication a new BMW 3 Series
has been in showrooms given early March. The new 3 Series has been
good perceived by customers, quite due to a extensive
connectivity features.

 

We also have appealing new models in a compress class: The new
BMW 1 Series will be accessible for smoothness by a finish of this year. I
would also like to announce a totally new indication today: a BMW 2
Series Gran Coupé. It will applaud a universe premiere in Nov at
a LA Auto Show and is scheduled for recover in early 2020. This
indication will generally interest to young, civic aim groups, with a
uninformed and overwhelming design.

 

As we can see: We sojourn consistently on a offensive.

 

The BMW Group is resolutely environment a march for a future. Customers
– with all their wishes and mobility needs – sojourn a transparent concentration of
all that we do. Innovative solutions are how we safeguard each customer
practice mobility in a unconditionally sold way.

 

There has been a lot of speak recently about a purpose of companies.
At a finish of a day, it all comes down to sustainably earning money
with a sold business model. Only afterwards can a continued
existence of one’s possess association be ensured. Only afterwards can we create
jobs and innovations. And usually afterwards can a association make an effective
grant to society. None of these prerequisites will change in
a digital age.

 

The BMW Group stays currently among a many essential automotive
companies in a world. We will continue to be a arguable and
essential investment for a shareholders relocating forward. And we have
a transparent design for a destiny to sojourn a personality in all we do.

 

Thank you.