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Statement Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Interim Report to 30 Jun 2019

Good Morning, Ladies and Gentlemen!

 

Today, we would like to residence 3 categorical points:

  1. Our electro indication programme.
  2. Our marketplace performance.
  3. And a profitability.

 

Many of we were during a initial #NEXTGen in a BMW Welt during a finish of
June. We were really gratified with a certain feedback from a media
and amicable networks.

 

At a event, we showed a transparent proceed to a future: To offer
tolerable mobility with a accumulation of expostulate technologies.

 

And a concentration is clearly on a customer. Our customers’ needs and
desires are different opposite a creation – as are a regions and
locations where they live. Therefore, we are charity a customers
various, appealing solutions during this proviso of good technological
change in a industry.

 

Our proceed towards tolerable mobility is holistic: Including
vehicles, prolongation and a supply chain.

Let me give we dual examples:

First: As of subsequent year, all a 31 prolongation sites in 15 countries
will obtain a electricity they need from renewable energies.

 

Second: We are already building a fifth-generation electric drive
train. It will be initial used to energy a BMW iX3 starting subsequent year.
From afterwards on, a electric engines will no longer use singular earths.

 

We see all these things as partial of a altogether responsibility.

 

We have set ourselves desirous goals for a foundation of a fleet:

  • By 2021, we will double sales of a electric models and plug-in hybrids.
  • In 2023 – dual years progressing than designed – we will have 25
    electrified models on a market. More than half will be entirely electric.
  • By 2025, we design a electrified vehicles to be flourishing by an
    normal of some-more than 30 percent per year.

 

As we can see: We are creation good strides in this area. The growth
bend is exponential.

 

In Germany alone, we sole over 10,000 electrified vehicles in the
initial 6 months of 2019. That is around 60 percent some-more than in the
same duration final year. Sales of a entirely electric BMW i3 surged 85
percent in a domestic market. Three of a 5 top-selling plug-in
variety in Germany are from a BMW Group.

 

In a initial half of a year, i3 sales climbed 21 percent worldwide,
even yet it has been on a marketplace given 2013.

 

Electrification also continues during MINI:

  • Sales of a Countryman plug-in hybrid were adult some-more than 50 percent.
  • In July, we presented a entirely electric MINI in Rotterdam and
    Oxford: The MINI Cooper SE will hurl off a prolongation line in
    Oxford after this year. It’s enjoying clever popularity, with over
    40,000 meddlesome customers.

 

Already today, with 10 models, we offer business a far-reaching operation of
electrified vehicles – in all segments.

 

At #NEXTGen, we done it really clear: We support a aim of a
CO2-neutral multitude – a same idea formulated by a new
European Commission boss for a EU by 2050.

 

At a BMW Group, we are hence expanding a entirely electric
range, with:

  • the iX3 from 2020
  • the BMW i4, and a iNEXT from 2021.
  • Our new record flagship – a iNEXT – will yield us with
    building blocks for a future.

 

To safeguard that we can concentration on both benefaction and destiny needs and
still sojourn profitable, we are relying on a brew of different
technologies. That is clearly what a business want.

 

And now onto a second topic: a sales performance.

 

We are flourishing – in a disappearing and rarely rival universe car
market. The BMW Group achieved new all-time highs in both a second
entertain and a initial half of 2019.

 

In a second quarter, that also practical to a BMW, Rolls-Royce and
BMW Motorrad brands, as good as a BMW Group.

 

In a largest sales market, China, we kick a trend with expansion of
roughly 24 percent in a second quarter.

 

And we won marketplace share. Through June, a code BMW:

  • Was array one in a US.
  • Was array one in a UK.
  • And in Germany, we grew some-more strongly than a whole marketplace and
    a reward segment.

 

Globally, we were means to significantly revoke a disproportion between
a code BMW and Mercedes-Benz in a initial half-year. In a month
of June, BMW was forward of Mercedes.

 

At Group turn we continue to lead a reward segment.

 

Our new indication rollout continues during full speed: The new BMW 3 Series
and a new Z4 have been in showrooms given March. The new BMW 7
Series will now also be launched in China.

 

Sales of a X models were adult by roughly a entertain in a first
half-year. The new BMW X7 has been accessible given Mar and enjoys
high direct as shred leader. The X7 brings a renouned and highly
successful X family to 7 models.

 

In early July, we also announced a new BMW X6. This completes the
renovation of a X series. Over a past dual years, all X models from X1
to X7 have possibly been refreshed, newly launched, or launched for the
really initial time.

 

The new BMW 8 Series is partial of a rollout devise in a luxury
segment: In further to a Coupé, a automobile has been available
given March. Since July, prolongation has begun for 3 some-more 8 Series
models during a Dingolfing plant: The Gran Coupé and a M models of the
Coupé and Convertible. We design a Gran Coupé to be a top-selling
8 Series model.

 

In late September, BMW will launch a new 1 Series, a new 3 Series
Touring and a revised X1. The X1 will also be accessible as a plug-in
hybrid from 2020. This various was formerly usually accessible in China.

 

As we know, a code BMW will be releasing 21 new or revised models
this year alone.

 

And now to my third point: a profitability.

 

The BMW Group has mostly successfully mastered violent times in its
past. Today, volatility, changing conditions and augmenting regulatory
mandate are partial of a bland business.

 

The BMW Group will continue a successful growth – and is
investing heavily in destiny technologies to safeguard this.

 

We are means to do so since we are profitable.

 

Our EBIT domain in a Automotive Segment was 6.5 percent in the
second quarter. Therefore, we are on march for a approaching target
operation of between 4.5 and 6.5 percent for 2019.

 

I would like to emphasize again: For a initial half-year, a EBIT
domain but a sustenance associated to ongoing antitrust allegations
from a EU Commission was 6.1 percent. This would therefore fall
within a strange superintendence of 6 to 8 percent for a whole year.

 

As we can see: The BMW Group is clearly on lane to accommodate a goals
for a financial year 2019.

 

Ladies and Gentlemen,

Allow me to finish on a personal note.

This is my final quarterly discussion as CEO of BMW AG. we assimilated the
Board of Management in a midst of a tellurian mercantile and financial
crisis, behind in Dec 2008.

 

As partial of a Board, we could play a poignant purpose in moulding the
march of a BMW Group for some-more than 10 years – over 4 of those
as chairman.

 

During this time, we fake new paths. we resolutely believe: The BMW
Group is robust, innovative and in a clever position to conduct the
formidable hurdles confronting a association today.

 

BMW has been my veteran home for some-more than 27 years. You will
understand, I’m sure, that a BMW Group will always have a special
place in my heart.

I wish my successor, Oliver Zipse, most success in a entrance years
as CEO.

 

I would also like to appreciate all of we for a profitable exchanges and
discussions we have had over a years. No doubt, we will continue to
follow a attention and a BMW Group really closely.

 

Although everybody has a same challenges, not each association is the
same. The BMW Group continues to forge a possess path. Think of the
discussions around diesel. The BMW Group did not mistreat a customers.

 

I am sure: The BMW Group will continue to be successful in a future.

Thank you!