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COMPANY PROFILE

Bayerische Motoren
Werke AG

REFERENCE CODE: 6A41C0F5-51FC-4B71-AF83-0B9F412CB891


PUBLICATION DATE: 20 Sep 2019
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Bayerische Motoren Werke AG
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3


Key Facts ......................................................................................................................... 3
Business Description .....................................................................................................4
History ............................................................................................................................. 6
Key Employees .............................................................................................................30
Major Products & Services ..........................................................................................32
SWOT Analysis .............................................................................................................33
Top Competitors ...........................................................................................................37
Company View ..............................................................................................................38
Locations And Subsidiaries ........................................................................................42

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Bayerische Motoren Werke AG
Company Overview

Company Overview

COMPANY OVERVIEW
Bayerische Motoren Werke AG (BMW or “the company”) is an automotive company that develops,
manufactures, assembles, and sells automobiles and motorcycles. It sells spare parts and accessories
manufactured in-house, by foreign subsidiaries and by external suppliers. The company also offers
insurance, automobile leasing, fleet management, retail and dealership financing, and customer deposit
services. The company markets its products under BMW, MINI, Rolls-Royce, Alphera, Alphabet and
Motorrad brand names. BMW sells its products by independent authorised dealerships, BMW Group
branches and subsidiaries, and independent importers in certain markets. It primarily operates in Europe,
the Americas, Middle East and Africa, and Asia. The company is headquartered in Munich, Bavaria,
Germany.

The company reported revenues of (Euro) EUR97,480 million for the fiscal year ended December 2018
(FY2018), a decrease of 0.8% over FY2017. In FY2018, the company’s operating margin was 9.4%,
compared to an operating margin of 10.1% in FY2017. In FY2018, the company recorded a net margin of
7.3%, compared to a net margin of 8.7% in FY2017.

The company reported revenues of EUR25,715.0 million for the second quarter ended June 2019, an
increase of 14.5% over the previous quarter.
Key Facts

KEY FACTS

Head Office Bayerische Motoren Werke AG


Petuelring 130
Munich
Bayern
Munich
Bayern
DEU
Phone 49 89 3820
Fax
Web Address www.bmwgroup.com
Revenue / turnover (EUR Mn) 97,480.0
Revenue (USD Mn) 115,034.2
Financial Year End December
Employees 134,682
XETRA Ticker BMW

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Bayerische Motoren Werke AG
Business Description

Business Description

BUSINESS DESCRIPTION
Bayerische Motoren Werke AG (BMW or “the company”) is the parent company of the BMW Group, which
is involved in the development, manufacture, and sale of engines and all vehicles equipped with those
engines, including automobiles and motorcycles. The company also provides financial services. BMW’s
sales network comprises around 3,400 BMW, 1,580 MINI, and 140 Rolls-Royce dealerships worldwide. It
sells vehicles under three premium brands: BMW, MINI, and Rolls-Royce. During FY2017, the company
operated 31 production and assembly facilities in 14 countries and had a global sales network in more
than 150 countries. BMW operates globally with major presence in China, the US, and Germany.

The company operates through four reportable business segments: Automotive, Financial Services,
Motorcycles, and Other Entities.

The Automotive segment develops, manufactures, assembles, and sells cars and off-road vehicles. It
also sells automotive spare parts and accessories. In Germany, BMW and MINI brand products are sold
through company owned outlets and independent, authorised dealers. The company sells passenger cars
outside Germany through subsidiaries and independent importers. Rolls-Royce brand vehicles are sold in
the US, China, and Russia via subsidiary companies and elsewhere by independent, authorized dealers.
In FY2017, the company's worldwide automobile production was 2,505,741 units, and its global sales
were 2,463,526 units. The global production included 2,123,947 units of the BMW brand, 378,486 units of
the MINI brand, and 3,308 units of the Rolls-Royce brand. In addition, the company's global sales
included 2,088,283 units of the BMW brand, 371,881 units of the MINI brand, and 3,362 units of the Rolls-
Royce brand vehicles. In FY2017, the Automotive segment reported revenues of EUR70,546 million,
which accounted for 71.5% of the company's total revenue.

The Financial Services segment focuses primarily on car leasing, fleet business, multi-brand business,
retail customer and dealer financing, customer deposit business and insurance activities. The segment
offers its services in more than 50 countries around the world. The segment operates its international
multi-brand fleet business under the brand name Alphabet and provides fleet financing products and
comprehensive management services for corporate car fleets. It managed a portfolio of 679,895 fleet
contracts in FY2017. The segment also offers financing of the BMW brands as well as vehicles of other
manufacturers under the brand name Alphera. The Financial Services segment also supports the dealer
organization by providing financing for inventories, real estate and equipment. During FY2017, the
company had 5,380,785 credit financing and lease contracts with dealers and retail customers. In
FY2017, the Financial Services segment reported revenues of EUR25,857 million, which accounted for
26.2% of the company's total revenue.

The Motorcycles segment develops, manufactures, assembles, and sells BMW brand motorcycles,spare
parts and accessories. In FY2017, the company sold 164,153 units of BMW brand motorcycles. In total,
185,682 BMW brand motorcycles were manufactured during FY2017. In FY2017, the Motorcycles
segment reported revenues of E2,272 million, which accounted for 2.3% of the company's total revenue.

The company’s Other Entities segment consists of holding and group financing companies. This segment
also includes operating companies, BMW Services Ltd., BMW (UK) Investments, and Bavaria Lloyd
Reiseburo which are not allocated to the other segments. In FY2017, the Other Entities segment reported

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Bayerische Motoren Werke AG
Business Description

revenues of EUR3 million.

Geographically, the company classifies its operations into seven segments, namely China, the US,
Germany, Rest of Europe, Rest of Asia, Rest of the Americas, and Other regions. In FY2017, China
accounted for 18.6% of the company's total revenues, followed by the US (17.3%; Germany (13.7%);
Rest of Europe (31.9%); Rest of Asia (11.6%); Rest of the Americas (3.9%); and Other regions (3%).

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Bayerische Motoren Werke AG
History

History

HISTORY

Contracts/Agreements

Year: 2019

In February, BMW Group and Mercedes-Benz partnered for the development of technologies for driver
assistance systems, automated driving on highways and parking features.

Contracts/Agreements

Year: 2019

In April, the company collaborated with Microsoft to introduce the open manufacturing platform that will
enable faster, more cost-effective innovation in the manufacturing sector.

New Products/Services

Year: 2019

In May, BMW introduced two new top models in their Sports Activity Vehicle family, the BMW X5 M50i
and BMW X7 M50i.

Plans/Strategy

Year: 2019

In May, BMW announced its plans to launch its new BMW E-Scooter.

New Products/Services

Year: 2019

In May, the company introduced its new BMW X1 xDrive25e car.

Corporate Changes/Expansions

Year: 2019

In June, BMW Group opened a plant in San Luis Potosi, Mexico.

Contracts/Agreements

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History

Year: 2019

In June, BMW and Jaguar Land Rover entered into a partnership to develop a new generation of electric
motors.

Corporate Changes/Expansions

Year: 2019

In June, BMW established a subsidiary in Bejing, China, Lingyue Digital Information Technology Co Ltd.

Plans/Strategy

Year: 2019

In August, Bayerische Motoren Werke company announced its plans to invest in Recogni Inc.

Financing Agreements

Year: 2019

In September, BMW invested in Cartica AI for an autonomous AI platform launch and scale its operations
globally.

Financing Agreements

Year: 2019

In September, the company invested in Trifacta to accelerate its expansion into new geographies and
product areas.

Regulatory Approval

Year: 2019

In September, BMW, SAIC Motor Group and Didi Chuxing received permission from Shanghai authorities
to conduct operational tests of smart and connected cars.

New Products/Services

Year: 2018

In July, BMW introduced computer tomography (CT) into prototype development, production and
analysis.

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History

Contracts/Agreements

Year: 2018

In July, Cepsa entered into a collaboration agreement with IONITY, the European charging network
formed by the BMW Group, Daimler AG, Ford Motor Company, and the Volkswagen Group with Audi and
Porsche, to install electric charging points at its Service Stations in Spain and Portugal.

Contracts/Agreements

Year: 2018

In July, the company entered into a joint venture with BMW Brilliance Automotive to expand its presence
in China.

Contracts/Agreements

Year: 2018

In July, the company signed a joint venture agreement with Great Wall Motor for MINI electric vehicles in
China.

Corporate Changes/Expansions

Year: 2018

In July, BMW planned to build a new facility in Hungary, to expand its production network in Europe.

Contracts/Agreements

Year: 2018

In August, BMW in collaboration with Yandex.Checkout launched the online prepayments for MINI
Cooper S cars in Russia.

New Products/Services

Year: 2018

In September, the company launched its new intelligent personal assistant for its cars.

Contracts/Agreements

Year: 2018

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History

In September, BMW selected UK insurtech Wrisk as its sole insurance partner in the UK.

New Products/Services

Year: 2018

In September, the company introduced its iNEXT next generation electric crossover concept.

Contracts/Agreements

Year: 2018

In September, BMW partnered with Bloom to provide less complex lending service and enhance user
experience.

Acquisitions/Mergers/Takeovers

Year: 2018

In January, the company agreed to acquire 100% stake in the joint venture of Sixt and BMW, DriveNow
from Sixt.

Plans/Strategy

Year: 2018

In October, the company announced its plan to invest EUR37 million in the Irish market.

Contracts/Agreements

Year: 2018

In October, BMW selected TomTom to offer drivers with Live Traffic information, online routing and
electric vehicle Services for vehicles of BMW, MINI and Rolls-Royce.

Plans/Strategy

Year: 2018

In September, BMW announced its plans to introduce safe and fully autonomous driving.

Contracts/Agreements

Year: 2018

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History

In October, BMW along with Critical Software established a joint venture, Critical TechWorks for the
development of on- and offboard applications.

Acquisitions/Mergers/Takeovers

Year: 2018

In October, BMW announced its plans to acquire additional 25% stake in BMW Brilliance Automotive for
US$D4.1 billion.

New Products/Services

Year: 2018

In October, the company introduced a new BMW i4 vehicle to its electric i division.

Contracts/Agreements

Year: 2018

In October, BMW secured an order from Avis India to provide 135 cars at airport fleet for Emirates
customers.

Contracts/Agreements

Year: 2018

In October, BMW along with Umicore entered into a collaboration with Northvolt for the development of a
process for electric car batteries to be recycled.

New Products/Services

Year: 2018

In October, the company launched its new e-commerce site for all the accessories and riding gear for the
BMW motorcycle.

New Products/Services

Year: 2018

In September, the company motorcycle arm BMW Motorrad introduced all-new F750 GS and F850 GS
bike models in India.

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History

Contracts/Agreements

Year: 2018

In September, the company, Tesla and LG Chem signed a five year supply agreement with Ganfeng
Lithium for lithium hydroxide.

Contracts/Agreements

Year: 2018

In October, the company renewed its partnership with Shell India regarding the supply of aftermarket
engine oils in India for three years till 2022.

Contracts/Agreements

Year: 2018

In November, BMW along with Diamler's announced its plans to tie up car-sharing and on-demand car
services.

Contracts/Agreements

Year: 2018

In July, the company signed a billion euros contract with Contemporary Amperex Technology Ltd (CATL)
to construct a factory to produce cells for electric cars in Europe.

Contracts/Agreements

Year: 2018

In October, the company partnered with Baidu to enhance the development of autonomous driving across
China.

Corporate Changes/Expansions

Year: 2018

In April, the company announced to invest more than EUR10 million in a new additive manufacturing
Campus, in Oberschleissheim, Germany.

Contracts/Agreements

Year: 2018

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History

In June, the company selected TTTech Auto for the development of highly automated driving functions.

Contracts/Agreements

Year: 2018

In June, the company entered into a collaboration with ZeroLight to create connected digital experiences
around the M Drive Tour.

Corporate Changes/Expansions

Year: 2018

In June, the company opened the new Shanghai Research & Development Center.

Acquisitions/Mergers/Takeovers

Year: 2016

In June, BMW acquired Parkmobile, the Netherlands-based the mobile app developer.

Contracts/Agreements

Year: 2018

In February, the company planned to form a joint venture for MINI electric vehicles in China. In line with
this, the company has signed a letter of intent with the Chinese manufacturer Great Wall Motor.

Acquisitions/Mergers/Takeovers

Year: 2018

In March, the company and Daimler AG signed an agreement to merge their mobility services business
units.

New Products/Services

Year: 2018

In February, the company launched its X3 third generation sports activity vehicle in Yangon, Myanmar.

New Products/Services

Year: 2018

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History

In January, The company announced its BMW i visualiser augmented reality app is now available on
(some) iPhones.

Plans/Strategy

Year: 2018

In February, BMW i3 Personal CoPilot Prototype introduced fully autonomous tech to Barcelona.

Contracts/Agreements

Year: 2018

In March, the company and Circulor partnered to use blockchain technology for eradicating child labor for
producing.

New Products/Services

Year: 2018

In January, the company introduced its first-ever X2 SUV in Detroit.

Others

Year: 2018

In March, BMW Group hired Goodby, Silverstein & Partners as its lead creative agency in the US.

Contracts/Agreements

Year: 2018

In March, the company and Drone Racing League collaborated to develop racing drones in the BMW
Group wind tunnel.

Contracts/Agreements

Year: 2017

In December, the company and Solid Power collaborated to develop EV batteries.

New Products/Services

Year: 2017

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History

In December, the company launched the BMW i visualiser augmented reality app for iPhones users.

New Products/Services

Year: 2017

In August, the company launched the BMW M5 revealed with 600hp and AWD.

Contracts/Agreements

Year: 2017

In November, the company and Snapchat, a social media platform, partnered to preview the new X2
SUV.

Corporate Changes/Expansions

Year: 2017

In April, BMW Korea opened a regional parts distribution center for BMW, MINI and motorcycle spare
parts in Anseong, Gyeonggi Province, South Korea.

New Products/Services

Year: 2017

In October, the company launched 330i Gran Turismo M Sport car.

New Products/Services

Year: 2017

In September, the company launched Mini JCW Pro Edition in India.

Contracts/Agreements

Year: 2017

In August, BMW Group announced renewal of principal partnership with London Symphony Orchestra for
open-air concerts for free in Trafalgar Square, London.

Contracts/Agreements

Year: 2017

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History

In July, BMW entered into a joint venture by San Miguel Companies to provide service units in
Philippines,the US.

New Products/Services

Year: 2017

In August, the company launched its new BMW i3s, electric car in the premium compact segment.

Contracts/Agreements

Year: 2017

In August, the company, Intel and Mobileye signed MoU with the intention for Fiat Chrysler Automobiles
to develop an autonomous driving platform for global deployment.

Corporate Changes/Expansions

Year: 2017

In July, the company opened up a new R&D centre in northeast China's Liaoning province.

New Products/Services

Year: 2017

In July, the company launched its new multifunctional instrument cluster with 6.5inch full-colour TFT
display.

Contracts/Agreements

Year: 2017

In June, the company partnered with Hankook to equip a new customer-racing model for BMW
Motorsport.

Financing Agreements

Year: 2017

In June, the company to invest US$600 million in South Carolina expansion plan.

New Products/Services

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History

Year: 2017

In June, the company launched BMW CarData to enable customised service options for BMW drivers
based on data from the vehicle.

Business / Operations Closure

Year: 2017

In June, BMW Group Korea opened its new regional distribution center in Anseong, Gyeonggi-do, South
Korea.

Corporate Changes/Expansions

Year: 2017

In May, the company launched a new regional parts distribution centre in Senai to expand its presence in
Malaysia.

Plans/Strategy

Year: 2017

In May, the company plans to launch hydrogen-powered production car in 2021.

Corporate Changes/Expansions

Year: 2017

BMW Brilliance Automotive opened the north section of its automotive plant in Dadong/Shenyang, China.

Contracts/Agreements

Year: 2017

BMW entered into an agreement with Hamburg for providing electro mobility options in Hamburg.

Plans/Strategy

Year: 2017

In November, BMW, Daimler, Ford Motor, and Volkswagen with Audi and Porsche planed a joint venture
for ultra-fast, high-power charging along major highways in Europe.

New Products/Services

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History

Year: 2016

BMW expanded its ReachNow services to Brooklyn, New York and launched four new mobility services
as a pilot.

Corporate Changes/Expansions

Year: 2016

The company expanded its production network with its own manufacturing site in Manaus, Brazil. BMW
opened a sales, brand, and driving experience centre in Japan.

Corporate Changes/Expansions

Year: 2016

The company expanded its production network with its own manufacturing site in Manaus, Brazil.

New Products/Services

Year: 2016

BMW extended its car-sharing programme and launched mobility services in Seattle, the US, under the
new brand name ‘ReachNow’.

Incorporation/Establishment

Year: 2016

BMW Brilliance Automotive opened new engine plant with light metal foundry in China. The new location
produces the BMW TwinPower Turbo three and four-cylinder petrol engines and forms part of the BBA
production network based in Shenyang in Northeastern China.

New Products/Services

Year: 2016

BMW introduced self-driving robots in the hall of Supply Logistics.

Contracts/Agreements

Year: 2016

BMW and SALEWA collaborated their expertise for sustainable mobility and a perfect outdoor experience

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History

for electric mobility.

Incorporation/Establishment

Year: 2016

BMW started the construction of a new plant in Mexico. The production of BMW 3 Series Sedan will be
started in the plant from 2019.

Contracts/Agreements

Year: 2016

BMW of North America won a contract to supply the Los Angeles Police Department with 100 fully-electric
BMW i3 vehicles for use in the department’s transportation fleet.

New Products/Services

Year: 2015

BMW i unveiled BMW i Home Charging Services, a solution for home charging of electric and plug-in
hybrid BMW models based on the smart home-enabled BMW i Wallbox Pro system.

New Products/Services

Year: 2015

BMW unveiled the new BMW 6 Series Convertible, the new BMW 6 Series Coupe and the new BMW 6
Series Gran Coupe at the North American International Auto Show in Detroit.

Incorporation/Establishment

Year: 2015

BMW Motorrad opened a flagship concept store in Cape Town, South Africa. BMW expanded the
footprint of its BMW i mobility services with an investment in the parking service provider Parkmobile
International.

Contracts/Agreements

Year: 2015

BMW concluded a strategic partnership with Moovit, local transit app to further expand the involvement of
the BMW i brand in the field of mobility services.

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History

New Products/Services

Year: 2015

The company rolled out the racing car BMW M6 GT3 at its premises in Dingolfing, Germany.

Contracts/Agreements

Year: 2015

BMW Motorrad formed a partnership with Alpinestars for motorcycle safety clothing systems. The first
product to be launched under this cooperation will be a BMW Motorrad jacket jointly developed by BMW
Motorrad and Alpinestars, combined with an airbag waistcoat developed using Alpinestars technology.

Regulatory Approval

Year: 2015

BMW, Audi and Mercedes won the US antitrust approval to buy Nokia's maps business (HERE) for
around E2.5 billion ($3.3 billion).

Incorporation/Establishment

Year: 2015

BMW spent another THB1.1 billion ($30.8 million) to raise production of its passenger cars and
motorcycles at its facility in Rayong's Amata City Industrial Estate, Thailand.

New Products/Services

Year: 2014

BMW Motorrad unveiled F 800 R and S 1000 RR motorcycles.

New Products/Services

Year: 2014

BMW's new armoured X5, the Security Plus, was launched. Also, BMW M GmbH launched the BMW M4
DTM Champion Edition. Soho House Group (SHG) and BMW i announced a global partnership across all
of SHG's 12 sites in Europe and North America.

Incorporation/Establishment

Year: 2014

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History

Also, the company announced its plans for a second North American factory to tap rising demand for its
vehicles in the region. The new BMW M4 Convertible was launched in the same year.

Incorporation/Establishment

Year: 2014

BMW opened a regional parts distribution center (RDC) in Lancaster, Texas, to serve the Southern
Region of the dealer network and supply everything BMW dealers need to service their customers.

Corporate Changes/Expansions

Year: 2014

BMW announced plans to spend $1 billion to boost production at its South Carolina assembly plant by
50% in the next two years.

Contracts/Agreements

Year: 2014

BMW extended its joint venture with Brilliance China Automotive Holdings until 2028. Subsequently,
BMW announced its plan to build a new plant in Mexico in close proximity to the city of San Luis Potosi.

Product Recall

Year: 2014

BMW announced the recall of 232,098 vehicles in China for a defective bolt design that may damage the
engine or cause it to fail to start.

New Products/Services

Year: 2013

BMW launched the 1-Series in India.

Incorporation/Establishment

Year: 2013

TVS Motor, a two-wheeler manufacturer in India, and BMW motorcycle division announced a deal to
jointly develop bikes that will give the Indian automaker access to BMW technology. BMW launched the
series version of its electric vehicle, the BMW i3. It is the company's first pure electric series-produced

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History

model.

Incorporation/Establishment

Year: 2013

In the same year, the company advanced its research expertise in Asia by opening the BMW Group
Technology Office China.

Contracts/Agreements

Year: 2013

BMW i Mobility Services signed an agreement with the Estonian-tech company NOW Innovations, a new
strategic partner, for providing mobile payment and billing solutions.

Contracts/Agreements

Year: 2013

In the same year, BMW and Toyota signed a binding agreement to commence collaborative research on
lithium-air batteries, a post-lithium-battery solution.

Contracts/Agreements

Year: 2013

BMW and Toyota Motor signed binding agreements aimed at the joint development of a fuel cell system,
joint development of architecture and components for a sports vehicle, and joint research and
development of lightweight technologies.

Acquisitions/Mergers/Takeovers

Year: 2013

Stefan Pierer, the Chief Executive Officer of KTM (an off-road motorbike manufacturer), acquired dirt bike
specialist brand Husqvarna Motorcycles from BMW.

Incorporation/Establishment

Year: 2012

BMW announced its plans to build a new plant in Brazil, which would have a production capacity of
approximately 30,000 vehicles per year.

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History

Corporate Changes/Expansions

Year: 2012

The company announced a $900 million investment to expand the production capacity at its US plant in
South Carolina.

Contracts/Agreements

Year: 2012

BMW signed a contract for the sale of Husqvarna with the Austrian company, Pierer Industrie.

Contracts/Agreements

Year: 2012

The company signed a memorandum of understanding with Toyota Motor aimed at long-term strategic
collaboration in four fields, joint development of a fuel cell system, joint development of architecture and
components for a future sports vehicle, collaboration on powertrain electrification and joint research and
development on lightweight technologies.

Contracts/Agreements

Year: 2012

BMW and its joint venture partner, Brilliance China Automotive Holdings, announced the opening of
automobile production facility in China.

Contracts/Agreements

Year: 2012

In the same year, BMW and Toyota Motor signed an agreement on collaborative research in the field of
next-generation lithium-ion battery cells.

New Products/Services

Year: 2011

The company launched its BMW sub-brand, BMW i.

Contracts/Agreements

Year: 2011

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BMW and PSA Peugeot Citroen signed an agreement to set up a 50-50 equity joint venture named BMW
Peugeot Citroen Electrification (BMWPCE). BMWPCE would focus on developing and producing hybrid
components, including battery packs, e-machines, generators, power electronics and chargers, while also
developing software for hybrid systems.

Acquisitions/Mergers/Takeovers

Year: 2011

BMW acquired a 15.16% stake in SGL Carbon SE.

Acquisitions/Mergers/Takeovers

Year: 2011

BMW, through its multi-brand fleet management division Alphabet International, acquired ING Car Lease,
the operational car leasing and fleet management business of ING Groep.

New Products/Services

Year: 2010

BMW announced plans of launching its first series production of electric-drive model in 2013. The vehicle
would be a zero-emission urban car and would be sold under the BMW brand.

Corporate Changes/Expansions

Year: 2010

BMW announced the expansion of its plant in Leipzig to make it the first location in Germany equipped to
handle large-scale production of zero-emission electric cars.

Corporate Changes/Expansions

Year: 2010

BMW expanded its production capacity and dealer network in India. The company expanded its
production capacity from 3,000 to 5,400 units and dealer network to 22 dealerships.

Contracts/Agreements

Year: 2010

The company and PSA Peugeot Citroen expanded their cooperation to develop hybrid components for

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History

front-wheel-drive vehicles.

Contracts/Agreements

Year: 2010

BMW received an order from Swedish automobile manufacturer, Saab, to supply petrol engines.

New Products/Services

Year: 2009

The company launched BMW X5 M and BMW X6 M models.

Incorporation/Establishment

Year: 2009

BMW opened BMW Shanghai Training Center, Asia's biggest BMW training center.

Incorporation/Establishment

Year: 2009

In the same year, BMW India opened new sales and service outlet in Coimbatore. BMW Motorsport and
NGK Spark extended their partnership in the motorsport arena. Under the terms of the agreement, NGK
Spark would supply spark plugs to BMW teams in Formula One, the World Touring Car Championship
(WTCC); and to the American Le Mans Series (ALMS).

Contracts/Agreements

Year: 2009

The company entered into a joint venture with Brilliance Automotive Holdings to build a second
production plant in China.

Contracts/Agreements

Year: 2009

BMW and the SGL Group agreed on the establishment of a joint venture for the production of carbon
fibers and textile semi-finished products (CFRP) for use in vehicle construction.

New Products/Services

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History

Year: 2008

BMW began selling 1-Series hatchbacks in China.

Divestiture

Year: 2008

BMW sold 72.9% stake in IT consulting firm, Cirquent (formerly Softlab) to the Japanese company, NTT
Data. Subsequently, BMW Middle East opened a sales center in Oman for premium pre-owned vehicles.

Contracts/Agreements

Year: 2008

In the same year, BMW and Fiat Group Automobiles (FGA) signed memorandum of understanding for a
possible cooperation in the areas of architecture and components for their MINI and Alfa Romeo vehicles.
As part of possible cooperation, BMW will provide FGA with support in launching the Alfa Romeo brand in
the North American market.

New Products/Services

Year: 2007

BMW rolled out its first locally-assembled 3-Series, the cheapest car with the BMW badge, in India.

Acquisitions/Mergers/Takeovers

Year: 2007

The company acquired DEKRA SudLeasing in Germany.

Acquisitions/Mergers/Takeovers

Year: 2005

Softlab acquired two information technology firms, Entory and Anite.

Incorporation/Establishment

Year: 2004

BMW de Mexico was established.

Acquisitions/Mergers/Takeovers

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Bayerische Motoren Werke AG
History

Year: 2004

The company acquired information technology companies, Softlab and Axentiv.

Regulatory Approval

Year: 2003

BMW's plan of starting production in China was approved by the state council.

Incorporation/Establishment

Year: 2003

The company established a new parts distribution center in Malaysia to serve the Asia-Pacific and
Oceania region.

Incorporation/Establishment

Year: 2003

BMW started its operations in Ireland, Denmark, Luxembourg, and Greece through its own subsidiaries.

Contracts/Agreements

Year: 2003

In the same year, the company formed a joint venture with Brilliance China Automotive Holdings.

New Products/Services

Year: 2001

The company re-launched the Mini brand.

Corporate Changes/Expansions

Year: 1998

Subsequently, the company restructured and sold its Land Rover sports utility vehicle operations to Ford.
It also sold Rover Cars unit to the Phoenix Consortium.

Acquisitions/Mergers/Takeovers

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Bayerische Motoren Werke AG
History

Year: 1998

BMW acquired rights to the name 'the Rolls-Royce brand' (cars).

Contracts/Agreements

Year: 1995

BMW concluded a contract for assembly in India. It also established a subsidiary in Brazil and entered
Norway, Finland, and South Korea.

Incorporation/Establishment

Year: 1990

BMW established a research and innovation center in Munich's northern suburbs, comprising design,
construction and test facilities; a prototype construction unit; and a pilot plant. BMW purchased the British
based car manufacturer, Rover group.

Incorporation/Establishment

Year: 1990

BMW returned to the manufacturing of aero engines by establishing BMW Rolls Royce.

Incorporation/Establishment

Year: 1988

The Z1 roadster was launched and the company opened a BMW repair center in Moscow and an import
center in Japan.

Incorporation/Establishment

Year: 1981

BMW became the first European car company to establish a subsidiary in Japan.

Research and Development

Year: 1979

The company supplied the first armored BMW and began research and development on hydrogen
engines. The period also saw cooperation with Steyr Daimler Puch.

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Bayerische Motoren Werke AG
History

New Products/Services

Year: 1973

The BMW 2002 Turbo from Munich became the first mass produced turbo vehicle in the world.

New Products/Services

Year: 1972

The first 5 Series car was launched.

Incorporation/Establishment

Year: 1972

BMW Motorsport was founded and the company built an assembly plant in South Africa.

Business / Operations Closure

Year: 1959

Following losses in the big limousine segment, BMW was put up for sale. However, small shareholders
and dealers helped BMW to continue with a new capital structure.

Corporate Changes/Expansions

Year: 1950

BMW's global expansion was well underway, with the company exporting nearly one fifth of all its output.

Contracts/Agreements

Year: 1929

The company also concluded a license agreement with American aircraft-engine manufacturer, Pratt &
Whitney to build radial engines. The company produced the first BMW car, Dixi.

Asset Purchase

Year: 1928

BMW purchased the car factory at Eisenach/Thuringia which had a license to build a small car, the Dixi.

Incorporation/Establishment

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Bayerische Motoren Werke AG
History

Year: 1917

Bayerische Motoren Werke Aktiengesellschaft (BMW or 'the company') was established and took over the
Bayerische Flugzeug-Werke (BFW).

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Bayerische Motoren Werke AG
Key Employees

Key Employees

KEY EMPLOYEES

Name Job Title Board Compensation


Hamid Haqparwar Managing Director-Middle Senior Management
East
Norbert Reithofer Chairman-Supervisory Board Executive Board 640000 EUR
Ingo Wirth Head-MINI, Head-BMW Senior Management
Motorrad Communications
Manfred Schoch Deputy Chairman- Executive Board 430000 EUR
Supervisory Board
Glenn Schmidt Head-Market Senior Management
Communications
Stefan Quandt Deputy Chairman- Executive Board 430000 EUR
Supervisory Board
Markus Appelhans Head-Archives, Collection Senior Management
and Classic Brand
Management, BMW Group
Classic
Stefan Schmid Deputy Chairman- Executive Board 430000 EUR
Supervisory Board
Bernd Koerber Head-Mini brand Senior Management
Rudratej Singh Chief Executive Officer-India, Senior Management
President-India
Karl-Ludwig Kley Deputy Chairman- Executive Board 430000 EUR
Supervisory Board
Milan Nedeljkovic Chief-Production Senior Management
Simone Menne Director Non Executive Board 218000 EUR
Ilka Horstmeier Head-Human Resources Senior Management
Christiane Benner Director Non Executive Board 216000 EUR
Alexander Bilgeri Head-Corporate Senior Management
Communications Strategy,
Messaging, Communication
Channels
Franz Markus Haniel Director Non Executive Board 220000 EUR
Birgit Hiller Head-Internal Corporate Senior Management
Communications and
Communications Production
Network
Reinhard Huttl Director Non Executive Board 189780 EUR
Ulrich Knieps Head-BMW Group Classic Senior Management
Heinrich Hiesinger Director Non Executive Board 140355 EUR

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Bayerische Motoren Werke AG
Key Employees

Susanne Klatten Director Non Executive Board 220000 EUR


Renate Kocher Director Non Executive Board 220000 EUR
Robert W. Lane Director Non Executive Board 218000 EUR
Horst Lischka Director Non Executive Board 220000 EUR
Willibald Low Director Non Executive Board 220000 EUR
Dominique Mohabeer Director Non Executive Board 220000 EUR
Brigitte Rodig Director Non Executive Board 220000 EUR
Werner Zierer Director Non Executive Board 220000 EUR
Jurgen Wechsler Director Non Executive Board 218000 EUR
Ralf Hattler Director Non Executive Board 220000 EUR
Klaus Frohlich Director-Development Senior Management 815883 EUR
Nicolas Peter Director-Finance Senior Management 842250 EUR
Milagros Caina Carreiro- Director-Human Resource Senior Management 975775 EUR
Andree and Industrial Relations
Peter Schwarzenbauer Director-MINI, BMW Senior Management 940954 EUR
Motorrad, Rolls-Royce,
Aftersales BMW Group
Oliver Zipse Chief Executive Officer Senior Management
Markus Duesmann Director-Purchasing and Senior Management 852468 EUR
Supplier Network
Pieter Nota Director-Sales and Brand Senior Management
BMW, Director-Aftersales
BMW Group
Hildegard Wortmann Head-Asis Pacific Region Senior Management
Jochen Goller Head-China Senior Management
Sven Schuwirth Head-Product Management Senior Management
and Marketing
Manfred Erlacher Managing Director Senior Management
Paul de Courtois Managing Director-BMW Senior Management
Group Asia
Sherry McCraw Vice President-Assembly Senior Management
Sherry McCraw Vice President-Assembly Senior Management
Stefan Diregger Vice President-Finance and Senior Management
Compliance
Andreas Guecker Vice President-Integration Senior Management
Product Projects
Murat Askel Vice President-Purchaser Senior Management
and Supplier Network -
Americas
Siegfried Mueller Vice President-Quality Senior Management
Management

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Bayerische Motoren Werke AG
Major Products & Services

Major Products & Services

MAJOR PRODUCTS & SERVICES


BMW is a manufacturer of automobiles and motorcycles. The company's key products and services
include the following:

Products:

Motorcycles
Automobiles
Vehicle Parts and Accessories

Services:

Car Leasing Services


Fleet Business
Retail Customer and Dealer Financing
Insurance Services
Customer Deposit Business

Brands:

BMW
MINI
Rolls-Royce
BMW Motorrad
Alphera
Alphabet

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Bayerische Motoren Werke AG
SWOT Analysis

SWOT Analysis

SWOT ANALYSIS
Bayerische Motoren Werke AG (BMW or “the company”) is an automobile and motorcycles manufacturing
company. Strong position in the international premium automobile market, robust focus on research and
development and revenue growth are the key strengths for the company, whereas limited liquidity position
and unfunded pension obligations remain the area of concern. In the future intense competition, changing
technology and foreign currency risk could affect the revenues and profitability of BMW. However,
positive outlook of global automotive manufacturing industry and strategic collaborations provide growth
opportunities to the company.

Strength Weakness

Strong position in the international premium Liquidity position


automobile market Unfunded pension obligations
Robust focus on R&D
Revenue Growth
Opportunity Threat

Strategic collaborations Intense competition


Positive outlook of global automotive manufacturing Foreign currency risk
industry Rapidly changing technology

Strength

Strong position in the international premium automobile market

BMW's strong global position in the premium automobile market enables it to sustain and enhance its
profitability and also positions it to generate long-term growth. The company owns three of the strongest
premium brands, such as BMW, MINI and Rolls-Royce in the automobile industry. The company offers
customers a full spectrum of premium products, from MINI in the small car segment to Rolls-Royce in the
ultra-luxury class. In addition to its strong position in the automotive market, BMW also offers a range of
financial services. The company sold a total of 2,463,526 BMW, MINI, and Rolls-Royce brand vehicles
during FY2017. Individually, these three automobile brands posted record sales, with 2,088,283 BMW
vehicles, 371,881 MINI vehicles, and 3,362 Rolls-Royce vehicles. Despite increasing uncertainties in
many markets, particularly in Europe, BMW retained its top position in the premium segment worldwide.

Robust focus on R&D

BMW has a strong focus on research and development (R&D) to manufacture high quality premium
products. During FY2017, a total of 14,047 employees were employed throughout the company’s global
research and innovation network at 16 locations spread over five countries, to deliver the highest product
quality and develop innovative technologies. The company spends heavily on R&D to develop new

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SWOT Analysis

products as well as to improve existing products. In FY2017, R&D expenditure of the company was
EUR6,108 million. In line with this, the company has launched new products in the past year. In May
2017, the company launched its first look of BMW 8 Series Coupe slated for 2018. Therefore, the
company's strong emphasis on R&D enables it to deliver new and innovative products that help in
generating higher revenues and profitability.

Revenue Growth

The company reported strong revenue growth in FY2017. Strong growth in revenue helps the company
gain investors' confidence and improving its ability to allocate adequate funds for future growth prospects.
In FY2017, BMW reported revenue of EUR98,678 million as compared to EUR94,163 million in FY2016,
an annual growth of 4.8%. The growth in revenue was primarily driven by higher sales volume of BMW
Group vehicles, growth in the leasing and credit financing contract portfolio and increased sales of
returned leasing vehicles in the Financial Services business.

Weakness

Liquidity position

Limited liquidity position puts the company at a disadvantage when funding any potential opportunities in
the market. The company’s current ratio was 1 in FY2017. This was lower than its competitors, Ford
Motor and Yamaha with respective current ratios of 1.2 and 1.7 in FY2017. This suggests that the
company is less able to meet its short-term obligations than some of its peers. At the end of the review
year, the company had total current liabilities worth EUR69,047 million, as compared to EUR67,989
million in FY2016.

Unfunded pension obligations

BMW has significant unfunded pension obligations. The company provides retirement benefits for most of
its employees, either directly or by contributing to independently administered funds. In FY2017, the
company's fair value of planned pension assets stood at EUR19,477 million as compared to defined
benefit obligations of EUR22,710 million, resulting into an unfunded status of EUR3,252 million. Going
ahead, the volatility in financial markets (equity and debt) could lead to decline in pension fund asset
values. Thus, unfunded pension obligation would force the company to make regular cash contributions
to bridge the gap between pension assets and liabilities, which in turn could pressurize the liquidity
position of the company.

Opportunity

Strategic collaborations

Strategic collaborations enhance the company’s product and service offerings. In March 2018, the
company entered into an agreement with Daimler AG to merge their mobility services business units. As
per this agreement, these two companies planned to expand and combine their existing on-demand

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SWOT Analysis

mobility offering in the areas of Parking, Charging, CarSharing, Multimodality and Ride-Hailing. This
merger allows the company to create a digital ecosystem by combining the mobility services. In February
2018, BMW announced to create a joint venture for MINI electric vehicles in China. In compliance with
this, the company signed a letter of intent with the Chinese manufacturer Great Wall Motor. This will help
the company for continued strategic development of its brand for the production of battery-electric MINI
vehicles in the world’s largest market for electromobility.

Positive outlook of global automotive manufacturing industry

The global automotive manufacturing industry has produced relatively consistent levels of growth over the
past few years. The industry is expected to continue to grow positively till 2021. According to MarketLine,
the global automotive manufacturing industry generated total revenues of US$1,378.9 billion in 2016.
Furthermore, the industry is expected to grow at a compound annual growth rate (CAGR) of 3.2% during
the 2016–21 period to reach a value of approximately US$1,617.8 billion by 2021. In addition, the industry
production volume is expected to rise to 160.2 million units by the end of 2021, representing a CAGR of
1.8% during the 2016–21 period. BMW's automobiles segment develops, manufactures, assembles and
sells automobiles and off-road vehicles. It also sells automotive spare parts and accessories. Thus, the
positive outlook of global automotive manufacturing industry could provide immense opportunities to
BMW to boost up revenues and market share.

Threat

Intense competition

The worldwide automotive market is highly competitive. BMW faces strong competition from large
automotive manufacturers in its various markets. The competition among various auto players is likely to
intensify in light of continuing globalization and consolidation in the worldwide automotive industry. The
factors impacting competition include product quality and features, safety, price, environmental
performance, as well as efficiency of product development and manufacturing system, establishment of
sales and service systems and sales finance. The company's major competitors include Renault, Ford
Motor, Volkswagen, Daimler, General Motors, Toyota Motor, Volvo, Yamaha, Tesla Motors, and others.
Hence, increased competition may lead to lower vehicle unit sales and increased inventory, which may
result in a further downward price pressure and adversely impact the company's financial condition and
results of operations.

Foreign currency risk

BMW is an enterprise with worldwide operations. It is a global company that sells its products in more
than 150 countries. The company's businesses are conducted in a variety of currencies, from which
currency risks arise. The company generates approximately 54.4% of its revenues from markets outside
Europe. Since a significant portion of the company revenues are generated outside the Euro currency
region and the procurement of production material and funding are also organized on a worldwide basis,
the currency risk is an extremely important factor for BMW earnings. Any changes in demand and
refinancing conditions, fluctuations in exchange rates have a significant impact on the company's
earnings. This related in particular to the US Dollar (the main source of risk in BMW's currency portfolio),

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SWOT Analysis

the Japanese Yen, the British Pound, and the Chinese Renminbi. In FY2017, the company recorded a
loss of EUR1,171 million due to foreign currency translation.The value of the company's equity
investment in foreign countries may fluctuate based upon changes in foreign currency exchange rates.
These fluctuations, which are recorded in a cumulative translation adjustment account, may result in
losses in the event a foreign subsidiary is sold or closed at a time when the foreign currency is weaker
than when the company initially invested in the country. Therefore, any unfavorable change in other
currencies would have an adverse impact on the profitability of the company.

Rapidly changing technology

Automotive market, in which the company operates, is subject to rapid technological changes. The
introduction of products using new technologies and the adoption of new industry standards can make
existing products or products under development, obsolete or unmarketable. In this scenario, to compete
effectively, the company has to continuously innovate and introduce new products that gain market
acceptance. Unless the company understands the customers’ requirements and adapts the emerging
technologies in the market and introduces new products and solutions, its business may be adversely
affected.

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Bayerische Motoren Werke AG
Top Competitors

Top Competitors

TOP COMPETITORS
The following companies are the major competitors of Bayerische Motoren Werke AG

AB Volvo
Daimler AG
Ford Motor Company
General Motors Company
Renault SA
Tesla, Inc.
Toyota Motor Corporation
Volkswagen AG
Yamaha Motor Co., Ltd.

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Company View

Company View

COMPANY VIEW
A statement by Mr. Harald Kruger, the Chairman of BMW is given below. The following statement has
been taken from the company's annual report for FY2017.

Dear Shareholders,

Progress is not possible without change. Change is a constant in all of our lives. The BMW Group charts
its own course – with innovation, determination and foresight. We want to offer solutions for the
challenges of today and tomorrow. Each and every one of our associates is giving their all. Our corporate
culture encourages values of openness and transparency in our everyday actions. Financial year 2017:
goals accomplished At the BMW Group, we stand by our promises. And we deliver! We achieved our
targets for the financial year 2017, with new all-time highs for automobile and motorcycle deliveries, as
well as Group pre-tax earnings.

BMW Group leads global premium segment in 2017


More and more customers are buying vehicles built by the BMW Group. Our customers have made this
company a leading manufacturer in the global premium segment for the past 14 years. For the seventh
consecutive year, sales reached a new all-time high in 2017. As forecast, automotive deliveries rose
slightly to 2.46 million vehicles. This represents an increase of 4.1 percent in a highly competitive
environment. Our strong, emotional brands are extremely desirable to customers. In Fortune Magazine’s
“World’s Most Admired Companies”, the BMW Group is now the highest-ranked automobile manufacturer
in the top 20 and the most admired European company.

All-time highs for BMW, BMW M, MINI and BMW Motorrad


Our core BMW brand once again sold more than two million vehicles in 2017 – over four percent more
than the previous year. BMW M GmbH also contributed to this, reporting record deliveries of more than
80,000 M and M Performance models for the first time. MINI sales climbed more than 3 percent to over
370,000 vehicles. BMW Motorrad saw a significant increase, with deliveries of motorcycles and scooters
up more than 13 percent to 164,000 units. In the ultra-luxury segment, Rolls-Royce was unable to match
the previous year’s strong result. With the Phantom model changeover and in a difficult environment,
sales decreased by around 16 percent to 3,362 vehicles.

Milestone: over 100,000 electrified vehicles sold


Electric mobility is currently our main strategic focus. We reached an important milestone on the road to
sustainable mobility last year, when I presented the 100,000th electrified vehicle sold by the BMW Group
to its new owner at BMW Welt in Munich. It was a BMW i3, purchased by an 80-year-old customer –
which just goes to show that it is never too late to switch to an electric car. In 2017, we delivered 103,080
cars with electrified drivetrains to customers. Overall, sales of our BMW i models together with BMW
iPerformance and MINI Electric plug-in hybrids increased by two-thirds over the previous year.

Every customer and every market counts


It is part of our philosophy that every customer counts – and so does every market. We aim for a
balanced distribution of sales across the main market regions of Europe, Asia and the Americas. This
enables us to balance out regional market fluctuations. Asia was the main growth driver in 2017 and

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Company View

China the most important single market. In Mainland China, deliveries climbed to more than 590,000
vehicles. In Europe, sales remained on a par with the previous year, at around 1.1 million units, despite a
downturn in the UK, with ongoing Brexit negotiations. In the Americas and the US, we saw slight
decreases, with total sales of around 450,000 vehicles for the region. However, the trend has reversed in
the US since late 2017.

Our value creation is as global as it is flexible


The high flexibility of our global production network lays the foundation for the BMW Groupʼs continued
growth. In 2017, twice as many vehicles came off the production line than in 2009. The company currently
operates 31 facilities in 14 countries, and we continue to invest in our locations in Germany and
worldwide. A good example of this is the major expansion of our Dadong plant in Shenyang, China, which
we operate as part of our joint venture with Brilliance China Automotive Holdings Ltd. In San Luis Potosí,
Mexico, plant construction is proceeding according to schedule. We are already qualifying young
specialists at our new training centre there. Over the next few years, we will see different types of
drivetrains on the roads. We are preparing our sites for this diversity by creating flexible architectures and
plants. This will allow us to produce models with efficient combustion engines alongside electric vehicles
and plug-in hybrids. From 2020 on, the use of scalable modular electric construction kits will enable us to
fit all model series with any type of drivetrain. This will make us extremely flexible, whichever way demand
develops.

Financial indicators reach new highs:


In the financial year 2017, Group revenues rose slightly to reach a new all-time high of 98.7 billion euros.
Earnings before tax posted a significant increase of 10.2 percent year-on-year and exceeded 10 billion
euros for the first time. Annual net profit was up 26 percent to 8.7 billion euros. The Group financial
statements also reflect the positive impact of the tax reform in the US. The EBIT margin in the Automotive
segment stands at 8.9 per cent and therefore remains within our target range. The Financial Services
segment once again made a significant contribution to the Group result, with pre-tax earnings of more
than 2 billion euros.

Significantly higher dividend


Dear shareholders, your company remains on track for success – and it is only fitting that you should
share in that success. The Board of Management and Supervisory Board will therefore propose to the
Annual General Meeting that the unappropriated profit of BMW AG for the financial year 2017 be used to
issue a dividend of 4.00 euros per share of common stock and 4.02 euros per share of preferred stock.
That is the highest dividend the company has ever paid. BMW AG associates in Germany will also benefit
from the companyʼs positive performance through our profit-sharing programme.

The momentum will continue in financial year 2018: Phase II of the biggest model offensive in our history
In 2018, we will enter the second year of the biggest model offensive in our history. We will continue
moving forward, with highly emotional new models like the BMW i8 Roadster and the BMW Z4. We are
focusing on two segments in particular: first, the highly profitable luxury class. Here, we will be launching
new luxury models like the BMW 8 Series, the BMW X7 and the Rolls-Royce Phantom onto the market.
These will bring us closer to our goal of occupying the leading position in the luxury segment. 2018 will
also be our “X year”, with the expansion of our highly successful BMW X family. As well as the X7, this
will include the new X3 available since late last year, the cool new X2 and the new X4. I am sure our new
X vehicles will totally appeal to our customers.

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Bayerische Motoren Werke AG
Company View

Half a million electrified vehicles in total by the end of 2019


Electrification will remain a top priority for us over the coming years. We aim to sell more than 140,000
electrified vehicles in 2018 and have half a million electrified BMWs and MINIs on the roads by the end of
2019. When the BMW i3 was released in 2013, not many would have believed that the BMW Group
would today be leading the market for electrified vehicles in Europe. Today, in this growing segment, we
already have a much larger market share than in traditional drivetrains. All our brands will gradually be
electrified. All electrified BMW models will become part of BMW i. We have a clear roadmap to 2025: in
2019, a battery-electric MINI; in 2020, the first fully electric model from the core BMW brand, the X3.
These will be followed in 2021 by the iNEXT, our new technology flagship, which the whole company will
learn from.

BMW i Vision Dynamics eagerly awaited


This concept car was one of the stars of the Frankfurt Motor Show in 2017. In the BMW i Vision
Dynamics, we are targeting an electric range of 600 kilometres – fifth-generation storage and battery
technology will make this possible.

Electrification pays off: European fleet CO2 emissions continue to fall


By stepping up the pace on sustainable drivetrains, we are also reducing our fleet CO2 emissions. This
was also the case in 2017, even though the percentage of diesel vehicles decreased, partly due to the
current discussions in Germany. Emissions figures for our new vehicle fleet in Europe currently stand at
122 grams of CO2 per kilometre. We have a clear objective to meet the European Unionʼs emissions
requirements from 2021.

Developing electric mobility infrastructure


Against this backdrop, we are actively supporting infrastructure development. We aim to be a system
provider for electric mobility: with ChargeNow and IONITY for charging infrastructure, the new BMW
Energy Services business segment and our Battery Cell Competence Centre in Munich.

The future belongs to autonomous driving


We will officially open our campus for autonomous driving, just outside Munich, in spring 2018. Here, we
will work with our partners, Intel and Mobileye, to develop autonomous driving – which we see as one of
the main driving forces for the mobility of tomorrow. A growing number of renowned companies from
different industries are joining our shared platform. We believe that security is vital to autonomous driving
– not just with respect to the vehicles themselves, but also customer data. Ten million BMW Group
vehicles are already connected via Connected Drive. It takes about 25 million test kilometres to get an
autonomous vehicle ready for series production. In 2018, our fleet of autonomous BMW 7 Series models
will continue to collect data on the roads, mainly in Germany, Israel and California.

Global expansion of the NOW family


Systematic expansion of our mobility services is firmly anchored in our Strategy NUMBER ONE > NEXT.
In early 2018, we signed a contract to acquire 100 percent of DriveNow. Our premium car-sharing service
already has over a million customers in 13 cities. A growing number of older people, families and
business travellers are also using DriveNow. Our ReachNow service is available in the US and, since late
2017, also in China, in collaboration with a local partner. Finding a parking space is a problem for many
drivers. Earlier this year, the BMW Group acquired Parkmobile LLC, in a move that makes us the largest

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Company View

provider of mobile parking services in North America and Europe, with 22 million customers in 1,000
cities.

Dear Shareholders,
These examples show how we are successfully shaping the future of mobility in all its different facets.
With your support, we are transforming ourselves into a tech company for mobility with a clear focus on
customers and service. You have given us your backing for our long-term approach with Strategy
NUMBER ONE > NEXT. For that, I would like to thank you personally, and on behalf of the entire Board
of Management and our associates worldwide.

Our associates stand behind Strategy NUMBER ONE > NEXT


According to our most recent employee survey, 90 percent of our associates say they are proud to work
for the BMW Group. More than 80 percent say they are familiar with the target and content of our
strategy. This shared understanding will give us even greater momentum. We all want the BMW Group to
be the first place customers turn to for individual premium mobility experiences. We aim to be the clear
number one.

Your company delivers consistently high profitability


Of course, dear shareholders, that also means ensuring your company remains profitable. The BMW
Group has the financial resources to fund these upfront investments in the future – which gives us a clear
competitive edge. Our R&D ratio will increase in 2018, from 6.5 to 7 percent, or around 7 billion euros.
Expenditure will also remain high in 2019. For the past eight years, we have kept the EBIT margin in the
Automotive segment within our target range of 8 to 10 percent, or higher, from one quarter to the next.
We intend to maintain this high-level of consistency.

Top-rated European automobile manufacturer


Our sharp focus on the future, combined with solid financials, enables us to have easier access to
international capital markets. Moodyʼs has upgraded BMW AGʼs long-term rating to A1. Our company
also has the highest Standard & Poorʼs rating of any European automobile manufacturer.

We will continue to follow our path, taking advantage of the opportunities that arise. By doing so, we can
ensure that BMW AG remains an attractive investment over the long term and a company with a
promising future.

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Bayerische Motoren Werke AG
Locations And Subsidiaries

Locations And Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office

Bayerische Motoren Werke AG


Petuelring 130
Munich
Bayern
Munich
Bayern
DEU
Phone:49 89 3820
www.bmwgroup.com

Other Locations and Subsidiaries

BMW (South Africa) (Pty) Ltd BMW Australia Ltd.


1 Bavaria Avenue 783 Springvale Rd
Randjespark Ext 17 Mulgrave
Midrand Victoria
Gauteng Mulgrave
Midrand Victoria
Gauteng AUS
ZAF Phone:61 3 92644000
Phone:27 125223000 Fax:61 3 95620289
Fax:27 12 5222347 www.bmw.co.au
www.bmw.co.za
BMW Automotive Finance (China) Co. LTD BMW Financial Services Mexico, S. A. de C. V.,
22F Tower B SOFOM, E.N.R
Gateway Plaza Number 18 Xia Guangli Paseo de los Tamarindos 100-502
North Road East Third Ring Bosques de las Lomas
Chaoyang District CP 05120
CHN Delegacion Cuajimalpa
http://http://www.bmw.com.cn MEX
http://http://www.bmwfs.com.mx
BMW France S.A. BMW India Private Limited
3 Avenue Ampere 7Th Floor
78886 Saint Quentin en Yvelines Tower B
FRA Gurugram
http://www.bmw.fr Haryana
Gurugram
Haryana
IND

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Bayerische Motoren Werke AG
Locations And Subsidiaries

Phone:91 124 4566600


Fax:91 124 4566601
www.bmw.in
BMW Leasing (Thailand) Co., Ltd. BMW Manufacturing Co LLC
THA 1400 Highway 101 South
Greer
South Carolina
Greer
South Carolina
USA
Phone:1 864 8026000
www.bmwusfactory.com
BMW New Zealand Ltd. BMW of North America, LLC
7-15 Great South Road 300 Chestnut Ridge Road
Pacific Business Centre Woodcliff Lake
Mount Wellington New Jersey
Mount Wellington Woodcliff Lake
NZL New Jersey
Phone:64 95736999 USA
Fax:64 95736998
www.bmw.co.nz
Rolls-Royce Motor Cars Ltd
The Drive
Westhampnett
Chichester
West Sussex PO18 0SH
GBR
http://www.rollsroycemotorcars.com

Bayerische Motoren Werke AG Page 43


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