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BMW Group Investor Presentation BMW Group Investor Presentation November

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					BMW Group
Investor Presentation




November 2008
BMW Group
Investor Presentation
November 2008
                        BMW Group Update.
Page 2
                        Key figures first nine month 2008.


                        Euro million                                                   2008                2007        Change
                                                                                Jan. – Sept.        Jan. – Sept.         in %
                        Revenues (Group)                                             40,425              40,412               -
                          Revenues Automobiles                                       37,029              38,782            -4.5
                        Profit before financial result (EBIT, Group)                  1,639               2,904           -43.6
                          EBIT Automobiles                                             1,155              2,273           -49,2
                          EBIT Motorcycles                                                87                102           -14.7
                          EBIT Financial Services                                         92                545           -83.1
                        Profit before Tax (Group)                                     1,522               2,682           -43,3
                        Net profit                                                    1,292               2,143           -39,7
                        EPS in Euro (common/preferred)                            1.97/1.98           3.27/3.28    -39.8/-39.6
                        Group EBT margin (in %)                                          3.8                 6.6          -42.4
                        Group EBT margin (in %), adjusted*                               7.0                 6.5            7.7


                         *Group EBT in 9M-2008 adjusted for additional risk provisions of Euro 1,037mn and expenses for workforce
                         reductions of Euro 258mn. Group EBT in 9M-2007 adjusted for the exceptional gain of Euro 66mn on the
                         Rolls-Royce exchangeable bond.
BMW Group
Investor Presentation
November 2008
                        BMW Group Update.
Page 3
                        Targets and Guidance.


                         Due to the worsening of the financial crisis, it is currently
                          impossible to make stable forecasts for the rest of 2008
                          and for the year 2009. We will still be able to achieve a
                          result that is clearly positive in 2008.
                         In 2010, we are targeting a Group return on sales of at
                          least 6%. This corresponds to an EBIT margin of almost
                          6% or more for the Automobiles Segment. The
                          achievement of these targets is clearly dependent on how
                          quickly and how well the economy and the sales markets
                          recover.
                         We remain committed to achieving our goals for 2012!
BMW Group
Investor Presentation
November 2008
                        BMW Group Update.
Page 4
                        Measures to cope with current challenges.


                         We are using the flexible structures we have built up throughout the BMW
                          Group to bring production volumes in line with demand and to avoid increases in
                          inventory levels.
                         Alongside production volume reductions, we will also be working to reduce
                          working capital with the aid of targeted receivables management. This will also
                          have a positive impact on free cash flow.
                         We are currently in the process of reducing material and fixed costs. The first
                          signs of success are beginning to work their way through into the cost of sales.
                         We are also achieving greater efficiency in the development of new vehicles.
                          We have been able to reduce R&D expenditure without in any way neglecting
                          investment for the future.
                         Profitability now takes absolute precedence. Vehicle projects that do not
                          meet our internal rate of return requirements will be cancelled – as has
                          happened with the X7 and Concept CS.
                         The lower workforce size will generate annual personnel expense savings of
                          EUR 500 million from 2009 onwards. Reducing voluntary payments over and
                          above union-agreed rates will also have a positive impact on personnel expense.
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 5
                        Core Elements of Corporate Strategy.




                                     Strategic Realignment

                           Premium Brand Strategy:    Process management:

                             Focus on premium         Flexibility in production
                              segments in the
                              automobile and           Component exchange
                             motorcycle market
                                                            Networking


                                   Sustainability & EfficientDynamics

                                           Financial Strategy
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 6
                        Strategic Objective.




                         The BMW Group is the leading
                         provider of premium products
                         and premium services for
                         individual mobility.
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 7
                        The way ahead – Number ONE.


                        Number ONE defines
                         our vision for the year 2020.
                         our mid-term targets for the year 2012.
                         our internal milestones.

                        Our vision is targeted towards creating
                        value and securing future success. We
                        are driven by our goal to increase
                        profitability.
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 8
                        Targets 2012.


                        Group                                           2006            2012
                        Auto Sales (‘000 units)                         1,374           1,800

                        Motorcycle Sales (‘000 units)                     100             150


                        R&D ratio (%)                                      6.5       5.0 – 5.5
                        Capex ratio (%)                                    8.8           <7.0


                        Dividend (euro, common/prefered)             0.70/0.72   substantial increase

                        Auto Segment
                        RoCE (%)                                         21.7             >26

                        Return on Sales (EBIT, %)                          6.4          8 – 10

                        Free Cash Flow* (euro million)                    956          >2,000
                        *Free Cash Flow from Industrial Operations
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 9
                        Improvement of R&D ratio.



                        7.0%

                        6.5%                                         6.7%
                                                        6.4%                  6.5%
                        6.0%                  6.2%
                                 5.8%                                                  5.6%
                        5.5%

                        5.0%
                               4.9%
                        4.5%

                        4.0%
                          2001        2002     2003       2004       2005    2006    2007     2012




                               Average R&D ratio 2001-2007: 6.0%
                               R&D ratio: R&D Expenditure (HGB) / Revenues
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 10
                        Improvement of Capex ratio.



                        11.0%

                                            10.2%
                        10.0%
                                    9.5%                      9.8%
                        9.0%
                                9.1%                                        8.8%
                        8.0%                                      8.6%
                                                                                   7.6%
                        7.0%
                                                                                          Target: <7%
                        6.0%

                                2001   2002     2003     2004     2005   2006   2007        2012




                                Average Capex ratio 2001-2007: 9.1%
                                Capex ratio: Total Capex / Revenues
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 11
                        Personnel cost reduction.


                         Use of flexibility to decrease temporary workforce.
                         Enable staff to enter into early retirement
                          programmes.
                         Take advantage of attrition and not re-staff vacancies.
                         Make targeted offers and allow employees to end their
                          employment voluntarily.

                        With the help of this package we plan to
                        achieve annual cost savings of up to
                        Euro 500 million starting in 2009.
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 12
                        Reduction of Personnel Costs.



                                               Reduction of 5,000 temporary workers
                                                          2,500 by the end of 2007


                                                          2,500 by the end of 2008

                          BMW Group
                          107,593
                                               Reduction of 3,100 permanent staff
                          employees
                                                          2,500 in Germany




                                                          600 in subsidiaries
                                                          outside Germany
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 13
                        Reduction of material costs.


                        Cost of sales                   The material costs represent
                         ~€ 44bn*                        the biggest cost pool.
                                                        We want to achieve
                                                         significant cost reductions in
                                         Material costs the supply chain.
                                          ~€ 26bn*      We will not only negotiate
                                                         harder but we will work close
                                                         together with the suppliers
                                                         to ensure sustainable cost
                                                         reductions.
                                                        We will implement the
                                                         efficiency-enhancement
                                                         measures in all future
                                                         product and technology
                         *2007 figures                   projects.
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 14
                        Efficiency improvements.



                        6,000

                        5,000

                        4,000
                                                          Expenses / fixed costs / R&D
                        3,000

                        2,000

                        1,000
                                                                   Cost of materials / purchasing
                        0
                                2008           2009              2010                2011           2012


                            Cost of materials/purchasing: €4bn or 2/3 of the total potential
                            Expenses/fixed costs/R&D:       €2bn or 1/3 of the total potential
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 15
                        Natural Hedging.

                                         +30%




                                          200k 260k
                                          Oxford


                               +60%
                                                                +47%

                                                            30k 44k
                           150k 240k
                           Spartanburg                      Shenyang


                        Significant increase in purchasing volume in
                        the NAFTA region
                        (based on 10% of total purchasing in 2007).
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 16
                        Core Elements of Corporate Strategy.




                                     Strategic Realignment

                           Premium Brand Strategy:     Process management:

                             Focus on premium         Flexibility in production
                              segments in the
                              automobile and           Component exchange
                             motorcycle market
                                                              Networking


                                             Sustainability

                                           Financial Strategy
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 17
                        Three Authentic Premium Brands.




                                              The world‟s most
                           Sheer driving                             The pinnacle of
                                           exciting premium small
                             pleasure                               automobile luxury
                                                  car brand
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 18
                        Growth with new models.


                        Expansion of BMW X model series with BMW X6 and X1

                        BMW Progressive Activity Sedan

                        Rolls-Royce Phantom Coupe

                        Expansion of Rolls-Royce range with smaller model

                        MINI Sports Activity Vehicle

                        Project i
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 19
                        Priority on growth markets.


                                 Eastern Europe


                                                              Russia


                         USA                                  China




                                                      India
                         BMW Group Automobiles.
BMW Group          1.0
Investor Presentation
November 2008
Page 20            0.8
                         Retail Unit Sales 1990 – 2020.
                  0.6


                  0.4
                           1990              1995     2000   2001   2002   2003    2004     2005   2006    2007     2010     2012     2020
                     2.2
                             million units
                                                                             BMW     MINI    Rolls-Royce

                     2.0
                                                                                                                                       >2.0

                     1.8
                                                                                                                               1.8

                     1.6
                                                                                                                     1.6*

                     1.4


                     1.2


                     1.0


                     0.8


                     0.6


                     0.4
                             1990              1995     2000   2001   2002    2003   2004     2005   2006    2007     2010     2012     2020
                            *The achievement of the 2010 sales target is clearly dependent on how quickly and how well the
                                                                   BMW     MINI Rolls-Royce
                             economy and the sales markets recover.
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
                        Deliveries to customers 2008 YTD.
Page 21




                        Deliveries of automobiles
                                                    31 Oct. 2008     31 Oct. 2007    Change in %
                        in units
                        Total BMW                      1,023,743        1,034,815        -1.1%
                          1 series                         191,677         129,114        48.5%

                          3 series                         406,015         461,593        -12.0%

                          5 series                         171,603         184,493         -7.0%

                          6 series                          14,422          15,737         -8.4%

                          7 series                          32,151          34,916         -7.9%

                          X3                                72,296          91,868        -21.3%

                          X5                                99,599          92,770         7.4%

                          X6                                19,290          19,290             -

                         Z4                                 16,690          24,325        -31.4%

                        Total MINI                       202,302          182,997        10.5%
                        Total Rolls-Royce                     945             686        37.8%
                        BMW Group                    1,226,990        1,218,498           0.7%
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
                        Deliveries to customers 2007.
Page 22




                        Deliveries of automobiles    2007         2006         Change in
                        in units                                                     %
                        Total BMW                    1,276,793    1,185,088          7.7
                          1 series                     165,803      151,918          9.1
                          3 series                     555,219      508,479          9.2
                          5 series                     230,845      232,193         -0.6

                          6 series                      19,626       21,947        -10.6

                          7 series                      44,421       50,227        -11.6
                          X3                           111,879      114,000         -1.9

                          X5                           120,617       75,321         60.1

                          Z4                            28,383       30,996         -8.4

                         Z8                                  0             7           -

                        Total MINI                    222,875      188,077         18.5
                        Total Rolls-Royce               1,010            805       25.5
                        BMW Group                   1,500,678    1,373,970          9.2
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 23
                        BMW and MINI Retail by model 2007 (2006).

                                      165,803                                        MINI retail by model 2007 (2006).
                                      (151,918)
                                                                                                    82,668
                                                                                                   (64,151)




                                                                                        222,875                  52,976
                                                                                       (188,077)                 (41,092)
                                                  555,219
                                                  (508,479)                                                                  35,108
                                                                                                                            (40,138)
                                                                                                                                         25,445
                                                                                                                                        (41,996)
                        1,276,793                                                                                                                      4,914

                        (1,185,088)                                                      Total     Cooper       Cooper S    Convert.   One, One D     Clubman

                                                                                         100%       37.1%         23.8%      15.8%       11,4%         2.2%
                                                                                        (100%)     (34.5%)       (21.8%)    (21.3%)     (22.3%)         (0%)

                                                              230,845
                                                              (232,193)    19,626
                                                                                        44,421
                                                                          (21,947)
                                                                                       (50,227)           111,879
                                                                                                         (114,000)


                                                                                                                             120,617                28,383
                                                                                                                             (75,321)              (30,996)


                          Total       1 Series    3 Series    5 Series    6 Series     7 Series                X3                X5                  Z4

                          100%         13.0%       43.5%       18.1%        1.5%         3.5%                  8.8%            9.4%                  2.2%
                         (100%)       (12.9%)     (42.9%)     (19.6%)      (1.9%)       (4.2%)                (9.6%)          (6.4%)                (2.6%)
BMW Group
Investor Presentation
November 2008
                         BMW Group Automobiles.
Page 24
                         Brand and Product Overview.

                                   Sedan        Wagon           Hatch         Coupe       Convert.     Roadster   PAS   SAV
      Luxury            PlusPlus   Phantom                                     Coupe        Convert.


                        PlusPlus

                        Plus       7 Series                                    6 Series    6 Series

                        Base

    Upper               Plus       5 Series       5 Series                                                              X5, X6
   Medium
                        Base

    Lower               Plus       3 Series      3 Series
                                                                               3 Series
                                                                                           3 Series        Z4           X3
                                                                               Z4
   Medium
                        Base

 Compact                Plus                                    1 Series       1 Series    1 Series                     X1


                        Base

        Small           Plus                        MINI           MINI                      MINI


                        Base

                                              New products to be launched until 2012
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 25
                        Current models – lifecycle overview.
                                           2003                    2004            2005          2006             2007                   2008 - 2012

                    Rolls Royce            Phantom                                                                       Convert.        Coupe



                        New Seg                                                                                                                   PAS


                                                                                                              X5 NG                 X6            X6 hybrid
                        X Models                              X3
                                                                                                         X3 LCI                              X1         X3 NG

                                                                                                   LCI
                        Z4                                                                                                                  NG
                                                                                                      Coupe


                         7 Series                                                   LCI                               Sedan NG                      Hybrid


                                                                   Coupe
                         6 Series                                                                                             LCI                       NG
                                                                     Convert.

                                                 Sedan
                         5 Series                                                                                 LCI                                 NG
                                                                   Touring

                                                                       Sedan                  Coupe         M3 Coupe                 LCI Sedan/Touring
                         3 Series
                                                                             Touring             Convert.                           M3 Sedan, Convert.

                                                                                                                  LCI         Coupe
                         1 Series                                            5 door hatch
                                                                                                                   3 door hatch          Convert.

                                                                                    Cooper / Cooper S          Clubman                    SAV
                             MINI
                                                                                              One / Cooper D                               Convertible
                                    *LCI: Lifecycle Impulse
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 26
                        Model Renewal Rate.

                        Cumulated Model Renewal Rate (as % of total expected annual sales volume)
                        70%                                                                          3.5
                                                                                          >60%

                               3.3 years
                        60%                                                                          3.0



                                                     Ø age of product portfolio
                        50%
                                                      (sales & mix adjusted)                         2.5
                                                                                         2.6 years
                                                                                  40%
                        40%                                                                          2.0




                        30%                                                                          1.5



                                                               20%
                        20%                                                                          1.0



                                              10%
                        10%                                                                          0.5

                                 3%

                         0%                                                                          0.0
                                 2008         2009             2010               2011    2012
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 27
                        New Products 2007/2008.

                        BMW 1 Series Convertible




                                                   BMW 1 Series coupe




                        BMW 1 Series
                        three-door version
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 28
                        Product Overview MINI.

                        MINI Hatch.          MINI Convertible.




                         MINI Clubman.
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 29
                        New Product 2008.

                        BMW X6
                        Launch 4/2008
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 30
                        New Product 2008.

                        Rolls-Royce Phantom Coupé
                        Launch 9/2008
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 31
                        New Product 2008.

                        3 Series facelift
                        Launch 09/2008
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 32
                        New Product 2008.

                        BMW 7 series
                        Launch 11/2008
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 33
                        New Product 2009.

                        BMW Concept X1
                        Launch Q4-2009
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 34
                        BMW Advanced Diesel with Blue Performance.

                        US market introduction: December 2008

                        X5 Xdrive 35d
                         Emission Standard LEVII / Bin5
                         265 hp, 0-60 mph < 7,4s
                         Fuel consumption > 27 mpg (USC)




                        335d
                         Emission Standard LEVII / Bin5
                         265 hp, 0-60 mph < 6,2s
                         Fuel consumption > 33 mpg (USC)
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 35
                        The worldwide Premium Segment grows to
                        9.1mn units in 2021.
                  10,000
                                       Premium Segment:
                    9,000
                                       CAGR 2007-2021: 2.6%
                                       Total Growth 2007-2021: 44%
                                                                                                                                                                       CAGR +8.8%
                    8,000                  Base Segment:
                                           CAGR 2007-2021: 2.4%
                    7,000
                                           Total Growth 2007-2021: 40%                                                                                                 CAGR +4.6%

                    6,000


                    5,000                                                                                                                                              CAGR +2.1%

                    4,000
                                             Region („000 units)                2007          2021          Chg.
                                             World                              6,344         9,133           44%
                    3,000
                                             China                                 279           911        227%
                                             Asia, Pacific & Africa                738        1,379           87%                                                      CAGR +1.3%
                    2,000
                                             Americas                           2,246         2,991           33%
                                             Europe (ex Germany)                2,110         2,531           20%
                    1,000
                                             Germany                               972        1,321           36%                                                      CAGR +2.2%
                         0




                                                                                                                                                      2014

                                                                                                                                                             2015

                                                                                                                                                                    2016

                                                                                                                                                                           2017

                                                                                                                                                                                  2018

                                                                                                                                                                                         2019

                                                                                                                                                                                                2020

                                                                                                                                                                                                       2021
                             1997

                                    1998

                                             1999

                                                    2000

                                                           2001

                                                                  2002

                                                                         2003

                                                                                2004

                                                                                       2005

                                                                                              2006

                                                                                                     2007

                                                                                                            2008

                                                                                                                   2009

                                                                                                                          2010

                                                                                                                                 2011

                                                                                                                                        2012

                                                                                                                                               2013
                        Source: Global Insight
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 36
                        Premium Segment growth in Emerging
                        Markets.
                        Source: Global Insight, in ‘000 units
                        1,200
                                  206.6%
                                                                                                     2008 Sales Forecast           Unit Gain Forecast by 2021


                        1,000




                         800


                                    851


                         600

                                                86.2%


                         400

                                                  318

                                                              78.7%
                                                                           104.8%
                         200
                                                                146                      31.1%        123.4%        131.9%       1,010.7%       150.3%      142.7%
                                    278                                       128
                                                  171                                       77            92
                                                                                                                                                       24          21
                                                                82                                                     52            73
                                                                              62            59            41                                           10           9
                                                                                                                       22                 7
                          -
                                    China        Russia        GCC*          New EU          Latin     South Korea    Ukraine        India      M alaysia   Thailand
                                                                           Countries** Americ a***
                        *GCC: Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates
                        **New EU Countries: Bulgaria, Estonia, Latvia, Lithuania, Poland, Slovakia, Slovenia, Czech Republic, Hungary
                        ***Latin America: Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Puerto Rico, Uruguay, Venezuela
BMW Group
Investor Presentation
November 2008
                        BMW Group Automobiles.
Page 37
                        Premium Segment Share of Total Market.


                          35%


                          30%


                          25%


                          20%
                                Germany


                                          United Kingdom



                          15%




                                                                                     Asia, Pacific & Africa
                          10%                                                                                          World Average: 9.3%
                                                           Italy


                                                                   USA


                                                                            France
                          5%




                                                                                                              Russia




                                                                                                                                    Japan
                                                                                                                            China
                          0%
                                            Pre m ium S e gm e nt S ha re of Tota l Ma rke t
                                                                         2007
BMW Group
Investor Presentation
November 2008           BMW Group Motorcycles.
                        Product Overview.
Page 38




                                   ENDURO                           TOUR                           URBAN                        SPORT
               Price (€)
                20,000


                                                                K 1200 LT                                                            HP2 Sport

                                                                                 K 1200 GT
                                     HP2 Enduro                                                     HP2 Megamoto

                                                                R 1200 RT
                                                                                                                                           K 1200 S
                                                                                                                                          K 1200 S
                              R 1200 GS
                              Adventure                                                                                   K 1200 R
                                                                                                                          Sport
                                                                                                               K 1200 R
                   R 1200 GS

                                                                                                                                        R 1200 S
                                              F 800 GS
                 10,000                       2 Zyl.                                                R 1200 R



                                                                      F 800 ST
                                                                                     G 650 X
                                                                                      Moto                                           F 800 S
                                                     G 650 X
                        G 450 X
                                  F 650 GS 2 Zyl.   Challenge
                                                                                               G 650 X Country
BMW Group
Investor Presentation
November 2008
                        BMW Group Motorcycles.
Page 39
                        Retail Unit Sales 1990– 2012.


                        160,000
                                  units


                        140,000


                        120,000


                        100,000


                         80,000


                         60,000


                         40,000


                         20,000


                              0
                                  1990    1995   2000 2001 2002 2003 2004 2005 2006 2007   2012
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 40
                        Global presence in 52 countries with 3,300
                        employees.




                        BMW Financial Services



                        MINI Financial Services
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 41
                        Product / service portfolio.

                                Dealer                 Private & Commercial Customers                   Fleet

                           Wholesale Finance
                                                          Credit Cards         Retail Finance        Fleet Finance
                             New & Used
                            Working Capital                Fixed-Term
                                                                              Balloon Finance      Fleet Management
                                Loans                       Deposits
                           Real Estate Loans            Overnight Money      Operational Lease      Fleet Consulting
                            Current Account                                    Finance Lease
                                                          Savings Plan
                                (online)                                      Insurance Lease
                               Insurances              Brokerage               Service Lease
                              (commercial)
                                                       - Real Estate Loans
                                                                               Gap Insurance
                                                       - Investment Funds
                                                                                Automotive
                                                                                 Insurance
                                                                                Credit Life
                                                                                 Insurance
                                                                             Extended & Used Car
                                                                                 Warranties


                        Vehicle related products
                        Non-vehicle related products
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 42
                        Leasing has multiple benefits for the BMW
                        Group.
                                                                                                                       Loyalty Rates (2)
                                                                                   61.6 months      (1)


                        Cash buyers                                                                                              62.7%


                                                                                     36.2 months (1)

                        Leasing                                                                                                  75.2%

                                                       Year 1                                                     Year 12
                        (1) average   ownership cycle in Germany;   (2)German   market, 2006 data

                        Average level of optional equipment in Germany (Example, in EUR):

                                                 0          2,000               4,000         6,000       8,000     10,000     12,000


                                  Leasing                                                                              9,838


                             Cash buyer                                                                   7,115
                                                                                                                             + 38 %
                        Basis: German market, 9.000 customers, all model lines, 2006 data
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 43
                        Profit before Tax (PbT) Financial Services.


                        800
                              in million Euro
                                                                                          743


                        700                                                        685


                                                                            605
                        600


                                                                     515
                        500
                                                              452
                                                       422

                        400                     387

                                 345


                        300




                        200
                                 2000           2001   2002   2003   2004   2005   2006   2007
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 44
                        Penetration Rate Retail Business.


                        50%
                                                                                                             48.0%
                                                                                                     44.6%
                        45%
                                                                   42.0%                     42.4%
                                                                                  41.1%
                        40%
                                                      38.3%
                                              36.1%
                              34.5%   35.0%
                        35%                                                                                   27.4%

                                                                    22.5%                            27.2%
                        30%                                                                  25.2%
                                                      19.1%                       24.0%
                                      17.2%   18.3%
                        25%
                              20.9%

                        20%


                        15%


                        10%                           19.2%         19.5%                                     20.6%
                                      17.8%   17.8%                               17.1%      17.2%   17.4%
                              13.6%
                        5%


                        0%
                              2000    2001    2002    2003           2004             2005   2006    2007    9M - 2008

                                                              Financ ing    Leasing
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 45
                        Credit Loss Ratio.


                        0.60%



                                0 .5 4 %                                                          0 .5 4 %
                        0.55%




                        0.50%

                                           0 .4 6 %                                    0 .4 6 %

                        0.45%

                                                      0 .4 1 %              0 .4 1 %

                        0.40%
                                                                 0 .3 7 %


                        0.35%




                        0.30%
                                 2002      2003        2004       2005       2006       2007      9M- 2008
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 46
                        Additional P&L effective Risk Provisions in
                        2008 YTD.

                        Q1/08: EUR 236mn     9M/08: EUR 1,037mn

                            79mn
                                157mn



                        Q2/08: EUR 459mn            477mn

                            166mn                                560mn
                                293mn



                        Q3/08: EUR 342mn

                                    110mn         Provisions accrued in the Automobiles
                                                  segment (residual value risk only)
                             232mn
                                                  Provisions accrued in Financial Services
                                                  (residual value risk and credit risk)
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 47
                        Resale value development in the USA.


                        58 %                                                    3 year old retention
                                                                                36 months residual value (ALG)
                        56 %
                                         55 %

                                 54 %            54 %
                        54 %
                                                                 53 %
                                                         52 %            52 %       52 %
                        52 %
                                                                                             51 %     51 %

                        50 %
                                 55 %    55 %    57 %    54 %    55 %    54 %       52 %

                                 98/01   99/02   00/03   01/04   02/05   03/06      04/07   05/08    06/09


                        BMW received The Automotive Leasing Guide (ALG) Residual Value Award in
                        2004, 2005 and 2006 for “the highest predicted resale value of any luxury brand”.
                        BMW was named “Best Brand” in Kelley Blue Book‟s 2005 and 2006
                        “Best Resale Value Awards”.
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 48
                        Residual Value Development in the USA.

                        BMW brand vs. all luxury brands
                        120



                        115



                        110



                        105



                        100



                          95



                          90



                          85
                           Jan 01   Jul 01   Jan 02   Jul 02   Jan 03   Jul 03   Jan 04   Jul 04   Jan 05   Jul 05   Jan 06   Jul 06   Jan 07   Jul 07   Jan 08   Jul 08

                               BMW brand
                               All luxury brands
                        Source: Manheim Used Vehicle Value Index, mix and mileage adjusted
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Services.
Page 49
                        Certified Pre-Owned sales development in the
                        USA.

                         100
                               „000 units

                                                                                                                      89.8
                          90
                                                                                                               80.4
                          80
                                                                                                71.1
                                                                                                           73.2
                          70
                                                                                  65.7
                                                                        60.6
                          60


                          50
                                                               44.7

                          40
                                                                        39.9

                          30
                                                      28.3

                          20
                                            16.8

                          10
                                6.1
                           0
                           1997        1998        1999      2000     2001     2002      2003    2004   2005      2006       2007   20
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 50
                        Core Elements of Corporate Strategy.




                                     Strategic Realignment

                           Premium Brand Strategy:    Process management:

                             Focus on premium         Flexibility in production
                              segments in the
                              automobile and           Component exchange
                             motorcycle market
                                                            Networking


                                   Sustainability & EfficientDynamics

                                           Financial Strategy
BMW Group
Investor Presentation
November 2008
                        BMW Group Global Production Network.
Page 51
                        Continuous Growth.

                                                                                         Network/Capacity
                           Vehicle production (units)                                        expansion
                                                                                    (Plants Leipzig, China, USA)

                                                                                                                   1 ,8 0 0 ,0 0 0



                                                                                                             2007
                                                                                                          1,541,503




                                                                        Network
                                                                       expansion
                                                                      (Plant USA)

                                                                                           8 2 3 ,0 0 0
                                                      Capacity
                                                     expansion
                                                   (German plants)
                                  Network
                                 expansion                           4 9 5 ,0 0 0
                            (Plant South Africa)

                                                   3 2 7 ,0 0 0

                              1 6 1 ,0 0 0


                                 1970                 1980             1990                   2000                     2012
BMW Group
Investor Presentation
November 2008
                        BMW Group Global Production Network.
Page 52
                        Automobile production by plant in 2007.


                                                           in 1000 units
                        Dingolfing, Germany
                        Production of BMW 5, 6, 7 Series
                        Regensburg, Germany
                        Production of BMW 1, 3 Series
                        Munich, Germany
                        Production of BMW 3 Series
                        Oxford, UK
                        Production of MINI
                        Leipzig, Germany
                        Production of BMW 1, 3 Series
                        Spartanburg, USA
                        Production of BMW Z4, X5
                        Rosslyn, South Africa
                        Production of BMW 3 Series
                        Goodwood, UK
                        Production of Rolls-Royce
                        Shenyang, China (Joint Venture)
                        Production of BMW 3, 5 Series
                        Magna Steyr, Austria
                        Contract Production of BMW X3
BMW Group
Investor Presentation
November 2008
                        BMW Group Global Production Network.
Page 53
                        Continuous Growth.

                        -   Product Design suitable                             -    Consequent economical
                            for production processes                                 Steering of product and
                                                                                     production projects
                        -   Specific investments only
                            for sustainable capacity                            -    Permanent benchmarking
                            increases (e.g. Oxford plant)                            process with competitors
                                                      Development of cost productivity


                                200
                                      Old target until 2006: Improvement of 5% p.a.
                                180
                                      New target: Improvement of 7-8% p.a.
                                160

                                140

                                120

                                100

                                 80

                                 60

                                 40

                                 20

                                  0
                                       1999    2000     2001    2002     2003     2004     2005       2006     2007
                                                               Change in performance
                                       Cost productivity =                                            (in %)
                                                               Change in costs (incl. depreciation)
BMW Group
Investor Presentation
November 2008
                        BMW Group Global Production Network.
Page 54
                        Structural Flexibility (Leipzig Plant).
BMW Group
Investor Presentation
November 2008
                        BMW Group Network & Cooperation Strategy.
Page 55
                        Scale Effects and Management of Resources.


                        – Global Alliance for Hybrid Drive Development: Cooperation
                          with Daimler AG and General Motors.

                        – 2nd Hybrid cooperation with Daimler AG.

                        – New Generation of Petrol and Diesel Engines for MINI in
                          cooperation with PSA PeugeotCitroen.

                        – Series development and production of the BMW X3 by Magna
                          Steyr.

                        – Electronic platform development / infrastructure
BMW Group
Investor Presentation
November 2008
                        BMW Group Network & Cooperation Strategy.
Page 56
                        Motivation for the Hybrid Cooperation.




                                                       Motivation
                                           (following comprehensive Strategic Studies)


                         Technological Opportunities:             Business Opportunities:

                         - High Level Functionality               - Split of Development Efforts
                         - High Level Risk Management             - Reduced Financial Investments
                         - Short Time to Market                   - Economies of Scale

                                         General Enabling to realize Hybrids:
                                          Technologies, Processes, Service etc.
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 57
                        Core Elements of Corporate Strategy.




                                     Strategic Realignment

                           Premium Brand Strategy:    Process management:

                             Focus on premium         Flexibility in production
                              segments in the
                              automobile and           Component exchange
                             motorcycle market
                                                            Networking


                                   Sustainability & EfficientDynamics

                                           Financial Strategy
BMW Group
Investor Presentation
November 2008
                        BMW Group Corporate Sustainability.
Page 58
                        Starting Point and Goal.




                                                   Resource management
                                                   production, products,
                                                   human capital, finance

                                                   Reputation management
                                                   customers, shareholders,
                                                   politicians, associates,
                                                   NGOs

                                                   Risk management
                                                   customers, shareholders,
                                                   politicians, associates,
                                                   NGOs
BMW Group
Investor Presentation
November 2008
                        BMW Group Corporate Sustainability.
Page 59
                        BMW Group is member of the most important
                        indices.
                        Raising relevance of financial indicators/ratings, are based on
                        criteria of sustainability. The BMW Group is one of the leaders:
                        • Dow Jones sustainability Indexes/Dow Jones STOXX Sustainability
                          Indexes: branch guide in 2005, 2006, 2007 and 2008.
                        • Carbon Disclosure Project: „Best in Class“ in 2005 and 2006.
                        • FTSE4Good: member of FTSE4Good / FTSE4Good Environmental
                          Leaders Europe 40.
                        • Ranked 3rd in Scoris‟ DAX30 sustainability rankings.
                        • Oekom: Corporate Responsibility Rating Oekom 2006 Status Prime.
BMW Group
Investor Presentation
November 2008
                        BMW Group Corporate Sustainability.
Page 60
                        Commitment of the Company.




                            „Sustainability is evolving to become a primary approach to
                         economical and social prosperity. It also facilitates the interaction
                                      between the market and democracy.
                        The BMW Group will continue to pursue sustainable development as
                                          principle of corporate strategy.―
                                    BMW Group Executive Board resolution, February 21, 2000
BMW Group
Investor Presentation
November 2008
                        BMW Group Corporate Sustainability.
Page 61
                        Commitments, Codes of conduct, Guidelines.


                        The BMW Group is committed to:
                          - 10 Principles of the Global Compact
                          - Cleaner Production Declaration of the UNEP

                        The BMW Group follows the principles of:
                          - Guidelines for Multinational Companies from the Organization
                            for Economic Co-operation and Development (OECD)
                          - Charter for Sustainable Development from the International
                            Chamber of Commerce (ICC)

                        BMW Group‟s internal guidelines for putting sustainability into
                        practice:
                          - Environmental Guidelines
                          - Guidelines of HR Policy
                          - Joint declaration on human rights and working conditions
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 62
                        The Vision of the BMW Group.


                                                                                           hydrogen
  future


  tomorrow                                                              – ICE improvements
                                                                        – Hybrid
                                                                        – Clean Diesel


  today
                                          ICE improvements:
                                          –   High Precision Injection in lean-burn conditions
                                          –   VALVETRONIC
                                          –   Variable Twin Turbo Technology
                                          –   Brake Energy Regeneration


                           2006                                               > 2020
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 63
                        Performance – Weight – Consumption.


                                                 Performance
                                           - High Precision Injection
                                           - Variable Twin Turbo Technology




                                    BMW EfficientDynamics

                              Weight                                       Consumption
                        - Magnesium-aluminium                 - High Precision Injection
                          compound crankcase                    in lean-burn conditions
                        - All-aluminium crankcase             - VALVETRONIC
                        - Weight reduced                      - Variable Twin Turbo Technology
                          aluminium front end                 - Brake Energy Regeneration
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 64
                        The product portfolio.
                        Customer-oriented, sustainable strategy.

BMW EfficientDynamics
measures applied:
Some restrictions may apply,
depending on individual car
configuration                     1 Series 3 Series 5 Series 6 Series 7 Series                     X3        X5         X6        MINI
High Precision Injection
in lean-burn mode
High Precision Injection                                                                                                              1
with Twin Turbo Technology
VALVETRONIC Technology                                                                                                                2

Variable Twin Turbo
Diesel Technology
3rd Generation Piezo
Common Rail Diesel
Technology
Brake Energy Regeneration
Auto Start-Stop Function
Active Aerodynamics
Tires with low Rolling Friction
Electric Waterpump
Electric Steering
Shifting point indicator
                                                      1) Direct injection with Twin Scroll Turbo    2) System comparable to VALVETRONIC
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 65
                        BMW 1series: Optimum acceleration and fuel
                        consumption.
 Fuel consumption [ltr/ 100 km]    6.0    6.5             7.0            7.5                8.0


                                           6.4 ltr (-15%)
 BMW 120i                                               7.7 sec
                                                                                  152g CO2/km


                                                                                              8.0 ltr
                                                                         8.8 sec

                                                                         7.4 ltr
                                                                          8.9 sec

                                                           6.9 ltr
 Competitors
                                                                                  9.3 sec

                                                                     7.3 ltr
                                                                                   9.4 sec

                                                                        7.4 ltr
                                                                                             9.8 sec


 Acceleration [sec] 0-100 km/h     6.0    7.0             8.0            9.0                10.0
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 66
                        BMW 1series: Optimum acceleration and fuel
                        consumption.
 Fuel consumption [ltr/ 100 km]    4.0         4.5   5.0               5.5               6.0


                                                     4.9 ltr (-14%)
 BMW 120d                                                                       128g CO2/km
                                     7.5 sec


                                                                                         5.9 ltr
                                                                      8.8 sec

                                                                                    5.7 ltr
                                                                                     9.3 sec

                                                                                    5.7 ltr
 Competitors
                                                                                         9.4 sec

                                                                          5.5 ltr
                                                                                              9.5 sec

                                                                                    5.7 ltr
                                                                                              9.5 sec


 Acceleration [sec] 0-100 km/h     7.5         8.0   8.5               9.0                9.5
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 67
                        Improved Fuel Economy AND
                        Better Performance.




                          BMW 323i sedan model year 1983          BMW 325i sedan model year 2008


                          Power               102 kW           +57%        160 kW
                          Torque              205 Nm           +32%        270 Nm
                          Accelaration1       9.2 s            -27%        6.7 s
                          Fuel consumption2   10.3 l/100km     -31%        7.1 l/100km
                          Emissions           ECE R15-04       -95%        EU 4
                          Weight              1,080 kg         +39%        1,505 kg
                          Aerodynamics        0.40 x 1.85 m²   -23%        0.27 x 2.11 m²
                                                                                            1    0 - 100 km/h
                                                                                                (0 - 62 mph)
                                                                                            2   EU MVEG
BMW Group
Investor Presentation
November 2008
                                                BMW EfficientDynamics.
Page 68
                                                Leading combination of fuel economy
                                                and performance...
                                               11.5


                                               10.5
              Fuel consumption EU [l/100 km]




                                                9.5


                                                8.5         BMW 335i



                                                7.5
                                                            BMW 330i
                                                                             BMW 325i
                                                6.5
                                                                                  BMW 320i
                                                                                                             BMW 318i
                                                5.5
                                                      5.0              6.0   7.0          8.0          9.0          10.0        11.0
                                                                              Acceleration 0-100 km/h [s]


                                                      BMW 3 Series MY 2008           BMW 3 Series MY 2007               Competitors
BMW Group
Investor Presentation
November 2008
                                            BMW EfficientDynamics.
Page 69
                                            Exceeding even today‘s Hybrid concepts...

                                       14

                                       13                               Hybrid #2                                      BMW    Hybrid
                                                                                                    EU test cycle
                                       12
       Fuel consumption [ltr/100 km]




                                                       BMW X3                                       Customer
                                       11               3.0 sd                                      driving profile*

                                       10

                                       9

                                       8

                                       7                         BMW X3 3.0 d


                                       6
                                                                                    BMW 120d                                  Hybrid #1
                                                                                               BMW 118d
                                       5                                                                      MINI Cooper D

                                       4
                                            5.5        6.5              7.5             8.5         9.5             10.5             11.5
                                                                           Acceleration 0-100 km/h [s]

                                             * = measured by at least one German motoring magazine
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 70
                        BMW 123d Coupe and BMW 135i Coupe.




    2.0-litre four-cylinder diesel engine              3.0-litre straight-six gasoline
    with Variable Twin Turbo                           Power unit featuring Twin Turbo
    Output                 150 kW/204 hp at 4400 rpm   Output           225 kW/306 hp at 5800 rpm
    Torque                 400 Nm at 2000-2250 rpm     Torque           400 Nm at 1300-5000 rpm
    Acceleration           7.0 sec                     Acceleration     5.3 sec
    [0-100 km/h]                                       [0-100 km/h]
    Top speed              238 km/h                    Top speed        250 km/h
    Consumption* 5.2 litres/100 km                     Consumption* 9.2 litres/100 km
    *EU-test cycle                                     *EU-test cycle
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 71
                        Shifting point indicator: Efficient fuel utilisation.




                        The new shifting point indicator informs the driver of the ideal time
                        to change into a more economic gear. An arrow symbol that lights
                        up simultaneously with the gear indicator serves as a discreet
                        indication of when to change gear.
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 72
                        Auto Start Stop Function:
                        Zero fuel consumption when at a standstill.
                           Engage neutral   Clutch          Engine stops        Display on
                            1                2                3                  4




                           Clutch           Engine starts   Display off         Engage gear
                            1                2                3                  4




                The Auto Start Stop Function, available for the BMW 1 Series
                with manual gearbox, also contributes to better fuel economy.
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 73
                        Intelligent conversion of energy:
                        Brake Energy Regeneration.


                Braking                         Brake Energy
                Impulse                         Regeneration
                Rolling                                20 %




                Accelerating                           Engine
                Maintaining speed                       80 %



                        On the new BMW 1 Series, the battery is charged as soon
                        as the driver decelerates or brakes.
                        The kinetic energy released is then converted into storable
                        electric energy.
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 74
                        Efficiency increases powertrain.

                           4 valve,        BMW           BMW High           Energy Mgmnt.        BMW
                         BMW Bi-Vanos   VALVETRONIC   Precision Injection   Hybrid Vehicles   CleanEnergy




                                                                            Intelligent
                                                                            management
                                                                            of energy flows


                                          - 12 %


                                                           - 20 %


                                                                                  -3
                                                                                   to
                                                                                - 15 %
                                                                                                100 %
                                                                                                CO2 free
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 75
                        MY 2009: The BMW Group 140 g Fleet…

                        For the 2009 model year 28 BMW Group models have a
                                     maximum of 140 g CO2/km.
 BMW 320d                 BMW 318d         BMW 320d      BMW 320d      BMW 520d         BMW 520d         BMW
 Convertible              Touring:         Touring:      Coupé:        Touring:         Saloon:          Hydrogen7
 140 g                    125 g            131 g         128 g         140 g            136 g            5g




BMW 318d                 BMW 320d         BMW 116i       BMW 118i     BMW 118d       BMW 120d      BMW 123d BMW 118d
Saloon:                  Saloon:          5-door:        5-door:      5-door:        5-door:       5-door:  Convertible
123 g                    128 g            139 g          140 g        119 g          128 g         138 g    129 g




 BMW 120d               BMW 123d     BMW 116i     BMW 118i        BMW 118d      BMW 120d     BMW 123d      BMW 120d
 3-door:                3-door:      3-door:      3-door:         3-door:       Coupé:       Coupé:        Convertible
 128 g                  138 g        139 g        140 g           119 g         128 g        138 g         135 g




            MINI One:              MINI Cooper:      MINI Cooper D:          MINI Cooper:       MINI Cooper:
            128 g                  129 g             104 g                   Clubman D          Clubman
                                                                             109 g              132 g
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 76
                        Development of the BMW Group European
                        Fleet Average between 1995 and 2008.

                        240                                                              -15,5 %
                              CO2-Emissions in g/km

                                                                                       Q1/07 Q1/08
                               210
                        220                                                             187 158


                        200


                        180                                -24,8 %


                        160
                                                                                                   158

                        140


                        120


                        100
                              1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 77
                        A competitive advantage not
                        only at the fuel pump…

                        14 of the 27 EU member
                        countries already have a
                        CO2-based registration or
                        annual tax in place.




                           EU-Countries with a CO2 based
                           registration or annual tax
BMW Group
Investor Presentation   BMW EfficientDynamics.
November 2008
Page 78                 Sales development in countries with CO2-based
                        registration taxes - 2008 Oct YTD.



                        in percent (change vs. 2007 Jan – October)

                        France                                                               10.6
                                                                             4.1
                                               -9.0


                        Netherlands                                        2.9
                                                                           2.7                          BMW Brand
                                         -10.3
                                                                                                        Comp 1
                                                                                                        Comp 2
                        Belgium/Lux                                                   6.8
                                                                                   5.6
                                                                     0.2


                        Portugal                                                            10.1
                                                                                      7.2
                                       -11.3


                        Denmark                                                                       14.7
                                                                                               11.4
                                                       -4.8
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 79
                        The Hybrid Development Center.

                         Hybrid Development Center
                         - Troy, Michigan
                         - Operational since 2005
                         - Up to 500 engineers on site




                                                         BMW Hybrid Technology Corp.
                                                         - BMW Troy, Michigan
                                                         - Operational since April 2006
                                                         - Up to 100 engineers on site
                        BMW EfficientDynamics.
BMW Group
Investor Presentation
November 2008
Page 80
                        BMW Hydrogen 7.




                                                 5 g C02 /km
BMW Group
Investor Presentation
November 2008
                        BMW EfficientDynamics.
Page 81
                        BMW Group prepares for technical field trials
                        with electric vehicles .




                        Number of units: In total 500 units will be offered in LA and the greater NYC region
                        Power:            150kw
                        Range:            up to 240km or 150 miles
                        Basis:            MINI hatch
                        Start:            December 2008
                        Lease terms:      850 USD per month, contract ends after 12 month
                        Target:           to gain detailed knowledge of how mobility can be achieved
                                          efficiently using pure electrically powered vehicles
BMW Group
Investor Presentation
November 2008
                        BMW Group Strategy.
Page 82
                        Core Elements of Corporate Strategy.




                                     Strategic Realignment

                           Premium Brand Strategy:    Process management:

                             Focus on premium         Flexibility in production
                              segments in the
                              automobile and           Component exchange
                             motorcycle market
                                                            Networking


                                   Sustainability & EfficientDynamics

                                           Financial Strategy
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
                        Value Orientation.
Page 83




                         Automobiles:         Motorcycles:         Financial Services:
                         Return on Capital    Return on Capital    Return on Equity
                         Employed             Employed

                         Vehicle projects:    Vehicle projects:    Finance & lease
                         Model return based   Model return based   portfolio:
                         on DCF               on DCF               Cash flows
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 84
                        Automobiles Segment—Return on Capital
                        Employed 2007.
                                                3,450

                                                EBIT
                                   6.4%
                                   EBIT
                                   margin                  :
                                            x
                        22.8%                   53,818

                        RoCE                    Revenues



                                                           :
                                   3.6                         28,515
                                   Capital                     Employed
                                   turnover                    assets
                                                15,108
                                                Capital
                                                employed
                                                               13,407
                                                                         -
                                                               Non-interest
                                                               bearing
                                                               liabilities
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
                        Return on Capital Employed (RoCE),
Page 85



                        Automobiles Segment.

                        40%



                        35%
                              32.7%
                                      30.1%
                        30%

                                                      25.4%                            > 26%
                        25%                   23.8%           23.2%           22.8 %
                                                                      21.7%

                        20%



                        15%



                        10%



                        5%



                        0%
                               2001    2002    2003   2004     2005    2006    2007    2012
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
                        Return on Assets (RoA) Financial Services.
Page 86




                        2.0%




                        1.5%   1.4%    1.4%             1.4%
                                               1.3%              1.3%




                        1.0%




                        0.5%




                        0.0%
                               2003    2004    2005     2006     2007
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
                        Return on Assets (RoA) BMW Group.
Page 87




                        8%


                        7%   6.6%    6.5%
                                                     6.3%

                        6%                   5.6%
                                                            5.3%

                        5%


                        4%


                        3%


                        2%


                        1%


                        0%
                             2003    2004    2005    2006   2007
BMW Group
Investor Presentation
November 2008
                        BMW Group.
Page 88
                        Effects on Automobile Profit.


                                                                            Efficiency
                                                                              gains      Others
                                     FX                                                  – 167
                        € million
                                                                                                  3,450
                         3,055                                     Volume/
                                                                  mix/market + 351



                                             Raw
                                    – 517   materials

                                             – 288      Depre-
                                                        ciation




                                                        – 403     + 1,419


                          2006              Profit before financial result (EBIT)                 2007

                          6.4%                           EBIT margin                              6.4%
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 89
                        Cash Flow Industrial Operations.


                        7,000
                                in million Euro
                                                                                                                      6,340
                                                        6,157                 6,184
                        6,000
                                                                                                     5,373
                                   4,970
                        5,000


                                                                                       3,717
                        4,000



                        3,000
                                                                                                                              2,291
                                                                2,042
                        2,000


                                                                                                               956
                        1,000

                                                  124
                           0
                                          2003             2004                    2005                   2006           2007

                                                          Cash inflow from operat ing act ivit ies   Free cash flow
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 90
                        Capital Expenditure.


                        6,000                                                                                                      12.0%
                                in million Euro


                                         10.2%
                                                          9.8%                                      4,313
                        5,000                                                                                                      10.0%
                                                                              3,993                                        4,267
                                                                                                     8.8%
                                         4,245           4,347                 8.6%
                                                                                                                            7.6%
                                                         1,121                                       1,536                 1,333
                        4,000              996                                                                                     8.0%
                                                                               1,396



                        3,000             3,249          3,226                                                                     6.0%
                                                                                                                           2,934
                                                                                                     2,777
                                                                               2,597

                        2,000                                                                                                      4.0%




                        1,000                                                                                                      2.0%




                           0                                                                                                       0.0%
                                          2003            2004                 2005                  2006                  2007

                                                  Capitalized development costs
                                                  Capital expenditure in property, plant equipment and intangible assets
                                                  Capital expenditure ratio
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 91
                        Research & Development Costs.


                        8%                                                                                      47.9%                                       50%
                                                                                         44.8%
                                                                                                                                          42.4%             45%
                        7%                                         39.8%                        6.7%
                                          38.9%                                                                       6.5%
                                                                       6.4%                                                                                 40%
                                              6.2%
                        6%                                                                                                                                  35%
                                                                                                                                               5.6%
                                  5.2%                        5.3%                    5.3%                  5.2%                     5.2%
                                                                                                                                                            30%
                        5%

                                                                                                                                                            25%
                        4%
                                                                                                                                                            20%


                        3%                                                                                                                                  15%

                                                                                                                                                            10%
                        2%
                                                                                                                                                            5%

                        1%                                                                                                                                  0%
                                          2003                       2004                    2005                  2006                     2007

                                                  R&D Costs (IFRS) / Revenues in %     R&D Costs (HGB )/ Revenues in %       Capitalisation Ratio


                        in million Euro                                       2003             2004           2005              2006                2007
                        Research & Development Costs (IFRS)                   2,146            2,334         2,464              2,544               2,920
                        Research & Development Costs (HGB)                    2,559            2,818         3,115              3,208               3,144
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 92
                        Spot & Equilibrium Rate Euro / US Dollar.


                        1.60



                        1.50



                        1.40



                        1.30



                        1.20



                        1.10



                        1.00



                        0.90



                        0.80
                               Jan   Jul   Jan   Jul   Jan   Jul   Jan   Jul   Jan   Jul    Jan    Jul    Jan   Jul   Jan   Jul   Jan   Jul
                               00    00    01    01    02    02    03    03    04    04     05     05     06    06    07    07    08    08

                                                                         Spot Rate     Equilibrium Rate
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 93
                        Spot & Equilibrium Rate Euro / GB Pound.


                        0.85




                        0.80




                        0.75




                        0.70




                        0.65




                        0.60




                        0.55
                               Jan   Jul   Jan   Jul   Jan   Jul   Jan   Jul   Jan   Jul   Jan     Jul    Jan   Jul   Jan   Jul   Jan   Jul
                               00    00    01    01    02    02    03    03    04    04    05      05     06    06    07    07    08    08

                                                                         Spot Rate     Equilibrium Rate
BMW Group
Investor Presentation
November 2008
                        BMW Group Financial Strategy.
Page 94
                        Spot & Equilibrium Rate Euro / JP Yen.


                        170



                        160



                        150



                        140



                        130



                        120



                        110



                        100



                         90
                              Jan   Jul   Jan   Jul   Jan   Jul   Jan   Jul   Jan   Jul   Jan     Jul    Jan   Jul   Jan   Jul   Jan   Jul
                              00    00    01    01    02    02    03    03    04    04    05      05     06    06    07    07    08    08

                                                                        Spot Rate     Equilibrium Rate
BMW Group
Investor Presentation
November 2008
                        BMW Group Investor Relations.
Page 95
                        Global Funding Objectives.



                        Financial           Ensure sustainable access to international financial markets.
                                            Explore and maintain presence and competence in all strategic
                        Flexibility         important capital markets worldwide.




                        Financial           Ensure independence from individual lenders, banks and financial
                                            Instruments.
                        Independence        Diversification of funding sources, investors and products.




                        Value               Create value by optimizing financing costs on overall Group basis.
                                            Credit spread management for each financial instrument.
                        Orientation         Ensure long-term, strategic perspective (instrument mix).




                               The different objectives are interdependent and of equal importance.
BMW Group
Investor Presentation
November 2008
                        BMW Group Investor Relations.
Page 96
                        Corporate Finance Capabilities.

                        Categories of available instruments over the spectrum of maturities:

                             <1yr             1yr          2yrs         3yrs             4yrs          5yrs          7yrs          10yrs+

                        CP                (EMTN) PPs                            Bonds

                        ABCP              ABS - Term                            Retail                    Institutional

                        Customer Deposits / Brokered CDs

                        Bank Loans
                        CP                 (EMTN) Private Placements              Retail                        Institutional
                        Attractive and     Attractive funding source.             Diversification of investor   Highest liquidity and depth of the
                        flexible short-                                           base.                         market, i.e. highest funding
                                           Effective management of spreads
                        term funding.                                                                           potential.
                                           provides support for the short end     Limited potential of
                        Deposits:          of the BMW Credit Curve.               opportunistic access.         Typical for Benchmark bonds.
                        Diversification    ABS                                                                  Creation of a BMW Credit Spread
                        of funding                                                                              Curve.
                                           ABS supports investor
                        instruments
                                           diversification.
                        and investors
                                           Bank Loans
                                           Local source of funding, mainly
                                           where access to capital markets is
                                           limited.
BMW Group
Investor Presentation
November 2008
                        BMW Group Investor Relations.
Page 97
                        Issuing Programs.



                                                   EUR 30bn EMTN-Program

                        BMW AG                                      BMW US Capital, LLC
                        BMW Finance N.V.                            BMW Australia Finance Limited
                        BMW Coordination Center V.O.F.              BMW Japan Finance Corp.
                        BMW (UK) Capital plc




                             EUR 5bn ECP-Program                            EUR 2bn FCP-Program

                        BMW AG                                         BMW Finance N.V.
                        BMW Finance N.V.
                        BMW Coordination Center V.O.F.
                        BMW (UK) Capital plc                               USD 7bn USCP-Program
                        BMW Malta Finance Ltd
                                                                       BMW US Capital, LLC


                         EMTN Program as main mid- to long-term refinancing program. Three Commercial
                                     Paper Programs to cover short-term liquidity needs.
BMW Group
Investor Presentation
November 2008
                        BMW Group Investor Relations.
Page 98
                        Broad Investor Base.


                         Offshore US
                         USD (EMTN) PPs                                Euro Capital Markets
                                                                       EUR Commercial Paper
                         USA                                           French Commercial Paper
                                                Great Britain
                         USD Extendible Notes                          EUR (EMTN) PPs
                         USD Commercial Paper   GBP Commercial Paper   EUR Benchmark Bonds
                         USD US PP              GBP (EMTN) PPs         EUR Retail Bonds
                         USD ABS                GBP Bonds              USD Eurodollar
                                                GBP ABS                AUD Euroaussie
                         Canada                                        JPY Euroyen
                         CAD ABS                                       EUR ABS
                                                                                                     Japan
                         CAD (EMTN) PPs
                                                                                                     JPY (EMTN) PPs
                         Mexico                                                                      JPY Insurance PPs
                                                   Switzerland
                         MXN (EMTN) PP
                                                   CHF (EMTN) PPs                        Singapore
                                                   CHF Bonds
                                                                                         SGD (EMTN) PP


                                                                                                 Australia
                                                South Africa                                     AUD (EMTM) PP
                                                ZAR ABS                                          AUD ABS




                                   Funding is done worldwide to optimize refinancing and to establish a
                                                         broad investor base.
BMW Group
Investor Presentation
November 2008
                        BMW Group Funding.
Page 99
                        Financial Debt as of September 30, 2008.

     EUR 51.8 bn*
                                         Others
                                          2%
                                                                                         – BMW Group demonstrated its funding
                                                              Bank Loans
                                                                                                                       ,
                                                                                           flexibility by increasing CP ABS and
                                                                                           bank loans in Q3 as credit market
                                                     14.5%                                 conditions became less favorable.
                                                                          Customer
                                                                          Deposits       – Maturity profile lengthened once again
                                                                   8.5%
                                                                                           with long-term debt maturities
     Bonds /
                                   48%                                                     comprising 54% (end of Q2/08: 53%) of
      PP /                                                        10.5%                    total debt.
  BrokeredCDs
                                                                             Commercial
                                                                               Paper    – Approximately 46% of outstanding debt
                                                           16.5%
                                                                                          to mature within one year.

                                                                       ABS


                        (XX%) Based on BMW Group Report as of September 2008, adjusted

                        *Excluding currency and interest derivatives




                                                        Overall debt maturity as of September 30: 1.8 yrs
BMW Group
Investor Presentation
November 2008
                        BMW Group Investor Relations.
Page 100
                        Funding activity 2008 YTD.

                                             Lease Conduit Deal, USD 1.1bn, settlement 31 March 2008
                                             Lease Conduit Deal, USD 1.0bn, settlement 12 June 2008
                        ABS                  Public Lease Deal, ZAR 1.2bn, settlement 14 April 2008
                                             Lease Conduit Deal, EUR 2.5bn, settlement 22 Sept 2008
                                           CHF Bond CHF 700mn, maturity 3 and 7 years,
                                            settlement 4 March 2008
                                           EUR Benchmark Bond EUR 1.75bn, maturity 7 years,
                                            settlement 28 Mai 2008
                                           EURO-YEN Bond JPY 42,9bn, maturity 5 years,
                                            settlement 25 June 2008
                        Bonds              USD 200mn Bond (FRN), maturity 2 years,
                                            settlement June 2008
                                           EURO-USD Bond USD 300mn, maturity 3 years,
                                            settlement 07 July 2008
                                           EUR Benchmark Bond EUR 750mn, maturity 5 years,
                                            settlement 19 November 2008

                        Private            More than EUR 4.6bn in different currencies
                        Placements          (EUR, JPY, SEK, USD) and maturities, continuously
                        Certificate of
                                        EUR 1.35bn, maturity 5 years,
                        Indebtedness     settlement 18 April 2008
                        (Schuldschein)
                        Commercial         Up to EUR 5.5bn,
                        Paper               continuously

				
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