BMW GROUP IN CHINADR. CHRISTOPH STARKPRESIDENT & CEO, BMW GROUP REGION CHINA MAY 2011

BMW Group in China Page 2

INVESTOR PRESENTATION. AGENDA.

Looking back: Strong Economic Growth in China.

The BMW Group Model.

A Promising Future.

BMW Group in China Page 3

OVERVIEW CHINA MACRO ECONOMY. CHINA HAS BEEN ENJOYING STRONG GROWTH OVER THE PAST 20 YEARS.

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

5

10

15

20

25

30

35

40

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

GDP GDP Growth

(Ø ~20 years = 10.4%)

GDP: trillion RMB GDP growthChina GDP Growth (1992-2010)

BMW Group in China Page 4

OVERVIEW CHINA MACRO ECONOMY.CHINA RESPONDED TO THE CRISIS WITH BIG STIMULUS PACKAGES FINANCED BY THE TRADE SURPLUS.

13.0%

10.6%10.1%

9.0%

6.8%6.1%

7.9%8.9%

10.7%

11.9%

10.3%9.6% 9.8%

-10%

-5%

0%

5%

10%

15%

2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

China Germany US Japan

China took measures

against the financial crisis

China took measures

against overheating

2008 2009 2010

Major economy GDP growth

BMW Group in China Page 5

AUTO MARKET DEVELOPMENT. TOTAL PV MARKET HAS BEEN DEVELOPING QUICKLY WITH AN EVEN FASTER PLUS SEGMENT GROWTH.

111

167

246

306

417

707

21%

50%47%

24%

36%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

100

200

300

400

500

600

700

800

2005 2006 2007 2008 2009 2010

Plus Segment (Incl. MINI) Growth rate

‘000 Units Plus segment growth 2005-2010

CAGR: +45%

Source: Sales data

BMW Group in China Page 6

BMW GROUP RETAIL DEVELOPMENT.SUCCESSFUL DEVELOPMENT FOR BMW & MINI. BOTH BRANDS GREW FASTER THAN THE PREMIUM MARKET.

15,78824,025

36,357

51,58865,822

90,536

168,998

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2004 2005 2006 2007 2008 2009 2010

BMW Group sales developmentUnits

Source: Sales data

BMW Group in China Page 7

BMW GROUP RETAIL DEVELOPMENT. CHINA HAS BECOME BMW GROUP’S THIRD-LARGEST MARKET AND THE LARGEST MARKET FOR KEY MODELS.

3

2008

5

2010 2004

…

11

1

?

MarketModel

7 Series

X6

5 Series sedan

5er GT

X5

X3

Largest

Largest

Largest

Largest

2nd-largest

2nd-largest

BMW Group in China Page 8

2011 YTD MARKET STATUS.BMW GROUP WAS OUT-GROWING A FAST GROWING PLUS SEGMENT IN THE BEGINNING OF 2011.

207,358

294,191

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 YTD Apr 2011 YTD Apr

46,619

79,306

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2010 YTD Apr 2011 YTD Apr

+70%

Segment share 22.5% 27.0%

+42%

Plus Segment Development BMW+MINI Development

Source: Sales data

BMW Group in China Page 9

INVESTOR PRESENTATION. AGENDA.

Looking back: Strong Economic Growth in China.

The BMW Group Model.

A Promising Future.

BMW Group in China Page 10

OUR SUCCESS FACTORS. HOW DID WE MAKE IT?

BRAND BUILDING

PARTNERS PEOPLE

PRODUCTS

CUSTOMER ORIENTATION& LOCALIZATION

BMW Group in China Page 11

OUR BRANDS: THE MOST CHERISHED TREASURE.WE MAKE EVERY EFFORT TO STRENGTHEN OUR POSITION AS THE MOST SUCCESSFUL PREMIUM BRAND.

BMW Group in China Page 12

OUR BRANDS: BMW.BMW IS THE LEADING BRAND IN THE AMS CHINA BEST CARS 2011 SURVEY (18,000 PARTICIPANTS).

13 Criteria1. Well Made

2. Very Reliable Car

3. High Safety Standards

4. Advanced Technology

5. Environmentally Friendly Cars

6. Good Customer Service

7. Good Value For Money

8. High Re-sale Value

9. Good Looks/styling

10. Makes Sporty Cars

11. Successful In Racing

12. Has Good Advertising

13. Overall, I Like This Brand

Rank of category 13: Overall, I like this brand

BMW is NO.1 in 4 main categories out of 13.

68.5

66.1

59.1

54.4

51.2

28.1

21.5

18.5

17.3

16.3

Source: AMS China

BMW Group in China Page 13

JOY IS BMW.THE JOY SPIRIT HAS BEEN SUCCESSFULLYTRANSLATED INTO CHINESE LANGUAGE AND CULTURE.

JOY

BMW Group in China Page 14

BRAND CAMPAIGN IN 2010.THE CHINESE MEDIA HIGHLY APPRECIATED THE JOY CAMPAIGN.

The introduction of this concept has gained BMW an upper

hand in branding over competitors.

The use of Chinese cultural elements and wisdom helped

portray an international face of a top brand.

The JOY campaign has elevated the substance of BMW

brand and also fulfilled in-depth communication with

Chinese customers with tribute to Chinese culture.

BMW Group in China Page 15

MULTI-TIER PRODUCT LINE.MOST BMW GROUP PRODUCTS ARE ALREADY OFFERED IN CHINA TO MEET THE HUGE LOCAL DEMAND.

Local

Production

BMW Group in China Page 16

MULTI-TIER PRODUCT LINE.LOCALIZED PRODUCTS GENERATE ADDITIONAL OPPORTUNITIES.

All new BMW 5 Series LWB (locally produced)

7 Series LWB China 60 Years Edition (imported)

BMW Group in China Page 17

MULTI-TIER PRODUCT LINE.ALSO WORLDWIDE SPECIAL EDITIONS ARE WELL PERCEIVED IN CHINA.

7 Series Steinway & Sons Limited Edition

M3 Tiger Edition: All cars sold out even before official launch!

BMW Group in China Page 18

COMMITTED PARTNERS.FAST DEVELOPMENT OF DEALER NETWORK NOT ONLY IN QUANTITY BUT ALSO IN TERMS OF QUALITY.

45

150

210

0

50

100

150

200

250

2005 2009 2010

BMW Dealer Network Development

562

763

1,057

0

400

800

1200

2005 2009 2010

Sales per dealership (units)8

8.4 8.4

8.3 8.3

8.7

7.6

7.8

8

8.2

8.4

8.6

8.8

2008 2009 2010

BMW customer satisfaction

Sales Aftersales

Source: BMW internal analysis

+40%

+39%

BMW Group in China Page 19

INVESTMENT IN PEOPLE. DEALER NETWORK TRAINING. INVEST IN OUR PEOPLE ALSO IN THE STAFF OF DEALER-SHIP TO ACHIEVE HIGHER CUSTOMER SATISFACTION.

>40,000

>90,000

~250,000

0

100,000

200,000

2009 2010 2015

BMW Shanghai Training Center

Dealer Training Man Days Development (unit: man days)

BMW Group in China Page 20

CUSTOMER ORIENTATION.BMW GROUP IS FULLY DEDICATED TO CUSTOMER SATISFACTION.

BMW Group in China Page 21

INVESTOR PRESENTATION. AGENDA.

Looking back: Strong Economic Growth in China.

The BMW Group Model.

A Promising Future.

BMW Group in China Page 22

CHINA’S ECONOMIC DEVELOPMENT. THE 12TH FIVE-YEAR PLAN (2011 – 2015) AIMS AT A MORE MODERATE GROWTH PATH.

1990 2000 20152010

(Ø GDP growth = 10.4%) (Ø GDP growth (Target) = 7%)

Economic growth

from export/

investment driven to

consumption driven

Income

redistribution and

improving people’s

living hood

Urbanization and

regional

development

Energy saving and

environment

protection

BMW Group in China Page 23

GDP DEVELOPMENT DRIVERS. URBANIZATION AND GROWING MIDDLE CLASS WILL GENERATE TREMENDOUS DEMAND FOR MOBILITY.

Urbanization ratio

Low class Middle class Upper class

Income distribution

Source: State Information Center, McKinsey research

18%26%

36%

47%

60%

-20%

0%

20%

40%

60%

1978 1990 2000 2009 2020 F

BMW Group in China Page 24

ENORMOUS AND EVER GROWING CUSTOMER BASE. TIER 3-5 CITIES PROVIDE HUGE POTENTIAL FOR PLUS SEGMENT.

Chi

na w

ill g

row

and

up

date

Different tier market status*

2010 PV sales per '000 people (unit)

Tier 1

Tier 2

Tier 3

Tier 4/5

Population (mio) GDP (trillion RMB)

42.5

143.9

149.4

972.4

5.6

8.4

6.7

19.2

4.6

13.3

18.5

40.0

* According to the macro-economic and auto industry developing status, all the cities are divided to 5 tiers; population and GDP data as 2009; auto industry data as 2010

BMW Group in China Page 25

GROWING PURCHASING POWER. DRIVEN BY THE OVERALL ECONOMIC DEVELOPMENT, THE NUMBER OF HIGH INCOME HOUSEHOLDS WILL CONTINUE TO GROW FAST.

37.67

11.89

2.011.310.88

CAGR: 34%

2020F2015F201020092008

Number of households with annual income

>250,000 RMB

(Units: million)

Source: State Information Center

BMW Group in China Page 26

BEIJING REGISTRATION LIMIT POLICY. THE POLICY IMPACTS THE TOTAL MARKET, BUT ALSO BRINGS OPPORTUNITIES TO BMW AND PLUS SEGMENT.

-63%

2011 YTD Mar

55,553

2010 YTD Mar

149,278• Beijing PC market decreased by 63% YTD

March. Pull forward effects to be considered.

• BMW has a strong track record in confined

market s, e.g. No.1 in Premium segment in

Hong Kong in 2010 (Share of 15.8% in total HK PV

market for BMW and MINI together, ranked 2nd).

• However, Plus segment’s penetration ratio in

Beijing doubled

• Moreover, BMW’s segment share in Beijing was

further improved

20.9%

2010 YTD Mar

10.4%

2011 YTD Mar

2010 YTD Mar

17.9%

2011 YTD Mar

24.4%

Penetration ratio

BMW’s segment share

2010

15.8%13.4%

2009

BMW+MINI share

in total HK PV market

2,770 units 2,831 units

BMW Group in China Page 27

CONTINUE WITH OUR SUCCESSFUL STRATEGY … … AND FINE-TUNE IT.

BRAND BUILDING

PARTNERS PEOPLE

PRODUCTS

CUSTOMER ORIENTATION& LOCALIZATION

BMW Group in China Page 28

SUSTAINABILITY THROUGH E-MOBILITY.BMW 5 SERIES LWB PHEV CONCEPT CAR WAS INTRODUCED IN SHANGHAI, “FROM CHINA, FOR CHINA”.

BMW Group in China Page 29

SUSTAINABILITY THROUGH QUALITY. AFTER SALES SERVICE CAMPAIGN.

The 1st service branding campaign in China.

BMW Group in China Page 30

SUSTAINABILITY THROUGH QUALITY. CUSTOMER EXPERIENCE AT THE DEALERSHIP.

Top standards for

retail facilities

Efficient

workshop

Customer-

orientated

facilities

BMW Group in China Page 31

SUSTAINABILITY THROUGH PARTNER INTEGRATION. THE 5S DEALERSHIP CONCEPT AIMS AT SUSTAINABILITY AT THE DEALERSHIP LEVEL.

1: Sales

2: Service

3: Spare parts

4: Survey

5: Sustainability

S2S3

S1

S4

S5

BMW Group in China Page 32

SUSTAINABILITY THROUGH LOCALIZATION. CHINESE PEOPLE ASSOCIATE BMW WITH THE OLYMPIC SPIRIT IN THEIR MINDS AND HEARTS.

Product special edition

Hospitality Plan

COD Group Endorsement

Young talent program

Olympic sports support

Customer experience

BMW Group In China Page 33

SUSTAINABILITY THROUGH LOCALIZATION. OFFICIAL PARTNERSHIP WITH EXPO CHINA PAVILION.

BMW Group In China Page 34

SUSTAINABILITY THROUGH LOCALIZATION. THE BMW BRILLIANCE PLANT PHASE II SHOWS OUR OVER- PROPORTIONAL PARTICIPATION IN THE MARKET.

BMW Group In China Page 34

Logistics

High Voltage

Switch Gear

Site Office

Energy CenterVisitor Center Main Office BuildingPaint Shop

Supplier Workshop

Press Shop Body Shop

Assembly

BMW Group in China Page 35

SUSTAINABILITY THROUGH CSR. BMW TAKES RESPONSIBILITY THROUGH THE BMW WARM HEARTS FUND.

Page 36

BOTTOM LINE.BMW GROUP IS LOOKING FORWARD TO A PROMISING FUTURE.