Statement by Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Interim Report to 30th Jun 2018

Good morning, Ladies and Gentlemen!


At a BMW Group, we have transparent targets – and we always broach on
a promises.


Our sights sojourn bound on a prolonged term. We are already anticipating
what mobility will demeanour like in 10, 15 years down a highway – and
holding a required decisions today. Our Strategy NUMBER ONE
NEXT gives us a transparent instruction and maps out a long-term goals.


Volatility and doubt have both been partial of a daily business
for a prolonged time now. However, a devise enables us to adjust to
short-term changes in a business environment. This flexible
horizon has been pivotal to a BMW Group’s success so far.


We respond to new final early and set a trends. Let me give we a
few examples:


1. The change towards tolerable mobility with Efficient Dynamics
given 2007.


2. Our pioneering purpose in e-mobility. In a initial half of 2018, the
i3 was once again a top-selling electric automobile in a premium
compress segment. We now offer business 10 electric or plug-in
hybrid models. Since a start of this year, we have delivered more
than 60,600 electrified vehicles to business – an boost of over 40
percent year-on-year. We are therefore on lane to accommodate a declared
idea of during slightest 140,000 vehicles this year.

Other entirely electric models are also prepared to go: We will recover the
MINI Electric late subsequent year; followed in 2020, by a first
fully-electric BMW – a iX3.


3. Expanding a mobility services into a clever business segment
that will element a core business. The designed corner try with
a Daimler Group is a subsequent judicious step. Together, we will take
innovative mobility services to a whole new level.


4. Our concentration on achieving a many offset placement of sales
possible, with internal prolongation in a categorical mercantile regions of
Europe, a Americas and Asia. This gives us larger coherence in
a stream trade disputes. Our tellurian prolongation network opens up
several possibilities for us. The new BMW X3 is now also being built
in Shenyang and Rosslyn, as good as during a Spartanburg plant.


5. Switching BMW models to a new WLTP exam procedure. With the
difference of only a few indication variants, we have already switched
several hundred models, good brazen of a Sep deadline. Since we
integrated a WLTP switch into a prolongation and sales planning
early, we are means to offer a swift business a same far-reaching operation of
products as usual. Delivery times for a models are a common three
months. We also have around 190 models that already accommodate a Euro
6d-TEMP emissions standard.


Our brazen formulation underscores how we put a interests of our
business first. It also creates it utterly transparent that: We face challenges
conduct on – regardless of where they come from. With a strategy, we
are posterior a transparent vision: to be NUMBER ONE. And we are steering the
BMW Group according to several opening indicators, essential for our
success. Three aspects are generally critical to us:


Profitability, enlargement and destiny competitiveness.


In 2017, we were a world’s many essential automobile company. That is why
we are means to continue investing in a future. We have a same aim
for a stream business year. In a initial half of 2018, Group
benefit before taxation exceeded 6 billion euros. The EBIT domain in the
Automotive Segment stays within a aim operation of 8 to 10 percent.
The Group EBT domain stands during 12.7 percent and is therefore above our
aim of 10 percent.


Growth is really critical in a rarely rival reward segment.

We are targeting essential enlargement and care in all segments
where we do business. Between Jan and Jun 2018, with a three
brands BMW, MINI and Rolls-Royce, we delivered some-more vehicles to
business than ever before in a initial 6 months of a year.


We are securing a destiny competitiveness by strengthening our
brands and formulating innovations – generally for unconstrained driving
and e-mobility. The work during a unconstrained pushing campus outside
Munich is in full swing. In May, we became a initial international
carmaker to accept a looseness from a City of Shanghai to test
unconstrained driving. Early subsequent year, we will open a new “Battery
Cell Competence Centre” in Munich. This is where we will concentration all our
technological imagination in a enlargement and prolongation of battery
cells that are a heart of a battery.


In a rarely flighty environment, we are constantly anticipating a right
change between all 3 explanation points – profitability, enlargement and
destiny competitiveness.


Over a past few months, a business sourroundings in that we
work has turn even some-more challenging. Despite this, a operating
business stays strong. Because a devise enables us to maintain
a march – even by formidable conditions.


For 2018, a goals sojourn unchanged:


  • A slight boost in automotive deliveries to a new all-time sales high.
  • Group benefit before taxation during a same high turn as a prior year.
  • An EBIT domain in a Automotive Segment of between 8 and 10 percent.


Of course, these goals assume that mercantile and domestic conditions
will not wear any further.


As we know, a BMW Group stays committed to giveaway trade and open
markets. Our tellurian participation enables us to sojourn stretchable and flexible.
More than ever, we are looking during opposite scenarios and are taking
advantage of opportunities in a vital regions.


China is a many critical singular marketplace and leads a approach in
e-mobility und connectivity. In new weeks, we’ve laid a trail for
critical vital steps.

We will be expanding and strengthening a business in China over the
prolonged term:


  1. We are expanding a corner try with BBA. We will boost our
    ability to 520,000 vehicles. Moreover, a initial fully-electric
    X3 will be exported from China to other markets. We are a first
    general automobile association to accept an agreement from a Chinese
    supervision permitting us to boost a interest in a corner venture
    from 2022.


  2. We have concluded to a 50:50 corner try with Chinese manufacturer
    Great Wall Motor and devise to build electric MINIs together. The
    corner try will also furnish electric models for Great Wall
    Motor. This is a judicious step into a electric destiny for MINI.


  1. We have sealed a chit of bargain with Baidu. The BMW
    Group will benefit a chair on a house of Apollo – that is Baidu’s
    open height for programmed driving.


  1. We have awarded CATL a agreement value a sum of 4 billion
    euros. CATL will build a largest battery-cell plant in Germany,
    that will supply battery cells for a BMW iNEXT from 2021. This
    means a whole value sequence for prolongation of electrified vehicles
    will be located here in Germany. This will be essential for
    expanding a heading position in e-mobility. We will also be
    purchasing tender materials for battery cells ourselves, especially
    cobalt, in a future.


As we can see: We have extended a participation in China in a single
stroke. At a same time, we are implementing a devise in other
marketplace regions.


Our largest plant is located in a United States. We remain
committed to a investment and enlargement skeleton there. Going forward,
we will build adult to 450,000 vehicles a year in Spartanburg and we will
sojourn a net exporter. That means: We will continue to furnish more
vehicles in Spartanburg than we sell in a US. The new X7 will also
minister to a enlargement strategy.


In all 3 vital sales regions – Europe, America, Asia – we
reported enlargement in a initial half of a year.


Europe stays a largest sales region. That is because we motionless to
build a new BMW plant in Hungary. After poignant investments in
China, Mexico and a USA, we are now focussing on a activities in
Europe. This ensures a worldwide change of prolongation between Asia,
America and a home continent. The new plant will set new standards
in digitalization, sustainability and coherence and will also lead
a approach in new technologies.


The substructure of a worldwide success is a clever indication offensive.


I’m certain that a new Z4 will be branch heads in 2019.
Journalists were only contrast prototypes.


Beginning with a X2, 2018 is a year of a X. We will offer three
additional models:

  • The new X4 has been on a marketplace given July.
  • The new X5 will be expelled in November.
  • Production of a all-new X7 will get underway towards a finish of
    a year.


This shows a transparent joining to do a customers’ increasing
direct for SAVs.


Ladies and Gentlemen, We have another ace adult a sleeve: A systematic
enlargement of a oppulance segment.

  • The new i8 Roadster is uninformed on a market.
  • Within a new 8 array indication range, prolongation of a new BMW 8
    Series Coupé is already underway. The marketplace launch is scheduled for
    November. This will be followed in 2019 by a Convertible and Gran
    Coupé, as good as a analogous M models. All models showcase
    a new pattern language.
  • Rolls-Royce will also be releasing a Cullinan. The media
    inflection and countless pre-orders uncover that a Cullinan perfectly
    reflects a apex of oppulance in a new off-road segment.


In a second half of a year, there is even some-more to come: a new
iNEXT prophesy automobile – divulgence new horizons.

As we can see: We are pushing full speed brazen – in a major
regions of a world, with innovative technologies and with new
products. We continue to follow a transparent vital roadmap and remain
rarely flexible. Thank you!