Subject Department Date Page 1 Subject Department Date Page 2 Ludwig Willisch President and CEO BMW of North America, LLC Los Angeles International Auto Show November 16, 2011 The Ultimate Driving Machine Subject Department Date Page 3 BMW Group. Recap of 2013 Success. • BMW Group Number One Premium Manufacturer World-Wide 9 years in a row. • BMW Group also Number One Premium Manufacturer in the Americas. • 2013 - Greatest sales year ever in the US, in the Americas, and World-Wide. • 2013 - 1.96 million vehicle sold world-wide, including 376,000 vehicles sold in the US. Subject Department Date Page 4 BMW Group. Success Built on Three Key Elements. Success of the BMW Group Authentic and Desirable Brands Exceptional Products Satisfied Customers BMW MINI Rolls-Royce Motor Cars BMW Motorrad The Ultimate Driving Machine Subject Department Date Page 5 BMW Group. Mission Statement of the BMW Group is Clear. "The BMW Group is the world's leading provider of premium products and premium services for individual mobility." Subject Department Date Page 6 BMW Group. Basic Truths. • We are an engineering driven company dedicated to producing only premium vehicles. • As part of an expanding circle of communities around the world, we embrace social responsibility in all that we do. • As a leading innovator of mobility, we understand the definition of premium is changing to include sustainability in all facets of our business. • We are dedicated to exceptional customer satisfaction to provide our customers with the best premium mobility solutions suited to their needs. • We truly understand that we and our retailers live in a tight symbiotic relationship, and we rely on one another to ensure our mutual success. Subject Department Date Page 7 The Ultimate Driving Machine Subject Department Date Page 8 BMW Group. From M to i – BMW Stands for Performance and Sustainability. BMW i. Performance Sustainability BMW Group. BMW i3 and BMW i8 – the New Face of Premium Sustainable Mobility. BMW Project i. Sustainable E-Mobility Solutions to Address Global Trends. BMW Project i. Learnings from MINI E and BMW ActiveE Drive BMW i Development. MINI E (2009-2012) BMW ActiveE (2011-2014) BMW i3 and BMW i8 High satisfaction of mobility needs. Versatile and satisfying electric vehicle. BMW i more than just an electric car. Range rarely a limiting factor. High interest of purchase. Most users charge once daily and charging events decreased during usage. Joy of driving and one-pedalfeeling. Holistic approach to sustainable mobility – concept, materials, production, services, recyclability. BMW i delivers joy of driving. BMW Project i. Mobility Challenges Facing Megacities. Higher Relevance Other Traffic Participants Public Transport No Parking Traffic Jams/ Long Commute Only London Others Only US (highest increase) Smog and Air Pollution Congestion Charges Fuel Prices Lower Relevance Thank you for your attention. BMW i. LifeDrive Architecture – BMW i3. BMW i3 – Compact, yet Spacious. Interior volume comparable to a 3 Series Exterior dimensions comparable to a 1 Series BMW i. LifeDrive Architecture – BMW i3. • Battery-electric rear mounted drivetrain. • Low center of gravity. • Even weight distribution. • Spacious interior with flat floor. • Classic BMW rear wheel drive performance. BMW i. Performance and Efficiency – BMW i3. • 0-60 in 7 seconds. • Range: 80 -100 miles, ideal for over 90% of urban commuters. • Range doubled with Range Extender equipped model. BMW Group. Recognized as a Leader in Sustainability. BMW Group. SGL Joint-Venture Carbon Fiber Production – Moses Lake, WA. BMW i3. Recycled and Renewable Materials. Parts from recycled plastics. Wood trim from renewable Eucalyptus wood. BMW Group. Energy from Wind Power to build BMW i Vehicles at Leipzig Plant. 21 BMW i. Sustainable from Beginning to End. – 50% energy – 70% water Vehicle 95 % recycleable BMW i Full Range of Mobility Services. BMW i3 – Mobility Services. Intelligent use of Power. Interior and battery can be “preconditioned” to ideal temperature in advance, and while car is still plugged into the grid. BMW i3 – Mobility Services. Intelligent Route Planning to Maximize Range. BMW i3 – Mobility Services. Eco Pro and Eco Pro Plus Efficiently Extends Range. BMW i Mobility Services. Intelligent Route Planning Extends Beyond the Car. BMW i3 – Mobility Services. Chargepoint Network. BMW i3 – Mobility Services. Flexible Loaner Program for Longer Travel Plans. BMW i Mobility Services. DriveNow, ParkNow. BMW i3 Premium, Innovative and Sustainable. The BMW i8. BMW i8 Plug-in Electric Hybrid. LifeDrive Architecture. • Electric motor with 3 cylinder gasoline engine. • 0-62 in 4.2 seconds. • 94 MPG (EU testing). • 301 mile range. BMW i8 Commercial. BMW Future Retail - Holistic Approach to New Retail Experience. Goals. • Focus on providing Premium Customer Experience at every touch-point to satisfy a new generation of customers, and exceed their expectations. • Be well-prepared for the continued expansion of the BMW product line-up that includes innovative, new vehicle concepts and ground-breaking technologies. • Ensure continued profitability and sustained sales growth for us and our retail network, now and well into the future. BMW Future Retail. The Changing Expectations & Habits of New Generation of Customer. Today’s customer better informed Expect knowledgeable staff Prefer to stay at home Want their time valued Expect higher price transparency Inviting, no-pressure environment Less loyal, and willing to walk Changing Expectations of New Generation of Retail Customers Requires New Ways of Satisfying and Delighting Them. Current Retail Approach no Longer Acceptable With New Customer. “Business as usual” BMW Future Retail – a Culture of “Customer First”. Holistic Approach to the Retail Experience. Product Facility Process People BMW Future Retail Video. BMW Future Retail. Premium Showroom Environment Warm and Inviting. BMW Future Retail. BMW Geniuses Deliver Pressure-Free Product Consultation. •BMW Geniuses stand for pressure-free, knowlegble and enthusiastic product explanation and consultation at the dealership. •They are available to offer their knowledge and assistance before and after the sale. BMW Genius Leverages People and Latest Technology to Deliver Modern, Luxury Retail Experience. BMW Future Retail. BMW Genius App and Genius Hotline. • Video demos of features and functions • BMW Genius recommended tips based off of IQS ranking and technical service • Direct access to BMW Genius Hotline by call or e-mail • Available on: www.bmwgeniusapp.com • Specially trained team of product experts • Immediate answers about vehicles functions and features • Dedicated number (1-844-4Genius) and e-mail ( bmwgenius@bmwusa.com ) BMW Group. Success Driven by Visionary Approach. BMW i - a visionary rethinking of Premium Sustainable Mobility in all of its facets. BMW Future Retail – exceeding the expectations of a new generation of premium customers, now and tomorrow. THANK YOU VERY MUCH. Subject Department Date Page 48 Subject Department Date Page 49