Beijing October 19, 2012 CAPITAL MARKETS DAY CHINA 2012 DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE
CHINA IS A SUCCESS STORY FOR THE BMW GROUP DOUBLE-DIGIT GROWTH BY YEAR-END 2012. Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 2
CHINA S ECONOMIC DEVELOPMENT. THE 12TH FIVE-YEAR PLAN (2011 2015) AIMS AT A MORE MODERATE GROWTH PATH. (Ø GDP growth = 10.4%) (Ø GDP growth (Target) = 7%) 1990 2000 2010 2015 Economic growth from export/ investment driven to consumption driven Income redistribution and improving people s living standards Urbanization and regional development Energy saving and environmental protection Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 3
CONTENT. 1 Status BMW Group 2 Status BMW Group in China 3 Outlook 4 Summary Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 4
CONTENT. 1 Status BMW Group 2 Status BMW Group in China 3 Outlook 4 Summary Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 5
ON TRACK TO MEET OUR GUIDANCE: SALES VOLUME ABOVE PREVIOUS YEAR. BMW Group Sales development (units) September 2012 1.335 million + 8.3 % Sales by continent America +6.3% YTD Europe +0.8% YTD Asia +27.2% YTD Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 6
MARKET CONDITIONS WILL BE MORE DIFFICULT IN 2013. European markets will worsen in 2013 Additional costs for future investments Staying the strategic course Start of electromobility with the BMW i3 Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 7
CONTENT. 1 Status BMW Group 2 Status BMW Group in China 3 Outlook 4 Summary Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 8
GROWING SIGNIFICANCE OF CHINA. China has great potential for the future as well. China s significance for the BMW Group continues to grow. Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 9
GLOBAL INSIGHT DATA: CHINESE PREMIUM SEGMENT SHOWS SOLID GROWTH, IN MEDIUM-TERM AT A LOWER PACE. OUR OWN GROWTH EXPECTATIONS ARE LOWER. Premium Segment Development China in units of a thousand 3,000 2,500 2,000 1,500 1,000 CAGR: +43% CAGR: ca. +19% 933 CAGR: ca. +6% 1,981 2,603 500 0 111 2005 2011 2015E 2020E Source: Global Insight Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 10
CHINA HAS BECOME A MAJOR ENGINE FOR THE GROWTH OF GLOBAL PREMIUM SEGMENT. China s share of global premium segment 4% 8% >15% 18% 2007 2009 2011 FC 2012 China Rest of World Source: Global Insight Data Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 11
INCOME DISTRIBUTION: FURTHER GROWTH OF PREMIUM-RELEVANT UPPER AND UPPER MIDDLE CLASS. Income class definition by annual household income (inflation and purchasing power parity adjusted, base year 2005) 600 500 400 300 0 15 mn. premium-relevant households 11 24 23 105 CAGR: +8.2% CAGR: +9.0% 2012 2025 Source: IHS Global Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 12 31 73 107 213 Around 46mn. premiumrelevant households Upper Class (>100k USD) Upper Middle Class (60-100k USD) Middle Class (40-60k USD) Lower Middle Class (20-40k USD)
GROWING HNWI NUMBER IN MAINLAND CHINA CUSTOMERS HAVE A CLEAR PREFERENCE FOR LUXURY GOODS. Total Number of High Net Worth Individuals (HNWI) with net worth of US$ 1 Million or more in 2011 (unit: Thousands) 3,068 1,822 951 562 1. 2. 3. 4. Source: 2012 Global Wealth Report, by Capgemini and RBC Wealth Management Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 13
MAINLAND CHINA: URBANIZATION IN FAST MOTION. Level of urbanization already at 50%. Urbanization is driven by medium sized cities. Urban agglomerations by size Population (m) Level of urbanization (%) 1600 1200 800 400 Rural population Urban population 0 1955 1965 1975 1985 1995 2005 2015 2025 80 70 60 50 40 30 20 10 0 Urban population (m) 1000 900 800 700 > 10 m 600 5-10 m 500 400 1-5 m 300 0,5-1 m 200 < 0,5 m 100 0 1955 1965 1975 1985 1995 2005 2015 2025 Source: UN 2011 Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 14
BMW BRILLIANCE AUTOMOTIVE A JOINT SUCCESS STORY. Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 15
CHINA S DEALER NETWORK BY END OF SEPTEMBER 332 BMW OUTLETS AND 76 MINI OUTLETS. ROLLS- ROYCE HAS 13 DEALERS IN EAST AND CENTRAL CHINA. Daqing Jiamusi Harbin 4S Showroom Service outlet UCC *4S dealership refers to: Sale, Spare parts, Service & Survey Kelamayi Urumqi Mudanjiang Changchun Songyuan Shenyang Jilin Hohhot Jinzhou Baotou Beijing Panjin Anshan Erdos Yingkou Datong Qinhuangdao Langfang Tangshan Baoding Yulin Tianjin Dalian Shijiazhuang Dongying Yinchuan Taiyuan Yantai Lvliang Handan Xining Jinan Weifang Changzhi Qingdao Lanzhou Linfen Zibo Yuncheng Linyi Luoyang Xinxiang Lianyungang Zhengzhou Xuzhou Xi`an Huai an Yancheng Pingdingshan Bengbu Yangzhou Hefei Wuxi Nantong Deyang Mianyang Nanjing Suzhou Yichang Wuhan Changzhou Zhenjiang Huzhou Jiaxing Shanghai Wuhu Hangzhou Chengdu Ningbo Chongqing Jinhua Shaoxing Leshan Changsha Shangrao Taizhou Zunyi Lishui Xiangtan Wenzhou Zhuzhou Nanchang Ningde Guiyang Chenzhou Qujing Ganzhou Fuzhou Putian Guilin Zengcheng Quanzhou Kunming Liuzhou Guangzhou Longyan Zhaoqing Xiamen Nanning Foshan Dongguan Jjiangmen Shantou Zhongshan Huizhou Zhuhai Shenzhen Capital Markets Day China 2012, Dr. Friedrich Eichiner Haikou Page 16
BMW X1 AND 3 SERIES LONG WHEEL BASE FROM LOCAL PRODUCTION, AS WELL AS BMW 7 SERIES SUPPORT GROWTH. BMW 5 SERIES LWB CONTINUES SUCCESS. Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 17
FURTHER EXPANSION OF PRODUCTION CAPACITY. LOCAL PRODUCTION OF ABOUT 150,000 UNITS BY END OF 2012. Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 18
BMW FINANCIAL SERVICES CHINA PROFITABLE GROWTH WITH PARTNERS. Business volume of 10 billion RMB (~1.2 billion Euros) Penetration rate in August 2012 was ~12% Contracts are partly concluded with cooperation partners Growth by expansion of portfolio Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 19
CONTENT. 1 Status BMW Group 2 Status BMW Group in China 3 Outlook 4 Summary Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 20
THE BMW GROUP IS ON GROWTH TRACK IN CHINA. Double-digit Sales Growth in the coming years Growing local production Further growth in our market presence, across all tier cities Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 21
CONTENT. 1 Status BMW Group 2 Status BMW Group in China 3 Outlook 4 Summary Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 22
CHINA WILL REMAIN OUR GROWTH DRIVER IN ASIA. OUR TARGET IS A BALANCED GLOBAL MARKET APPROACH. Capital Markets Day China 2012, Dr. Friedrich Eichiner Page 23
Beijing, October 19, 2012 CAPITAL MARKETS DAY CHINA 2012 DR. FRIEDRICH EICHINER MEMBER OF THE BOARD OF MANAGEMENT OF BMW AG, FINANCE