Press Conference BMW Group: THE NEXT 100 YEARS Harald Krueger Chairman of the Board of Management of BMW AG Santa Monica Air Center, 10 October 2016, 10:00 a.m.

This means a lot to me personally, as well. I have many fond memories of my years at the Spartanburg plant in South Carolina. I was there in 1994, when our first American-made BMW rolled off the assembly line. It’s a moment I’ll never forget. Today, Spartanburg is the largest plant in our international production network. More than 70 percent of our BMW X models we produce in the US are for export to the world. Spartanburg also shows that: Our commitment to the US is, and will remain, long term. We believe that the US will play a leading role in future mobility. I know and appreciate how open and accepting Americans are for anything new and innovative.

The State of California is rightly considered to be a pioneer in sustainability, especially when it comes to the reduction of emissions. We share a common vision for sustainable mobility. Already back in 2008 at the L.A. Auto Show, two models with innovative drivetrains had their world premieres: Our BMW Concept 7 Series ActiveHybrid and the MINI E. With the fully electric MINI E, we began the world’s largest field trial for
e-mobility, starting right here in Los Angeles back in 2009. I remember how people on the streets gave us the thumbs up for our pioneering spirit. It marked the beginning of an exciting journey. Today, the Los Angeles metropolitan area is again the perfect location for the final stop of our “Iconic Impulses” world tour. Together with you, we are opening a new chapter in the future of the BMW Group.

The desire to be on the move is ingrained in human nature. Individual mobility creates freedom and meets the personal needs of people's daily lives. However, in our rapidly changing world – individual mobility must evolve to meet the new requirements of a modern society. Completely new solutions are needed. As the BMW Group, we want to make an effective contribution to meet the major social challenges of the
21st century.

Our company has always driven progress in the industry through its technical innovations. For our customers, we have made individual mobility even safer, more connected and comfortable. Our past success strengthens us in the knowledge of what we can do. But above all, it provides motivation for new ideas. Now, a new era of individual mobility is about to begin.

The four central issues in this transformation will be what could be called the ACES. This stands for: Automated, Connected, Electrified, and Shared. Our Strategy Number ONE > NEXT provides answers to all of the new challenges. Our vision is: To be Number ONE. To inspire people on the move. To shape tomorrow’s individual premium mobility.

Already today, we offer the widest range of electric vehicles and plug-in hybrids in the premium segment. Our customers appreciate this: In the first eight months of this year, we already sold more alternative drive vehicles than in the whole of 2015. With our Strategy Number
ONE > NEXT we will systematically electrify all brands and model series within the Group. This includes new fully electric vehicles like the BMW X3 and MINI. At the same time, we are expanding the BMW i portfolio to fit our customers’ requirements: Orders for the new BMW i3 with 50 per cent more battery capacity have been very positive. In 2018, we will add a further i model – the BMW i8 Roadster. The next milestone will be the BMW iNEXT in 2021 – our new spearhead of innovation. This car will underscore our strong claim to leadership in highly-automated and autonomous driving.

This is just one example how we are driving digitalization forward in all areas of the company with Strategy Number ONE > NEXT. With this, we will create the next major change as a company: In the past decade, we have evolved from being the leading premium car company to the leading provider of premium mobility and services. Now, we aim to become the leading tech company and innovation driver in the field of mobility.

Digitalization creates new possibilities to give our customers an even more emotional and personal experience. With Number ONE > NEXT
we have a clear roadmap for 2020 and 2025.

However, we are a visionary company and not just a future-oriented one. And that takes spirit – the boldness to think far ahead and anticipate future customer desires and the needs of society. What might that distant future look like? We took the megatrends for 2030: And we believe these six main topics will play a crucial role for mobility:

• Mobility is becoming versatile. New forms of mobility will open up countless possibilities for people to get from A to B.
• Connectivity is becoming second nature. Everything will be connected in the future. We firmly believe that digitalization and artificial intelligence must benefit mankind.
• Mobility is becoming tailor-made. This means mobility will become more flexible and tailored to the individual user.
• Technology is becoming human. Technologies are getting smarter by the day. They can learn from humans and adapt accordingly.
• Energy is becoming emission-free. We will continue to implement sustainability throughout the value chain – including production.
• Responsibility is becoming diverse. Global companies strive to improve the lives of the people they are connected with. The BMW Group supports more than 200 environmental and social projects in over 42 countries and promotes intercultural exchange.

All of these future trends will change our mobility behavior. For us at the BMW Group, the future is already here. Earlier this year, we presented the Vision Vehicles for our BMW, MINI and Rolls-Royce brands. All of them offer common technologies: autonomous, electric and connected. Yet, each brand interprets the mobility of the future to reflect its own typical values and brand promise.

And today, we will present to you our vision on two wheels. Our
BMW Motorrad VISION NEXT 100 is the final highlight of our “Iconic Impulses” tour. This is the first time all four Vision Vehicles will make a joint appearance. You will have a chance to see all of them later.
Together, they create a clear picture of tomorrow’s individual mobility.

In our centennial year, we chose the motto THE NEXT 100 YEARS: Because our vision is nothing less than that. On March 7th – it was a very special moment for me as CEO to mark the start of the next 100 years, together with the next generation, in Munich.

And today – with these four Vision Vehicles – we want to show that we have already arrived at a place others are still only dreaming about.

Thank you!