STATEMENT OF THE CHAIRMAN OF THE BOARD OF MANAGEMENT

As you know, the long-term strategic course of your Company is based on inherent strengths that we have developed over time.

This includes first and foremost our global footprint with our extensive production, research and development, sales and supplier networks. This is also true for our technology-neutral approach, our unique premium multi-brand strategy and broad portfolio across all relevant customer segments, and our ability to identify the potential of new technologies and bring them to the roads in each major region.

These strengths give us flexibility and make us resilient – and have made your Company into one of only a few truly global automotive manufacturers.

As a global company with global brands, we are used to dealing with varied, changing conditions and unpredictability on the ground in each market. By leveraging our strengths, we successfully navigated through the changing dynamics and geopolitical frictions of our business environment throughout the 2025 financial year.

At the same time – and this underscores your Company’s high level of innovation – we have launched a major leap into the future. With the NEUE KLASSE, we are leading our core brand BMW, as well as the entire company, into a new era – fully aligned with our long-term strategic direction.

Consistently following our BMW way.

The launch of the BMW NEUE KLASSE.

Back in 2021, I promised we would lead BMW into a new era, with the NEUE KLASSE. With this all-new model generation, we have elevated every aspect of the car to the next level – from the drivetrain to battery technology and driving dynamics, from the operating system to the digital user experience. And with the new BMW design language, we have even skipped a whole generation.

The NEUE KLASSE is not just one vehicle; it is a massive leap that redefines the entire brand. The technologies and design language will be rolled out across the BMW portfolio – regardless of the drivetrain.

We invested early and extensively in our structures and technologies to bring this new vehicle generation to life. For our customers, this means a new dimension of sheer driving pleasure, and for your Company, this offers a clear competitive advantage.

Unveiling of the BMW iX3^* at the IAA Mobility 2025.

At the IAA Mobility in our backyard in Munich in September 2025, we unveiled the BMW iX3^*, the first vehicle of our NEUE KLASSE. The response was tremendous – from visitors and fans from across the globe, as well as from media, analysts and political stakeholders.

However, what is decisive: customer orders for the BMW iX3^* have already exceeded our expectations, with our order book extending several months into 2026. This shows just how positively the vehicle has been received by customers. And starting with the BMW iX3^*, it will set new benchmarks from its performance data to its digital user experience and sustainability approach.

BMW iX3^* wins multiple awards even before its official market launch.

Even before the first customers had sat behind the wheel of the BMW iX3^*, it won several renowned international awards.

At the “Golden Steering Wheel” awarded by “Auto Bild” German car magazine and the German weekly newspaper “Bild am Sonntag”, the BMW iX3^* was crowned “Best Innovation”. The new BMW iX3^* also won Top Gear Magazine’s 2026 Car of the Year. In addition, BMW set a new record at the “Auto Trophy” awards hosted by “Auto Zeitung”: the car magazine’s readers voted eight BMW models into first place and awarded BMW the title of “World’s Best Brand”.

Plant Debrecen opens with launch of the BMW iX3^*.

The groundbreaking ceremony for the new plant in Debrecen, Hungary, took place in June 2022 and just three years later we celebrated its official opening together with key local and national political decision makers in October 2025.

In line with our iFACTORY approach, the plant has already been up and running virtually since March 2023. Virtual planning using a digital twin allowed us to simulate production processes in real time before the plant went on stream.

The plant is also notable in terms of its focus on sustainability. At full capacity, manufacturing a vehicle at Plant Debrecen – including its high-voltage battery – will produce only 34 kilograms of CO₂ emissions in the plant. In the energy-intensive paint shop alone, we will save up to 12,000 tonnes of CO₂e per year. This is made possible by relying exclusively on electricity from renewable sources, rather than fossil fuels, during normal operation.

Debrecen continues to evolve into a major high-tech hub in the automotive industry’s European value chain, which your Company is contributing to and looks to leverage further as we ramp up production of the BMW iX3^* to meet strong global demand.

Plant Munich ready for start of the new BMW i3.

The second NEUE KLASSE model is preparing for launch at our main plant in Munich: the new BMW i3.

In just 18 months, about a third of the site underwent extensive remodelling, while a new assembly, logistics centre and body shop were built – all while still manufacturing up to 1,000 BMW 3 Series and 4 Series vehicles per day.

Like Plant Debrecen, Plant Munich is consistently aligned with the principles of the BMW iFACTORY. Both the new body shop and new assembly line were planned with a digital twin. Existing installations in the press shop and paint shop are also integrated into the BMW Group’s Virtual Factory. This made it possible to conduct functional testing of all technologies for the new vehicle generation virtually and well in advance.

After its unveiling in late March, series production of the new BMW i3 is scheduled to begin in Munich in the second half of 2026.

The technologies of the NEUE KLASSE will be rolled out across the entire BMW portfolio.

With the eighth generation of the BMW 3 Series, we will bring the NEUE KLASSE and its technology clusters further into the core of the BMW brand. Following the start of production at Plant Munich, other locations in our international production network begin with production of BMW 3 Series variants.

Throughout 2026, we will show how the NEUE KLASSE technologies will be integrated into further BMW models, such as the 7 Series and the X5.

As already announced, we will put 40 new models and model updates with NEUE KLASSE technology and design language on the roads worldwide by 2027. This all-new BMW generation will provide an enormous boost to our already broad and popular portfolio – with innovative technology solutions tailored to customers in their markets.

Robust performance in 2025 despite challenging business environment.

Our performance in 2025 and the popularity of our portfolio underscore the strong position in which we start the year 2026. Despite the impact from import tariffs and the challenging dynamic in the Chinese market, Group earnings remained above € 10 billion.

For the full year, the BMW Group achieved year-on-year volume growth with a total of 2.46 million vehicles delivered to customers worldwide. Weaker sales in China due to a highly competitive landscape were offset by strong growth in other major sales regions, particularly in Europe and the United States, where we even gained market share.

The BMW brand maintained its position as the global segment leader, driven by strong demand in particular from the BMW X1^*, BMW X3^*, and BMW X5^*, as well as our 3 Series and 5 Series.

Global approach to sales drives success.

What sets us apart from the competition is our broad and attractive portfolio of products across our brands, which offer customers across the globe the individual mobility solution that meets their needs, regardless of the drivetrain.

As we have been used to for many years, market conditions in 2025 varied considerably across the major world regions. As always, your Company made the most of the opportunities that presented themselves.

In Europe, the BMW Group saw growth of over 7% with sales reaching over one million vehicles for the first time since 2019. In the United States, we delivered over 419,000 vehicles, a 5% increase on the previous year.

The strong results in these regions helped to compensate for the challenging market environment in China, where we nonetheless sold around 626,000 vehicles – the most in any single market.

BMW M increases sales again and plans for electric offering.

BMW M increased its sales for the 14th consecutive year – with over 213,000 vehicles sold. Almost one in ten BMWs sold in 2025 was an M model.

From 2027, BMW M will usher in a new era in the high-performance vehicle segment as it, for the first time, brings an all-electric drivetrain to the racetrack-ready, distinctive BMW M driving experience.

New MINI family puts brand on growth trajectory.

With full availability of the new MINI Family, the brand achieved growth of almost 18% in 2025 – and, importantly, across all major regions. More than one in three MINIs sold worldwide is already electric – in many markets, the share is even above 50%. As a result, the brand makes a strong contribution to our Group BEV sales and CO₂ footprint.

The new MINI Countryman^* enjoyed particular popularity last year with a share of over 30% of the brand’s total volume.

In Europe, MINI has successfully switched to a new sales model, which is now online in a total of 23 markets. This new system offers customers a more holistic experience and allows MINI to more efficiently and transparently reach customers.

Another highlight in 2025 was the MINI Paul Smith editions, which were unveiled at the Japan Mobility Show and will hit the market this year. This new edition marks the next step in this successful collaboration, combining the unique design and character of two British icons.

Rolls-Royce celebrates the centenary of Phantom^*.

Our luxury brand Rolls-Royce maintained its sales performance from the previous year, with the Cullinan^* and Spectre^* driving sales in particular. Phantom^*, the marque’s pinnacle product, celebrated its centenary in 2025. At the Home of Rolls-Royce at Goodwood, the marque continues with its 300 million pound investment programme which will enable new state-of-the-art facilities and more space for Bespoke and Coachbuild.

BMW Motorrad confirms its leading position in the premium segment.

Despite the global decline in the motorcycle market segment above 500 cc, BMW Motorrad sold over 200,000 vehicles last year for the fourth consecutive year. More than half of our sales are in Europe, with Germany the strongest single market with over 25,000 motorcycles sold.

The appealing model range and the launch of important new models drove success – the BMW R 1300 RT, BMW R 1300 R and BMW R 1300 RS were met with immediate customer enthusiasm, while the BMW R 1300 GS Adventure, introduced a year earlier, also made a considerable contribution to sales.

At the IAA Mobility, the brand presented the BMW Motorrad Vision CE. It offers a look into our vision of the future of urban riding fun on two wheels without having to wear a helmet or motorcycle clothing, thanks to the unique structural bracket design.

BMW ALPINA enriches the BMW Group as a new brand.

On 1 January 2026, BMW ALPINA launched as an exclusive stand-alone brand under the BMW Group umbrella.

This will help us fill a gap in a highly attractive and lucrative segment with lots of growth potential – between top-end BMW models and Rolls-Royce. BMW ALPINA stands for maximum performance and superior ride comfort, complemented by an exclusive portfolio of bespoke options and custom materials. We are committed to making the new BMW ALPINA chapter one that meets the highest expectations of this storied brand.

Your Company is growing with electrified models.

Our electrified models continue to be a fundamental pillar of our strategy and a major growth driver. In the second quarter of 2025, we achieved an important milestone, with the delivery of our 1.5-millionth all-electric vehicle ever sold.

In 2025, the BMW Group delivered 642,071 electrified vehicles to customers worldwide, growth of 8.2% over the previous year. All-electric models saw a slight increase in sales, with 442,059 units delivered worldwide. Electrified vehicles accounted for 26% of total BMW Group sales worldwide in 2025, with all-electric vehicles representing around 18%.

In Europe, in particular, the BMW Group reported significant growth of around 28% in all-electric vehicles, which accounted for about a quarter of total sales. BEVs and plug-in hybrid electric vehicles combined reached a share of over 40% across the region.

MINI has made a major contribution to the Group’s strong performance, with an electric share worldwide of over 36% of sales. For the first time, the brand delivered more than 100,000 all-electric models to customers in a single financial year.

CO₂ target in the European Union overachieved again.

Thanks to our balanced mix of different highly efficient drive technologies and an increased share of electrified vehicles, your Company once again reduced the CO₂ emissions of its vehicle fleet sold in the European Union (EU27+2: EU, Norway, Iceland) in 2025 – just as we have consistently done for the past several years.

Based on preliminary internal calculations, the figure came in at 90.0 grams per kilometre according to WLTP – an outperformance of the applicable fleet target limit. This represents a reduction of approximately 9.5 compared to 2024. For us, it has long been clear that we would meet the targets for 2025 – and, importantly, without penalties, pooling or averaging.

Comprehensive approach to decarbonisation.

The reduction of fleet-wide emissions is just one aspect of your Company’s strategy of holistic decarbonisation. We are reducing CO₂e across the entire life cycle of our vehicles – from the supply chain to production, use and recycling.

Since 2020, we have been fully committed to the Paris Climate Agreement, with a target of achieving net zero by 2050.

In December, we announced another interim target on this path for 2035. Overall, we plan to reduce CO₂e emissions by 60 million tonnes compared to 2019. This means a further reduction of at least 20 million tonnes of CO₂e on top of the existing target of 40 million tonnes by 2030.

Of course, our strategy would not be credible if it did not translate directly into our products. Take the new BMW iX3^*, which perfectly illustrates our approach of reducing CO₂ wherever we have leverage. The BMW iX3 50 xDrive^* has a calculated secondary raw material content of approximately 33%, based on the overall vehicle. The energy consumption of the new BMW iX3^* is 20% lower than in the predecessor model. Plant Debrecen in Hungary, where the BMW iX3^* is being built, is the first BMW Group car factory that operates and produces vehicles without using fossil fuels, such as oil and gas, under normal operating conditions. In the supply chain, a combination of measures has led to a decrease in CO₂e emissions of 35% during product development.

Moreover, in February 2025, the BMW Group and PreZero, the international circular economy company that forms parts of the Schwarz Group, signed a strategic cooperation agreement to substantially advance the circular economy across the European automotive industry. Our aim is to develop a business model for the recycling of end-of-life vehicles, creating a closed loop for both materials and recycling.

All these efforts contribute to our goal of finding the most cost-effective CO₂e reductions throughout the value chain to deliver immediate results and support our commitment to resource conversation.

Continuous dialogue to achieve a realistic adjustment of long-term targets in the European Union.

Thanks to our successful technology-neutral strategy, we have reached our climate targets by following market demand and customer needs and by continually optimising all drivetrain variants. This is particularly important since electromobility adoption is progressing at different rates in individual markets.

Our results show that we can serve multiple preferences simultaneously: BEVs, PHEVs and our BMW M models all achieved growth in 2025.

To achieve climate goals and create effective CO₂ regulations, however, we must take a comprehensive view – one that accounts for the full carbon footprint of the vehicle and its value chain, and that also values climate-neutral fuels such as HVO100.

Such a holistic framework would reflect various market needs and uneven infrastructure development, while safeguarding Europe’s value chains, jobs and industrial competitiveness. And – above all – it delivers genuine climate protection and real reductions in CO₂.

Companies should be free to deliver the solutions, taking customer demands and needs into account, while adequately investing in new paths and technologies to achieve the EU’s climate goals.

We continue to strongly advocate for a review of the 2030 and 2035 targets in the EU. We have shown that technology neutrality and CO₂ reduction quotas are not contradictory. Rather, this approach keeps Europe competitive, while also reducing dependency on a single supply chain and specific raw materials and mitigating geopolitical risks.

With the NEUE KLASSE, your Company is demonstrating that technology neutrality and our commitment to a new CO₂ regulation in Europe do not contradict but rather complement each other. We remain in dialogue with key decision makers in the European Union to ensure that the European automotive industry remains on a sustainable, economically viable and globally competitive path.

BMW X5 as first vehicle with five drivetrains.

Hydrogen, for example, offers Europe an opportunity to use its expertise and take the lead on an emerging technology that will contribute to our climate goals.

The BMW X5 will be the first vehicle which we will offer with five different drivetrain technologies: battery electric, plug-in hybrid, petrol, diesel and hydrogen fuel cell technology.

In 2028, we will launch our first series-production hydrogen vehicle – the BMW iX5 Hydrogen.

The drive technology is based on the third-generation fuel cell system that the BMW Group is developing in collaboration with the Toyota Motor Corporation. Its fuel-cell systems will be built in Europe – strengthening resilience, reducing dependencies and expanding Europe’s strategic autonomy.

The BMW Group is also actively involved in efforts to expand the hydrogen refuelling network. This includes the Hydrogen Mobility at Scale initiative, which started a pilot phase in 2025 with the support of existing ecosystems in Germany and France to gather experience for deployment to further metropolitan areas and a potential later expansion to other countries.

Your Company is committed to the German and European industrial base.

The BMW Group automobile plants in Germany – in Dingolfing, Leipzig, Munich and Regensburg – form the core of the Company’s international production network.

Last year, the BMW Group once again produced more than one million vehicles at its German plants. We continually invest in these plants to update facilities and prepare for future product launches, including for the rollout of the NEUE KLASSE.

Construction also continues at the new facility in Irlbach-Straßkirchen in Bavaria, an assembly plant for high-voltage batteries for the plant network in Germany. Series production at the new location is planned to start at the end of 2026.

BMW Group as global player with flexible structures.

Over many decades, your Company has built up a comprehensive and balanced network of sales, production and supply chain operations spanning in particular the major regions of Europe, the United States and China. This makes us one of the few truly global players in the industry.

Our deep roots and long-term presence in global markets offer us many advantages.

First, they allow us to tap into leading-edge tends and developments in the individual markets and understand specific customer needs. Our ties to research universities, our R&D network and IT hubs and our network of local tech partners enable us to leverage key competencies from individual markets for our products and strategy.

Second, through our extensive footprint in key markets, we remain highly flexible and are resilient in the face of geopolitical instability and ever-increasing regulation. In line with our approach of production following the market, our sales in the major regions stem mostly from local production.

Finally, our strong market ties also allow us to engage in direct discussions with key political decision makers, who value our perspective. Here, it is not just about our individual interests, but rather finding solutions for customers worldwide and driving shared economic prosperity.

Sharpening our strategy in China.

Take China, for example. The NEUE KLASSE products we will launch in China are developed together with our local engineering teams and partners – in line with our principle of “in China, for China and with China”.

In April, we will celebrate the world premiere of the first of these vehicles: the BMW iX3 Long Wheelbase, which will be unveiled at the Auto China 2026 in Beijing and is scheduled to enter the market in the second half of the year. The feedback at the recent preview event for media representatives from China and Asia for the BMW iX3 China version has been very positive, with our digital features proving particularly popular.

The Chinese derivative of BMW Operating System X incorporates approximately 70% locally developed software, underscoring BMW’s strong in-market development capabilities. Navigation developed in collaboration with Amap provides precise visualisation of complex intersections and highway ramps.

The BMW Intelligent Personal Assistant, enhanced by large language models from Alibaba and DeepSeek, will enable faster and more natural voice interaction for vehicles in China. Integration with Huawei technologies – including Digital Key, HiCar and the My BMW App based on HarmonyOS NEXT – supports seamless connectivity between the vehicle, personal devices and home ecosystems for Chinese customers.

In parallel, we are also developing a China-specific Advanced Driver Assistance Systems software stack in collaboration with Momenta. The partnership will focus on software development and integration for Chinese road networks, traffic conditions and user expectations, utilising advanced AI algorithms and data-driven development methods.

Throughout 2025, the automotive market environment in China has become extremely competitive, which has had an impact on sales and earnings for domestic and foreign manufacturers alike.

Your Company has responded to the changing dynamics quickly: over the last several months, we have implemented measures to boost our performance in the market, speed up decision-making processes and strengthen local product substance. This includes, for example, a rightsizing of the retail structure in China, which is progressing faster than planned.

Artificial intelligence as an enabler in processes and products.

Of course, one of the dominant topics across markets and industries is how companies are able to leverage the capabilities of AI to boost their performance. At the BMW Group, we are continually assessing the potential of AI systems and implementing them internally to make our processes more efficient as well as in our production facilities to improve quality. Along our customer journey, we have also implemented AI systems to expand and improve customer care. In our products, we are enhancing our BMW Intelligent Personal Assistant with large language models such as Alexa+ and DeepSeek and Alibaba in China.

Launching a new era at the right time.

Dear Shareholders,

At the BMW Group, we are tackling the challenges in global markets head on, leveraging our strengths and implementing our long-term strategy. We have made significant investments and have created the right operating framework to deliver continued success.

Our flexible, global production network, our technology-neutral strategy, our focus on innovation and our ability to master technological complexity set us apart from the competition.

We will continue to lead with product substance across all our brands, based on our knowledge of what our customers want and our ability to identify trends in individual markets early and offer the right innovation solutions.

In 2025, we set the foundation to launch a new era with the BMW iX3^*. With the roll-out of NEUE KLASSE technologies and products over the coming years, we will bring the Company to a whole new level.

This is what you, as our shareholders, and all stakeholders expect from us.

The BMW brand is a promise. And we deliver on our promises.

This is how your Company is ALREADY AHEAD.

Oliver Zipse
Chairman of the Board of Management