Company Financial Analysis

F I N A N C I A L Y E A R 2 0 2 1

F I N A N C I A L S T A T E M E N T S O F B M W A G

2021 2020 Change in %

Revenues € million 88,526 75,040 18.0

Export ratio % 84.3 81.5

Production

Automobiles 1 Units 2,461,269 2,255,608 9.1

Motorcycles Units 187,500 168,115 11.5

Deliveries

Automobiles 1 Units 2,437,591 2,249,943 8.3

Motorcycles Units 184,613 170,918 8.0

Capital expenditure € million 3,304 2,790 18.4

Depreciation, amortisation and impairment losses € million 2,846 2,646 7.6

Workforce at end of year 83,308 84,668 – 1.6

Tangible, intangible and investment assets € million 18,511 16,834 10.0

Current assets, prepayments and surplus of pension and similar plan assets over liabilities € million 46,194 40,806 13.2

Subscribed capital € million 662 660 0.3

Reserves € million 14,438 13,252 8.9

Equity € million 18,927 15,165 24.8

as % of tangible, intangible and investment assets % 102.2 90.1

Balance sheet total € million 64,705 57,640 12.3

Cost of materials € million 66,246 57,425 15.4

Personnel expense € million 9,980 8,565 16.5

Taxes € million 1,085 232 –

Net profit € million 4,910 1,702 –

Dividend € million 3,827 2 1,253 –

per share of common stock with a par value of € 1 each € 5.80 2 1.90

per share of preferred stock with a par value of € 1 each € 5.82 2 1.92

1 Including supplies of series parts to BMW Brilliance Automotive Ltd., Shenyang. 2 Proposed by the Board of Management.

B M W A G I N F I G U R E S

BMW AG in Figures

Financial Statements of BMW AG2 Other InformationNotes

F I N A N C I A L S TAT E M E N T S

P U B L I C AT I O N

The BMW AG Financial Statements and Management Re- port for the financial year 2021 will be submitted electronical- ly to the operator of the Federal Gazette and can be obtained via the Company Register website. The Management Report of BMW AG is combined with the Group Management Report and published in the BMW Group Report 2021.

The Annual Financial Statements and the Management Re- port of BMW AG are also available on the BMW Group’s website at ↗ www.bmwgroup.com / ir.

Financial Statements of BMW AG3 Other InformationNotes

Financial Statements

in € million Notes 2021 2020

A S S E T S

Intangible assets 1 704 488

Property, plant and equipment 2 12,740 12,520

Investments 3 5,067 3,826

Tangible, intangible and investment assets 18,511 16,834

Inventories 4 7,287 5,748

Trade receivables 5 758 778

Receivables from subsidiaries 5 21,019 18,939

Other receivables and other assets 5 4,071 3,849

Marketable securities 6 3,077 3,336

Cash and cash equivalents 7 8,824 6,822

Current assets 45,036 39,472

Prepaid expenses 8 72 73

Surplus of pension and similar plan assets over liabilities 9 1,086 1,261

Total assets 64,705 57,640

B A L A N C E S H E E T AT 3 1 D E C E M B E R

Balance Sheet at 31 December

Financial Statements of BMW AG4 Other InformationNotes

in € million Notes 2021 2020

E Q U I T Y A N D L I A B I L I T I E S

Subscribed capital 10 662 660

Capital reserves 10 2,342 2,239

Revenue reserves 11 12,096 11,013

Unappropriated profit available for distribution 24 3,827 1,253

Equity 18,927 15,165

Registered profit-sharing certificates 12 26 27

Pension provisions 422 229

Other provisions 9,995 10,093

Provisions 13 10,417 10,322

Liabilities to banks 1 101

Trade payables 6,531 4,785

Liabilities to subsidiaries 24,462 23,404

Other liabilities 462 221

Liabilities 14 31,456 28,511

Deferred Income 15 3,879 3,615

Total equity and liabilities 64,705 57,640

Balance Sheet at 31 December

Financial Statements of BMW AG5 Other InformationNotes

I N C O M E S TAT E M E N T

in € million Notes 2021 2020

Revenues 16 88,526 75,040

Cost of sales 17 – 72,283 – 63,726

Gross profit 16,243 11,314

Selling expenses – 3,858 – 4,030

Administrative expenses – 3,243 – 2,747

Research and development expenses – 6,451 – 5,394

Other operating income 18 2,199 1,237

Other operating expense 19 – 1,460 – 1,250

Result on investments 20 2,991 3,084

Financial result 21 – 426 – 280

Income taxes 22 – 1,068 – 214

Profit after income tax 4,927 1,720

Other taxes – 17 – 18

Net profit 4,910 1,702

Transfer to revenue reserves 23 – 1,083 – 449

Unappropriated profit available for distribution 24 3,827 1,253

Income Statement

Financial Statements of BMW AG6 Other InformationNotes

N O T E S

7 Financial Statements of BMW AG Other InformationNotes

B A S I S O F P R E P A R AT I O N The financial statements of Bayerische Motoren Werke Aktiengesellschaft (BMW AG) have been drawn up in accord- ance with the accounting provisions contained in the German Commercial Code (HGB) and legislation applicable to stock corporations. Figures are presented in millions of euro (euro million) unless otherwise stated. BMW AG, which has its legal seat in Munich, is registered in the Commercial Register of the District Court of Munich under the number HRB 42243.

Key figures presented in the report have been rounded in ac- cordance with standard commercial practise. In certain cas- es, this may mean that values do not add up exactly to the stated total and that percentages cannot be derived from the values shown.

The income statement is presented using the cost of sales method. The financial year is the same as the calendar year.

N O T E S

Financial Statements of BMW AG8 Basis of Preparation

Other InformationNotes

A C C O U N T I N G P O L I C I E S

In order to improve clarity, individual items are aggregated in the balance sheet and income statement and presented separately in the notes to the financial statements.

Purchased intangible assets are valued at acquisition cost. Intangible assets with finite useful lives are amortised on a straight-line basis over their useful lives of between three and 20 years. Impairment losses are recognised where nec- essary. Internally generated intangible assets are not capi- talised.

Advance payments are stated at their nominal amount.

Property, plant and equipment are stated at acquisition or at manufacturing cost, less accumulated scheduled deprecia- tion and impairment losses. Manufacturing cost includes di- rect material and production costs and an appropriate pro- portion of material and production overheads (including production-related depreciation). Production-related admin- istrative costs, voluntary social costs and company pension costs are not included.

Property, plant and equipment are generally depreciated straight-line. The reducing balance method is still also ap- plied in specific cases. Items acquired during the year are depreciated on a time-apportioned basis. Impairment losses are recorded when the decline in value of an asset is consid- ered to be of a lasting nature. If the reasons for impairment no longer exist, impairment losses previously recorded are reversed, at a maximum up to their amortised acquisition and manufacturing cost. For simplification purposes, assets with an acquisition or manufacturing cost of up to € 250 are recognised directly as an expense in the year of pur- chase / construction. Assets with an acquisition or manufac- turing cost of between € 250 and € 1,000 are depreciated

using the straight-line method over a period of five years. Assets under construction are stated at their nominal amount.

The following useful lives are applied:

in years

Factory and office buildings, residential buildings, fixed installations in buildings and outside facilities 8 to 50

Plant and machinery 3 to 21

Other equipment, factory and office equipment 2 to 25

or plant and equipment used in multiple-shift operations, depreciation rates are increased to account for the additional utilisation.

Investments in subsidiaries and participations are stated at cost or, if lower, at their fair value. If the reasons for impair- ment no longer exist, impairment losses previously recorded are reversed, at a maximum up to the level of original cost. Loans which bear no or a below-market rate of interest are discounted to their present value.

The composition of and changes in long-lived assets are shown in the Analysis of Changes in Tangible, Intangible and Investment Assets.

Inventories of raw materials, supplies and goods for resale are stated at the lower of cost and net realisable value. Direct material and production costs and an appropriate proportion of material and production overheads (including produc- tion-related depreciation) are taken into account in the meas- urement of unfinished and finished goods. Production-relat- ed administrative costs, voluntary social costs and company pension costs are not included. Write-downs are made to cover risks arising from slow-moving items or reduced salea- bility. Inventories include advance payments made for raw

materials and supplies as well as goods for resale. Advance payments are reported at their nominal amount.

Receivables and other assets are stated at the lower of their nominal value or net realisable value. Receivables whose collectability is associated with identifiable risks are written down appropriately; uncollectible receivables are written off.

Investments in current marketable securities are measured at cost or, if lower, at their fair value at the end of the report- ing period. Fair value corresponds to the market price.

Cash and cash equivalents are stated at their nominal value.

Prepayments relate to amounts disbursed before the bal- ance sheet date, which represent expense for a specific pe- riod after the end of the reporting period.

Subscribed capital is stated at its nominal amount.

In order to meet obligations relating to pension plans, certain assets are managed on a trustee basis by BMW Trust e. V., Munich, in conjunction with Contractual Trust Arrangements (CTA). These assets are measured at their fair value, based on the market values of the corresponding fund manage- ment companies at the end of the reporting period. Desig- nated plan assets are offset against the related obligations. A provision is recognised when obligations exceed assets. When assets exceed obligations, the surplus is reported in the balance sheet in the line item “Surplus of pension and similar plan assets over liabilities”.

Pension obligations are measured in accordance with the projected unit credit method and discounted using an aver- age market interest rate for the past ten years, which corre- sponds to their remaining term. The calculation is based on independent actuarial valuations which take into account the relevant biometric factors. The difference in the carrying amount of the provision based on using the average market

Financial Statements of BMW AG9 Accounting Policies

Other InformationNotes

interest rate for the past ten financial years and that for the past seven financial years is disclosed in the notes to the fi- nancial statements. The provisions for long-service awards and for pre-retirement part-time work arrangements are also measured using the projected unit credit method. Income arising on assets offset against liabilities, from the unwind- ing of discounting and from the effect of changes in the dis- count rate are presented as part of the financial result. Changes in the fair value of designated plan assets held to meet securities-linked obligations are also reported as part of the financial result. All other components of pension ex- pense are included in the income statement under costs by function.

Tax provisions are calculated in accordance with the princi- ple of reasonable management judgement.

Other provisions are recognised to take account of all identi- fied risks. Provisions are measured at their expected settle- ment amount. In the case of non-current provisions, amounts are discounted using the average market interest rate – cal- culated and published by the Deutsche Bundesbank – which corresponds to the remaining term of the provision.

The measurement of provisions for warranty obligations and product guarantees (statutory, contractual and voluntary) in- volves estimations. These provisions are recognised as a general rule when the risks and rewards of ownership of the goods are transferred to the BMW Group’s sales companies, dealerships or retail customers. In order to determine the level of the provision, various factors are taken into consider- ation, including current estimations based on past experi- ence with the nature and amount of claims relating to vehi- cles delivered. In addition, the future level of potential repair costs (comprising materials and labour) as well as price in- creases per product are taken into account. In addition, the provision for warranty obligations and product guarantees also takes into account warranty-related events such as ve- hicle recalls on the date that the associated resolution is

passed. Provisions for statutory and non-statutory warranty obligations and product guarantees are adjusted regularly to take account of new circumstances and the impact thereof recognised in the income statement. Expected reimburse- ment claims are estimated and offset against provisions for statutory and non-statutory warranty obligations and prod- uct guarantees.

Provisions pre-retirement part-time working arrangements are measured at their expected settlement amount, dis- counted using the average market interest rate – calculated and published by the Deutsche Bundesbank – which corre- sponds to the remaining term of the obligations.

BMW AG assumes some of the residual value obligations arising at the level of BMW Group Financial Services entities in connection with the remarketing of vehicles and recognises provisions accordingly. For the purpose of measuring the pro- visions, contractually agreed residual values are compared with expected residual values on a contract-by-contract basis. The computation of expected residual values also takes ac- count of publicly available assessments of independent fore- casting institutes as well as in-house forecasts.

Liabilities are stated at their expected settlement amount at the balance sheet date.

The option of offsetting receivables from and payables to subsidiaries and companies in which an investment is held is not exercised.

Foreign currency receivables and payables are translated using the mid-spot exchange rate applicable at transaction date. Gains arising on the translation of period-end items are only recognised for receivables and payables with a re- maining term of one year or less. Unrealised losses resulting from changes in exchange rates are recognised by restating the foreign currency amount in the balance sheet to the clos- ing rate.

BMW AG uses derivative financial instruments to hedge in- terest rate, currency and commodity price risks arising in conjunction with operating activities as well as the resulting financing requirements. Where there is a direct hedging rela- tionship, the derivative financial instruments are aggregated together with recognised assets or liabilities and / or with forecast transactions into valuation units. Items denominat- ed in foreign currency are accounted for using the “Valuation Freeze method” (Einfrierungsmethode), translated using the relevant hedging rate.

BMW AG invoices affiliated sales companies that are based outside the eurozone in the relevant local currency. The re- sulting currency exposures are hedged by derivative curren- cy instruments, and accounted for as portfolio hedges within valuation units. The hedged items relate to highly probable forecast transactions that will be subsequently invoiced in a foreign currency. The high probability of occurrence of these transactions is based on past experience and production planning. BMW AG has elected to apply the “Valuation Freeze Method” (Einfrierungsmethode) for these hedging relationships.

Micro hedges are designated for currency derivatives used to hedge back-to-back derivative financial instruments with subsidiaries as well as for interest rate derivatives used to hedge financial receivables and liabilities. BMW AG has elected to apply the “Valuation Freeze Method” (Einfrierung- smethode) for these hedging relationships.

BMW AG negotiates contracts for the purchase of raw mate- rials across the Group. The raw materials price risk resulting from the purchase of raw materials for production compa- nies is borne either directly or indirectly by BMW AG. BMW AG enters into commodity derivatives to hedge these risks. These derivatives are accounted for as portfolio hedges within valuation units. The hedged items relate to highly probable forecast transactions. The high probability of oc- currence of these transactions is based on past experience

Financial Statements of BMW AG10 Accounting Policies

Other InformationNotes

and production planning. BMW AG has elected to apply the “Valuation Freeze Method” (Einfrierungsmethode) for these hedging relationships.

Since the principal features of the transactions included in a valuation unit are matched to a large extent, changes in fair values or cash flows generally offset each other. Hedging is in place for the whole term of the hedged item. Effectiveness is ensured as a general rule by the use of a critical term match. The effectiveness of the valuation units relating to foreign-currency-denominated revenues billed to sales sub- sidiaries is measured on the basis of regression analysis. The Dollar-Offset method is used to calculate the absolute amounts attributable to non-validity and ineffectiveness. Re- alised gains and losses arising on valuation units created for back-to-back derivative financial instruments entered into with subsidiaries and banks are presented in other operating income / expenses on a net basis.

If there is no hedging relationship, or if the hedging relation- ship is deemed to be insufficient, pending losses are recog- nised with income statement effect.

Deferred income relates to amounts received before the bal- ance sheet date, which represent income for a specific peri- od after the end of the reporting period. This also includes revenues billed for services which are rendered after the end of the reporting period. Revenues from sales with multiple components are analysed into the various performance components on the basis of fair values which can be deter- mined objectively and reliably.

Deferred taxes are calculated for temporary differences be- tween the tax base and accounting carrying amounts of as- sets, liabilities and deferred / prepaid items. Deferred tax as- sets and liabilities are measured using a combined income tax rate of 30.8 % relevant for the BMW AG tax group. This combined rate covers corporation tax, municipal trade tax and solidarity surcharge. In the case of temporary differenc-

es arising on assets, liabilities and deferred / prepaid items of partnership entities, in which BMW AG participates in the capacity of a shareholder, deferred taxes are measured on the basis of an income tax rate of 15.83 % which covers cor- poration tax and solidarity surcharge. In the year under re- port, the BMW AG tax group has a surplus of deferred tax assets over deferred tax liabilities, mainly as a result of tem- porary differences between the tax base and accounting carrying amounts of provisions for pensions and similar obli- gations (before offset against designated plan assets), other provisions and property, plant and equipment. BMW AG, as head of the German tax group, has elected not to recognise the surplus amount of deferred tax assets.

The share-based remuneration programmes for Board of Management members and senior heads of department en- title BMW AG to elect whether to settle its commitments in cash or with shares of BMW AG common stock. Based on the decision to settle in cash, the two share-based pro- grammes are accounted for as cash-settled share-based transactions. Share-based programmes expected to be set- tled in cash are revalued to their fair value at each balance sheet date between the grant date and the settlement date and on the settlement date itself. The expense for such pro- grammes is recognised in the income statement (as person- nel expense) over the vesting period of the options and in the balance sheet as a provision. Further information regarding the two share-based programmes is provided in ↗ note 41 to the BMW Group Financial Statements 2021.

Financial Statements of BMW AG11 Accounting Policies

Other InformationNotes

Acquisition or manufacturing costs Depreciation, amortisation and impairment losses Carrying amount

in € million 1. 1. 2021 Additions Reclassi- fications Disposals 31. 12. 2021 1. 1. 2021 Current year Disposals 31. 12. 2021 31. 12. 2021 31. 12. 2020

Intangible assets 804 376 – 42 1,138 316 160 42 434 704 488

Land, titles to land, buildings, including buildings on third party land 7,472 140 84 28 7,668 3,349 203 28 3,524 4,144 4,123

Plant and machinery 28,299 1,792 692 1,862 28,921 21,533 2,315 1,846 22,002 6,919 6,766

Other facilities, factory and office equipment 1,649 146 41 107 1,729 1,210 168 105 1,273 456 439

Advance payments made and construction in progress 1,192 850 – 817 4 1,221 – – – – 1,221 1,192

Property, plant and equipment 38,612 2,928 – 2,001 39,539 26,092 2,686 1,979 26,799 12,740 12,520

Investments in subsidiaries 3,731 1,152 – – 4,883 1 – – 1 4,882 3,730

Participations 625 – – – 625 539 -91 – 448 177 86

Other non-current loans receivable 10 1 – 3 8 – – – – 8 10

Investments 4,366 1,153 – 3 5,516 540 – 91 – 449 5,067 3,826

Tangible, intangible and investment assets 43,782 4,457 – 2,046 46,193 26,948 2,755 2,021 27,682 18,511 16,834

A N A LY S I S O F C H A N G E S I N TA N G I B L E , I N TA N G I B L E A N D I N V E S T M E N T A S S E T S

Financial Statements of BMW AG12 Analysis of Changes in Tangible, Intangible and Investment Assets

Other InformationNotes

N O T E S T O T H E B A L A N C E S H E E T

01. Intangible assets Intangible assets comprise mainly purchased software, fran- chises and licenses. Scheduled amortisation in the year under report totalled €  160 million (2020: €  130  million). Advance payments for intangible assets amounted to €  111 million (2020: € 41 million).

02. Property, plant and equipment Additions to property, plant and equipment relate primarily to infrastructure improvements and product-related investments in plant and machinery. Scheduled depreciation in the year under report totalled € 2.686 million (2020: € 2,516 million).

03. Investments Additions to investments relate mainly to a non-cash contri- bution to capital reserves of BMW INTEC Beteiligungs GmbH, Munich, amounting to € 957 million, as well as cash contribu- tions to capital reserves of BMW Anlagen Verwaltungs GmbH, Munich, and BMW Austria Bank GmbH, Salzburg, amounting to € 172 million and € 18 million respectively.

BMW AG holds an investment in SGL Carbon SE, Wies- baden. In the financial year under report, gains from write- ups amounting to € 91 million were recorded (2020: impair- ment losses of € 30 million).

04. Inventories

in € million 2021 2020

Raw materials and supplies 1,584 1,145

Work in progress, unbilled contracts 862 398

Finished goods and goods for resale 4,526 3,783

Prepayments 315 422

Inventories 7,287 5,748

05. Receivables and other assets

in € million 2021 2020

Trade receivables 758 778

Receivables from subsidiaries 21,019 18,939

thereof due later than one year 21 21

Other receivables and other assets 4,071 3,849

Receivables from other companiex in which an investment is held 1,953 1,903

Other assets 2,118 1,946

thereof due later than one year 22 18

Receivables and other assets 25,848 23,566

Receivables from subsidiaries comprise financial receiva- bles amounting to €  12,961 million (2020: €  13,543 million) and trade receivables amounting to € 8,058 million (2020: € 5,396 million). Other assets include primarily tax receiva- bles and advance payments on orders. Unless stated other- wise, receivables and other assets are due within one year.

Financial Statements of BMW AG13 Notes to the Balance Sheet

Other InformationNotes

06. Marketable securities Marketable securities relate primarily to one special invest- ment fund and to money market funds.

BMW AG holds all of the shares of the special investment fund. The fund is not subject to any restrictions in terms of the daily redemption amount. The acquisition cost for the shares in the special investment fund amounted to € 3,077 million (2020: € 3,077 million). The result for the fi- nancial year 2021 does not include any income from the sale of marketable securities (2020: € 106 million).

The following table shows the acquisition cost and fair value of investments held by the special investment fund at the end of the reporting period:

Acquisition cost Fair value

in € million 2021 2020 2021 2020

Fixed-income securities 2,885 2,887 2,865 2,902

Investment certificates 426 428 442 441

Shares 185 177 218 176

Cash and cash equivalents 8 20 8 20

Other marketable securities 25 3 25 3

Receivables and payables 5 5 5 5

Derivative instruments – – – –

Special investment fund 3,534 3,520 3,563 3,547

of the reporting period amounts to €  1,086 million (2020: €  1,261 million). The reconciliation of the asset-side differ- ence arising from offsetting assets and liabilities is shown under provisions ↗ note 13.

10. Subscribed capital and capital reserves

in Mio. € 2021 2020

Subscribed capital 662 660

Capital reserves 2,342 2,239

BMW AG’s issued share capital of €  662 million comprises 601,995,196 shares of common stock, each with a par value of € 1, and 59,404,304 shares of non-voting preferred stock, each with a par value of €  1. All of the Company’s stock is issued to bearer. Preferred stock bears an additional divi- dend of € 0.02 per share.

In 2021, a total of 1,718,070 shares of preferred stock was sold to employees at a reduced price of € 60.78 per share in conjunction with the Employee Share Programme. These shares are entitled to receive dividends for the first time with effect from the financial year 2022.

Issued share capital increased by € 1.7 million as a result of the issue to employees of 1,715,000 new shares of non-vot- ing preferred stock. The Authorised Capital of BMW AG at the end of the reporting period therefore amounted to nominal € 1.7 million (corresponding to 1.7 million shares of non-vot- ing preferred stock). The Company is authorised to issue shares of non-voting preferred stock amounting to nominal €  5.0 million prior to 15 May 2024. The share premium of €  102.5 million arising on this share capital increase was transferred to capital reserves.

In addition, 3,070 previously issued shares of preferred stock were acquired and re-issued to employees.

07. Cash and cash equivalents Cash and cash equivalents comprise cash at bank, of which € 1 million (2020: € 1 million) relates to amounts held at sub- sidiaries, and to cash on hand.

08. Prepaid expenses Prepaid expenses include amounts paid in advance for ser- vices to be performed in future periods.

09. Surplus of pension and similar plan assets over liabilities

Assets held to secure obligations relating to pensions are offset against the related liabilities. The assets concerned comprise mainly holdings in investment fund assets. The surplus of designated plan assets over liabilities at the end

Financial Statements of BMW AG14 Notes to the Balance Sheet

Other InformationNotes

11. Revenue reserves

in € million 2021 2020

Statutory reserves 1 1

Other revenue reserves 12,095 11,012

Balance brought forward 11,012 10,563

Transfer from net profit 1,083 449

Revenue reserves 12,096 11,013

The amount not available for distribution at 31 December 2021 was € 4,235 million (2020: € 4,081 million). This figure arises in conjunction with fair value gains amounting to € 3,279 million (2020: € 2,713 million) on assets held to ser- vice obligations for pensions and the difference of € 956 mil- lion (2020: €  1,368 million) in the carrying amount of the pension provision based on using the relevant average mar- ket interest rate for the past ten rather than seven financial years.

12. Registered profit-sharing certificates Employees are entitled to subscribe to shares of preferred stock as part of a wealth accumulation programme. These arrangements replaced the programme in place up to 1989, under which employees were entitled to subscribe to regis- tered profit-sharing certificates, with the level of the profit share based on the level of the dividend. A total of 529,714 registered profit-sharing certificates remained in place at 31 December 2021 (2020: 548,665 registered profit-sharing certificates).

13. Provisions

in € million 2021 2020

Pension provisions 422 229

Other provisions 9,995 10,093

Tax provisions 458 351

Sundry other provisions 9,537 9,742

thereof provisions for statutory and non-statutory warranty obligations and product guarantees 2,876 2,418

Provisions 10,417 10,322

BMW AG provides pension benefits to its employees in vari- ous forms. BMW AG’s pension obligations include defined benefit obligations, for which benefits are determined either by multiplying a fixed amount by the number of years of ser- vice or on the basis of an employee’s final salary. The de- fined benefit plans were closed to new entrants in 2014.

An additional pension plan is also in place – covered by trust assets – which pays defined benefit amounts that are pre- dominantly dependent on the contributions made by the Company, the investment income earned and a guaranteed minimum rate of interest.

BMW AG also offers employees the option of participating in a voluntary deferred remuneration retirement plan.

In the financial year 2021, employees in the defined benefit plan were given the option to switch to the defined contribu- tion plan. The fixed amounts to which employees were previ- ously entitled remain unchanged going forward. The previ- ous so-called “pension entitlement trend” (Festbetragstrend) has been converted – with the exception of one remaining component – into a career trend. Furthermore, an employee switching to the defined contribution plan received an enti-

tlement deemed to be equivalent in legal terms to their pre- vious rights. This does not, however, have a significant im- pact on the amount of the obligation for BMW AG.

As in the previous year, the measurement of obligations for pension plans and pre-retirement part-time working ar- rangements is based on the assumptions set out in the bi- ometric tables of Prof. Dr. Klaus Heubeck (2018 G) with inva- lidity rates reduced by 70 %. In addition, the following assumptions are applied:

in % 2021 2020

Discount factor for pension plans 1.87 2.30

Discount factor for pre-retirement part-time working arrangements 0.32 0.45

Future salary increases 2.81 2.67

Future pension increases 2.10 1.33

The discount rate used to discount pension obligations cor- responds to the average market interest rate for the past ten financial years for an assumed maturity term of 15 years, as calculated and published by the Deutsche Bundesbank. The difference in the carrying amount of the pension provision as a result of using an average market interest rate for ten rather than seven years is disclosed in the note on revenue reserves ↗ note 1.

In addition, the career trend component, which is plan-de- pendent and lies within a range of 0.25 % to 0.50 %, is now part of the measurement of pension obligations (2020: pen- sion entitlement trend of 2.0 %).

Financial Statements of BMW AG15 Notes to the Balance Sheet

Other InformationNotes

The provision for pensions amounting to € 442 million (2020: € 229 million) can be summarised as follows:

in € million 2021 2020

Fair value of assets held to cover pension obligations 13,961 12,315

Present value of defined benefit obligations 13,297 11,283

Surplus of pension and similar plan assets over liabilities 1,086 1,261

Pension provisions 422 229

If the fair value of the designated plan assets exceeds the pension obligations, the surplus amount is reported in the line item “Surplus of pension and similar plan assets over li- abilities” ↗ note 9. Acquisition cost of the designated plan as- sets for pension obligations amounted to €  10,136 million (2020: € 9,269 million).

Tax provisions comprise mainly expected income tax pay- ments relating to the financial year 2021 and previous years as well as payments for ancillary tax-related expenses.

Other provisions comprise obligations for personnel-related expenses, statutory and non-statutory warranty obligations and product guarantees, litigation and liability risks as well as selling activities. Warranty provisions include amongst others amounts recognised in connection with the exhaust gas recirculation cooler.

In 2019, a provision of € 1,394 million was recognised in con- nection with EU Commission antitrust proceedings, see ↗ note 13 to the Financial Statements of BMW AG for the finan- cial year 2019. In this antitrust investigation, the EU Commis- sion had alleged that five German car manufacturers collud- ed with the aim of restricting competition for innovation with regards to certain exhaust treatment systems for petrol- and diesel-driven passenger vehicles. The investigation was solely concerned with possible infringements of competition law. There were no allegations that the BMW Group con- ducted a deliberate and unlawful manipulation of the emis- sions control system. On the basis of BMW AG’s detailed submissions, the EU Commission dropped most of its charg- es. The proceedings were settled on 8 July 2021, and a fine amounting to € 373 million was issued. In the opinion of the EU Commission, the carmakers concerned – within the framework of what was actually legitimate technical cooper- ation in the development of SCR technology – created an undue degree of transparency with regard to the sizes of their AdBlue tanks, the range that can be achieved with a full tank and the assumed average AdBlue consumption, there- by violating EU competition law. The amount of the provision exceeding the fine was reversed with income statement ef- fect in the year under report. The fine was paid in July 2021, thereby concluding the EU Commission’s proceedings.

Financial Statements of BMW AG16 Notes to the Balance Sheet

Other InformationNotes

14. Liabilities

2021 2020

Total thereof with a remaining term of Total thereof with a remaining term of

in € million  

up to one year 1 to 5 years more than

5 years  

up to one year 1 to 5 years more than

5 years

Liabilities to banks 1 1 – – 101 101 – –

Trade payables 6,531 6,531 – – 4,785 4,785 – –

Liabilities to subsidiaries 24,462 24,462 – – 23,404 23,054 350 –

Other liabilities 462 449 10 3 221 217 1 3

Advance payments received on orders 38 38 – – 25 25 – –

Payables to entities in which a participation is held 200 200 – – 73 73 – –

Liabilities to BMW Unterstützungsverein e. V. 3 – – 3 3 – – 3

Sundry other liabilities 221 211 10 – 120 119 1 –

thereof for social security 39 39 – – 41 41 – –

thereof for taxes 1 1 – – 18 18 – –

Liabilities 31,456 31,443 10 3 28,511 28,157 351 3

Payables to subsidiaries comprise financial liabilities amount- ing to € 20,125 million (2020: € 19,323 million) and trade pay- ables amounting to € 4,337 million (2020: € 4,081 million).

15. Deferred income Deferred income includes revenue received for services to be performed in future accounting periods, including € 3,582 mil- lion (2020: € 3,322 million) deferred for work still to be performed in conjunction with service and maintenance contracts.

Financial Statements of BMW AG17 Other InformationNotes

Notes to the Balance Sheet

N O T E S T O T H E I N C O M E S TAT E M E N T

16. Revenues

in € million 2021 2020

Automobiles 74,234 62,683

Motorcycles 1,881 1,732

Other revenues 12,411 10,625

Revenues 88,526 75,040

Information by region 2021 2020

Germany 13,918 13,902

China 19,559 16,401

USA 17,814 12,340

Rest of Europe 23,511 20,332

Rest of Asia 8,330 7,768

Rest of the Americas 2,894 2,264

Other regions 2,500 2,033

Revenues 88,526 75,040

The line item Rest of the Americas comprises the markets in North America, Central America and South America, but ex- cluding the USA. The markets in Africa, Australia and Oce- ania are aggregated in the line item Other regions.

17. Cost of sales Cost of sales comprises mainly production costs of materi- als, bought-in goods and services, personnel expenses, de- preciation and amortisation of assets, production-related rent and leasing expenses as well as expenses for statutory and non-statutory warranties and product guarantees.

18. Other operating income Other operating income totalling €  2,199 million (2020: € 1,237 million) includes mainly income arising on the rever- sal of provisions, realised exchange rate gains and other sundry items.

Other operating income relating to prior periods amounted to € 1,489 million (2020: € 368 million), mainly for the rever- sal of provisions. This includes the reversal of the provision relating to EU Commission antitrust proceedings amounting to € 1,021 million. Further information is provided in ↗ note 13.

Gains resulting from the measurement of foreign currency items using closing exchange rates totalled €  71 million (2020: € 56 million).

19. Other operating expenses Other operating expenses amounted to €  1,460 million (2020: € 1,250 million) and included in particular allocations to provisions for litigation and other legal risks as well as re- alised exchange rate losses.

Other operating expenses relating to prior periods amounted to € 30 million (2020: €  29 million). Losses resulting from the measurement of foreign currency items using closing ex- change rates totalled € 45 million (2020: € 55 million).

20. Result on investments

in € million 2021 2020

Income from profit and loss transfer agreements 2,991 2,968

Income from investments – 117

thereof from subsidiaries – 117

Expense of assuming losses under profit and loss transfer agreements – – 1

Result on investments 2,991 3,084

Income from profit and loss transfer agreements related mainly to BMW INTEC Beteiligungs GmbH, Munich, amount- ing to €  2,484 million (2020: €  2,821 million), BMW Bank, Munich, amounting to € 251 million (2020: € 0 million) and BMW M GmbH Gesellschaft für individuelle Automobile, Mu- nich, amounting to € 186 million (2020: € 96 million).

Financial Statements of BMW AG18 Notes to the Income Statement

Other InformationNotes

21. Financial result

in € million 2021 2020

Other interest and similar income 91 62

thereof from subsidiaries 77 56

Reversals of impairment losses on non-current financial assets and current marketable securities 91 –

Impairment losses on non-current financial asstes – – 33

Interest and similar expenses – 608 – 309

thereof to subsidiaries – 75 – 59

thereof financial expense from unwinding the discounting of pension and long-term personnel-related provisions – 359 – 144

thereof expense from unwinding the dis- counting of liabilities and other provisions – 50 – 52

Financial result – 426 – 280

Financing income / expense for pension and long-term per- sonnel expense-related provisions results from netting the following items:

in € million 2021 2020

Income from fund assets offset against liabilities 603 819

Expense from unwinding discounted pension and long-term personnel expense-related provisions and effect of changes in the discount factor – 962 – 963

Financial income / expense from pension and long-term personnel-related provisions – 359 – 144

22. Taxes on income The expense for income taxes relates to current tax for the financial year 2021. This includes prior year tax income amounting to € 70 million (2020: tax expense of € 104 mil- lion) relating in particular to transfer pricing risks and ancil- lary tax-related expenses.

23. Transfer to revenue reserves An amount of € 1,083 million (2020: € 449 million) was transferred from net profit for the year to other revenue re- serves.

24. Unappropriated profit It is proposed that the unappropriated profit of BMW AG for the financial year 2021 amounting to € 3,827 million be uti- lised as follows:

Payment of a dividend of € 5.82 per share of non-voting pre- ferred stock, each with a par value of € 1, on the stock enti- tled to receive a dividend (57,686,234 shares of preferred stock), amounting to € 335,733,881.88.

Payment of a dividend of € 5.80 per share of common stock, each with a par value of € 1, on the stock entitled to receive a dividend (601,995,196 shares of common stock), amounting to € 3,491,572,136.80.

Financial Statements of BMW AG19 Notes to the Income Statement

Other InformationNotes

O T H E R D I S C LO S U R E S

25. Cost of materials

in € million 2021 2020

Cost of raw materials and goods for resale 62,885 54,994

Cost of purchased services 3,361 2,431

Cost of materials 66,246 57,425

26. Personnel expense

in € million 2021 2020

Wages and salaries 7,819 7,316

Social security, pension and welfare costs 2,161 1,249

thereof pension expenses 1,046 204

Personnel expense 9,980 8,565

Social security contribution reimbursements received are ac- counted for in the period to which they relate, with amounts offset directly against the corresponding personnel expenses.

The increase in pension expenses was particularly influ- enced by the expected pension trend.

Personnel expense does not include financial expenses re- lating to pension and long-term personnel provisions amounting to €  359 million (2020: €  144 million), as dis- closed in ↗ note 21.

Average workforce during the year 2021 2020

Head office and Munich plant 36,717 37,982

Dingolfing plant 17,005 17,525

Regensburg plant 7,944 8,608

Leipzig plant 4,898 5,025

Landshut plant 3,482 3,747

Berlin plant1 3,108 3,182

Branches 4,990 5,185

78,144 81,254

Apprentices and students gaining work experience 5,510 5,258

Average workforce during the year 83,654 86,512 1 Including in Munich located workforce for BMW Group Segment Motorcycle.

27. Fee expense of the external auditor Work performed during the financial year 2021 by the Group auditor PricewaterhouseCoopers GmbH Wirtschaftsprü- fungsgesellschaft, Frankfurt am Main, Munich branch, for BMW AG and subsidiaries under its control relates to the au- dit of the financial statements, other attestation services and other services.

The audit of financial statements comprises mainly the audit of the Company and Group Financial Statements of BMW AG and subsidiaries under its control, and, in accordance with current requirements, all related work, including the review of the Interim Group Financial Statements.

Other attestation services include mainly project-related au- dits, comfort letters and statutorily prescribed, contractually agreed or voluntarily commissioned attestation work.

Other services mainly include consulting services relating to production processes.

The fee expense of the external auditor is not reported here due to the exempting group clause contained In accordance with § 285 No. 17 HGB (German Commercial Code).

28. Contingent liabilities

in € million 2021 2020

Guarantees for bonds under the AMTN / EMTN programme 31,078 35,390

thereof in favour of subsidiaries 31,078 35,390

Guarantees for commercial paper 1,374 550

thereof in favour of subsidiaries 1,374 550

Guarantees for other debt capital transactions 23,949 23,718

thereof in favour of subsidiaries 23,949 23,718

Other 8,857 5,893

of which to subsidiaries 8,804 5,835

Contingent liabilities 65,258 65,551

BMW AG is liable for the full extent and amount of customer deposits taken in by the subsidiary, BMW Bank GmbH, Mu- nich, instead of the Deposit Protection Fund of the Associa- tion of German Banks (Einlagensicherungsfonds des Bun- desverbands deutscher Banken e. V.), of which BMW Bank GmbH, Munich, is a member. The maximum liability per cus- tomer is capped at 15 % of the equity capital of BMW Bank GmbH, Munich.

The above table does not include any amount relating to the declaration issued on behalf of BMW Bank GmbH, Munich, since it is not possible to determine a reliable value.

Financial Statements of BMW AG20 Other Disclosures

Other InformationNotes

Based on the information available to BMW AG at the date of the preparation of the financial statements regarding the fi- nancial condition of the principal debtors, BMW AG consid- ers that the obligations underlying the contingent liabilities shown above can be fulfilled by the relevant principal debt- ors. In the case of so-called double contingent liabilities, the potential risk of BMW AG being called upon is included only once within contingent liabilities.

BMW AG considers it unlikely that it will be called upon in conjunction with these contingent liabilities.

29. Other financial commitments and off-balance-sheet transactions

Other financial commitments totalled € 2,495 million (2020: €  2,671 million) and comprise mainly obligations arising from rental and leasing contracts.

The total amount of these obligations can be analysed by maturity as follows:

in € million 2021 2020

due within one year 823 929

due between one and five years 744 773

due later than five years 928 969

Other financial commitments 2,495 2,671

Of these amounts, € 923 million (2020: € 1,030 million) re- late to subsidiaries.

Capital expenditure commitments and long-term purchase commitments for inventories are at a normal level for the business.

As part of BMW AG’s refinancing activities, some receivables have been sold to other BMW Group entities and sale-and- lease-back transactions entered into in previous years. No significant risks and rewards remain with BMW AG in con- junction with these transactions.

Buyback commitments amounting to € 3,741 million (2020: €  3,600 million) relate entirely to commitments given by BMW AG to financial services subsidiaries in conjunction with vehicle sales and vehicle leasing. Of this amount, €  1,977 million (2020: €  1,795 million) falls due within one year.

30. Related party transactions Transactions with related parties are all conducted at market conditions.

Financial Statements of BMW AG21 Other Disclosures

Other InformationNotes

31. Derivative financial instruments

No provisions were required to be recognised in the financial year 2021 either for negative fair values of derivative instru- ments not designated as part of a hedging relationship or for the ineffective portions of valuation units (2020: €  55 mil- lion).

The nominal amounts of the derivative financial transactions are reported on a gross basis, derived from the absolute pur- chase and sale amounts or in accordance with the contract values of the hedged items. The fair values of currency and interest-rate-related instruments shown are measured on the basis of market information available at the balance sheet date or using appropriate measurement techniques e. g. the discounted cash flow method. Options are meas-

Nominal volume Fair values

in € million 2021 2020 2021 2020

Currency-related contracts

Forward currency contracts 44,979 19,880 – 635 194

thereof positive fair values – – 455 308

thereof negative fair values – – – 1,090 – 114

Interest rate-related instruments

Interest swaps 10 110 – –

thereof positive fair values – – – –

thereof negative fair values – – – –

Purchasing-related instruments

Commodity derivatives 3,904 3,297 1,058 516

thereof positive fair values – – 1,159 574

thereof negative fair values – – – 101 – 58

Derivative financial instruments 48,893 23,287 423 710

ured based on on quoted prices or option price models using appropriate market data.

The fair values of commodity hedging contracts are general- ly determined on the basis of current reference prices, as ad- justed for forward premium and discount amounts. Due to limited market maturity, no comprehensive data is currently available for the valuation of certain raw materials. In these cases, data is collated and updated on the basis of regular bank and trader inquiries with a view to modelling forward curves. The valuation methodology applied is in line with the general valuation principles for derivatives used within the treasury management system of the BMW Group.

The respective fair values of derivative financial instruments do not include any offsetting change in the fair value of the hedged items.

Financial Statements of BMW AG22 Other Disclosures

Other InformationNotes

Amounts are discounted at 31 December 2021 on the basis of the following interest rates:

in % EUR USD GBP JPY CNY

Interest rate for six months – 0.49 0.20 0.61 – 0.14 3.93

Interest rate for one year – 0.49 0.52 0.88 0.02 2.47

Interest rate for five years 0.02 1.35 1.29 0.05 2.99

Interest rate for ten years 0.30 1.57 1.21 0.14 3.35

Financial Statements of BMW AG23 Other Disclosures

Other InformationNotes

32. Valuation units BMW AG is exposed to risks from changes in exchange rates, raw material prices and interest rates arising in connection with recognised assets and liabilities as well as forecasted transactions. These risks are hedged predominantly by de- rivative financial instruments and are assigned to valuation units.

At 31 December 2021, BMW AG held foreign currency deriva- tives with terms of up to 36 months (2020: 28 months). For- eign currency derivatives are used to hedge highly probable forecasted transactions from trade payables and trade re- ceivables that will be denominated in a foreign currency. De- rivative financial instruments also include back-to-back con- tracts entered into with subsidiaries and banks.

Hedges for future purchases of commodities relate to non-pending forecasted transactions with a high probability of occurrence. Changes in prices of these raw materials have an impact on BMW AG’s production costs. Hedging strate- gies have therefore been put in place for raw materials man- agement purposes, based on forecasted purchase volumes. Commodity derivative instruments with terms of up to 60 months were in place at the end of the reporting period (2020: 51 months).

In addition, BMW AG held interest-rate derivative instru- ments with terms of up to 27 months (2020: 39 months), in- cluding back-to-back contracts entered into with subsidiar- ies and banks. Fixed-interest financial instruments are used as a hedge against interest-rate risks.

The amounts disclosed for volumes hedged relate to the car- rying amounts of hedged assets and liabilities, the nominal amount of forecasted transactions and the fair value of hedged pending transactions for the duration of the valua- tion units. The figures disclosed for the amount of the hedged item refer to the non-recognition of a provision for onerous contracts with negative fair values. In accordance with the Net hedge presentation method, no depreciation on assets or upward revaluations of liabilities are recognised.

Volume hedged Amount of risk hedged

in € million 2021 2020 2021 2020

Currency risk hedges

Forecast transactions 30,631 16,351 905 57

Executory contracts 172 2 185 2

Interest rate hedges

Assets 10 10 – –

Liabilities – 100 – –

Commodity hedges

Forecast transactions 3,904 3,291 101 57

Valuation units 34,717 19,754 1,191 116

Financial Statements of BMW AG24 Other Disclosures

Other InformationNotes

33. Total remuneration of the Board of Management and the Supervisory Board

The total remuneration of the current members of the Board of Management for the financial year 2021 amounted to € 36.7 million (2020: € 20.8 million). No further shares were granted to active current members of the Board of Manage- ment during the financial year under report (2020: 7,001 shares). In the previous year, the fair value of the shares granted amounted to € 0.5 million.

The remuneration of former members of the Board of Man- agement and their dependants amounted to €  14.2 million (2020: € 13.1 million).

Pension obligations to former members of the Board of Man- agement and their surviving dependants are covered by pension provisions amounting to €  105.5  million (2020: € 100.5 million), computed in accordance with HGB.

For the financial year 2021, the members of the Supervisory Board will receive exclusively fixed remuneration totalling € 5.5 million (2020: € 5.6 million).

The remuneration system for members of the Supervisory Board does not include any stock options, value appreciation rights comparable to stock options or any other share-based remuneration components.

No advances and loans were granted by BMW AG to mem- bers of the Board of Management and the Supervisory Board in the financial year, nor were any contingent liabilities entered into on their behalf. During the year under report, members of the Board of Management and the Supervisory Board concluded contracts with BMW Group companies for vehicle leasing and vehicle services (maintenance and repair work) on customary market terms and conditions.

34. Disclosures pursuant to § 160 (1) no. 8 of the German Stock Corporation Act (AktG)

A number of shareholdings in the Company exist at 31 De- cember 2021, which have been notified in accordance with §  33 (1) of the German Securities Trading Act (WpHG) and published with the following content in accordance with § 40 (1) WpHG:

Stefan Quandt informed us that his voting rights in BMW AG on 16 February 2018 amounted to 25.83 % (previously 25.83 %), corresponding to 155,485,833 voting rights. 25.63 % (corresponding to 154,300,215 voting rights) are at- tributable to Mr. Quandt in accordance with § 34 WpHG. This includes 16.61 % indirectly attributable to him via AQTON GmbH & Co. KG für Automobilwerte and 9.02 % via AQTON SE.

Susanne Klatten informed us that her voting rights in BMW AG on 15 February 2018 amounted to 20.94 % (previ- ously 12.75 %), corresponding to 126,068,819 voting rights. 20.74 % (corresponding to 124,883,201 voting rights) are at- tributable to Ms. Klatten in accordance with § 34 WpHG.

BlackRock, Inc., Wilmington, Delaware, USA, informed us that its voting rights in BMW AG on 30 June 2020 amounted to 3.08 % (previously 2.9997 %), corresponding to 18,547,874 voting rights. All of these shares are attributable to BlackRock, Inc. in accordance with § 34 WpHG.

The voting power percentages disclosed above may have changed subsequent to the dates stated, if these changes were not required to be reported to the Company. Due to the fact that the Company’s shares are issued to bearer, the Company is generally only aware of changes in sharehold- ings if such changes are subject to mandatory notification rules.

Voluntary notifications at 31 December 2021 relating to in- vestments that exceed 10 % of the voting rights at the end of the reporting period are disclosed in the Management Re- port.

35. Events after the end of the reporting period On 11 February 2022, the BMW Group acquired a further 25 % of the shares in the previous joint venture BMW Bril- liance Automotive Ltd. Further information is provided in ↗ note 3 of the Group Financial Statements in the BMW Group Report 2021.

The war in Ukraine had no impact on the Annual Financial Statements for the year ended 31 December 2021. Any po- tential effects on BMW AG‘s business performance are being monitored on an ongoing basis. Due to risks in upstream processes (e. g. bottlenecks caused by supply shortages), BMW AG considers it likely that vehicle production and sales will be affected, with a corresponding negative impact on earnings. Current estimates and assumptions for the finan- cial year 2022, to the extent already known to the BMW AG, have been taken into account and described in the outlook. Apart from these assessments, no further negative effects are known or can be estimated at the present time. However, it cannot be ruled out that further negative effects may arise over the course of the year.

Apart from this, no other events have occurred since the end of the financial year could have a major impact on the results of operations, financial position and net assets of BMW AG and the BMW Group.

36. Declaration with respect to the Corporate Govern- ance Code

The Declaration with respect to the Corporate Governance Code pursuant to § 161 AktG is reproduced in the BMW Group Report 2021 and is available to shareholders on the BMW Group’s website ↗ www.bmwgroup.com / ir.

Financial Statements of BMW AG25 Other Disclosures

Other InformationNotes

L I S T O F I N V E S T M E N T S AT 3 1 D E C E M B E R 2 0 2 1

37. List of investments at 31 December 2021 The List of Investments of pursuant to § 285 and § 313 HGB is presented below. Disclosures for equity and earnings and for investments are not made if they are of “minor signifi- cance” for the results of operations, financial position and net assets of BMW AG pursuant to § 286 (3) sentence 1 no. 1 HGB and § 313 (3) sentence 4 HGB. It is also shown in the list which subsidiaries apply the exemptions available in § 264 (3) and § 264 b HGB with regard to the publication of annual financial statements and the drawing up of a man- agement report and / or notes to the financial statements (footnotes 5 and 6). The Group Financial Statements of BMW AG serve as exempting consolidated financial state- ments for these companies.

A F F I L I AT E D C O M P A N I E S ( S U B S I D I A R I E S ) O F B M W A G AT 3 1 D E C E M B E R 2 0 2 1

Companies Equity in € million Profit / loss in € million Capital investment in %

DOMESTIC 1,10

BMW Beteiligungs GmbH & Co. KG, Munich 6 8,390 1,494 100

BMW INTEC Beteiligungs GmbH, Munich 3,6 4,515 – 100

BMW Bank GmbH, Munich3 2,075 251 100

BMW Finanz Verwaltungs GmbH, Munich 213 3 100

BMW Anlagen Verwaltungs GmbH, Munich 3,6 179 – 100

BMW Vertriebszentren Verwaltungs GmbH, Munich 173 4 100

Parkhaus Oberwiesenfeld GmbH, Munich 106 27 100

Alphabet Fuhrparkmanagement GmbH, Munich 4 – – 100

Alphabet International GmbH, Munich 4,5,6 – – 100

Bavaria Wirtschaftsagentur GmbH, Munich 3,5,6 – – 100

BMW Fahrzeugtechnik GmbH, Eisenach 3,5,6 – – 100

BMW Hams Hall Motoren GmbH, Munich 4,5,6 – – 100

BMW High Power Charging Beteiligungs GmbH, Munich 4,6 – – 100

BMW M GmbH Gesellschaft für individuelle Automobile, Munich 3,5,6 – – 100

BMW Vermögensverwaltungs GmbH, Munich – – 100

Bürohaus Petuelring GmbH, Munich – – 100

LARGUS Grundstücks-Verwaltungsgesellschaft mbH, Munich – – 100

Rolls-Royce Motor Cars GmbH, Munich 4,5,6 – – 100

BAVARIA-LLOYD Reisebüro GmbH, Munich – – 51

Financial Statements of BMW AG26 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

FOREIGN2

Europe

BMW Holding B. V., Den Haag 17,535 2,049 100

BMW International Holding B. V., Den Haag 4,055 2,185 100

BMW Österreich Holding GmbH, Steyr 3,286 1,167 100

BMW Financial Services (GB) Ltd., Farnborough 1,116 488 100

BMW Motoren GmbH, Steyr 937 192 100

BMW (Schweiz) AG, Dielsdorf 879 8 100

BMW Hellas Trade of Cars A. E., Kifissia 806 5 100

BMW i Ventures SCS SICAV-RAIF, Senningerberg 515 387 100

Alphabet España Fleet Management S. A.U., Madrid 417 19 100

BMW (UK) Holdings Ltd., Farnborough 316 779 100

BMW Russland Trading OOO, Moskau 315 313 100

BMW Finance N. V., Den Haag 251 97 100

BMW Finance S. N.C., Guyancourt 251 46 100

BMW Austria Bank GmbH, Salzburg 203 8 100

BMW (UK) Ltd., Farnborough 198 82 100

ALPHABET (GB) Ltd., Farnborough 181 189 100

Rolls-Royce Motor Cars Ltd., Farnborough 132 92 100

BMW Finanzdienstleistungen (Schweiz) AG, Dielsdorf 118 19 100

Alphabet Austria Fuhrparkmanagement GmbH, Salzburg – – 100

Alphabet Belgium Long Term Rental NV, Aartselaar – – 100

Alphabet France Fleet Management S. A.S., Saint-Quentin-en-Yvelines – – 100

Alphabet Fuhrparkmanagement (Schweiz) AG, Dielsdorf – – 100

Alphabet Italia S. p.A., Trento – – 100

Financial Statements of BMW AG27 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

Alphabet Luxembourg S. A., Leudelange – – 100

Alphabet Nederland B. V., Breda – – 100

Alphabet Polska Fleet Management Sp. z o. o., Warsaw – – 100

Bavaria Reinsurance Malta Ltd., Floriana – – 100

BiV Carry I SCS, Senningerberg – – 100

BiV Carry II SCS, Senningerberg 9 – – 100

BLMC Ltd., Farnborough – – 100

BMW (UK) Capital plc, Farnborough – – 100

BMW (UK) Investments Ltd., Farnborough – – 100

BMW (UK) Manufacturing Ltd., Farnborough – – 100

BMW Austria GmbH, Salzburg – – 100

BMW Austria Leasing GmbH, Salzburg – – 100

BMW Automotive (Ireland) Ltd., Dublin – – 100

BMW Bank OOO, Moskau – – 100

BMW Belgium Luxembourg S. A. / N. V., Bornem – – 100

BMW Bulgaria EOOD, Sofia – – 100

BMW Central Medical Trustees Ltd., Farnborough – – 100

BMW Czech Republic s. r.o., Prague – – 100

BMW Danmark A / S, Copenhagen – – 100

BMW Distribution S. A.S., Vélizy-Villacoublay – – 100

BMW España Finance S. L., Madrid – – 100

BMW Financial Services (Ireland) DAC, Dublin – – 100

BMW Financial Services B. V., The Hague – – 100

BMW Financial Services Belgium S. A. / N. V., Bornem – – 100

BMW Financial Services Denmark A / S, Copenhagen – – 100

BMW Financial Services Polska Sp. z o. o., Warsaw – – 100

Financial Statements of BMW AG28 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

BMW Financial Services Scandinavia AB, Sollentuna – – 100

BMW France S. A., Montigny-le-Bretonneux – – 100

BMW Hungary Kft., Vecsés 9 – – 100

BMW Iberica S. A., Madrid – – 100

BMW International Investment B. V., The Hague – – 100

BMW Italia Retail S. r.l., Rome – – 100

BMW Italia S. p.A., San Donato Milanese – – 100

BMW Madrid S. L., Madrid – – 100

BMW Malta Ltd., Floriana – – 100

BMW Nederland B. V., The Hague – – 100

BMW Norge AS, Fornebu – – 100

BMW Northern Europe AB, Stockholm – – 100

BMW Portugal Lda., Porto Salvo – – 100

BMW Renting (Portugal) Lda., Porto Salvo – – 100

BMW Romania S. R.L., Bucharest – – 100

BMW Services Ltd., Farnborough – – 100

BMW Slovenia distribucija motornih vozil d. o.o., Ljubljana – – 100

BMW Slovenská republika s. r.o., Bratislava – – 100

BMW Vertriebs GmbH, Salzburg – – 100

Oy BMW Suomi AB, Helsinki – – 100

Park Lane Ltd., Farnborough – – 100

Riley Motors Ltd., Farnborough – – 100

Swindon Pressings Ltd., Farnborough – – 100

The British Motor Corporation Ltd., Birmingham – – 100

Triumph Motor Company Ltd., Farnborough – – 100

Bavarian Sky Europe S. A. Compartment A, Luxemburg 11 – – 0

Financial Statements of BMW AG29 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

Bavarian Sky FTC, Compartment French Auto Leases 4, Paris 11 – – 0

Bavarian Sky S. A., Compartment A, Luxembourg 11 – – 0

Bavarian Sky S. A., Compartment B , Luxembourg 11 – – 0

Bavarian Sky S. A., Compartment German Auto Leases 5, Luxembourg 11 – – 0

Bavarian Sky S. A., Compartment German Auto Leases 6, Luxembourg 11 – – 0

Bavarian Sky S. A., Compartment German Auto Loans 10, Luxembourg 11 – – 0

Bavarian Sky S. A., Compartment German Auto Loans 9, Luxembourg 11 – – 0

Bavarian Sky UK 3 plc, London 11 – – 0

Bavarian Sky UK 4 plc, London 11 – – 0

Bavarian Sky UK A Ltd., London 11 – – 0

Bavarian Sky UK B Ltd., London 11 – – 0

Bavarian Sky UK C Ltd., London 11 – – 0

Bavarian Sky UK D Ltd., London 11 – – 0

The Americas10

BMW Manufacturing Co. LLC, Wilmington, Delaware 2,042 389 100

BMW Bank of North America Inc., Salt Lake City, Utah 1,473 202 100

BMW of North America LLC, Wilmington, Delaware 948 549 100

Financial Services Vehicle Trust, Wilmington, Delaware 698 405 100

BMW Canada Inc., Richmond Hill, Ontario 663 324 100

BMW (US) Holding Corp., Wilmington, Delaware – – 100

BMW Acquisitions Ltda., São Paulo – – 100

BMW Auto Leasing LLC, Wilmington, Delaware – – 100

BMW Consolidation Services Co. LLC, Wilmington, Delaware – – 100

BMW de Argentina S. A., Buenos Aires – – 100

BMW de Mexico S. A. de C. V., Mexico City – – 100

Financial Statements of BMW AG30 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

BMW do Brasil Ltda., Araquari – – 100

BMW Extended Service Corporation, Wilmington, Delaware – – 100

BMW Facility Partners LLC, Wilmington, Delaware – – 100

BMW Financeira S. A. Credito, Financiamento e Investimento, São Paulo – – 100

BMW Financial Services de Mexico S. A. de C. V. SOFOM, Mexico City – – 100

BMW Financial Services NA LLC, Wilmington, Delaware – – 100

BMW FS Funding Corporation, Wilmington, Delaware – – 100

BMW FS Receivables Corporation, Wilmington, Delaware – – 100

BMW FS Securities LLC, Wilmington, Delaware – – 100

BMW Insurance Agency Inc., Wilmington, Delaware – – 100

BMW Leasing do Brasil S. A., São Paulo – – 100

BMW Manufacturing Indústria de Motos da Amazônia Ltda., Manaus – – 100

BMW Manufacturing LP, Woodcliff Lake, New Jersey – – 100

BMW of Manhattan Inc., Wilmington, Delaware – – 100

BMW Receivables 1 Inc., Richmond Hill, Ontario – – 100

BMW Receivables 2 Inc., Richmond Hill, Ontario – – 100

BMW Receivables Ltd. Partnership, Richmond Hill, Ontario – – 100

BMW SLP, S. A. de C. V., Villa de Reyes – – 100

BMW US Capital LLC, Wilmington, Delaware – – 100

Rolls-Royce Motor Cars NA LLC, Wilmington, Delaware – – 100

SB Acquisitions LLC, Wilmington, Delaware – – 100

BMW 2020- A Lease Conduit, Wilmington, Delaware 11 – – 0

BMW 2021- A Lease Conduit, Wilmington, Delaware 11 – – 0

BMW Canada 2018-A, Richmond Hill, Ontario 11 – – 0

BMW Canada Auto Trust 2019-1, Richmond Hill, Ontario 11 – – 0

BMW Canada Auto Trust 2020-1, Richmond Hill, Ontario 11 – – 0

Financial Statements of BMW AG31 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

BMW Canada Auto Trust 2021-1, Richmond Hill, Ontario 11 – – 0

BMW Vehicle Lease Trust 2021- 2, Wilmington, Delaware 11 – – 0

BMW Vehicle Lease Trust 2021-1, Wilmington, Delaware 11 – – 0

BMW Vehicle Owner Trust 2019-A, Wilmington, Delaware 11 – – 0

BMW Vehicle Owner Trust 2020-A, Wilmington, Delaware 11 – – 0

Africa

BMW Financial Services (South Africa) (Pty) Ltd., Midrand 104 13 100

BMW (South Africa) (Pty) Ltd., Pretoria – – 100

SuperDrive Investments (RF) Ltd., Cape Town11 – – 0

Asia

BMW Automotive Finance (China) Co. Ltd., Beijing 2,561 306 58

BMW China Investment Ltd., Beijing9 559 559 100

BMW Japan Finance Corp., Tokyo 527 66 100

BMW Financial Services Korea Co. Ltd., Seoul 279 71 100

BMW Korea Co. Ltd., Seoul 269 119 100

Herald International Financial Leasing Co. Ltd., Tianjin 210 51 58

BMW Japan Corp., Tokio 128 100 100

BMW Manufacturing (Thailand) Co. Ltd., Rayong 116 94 100

BMW (Thailand) Co. Ltd., Bangkok – – 100

BMW Asia Pacific Capital Pte Ltd., Singapur – – 100

BMW Asia Pte. Ltd., Singapur – – 100

BMW Asia Technology Centre Sdn Bhd, Kuala Lumpur – – 100

BMW China Automotive Trading Ltd., Beijing – – 100

BMW China Services Ltd., Beijing – – 100

BMW Credit (Malaysia) Sdn Bhd, Kuala Lumpur – – 100

Financial Statements of BMW AG32 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

BMW Holding Malaysia Sdn Bhd, Kuala Lumpur – – 100

BMW India Financial Services Private Ltd., Gurgaon – – 100

BMW India Private Ltd., Gurgaon – – 100

BMW Lease (Malaysia) Sdn Bhd, Kuala Lumpur – – 100

BMW Leasing (Thailand) Co. Ltd., Bangkok – – 100

BMW Tokyo Corp., Tokyo – – 100

PT BMW Indonesia, Jakarta – – 100

BMW Malaysia Sdn Bhd, Kuala Lumpur – – 51

2017-3 ABL, Tokyo 11 – – 0

2018-1 ABL, Tokyo 11 – – 0

2018-2 ABL,Tokyo 11 – – 0

2018-3 ABL, Tokyo 11 – – 0

2019-1 ABL, Tokyo 11 – – 0

2019-2 ABL, Tokyo 11 – – 0

2019-3 ABL, Tokyo 11 – – 0

2020-1 ABL, Tokyo 11 – – 0

2021-1 ABL, Tokyo 11 – – 0

2021-2 ABL, Tokyo 11 – – 0

Bavarian Sky China 2019-2, Beijing 11 – – 0

Bavarian Sky China 2019-3, Beijing 11 – – 0

Bavarian Sky China 2020-1, Beijing 11 – – 0

Bavarian Sky China 2020-2, Beijing 11 – – 0

Bavarian Sky China 2021-1, Beijing 11 – – 0

Bavarian Sky China 2021-2, Beijing 11 – – 0

Bavarian Sky China 2021-3, Beijing 11 – – 0

Bavarian Sky China Leasing 2020-1, Tianjin 11 – – 0

Financial Statements of BMW AG33 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

Bavarian Sky China Leasing 2021-1, Tianjin 11 – – 0

Bavarian Sky Korea 2021-1, Seoul 11 – – 0

Oceania

BMW Australia Finance Ltd., Mulgrave – – 100

BMW Australia Ltd., Melbourne – – 100

BMW Financial Services New Zealand Ltd., Auckland – – 100

BMW Melbourne Pty. Ltd., Melbourne – – 100

BMW New Zealand Ltd., Auckland – – 100

BMW Sydney Pty. Ltd., Sydney – – 100

Bavarian Sky Australia Trust A, Mulgrave 11 – – 0

BMW Australia Trust 2011-2, Mulgrave 11 – – 0

Financial Statements of BMW AG34 List of Investments at 31 December 2021

Other InformationNotes

B M W A G ' S N O N - C O N S O L I D AT E D C O M P A N I E S AT 3 1 D E C E M B E R 2 0 2 1

Companies Equity in € million Profit / loss in € million Capital investment in %

DOMESTIC 7

Alphabet Fleetservices GmbH, Munich 4 – – 100

Automag GmbH, Munich – – 100

BMW Car IT GmbH, Munich4 – – 100

BMW i Ventures GmbH, Munich – – 100

IDEALworks GmbH, Munich – – 100

FOREIGN 7

Europe

Alphabet Insurance Services Polska Sp. z o. o., Warsaw – – 100

BMW (GB) Ltd., Farnborough – – 100

BMW (UK) Pensions Services Ltd., Hams Hall – – 100

BMW Car Club Ltd., Farnborough – – 100

BMW China Capital B. V., The Hague – – 100

BMW Drivers Club Ltd., Farnborough – – 100

BMW Financial Services Czech Republic s. r.o., Prague – – 100

BMW Financial Services Slovakia s. r.o., Bratislava – – 100

BMW Group Benefit Trust Ltd., Farnborough – – 100

BMW Manufacturing Hungary Kft., Debrecen – – 100

BMW Manufacturing Russland OOO, Kaliningrad – – 100

BMW Mobility Development Center s. r.o., Prague – – 100

BMW Motorsport Ltd., Farnborough – – 100

BMW Poland sp. z o. o., Warsaw – – 100

BMW Russland Automotive OOO, Kaliningrad – – 100

John Cooper Garages Ltd., Farnborough – – 100

John Cooper Works Ltd., Farnborough – – 100

BMW Leasing, Moscow – – 100

Financial Statements of BMW AG35 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

The Americas

217-07 Northern Boulevard Corporation, Wilmington, Delaware – – 100

BMW Experience Centre Inc., Richmond Hill, Ontario – – 100

BMW i Ventures Inc., Wilmington, Delaware – – 100

BMW i Ventures LLC, Wilmington, Delaware – – 100

BMW Mobility Services LLC, Wilmington, Delaware – – 100

BMW Operations Corp., Wilmington, Delaware – – 100

BMW Shared Services LLC, Wilmington, Delaware – – 100

BMW Technology Corp., Wilmington, Delaware – – 100

Designworks / USA Inc., Newbury Park, California – – 100

MINI Business Innovation LLC, Wilmington, Delaware – – 100

Toluca Planta de Automoviles S. A. de C. V., Mexico City – – 100

Urban X Accelerator SPV LLC, Wilmington, Delaware – – 100

Africa

BMW Automobile Distributors (Pty) Ltd., Midrand – – 100

BPF Midrand Property Holdings (Pty) Ltd., Midrand – – 100

Multisource Properties (Pty) Ltd., Midrand – – 100

Asia

BMW Finance (United Arab Emirates) Ltd., Dubai – – 100

BMW Financial Services Singapore Pte Ltd., Singapur – – 100

BMW Hong Kong Services Ltd., Hong Kong – – 100

BMW India Foundation, Gurgaon – – 100

BMW India Leasing Private Ltd., Gurgaon – – 100

BMW Insurance Services Korea Co. Ltd., Seoul – – 100

BMW Middle East Retail Competency Centre DWC-LLC, Dubai – – 100

BMW Mobility Services Ltd., Sichuan Tianfu New Area (Chengdu Section) – – 100

BMW Parts Manufacturing (Thailand) Co., Ltd., Rayong Province – – 100

BMW Technology Office Israel Ltd., Tel Aviv – – 100

Herald Hezhong (Beijing) Automotive Trading Co. Ltd., Beijing – – 100

Financial Statements of BMW AG36 List of Investments at 31 December 2021

Other InformationNotes

Companies Equity in € million Profit / loss in € million Capital investment in %

THEPSATRI Co. Ltd., Bangkok – – 100

BMW Philippines Corp., Manila – – 70

BMW Financial Services Hong Kong Ltd., Hong Kong – – 51

Financial Statements of BMW AG37 List of Investments at 31 December 2021

Other InformationNotes

B M W A G ' S A S S O C I AT E D C O M P A N I E S , J O I N T V E N T U R E S A N D J O I N T O P E R AT I O N S AT 3 1 D E C E M B E R 2 0 2 1

Companies Equity in € million Profit / loss in € million Capital investment in %

Joint ventures - equity accounted

DOMESTIC

YOUR NOW Holding GmbH, Munich 8 897 – 337 50

IONITY Holding GmbH & Co. KG, Munich 8 209 – 35 20

FOREIGN

BMW Brilliance Automotive Ltd., Shenyang 8 11,176 3,596 50

Associated companies - equity accounted

FOREIGN

THERE Holding B. V., Amsterdam 8 1,090 – 108 30

Joint operations - proportionately consolidated entities

FOREIGN

Spotlight Automotive Ltd., Zhangjiagang 8 – – 50

Not equity accounted or proportionately consolidated entities

DOMESTIC

Encory GmbH, Unterschleißheim – – 50

The Retail Performance Company GmbH, Munich – – 50

PDB – Partnership for Dummy Technology and Biomechanics GbR, Gaimersheim – – 20

FOREIGN

Bavarian & Co Co. Ltd., Incheon – – 20

BMW Albatha Finance PSC, Dubai – – 40

BMW Albatha Leasing LLC, Dubai – – 40

BMW ArcherMind Information Technology Co. Ltd., Nanjing – – 50

BMW AVTOTOR Holding B. V., Amsterdam – – 50

Critical TechWorks S. A., Porto – – 50

Financial Statements of BMW AG38 List of Investments at 31 December 2021

Other InformationNotes

L I S T O F I N V E S T M E N T S AT 3 1 D E C E M B E R 2 0 2 1

Companies Equity in € million Profit / loss in € million Capital investment in %

DOMESTIC 7

Deutsches Forschungszentrum für Künstliche Intelligenz GmbH, Kaiserslautern – – 5

GSB Sonderabfall-Entsorgung Bayern GmbH, Baar-Ebenhausen – – 3

Hubject GmbH, Berlin – – 16

IVM Industrie-Verband Motorrad GmbH & Co. Dienstleistungs KG, Essen – – 22

Joblinge gemeinnützige AG Berlin, Berlin – – 10

Joblinge gemeinnützige AG Leipzig, Leipzig – – 17

Joblinge gemeinnützige AG Munich, Munich – – 6

Mobimeo GmbH, Berlin – – 10

Racer Benchmark Group GmbH, Landsberg am Lech – – 9

SGL Carbon SE, Wiesbaden – – 18

FOREIGN

Northvolt AB, Stockholm – – 3

Solid Power, Inc., Wilmington, Delaware – – 6

1 The amounts shown for the German subsidiaries correspond to the annual financial statements drawn up in accordance with German accounting requirements (HGB). 2 The amounts shown for the foreign subsidiaries correspond to the annual financial statements drawn up in accordance with uniform IFRS rules. Equity and earnings not denominated in euro are translated into

euro using the closing exchange rate at the balance sheet date. 3 Profit and Loss Transfer Agreement with BMW AG. 4 Profit and Loss Transfer Agreement with a subsidiary of BMW AG. 5 Exemption from drawing up a management report applied in accordance with § 264 (3) and § 264 b HGB. 6 Exemption from publication of financial statements applied in accordance with § 264 (3) and § 264 b HGB. 7 These entities are neither consolidated nor accounted for using the equity method due to their overall immateriality for the Group Financial Statements. 8 The amounts shown for entities accounted for using the equity method and for proportionately consolidated entities correspond to the annual financial statements drawn up in accordance with uniform IFRS rules.

Equity not denominated in euro is translated into euro using the closing exchange rate at the balance sheet date, earnings are translated using the average rate. 9 First-time consolidation. 10 Deconsolidation in the financial year 2021: BMW Verwaltungs GmbH (Merger), BMW Leasing de Mexico S. A. de C. V. (Merger). 11 Control on basis of economic dependence.

Financial Statements of BMW AG39 List of Investments at 31 December 2021

Other InformationNotes

Current Members of the Board of Management OLIVER ZIPSE (*1964) Chairman

ILKA HORSTMEIER (*1969) Human Resources and Social Affairs, Labour Director

DR.-ING. MILAN NEDELJKOVIĆ (*1969) Production

Mandates — BMW (South Africa) (Pty) Ltd. *, **, Chairman — BMW Motoren GmbH *, **, Chairman

PIETER NOTA (*1964) Customer, Brands, Sales

Mandates — Rolls-Royce Motor Cars Limited *, **, Chairman

Outgoing Members of the Board of Management DR.-ING. ANDREAS WENDT (*1958) Purchasing and Supplier Network (until 31 December 2021)

DR. NICOLAS PETER (*1962) Finance

Mandates — BMW Brilliance Automotive Ltd. *, **,

Chairman (until 10 February 2022 Deputy Chairman)

DR.-ING. JOACHIM POST (*1971) Purchasing and Supplier Network (since 1 January 2022)

FRANK WEBER (*1966) Development

General Counsel: DR. ANDREAS LIEPE* Not listed on the stock exchange

** Group mandate – –– Membership of other statutory supervisory boards – –– Membership of equivalent national or foreign boards of business enterprises

M E M B E R S O F T H E B O A R D O F M A N A G E M E N T

Financial Statements of BMW AG40 Members of the Board of Management

Other InformationNotes

C U R R E N T M E M B E R S O F T H E S U P E R V I S O R Y B O A R D

DR.-ING. DR.-ING. E. H. NORBERT REITHOFER (*1956) Member since 2015, elected until the AGM 2025 Chairman of the Supervisory Board Former Chairman of the Board of Management of BMW AG

Mandates — Siemens Aktiengesellschaft — Henkel Management AG * — Henkel AG & Co. KGaA (Shareholders’ Committee)

MANFRED SCHOCH  1 (*1955) Member since 1988, elected until the AGM 2024 Deputy Chairman of the Supervisory Board Chairman of the European and General Works Council Industrial Engineer

STEFAN QUANDT (*1966) Member since 1997, elected until the AGM 2024 Deputy Chairman of the Supervisory Board Entrepreneur

Mandates — DELTON Health AG *, **, Chairman — DELTON Technology SE *, **, Chairman — Frankfurter Allgemeine Zeitung GmbH *

— AQTON SE *, **, Chairman — Entrust Corp. *, **

— SOLARWATT GmbH *, **

** Note: Mr Quandt is the sole shareholder of DELTON Health AG, DELTON Technology SE and AQTON SE. Mr Quandt holds majority interests in Entrust Corp. and SOLARWATT GmbH

STEFAN SCHMID  1 (*1965) Member since 2007, elected until the AGM 2024 Deputy Chairman of the Supervisory Board Chairman of the Works Council, Dingolfing

DR. RER. POL. KURT BOCK (*1958) Member since 2018, elected until the AGM 2023 Deputy Chairman of the Supervisory Board (since 12 May 2021) Chairman of the Supervisory Board of BASF SE

Mandates — BASF SE, Chairman — FUCHS PETROLUB SE, Chairman

CHRISTIANE BENNER  2 (*1968) Member since 2014, elected until the AGM 2024 Second Chairwoman of IG Metall

Mandates — Continental AG, Deputy Chairwoman

DR. MARC BITZER (*1965) Member since 12 May 2021, elected until the AGM 2025 Chairman and Chief Executive Officer of Whirlpool Corporation

Mandates — Whirlpool Corp. **, Chairman — Simex Trading AG *

1 Company employees 2 Union representatives 3 Member of senior management * Not listed on the stock exchange ** Group mandate – –– Membership of other statutory supervisory boards – –– Membership in equivalent national or foreign boards of business enterprises

Financial Statements of BMW AG41 Current Members of the Super visory Board

Other InformationNotes

BERNHARD EBNER 1 (*1978) Member since 8 October 2021, appointed until the AGM 2024 Chairman of the Works Council, Landshut

RACHEL EMPEY (*1976) Member since 12 May 2021, elected until the AGM 2024 Member of the Management Board of Fresenius Management SE (finance division)

Mandates — Fresenius Kabi AG *, **, Deputy Chairman — Fresenius Medical Care Management AG *, **

DR.-ING. HEINRICH HIESINGER (*1960) Member since 2017, elected until the AGM 2022 Chairman of the Supervisory Board of ZF Friedrichshafen AG

Mandates — Deutsche Post AG — Fresenius Management SE * — ZF Friedrichshafen AG *

(Chairman since 1 January 2022)

JOHANN HORN 2 (*1958) Member since 14 May 2021, appointed until the AGM 2024 Head of Bavaria Region, IG Metall

Mandates — EDAG Engineering GmbH * (until 28 May 2021) — Siemens Healthcare GmbH *

SUSANNE KLATTEN (*1962) Member since 1997, elected until the AGM 2024 Entrepreneur

Mandates — ALTANA AG *, Deputy Chairwoman — SGL Carbon SE, Chairwoman — SprinD GmbH * — UnternehmerTUM GmbH *, Chairwoman

JENS KÖHLER 1 (*1964) Member since 3 August 2021, appointed until the AGM 2024 Chairman of the Works Council, Leipzig

DR. DOMINIQUE MOHABEER 1 (*1963) Member since 2012, elected until the AGM 2024 Member of the Works Council, Munich

ANKE SCHÄFERKORDT (*1962) Member since 2020, elected until the AGM 2025 Member of supervisory boards

Mandates — BASF SE (until 29 April 2022) — Serviceplan Group Management SE * — Wayfair Inc.

PROF. DR. DR. H. C. CHRISTOPH M. SCHMIDT (*1962) Member since 12 May 2021, elected until the AGM 2025 President of the RWI – Leibniz-Institut für Wirtschafts- forschung Essen University Professor

Mandates — Basalt-Actien-Gesellschaft * — Thyssen Vermögensverwaltung GmbH *

DR. VISHAL SIKKA (*1967) Member since 2019, elected until the AGM 2024 CEO & Founder, Vianai Systems, Inc.

Mandates — Oracle Corporation

1 Company employees 2 Union representatives 3 Member of senior management * Not listed on the stock exchange ** Group mandate – –– Membership of other statutory supervisory boards – –– Membership in equivalent national or foreign boards of business enterprises

Financial Statements of BMW AG42 Current Members of the Super visory Board

Other InformationNotes

1 Company employees 2 Union representatives 3 Member of senior management * Not listed on the stock exchange ** Group mandate – –– Membership of other statutory supervisory boards – –– Membership in equivalent national or foreign boards of business enterprises

SIBYLLE WANKEL 2 (*1964) Member since 4 January 2022, appointed until the AGM 2024 1. Authorised representative and managing director of IG Metall`s Munich Office

Mandates — KraussMaffei Group GmbH *, Deputy Chairwoman

(since 31 May 2021)

DR. THOMAS WITTIG 3 (*1960) Member since 2019, elected until the AGM 2024 Senior Vice President Financial Services

Mandates — BMW Bank GmbH *, **, Chairman — BMW Automotive Finance (China) Co., Ltd. *, **,

Chairman

WERNER ZIERER 1 (*1959) Member since 2001, elected until the AGM 2024 Member of the Works Council, Regensburg (Chairman until 31 October 2021)

Financial Statements of BMW AG43 Current Members of the Super visory Board

Other InformationNotes

SIMONE MENNE (*1960) Member from 2015 to 12 May 2021 Member of supervisory boards

Mandates — Deutsche Post AG — Henkel AG & Co. KGaA — Johnson Controls International plc — Russell Reynolds Associates Inc. *

BRIGITTE RÖDIG 1 (*1963) Member from 2013 to 1 October 2021 Member of the Works Council, Dingolfing

PROF. DR. DR. H. C. REINHARD HÜTTL (*1957) Member from 2008 to 12 May 2021 Scientific Director and Managing Director Shareholder of EUREF Energy Innovation GmbH

HORST LISCHKA 2 (*1963) Member from 2009 to 12 May 2021 Former Secretary to the Executive Board of IG Metall

Mandates — KraussMaffei Group GmbH *,

Deputy Chairman (until 10 May 2021) — MAN Truck & Bus SE *

WILLIBALD LÖW 1 (*1956) Member from 1999 to 16 July 2021 Member of the Works Council, Landshut (Chairman until 13 July 2021)

O U T G O I N G M E M B E R S O F T H E S U P E R V I S O R Y B O A R D

DR. JUR. KARL-LUDWIG KLEY (*1951) Member from 2008 to 12 May 2021 Deputy Chairman of the Supervisory Board (until 12 May 2021) Chairman of the Supervisory Board of E.ON SE and Deutsche Lufthansa Aktiengesellschaft

Mandates — E.ON SE, Chairman — Deutsche Lufthansa Aktiengesellschaft, Chairman

VERENA ZU DOHNA 2 (*1975) Member from 2019 to 31 December 2021 Head of Industrial Relations and Co-determination Policy with the Executive Board of IG Metall / (In-house) counsel

Mandates — ABB AG

1 Company employees 2 Union representatives 3 Member of senior management * Not listed on the stock exchange ** Group mandate – –– Membership of other statutory supervisory boards – –– Membership in equivalent national or foreign boards of business enterprises

Financial Statements of BMW AG44 Outgoing Members of the Supervisory Board

Other InformationNotes

Munich, 8 March 2022

Bayerische Motoren Werke Aktiengesellschaft

The Board of the Management

Oliver Zipse

Ilka Horstmeier Dr.-Ing. Milan Nedeljković

Pieter Nota Dr. Nicolas Peter

Dr.-Ing. Joachim Post Frank Weber

Financial Statements of BMW AG45 Other InformationNotes

The following copy of the auditor’s report also includes a “Report on the audit of the electronic renderings of the finan- cial statements and the management report prepared for disclosure purposes in accordance with § 317 Abs. 3b HGB” (“Separate report on ESEF conformity”). The subject matter (ESEF documents) to which the Separate report on ESEF conformity relates is not attached. The audited ESEF docu- ments can be inspected in or retrieved from the Federal Ga- zette.

I N D E P E N D E N T A U D I T O R ’ S R E P O R T

To Bayerische Motoren Werke Aktien gesellschaft, Munich Report on the Audit of the Annual Financial Statements and of the Management Report

Audit Opinions We have audited the annual financial statements of Bayer- ische Motoren Werke Aktiengesellschaft, Munich, which comprise the balance sheet as at 31 December 2021, and the Income Statement for the financial year from 1  January to 31 December 2021 and notes to the financial statements, in- cluding the presentation of the recognition and measure- ment policies. In addition, we have audited the management report of Bayerische Motoren Werke Aktiengesellschaft, which is combined with the group management report, for the financial year from 1 January to December 31, 2021. In ac- cordance with the German legal requirements, we have not audited the content of those parts of the management report listed in the “Other Information” section of our auditor’s re- port.

In our opinion, on the basis of the knowledge obtained in the audit,

— the accompanying annual financial statements comply, in all material respects, with the requirements of German commercial law and give a true and fair view of the as- sets, liabilities and financial position of the Company as at 31 December 2021 and of its financial performance for the financial year from 1 January to 31 December 2021 in compliance with German Legally Required Accounting Principles, and

— the accompanying management report as a whole pro- vides an appropriate view of the Company’s position. In all material respects, this management report is consistent with the annual financial statements, complies with Ger- man legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the management report does not cover the content of those parts of the management report listed in the “Other Information” section of our auditor’s report.

Pursuant to § [Article] 322 Abs. [paragraph] 3 Satz [sentence] 1 HGB [Handelsgesetzbuch: German Commercial Code], we de- clare that our audit has not led to any reservations relating to the legal compliance of the annual financial statements and of the management report.

Basis for the Audit Opinions We conducted our audit of the annual financial statements and of the management report in accordance with §  317 HGB and the EU Audit Regulation (No. 537 / 2014, referred to subsequently as “EU Audit Regulation”) in compliance with German Generally Accepted Standards for Financial State- ment Audits promulgated by the Institut der Wirtschafts- prüfer [Institute of Public Auditors in Germany] (IDW). Our responsibilities under those requirements and principles are further described in the “Auditor’s Responsibilities for the Audit of the Annual Financial Statements and of the Man- agement Report” section of our auditor’s report. We are in- dependent of the Company in accordance with the require- ments of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these re- quirements. In addition, in accordance with Article  10  (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evi- dence we have obtained is sufficient and appropriate to pro- vide a basis for our audit opinions on the annual financial statements and on the management report.

Key Audit Matters in the Audit of the Annual Financial Statements Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the annu- al financial statements for the financial year from January 1 to December 31, 2021. These matters were addressed in the context of our audit of the annual financial statements as a

Financial Statements of BMW AG46 Other InformationNotes

Independent Auditor’s Report

whole, and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.

In our view, the matters of most significance in our audit were as follows:

1 Valuation of residual value risks

2 Valuation of provisions for statutory and non-statutory warranty obligations and product guarantees

Our presentation of these key audit matters has been struc- tured in each case as follows:

1 Matter and issue

2 Audit approach and findings

3 Reference to further information

Hereinafter we present the key audit matters:

1 Valuation of residual value risks

1 BMW AG carries realization risks for leased products which are recognized by the affiliated companies of the segment “Financial Services” and partially assumes the residual value risks arising from this. Residual value risks are determined by comparing the contractually agreed residual value on a contract-by-contract basis with the expected residual value at the end of the customer con- tract. The other provisions recognized in the annual financial statements of BMW AG include provisions for residual value risk amounting to EUR 1,547 million (approximately 2.4 % of total assets) as at December 31, 2021.

A key estimated value for the measurement of residual value risks is the expected residual value at the end of the

lease term. For the residual value forecasts BMW AG uses internally available data on historical empirical values, current market data and market estimates as well as fore- casts by external market research institutes. The estima- tion of future proceeds from sales is subject to judgment due to the large number of assumptions to be made by the executive directors and the amount of data included in the determination. Against this background and due to the resulting significant uncertainties with regard to esti- mates in the context of measuring the residual values of the leased products, this matter was of particular signifi- cance in the context of our audit.

2 As part of our audit we obtained an understanding of the development of the residual values of leased products, the underlying residual value risks as well as the business processes for the identification, management, monitor- ing and measurement of residual value risks, among oth- er things by inquiries and inspection of documents relat- ed to the internal calculation methods. Furthermore, we evaluated the appropriateness and effectiveness of the internal control system, particularly regarding to the de- termination of expected residual values. This included the evaluation of the propriety of the relevant IT-systems as well as the implemented interfaces therein by our IT specialists. In addition, we evaluated the appropriate- ness of the forecasting methods, the model assumptions as well as the parameters used for the measurement of the residual values based on the validations carried out by BMW AG. For this purpose, we inquired with BMW AG’s experts responsible for the management and monitoring of residual value risks and inspected the internal analysis on residual value developments and residual value fore- casts as well as the validation results. We examined the mathematical correctness of the forecast values using the key calculation steps.

Based on our audit procedures, we were able to satisfy ourselves that the methods and processes for determin-

ing the expected residual values of leased products un- derlying the valuation are appropriate and the assump- tions and parameters included in the forecast model for the residual value are appropriate as a whole.

3 The Company’s disclosures on the applied “Accounting policies, assumptions, judgments and estimations” are contained in the notes to the financial statements under “Accounting policies” and “Notes to the balance sheet”.

2 Valuation of provisions for statutory and non-statu- tory warranty obligations and product guarantees

1 Provisions for statutory and non-statutory warranty obli- gations as well as product guarantees are included in the annual financial statements of BMW AG as a material component in “other provisions”. The provisions for stat- utory and non-statutory warranty obligations and prod- uct guarantees amounted to EUR 2,876 million (approxi- mately 4.4 % of total assets) as at December 31, 2021. BMW AG is responsible for the legally required warranty and product guarantees in the respective sales market. In order to estimate the liabilities arising from statutory and non-statutory warranty obligations as well as product guarantees for vehicles sold, information on the type and volume of damages arising and on remedial measures is recorded and analyzed at vehicle model level. The ex- pected amount of obligations is extrapolated from costs of the past and recognized as a provision in correspond- ing amount. For specific or anticipated individual circum- stances, for example recalls, additional provisions are recognized.

Financial Statements of BMW AG47 Other InformationNotes

Independent Auditor’s Report

The determination of provisions is associated with una- voidable estimation uncertainties and is subject to a high risk of change, depending on factors such as notification of detected defects as well as claims made by vehicle owners. Against this background, this matter was of par- ticular significance during our audit.

2 In order to assess the appropriateness of the valuation method used for the determination of the provisions for statutory and non-statutory warranty obligations as well as product guarantees including the assumptions and parameters we primarily obtained an understanding of the process for determining the assumptions and param- eters through discussions with the responsible employ- ees of BMW AG. We also evaluated the appropriateness as well as effectiveness of controls for determining the assumptions and parameters. With the involvement of our IT-specialists, we cheched the IT-systems used re- garding their compliance. We compared the expenses for claims and technical actions with actual costs incurred in order to draw conclusions on the forecast accuracy. Based on a targeted sample of vehicle models, the math- ematical correctness of the valuation model used was examined. We examined and evaluated the assumptions used by BMW AG concerning the extent to which the past values were representative of the expected susceptibility of damage, the expected value of damage per vehicle (comprising parts and labor input) as well as the expected assertion of claims from statutory and non-statutory warranties.

In our view, the method for the valuation of provisions for statutory and non-statutory warranty obligations as well as product guarantees is overall appropriate. Taking into consideration the information available, we believe that, overall, the measurement parameters and assumptions used by the executive directors are appropriate.

3 The Company‘s disclosures on the applied “Accounting policies, assumptions, judgments and estimations” are contained in the notes to the financial statements under “Accounting policies” and “Notes to the balance sheet”.

Other Information The executive directors are responsible for the other infor- mation. The other information comprises the following non-audited parts of the management report:

— the “Corporate Governance” section of the management report

— the disclosures marked with “ … ” of the non-financial statement pursuant to §  289b Abs. 1 HGB and § 315d Abs. 1 HGB

The other information comprises further

— the statement on corporate governance pursuant to § 289f HGB und § 315d HGB

— all remaining parts of the publication “Annual report of BMW AG” – excluding cross-references to external infor- mation – with the exception of the audited annual finan- cial statements, the audited management report and our auditor’s report

Our audit opinions on the annual financial statements and on the management report do not cover the other informa- tion, and consequently we do not express an audit opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information mentioned above and, in so doing, to con- sider whether the other information

— is materially inconsistent with the annual financial state- ments, with the management report disclosures audited in terms of content or with our knowledge obtained in the audit, or

— otherwise appears to be materially misstated.

Responsibilities of the Executive Directors and the Supervisory Board for the Annual Financial Statements and the Management Report The executive directors are responsible for the preparation of the annual financial statements that comply, in all material respects, with the requirements of German commercial law, and that the annual financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Company in compliance with German Legally Required Accounting Principles. In addition, the ex- ecutive directors are responsible for such internal control as they, in accordance with German Legally Required Account- ing Principles, have determined necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the annual financial statements, the executive directors are responsible for assessing the Company’s ability to continue as a going concern. They also have the respon- sibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial re- porting based on the going concern basis of accounting, pro- vided no actual or legal circumstances conflict therewith.

Furthermore, the executive directors are responsible for the preparation of the management report that as a whole pro- vides an appropriate view of the Company’s position and is, in all material respects, consistent with the annual financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are respon- sible for such arrangements and measures (systems) as

Financial Statements of BMW AG48 Other InformationNotes

Independent Auditor’s Report

they have considered necessary to enable the preparation of a management report that is in accordance with the applica- ble German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the management report.

The supervisory board is responsible for overseeing the Com- pany’s financial reporting process for the preparation of the annual financial statements and of the management report.

Auditor’s Responsibilities for the Audit of the Annual Financial Statements and of the Management Report Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the management report as a whole provides an appropriate view of the Company’s position and, in all mate- rial respects, is consistent with the annual financial state- ments and the knowledge obtained in the audit, complies with the German legal requirements and appropriately pre- sents the opportunities and risks of future development, as well as to issue an auditor’s report that includes our audit opinions on the annual financial statements and on the management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaft- sprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are consid- ered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial state- ments and this management report.

We exercise professional judgment and maintain profession- al skepticism throughout the audit. We also:

— Identify and assess the risks of material misstatement of the annual financial statements and of the management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to pro- vide a basis for our audit opinions. The risk of not detect- ing a material misstatement resulting from fraud is high- er than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresenta- tions, or the override of internal controls.

— Obtain an understanding of internal control relevant to the audit of the annual financial statements and of ar- rangements and measures (systems) relevant to the au- dit of the management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of these systems of the Company.

— Evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of es- timates made by the executive directors and related dis- closures.

— Conclude on the appropriateness of the executive direc- tors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a materi- al uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a mate- rial uncertainty exists, we are required to draw attention in the auditor’s report to the related disclosures in the annual financial statements and in the management re- port or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our audi-

tor’s report. However, future events or conditions may cause the Company to cease to be able to continue as a going concern.

— Evaluate the overall presentation, structure and content of the annual financial statements, including the disclo- sures, and whether the annual financial statements pres- ent the underlying transactions and events in a manner that the annual financial statements give a true and fair view of the assets, liabilities, financial position and finan- cial performance of the Company in compliance with Ger- man Legally Required Accounting Principles.

— Evaluate the consistency of the management report with the annual financial statements, its conformity with German law, and the view of the Company’s position it provides.

— Perform audit procedures on the prospective information presented by the executive directors in the management report. On the basis of sufficient appropriate audit evi- dence we evaluate, in particular, the significant assump- tions used by the executive directors as a basis for the prospective information, and evaluate the proper deriva- tion of the prospective information from these assump- tions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that fu- ture events will differ materially from the prospective in- formation.

We communicate with those charged with governance re- garding, among other matters, the planned scope and tim- ing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Financial Statements of BMW AG49 Other InformationNotes

Independent Auditor’s Report

We also provide those charged with governance with a state- ment that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, the related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the annual financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.

Other Legal and Regulatory Requirements

Report on the Assurance on the Electronic Rendering of the Annual Financial Statements and the Management Report Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB

Assurance Opinion We have performed assurance work in accordance with § 317 Abs. 3a HGB to obtain reasonable assurance as to whether the rendering of the annual financial statements and the management report (hereinafter the “ESEF documents”) contained in the electronic file BMW_AG_ JA+LB_ESEF- 2021-12-31.zip and prepared for publication purposes com- plies in all material respects with the requirements of § 328 Abs. 1 HGB for the electronic reporting format (“ESEF for- mat”). In accordance with German legal requirements, this assurance work extends only to the conversion of the infor- mation contained in the annual financial statements and the management report into the ESEF format and therefore re- lates neither to the information contained within these ren- derings nor to any other information contained in the elec- tronic file identified above.

In our opinion, the rendering of the annual financial state- ments and the management report contained in the elec- tronic file identified above and prepared for publication pur- poses complies in all material respects with the requirements of § 328 Abs. 1 HGB for the electronic reporting format. Be- yond this assurance opinion and our audit opinion on the accompanying annual financial statements and the accom- panying management report for the financial year from Jan- uary 1 to December 31, 2021 contained in the “Report on the Audit of the Annual Financial Statements and on the Man- agement Report” above, we do not express any assurance opinion on the information contained within these render- ings or on the other information contained in the electronic file identified above.

Basis for the Assurance Opinion We conducted our assurance work on the rendering of the annual financial statements and the management report contained in the electronic file identified above in accord- ance with § 317 Abs. 3a HGB and the IDW Assurance Stand- ard: Assurance Work on the Electronic Rendering, of Finan- cial Statements and Management Reports, Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB (IDW AsS 410 (10.2021)) and the International Standard on Assurance Engagements 3000 (Revised). Our responsibility in accordance therewith is further described in the “Auditor’s Responsibilities for the Assurance Work on the ESEF Docu- ments” section. Our audit firm applies the IDW Standard on Quality Management 1: Requirements for Quality Manage- ment in the Audit Firm (IDW QS 1).

Responsibilities of the Executive Directors and the Su- pervisory Board for the ESEF Documents The executive directors of the Company are responsible for the preparation of the ESEF documents including the elec- tronic renderings of the annual financial statements and the management report in accordance with § 328 Abs. 1 Satz 4 Nr. [number] 1 HGB.

In addition, the executive directors of the Company are re- sponsible for such internal control as they have considered necessary to enable the preparation of ESEF documents that are free from material non-compliance with the require- ments of § 328 Abs. 1 HGB for the electronic reporting for- mat, whether due to fraud or error.

The supervisory board is responsible for overseeing the pro- cess for preparing the ESEF documents as part of the finan- cial reporting process.

Auditor's Responsibilities for the Assurance Work on the ESEF Documents Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material non-compliance with the requirements of § 328 Abs. 1 HGB, whether due to fraud or error. We exercise professional judg- ment and maintain professional skepticism throughout the assurance work. We also:

— Identify and assess the risks of material non-compliance with the requirements of § 328 Abs. 1 HGB, whether due to fraud or error, design and perform assurance proce- dures responsive to those risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.

— Obtain an understanding of internal control relevant to the assurance work on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.

— Evaluate the technical validity of the ESEF documents, i. e., whether the electronic file containing the ESEF doc- uments meets the requirements of the Delegated Regu- lation (EU) 2019 / 815 in the version in force at the date of

Financial Statements of BMW AG50 Other InformationNotes

Independent Auditor’s Report

the annual financial statements on the technical specifi- cation for this electronic file.

— Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the audited annual financial statements and to the audited manage- ment report.

Further Information pursuant to Article 10 of the EU Audit Regulation We were elected as auditor by the annual general meeting on May 12, 2021. We were engaged by the supervisory board on June 24, 2021. We have been the auditor of the Bayer- ische Motoren Werke Aktiengesellschaft, Munich, without interruption since the financial year 2019.

We declare that the audit opinions expressed in this audi- tor’s report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regu- lation (long-form audit report).

Reference to an other Matter – Use of the Auditor’s Report Our auditor’s report must always be read together with the audited annual financial statements and the audited man- agement report as well as the assured ESEF documents. The annual financial statements and the management re- port converted to the ESEF format – including the versions to be published in the Federal Gazette – are merely electron- ic renderings of the audited annual financial statements and the audited management report and do not take their place. In particular, the “Report on the Assurance on the Electronic Rendering of the Annual Financial Statements and the Man- agement Report Prepared for Publication Purposes in Ac- cordance with § 317 Abs. 3a HGB” and our assurance opin- ion contained therein are to be used solely together with the assured ESEF documents made available in electronic form.

German Public Auditor responsible for the engagement The German Public Auditor responsible for the engagement is Andreas Fell.

Munich, 9 March 2022

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

(sgd. Petra Justenhoven) (sgd. Andreas Fell) Wirtschaftsprüferin Wirtschaftsprüfer (German Public Auditor) (German Public Auditor)

Financial Statements of BMW AG51 Other InformationNotes

Independent Auditor’s Report

I N F O R M A T I O N O T H E R

Notes Other InformationFinancial Statements of BMW AG52

Notes Other InformationFinancial Statements of BMW AG

R E S P O N S I B I L I T Y S TAT E M E N T B Y T H E C O M P A N Y ’ S L E G A L R E P R E S E N TAT I V E S

38. Responsibility Statement by the Legal Representa- tives of the Company pursuant to § 264 (2) sentence 3 and § 289 (1) sentence 5 HGB

“To the best of our knowledge, and in accordance with the applicable reporting principles, the Annual Financial State- ments of Bayerische Motoren Werke Aktiengesellschaft give a true and fair view of the assets, liabilities, financial position and results of operations of the Company in accordance with German accounting prin ciples, and the Management Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal opportunities and risks as- sociated with the expected development of the Company.”

Munich, 8 March 2022

Bayerische Motoren Werke Aktiengesellschaft

The Board of Management

Oliver Zipse

Ilka Horstmeier Dr.-Ing. Milan Nedeljković

Pieter Nota Dr. Nicolas Peter

Dr.-Ing. Joachim Post Frank Weber

53 Responsibility Statement by the Company’s Legal Representatives

Notes Other InformationFinancial Statements of BMW AG

T E N - Y E A R C O M P A R I S O N

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

Revenues1 € million 88,526 75,040 84,691 78,355 79,215 75,350 72,384 66,599 60,474 58,805

Export ratio % 84.3 81.5 82.2 82.4 82.8 82.4 83.0 81.7 81.5 79.6

Production

Automobiles2 Units 2,461,269 2,255,608 2,564,025 2,541,534 2,505,741 2,359,756 2,279,503 2,165,566 2,006,366 1,861,826

Motorcycles Units 187,500 168,115 187,116 162,687 185,682 145,555 151,004 133,615 110,127 113,811

Deliveries

Automobiles2 Units 2,437,591 2,249,943 2,555,795 2,519,897 2,494,115 2,355,726 2,275,367 2,166,772 1,995,903 1,868,158

Motorcycles Units 184,613 170,918 180,941 164,096 175,452 147,290 144,291 133,635 110,039 110,857

Capital expenditure € million 3,304 2,790 3,233 2,975 2,628 2,346 2,748 3,150 3,203 2,776

Depreciation, amortisation and impairment losses € million 2,846 2,646 2,573 2,470 2,350 2,233 2,072 1,890 1,732 1,613

Workforce at end of year3 83,308 84,668 86,700 89,842 87,940 85,754 84,860 80,675 77,110 74,571

Tangible, intangible and investment assets4 € million 18,511 16,834 16,640 15,787 15,419 14,711 14,619 13,945 12,833 11,078

Current assets, prepayments and surplus of pension and similar plan assets over liabilities € million 46,194 40,806 39,179 29,748 26,053 21,588 20,358 20,291 20,932 20,887

Subscribed capital € million 662 660 659 658 658 657 657 656 656 656

Reserves € million 14,438 13,252 12,774 12,280 11,758 11,165 10,168 9,506 8,166 7,568

Equity € million 18,927 15,165 15,079 15,241 15,046 14,122 12,927 12,066 10,529 9,864

as % of tangible, intangible and investment assets % 102.2 90.6 90.6 96.5 97.6 96.0 88.4 86.5 82.0 89.0

Balance sheet total € million 64,705 57,640 55,819 45,535 41,472 36,299 34,977 34,236 33,765 31,965

Cost of materials € million 66,246 57,425 63,425 57,726 56,065 53,862 52,128 47,008 43,402 42,178

Personnel expense € million 9,980 8,565 8,631 8,597 8,638 8,340 7,576 6,786 6,419 6,030

Taxes € million 1,085 232 789 891 1,579 1,327 1,831 1,934 1,674 1,666

Net profit € million 4,910 1,702 2,107 2,801 3,197 3,277 2,741 3,229 2,289 3,131

Dividend € million 3,8275 1,253 1,646 2,303 2,630 2,300 2,102 1,904 1,707 1,640

per share of common stock with a par value of € 1 each € 5.805 1.90 2.50 3.50 4.00 3.50 3.20 2.90 2.60 2.50

per share of preferred stock with a par value of € 1 each € 5.825 1.92 2.52 3.52 4.02 3.52 3.22 2.92 2.62 2.52 1 Financial Reporting Implementation Act (BilRUG) applied with effect from the beginning of the financial year 2016. Comparative figures for 2015 not adjusted. 2 Including supplies of series parts to BMW Brilliance Automotive Ltd., Shenyang. 3 From 2019 onwards adjusted due to a changed calculation method (details provided in BMW Group Annual Report 2019, BMW Group Management Report). 4 From 2013 onward including tangible, intangible and investment assets transferred in conjunction with the merger of BMW Peugeot Citroën Electrification GmbH, Munich;

From 2015 onward including property, plant and equipment transferred in conjunction with the merger of BMW Forschung und Technik GmbH, Munich. 5 Proposed by the Board of Management.

54 Ten-Year Comparison

Notes Other InformationFinancial Statements of BMW AG

2 0 2 3

15 March 2023 BMW Group Report 2022

15 March 2023 BMW Group Annual Conference. Media Day

16 March 2023 BMW Group Annual Conference. Analyst and Investor Day

4 May 2023 Quarterly Statement to 31 March 2023

11 May 2023 Annual General Meeting

3 August 2023 Half-Year Report to 30 June 2023

3 November 2023 Quarterly Statement to 30 September 2023

F I N A N C I A L C A L E N D A R 2 0 2 2

16 March 2022 BMW Group Annual Conference. Media Day

17 March 2022 BMW Group Annual Conference. Analyst and Investor Day

5 May 2022 Quarterly Statement to 31 March 2022

11 May 2022 Annual General Meeting

3 August 2022 Half-Year Report to 30 June 2022

3 November 2022 Quarterly Statement to 30 September 2022

Financial Calendar

55

Notes Other InformationFinancial Statements of BMW AG

B U S I N E S S A N D F I N A N C E P R E S S

Telephone + 49 89 382-2 45 44 + 49 89 382-2 41 18

Fax + 49 89 382-2 44 18

E-Mail [email protected]

P U B L I S H E D B Y

Bayerische Motoren Werke Aktiengesellschaft 80788 Munich Germany Telephone + 49 89 382-0

D I E B M W G R O U P I M I N T E R N E T

Further information about the BMW Group is available online at:

↗ www.bmwgroup.com

Investor Relations information is available directly at:

↗ www.bmwgroup.com / ir

Information about the various BMW Group brands is available at:

↗ www.bmw.com

↗ www.mini.com

↗ www.rolls-roycemotorcars.com

↗ www.bmw-motorrad.com

I N V E S T O R R E L AT I O N S

Telephone + 49 89 382-2 53 87

Fax + 49 89 382-1 46 61

E-Mail [email protected]

C O N TA C T S

56 Contacts

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