262 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Outlook The war in Ukraine and the temporary suspension of US military aid, and the resulting discussions in Europe about further sup- port, are being closely monitored. All applicable restrictions have been factored into the outlook. In view of the growing unpredictability of macroeconomic and ge- opolitical developments, actual economic growth in some re- gions may deviate from expected trends and outcomes. Particu- lar sources of uncertainty include trade and tariff policy, security policy and a possible further escalation of international trade conflicts. New strategic targets for CO2e emissions have been established for the upcoming financial year. These targets reflect the close interconnection between the supply chain and the use phase, as well as the requirements of ESRS reporting. The most significant performance indicators have been defined in line with these new targets. Starting in the 2025 financial year, the key performance indicators CO2e emissions (Scope 1 and 2) will be reported at Group level in millions of tonnes. Additionally, Scope 3 CO2e emissions from the supply chain and the use phase will be re- ported together within the Automotive segment in millions of tonnes. This replaces the previously reported performance indi- cators of CO2e emissions from the BMW Group locations for Scope 1 and 2 per vehicle produced and the carbon emissions of the EU new car fleet in g/km. Outlook for the BMW Group – key performance indicators The BMW Group expects the full availability of new models such as the BMW 5 Series, the BMW X3* and the updated MINI model range to boost deliveries. The launch of the BMW 2 Series Gran Coupé* is also expected to provide positive momentum. Deliveries of BMW, MINI and Rolls-Royce brand vehicles in the Automotive segment are expected to rise slightly year-on-year due to an increase in demand, full availability of new models and the updated MINI model range. The share of all-electric cars rel- ative to total deliveries will increase slightly compared to 2024. Depreciation will increase due to investments and capitalised de- velopment costs in previous years. The electrification and digital- isation strategy will continue in 2025, although costs and invest- ments are expected to decline after peaking in 2024. Expendi- ture in the 2025 financial year is connected with preparations for the launch of the NEUE KLASSE models, including the ongoing development of the sixth generation of our battery technology. Rising deliveries and easing tensions in the raw materials mar- kets are having a positive impact in the financial year. By con- trast, currency effects, the ongoing challenges in China, the ad- ditional tariffs and the continued increased support measures for the supply chain are weighing on earnings. Against this back- drop, the EBIT margin is expected to be in the range of 5% to 7%. The RoCE for the Automotive segment is expected to finish within a range between 9% and 13%. A slight increase in absolute Scope 1 and 2 CO2e emissions is forecast. Measures to reduce the company’s own CO2e emis- sions are more than offset by a higher production volume com- pared to the previous year. The absolute Scope 3 CO2e emissions from the supply chain and use phase in the Automotive segment are also expected to rise slightly, but the increase will be disproportionately low compared to the volume. The stable demand situation can also be seen in the Motorcycles segment, where deliveries are predicted to increase slightly ow- ing to the full availability of models, including the BMW R 1300 GS Adventure. The EBIT margin is expected to range between 5.5% and 7.5% and the segment RoCE between 13% and 17%. The RoE in the Financial Services segment is predicted to finish within a range between 13% and 16%. The downward trend in pre-owned vehicle markets is expected to continue, leading to a further decline in revenues from remarketing lease returns com- pared to 2024. Group profit before tax will remain at the previous year's level based on the developments mentioned above. For this specific key performance indicator, beginning with the financial year 2025, this reflects a change compared to 2024 in the range of between +/– 4.9%. The aforementioned targets will be met with a number of em- ployees that is in line with last year’s level. The share of women in management positions in the BMW Group is expected to in- crease slightly. From the 2025 financial year onwards, the per- formance indicators related to employees will include fully con- solidated subsidiaries in accordance with ESRS reporting re- quirements. The BMW Group’s actual business performance may also devi- ate from current expectations due to the risks and opportunities discussed below in the ↗ Risks and Opportunities section. * ↗ Consumption and Carbon Disclosures.