24 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Statement of the Chairman of the Board of Management Our competitive edge: flexible architectures and powertrain components. Our architectures, which are able to accommodate all powertrains, form the backbone of our technological flexibility. We can also use different powertrain components and other parts in all vehicles, regardless of the architecture. This is highly relevant, as it enables substantial economies of scale. For example, the BMW iX* relies on the same electrical powertrain components as the BMW i4*. The BMW i4* is based on a flexible architecture, while the BMW iX* uses a specially developed platform. The NEUE KLASSE will introduce a whole range of new components that can be used with different powertrains, including hydrogen, across the entire portfolio in the future. One of your Company’s key strengths remains our plants’ ability to manufacture different model variants and drivetrain types on a single line. The ramp-up of electromobility is not linear, but progresses at different speeds across individual markets. For this reason, it has made sense up until now for our plants to be designed for flexible production – assembling vehicles with both conventional drivetrains and e-drives. This flexible substitution of drivetrain variants, combined with the smart allocation of vehicle concepts, ensures our de- livery capabilities in varying market situations and maintains strong capacity utilisation at our locations. This secures and enhances our competitiveness. Next step: e-mobility for plants Debrecen and Munich. While other manufacturers in our industry are reducing capacity and even planning for plant closures, our new location in Debrecen, Hungary, will begin producing the first model for the NEUE KLASSE this autumn. Following comprehensive refurbishment as a fully electric facility, plant Munich is poised to manufacture the second NEUE KLASSE model from 2026. Just one year later, Munich will only be producing electric vehicles. This will make our main plant the second all-electric fa- cility in our global network, further enhancing efficiency. Our global production network re- mains agile and adaptable to different scenarios in the continued ramp-up of e-mobility. 2024: we met our adjusted targets and made the most of the conditions. As you would expect from your Company, we had ambitious plans for financial year 2024. However, over the course of the year, things turned out differently. This includes the finan- cial impact of delivery stops and recalls for the supplied Integrated Brake System (IBS) com- ponent, general market weakness in China and subdued demand for electric vehicles in sev- eral markets, with corresponding effects on pricing. In light of these factors, we adjusted our guidance for the financial year in September 2024. We fought hard together to keep your Company on track. This clearly set us apart, leaving our established competitors far behind in last year’s sales figures. We achieved our adjusted targets for sales and financial key figures, by making the most of the changed conditions. We delivered 2.45 million vehicles to customers worldwide in 2024. At Group and BMW brand level, sales in the key Europe and Americas regions were on a par with or higher than the previous year. The same was true in our markets outside the three main sales regions in total. In eight European countries, BMW held the top spot in the premium segment. In Bel- gium and Switzerland, we even led the total market. We also reported growth in the US, where we occupy a strong second place in the premium segment. Although our sales figures in China decreased, the BMW brand successfully defended its position as segment number one. The fact that we sold more than twice as many electric vehicles in China in 2024 as two of our established German competitors combined also speaks for itself. Let us not forget that the whole Company has benefited from higher-than- average performance in the Chinese market for many years. Needless to say, we aim to re- turn to a growth path in China very soon – in line with our strategic plan. * ↗ Consumption and Carbon Disclosures. ‘‘One of your Company’s key strengths is the ability to manufacture different drivetrain types on a single line.’’