15 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Report of the Supervisory Board We held in-depth discussions on the topic of the circular economy with regard to purchasing and the implementation of the BMW Group’s sustainability strategy, using the examples of steel and battery-related raw materials. Based on a self-assessment in the course of our work on corporate governance, we con- cluded that the composition of the Supervisory Board at 31 December 2024 fully meets the targets stipulated in the diversity concept and competency profile. We have also revised our committee structure: in December 2024 and with effect from 1 January 2025, we passed a resolution to establish a Remuneration Committee, which, on the shareholder side, will comprise a majority of independent members. In its role as a preparatory body, the Remu- neration Committee is responsible for reviewing the remuneration of both the Board of Management and the Supervisory Board and the reports related thereto. The Presiding Committee has assumed the former remit of the Presiding Board as well as responsibility for non-remuneration-related personnel matters concerning the Board of Management. In the Declaration of Compliance with the German Corporate Governance Code issued in December 2024, the Board of Management and the Supervisory Board jointly confirmed that they have complied with the recommendations of the Code as amended on 28 April 2022 without exception and will continue to fully comply with them in future. Following a preparatory review conducted by the Presiding Committee as well as a further review at Supervisory Board level, the Statement on Corporate Governance drawn up by the Board of Management was approved by the Supervisory Board in March 2025. In July 2024, the Board of Management informed us of the decision to hold the Annual General Meeting 2025 as a face-to-face event with the physical presence of shareholders, combined with online elements. We also engaged in detailed discussions on the topic of compliance. Both in the Audit Com- mittee and in the Supervisory Board, the Chief Compliance Officer used his annual report to update us on the further development of the BMW Group’s international compliance organi- sation, enhanced monitoring as part of the compliance risk assessment process and the on- going measures regarding communication with BMW Group employees. He emphasised that external certification in accordance with Auditing Standard 890 of the Institute of Public Auditors in Germany (IDW) in November 2024 confirmed the full appropriateness and effec- tiveness of the Compliance Management System in terms of anti-corruption and antitrust compliance. The specific risk analysis required by law in accordance with the Supply Chain Due Diligence Act was performed and follow-up action taken. The report also addressed the handling of individual cases. Furthermore, the members of the Supervisory Board were pro- vided with additional information on the topics of anti-corruption and lobbying. Moreover, the Board of Management regularly informed the Supervisory Board regarding the latest developments in relation to international trade policy and regulation. This in- cluded, in particular, the current status of the European Commission’s anti-subsidy investi- gation and of EU import duties on all-electric vehicles from China, as well as the impact of these measures on the BMW Group. We also held regular discussions on the further devel- opment of the EU7 emissions standard and the EU regulations on fleet carbon emissions. Board of Management remuneration was another important issue on the Supervisory Board’s agenda. We reviewed the target structure, maximum remuneration and expected remuneration for the Board of Management for the financial year 2024, considering in par- ticular the Group’s performance and the development of remuneration for senior executives and employees in Germany over the past few years. Based on a comparative study con- ducted by an external independent remuneration consultant and subsequent oral advice, we concluded that the remuneration paid to Board of Management members for the finan- cial year 2023 and the target remuneration for 2024 were appropriate. Detailed infor- mation on the Board of Management’s remuneration for the financial year 2024 is provided in the Remuneration Report. In the course of the year, the Board of Management updated the members of the Supervi- sory Board on the current level of attainment of defined financial KPIs as well as the KPIs for our non-financial targets, including those related to ESG, such as deliveries of all-electric automobiles, fleet carbon emissions in the EU, the BMW Group’s attractiveness as an em- ployer and diversity. Following thorough preparation work by the Personnel Committee, we also closely scruti- nised the Board of Management remuneration system, which is due to be presented to the Annual General Meeting 2025. In our deliberations, we not only took statutory requirements into account, but also the recommendations of an independent external remuneration con- sultant, as well as suggestions from investor representatives, market practices and remu- neration within the BMW Group. Given that the existing remuneration system has proven to be effective, no fundamental adjustments were required. As such, in December 2024 we approved only isolated improvements to the existing system for the financial years from 2025 onwards. Among other things, we updated the existing Share Ownership Guidelines. We have enclosed a summary of the main adjustments to the remuneration system with the invitation to the Annual General Meeting 2025. Taking this as a basis, in December 2024 we adopted the targets for the Board of Manage- ment’s variable remuneration for the financial year 2025. The targets are based on the BMW Group’s corporate planning for 2025, the long-range corporate planning and the ESG targets included in the corporate strategy.