278 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Notes to the Group Financial Statements An entity is deemed to be controlled if BMW AG – either directly or indirectly – has power over it, is exposed or has rights to vari- able returns from it and has the ability to influence those returns. Joint operations and joint ventures are forms of joint arrange- ments. Such an arrangement exists when a BMW Group entity jointly carries out activities with a third party on the basis of a contractual agreement. In the case of a joint operation, the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The assets, liabilities, revenues and expenses of one joint operation that is classified as material are recognised proportionately in the Group Financial Statements on the basis of the BMW Group entity’s rights and obligations (proportionate consolidation). The impact of joint op- erations on the Group Financial Statements is of minor signifi- cance. The BMW Group's largest joint operation is Spotlight Automotive Ltd., Zhangjiagang, which has been operated together with the Chinese automobile manufacturer Great Wall Motor Company Limited since 2019, jointly developing and manufacturing elec- tric vehicles for the MINI and Great Wall brands in China. The BMW Group and Great Wall each hold 50% of the joint opera- tion’s equity. In the case of a joint venture, the parties which have joint control only have rights to the net assets of the arrangement. An entity is classified as an associated company if BMW AG – either directly or indirectly – has the ability to exercise significant influence over the entity’s operating and financial policies. As a general rule, the Group is assumed to have significant influence if it holds 20% or more of the entity’s voting power. Interests in material associated companies and joint ventures are accounted for using the equity method. BMW Fleet GmbH, Munich, which acquired part of the Group's own fleet and thus also assumed responsibility for the manage- ment and marketing of these vehicles, was fully included in the Group Financial Statements for the first time with effect from 31 March 2024. On 19 July 2023, the BMW Group signed an agreement with the companies of the Mercedes-Benz Group, the Stellantis Group, the Honda Group, the Hyundai Motor Group and the General Mo- tors Company Group to establish IONNA LLC, Torrance, in the USA with the aim of developing charging infrastructure in North America. Following approval by the relevant antitrust authorities, the transaction was completed on 18 October 2023. The BMW Group's stake in IONNA LLC was diluted from 16.67% to 14.29% in the financial year 2024 following the entry of Toyota Motor Corporation. Although this is below 20%, the newly founded entity is included in the BMW Group Financial State- ments as an associated company using the equity method, re- flecting the fact that the BMW Group is represented on the man- agement board and therefore has significant influence. On 6 November 2023, the BMW Group signed an agreement with a company of the Mercedes-Benz Group to establish Beijing Ionchi New Energy Technology Ltd., Beijing, in China with the aim of developing the charging infrastructure there. Following approval by the relevant antitrust authorities, the transaction was completed on 4 March 2024. The BMW Group holds a 50% in- terest in the newly founded entity, which is accounted for as a joint venture using the equity method. The other changes to the Group reporting entity do not have a material impact on the results of operations, financial position and net assets of the Group. 03 Other significant events Russia-Ukraine war Major uncertainties remained at 31 December 2024 with re- spect to the ongoing Russia-Ukraine war. The current sanctions and the countermeasures taken significantly restrict economic activities with Russia and also have an impact on the Russian companies of the BMW Group. The restrictions currently in place for payments continue to re- strict the transfer of liquid funds from Russia. Developments in this area are reviewed by the BMW Group on a regular basis. In total, the Russian companies hold around 4% (2023: 4%) of the BMW Group's cash and cash equivalents.