365 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Independent Auditor’s Report the impairment loss to be recognized. In this context, we also evaluated the relevant IT systems and internal processes. The evaluation included an assessment by our IT-specialists of the appropriateness of the systems concerned and associated in- terfaces to ensure the completeness of data as well as the audit of automated controls for data processing. As part of our audit we assessed in particular the appropriateness of the risk classi- fication procedures as well as the risk provisioning parameters used. For this purpose, we analyzed in particular the validations of parameters that are regularly conducted by the Company. To assess the default risk, we also used targeted sampling of indi- vidual cases to examine whether the attributes for assignment to the respective risk categories were suitably available and the impairment losses had been calculated using the parameters defined for these risk categories. In our view, the assumptions and parameters used in the meas- urement of receivables from sales financing were appropriate overall. 3/ The Company's disclosures on the applied "Accounting poli- cies, assumptions, judgments and estimations" are contained in the notes to the consolidated financial statements under note 6 and on "receivables from sales financing" are contained under note 25. 3/ Valuation of provisions for statutory and non-statutory warranty obligations as well as product guarantees 1/ Provisions for statutory and non-statutory warranty obliga- tions as well as product guarantees are included in the consoli- dated financial statements of BMW Group as a material amount in other provisions. The obligations amounted to EUR 9,272 million as at 31 December 2024. The BMW Group is responsi- ble 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 expected amount of obligations is extrapolated from costs of the past and recognized as a provision in the corresponding amount, if the criteria of IAS 37 have been met. For specific or anticipated in- dividual circumstances, for example recalls for vehicles sold, ad- ditional provisions are recognized provided they have not al- ready been taken into account. The determination of provisions is associated with unavoidable 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 particular significance during our audit. 2/ In order to assess the appropriateness of the valuation method used for the determination of the provisions for statu- tory and non-statutory warranty obligations as well as product guarantees including the assumptions and parameters, we pri- marily obtained an understanding of the process for determining the assumptions and parameters through discussions with the responsible employees of the BMW Group. We also evaluated the appropriateness as well as effectiveness of controls for de- termining the assumptions and parameters. With the involve- ment of our IT specialists, we checked 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 sam- ple of vehicle models, the mathematical correctness of the valu- ation model used across the Group was examined. We exam- ined and evaluated the assumptions used by the BMW Group concerning the extent to which the past values were representa- tive 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-stat- utory warranties. In our view, the method for the valuation of provisions for statu- tory 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 poli- cies, assumptions, judgments and estimations" are contained in the notes to the consolidated financial statements under note 6 and on "Other provisions" are contained under note 34. Other Information The executive directors are responsible for the other infor- mation. The other information comprises the following non-au- dited parts of the group management report: — the non-financial statement to comply with §§ 289b to 289e HGB and with §§ 315b to 315c HGB included in section “SUSTAINABILITY STATEMENT” of the group management report — the section „APPROPRIATENESS AND EFFECTIVENESS OF THE INTERNAL CONTROL SYSTEM AND THE RISK MANAGEMENT SYSTEM“ of the group management re- port The other information comprises further — the statement on corporate governance pursuant to § 289f HGB and § 315d HGB — the remuneration report pursuant to § 162 AktG [Aktieng- esetz: German Stock Corporation Act], for which the super- visory board is also responsible — all remaining parts of the annual report – excluding cross- references to external information – with the exception of the audited consolidated financial statements, the audited group management report and our auditor’s report Our audit opinions on the consolidated financial statements and on the group management report do not cover the other