16 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 In addition to the further development of the remuneration system for the Board of Manage- ment, we resolved for the first time in four years to increase target total remuneration mod- erately from the financial year 2025 onwards. The maximum remuneration thresholds con- tinue to apply unchanged. Subject to the approval of the remuneration system by the An- nual General Meeting 2025, the Board of Management service contracts were updated with effect from 1 January 2025. Key topics from the Board of Management’s individual areas of responsibility were also the subject of our deliberations. Following an introduction to the Chinese automotive mar- ket, the competitive environment and customer requirements, the China market report gave us an in-depth insight into the Group’s strategy for China and its implementation. The Board of Management member responsible for Customer, Brands and Sales also provided us with an update on the MINI brand’s transition to direct sales in the first few European markets. In the report on supply chain resilience, the Group’s strategy and actions were ex- plained to us against the backdrop of geopolitical challenges and regulatory requirements. As part of a presentation on the competitive standing of the BMW Group’s production activi- ties, we focused in particular on the global distribution of value creation and the BMW Group’s “local for local” approach. In the detailed risk report, we were brought up to date with the structure and working meth- ods of the Risk Management System. A key focus of the report was on geopolitical risk sce- narios. The Board of Management explained the processes in place for ensuring resilience in risk management and measures to mitigate risk. With regard to information security, the focus was placed on automotive security. We were provided with information on the auto- motive security protection targets, the BMW Group’s strategy in this area and its protection system. The Board of Management also reported on the strategy and its implementation, on business performance and on the risk situation of the Financial Services segment. In the report on the current business situation, the Board of Management member responsible for Finance provided us with regular information on key topics relating to the Group’s treasury system, such as funding, liquidity management, hedging strategies for price and currency risks, and the current status of share buyback programmes. In September, we took an in-depth look at the topic of product quality and the Group’s qual- ity strategy. In particular, we requested the Board of Management to brief us on quality is- sues relating to the Integrated Brake System provided by a supplier as well as on the measures taken by the BMW Group. In the report on Human Resources and Real Estate, we deliberated on the attractiveness of the BMW Group as an employer, the further development of HR structures and the Group’s potential to leverage digitalisation. The report also informed us on the current status of the Group’s diversity concepts and the extent to which targets have been achieved regarding the proportion of women employed at various levels of BMW AG and the BMW Group. The BMW Group’s long-range corporate planning was the subject of comprehensive ex- amination by the Supervisory Board. Against a backdrop of geopolitical tension, increasing regulatory requirements and a market environment that remains volatile, the Board of Man- agement explained the importance of the BMW Group’s flexible drivetrain strategy and its “local for local” approach to production. A greater focus on costs serves to safeguard the BMW Group’s independence. The Board of Management informed us about plans for the various vehicle and corporate segments and the ambitious long-term targets. We were pre- sented with key financial indicators for each segment, in addition to opportunities and risks for the planning period. After thorough examination, the Supervisory Board approved the long-range corporate planning drawn up by the Board of Management. In December 2024, the Board of Management presented the budget for the financial year 2025. After exhaustive discussion with the Board of Management, we gave the budget our approval. In the run-up to the Annual General Meetings 2024 and 2025, I discussed Supervisory- Board-specific topics with investor representatives at regular meetings and reported back to the Supervisory Board on the results of these meetings. We also dealt with corporate governance issues such as succession planning for the Supervisory Board with regard to expertise and diversity, the system for the Board of Management’s remuneration and the format of the Annual General Meeting as well as the composition and work of the commit- tees. In 2024, the BMW Group once again provided further training for members of the Supervi- sory Board. During a six-day trip to China in June, covering Beijing, Shenyang and Shang- hai, Supervisory Board members had the opportunity to visit the Group’s plants and sales and development sites in person and obtain a first-hand impression of the competitive situ- ation prevailing in the Chinese market. In July, we visited the Rolls-Royce Motor Cars plant in Goodwood, UK, and learned about the special features of boutique production in the ultra- luxury segment. In September, the members of the Supervisory Board were given an in- depth look at the main aspects of the BMW Group’s technology, architecture and product strategy for the period from 2025 onwards. We gained an overview of the new technologies associated with the NEUE KLASSE from 2025 onwards in the areas of digitalisation, ulti- mate driving, drivetrain technologies and the circular economy concept as well as with re- gard to hydrogen technology. The members of the Supervisory Board were then presented with new BMW, MINI and Rolls-Royce design models at the BMW M Driving Academy in Maisach near Munich, and given the opportunity to test the vehicles personally. A keynote speech held by an expert on US politics followed by a dialogue session allowed us to gain insights into US policy against the background of global geopolitical trends. During a guided tour of the BMW Group’s Cell Manufacturing Competence Centre in Parsdorf near Munich in December 2024, we were informed about the progress being made in battery technology and the production of high-voltage storage systems.