14 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 Focus of Supervisory Board activities during the past financial year The Supervisory Board performed the duties incumbent upon it with the utmost diligence throughout the financial year 2024. We continuously and thoroughly monitored the governance of the BMW Group based on in- depth reports received from the Board of Management. We also advised the Board of Man- agement on key management issues as well as on the Group’s strategic development. At each of the five plenary sessions of the Supervisory Board (including one two-day meeting), we held detailed discussions with the Board of Management regarding the BMW Group’s position. The Board of Management also kept the Supervisory Board well informed regard- ing any matters of particular significance outside the framework of formal meetings. Fur- thermore, I discussed matters personally and on a regular basis with the Chairman of the Board of Management. In addition, the Chairman of the Audit Committee maintained a di- rect line of contact with the Board of Management member responsible for Finance as well as with the external auditor’s representatives outside of meetings. We regularly dealt with internal Supervisory Board issues and personnel-related matters without the presence of the Board of Management. Our cooperation, both within the Supervisory Board and its committees and with the Board of Management, was conducted in a spirit of trust, respect and constructiveness. As a general rule, the members received detailed documents on the topics of the meetings in advance. In addition, separate preliminary meetings of the share- holder and employee representatives were held on a regular basis prior to Supervisory Board meetings. In its reports on the BMW Group’s position, the Board of Management kept us well in- formed at each meeting regarding current developments and the Group’s overall perfor- mance. We were provided with information on current sales trends for both the BMW Group and its competitors, based on figures analysed by brand, segment and market region. There was also a keen focus on electric vehicles as well as on the Group’s key financial indi- cators and liquidity situation. The BMW Group’s corporate strategy, also with regard to sustainability, was the subject of comprehensive examination by the Supervisory Board. After analysing the impact of geopo- litical developments on the BMW Group, the Board of Management elaborated on the stra- tegic focus areas of drivetrain strategy, digitalisation and sustainability, emphasising just how important our flexible drivetrain strategy will be as we seek to exploit future growth op- portunities. With regard to electrification, the Board of Management outlined the efficiency improvements made in battery technology and the importance of cooperation initiatives for charging infrastructure. We also discussed the merits of hydrogen fuel cell technology. The strategic focus area of digitalisation relates to our products, customers and processes in particular, and encompasses driver assistance systems, over-the-air updates for the BMW Group’s vehicle fleet and the digital transformation of our interaction with customers. We discussed the potential that digitalisation has to offer, including artificial intelligence, and its implementation in our business processes. In the focus area of sustainability, the Board of Management presented the decarbonisation measures being taken in respect of our pro- duction and sites, as well as in the supply chain and during the vehicle usage phase. Strate- gic sales topics centred on developments in the Chinese market, the impact of EU duties on imports of all-electric vehicles from China, the positioning of MINI products and the switch to the new direct sales model. Furthermore, the Board of Management addressed the poten- tial offered by other sales markets, such as India. We also looked at the competitive land- scape and our future product portfolio. At each meeting, the Board of Management updated us on the current status of its strat- egy- and project-related work. The Board of Management also reported at regular intervals on recent events, such as the BMW Group’s investments in its plants in Shenyang, China and Spartanburg, USA, the latter including the opening of the BMW Group’s first pressing plant in that country, receipt of the approval for a combination of Level 2 and Level 3 auton- omous driving for the BMW Group in Germany (the first automotive manufacturer to be granted such approval), and the Group’s successful appearance at the Auto China trade fair in Beijing. We see the “German Car of the Year” award received for the new BMW 5 Series, both for the model with a combustion engine and an all-electric model, as an endorsement of our flexible drivetrain strategy. The award was based on the assessment of a panel of 40 German and international automotive journalists. In September, the Board of Management explained its reasons for adjusting the outlook for the financial year 2024 and discussed the Company’s relevant measures together with us. At Supervisory Board meetings we regularly addressed the topics of sustainability and ESG. In a report on recent developments within the BMW Group, the Board of Management informed us, among other things, about the expansion of the partnership with Toyota aimed at developing vehicles powered by hydrogen fuel cells. It also reported on the progress made by the Catena-X data ecosystem (in which the BMW Group is a partner) in capturing data-driven energy consumption measurements from the raw material to the end product stage in one data chain. Moreover, the Board of Management reported on the timely start of construction work for the battery assembly plant in Irlbach-Straßkirchen and on the ongoing renovation work at the Munich plant. We also discussed the review of social and environ- mental standards among suppliers, particularly in accordance with the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) and in some cases with the involvement of external auditors. We were delighted to see the BMW Group perform so well in the Trendence Ranking Germany 2024 on employer attractiveness, and to acknowledge the BMW Group’s leading position among automotive manufacturers in the MSCI Implied Temperature Rise index.