Q3 2019 BMW Group EN Online

QUARTERLY STATEMENT
30 September 2019

CONTENTS
1
BMW GROUP AT A GLANCE
Page 4 BMW Group in Figures
2
INTERIM GROUP
MANAGEMENT REPORT
Page 9 Report on Economic Position
Page 9 General Economic Environment
Page 10 Group Overview
Page 12 Automotive Segment
Page 18 Financial Services Segment
Page 20 Report on Outlook, Risks and Opportunities

Page 20 Outlook
Page 22 Risks and Opportunities
3
INTERIM GROUP
FINANCIAL STATEMENTS
Page 24 Income Statement
Page 28 Balance Sheet
Page 30 Cash Flow Statement
4
OTHER INFORMATION
Page 33 Contacts
BMW GROUP
AT A GLANCE
Page 4 BMW Group in Figures
1
4
BMW Group
at a Glance
BMW GROUP IN FIGURES
BMW Group
in Figures
Key performance indicators reported during the year
• 01
3rd quarter 2019 3rd quarter 2018 Change in %
Group
Profit before tax 1 € million 2,248 1,822 23.4
Automotive segment
Deliveries 2 units 613,361 592,303 3.6
EBIT margin 3 % (change in %pts) 6.6 4.4 2.2
Motorcycles segment
Deliveries units 43,744 39,818 9.9
EBIT margin 3 % (change in %pts) 6.3 6.9 – 0.6
1
Prior year’s figures adjusted due to a change in accounting policy in connection with the adoption of IFRS 16; see note 4 to the Interim Group Financial Statements at 30 June 2019.
2
Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2019: 126,878 units, 2018: 113,582 units).
3
Profit before financial result as percentage of segment revenues.
5
BMW Group
at a Glance
BMW Group
in Figures
Further performance figures
• 02
Automotive segment
Deliveries
BMW 1 units 525,438 506,920 3.7
MINI units 86,680 84,505 2.6
Rolls-Royce units 1,243 878 41.6
Total 1 613,361 592,303 3.6
Production volume
Total 2 630,757 617,082 2.2
Financial Services segment

New contracts with retail customers 504,217 490,347 2.8
Free cash flow Automotive segment € million 714 98 –
Group revenues 3 € million 26,667 24,715 7.9

Automotive € million 23,016 21,111 9.0
Motorcycles € million 558 476 17.2
Financial Services 3 € million 7,471 7,219 3.5
Other Entities € million 1 1 –
Eliminations 3
€ million – 4,379 – 4,092 – 7.0
Group profit before financial result (EBIT) 3 € million 2,289 1,722 32.9
Automotive € million 1,515 930 62.9
Financial Services 3 € million 606 528 14.8
Other Entities € million 1 6 – 83.3
Eliminations 3
€ million 132 225 – 41.3
Group profit before tax (EBT) 3 € million 2,248 1,822 23.4

Financial Services 3 € million 597 549 8.7
Other Entities € million – 26 27 –
Eliminations 3
€ million 109 212 – 48.6
Group income taxes 3 € million – 702 – 420 – 67.1

Profit / loss from continuing operations 3
€ million 1,546 1,402 10.3
Profit / loss from discontinued operations € million – – 15 –
Group net profit 3 € million 1,546 1,387 11.5
Earnings per share 3, 4 € 2.31 / 2.31 2.07 / 2.07 11.6 / 11.6
Group pre-tax return on sales 3, 5 % (change in %pts) 8.4 7.4 1.0
1
2
3
Prior year’s figures adjusted due to a change in accounting policy in connection with the adoption of IFRS 16; see note 4 to the Interim Group Financial Statements at 30 June 2019.
In addition, figures for the prior year have been adjusted due to changes in presentation of selected items, which are not material overall.
4
Common / preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of € 0.02 per share of p referred stock are spread over the quarters
of the corresponding financial year.
5
Group profit before tax as a percentage of Group revenues.
6
BMW Group
at a Glance
BMW GROUP IN FIGURES
BMW Group
in Figures
Key performance indicators reported during the year
• 03
1 January to 1 January to
30 September 30 September
2019 2018 Change in %
Group
Profit before tax 1 € million 5,063 7,827 – 35.3
Automotive segment
Deliveries 2 units 1,866,198 1,834,810 1.7
Motorcycles segment
Deliveries units 136,932 126,793 8.0
1
2
3
Profit before financial result as percentage of segment revenues.
7
BMW Group
at a Glance
BMW Group
in Figures
Further performance figures
• 04
2019 2018 Change in %
Automotive segment
Deliveries
BMW 1 units 1,601,397 1,566,216 2.2
MINI units 261,024 265,935 – 1.8
Rolls-Royce units 3,777 2,659 42.0
Total 1
1,866,198 1,834,810 1.7
Production volume
Total 2 1,925,758 1,933,396 – 0.4

New contracts with retail customers 1,475,504 1,422,558 3.7
Free cash flow Automotive segment € million 1,024 2,042 – 49.9
Group revenues 3 € million 74,844 72,373 3.4

Motorcycles € million 1,871 1,658 12.8
Other Entities € million 4 4 –
Eliminations 3 € million – 13,865 – 12,725 – 9.0
Group profit before financial result (EBIT) 3 € million 5,079 7,168 – 29.1
Automotive € million 2,674 4,730 – 43.5
Other Entities € million 7 22 – 68.2
Eliminations 3 € million 312 514 – 39.3
Group profit before tax (EBT) 3 € million 5,063 7,827 – 35.3

Automotive € million 2,989 5,346 – 44.1
Other Entities € million – 181 105 –
Eliminations 3 € million 236 466 – 49.4
Group income taxes 3 € million – 1,493 – 2,060 27.5

Profit / loss from continuing operations 3 € million 3,570 5,767 – 38.1
Profit / loss from discontinued operations € million 44 – 22 –
Group net profit 3 € million 3,614 5,745 – 37.1
Earnings per share 3, 4 € 5.37 / 5.38 8.62 / 8.63 – 37.7 / – 37.7
Group pre-tax return on sales 3, 5
% (change in %pts) 6.8 10.8 – 4.0
1
2
3
4
Common / preferred stock. In computing earnings per share of preferred stock, earnings to cover the additional dividend of € 0.02 per share of p referred stock are spread over the quarters
of the corresponding financial year.
5
Group profit before tax as a percentage of Group revenues.
INTERIM GROUP
MANAGEMENT REPORT
Page 9 Report on Economic Position
Page 9 General Economic Environment
Page 10 Group Overview
Page 12 Automotive Segment
Page 18 Financial Services Segment
Page 20 Report on Outlook, Risks and Opportunities

Page 20 Outlook
Page 22 Risks and Opportunities
2
9
Interim Group
Management
Report
REPORT ON GENERAL ECONOMIC
ENVIRONMENT IN THE FIRST
Report on Economic
Position ECONOMIC NINE MONTHS OF 2019
POSITION
General Economic
Environment
Vehicle deliveries reach

new all-time high International automobile markets
From January to September 2019, international auto-
EBIT increases in third quarter mobile markets performed weakly overall with new
registrations down worldwide for the nine-month
Financial Services business
period (62.0 million units; – 3.5 %). Key automobile
continues positive trend
markets developed as follows:
International automobile markets

• 05
Change in %
Europe – 1.5
thereof Germany + 2.5
thereof France – 1.6
thereof Italy – 1.9
thereof Spain – 7.3
thereof United Kingdom (UK) – 2.5
USA – 1.1
China – 8.0
Japan + 3.0
Total – 3.5
10
Interim Group
Management
Group Overview Group revenues up slightly 3
Report Group revenues for the nine-month period amounted
to € 74,844 million (2018: € 72,373 million; + 3.4 %),
Report on Economic
Position Automobile deliveries at record level up slightly year-on-year. On a currency-a djusted
General Economic
Environment
Despite the high level of economic and political uncer- basis, Group revenues were also up slightly (+ 2.0 %).
Group Overview tainty, stoked by international trade and customs poli- Driven by a favourable sales mix and currency effects,
cy developments as well as by Brexit, the BMW Group third-quarter revenues grew solidly to € 26,667 mil-
delivered a record number of automobiles in both the lion ( 2018 : € 2 4 , 715  million; + 7 . 9 %, currency-
third quarter and the first nine months of 2019. adjusted + 6.3 %). The previous year’s figure was also
affected by fierce competition relating to the intro-
In a predominantly contracting market, third-quarter duction of Worldwide Harmonised Light Vehicle Test
delivery figures for BMW, MINI and Rolls-Royce brand Procedures (WLTP).
vehicles rose worldwide by 3.6 % to 613,361 1 units
(2018: 592,303 1 units). Delivery volumes from January The nine-month gross profit figure of € 13,170 million
to September increased slightly to 1,866,198 2 units represented a moderate year-on-year decrease (2018:
(2018: 1,834,810 2 units; + 1.7 %). € 13,878 million; – 5.1 %). Earnings were negatively
impacted by higher manufacturing costs due to
At 30 September 2019, the Financial Services segment stricter regulatory requirements as well as by higher
had a portfolio of 5,414,506 contracts with retail custom- raw materials prices and adverse currency factors.
ers (31 December 2018: 5,235,207 contracts; + 3.4 %). In addition, investments made in conjunction with
From July to September 2019, 504,217 new credit the continued product offensive and the electrifi-
financing and leasing contracts were signed with retail cation of vehicles and autonomous driving caused
customers (2018: 490,347 contracts; + 2.8 %), bring- research and development expenses to remain at a
ing the total for the nine-month reporting period to consistently high level.
1,475,504 contracts (2018: 1,422,558 contracts; + 3.7 %).
Research and development ratios for the period from 1 July to 30 September
• 06
2019 2018 Change in %
Research and development expenses as a percentage of revenues % (change in %pts) 5.4 5.1 0.3
Research and development expenditure ratio 4 % (change in %pts) 6.1 6.9 – 0.8
Capitalisation rate 5 % (change in %pts) 35.3 46.5 – 11.2
Research and development expenses € million 1,451 1,271 14.2
Expenditure in capitalised development costs € million 571 789 – 27.6
Amortisation € million – 404 – 362 11.6
Research and development expenditure 6 € million 1,618 1,698 – 4.7
Research and development ratios for the period from 1 January to 30 September
• 07
2019 2018 Change in %
Research and development expenses as a percentage of revenues % (change in %pts) 5.7 5.4 0.3
Research and development expenditure ratio 4 % (change in %pts) 5.9 6.2 – 0.3
Capitalisation rate 5 % (change in %pts) 31.7 35.7 – 4.0
Research and development expenses € million 4,247 3,881 9.4
Expenditure in capitalised development costs € million 1,411 1,591 – 11.3
Amortisation € million – 1,210 – 1,018 18.9
Research and development expenditure 6 € million 4,448 4,454 – 0.1
1
Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2019: 126,878 units, 2018: 113,582 units).
2
Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2019: 392,394 units, 2018: 328,800 units).
3
4
Research and development expenditure as a percentage of Group revenues.
5
Capitalised development costs as a percentage of research and development expenditure.
6
Research and development expenditure comprises research costs, non-capitalised development costs and capitalised development costs (excluding amortisation thereon).
11
Interim Group At € 4,569 million (2018: € 3,954 million; + 15.6 %), Financing activities

Management
Report third-quarter gross profit improved significantly Bonds amounting to € 16.5 billion and ABS transac-
compared to one year earlier, partly due to favour- tions in the USA, the UK, China, Canada, Australia,
Report on Economic
Position able selling price and model mix effects as well as Germany, South Africa and Japan totalling € 7.1 bil-
General Economic
Environment
lower expenses for goodwill and warranty measures. lion were issued during the nine-month period.
Group Overview Higher manufacturing costs due to stricter regulatory
requirements had an offsetting effect.
Impact of IFRS 16
Group profit before financial result for the nine- The BMW Group has applied the new accounting
month period fell significantly to € 5 , 079  million requirements for leases in accordance with IFRS 16
( 2018 : € 7 , 168  million; – 29 . 1 %). In addition to the (Leases) with effect from 1 January 2019. Explanatory
effects described above, the provision recognised information on the impact of IFRS 16 is provided in
during the first quarter of 2019 in connection with note 4 to the Interim Group Financial Statements for
the EU  C ommission’s antitrust proceedings was a the period ended 30 June 2019.
significant negative factor. Further information is
provided in note  6 to the Interim Group Financial
Statements for the period ended 30 June  2019 . The
profit before financial result reported for the third
quarter was significantly up on the previous year
(€ 2, 289 million, 2018: € 1, 722 million; + 32 . 9 %) due
to the positive effects described above.
The nine-month financial result was significantly

down, finishing € 675 million lower than one year
earlier. The € 157 million increase in earnings con-
tributed by the Chinese joint venture BMW Brilliance
Automotive Ltd., Shenyang, was more than offset by
the at-equity loss of € 263 million recorded for the
YOUR NOW companies. Other financial result in the
previous year included a positive revaluation effect
of € 209 million in conjunction with the takeover of
DriveNow, while in the current financial year a one-
time revaluation gain of € 329 million arose from the
pooling of mobility services with the Daimler Group.
Due to adjusted business expectations at individual
YOUR NOW companies, impairment losses totalling
€ 269 million were recognised in the first nine months,
including € 73 million recorded in the third quarter.
Furthermore, other financial result was affected by a

negative fair value measurement impact of € 244 mil-
lion recognised on interest rate hedges entered into
in connection with refinancing the Financial Services
business (2018: positive fair value measurement
impact of € 39 million).
Group profit before tax was impacted by the same set

of factors and fell accordingly to € 5,063 million (2018:
€ 7,827 million; – 35.3 %).
12
Interim Group
Management
Automotive Segment ( 2018 : 214 , 559 1 units; + 6 . 5 %). The equivalent
Report figure for the nine-month period rose by 6.8 % to
681,773 2 units (2018: 638,449 2 units). Business in
Report on Economic
Position Growth in Automobile deliveries bucks market trend China during the third quarter of 2019 was affected
General Economic
Environment
Despite a generally contracting market, the by the model change of the BMW 3 Series extended-
Automotive Segment BMW Group registered new highs in terms of auto- wheelbase version at the end of June. Nonetheless,
mobile deliveries with a young and attractive product deliveries were well up on one year earlier, rising
portfolio. Apart from setting new records at Group by 10.1 % to 176,232 1 units (2018: 160,047 1 units).
level, the BMW and Rolls-Royce brands both achieved Double-digit growth was also recorded for the period
their best figures to date, not only for a third quarter, from January to September, with volumes up by
but also for the nine-month period as a whole. 14.5 % to 526,824 2 units (2018: 460,200 2 units).
During the third quarter of 2019, 525,438 1 BMW In Europe, automobile market performance as a whole
(2018: 506,920 1 units; + 3.7 %) and 86,680 MINI (2018: was held down in particular by Brexit-driven uncer-
84,505 units; + 2.6 %) brand vehicles were delivered to tainty. Nevertheless, third-quarter deliveries of the
customers worldwide. In addition, Rolls-Royce Motor BMW Group across Europe edged up to 259,051 units
Cars delivered 1,243 units (2018: 878 units; + 41.6 %) (2018: 253,935 units; + 2.0 %). During the first nine
during the three-month reporting period. months of 2019, a total of 809,497 units were handed
over to customers, similar to the previous year’s level
Deliveries during the first nine months comprised (2018: 816,037 units; – 0.8 %). In Germany, deliveries
1, 601, 397 2 BMW ( 2018: 1, 566, 216 2 units; + 2. 2 %), of the Group’s three brands rose by 4.1 % between July
261 , 024 MINI ( 2018 : 265 , 935  units; – 1 . 8 %) and and September to 78,293 units (2018: 75,215 units)
3,777 Rolls-Royce (2018: 2,659 units; + 42.0 %) brand and by a solid 6.5 % to 239,601 units for the nine-
vehicles. month period (2018: 224,933 units). By contrast,
deliveries in the UK were down on the previous
year in both the third quarter (56,550 units, 2018:
Growth rate in China remains high 57,433 units; – 1.5 %) and the nine-month period
In total, 228,418 1 BMW, MINI and Rolls-Royce brand (177,448 units, 2018: 181,727 units; – 2.4 %) due to
vehicles were sold in Asia during the third quarter Brexit-related concerns.
Automotive segment at a glance

• 08
Deliveries 1, 3 units 613,361 592,303 3.6

Production 4 units 630,757 617,082 2.2
Revenues € million 23,016 21,111 9.0
Profit before financial result (EBIT) € million 1,515 930 62.9
EBIT margin 3, 5
% (change in %pts) 6.6 4.4 2.2
Profit before tax € million 1,533 1,003 52.8
2019 2018 Change in %
Deliveries 2, 3 units 1,866,198 1,834,810 1.7

Production 6
units 1,925,758 1,933,396 – 0.4
Revenues € million 64,853 62,629 3.6
Profit before financial result (EBIT) € million 2,674 4,730 – 43.5
EBIT margin 3, 5 % (change in %pts) 4.1 7.6 – 3.5
Profit before tax € million 2,989 5,346 – 44.1
1
2
3
Key performance indicators reported on during the year.
4
5
Profit before financial result as percentage of Automotive segment revenues.
6
13
Interim Group In total, 112 , 513 BMW , MINI and Rolls-Royce recorded 3 . 6 % growth in the third quarter to
Management
Report brand vehicles were sold in the Americas region dur- 86,499 units (2018: 83,516 units) despite flat market
ing the third quarter (2018:110,197 units; + 2.1 %), performance as a whole. At 261,278 units, nine-month
Report on Economic
Position bringing the cumulative figure for the nine-month deliveries in the USA and across the remainder of the
General Economic
Environment
period to 334,785 units, almost on a par with the Americas region were very similar to the previous
Automotive Segment previous year’s corresponding performance (2018: year (2018: 260,086 units; + 0.5 %).
336,258 units; – 0.4 %). In the USA, the BMW Group
Automotive segment deliveries of vehicles by region and market

• 09
in units 3rd quarter 2019 3rd quarter 2018 Change in % 2019 2018 Change in %
Europe 259,051 253,935 2.0 809,497 816,037 – 0.8

thereof Germany 78,293 75,215 4.1 239,601 224,933 6.5
thereof UK 56,550 57,433 – 1.5 177,126 181,727 – 2.5
Americas 112,513 110,197 2.1 334,785 336,258 – 0.4
thereof USA 86,499 83,516 3.6 261,278 260,086 0.5
Asia 228,418 1
214,559 1
6.5 681,773 2
638,449 2
6.8
thereof China 176,232 1 160,047 1 10.1 526,824 2 460,200 2 14.5
Other markets 13,379 13,612 – 1.7 40,143 44,066 – 8.9
Total 613,361 1 592,303 1 3.6 1,866,198 2 1,834,810 2 1.7
1
2
BMW sets new volume records 2, figure of 199,243 fell short of the previous year’s
X family with significant increase high level (2018: 213,633 units; – 6.7 %). By contrast,
The BMW brand achieved record delivery volumes for the BMW X3 performed extremely well during the
both the third quarter and the nine-month period. first nine months of 2019, with deliveries jumping
Business with the BMW family of X models devel- by 74 . 0 % to 230 , 497  units ( 2018 : 132 , 478  units).
oped very positively, while the BMW i models also During the same period, 116 , 475  units of the
made a marked contribution. BMW   X5 were handed over to customers ( 2018 :
117,621 units; – 1.0 %). In the third quarter, however,
The model change of the extended-wheelbase version this highly successful model recorded a significant
in China referred to above, combined with that of the increase, with deliveries up by almost one quarter
Touring model, meant that the BMW 3 Series – with to 40,128 units (2018: 32,314 units; + 24.2 %), mainly
a total of 250,425 units worldwide – fell short of reflecting the availability of additional engine vari-
its previous year’s performance for the nine-month ants on the Chinese market during the third quarter.
period (2018: 278,499 units; – 10.1 %). A total of The BMW X2, which has been in showrooms since
260,318 units of the BMW 5 Series were delivered March  2018 , also recorded extremely dynamic
to customers between January and September (2018: growth over the nine-month period, with deliveries
286,180 units; – 9.0 %). The new BMW 8 Series and up by 70 . 5 % to 72 , 281  units ( 2018 : 42 , 395  units).
Z4 models, which have been available since March, Since its market launch in March  2019, 25,125 cus-
enjoyed a high level of demand, recording deliveries tomers worldwide have taken delivery of the
of 7,496 and 11,963 units respectively. new BMW X7.
The BMW X family remained highly popular, with

the nine-month worldwide delivery volume up by
approximately one quarter to 706,259 units (2018:
564,542 units; + 25.1 %). The BMW X1 sales volume
14
Interim Group
Management Automotive segment deliveries of BMW vehicles by model series*
Report • 10
Report on Economic
Position 1 January to 1 January to
General Economic 30 September 30 September
Environment in units 2019 2018 Change in %
Automotive Segment
BMW 1 Series 128,159 149,659 – 14.4

BMW 2 Series 93,040 116,295 – 20.0
BMW 3 Series 250,425 278,499 – 10.1
BMW 4 Series 58,442 84,197 – 30.6
BMW 5 Series 260,318 286,180 – 9.0
BMW 6 Series 18,350 20,246 – 9.4
BMW 7 Series 35,965 41,078 – 12.4
BMW 8 Series 7,496 – –
BMW Z4 11,963 – –
BMW X1 199,243 213,633 – 6.7
BMW X2 72,281 42,395 70.5
BMW X3 230,497 132,478 74.0
BMW X4 44,789 31,233 43.4
BMW X5 116,475 117,621 – 1.0
BMW X6 17,849 27,182 – 34.3
BMW X7 25,125 – –
BMW i 30,980 25,520 21.4
BMW total 1,601,397 1,566,216 2.2
* Including the joint venture BMW Brilliance Automotive Ltd., Shenyang (2019: 392,394 units, 2018: 328,800 units).
MINI reports volume growth in third quarter The number of MINI Countryman vehicles delivered
Worldwide deliveries of the MINI brand increased during the first nine months of the current year
slightly in the third quarter by 2.6 % to 86,680 units edged up by 2.6 % to 73,344 units (2018: 71,490 units),
(2018: 84,505 units). Over the nine-month period, whereas the MINI Hatch (3- and 5-door models) was
however, they remained slightly down on the previous slightly down year-on-year at 132,363 units (2018:
year at 261,024 units (2018: 265,935 units; – 1.8 %). 133,963 units; – 1.2 %).
Automotive segment deliveries of MINI vehicles by model variant

• 11
in units 2019 2018 Change in %
MINI Hatch (3- and 5-door) 132,363 133,963 – 1.2

MINI Convertible 24,736 25,813 – 4.2
MINI Clubman 30,581 34,669 – 11.8
MINI Countryman 73,344 71,490 2.6
MINI total 261,024 265,935 – 1.8
15
Interim Group Significant growth for Rolls-Royce in particular by the new Rolls-Royce Cullinan*. This
Management
Report Rolls-Royce Motor Cars delivered 3,777 vehicles to latest addition to the brand’s portfolio continued to
customers worldwide between January and Septem- attract a high level of customer interest, resulting in
Report on Economic
Position ber 2019, recording a very substantial increase of 42.0 % 1,780 units being delivered during the nine-month
General Economic
Environment
as well as a new record for the first nine months of a reporting period.
Automotive Segment year (2018: 2,659 units). This performance was boosted
Automotive segment deliveries of Rolls-Royce vehicles by model variant

• 12
Phantom 455 578 – 21.3

Ghost 522 711 – 26.6
Wraith / Dawn 1,020 1,370 – 25.5
Cullinan* 1,780 – –
Rolls-Royce total 3,777 2,659 42.0
Share of electrified automobiles previous year’s record level (2018: 97,543 units; – 1.0 %).
influenced by model changes Demand for the BMW i3 remained high, as a result of
The number of electrified vehicles delivered to custom- which deliveries rose by over 20 % to 28,833 units (2018:
ers by the BMW Group during the first nine months 23,644 units; + 21.9 %). The MINI Countryman* was also
of the current year was influenced in particular by highly popular as a plug-in hybrid, with 11,999 units
the BMW X5 and 3 Series model changes. In total, delivered worldwide during the nine-month reporting
96,570 units of the BMW i, BMW e and MINI Electric period (2018: 8,826 units; + 36.0 %).
brands were delivered worldwide, slightly down on the
Automotive segment deliveries of electrified models

• 13
BMW i 30,980 25,520 21.4

BMW e 53,591 63,197 – 15.2
MINI Electric 11,999 8,826 36.0
Total 96,570 97,543 – 1.0
* Fuel consumption and CO2 emissions information are available on page 22.

16
Interim Group Segment revenues increase The expense for recognising a provision for the ongo-
Management
Report Automotive segment revenues for the nine-month ing EU Commission’s antitrust proceedings referred
period were slightly up on the previous year at to above is included in other operating expenses.
Report on Economic
Position € 6 4 , 853  million ( 2018 : € 6 2 , 629  million; + 3 . 6 %; Accordingly, nine-month segment EBIT dropped
General Economic
Environment
currency-adjusted + 2.1 %). Third-quarter revenues significantly to € 2,674 million (2018: € 4,730 mil-
Automotive Segment rose solidly to € 23,016 million (2018: € 21,111 million; – 43.5 %), while the EBIT margin fell to 4.1 %
lion; + 9.0 %; currency-adjusted + 7.4 %). Currency (2018: 7.6 %; – 3.5 percentage points). Third-quarter
and product mix factors, including in particular sales EBIT came in at € 1 , 515  million ( 2018 : € 9 30  mil-
of the BMW X7 and 8 Series, had a positive impact lion; + 62.9 %), corresponding to a margin of 6.6 %
on segment revenues in the first nine months, espe- (2018: 4.4 %; + 2.2 percentage points).
cially in the third quarter. Segment revenue growth
was also boosted by increased revenues generated Segment profit before tax for the nine-month period
by business with the joint venture BMW Brilliance amounted to € 2,989 million and was therefore down
Automotive Ltd., Shenyang. significantly on the previous year (2018: € 5,346 mil-
lion; – 44. 1 %). The corresponding figure for the
The rise in cost of sales in both the nine-month third quarter was a profit of € 1,533 million (2018:
period and third quarter was mainly attributable to € 1,003 million; + 52.8 %).
adverse currency factors and higher raw materials
prices as well as increased manufacturing costs due
to stricter regulatory requirements. The favourable
sales mix effects described above also contributed
to the rise in manufacturing costs. Increased amor-
tisation recognised on capitalised development
projects as well as higher ongoing research and
development expenses continued to have an impact.
The bulk of these expenses related to new vehicle
models in conjunction with the continued product
offensive, including the development of the iNEXT.
Third-quarter cost of sales in the previous financial
year included an expense of € 679 million recognised
for goodwill and warranty measures in connection
with the exhaust gas recirculation cooler.
17
Interim Group Free cash flow Automotive segment

Management
Report
Free cash flow Automotive segment for the period from 1 January to 30 September
Report on Economic
Position • 14
General Economic
Environment
in € million 2019 2018 Change
Automotive Segment
Cash inflow (+) / outflow (–) from operating activities 6,144 6,290 – 146
Cash inflow (+) / outflow (–) from investing activities – 5,151 – 4,175 – 976
Net investment in marketable securities and investment funds 31 – 73 104
Free cash flow Automotive segment 1,024 2,042 – 1,018
The decrease in free cash flow generated by the latter mainly in connection with the BMW   1 and
Automotive segment in the first three quarters of BMW   3 Series model changes. Following the adop-
2019 was mainly attributable to lower earnings tion of IFRS 16, lease payments are now included
and to the higher planned increase in working in cash flows from financing activities. In the first
capital compared to the previous year, whereby nine months of 2019 , this change had a positive
the latter mainly reflected the build-up of inven- effect of € 338 million on free cash flow. If IFRS 16
tories in conjunction with the introduction of new had been applied similarly in the previous year, free
and predominantly higher-value models such as cash flow would have been positively impacted by
the BMW   8  Series and X7 . Additional contribut- approximately the same amount.
ing factors were higher investments in financial
assets and property, plant and equipment, the Net financial assets comprised the following:
Net financial assets Automotive segment

• 15
in € million 30. 9. 2019 31. 12. 2018 Change
Cash and cash equivalents 10,537 8,631 1,906

Marketable securities and investment funds 4,464 4,321 143
Intragroup net financial assets 3,317 7,694 – 4,377
Financial assets 18,318 20,646 – 2,328
Less: external financial liabilities* – 3,395 – 1,158 – 2,237

Net financial assets Automotive segment 14,923 19,488 – 4,565
* Excluding derivative financial instruments.
The increase in external financial liabilities was main-

ly attributable to the recognition of lease liabilities
amounting to € 2.3 billion, recognised in connection
with the first-time application of IFRS 16. Further
information is provided in note 4 to the Interim
Group Financial Statements for the period ended
30 June 2019.
18
Interim Group
Management
Financial Services Segment credit financing business climbed by 2.1 %. Leasing
Report accounted for 33.7 % and credit financing for 66.3 % of
new business in the nine-month period under report.
Report on Economic
Position Financial Services business continues to grow
General Economic
Environment
Financial Services segment revenues continued to Business concluded during this period included
Financial Services grow between January and September 2019 on the 297,678 newly signed credit financing and leasing
Segment
back of portfolio growth and favourable currency contracts relating to pre-owned BMW and MINI brand
factors (currency-adjusted: + 3.2 %). The reduction of vehicles (2018: 306,146 contracts), down slightly year-
selling expenses and the ongoing generally stable risk on-year (– 2.8 %).
situation also contributed to the positive earnings
trend. The total volume of all new credit financing and leas-
ing contracts concluded with retail customers during
In balance sheet terms, the segment’s business vol- the nine-month period amounted to € 44,497 million,
ume increased due to currency factors and portfolio a solid increase of 7.5 % (2018: € 41,391 million).
growth in financing and leasing business with retail
customers. Compared to the end of the previous financial year,
the Financial Services segment’s worldwide contract
portfolio with retail customers grew slightly by 3.4 % to
New business with retail customers remains buoyant 5,414,506 contracts at 30 September 2019 (31 Decem-
Financing and leasing business with retail customers ber 2018: 5,235,207 contracts). This performance
grew slightly, with the number of new contracts continues to be driven by significant growth (+ 13.7 %)
signed between January and September rising by in the China region compared to 31 December 2018.
3.7 % to 1,475,504 new contracts (2018: 1,422,558 The Europe / Middle East / Africa region (+ 4.0 %) and
new contracts). As in the previous quarters, growth the EU Bank 1 region (+ 3.5 %) also recorded growth.
was largely attributable to the higher volume of credit The contract portfolio with retail customers remained
financing business in China. New leasing business at a similar level to the end of the financial year 2018
grew by a solid 7.0 %, primarily on the back of strong (+ 0.3 %) in the Americas region and decreased by 1.9 %
performances in Europe and the USA. Overall, new in the Asia / Pacific region.
Financial Services segment at a glance

• 16
New contracts with retail customers 504,217 490,347 2.8

Revenues 2 € million 7,471 7,219 3.5
Profit before financial result (EBIT) 2 € million 606 528 14.8
Profit before tax 2 € million 597 549 8.7
2019 2018 Change in %
New contracts with retail customers 1,475,504 1,422,558 3.7

Revenues 2 € million 21,981 20,807 5.6
Profit before financial result (EBIT) 2 € million 1,860 1,694 9.8
Profit before tax 2 € million 1,797 1,705 5.4
30. 9. 2019 31. 12. 2018 Change in %
Contract portfolio with retail customers 5,414,506 5,235,207 3.4

Business volume in balance sheet terms 2, 3 € million 138,917 133,147 4.3
1
EU Bank comprises BMW Bank GmbH, its branches in Italy, Spain and Portugal and its subsidiary in France.
2
3
Calculated on the basis of the lines Leased products and Receivables from sales financing (current and non-current) of the Financial Services segment balance sheet.
19
Interim Group During the first nine months of the year, 51.4 %* * The calculation
Management only includes
Report of new BMW Group vehicles were either leased or automobile mar-
financed by the Financial Services segment (2018: kets in which the
Report on Economic Financial Services
Position 49.4 %; + 2.0 percentage points), whereby the increase segment is repre-
General Economic
Environment
was primarily attributable to growth in credit financ- sented by a con-
solidated entity or
Financial Services ing business in China. a branch office.
Segment
Slight growth in fleet business

In the fleet management business, the BMW Group –
operating under the brand name Alphabet – is one of
Europe’s foremost leasing and full-service providers.
Alphabet offers leasing and financing arrangements
as well as other specific services to commercial cus-
tomers. A portfolio of 711,524 contracts was in place
at 30 September 2019 (31 December 2018: 700,080
contracts; + 1.6 %).
Dealership financing slightly down

The total volume of dealership financing decreased
slightly by 4.0 % during the nine-month period to
€ 19,619 million (31 December 2018: € 20,438 million).
20
Interim Group
Management
Report
REPORT OUTLOOK
Report on Outlook,
Risks and
Opportunities
ON OUTLOOK,
RISKS AND
Outlook
The report on outlook, risks and o pportunities
describes the expected development of the
OPPORTUNITIES BMW Group, including the significant risks and

opportunities, from a Group management perspec-
tive. It contains forward-looking statements based
Global automobile markets expected on expectations and assessments that are subject to
to be down on previous year’s level uncertainty. As a result, actual outcomes, including
those attributable to political, legal and economic
BMW Group confirms developments, could differ positively or negatively
revised outlook from those described below. Further information
on this topic is provided in the Annual Report 2018
(Outlook, pp. 84, Risks and Opportunities, pp. 90).
21
Interim Group Overall assessment by Group management expected to fall within a range of 4.5 to 6.5 % in 2019,
Management
Report Although business conditions will remain volatile, the 1 to 1.5 percentage points below the originally targeted
BMW Group confirmed its adjusted outlook for the range of 6 to 8 %. The RoCE 1 of the Automotive seg-
Report on Outlook,
Risks and financial year 2019. While on the one hand numerous ment is expected to decrease significantly. The RoE 2
Opportunities
Outlook
new automobile and motorcycle models as well as for the Financial Services segment should remain at
an expanded range of individual mobility-related the previous year’s level. However, both performance
services are likely to provide additional momentum, indicators will be above their long-term targets of 26 %
on the other hand various political and economic (RoCE) and 14 % (RoE) respectively. In the Motorcycles
challenges could well have an offsetting effect. segment, deliveries to customers are predicted to show
Research and development expenses will remain a solid increase, with the EBIT margin set to be within
at a high level in view of important future-oriented the target range of between 8 and 10 % and the RoCE
projects. Manufacturing costs are also rising due to also showing a solid year-on-year increase.
stricter regulatory requirements.
Depending on the political, legal and economic sit-
Accordingly, Group profit before tax is expected uation and the risks and opportunities described in
to decrease significantly compared to the previous the Annual Report 2018, actual business performance
year as previously announced. Against the market could differ from current expectations.
trend, Automotive segment deliveries to customers
are expected to increase slightly and reach a new Growing uncertainty, fuelled in particular by
record level. At the same time, fleet carbon dioxide unresolved political situations such as Brexit and
emissions are forecast to drop slightly. The Group international trade and customs policies, may
intends to achieve its targets with a workforce similar cause economic developments in many regions to
in size to the previous year. As a result of the provi- deviate from expected trends and outcomes, with a
sion recognised in conjunction with ongoing antitrust correspondingly significant impact on the business
proceedings, the Automotive segment EBIT margin is performance of the BMW Group.
BMW Group key performance indicators

• 17
2018 2018 2019

reported adjusted 3 Outlook 4
Group
Profit before tax € million 9,815 9,627 significant decrease
in line with last
Workforce at year-end 134,682 – year’s level
Automotive segment
Deliveries to customers 5 units 2,490,664 – slight increase
Fleet emissions 6 g CO2 / km 128 – slight reduction
EBIT margin % 7.2 – between 4.5 and 6.5
Return on capital employed 1 % 49.8 – significant decrease
Motorcycles segment
Deliveries to customers units 165,566 – solid increase
EBIT margin % 8.1 – between 8 and 10
Return on capital employed 1 % 28.4 – solid increase

in line with last
Return on equity 2 % 14.8 – year’s level
1
RoCE in the Automotive and Motorcycles segments is measured on the basis of relevant segment profit before financial result and the average amount of capital employed in the segment concerned.
Capital employed corresponds to the sum of all current and non-current operational assets, less liabilities that do not incur interest.
2
RoE in the Financial Services s egment is calculated as segment profit before taxes, divided by the average amount of equity capital attributable to the Financial Services segment balance sheet.
3
4
Based on adjusted figures.
5
Including the joint venture BMW Brilliance Automotive Ltd., S henyang (2018: 459,581 units).
6
EU-28.
22
Interim Group
Management
RISKS AND colluded to avoid competition in developing systems
to clean the emissions of petrol and diesel passenger
Report
Report on Outlook,
OPPORTUNITIES cars. The ongoing investigations concern only poten-
Risks and tial violations of competition law and not deliberate
Opportunities
Risks and
unlawful manipulation of the emission control system.
Opportunities The Statement of Objections leads the BMW Group
to believe that it is probable (“more likely than not”)
As a globally operating enterprise, the BMW Group is that the Commission will issue a significant fine. If
exposed to a broad range of risks and opportunities. necessary, the BMW Group will contest the Com-
The Group’s corporate success is based on leveraging mission’s allegations with all the legal means at its
perceived opportunities as they present themselves. In disposal. In accordance with International Financial
order to drive growth, boost profitability, bolster effi- Reporting Standards, a provision of approximately
ciency and work in a sustainable way going forward, € 1.4 billion was recognised in the first quarter of 2019
the BMW Group also needs to take calculated risks. to take account of financial impacts that cannot yet
be definitively assessed. Furthermore, the progress of
Compared with the overall risk situation presented in the Brexit negotiations and developments in global
the Group Management Report 2018, the assessment trade policy will continue to be closely monitored and
of legal risks in conjunction with antitrust allega- factored into the Group’s forecasts as deemed appro-
tions made against five German car manufacturers priate. Further information on risks and opportunities
has become more concrete following receipt of the as well as on the methods employed to manage them
Statement of Objections from the EU Commission. is also available in the “Report on risks and oppor-
The EU Commission alleges that the manufacturers tunities” section of the Annual Report 2018 (pp. 90).
Fuel consumption and CO2 emissions information

• 18
Electric power
Fuel consumption CO2 emissions consumption
in l / 100 km in g / km in kWh / 100 km
Model (combined) (combined) (combined)
MINI
MINI Cooper SE Countryman ALL4 2.1 – 1.9 47 – 43 13.9 – 13.5
MINI Cooper SE – – 16.8 – 14.8
Rolls-Royce
Cullinan 15 341 –
INTERIM GROUP
FINANCIAL STATEMENTS
Page 24 Income Statement
Page 28 Balance Sheet
Page 30 Cash Flow Statement
3
24
Interim Group
Financial
BMW GROUP
Statements
BMW Group
INCOME STATEMENT
Income Statement
Income Statements for Group and Segments for the period from 1 January to 30 September
• 19
Group Automotive Motorcycles
in € million 2019 2018 * 2019 2018 2019 2018
Revenues 74,844 72,373 64,853 62,629 1,871 1,658

Cost of sales – 61,674 – 58,495 – 55,193 – 52,342 – 1,460 – 1,267
Gross profit 13,170 13,878 9,660 10,287 411 391
Selling and administrative expenses – 6,665 – 6,800 – 5,511 – 5,621 – 186 – 184
Other operating income 455 514 461 536 2 2
Other operating expenses – 1,881 – 424 – 1,936 – 472 – 1 – 1
Profit / loss before financial result 5,079 7,168 2,674 4,730 226 208
Result from equity accounted investments 379 506 379 506 – –
Interest and similar income 102 113 277 247 1 –
Interest and similar expenses – 297 – 276 – 472 – 380 – 5 – 3
Other financial result – 200 316 131 243 – –
Financial result – 16 659 315 616 – 4 – 3
Profit / loss before tax 5,063 7,827 2,989 5,346 222 205
Income taxes – 1,493 – 2,060 – 875 – 1,416 – 70 – 54
Profit / loss from continuing operations 3,570 5,767 2,114 3,930 152 151
Profit / loss from discontinued operations 44 – 22 44 – 22 – –
Net profit / loss 3,614 5,745 2,158 3,908 152 151
Attributable to minority interest 78 74 19 26 – –
Attributable to shareholders of BMW AG 3,536 5,671 2,139 3,882 152 151
Basic earnings per share of common stock in € 5.37 8.62
Basic earnings per share of preferred stock in € 5.38 8.63
Dilutive effects – –
Diluted earnings per share of common stock in € 5.37 8.62
Diluted earnings per share of preferred stock in € 5.38 8.63
* Prior year’s figures adjusted due to a change in accounting policy in connection with the adoption of IFRS 16; see note 4 to the Interim Group Financial Statements at 30 June 2019.
25
Financial Services Other Entities Eliminations
2019 2018 * 2019 2018 2019 2018 *
21,981 20,807 4 4 – 13,865 – 12,725 Revenues

– 19,170 – 18,094 – – 14,149 13,208 Cost of sales
2,811 2,713 4 4 284 483 Gross profit
– 966 – 985 – 17 – 18 15 8 Selling and administrative expenses
54 30 82 95 – 144 – 149 Other operating income
– 39 – 64 – 62 – 59 157 172 Other operating expenses
1,860 1,694 7 22 312 514 Profit / loss before financial result
– – – – – – Result from equity accounted investments
1 2 1,142 838 – 1,319 – 974 Interest and similar income
– 4 – 7 – 1,059 – 812 1,243 926 Interest and similar expenses
– 60 16 – 271 57 – – Other financial result
– 63 11 – 188 83 – 76 – 48 Financial result
1,797 1,705 – 181 105 236 466 Profit / loss before tax
– 529 – 363 55 – 42 – 74 – 185 Income taxes
1,268 1,342 – 126 63 162 281 Profit / loss from continuing operations
– – – – – – Profit / loss from discontinued operations
1,268 1,342 – 126 63 162 281 Net profit / loss
59 48 – – – – Attributable to minority interest
1,209 1,294 – 126 63 162 281 Attributable to shareholders of BMW AG
Basic earnings per share of common stock in €
Basic earnings per share of preferred stock in €
Dilutive effects
Diluted earnings per share of common stock in €
Diluted earnings per share of preferred stock in €
26
Interim Group
Financial
BMW GROUP
Statements
BMW Group
INCOME STATEMENT
Income Statement
Income Statements for Group and Segments for the period from 1 July to 30 September
• 20
in € million 2019 2018 * 2019 2018 2019 2018
Revenues 26,667 24,715 23,016 21,111 558 476

Cost of sales – 22,098 – 20,761 – 19,631 – 18,383 – 461 – 379
Gross profit 4,569 3,954 3,385 2,728 97 97
Selling and administrative expenses – 2,242 – 2,281 – 1,835 – 1,867 – 63 – 65
Other operating income 140 202 153 216 2 1
Other operating expenses – 178 – 153 – 188 – 147 – 1 –
Profit / loss before financial result 2,289 1,722 1,515 930 35 33
Result from equity accounted investments 191 101 191 101 – –
Interest and similar income 25 39 86 84 – –
Interest and similar expenses – 106 – 102 – 165 – 140 – – 2
Other financial result – 151 62 – 94 28 – –
Financial result – 41 100 18 73 – – 2
Profit / loss before tax 2,248 1,822 1,533 1,003 35 31
Income taxes – 702 – 420 – 470 – 204 – 15 – 2
Profit / loss from continuing operations 1,546 1,402 1,063 799 20 29
Profit / loss from discontinued operations – – 15 – – 15 – –
Net profit / loss 1,546 1,387 1,063 784 20 29
Attributable to minority interest 25 29 6 13 – –
Attributable to shareholders of BMW AG 1,521 1,358 1,057 771 20 29
Basic earnings per share of common stock in € 2.31 2.07
Basic earnings per share of preferred stock in € 2.31 2.07
Dilutive effects – –
Diluted earnings per share of common stock in € 2.31 2.07
Diluted earnings per share of preferred stock in € 2.31 2.07
27
2019 2018 * 2019 2018 2019 2018 *
7,471 7,219 1 1 – 4,379 – 4,092 Revenues

– 6,512 – 6,306 – – 4,506 4,307 Cost of sales
959 913 1 1 127 215 Gross profit
– 348 – 349 – 7 – 4 11 4 Selling and administrative expenses
14 4 33 30 – 62 – 49 Other operating income
– 19 – 40 – 26 – 21 56 55 Other operating expenses
606 528 1 6 132 225 Profit / loss before financial result
– – – – – – Result from equity accounted investments
– – 383 313 – 444 – 358 Interest and similar income
– 1 – 2 – 361 – 303 421 345 Interest and similar expenses
– 8 23 – 49 11 – – Other financial result
– 9 21 – 27 21 – 23 – 13 Financial result
597 549 – 26 27 109 212 Profit / loss before tax
– 190 – 79 7 – 18 – 34 – 117 Income taxes
407 470 – 19 9 75 95 Profit / loss from continuing operations
– – – – – – Profit / loss from discontinued operations
407 470 – 19 9 75 95 Net profit / loss
19 16 – – – – Attributable to minority interest
388 454 – 19 9 75 95 Attributable to shareholders of BMW AG
Basic earnings per share of common stock in €
Basic earnings per share of preferred stock in €
Dilutive effects
Diluted earnings per share of common stock in €
Diluted earnings per share of preferred stock in €
28
Interim Group
Financial
BMW GROUP
Statements
BMW Group
BALANCE SHEET
Balance Sheet
in € million 30. 9. 2019 1. 1. 2019 1

31. 12. 2018 2
30. 9. 2019 31. 12. 2018 30. 9. 2019 31. 12. 2018
Assets
Intangible assets 11,398 10,971 10,971 10,892 10,472 114 95
Property, plant and equipment 22,264 22,163 19,801 21,785 19,372 384 399
Leased products 41,299 38,259 38,259 – – – –
Investments accounted for using the equity method 4,057 2,624 2,624 4,057 2,624 – –
Other investments 705 739 739 4,884 4,843 – –
Receivables from sales financing 49,579 48,313 48,313 – – – –
Financial assets 1,894 1,010 1,010 185 216 – –
Deferred tax 2,219 1,640 1,638 3,358 3,043 – –
Other assets 1,675 1,299 1,299 2,655 5,085 34 33
Non-current assets 135,090 127,018 124,654 47,816 45,655 532 527
Inventories 17,359 13,639 13,639 16,012 12,462 615 568

Trade receivables 2,866 2,546 2,546 2,575 2,287 134 167
Receivables from sales financing 40,165 38,700 38,700 – – – –
Financial assets 6,159 6,675 6,675 4,826 4,988 – –
Current tax 1,933 1,378 1,378 672 618 – –
Other assets 10,203 9,906 9,906 27,734 22,016 1 2
Cash and cash equivalents 12,998 10,979 10,979 10,537 8,631 12 12
Assets held for sale – 463 461 – 461 – –
Current assets 91,683 84,286 84,284 62,356 51,463 762 749
Total assets 226,773 211,304 208,938 110,172 97,118 1,294 1,276
Equity and liabilities

Subscribed capital 658 658 658
Capital reserves 2,118 2,118 2,118
Revenue reserves 56,049 55,830 55,862
Accumulated other equity – 1,251 – 1,338 – 1,338
Equity attributable to shareholders of BMW AG 57,574 57,268 57,300
Minority interest 556 529 529

Equity 58,130 57,797 57,829 38,123 39,778 – –
Pension provisions 3,373 2,330 2,330 2,883 2,089 96 64

Other provisions 5,074 5,530 5,530 4,864 5,354 78 70
Deferred tax 896 1,762 1,773 704 1,016 – –
Financial liabilities 73,704 66,744 64,772 2,247 1,017 – –
Other liabilities 4,992 5,293 5,293 8,071 7,558 509 506
Non-current provisions and liabilities 88,039 81,659 79,698 18,769 17,034 683 640
Other provisions 7,196 5,871 5,871 6,748 5,433 107 101

Current tax 1,797 1,158 1,158 717 933 – –
Financial liabilities 42,724 39,260 38,825 2,123 879 – –
Trade payables 10,582 9,669 9,669 9,192 8,360 375 348
Other liabilities 18,305 15,826 15,826 34,500 24,639 129 187
Liabilities in conjunction with assets held for sale – 64 62 – 62 – –
Current provisions and liabilities 80,604 71,848 71,411 53,280 40,306 611 636
Total equity and liabilities 226,773 211,304 208,938 110,172 97,118 1,294 1,276
1
The figures to 1 January 2019 have been adjusted, based on the first-time application of IFRS 16.
2
29
30. 9. 2019 31. 12. 2018 2
30. 9. 2019 31. 12. 2018 30. 9. 2019 31. 12. 2018 2
Assets
391 403 1 1 – – Intangible assets
95 30 – – – – Property, plant and equipment
49,126 46,114 – – – 7,827 – 7,855 Leased products
– – – – – – Investments accounted for using the equity method
1 1 6,711 6,660 – 10,891 – 10,765 Other investments
49,626 48,333 – – – 47 – 20 Receivables from sales financing
95 138 1,708 695 – 94 – 39 Financial assets
526 485 98 28 – 1,763 – 1,918 Deferred tax
3,307 2,835 36,859 33,956 – 41,180 – 40,610 Other assets
103,167 98,339 45,377 41,340 – 61,802 – 61,207 Non-current assets
732 609 – – – – Inventories

155 91 2 1 – – Trade receivables
40,165 38,700 – – – – Receivables from sales financing
1,063 1,325 319 460 – 49 – 98 Financial assets
72 91 1,189 669 – – Current tax
5,327 5,081 58,686 48,775 – 81,545 – 65,968 Other assets
2,208 1,985 241 351 – – Cash and cash equivalents
– – – – – – Assets held for sale
49,722 47,882 60,437 50,256 – 81,594 – 66,066 Current assets
152,889 146,221 105,814 91,596 – 143,396 – 127,273 Total assets
Equity and liabilities

Subscribed capital
Capital reserves
Revenue reserves
Accumulated other equity
Equity attributable to shareholders of BMW AG
Minority interest
15,227 14,806 22,080 20,683 – 17,300 – 17,438 Equity
32 49 362 128 – – Pension provisions

132 106 – – – – Other provisions
4,062 4,576 1 22 – 3,871 – 3,841 Deferred tax
17,966 19,170 53,585 44,624 – 94 – 39 Financial liabilities
37,406 36,333 174 1,168 – 41,168 – 40,272 Other liabilities
59,598 60,234 54,122 45,942 – 45,133 – 44,152 Non-current provisions and liabilities
332 328 9 9 – – Other provisions

1,063 208 17 17 – – Current tax
27,219 25,705 13,431 12,339 – 49 – 98 Financial liabilities
1,002 950 13 11 – – Trade payables
48,448 43,990 16,142 12,595 – 80,914 – 65,585 Other liabilities
– – – – – – Liabilities in conjunction with assets held for sale
78,064 71,181 29,612 24,971 – 80,963 – 65,683 Current provisions and liabilities
152,889 146,221 105,814 91,596 – 143,396 – 127,273 Total equity and liabilities
30
Interim Group
Financial
BMW GROUP
Statements
BMW Group
CASH FLOW STATEMENT
Cash Flow Statement
Condensed Cash Flow Statement for the period from 1 January to 30 September
• 21
Group
in € million 2019 2018*
Net profit 3,614 5,745

Profit / loss from discontinued operations – 44 22
Depreciation and amortisation of tangible, intangible and investment assets 4,398 3,753
Change in provisions 943 – 191
Change in leased products and receivables from sales financing – 3,131 – 3,783
Change in deferred taxes – 1,166 422
Changes in working capital – 2,727 – 1,965
Other 717 549
Cash inflow / outflow from operating activities 2,604 4,552
Total investment in intangible assets and property, plant and equipment – 4,783 – 4,681
Net investment in marketable securities and investment funds 10 153
Other – 546 323
Cash inflow / outflow from investing activities – 5,319 – 4,205
Cash inflow / outflow from financing activities 4,719 – 411
Effect of exchange rate on cash and cash equivalents – 17 24
Effect of changes in composition of Group on cash and cash equivalents 32 – 24
Change in cash and cash equivalents 2,019 – 64
Cash and cash equivalents as at 1 January 10,979 9,039

Cash and cash equivalents as at 30 September 12,998 8,975
31
Automotive Financial Services
2019 2018 2019 2018*
2,158 3,908 1,268 1,342 Net profit

– 44 22 – – Profit / loss from discontinued operations
4,280 3,657 37 25 Depreciation and amortisation of tangible, intangible and investment assets
438 147 798 34 Change in provisions
– – – 2,945 – 3,857 Change in leased products and receivables from sales financing
– 39 – 29 – 713 161 Change in deferred taxes
– 2,603 – 2,193 – 139 193 Changes in working capital
1,954 778 93 – 947 Other
6,144 6,290 – 1,601 – 3,049 Cash inflow / outflow from operating activities
– 4,690 – 4,593 – 9 – 7 Total investment in intangible assets and property, plant and equipment
– 31 73 41 50 Net investment in marketable securities and investment funds
– 430 345 3 6 Other
– 5,151 – 4,175 35 49 Cash inflow / outflow from investing activities
930 – 3,103 1,779 3,110 Cash inflow / outflow from financing activities
– 44 – 26 10 – 13 Effect of exchange rate on cash and cash equivalents
27 – 25 – – Effect of changes in composition of Group on cash and cash equivalents
1,906 – 1,039 223 97 Change in cash and cash equivalents
8,631 7,157 1,985 1,856 Cash and cash equivalents as at 1 January

10,537 6,118 2,208 1,953 Cash and cash equivalents as at 30 September
OTHER
INFORMATION
Page 33 Contacts
4
33
Other
Information
CONTACTS Business and Finance Press
Telephone + 49 89 382-2 45 44
Contacts + 49 89 382-2 41 18
Fax + 49 89 382-2 44 18
E-mail [email protected]
Investor Relations
Telephone + 49 89 382-2 53 87
Fax + 49 89 382-1 46 61
E-mail [email protected]
The BMW Group on the Internet

Further information about the BMW Group is
available online at  www.bmwgroup.com.
Investor Relations information is available directly
at  www.bmwgroup.com / ir.
Information about the various BMW Group brands
is available at  www.bmw.com,  www.mini.com
and  www.rolls-roycemotorcars.com.
This version of the Quarterly Statement is a translation

from the German version. Only the original German
version is binding.
PUBLISHED BY
Bayerische Motoren Werke

Aktiengesellschaft
80788 Munich
Germany
Telephone +49 89 382-0

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QUARTERLY STATEMENT

30 September 2019

Page 20 Report on Outlook, Risks and Opportunities

3rd quarter 2019 3rd quarter 2018 Change in %

3rd quarter 2019 3rd quarter 2018 Change in %

Financial Services segment

Free cash flow Automotive segment € million 714 98 –

Group revenues 3 € million 26,667 24,715 7.9

Group profit before tax (EBT) 3 € million 2,248 1,822 23.4

Group income taxes 3 € million – 702 – 420 – 67.1

Financial Services segment

Free cash flow Automotive segment € million 1,024 2,042 – 49.9

Group revenues 3 € million 74,844 72,373 3.4

Group profit before tax (EBT) 3 € million 5,063 7,827 – 35.3

Group income taxes 3 € million – 1,493 – 2,060 27.5

Page 20 Report on Outlook, Risks and Opportunities

Page 22 Risks and Opportunities

Vehicle deliveries reach

International automobile markets

2019 2018 Change in %

2019 2018 Change in %

Interim Group At € 4,569 million (2018: € 3,954 million; + 15.6 %), Financing activities

The nine-month financial result was significantly

Furthermore, other financial result was affected by a

Group profit before tax was impacted by the same set

Automotive segment at a glance

3rd quarter 2019 3rd quarter 2018 Change in %

Deliveries 1, 3 units 613,361 592,303 3.6

Deliveries 2, 3 units 1,866,198 1,834,810 1.7

Automotive segment deliveries of vehicles by region and market

Europe 259,051 253,935 2.0 809,497 816,037 – 0.8

The BMW X family remained highly popular, with

BMW 1 Series 128,159 149,659 – 14.4

Automotive segment deliveries of MINI vehicles by model variant

MINI Hatch (3- and 5-door) 132,363 133,963 – 1.2

Automotive segment deliveries of Rolls-Royce vehicles by model variant

Phantom 455 578 – 21.3

Automotive segment deliveries of electrified models

BMW i 30,980 25,520 21.4

* Fuel ­consumption and CO2 emissions information are available on page 22.

Interim Group Free cash flow Automotive segment

Net financial assets Automotive segment

in € million 30. 9. 2019 31. 12. 2018 Change

Cash and cash equivalents 10,537 8,631 1,906

Less: external financial liabilities* – 3,395 – 1,158 – 2,237

* Excluding derivative financial instruments.

The increase in external financial liabilities was main-

Financial Services segment at a glance

3rd quarter 2019 3rd quarter 2018 Change in %

New contracts with retail customers 504,217 490,347 2.8

New contracts with retail customers 1,475,504 1,422,558 3.7

30. 9. 2019 31. 12. 2018 Change in %

Contract portfolio with retail customers 5,414,506 5,235,207 3.4

Slight growth in fleet business

Dealership financing slightly down

­OPPORTUNITIES BMW Group, including the significant risks and

BMW Group key performance indicators

2018 2018 2019

Interim Group At € 4,569 million (2018: € 3,954 million; + 15.6 %), Financing activities

The BMW X family remained highly popular, with

* Fuel consumption and CO2 emissions information are available on page 22.

OPPORTUNITIES BMW Group, including the significant risks and

Fuel consumption and CO2 emissions information