Q4 2024 Bayerische Motoren Werke AG Earnings Call
Operator: Basically on the cold press screens. When you are in the virtual waiting room, our assistants, together with you, will check whether the video communication functions properly. Our assistants will actively contact you, so you are not required to do anything while in the waiting room.
Okay.
When you are in the virtual waiting room, all of the systems together with you will check whether the video communication functions properly I want assistance will actively contact you. So.
You are not required to do anything while in the waiting room.
Yes.
Operator: I ask for your understanding that we will reject any contributions or terminate communication early if the functionality of the video communication is not ensured. After the successful check of functionality, please remain in the virtual waiting room until I call your name. You will then be joined to the live stream with video and audio, and you can start speaking. You will be clearly visible and audible on the LED wall behind me for all those present here on site. Now, if, for technical reasons, the picture on the LED wall is not in sync with what you are actually saying, please do not pay any heed.
Speaker Change: I ask for your understanding that we will reject any contributions or terminates communication early if the functionality of the video communication is not insured after the successful checkout functionality. Please remain into virtual waiting room until I call. Your name you will then be joined to the live stream.
With video and audio and you can start speaking.
Speaker Change: You will be clearly visible and audible on the LGD wall behind me for all those present here on site.
Speaker Change: So.
Speaker Change: Now if you think the reason the picture on the Diebold is not in sync with what you are actually saying please do not pay any heat don't let it irritates you in principle those here in the meeting room and all other shareholders watching online do not notice this delay.
Operator: Don't let it irritate you. In principle, those here in the meeting room and all other shareholders watching online do not notice this delay.
Speaker Change: Many dominant.
Operator: Ladies and gentlemen, It is our objective. that structure and procedure of this Annual General Meeting closely follow those of an in-person meeting.
Speaker Change: Ladies and gentlemen.
Speaker Change: It is our objective.
Speaker Change: Is that structure and procedure of this annual general meeting we're closely followed those over the in person meeting.
Operator: Therefore, as Chair of the meeting, I determine that the right to request information under section 131 paragraph 1 and the right to ask follow-up questions under section 131 paragraph 1d of the German Stock Corporation Act are to be exercised exclusively while making a statement, like during an in-person meeting. until the end of the 9th of May, which was last Thursday, you also had the opportunity to submit comments in writing or as video statements. All in all, we received four statements. Three in writing and one video statement. All statements can be accessed through our online service.
Speaker Change: Therefore, as chair of the meeting I determined that the right to request information under section 131, paragraph one and the rights to ask follow up questions under section 131 paragraph one of the German Stock Corporation Act ought to be exercised exclusively while making a statement like.
During an in person meeting.
Speaker Change: Until the end of the ninth of May which was last Thursday, you also had the opportunity to submit comments in writing or video site.
Speaker Change: All in all we received full statements three in writing and one video segment.
Speaker Change: All statements can be accessed through our online service.
Operator: Please note that for legal reasons, questions included in comments cannot be treated as having been asked. If you wish to ask these questions effectively during the meeting, you are welcome to do so as part of a statement.
Speaker Change: Please note that for legal reasons questions included in Commons cannot be treated as having been us if you wish to ask these questions effectively during the meeting.
Welcome to do so as part of our statement.
Speaker Change: So you can target.
Operator: Until 30 days before today's AGM, it was possible to submit motions to supplement the agenda. However, we have not received any such requests to supplement the agenda. In addition, it was possible to submit counter-motions or election proposals related to resolutions proposed by the management up until 14 days before the Annual General Meeting. We have received a total of four counter-motions from the Association of Effective Shareholders and have published them on our website ahead of this meeting. You can access them also during this meeting. These counter-motions are deemed to have been submitted during this meeting.
Speaker Change: Until 30 days before today's AGM it was possible to separate motions to supplement the agenda. However.
Speaker Change: However, we have not received any such requests to supplement the agenda.
In addition, it was possible to submit counter motions or election proposals related to resolutions proposed by the management.
Speaker Change: Until 14 days before the annual General meeting we have received a total of four counter motions from the association of ethic to shareholders and have published them on our website ahead of this meeting.
Speaker Change: You can access them also during this meeting these counter motions are deemed to have been submitted during this meeting.
Operator: If you consider a resolution of the Annual General Meeting to be null and void or against the law, you have opportunity until the end of the AGM to lodge objections in the online service, which will be recorded by the notary public. The same applies to a request for information pursuant to section 131 paragraph 5 of the German Stock Corporation Act. A request pursuant to section 131 paragraph 4 of the Stock Corporation Act can be transmitted via the online service until the end of the general debate. To do so, please press the button marked accordingly.
Speaker Change: If you consider a resolution of the annual general meeting to be null and void or against the law you have opportunity until the end of the AGM to larger objections and the online service, which will be recorded by the notary Republic. The same applies to our request for information pursuant to section 131 paragraph.
Speaker Change: Five of the German Stock Corporation Act.
Speaker Change: Quest pursuant to section 131 paragraph four if the stock Corporation Act can be transmitted via the online service until the end of the general debate to do so please press the button marked accordingly.
Speaker Change: Okay.
Operator: We are not taking verbatim minutes of today's Annual General Meeting. Only the questions asked by shareholders are written down word by word to enable us to prepare the answers. To ensure error-free transcription, even if questions are asked quickly or indistinctly, we will briefly make audio recordings of the questions. These will be deleted after the meeting.
Speaker Change: We are not taking verbatim minutes of today's annual general meeting.
Speaker Change: The questions asked by shareholders are written down word by word to enable us to prepare the ounces.
Speaker Change: To ensure an error free transcription, even if questions are asked quickly interestingly, we will briefly make audio recordings of the questions.
These will be deleted after the meeting.
Operator: In addition, I point out that video and audio recordings of our Annual General Meeting by third parties are not permitted. Please bear with us for not allowing it.
Speaker Change: In addition, I point out that video and audio recordings of our annual General meeting by third parties are not limited please bear with us for not allowing it.
Dominic.
Operator: Ladies and gentlemen, Before we start going through the agenda, we, as is our tradition, commemorate those among our workforce and our pensioners who passed away. To do so, I ask everyone present to stand up for a moment of sympathy. during 2023. 739 active and retired colleagues of our company passed away. They have all been connected with us through our joint efforts for the company. In gratitude, we commemorate all who passed away.
Speaker Change: Ladies and gentlemen.
Speaker Change: Before we start going through the agenda.
Speaker Change: As is our tradition commemorate those among our workforce and our pensioners, who passed away and to do so I ask everyone present to stand up for a moment of sympathy.
Speaker Change: Got it.
Speaker Change: During 2023.
Speaker Change: 739 active and retired colleagues of our company passed away.
Speaker Change: They have all been connected with us through our joint efforts for the company and gratitude, we commemorate all who passed away.
Operator: Ladies and gentlemen... You commemorated the dead and their relatives. I thank you for that. Please sit down again.
Speaker Change: Ladies and gentlemen.
Speaker Change: Yeah.
Commemorated the dead and their relatives.
Speaker Change: I. Thank you for that please sit down again.
Speaker Change: You bet.
Operator: Now, I would like to give you a brief overview of the course of today's Annual General Meeting. First, I will present to you the report on the activities of the Supervisory Board during the last financial year.
Speaker Change: Now I would like to give you a brief overview of the course of today's annual General meeting first I will present to you. The report on the activities of the supervisory board during the last financial year afterwards, Mr tips.
Operator: Afterwards, Mr. Zipse, our CEO, will report on the financial year just ended. In addition, he will present to you an outlook on plans the company has for the future. After that, Walter Mertl, our CFO, will inform you about the share buybacks of our company and other financial issues. In our speeches, we will also address the proposals which the Board of Management and the Supervisory Board will present to the Annual General Meeting today for resolution. Following that, we will begin the general debate. Shareholders can give notice of statements they wish to make via the online service.
Mr tips: He will report on the financial year. Just ended in addition, he will present to you an outlook on plans the company has for the future.
Volatile Metal: After that volatile metal our CFO will inform you about the share buybacks of our company and other financial issues.
Mr tips: Yeah.
Mr tips: And our speeches.
Mr tips: We'll also address the proposals, which the board of management and the Supervisory Board will presented to the annual General meeting site for resolution following that.
We'll begin the general debate shareholders can give notice of statements. They wish to make via the online service I recommend that shareholders, who wish to take the floor to register already now if possible or at least as early as possible.
Operator: I recommend that shareholders who wish to take the floor to register already now if possible, or at least as early as is possible. The general debate will be followed by the proposals for resolution and the election proposals. We will vote on these proposals in one voting round. When the voting results are available, I will announce them. In addition, the details of the voting results are shown on the screen and will be published on our Internet page after the annual general meeting.
Mr tips: The general debate will be followed by the proposals for resolution and the election proposals we will vote on these proposals in one voting round.
Mr tips: When the voting results are available.
Speaker Change: Answer them.
Mr tips: In addition, the.
Details of the voting results are shown on the screen and will be published on our Internet page after the annual general meeting.
Operator: Ladies and gentlemen, we will now go through the agenda of this Annual General Meeting.
Mr tips: Ladies and gentlemen.
We will now go through the agenda of this annual general meeting, we begin with agenda item one.
Operator: We begin with Agenda Item 1, Presentation of the Adopted Company Financial Statements and the Approved Group Financial Statements along with the Consolidated Management Report for the Company and the Group as of the 31st of December 2023 and the Report of the Supervisory Board for the financial year 2023. You can access these documents on our website. There, you will also find the explanatory report of the Board of Management on the statutory disclosures regarding takeovers and the State Bill on Corporate Governance, together with the Corporate Governance Report for Retrieval. The BMW Group Report is accessible on our website and you will also find the text version of the report of the Supervisory Board.
Mr tips: The presentation of the adopted country financial statements and the approved group financial statements along with the consolidated management report for the company and the group.
Mr tips: As of the 31st of December 2023, and the report of the Supervisory board for the financial year 2023.
Mr tips: You can access these documents on our website.
Mr tips: There you will also find the explanatory report of the board of management on the starter two disclosures regarding takeovers and the state, but on corporate governance together with the corporate governance report for retrieval.
Mr tips: Okay.
Mr tips: Our Internet site.
Mr tips: The BMW group report is accessible on our website and you will also find it takes version of sort of a vote of the supervisory board therefore to.
Operator: Therefore, permit me to restrict myself to addressing some important items I selected. I begin with the changes to the composition of the Supervisory Board since the last Annual General Meeting. During the previous year, there have been no changes regarding the shareholder representatives. At last year's Annual General Meeting, Dr. Kurt Bock was re-elected as member of the Supervisory Board for a further period of about four years. The supervisory board elected Dr. Bock to the presiding committee as a member to the personnel and nomination committees and as member and chair to the audits committee. In accordance with the German Co-Determination Act, the elections of employee representatives on the Supervisory Board were concluded in April 2024.
Mr tips: To restrict myself to addressing some important items selected.
Mr tips: Beginning with the changes to the composition of the supervisory board since the last annual General meeting.
Mr tips: During the previous year, there have been no changes regarding the shareholder representative.
Mr tips: At last year's annual General meeting Doctor could book was reelected as a member of the supervisory board for a further period of about four years.
Mr tips: Supervisory board elected talked a bulk to the presiding committee as a member to the personnel and nomination committees and as a member and chair the audit Committee.
Mr tips: But it wouldn't be.
Mr tips: In accordance with the German co determination act the elections of employee Representatives on the Supervisory Board were concluded in April 2020 form starting at the end of today's annual General meeting a new term of office of five years was therefore begin fully elected employee representatives.
Operator: Starting at the end of today's Annual General Meeting, a new term of office of five years will therefore begin for the elected employee representatives. Mrs. Christiane Benner, member of our Supervisory Board since 2014 as trade union representative, did not again stand in the elections of employee representatives to the Supervisory Board. Therefore, she will resign from the Supervisory Board at the end of this Annual General Meeting.
Mr tips: As Christiana been a member of our supervisory board since 2014 as trade Union representative did not against stand in the elections are employee representatives to the supervisory Board. Therefore, Sheba resigned from the supervisory board at the end of the supply of nurturing our meeting I would like to thank Mrs banner very warmly for many years.
Operator: I would like to thank Mrs. Benner very warmly for the many years of trusting and constructive cooperation on the Supervisory Board. Also, at the end of today's Annual General Meeting, Mr. Johan Horn, Trade Union Representative, will resign from the Supervisory Board. Dear Mr. Horn, our thanks are also extended to you for the very good cooperation our Supervisory Board. We wish you all the best for your well-deserved retirement. And finally, Mr. Bernhard Ehner, Chairman of the Works Council at the Landshut plant, will also resign from the Supervisory Board at the end of today's Annual General Meeting.
Mr tips: Trusting and constructive cooperation on the supervisory board.
Mr tips: Yeah.
Speaker Change: Also at the end of today's annual General meeting Mr. Johan Horn Trade Union Representatives will resigned from the supervisory Board Dear Mr. Horn. Our things are also extended to you for the very good cooperation our supervisory board. We wish you all the best for your well deserved retirement.
Mr tips: Ireland.
Mr tips: And finally.
Mr tips: Mr. Bernard <unk> chairman.
Chairman of the works Council at the Lancet plant, but also resigned from the supervisory board at the end of today's annual General meeting even.
Operator: Dear Mr. Ebener, our warmest thanks also go to you for our trusting cooperation.
Mr tips: Our wellness. Thanks also go to you for our trusting cooperation.
Operator: Now, I would like to introduce to you the newly elected employee representatives who will take up their duties after the end of today's annual general meeting. We are delighted that Professor Dr. Johanna Wenckebach will join our supervisory board. Ms. Wenckebach is Professor of Jurisprudence at the University of Labour in Frankfurt am Main with a focus on labour and employment law. Moreover, she is acting as legal counsel for the IG Metal Trade Union and was elected to the supervisory board as a trade union representative. A warm welcome to you, Professor Wenckebach.
No no.
Mr tips: I would like to introduce to you the newly elected the employee Representatives, who will take up that U. T is also the end of today's annual General meeting.
Mr tips: Yeah.
Mr tips: We are delighted that.
Mr tips: Professor Doctor Johan I think about it.
Mr tips: He will join our supervisory board.
Speaker Change: MS Van Kibali is professor of jurisprudence at the University of Labor in Frankfurt and mine with a focus on labor and employment law.
Speaker Change: Moreover, she is acting as legal counsel for the metal trade Union and was elected to the supervisory board as a trade Union representative.
Speaker Change: Welcome to you profess I think about it.
Operator: We also welcome very warmly Mr. Horst Ott as a new member of the Supervisory Board. Mr. Ott is District Manager of IG Metal Bavaria and has also been elected to the Supervisory Board as a Trade Union Representative.
Speaker Change: We also welcomed very warmly Mr host art as in you've been both the supervisory Board Mr. Art District manager of IAG metal Bavaria, and has also been elected to the supervisory board as a trade Union representative.
Operator: And finally, Mr. Ulrich Bauer has also been elected to our Supervisory Board as an Employee Representative. Mr. Bauer is a seconded member of the Works Council at the Munich Plant. Welcome to you as well.
Speaker Change: Finally, Mr <unk>.
Speaker Change: <unk> has also been elected to our supervisory board as an employee representative Mr. Power is this economy remember off the works Council at the Munich plant welcome to you as well.
Speaker Change: Also in.
Operator: In addition, I wish to congratulate the ladies and gentlemen here on the stage who represent the company's employees and have been re-elected for another period of duty. I am looking forward to continuing the constructive cooperation with you on the Supervisory Board.
Speaker Change: In addition, I wish to congratulate the ladies and gentlemen here on the stage.
Speaker Change: Represent the company's employees and have been reelected for another period of duty I'm looking forward to continuing the constructive cooperation with you on the supervisory board.
Speaker Change: Comment.
Operator: Now, let us proceed to the composition of the Board of Management, which is one of the most important duties of the Supervisory Board. last year. The supervisory board decided to re-appoint Mr. Sipse as Chairman of the Board of Management and to extend his time in office. Last year, there have been two changes in the composition of the Board of Management. After the 2023 Annual General Meeting, Dr. Nicholas Peter, our CFO of many years standing, resigned from the Board of Management in accordance with our consensus-based succession plans. At last year's Annual General Meeting, I have already provided an in-depth appreciation of Dr. Peter's outstanding service to our company.
Speaker Change: Now let US proceed to the composition of the board of management, which is one of the most important due to soft tissue provider to cold.
Speaker Change: Last year the <unk>.
Speaker Change: <unk> report decided to reappoint, Mr. Phipps as chairman of the board of management and to extend his time in office.
Speaker Change: Last year, there have been two changes in the composition of the board of management.
Speaker Change: After the 2023 annual General meeting Doctor Nicolas Peter our CFO of many years standing resigned from the board of management in accordance with our consensus basis.
Speaker Change: Session patents.
Speaker Change: At last year's annual General meeting I've already provided an in depth appreciation of Dr. Peters outstanding service to our company.
Operator: As of the 12th of May 2023, Walter Mertl has been appointed to the Board of Management as his successor. In his long-term In his long career at BMW, Mr. Mertl has, without fail, represented the company's aspiration to achieve sustainable profitability in the transformation. As of the 31st of October 2023, Peter Noether resigned from the Board of Management in accordance with our consensus-based succession plans. since taking over the Customer Brands Sales Division in 2018. Mr. Noether has resolutely and substantially advanced sales of all electric models and digitalization of the customer interface. Moreover, he got the introduction of the pioneering agency model in selected sales markets off the ground.
Speaker Change: So if the 12th of May 2023, volatile metal has been appointed to the board of management as a successor and his lungs.
In his long career at BMW, Mr. Matthew has without fail represented the company's aspiration to achieve sustainable profitability in the transformation.
Speaker Change: As of the 31st of October 2020, free Pieter Nota resigned from the board of management in accordance with our consensus based succession plans.
Speaker Change: Since taking over the customer brands sales division in 2018.
Speaker Change: Mr. Note has resolutely and substantially advanced sales of all electric models and digitalization of the customer interface. Moreover, he got the introduction of the pioneering agency model in <unk>.
Speaker Change: Electric sales market off the ground, we think Pieter nota for his great commitment and as important impulses.
Operator: We thank Peter Noether for his great commitment and his important impulse. As of the 1st of November 2023, Jochen Goller has been appointed new board member in charge of the Customer Brands Sales Division. Since 1999, Mr. Goller has been with the BMW Group and last he was in charge of the activities of the company in region China. For us, Jochen Goller is a sales manager with a wealth of international experience, contributing his special expertise in the China markets. We wish the Board of Management, in its new composition, a lucky hand in leading the company in the future like they had in the past.
Speaker Change: As of the first of November 2023.
Speaker Change: Color has been appointed a new board member in charge of the customer brands sales Division.
Mr. Cola: Since 1999, Mr. Cola has been with the BMW group and lost he wasn't charge of the activities of the company in reach in China for US Young Gala is a sales manager with a wealth of international experience contributing a special expertise in the China market.
Mr. Cola: We wish the board of management and its new composition of Lucky hand in leading the company in the future like they had in the past.
Mr. Cola: Okay.
Mr. Cola: Yeah.
Operator: Which brings me to the key activities of the Supervisory Board in the last financial year. The Supervisory Board has continuously and thoroughly monitored the management of the company. We advised the Board of Management on important issues relating to corporate governance and strategic further development of the company. At every meeting, we discussed the current situation of the company with the Board of Management in detail. One core focus of the supervisory work was on corporate strategy, including sustainability. Our special focus was on rigorous implementation of the automotive transformation in terms of electrification, digitalization and sustainability. At every meeting, the Board of Management informed us about current issues and projects relating to strategies and their current status.
Mr. Cola: Which brings me to the activities of the supervisory board in the last financial year.
Mr. Cola: Advisory Board has continuously thoroughly monitor the management of the company. We advised the board of management on important issues related to corporate governance.
Mr. Cola: Strategic further development of the company.
Mr. Cola: But every meeting we discussed the current situation of the company, where the board of management in detail.
Mr. Cola: One core focus of the supervisor board work was on corporate strategy, including sustainability.
Mr. Cola: Our special focus was on rigorous implementation of the automotive transformation in terms of electrification and digitalization and sustainability.
But every meeting the board of management informed us about current issues on projects relating to our strategies and the current status.
Operator: On a regular basis we dealt with significant issues regarding the environment, social ungovernance, ESG for short, both in the reports but also in the context of proposed resolutions. You will find a detailed overview in our investor presentation which is available to the public on our website. Sustainable production, the energy transformation at the BMW Group and decarbonisation of BMW Group sites have also been on our agenda, just like employer attractiveness and governance issues. The Chief Compliance Officer informed us on a regular basis regarding the status, maturity and further development of the compliance management system in the company.
Mr. Cola: On a regular basis, we dealt with significant issues regarding the environment, social and governance ESG for sure both in their reports, but also in the context of proposed resolutions.
Mr. Cola: You will find the detailed overview and our investor presentation, which is available to the public on our website soon.
Sustainable production the energy transformation that the BMW group and Decarbonization of BMW sites have also been on our agenda, just like employer attractiveness and governance issues.
Mr. Cola: The Chief compliance officer informed us on a regular basis regarding the state's maturity and further development of our compliance management system in the company.
Operator: And in addition, we also dealt with the German Supply Chain Duty of Care Act in great detail. In our Declaration of Compliance with the German Corporate Governance Code, Board of Management and Supervisory Board again stated that all recommendations and all suggestions of the Code will be observed. We dealt in detail with the remuneration of the board of management members at meetings of the personnel committee and the full supervisory board. Environmental, social and governance objectives once again played an important role herein.
Mr. Cola: In addition, we're also dealt with a German supplier chain duty of care Act in great detail.
Mr. Cola: And declaration of compliance with the German corporate governance code Board of management and Supervisory Board again stated that all recommendations on all suggestions of the code will be observed.
Mr. Cola: We dealt in detail with the remuneration of the board of management members at meetings of your personnel Committee and the supervisory board governance, environmental social and governance objectives. Once again played an important role here.
Operator: I will come back to address the remuneration on the agenda item 7 when it comes to discuss the remuneration report. We also keep an eye on the professional development of the Supervisory Board members. Thus, for instance, in the context of advanced training activities, we had an in-depth look at non-financial reporting and CO2 emissions along the supply chain, as well as we engaged in a dialogue with a Chinese economic expert. Key issues of the individual divisions were also on the agenda of our meetings. This included reporting on group finance, the financial services segment, HR strategies, as well as an in-depth sales report regarding important markets on the American and Asian regions.
Mr. Cola: I will come back to address the remuneration under agenda item seven when it comes to discuss the remuneration report.
Mr. Cola: We also keep an eye on the professional development all of the supervisory Board members.
Mr. Cola: For instance, in the context of advanced trading activities, we had an in depth look at non financial reporting.
Mr. Cola: Two emissions along the supply chain as well as we engaged in the dialogue with the Chinese economic ex broken.
Mr. Cola: Key issues.
In the vision individuals divisions were also on the agenda of our meeting this included reporting group Florence.
Mr. Cola: Financial services segment, HR strategies as well as an in depth sales report regarding important markets on the American and Asian regions.
Operator: In the detailed risk report, a significant focus was on geopolitical risks, especially those regarding purchasing, procurement, supply chains and sales markets, as well as on measures to reduce these risks. We also discuss in detail topics like data information security, focusing above all on IT security. the Board of Management, presented their long-term business development plans to the supervisor board and explained them in detail. Here, one focal point was on ensuring growth and earnings in the context of the electromobility ramp-up. After in-depth review, the Supervisory Board approved said plan. Also, the Board of Management's plans for the business development in financial year 2024 was approved by the Supervisory Board after in-depth discussion.
Mr. Cola: No. It does he take risk report a significant focus was on geopolitical risks, especially those regarding purchasing procurement supply chain and sales market.
Mr. Cola: Well as all measures to reduce these risks.
Mr. Cola: We also discussed in detailed topics like data information security focusing above all on it security.
Mr. Cola: John.
Speaker Change: The board of management.
Mr. Cola: Presented.
Mr. Cola: Our long term business development plans too just about as important I've explained them in detail here.
Mr. Cola: One focal point wasn't ensuring growth.
Mr. Cola: Earnings in the context of all of the electro mobility ramp up.
Mr. Cola: After an in depth review.
Mr. Cola: Provisory Board approved set plan.
Mr. Cola: Also the board of management plans for business development and financial year 2024 was approved by the supervisory board after in depth discussions.
Operator: Our review of accounts as at 31st of December 2023 has been explained in detail in the written version of our supervisory report. PricewaterhouseCoopers, Wirtschaftsprüfungsgesellschaft GmbH, audited the annual and consolidated financial statements prepared by the Board of Management as at 31st of December 2023, as well as the combined management report and issued an unqualified auditor's certificate. On the recommendation of the Audit Committee, the Supervisory Board approved the results of the Audit following its own thorough review. There were no objections raised. The Supervisory Board has approved the Annual and Consolidated Financial Statements of the BMW AG prepared by the Board of Management for financial year 2023 and thus the financial statements have thus been adopted.
Mr. Cola: A review of accounts.
Mr. Cola: So I suppose of December 2023.
Mr. Cola: It's been explained in detail in the written version of our supervisory.
Mr. Cola: Report.
Mr. Cola: Crouse price Waterhouse Cooper Richardson D.
Mr. Cola: Do you have H orders at the annual and consolidated financial statements.
Speaker Change: But the board of management.
Speaker Change: That's the first of December 2023, as well as the combined management report and issued an unqualified auditor's certificates.
Speaker Change: On the recommendation of the audit Committee the supervisory Board approved the results of the audit following its own photo review.
Speaker Change: Sure no objections raised.
Speaker Change: Yeah.
Speaker Change: Supervisory Board has approved the annual and consolidated financial statements of the BMW AG prepared by the board of management for financial year, 2023, and thus the financial statements have been adopted.
Operator: The supervisor board also reviewed and approved the consolidated non-financial statement and the corporate governance statement. So, today, the board of management proposes to the annual general meeting payment of a dividend of 6 Euros and 2 Euro cents per preference share and 6 Euros per ordinary share. The supervisory board considers this amount of dividend appropriate and therefore agrees to this proposal.
Speaker Change: The supervisory board also reviewed and approved the consolidated non financial statement on the corporate governance statement.
Speaker Change: Today, the board of management proposal to the annual General meeting with a payment of a dividend of six years at two euro cent preference from.
Speaker Change: Europe ordinary shares.
Speaker Change: The supervisory board considers this amount of dividends as appropriate on therefore agreed to this proposal.
Operator: Ladies and gentlemen. The year 2023 was a very successful business year for the BMW Group during which the company defended its leading position of the BMW brand in the global premium segment and significantly increased its electromobility share.
Speaker Change: Ladies and gentlemen.
Speaker Change: The year 'twenty two 'twenty three was a very successful business yet for the BW group during which the company defend that.
Speaker Change: Leading position of the BMW brand in the global premium segment.
Speaker Change: <unk> significantly increased its electromobility sure.
Operator: On behalf of the Supervisory Board, I would like to take this opportunity to express our gratitude and appreciation to the members of the Board of Management and all employees of the BMW Group worldwide for their strong commitment and convincing joint efforts.
Speaker Change: On behalf of the supervisory Board I would like to take this opportunity to express our gratitude and appreciation to the members of the board of management.
Speaker Change: All employees of the BMW group worldwide for their strong commitment unconvincing joined efforts.
Speaker Change: No.
Operator: Allow me to come to speak about the other items on the agenda and the resolutions proposed by the Supervisory Board.
Speaker Change: Allow me to come to speak about the other items on the agenda and the resolutions proposed by the supervisory board.
Operator: Agenda item 4 deals with the resolution on the ratification of the Act of the Supervisory Board. As Chair of the meeting, I hereby determine that we cast votes on each Supervisory Board member separately. Under item 5 of the agenda, the Supervisory Board and based on the recommendation of the Audit Committee proposes that the auditing company, PricewaterhouseCoopers GmbH or PwC in short, to be appointed Company and Group Auditor for the 2024 financial year, as well as Auditor for the review of the Interim Group Financial Statement and the Interim Group Management Report. The Audit Committee reviewed in due detail the quality of the audit and due to the very good experience to date with PwC, we recommend to continue this cooperation.
Speaker Change: Item four deals with the resolution on the ratification of the acts of the supervisory board as chair.
Speaker Change: Chair of the meeting I hereby determine that we cost of votes on each supervisory board member separately.
Speaker Change: Okay.
Speaker Change: Under item five of the agenda the supervisory board.
Speaker Change: Just on the recommendation of the audit Committee proposes that the auditing company price Waterhouse Cooper scheme, BH or Pwc short to be appointed company and group Auditor for 2024 financial year as well as orders for the review of the interim group financial statements and the interim.
Speaker Change: <unk> Group Management report.
Speaker Change: The audit committee reviewed do detail the quality of the audit and due to the very good experience to date with Pwc, we recommend to continue this cooperation.
Operator: In accordance with the planned Act on the Implementation of the Corporate Sustainability Reporting Directive, CSRD for short, PwC, if elected as auditor, would also then be appointed Auditor of the Sustainability Report, which must be compiled for the first time in financial year 2024.
Speaker Change: In accordance with the plan on the implementation of the corporate sustainability reporting director.
Speaker Change: R&D for sure.
Speaker Change: WCS electric task orders that would also then be appointed auditor of the sustainability report, which must be completed for the first time in financial year 'twenty 'twenty four.
Operator: Then, under item 6 of the agenda, we have elections to the Supervisory Board on the agenda. At the end of today's AGM, current times in office of shareholder representatives Dr. Susanne Klatten, Stefan Quandt and Dr. Visha Sikha will expire. Thus we have three supervisory board members representing the shareholders that need to be elected. Now to continue to comply with the legal gender quota we need at least one woman to be elected to the supervisory board. All candidates will be elected by separate votes. Now, I am delighted that all three supervisory board members have mentioned that they are willing to stand once again for election today.
Speaker Change: Six.
Speaker Change: Under item six of the agenda, we have elections to the supervisory board.
Speaker Change: Gender.
Speaker Change: At the end of today's AGM current times and office of shareholder Representatives, Dr. Susanne Klatten Stefan with.
Speaker Change: Dr Vishal Sikka will expire.
Speaker Change: We have three supervisory board members, representing shareholders that need to be elected not to continue to comply with the legal gender quota we need at least one woman to be elected two supervisory board.
Speaker Change: Candidates will be elected by separate votes now I am delighted that all three supervisory board members have mentioned that's willing to stand once again for election today.
Operator: Dr. Klatham is a very experienced entrepreneur who has had close ties with our company for many, many years as a shareholder with a significant stake in our company. Mr. Kwan also has a wide-ranging entrepreneurial experience of many years. As a shareholder with a substantial stake in our company, he has also been supporting our company for many years. Dr. Klatten and Mr. Quandt also expressed their willingness to stand for re-election to the committees of the Supervisory Board in which they have assumed important functions if they are elected in today's AGM. Dr. Seeker is an acclaimed expert in the fields of digitalization, IT and artificial intelligence.
Speaker Change: The classroom is.
Speaker Change: Very experienced entrepreneur, who has had close ties with our company for many many years as a shareholder with a significant stake in that company and.
Mr. Kron: Mr. Kron also has a wide range of entrepreneurial experience of many years.
Mr. Kron: Shareholder with a substantial stake in our company. He has also been supporting our company for many years.
Mr. Kron: Doctor Clanton and Mister car wash.
Speaker Change: Expressed their willingness to stand for reelection to the committees of the supervisory board and wish to have assumed important functions.
Mr. Kron: Our elected in today's AGM.
Mr. Kron: Yes.
Speaker Change: Doctor Sika is an acclaimed expert in the field of digitalization I T and artificial intelligence.
Operator: He can look back on a long and very successful career at different internationally operating companies in the IT sector. Moreover, he is also active as an independent entrepreneur. You will be able to find the detailed CVs of the three candidates proposed for re-election to the Supervisor Board in the notice of the annual agenda meeting on our website.
Mr. Kron: You can look back on it.
Mr. Kron: Long and very successful career at different international operating companies in the sector. Moreover, He is also active independent entrepreneur.
Mr. Kron: You will be able to find the detailed series of the three candidates proposed for reelection to the supervisory board in the notice of annual General meeting on our website.
Operator: Now, I would like to give the Supervisor Board candidates the opportunity to introduce themselves briefly to our shareholders.
Speaker Change: I would like to give the supervisory board candidates the opportunity to introduce themselves briefly to our shareholders.
Dr. Susanne Klatten: Die Ems is klatten, the floor is yours. Thank you very much, Dr. Reithofer. Dear Shareholders, I would like to introduce myself. As Dr. Reithhofer already mentioned, I've been part of this company for a long time. Being a shareholder and also being part of the supervisory board, it's always been a great honor to me. And it's always been in my interest to make sure that business is conducted in the best interest of the company. It's also important to me to contribute to the stabilization and long-term success of the company. For decades, BMW has had a culture of working together and also taking responsibility.
Dms: Dms has gotten the floor is yours.
Dms: Okay.
Dms: Okay.
Sure Doug.
Dms: Thank you very much Doctor Hydromorphone.
Dms: Dear shareholders.
Dms: I would like to introduce myself.
Dms: The highest profile already mentioned I've been part of this company for a long time being a shareholder and also being part of the supervisory Board. It's always been a great honor to me and it's always been in my interest to make sure that business is conducted in the best interest of the company. It's also important to me to contribute to their stabilizer.
Dms: And long term success of the company.
Dms: Okay.
Dms: For decades, BMW has had a culture of working together and also.
Dms: Taking responsibility.
Dr. Susanne Klatten: Of course, our retirement program has always been very good and also the integration of foreigners. In the 70s, BMW... made sure that employees can be part of the success through their dividend. So good performance is worth it, and that is definitely something that is driving our development continuously. Loving innovation and the development of people is the biggest driver of my entrepreneurial spirit. My expertise is something that I would like to include in many areas, being a supervisory board member when it comes to strategy, when it comes to leadership, internationalization. material and sustainability. You can find more details on that in the invitation to this AGM.
Dms: Of course, our retirement program has always been very good and also the integration of foreigners and the 70 S. BMW.
Dms: Yeah.
Make sure that employees can be part of the success through their dividends.
Dms: So good performance, it's worth it and that is definitely something that is driving our development continuously.
Dms: Loving innovation and the development of people is the biggest driver of my entrepreneurial spirit.
Dms: Expertise is something that I would like to include in many areas being as supervisory Board member I. So when it comes to the strategy when it comes to leadership.
Dms: Internationalization.
Dms: Material and sustainability.
Dms: You can find more details on that in the invitation to this AGM.
Dr. Susanne Klatten: After my training and studying economics in England and in Switzerland, I started. My career as an entrepreneur more than 30 years ago. I take my responsibility very seriously, being a supervisory board member for several companies. Alterna is something that was delisted and is now a family-owned company. Today, Althana is leading worldwide when it comes to specialty chemistry and I am also The Deputy Chair in the Supervisory Board at SCION. I'm also involved in sustainable companies, for example, when it comes to water technology or circular economy. Ski on Water today is a group of more than 5,000 employees.
Dms: After my training and just studying economics in England and in Switzerland.
Dms: I started.
Dms: My career as an entrepreneur more than 30 years ago.
Speaker Change: Take my responsibility very seriously being.
Speaker Change: A supervisory board member for several companies I cannot it's something that was delisted and there's now a family owned company.
Speaker Change: Today I cannot it's leading worldwide when it comes to specialty chemistry, and I am also.
Speaker Change: The Deputy chair and the supervisory board at ski on I'm also involved in sustainable companies for example, when it comes to water technology.
Speaker Change: Our circular economy.
Speaker Change: Ski on water today, it's a group of more than 5000 employees.
Dr. Susanne Klatten: and being the CEO of Scion starting from 2013 until 2023. I've also been the CEO of the SKL Carbon, which is a company listed. And two decades ago I founded with TU Munich the Unternehmertum AG. Oh, I'm sorry, it's a GmbH, which is one of Europe's leading innovation and founding centers. More than 500 tech companies derived from UnternehmerTUM, one of them The overarching goal is to support founders and also developing new family-owned companies and making it where Europe is going to be strengthened when it comes to key technologies. At UnternehmerTUM, I am the chair of the supervisory board.
Speaker Change: And being the CEO of Schiano, starting from 2013 until 2023 I've also been in S. E. L F.
Our scale carbon which is a company listed.
Speaker Change: And two decades ago, I founded with T U Munich.
Speaker Change: Tell me not to AG, Oh, I'm, sorry, it's a G M D H, which is one of Europe's leading innovation and founding centuri.
Speaker Change: More than 500 companies.
Speaker Change: From one can imagine one of them.
All that being so called unicorns.
Speaker Change: The overarching goal is to support found Dara.
Speaker Change: We're also developing new family owned companies and making it where Europe is going to be strengthened when it comes to key technologies.
Speaker Change: I am the chair of the supervisory board apart from the Antoni much am I also.
Dr. Susanne Klatten: Apart from UnternehmerTUM, I also am part of many other things, for example, Skala Initiative, which is an organization that is supporting other organizations with projects and also when it comes to structures. And this is how we strengthen the resistance of the sector during the pandemic and I think also long-term.
Speaker Change: Part of many other things for example, Skalla initiative, which is an organization that is supporting other organization with projects and also when it comes to structure.
Speaker Change: And this is how we strengthen the resistance of the sector during the pandemic and I think also long term.
Okay.
Dr. Susanne Klatten: It is really about democracy. A supervisory board member shouldn't only be competent when it comes to economic matters, but they should also always take a look at our society overall. Dear shareholders, My competence and experience is something that I would also like to... contributes to BMW AG. So I'm going to ask for your trust. Thank you very much. Thank you, Mrs. Klappen.
Speaker Change: It is really about democracy.
Speaker Change: A supervisory board member shouldn't only be competent when it comes to the economic matters, but they should also always take a look at our society overall dear shareholders.
Speaker Change: Okay.
Speaker Change: My confidence and experience is something that I would also like to you.
Speaker Change: Contributes to BMW AG, so I'm going to ask for your trust. Thank you very much.
Speaker Change: Yeah.
Speaker Change: Got it.
Speaker Change: Thank you Mr Clinton.
Stefan Quandt: Next, I would like to ask Mr. Quandt for a brief introduction. Mr. Quandt, you have the floor. Do you shareholders? and my military service. I had an engineering study and a half-year internship here at the BMW AG in Munich, which according to my curriculum was three months in the technical, three months in the commercial sector. Then I studied at the University of Kassel at the age of 1993, successfully passed my diploma in engineering science. Four months at the Boston Consulting Group here in Munich, I then started to gain experience abroad in Asia and in America.
Speaker Change: Okay.
Speaker Change: I would like to ask Mr. Grant for a brief introduction Mr front, you have the floor.
Okay.
Speaker Change: Dear shareholders.
Speaker Change: I'm also delighted to have the opportunity to introduce myself briefly to you Stefan front.
Speaker Change: Direct and indirect and shares.
Speaker Change: Shareholder of about 25% of the share capital of the BMW AG against this background.
Speaker Change: As a representative of the shareholders and the supervisory board are of great interest into sustainable success of the BMW group about about my person.
Speaker Change: I was born in 1966 and grew up in the proximity of Frankfurt onto mine following my.
Tom: Hi, Tom.
Speaker Change: Sure.
Speaker Change: My mother, she said I had.
Speaker Change: An engineering study on a half year touch up here at the BMW AG in Munich, which according to my curriculum was three months in the technical three months in.
The commercial sector.
Speaker Change: I studied at University of Kosovo edge.
Alrighty 19, Ninety-three successfully passed my diploma in Engineering Science.
Speaker Change: But once the Boston consulting group here in Munich, I, then started to gain.
Speaker Change: Parents abroad in Asia and in America.
Stefan Quandt: First of all, I spent a year in the headquarters in Manaphoras, Minnesota, where I looked at controlling issues. Afterwards, I spent two years in Hong Kong, where I was marketing manager for Asia-Pacific and supported and assisted local and entrepreneurial independent distributors for the entire region, including China. In the summer of 1996, at the age of 30, I returned back to Germany.
Speaker Change: First of all I spent a year and the headquarters in Minneapolis, Minnesota, well looked at controlling shares afterwards I spent two years in Hong Kong, where I was marketing manager for Asia Pacific.
Speaker Change: Supported assisted local entrepreneur independent distributors for the entire region, including China.
In the summer of 1996 at the age of 30, I returned back to Germany and in the course of the following 12 months together with my sister we have.
Stefan Quandt: And in the course of the following 12 months, together with my sister, we had, in the Passover to the Next Generation, assumed a number of jobs and mandates and functions from our mother, Johanna Quandt, and Mr. Goldberg. Further to that, I have in almost three decades learned that the specific properties and competencies, expertise of the BMW Group, its workforce and its special corporate culture and all strategic and operative decisions and alternatives have always been reflected by me against this background. Outside the BMW Group, I am as part of my entrepreneurial investments for many, many years Supervisory Board Chairman of a German holding company and I am also a member of the Advisory Board of the Dresden-Bade-Kohlhaber GmbH as well as a board member of the American Interest Corporation.
Speaker Change: And the possible next generation assumed a number of jobs mandates and functions for my mother, who wanted one.
Speaker Change: And the cycles.
Speaker Change: In this context, the AGM of BMW AG.
Speaker Change: My 1997 elected me to supervisory Board and afterwards also.
Speaker Change: And the presiding committee thereafter.
It is not 27 years that I have been a supervisory board member for the BMW AG I believe have in that time gained a deep insight and understanding of the business model and the challenges in the automotive industry.
Speaker Change: Further to that I have enormous three decades learned that specific properties and comprehensive expertise adrianna regroup its workforce.
Speaker Change: Special corporate culture.
Speaker Change: And or strategic operative decisions and alternatives have always been reflected let me against this background and the group also had BMW group I am.
Speaker Change: Part of my entrepreneurial investments for many many years supervisory board chairman of Germanys holding company and I'm also a member of the Advisory Board of the recent bad kilometers ski and beach as well as board member of the American Entrust Corporation.
Stefan Quandt: Further relevant, partly also terminated, mandates In the Supervisor Board is the Dresdner Bank AG that is listed and then two companies of the Gerling Insurance Company, the Frankfurter Allgemeine Detailer, GmbH, and the Karlsruhe Institute for Technology, KIT. All of these I would like to list here publicly.
Further relevant Hartley also terminated mandates.
Speaker Change: And the supervisory board is placing about a G that is listed and then two companies after getting insurance company before.
Speaker Change: G M B H.
Costs were institute for Technology, K, I T or at least I would like to listen to publicly.
Stefan Quandt: So in summary, I deem my relevant competencies for today's election in the Supervisor Board of BMW is my long-term experience with good corporate governance in different entrepreneurial settings as well as in the personal staffing of operative management circles, both individually. and also as complementary social groups. Further to that, with my SolarWatt investment since the 90s and a later investment in hydrogen, I'm also very much invested in general energy production and in challenging energy management. And last but not least, for many, many years, it is not just part of my supervisory board work and in the controlling and audit committee, I am also responsible for auditing and reviewing.
Speaker Change: So in summary, I deem relevant competencies for today's election Supervisory Board of BMW is my long term experience with good corporate governance.
Speaker Change: Entrepreneurs settings, as well as into personal stuffing of operative management circles both individually.
Speaker Change: And also as complementary social groups further to that.
Muscle lava investments since the nineties and later.
Speaker Change: Investments Yeah, Greg I'm also very much investment agenda energy production on and challenging.
Speaker Change: Management and last but not least for many many years. It is not just part of my supervisory Board work on controlling the audit Committee I am also responsible for order thing on reviewing.
Stefan Quandt: für Nachschauangestellungen, as well as M&A activities that fall under my brief of responsibility. Thus, I would deem that I can make a relevant and helpful contribution to the development of the BMW AG, to make sure that the long-term success of the company is not just something that is in my interest, but also close to my heart.
Speaker Change: Statements, that's what if M&A activities start fall under my brief responsibility.
Speaker Change: I would deem that I can make a relevant unhelpful contribution to the development of the BMW AG.
Speaker Change: Make sure that the long term success of the company is not just something that my interests, but also close to my heart like most of you probably know our father Hubbard Quant helped this company in a very tricky situation and I'm talking 90, 596, and maintain the independence of the BMW group and at the end of the last.
Stefan Quandt: Like most of you will probably know, our father, Herbert Quandt, helped this company in a very tricky situation in 1995-1960 and maintained the independence of the BMW Group, and at the end of the last decade. Kate, my sister and myself during the rover crisis and together with our mother assisted the shareholders with our own show relating. So, dear shareholders, I would be delighted to continue to do so with your support and assist in the work of the supervisory board.
Kate.
Speaker Change: My sister myself during the Aruba crisis, together with our mother assisted the shareholders with our onshore.
Speaker Change: So dear shareholders I would be delighted to continue to do so with your support and assist in the work of the supervisory board or would be grateful if you could.
Stefan Quandt: I would be grateful if you could place your trust in me for a continuation of my function.
Speaker Change: As it relates to your trust in me for a continuation of my function.
Dr. Wieschal Sikha: Thank you, Mr. Grant, for your brief introduction as well.
Speaker Change: Thank you Mr. Grant for your brief introduction as well now I'd like to hand over the floor to Mr. <unk> for his brief introduction, Dr. Sikka will speak to us in English and.
Dr. Wieschal Sikha: Now, I would like to hand over the floor to Mr. Seeker for his brief introduction. Dr. Seeker will speak to us in English. Therefore, you will hear a simultaneous translation on the German channel. If you wish to listen to Mr. Seeker in the original English, press the headset symbol on the bottom right of your streaming player to switch to the English channel.
Speaker Change: Therefore, you will hear a simultaneous translation on the German channel, if you wish to listen to Mr. Sika in the original English.
Speaker Change: Press the headset symbol on the bottom right of your streaming play out to switch to the English channel.
Speaker Change: Richard.
Dr. Wieschal Sikha: Thank you so much Dr. Reithofer, dear shareholders, I am Mishal Sikha and I am delighted to introduce myself briefly to you. I was born in 1967 and I grew up in the western part of India and I moved to the United States for my undergraduate studies in computer science at Syracuse University. After my bachelor's degree, I was admitted to the Ph.D. program at Stanford University, where I did my doctorate in Artificial Intelligence. I had the opportunity here to study with some of the pioneers of AI. Following Stanford, I started a company, and following the acquisition of this company, I came to SAP to run the Advanced Technology Group.
Michelle: Thank you. So my Doctor wrote over their shareholders I am Michelle it's a guy and I'm delighted to introduce myself briefly to you.
Michelle: I was born in 1967, and I grew up in the restaurant part of India.
Michelle: And I moved to the United States for my undergraduate studies in computer Science.
Michelle: Syracuse University.
Michelle: After my bachelor's degree I was admitted to the Phd program at Stanford University, when I did my doctorate in artificial intelligence.
Michelle: I had the opportunity here to study with some of the pioneers of AI.
Following Sanford I started a company and following the acquisition of this company I came to S&P to run the advanced Technology group.
Dr. Wieschal Sikha: I then became SAP's Head of Architecture in 2005 and in 2007 was appointed the Chief Technology Officer. I became a member of the Executive Board of SAP in 2010 and was responsible for the technology platform and later on for all their products. In my time at SAP, I had the privilege to be mentored by Professor Joachim Milberg, who used to then be the Supervisory Board Chairman here at BMW. He was a member of our Supervisory Board at SAP. He taught me some very important lessons about processes, about bringing scale to innovation, and he explained to me how he and his team, including Dr. Reithofer, implemented the, at that time, revolutionary 10-day car manufacturing process.
Michelle: I then became S. L P as head of architecture in 2005.
Michelle: And in 2007 was appointed Chief Technology Officer.
I became a member of the executive Board of SAP in 2010 and was responsible for the technology platform and later on for all their products.
Michelle: In my time at S&P I had the privilege to be mentored by professor of Iraq in Milburn, who used to then with the supervisory Board Chairman, Yeah That'd BMW.
Michelle: He was a member of our supervisory board it should be there.
Michelle: He taught me some very important lessons about processes about.
Michelle: Ringing skill to innovation and he explained to me how he and his team including Dr. White Hoefer implemented the at that time, an evolutionary tender car manufacturing process.
Dr. Wieschal Sikha: My older son also did a practicum here at BMW in Munich during his high school. These days he is a proud owner of an X5 M60 and in case you are curious I drive a beautiful i7. After 12 years at SAP, I became the CEO and Managing Director of Infosys, a large IT services company based out of my birth country, India. I was inspired by the challenge to help transform IT services in the time of AI. After leaving Infosys, I took one year off to spend time with my family as my older son was graduating from high school in that year.
Speaker Change: My oldest son also did a practicum BMW in Munich during his high school.
Speaker Change: These days he is a proud owner of an X five M 60, and then it gives you a curious idrive where beautiful I salmon.
Speaker Change: After 12 years at F N B I became the CEO and managing director of Infosys.
Speaker Change: Our it services company based out of my birth country, India.
Speaker Change: I was inspired by the challenge to help transform our it services and the time of year.
Speaker Change: After leaving in protest I took one year off to spend time with my family and my oldest son Rose graduating from high school in that year.
Dr. Wieschal Sikha: Then I started an AI venture, Vaian AI, where I serve as CEO and I also joined the board of BMW in 2019. I am a citizen of the United States, my wife Vandana is also a computer scientist and an entrepreneur and we have two boys. Serving on BMW's board for the last five years has been a great privilege for me. I have had the opportunity to see how your company has navigated through multiple disruptions. from electrification, to autonomous driving, to climate change related priorities, to the incredible disruption of COVID. to the semiconductor crisis and many others.
Speaker Change: And then I started in AI renter Ryan.
Speaker Change: When I served as CEO and I also joined the board of BMW in 2019.
Speaker Change: I'm a citizen of the United States. My wife, Londoner is also a computer scientist and an entrepreneur and we have two boys.
Speaker Change: Serving on Bmw's Board for the last five years has been a great privilege farming.
Speaker Change: I've had the opportunity to see how you are a company has navigated through multiple disruptions.
From electrification autonomous driving the climate change related priorities for the incredible disruption of Covid.
Speaker Change: Semiconductor process and many others.
Dr. Wieschal Sikha: And I am proud of the work that the entire BMW team has done to navigate and to thrive in these times. I have had the pleasure to work closely with the Executive Board, in particular with Oliver Zipzer, Frank Weber, and with Frank's team. We frequently discuss the state-of-the-art in vehicle design, in particular in software, especially artificial intelligence that goes into ADAS, into autonomous driving, also the driver's experience which is increasingly shaped by AI, and more generally in the software development processes and developing a long-lasting competence in these all-important digital technologies. I am proud to say to all of you that your company's capabilities in these important areas have seen outstanding progress in recent years.
Speaker Change: And I am proud of the work that the entire BMW team has done to navigate and to thrive in these times.
Speaker Change: I've had the pleasure to work closely with the executive Board in particular with Oliver ZIP Sir Frank.
Speaker Change: Frank Weber and with Frank's team.
We frequently discuss the state of the art in vehicle design in particular in software, especially artificial intelligence.
Speaker Change: And that goes into our das into autonomous driving also the driver of that experience, which is increasingly shaped by AI and more generally in the software development processes and developing a long lasting competence in this all important digital technologies.
Speaker Change: I'm proud to say that all have to all of you that yard company's capabilities. In these important areas have seen outstanding progress in recent years.
Dr. Wieschal Sikha: BMW has an incredible culture, an iconic past. but also a wonderful present and a future. We move body, heart and mind and it is my pleasure to contribute to this amazing company in these times of technological disruption. Being on this board is more than an assignment, it is something that I feel personally about and with your support, I would love to continue serving on the board.
Speaker Change: BMW has an incredible culture and iconic past.
Speaker Change: But also a wonderful present and future.
Speaker Change: Remove body heart and mind and it is my pleasure to contribute to this amazing company in these times of technological disruption.
Speaker Change: Being on this board is more than an assignment. It is something that I feel personally about and with your support I would love to continue serving on the board. Thank you very much.
Operator: Thank you very much.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Thank you very much vishal.
My name Dominos.
Operator: Ladies and gentlemen... Following the recommendation of the Nomination Committee, the Supervisory Board proposes that Dr. Susanne Klatten, Stephan Quandt and Dr. Wieschal Sieker each be re-elected for another time in office until the end of the Anadrenal Meeting, which will decide on the ratification of the Act for Financial Year 2027. That means roughly four years. Finally, under Agenda Item 7, we present to you for approval the remuneration report for the financial year 2023, which has been jointly compiled by the Board of Management and the Supervisory Board. The full remuneration report can be accessed on our Internet page for the Annual General Meeting, where you will also find a summary presentation.
Speaker Change: Ladies and gentlemen.
Following the recommendation of the nomination committee the Supervisory Board proposes that Doctor Susana Clinton Stefan Kwangtung Vishal sikka each.
Speaker Change: Reelected for another time in office until the end of the 100 and a meeting which will decide on the ratification of the acts for financial year 2027 that means roughly four years.
Speaker Change: Finally.
Speaker Change: Under agenda item seven we present to you for approval of the remuneration report for the financial year 'twenty, two 'twenty, three which has been jointly compiled by the board of management and the supervisory Board.
Speaker Change: <unk>.
Speaker Change: Moderation reports can be accessed on our internet page in it for the annual General meeting, where you will also find a summary presentation. Therefore, I will only address the following key points.
Operator: Therefore, I will only address the following key points. For the past financial year, the compensation system for the Management Board in effect since 2021 was applied unchanged. Remuneration of the Board of Management members comprises six components and two variable components, the bonus and the long-term share-based remuneration. Basic compensation and target compensation for the three compensation levels have not been raised since 2021. For the variable remoderation components, the Supervisory Board defined challenging financial and non-financial targets before the beginning of 2023. Now, totaling about 39% of variable target compensation, a special focus was once again on achieving the so-called ESG targets, i.e.
Speaker Change: For the past financial year.
Speaker Change: The compensation system for the management board in effect since 2021 was applied unchanged.
Speaker Change: As for remuneration of the board of management members comprises a fixed components and to variable components. The bonus under long term share based remuneration.
Speaker Change: Basic compensation at target compensation for the three compensation levels have not been raised since 2021.
Speaker Change: For the variable remuneration components like the supervisory board defined challenging financial and non financial targets before the beginning of 2023 through nine months now.
Speaker Change: Totaling about 39% of variable compensation, a special focus was once again honored.
Giving the so called ESG targets.
Operator: that's targets related to environment, social and corporate governance. The degrees of achieving these targets related to the variable remuneration components for the past financial year just ended and have been disclosed in the remuneration report. Here you see that behind me. After careful review, we consider amount and composition of the Board of Management remuneration appropriate. and granted remuneration and remuneration will still owed for fiscal year 2023 also contains a share-based component for financial year 2018 in the case of some members of the Board of Management. The remuneration of the members of the supervisory board has been determined to be fixed remuneration only.
Speaker Change: That's targets related to environmental social and corporate governance.
The degrees of achieving these targets related to the variable remuneration components for the past financial year just.
Speaker Change: And it has been disclosed in the remuneration report.
Speaker Change: You see that you have behind me.
Speaker Change: Uh huh.
Speaker Change: After careful review, we consider amount of compensation of the board of management remuneration appropriate.
Granted remuneration and remuneration.
Speaker Change: Still owed for fiscal year 2020. So he also contains a share based component for financial year 2018 in the case of some members of the board of management.
Speaker Change: The remuneration of the members of the supervisory board has been determined to be fixed remuneration that only and there have been no changes during the year under review and comparison with the previous year.
Operator: And there have been no changes during the year and the review in comparison with the previous year. The format of the remuneration report for financial year 2023 corresponds essentially to the last year's format. In addition, we also disclosed BMW shares held by members of the Board of Management as of 31st of December 2023, which are subject to lock-up periods. The value of the shares held by our CEO as at the balance sheet date equates to 200% of the basic remuneration. The auditor PwC also reviewed the remuneration report in terms of content going beyond the legally required audit and issued an unqualified auditor's certificate.
Speaker Change: The format of the remuneration report for financial year, 'twenty to 'twenty, three corresponsive essentially to the loftiest format.
Speaker Change: In addition, we also disclosed BMW shares held by members of the board of management is that instead of just what you said about 2023.
Speaker Change: Each subject to lockup periods unfortunate for us.
Speaker Change: The value of the shares held by our C. O I was that the balance sheet date equates to 200% of the basic remuneration.
Speaker Change: The Auditor Pwc also reviewed the remuneration report in terms of content going beyond the legally required audit and issued an unqualified auditor's certificates.
Operator: Ladies and gentlemen...
Speaker Change: Ladies and gentlemen.
Operator: And this brings me to the end of my remarks and I would now like to turn the floor over to our CEO, Mr. Zipzer. He is going to report on the financial year just ended and in addition will give you an outlook on the plans of the Board of Management.
Speaker Change: This brings me to the end of my remarks.
Mr Chip: I would now like to turn the floor over to our CEO Mr Chip.
Speaker Change: She is going to report on our financial year just ended and in addition, we'll give you an outlook on the plans of the board of management.
Speaker Change: [music] have you ever experienced a once in a lifetime opportunity.
Operator: In cooperation with Have you ever experienced a once-in-a-lifetime opportunity? When everything counts and your impact makes the difference in shaping the world of tomorrow. It's time to unleash the full potential of the Neue Klasse. We love to go over the edge, because we love driving. Our first superbrain with the all-new Dynamic Performance Control. Up to 10 times higher driving performance, developed 100% in-house. And this is our second superbrain. It makes the already perfect BMW Automated Driving System even more powerful. More BMW than ever before. We also evolved beyond our company. This means partnering with the best.
Speaker Change: When everything counts and your impact makes the difference in shaping the world of Tomorrow.
Speaker Change: It's time to unleash the full potential of the new year.
Speaker Change: We love to go over the edge, because we love driving.
Speaker Change: Our first Super brain with the all new dynamic performance control up to 10 times higher driving performance develop a 100% in house.
Speaker Change: And this is our second super blame it makes the already powerful BMW automated driving system.
Speaker Change: Even more powerful.
Speaker Change: More BMW than ever before.
Speaker Change: We also evolved beyond our company. This means partnering was the best.
Operator: In close cooperation with our suppliers, we are further reducing CO2 emissions, conserving finite resources and creating closed material loops. Innovations drive future solutions. We involve and empower our employees. To me, Neue Klasse also means new skills, new forms of collaboration, new facilities, a new mindset. That's how we take our 155,000 employees on their journey. We have strong teams to set up an entirely new generation of cars, using cutting-edge technologies and outstanding expertise. We will roll out the Neue Klasse across our global production network.
Speaker Change: In close cooperation with our suppliers, we are further reducing C O two emissions.
Speaker Change: Conserving finite resources, hence creating closed material loops.
Speaker Change: Innovation drive future solutions.
Speaker Change: We involve and empower our employees to me nor it has to also means new skills new forms of collaborations new facilities.
Speaker Change: New mindset.
Speaker Change: That's how we take a 155000 employees on the journey.
Speaker Change: We have strong teams to set up an entirely new generation of car using cutting edge technologies and outstanding expertise.
Speaker Change: He was a rollout denial classic across our global production network.
Operator: In 2025, the Neue Klasse becomes reality. Already today, we merge real and digital worlds to create unique experiences for our customers. Natural, emotional and personal. The new BMW iDrive is the perfect example of how we take this to the next level. Fully digital cars developed by a truly digital company. We are clearly committed to that. Digital tools and AI support us in taking the right decisions. We are thinking beyond a single car or segment. It's about the entire brand and the company as a whole.
Speaker Change: In 2025, the nightclubs it becomes reality.
Speaker Change: Already today, we match real and digital world to create unique experiences for our customers natural emotional and first.
Speaker Change: The new BMW Idrive is the perfect example of how we take this to the next level.
Speaker Change: Quality chicken costs developed by a truly digital companies, we are clearly committed to that.
Speaker Change: Digital tools, and AI support us and taking the right decisions.
Speaker Change: We're thinking beyond a single power segment.
Speaker Change: The entire brand and the company as a whole.
Operator: We've already shown you the future of our iconic sedan. With the BMW Vision X, we are levelling up and lifting the Neue Klasse into a whole new dimension.
Speaker Change: We've already shown you the future of our iconic sedan.
But the BMW vision X, we're leveling out and.
Speaker Change: And lifting the noise into a whole new dimension.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Operator: Dear shareholders... A warm welcome from BMW Welt in Munich. A lot of people talk about the transformation of mobility and the automotive industry. How one will replace the other. At BMW, we do things a little differently. We call it continuous progress. Becoming a little better every day, that is what we aspire to, and this is what I myself am measured against. never being satisfied with the status quo brings us closer to our ambitious goals, step by step, or more fittingly, when talking about cars, mile by mile. That may sound very grounded and methodical, but it certainly yields highly effective results.
Speaker Change: Dear shareholders.
Speaker Change: Warm welcome from BMW Welt in Munich.
Sure.
Speaker Change: Lot of people talk about the transformation of mobility and the automotive industry.
Speaker Change: One will replace the other.
Speaker Change: This BMW, we do things a little differently.
Speaker Change: We call it continuous progress.
Speaker Change: Now coming a little better every day that is what we aspire to and this is what I myself are measured against.
Speaker Change: Never being satisfied with the status quo brings us closer to our ambitious goals step by step or more fittingly when take it when talking about college mile by myeloma.
That may sound, very grounded and methodical, but it certainly is highly effective results. Keith we always look to the future that is part of BMW vast array of experience. It gives us strength and empowers us time and again to take bold action. We know what we are capable of that.
Operator: We always look to the future, that is part of BMW's vast array of experience. It gives us strength and empowers us time and again to take bold action. We know what we are capable of. That is why BMW is still here after 108 years.
Speaker Change: Is like BMW is still here after 108 years.
Operator: The film just showed our Board of Management. But we are only as good as our global team. Together, we bring our combined know-how to the roads, in a very literal sense. There are currently more than 150,000 of us worldwide, representing nearly every nationality there is, united by the BMW spirit.
Speaker Change: The film just showed our board of management.
Speaker Change: We are only as good as I look global team.
Speaker Change: Together, we bring our combined know how to the railroads in a very literal sense.
Speaker Change: Currently more than 150000 wells.
Speaker Change: Worldwide, representing nearly every nationality there is united by the BMW turret.
Operator: In autumn of last year, we surveyed all our associates around the world. 85% said they fully support the company's goals and strategies. No ifs and no buts, no quibble, no fuss. And even 93% are proud to work for the BMW Group. What a boost for us. We are mobilising them all for the next leap forward.
Speaker Change: Last year, we surveyed all of our associates around the world.
85% said, they fully support the company's goals and strategies no.
Speaker Change: But no.
No quibble, no fuss or even 93% are proud to work for the BMW group water boost for US we are mobilizing them all for the next leap forward.
Operator: because your company is once again reinventing itself at precisely the right time. You too, dear shareholders, are part of our BMW team. You support our direction and give us the momentum and latitude we need to make decisions with a long-term perspective.
Speaker Change: Because your company is once again reinventing itself at precisely the right time.
You too.
Speaker Change: Dear shareholders.
Speaker Change: Part of our BMW team use support our direction and give us the momentum and latitude we need to make decisions with a long term perspective in China.
The good news now.
Operator: Now, this traces back to legendary entrepreneur Herbert Krant. What a legacy! The next generation is carrying forward that legacy much like we do at the company now. We always base our strategic decisions on facts and informed analysis. This certainly requires experience and sometimes plain common sense. This makes your company robust and ensures that we remain composed and calm in a turbulent environment. And all of this comes together in the BMW way. This approach guarantees that the following always holds true for your company at any time. Strong today, strong tomorrow.
Speaker Change: This traces back to legendary entrepreneur habits gallant water legacy soon in the next generation is carrying forward that legacy much like we do at the company now.
Speaker Change: We always base, our strategic decisions on Zen informed analysis.
Speaker Change: This month's certainly requires experience and sometimes plain common sense.
Speaker Change: This makes your company robust that ensures that we remain composed of <unk> com in a turbulent environment at all of this comes together in the BMW way.
Speaker Change: That's right.
Speaker Change: This approach guarantees that the following always holds true for your company at any time strong today.
Operator: Also for the financial year 2023. 33.7% of the unappropriate profit will be distributed to you if you approve of our proposed dividend. During the financial year, we had revised our guidance up to... We've met all our targets. We posted solid growth in sales, delivering more than 2.55 million cars, a new all-time high. And in fact, we are the only German OEM to have regained our pre-pandemic level. Our Group EBT margin at 11% came in higher than our strategic target of 10%. We are consistently performing at a high level. This has been confirmed by our EBIT margin in the automotive segment.
Speaker Change: Tomorrow also for financial year 2023.
Speaker Change: 33, 7% of the Unappropriate profits will be distributed to you.
Speaker Change: Proof of our purpose dividend once a week.
Speaker Change: During the financial year, we have revised our guidance upwards.
Speaker Change: We've met all our targets.
Speaker Change: We posted solid growth in sales delivering more than $2 five 5 million cars, a new all time high and in fact, we.
Speaker Change: We are the only German OEM to have regained our pre pandemic levels. The EBT our group EBIT margin at 11% came in higher than our strategic target of 10%.
Speaker Change: We are consistently performing at a high level right. Now this has been confirmed by our EBIT margin in the automotive segment.
Speaker Change: Hmm.
Operator: which has been within our defined target range of 8 to 10 percent for the past nine quarters. and the first quarter of 2024 has also been included here. This allows us to continue to make substantial investments. Our capital expenditure, as well as our research and development spending, will peak this year. We will once again be making major investments, because our actions are always geared towards the future.
Speaker Change: Which has been within our defined target range of 8% to 10% for the past nine quarters.
Speaker Change: In the first quarter of 2024 has also been included here.
Speaker Change: This allows us to continue to make substantial investments our capital expenditure as well as our research and development spending will peak this year.
Speaker Change: We will once again be making major investments because our actions are always geared towards the future.
Operator: Individual mobility offers tremendous potential for profitable growth and gaining market share.
Speaker Change: Individual mobility offers tremendous potential for profitable growth and gaining market share.
Speaker Change: It'd be big for us.
Operator: Today, let's take a look at how we continue to forge our BMW way in four parts. One, future to the max, turning visions into reality. Two, following our own convictions, technology openness is effective.
Speaker Change: Today.
Speaker Change: Let's take a look at how we continue to forge our BMW way in full power.
Speaker Change: One.
Speaker Change: Future to the Max turning visions into reality to following our own convictions technology openness easy effective.
Operator: 3. Global success today means acting regionally. and for the car as digital companion. We are making mobility more human, more intelligent and surely more sustainable. These focal points also shed light on the topics you address most frequently in the Shareholder Portal.
Speaker Change: Three.
Speaker Change: But our success today means acting regionally.
Speaker Change: And for the.
Speaker Change: The car.
Speaker Change: So companion.
Speaker Change: We are making mobility more human more intelligent.
Speaker Change: And truly more sustainable.
Speaker Change: These focal points also shed light on the topics you addressed most frequently the shareholder portal.
Operator: Turning Visions into Reality. This is the first topic I would like to talk about today. What you see right here is nothing less than the future. Pure BMW. Taken to a whole new level. This is where all the big topics of future mobility come together. Electric, fully digitalized, sustainable. For now, they are still vision vehicles, but they will be on the roads in a very similar form very soon.
Speaker Change: Turning visions into reality. This is the first topic I would like to talk about today is what did you see right here is nothing less than the future.
Speaker Change: B M W.
Speaker Change: No.
Speaker Change: Whole new level. This is where all the big topics of future mobility come together electric fully digitalized sustainable spot.
Speaker Change: No.
Speaker Change: We're still division vehicles, but they will be on the road in a very similar form very soon.
Speaker Change: Yeah.
Operator: Last year, I promised you a new vision vehicle. which we then unveiled at the IAA Mobility in Munich. The BMW Vision Neue Klasse celebrated its premiere here in Munich, a sporty sedan and you'll recognize it right away. No other car at the IAA received as much media coverage and positive feedback.
Last year.
Speaker Change: I promised you a new efficient vehicle.
Speaker Change: Mobility, which we then unveiled at the IAA mobility to Munich.
Speaker Change: M. W vision, knowing classic celebrated its premier here in Munich.
Speaker Change: Sedan, and you'll recognize it right away.
Speaker Change: No other car at the IAA received as much media coverage and positive feedback.
Operator: And this is just one more reason to bring along another highlight for you today. The BMW Vision Neue Klasse X This is a car that very clearly reimagines the BMW X philosophy in a new way. This, too, is unmistakable. Both vehicles will compete in high-volume segments. We want our innovations to have a broad impact, not just in niche segments. The Neue Klasse is homogeneous and heterogeneous at the same time. Homogeneous in terms of design, technology and sustainability. Heterogeneous with respect to the other models that will follow. These are the two bookends of the Neue Klasse, with lots of room in between that we intend to exploit.
Speaker Change: And this is just one more reason to bring along and not a highlight for you today.
Speaker Change: The BMW vision No classic X.
Speaker Change: This is a car that very clearly re imagines the BMW philosophy in any way. This too is that mistakable, both vehicles will compete in high volume segments.
Speaker Change: We want to have our innovations to have a broad impact not just in niche segments, while marking the nordea classes, how much in years and heterogeneous at the same time homogeneous in terms of design technology and sustainability heterogeneous with respect to the other models that will follow.
Speaker Change: These are the two bookends something all your classes with lots of room in between that we intend to exploit.
Operator: and we deliver on our promises. Within 24 months of the start of production, there will be at least six different models on the market. Our industry has never seen speed quite like this before, but if anyone can do it, then it's us, BMW. We quicken the pace on a massive scale.
Speaker Change: And we deliver on our promises within 24 months of the start of production will be at least six of different models on the market.
Speaker Change: Once our industry our industry has never seen speed quite like this before but if anyone can do it then it's us BMW with quicken the pace on a massive scale, our new plant in tablets and in Hungary, Hungary will lead the way.
Operator: Our new plant in Debrecen in Hungary will lead the way with the launch of the first X model in late 2025. This will continue seamlessly in 2026 at our main plant in Munich as well as Brand Shenyang in China with a sedan. And in 2027, the Neue Klasse will also ramp up in San Luis Potosi, Mexico.
Speaker Change: Launch of the first eggs model in late 2025. This will continue seamlessly in 2026 at our main plant in Munich, as well as the plant shut and young in China with a sedan.
Speaker Change: And in 2027 and know your class eight will also ramp up in San Luis Potosi, Mexico.
What's a good number.
Operator: Our customers are. How far can I drive on electric power? How quickly can I charge my car? And we answer, at least 30% farther and 30% faster. In practice this means, it only takes 10 minutes to charge your car for a 300 km trip. Hardly enough time to grab a coffee. This is possible thanks to the new 6th generation round cells. We are using them for the first time in the Neue Klasse. This means you can look forward to an even higher level BMW driving experience. Now, what might look like a PlayStation is actually four super-brains, each integrating several highly intelligent control units.
Speaker Change: What customers ask.
Speaker Change: How far can I drive on electric power.
Speaker Change: How quickly can I charge my car.
Speaker Change: And we answered at least 30% father and 30% faster in practice. This means it only takes 10 minutes to charge your car for a 300 kilometer trip.
Speaker Change: Hardly enough time to grab a coffee.
Speaker Change: Okay.
Speaker Change: This is possible thanks to the new sixth generation round cell.
Speaker Change: We are using them, both first time, Illinois classic.
Speaker Change: This means you can look forward to an even higher level B M W driving experience.
Speaker Change: No.
Speaker Change: It looked like a Playstation is actually full tsuga brains, each integrating several highly intelligent control unit and.
Operator: and this opens up new possibilities from powertrain and driving dynamics to automated driving to how we interact with our cars. The most important aspect for our customers is, what does the Neue Klasse feel like on the road? The Board of Management already had the chance to drive the 3-Series and believe me, it sent shivers down our spines. The magnitude of the technological wave we are unleashing becomes even clearer when you realize... The innovations of the Neue Klasse will be incorporated into all BMW models in the coming years, regardless of their drive technology.
Speaker Change: This opens up new possibilities from powertrain and driving dynamics to automated driving to how we interact with our cars.
Speaker Change: Your answer.
Speaker Change: The most important aspects of our customers is.
Speaker Change: What does that all your cluster feel like on the rabbit importance to you and the board of management already had the chance to drive three series and believe me it sent shivers down now as banks.
Speaker Change: Magnitude of the technological wave, we are unleashing becomes even clearer when you realize you know what's your innovations often all your classes will be incorporated into all BMW models in the coming years, regardless of their drive technology.
Operator: In simple terms... Soon, all BMW technology will be Neue Klasse. The Neue Klasse is set to become our innovation and technology booster for all future areas of activity, including design.
Speaker Change: In simple terms.
Speaker Change: Soon.
Speaker Change: BMW technology will be no eight class application. The Nordea class is set to become our innovation and technology booster for all future areas of activity, including design.
Operator: We aren't just taking mobility to a new level, the BMW Group is also becoming a new company. I believe this is entirely in your interest as our shareholder.
Speaker Change: You don't just take him mobility to a new level. The BMW group is also becoming a new company.
Speaker Change: Belief this is entirely in your interests as our shareholders.
Operator: My second topic for today reflects our belief in the effectiveness of technology openness. The heart of the Neue Klasse is electric, running on its own new architecture. We will be able to leverage corresponding economies of scale if demand for electric vehicles continues to grow as predicted, and this is what forecasts anticipate. But, you know, our world is a big place, which is why we continue to serve all markets with premium products. With us, everyone can find the right drivetrain to suit their needs. Anything else would be unwise from a business perspective. Using technology clusters and toolboxes enables us to be highly flexible.
Speaker Change: My second topic for today.
Speaker Change: Reflects our belief in the effectiveness of technology openness.
Speaker Change: That's how it's annoying lots of snake Hunt of the <unk> class is electric running on its own new architecture.
Speaker Change: We will be able to leverage corresponding economics.
Speaker Change: The economies of scale if demand for electric vehicles continues to grow as predicted and this is what forecast anticipate but you know our world is a big place, which is why we continue to serve all buckets with premium products.
Speaker Change: Everyone can find the right drivetrain tissue that means anything else would be unwise from a business perspective.
Speaker Change: Plus using technology clusters in Toolboxes enables us to be highly flexible.
Operator: Think of it like that. We can roll out innovations and technological advances across all architectures and segments and scale them up efficiently. We don't distinguish between old and new cars. Instead, we deliver cutting-edge technology across all areas. And moreover, we offer the best overall package. This is what we aspire to, and it is perhaps the underlying secret of your company's success.
Speaker Change: Think of it like that.
Speaker Change: We can rollout of innovation and technological advances across all architectures and segments.
Speaker Change: It gave them efficiently.
Speaker Change: But let's keep this.
Speaker Change: We don't distinguish between the old and new cars, instead, we deliver cutting edge technology across all areas and Moreover, we offer the overall package. This is what we aspire to and it is perhaps the underlying secrets of your company's success.
Operator: Let me give you a current example. Following on from the new BMW 5-Series sedan, the new BMW 5-Series Touring also comes in four-drive technology. The BMW i5 is all-electric, with an impressive everyday range of over 500 km. Plug-in hybrids also remain extremely popular. For the new BMW 5-Series, the P-HAVE variant could account for about 20% of 5-Series sales in Europe. This shows we are right on track with our 10 attractive P-HAVE models. And of course, the new 5-Series is also well-received as a highly efficient ICE-powered car. Focused technology openness is not something that is achieved overnight.
Speaker Change: Let me give you a current example.
Speaker Change: Following on from the New BMW five series sedan, the new BMW five series touring also comes in full drive technology. The BMW I five years old electric within impressive everyday range of over four 500 kilometers.
Speaker Change: Plug in hybrids also remain extremely popular.
Speaker Change: BMW five series the <unk> variant that could account for about 20%. The five series sales in Europe. This shows we are right on track with our 10 attractive P. F models.
Speaker Change: And of course with the New five series is also well received as a highly efficient ice's pilots call.
Speaker Change: Focused technology openness is not something that is achieved overnight.
Operator: And you know my position, building cars is a highly complex task. New market players, by the way, are realizing this too. It is a strength of your company, and I would even put it like this, it is a unique selling point, the ability to master this complexity seamlessly and to effectively orchestrate, scale up and enhance technology. Our sales figures confirm this. BMW is maintaining its leading position in the global premium segment. Our strongest growth in 2023 came from the upper premium and luxury class, as well as our all-electric models or BEVs for short. We deliver over 375,000 BEVs to customers, an increase of almost 75% year-over-year.
Speaker Change: And you know my position building cars is a highly complex tasks new market players by the way are realizing this too.
Speaker Change: It is a strength if you will country and I would even put it like this.
Is a unique selling point the ability to master this complexity seamlessly and to effectively orchestrate scalable and enhanced technologies.
Speaker Change: Our sales figures confirm this BMW is maintaining its leading position in the global premium segment.
Speaker Change: Our strongest growth in 'twenty two 'twenty three came from the upper premium and luxury cars as well as our all electric models all staves officials.
Speaker Change: We delivered over 375000 beds to customers, an increase of almost 75% year over year.
Operator: This dynamism is also reflected in our share of the global BEV market, which is 4.1%. Well, it is already significantly higher than our share of the total global market, which remains stable at 3.3%. Demand for BEVs will continue to climb, although not in a linear fashion, but dynamic and market-specific. We reiterate this time and again, like a mantra, and it holds true in multiple markets.
Speaker Change: Dynamism is also reflected in our share I'll take that.
Speaker Change: Market, which is four 1% well it is already significantly higher than our share of the total global market, which remained stable at three 3%.
Speaker Change: Demand for beds, we continued to climb although not in a linear fashion.
Speaker Change: Dynamic end market specific and foster a month.
Speaker Change: We reiterate this time it again like a mantra and it holds true in multiple markets.
Operator: We see electromobility as the fastest-growing drive technology – today and in the future. By 23rd, all electric cars should account for about half of our deliveries. and we remain committed to this goal. We are steering the ramp up in line with demand. We will stay flexible even well into the 2030s. We are aligning our strategic planning accordingly, like our architectures. And in this way, we can respond quickly at all times.
We electromobility.
Speaker Change: Fastest growing drive technology today.
Speaker Change: And in the future and sponsored by.
Speaker Change: By 2000.
Speaker Change: All electric cars should account for about half of our deliveries and we remain committed to latest gusto in Vietnam.
Speaker Change: During the ramp up in line with demand, we will stay flexible even well into the 20 <unk>.
Speaker Change: We are aligning our strategic planning accordingly, like our architecture.
Speaker Change: This way we can respond quickly.
Speaker Change: All times.
Speaker Change: Yeah.
Operator: More than 15 BEV models will be available this year across all BMW Group Brands. Here, you can see the Mini-Aceman. In April, it celebrated its world premiere at AutoChina. The Aceman, by the way, is offered exclusively as an all-electric car. It fills the gap between the Cooper and the Countryman, which has now grown significantly in size. The new Cooper, by the way, is already sold out, at least for the next four months. The only thing missing is the new mini-convertible, which will be launched in the second half of the year.
Speaker Change: More than 15 models will be available this year across all BMW group brands here you can see the many eisman.
Speaker Change: I will hop off now.
Speaker Change: And April is celebrated its world premiere at auto China, the asthma and by the way is offered exclusively as an all electric car. It fills the gap between the Cooper and the countryman, which has now grown significantly in size the new Cooper by the way is already sold out at least for the next four months or no.
Speaker Change: The only thing missing is the new mini convertible, which will be launched in the second half of the year.
Operator: Together, these models from the new MINI family which is effectively the counterpart to the Neue Klasse at BMW. MINIs leap into the future. And we produce new mini-family worldwide at our spotlight joint venture in China. in the British Oxford in the UK and for the first time also in Germany at our Leipzig plant.
Speaker Change: Together these models from the new mini family, which is effectively the counterpart to the noise class BMW mini is indeed leap into the future.
Speaker Change: And.
Speaker Change: We produce the new mini family worldwide, and how about like joint venture in China.
Speaker Change: And the British.
Speaker Change: In the U K and for the first time on southern Germany at our largest plant.
Speaker Change: For Ya.
Operator: Just now, we talked about bookends. Now with our brand, let's jump from mini go-kart feeling to our luxury brand, Rolls-Royce. The Spectre certainly hit the ground running. What a phenomenal start! In the first quarter of this year, this model alone accounted for 38% of Rolls-Royce deliveries. That is how we do electromobility in the luxury class. The spectre glides along effortlessly like a magic flying carpet. Our luxury brand's vehicles have never been as compelling and as differentiated as they are today. And let's not forget that they also earn a significant contribution margin for the company, your company.
Speaker Change: Just now we talked about bookends.
Speaker Change: Now with our brands, let's jump from Medico called feeling to our luxury brand Rolls Royce.
Speaker Change: Thank you Todd certainly hit the ground running water phenomenon start the first quarter of this year. This model alone accounted for 38% over the Rolls Royce deliveries.
Speaker Change: That is how we do electron diversity in the luxury class.
Speaker Change: The glides, along effortlessly like magic flying carpet.
Speaker Change: I'm a luxury brands vehicles have never been as compelling and is differentiated as they are today and let's not forget that.
Speaker Change: That's it.
Speaker Change: Difficult contribution margin for the company your company.
Speaker Change: Being able to BMW Torrance is wholesale reporting profitable credit timber how did the market.
Operator: BMW Motorrad is also reporting profitable growth.
Operator: and in September it celebrated its centenary. German Chancellor Olaf Scholz attended the anniversary celebrations at our plant, Berlin-Spandau plant.
Speaker Change: And in September it celebrated his 17 year a.
Speaker Change: German trials for all of <unk> attended the anniversary celebrations.
Speaker Change: Berlin spun the plant.
Operator: We present a double rumps, two bombshells as it were. First, the inauguration of the new BMW Motorrad Welt. What BMW Welt in Munich is to cars, we now also have in Berlin for our two-wheelers. The second, the world premiere of the R1300GS. Many people have been eagerly waiting the next generation GS. Myself included, being a motorcycle enthusiast, and the trade press was practically euphoric about it. But for those who prefer an electric ride in the city, BMW Motorrad's second electric model, the CE-02, is perfect.
Speaker Change: We presented a double homes two bombshells as it were.
Speaker Change: First the IMO.
Speaker Change: Duration of the new BMW more tour around the world.
Speaker Change: What's BMW Welt in Munich is to cause we now also have in Berlin for our two Wheeler.
Speaker Change: Second the world premiere of the 1300 T S.
Speaker Change: Many people have been eagerly waiting the next generations, yes myself included being a motorcycle enthusiasts and the trade press was practically euphoric about downwardly brightness electric but for those who prefer an electric riding the city BMW maturity electric model. The C. O two is perfect.
Operator: And surely, our core BMW brand has also a slew of upcoming exciting cars with 14 launches and numerous model variants this year alone. The BMW 1 Series will be released onto the market in the compact class and will be launched the new BMW X3, one of our most popular models overall. It will be available as a highly efficient ICE-powered car and as a plug-in hybrid variant. We recently presented our new and future vehicles to our dealers, including 1,500 dealers from all over Europe and Amsterdam. We did the same in Las Vegas for over 1,000 dealers from the Americas region.
Speaker Change: And truly our core BMW brand has also a slew of upcoming exciting cause with 14 launches and numerous model variance this year alone.
Speaker Change: The BMW one series will be released onto the market in the context of class and we will launch the new BMW three one of our most popular bottles overall it will be available as a highly efficient IC powered car and as a plug in hybrid variant.
Speaker Change: So we can have England, we recently presented our new and future vehicles through our dealers, including 1500 dealers from all over Europe in Amsterdam, We did the same in Las Vegas for over 1000 dealers from the Americas region, when and by how would I go.
Operator: And I got the sense and impression at both the events that our dealers, our retailers are genuinely excited about what is to come. Especially for Europe, I have to say. The retailers, the dealers, will remain by our side in the new sales system, that won't change.
Speaker Change: Yes.
Speaker Change: Sends an impression that it obviously depends.
Speaker Change: Our dealers our retailers are genuinely excited about what is to come.
Speaker Change: Especially for Europe.
Speaker Change: I have two.
Speaker Change: <unk>.
Speaker Change: The retailers the dealers will remain by our side in the new sales system that won't change we're already using direct sales for mini in China.
Operator: We are already using direct sales for many in China. and are reporting positive experiences in the first European countries.
Speaker Change: Oh, he didn't ask and are reporting positive experiences in the first European countries V still.
Speaker Change: We.
Operator: will be transitioning the BMW brand to the new direct and fully digitalized sales model in Europe from 2026, as planned.
Speaker Change: No it will be transitioning the BMW brand to the new direct and fully digitalize sales model in Europe from 2026 as planned.
Speaker Change: You too.
Operator: You, our shareholders, also wanted to know How are we progressing with hydrogen? Well, our BMW iX5 Hydrogen is currently on a world tour, undergoing real-life testing. It is very well received everywhere it goes. Our pilot fleet is raising awareness of hydrogen's role in the energy transition, both for mobility and across industries. You rightly expect us to meet the European Union's CO2 requirements. In 2023, the BMW Group significantly outperformed the CO2 fleet limit set for us by the EU by more than 20%. This year, we expect to see another slight reduction. All brands and drivetrain variants contribute.
Speaker Change: Shareholders also.
Speaker Change: Wanted to know.
Speaker Change: How are we progressing with hydrogen to BBB.
Speaker Change: Well, how about BMW I X 510 is currently on a world tour in the coming via live testing it.
Speaker Change: It is very well received everywhere our pilot fleet is raising awareness of hydrogens role in the energy transition both for mobility and across industries.
Speaker Change: You rightly expect us to meet the European Union C O two requirements.
Speaker Change: It's one thing.
2023.
Speaker Change: BMW group significantly outperformed the C O two fleet limit set for us by the EU by more than 20%.
Speaker Change: This year we.
Speaker Change: Expect to see another slight reduction with.
Speaker Change: With all brands in drivetrain variants contributing.
Operator: This distinguishes us from others.
Speaker Change: This distinguishes us from analog technology.
Operator: Technology-centric, with a clear focus on e-mobility, we are always consistent in our actions. This is how we are reshaping perception of your company.
Speaker Change: Technology centric with a clear focus on E. Mobility, we are always consistent with our actions. This is how we are reshaping perception of your company New York Times stripe.
Operator: What the New York Times writes is precisely researched. In March, the New York Times praised our drivetrain strategy as farsighted and consistent. It described BMW as a winner in electric vehicles and Tesla's only serious competitor. I think we can certainly live with that.
Speaker Change: The New York Times rights is precisely researched large did you have times praised our drivetrain strategy as far sighted and consistency. It is drive to BMW as a winner in electric vehicles and Tesla's only serious competitor.
Speaker Change: It could be I think we can start to deliver that.
Operator: People expect us to consider things carefully and to come up with practical solutions. because we consistently demonstrate our ability to do so.
Speaker Change: People expect us to consider things carefully and to come up with practical solutions.
Speaker Change: Because we consistently demonstrate our ability to do so.
Speaker Change: So it is competing in person.
Operator: in part three. I'll look at the reasons for our global success. which now, more than ever, requires us to act regionally. And if you look closely, your company stands out as one of the automotive industry's few truly global manufacturers.
Speaker Change: I look at the reasons for our global success.
Speaker Change: Which now more than ever.
Speaker Change: Wires us to aggregate reads in the 90 days and if you look closely your company stands out as one of the automotive industries few truly global manufacturers.
Operator: Something like this has to grow systematically and we have been expanding our footprint for this purpose over many decades. Let me give you three examples. China, our biggest single market. Europe, our most important sales region. The US, our second home.
Speaker Change: Something like this has to grow systematically.
And we have been expanding our footprint for this purpose over many decades.
Speaker Change: Let me give you three example, China our biggest single market Europe, our most important sales region. The U S. Our second home.
Operator: First, China. There, we employ about a fifth of our workforce. It is, after Germany, our second largest R&D location. BMW enjoys a high level of trust there, and not just among our own customers. We are highly regarded as a company, because we enter into a serious long-term commitment.
Speaker Change: First China.
Speaker Change: So there we employ about a fifth of our workforce.
Speaker Change: After Germany, our second largest R&D location.
Speaker Change: W enjoys a high level of trust there and.
Speaker Change: Among our own customers, we are highly regarded as a company because we enter into a serious long term commitments. This year. We are celebrating 30 years at home in China and more than two decades of commitment in China Young.
Operator: This year, we are celebrating 30 years at home in China, and more than two decades of commitment in Shenyang. In April, we signed a new investment agreement with Liaoning province worth 20 billion renminbi or 2.5 billion euros. The Shenyang production site of our BBA joint venture is transforming into a BMW i-factory. Also in April, I was part of German Chancellor Scholz's economic delegation to China. Shortly after that, I was in Peking at Auto China, where Prime Minister Li Qiang visited precisely one non-Chinese manufacturer, and that was the BMW Group. The phrase I hear a lot in China is China speech.
Speaker Change: And I presume, we signed a new investment agreement with learning provinces with 20 billion.
I mean, Pete or two.
Speaker Change: Point 5 billion euros.
Speaker Change: Okay.
Speaker Change: And young production side of our BBA joint venture is transforming into a BMW factory.
Speaker Change: Also in April I was part of German Chancellor shows is economic delegation to China.
Speaker Change: Shortly after that I wasn't peaking at.
Speaker Change: Auto, China, where prime Minister Li Chang visited precisely one non Chinese manufacturer and that was the BMW group.
Speaker Change: The phrase I heard a lot in China is China's speed Atlantis do now I mean, this is a dynamic country.
Operator: This is a dynamic country. And we are quitting the pace to keep up. Just last week, our 6 millionth vehicle produced in Shenyang since 2003 rolled off the assembly line. We only reached the 5 million mark about a year earlier. This means we turned out one million vehicles in just 15 months. That is true China speed.
Speaker Change: There's no independently.
Speaker Change: Waiting the pace to keep out just last week, our six millionth vehicle produced in training young since 2003 rolled off the Assembly line, we only reached <unk> 5 billion market out here earlier.
Speaker Change: This maintenance.
Speaker Change: We turned out 1 million vehicles into the 15 months that is true China's speed.
Operator: The second, Europe... We sell nearly a third of all our vehicles in the European Union, where we operate 10 plants and maintain a broad supplier base. We all benefit from a united Europe every single day and should channel all our collective efforts into preserving it. BMW maintains, and will maintain, a global outlook. This is something the Chair of the General Works Council and I have reiterated. We urge our associates to pay close attention whenever seemingly simple solutions are proposed for complicated issues.
Speaker Change: Second Europe.
Allow to mobile with nearly a third of all one of our vehicles in the European Union.
Speaker Change: Operator, 10 plans and maintain a broad supplier base on the on net profit.
Speaker Change: We all benefit from a United Europe every single day.
Speaker Change: And sure channel all our collective efforts into preserving it.
Speaker Change: BMW maintains and we'll maintain a global outlook because this is something the chair of the General works Council and I have reiterated.
Speaker Change: We urge our associates to pay closer to land whenever seemingly simple solutions all proposed so complicated issues.
Speaker Change: It will continue.
Operator: Enjoying democracy means living democracy and that includes participation, exercising your right to vote and raising your voice to stand up for democracy. That is why we have asked everyone to vote on the 9th of June.
Speaker Change: Enjoying democracy means living democracy.
Speaker Change: And that includes participation exercising your right to vote and raising your voice to stand up for democracy.
Speaker Change: That is why we have asked everyone to vote on the ninth of June that's available.
Operator: What applies to Europe applies even more to Germany. We need the best minds. But the smartest minds think very carefully about where to commit themselves and make an effort. That is why we support the WeStandForValues initiative. In Germany, we have many debates about emotionally charged trigger points. There's broad consensus on metatopics. And this is how the sociologist Stefan Mau describes it. His latest study comes to the conclusion, we are not a divided society. As a result, we shouldn't speak ill of our country and Germany as a location, but leverage our potential rigorously, consistently. And I can only agree with that.
Speaker Change: What applies to Europe applies even more to Germany, we need the best minds, but the smartest minds think very carefully about where to commit themselves and make an effort.
That is why we support we stand for values initiative.
Yeah.
Speaker Change: In Germany, we have.
Speaker Change: Many debates about emotionally charged trigger points.
Speaker Change: There's broad consensus on meta topic.
Speaker Change: And this is how the sociologists steffen and I would describe it is the latest study comes to the conclusion, we ought not to divided society. As a result, we shouldn't speak ill of our country and Germany as a location, but leverage our potentials rigorously consistently and I can only.
Speaker Change: Agree with that.
Speaker Change: Third he was the USA that's vital we referred to the U S is our second home next year will be our 50 years here in the United States Youll.
Operator: The U.S.A. We refer to the U.S. as our second home. Next year will be our 50th year in the United States. Last year, your company was once again one of the largest net exporters of vehicles from the U.S. by value. Germany is the only place where we have a higher purchasing volume than the U.S., which currently totals 6.7 billion euros annually. For over 25 years, we've been a local partner, particularly in South Carolina. And today, Spartanburg is our largest plant, and the whole of the surrounding region has grown with us.
Speaker Change: Your company was once again, one of the largest net exporters of vehicles from the U S by value.
Speaker Change: Indulge them.
Speaker Change: Germany is the only place where we have a higher purchasing volumes in the U S, which currently totals $6 7 billion euros annually I live in South Carolina for over 25 years, we've been a local partner, particularly in South Carolina and today Spartanburg is our largest client and the whole of the surrounding.
Speaker Change: Region has grown with us.
Operator: China, Europe. and the U.S. Three examples. of how our local presence forges close ties with regions and markets. and we are living proof that everyone benefits when people work together.
Speaker Change: He now China.
Speaker Change: Europe.
Speaker Change: And the U S.
Speaker Change: Three examples.
Speaker Change: Kind of how our local presence Ford has close ties with the regions and markets.
Speaker Change: And we are living proof that everyone benefits when people together that is also one of the reasons why your company continue to grow in all major regions of the world in 2023, we do business around the globe.
Operator: That is also one of the reasons why your company continued to grow in all major regions of the world in 2023. We do business around the globe and benefit from an integrated global economy.
Speaker Change: And benefit from an integrated global economy, now I'm, a global world always evolving from a unipolar polar world to a multipolar world, especially in the last 10 to 15 years have taught me Carlo authors like economists solar talk about the highly integrated and largest self sufficient.
Operator: Now, our global world order is evolving from a unipolar world to a multipolar world, especially in the last 10 to 15 years. Authors like Carla Masala talk about the highly integrated and largely self-sufficient economic areas now emerging. We remain committed. open markets and free trade.
Speaker Change: Ohmic areas now emerging.
Speaker Change: We remain committed.
Speaker Change: Open markets.
Speaker Change: And free trade that's argued yourself.
Operator: I also say this with a view to the European Union's current deliberations over Chinese imports of electric cars. I think a 360 degree perspective would be better. 20% of all BEVs sold in Europe last year came from China. Well, over half were Western brands, including BMW. Protectionism triggers a spiral effect. Tariffs lead to new tariffs with protectionism rather than cooperation.
I also say this with a view to the European Union's current deliberations of Chinese imports of electric cars.
Speaker Change: I think a 360 degree perspective would be better.
Speaker Change: 20% of all deaths Southern Europe last year came from China, well over half were western brands, including BMW.
Speaker Change: Protectionism triggers I really affect terrorism lead to new territories with protectionism I'd rather than cooperation.
Operator: My over 30 years of experience at BMW suggests that solutions come about when we reach out to one another and when we are prepared to make compromises ourselves. That is how we build a consensus that makes us stronger as a society and an economy and enables us to take action.
Speaker Change: My over 30 years of experience at BMW suggest that solutions come about when we reach out to one another and when we are prepared to make compromises ourselves that is how we build a consensus that makes us stronger as a society and an economy and enables us to take action.
Operator: And now you are justified in asking how your company secures access to diversified, fragmented markets. The answer is, by continuing to invest at local level. By finding local solutions and partners for the upstream value chain. Local for local. That is our recipe for success. And we are now applying this same principle to producing cells for the batteries needy for electromobility.
Speaker Change: And now you are justified in asking how your company is accused access to diversified and fragmented markets.
Speaker Change: Answer is by continuing to invest at local level by finding local solutions and partners, it's really upstream value chain local for local that is our recipe for success and we are now applying the same principle to producing cells for the batteries need if electromobility.
Operator: Who has control over technological expertise and urgently needed raw materials? That is what decides the competitiveness of companies and economic areas. We locate production facilities for BMW high voltage batteries close to our vehicle plants in Hungary, the US and in China. Just a few days ago, we laid the foundation stone for the high-voltage battery assembly plant in San Luis Potosi, Mexico. The benefits for us are clear. Short transport distances and supply stability in the event of unforeseen events around the globe.
Speaker Change: Who has control over technological expertise and urgently needed raw materials.
Speaker Change: And so that is what decides the competitiveness of companies and economic areas.
Speaker Change: We.
Speaker Change: We located production facilities for BMW high voltage batteries close to our vehicle tons in Hungary, the U S and in China.
Speaker Change: For reading talking just a few days ago, we laid the foundation stone for the high voltage Battery Assembly plant in San Luis Potosi, Mexico.
Speaker Change: The benefits for us a clear short transport distances and supply stability in the event of unforeseen events around the globe.
Operator: And to get really local... Have you heard of Eerlebacht Strassekirchen? Well, it is in Lower Bavaria. It will supply the batteries for our plants in Bavaria from 2026 onwards. And this process certainly wasn't straightforward. Residents wanted to know, what are the benefits for our region? We engaged in in-depth discussions with them to build trust. Ultimately, an overwhelming majority voted in favour of the new BMW location.
Speaker Change: And to get really local.
Speaker Change: Have you heard of the box dress garrison.
Well it isn't lower Bavaria.
Speaker Change: It will supply the batteries for our plants in the Bay area from 'twenty to 'twenty six onwards.
Speaker Change: This process certainly wasn't straightforward residents wanted to know what are the benefits of our region.
Speaker Change: We engaged in depth discussions with them to build trust.
Speaker Change: It goes ultimately.
Speaker Change: An overwhelming majority voted in favor of the new BMW.
Speaker Change: Location Gabon.
Operator: As you can see. Global only works at local level. And this also applies to our supply chains. We have learned in recent years how vulnerable and susceptible to disruption they can be.
Speaker Change: As you can see.
Speaker Change: <unk> only works at local level, you said and this also applies to our supply chain. We have learned in recent years, how vulnerable and susceptible to disruptions can be take a guess how many pilots do you think all our plants worldwide need to be supplied with everyday down threes $36 million.
Operator: Take a guess. How many parts do you think our plants worldwide need to be supplied with every day? The answer is 36 million. The right quantities have to be in the right place at the right time in the best quality. Our digitalized iSupply Chain strategy ensures resilient supply chains. Our commonly called RISC Hub uses AI and data analytics to identify quality issues in the supply network early. We also adopt a proactive approach to avoid supply bottlenecks.
Speaker Change: The right quantities have to be in the right place at the right time in the past quality.
Speaker Change: Our supply chain, our digitalized, our supply chain strategy ensures resilient supply chain risk.
Speaker Change: Risks, our commonly called risk hub uses AI and data analytics to identify qualified quality issues in the supply network earlier.
Speaker Change: Also with that.
Speaker Change: Active approach to avoid supply bottlenecks.
Operator: You might already have heard of Katina AG. There's a tremendous potential there. Automotive manufacturers, suppliers, and soon recyclers are creating a shared data ecosystem that makes sprawling supply chains transparent and allows us to track the carbon footprint of individual components. This is what CatenaX is all about. And by the way, the type, quantity and source of the raw materials installed can also be digitally documented, allowing us to trace them.
Speaker Change: You might already have heard of catena eggs.
Speaker Change: There is a tremendous potential there.
Speaker Change: The motive manufacturers suppliers and soon recyclers are creating a shared data ecosystem that makes rolling supply chain transparency and allows us to track the carbon footprint of individuals.
Speaker Change: This is Albert Katina ex this one about doing soft yachts mega on here and by the way the tight quantity and folks are for raw materials installed can also be digitally documented allowing us to trade some unique items.
Operator: and we are about to embark on a pilot project. Plants that produce the kidney grill for the BMW iX. One component made of many individual components. We measure the total carbon footprint along the entire production process, based on data from container X. Wherever we collaborate with suppliers, we do so with partners, always treating each other as equals. This is important to me.
Speaker Change: And we are about to embark on a pilot project.
Speaker Change: Plants that produce at the kidney grille for the BMW <unk> Yang one Kindle tablet made of many individual components into something we measure the total carbon footprint along the entire production process based on data from container ex LIFO.
Speaker Change: Wherever we collaborate with suppliers, we do so with partners or with treating each other as equals this is important to me.
Speaker Change: Capital.
Operator: Chapter 4, or part 4 of my speech, focuses on the car as a digital companion. We are making mobility more human, more intelligent and more sustainable. The world of bits and bytes is highly dynamic. Digitalization, hand-in-hand with artificial intelligence, is fundamentally changing how we experience mobility. Now, these questions, or the questions you submitted through the shareholder portal, indicate that this interests you too. Intelligent, self-learning systems have long been part of our strategy for the automotive production of the future. You know, this says BMW iFactory. digital added value can be experienced directly in our vehicle. But our approach here remains, not everything that is possible also makes sense in a car.
Speaker Change: Chapter for part four of my speech focuses of the car as a digital companion, though we are making mobility more human more intelligent and more sustainable the world of bits and bytes is highly dynamic digitalization hand in hand with artificial intelligence is fundamentally.
Speaker Change: Changing how we experienced mobility.
Speaker Change: Now these questions the questions you've submitted through the shareholder portal indicate that interests you too.
Speaker Change: Telegent self learning systems have long been part of our strategy for the automotive production of the future.
All of this as BMW factory.
Speaker Change: You said, you're telling me that digital added value can be experienced directly in our vehicles.
But our approach here remains not everything that is possible also makes sense in a car once I head up displays Central Africa, our head up displays the classic yawn ability 20 years ago. We brought this technology from the airplane to the cause.
Operator: Our head-up display is a classic. 20 years ago, we brought this technology from the aeroplane to the cars. Now we are revolutionizing this display concept in the Neue Klasse. Take a look for yourself. Our beam from the panoramic vision uses the full width of the windscreen, pure high-tech. and we also use digitalization to increase safety. In this case, we reduce distraction while driving. We have grown used to always getting the latest updates from our digital devices and people surely expect the same from their cars. Over-the-air means we can update software in the car at any time without bringing it to the works.
Now we are revolutionizing. This is play concept in the closet.
Speaker Change: Taking a look for yourselves.
Speaker Change: B M W panoramic vision.
Speaker Change: <unk> uses the full width of the windscreen pure high Tech lithium and we also use digitalization to increase safety in.
Speaker Change: In this case, we reduce distraction while driving for some time, we have grown used to always getting the latest updates from our digital devices.
Speaker Change: People should expect the same from their cause yourself over that means we can update software in the car at any time without bringing it to life insurance.
Operator: We have chosen this route early. Today, your company has the world's largest fully upgraded compatible fleet in the market. we can already reach more than 7.5 million cars.
Speaker Change: We have chosen this route.
Speaker Change: Today Your company has the world's largest fully upgrades compatible fleet to the market, but we can already reached more than seven 5 million cars.
Speaker Change: That's in all your markets.
Speaker Change: So much fun.
Operator: The BMW 5-Series sets new standards for automated driving. It is the first time Germany to be approved for partially automated driving at speeds up to 130 kph on motorways. This means you can take your hands off the steering wheel while driving. Your car can also change lanes by itself with a briefly glance in the side mirror. Active Lane Change Assistance with I-Conformation. Well, this is somewhat an unwieldy name, but it is genuinely a world first. Since March 2024, Highway Assist has also been available in the BMW 7-Series, the X5, X6, the X7 and iX and XM.
Speaker Change: So the BMW five series sets new standards for automated driving it is the first time in Germany to be approved the partially automated driving that's the <unk>.
Speaker Change: With up to 130 KPH what motivated.
Speaker Change: This means you can take your hands off the steering wheel, we're driving your car could also change lanes by itself when you briefly clients in the side.
Speaker Change: Active lane change assist.
Speaker Change: I can information well this is somewhat.
Speaker Change: Unwieldy name.
Speaker Change: But it is genuinely a wells since March 2020 for highway assist has also been available in the BMW seven series <unk>.
Speaker Change: <unk> six <unk>, seven and I exit exam, that's level, two plus and really BMW seven series does even more.
Operator: That's level 2+. And the new BMW 7-Series does even more. You can even temporarily turn your attention away from the road. For me, it's a fascinating moment again and again, every time the car regulates its own speed, distance and tracking. That is level 3 highly automated driving, available in the new BMW 7-Series since this March. A digital driving experience needs to ensure the safety of all road users. That is why we only introduce major technical solutions onto the road, no better versions, as they are commonly called, no experiments at the expense of our customers. You can always rely on that.
Speaker Change: You can even temporarily turn your attention away from the road for me, it's a fascinating moment again and again every time the regulators its own speed.
Speaker Change: And tracking that is level three highly automated driving available in the new BMW seven series since there's a ticket Charlotte spy elite.
Speaker Change: Little driving experience needs to ensure the safety of all users.
Speaker Change: That is why we only introduced major technical solutions onto the road no better versions as they are commonly called no experiment et.
Speaker Change: Experiments at the expense of our customers you can always rely on that it's not so much hunting Titan.
Operator: Since summer 2023, we've been testing automated driving and parking functions all the way up to level 4 fully automated driving at our new centre for automated driving in Sokolov in the Czech Republic. And, as I said, this is Level 4.
Speaker Change: And so much thousand 23, we've been tested automated driving and parking functions all the way up to level four fully automated driving and how our new center of automated driving and sokoloff in the Czech Republic Ghansham.
Speaker Change: And as I said this is level four.
Speaker Change: Yeah.
Operator: It's a theme shareholder. The US Time Magazine and the online platform Statista analyzed and compared 750 international companies. Your company did exceptionally well to make it into the top 10 and was in fact the highest-ranked automotive manufacturer. revenue growth, sustainability and employee satisfaction. Many people consider these to be conflicting goals. We find a way to reconcile them. Our markets are dynamic and the geopolitical environment uncertain. This impacts us, just like it does other companies.
Speaker Change: Esteemed shareholders.
Speaker Change: Thus with time magazine.
Speaker Change: The U S and time magazine and the online platform statistically analyzed and compared 750 International company.
Speaker Change: Youll company did exceptionally well to make it into the top 10.
Speaker Change: And it was in fact, the highest ranked automotive manufacturer.
Speaker Change: Revenue growth sustainability.
Speaker Change: And employee satisfaction and many people consider these to be conflicting goals, we find a way to reconcile them geopolitics Hello markets are dynamic and the geopolitical environment is uncertain.
Speaker Change: This impact us just like it does other companies you are counting on us to remain successful and indeed, we will feel for we have ambitious plans for the current financial year.
Operator: You are counting on us to remain successful, and indeed, we will. We have ambitious plans for the current financial year. We expect to see a slight increase in sales compared to the previous year, as well as a significantly higher percentage of all electric vehicles. And the first four months of 2024 show that we are on track for all key performance indicators.
Speaker Change: We expect to see a slight increase in sales compared to the previous year as well as a significantly higher percentage of OLED <unk> vehicles and the first four months of 2024 show that we are on track for all key performance indicators feeling level to Debbie.
Operator: As CEO of BMW, I travel around the world a lot. Everywhere I go, I see not only how valuable individual mobility is for many people, but also how essential it is. And it is my experience that the BMW Group is appreciated and recognized in all corners of the globe, everywhere. And all of this encourages us to continue forging our BMW way. We are able to withstand the headwinds when we have confidence in our direction, which we usually do. Your company is part of the global community. We engage with it and involve in and alongside it.
Speaker Change: Oh of BMW I travel around the world alone everywhere I go.
Speaker Change: See not only how valuable individual mobility is for many people, but also how essential it is and it is my experience that the BMW group is appreciated and recognized it all corners of the globe everywhere and all of this encourages us to continue forging our P. M W way sticky.
Speaker Change: We are able to withstand the headwinds where do we have confidence in our dimension, which we usually do your company is part of the global community, we engaged and involved in and alongside.
Operator: That is extremely important.
Speaker Change: That is extremely important.
Speaker Change: If you go onto helped the.
Operator: The BMW Way. is also about our capacity for resonance. Now, this is a term from physics that is also used in sociology. So what do I mean by capacity for resonance? I'm talking about our ability to perceive and understand our relationship with the world. In Germany and elsewhere, we pay attention to developments, absorb them and give something back to society. This is a natural process we actively participate in and control. We remain open to all input, but never allow ourselves to be influenced without careful consideration or emotionalized by trigger points. Above all, we avoid drifting aimlessly.
Speaker Change: The BMW way and Hilton once a week is also about a little capacity for residents. Now. This is a temporary physics that is all series since axiology seek.
Speaker Change: So what do I mean by capacity for residents.
Speaker Change: I'm talking about our ability to perceive and understand our relationship with the world in Germany, and elsewhere, we pay attention to developments absorb them and give something back to society.
This is a natural process. We actively participated in control we remain open to all inputs never allow ourselves to be influenced without careful consideration or emotionalize by trigger point.
Speaker Change: Oh, we avoid drifting aimlessly permanent residence with our evolving society consciously and for our mutual benefit.
Operator: We are in permanent resonance with our evolving society, consciously and for our mutual benefit and always focused on effectiveness.
Speaker Change: Always focused on effect because in our system.
Operator: The following, therefore, holds true for your company. Strong today, strong tomorrow.
Speaker Change: I need to get at the following their whole it holds true for your company strong today.
Speaker Change: Tomorrow.
Operator: Another compelling reason for you to continue to stand by us.
Speaker Change: Another compelling reason for you to continue to stand by us. Thank you.
Operator: Thank you. Thank you very much, Mr. Sipse, for your clear report and the outlook.
Speaker Change: Yeah.
Speaker Change: Thank you very much Mr for your clear report and the outlook correct.
Walter Mertl: Now I would like to ask Mr. Mertl, our CFO, to present his report on our share buyback program and on other financial issues. Mr. Mertl, the floor is yours. Do you shareholders?
Speaker Change: Now I would like to ask Mr. Merkle, our six 2% as reported on our share buyback program.
Speaker Change: Other financial issues beyond those Mr metal the floor is yours.
Speaker Change: Yeah.
Speaker Change: Dear shareholders.
Speaker Change: It's Mike.
Speaker Change: 2023.
Walter Mertl: 2023 was a successful year for the BMW Group. We managed our business with a clear focus on profitability. in the group, we achieved a pre-tax return on sales of 11%. This was above our strategic target of 10%. At the beginning of August 2023, we hand-raised our annual forecast for key performance indicators in the automotive and financial services segment. and over the full fiscal year 2023 we achieved all our targets in all segments as a whole. In the automotive segment, we were able to increase sales by 6.4% compared to the previous year thanks to the high demand for our attractive product.
Speaker Change: A successful year for the BMW group.
Yes.
Speaker Change: We managed our business with a clear focus on profitability and consumer.
Speaker Change: Yeah.
Speaker Change: We achieved a pretax return on sales of 11%.
Speaker Change: This was above our strategic target of 10%.
Speaker Change: I'm sorry.
Speaker Change: At the beginning of August 2023, we had.
Speaker Change: Raised on their forecast for key performance indicators in the automotive and financial services segment.
Speaker Change: And.
Over the full fiscal year 'twenty three we achieved all our targets in all segments as a whole.
Speaker Change: The automotive segment, we were able to increase sales by six 4% compared to the previous year. Thanks to the high demand for our products.
Walter Mertl: The EBIT margin, which is a key indicator for the profitability of our core business, amounted to 9.8% and was therefore within the raised forecast range of 9 to 10.5%. The Operative Margin in the Motorbike and Motorcycle segment attained 8.1%. The Financial Service segment is a key factor in our business model. And the relevant performance indicator here is the return on equity. So, a segmented result of almost 3 billion euros led in fiscal year 2023 to a return on equity of 17.2%. This means that also this KPI is in line with the increased target set for the year, namely in a corridor of 16 to 19 percent.
Speaker Change: The EBIT margin, which is a key indicator for the profitability of our core business amounted to nine 8%.
Speaker Change: Therefore within the raised forecast range of nine to 10, 5% liquids.
Speaker Change: The operative margin in the motorbike motorcycle segment.
Speaker Change: Eight 1%.
Speaker Change: The financial service segment is the key.
Speaker Change: Tractor and our business model.
Speaker Change: The relevant performance indicator here is the return on equity.
Okay.
Speaker Change: So a segment result of almost 3 billion euros.
Speaker Change: In fiscal year 'twenty to 'twenty three into a return on equity of 17, 2%.
Speaker Change: This means that also this K P. I is in line with the increased target set for the year, maybe in a corridor of 16 to 19.
Speaker Change: On leasing.
Walter Mertl: Proceeds from the resale of leasing returns were in 2023 still on a high level. But, of course, due to the development of used cars, prices declined gradually. We therefore expect that this trend is set to continue in the year 2024.
Speaker Change: It's from the resale of leasing returns were towards to a degree still on a high level.
Speaker Change: But of course due to development of used car prices declined gradually.
Speaker Change: We therefore expect that this trend is set to continue in the year 2024.
Walter Mertl: Which brings me back to the outlook for our 2024 financial year. We are securing the future viability of your company through targeted investments, above all in digitalization, in battery technology and in innovative products. In the current financial year, we expect to see a record level of investment and research and development. The investment ratio will be over 6% and the R&D ratio over 5%. Following 2024, both these ratios will gradually move back towards our strategic corridors. That means that the investment ratio will be below 5% and the R&D ratio between 4 and 5%. So, we are investing in the future of your company.
Speaker Change: Which brings me back to the outlook for our 2024 financial year <unk>.
Speaker Change: Right.
Speaker Change: We are securing the future viability of your company through targeted investments above all in digitalization and battery technology.
Speaker Change: In innovative products.
Speaker Change: In the current financial year, we expect to see a record level of investment in research and development.
Speaker Change: The investment ratio will be over 6% and the R&D ratio over 5%.
Speaker Change: That's right.
Speaker Change: Following towards you did for both these ratios ratios will gradually move back towards our strategic Colorado City that means that the investment ratio will be below 5% and the R&D ratio between four and 5%.
Speaker Change: Yes indeed.
Speaker Change: Yes.
Speaker Change: We are investing in the future of your company.
Walter Mertl: And at the same time, for 2024, we have set ourselves ambitious financial targets. We expect the EBIT margin in the automotive segment to be anywhere in the corridor of 8 to 10 percent and also in the motorcycle segment we anticipate an EBIT margin between 8 to 10 percent. The return on equity in the financial service segment shall be between 14 and 17 percent. as a group. We think that group earnings before taxes will be slightly lower than at the previous year, which is due to high expenses for future projects, also due to the already mentioned decline in income in the used car business.
Speaker Change: At the same time for 'twenty to 'twenty, four we have set ourselves ambitious financial targets.
Speaker Change: Automobile, we expect the EBIT margin at automotive segment to be anywhere the corridor of 8% to 10% and also industrial.
Speaker Change: Cyclic segment, we anticipate an EBIT margin between agent 10% meant.
Speaker Change: Turn on equity in the financial service segment shall be between 14 and 17%.
Speaker Change: In consumer.
Speaker Change: As a group.
We think that group earnings before taxes will be slightly lower than in the previous year, which is due to expenses for future project also due to the already mentioned decline in income in the used car business.
Walter Mertl: It will affect the automotive and the financial services segment.
Speaker Change: Oh, it will affect your automotive and financial services segment.
Walter Mertl: Only last week we published our business figures for the first quarter of 2024. and the BMW Group has made a successful start into 2024. Both sales as well as earnings were in line with our expectations. With an operative margin of 8.8% in the automotive segment, well, the first quarter is in line with the consistent profitability of the recent three years. The BMW Group. group has been at or above the long-term target corridor of 8-10% for the EBIT margin in every quarter since the beginning of 2022 and this despite the rapid pace at which electric mobility is ramping up.
Speaker Change: Already last week, we published our business figures for the first quarter of 2024.
Speaker Change: And to be in.
Speaker Change: W Group has made a successful start into 2024, both sales as well as earnings were in line with our expectations.
Speaker Change: With an operative margin of 8.8% in the automotive segment.
Speaker Change: The first quarter is in line with the consistent profitability of the recent three years.
Speaker Change: Gotta BMW group Swansea group has been.
Speaker Change: Above the long term target corridor of 8% to 10% for the EBIT margin in every quarter since the beginning of 2022 and this despite the rapid pace at which Electromobility is ramping up.
Walter Mertl: Now also, for the further development of the year 2024, we expect to see a solid business performance. We deliver what we promise and therefore we confirmed last Wednesday when we published our quarterly figures our forecast for the full financial year 2024.
Speaker Change: Now also for the further development of the year 'twenty 'twenty four we expect to see a solid business performance must be addressed we deliver what we promise.
And therefore.
Speaker Change: We confirmed last Wednesday, when we published our quarterly figures.
Speaker Change: Our forecast for the full financial year 'twenty to 'twenty four.
Walter Mertl: So, dear shareholders... Let's now take a look at our employee share program and our share buyback. It is already 35 years now that we have been giving our workforce a stake in the company through employee shares. In the 2023 financial year, we offered to the employees entitled to the share program with ordinary shares of the BMW AG. The employees were thus able to acquire ordinary shares at a purchase price of €71.47, and this corresponds to a discount of €20 per share compared to the average closing price and etc. trading during the period from 1 to 6 November 2023.
Speaker Change: So.
Speaker Change: Dear shareholders.
Speaker Change: Let's now take a look at our employee share program on our share buybacks.
It is already such five years now that we have been giving our workforce.
Speaker Change: And the company through employee shares.
Speaker Change: In the 'twenty to 'twenty three financial year, we offered.
Speaker Change: The employees are entitled to share program with ordinary shares of the BMW AG and decent program.
Speaker Change: So about 33000 employees participate in.
Speaker Change: Separately.
Speaker Change: Which means I don't know if it.
Speaker Change: $1 million 290000 ordinary shares were passed on to employees found these 1.219 million ordinary shares.
Speaker Change: So you've been absent acquired via the stock exchange on the basis of $6 71.
Number two of the German Stock Corporation Act.
Speaker Change: Employees with us able to acquire ordinary shares at a purchase price of Europe 71.47 Euro cents and this corresponds to a discount of 20 euro per share compared to the average closing price and et cetera trading during the period from the first to the sixth of November 2023.
Speaker Change: Yes.
Speaker Change: Funding.
Speaker Change: Yeah.
Speaker Change: From sexual fivefold aspects of cessation the authorized preferred shares we made no use unlike in the previous years.
Walter Mertl: Now, from Section 5 of the African Association, the authorised preference shares, we made no use, unlike in the previous years. So, this authorized capital will expire today without any replacement.
Speaker Change: So this authorized capital will expire today without any replacement.
Walter Mertl: So, dear shareholders, I would now like to turn to the authorization to acquire treasury shares, which was resolved at the 2022 Annual General Meeting. On the basis of this authorization, BIMWAG terminated the first share buyback program that we had announced in 2022, as planned on the 30th of June 2023. Since the last AGM, as part of the first share buyback program, 1,313,430 ordinary shares and 129,352 preference shares had been acquired via the stock exchange. Now, as the nominal value of our shares is 1 Euro per share, the repurchased ordinary shares account for around 1.3 million Euros of the share capital.
Speaker Change: Okay.
Speaker Change: Dear shareholders.
I would now like to turn to the authorization to acquire Treasury shares which was resolved at the 2022 annual general meeting.
Speaker Change: On the basis of this authorization of BMW AG dominated the first share buyback program that we had announced in 2022 as planned.
Speaker Change: As of June 2023.
Speaker Change: Since the last AGM.
Part of this first share buyback program 1 billion 313430 ordinary shares at around 29352 preference shares had been acquired via the stock exchange.
Speaker Change: Now as the nominal value of our shares is one euro per share.
Speaker Change: The repurchase ordinary shares accounting for around one 3 million of the share capital.
Walter Mertl: This, in turn, corresponds to a share capital of 0.2% before redemption and reduction. The repurchased preference shares account for around 129 million euros or 0.02% of the share capital. So, in total, this corresponds to a proportion of the share capital of 0.22% before redemption and reduction. For these shares, we spent a total purchase price of around 153 million euros. One of these, around 140 million euros, was spent on ordinary shares and around 30 million euros on preference shares. Which means, in total, the BMW AG has thus acquired as part of the first completed share-buy-back-programme 22,199,529 ordinary shares and 1,923,871 preference share via the stock exchange.
Speaker Change: This corresponds.
Speaker Change: Corresponds to a share and the share capital of north 0.2% before redemption on reduction.
Speaker Change: The repurchase the preference shares account for around 129 million euros or not.
Speaker Change: <unk>, 2% of the share capital.
Speaker Change: It Toso this corresponds to a proportionate share couple of north, 0.22% before redemption and reductions.
Speaker Change: For the East, Yes, we spent a total purchase price of around 153 million euros.
Speaker Change: None of these around 140 million euros spent on ordinary shares under our 30 million euros on preference shares.
Speaker Change: Which means in total the BMW AG has thus acquired as part of the first completed the share buyback program 22 million and 199529 ordinary shares.
Speaker Change: $1 million 923871 preference share via the stock exchange.
Speaker Change: My stomach.
Walter Mertl: The repurchased ordinary shares account for around 22.2 million Euros of the share capital, which again corresponds to around 3.35% of the share capital before redemption and reduction. on the repurchased preference shares account for around 1.9 million euros in the share capital or respectively 0.29 percent. So in sum total you will find that the total share in the share capital is 3.64 percent. The total purchase price for the shares acquired under the first sharebuyer program was around 2 billion euros. Of this, around 1,850,000,000 euros was for ordinary shares and around 150,000,000 euros for preference shares. On average, we paid 83.33 euro cents per ordinary share and per preference share 77 euros and 97 euro cents.
Speaker Change: The repurchased ordinary shares accounting for around $22 2 million euros of the shack capital, which again corresponds to around 3.35% of the share capital.
Speaker Change: Redemption on reduction.
Speaker Change: Okay.
Speaker Change: On the repurchase preference Jasmine accounted for around $1 9 million euros in the share capital of <unk>, respectively, North point, 29%. So it is something totally we're fine.
Speaker Change: The total share of checkout is 364%.
Speaker Change: The total purchase price for the shares are quite under the first share buyback program was around 2 billion euros of this around 1 billion 115 850000 in Europe.
Speaker Change: What's the order shafts and around 150 million euros for preference shares on average we paid 83 point 33 cents per ordinary share.
Speaker Change: Preference 77 euros 97 year assent.
Walter Mertl: These amounts are significantly below the current price level of our shares. All the repurchased shares from the first sharebuyer program were cancelled in July 2023 and the share capital was reduced accordingly by 24,123,400 euros. and the program have primarily served to improve the company's capital structure by buying back and redeeming shares with a corresponding reduction in the share capital.
Speaker Change: Yeah.
Speaker Change: These amounts.
Speaker Change: Significantly below the current price level.
Speaker Change: Sure.
Now all the repurchase of shares from the first share buyback program was canceled in July 2023.
Speaker Change: The share capital was reduced accordingly.
Speaker Change: $84 million 123004 hundred euros.
Speaker Change: Those broker dealers on the program I promised theft to improve the company's capital structure by buying back and redeeming shares with a corresponding reduction in the share capital.
Speaker Change: So ladies and gentlemen, as already announced at the law enforced.
Speaker Change: The meeting the board of management decided in May 2023 to implement.
Speaker Change: Father share buy back program. Following this first.
Speaker Change: Program.
Speaker Change: Secondly buyback program also comes with a volume of up to 2 billion euros. Okay.
Speaker Change: The volume for preference shares may not exceed 350 million euros.
Walter Mertl: The program has been running since July 2023 and will run until the end of 2025 at the latest. The reasons and purpose of the second share buyback program are the same as those that I have just outlined for the first program. Now, since the start of this second share buyback program, we have already acquired around 7.1 million ordinary shares and 1.7 million preference shares via the stock exchanges. The repurchased ordinary shares account for around 7.1 million Euros of the share capital, corresponding to 1.1% of the current share capital. The repurchase preference shares account for around 1.7 million Euros of the share capital, which is equivalent to 0.26% of the share capital.
Our program has been running since July of 'twenty to 'twenty, three and will run until the end of 2025 at the latest.
Speaker Change: The reasons the purpose of the second share buyback program.
Speaker Change: The same.
Speaker Change: That I've just outlined for the first program.
Speaker Change: Sites.
Speaker Change: Since the start of this second share buyback program, we have already acquired around $7 1 million ordinary shares and $1 7 million preference shares via the stock exchanges.
Speaker Change: The repurchase ordinary shares account for around $7 1 million euros of the share capital corresponding to 1.1% of the current share capital.
Speaker Change: After the repurchase preference shares account for around one 7 billion euros off the share capital, which is equivalent to north pointing said two 6% of the checkout, so and some of it you will find this results in a share of $1 three 7% of the share capital.
Walter Mertl: So in sum, you will find this results in a share of 1.37% of the share capital. And the total purchase price for the shares acquired to date under the second share buyback program was around 859 million Euros. for this amount. Around 770 million euros was attributable to the ordinary shares and around 152 million euros to preference shares. On average, we paid €100.17 per ordinary share and for the preference shares €91.48 on average. But you will find weekly updates on the share buyback program from our website in the Investor Relations section. And you can also find detailed information on the buybacks in the 2023 fiscal year in our annual report.
Speaker Change: The total purchase price what does she has acquired to date under the second share buyback program was around 859 million euros.
Speaker Change: This amount right.
Speaker Change: 750 million euros was attributable to the ordinary shares and around 152 million euros to preference shares.
Speaker Change: On average we paid 100 euros on 17 euro cents per ordinary share for the preference shares.
At 48 Euro cents on average, but you will find a weekly updates on the share buyback program from our website in the Investor Relations section.
Speaker Change: You can also find detailed information.
Speaker Change: Formation on the buybacks and the 20th would you say your fiscal year in our annual report.
Walter Mertl: So, ladies and gentlemen, to wrap it up, I would like to present you the adjusted dividend proposal from the Board of Management and the Supervisory Board. that treasury shares bought back by the company are not entitled to dividend. and given the current share buy back program, the number of shares currently entitled to dividends has therefore been reduced. And the proposal for the appropriation of net profit published in the invitation to today's AGM must thus be adjusted accordingly. The proposed dividend of 6 Euros and 2 Eurocents per preference share and 6 Euros for ordinary shares, however, remains unchanged.
Speaker Change: So ladies and gentlemen.
Speaker Change: To wrap it up.
Speaker Change: I would like to present to you the adjusted dividend proposal from the board of management and the Supervisory Board.
Speaker Change: The Treasury shares bought back by the company.
Speaker Change: Not entitled to dividends.
And given the current share buyback program.
Speaker Change: The number of shares currently entitled to dividends has therefore been reduced.
Speaker Change: The proposal for the appropriation of net profit published in the invitation to today's AGM must thus be adjusted accordingly.
Speaker Change: The proposed dividend of six years to euro cents per preference and six years for orders, yet however remains unchanged.
Walter Mertl: The distribution resulting from the dividend proposal now amounts to around 345 million Euros for the preference shares and around 3.4 billion Euros for ordinary shares. The total dividend payout therefore amounts to around 3.8 billion Euros. The amount of around 21 million Euros remaining from the balance sheet profit is to be allocated to retained earnings.
Speaker Change: The distributions, resulting from the dividend proposal now amounts to around one $345 million for the preference shares on around three 4 billion euros for ordinary shares the total dividend payout therefore amounts to around 3.8 billion euros the landscape there.
Speaker Change: The amount of around $21 million remaining from the balance sheet profit is to be allocated to retained earnings and whatnot.
Walter Mertl: The wording of the updated resolution proposal will be read out by Dr. Reithofer later. and we have also published the updated resolution proposal on our website around a week ago.
Speaker Change: The wording of the updated resolution proposal would be read out by Doctor I talk later.
Speaker Change: We have also published an updated resolution proposal on our websites around a week ago.
Operator: And with that, I say thank you for your attention.
Speaker Change: And with that I'll say, thank you for your attention.
Operator: Well, thank you very much, Mr. Mertl, for your report. Ladies and gentlemen This brings us to the end of our public broadcast of our Annual General Meeting. For all registered shareholders, we continue to stream this Annual General Meeting in full on our online services. If you haven't logged on yet, please do so now. You can find the required access data on the confirmation of your registration.
Speaker Change: Well. Thank you very much Mr. Michael for your report.
Speaker Change: Ladies and gentlemen.
Speaker Change: This brings us to the end of a public broadcast took above our annual general meeting.
Speaker Change: All registered shareholders. We continue to Scream. This annual general meeting in full on our online services. If you havent blocked on yet please do so now.
Speaker Change: You can find well the required access data on the confirmation of your registration.
I therefore say goodbye to all other viewers who have followed our public broadcast and thank you very much for your interest.
Speaker Change: Say goodbye to all all of us.
Speaker Change: Followed our public broadcast and thank you very much for your interest.
Speaker Change: Yeah.
Speaker Change: [music].