Q4 2025 Bayerische Motoren Werke AG Earnings Call - Q&A

March 12, 2026

Yeah.

Good morning, ladies and gentlemen.

Welcome to the 2026 BMW Group annual Congress conference Analyst and Investor call.

Maximilian Schöberl: Good morning, ladies and gentlemen. Welcome to the 2026 BMW Group Annual Conference, Analyst and Investor Call. My name is Maximilian Schöberl. I'm the Head of Treasury and Investor Relations at the BMW Group. It is my pleasure to host today's investor and analyst Q&A with Oliver and Walter. As Oliver mentioned earlier, we continue to leverage our global business model and the advantages of our technology neutral strategy, meeting demand for both combustion engine vehicles and electrified vehicles. With the successful rollout of the Neue Klasse iX3, we have kicked off a major product offensive that will provide the BMW brand with crucial momentum for the future. Walter has shared with you how we have navigated 2025 and delivered on major KPIs in our operational business despite the tariff impacts, developments on currency markets, and the intense market situation in China.

My name is Stefan Richman I'm, the head of Treasury and Investor Relations at the BMW group.

It is my pleasure to host today's investor and analyst Q&A with Oliver and Walter.

As Oliver mentioned earlier, we continue to leverage our global business model and the advantages of our technology neutral strategy meeting demand for both combustion engine vehicles and electrified vehicles.

With the successful rollout of the <unk> classic <unk> III, we have kicked off a major product offensive that will provide the BMW brand with crucial momentum for the future.

Walter has shared with you how we have navigated 2025 and delivered on major kpis in our operational business. Despite the tariff impacts developments on currency markets and the intense market situation in China.

Disciplined and consistent cost reduction underpinned our farms.

Maximilian Schöberl: Disciplined and consistent cost reduction underpinned our performance. We have also provided comprehensive and reliable guidance for 2026, factoring in all known and decided aspects against an uncertain geopolitical backdrop and tariffs. With that, I will turn the floor over to you and we are happy to take your questions. Our first caller will be Patrick Hummel from UBS. Patrick, I can see you on the screen. Welcome this morning and please, the stage is yours.

We have also provided comprehensive and reliable guidance for 2026 factoring in all known and decided aspect against an uncertain geopolitical backdrop and tariffs.

With that I will turn the floor over to you and we are happy to take your questions.

Our first caller will be Patrick Hummel from UBS, Patrick I can see you on the screen welcome. This morning and please the stage is yours.

Yes, Thank you very much Stefan good morning, gentlemen.

Thanks for taking my question.

Patrick Hummel: Yeah, thank you very much, Stefan. Good morning, gentlemen. Thanks for taking my question. Oliver, first of all, your tenure is coming to an end soon, and you've not been shy to be anti-consensus on many of the key topics that we have discussed with you over the years. Your way of doing things or the BMW way of doing things has worked out pretty well compared to competition. I'm curious, when you soon hand over to Milan, what's actually your high-level advice to him? And what have been your key learnings over your tenure that you think are going to be most valuable for your successor, and the entire company in the future?

So Oliver first first of all your.

Your tenure is coming to an end soon and <unk> not been shy to be anti consensual and many of the key topics that we have to discuss with you over the years.

But your way of doing things or the BMW way of doing things has worked out pretty well compared to competition. So I'm curious when you soon hand over to Milan, what's actually your high level advice to them and what have been your key learnings over your tenure that you think are going to be most valuable for your successor.

And the entire company in the future and the second one for voucher.

I have to dive a little bit deeper into the 2026 guidance if you don't mind.

Patrick Hummel: The second one for Walter, I have to dive a little bit deeper into the 2026 guidance, if you don't mind. You take certain assumptions for tariffs that some people this morning called quite optimistic, such as the EU lowering the tariff to zero later in the year. Also, some sort of USMCA agreement that would improve the current situation. To better understand and quantify what you've baked in versus the status quo, can you just give us the 105 basis points of tariff impact? Alternatively, what would be the right number in a no-deal scenario? Would it be 175 basis points, 150? Whatever that would be helpful.

You take certain assumptions for tariffs that some people. This morning called quite optimistic such as the EU lowering the tariff to zero later in the year also some sort of U S. MCA agreement that would improve the current situations so to better understand and quantify what you've baked in versus the status quo can you just give us.

The the 105 basis points of tariff impact Alternatively, what would be the right number in a no deal scenario would it be 175 basis points. When 50, whatever that would be helpful. And if you don't mind elaborating a little bit on the other key building blocks in the EBIT bridge for 2026, the usual volume price mix.

Patrick Hummel: If you don't mind elaborating a little bit on the other key building blocks in the EBIT bridge, for 2026, the usual volume, price, mix, costs, D&A, all of these. Thank you very much.

Costs DNA all of these thank you very much.

Thank you very much Patrick for your questions and also for being so kind to directly allocating them to Oliver and Volta that of course makes my job easier.

Maximilian Schöberl: Thank you very much, Patrick, for your questions and also for being so kind to directly allocating them to Oliver and Walter. That of course makes my job easier. So first, the question to Oliver from your side with regards to his tenure as it comes to an end after more than three decades with the BMW Group, and regarding high level advice for Milan. Over to you, Oliver.

So first the question to Oliver from your side with regards to his tenure as it comes to an end after more than three decades with the BMW group and regarding high level advice, if I'm Elon over to you Oliver.

Good morning, Patrick I regard being anti consensual as a compliment our you know where we are living in a competitive environment to be consensual is probably the first mistake you heard about to do if you are if you want to compete in a in a pretty pretty.

Oliver Zipse: Good morning, Patrick. I regard being anti-consensual as a compliment. You know, we are living in a competitive environment, and to be consensual is probably the first mistake you are about to do if you want to compete in a pretty high-level competition in our industry. You know what drives us? If I give one word to what we, it's not me, it's we including Milan, of course. What we have been doing for the past years is to become antifragile, if I might use that word. Antifragile means you're profiting from a highly volatile world. There are three components to that, and we've built on that competitive strength for the past 10 years. To be a global company helps you.

High level of competition in our industry.

You know what drives us if I give one word to what we it's not me. It's it's are we including Midland of course, what we've been doing for the for the past years.

Is to become anti fragile.

I'd use that word.

And as her into a fragile means youre profiting from a highly volatile world.

And there are three components to that and we've built on that competitive strengths for the past 10 years to be a global company helps you like you've seen we have been shrinking in China, but we have overcompensated with growth in Europe, and rest of the world and the United States.

Oliver Zipse: Like you have seen, we have been shrinking in China, but we have overcompensated with growth in Europe, and the rest of the world, and the United States. To be technology neutral or technology open, however you want to phrase that, helps you to quickly respond to market needs and requirements, you know. You have very fast-growing electrifying countries, and you have countries who hit the brakes, you know. To assume that would never be the case is the first mistake you do. This is a highly fluctuating world and under the assumption which every year holds true, the number of cars being sold in the world as new cars is increasing, not decreasing. The world market is there. The third component is, of course, that you offer cars in all segments with all drivetrains.

Too.

Two to be technology neutral or technology open. However, you want to phrase that helps you to quickly respond to market needs and requirements. You know and you are very fast growing.

Electrifying countries and you have.

Countries, who hit the brakes.

And to assume that would never be as the cases. The first mistake you do this is a highly fluctuating world and under the assumption, which every year holds true the number of cars being sold in.

In the world as new cars is increasing not decreasing so the world market is there.

And the third component is of course that you are.

That you offered cars in all segments with all drivetrain. So it starts with a.

With the many then goes over to the lower segments at BMW, all the way up to seven series and now very soon Alpina plus Rolls Royce of course, so all these three elements built into a fragile environment.

Oliver Zipse: It starts with a MINI, then goes over to the lower segments at BMW, all the way up to 7 Series, and now very soon, Alpina plus Rolls-Royce, of course. All these three elements built an antifragile environment. Then all you have to do, you have to train your muscle to react quickly, and that is what we have done through all supply chain crises we might have had. Corona crisis, energy, whatever you call crisis, it helps you to train that muscle of maximum flexibility. In Milan, you know, you won't even feel that there is a change in top leadership because he has been with us all along. There's good reason that he becomes my successor, though, individual people do not make a big difference in our strategy.

And then all you have to do you have to train your muscles to react quickly and that is what we have done through all supply chain crisis, we might have had.

Corona crisis energy whatever you call. It crisis. It helps you to trained at Maxim.

That muscle of of maximum flexibility in Milan.

You won't even probably you won't even feel that there is a change in top leadership because he has been with US all along there's good reason that it becomes my successor zone.

Individuals people do not make a big difference in our strategy because our strategy is built up off of close.

Negotiation and devising a strategy with top leadership and top leadership at BMW is 65.

Oliver Zipse: Because our strategy is built up of a close negotiation and devising a strategy with top leadership. Top leadership at BMW is 65 vice presidents and 7 board members. It's not, therefore, a top-down issue. There will be some very, very stable elements in our strategy.

Vice President's and seven seven board members, it's not and is not therefore, not a top down issue. So there will be some very very stable elements in our strategy.

Thank you very much Oliver and now turning to your second question Patrick It was about the 2026 guidance and providing some additional detail specifically on tariff assumptions and you were asking about individual building blocks within the EBIT bridge in for that of course, I would like to hand over to you Walter.

Maximilian Schöberl: Thank you very much, Oliver. Now turning to your second question, Patrick, it was about the 2026 guidance and providing some additional detail, specifically on tariff assumptions, and you were asking about individual building blocks within the EBIT bridge. For that, of course, I would like to hand over to you, Walter.

Hello, Patrick.

So first I think you have with respect to the tariffs assumption why stops because everyone is raising this question of course. So eventually we start with 2025 first of all to have a base.

Walter Mertl: Hello, Patrick. First, I thank you with respect to the tariffs assumption. Why start? Because everyone is raising this question, of course. Eventually we start with 2025, first of all, to have a base. In 2025, we had a lot of ups and downs. You remember in Q1, we had more or less three-quarters of an EBIT margin hit because of China cars coming into Europe. We started with the US then in Q2, and we had 2.0% in Q2, and 1.75 percentage EBIT hits in Q3 as well as in Q4. You do know I'm not specifying it, whether it is 1.4, and I would still speak about 1.5, or whether it is 1.6, I would also classify it as 1.5.

In 2025, we had enough lot of ups and Downs you will remember in Q1, we had more or less three quarter, often EBIT margin hits because of China costs coming into Europe, and we start Avista U S and in Q2, and we had two <unk> percent in Q2, and one and three quarter percentage if it hits.

In Q3 as well as in Q4, and you do know I'm not specifying it rather it is 1.4 and I will speak about one and a half or whether it's one six I was also classified as one and a half. So there is a variance in already now.

Now going forward, we assume on fee wrote about it on page 263 for everyone. In this call is page two in the 63 on the tariffs.

Walter Mertl: There is a variance in already. Now, going forward, we assume, and we wrote about it on page 263 for everyone in this call. It's page 263 on the tariffs. It's about in the second half year, we assume that we will see changes to the better. We assume EU and the US will come to the final agreement, and we still assume it is nil from the second half year onwards, meaning July, whatever July really means then. Ultimately, we also assume that there will be a better negotiation between the US, with Mexico and Canada and some other countries. With that, we assume that we are not having a 1.75 burden in the first half year, but a lower.

It's about in the second half year, we assume that we are we will see changes to the better the assume EU and the U S will come to the final agreement and we still assume that is needed.

From the second half year on box, meaning July.

Whatever July really means.

And ultimately we also assume that there will be a better negotiation between the U S with Mexico, and Canada and some other countries.

And with that.

<unk> that we are not having a one and three quarter burden in the first half year.

And overall in the year 2006, we shall see one and one quarter 1.25 <unk> points burden in the EBIT margin, it's not on top it is in steps after 1.5% EBIT pattern in 2025, so it's that's not on top.

Walter Mertl: Overall, in the year 2026, we shall see 1.25 EBIT points burden in the EBIT margin. It's not on top. It is instead of the 1.5% EBIT burden in 2025. Instead, not on top. I think that's the key element number one. Then you ask for some further details, which we wrote on page 264 for everyone. I'm happy to highlight these ones again. We are working on all cost elements. Whether we speak about CapEx, we will reduce CapEx. We will reduce also R&D further on the German commercial law side. We will reduce also the fixed costs. That means sales and general costs, SG&A. On all elements.

That's the key element number one.

And then you asked for some further details, which we wrote on page 264 for everyone.

I'm I'm happy to highlight once again, so we are working on on all cost elements that we speak about Capex, we will reduce capex. We will reduce also R&D further on the German commercial law sites.

And we will reduce also the fixed cost that means sales and general costs SG&A. So on all elements perhaps.

We shouldn't forget about the depreciation, which we see based on the start of the Nordic cluster you saw some already in Q4 adjusted of it and just the real start of production, we see of course, the depreciation starting across the year.

Walter Mertl: We shouldn't forget about the depreciation, which we see based on the start of the Neue Klasse. You saw some already in Q4, or just a bit. With the real start of reduction, we see of course the depreciation starting across the year. With that, there's a burden. On top of that, with the start of the Neue Klasse, you remember that our activation on development costs is finished six months after start of production. We focused heavily on all elements of the Neue Klasse. All our tech clusters are getting activated, and six months after start, not anymore. Hence, our activation ratio is going down in the second half year. Lately, but you shall see already some elements in the first half year.

And with that there's a burden and on top of that just to start off tomorrow. A closet you remember that our activation on development costs is finished six months after start of production.

And we focused heavily on all elements of Tonight across all our tech clusters.

Ah getting activated in six months after start not anymore hands, our activation ratio is going down.

In the second half year latest produce Chelsea already some elements in the first half year.

Ending before the next question is coming that we assume and activation ratio a capitalization ratio of R&D costs of around 30%.

Walter Mertl: Before the next question is coming, that we assume an activation ratio, a capitalization ratio of R&D costs of around 30%. You saw that in 2025 we had 41% capitalization ratio of R&D, and we assume it is around 30%. That gives you also a burden on top of that. Of course, we also wrote about the product measures we described and discussed even in China. On the other side, I have to say, currently in the first two months, we see transaction price stabilization, even to the better. That works out all these product measures we did starting in November, and now one month after the other, we are shifting something behind. Also, the dealer network is stabilizing themselves, so that should help a bit at least.

You saw that in 'twenty, five we had 41% capitalization ratio of R&D and we assume it is around 30% that gives you also a burden on top of that.

And.

Of course, we also wrote about the product measures, we described and discussed even in China on the other side I have to say currently in the first two months, we see transaction price stabilization.

Even to the better so that works out all these product measures with its starting in November now one month. After the other we are shifting something behind and also the dealer network is stabilizing themselves so that should help a bit at least.

Now if you take all these elements together.

Still the happened is bigger than the tailwind, which we're working on.

Walter Mertl: Now, if you take all these elements together, still the headwind is bigger than the tailwind, which we're working on. That ended up in the assumption that we rather guide for the segment automobile 4 to 6% instead of 5 to 7% last year. With that burden, we come also to the conclusion for the group that we have a moderate decline. A moderate decline is between 10 and 15% minus the previous years, which I think I would like to underpin. Last year was a very good group profit.

And that ended up in the assumption that we have rather a guide for the segment automobile 4% to 6%.

Instead of five to seven last year.

And with that burden.

Also to the conclusion for the group.

That we have a moderate decline moderate decline is between 10 and 15% minus the previous years.

Rich I think I would like to underpin last year was a very good group profit after year S guidance, and we are better than 10 million euros profit. So that is a very high.

Oliver Zipse: For the year as guided, and we are better than EUR 10 billion profit. That is a very high position to start with in this current environment, especially if I look around some others. Hope that helps, Patrick.

<unk> positioned to start with in this current environment, especially if I look around some of us hope.

Hope that helps public.

Thank you Roger and all the best.

Thank you very much Volta for this detailed explanation we have the next caller up and I hope, we will see them on screen and just the second that will be right here, we seem Jose as of Monday from JP Morgan Good morning Jose.

Patrick Hummel: Thank you, Walter, and all the best, Oliver.

Maximilian Schöberl: Thank you very much, Walter, for this detailed explanation. We have the next caller up, and I hope we will see him on screen in just a second. That will be right here. We see him, José Asumendi from J.P. Morgan. Good morning, Jose. The stage is all yours for your questions. Thank you.

Stages, all yours for your questions. Thank you and very good morning. Thank you very much.

Just two questions Oliver I would love to hear your thoughts when you look at the.

José Asumendi: Very good morning. Thank you very much. Thank you, Stefan. Two questions, please. Oliver, I would love to hear your thoughts, please. When you look at the, you know, the Chinese market over the next, let's say, three years, what do you think are the biggest challenges BMW will have to confront in the region? And then looking back then at the work you've done the last three, five years, how are you leaving the group in terms of the manufacturing and the product offensives to be able to compete and obviously, you know, take further market share? And then Walter, I'd love to also get some thoughts, please. What do I see at the lower end and the upper end of the margin range?

The Chinese market over the next let's say three years.

Do you think are the biggest challenges BMW will have to confront in the region and then looking Pakistan and the work we've done in the last three five years.

Are you, leaving the group in terms of the manufacturing and the broad consensus seems to be able to to compete and obviously take further market share.

And then Walter.

Laughter also contain some floor space, what do I see the lower end on the upper end of the margin range that you provided already very detailed reply to this but a bit more thoughts as to.

The lower end on the upper end of the margin rates for the automotive division.

José Asumendi: You provided already a very detailed reply to this, but a bit more thoughts as to, you know, the lower end and the upper end of the margin range for the automotive division. Whether we should expect some, potentially some pricing relief in 2026 in China, as hopefully you will have to support less the dealers in China in 2026 in comparison to 2025. Thank you.

And whether we should expect some potentially some pricing relief.

<unk> 26 in China.

Hopefully you will have to support less the dealers in stepping into this a simple comparison.

Thank you.

Thank you very much for your three questions Jose on the first two I will then hand on to all about the third one obviously to Volta <unk> first question being from your side.

Maximilian Schöberl: Thank you very much for your 3 questions, José. The first 2 I will then hand over to Oliver, the third one, obviously, to Walter. First question being from your side, what is our expectation on the Chinese market over the next 3 years? Whether we see any big challenges and what are those? Oliver, please go ahead.

What is our expectation on the Chinese market over the next three years, whether we see any biggest big challenges and what are those Oliver. Please go ahead.

When you look at the <unk>.

<unk> market than the first thing you must recognize this is by far the largest car market in the world.

Oliver Zipse: When you look at the Chinese market, then the first thing you must recognize, this is by far the largest car market in the world. All along it was clear the largest car market in the world will be highly competitive, highly innovative, and of course, dominated by the largest local players. What happened, and it's still happening in this market, is not a surprise. It's normalizing. When you say normalizing, that means there is competition in a saturated market like we have in Europe and in the United States. To survive in such an environment of saturated market, of course, you have to safeguard your profitability, and you cannot expect that you have higher profitability as somewhere else in the world, which is not a big disaster and not a surprise.

And all along it was clear the largest car market in the world will be.

A highly competitive highly innovative and of course dominated by the largest local players.

So what happened and is still happening in this market is not a surprise it's normalizing.

So when you.

When you say normalizing that means there is.

Competition in a saturated market like we have in Europe, and the United States.

To survive in such an environment, a saturated market of course shift to safeguard your profitability and you cannot expect that you have higher profitability is somewhere else in the world, which is not a not a big disaster and not a surprise.

Now with the lawyer Cassa coming up and we already received very high.

Oliver Zipse: Now, with the Neue Klasse coming up, we already received very high resonance from the Neue Klasse, the iX3, which will also be available very soon in the Chinese market in the long version. The feedback we get is as positive as we have them here in Europe. There is no difference. Underlining that we are highly competitive. Why are we highly competitive? The car in China is very much made in China for China. We are collaborating, of course, with local supply chains. We are collaborating with leading Chinese tech players like Alibaba, Huawei, Momenta. We have a local production at the Shenyang plant, and we will present the car at the Beijing Auto Show next month.

The resonance.

From from the Norway classes, the <unk> III, which will also be.

Available very soon in the Chinese market in the long version.

The feedbacks, we get are as positive as we have them here in Europe is there is no difference.

Underlining that that we are highly competitive why my all behind the competitive the car in China.

Is very much made in China for China, we are collaborating of course with local supply chains, we are collaborating with leading China Tech players like Alibaba Huawei momentum with <unk>.

Local production of the Shin young blend and we will present the car at the Beijing Auto show next month.

So this car.

Is underlining exactly what the next three years and that is your question what is important in China high local content.

Oliver Zipse: This car is underlining exactly what the next three year, and that is your question, what is important in China? High local content, super innovative, and highly competitive. All three elements is inside the iX3 for the Chinese market. There's a very positive outlook. As we said before, this is not a car, this is a technology platform with technology clusters. All cars which are being launched after that, for example, the local X5, will bear all these technologies. We have a positive outlook into that market, especially with the launch of the car and the main fundamental, if you want to compete in the Chinese market in the future, the Chinese content will be ever higher, and that's exactly what we do.

Super innovative and highly competitive in all three elements.

Is.

Inside the <unk> III for the Chinese market, so theres, a very positive outlook and as we said before this is not a car. This is a technology platform with technology clusters in all cars, which are being launched after that for example, the local X five.

Will bear all of these technologies.

So we have a positive outlook.

That market, especially with the launch of the car.

And the main fund them at.

If you want to compete in the Chinese market in the future the Chinese content will be ever higher and that's exactly what we do.

Thank you Oliver for this look on into the future regarding the Chinese market and following up with Jose's second question what have we done in the last three to five years, specifically with regards to manufacturing and our product offensive.

Maximilian Schöberl: Thank you, Oliver, for this look into the future regarding the Chinese market. Following up with Jose's second question, what have we done in the last 3 to 5 years, specifically with regards to manufacturing and our product offensive?

I mean, what do you see an hour.

Production and product that always comes together kind of production comes from product and what we see with all these technology clusters, which you will see in more than 40 cars until end of 2027.

Oliver Zipse: I mean, what you see in our production, end product, that always comes together, kind of. Production comes from product. What we see with all these technology clusters, which you will see in more than 40 cars until end of 2027, you will see exactly the same thing in the production areas. You will see that in productivity, the throughput with AI applications are as high in the manufacturing area as it's in the product area, and which will help increase productivity as well as the quality and the output of the cars. New technologies are at the forefront of BMW, and this process of optimization will never end. There is never an end.

You will see exactly the same thing in the in the production areas.

And you will see that in productivity.

The the throughput with the AI applications.

S as high in the manufacturing area as it's in the product area, and which help we will increase productivity as well.

As well as the quality and the output of the cars.

So new technologies are at the forefront of BMW and did this this.

This of Optimisation will never end Theres never and we every year, we have pretty tough.

Our targets for productivity improvements. So every year. This production system becomes more expensive and there's a good reason why.

Oliver Zipse: Every year we have pretty tough targets for productivity improvement, so every year this production system becomes more expensive. There's a good reason why, while Milan becomes my successor, because he has done that very, very successfully in the manufacturing area. Of course, you will see that at the end you will see bottom line. Production is well on track worldwide. The Munich plant here in Munich will start very soon with the i3. It has been completely rebuilt. In Spartanburg, the new X5 starts very soon, and next year, the new X7. In Leipzig and Regensburg, they're both working three shifts because of the high demand for the cars in these factories. The new plant in Debrecen also works well.

While mainland becomes more successful because he has done that very very successfully in the manufacturing area.

Of course, you will see that at the end you will see bottom line.

And and production is well on track worldwide. The Munich planned here in Munich will start very soon with the <unk> three it has been completely rebuilt and spartanburg.

<unk> X five starts very soon and makes sure that Nu X seven.

In Leipzig, and Regensburg, they're both working three shifts because of the high demand for the cars in these in these factories.

The new plant in <unk> Ultra works well. So all plants are full speed ahead for the product defensive we are undertaking now.

Oliver Zipse: All plants are full speed ahead for the product offensive we are undertaking now.

Thank you very much Oliver and now moving to Jose's third question I would like to pass it onto Volta and I think it goes pretty well hand in hand with Patrick's question on guidance 2026, So Jose is asking how the lower and the upper end of the margin corridor in the automotive segment could be driven.

Maximilian Schöberl: Thank you very much, Oliver. And now moving to Jose's third question. I would like to pass it on to Walter, and I think it goes pretty well hand in hand with Patrick's question on guidance 2026. Jose's asking how the lower and the upper end of the margin corridor in the auto segment could be driven. Walter, over to you.

Alta over to you.

Yeah, well, a cortisol cortisone right.

So that's the reason why it's four to six and of course as we are in the beginning of this year everything could happen as we remember in 'twenty 512 months ago.

Walter Mertl: Yeah. Well, a corridor is a corridor, right? That's the reason why it's 4 to 6. Of course, as we are in the beginning of this year, everything could happen. As we remember in 2025, 12 months ago, over the course of following 8 to 9 months, also a lot of things have changed on the cost side, on the pricing side, across the geopolitics, and the regions. Luckily, we are a global player, and hence, in 2025, we have been able to shift margins also between China with the success, especially in Europe and the US. You can only do that as a global player, and we're happy to do that. Other than that, of course, it's about pricing, it's about costs, targets, how we achieve them. I think in 2025 you saw that we executed very good in my eyes.

Over the course of following eight to nine months also a lot of things have changed.

On the cost side on the pricing side across the geopolitics and the regions. So Luckily we are a global player and hands in 'twenty five we have been able to shift margins also between China with the success, especially in Europe and the U S.

And you can only do that as a global player and we're happy to do that other than that of course, it's about pricing its about cost targets, how we achieve them and I think in 25, you saw that we executed.

Very good and my eyes and of course, it's about the.

The tariffs, but our assumptions are right on out on the other sides, there's always risk and there's always a chance.

Walter Mertl: Of course, it's about the tariffs, whether our assumptions are right or not. On the other side, there's always risk and there's always a chance, and we try to organize them from a portfolio aspect. We manage that one in the same year this year as we did it last year. Usually you see that driving costs down is always a good thing because that is in our own hand. All the rest we have to organize flexibly with the markets on the pricing side. So far, I think 4 to 6 is a very good prediction and guidance.

And we try to organize them from a portfolio aspect and we manage that one in the same year. This year as we did it last year and usually you're seeing that's driving costs down is always a good thing because that is in our own hands. All the rest we have to organize flexibly with the markets.

On the pricing side, but so far I think four to six is a very good prediction and guidance.

Thank you very much Volta for the sensor and we will now move on to the next caller, we should be seeing Tim <unk> from Deutsche Bank, and we see them right here already on screen. Good morning, Tim The stage is yours. Please go ahead with your questions.

Maximilian Schöberl: Thank you very much, Walter, for this answer, and we will now move on to the next caller. We should be seeing Tim Rokossa from Deutsche Bank, and we see him right here, already on screen. Good morning, Tim. The stage is yours. Please go ahead with your questions. Tim, we are not hearing you, and I'm wondering whether it is technically on our side or whether it is on yours.

Tim we are not hearing you and I'm wondering whether there's technically on our side or whether it is on U S. Yes, sorry, I was not on muted by the host Jeff Alright.

Believe how happy I am that it wasn't.

Tim Rokossa: Yeah, sorry, I was not unmuted by the host yet. Now I'm there.

Thank you very much.

Maximilian Schöberl: I can't believe how happy I am that it was on your side.

Thank you Stefan Ali White Walker.

I have two and a half questions. Please the first one goes to you Oliver.

Tim Rokossa: Thank you very much. Thank you Stefan, Oliver, and Walter. I have 2.5 questions, please. The first one goes to you, Oliver. When we think about the support from the EU, it feels like the regulator has finally understood how important this industry is and wants to help, but whatever they come out with seems oddly complex and difficult, and probably beyond the point. I wrote for Oliver Blume yesterday, and obviously there was also a lot of investor questions about what he thinks the industry or the EU should do for the industry. Some very specific points about EU-made BEVs, for example, getting support for them. Do you feel like the EU has finally understood that they need to help this industry and want to help them? What would be your view of what they should do to do that?

When we think about the support from the EU. It feels like the regulator has finally understood. How important this industry is and wants to help but whatever they come out with seems oddly complex and difficult and probably beyond the point.

<unk> Oliver Blume yesterday, and obviously there was also a lot of investor questions about what he thinks the industry that you should do for the industry. Some very specific points about EU made best sports fans are getting support for them do you feel like the U S. Finally understood that they need to help this industry and want to help them and what would be your view of what they should do.

With that and then secondly, stephane I'm allocating the questions here as well, but obviously, please feel free to relocate them when we think about China, maybe Walter here.

Tim Rokossa: Then secondly, Stefan, I'm allocating the questions here as well, but obviously please feel free to reallocate them. When we think about China, maybe Walter here, what do you say to people that just feel like they have a bit of a déjà vu moment at this point in time compared to last year? Where you also were very optimistic on the Chinese development. You also guided for some improvements from what we see right now. I understand the transaction prices have stabilized, but it still really feels like something that might be a bad awakening in the summer. The final point probably also to you, Walter, why do you decide to bake in the tariff easing in the rest of the year? When we look at someone like Daimler Truck this morning, for example, they don't.

Why do you say to people that just feel like to have a bit of a deja vu moment at this point in time compared to last year.

Are you also we're very optimistic on the Chinese developments you also guided for some improvements from what we see right now I understand the transaction prices are stabilized, but its still really feels like something that might be a bet awakening in the summer and the final point, probably also to you Walter why do you decide to bake in the tariff easing.

The rest of the year when we look at someone like Daimler truck. This morning. For example, they don't I think there's reasons to believe that you should rather show for what is it the reality today, rather than taking a view on when this would be fine. Thank you.

Tim Rokossa: I think there's reasons to believe that you should rather show what is the reality today rather than taking a view on when this would be fine. Thank you.

Thank you very much for your questions. Tim first one will be going to all of the other two then obviously to Volta and the first one with regards to the EU support from the EU has the regulator really understood.

Maximilian Schöberl: Thank you very much for your questions, Tim. First one will be going to Oliver, the other two then obviously to Walter. The first one with regards to the EU, support from the EU. Has the regulator really understood? Oliver, over to you, and since the question already came up this morning in media, maybe the concise, brief version on that question.

Oliver over to you and since the question already came up this morning and media maybe the concise brief version on that question.

I have tried to make it group Tim it's great that you're participating you you seem to be part of the inventory of this meeting I cannot remember the last year that you have not been here. So so good morning to us specifically.

Oliver Zipse: I'll try to make it brief. Tim, it's great that you're participating. You seem to be part of the invitees of this meeting. I cannot remember the last year that you have not been here. Good morning to you specifically. I will try to make it very short. Very clearly, the EU is making things complicated. Complicated is not the problem. We can control complexity. That's not the problem. They're working against the industry. In the new proposal which came out in December, they tried to put even more topics in where markets are restrained from developing themselves. One portion is, yes, they go from 100% to 90% CO2, but how to achieve that?

I will try to make it very short very clearly the EU is making things not complicated complicated is not the problem. We can we can control complexity, that's not the problem, but they're working against the industry.

And the news proposal, which came out in December they tried to put even more topics in where markets are restrained from developing themselves.

One portion is yes, they go from 100% to 90% you too, but how to achieve that in the in the small print.

It actually works against technology openness, the second element and there was not is not in the legislation before.

Oliver Zipse: In the small print, it actually works against technology openness. The second element, that was not in the legislation before, they tried to put European content in such a way that export models and the German car industry is very much export-oriented, is neglected. All the European content which comes out of export is simply not taken into account, which is a very dangerous thing I think, because this creates a lot of job and a lot of value. To only favor smaller cars which are 4.20 meters and longer. You can do that. We don't mind giving incentives.

They tried to put European content in such a way that export models and.

The German car industry is very much export orientation is neglected so all of the European content, which comes out of the export is simply not not taken into account, which is a very dangerous thing I think.

Because this creates a lot of chop and in a lot of value.

And two two.

The 222, only favor smaller cars, which are four meters 20 in longer you can do that we don't mind.

Given incentives, but how it's written it it creates two classes of cars and the and that of course reduces the competitiveness of the whole industry. So.

Oliver Zipse: It creates two classes of cars and that of course reduces the competitiveness of the whole industry, you know. The small print behind it is still very much technology open, too much focus on electric only, and not enough focus on real CO2 reduction. I end with the question, what happens to a regulation where the markets in the electric arena with also with our products grows to 50% market share and then it stalls? If that regulation is implemented and that is happening in the market, you will shrink this industry. I think this is a dangerous path to go to. With that, I stop. I was supposed to be short. Thank you.

So the small print behind it is still very much technology unopened too much focus on electric only and not enough focus on real C O two reduction and.

And I'll end with the question what happens to a regulation where the markets.

In the electric arena with also with our products grows to 50% market share and then installs.

Is that regulation is implemented and that is happening in the market you will shrink as industry and I think this is a dangerous path to go to them and with their desktop.

Supposed to be short thank you.

Thank you very much Oliver, but I think the message came across.

Second question over to you Volta was with regards to the guidance 2026 of our provision on the Chinese market its development, whether it might be too optimistic please over to you.

Maximilian Schöberl: Thank you very much, Oliver, but I think the message came across. A second question over to you, Walter, was with regards to the guidance 2026, our provision on the Chinese market, its development, whether it might be too optimistic. Please, over to you.

Okay.

Too optimistic view, rather like risks to incorporate them as chairman sundry no. We do not we have to see chances and risks and with respect to China. If you really compare the last six months and you'll see months. After months are you eventually rather quarter by quarter.

Walter Mertl: Too optimistic. We rather like risks to incorporate them as Germans, don't we? No, we do not. We have to see chances and risks. With respect to China, if you really compare the last six months, and you see month after month or you eventually rather quarter by quarter, you will see that the dealer network and all these measures we have taken in place are starting to get more grasp and starting to be more effective and stabilizing the dealer network. That's the first of all, because in the Chinese environment, on all dealers, not just BMW, the whole industry, there's still a lot of irritation, let's say, with all these new rules also come in place, right? That price has to be finally over costs, which I really appreciate from SAMR, the new rules which they also double-check. I'm really highly appreciating those.

You will see that the dealer network and all these measures we have taken in place are starting to catch more cross and starting to be more effective in stabilizing the dealer network. That's the first of all because in the Chinese environment on all dealers not just BMW the whole industry.

There's still a lot of irritation, let's say with all these new rules also commonplace ride that price has to be finally over our costs, which I really appreciate from S. A M R.

The new rules, which I also double check so I'm I'm really highly appreciating those so that's already a positive sign with respect to the transaction price and we see that in December and January and February and they are stabilizing and even rising so theyre, becoming better positive for us.

Walter Mertl: That's already a positive sign with respect to the transaction price. We see that in December, in January, in February, and they are stabilizing and even rising. They are becoming better, positive for us. Second, we also did a lot of product measures. In November, we started the first launch, in February, the second one, and the next one will come. We are enhancing product attractivity and increasing transaction prices for those products, and it works. The third one, which is, well, take it optimistic or realistic, whatever. If you see the run rate of our sales in China, if it moves on like that, we can achieve previous year. Of course, if everything is crashing, then we have a different scenario, but our run rate is stable. Don't mix up the Chinese New Year.

Second we also did a lot of product measures.

In November we started the first tranche in February the second one and the next one will come so we are enhancing product at their activity.

And increasing transaction prices for those products and it works.

And the third one which is well taken optimistic or realistic whatever if you see the run rate of our sales in China.

If it moves on like that.

We cannot save previous year.

Of course, if everything is crashing and we have a different scenario, but our run rate is stable.

And don't mix up to Chinese new year is always a difference between January and February that has always to be a year to date February number out of us.

Walter Mertl: There's always a difference between January and February that has always to be, a year to date February number. Otherwise, you would fail yourself. Taking all this into consideration, we see the chance, and we wrote in our, guideline, guidance that we can achieve previous year. We didn't say that we want to achieve the previous year. Of course, we also aim for profitable growth. That's and stabilization, always the thing. Given all the facts, and given what we did in the network, we can achieve previous year. Even if you compare the numbers year to date February, once you saw them already from CAAM, you see that we are still on a very good track compared with all other competitors, whether they are Chinese or traditional ones.

You would fail yourself so taking all this into consideration received a chance and we wrote in our guideline guidance that we can achieve previous year.

Didn't say that we want to achieve the previous year of course, we also aim for profitable growth and stabilization overstaffing, but given all the facts and careful what we that's in the network. We can achieve previous year, even if you compare the numbers year to date February once you saw them already from CIM.

You'll see that we are still on a very good track compared with all other competitors, whether they are Chinese or traditional ones from that perspective, I still think what we've roads.

Walter Mertl: From that perspective, I still think what we wrote is absolutely spot on and correct. With respect to the tariffs, why I am baking them in already. Well, I think we have to mention that one, what our assumption is, plus a quarter of an EBIT margin. Yeah, that is also a lot of money. We will also find some assumptions and some measures in order to compensate should we fail in our assumption. You saw that last year. 12 months ago, we've been the only ones mentioning that we bake in 1% extra costs for tariffs, and ultimately, they have become 1.5%. We found measures to try to compensate this 0.5 percentage point. Now we speak about a difference of 0.25%, and we still have 9.5 months to go.

It's absolutely spot on and correct.

And with respect to the terrorists by I am making them in already.

Well I think we have to mention that one but our assumption is plus a quarter off on EBIT margin. Yeah that is also a lot of money.

But we will also find some assumptions and some measures in order to compensate should we fail in our assumption and you saw that last year.

12 months ago.

We've been the only ones mentioning that we baked in 1% extra costs for tariffs and ultimately they have become one and a half.

And we found measures to try to compensate us half a percent point.

So now we speak about a difference of a quarter per cent and we still have mine and a half months ago.

On the other side, we really hope that.

Terrorists will be loads across the world.

Walter Mertl: On the other side, we really hope that tariffs will be lowered across the world, because free trade would be best for everyone. That is also a communication from us to everyone. Hope that helps.

For each rate would be best for everyone.

So that is also a communication from us to everyone hope that helps.

Great. Thank you very much Volta for your answers. Thank you Tim and we now have next up in line.

Maximilian Schöberl: Great. Thank you very much, Walter, for your answers. Thank you, Tim. We now have next up in line, Horst Schneider from Bank of America, and there he is. Horst, good morning to you, and please, the stage is yours.

Horst Schneider from Bank of America, and various host of good morning to you and please the stage is yours.

Yeah, very good morning to Munich and to support them.

Horst Schneider: Yeah. Very good morning also to Munich, and to the board. I have got two, three questions, please. The first one is regarding cost versus volumes. What I have got to say is what is really outstanding, Oliver, also what you have achieved over your tenure is basically the level of cost-cutting without announcing big major programs and layoffs. Also for 2026, my impression is that the large part of the stability you aim for come from lower costs. That of course then raises for me the question, what comes after 2026? Here I refer more to the midterm guidance. Is now the cost-cutting potential basically exploited after 2026 and needs the margin growth from 2027 onwards to come more from volume growth?

I have got.

Two or three questions. Please.

The first one is regarding cost versus volume.

But I've got to say, it's what it is really outstanding.

Also what you have achieved over your tenure is basically is a level of cost cutting this out announcing.

Major programs and layoffs.

Also for 2026, my impression is that a large part of the stability you aim for come from lower cost debt of course and racist for me. The question what comes after 2026 and here I refer more to the midterm guidance.

It's now the cost cutting.

Potential basically exploded after 2026 and meets the margin growth from 2020 onwards to come more from volume growth and with that the question would be.

Do you expect them at a premium market to grow again.

Horst Schneider: With that, the question would be, do you expect the premium market to grow again, or you expect to gain market share? You said today in the media call, Oliver, that you expect not to lose market share to the Chinese OEMs in Europe. I share that view. You aim to take market share from Chinese OEMs in China, or you take more market share from legacy OEMs, from your traditional peers, so 2027. What is the trade-off between volume and costs regarding the midterm guidance? The second question that I have is regarding EVs. I was surprised about this great contribution and reconciliation in Q4. Walter, maybe a question for you, since now I think BEV leasing in the US is structurally lower in 2026.

Expect to gain market share you said today in the media call all of us at <unk>.

Yeah.

<unk> not to lose market share to the Chinese Oems in Europe are shares if you will.

But you aim to take market share from Chinese Oems in China, or you take market share from legacy OEM from your traditional peers.

So what is the trade off between volume and cost regarding the midterm guidance number. The second question that I have is regarding EPS I was surprised about this great contribution and reconciliation in Q4.

So Walter maybe a question for your sense now I think definitely is in U S. A structurally lower in 2006, we going to see is this tailwind through 26 at this as a major part basically for the group earnings and maybe you can remind us how you treat your.

Horst Schneider: We're gonna see this tailwind through all 2026, that this is a major part basically for the group earnings. Maybe you can remind us how you treat EV residual values in your portfolio. You constantly write down, or you write down basically at the end of the contract period. What is now the share of EVs in your leasing portfolio? Thank you.

Or is it to your values and you put 40 year constantly write down or your write down basically at the end of the contract period, what is known as a share of EPS in your leasing portfolio. Thank you.

Thank you very much for your questions Horst and of course, it needs to be pointed out I didn't notice that at first that youre wearing the right apparel for this call. That's very much appreciate it. Thank you for that.

Maximilian Schöberl: Thank you very much for your questions, Horst. Of course, it needs to be pointed out, I didn't notice that at first, that you're wearing the right apparel for this call. That's very much appreciated. Thank you for that. First question then obviously goes to Oliver. You ask about the trade-off between cost and volumes. First of all, the price, how we've handled that in the recent past, but also a midterm guidance, and how do we expect the premium market to grow and whether we intend to gain market share also in the Chinese market, but specifically in Europe from Chinese competitors. Oliver, over to you, please.

And first question then obviously goes to Oliver you ask about the trade off between cost and volumes first of all the price how we've handled that in the recent past, but not also our midterm guidance.

And how do we expect the premium market to grow and whether we intend to gain market share also in the Chinese market, specifically in Europe from Chinese competitors, although over to you. Please.

On the fixed cost side not on the market.

We made substantial brokerage last year and and and we are of the opinion. This is a continuous management task.

Oliver Zipse: On the fixed cost side, not on the market, we made substantial progress last year and we are of the opinion this is a continuous management task. You know, you see it. If you look at our efficiency, you can see that. We are against programs. We are against publicly announced programs, because that kind of reduces the responsibility of management to take that task very seriously. We don't talk about it. We try to really do it whenever it's necessary. Of course, these things come in waves. There are years where it's easier, but we every year become more efficient. All the way, also started last year already with the help of AI. On the market side, the question is wrongly asked, cost versus volume.

And you see that if you if you look at our frequency you could you can see that.

We are against.

Broke ramps, we are against publicly announced programs.

Because that kind of.

Reduces the responsibility of management to take that task very seriously.

So we don't talk about it we tried to really do it whenever it's necessary and of course these things come in waves there were years, where it's easier with yes, but we every year become more efficient.

All the way.

Also.

It started last year already with the help of AI on the market side.

The question is wrongly as cost versus volume.

No that.

People love to have that orientation.

Oliver Zipse: I know that people love to have that orientation to say which way should they go. It's the wrong question because good contribution margin is the sum of both. Flexibility is the most important thing. If an opportunity arises to create positive or super positive contribution margin, you quickly have to react. Flexibility to quickly react is ten times more important than to say we push volume or we only concentrate on the upper segment. It's the completely wrong question, because that is a result and not a target. When people ask you, what do we want? I said we want good contribution margins. Of course, these opportunities with quickly changing markets, the core question is how quickly can we get into all these little niches where opportunity arises?

To say, which way should they go.

But it's the wrong question because.

Good contribution marching is the sum of both.

And flexibility is the most important things if an opportunity arises.

To create positive or Super positive contribution of Archie you quickly have to react so flexibility to quickly read a 10 times more important than to say.

We push volume or we only concentrate on the upper segment, it's the completely wrong question.

Because that is a result and not a target.

So I will never I'm not people ask you what do we want to set we want good contribution margins and then of course these opportunities with quickly changing markets.

The core question is how quickly can we get into all of these little niches where opportunity arises and the good thing is the opportunities change currently very much net.

Oliver Zipse: The good thing is the opportunities change currently very much. That means it's not important that you have a strategy to be in that market, that you have the flexibility to react very quickly. That is what we call antifragile. That we have in all segments, all drivetrains, we can always very swiftly react, and we are after contribution margin and not after cost or after volume in the first place. Thank you.

That means it's not important that we have a strategy to be in that market.

That you have the flexibility to react.

Very quickly and that part is what we call into for agile.

That we have in all segments all drive rents, we can always very swiftly react and we are off to a contribution of watching and not after cost or of the volume in the first place. Thank you.

Thank you Oliver asked your second question was on Evs, specifically best leasing situation in the U S and whether it constitutes a tailwind for 2026 and also the handling of leasing contracts with regards to depreciation in the share of Evs and our leasing portfolio overall.

Maximilian Schöberl: Thank you, Oliver. Horst, your second question was on EVs, specifically BEV leasing situation in the US and whether it constitutes a tailwind for 2026, and also the handling of leasing contracts with regards to depreciation and the share of EVs in our leasing portfolio overall, and all of these topics at once, I would like to hand over to you, Walter.

All of these topics at once I would like to hand over to you Walter.

Yeah.

All in one.

No.

Well, let me start with fat in different markets, we have different penetration ratios in the U S has one of the highest leasing penetration ratios motto forgot alone.

[music].

Walter Mertl: All in one. Well, let me start with that. In different markets, we have different penetration ratios, and the US has one of the highest leasing penetration ratios. Not to forget the loan, there is also a loan business there. With respect to BEV leasing, because of IRA and these subsidies more or less coming from the government, leasing was the one and only for BEVs, because on loan, you wouldn't have received anything. That was a very high share. Now, with the stop of IRA.

He's also loan business now.

With respect to best leasing because of IRA and this subsidy is more or less coming from the government leasing boss, the one and only for bass.

On loan you wouldn't have received anything.

And that was a very high share now versus the start of I R. A subsidies from October 1st onwards that had an impact in the U S of course on best sales and on top of that into our leasing portfolio. So in Q4 leasing penetration came down in the U S.

Walter Mertl: Subsidies from 1 October onwards. That had an impact in the US, of course, on BEV sales and, on top of that, into our leasing portfolio. In Q4, leasing penetration came down in the US, and with that you have, of course, effects on the elimination part, which, I guess, you also raised coincidentally, the question. Hence, there was a different impact in our segment consolidation, because that is always the contra of the auto business. You do know elimination is mainly for financial services business. Auto sold the car and in the group nothing happens, so I have to take it out. Means minus. If there's less financial services business, there is less minus, and it could appear as positive amount, right? That happened in Q4 definitely. Now you also raised the question with respect to how we treat residual values.

Masatoshi Hasegawa: はい、皆様こんにちは。BMWグループジャパンの長谷川でございます。本日はBMW、そしてMINIブースにお越しくださいまして、誠にありがとうございます。本年、日本において1シリーズやX1、X2やX3といったプレミアムでコンパクトなモデルが非常に人気なセグメントの一つとなっております。また、MINIブランドは、新世代のMINIのファミリーが誇る多彩なボディタイプのプロダクトポートフォリオを展開しまして、非常に多くの方々に魅了してまいりました。このような魅力的なプロダクト展開およびお客様へのブランドの体験価値、体験機会というのをですね、提供させていただいたおかげでですね、その結果、実は先月までBMWブランドとしましては前年度比約6%増、MINIブランドにおきましては前年度比約32%増という非常に好調な結果となっております。この非常に好調な結果の中でですね、さらにそれを加速させるべく、形でですね、BMWとしてはBMWブランドの中で日本で高い人気を誇るプレミアムスモールコンパクトセグメントにおいて、本日ここに新しい仲間を紹介させていただきたいと思います。ここで日本でですね、初めて皆様にお披露目させていただくこと、非常に私としてもですね、嬉しく思っております。実はこのBMW M2 CSはですね、この軽量化された、非常にデザインにおきましてですね、従来のM2に比べてですね、これがだいたい約30キロぐらい減量させていただくことができました。さらにですね、このアップグレードということでされたのが、この3.0リッター、まあ3リッターですね、の直列六気筒エンジンを搭載いたしまして、実はこの車両は最高出力530馬力、最大トルク600ニュートンメーターを発揮する、いわゆる正真正銘のM2史上最強のモデルでございます。この車両、おかげさまでですね、今年の7月にはドイツのニュルブルクリンク北コースにおいて、コンパクトカーとしましてはですね、初めての7分30秒の壁を破りました。新たなベンチマークということで、我々BMWとしては打ち立てることができました。この新型BMW M2 CS、おそらく多くのお客様にとって、走行性能はもちろんのことですが、車両サイズといった点においてもですね、非常にベストなチョイスの一台となることは確信しております。この2025年ジャパンモビリティショーにおきましてですね、BMWはやはり日本という市場は非常に大切な市場でございます。本日はBMWグループ本社より取締役会メンバーに来日していただきました。カスタマーブランドセールス担当取締役のヨヘン・ゴラーと、それから開発担当を担っている取締役のヨアヒム・ポストの二名が本日来日しております。ここから先ですね、彼らからBMWのビジョン、それからMINIのビジョンや方向性について直接ご説明させていただきたいと思いますので、そのまま引き継ぎさせていただきます。Joachim, if I may invite you on stage please.

Yes, that's right.

Yeah.

It was up on a Saturday with Imas, such that you thought BMW such that many booths in your question, because I say Mustang Mach E, adding up all that much.

And with that you have of course effects on the elimination pods, which I guess you also race coincidentally the question and Steve has a different impact on our segment consolidation.

Uh huh.

Oh Nang pneumonia at the each cities, Yeah X long Ixia ex city three star premium day come back to normal. They are they are you don't need inky, not Sacramento Must've thought not 30 months.

That is always to control all of the other business you do know eliminations is mainly for financial services business.

So also sold a car and intergroup nothing happens so I have to take it out maintenance means minus if there's less financial services business as less minus and it could appear as positive amount right that happened in Q4 Dedicatedly.

But I mean, he belonged to a show.

She said I know, meaning all familiar you got a whole quarter past I know you had a body type of an oil productive part of the authentication, Mr. Izzo and yoga Nakatani media always stay a multinational.

Now you also raised the question with respect how it reads residual values.

Cornetto now you added a mediocre taking up product all think guy or you'll be okay somebody and all you have to Brandon or taking you to taking K, so you'll notice it.

Well, we always treat it linked at the start of the contract.

Walter Mertl: Well, we always treat it linked at the start of the contract, thinking about where is the residual value in 36 months, if it is a 36-month contract. Of course, also 48, 30, you name it. Always once the customer is signing it, we see every quarter, of course, we are doing our total portfolio reevaluation, and we do know which prices we have been capable to achieve for the off-lease cars. That's our prediction model. It's not that easy explained. It's a bit more complex, a lot of math. That means if you depreciate a car already higher or lower during the course of the contract, it's already the first topic, right? How big is the depreciation during the contract time? Second, on top of that, with the revaluation, we double-check whether we have to adjust across the portfolio.

Thinking about where is the residual value in 36 months. If it is a 36 month contracts of course was a 48 30, you name it but always wants to customize signing it we see every quarter of course, we are doing a total portfolio revaluation and we do know which prices we have been caped.

Take your SSD, either data or cognitive.

It is nice when the kick off sort of thing gets them or their media move W. Granddaughter. She myself, then nando he jaco Rockstar centers or <unk>.

When you move around on you or you can actually go up then nando he yuk Sanjay and he passed into law for you is only a quarter or not get cut or not 30 months.

But to achieve for the off lease costs. So that's our prediction model, it's not that easy to explain it's a bit more complex a lot of math.

But cannot kick Krishna is on equal a courtyard E. Conoco this ne suddenly he sort of Kazakhstan zero vehicle.

But that means if you depreciate a car already higher or lower during the course of the contract is already the first topic rights. How big is the depreciation during the contract time second on top of that Vista revaluation with double check whether we have to adjust across the portfolio.

That is the BMW stores through our BMW brand on that got it.

On the K means your go to premium was smaller compact a segmental knowing that when it's a corny atrazine docomo.

Okay, So Steve, but like I told my boss.

That's what we are also too and that is a permanent approach every quarter, we're doing that.

Michael what are the new Honda. This ne has he made it I mean, that's how many.

As I said these are a corridor is only other she pushed them with this new risk almost 30 months.

Walter Mertl: That's what we also do, and that is a permanent approach. Every quarter we are doing that. This is ending up in our balance sheet. If you have a look for our res, residual value provisions, that's the second part. The first part you can't see because that's our leased out products. We just depreciate. You don't know whether we depreciate it on a straight high level or on a low level. Sorry, I'm not sharing this information. But you see this on top provision, and that is how we deal with that, and that is how we organized with shrinking used car prices since we had these top prices in 2022 and 2023. That's why we speak about lower residual value profits than we had previous years. Because we see that it comes down gradually, step by step.

And this is ending up in our balance sheet. If you have a look for hours residual value of provisions. That's the second part the first project currency because that's our least our products. It just depreciate you don't know whether it be depreciated on a straight high level or on a low level, sorry, I'm not sharing this information.

One O B M. W. Edwards she yes.

Co located yoga Salazar he's on Yamal.

All you have to design, a or chemosh listener, Judy I know, England soon he could have it isn't there.

They got the Yahoo, Sandjak yogurt I gain your as I said it is a couture Vicky might stop.

But you'll see this on top of provision and that is how we deal with that and that is how we organized with shrinking used car prices. Since we have this top prizes in 'twenty, two and 'twenty three.

Suddenly the snake on or upgrade or alter your call. So there is a little over or something some things early thought my Sunday Telus not chocolate to look, though aging auto side, it actually match, the Utah Kanazawa Psycho studio.

That's why we speak about Noah residual value profits than we had previous years before because we see that it comes down gradually step by step, but it's still positive, but less positive than previous year and even this effect you see in three segments, you'll see it in alto, you'll see it in financial services.

And your body key cider at Oracle Nokia can you, Tom NATO hockey sort of.

Walter Mertl: It's still positive, but less positive than previous year. Even this effect you see in three segments. You see it in auto, you see it in financial services, and you see as a contra in consolidation. That's how we deal with the financial services lease business, especially. Hope that helps.

So she show May know English sheep or take your no more day to day with Imas.

And you'll see as a contra and consolidation that's how we deal with financial services lease business, especially.

Cornwall Shadow Akagi somebody is Nick what does she knows she got some new Deutsch La Nuvaring.

That helps.

Constellation going to be a positive contribution in 2006 significant positive contribution right whatever you classify as significant but we can assume if you have less worse.

Of course in Europe, the compact workout or smashed the others has he made that no not affluent San Giuliano caveat, you Brody Mushtaq Ali.

Horst Schneider: Reconciliation gonna be a positive contribution in 2026. Significant positive contribution, right?

Arizona benchmark.

Walter Mertl: Whatever you classify as significant. We can assume if we have less BEV leases in the US, you will have less negative consolidations.

The what I would I be able to start which satirical door.

Leases in the U S. You will have less negative consolidations.

Which started a product they can buy stuff.

I round, but of course don't forget we are not just dealing with leases in the U S. We haven't across the World U K is getting the IX. Three for example, now in Europe already leases are going down so that might be contrasts.

<unk> got a b M W image sushi, yes.

Horst Schneider: Okay.

Horst Schneider: Mm-hmm.

Horst Schneider: Okay.

Horst Schneider: That way around. Of course, don't forget, we are not just dealing with leases in the US, we have it across the world. UK is getting the iX3, for example, now in Europe already. Leases are going there. There might be contrasts, might be different. Yeah, you're right.

Well circle, Auckland or somebody took that so of course in all of them. What you don't know how to this Scott said yourselves throw it out there.

And your time with us.

These are the best on our choice merchandise or medical or change the 40 months.

It might be different but yeah youre right.

Thank you and all the best polygon.

Kunal, you say Nishu warning morbidity show, a Japan mobility, showing your with your Mushmouth Sismi, Ian with everybody already on when you want to use your journey times does not show that goes on as well.

Thank you very much Volta, maybe just a quick a statement on how we are proceeding so far we have obviously quite some interest in our figures in the guidance 2026 for the next call is coming up and we still have several in line I kindly ask you to limit yourselves to one question. Each we have already answered quite a significant.

Horst Schneider: Thank you. All the best for Oliver.

Maximilian Schöberl: Thank you very much, Walter. Maybe just a quick statement on how we are proceeding so far. We have obviously quite some interest in our figures and the guidance 2026. For the next callers coming up, and we still have several in line, I kindly ask you to limit yourselves to one question each. We have already answered quite a significant amount of topics, and we surely have covered a lot of issues already. Therefore, please limit yourself to one question. Next one up, and we should be seeing him on screen rather soon. There he is. Michael Tyndall from HSBC. Good morning, Mike. The stage is yours. Mike, please do me the favor and check whether it works on your side.

At La BMW group I won't show you. The three scenarios came in by E. E. G. Each day it felt like you must stop.

Amount of topics and we surely have covered a lot of issues already. So therefore, please limit yourself to one question next.

Customer Randall serious tourism, Dan totally similar economic Yohan, Golar Tor Silicon IHOP stamped all need out there.

Next one up and we should seeing them on screen, rather assumed areas, Mike Tyndall from HSBC. Good morning, Mike the stages U S.

So listen my economic Youre Hemo Postop, no EMEA golf wanted each.

He is the only method.

How can I say condition, they cut out I got a VM as ever in our vision silica Dominion of visual your whole course entry the successor and assist Mesa status et cetera, where Muslims Sonoma.

Mike. Please please do me a favor and check whether it works on your side.

I'm, hoping you can give me in and now we can hear you yes. Thank you fantastic.

He says that they either give us.

I'll stick to one question.

Michael Tyndall: I'm hoping you can hear me now.

Youre him Shamil.

Maximilian Schöberl: Now we can hear you, yes. Thank you.

So I may invite you on stage please.

Just one for Walter place if I look at the profits from BBA see we were at around $270 million and 25 down from about $1 4 billion in the prior year.

Michael Tyndall: Fantastic. I'll stick to one question then. Just one for Walter, please. If I look at the profits from BBAC, we were at around EUR 270 million in 2025, down from about EUR 1.4 billion in the prior year. When you talk about China achieving the same sort of number for this year, can you just unpick the difference there? How much of that was one-off, and therefore how much of a recovery is likely in that profitability of BBAC in 2026?

The stage is yours.

Masatoshi Hasegawa: The stage is yours, Joachim. Thank you.

Thank you.

Sure.

Thank you, Matt, ladies and gentlemen, what an amazing car and true ultimate driving machine the.

Joachim Post: Thank you, Matt. Ladies and gentlemen, what an amazing car. A true ultimate driving machine. The best example of how we fulfill our customers' desires. With every product we deliver BMW's essence, pure joy. Thank you to the M2 CS. It's our customers who choose the BMW that suits them best, whether it's a highly efficient combustion engine, a hybrid, or a pure electric vehicle. It's our technologically open approach that has put us at the top of the global premium segment. In 2028, we will take it to the next level. Let's have a look. Hydrogen is a key element in future energy systems. It has the potential to be a game changer. Alongside electric vehicles, hydrogen offers zero-emission driving experience. Now we are making it accessible to more customers. As a company driven by innovation, expertise, and responsibility, this truly speaks to our core values.

When you talk about China, we're achieving the same sort of number for this year can you just unpick the difference there how much of that was one off.

The Best example of how we fulfill our customers' desires.

And therefore, how much of a recovery is likely in that profitability of BBA C. In 2026.

With every product, we deliver bmws essence pure joy.

Thank you Julie Ann to see us.

Good question goes to you Volta regarding profit from BVA in 2025, and an outlook for 2026 with regards to potential one off effects in 2025 that may have an effect in 2026 over to you Brian Hi, Mike. So I hope you have a look for the right disclosure in our 432 pager.

Maximilian Schöberl: Good question goes to you, Walter. Regarding profit from BBA in 2025 and an outlook for 2026 with regards to potential one-off effects in 2025 that may have an effect in 2026. Over to you.

It's our customers who choose the BMW that huge them best.

It's a highly efficient combustion engine, a hybrid or a pure electric vehicle.

Walter Mertl: Right. Hi, Mike. I hope you have a look for the right disclosure in our 432-pager. You see two elements where you can see BBA numbers. One is the group consolidated one. There you end up with your EUR 227 million, but that is after PPA, after OCI, so that is a rather consolidated view. In the disclosure where we present all the shares we have on every legal entity, you see the legal entity view. There you see more than just EUR 227 million, rather EUR 1.2 billion. I hope you see the right disclosure. Now with respect to 2025 versus 2026, all measures in place. We did already a lot of fixed cost cuts in 2025 to stabilize the situation.

It's our technology open approach that has put us at the top of the global premium segment.

You'll see two elements, where you can see BVA numbers, one is the group consolidated one.

And obviously, a two and a 27 million of that is after PPA. After oce ice so that is a rather consolidate a few and.

And 2028, we will take it to the next level.

Let's have a look.

The disclosure of every present all the shares we have on every legal entities do you see the legal entity view and there you see more than just 227, rather one 2 billion euros. So I hope you'll see the right disclosure now with respect to 25 is 26 all measures in place.

[music].

Yes.

Thank you.

Yes.

There's already a lot of fixed cost cuts in 'twenty five to stabilize the situation.

Yeah.

And we have given also a lot of cost targets on the manufacturing cost side on fixed cost side, which are driving forward positively. So we assume that we are running more or less stable year on year 'twenty five 'twenty six with our assumption that they hit the cost targets and they've organized also to price targets.

Okay.

Walter Mertl: We have given also a lot of cost targets on the manufacturing cost side, on fixed cost side, which they are driving forward positively. We assume that we are running more or less stable year on year 25, 26, with our assumption that they hit the cost targets and they've organized also the price targets they have. I'm so far positive, at least the two first months I saw.

Sure.

Yes.

Okay.

Sure.

Half and I'm so.

Sure.

So far are positive at least two first months ISIL.

Okay.

Good. Thank you very much Walter and we have the next one in line and we are we will probably not see him, but only hear him if I understand that correctly. So why don't we see your Steven very good so Stephen Reitman from Bernstein, Steven Good morning, and also please go ahead with your question.

Hydrogen is a key element in future energy systems. It has the potential to be a game changer.

Maximilian Schöberl: Good. Thank you very much, Walter. We have the next one in line, or we will probably not see him, but only hear him, if I understand that correctly. Oh, there we see you, Stephen. Very good. Stephen Reitman from Bernstein. Stephen, good morning, and also please go ahead with your question.

Alongside electric vehicles hydrogen offers sireau emission driving experience.

Thank you Crystal again congratulations.

Now we are making it accessible to more customers as a company driven by innovation expertise and responsibility. This truly speaks to our core values.

I mean, it's been obviously, an incredible program that you have to deal with in 2019, and we shipped on gracefully and I think so.

Stephen Reitman: Thank you. First of all, again, congratulations, Oliver. I mean, it's been obviously an incredible environment you've had to deal with since 2019, and which you've done gracefully, and I think to great effect for BMW. My question actually is for Walter, and it's about the cash flow. At the Q3 stage, part of the reason for the reduction in the cash flow guidance last year was this timing, the timing mismatch that the refund you were expecting were not going to occur on tariffs in 2025, so were gonna come in 2026. My question really is about the guidance on the cash flow for 2026. How much of that includes the expected refunds you're getting from the US Treasury for these tariffs, for the refunds on the tariffs?

Great great.

Great. Thanks for BMW.

Joachim Post: The BMW iX5 Hydrogen will seamlessly join our lineup. The X5 will be the first BMW model with five powertrain options. The core of the BMW iX5 Hydrogen features the all-new powerful third generation fuel cell system co-developed with Toyota. A warm thank you to Toyota's CTO, my dear friend Hiroki Nakajima, for our strong partnership over decades. Just recently we revealed the exciting future of our brand, the Neue Klasse. Each new BMW model and update will be, as we proudly call it, a technological Gesamtkunstwerk. The proof is in the innovation. We unleash a new dimension of driving pleasure. The Heart of Joy integrates drivetrain and dynamics, thrilling fans of the ultimate driving machine. Whether you are pushing boundaries or navigating daily routes, you will experience driving pleasure like never before. With cutting-edge assistance systems, driver and vehicle becomes one. This is BMW Symbiotic Drive.

BMW I X five hydrogen will seamlessly join our lineup.

My question actually is for both.

It's about the cash flow.

At the Q3 stage part of the reason for the reduction in the cash flow guidance last year was this timing mismatch.

The X five will be the first BMW model with five powertrain options.

The core of the BMW I X five hydrogen features the all new powerful third generation fuel cell system co developed with Toyota.

You were expecting.

Alternatives in 2025.

26. So my question really is about the guidance on the cash flow for 2026, how much of that includes the expected refunds youre getting from the US Treasury for research for the bundled service and can you just generally talk about where you see sort of the refunds from tariffs.

A warm thank you Toyota CTO, my Dear friend Iraqi Nakashima fall a strong partnership over decades.

Just recently, we revealed the exciting future of our brand.

The lawyer classic.

Stephen Reitman: Can you just generally talk about where you see sort of the refunds from tariffs going forward really? Thank you very much.

Going forward. Thank you very much.

Stephen Reitman: Can you just generally talk about where you see sort of the refunds from tariffs going forward really? Thank you very much.

Each new BMW model, an update will be as we proudly call. It a technological gesamtkunstwerk the proof is in the innovation.

Thank you very much Steven for your question concerning cash flow and focusing on cash flow only.

Maximilian Schöberl: Thank you very much, Stephen, for your question concerning cash flow and focusing on cash flow only. Question being, coming out of the Q3 statement that we made, we had a clear statement there that a reduction of our cash flow expectation for 2025. It has an impact on the 2026 guidance. With that, I hand it over to you, Walter. Please go ahead.

<unk> being coming out of the Q3 statement that we made.

We unleash a new dimension of driving pleasure.

We had a clear statement there that a reduction of our cash flow expectation for 2025.

The heart of Joy integrates drive train and dynamics trailing fans of the ultimate driving machine.

It has an impact on the 2026, our guidance and with that I'll hand, it over to you Walter Please go ahead.

Whether you are pushing boundaries or navigating daily routes yuval experience driving pleasure like never before.

Steven while we had to.

We assess our receivables expected in November as for example, Europe didn't come in place and I cant put receivables.

Walter Mertl: Hi, Stephen. Well, we had to reassess our receivables expected in November as, for example, Europe didn't come in place, and I can't put receivables against the EU at the current stage based on which contract. I had to reduce that one, first of all, and hence I would rather speak about receivables of a mid three-digit million EUR number rather than this high level. Secondly, also with respect to the SAMR authorities, we have to say that we see in terms of our volumes, in terms of process complexities and also sometimes effects as results of shutdowns, numbers came up and down. Ultimately, we are running on. I can say that with respect to the 3.75% discount, we handed into the authorities our claim for April 2025 to March 2026 already.

And with cutting edge assistance systems driver and vehicle becomes warm.

This is BMW symbiotic greiff.

Yeah.

Based on which contracts so I had to reduce that one first of all and hence I was rather speak about receivables of a mid three digit million number.

With the all new BMW panoramic I drive we changed the game again.

Joachim Post: With the all-new BMW Panoramic iDrive, we change the game again. No more looking down at the screen. This innovation offers immersion and safety. Hands on the wheel, and eyes on the road, on the next level, and all integrated by our all-new super brains architecture. Four powerful computers process data 20 times faster than before. Our system allows us to separate hardware from software. With AI, we redefine possibilities, making each new BMW a pioneering software-defined masterpiece. This is one of the keys to staying ahead in the innovation race. Ladies and gentlemen, by the end of 2027, we will have rolled out 40 cars with Neue Klasse DNA. That's incredible speed. We are very busy, and we will stay that way. Now I'm very proud to reveal the first of many, the dawn of the new BMW era, the all-new BMW iX3.

No more looking down at the screen.

This innovation offers immersion and safety.

Rather than this high level and secondly, also with respect to the U S authorities, we have to say that we see in terms of our volumes in terms of process complexities and also sometimes also effects.

Hands on the wheel and eyes on the road on the next level and all integrated by our all new Super brain architecture.

Four powerful computers process data 20 times faster than before.

Results of shutdowns.

Numbers came up and down but ultimately we are running on I can say that with respect to the 375% discount.

Our system allows us to separate hardware from software.

With AI, we redefined possibilities, making each new BMW, a pioneering software defined masterpiece.

We handed into the authorities our claim for.

On April 25, two March 26 already in that is not finally confirmed yet by the authorities, but we handle the claims in already.

This is one of the keys to staying ahead in the innovation race.

Ladies and gentlemen by the end of 2027, we will have rolled out 40 cost with Noah Clauser DNA.

Walter Mertl: That is not finally confirmed yet by the authorities, but we handed the claims in already. With respect to this procedure, we assume that we are not getting cash back, but we rather can run more or less our tariffs to be paid as a discount of that one. That's more or less the assumption, so that we just pay net rather than getting a gross number to us and the other one's paid by us. That is our current assumption and understanding with the US authorities with respect to going forward. Hope that helps.

With respect to this procedure, we assume that we're not getting cash back, but we have Robert can.

That's incredible speed, we are very busy and will stay that way.

Run more or less our tariffs to be page as a discount off that one that's modest assumptions are that we just paid net rather than getting a gross number to us and the other ones paid by us that is our current assumption and understanding with the U S authorities with respect to going forward.

And now I'm very proud to reveal the first of many the dawn of the new BMW era, the all new BMW I X three.

Hope that helps.

Thank you very much Volta and also thank you to you Steven to sticking to one question only.

Maximilian Schöberl: Thank you very much, Walter, and also thank you to you, Stephen, to sticking to one question only. We have run over the official time already, but we will continue with just one question each. I believe we still have three callers in line. First one already on the screen right now, Christian. Christian Frenes from Goldman Sachs. Christian, good morning, and also the stage is yours for your question. Thank you.

We have run over the official time already but we will continue with just one question. Each I believe we still have three callers in line. Our first one already on the screen right now Christian Christian frame us from Goldman Sachs. A Christian good morning, and also the stage is yours for your question. Thank you.

Okay.

Yes.

Okay.

Thank you very much and Arthur from my part Oliver. Thank you and congratulations on your stewardship of the BMW of BMW through what has been really volatile environment from 2019, 2026, 26, I think the execution has been really impressive.

Christian Frenes: Thank you very much, and also for my part, Oliver, thank you and congratulations on your stewardship of BMW through what has been a really volatile environment from 2019 to 2026. I think the execution has been really impressive, you know, and underlines your flexibility strategy. My question is really on TNR, the new retail strategy. My question for you, Oliver, would be, you know, what are your thoughts on the strategic importance of shifting to TNR? Why is it so important? Perhaps, as part of the same question, the financial impact of shifting the BMW brand in 2026 to TNR, should there be any financial impact that we should expect? Maybe the last one's a little bit for Walter, but thank you.

Okay.

Alliance your flexibility your strategy. My question is really on PNR to new retail strategy.

Sure.

Yes.

[music].

And my question for you Oliver would be.

What are your thoughts on the strategic importance of shifting for PNR.

Why is it so important.

Welcome ladies and gentlemen.

Oliver Heilmer: Welcome ladies and gentlemen. Yes, the big moment has finally come. As Joachim mentioned, with the Neue Klasse we are taking very big steps in technology. These big steps in technology can only become meaningful hand in hand with big steps in design. In the exterior we have typical solid BMW SUV proportions with a lot of presence on all four wheels. The surfaces are very clean, emotional, with just a few precise lines. The front end shows a new interpretation of the BMW typical face in which we replace chrome with light. Vertically oriented kidneys match the more overall upright appearance of our SAV. This new light signature is part of the daytime running light, and it will make the new BMW iX3 very recognizable by day and by night.

And perhaps as part of the same questions as to the financial impact of shifting that BMW brand in 2020 six to T N or.

Yes.

The big moment has finally come.

And as you actually mentioned with the Noy classes, we are taking very big steps and technology.

Should there be any financial impact that we should expect maybe the last one is a little bit for Walter but thank you.

And these big steps in technology can only become meaningful hand in hand, with big steps and design.

Thank you very much Christian for your question concerning TNI I will just briefly say the abbreviation stems for the new retail which is in Europe.

Maximilian Schöberl: Thank you very much, Christian, for your question concerning TNR. I will just briefly say the abbreviation stands for the new retail, which is in Europe, our sales model change, to direct sales. You were asking with regards to its strategic importance for the BMW Group and also financial impact. I would indeed give the question on strategic importance and relevance to you, Oliver, and then an expectation with regards to when BMW will be shifting to TNR and the potential financial impact. Walter, we'll be handing that to you. Oliver, please start.

And the exterior we have typical solid BMW SUV proportions.

Our sales model change to direct sales and you were asking with regards to its strategic importance for the BMW group and also financial impact I wouldn't indeed give the question on strategic importance and relevance to you Oliver and then an expectation with regards to when BMW will be shifting to tee in on the potential final.

With a lot of presence on all four wheels.

The surfaces very clean emotional it's just a few precise lines.

Yeah.

The front end chosen new interpretation of the BMW typical phase in which replace chrome with light.

<unk> impact, but I will be handling that to you. So Oliver please start.

T N or the new retail is based on three assumptions first of all we are in the business of individuals mobility that means each car. We sell is owned by an individual with very specific needs.

Vertically oriented kidneys matched the more overall upright appearance of our SME.

Oliver Zipse: TNR, the new retail, is based on three assumptions. First of all, we are in the business of individual mobility. That means each car we sell is owned by an individual with very specific needs.

This new light signature is part of the daytime running light and it will make the new BMW I three very recognizable by day and by night.

That's the first assumption and I think you would not you would agree that this is a valid assumption the second assumption is.

Oliver Zipse: That's the first assumption, and I think you would agree that this is a valid assumption. The second assumption is the future of understanding customers is largely based on AI competence. To know what he has owned in the past, what his lifestyle is, what his expectations are, to make him very individual offers for other products is a central function. The third one is we are already half down the road because we installed TNR in our European operation of MINI, and our learning experiences are quite positive. We're not in a rush to implement that, but we are almost 80% through with the preparation of the IT systems, so it doesn't come at one single point. I think there is no way back.

The future of understanding of customers is largely based on AI competence.

Overall, the car has a very solid stance and strong shoulders and in the Ria again, a new light signature that emphasizes the width of the car.

Oliver Heilmer: Overall, the car has a very solid stance and strong shoulders, and in the rear, again, a new light signature that emphasizes the width of the car. In the interior, you will find that the driving experience is and will remain our focus, putting the driver at ease and in control. The key element to this is our all-new BMW Panoramic Vision. It projects in the bottom of the windshield and builds upon our years of experience with head-up displays. This new display is visible for all passengers on board and will allow you to quickly check the information you want and need. Together with our freestanding center display and our iconic steering wheel, these elements are the cornerstones of our new Panoramic iDrive system, a whole new driving experience, and you will find it in all of our future BMW models from now on.

To know what a he has owned in the past what is lifestyle is what his expectations are.

In interior.

To make them very individual offers for for other products.

You will find that the driving experience is and will remain our focus putting the driver at east and in control.

A central function.

And the third one is we already have down the road because we installed T in our in our European operation of many in our learning experiences are quite positive.

The key element to this is our all new BMW panoramic vision.

It projects in the bottom of the windscreen and built upon our years of experience with head up displays.

We're not in a rush to implement that but we are almost 38.

80% through with the preparation of the I T systems. So it doesn't come come at one single point.

This new display is visible for all passengers on board and will allow you to quickly check the information you want and needs.

There was no way back we believe we will introduce that step by step because individual mobility will be closely linked to understanding the cause the.

Together with our free cut central display and our iconic steering wheel.

Oliver Zipse: We will introduce that step-by-step because individual mobility will be closely linked to understanding the customer individually. That is something you can only do as a retailer and not as a wholesaler. Does that mean that we don't need partners? No. It's exactly the other way around. We need dealers, partners, entrepreneurs, just as we before, but we need central intelligence of understanding the customer. Strategically, we're unwavering. Are we in a rush? No, we do it step-by-step, just like we have done it with MINI. We introduced it in the first countries in 2022. We're now in 2026. We will take our time, but there's no way back. Thank you, Oliver, and Walter, over to you with regards to financial implication.

The customer individually and that is something that you can you can only do as a retailer and not as a whole center does that mean that we don't need partners no. It's exactly the other way around we need dealers partners entrepreneurialism, just SB before but we need central intelligence of <unk>.

These elements are the cornerstones of our new panoramic address system.

Holding you driving experience.

And he will find it in all of our future BMW models from now on.

This new user experience already starts when you approach the car and continues as you get in.

Oliver Heilmer: This new user experience already starts when you approach the car and continues as you get in. With My Modes, you can select a perfectly curated driving experience from screen content to ambient colors, to sound, and even driving characteristics. This will allow you a much higher level of personalization, making your BMW truly yours. At the same time, we created much cleaner and warmer interiors that feel like a personal environment on four wheels. Starting with the BMW iX3, we are introducing a new form language. It will lead us to a new look and feel for the entire BMW brand. Our designs will be very clean and at the same time very strong in character, and above all, more BMW than ever. Thank you very much.

Understanding the customer so strategically we are unwavering.

Are we in a rush no we do it step by step just like we've done it with many we introduce it in the first countries in 2022, we're now in 2026, so we will take our time, but theres no way back.

With my Moats, you can select a perfectly curated driving experience from screen content to ambient colors to sound.

Thank you Oliver and Walter over to you with regards to financial implication.

And even driving characteristics.

This will allow you a much higher level of personalization, making your BMW truly.

With respect to the financial and vacation as a positive aspect because we creates price stability online and offline that has no haggling around the pricing from dealer to dealer to dealer C and the customers' trust playing this game, so nice stability for everyone and not to forget.

Walter Mertl: Well, with respect to the financial implication, it's a positive aspect because we create price stability online and offline. There is no haggling around the pricing from dealer A to dealer B to dealer C, and the customer is just playing this game. There's stability for everyone. Not to forget, people are starting to change their habits, not running on Google search engines anymore and on our homepages. They run ChatGPTs and Claude, whatever. That will search for pricing. Currently under MSRP, under wholesale system, we can advise MSRPs, but ultimately, we deal with independent dealers, and the independent dealer is setting their price. Now, we have a mixture of offers by different OEMs. Some are already on direct sales, so they have this transaction price on the list.

Truly yours.

At the same time, we created much cleaner and warmer interiors that feel like a personal environment on four wheels.

People are starting to change their habits, not running on Google search machines anymore.

So starting with the BMW I three we are introducing a new form of language.

On our Homepages Dayron church of Bts and cloud whatever.

It will lead us to a new look and feel for the entire BMW brands.

And that will search for pricing currently under MSRP on the wholesale system.

Our design will be very clean and at the same time very strong in character.

We can advise MSR piece, but ultimately we deal with independent dealers and the independent dealer is setting their price now we have a mixture of office by different Oems. Some are already on direct science. So that after this transaction price on the list.

And the Buffalo.

More BMW than ever.

Thank you very much.

Yes.

And others like us on BMW side, we're running in wholesale meaning on our homepage to MSRP and not the transaction price.

Thank you Oliver ladies and gentlemen, Konichiwa 40, new BMW models in just two years.

Jochen Goller: Thank you, Oliver. Ladies and gentlemen, konnichiwa. 40 new BMW models in just 2 years, a truly unrivaled wave of product innovation. The very high customer interest in our new classes shows the future starts here. Now let's turn to a brand where the future is already reality. A brand with a huge fan base, especially here in Japan. Of course, I'm talking about MINI. The new MINI family, introduced just last year, is the brand's most complete and desirable product lineup ever. It is featuring an array of distinct models, Cooper, Aceman, Countryman, and Convertible. All of them more MINI than ever before, with a clever use of space, wheels at the corners, unique go-kart feeling, and this combined with genuine Britishness and maximum individuality. These core elements have made MINI the world's most exciting premium small car brand.

Walter Mertl: Others, like us on BMW side, we are running in wholesale, meaning on our homepage is the MSRP and not the transaction price. Now, if ChatGPT or Claude or whatever machine is searching for the best price and best offer, surely the one who is organizing and presenting the real transaction price is better off than the other. That is why Oliver Zipse also mentioned we will run into this direction automatically because that will be the advantage. To get the same price in the country rather than X different ones. From our point of view, we also have then a better chance for up-sale procedures online and offline, because we can present the products rather than having the discussion at the dealer side about the pure price. It's about the products and all features in it.

Now, if <unk> or cloud or whatever machine is searching for the best price and best offer surely the one who is organizing and presenting to Reed transaction price is better off than the other.

Truly unrivaled wave of product innovation.

And the very high customer interest in our in our classes shows the future starts here now.

Now, let's turn to our brand where the future is already reality.

So that is why all of our Sipps are also mentioned we will run into this direction automatically because that will be the advantage.

Brand with a huge fan base, especially here in Japan.

And to get the same price in the country, rather than X different ones.

And of course I'm talking about many.

The new mini family introduced just last year is the brand's most complete and desirable product lineup ever.

From our point of view, we also have done a better chance for upside procedures online and offline.

Because we can present the products rather than having the discussion at the dealer sites about the pure price, it's about the products and all features in it and finally, the last positive topic on financial impact to stock management, because we can do it centrally like Oliver mentioned, rather than having a dealer individuals stock management and usually.

It is featuring an array of distinct models.

Cooper as men country men and convertible.

All of them more many than ever before with a clever use of space wheels at the corners unique goldcup ceiling and this combined with genuine britishness and maximum individuality.

Walter Mertl: Finally, the last positive topic on financial impact is stock management, because we can do it centrally, like Oliver mentioned, rather than having a dealer individual stock management. Usually, in total, you will have always too much stock in the pipeline, and that creates price pressure again. Once we do it on a central stock management, we do know in which areas and regions we run which cars and sell which cars. We can optimize that one as well, and that saves, again, further costs. That is our position. We are looking forward to implement that, also for BMW in Europe.

In total you will have always too much stock in the pipeline and that creates price pressure again. So once we do it on a central stock management, we do know in which areas and regions, we run which cost himself, which cost we can optimize that want us violent that saves again further costs that is our position. So we're looking forward.

And these core elements have made many of the world's most exciting premium small car brand.

Jochen Goller: In MINI's unique success story, Japan is a standout chapter. Let me take you behind the story. In the 1980s, global MINI production was set to be stopped. However, the former Japanese importer successfully lobbied to continue MINI production solely for Japan, and the impact was striking. The Japanese MINI fan base grew exponentially, and the spillover effect was so strong that MINI soon resumed global production. Eventually, in the late 1990s, the BMW Group acquired the brand, and the rest is history. One could say MINI without Japan would be almost unthinkable. Having worked myself for many, many years in several functions, I would like to thank you and MINI, and we will never forget this. Ladies and gentlemen, throughout its 66-year-long history, MINI has inspired countless celebrities and designers alike.

And in many is unique success story, Japan is stand our chapter.

To implement that.

So let me take you behind the story.

Also for BMW and.

In the 19 eighties global many production was set to be stopped.

In Europe. Thank you Walter and thank you Christian for this very important question, we're now coming to the second in a second to last in line and we have them on screen already Stuart Pearson Ox cap analytics. Good morning Stuart. Please your question.

However, the format of opinions and Potter successfully lobbied to continue menu production solely for Japan.

Oliver Zipse: Thank you, Walter Mertl, and thank you, Christian Frenes, for this very important question. We're now coming to the second and second to last in line, and we have him on screen already. Stuart Pearson, Redburn Atlantic. Good morning, Stuart. Please, your question.

And the impact was striking.

The Japanese many fan base grew exponentially.

Yes. Good morning, everyone. Thank you for taking the question just quickly.

The spillover effect was so strong that many assume resumed global production and.

So just to clarify did I hear you correctly I apologize if I missed it but based on what Youre seeing year to date in China, you think profitability that can be flat. This year I wasn't sure. If that's what you were trying to say if you just meant mobile volume.

Stuart Pearson: Yeah, good morning, everyone. Thank you for taking the question. Just quickly, Walter, just to clarify, did I hear correctly? Apologies if I missed it. That based on what you're seeing year to date in China, you think profitability there could be flat this year. I wasn't sure if that's what you were trying to say or if you just meant more on volume terms. But my main question was just on mix, because you're coming out of a period, I guess, that's been relatively strong in that respect. Obviously, you have the X5 changeover this year, which in previous incarnations, you know, would've created some volatility. I think it was down 20% volume-wise in 2018. It sounds like, I think you said you're running three shifts there already.

And eventually in the late Ninety's, the BMW group acquired the brand.

In terms and then the main question was just on mix because coming out of a period I guess, it's being relatively strong in that respect.

And the rest is history.

So one could say many without Japan would be almost unthinkable.

We've changed this year.

Previous incarnations.

And having worked myself for many many years in several functions I would like to thank you.

Created some volatility I think it was 20% volume wise in 2018, but it sounds like I think you said you're running three shifts there already it sounds like maybe this time.

And many and we will never forget this.

So ladies and gentlemen throughout its 66 year long history. Many has inspired countless celebrities and designers alike.

Minimal disruption from that so I wonder what you.

Expect for mix for the full year, but also in Q1 and is it right to assume that with some mixed disruption I think you mentioned FX would be tougher in Q1 and tariffs as well that Q1 would be one of the weaker quarters of the year. Thank you.

Stuart Pearson: It sounds like maybe this time there'll be minimal disruption from there. I wonder what you expect from mix for the full year, but also in Q1. Is it right to assume that with some mix disruption, I think you mentioned FX would be tougher in Q1 and tariffs as well, that Q1 would be one of the weaker quarters of the year? Thank you.

Jochen Goller: One co-created edition stands out as arguably the most British and most iconic, the first MINI Paul Smith Edition. It is an all-time classic and made waves across the globe. However, also here, one country stood above all with more than half of the cars being delivered. Of course, Japan, where Sir Paul almost enjoys a rockstar status. This proves when two true British design icons are joining forces, the result is the perfect match. Continuing the successful cooperation, we are truly delighted to celebrate today the world premiere of the all-new MINI Cooper Paul Smith Edition. Who better to introduce it than Sir Paul Smith himself.

One co created edition stands out.

Arguably the most British and most iconic the first mini Paul Smith addition.

Thank you Stuart and if you don't mind I would briefly comment on the first question since we do not guide individually per region.

Maximilian Schöberl: Thank you, Stuart. If you don't mind, I would briefly comment on the first question, since we do not guide individually per region. I will leave that up to Walter, whether he wants to start guiding on regions now, but that would be my answer at least. The second one then with regard to mix, especially with X5 changeover, Walter, hand that over to you.

It is an all time classic and made waves across the globe.

I'll leave that up to Volta, whether he wants to start guiding on regions now, but that would be my answer at least.

However, also here one country stood above all with more than half of the cars being delivered of course, Japan, where so Paul almost enjoys a rock star status.

And the second one then with regarding to mix, especially with X five change over Volta hand that over to you now I still out so.

Youre absolutely right, we are not doing country specific.

Walter Mertl: Yeah. Hi, Stuart. Absolutely right. We are not doing country-specific guidance, but the discussion you're referring to was with respect to the legal entity BBA, where I helped Mike to find the right number in our disclosure. That was the number. Further on, I elaborated that I also have the fixed cost targets, material cost targets, and price targets. That was the long story. Now with respect to the FX expectations on full year Q1. The expectation on full year is that we are ending up with 4 to 6% in this corridor with Automobile segment, of course. Yeah, we also mentioned already in Q3 that we are facing an FX headwind in the first half year and especially in Q1. Why is that? Exchange rates deteriorated, especially end of Q2 2025.

Guidance, but the discussion you were referring to was with respect to the legal entity BVA by a helps Mike to find the right number in our disclosure.

And this proves when to true British design icons.

Joining forces. The result is the perfect match.

That was the number and further on I elaborated that that also have the fixed cost targets and material cost targets and price targets and sorry long now with respect to them.

And continuing the successful cooperation.

We are truly delighted to celebrate today the world premiere of the all new Mini Cooper Paul Smith addition.

FX expectations on a full year Q1 expectation on full year is that we are ending up with 46% in this corridor with segment out of mobile of course and Yahoo. Also mentioned already in Q3 that we are facing an FX headwind in the first half year, and especially in Q1 and why stops exchange.

And who better to introduce it then Paul Smith himself.

Okay.

Yes.

Paul Smith: Before I finish this, let me take you to where it all started. Because every detail is a door waiting to be opened. MINI and I go way back. What a journey to get here. Oh, stripes. Stripes have followed me since the beginning. Sometimes they're obvious, and sometimes they're just quiet little twists. Color isn't just visual, it's emotional. It tells stories. Like Nottingham Green, it reminds me of home. Oh, wrong door. Unless you need to go to the toilet. People say I'm a collector, but I prefer curious. That's a fine-looking rabbit. Just like London in the morning, every day is a new beginning. Why don't you try something new and just see what happens? This isn't just one car, it's across the entire Cooper range, and I can't wait to share it with you.

Before I finish this let me take you to H O started.

Because every detailed is a door waiting to be opened.

Mainly in I go waiver.

Rates deteriorated, especially if end of Q2 of 25, that's why we have this big exchange rate effect in the second half year of 'twenty five if everything stays stable that will move over into the first half year of 'twenty six isn't exchange rates burden and I said.

Okay.

What a journey to get here.

Oh stripes strikes the followed made it to the beginning.

Walter Mertl: That's why we had this big exchange rate effect in the second half year of 2025. If everything stays stable, that will move over into the first half year of 2026 with an exchange rate burden. I said rather in Q1, why is that? Because in Q2, the deterioration started already. Now coming to your strong X5 changeover, we have a good mix. Don't forget that the Neue Klasse starts to kick in in the second half year, and X5 is still on a very good sale mode and is not stopping in whenever during this year. That's quite positive.

Sometimes they are obvious and sometimes they just quiet little twist.

Okay.

Color isn't just visual it's emotional tell stories.

It's rather in Q1 why is that because in Q2, the deterioration started already.

Like nothing in Green It reminds me of home.

Now coming to your strong X five changeover.

Oh wrongdoer, unless you need to go to the toilet paper.

We have a good mix don't forget that the Nordic cluster starts to kick in in the second half year and <unk> five is still on a very good sale mode and is not stopping in whenever during this year. So that's quite positive.

Say on the collector the I prefer curious.

Yes.

That's a fine looking rabbit.

Just like London in the morning every day is a new beginning so why don't you try something new and just see what happens.

Thank you Walter and we are just about to and that we still have Henning cosman from Barclays. Joining us. So you should be coming up on stage and on screen and just a second.

This isn't just one car is across the entire group her age and I can't wait to share it with you.

Maximilian Schöberl: Thank you, Walter. We're just about to end, but we still have Henning Cosman from Barclays joining us. He should be coming up on stage in, on screen in just a second.

Yes, Hi, Stefan can you hear me Oh, it is via audio only sorry about that hunting, but then please go ahead and ask you a question we can hear you indeed.

Henning Cosman: Yeah. Hi, Steffen. Can you hear me?

Maximilian Schöberl: Oh, it is via audio only. Sorry about that, Henning. Please go ahead and ask your question. We can hear you indeed.

Okay perfect. Thank you so much I'll try and be brief.

Yes.

My congratulations too.

Henning Cosman: Okay. Perfect. Thank you so much. I'll try and be brief. I'll save my congratulations to Oliver for the Q1 call. My question is on total shareholder return. I'm surprised it hasn't come up yet. It's probably to Walter. As a combination of dividend and share buyback, of course, would you say it's fair to assume the moderate decline to your group EBT guidance as a proxy to, you know, to net profit and ultimately dividend payment, as well, and draw conclusions to the dividend component of TSR. Then on the share buyback, I suppose if you were to conclude the remainder of the existing envelope, that could be up to EUR 1.3 billion or so. But between the two would imply below EUR 4 billion.

Oliver for the Q1 call.

My question is on total shareholder return I'm I'm surprised it hasn't come up yet.

Yes.

So it's probably too Walter.

Jochen Goller: Sir Paul.

So park Hello, Hello, Great to have you here. Thank you very nice to be here, Japan look everybody lovely.

Paul Smith: Hello. Hello.

So it is a combination of dividend and share buyback of course.

Jochen Goller: Great to have you here.

Paul Smith: Thank you. Very nice to be here.

Jochen Goller: Japan-

Paul Smith: Oh, look at everybody. Lovely. Hello.

Would you say, it's fair to assume the moderates each line.

Hello.

Listen Japan U. Many all things are coming together, so what does it mean to you yet.

Jochen Goller: Listen, Japan, you, MINI, all things are coming together. What does it mean to you here?

Group EBITDA guidance as a proxy to.

So net profit and ultimately dividend payment.

Paul Smith: I mean, I've been coming to Japan since the 1980s. I love Japan. I love the Japanese people. To launch the MINI here in Japan is a dream, a dream come true. Thank you. Thank you very much. Japan has been so important to MINI.

I mean, I've been coming to Japan since the 19 eighties I loved your panel level, the Japanese people and so to launch the many here in Japan is a dream a dream come true and thank you. Thank you very much and Japan has been so important to many big macro tool you're absolutely yeah, Yeah, Iva 140 shops here.

As well and draw conclusions to the dividend component of GSR and then on the share buyback.

If you were to compute the remainder of the existing envelope that could be up to $1 $3 billion or so but between the two would imply.

Jochen Goller: It's a big market for you, right?

Paul Smith: Absolutely. Yeah. I have 140 shops here, I think.

The low $4 billion and separately.

Unlike last year, you also haven't set.

I think okay, a laggard listen in the clip there was your motto everyday is a new beginning and its right here in the edition together with your stripes that what is behind the module and the stripes exactly whats.

Jochen Goller: Okay.

Paul Smith: About.

Jochen Goller: Very good. Listen, in the clip, there was your motto, "Every day is a new beginning," and it's right here in the edition together with your stripes.

Listen the at least.

Henning Cosman: Separately, I think unlike last year, you also haven't said explicitly at least that the shareholder return could exceed the automotive free cash flow. I was just wondering if you could help us a little bit with the potential magnitude of TSR. Could it exceed the automotive free cash flow this year? Again, are you prepared to comment on that at this stage? Any more color would be great, I think. Thank you so much.

At the shareholder return could exceed the automotive free cash flow. So I was just wondering if you could help us a little bit with the potential magnitude of T. S.

Paul Smith: That's true.

Jochen Goller: What is behind the motto and the stripes exactly?

Who did exceed.

Paul Smith: Well, what I tried to do with the car, the car is beautiful anyway.

The automotive free cash flow. This year again as you commented on that at this stage.

What I tried to do with the car it caused beautiful anyway. So we just are famous for color.

Jochen Goller: Mm-hmm.

Paul Smith: I'm famous for color. When you open the door here on the floor, it says, "Hello." It's a welcome. Then inside it says, "Every day is a new beginning." That's because every day is a new beginning. You know, let's be optimistic, let's enjoy the day, and this is full of optimism, happiness.

Any more color would be great. Thanks. Thank you so much.

When you open the door here on the floor. It says Hello, So it's a welcome and then inside it says everyday Asia, new beginning and that's because.

Thank you for your question hanging concerning total shareholder return.

Maximilian Schöberl: Thank you for your question, Henning, concerning total shareholder return. Some assumptions on your side, whether our current guidance gives an indication with regards to net profit and potentially dividend payments for the year 2026. Also as we already stated for the year 2025, whether we would be willing to exceed the available automotive cash flow in order to follow up with shareholder return payments. I would hand that question, of course, over to you, Walter, with regards to 2026. Thank you.

Some assumptions on your side, whether our current guidance gives an indication with regards to net profit and potentially a dividend payments for the year 2026.

Every day is a new beginning so you know what let's be optimistic, let's say enjoy the day and they should full of optimism happiness.

And also as we already stated for the year 2025, whether we would be willing.

Jochen Goller: Biggest market UK, second biggest market Japan for you. Is that true?

The biggest market U K second biggest market, Japan for user true that's right yeah, absolutely yeah. Okay.

To exceed the available automotive cash flow in order to follow up with shareholder return payments and I would hand that question of course over to you Walter with regards to 2026. Thank you Hello hanging so in principle, our framework hasn't changed right a frame I guess, 30% to 40% and share buybacks.

Paul Smith: That's right. Yeah, absolutely. Yeah.

Jochen Goller: Okay. Listen, basically, you know, this car comes across many Coopers.

Listen.

[laughter].

Basically.

You know this car comes across many coopers. So it's not just one but all Cooper are coming with the addition, Postmus edition, so which one is your favorite one.

Paul Smith: Yeah.

Jochen Goller: It's not just one, but all Cooper are coming with the edition, Paul Smith Edition. Which one is your favorite one?

Walter Mertl: Hello, Henning. In principle, our framework hasn't changed, right? Our framework is 30 to 40%, and share buyback. Usually we also limit that with free cash flow. As an exception last year in 2025, we said exclusive to free cash flow situation. That's what we did. Ultimately in 2025, you shall see, with our proposed dividend, which has to run through the annual general meeting of course, plus share buyback, we would have achieved EUR 4 billion cash out, and we have achieved an automotive free cash flow of EUR 3.2 billion. We can do statements that we are overrunning the automotive free cash flow. Usually, I would see that as an exception. Between 30 and 40, there's a lot of room for maneuver.

And usually we also limit that is free cash flow and as an exception last year and 25% exclusive to free cash flow situation.

Paul Smith: That's a difficult question. Yeah. Can I have one of each, please?

That's a difficult question.

Can I have one of each please.

Jochen Goller: That's not in the budget, unfortunately.

That's not in the bedroom.

Paul Smith: I pick this one.

And at least one done this one.

And that's what we did so ultimately in 25, you shall see with our proposed dividend, which has to run through the end of return or a meeting of course.

Jochen Goller: This one, then.

Paul Smith: This one.

Jochen Goller: This one?

Yeah, No lovely beautiful I hope you like everybody. It's really so so special so just to make clear so.

Paul Smith: Yeah. No, lovely. Beautiful. I hope you like it, everybody. It's really so special.

Jochen Goller: Just to make clear, so the Sir Paul Smith Edition comes across all the Cooper models.

Plus share buyback.

We would have achieved 4 billion euros cash out and we have achieved in the auto free cash flow of $3 2 billion. So we can do statements that'd be our overrunning the automotive free cash flow, usually I would see that as an exception, but between 30 and 40, there's a lot of room for maneuver on the suggestion fee due to the end of.

Plus Mr. Addition comes across all the Cooper models, whether it's the convertible or the Cooper. So you have the choice listen ladies and gentlemen, everyday is a new beginning and actually what better way to close our press conference because here at BMW Mini we are leaving you with a sense of optimism of.

Paul Smith: Yeah.

Jochen Goller: Whether it's a convertible or the Cooper, so you have the choice. Listen, ladies and gentlemen, every day is a new beginning. Actually, what better way to close our press conference, because here at BMW and MINI, we are leaving you with a sense of optimism of what is ahead. Arigatō gozaimasu. Thank you very much and goodbye.

Return of our meeting is 36, 6%.

What is at so arigato quasi mushtaq, thank you very much and goodbye.

Walter Mertl: The suggestion we do to the annual general meeting is 36.6% payout. There is still room for 14, whatever we discuss, and I think that is a discussion for in 11 months rather than now. We just can highlight that we're sticking to our rules and the share buyback we are running currently. The second tranche is going to be ending by August. We also mentioned that we earmarked already the third tranche, so share buybacks are moving on. I think that is all I can say to this topic currently.

Pay out so there is still room for 14th whatever we discuss and I think that is a discussion for an 11 months rather than now.

VITAS come highlights that we are sticking to our rules and the share buyback. We are running currently the second tranche is going to be ending by August and we also mentioned that we earmarked already the third tranche.

So share buyback so moving on I think that is all I can say to this topic currently.

Thank you very much Walter ladies and gentlemen.

This brings us to the end of our Q&A for the 2026 BMW Group annual conference analyst and Investor call.

Maximilian Schöberl: Thank you very much, Walter. Ladies and gentlemen, this brings us to the end of our Q&A for the 2026 BMW Group Annual Conference Analyst and Investor Call. Thank you all for making the time to join us here today, and we wish you a great rest of your day. Thank you.

Thank you all for making the time to join US here today, and we wish you a great rest of your day. Thank you.

Q4 2025 Bayerische Motoren Werke AG Earnings Call - Q&A

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