New technologies and break trough innovations have a strong impact on the automotive supply chain in the future. What are the new challenges for purchasing, logistics, complexity management and component production of an automotive OEM?

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2. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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 BMW Group Strategy Number ONE
 Swift access to new technologies
 A global undertaking
 Working with our suppliers for peak performance
 Summary

3. BMW Group
Dr. Christl
Purchasing and
Thh BMW Ghhhhh
Supplier Network
The world’s hhhhhhh hhhhhhh OEMh
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Automobiles Business year 2010:
Retail sales  Revenues: €60.5 billion
 Sales 2010:
BMW
1 ,224.280 + 1 4.6 % 1.461 million automobiles
110,113 motorcycles
 Headcount: approx. 96,000
MINI 234,1 75 + 8.1 %
Rolls-Royce Business year 2011:
2,71 1 + 1 70.6 %  Goal: More than 1.5 million
vehicle deliveries
BMW Group  EBIT 2011 margin in Q1
Motorcycles 11.9% in the automobile
Financial Services segment
BMW Motorrad BMW Financial MINI Financial
Services Services
Husqvarna Motors

4. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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5. BMW Group
Dr. Christl
Purchasing and
BMW fficientDynamics – The “140g fleet”.
E
Supplier Network
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52 hhhhhh hhhh hhhh 140h CO2hhh hh hhhhh
BMW 520d: BMW 520d Touring: BMW 320d: BMW 320d*: BMW 320d xDrive: BMW 318d: BMW 316d:
135 kW / 184 hp 135 kW / 184 hp 135 kW / 184 hp 120 kW / 163 hp 135 kW / 184 hp 105 kW / 143 hp 85 kW / 115 hp
4.9 l / 129 g 5.1 l / 135 g 4.7 l / 125 g 4.1 l / 109 g 5.2 l / 137 g 4.5 l / 119 g 4,5 l / 118 g
BMW 320d Touring: BMW 320d xDrive Touring: BMW 318d Touring: BMW 316d Touring: BMW 320d Coupé: BMW 320d xDrive Coupé: BMW 320d Convertible:
135 kW / 184 hp 135 kW / 184 hp 105 kW / 143 hp 85 kW / 115 hp 135 kW / 184 hp 135 kW / 184 hp 135 kW / 184 hp
4.8 l / 128 g 5.3 l / 140 g 4.5 l / 120 g 4.5 l / 119 g 4.7 l / 125 g 5.2 l / 137 g 5.1 l / 135 g
BMW 123d 5-door: BMW 120d 5-door: BMW 118d 5-door: BMW 116d 5-door: BMW 123d 3-door: BMW 120d 3-door: BMW 118d 3-door:
150 kW / 204 hp 130 kW / 177 hp 105 kW / 143 hp 85 kW / 115 hp 150 kW / 204 hp 130 kW / 177 hp 105 kW / 143 hp
5,1 l / 135 g 4.7 l / 125 g 4.5 l / 119 g 4.5 l / 118 g 5.1 l / 135 g 4.7 l / 125 g 4.5 l / 119 g
BMW 116d 3-door: BMW 123d Coupé: BMW 120d Coupé: BMW 118d Coupé: BMW 123d Convertible: BMW 120d Convertible: BMW 118d Convertible:
85 kW / 115 hp 150 kW / 204 hp 130 kW / 177 hp 105 kW / 143 hp 150 kW / 204 hp 130 kW / 177 hp 105 kW / 143 hp
4,5 l / 118 g 5.1 l / 135 g 4.7 l / 125 g 4.5 l / 119 g 5.3 l / 140 g 5.0 l / 133 g 4.9 l / 129 g
BMW X1 sDrive20d: BMW X1 sDrive18d: MINI One MINI One D MINI Cooper MINI Cooper D MINI Cooper D ALL4 MINI One:
130 kW / 177 hp 105 kW / 143 hp Countryman: Countryman: Countryman: Countryman: Countryman: 55 kW / 75 hp
5.3 l / 139 g 5.2 l / 136 g 72 kW / 98 hp 66 kW / 90 hp 90 kW / 122 hp 82 kW / 112 hp 82 kW / 112 hp 5.4 l / 127 g
6.0 l / 139 g 4.4 l / 115 g 6.0 l / 140 g 4.4 l / 115 g 4.9 l / 129 g
MINI One MINIMALIST: MINI One: MINI One MINIMALIST: MINI One D: MINI Cooper: MINI Cooper D: MINI Cooper S: MINI One Clubman:
55 kW / 75 hp 72 kW / 98 hp 72 kW / 98 hp 66 kW / 90 hp 90 kW / 122 hp 82 kW / 112 hp 135 kW / 184 hp 72 kW / 98 hp
5.1 l / 119 g 5.4 l / 127 g 5.1 l / 119 g 3.8 l / 99 g 5.4 l / 127 g 3.8 l / 99 g 5.8 l / 136 g 5.5 l / 129 g
MINI One D MINI Cooper MINI Cooper D MINI Cooper S MINI One MINI Cooper MINI Cooper D MINI Cooper S
Clubman: Clubman: Clubman: Clubman: Cabrio: Cabrio: Cabrio: Cabrio:
66 kW / 90 hp 90 kW / 122 hp 82 kW / 112 hp 135 kW / 184 hp 72 kW / 98 hp 90 kW / 122 hp 82 kW / 112 hp 135 kW / 184 hp
3.9 l / 103 g 5.5 l / 129 g 3.9 l / 103 g 5.9 l / 137 g 5.7 l / 133 g 5.7 l / 133 g 4.0 l / 105 g 6.0 l / 139 g
Fuel consumption in l/100km in the EU test cycle. CO2 emissions in g/km. * EfficientDynamics Edition 10/2010

6. BMW Group
Dr. Christl
Purchasing and
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MINI E and BMW Concept Active E
BMW 7 Series and X6 Active Hybrid
BMW Vision Efficient Dynamics
Mega City Vehicle

7. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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Seite 7
Product highlights Key supply chain figures
 Efficient dynamics  90% material costs/
(e.g. 520 d with 129g/km CO2 best values 10% production costs BMW
in its sector)
 10 000 parts/vehicle,
 Integral active steering 2500 are new per launch
 Unique range of driver assistance  75 pieces of optional equipment, 15
systems coats of paint, and
 Head-up display complexity of combinatorics
 Connected drive  30 – 35 JIS components:
instrument panel, front end, rear
 Remote control via Smart phone
end, customised wiring harness,
 … exhaust system …
The new 5 Series

8. BMW Group
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Purchasing and
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in million units p.a.1 projected for 2015 1
in Mio. Stück (2009) p.a. 1
p.a. Projektion 2015
When we achieve the goals of our
variant management programme,
our larger volumes
will almost compensate for the
advantage other OEMs have.
-10% 0.50
0.45
0.35 0.10 0.17
0.33
0.35 0.33 0.33
Other OEMs
before after
1. Only core derivatives examined in spare parts analysis (15 derivatives)
2. 2015 Snr level at 2009 volumes

9. BMW Group
Dr. Christl
Purchasing and
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Purchasing Logistics
 Production material  Supply
 Indirect purchasing  Material control
 Cost engineering  Structure of value creation
 Controlling , projects
Karosserie
 Management of variants
Int erieur, E/E
Rohbau Lack Montage
Lack
Fahrdynamik Press-
Motor
werk
Ant rieb Produkt ion
Invest it ionen, Waren, Dienst leist ungen
Logist ik
Qualit ät smanagement Teile
St rat egie, St euerung, Projekt e
Component Quality
Einkauf und Lieferantennet zwerk
Production
 QA
 Paint shop  Goodwill and
 Cockpit/equipment warranty/supplier recourse
 Seats, injection die moulding  Sustainability
 Light alloy casting house  Management system

10. BMW Group
Dr. Christl
Purchasing and
BMW Shhhhh Chhhh Nhhhhh ONEh
Supplier Network
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Sustainable improvement of profitability
Improvement of supply chain and schedule adherence
More customer-relevant innovations
Further quality improvements
Increase in capital productivity
Economic and sustainable natural hedging
BMW Group Strategy
Number ONE Breakthrough goals for BMW Purchasing and Supplier Network
Supply Chain Number ONE
Regarding quality, innovations, schedule adherence and costs,
we create the most effective OEM supply chain worldwide
in order to ensure the sustainable success of businesses.

11. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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 BMW Group Strategy Number ONE
 Swift access to new technologies
 A global undertaking
 Working with our suppliers for peak performance
 Summary

12. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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High-voltage battery
Power electronics
Transmission
with electric motors
Combustion engine

13. BMW Group
Dr. Christl
Purchasing and
SB LiMotive – hhh hhhhhhhh hhh hhhhhhh hhhhhh
Supplier Network
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50% 50%
Object of venture:
Lithium-ion-battery technology for power train and on-board power supply applications
(µHEV, HEV, PHEV, EV).
Development: Assembly: Distribution:
cell/module Korea: Giheung Korea: Ulsan
Europe: tbd
USA: tbd
Customer support including distribution
and project management in all areas.
battery pack/ Korea: Giheung Asia: tbd
system/ Germany: Stuttgart Europe: tbd
application USA:
USA: Orion/MI Springboro/OH

14. BMW Group
Dr. Christl
Purchasing and
Ehhhhhhhh hhh CFRP hhhhh hh hhhhhhhhhhh
Supplier Network
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15. BMW Group
Dr. Christl
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Supplier Network
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Moses Lake,
M oses Lake,
Washington State
Washington State
Production of
Carbonfaser- Wackersdorf
Wackersdorf
produktion
carbon fibre
produc t ion CFRP non-crimped
CFK- Gelege und
fabricsrecycling
- and recycling
Leipzig
Leipzig
CFRP production
CFK- Fertigung
finalCV- Endm ontage
M assembly of MCV
… and others Landshut
Landshut
Supplier Manufacture of CFRP
CFK-Teilefertigung
components In- house production
qualification
Joint- venture
Supplier qualification

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Dr. Christl
Purchasing and
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Supplier Network
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 BMW Group Strategy Number ONE
 Swift access to new technologies
 A global undertaking
 Working with our suppliers for peak performance
 Summary

17. BMW Group
Dr. Christl
Purchasing and
Ehhhhhhhh hhhhhh hhhhhhhh hhh hhhhhhh hhhhhhh
Supplier Network
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Unit labour costs
Lohnstückkosten
Nutzung vonin
Differences
factor costs
Fakt orkosten- China 36%
China 36%  Purchasing follows sales
India 44%
vort eilen Indien 44%
Mexico 48% development.
M exiko 48%
- compared
with Deutschland
ggü. Germany
-Vergleich D-  Capitalising on global
competition.
Währungsrisiken
Currency risks
Fremdwährungsüberschuß
Einkauf in
50%
(Netto-Exposure) 2010
Sales revenue in in %
Umsat zerlöse %
 Minimising currency risks.
Foreign currency 5.500 3.971
Purchasing volume in %
Einkaufsvolumen in %
Fremdwährung
excesses 3.500 2.206  Increasing purchasing and
1.271 1.037
25%
(Natural Hedging) 1.500 222
contract volumes in foreign
-500
Mrd.€
USD GBP CNY JPY KRW
Europa N- Am erika
currencies.
D RoW
 Making use of multicurrency
Annual growth rates
J ährliche Wachst um srat en
Fokussierung auf GF PKW orders (part payment in the
Local content currency in which value is
Wachst ums-
requirements in actually being created).
märkt e China +6,4%
growth markets
(LC A nforderung) a
Asien/Row +5,7%

18. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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Example: E-mobility
 New technologies
 Swift progress in
technology
 New markets
 Global partner networks
 Opportunities for new
suppliers
Quelle: Automotive News

19. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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 BMW Group Strategy Number ONE
 Swift access to new technologies
 A global undertaking
 Working with our suppliers for peak performance
 Summary

20. BMW Group
Dr. Christl
Purchasing and
Thhhhhhh hhh hhhhhh hh hhhhhhh hhhhhhh
Supplier Network
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Technology
for exteriors
Technology - Production & Supplier
Purchasing
development tool shop empowerment
Ghhhhhh Production and technology
expertise for the supplier network.
Chhhh
 Expertise in plastics
Ohhhhh Lhhhhhhhh
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"from one source".
Shhhhhhhhhh Shhhh  Internal and external know-how for
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the best solution in each case.
 2700 employees in the supplier
Shhhh Ahhhhh
MINGHUA
network.
 250 employees at BMW.
 More than 15 sites around the world.
 Supplier empowerment through own
know-how.

21. BMW Group
Dr. Christl
Purchasing and
Lhhh Shhhhh Chhhh Thhhh
Supplier Network
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 Business processes  OEE
 Production system  Productivity
Best- of- Bench-
 Technology marking  Cost performance
class in
 Value stream via  Supply service
 Quality  Quality key parameters

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Dr. Christl
Purchasing and
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Supplier Network
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Fulfilment of field quality requirements
Breakthrough
Durch-
goal
bruchs-
Quality:
Zielerfüllung Feldqualit ät
ziel
 Examine current quality situation in detail.
100% heut e
Today morgen
Tomorrow
 Assess status of collaborations, technical
and logistical delivery quality, field quality
and quality defects.
 Implement measures and follow up.
50%
heut e
Today heut e
Today Costs:
 Agree cost targets and follow up with
appropriate measures.
0% 50% 100% Breakthrough
Durch-
goal
bruchsziel  Address action points.
 Identify risks and opportunities for future
Zielerreichung Kost en
Achievement of cost targets business relationship.

23. BMW Group
Dr. Christl
Purchasing and
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Supplier Network
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BMW Whhhh Chhhh Chhh Ehhhhhhhhhhh
Production costs
 Staffing cross functional teams
 Cost circles and contract awards
 Cost peetration by commodities
28% 80%
Ziel 12/2010:
12/2010 Tools
09/2009 ~ 80%
 Optimisation of capital expenditure
 Tool-making map
 expertise in Asia and Europe
Supplier development costs
 Establish cost analysis
 Pilot projects in 1 and 3 Series and
MINI successors
Logistics
 Development of cost analysis for
inbound plant logistics
 2nd-1st-tier logistics modules

24. BMW Group
Dr. Christl
Purchasing and
Ohh hhhhhhh hhhhhhhhh hhh hhhhhhhhhh
Supplier Network
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Excellent quality is a fundamental
prerequisite for successful business relations
We continuously review our
We get our suppliers to deliver peak performance
network structures and come up with
in intensive competition. We are tough but fair.
better solutions
We are active around the world and take We offer the organisation access to all the
calculable risks. Foreign languages in different relevant innovations for the automotive business
cultures are no problem
Working
We resolve goal conflicts goals in the interests We work and communicate actively and
of our organisation and deliver on our promises.
Judge us by our deeds.
together for peak constructively with each other and
with our process partners
performance
The decisions we make are transparent We compare ourselves with our competitors
and comprehensible all the time. Continuous benchmarking
We implement the principles of VPS Customer value is our main focus as we
along the entire value chain question vehicle requirements
We demand the most efficient implementation in
the world – from ourselves and our suppliers

25. BMW Group
Dr. Christl
Purchasing and
Thh hhhhhhhhhh hhhhhhhh hh hhhhhhhhhhh
Supplier Network
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 BMW Group Strategy Number ONE
 Swift access to new technologies
 A global undertaking
 Working with our suppliers for peak performance
 Summary

26. BMW Group
Dr. Christl
Purchasing and
BMW – hhh hhhhhhh hhhhh
Supplier Network
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100%
80%
Attractive
“Which carmakers 60% Very attractive
50%
are most attractive 40%
47% 54% 45% 42%
40%
34%
30% 41%
to work with?” 42% 35% 31% 32% 25%
20% 26% 25%
20%
27% 26%
28% 26% 22% 27% 27% 26% 21% 24%
20% 12%
10% 15% 12% 14% 10% 14%
0% 8% 8% 7% 8% 5% 2% 3%
100%
80%
“Which carmaker 34% 37% High
38%
makes the highest 60% 43%
Very high
demands for the 40% 39% 27% 31% 46% 33%
38% 44%
best product 20%
54% 51% 46% 38% 27% 21% 31% 33% 28% 29%
35% 22% 23%
technology?” 22% 29% 25%
17% 22% 16% 11% 15% 16%
9%
21%
0% 6% 7% 8% 4% 6% 5% 3%
Source: Supplier Business 2010

27. BMW Group
Dr. Christl
Purchasing and
BMW Shhhhh Chhhh Nhhhhh ONEh
Supplier Network
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Supply Chain Number ONE
Regarding quality, innovations, schedule adherence and costs,
we create the most effective OEM supply chain worldwide
in order to ensure the sustainable success of businesses.
Fit
for future
 Sw ift access to new technologies mobility!
 A global undertaking
 Working w ith our suppliers for peak performance

28. BMW Group
Dr. Christl
Purchasing and
Thh hhhhhhhhhh hhhhhhhh hh hhhhhhhhhhh
Supplier Network
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