BMW GROUP MOBILITY AND CONNECTIVITY OF THE FUTURE

BMW GROUP. MOBILITY AND CONNECTIVITY OF THE FUTURE. DR. JOACHIM GÖTHEL STOA, Brussels, April 25 th 2017

CONVERGENCE OF MULTIPLE TRENDS IN THE AUTOMOTIVE INDUSTRY THAT HAVE THE POTENTIAL TO DRAMATICALLY CHANGE MOBILITY. Automated Connected - Smooth traffic flow Reduce accidents Increase safety Increase productivity BMW Group - Optimize ecorouting - Encourage multimodality - Early warning - Improved safety features Electrified - Zero tailpipe emissions - Increase energy efficiency - Reduce sound - Leverage renewable energy Shared - Reduce congestion - Remove vehicles - Replace old inefficient cars - Reduce VMT 2

THE INTERNET OF THINGS IS THE DRIVER OF RATIONALIZATION OF MOBILITY WORKFLOWS. 96% of time Vehicle not in use 100 hours per year Average time spent looking for parking space Asset Efficiency Park Efficiency 35 hours 6 hours per year Average time spent in traffic jam (Germany) per year Average time spent at gas station (US) Drive Efficiency Service Efficiency A significant driver for the Io. T and On-Demand Economy is rationalization by reduction of transaction costs. The Io. T will have a similar impact on mobility and mobility services as ERP had on the supply chain. Page 3

THE NEW BMW 5 SERIES DRIVER ASSISTANCE PROVIDES COMFORT AND SAFETY AT THE HIGHEST LEVEL. Crossing traffic Top View Remote warning rear / front Lane keeping assistant with active side collision protection Night Vision Lateral parking aid Distance information Lane departure warning Active cruise control with Stop&Go function Rear collision prevention Crossroad Assist Wrong Way Assist Lane change warning 3 D View Speed Limit Assist Top View Approach control warning with braking function Steering and lane control assistant Parking assistant Speed limit and No Pass information Active Park Distance Control BMW Selective Beam Remote Control Parking Panorama View Speed Limit Device

HIGHLY ACCURATE MAPS AND BACKEND CONNECTIVITY. TWO CORNERSTONES FOR HIGHLY AUTOMATED DRIVING. EN-ROUTE APPROVAL VARIABLE TRAFFIC SIGNS TRAFFIC CONDITIONS ROAD WORKS HIGHPRECISION DIGITAL MAPS WEATHER CONDITIONS Foresight by Backend > 200 m Far Range Sensors ~ 200 m Short/ Mid- Range Sensors ~ 70 m BMW Group 5

CONVERGENCE OF MULTIPLE TRENDS IN THE AUTOMOTIVE INDUSTRY THAT HAVE THE POTENTIAL TO DRAMATICALLY CHANGE MOBILITY. Automated Connected - Smooth traffic flow Reduce accidents Increase safety Increase productivity BMW Group - Optimize ecorouting - Encourage multimodality - Early warning - Improved safety features Electrified - Zero tailpipe emissions - Increase energy efficiency - Reduce sound - Leverage renewable energy Shared - Reduce congestion - Remove vehicles - Replace old inefficient cars - Reduce VMT 6

BMW DRIVERS CAN USE A MULTITUDE OF THIRD PARTY APPLICATIONS WITH CONNECTED DRIVE ALREADY TODAY. We already enable many third parties to bring their services into our vehicles.

THE CONNECTED CAR AS PART OF THE INTERNET OF THINGS. THE ULTIMATE IOT DEVICE OR JUST ONE OF MANY? 50, 000, 000 Devices within the Internet-of-Things in 2020 (CISCO) 290, 000 Connected Cars in 2020 (Mc. Kinsey) Page 8

5 GAA AUTOMOTIVE ASSOCIATION. BMW IN ITS LEADING ROLE IN 5 GAA. Foundation 2016 Objective methodologies Development of new communication Standardization and market introduction technical and regulatory questions are the focus Subject era Connected and automated driving in the Gigabit access to services, independent from location intelligent solutions for Smart Cities Societal benefits and requirements on connected mobility Participation Göthel) BMW Group BMW core member, board member (Dr. Joachim CFO (Dr. Fathi El-Dwaik), WG Chair (Dr. Joachim Seite 9

5 GAA AUTOMOTIVE ASSOCIATION. 41 MEMBERS BY END OF APRIL 2017. . BMW Group 10

5 GAA. TRANSITION FROM 4 G TO 5 G. • • • Start with 4 G LTE-V and migrate into 5 G Change from best effort approach 4 G to agreed Qo. S in 5 G Establish Network Slicing in 5 G Ultra-high reliability, low latency in data transmission Data-burst mode enabling ultra-high-speed data up-/download in dedicated areas Flexible HW-/SW-approach for both high-end/low-end frequency selection depending on market demands/roll-out-strategy and markets´ willingness to pay (WTP) BMW Group 11

USE-CASE DRIVEN REQUIREMENTS FOR 5 G COMMUNICATION. infotainment driver assistence highlyautomateddriving Fullyautomateddriving entertainment e. SIM + DSDA Data driven services parallelization of use cases Senso r SOS Low latency Quality of Service high data throughput availability 2 G, 3 G, 4 G UHD Streaming Page 12

5 G COMMUNICATION. ADVANTAGES OF CELLULAR-VEHICLE-TO-X. New technical approach: • Network slicing, agreed Quality of Service (Qo. S) • Efficient utilization of available spectrum • High reliability in dense areas, robust resource management (licenced and nonlicenced) • Future-proof technology evolving in fast cycles driven by consumer market New regulatory approach • Transition from exclusive spectrum for specific services towards • Allocation of network resources according to the local and temporal demand Þ Avoidance of multiple infrastructure investments, re-use of existing infrastructure and coverage Þ BMW will not invest in Wi. Fi 802. 11 p technology (“G 5”). BMW Group 13

SUMMARY CONNECTIVITY. To explore the full potential of autonomous vehicle, a fast and steady network with a full rural, urban and cross boarder coverage is needed. - Rollout of 5 G network with an overall network coverage is needed. - Network should contain a quality of service management concerning bandwidth, latency, availability, ability to monitor and to predict. - Centralized and freely available and reliable infrastructure data (legal framework, consistent API and data formats) for continuous traffic flow, road works, traffic lights, dynamic traffic signs and temporary lane closures… BMW Group 14

CONVERGENCE OF MULTIPLE TRENDS IN THE AUTOMOTIVE INDUSTRY THAT HAVE THE POTENTIAL TO DRAMATICALLY CHANGE MOBILITY. Automated Connected Electrified • Smooth traffic flow • Reduce accidents • Increase safety • Increase productivity • Optimize eco-routing • Encourage multimodality • Early warning • Improved safety features • Zero tailpipe emissions • Increase energy efficiency • Reduce sound • Leverage renewable energy Shared • Reduce congestion • Remove vehicles • Replace old inefficient cars • Reduce VMT Each individual step of ACES is related to DATA and its handling for a seamless experience. BMW Group 15

THANK YOU FOR YOUR ATTENTION. BMW Group Page 16

BACKUP. BMW Group Page 17

INTRODUCTION TO 5 G. TIMELINE OF MOBILE COMMUNICATION SYSTEMS. 4 G Sunset 2026 3 G Sunset 2 G Sunset Year: 2018 Data Rate: > 1 Gbps 5 G@Olym pic Winter Games 2018 VIP Trials 6 Years TCB 3 G WAVE-1 5 G Ready, 4 x 4 (8 x 8) MIMO ATM-2 4. 5 G, 2 x 2 MIMO 2017 2015 2014 ATM-1 4 G, 2 x 2 MIMO 2013 2011 2010 2008 2007 2006 2005 2004 2003 2002 2009 COMBOX 2 G EDGE TCU 1. 5 2 G EDGE Full 5 G 5 G (Release 16) (Release 17) 5 G@Olympic Games 2020 1 st Commercial Deployment 3 Years 5 Years 2012 8 Years 2001 LTE-V (C 2 X) 5 G LTE-M (M 2 M) (Release 15) (Release 14) LTE Advanced (Release 11) 2016 LTE (Release 9) HSPA HSDPA (Release 4) (Release 6) Data Rates / Applications Year: 2008 Data Rate: 10 - 600 Mbps Year: 1999 Data Rate: 2 – 40 Mbps Standardisierung 5 G 4 G 3 G 2018 2019 2020 2021 2022