 Well, good morning everyone and first of all, thank you Krona for getting my name right You know, I think you mentioned I'm originally from Portugal and for some reason people have a problem with my name I get Pablo a lot. I get Polo with a no I get Paula people who rely too much on spell check and the last conference I was at I was introduced as Paolo was going well Elves, you know, I'm not a big guy But calling me an elf is a little bit hard if you do if you don't mind, but I've come prepared I have learned when in Ireland do as the Irish do and later on if you find Paul easier I'm happy to roll with it. No problem at all there. Anyway, I digress and I want to talk to you about evolution and I started the this talk with the video which we produced to celebrate a hundred years as a company Which we celebrated in 2016 so as Ireland was celebrating a hundred years since the Easter Rising We were celebrating a hundred years since BMW was established as a company and sometimes it's easy. You can see on the screen there the first You could call the first BMW was a Dixie and for the ones of you that know about cars It looks like a bit like an Austin 7 that's because it was a bloody Austin 7 which you're producing under license And on the right you see the BMW I8 so I've got those two cars to symbolize Evolution and sometimes it's easy for us to think that we've come a long way Let me argue that we fundamentally haven't the car is still basically where it was all that time ago You know a steering wheel four wheels very little has changed in my own lifetime That's me as a baby on my father's car on 1974 75 and By the way, it's an NSU prince which later became part of Audi And I know what you're thinking Admittedly quite an ugly baby very chubby And I first used this slide about six months ago And my wife just caught a glimpse of it on my screen on my laptop and she said who the hell is that ugly baby? Very offensive, but it's even more tragic because she was then expecting our first child And I could swear that we're about to witness the first baby ever to be born ugly according to his own mother So I was praying that you'll get at least you know mommy's looks and daddy's brains To get it something of me. Anyway, there was six months ago. Maybe he was born. He'll be pleased to know healthy And they still still look all the same to me if I'm honest all babies are the same But I'm told by people that know that is at least an average-looking baby. There is baby Oscar Rupert Anyway, I digress yet again I'm here to talk about evolution and Evolution is a challenging concept because it tends to be exponential and that gives us two very uncomfortable very annoying challenges the first one is if you don't like change Life is quite a dark place to be because things tend to change and change and not just they continue to change But they change faster Also the concept that you know today is the slowest rate of change You will see for the rest of your life quite scary, isn't it then the second challenge and It's probably more relevant in a conference called predict is that it is bloody hard to predict the future Because our brains tend to be much more comfortable with linear Concepts than exponential. We just can't use our own experience that we've acquired over a lifetime And sometimes as the older generation, I'm starting to jump into that camp We think we've got the experience so we know more we know bugger all because we cannot use our experience to help us predict The future we just can't so actually younger person may be better prepared to understand what's coming then indeed a more senior one and I often do some school talks and so on I took to kids about engineering and Careers and so on and I compiled this slide with gadgets that Formed my Bringing my growing up years and the stuff that unfortunately has been resigned to scrappy pretty much all of it Like I said that IBM computer my dad used to work with those my dad still work with punctured cards there You can see her on the left My first computer ever the PC kind of ZX Spectrum You can see mixtapes and Tom and Jerry in the Walkman all this stuff I thought he's so cool with my first mobile phone there, but in reality and this is now Well in the past and as I said in scrappy and I use it here as a symbol as well that If you're not careful enough despite, you know the size we have as a company and I refer to BMW as well The future may not be a certain as we think it might be so what is the future going to look like? Well as part of our celebration of our hundred years, of course We kind of give each other a hug and say isn't it great? We are one of the few companies that can get to a hundred years, but more importantly What does an X a hundred years going to look like so as part of our celebrations? We unveiled for concept Vehicles that symbolize where we think we're going to go what you can see here on the screen is a BMW vision X 100 is You know a thorough BMW a car that will allow you the pleasure of driving that our customers really value But also the ability to be driven in the car in autonomous mode if you so wish We unveiled the mini vision X 100 a car that is a nod towards shared mobility So imagine you can drive from here To Dublin Airport in your mini with your temperature settings and your colors and your radio station and everything else You fly from Dublin to London you get there and your mini comes to collect you Recognizes you and changes its configuration to exactly the same mini you left behind so that means shared mobility It doesn't need to be kind of Inocuous you're not going to be in somebody else's car. It can still be your car even though is a totally different machine The Rolls-Royce vision X 100 the car is all about opulence and the Comfort of the customers as you can imagine not even the possibility to drive it It's gonna be a fully autonomous car because we expect that's what the Rolls-Royce customer would would want and the Motorrad vision X 100 A motorbike that is so safe that you don't need the helmet it to project augmented reality information about the road condition and a bike that keeps itself upright at all times through Gyroscopic effect now These were concept cars clearly, but they symbolize very strongly where we think the development of Mobility is gonna go. I'm gonna talk to you about these four themes That shape mobility not just for us, but pretty much the whole of the automotive industry is moving that direction The first theme is one of electrification you'd have seen outside and quite a few of the cars in our range from a BMW 3530 that carries a plug-in hybrid. I think currently mentioned the BMW i3 a fully electric car We see very clearly electrification is going to feature as The the near to the long-term future and we started back in 2012 That's what you can see that the BMW i3 the BMW i8 as well, which is a very progressive sports car as a plug-in hybrid and it is important not just because of course we talk about the beauty or the advantage of Electric mobility for having zero CO2 or the tailpipe So there's no emissions But we've gone further and we looked at the whole production process and we are using a lot Less power less emissions a much smaller carbon footprint right from the beginning right from production We we've earned the Dow Jones sustainability index for the last ten years And is pretty much on the back of the focus we are putting on Sustainability so compared to a conventional small car if you look at the i3 It's about 50% of the carbon footprint in production Let alone the fact that there's no CO2 there after when you're driving the vehicle And I was recently the IAA in Frankfurt and it's clear that pretty much every brand They are rushing the kind of elbows out getting to the nearest socket to plug their cars You know everyone is really rushing towards that Electrification of the mobility and that's just not a professionally taken shot. I took that in my own camera There was our press conference and we've got we've got nine Models already including electric scooter. You can see on the screen a mini plug-in hybrid as well So nine models that are on the road today And I really encourage you I think in all your packs You've got a voucher for a go car to is a great opportunity to try for yourselves an electric car I highly recommend that so up until now when I talk about The the way mobility is developing has been very much about engineering, you know harnessing Power harnessing electricity into electronics But now it becomes about harnessing the power of data as well because electrification is still about engineering playing with technology But from now on is is about data. I talk about shared mobility We have something you call drive now is really a shared mobility concept We've got it running on the shit 12 and it's 13 cities since I put a slide together with other Milan and Brussels as well Over 810,000 customers and growing people that are using this concept of shared mobility We expect the younger generations. They can see a lot of lot here today They don't want the hassle of owning a car. They want to use it as and when they need it and Leave it back. So somebody else to worry about the tires and the maintenance and the insurance and all that kind of stuff and Also when you look at the growth for us as a company if you mentioned this very simple diagram We've got business potential on the y-axis and time on the x-axis We've gone from a very much an owning economy Which I put Ireland very firmly in that we're starting to see a bit of finance economy growing where people actually being more comfortable with the PCP you know the leasing model of Car ownership and we expect in the future the potential for growth is on demand You know, I think the mobile phone is a bit of a cliche talking about how it has changed the way we look at owning stuff But it's very true. No one will go and buy an expensive handset and then look to maintain it or replace it You pay 50 quid a month and off you go. That's your your mobile needs KG for we expect the same is gonna happen with with car ownership and the vouchers I mentioned in your pack are for go car. It's kind of a car sharing scheme living in Dublin. We don't have Drive now in Dublin at the moment. The next key theme is one of connectivity We're all obsessed with data and everything at our fingertips and you can see on the left There are quite a few of the applications drive now. I've mentioned looking at park now Parking availability is served to you. So, you know, it's like where the parking spot is waiting charge now looking at wherever you are in the world having a network of kind of charging that you can access very easily and pay for very easily and The BMW connected up which we are growing and really we're heading towards this open mobility cloud where everything from your favorite coffee shop to the weather conditions and the traffic jam and Need to be at nine o'clock in a certain place is all brought to you Into your device from the moment you're in bed where you get a warning. So actually there's been a crash You probably should get our bed now if you want to be at nine o'clock in the RDS in Dublin That's where clearly the the the kind of mobility offer is is is going and I will finish with the concept of automation Everyone is obsessed with when is a driverless car coming was great to see John actually made the a nod towards the I think the Google car you mentioned And clearly it's coming. It's kind of already here to some extent. This is the You know the the ingredients inside the latest BMW 5 series and 7 series with driving assistance We call it there's a lot of technology ready in the car to actually allow it to constantly survey the surrounding and we are already the way we look at the journey towards autonomous cars is in these five steps you can see Level zero being just about the human interface. Pops my dad's NSU prints as you saw earlier feet off with introduction of Active cruise control that the car breaks and accelerates for you based on the surroundings. We are ready at the hands-off stage So latest BMW 5 series and of course other manufacturers that do it as well Allow you to actually have hands-off for a short period of time at this stage because it's clear for legal reasons The drivers to fully in control But you can already let go of the steering wheel on the motorway and the car will carry on steering braking accelerating And to keep you safe and on the move the next stage is one of eyes off for longer periods of time You can actually go on your emails iPads and so on Mind-off allows you to sleep in the car potentially take a good nap and The car will warn you if they needs your help to eventually and I'm hoping that's the case by the time my son Goes to rugby training because I don't want to have to drive him to the training No Sunday morning and stand by the lines on a freezing cold. I can get him in a pod You'll be driven there and back without me having to get out of bed now This video will be able to explain those stages much quicker than I could The BMW group is implementing fully autonomous driving over five levels of development in the process of Responsibility for driving the car will shift from the person at the wheel to the car itself Today the second level has already been reached here The driver is aided by assistance systems and can remove their hands from the steering wheel for brief periods at the third level They will sometimes be able to completely turn their attention away from driving But must be able to step in again a short notice once level four is reached the driver might even be able to sleep They must have a still be basically fit to drive in case they have to take over control of the car for specific sections of the journey It is at the final level of development that cars will drive fully autonomously The driver will become another passenger and won't even have to be able to drive as the car will assume complete Responsibility for the task of driving at level to stereo cameras and radar sensors monitor the immediate surrounding area Level three requires highly advanced sensors such as laser scanners Ultrasonic sensors and radar systems which together produce a 360 degree model of the vehicles environment This makes it possible to calculate more complex driving maneuvers for level four fully automated driving from 2021 all sensors and cameras will supply far more precise data While the real-time data from the area maps provided by here will also be factored into the process of computing driving maneuvers Level five the first pilot projects for fully autonomous driving are due to get underway in selected cities from as early as 2020 For the BMW group the vision of fully autonomous driving has long since begun So you can see how I was developing so fast clearly when we're not there yet I don't think we'll be there just for a little while You'll see pilots appearing, but there's a lot more work needs to be done on sensor systems some of the radar some of the cameras need to be improved and You mentioned the power of artificial intelligence. That's gonna play a key role NIST would advance more because we need to be able to say confidently that the car the machine is able to handle complex situations in a similar way to a human would do ideally even safer because it's constantly creating this digital reality model and will see beyond what We as human beings will be able to see and predict the big challenge is that big chunk in the middle called Regulatory requirements. There's a lot of catching up to do. How will law deal with the fact that are you in control of the car? How will their insurance provider will kind of cover you? Is it use at your fault? Is that the car that took over? There's a lot of work needs to be done there But I think from a technology perspective. I can assure you by 2021 you'll see the technology ready pilots running. We probably expect to see fully autonomous pilots running in low-speed areas like cities even though they're complex they're safer and Semi-autonomous or highly autonomous on motorways John mentioned trucking be a great example where you can set a you know a laureate truck from Lisbon to Moscow without really having human intervention or very little human intervention as and when needed and I use this model here because in the context of the audience I've got in front of me Is relevant looking at the power of data you can see how in the future It will only work if the car if all cars are connected So actually the cars way beyond beyond the reach in terms of vision of the car and the sensors The car knows because the car is getting from other cars information about the situation so you can have cars transmitting to this mobility cloud and Which turn the reality into a model that every car is tapping into? So a car will know that 300 500 meters ahead there's an accident and will automatically reduce speed whilst we as drivers will be surprised when you get there You can see how the concept of the machine being safer than us as humans Will head towards a much safer driving environment than we see today and those are the four themes and with that I conclude my presentation so you can see a very exciting time for anyone in the industry and clearly the the message especially in a conference like this is When I talk about the shift from the power of engineering to the power of harnessing data There's a way of shaping the future of mobility and I'll finish with our in our very visual way of Representing the way we see the future for all of us The future has begun With mobility that does more than simply transport It offers new freedom personally individually and full of excitement Mobility that gives us time for other things Because it's connected That makes us the ultimate driver When we want it to that electrifies Not only because it's electric Mobility that offers us an exclusive sanctuary and gives luxury a new dimension That's not only a vehicle but also a Companion That's always there when we need it And that adapts to us the way we are That provides us a different kind of safety and a new feeling of freedom The future has begun with mobility that makes anything possible BMW Group The next 100 years Thank you