Bavarian Sky S.A. Compartment 1

This Eur800mln auto leases securitisation will be the first public lease receivables securitisation
for BMW Group Financial Services Germany, and the structure differs from other German leas-
ing transactions as it includes, for the first time, a double tier structure. In the first step BMW -
Leasing will purchase the vehicles from BMW and sell the vehicles in a second step to BMW
Vertriebs GmbH, whereas the sold vehicles will be leased back by BMW - L at the same time.
In a third step BMW - L will then lease the vehicles to the lessees (the sub lessees).

The initial portfolio will consist of 77,992 lease contracts. Cars manufactured by BMW make up
98% of this pool, with the remaining 2% consisting of motorbikes or non-BMW vehicles. Overall,
89% of all vehicles are new vehicles. The transaction will have a revolving period of 2yrs, dur-
ing which the seller will have the right to sell and assign further receivables to the issuer subject
to certain eligibility & portfolio criteria. After the revolving period, the notes will start to amortise
on a sequential basis.

Regarding the actual borrowers, individuals account for 17.4% of the pool, and commercial
customers 82.6%. The average outstanding balance is Eur10,257 , the WA original term was
37.5mnths, and the remaining WA tenure is 27.6mnths. Average seasoning is 10mnths.


Compare/contrast: Cars Alliance Funding 2007-1, SC Germany Auto 2007-2, Driver Four GmBH,
Cars Alliance Funding 2007-1SC Germany Auto 2007-2Driver Four GmBH