Audi Investor and Analyst Day 2018 · Audi Investor and Analyst Day 2018 Alexander Seitz Board Member for Finance, IT & Integrity, AUDI AG

Audi Investor and Analyst Day 2018

Alexander SeitzBoard Member for Finance, IT & Integrity, AUDI AG

robust KPIs 2017p

erfo

rm

an

ce

2016

60.1

2017

+1.4%

59.3

2017

SI 0.4

5.18.4%

4.88.2%

4.7

2016

3.1

SI 1.8

+4.4%

1,878

20172016

1,868

+0.6%

Deliveriesslightly above prior year

Revenueslightly above prior year

Operating profitbefore/after special items (SI) above prior year

Audi brand, ’000 vehicles EUR billion EUR billion

€$

£¥

passes 60bn EURre

ve

nu

e

59.3

+1.4%

2017

60.1

2016

EUR billion

speeds-up revenueL

am

bo

rg

hin

i

1,009(906)EUR million

↗+11.4%

Du

ca

ti (731)736

contributes stable revenue

EUR million

↗+0.8%

pro

fit

& l

oss

↗Cost of goods sold

2017 2016

–50,545 –49,390

Distribution costs –5,297 –5,807

Administrative expenses

Revenue 60,128 59,317

Other operating result 1,069 –405

–685 –663

Operating Profit 4,671 3,052

robust performance

+2.3

–8.8

+1.4

X

+3.3

+53.1

∆ in %

Operating Profit before special items

5,058 4,846 +4.4

EUR million

2016 2017

5,058*8.2%*

Fix costs and

depreciation

(e.g. related to

production network)

Mix

CO2

Pricing

Product costs/R&D

FX (net)

Genuine parts

4,846*8.2%*

5,058*8.4%*

pro

fit

an

aly

sis

Operating margin of 8.4%

+

+

+

+

–

–

–

* KPI adjusted by special items

20172016

5,058*8.2%*

4,846*8.2%*

5,058*8.4%*

-1,794

3,0525.1%

Special items

Takata and

Diesel issue 4,671

7.8%

-387

pro

fit

an

aly

sis

impacted by special items

* KPI adjusted by special items

Fix costs and

depreciation

(e.g. related to

production network)

Mix

CO2

Pricing

Product costs/R&D

FX (net)

Genuine parts

+

+

+

+

–

–

–

SpecialitemsDieselissue

financial strengthn

et c

ash

flo

w

4,312(2,094)↗

ne

t liq

uid

ity

20,788 (17,232)↗

sale of

participation

–

+

diesel issue

EUR million

EUR million

new models FX-headwinds

new regulationsnew technologies

deliveries revenue

net cash flowoperating margin

slight

2.7 and 3.2 billion EUR

between

8 – 10%

prior year level

between

increase

Action and Transformation Planfu

tu

re

via

bil

ity

Free up more than

EUR 10 bn. for CO2,

electric and autonomous

driving and digitization.

Upfront expenditure of

more than EUR 40 bn.

till 2022 to secure

competitiveness.

Maintain profitability

in the corridor of 8 to 10%

over the longterm.

Action and Transformation Plan

40Milliarden EUR

&Model

initiativeMarket

penetrationMaterial, invest-ment & indirect purchasing costs

Factory costs TD trans-formation

OrganizationChina

Target of more than EUR 10 billion

30% from revenue increases 70% from cost savings

Stadler/Schot Schot/Seitz Martens/Mertens Kössler/Göbel Mertens/Martens Göbel/SeitzStadler/Schot

Audi Investor and Analyst Day 2018

Bram SchotBoard Member for Sales & Marketing, AUDI AG

1.88 mio.

+0,6 %

Global Sales 2017A

ud

i

Core regionsA

ud

i

+7.8%

USA

226,511 cars

(210,213)

+0.5%

805,388 cars

(801,116)

Western

Europe

Top Ten markets 2017A

ud

i

1. CHINA

2. GERMANY

3. USA

4. GREAT BRITAIN

5. ITALY

6. FRANCE

7. SPAIN (incl. Canary Islands)

8. CANADA

9. BELGIUM

10. JAPAN

WORLD

2017 Delta vs. previous year

597,866

294,544

226,511

175,217

68,954

63,980

56,083

36,007

32,760

28,301

1,878,105

+6,312

+1,237

+16,298

-2,348

+6,524

+2,228

+4,204

+5,463

-510

-151

+10,367

+1.1%

+0.4%

+7.8%

-1.3%

+10.5%

+3.6%

+8.1%

+17.9%

-1.5%

-0.5%

+0.6%

Core regionsA

ud

i

+7.8%

USA

226,511 cars

(210,213)

+1.1%

China

597,866 cars

(591,554)

+0.5%

805,388 cars

(801,116)

Western

Europe

Ch

ina

30 years of success

1987 2022

6

2017

1

Au

di

Sp

ort

Constant Growth

24,000 RS-models

High performance electric vehiclee

-tro

n

Digital Retail ElementsC

on

ne

cte

dR

eta

il

+500 in 2017

my

Au

di

Audi on demand

USA

Canada

Spain

DenmarkGreat Britain

United Arab Emirates

Russia

South Korea JapanChina

Germany

France

Italy

Singapore

Australia

Stra

te

gy

Outlook

AUDI – THE MOST

DESIRED PREMIUM BRAND

BEST PRODUCTS AND PERFORMANCE

LEADING PREMIUM EXPERIENCE

IMAGE AND INNOVATION LEADERSHIP

Pro

du

ct i

nit

iativ

eBest opportunity ever

Disclaimer

The following presentations contain forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken orwritten and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statementsare based on assumptions, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. Theseassumptions relate in particular to the development of the economies of individual countries and markets, the regulatory framework and the development of the automotiveindustry. Therefore the estimates given involve a degree of risk, and the actual developments may differ from those forecast. The Volkswagen Group currently faces additional risksand uncertainty related to pending claims and investigations of Volkswagen Group members in a number of jurisdictions in connection with findings of irregularities relating toexhaust emissions from diesel engines in certain Volkswagen Group vehicles. The degree to which the Volkswagen Group may be negatively affected by these ongoing claims andinvestigations remains uncertain.Consequently, a negative impact relating to ongoing claims or investigations, any unexpected fall in demand or economic stagnation in our key sales markets, such as in WesternEurope (and especially Germany) or in the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of asignificant shift in current exchange rates in particular relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and Czech koruna.If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed orimplied by such statements.We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded.This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.