Central European Field Trip Győr, June 8, 2006 AUDI HUNGARIA MOTOR Kft. Dr. Johannes Roscheck Chief Financial Officer
Central European Field TripGyőr, June 8, 2006
AUDI HUNGARIA MOTOR Kft.Dr. Johannes RoscheckChief Financial Officer
The Audi Group
1885 1899 1907 1909Wanderer Horch DKW Audi
1873NSU
1960NSU
Motorenwerke AG
1969 AUDI NSU AUTO UNION AG
1985 AUDI AG
1932 AUTO UNION AG
1949 AUTO UNION GmbH
The history of the “four rings”
The Audi GroupConsolidated companies (31.12.2005)
2003
2000 ►AUTOGERMA S.p.A.
2002►AUDI SENNA Ltda.
►Lamborghini Group►AUDI DO BRASIL E CIA.
1999
►AUDI HUNGARIA MOTOR Kft.1994
2004►Audi Zentrum Stuttgart GmbH & Co. KG (at equity)
►Audi Vertriebsbetreuungsges. mbH►Audi Japan K.K.►FAW-Volkswagen Automotive Company, Ltd. (at equity)►Audi Australia Pty. Ltd.►Audi Synko GmbH►Audi Zentrum Hannover GmbH►YANASE Audi Sales Company Ltd. (at equity)
►Audi Volkswagen Middle East FZE►Audi Volkswagen Korea Ltd. 2005
►quattro GmbH
AUDI AGIngolstadt
Neckarsulm
Audi Hungaria Győr
Audi do BrasilCuritiba
FAW-Volkswagen Changchun
LamborghiniGroupSant‘AgataBolognese
The Audi GroupProduction facilities
The Audi Group
492546
600 635
920991 996 1,0451,004 972
0
200
400
600
800
1.000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Veh
icle
sal
es[th
ousa
nd v
ehic
les]
,
Vehicle sales
The Audi Group
492 546 600 635
920 991 996 1,0451,004 972
26.624.5
23.422.622.020.0
15.113.9
11.59.6
0
200
400
600
800
1.000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Veh
icle
sal
es[th
ousa
nd v
ehic
les]
,
Vehicle sales and revenue
Rev
enue
[EU
R b
illio
n]
The Audi Group
Key figures
2005
Revenue [EUR million] 26,591
Operating result [EUR million] 1,417
Profit before tax [EUR million] 1,310
Cash flow from operating activities [EUR million] 3,252
Investing activities [EUR million] 1,712
Employees (as at 31.12.) [number] 52,412
Hungary – Key FactsGDP growth rate (%)
4.1
6.5
2.2
4.74.95.15.45.7
2.93.0
0.8
1.7 2.1 2.02.8
1.2
0.0
1.5 1.1
-0.4
-101234567
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Hungary Germany Source: Eurostat
Hungary – Key FactsInflation rate (%)
1,53.5
6.84.75.2
9.110.010.0
14.2
18.5
1.81.01.41.91.40.60.61.50
5
10
15
20
25
1997 1998 1999 2000 2001 2002 2003 2004 2005Hungary Germany Source: Eurostat
HUF/EURHUF „LIBOR”
238
240
242
244
246
248
250
252
254
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec5%
6%
7%
8%
9%
10%
11%HUF/EUR
monthly average exchange rate
Exchange rate and Hungarian „LIBOR”
Hungary – Key Facts
Source: Eurostat
7.26.15.95.85.7
6.47.0
8.49.0
9.68.5
9.1 8.87.9 7.2 7.4 8.2
9.0 9.5 9.5
0
2
4
6
8
10
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Hungary – Key FactsUnemployment rate (%)
The Győr region: 5.5 %
Hungary Germany Source: Eurostat, local authorities
- textile industry- engineering
industry- car
manufacturing- light industry
Győr – a city with an industrial historyAHM - Company History
Cost benefits labour cost
Vienna Bratislava
Győr
Infrastructure outsourcing at local cost support from state and local authorities
Maximum capacity utilization
Excellent transport connectionsrailwayairportmotorway
Highly qualified personnel
Supporting investments direct support tax-free status of investments infrastructure
Geographical and cost benefits
Hungary
AHM - Company History
Company information
• Independent Hungarian company with corporate form of Kft. (corresponds to a German “GmbH” and a British “Ltd.”)• Company founded in 1993• Capital stock of EUR 100 million• Fully owned subsidiary of AUDI AG• Management by 4 managing directors and a supervisory board• Purpose of the company: engine and component manufacturing, car assembly• Total workforce: 5,022 (as of 31.12.2005)
AHM - Company History
Factory units – production areas
1994Inl.-4 petrol
1997V6 diesel
1998 TTC1999 TTR
2000Inl.-4 TDI
2000Logistics
2000Services
2003V6 petrol
2002V8 + V10
2003Logistics
2001Logistics
2001Techn.
Development
AHM Forum
2005Tooling Centre
AHM - Company History
The largest Hungarian companies – 2004
(Source: D&B, all data HUF based, 250 HUF/EURO) AHM exports represent 10% of the total Hungarian exports
3,2563,256Flextronics Kft.(3.)3.
1,4911,273Tesco-Global Áruházak Rt.(9.)8.
1,2911,470Panrusgáz Rt. (Gascomp.)(8.)9.
1,5191,556MVM Rt. (Electricity supplier)(6.)7.
3,8603,722AUDI HUNGARIA MOTOR Kft.(2.)2.
2,4062,429MATÁV Rt. (Hungarian Telecom)(4.)4.
1,6701,791Philips Magyarország(5.)6.
1,210 1,151E.ON Hungária Energetikai Rt. (el. suppl.)(10.)10.
1,9201,520GE Hungary Rt.(7.)5.
7,8206,097MOL Rt. (Hungarian Oil Comp.)(1.)1.
Sales rev. 2004
EUR million
Sales rev. 2003
EUR million
CompanyRank
2003
Rank
2004
3,2563,256Flextronics Kft.(3.)3.
1,4911,273Tesco-Global Áruházak Rt.(9.)8.
1,2911,470Panrusgáz Rt. (gas company)(8.)9.
1,5191,556MVM Rt. (electricity supplier)(6.)7.
3,8603,722AUDI HUNGARIA MOTOR Kft.(2.)2.
2,4062,429MATÁV Rt. (Hungarian Telecom)(4.)4.
1,6701,791Philips Magyarország(5.)6.
1,210 1,151E.ON Hungária Energetikai Rt. (el. suppl.)(10.)10.
1,9201,520GE Hungary Rt.(7.)5.
7,8206,097MOL Rt. (Hungarian oil company)(1.)1.
Sales rev. 2004
EUR million
Sales rev. 2003
EUR million
CompanyRank
2003
Rank
2004
AHM - Company History
Qualification structure
64%
36%
university technical college
Indirect personnel Direct personnel
98%
2%
skilled worker other
AHM - Company History
Engine deliveries worldwide
China (direct delivery)
AUDI HUNGARIA MOTOR Kft.
Production and Main Characteristics
Audi HungariaGyőr
FAW ChangchunVW Shanghai
South AfricaUitenhagen
VW do BrasilCuritiba
VW MexicoPuebla
VW Argentina
Engine deliveries outside EuropeProduction and Main Characteristics
IngolstadtNeckarsulm
Osnabrück
KasselMoselWolfsburg
Emden
BrusselsBratislava
Mlada Boleslav/Vrchlabi/Kvasiny
Setubal
Pamplona AUDI HUNGARIA MOTOR Kft., Győr
Seat MartorellSeat Martorell Sant’ AgataSant’ Agata
Engine deliveries within EuropeProduction and Main Characteristics
Product range and capacity
• New-generation TT Coupé 200 bhp front-wheel drive, quattro 250 bhp quattro (V6)
• TT Roadster 163 bhp front-wheel drive 190 bhp front-wheel drive, quattro 225 bhp quattro
250 bhp quattro (V6)
Production and Main Characteristics
4-cyl. TFSI engine for the Audi A3 Sportbackdisplacement – valves: 1,984 cm3 - 4Vinjection system: FSIcharging: turbopower output: 147 kW (200 bhp)maximum torque: 280 Nm
Production and Main Characteristics
V8 diesel engine for the Audi A8
displacement – valves: 4,134 cm3 - 4Vinjection system: common railcharging: turbopower output: 240 kW (326 bhp)maximum torque: 650 Nm
Production and Main Characteristics
High-revving V8 petrol engine for the Audi RS 4 displacement: 4,163 cm3 - 4Vinjection system: FSIpower output: 309 kW (420 bhp)maximum torque: 430 Nm
Production and Main Characteristics
V10 petrol engine for the Audi S6
displacement: 5,204 cm3 - 4Vinjection system: FSIcharging: turbopower output: 320 kW (435 bhp)maximum torque: 540 Nm
Production and Main Characteristics
Audi Strategy
Audias the most
successful premium brand
Customer fascinationand image leader
in terms of emotion & quality
Significant growthin volume
Most attractive employer
Clear increase in profitability
Visions and goals
DisclaimerThis presentation contains forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the automotive industry, 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. The estimates given involve a degree of risk, and the actual developments may differ from those forecast.
Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (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 a significant shift in current exchange rates relative to the US dollar, sterling and the yen.
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 or implied by such statements.
We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded.