J.P. Morgan Fieldtrip

Anton PollHead of Financial Communication/ Financial Analysis, 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

€$

£¥

slight increase

+1.1%

China

597,866 cars

(591,554)

+0.6%

World

1,878,105 cars

(1,867,738)

de

liv

erie

sA

ud

i b

ra

nd

2nd half sets new recordC

hin

a d

eli

ve

rie

sA

ud

i b

ra

nd

50

55

35

40

45

60

70

65

Jul NovSeptMayMar OctApr DecJan Feb AugJune

in tsd.

units

2016

2017

+14% YoY

in 2nd half

confirmspremium

leadershipmarket

in China

slight increase

+7.8%

USA

226,511 cars

(210,213)

+1.1%

China

597,866 cars

(591,554)

-6.2%

Rest of

the world

248,340 cars

(264,855)

+0.6%

World

1,878,105 cars

(1,867,738)

+0.5%

805,388 cars

(801,116)

Western

Europe

de

liv

erie

sA

ud

i b

ra

nd

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%

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

more than 20 launches in 2018n

ew

pro

du

cts

A1Q8

A6

e-tronUrus

…and manymore to come

Q3

at 37% – and increasing…S

UV

-ra

tio

60

50

40

30

10

20

in %

total

Q5Q3Q2

Q7Q8

Q4

…e-tronS

UV

-ra

tio

Au

di

bra

nd

, 2

01

7

total

2016 2017 2018 …

transforming to futurefields A

ud

i.2

02

5

Audi. Vorsprung. 2025.

New/ Urban Mobility

Digitalization Sustainability

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

value for our customers

TRANSFORMATION

technology

Space Frame

quattro

Audi Origins

DDigitalization

SSustainability

UNew/ Urban Mobility

Changes

myAudi

tron

Audi AI

Audi tomorrow

myAudi

tron

Audi AI

TRANSFORMATION

Audi Origins

DDigitalization

SSustainability

UNew/ Urban Mobility

Changes Audi tomorrow

technology

Space Frame

quattro

AID GmbH for enabling

Level 5 (founded 2017)

Personal Intelligent

Assistant (PIA)

100 Audi VR Experience equipped

dealers until end of 2017

Online-Used car platform

live since October 2017

Autonomous driving at level 3

in our new Audi A8 (2017)

≥ 20 fully/ partly electrified

vehicles until 2025

Introduction FoD

with Audi e-tron (2018)

Audi g-tron powered

with e-gas (2014)

Releasing h-tron

small series

value for our customers

Digital ElementsC

on

ne

cte

d

Re

ta

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

…coming up 2018

pre-orders>4,000

e-t

ro

n

high performance EVe

-tro

n

transforming to future fields

Audi. Vorsprung. 2025.

New/ Urban Mobility

Digitalization Sustainability

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Audi SPEED UP!

€

Audi Action and Transformation Plan 10€

billion

Au

di.

20

25

transforming to future fields

Audi. Vorsprung. 2025.

New/ Urban Mobility

Digitalization Sustainability

Audi Action and Transformation Plan 10€

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Audi SPEED UP!

€

billion

Au

di.

20

25

Action and Transformation Plan

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.

fu

tu

re

via

bil

ity

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

ne

xt

best opportunity ever

Audi´s approach to autonomous drivingDr. Miklos Kiss

Pre-Development Automated Driving Functions

achieved milestones

2009Audi TTSalt lakeBonneville

CES 2013Park pilot &traffic jam pilot

Permission to test piloted driving in Nevada

Sept. 2014Permission to test piloted driving in California

Oct. 2014The best performing piloted driving prototype in the world at theHockenheimring

Aug. 2014Permission to test piloted driving in Florida

2010Audi TT Pikes Peak

Jan. 2015Drive from San Francisco to Las Vegas with Jack (Highway Pilot)

Jun. 2015Traffic Jam Pilot in Shanghai

Mai. 2016Highway Pilot Testing in Germany Test area A9

milestones in future mobility

UrbanisationDigitalisation Sustainability

automated driving as an influence on megatrends

Efficient use of the transportation infrastructure

4

Eco-friendly driving 2

More comfort for the customer3

Enhanced safety

automateddriving

1

broad range of driver assistance functions already in production

today

Standard features

› Hold assist

› Audi pre sense basic

› Audi pre sense city

› Park assist rear

› Adjustable speed limiter

› Cruise control system

› Break recommendationfunction

Tour assistance package

› Turn assist left

› Adaptive cruise control

› Audi active lane assist

› Audi pre sense front

› Obstacle avoidance assist

› Camera-based traffic sign recognition

› Predictiveefficiency assistant

› Traffic jam assist

City assistance package

› Audi side assist

› Exit warning

› Audi pre sense rear

› Park assist plus

› Rear cross-traffic assist

› Reversing camera

Parking assistance package

› Surroundings camera

› Park assist

Additional options

› Trailer assist

› Main beam assist

› MMI navigation pluswith MMI touch

› Night vision assistant

evolutionary advanced development driver assistance &

automated functions

assistedCurrent range of driver assistance functions

Futuredriver assistance functions

Intersectionassistant

Top View 3D ACA Maneuverassist

Turn assist

automated

Motorway pilot Parking garage pilot

City pilot

Traffic jam pilot Park pilot

levels of driving automation (SAE international)

each evolutionary stage will relieve the driver more

Level 1 Level 2 Level 3 Level 4 Level 5

Driver

Assistance

Partial

Automation

Conditional

Automation

High

Automation

Full

Automation

or and

levels of driving automation (SAE international)

each evolutionary stage will relieve the driver more

Level 1 Level 2 Level 3 Level 4 Level 5

Driver

Assistance

Partial

Automation

Conditional

Automation

High

Automation

Full

Automation

or and

levels of driving automation (SAE international)

each evolutionary stage will relieve the driver more

Level 1 Level 2 Level 3 Level 4 Level 5

Driver

Assistance

Partial

Automation

Conditional

Automation

High

Automation

Full

Automation

or and

levels of driving automation (SAE international)

each evolutionary stage will relieve the driver more

Level 1 Level 2 Level 3 Level 4 Level 5

Driver

Assistance

Partial

Automation

Conditional

Automation

High

Automation

Full

Automation

or and

central driver assistance

control unit(zFAS)

the new A8 has been developed for conditional automated driving

(level 3)

the new A8 has been developed for conditional automated driving

(level 3)

Technical regulations(type approval / homologation)

In 2018 we will gradually start to put the automated functions into series production.

Legal framework (road traffic laws)

the new A8 has been developed for conditional automated driving

(level 3)

In 2018 we will gradually start to put the automated functions into series production.

Legal framework (road traffic laws)

› National road traffic laws regulate the behaviour of the driver on public roads.

› Conditional automation: The driver needs to have the ability to control his vehicle even if he is not performing the driving task. National traffic legislation in different countries iscurrently amended to allow the use of Level 3 systems.

the new A8 has been developed for conditional automated driving

(level 3)

In 2018 we will gradually start to put the automated functions into series production.

› Type approval leads to the technical certification of the vehicle. The automaker must fulfil various technical regulations in order to gain the necessary approvals.

Focus: Technical regulation for the steering equipment (UN-R 79):

› At present UN-R 79 is currently under amendment to allow continuous steering by the system.

› The amendment is necessary to address various aspects of automated driving.

› Currently the regulation permits continuous steering without holding the steering wheel only at speeds not exceeding 10 km/h (6.2 mph).

Technical regulations (type approval / homologation)

THANK YOU!