Tokyo | 3rd February 2021

Strategy for electrification and carbon neutrality at Audi

Philipp Noack President and CEO, Audi Japan KK

Präsentationstitel Datum

➢ Founded in 1899

➢ Sales units (2020): 1.69 million cars

➢ Employees (2020): 87,000

AUDI AG (Ingolstadt, Germany)

RNALINTE

21

WHAT:

Consistently customerWe want Audi to become the company with the most satisfied customers.

Consistently electric We will move to the forefront of electric mobility.

Consistently connected We are creating an open digital ecosystem.

Consistently sustainableWe conduct our business responsibly, transparently and with integrity. We act in harmony with ecology and economy and with a clear long-term perspective.

HOW:

Consistently team “We” instead of “me” – the Audi spirit with agile entrepreneurship

Consistently focusedWe focus maximum resources on our key projects.

Consistently synergetic We’re striking up smart partnerships inside and outside our Group.

Consistently profitable We want to operate sustainably and profitably in every respect.

Präsentationstitel DatumOur mission: Consistently

“Consistently Sustainable”

Volkswagen Group alone is

responsible for

1% of the worldwide

CO2 emissions1%

Präsentationstitel DatumOur responsibility for climate protection

AUDI AG

INTERNAL

Production Vehicle use RecyclingResources Suppliers

By 2025 we aim to reduce CO2 emissions

by ~30%

Präsentationstitel DatumCO2 emissions

INTERNAL

WHAT

WHATWHAT

› Sustainable supply chain strategy› Governance, standards, guidelines› Sustainability rating for suppliers:

PEOPLE | ENVIRONMENT | INTEGRITY

› Training & continuous development› Engagement in external initiatives › Transparent communication

› Pilot projects › New forms of cooperation› SustainabilityAward4Suppliers› Audi Act4Impact› Leverage technologies for transparency

› Human Rights due diligence› Responsible sourcing of raw

materials

› Diversity in the supply chain

› Audi CO2 programme› Recycling concepts› Secondary material usage› Green energy › Sustainable water management› Battery supply chain

To create a

POSITIVE IMPACT in and throughout our

supply chain

HOW

Präsentationstitel DatumResponsibility pillars in the supply chain

AUDI AG

INTERNAL

Suppliers

Scrap

ALUCOILBauxite mining

Manufacture

of primary

aluminum

Manufacture

of aluminaAudi Press

Shop

Präsentationstitel DatumAluminum Closed Loop

“Mission: Zero”

➢ Use of green energy and installation of photovoltaic system (reduce)

➢ Thermal management system using natural energy (convert)

➢ Carbon offset scheme for unavoidable cases (compensate)

Audi Brussels production plant

Präsentationstitel DatumThree pillars to make production site carbon neutral

12 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumCO2 neutral factory (Gyor, Hungary)

13 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumReducing CO2 from logistics

14 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumCCS (Carbon Capture and Storage)

15 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumAudi e-tron Sportback

16

Over 74k customers have chosen an Audi e-tron. Regional success highly influenced by market specific attractiveness of

BEVs — Norway leads the way.

AUDI AG I/FU-23 January 21, 2020

Q3/20Q4/19Q1/19

3.4

Q2/19 Q2/20Q3/19

6.0

Q1/20

6.7

10.210.7

7.0

14.1

Q4/20

15.5

Deliveries to customersAudi e-tron family in k units

+80% deliveries 2020 vs. 2019

Norway

USANetherlands

Germany

Other

UK

e-tron

deliveries 2018-2020

>74k

16 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumSales status of Audi e-tron

17 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumAudi e-tron Sportback

18 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumBalanced portfolio is key – “best in class” for both BEV and ICE

1919 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumAudi e-tron GT concept

2020 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumQ4 Sportback e-tron concept

21

Tax disadvantages

Lower R&D due to shared platform and group synergies

effective

Price gap to close within

2-3 years

Increasing economies of scale

Lower factory costs thanks to multi-brand factories

Battery cost savings

Tightening CO2 /emissions regulations (e.g. EU7)

ICE

BEV

Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 202121 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumThe price gap between ICE and BEV

Renewable energy partner in USA Renewable energy partner in Germany

Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 202122 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumCharging infrastructure in Europe and the USA

Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 202123 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumCharging infrastructure in Japan

24 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumRenewable energy to charge EV (Europe)

25 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumRenewable energy partner in Japan (Shizen Energy)

26 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumComparison of CO2 emission (EV vs. ICE, also depends on electricity mix)

27 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumAudi’s vision: Shaping the Future of Sustainable Mobility

PR Activity @Audi House of Progress Tokyo

28 Audi Japan Strategy for electrification and carbon neutrality at Audi 3rd February 2021

Präsentationstitel DatumAudi House of Progress Tokyo

Thank you